How Have Travel Habits Changed Post Pandemic?

At Talking Stick Digital, we work with a lot of travel clientele and the tourism industry is a particularly challenging and volatile industry to work with. Not because of the clients themselves (ours are all lovely!), but due to the very nature of the industry and the various factors that can affect one of the most desired luxuries…a holiday! Competition in this industry is fierce; price cuts, flash sales and undercutting are all common practice, and industry giants, especially those which own their own airlines, can almost always come out on top. So being agile, inventive, thinking outside of the box and problem solving are all essential skills for a digital marketer looking to make a positive impact on a travel client’s business.

There had always been a certain amount of predictability when working in the industry, with booking windows being predictable, peak booking seasons and sales periods being rigid and easy to budget for. Most of the best-selling destinations were well trodden, making for easy and fast selling of the core product and allowing a greater focus and budget for experimentation on new products that hadn’t been tested yet. The travel industry in the UK particularly has had its fair share of defining obstacles to overcome, including volcanic ash clouds, various terrorist attacks in Europe, America and Africa, the 2008 financial crisis and Brexit to name a few. However, the industry is resilient, and none of these obstacles had long-lasting ill effects. However, this all changed in December of 2019 when COVID-19 was first discovered, the UK entered its first lockdown in March 2020, and the world stopped.

COVID-19 was obviously a devastating world pandemic that affected everybody to varying degrees, but unanimously negatively. As we all know, the travel industry was one of the worst affected and one of the last to be able to start recovering and to return to some semblance of normality. Now that we have emerged from the pandemic, people’s travel habits have changed in terms of expectation, predictability, destination selection, value for money and a whole host of other factors that we will explore below.

Pre-Pandemic – How the world looked before

Before the pandemic, the travel industry was typically stable and most companies were comfortable in what they knew, who their customers were, how much their average booking value was, and when and how to market to their customers. 2019 in fact was a record breaking year for the sales and profitability of many travel companies. For the market as a whole, 2019 was also an especially strong year both in terms of percentage of people taking holidays and number of holidays taken in a year, with both at their highest since 2013. There are several key factors which were known and normal before the pandemic:

• Predictable booking windows – trips are booked typically weeks if not months in advance and this is not particularly dependent upon which destination is being booked or distance being travelled.
• Typical and predictable seasons – trips are booked to coincide with peak and shoulder seasons dependent on conditions in the country, school holidays etc.
• Foreign travel over domestic travel – cheaper fly and flop destinations are more popular than domestic destinations as ‘getting more for your money’ is often perceived.
• Independence and DIY – no need to book through a travel professional and less likely to book a package deal as easier and cheaper to book all individual elements online yourself.

During Pandemic – In the eye of the storm

Once the pandemic was underway and its impact was being felt worldwide, several factors came into play when looking at the travel and tourism industry:

• Stoppage – Obviously as we are all aware, during the pandemic the vast majority of travel not only for holidays but for work stopped completely.
• Uncertainty – Differing timings of outbreaks, severity of outbreaks, different strains, different testing/restrictions etc as well as any changes happening almost instantly and changing travel plans at a moment’s notice.
• Domestic travel and staycations – The staycation begins to see some popularity when restrictions were lessened or removed including the added predictability of home country restrictions being easier to navigate than those abroad. These were often cheaper too.

Post-Pandemic – A new world

As vaccines began to become widespread and as restrictions both domestically and abroad started to be lifted, the tourism industry could start to recover, however things would not return to how they had been, and a ‘new’ normal emerged:

• Flexibility – Flexible cancellation policies, low or no deposits and less risk for the passenger saw great uptake and by many became expected.
• Trade support – Booking using a travel professional a package holiday and the financial protection Air Travel Organisers’ Licensing (ATOL) and Association of British Travel Agents (ABTA) and similar license holders provide increased and using a travel agent for up to date advice and potential pitfalls also increased.
• Domestic travel and staycations – These continued to grow in popularity as people saw that they could have holidays domestically for cheaper without as much risk as going abroad.
• Pent up demand – There was a lot of talk of pent up demand post pandemic due to the lack of holiday possibilities and a view the people were likely to splurge after being restricted for so long – this could have been increased cost on the holiday itself, more adventurous ‘once in a lifetime’ destinations and trips, staying for longer or paying more for upgrades to flights, accommodation etc.
• Extended peaks – Peak booking periods tended to be less rigid and more extended with people waiting longer to see the what the best deals they could get from suppliers were, as well as waiting to see if any competitors would try to undercut. Also, financial uncertainty around new year bonuses, family finances etc could also have played a part here.

Where are we now? – The ’New’ Normal Continues

Since the travel industry has continued its recovery post pandemic, it is important to remember how devastating this crisis was to the industry. Particularly in the UK market, the end of the pandemic was not the only obstacle the industry has continued to face. For nearly 2 years, British consumers have had the worry of the cost of living crisis front of mind as household bills, property and fuel costs rise. This in turn obviously has an effect on the travel industry and whether people are as likely to spend what money they do have on holidays. Since then, further hurdles have arisen, with Russia’s invasion of Ukraine, unrest and violence in Gaza and the Middle East, and political worries around the American election all contribute to uncertainties and take their toll on travel and tourism.

However, it is not all doom and gloom, tourism is certainly making a strong comeback, and it is clear from data in ABTA’s recent holiday habits report that people are more likely to give up other luxuries such as eating out, buying new clothes and other non-essentials than they are to give up their holidays.

Trust in the industry has increased with more people booking packages with travel agents or tour operators and the additional financial security this allows consumers. New destinations are being discovered and tested such as Albania and Zambia, both mentioned in ABTA’s destinations to watch report. Consumers are looking to travel more both internationally and domestically, they are no longer as constrained to holidaying at particular times of year and are also looking to spread the cost across the year to get the best value for money perhaps taking a few smaller holidays than just one in the summer.

The one thing that is predictable in travel is its unpredictability. Certain things have returned to the previously accepted norms, and others have changed possibly forever. Travel companies are also evolving to give their clients the best possible service, including adopting new digital technologies such as traditional and generative AI systems and embracing inspirational content marketing on platforms such as TikTok. For digital marketers working in this sector we have to keep our fingers on the pulse, remaining agile, problem solving and inquisitive so that however the situation changes and whatever challenges arise we are equipped to tackle them head on.

Here at Talking Stick Digital, we’re passionate about our clients and their businesses with a team that can expertly manoeuvre through unpredictability and sudden changes. Let us help you enhance your email marketing strategy with our expert insights and guidance. Contact us today for a free digital marketing audit and take the first step towards becoming a digital success story!