Revenge travel is reaching its peak, but the cost-of-living crisis is starting to impact leisure travelers' behavior and spending
According to a recent travel study, over half of consumers are likely to spend more on their leisure travel in 2022
[Boston, U.S. September 20, 2022] – As travel restrictions have been lifted and pandemic-related concerns are fading away, travel is recovering strongly. A recent Global Travel Trends study by global consultancy Simon-Kucher & Partners reveals that 63% of cross-national respondents see vacation travel as a special treat that they are looking forward to the most this year, compared to 47% last year. Over half are likely to spend more on leisure travel this year, suggesting that after 2 years of lockdowns and restrictions, “revenge travel” is happening across the globe. For example, in North America April air traffic rose 230.2% versus the 2021 period, which was slightly above the 227.9% rise in March 2022 compared to March of 2021.Besides airport and airline staff shortages, the “revenge travel” trend is behind summer chaos of long airport queues, flight delays and cancellations.
However, as the cost-of-living crisis unfolds, we might be reaching the “peak” of revenge travel. While 40% of respondents have already booked their summer holiday for this year, there is still a quarter of respondents who do not plan to go on holiday this summer at all. One third (36%) of these respondents indicated their main reason for not going on a holiday is due to financial hardship, as rampant inflation has hit their spending power whereas COVID plays a smaller role.
While consumers expect prices for accommodation to increase by 25%, they are increasingly likely to spend more on grocery shopping and holidays, and less on restaurants, clothing and day trips. The study shows that consumer booking habits have also shifted. Today, consumers tend to book their vacation in advance to benefit from attractive deals and discounts. It is also noted that one-third (32%) of respondents would pay more for an environmentally sustainable vacation. Becoming ‘greener’ is in favor, particularly among young, wealthy city dwellers.
Business travel is also starting to bounce back. According to the study, it is predicted that the number of business trips will increase by 36% in the next 12 months.
Complete study findings are available upon request, including country splits.
*About the study: The Travel Trends Study was conducted online between June and July 2022 by the global consultancy Simon-Kucher & Partners. 5,250 consumers from across 7 countries were surveyed on leisure and business travel.
For more information, please contact:
Name: Niki Irby
Email: niki.irby@simon-kucher.com
www.simon-kucher.com
Simon-Kucher is a global consultancy firm with more than 2,000 employees in 27 countries. We focus on delivering measurable revenue and profit growth for our clients. We do this by optimizing our clients’ pricing, sales, and marketing strategies—better and more sustainably than anyone else. With more than 35 years of experience in monetization, our experts work across all industries and types of business. We are regarded as the world’s leading pricing advisor.