Four Key Actions To Capture the Vaccinated Traveling Consumer
I’m just back from my first trip since the pandemic started. What I experienced was not what I expected. Both flights were full, the Phoenix airport was crazy busy, and I’m guessing that a majority of travelers were not vaccinated. I booked my trip immediately after getting my first jab, scheduling it for when CDC guidelines said I would have full vaccine protection. Like almost everything else impacted by COVID, my journey, and I’m sure those of many other consumers booking travel again, has changed in many ways.
Coming back from the global pandemic is arguably the biggest challenge the travel industry has ever faced. But the good news is that there is huge pent-up demand, with travelers wanting to get back to vacationing and exploring as soon as it’s safe for them to do so. It’s critical that travel providers understand what consumer expectations are going forward so they can be ready to deliver a safe, exciting, and positive experience.
Implement and Over Communicate Safety Measures
Safety will continue to be a major concern among consumers as they’re putting together their vacation plans. More than two-thirds of all people are apprehensive about “life returning to normal” (healthinsurance.com/RMG Research). Making travelers feel safe and comfortable will be one of the keys to driving bookings. Providing clear and detailed safety information will be an important element of this. Plan on utilizing email and text messages to deliver relevant, timely insights that will help to alleviate any concerns that consumers might have before making their final decisions.
Historical Booking Windows Have Shifted
Relying on historical booking behavior will likely not be very helpful when forecasting demand for the balance of 2021. In many cases, prospective travelers are starting their trip research sooner, but they’re holding off on making final commitments until much closer to the actual departure date. Previously spontaneous travelers aren’t booking as much travel as they once did, and travelers over age 55 are also not making final decisions much in advance of when they travel. These forecasting challenges are further exacerbated because the vast majority of travelers do not expect to keep current reservations as they are. All of this means that booking windows will continue to be shorter, which will require travel providers to be more flexible with consumers and they will have to adapt to all these changes when predicting future demand.
Travelers Want Flexibility and Value
While the personal savings rate in the U.S. has nearly doubled to over $2.9 trillion, this will not translate to consumers spending this money like proverbial “drunken sailors”. Just like our family members who grew up in the Great Depression and exited that experience with lifelong financial cautiousness, post pandemic consumers are likely to also be value conscious. EuroMonitor calls these people “Thoughtful Thrifters” as they budget cautiously and purchase value-added and affordable products and services. In addition, losing money is a major concern for potential travelers. Flexibility is key, with over 83% of travelers saying that they want clear and easy-to-find information about refund, cancellation and rebooking policies.
Focus First on Road Warriors and Low Key Experiences
As vaccination rates rise and restrictions are lifted, frequent travelers, the road warriors who took three or more trips in 2019, will be among the first to venture out. While travelers are willing to consider a diversity of destinations, there will be some hesitance to go abroad. Less crowded, smaller towns and rural destinations will at first be the top choices, with more urban and cosmopolitan getaways gaining in popularity soon thereafter.
Travel providers that focus on safety, flexibility, and value will experience faster growth and increased profitability more quickly than those who stick to the more traditional, pre-pandemic business model. Now is the time to highlight the “hospitality” side of the hospitality business.