SMARTER, KINDER, SAFER: BOOKING.COM REVEALS ITS PREDICTIONS FOR THE FUTURE OF TRAVEL 2 INTRODUCTION With few facets of our lives and world unchanged by the unparalleled impact of the Coronavirus (COVID-19) pandemic, travel too will be forever re-shaped by this extraordinary moment in time. This report provides unparalleled new insights, data and research from a global study conducted by Booking.com into the Future of Travel. 20,000 travelers The research spans 20,000 travelers across 28 countries, combined with proprietary search and endorsement data, to uncover the trends that will shape the way we experience travel in the year ahead, and beyond – predicting the unpredictable during Across countries these uncertain times within the 28 travel industry. 3 ARJANSenior Vice President and Chief Marketing DIJK Officer at Booking.com 2020 has been a year like no other and while it will be some time “before travel returns to pre-pandemic levels, all signs point to the fundamental and enduring role that travel plays in all our lives. It continues to bring moments of joy and inspiration to people across the globe during times of uncertainty, whether through dreaming and planning, or cherishing the trips we have been able to take. Enhancing our understanding of one another and our common desire to explore beyond the horizon, I believe that travel has a unique potential to come back stronger than ever in the years ahead as a primary driver of growth, equality and prosperity for people everywhere. In the meantime, with our mission to make it easier for everyone to experience the world, we will be there for our customers offering the widest choice, great value and the easiest experience from anywhere and on any device so travelers can enjoy all of the unforgettable experiences this world has to offer. “ 4 BOOKING.COM’S PREDICTIONS FOR THE FUTURE OF TRAVEL With over half (53%) of global travelers responding that they won’t be comfortable traveling until a Coronavirus vaccine or treatment is in place, it may be a long time before we experience the world as freely as we did previously, but innovation within the FAMILARISTS travel industry will accelerate faster than WANDERMUST VITAL VALUE NOT TOURISTS ever to respond to marked shifts in travel expectations and behaviors. Travelers will look for a heightened level of travel safety and more sustainable travel offerings, as well as evolve their preferences for where and with whom they travel. Newfound appreciation for doorstep delights will endure alongside an SEARCH SAFETY IMPACT abiding love of the far flung, and travelers will find new ways to blur the lines between work ESCAPISM CLEANS UP AWAKENING and travel. All of which will catapult a demand for deeper value from the trips we book in the future. SIMPLE BYE BYE 9 TO 5 PLEASURES SPONTECHNAITY 5 #1 Our time at home has made us crave the world outside more than ever. of travelers have a heightened % desire to see even more of the 53 world. Argentina: 61% Australia: 45% Brazil: 65% Canada: 46% WANDERMUST China: 69% Colombia: 74% Germany: 62% Amidst new waves of travel Denmark: 46% Spain: 53% are excited about traveling again hiatuses, restrictions and 65% France: 45% continued uncertainty, our after lockdowns Hong Kong: 80% Croatia: 46% innate human desire to travel Israel: 41% has not been dampened. will plan a trip to make up for India: 65% Italy: 60% 38% a celebration missed due to Japan: 26% Travelers also report that they plan Coronavirus South Korea: 36% Mexico: 66% to take a similar number of trips both Netherlands: 26% domestically and internationally in the New Zealand: 40% Russia: 48% 12 months after travel restrictions are Sweden: 47% lifted in their country as they did in Singapore: 53% the year pre-pandemic (March 2019 - Thailand: 65% Taiwan: 64% March 2020). UK: 47% USA: 51% Vietnam: 56% 0 10 20 30 40 50 60 70 80 6 #1 WANDERMUST will not take traveling for 61% granted in the future Argentina: 31% Australia: 71% intend to rebook a trip they had to Brazil: 86% 40% cancel due to Coronavirus Canada: 75% China: 46% Colombia: 43% Germany: 60% Denmark: 59% Spain: 63% France: 65% want to travel more in the future Hong Kong: 64% to make up for time lost in 2020, Croatia: 63% 42% rising up to 51% of Gen Z and 49% Israel: 68% India: 63% of millennials Italy: 58% Japan: 61% South Korea: 50% Mexico: 41% Netherlands: 45% New Zealand: 72% We can expect travel companies to get Russia: 40% Sweden: 68% creative in 2021 with new itineraries and Singapore: 76% recommendations designed to capture Thailand: 77% the imaginations of travelers who missed Taiwan: 47% UK: 75% out on trips in 2020 and will be looking for USA: 74% somewhere stunning to explore to make Vietnam: 57% their next trip more meaningful. 0 10 20 30 40 50 60 70 80 90 7 #2 expect travel companies to % support travelers’ future travel 68 plans via promotions Argentina: 82% Australia: 62% Brazil: 82% Canada: 67% VITAL VALUE China: 73% Colombia: 85% Germany: 48% Denmark: 43% 62% of travelers will be more price conscious Spain: 72% The financial legacy France: 63% of Coronavirus will when it comes to searching and planning a trip and Hong Kong: 74% inevitably see people 55% are more likely to hunt down promotions and Croatia: 70% savings, behaviors that are predicted to last years. Israel: 76% demand more bang for India: 74% Italy: 71% their buck in the future. And while travelers are keen to support the industry Japan: 55% in its recovery (70%) and want their future bookings to South Korea: 64% Mexico: 82% help rebuild communities around the world (67%), they Netherlands: 42% will expect a lot more value beyond the price tag from New Zealand: 63% Russia: 82% the travel industry in return, such as: Sweden: 48% Singapore: 70% Thailand: 85% Taiwan: 75% 74% want travel booking platforms to increase UK: 62% USA: 63% their transparency about cancellation policies, Vietnam: 77% refund processes and trip insurance options 0 10 20 30 40 50 60 70 80 90 8 #2VITAL VALUE prefer a discounted trip to a place they wouldn’t have % think airlines need to offer 40 otherwise chosen than paying 74% more flexible tickets more for a dream destination Argentina: 38% Australia: 44% prefer the certainty of a trip they Brazil: 46% could afford in the short-term Canada: 43% 53% China: 35% rather than saving for a dream trip Colombia: 46% in the future with more uncertainty Germany: 29% Denmark: 21% Spain: prefer refundable accommodation, 42% % France: 46% 46 this number rises to 48% for Gen X Hong Kong: 30% Croatia: 48% Israel: 36% India: 57% will make booking decisions Italy: 45% 38% based on cost Japan: 37% South Korea: 36% Mexico: 36% Netherlands: 22% New Zealand: 43% want the flexibility to cancel Russia: 40% 36% without being charged Sweden: 31% Singapore: 47% Thailand: 58% Taiwan: 21% UK: 35% USA: 47% Vietnam: 55% 0 10 20 30 40 50 60 9 #3 are eager to travel to nearby 58% regions/countries that are FAMILARISTS accessible by car Argentina: 59% Australia: 61% Brazil: 58% NOT TOURISTS Canada: 62% China: 55% Colombia: 67% Germany: 56% Denmark: 47% As travelers navigate a new Looking ahead, staying closer to home and Spain: 64% Coronavirus world, local travel becoming familiarists rather than tourists will France: 61% continue to retain its importance on travel Hong Kong: 39% has risen to the forefront as it Croatia: 71% agendas. 47% of people still plan to travel remains easier, safer and often Israel: 52% within their own country in the medium India: 66% more sustainable. term (7-12 months-time), with 38% Italy: 59% Japan: 55% planning to do so in the longer term (over South Korea: 58% a year’s time). Mexico: 67% % Netherlands: 57% 24 New Zealand: 61% When it comes to local travel, 43% plan to Russia: 54% Sweden: are interested in seeking out hidden explore a new destination within their 48% home region/country and 46% will take Singapore: 44% gems (e.g. new restaurants) to tell their Thailand: 73% local friends and family about, when the time to appreciate the natural beauty Taiwan: 59% UK: travelling locally of their home country, while locally or not, 47% half (50%) intend to travel somewhere they’ve USA: 60% Vietnam: 43% already been previously for its familiarity. 01020304050607080 10 #3 FAMILARISTS NOT TOURISTS intend to travel somewhere Doorstep delights offer both cost and they’ve already been time savings to which destinations and 50% previously for its familiarity. accommodations will respond by offering more historic and cultural heritage tours Argentina: 56% to educate and entertain visitors, as well Australia: 51% as vying for tourists’ affections through Brazil: 63% original offerings such as guest chefs and Canada: 56% China: 48% bespoke cocktails. Colombia: 70% Germany: 50% Denmark: 35% Spain: 49% France: 47% Hong Kong: 46% With use of Booking.com’s ‘pet-friendly’ filter Croatia: 57% Israel: 30% more than doubling since the start of travel India: 57% restrictions**, new and furrier breeds of Italy: 42% travelers will also increasingly need catering Japan: 37% South Korea: 32% for as we look ahead. Mexico: 63% Netherlands: 34% All this in turn will fuel a Renaissance of New Zealand: 51% Russia: 58% road trips to explore forgotten local gems, Sweden: 45% a renewed passion to support local business Singapore: 50% and communities as they seek to rebuild Thailand: 59% intend to travel to the other side Taiwan: 44% and inspire a newfound sense of pride in the % of the world by the end of 2021, UK: 49% 21 history and beauty that’s just around USA: 57% compared to only 6% by the end the corner.