Financial security and safety are top priorities among travellers today, according to new research from Expedia Group, which says that price is no longer the “primary driver” of travel decisions.
The company’s latest data reveals “shifting views on travel,” including positive sentiment on vaccine passports and increased budgets, the company said in a release on July 28.
The findings are part of Expedia’s Traveller Value Index, which examines the views of 8,000 people in eight countries to understand their values and expectations as the COVID-19 pandemic becomes more controlled around the world.
“As vaccination rates rise and borders open across the globe, people are ready and eager to travel. However, the months of uncertainty are weighing on their travel decisions and shifting the conventional belief that price is the top driver of bookings,” said Ariane Gorin, president, Expedia for Business, Expedia Group. “These insights show people want to book with trusted travel providers that will deliver on their experiences, keep them safe, and protect their financial investments.”
Improved outlook for 2021 & beyond
The Traveller Value Index shows that people are making travel a financial priority.
More than a third (34%) of travellers have larger travel budgets now compared to 2020.
Nearly one in five respondents globally (18%) expect travel to be the activity they spend most on in 2021, on par with major spending items such as home renovation (18%) and ahead of entertainment (12%), buying or taking care of a car (11%), or healthcare (11%).
Additionally, more than third (36%) say they would trade a pay raise for more vacation days, the Index says.
Frequency, length of travel
Travellers are thinking differently about the frequency and length of travel, the Index says.
Many (60%) are opting for domestic travel in the short-term.
However, they are planning to get away more often, nearly half (41%) wanting more frequent, shorter, trips.
The outlook for international travel is also improving, with more than a quarter (27%) of travellers considering a trip to another country in the next year.
In fact, nearly three-quarters (71%) of travellers are comfortable showing a vaccine passport to travel internationally.
The research also shows an increased desire for new and different experiences over nostalgic destinations, with three-quarters (75%) of travellers likely to select a travel destination they’ve never been to before.
Additionally, more than half (52%) are likely to use a new mode of transportation, and nearly a quarter (22%) are looking for a once-in-a-lifetime experience on their next trip.
Decisions reflect personal values
Travellers are also continuing to make value-based decisions that reflect their own personal views when booking travel.
Travellers want to support sustainable practices, with nearly three in five (59%) willing to pay higher fees to make their trip more sustainable.
Additionally, a majority (65%) are more likely to book with travel providers that have inclusive policies.
This includes properties that are owned by women and/or people of colour, are welcoming to the LGBTQIA+ community, and those that are supportive of people with disabilities.
Financial security, safety are top priorities
The Traveler Value Index ranks factors shaping booking decisions across multiple travel experiences, including the ability to get a full refund if plans change; atypical, low pricing cause by low demand during the pandemic; contactless experiences; environmentally friendly policies; enhanced cleaning and disinfection procedures; flexible policies to change bookings; and first-class benefits and upgrades.
Financial security and safety rank as the highest priorities, the research says.
More than one in four travellers most value the ability to get a refund, particularly for airline (26%) and vacation rental (26%) experiences, followed by enhanced cleaning and disinfection.
The results highlight a need for travel providers to clearly communicate cancellation policies and cleanliness measures to help ease any anxieties and build confidence.
The data shows differences in values by age group, indicating that younger groups are less focused on price and refunds.
These include refunds for hotels and vacation rentals and the ability to get a full refund increases in value with age.
However, travellers under the age of 40 in the U.S. and Japan rank enhanced cleaning the most important factor in hotel bookings, while also seeing more value in contactless experiences and premium benefits.
Airline travel decisions are also shaped by financial security, where more than a quarter of respondents (26%) most value the ability to get a full refund.
However, millennial and Gen Z travellers, or travellers under the age of 40, see more value in contactless experiences, first-class benefits, and environmentally friendly policies compared to older generations.
North American millennials, or those born between 1981 and 1996, value flexibility in car rental decisions, ranking the ability to make changes second.
The trend of North American millennials valuing flexibility is also evident in air travel, showing how the ability to change plans without penalty is worth just as much as lower pricing.
Cruise passengers are the only respondents from numerous countries who rank low pricing as the top value.
However, North American Gen Z travellers, or those born in 1997 onwards, rank environmentally friendly policies second in the list of values, showing that younger age groups weigh the environmental impact of their travel decisions in addition to price.
Click here to view the full Traveller Value Index report and snapshot reports by industry.