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Catch Flights, Not Virus: the New ‘Travel Persona’ in a Post COVID World

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Catch Flights, Not Virus: the New ‘Travel Persona’ in a Post COVID World WHITEPAPER Catch flights, not virus The new ‘Travel Persona’ in a post COVID world 2021 © IGT Solutions: www.igtsolutions.com 1 www.igtsolutions.com Contents 1. Methodology 3 2. Traveler’s outlook during the thick of the Pandemic? 3 2.1 The travel itch 4 2.2 The business traveler, the leisure traveler and everyone in between 6 2.3 ‘Safe Travels!’ …no longer a generic colloquialism 7 2.4 IATA: Looking down on travellers since 1945 10 3. The traits of the new Travel Personas 12 3.1 Looking for a comfortable, short distance and on the road experiences 12 3.2 The thirst for an outdoor escape 15 3.3 The rise of the Workation and Staycation as lifestyle 17 3.4 The conscious travel 19 3.5 Looking for a germ and virus free experience 21 3.6 Take off without taking off 22 4. Recommendations: How to get ready for the new ‘Travel Persona’ needs. 25 4.1 Move to a touchless and contactless experience 26 4.2 Go green …oh the millennials! 27 4.3 Realign offers to new lifestyles 27 4.4 Allow in-advance-booking planning: 28 © IGT Solutions: www.igtsolutions.com 2 Catch flights, not virus: The new ‘Travel Persona’ in a post COVID world 1. Methodology On March 11, 2020, the World Health Organization (WHO) declared the coronavirus (COVID-19) outbreak a global pandemic, prompting governments in a series of lockdowns, travel bans and close-open borders. Fast forward to March 2021, many research studies show the progress of traveler sentiment where a majority of consumers believe that the time has come for travel once again. Some are a bit more cautious and monitoring the infection rates domestically and around the world, waiting for vaccines to be distributed and administered. It can be safely said that personal risk assessment is the top most concern of most governments This paper is a compendium and analysis of recent surveys and research studies undertaken for travel industry. The scope of this document is to combine IGT’s on ground experience with some of the new trends that have emerged Post–Covid in order to provide enough information on the ‘Travelers of the new normal’ 2 Traveler’s outlook during the thick of the Pandemic Travelling is back on the 2021 agenda for an increasing number of consumers worldwide, although many might do so for pleasure rather than business for the first period. According to Expedia group’s report, around 44% of the interviewed people will take more trips in 2021 compared to 2020 . While it is easy to imagine that travel sector will show good come back compared to 2020, there are a number of researches that show the will and wish of travelers to go back on the road even more than they did during the pre-Covid times. Almost half of all the countries in the world have allowed tourism activities for domestic consumers and around 31% of these countries are already accepting foreign travelers as well from select countries2 . 1Expedia groups, “2021 Travel Trends Report” 2Headout, “The Future of Travel: Emerging Travel Trends in the Post-COVID Era” © IGT Solutions: www.igtsolutions.com 3 2.1 The travel itch According to a survey by Airbnb, 54% of the American people that were interviewed, are planning to travel in 20213 , clearly indicating that they are missing travelling. Not a long time back, when the Pandemic was at its peak and lockdowns were imposed, another survey was conducted by Oliver Wyman, in which more than 4,600 people across US, UK, Canada, France, Spain, Germany, Italy, Australia and China participated. The goal of this survey as the company stated was to “capture how the pandemic was affecting attitudes and opinions on travel”4 . At the time, Oliver Wyman observed that travelers were having a cautious outlook on travel. Despite being excited about travelling again, most people looked towards World Health Organisation (WHO) to give an “all clear” sign before doing so., While they waited for travel restrictions to relax for international travel, they planned their domestic trips. All in all, consumers were speculative, and put their faith in the authorities. 3Airbnb, “From Isolation To Connection— Travel in 2021” 4Oliver Wyman, “Glimpses of Recovery” © IGT Solutions: www.igtsolutions.com 4 In October, 2020, Oliver Wyman conducted another survey with same sample size across the same markets, to see evolution of travel sentiments during the pandemic. There seemed to be a significant change as people had lost trust in WHO and were rather taking decisions based on their own judgement. A majority of consumers believed that the time has come for travel. Other’s being a bit more cautious were taking a speculative approach by monitoring infection rates domestically and around the world to take an educated decision. Many were also waiting for the vaccines to be available before they took a trip. Therefore, it could be deduced that the personal risk assessment had taken over government advisories in most cases. According to Vrbo ‘Trend Report 2021’ , a survey conducted on 8,000 families in 8 countries, around 82% of the families are planning to travel in 2021 with around 22% of respondents claiming to do it to improve mental health and as an act of self-care5. Around 61% of those families had cancelled their travel plans during the Covid19 period. However, there is good news for the industry, as 65% of the respondents are planning to travel more now compared to pre-Covid times, with around 33% planning to spend more than the usual budget. 5Vrbo, “Trend Report 2021” © IGT Solutions: www.igtsolutions.com 5 2.2 The business traveler, the leisure traveler and everyone in between A key development that the pandemic has brought out among businesses is the replacement of traditional processes with technology aided virtual work environment that is turning out to be more than adequate for communication, both internally and externally. With many businesses moving towards virtual collaboration, they are either targeting “zero emissions” or a vast reduction in their carbon footprint. According to Oliver Wyman, over 40% of all business travelers plan to minimize their movements in the future. Surprisingly, this number has seen a sharp spike after the restrictions have been eased. It was observed that almost 30% people were planning to reduce business travel back in May, 2020. With many businesses targeting “zero emissions” in the near future, virtual collaboration has presented them with a suitable way to reduce huge chunks of their carbon footprint. All indications seem to be pointing towards the acceptance of virtual working technologies, which also appear to be taking over the business travel segment. However, looking at the bigger picture, a significant number of consumers, almost 45% of them plan to resume business travel post - pandemic, with almost 10% of them planning to increase it. The sentiment of in-person meetings being the best way to establish new relationships and broadening networks is still deep-rooted within some businesses. © IGT Solutions: www.igtsolutions.com 6 Business travel is the least missed according to an Airbnb study, with only 5% of respondents missing this activity versus 37% missing leisure travels. When it comes to leisure travel, travel companies need to learn and adapt to the post-pandemic changes and in due course of time,they will become much more resilient. After all, the travel industry has seen a pandemic before and has bounced back fast. Many are willing to go back on vacation as soon as the worst of the pandemic has passed, with more than 60% willing to travel as much if not more as they did before the outbreak of the pandemic. An interesting development from the last survey was: Overseas travel is now clearly on the table, at least for over half of the consumers in Canada, the UK, France and Germany. Travel is not just confined to leisure or business, for many, it is a necessity. In fact, during the height of the pandemic, ‘essential’ travelers were defined across all borders. Restriction and travel policies were specifically adjusted to those deemed as essential travelers: • Emergency Travelers • Long term Immigrants, students, expatriates, government officials • Travelers for Imperative gatherings & events (Wedding, funerals, Family reconnection) Although these travelers did not happen to have a direct impact on hotel reservations and tourism industry, some of them might have been subjected to specific hotel quarantine regulations. 2.3 ‘Safe Travels!’ …no longer a generic colloquialism Safety has become top priority for any kind of travel. Studies have indicated that travelers are cautious about close or prolonged exposure to others, which is common in long-distance train journey, public transport or a shared ride. Most travelers will be comfortable taking a flight when they travel, while car rental may also be a suitable option. Similarly, hotel rooms and restaurants are going to be the first to attract consumers as the pandemic loses steam, while crowded places such as concerts, sports events and cruises might remain out of luck. Therefore, it’s safe to conclude that people will travel but will treat safety as their first priority. Additionally, a survey conducted by NerdWallet showed over 45% of U.S. travelers now will likely purchase travel insurance as compared to almost 20% before the pandemic. Travelers also have a sense of realization about not just the importance of travel insurance but also the importance of choosing the right insurance policy. Which means , unlike before, a majority of consumers will be reading the fine print. © IGT Solutions: www.igtsolutions.com 7 According to the same survey, around 83% of ‘Post-Covid’ travelers would prefer to stay in large hotels instead of accommodation rentals.
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