Travel Trends 2024: Global Report Unveils a Polarized Market Shaped by Luxury and Spontaneity
Simon-Kucher’s study highlights soaring demand for personalized travel, Gen Z’s appetite for adventuring flexibly, and the rising expectation for sustainability
[London, 2 July 2024] - In its latest Travel Trends report, Simon-Kucher reveals a nuanced picture of the travel landscape for 2024. The study, conducted with over 5,400 global respondents, underscores significant variations in travel budgets, preferences, and behaviors across different demographics.
“The travel industry is experiencing significant changes, influenced by diverse traveler preferences and evolving economic conditions” said Ana Morillo, Senior Director at Simon-Kucher and study leader. “Our research reveals that travelers are becoming increasingly discerning, seeking value and unique experiences. The demand for sustainable and spontaneous travel, along with a rising interest in luxury, is reshaping the industry landscape. Companies that adapt to these emerging trends will exceed traveler expectations, fostering loyalty and achieving incremental growth in this competitive market.”
Key Findings:
1. Budget Shifts Reveal Polarized Travel Spending:
- Travel budget growth varies significantly by country, ranging from -4 percent to +15 percent
- France and Germany are the only countries facing leisure budget reduction in 2024.
- Growth will be primarily driven by baby boomers with greater purchasing power.
2. Younger Generations Are Shaping the Future of Travel:
- The youngest travelers with less average budget per trip are three times more likely to seek international trips than Baby Boomers and Gen X.
- Gen Z and Millennials prioritize spontaneous, experience-based trips – younger generations are 30 percent more likely to book trips just two weeks in advance compared to older generations.
- 70 percent of travelers across all generations prioritize sustainability when booking trips. However, Gen Z and Millennials prioritize sustainability more than older generations.
3. Luxury Travel and Personalization Lead the Way:
- Luxury travelers engage in travel twice as frequently as other travelers, with a +50 percent interest in recognized brands and personalization.
- They emphasize on the quality of hospitality amenities and favor destinations with positive reviews – 60 percent cite reviews as influential factors in their decision-making process.
.4. Digital Revolution in Business Travel:
- More than 25 percent of business travel bookings will be through online travel agencies (OTAs)
- ‘Bleisure’ continues to rise: More than 60 percent of business travelers occasionally extend their trips for leisure, while 14 percent always do so.
"Following the bust of the pandemic and the revenge travel boom that followed, our study reveals that we are now entering a 'boom & bust' age within the travel industry, with some players experiencing a boom and some experiencing softer market dynamics," said Dimitris Hiotis, Senior Partner and Head of Leisure, Travel & Transportation at Simon-Kucher. "Different segments of travelers require tailored approaches: budget-conscious younger generations seek value and spontaneity, while affluent travelers demand luxury and personalization. Understanding these polarizations and targeting feeder markets with varying willingness-to-pay will be crucial for companies aiming to thrive in this dynamic environment."
Complete study findings are available upon request.
*About the Study: The Travel Trends study was conducted in April-May 2024 by Simon-Kucher. The study surveyed more than 5,400 consumers across seven countries (France, Germany, Netherlands, Spain, UAE, UK, and US), including representative quotas for age, gender, living area, education level, employment status & income level.
Janine McCormac
janine.mccormac@simon-kucher.com
About Simon-Kucher
Simon-Kucher is a global consultancy with more than 2,000 employees in 30 countries. Our sole focus is on unlocking better growth that drives measurable revenue and profit for our clients. We achieve this by optimizing every lever of their commercial strategy – product, price, innovation, marketing, and sales – based on deep insights into what customers want and value. With nearly 40 years of experience in monetization topics of all kinds, we are regarded as the world’s leading pricing and growth specialist.