Global Travel Media » Blog Archive New research reveals price no longer primary driver of travel decisions | Global Travel Media

Home » OTA News » Currently Reading:

[sam id="86" codes="true"]

New research reveals price no longer primary driver of travel decisions

August 2, 2021 OTA News No Comments

New research from Expedia Group reveals shifting views on travel, including positive sentiment on vaccine passports, increased budgets, and an enduring demand for safety and financial security. The Traveller Value Index examines the views of 8,000 people in eight countries to understand their values and
expectations as the pandemic becomes more controlled in many parts of 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 and beyond
Despite a period of uncertainty, 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. In fact, 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 a third (36%) say they would trade a pay raise for more vacation days.

Travellers are thinking differently about the frequency and length of travel. 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
The Traveller Value Index reveals that travellers continue 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 and safety are top priorities
The Traveller Value Index ranks the factors shaping booking decisions across multiple travel experiences, including:
● The ability to get a full refund if their plans change;
● Atypical, low pricing cause by low demand during the pandemic;
● Contactless experiences like card-less hotel or vacation rental entry, online check-ins, or digital boarding
passes;
● Environmentally friendly policies such as a reduced use of plastics or locally sourced food and products;
● Enhanced cleaning and disinfection procedures;
● Flexible policies to change bookings;
● First-class benefits and upgrades.

Financial security and safety rank as the highest priorities for travellers across all experiences, a shift from the
conventional wisdom that price drives consumer behavior. 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 Traveller Value Index also shows differences in values by age group, indicating that younger groups are less
focused on price and refunds. These include:

● For hotels and vacation rentals, the ability to get a full refund increases in value with age. However, travellers under the age of 40 in the US 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 travelers, 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.
Visit our website to download the full Traveller Value Index report or our snapshot reports by industry.

Comment on this Article:







Subscribe To Receive Our Daily Global Travel Media Newsletter

The FIRST Australian-based news alert is to be delivered every Morning to your Inbox before you arrive at your desk.

Sponsor / Partners

Luxury Traveller by Robert La Bua – SideBar  Position -1

ADVERTISEMENTS

ADVERTISEMENTS

ADVERTISEMENTS

ADVERTISEMENTS

ADVERTISEMENTS

CT Partner Sidebar

GLOBAL TRAVEL MEDIA VIDEOS


sidebar_middle –>

Visit TravelManagers

ADVERTISEMENTS

TravelManagers Tower 2 300x600px

Advertisments

Huawei Gentel Monster banners Leader
Global Travel Media
%d bloggers like this:
Global Travel Media
%d bloggers like this:
sitemap