What do consumers really want when it comes to traveling again?

By Miguel Flecha?

?It’s the headline that every travel company executive waited months and months to hear: “Travelers want to go back to travel.” This is wonderful news—that pent-up demand is turning into holiday plans, ticket sales and room reservations.??

But this news is only part of the story.?

The return to travel??

Our recent global consumer survey reveals that travelers are eager to get back in the world, despite the relentless obstacles over the past few years.??

While 66% of respondents said they are concerned about geopolitical conflict, and 56% are concerned about the national economy, summer bookings remained in-demand. Two in three consumers said they are looking to get back to pre-pandemic leisure travel levels despite budget pressures. That confidence continues to grow as people return to the shops and take the trips they dreamt about for months.?

Sixty-one percent have already booked a trip at the time of the survey. Of those who have booked for next year, more have chosen domestic destinations over international trips, across all generations: 27% of Gen Z, 37% of Millennials, 29% of Gen X, and 21% of Boomers have booked domestic trips, while 23%, 29%, 18%, and 11% of each generation has booked international trips, respectively. Boomers are twice as likely to have booked a domestic break than an international break.??

Hurry up and relax?

Health and wellness remain high on consumers’ agendas as a priority that nobody is willing to trade on, even with financial concerns—and some hospitality brands are tapping into that.??

Among the 11,000 consumers surveyed across 16 countries, 80% said they intend to maintain, or increase spend on health and fitness—such as exercise classes or buying vitamins and supplements—in the next year. In addition to increasing the amount of physical activity (42%), a third (33%) of respondents said that they’re more focused on self-care – such as indulging in a bath or beauty treatment – than they were a year ago. 75% of high-income consumers have booked a trip for the next 12 months. And two in five (39%) of high income respondents have booked a luxury trip or a wellness retreat.???

Rising travel costs have not deterred consumer spending on travel either. The survey found that more than half (51%) of consumers plan to maintain, or increase spend on leisure travel in the next year. Furthermore, nearly 4 in 5 consumers are willing to sacrifice spend in another area so that they can afford to travel. This resonates among younger travelers with three quarters (73%) of millennials more likely to have a wellness retreat planned for the next year than other generational demographics.??

London luxury hotel The Standard launched a new menu of wellness activities ‘served with a slice of fun.’ Treatments include a Digital Detox with Polaroid package to support mental health, a menu of vitamin drips, and in-room Peloton bikes with access to online workouts. Maldives-based travel company Soneva launched SonevaSoul, a luxury wellness concept, in December 2021. Guests at any of Soneva’s resorts can opt to have a personal wellness journey curated by SonevaSoul’s wellness experts, including treatments and experiences ranging from high-tech integrative medicine and sleep program to aquatic fitness sessions.???

Now is the time to track the forces of change?

All travelers today—no matter how much income they have—are looking to squeeze the most “experience” out of their travel budgets. After all, it’s human nature to want the most for your money.?

How can travel companies deliver the experiences that travelers want today despite staff shortages during peak season? Doing this is an art and a science. Excellence starts with understanding who travelers are and how the forces of change around them influence their demands.??

Remember, travelers are not who they were in 2019. They aren’t bound to one channel. They take more time in the discovery phase, but ultimately, want trusted information from a direct source. They’re interested in exploring the possibilities within virtual travel experiences.??

Those who may not previously have been able to travel for physical, financial or other reasons can visit new places or preview facilities thanks to emerging technologies like the metaverse. Emirates’ VR app for Oculus lets travelers explore cabins, lounges, and showers. It is now working to enable people to book their tickets from inside the VR cabin. Travel Zoo created a metaverse division and is collaborating with top providers of metaverse travel experiences to offer subscription-paying members access to a range of experiences. And Dai Nippon Printing (DNP) and local governments have created Kiyota Pilus X, allowing travelers to experience travel and tourism virtually.?

One in two consumers said they are interested in purchasing a virtual travel experience, including consumers who said they were facing budget pressures1. This shift could revolutionize distribution models and turn marketing tactics on their head. And despite their hunger for experiences, today’s travelers still need a purpose and reason to travel.??

Engage travelers on what matters most to them?

Travelers’ expectations are higher than ever—and more unpredictable than ever. This dynamic is uniquely challenging for travel companies that need to use data, analytics, and digital technologies to understand their customers and deliver the experiences they want. Peel away everything else, and success hinges on a simple principle: Engage travelers on what matters the most to them.??

I recently co-authored The Force of Change in the Travel Experience. The article explores consumer trends in Travel—and the shift in travelers’ demands. Please read it for more insights and share your thoughts with me.???