WTM: ‘Revenge Travel’ Still in Full Swing, Rising Costs Not Discouraging Consumers
Rising travel and holiday costs have yet to dampen demand among consumers mainly because the “revenge travel” trend is still in full swing, according to the WTM Global Travel Report presented on Monday.
The report, unveiled on day one of World Travel Market (WTM) London 2023, says that “revenge travel”, a current trend that sees consumers catching up on travel after COVID-19, has likely mitigated the impact of high costs on consumer behavior so far.
“But it remains to be seen how higher prices will continue to impact travellers’ choices going forward,” the report, conducted in association with Tourism Economics, notes.
Despite the uncertain economic backdrop, however, the outlook is positive with many consumers demonstrating priority when it comes to spending on travel, the WTM Global Travel Report asserts.
Cost of accommodation (54 percent), cost of flights (48 percent) and Government bureaucracy/regulations (37 percent) all come further up the list of concerns than declining spend among travellers, which was identified as a concern by 33 percent of respondents.
Barriers, challenges to tourism
On the other hand, increasing cost of business and staffing issues were the top two concerns of travel businesses, identified by 59 percent and 57 percent of respondents respectively.
The report notes that global tourism continues to rebound strongly despite risks and challenges facing the industry. By the end of 2023, Tourism Economics predicts that global outbound trips will exceed 1.25 billion, which is over 85 percent of the peak level achieved in 2019.
The report says there are “many exciting possibilities” against a backdrop of growing demand: companies are using technology to address staff shortages; major cultural and sporting events have bounced back; and there is increased consumer demand for unique, memorable experiences, all of which present opportunities for tourism destinations and organisations.
“Bleisure” – blended business and leisure travel – among other business travel trends such as “workcations” was highlighted as the third biggest opportunity, stated by 53 percent of respondents.
Many organisations and destinations have repositioned themselves to effectively embrace this trend as individuals enjoy greater workplace flexibility now compared to pre-pandemic.
The wider trend for increased personalisation is one of focus and opportunity in the industry. A recent Mastercard-sponsored Harvard Business Review report found that more than half of businesses consider customer personalisation as an important way to increase revenue and profits.
“But economic challenges and global events will affect consumer confidence, and advances in technology, new consumer behaviour, and social and geo-political factors are among some of the risks and opportunities for tourism organisations across the world, the report says.
The exclusive WTM Global Travel Report presented findings from international research, using an expansive databank covering nearly 185 countries worldwide as destinations and as origin markets.
WTM London 2023 will run until Wednesday.
The Greek Travel Pages (GTP) is an official media partner of WTM London.