Actions for Destination Marketers to Navigate in a COVID-19 World Actions for Destination Marketers to Navigate in a COVID-19 World

In partnership with

2 Authors

BCG

Christopher Bergman

Principal

Hans Clement

Managing Director & Partner

Pablo Martinez

Managing Director & Senior Partner

Google

Abdullah Alassaf

Industry Manager

Songul Cengiz

Principal Industry Analyst

Cynthia Chami

Analytical Consultant

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 3 The COVID-19 pandemic has will they want to go? And how hugely impacted the global can DMOs best prepare for the travel industry. Airline and hotel eventual resumption of travel? bookings are down more than 90% worldwide, and cruise ships The key to answering these critical are under total no-sail orders. In questions lies in capturing the April 2020, 91% of the world’s data needed to properly prepare population lived in countries with for the eventual increase in restrictions on travelers arriving consumer demand for travel. This from other countries, and 39% in turn will allow DMOs to plan lived in countries whose borders accordingly, devising marketing were closed entirely. Little had campaigns designed to lure changed by August to improve the travelers to the most attractive situation. destinations, ensuring their safety, and offering them experiences This has proven to be an extremely that align closely with their desires challenging time for destination and interests. In what follows, we marketing organizations (DMOs) have synthesized data from BCG – which collectively includes and Google consumer sentiment national tourism organizations surveys and analysis conducted (NTOs), whose mission is to over the past several months, generate demand for tourism and from Google search data, from international markets by to provide an in-depth view of building their destinations’ brands the current state of the travel and raising traveler awareness industry, how the pandemic has about their respective destination affected consumer attitudes offerings. In ordinary times, DMOs toward travel and tourism, as operate with a relatively high well as recommendations on the degree of certainty; planning is an way forward for the industry to annual process, setting budgets recover. is a formality, traveler behavior is understood, and marketing plans As the effects of the pandemic are clear and in place. decline and borders progressively reopen, prospective travelers will That’s all changed. Now, DMOs be eager to be on the move again, must apply their resources and DMOs must be ready. This will to understanding COVID-19’s require a level of speed and agility impact on travel, now and in the that will likely be new to many future. How have consumers’ DMOs, long accustomed to the attitudes toward travel changed slower pace of more predictable in response to the pandemic? times. But it is essential if they are When will they begin to seek out to recapture their pre-pandemic travel opportunities again? Where visitor numbers.

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 4 The Rise of COVID-19

Over the past 20 years, the global in mid-March 2020, the World travel and tourism business has Health Organization officially grown at an impressive 5% annual declared COVID-19 a pandemic, pace; in 2019 it totaled $4.7 trillion. and countries around the world DMOs have been at the heart of initiated domestic lock-downs this growth. Their roles vary: while and began closing their borders to some focus primarily on promoting travelers. their country’s attractions to tourists, others are charged with The impact on the travel industry helping support the local economy, was immediate. According to OAG attracting outside investment flight data, more than 133 million in cultural and sporting events. international trips were taken Some oversee implementation of in March, helping to spread the the local tourism sector strategy, coronavirus; by April, however, even regulating such matters as that number had declined rapidly, licensing and quality standards. to just under 16 million. As of June, Some are supported entirely that number had only increased by their local governments; marginally to 19 million. others collect fees from the local hospitality, cultural, and While domestic airline travel has entertainment industries. remained somewhat healthier; still, the total number of commercial In short, DMOs are central to the passenger aircraft being stored economic well-being of localities reached an unprecedented 55% everywhere, and especially in April, up from just 10% at the to markets that are heavily start of 2020, and far higher than dependent on tourism. By the the number in storage following beginning of 2020, their marketing the Sept. 11, 2001, terrorist attacks plans and schedule of events (see Exhibit 1). Google searches would have been set for the related to air travel declined coming 12 months. 62% from their January levels, as major international expositions, Then came COVID-19. conferences and sporting events across the globe were cancelled or First detected in December 2019, postponed, including Dubai’s Expo a few first-mover countries shut 2020, the Tokyo Olympics and the their borders in January. Then, Beijing Motor Show.

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 5 Exhibit 1 | The percentage of commercial aircraft being stored reached an all-time high in April, though it has declined somewhat since then

55% Global stored commercial aircraft by month, January 2000 to August 2020 (% of total fleet) 60% in April

40%

20%

0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note: To qualify for in-storage status an airliner must be observed as having had no fight activity for at least three consecutive days, regardless of any statements of intent by its operator. Cirium may retroactively update depending on acrrier data submissions. Source: Cirium Fleets Analyzer

As a result, despite massive There is no telling for sure when stimulus packages aiming at the industry will recover. The softening the pandemic’s impact, COVID-19 situation remains more than 120 million jobs may volatile, with many countries be lost in the travel and tourism experiencing waves of infection industry, and that could rise to 190 amid inconsistent government million jobs, depending on how responses. We are currently long travel restrictions remain tracking five potential scenarios in place, according to the World for recovery, with the prolonged Travel and Tourism Council. That’s a U-shape or L-shape being the staggering 36% - 58% decline from most likely for travel to return the 330 million jobs in the industry to pre-pandemic levels in our in 2019. The industry’s contribution view (see Exhibit 2). By that time, to global GDP could decline by $3.4 however, any number of airlines trillion (38%), it estimates, and by could go bankrupt and hotels, up to $5.5 trillion (62%) under the resorts and restaurants will close worst-case scenario. forever.

Exhibit 2 | Estimates of when the travel industry will recover range from 12 to 18 months or longer

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 6 Safety first

The impact of COVID-19 on finances due to the outbreak are consumer sentiment around more than twice as likely to want travel has been severe. Reviving to reduce leisure travel as their the travel industry will depend less-concerned peers. largely on sensitivity to travelers’ Financial constraints are not, concerns. Around 80% of of course, the only concern. All consumers in the U.S. and France, consumers fear catching the for example, believe that the virus; indeed, they are as much virus will lead to a recession, and as three times more likely to fear more than 45% are concerned getting sick while traveling than about their personal finances. when shopping in local stores, As a result, consumers are and international travel is seen as notably unwilling to spend on more dangerous than domestic. luxury spend categories such as In the U.S., for example, 50% of travel. Indeed, consumers who consumers fear catching the virus are worried about their personal from traveling (see Exhibit 3).

Exhibit 3 | US consumers are far more concerned about traveling internationally than they are about shopping locally or visiting friends

Respondents who are worried about catching the coronavirus from the following activities (%)

Activity categories over time Individual activities , August 2020 60 Travel & tourism

50 43 45 54 55 57 61

Airbnb Hotel Casino Domestic International Cruise 40 flight travel

30 Local activities

44 54 35 20 17 At-home activities Local store Uber Restaurant Bus, subway, 10 or train 19 3 10 0 March April May June July August Shopping Ordering Cooking at online food for a friend’s delivery house

Note: Data as of August 15, 2020. US respondents only Source: BCG COVID-19 Consumer Sentiment Survey; BCG analysis

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 7 Age is a major factor in willingness for example, are considerably to travel—understandably, given more reluctant to participate in the greater vulnerability of older any form of travel than those people. As of August 2020, between 18 and 40 years old (see U.S. consumers 56 and older, Exhibit 4).

Exhibit 4 | Consumers 56 and over are most likely to have health concerns regarding all travel offerings.

Consumers concerned about catching a virus with each activity (%) Consumers who resumed travel in July or August (%)

International travel Domestic flights Goingon a cruise Staying in a hotel

100 18-40 16

69 64 61 62 56 53 46 49 46 43 44 39 41-55 16

0 56+ 4 Age 18-40 41-55 56+ 18-40 41-55 56+ 18-40 41-55 56+ 18-40 41-55 56+

Note: Data as of August 15, 2020. US respondents only Source: BCG COVID-19 Consumer Sentiment Survey; BCG analysis

More than 70% of consumers normal. The definition of “normal,” believe it is irresponsible to travel however, varies considerably, and until the virus is under control, and that in turn affects the kinds of more than 65% believe it is not vacations travelers are willing to worth the risk of taking a vacation take. (See Exhibit 5.) until things mostly return to

Exhibit 5 | Consumer sentiment varies widely regarding when the travel’s “new normal” will begin

When will you begin...? (%)

Staying Flying on Visiting Going on Only when... at hotels airplanes casinos cruises When do you think that will be? (%)

... Number of new cases slows in my country 12 58 21 10 ...Government says it’s ok to resume daily activities 5 55 22 18

.... Testing is widely available 7 42 29 23

.... No new cases our in my country 4 35 29 31

.... Approved medications to treat the 3 24 32 41 virus are available

.... A vacine is available 2 13 24 62

Within 1 month Within 2-6 months Within 7-12 months A year or more = 10%

Note: Data as of May 11, 2020. Because of rounding, some bar charts totals do not equal 100% Source: BCG COVID-19 Consumer Sentiment Survey; BCG analysis

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 8 All things considered, the near- have no plans to travel for the term prospects for restarting “foreseeable future”, although the travel industry are unclear. that varies depending on where As many as 60% of consumers they’re from. (See Exhibit 6.)

Exhibit 6 | When and how consumers expect to be able to travel again varies from country to country

Respondents who “strongly agree” or “somewhat agree” with the following statements (%)

I definitely will not be traveling for the foreseeable future

I have already started traveling again/I never stopped traveling

It is irresponsible to travel until the virus is under control

In the future, I will be taking different types of vacations than I used to

I will only take a vacation after the economy recovers

Note: Data as of May 11, 2020 Source: BCG COVID-19 Consumer Sentiment Survey; BCG analysis

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 9 Early Actions

Like organizations in every industry, It soon became clear that DMOs were entirely unprepared for protecting their own tourism the advent of COVID-19. In many brands would be critical if they cases, their responses were swift. were to quickly revive tourism in Some established emergency task their home markets. To that end, forces to address issues such as many have already developed the extent of the damage to their innovative campaigns— travel sectors and the availability including videos and social of travel opportunities remaining in media programs—designed to their markets. Could they refocus stay engaged with prospective their scope and efforts away travelers and keep them dreaming from international tourism and of travel during the pandemic, toward domestic travelers—not while reassuring them on safety traditionally their target markets? precautions needed during travel. Portugal’s tourism board, for DMOs in countries where tourism example, has focused its new is vital to the economy were campaign on the message that under the most pressure to revive you “can’t skip hope,” encouraging tourism, requiring many to take prospective travelers to reflect several unfamiliar actions. Many on the future of travel. Both the participated in meetings at the Maldives and the Seychelles have highest level of government, a rare released campaigns suggesting occurrence. They found themselves that travelers keep dreaming collaborating with a wide variety of about their next beach vacation. sometimes unfamiliar government Sensitivity to the concerns of stakeholders, to advocate for key travelers regarding health and measures needed to keep them safety was key to setting the operating. right tone.

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 10 Getting to Normal

The travel and tourism industry assuming consumers’ concerns has proven markedly resilient about health and safety can be in the face of past disruptions. alleviated. Fully 40% of those who Within a year after both the say they won’t resume travel until a Sept. 11 terrorist attacks and vaccine is available still expect that the 2008 financial crisis, it had they will be able to travel within returned to its average upward the next 12 months. growth trend. The COVID-19 pandemic is different, however, And they are looking for in part because it is the first truly opportunities. In April 2020, air global crisis to take place in the travel-related queries carried age of a fully connected planet. out on Google were down 62% In addition to the health risks year-over-year, but by August imposed by the virus, its recovery , they were down just 42% will largely depend on how deep compared with August 2019. The the crisis-induced recession lasts top three questions users asked and the degree of its impact on Google globally related to travel consumers’ ability to spend. conducted in June comprised “When can we travel again,” “when Certainly, the desire to return to will international travel resume,” normal is strong. Consumers rate and “when will it be safe to travel leisure travel as the top activity again.” while top questions in they miss the most, and 31% want August were related to where and to increase their leisure travel once when we can travel “right now”. In the crisis subsides. fact, 45% of the top 100 questions related to travel focused on the Signs of revival can already impact of COVID-19, the need be found in the data on online to travel as soon as possible and searches related to travel, travel safety.

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 11 Google flight search data, too, than three quarters of consumers indicates increasing interest on are searching for trips less than the part of consumers in traveling three months out. sooner rather than later; the “look- ahead” window—the number And while safety remains top of of days between search and mind, with 44% of consumers departure dates—for domestic hoping to travel soon citing airline travel decreased from 48 “worry” as their No. 1 concern, days at the end of April to just most travelers would be willing over 30 days at the end of June to fly again as early as next and to 28 days in August. Interest month if certain health and in international travel is growing safety measures were in place as well, with the look-ahead (see Exhibit 7). Indeed, 60% of window on international flights consumers ranked virus safety narrowing from 77 days at the end measures among their top three of April to less than 45 days by considerations when choosing a the end of August. Overall, more brand to travel with.

Exhibit 7 | The willingness to fly in the short-term depends largely on the extent of the health and safety measures in place

% of consumers needing additional sanitary Sanitary measures needed by consumers who answered measures before flying again in next month “some measures would convince me” from May 22-25

5% 5% 7% 6%

Proof of Medical health staff onboard

April 10-13 April 24-27 May 8-11 May 22-25 Social Hand Regular Protective Air Temp. COVID-19 distancing sanitizer anti-viral gear filters checks tests enforced cleaning Pre-airport entry I will fly regardless of measures next month

Nothing would convince me to fly next month

Some measures would convince me to fly next month

Note: Data as of May 25, 2020 Source: BCG COVID-19 Consumer Sentiment Survey; BCG analysis

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 12 Travel Dreams

In short, consumers are already take different types of vacations showing signs of re-entering than they are typically used the initial “discovery” phase to. For their first trip after the of the typical consumer travel outbreak, most prospective experience. Where do they dream travelers are looking to get away of going, and why? from it all on relaxing trips or visits to family and friends. And Overall, more than 35% of they expect to take shorter trips, consumers in the US expect to preferably by car (see Exhibit 8).

Exhibit 8 | Consumers are looking forward to relaxing getaways or visits to loved ones, and prefer to travel by car

Respondents who have traveled since the Respondents’ reasons for traveling since the virus coronavirus outbreak? (%) outbreak and preferred modes of transportation(%)

1. Category includes the responses “Attend a special event” and “Other”. The “Other” group included some necessary trips, such as family/medical emergencies or moving 2. Category includes the responses “Visit family/relatives” and “Visit friends” 3. According to Phocuswright 2019 consumer travel survey, more people now choose to drive, compared to 33% car, 61% plane, and 6% other in 2018 Note: Data as of August 16, 2020 Source: BCG COVID-19 Consumer Sentiment Survey; BCG analysis

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 13 Heading to the beach and visiting 20% of consumers there plan to rural areas or small towns is the take a trip in an RV in the next 12 highest priority among would- months—half of whom attribute be travelers, particularly for the their interest in RV camping Italians and French (see Exhibit to current health concerns— 9). This may explain why sales and 11% plan to purchase one, of recreational vehicles (RVs) according to the RV Industry in the U.S. are strong. Almost Association.

Exhibit 9 | Consumers are looking forward primarily to vacations at the beach or in rural location

France

Germany

Italy

Netherlands

UK

Canada

A beach destination A small town Other

A rural location A major city I would not travel in the next 3 months

Note 1: Data as of August 14, 2020 Note 2: May 1st 2020 Canada and May 22nd Netherlands changed methodology to collect answers from android users. All other results were collected from publisher network Source: Google surveys

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 14 As noted, interest in domestic months has fluctuated. In June, travel remains relatively healthy— more than half of respondents in no surprise, given safety Italy, for example, confirmed that concerns and the many ongoing they would travel anywhere within restrictions on international travel. their home country; since then, Still, the percentage of survey however, that number has tapered respondents who say they are off amid concerns about renewed planning to travel domestically coronavirus outbreaks. (See for a holiday within the next six Exhibit 10.)

Exhibit 10 | Domestic travel remains reasonably healthy despite fluctuations in response to the coronavirus

60 54

44 39 40 38

20

0 Apr 10, 2020 May 8, 2020 June 12, 2020 July 10, 2020 August 14, 2020

UK Italy USA Portugal Canada

Germany Spain France Netherlands

Note 1: Data as of August 14, 2020 Note 2: May 1st 2020 Canada and May 22nd Netherlands changed methodology to collect answers from android users. All other results were collected from publisher network Source: Google surveys

That’s why domestic operations Several fast-moving DMOs have continue to be the key focus for already started capitalizing on most of the world’s airlines. As travelers’ focus on domestic of June, they represented an travel, putting together dedicated average 84% of their activities, campaigns and incentives to up from 60% in January. In further promote interest in local April, Google search queries for destinations. Japan, for example, domestic flights globally were recently launched a $12.5 billion down about 45% compared with “Go to Travel” campaign to help last year, but they have grown pay for domestic vacations, 36% every month since then. The providing a subsidy of 8up to strongest growth has been in $185 per traveler. And Vietnam is North Africa and Eastern Europe, luring domestic travelers with a while South Asia, North and public-private campaign offering Central America have lagged. discounts of up to 50% on airlines, travel agencies, and resorts.

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 15 Moving Fast

The COVID-19 pandemic has and safety of their travel offerings radically transformed consumer will be essential. behavior with respect to their In contrast to the pre-pandemic travel and tourism desires and travel environment, when travelers’ expectations, and it will likely wishes and expectations were continue to do so, even as far more stable and predictable, conditions return to normal. In the demand for travel is shifting response, DMOs must develop unpredictably across categories, new ways to assess consumers’ channels, and geographies. Supply attitudes toward travel accurately will shift unpredictably, too, as and quickly, and to adjust their markets open to travel at different marketing campaigns accordingly. speeds, depending on the pace of In this effort, building trust among new confirmed cases and the rise prospective travelers in the health and fall of travel restrictions.

Competition to capture the pent-up demand for travel will be fierce, as DMOs rush to attract visitors and capture market share. So DMOs must act swiftly and with agility to avoid the significant downside risk, as the potential for losing market share quickly is high. The key, we believe, is to follow a Five-R approach:

Reassess their offerings and value proposition in light of evolving traveler preferences, needs, and concerns. Reassure travelers on the safety of travel to your destination to address consumers’ health concerns. Raise awareness to pique the interest of consumers and inspire them to travel. Remove barriers in converting consumers to travelers by making the case for traveling now. Revive spending in the local economy by maximizing travel’s economic spillover effects.

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 16 Only by gathering and carefully sources data from target market analyzing near-real-time data and updates and indicators, consumer business intelligence will DMOs sentiment and spending activity, gain the insights they need in in-country supply readiness, our current highly volatile travel and more. Analyzing the data environment. Traditional data and could then provide insights into analytics that rely on historical such matters as the readiness data and travel patterns will not of consumers in target markets be adequate for predicting the to travel, which could then be shape of the coming recovery, or matched with availability of to respond effectively. The typical specific travel options. Such a “upper funnel” of demand— solution would enable DMOs to the stage where prospective support dynamic decision-making travelers dreamed of their next and the development of strategies travel destination—has now been to prepare to respond as source reduced substantially, and limited markets and travel segments by factors such as the progression recover from the pandemic at of COVID-19, government differing rates. travel sanctions, reduced flight availability, and the like. Real-time analysis will require most DMOs to overhaul their data To gain a better understanding collection practices, however, of the current state of consumer since current agreements with demand for travel, market data providers are typically set availability (including flights, hotels, up to enable historical analysis, resorts and other aspects of not the day-to-day changes in supply), and the state of the sector consumer sentiment and industry generally, DMOs must capture and availability that characterizes analyze data from a wide variety of today’s travel and tourism sector. sources. That’s why DMOs should explore all the potential data sources that One solution would be to develop provide the most useful up-to- an analytics “lighthouse” that date information possible.

With the best available data and insights in hand, DMOs can then begin to coordinate their efforts across three key activities:

Product and service development. Guide deployment of new products and services in light of concerns about COVID-19 and the post-pandemic recovery. Strict health and safety standards, measures and regulations will be essential in luring travelers. At the same time, DMOs must work with both public and private partners to ensure an adequate range of safe, attractive options once they arrive, including new “wellness” travel products. Getting this right will require careful analysis across the entire travel experience, from dreaming, planning and arrival through to departure. Stakeholder engagement. Inform stakeholders, including governments and healthcare officials and travel industry suppliers, of unified communication messages and collaborate with them on setting travel and health standards. Encourage stakeholders to help communicate marketing messages to expand communication channels, and lobby government decision-makers to reduce barriers to travel. Marketing. Reallocate marketing spend by channel, and guide campaign messaging and timing.

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 17 The Right Products and Services at the Right Time

As the world recovers from the establishing itself as a credible COVID-19 pandemic, demand participant in the effort to ensure for travel will be largely shaped that the destination’s healthcare by perceptions of a destination’s system is adequately prepared health conditions and standards to receive travelers in case they of medical care. Therefore, get sick, and communicating the DMOs must take on the destination’s safety through its unfamiliar task of protecting the marketing messages. health and safety of travelers by

To that end, DMOs should promote the full range of health and safety measures across the entire travel journey. Countries and companies around the globe are already implementing advanced travel safety measures to reassure visitors, to prepare them for traveling, and protect them once they arrive. These include:

Holistic health and safety protocols. Greece’s Minister of Tourism, for example, has outlined nine health and safety protocols (“The nine rules for tourists, flights, and hotels in Greece”) in response to COVID-19. Rapid COVID-19 tests, medical checkpoints, and sterilization robots at airports. For example, Emirates Airline, in partnership with Dubai Health Authority, tests passengers before boarding and makes test results available within 10 minutes, allowing the airline to clear each and every passenger. And Hong Kong Airports has deployed autonomous robots equipped with both a UV light sterilizer and an air sterilizer that kill up to 99.99% of bacteria and viruses in the air and on object surfaces in just 10 minutes. “Clean certification” for hotels. Tourism authorities in both Singapore and Portugal have partnered with local health authorities to issue “clean and safe” certificates for hotels. Others have turned to international organizations such as the UN’s World Trade Organization and the WTTC to validate the measures they’ve taken to ensure traveler safety. Such efforts help promote strong standards of hygiene and enable visitors to differentiate between certified venues and others.

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 18 Special travel insurance. Cyprus provides travel insurance to ease tourist’s infection anxieties by promising to cover trip costs if a traveler contracts COVID-19 while visiting the country. The coverage includes lodging, food, drink, and medicine for patients and their families. Contactless technology. A variety of high-tech solutions have been implemented as well. Some are as simple as no-touch payment and e-wallet technology and virtual or self-guided audio tours. Others are more avant-garde measures. Some airports are using facial and iris scanning for self-service bag drops, queue access, boarding gates, and retail and duty-free outlets. Hotels have tried dynamically generated room service menus on mobile app. Hilton Hotels has developed a mobile app for opening hotel room doors, controlling room temperature and lighting, and operating TVs.

Meanwhile, clusters of countries measures in light of changing are banding together to create circumstances and as global multilateral “travel bubble” health and safety standards agreements in hopes of unlocking evolve. Travelers from different international tourism by devising source markets will likely have coordinated health protocols, different perceptions and mutually lowering travel barriers expectations of what is considered and reducing other travel friction safe and what measures they points for consumers. The Baltic expect to find when they travel. nations—Lithuania, Latvia, and So DMOs must gather the data Estonia—launched Europe’s first needed to sense which health and travel bubble by opening the safety measures matter most to borders between them, given their prospective travelers, depending similar epidemiologic situation on their primary source markets. and economic interdependence. A similar agreement between DMOs must take great care in Australia and New Zealand communicating their destination’s is expected to be in place by health and safety measures. September. China is working The focus should be on health to create a travel bubble with and safety, while promoting the Hong Kong, Macau, Taiwan, and friction-free nature of travel to and South Korea, and Singapore is within a particular destination. In in talks across Asia to establish order to build trust, however, such “green lanes” for travel. Looking messages must strike the right forward, countries might consider balance between the positive and implementing repatriation the believable—a lack of credibility agreements with source markets, will only scare off potential visitors. allowing travelers to return to their home countries to recover in the Finally, it is essential for DMOs case they still caught COVID-19 to listen to the traveler. Create with all the preventative measures a feedback loop for travelers in place. to provide input on their travel attitudes and experiences, and use Such measures are essential to the information gathered to adjust making sure their destinations are safety measures and marketing safe, and attractive to travelers. messages accordingly. But the situation with respect to COVID-19 is volatile, and Only by being among the leaders DMOs cannot rest easy. Instead, in global travel safety will they be they must constantly monitor able to compete successfully for and update their travel safety visitors from home and abroad.

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 19 Working with Stakeholders

If DMOs are to carry out their plans to ensure a safe destination for visitors and effectively communicate its attractions as a place to visit, they must identify and engage with the key players in their extended travel ecosystem to deliver unified messages around the safety measures being put in place. These stakeholders include: Government entities, including health authorities and road and transport authorities, are instrumental in making sure health and safety measures are in place. Travel and tourism industry players are just as eager to attract travelers as are DMOs. These include local airports, domestic and international airlines and hotels, as well as international cruise lines, traditional and online travel agents, tour operators, and destination management companies. Other industry players, such as local transportation companies, entertainment and event companies, and services like cleaning companies, also benefit immensely from travel and tourism.

To keep all stakeholders informed resurgence of travel in their market. and engaged, DMOs should act as This could be accomplished in a clearinghouse for all information several ways, such as a website on the health and safety measures information portal, industry in place, and provide them regular newsletter, detailed industry reports, updates on the prospects for the Q&A helplines, or live chatbots.

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 20 Conlcusion

Proper health and safety travel demand curve and devise measures, new products and successful marketing campaigns services, and alliances with is the subject of the next report industry stakeholders are in this series. foundational elements DMOs must put in place as they prepare Meanwhile, as international for their borders reopening and borders remain closed, DMOs travel resuming. As interest in the everywhere need to destination grows, DMOs must focus on domestic travel ensure to activate and accelerate opportunities, and as would-be implementation of their targeted travelers and tourists dream of marketing strategies to serve the their next travel experiences, pent-up demand and capture DMOs everywhere must act now market share. How DMOs can to prepare and ensure that those use “lighthouse” data and upcoming experiences meet insights to stay ahead of the travelers’ growing expectations.

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 21 Contributors

BCG

Lena Zurkiya | Principal

Konstantinos Konstantinidis | Project Leader

Eric Satzger | Project Leader

COVID-19 Consumer Sentiment team

BCG’s Center for Consumer Insight (CCI) team

Google

Pierric Duthoit | Google, Sector Lead, Branding MENA and Global Tourism Acceleration Lead

Elie Tabchouri | Google, Industry Head Public Sector & Telco, MENA and Head of Global Tourism Acceleration Center

Iva Kutle Skrlec | Google, Global Destination Marketing Partner

Joyce Abou Jaoude | Google, Industry Manager, Public Sector MENA and Destination Marketing Consultant

Mirian Itani | Google, Head of Strategic Partnerships, MENA

Dina Alsamhan | Google, Industry Head, KSA

Katherine Vargas | Google, Communications Manager, Corporate and Brand Communication

Sara Hamdan | Google, Editor-in-Chief, Think with Google, MENA

Chaza Merchak | Google, Product Marketing Manager, MENA

Consumer Sentiment and the Impact of COVID-19 on the Travel and Tourism Industry 22