International trepidation as caravanners and campers hit the road
Grant Wilckens
Founder & CEO, G'day Group - Australia’s largest regional accommodation provider / Chair, Caravan Industry Association of Australia (CIAA) / Board Director, South Australian Tourism Commission (SATC)
As one travel year ends, another is about to begin. But are we starting 2022 fresh and full of optimism or holding onto our COVID travel uncertainty? Here’s my take on what’s ahead for 2022.
While the last two years have proven unpredictable, travel confidence is building as vaccination rates rise and states ease their quarantine requirements. New international flight routes are being announced in our most locked-down of states (hello Perth to Rome) and regional Australia is approaching what looks to be the busiest summer on record.
The Caravan Industry Association of Australia is expecting upwards of 800,000 RVs to hit the road this summer. That’s a LOT of caravans and campers on our roads and in our regions. So while in our most populated states have welcomed quarantine-free international travel, it’s likely to be baby steps for a while yet, with Aussies swapping lockdowns for the great Aussie outdoors.
A slow burn return for international travel
Confidence in international travel has been on the rise, with QANTAS CEO Alan Joyce recently announcing an expectation that all QANTAS aircraft would be back in the air by July 2022. But early adopters of international travel have suffered disruptions from new COVID variants, complex travel rules and travel insurance challenges.
NewsCorp research shows that over half of Australians currently lack confidence in travelling overseas, particularly over 40s. While vaccination rates are looking good, Omicron has changed the goal posts with the 2 vax target likely to become a 3 vax target. Vaccinations aside, many are worried that if they catch COVID overseas they may become stranded, waiting out a negative COVID test before they can get on a plane.
It’s also likely that we will see early international travellers opting for developed countries, with better health care systems in case they do catch the virus. Being hospitalised in the UK with COVID would be a very different scenario to being hospitalised in Bali and people will be weighing up these risks when choosing international destinations.
Stress-free travel a key factor
Risk management and peace of mind are a high priority. We’ve seen a boom in intrastate regional holidays and shorter lead time on bookings indicating a more cautious breed of traveller, which seems likely to continue even as the country opens up.
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We commissioned research recently that showed 80% of Aussies planning to go away at Christmas intended to book less than two months out. Yet 7 in 10 Aussies have struggled to book accommodation in the past 12 months, and short term planning has led to an accommodation shortage in Australia for summer. People know if they look last minute they risk missing out, but don’t have the confidence to book too far in advance with the worry of fast-changing travel restrictions.
Consequently, we expect the demand for flexible terms and cancellation policies to remain a key factor in planning and booking a holiday, even with as confident grows as vaccination rates rise.
Multi-generational holidays on the rise
Aussies have spent huge portions of the past year in lockdown and there’s no question that we’ve collectively missed out on a lot. Heading into 2022, we expect to see a growing trend for multi-generational holidays, with mum, dad and the kids joining nan and pop as well as other extended family members to reconnect away from home. A holiday is a fantastic opportunity to make up for missed milestones, celebrations and important time together.
‘Second wave’ rebound as production catches up with demand
We’ve seen unprecedented demand for the caravan and camping sector throughout the pandemic, as a captive market discovers and explores its own backyard – many for the first time. But production time for caravans and campers has been up to around 18 months, so many are still waiting for delivery of their new RV.
As production catches up with demand, we’ll see a ‘second wave’ of campers hitting the road, eager to use their new vehicle. Typically these new RV buyers were already RV owners, which means they will sell their old vehicle second-hand and, with more stock available in the second-hand market, more new caravanners and campers will enter the fold.
If COVID has taught us anything, it’s that we don’t know what lies on the road ahead. Most of those who wrote travel predictions in 2020 didn’t see this coming. However, all signs are pointing to 2022 being a year that we can get out to explore again and, as we like to say, ‘discover what matters.’
General Manager - Agribusiness / Banking and Finance / Board Director / Trusted Advisor ? mentor ? husband/father ? farmer
3 年Good article Grant. Thanks for sharing.
Chief Executive Officer of Caravan Industry Association of Australia
3 年Well said Grant Wilckens - while it will be a slow return to pre-COVID normal, Australians continue to desire to escape the daily grind and spend time with their loved ones. That is why caravanning and camping has been so popular and will continue to be so. Access to the outdoors and free space which still having control over your living surrounds makes this sector the one which will bring much needed dollars into regional communities, and kick start travel both domestically and internationally (through increased confidence to explore and leave home).