By Cheryl Miller
After several years of lockdowns and restricted travel, the appetite for travel has never been bigger. As the travel industry continues to rebound, there is no question that it also experiencing unprecedented – and likely permanent – changes.
Arguably the most significant change is the higher expectations travellers now have for their entire travel experience.
According to Expedia Group’s recent Travel Value Index 2023 study, nearly half of consumers globally (46%) feel that travel is more important to them now than it was before the pandemic.
Indeed, almost as many (43%) are planning to increase their travel budgets in 2023.
The number of people who say they are planning to take a leisure trip within the next year is also on the rise, with more than two-thirds (79%) planning to do so.
With this in mind, the Traveler Value Index examined what travellers truly want, and how travel professionals can tap into that demand to provide the best end-to-end experience possible.
New motivators for travel
As a starting point, travel professionals should be aware of why people are travelling. According to the study, nearly half (49%) of consumers cited mental and physical well-being and change of scenery as their top reasons for travel in 2022, and self-care will continue to remain a priority in 2023. Many people also view travel as a way to gain new experiences (43%) and get out of their comfort zones (22%).
Loyalty programs are also increasing in importance. More than half of consumers (53%) say that it is more important to travel with loyalty providers than before the pandemic with 52% valuing discounted pricing from those programs the most. The good news is that 75% of travel providers are operating loyalty programs to encourage repeat bookings. It is important to make processes for redeeming these points and vouchers as easy as possible to capitalize on this demand and ensure travellers start off their trips right.
Flexibility is still In demand
The travel industry is far less tumultuous today than it was during the height of the pandemic. However, travel preference has permanently shifted to favour flexible reservation policies in case the need to change or cancel a trip should arise. In fact, nearly half of respondents would not book non-refundable lodging or transportation domestically, and more than half say they wouldn’t book non-refundable lodging or transportation for an international trip.
An overwhelming number of travel businesses adapted to this change in consumer behaviour. Ninety-six percent say they offer refundable services or credits, and most of them (77%) introduced some of their refundable offerings because of the pandemic. Travel providers who offer flexible policies will be the ones best positioned to give travellers peace of mind in times of continued uncertainty.
Travellers will vote with their values
Travellers are increasingly choosing to book with providers that align with their personal values. In fact, more than two-thirds (70%) say they are more likely to choose more inclusive travel options, even if it means paying more. A staggering eight in 10 (78%) of consumers say that they’ve made a travel purchase based on promotions or ads they feel represent them through messaging or visuals. The travel industry is quickly adapting to this continuing trend: three in five organizations (60%) made changes in the last year to ensure their services are inclusive and accessible, and an additional 21% have plans to do so.
Canadian consumers value flexibility when booking travel
Canadian travellers particularly appreciate flexible policies (63%) more than the global average (51%). They are also among consumers (60%) more concerned about the impact of inflation on travel expenses in the next 12 months. As such, deeply understanding traveller wants and needs can help drive business success.
Flexibility continues to be one of the top considerations for travellers, particularly those travelling internationally. Travel providers must keep this in mind given that consumers in Canada, alongside Western Europe, are the most likely to travel internationally.
Forty-one percent of Canadians say they are very likely to book or have already booked an international trip in the next 12 months, ranking higher than the global average (30%).
Travellers are rapidly becoming savvier as they place greater importance on travel as a way to heal and reconnect with the world. It is vital for the industry that travel organizations continue to adapt with flexible, sustainable, and value-driven options to not only attract consumers, but to follow through on the promise to delight travellers from the booking experience to the taxi ride home.
(Ed. Note: Cheryl Miller is SVP and CMO, Expedia for Business, Expedia Group; this column was lightly edited.)