Travel Consul, the leading international travel marketing alliance, has released the results of its second survey that reveals the impact of COVID-19 on the industry and the future recovery of global travel distribution.
Over 1,000 travel executives (tour operators and agency owners) from over twenty outbound countries participated in the Travel Consul global survey, including respondents from Australia and New Zealand. This second round gathered new insights related to health certifications, travellers’ preferences and international advance bookings.
GTI, a Travel Consul partner agency, was actively involved in this first-of-its-kind global study. Top findings from the Australia and New Zealand markets include:
Destination trust is a priority with safety and health measures being top purchase driver considerations
Destination/brand trust is paramount to our market with respondents reporting that the destination country government’s management of the pandemic (74%) and destination health and safety certification (63%) are seen as the top considerations overtaking price (40%) when choosing a holiday destination. These top three considerations are in line with the global survey result.
Social distancing is a key factor in the type of holidays favoured
Top types of travel being considered are gearing towards travel where social distancing can be in place including hotels and resorts (26.4%), self-catering rental accommodation (22.64%), caravans/camping (20.75%), small groups of 8-15pax (18.5%), fly-drives (16.9%).
Businesses are adapting and investing in new and current products
Companies have invested in their businesses by adjusting their business models (47%), reviewing internal documents (43%), investing in technology (40%) and focusing on training (25%). We are also seeing companies improving current products (30%), designing new products (27%) and new destinations exampled (22%).
The outlook sees opportunity for new partnerships, product and marketing channels to develop amongst the trade
Whilst 70% of the respondents believe that modifying cancellation policies or terms and conditions will be among their main undertakings in 2020-2021, they also see opportunities with product and marketing to customers. 53% state they will create new partnerships with new buyers or suppliers and also diversify or change product/destination offerings. Also 58% will focus on expanding communication channels and 23% will spend more on marketing moving forward. Social media (67%) was highly rated in marketing initiatives that respondents will focus on in the coming months, followed by digital marketing (47%), advertising (29%) and sales (29%).
Continued international border closures leads to cancellations over postponement
This market has seen the highest % rate of cancellations in the global survey as the international borders remain closed. 70% of respondents reported that clients have canceled bookings with 34% postponing until 2021. Our trade are also reporting low new bookings at this time with more consultation and advice being given and 72% stating that clients are still waiting to decide when to travel, with over 12% stating clients will in seven months to a year.
Destinations rank highly in being a data source throughout the pandemic
Respondents have highlighted that destinations are in the top five data sources throughout the pandemic, along with tour operators, government, industry friends and trade media.
DMOs need to consistently provide up to date information to the trade and marketing campaigns with a CTA to book through the trade
Over half (53%) of the trade want DMOs to provide useful and timely data as a key priority and then nearly half (45%) want to see an info hub for trade partners and marketing campaigns with trade call to action. DMOs to introduce a health and safety certification (42%) is also key for the trade. Whilst training sessions (27%) and webinars (18%) are still ranking but importance is lower due now with trade wanting tangible tools to make sales.
Below are the key findings of the global survey:
Destination health certifications remain key for recovery
Once again, results from round II indicate that introducing health and safety certifications (nearly 60%) is the most important action destination organizations (DMOs) can do to help travel distribution partners. The next top three answers included marketing campaigns for consumers, presenting useful/timely data and info hub for trade partners.
When asked what the main client considerations are when choosing a destination, the number one answer is destination health and safety certification (74%). Destination country government management of the COVID-19 pandemic and price rank second and third, respectively.
Training leads to new product development
Business model adaptation is the no. 1 measure implemented during Q3 2020 as reported by nearly half of the respondents. Training programmes drop 11% with new product design (45%) and product improvement (35%) moving up the ranks.
Hotels & resorts among the top travellers’ preferences
Clients are showing a growing interest in hotels and resorts (64%) and all-inclusive resorts (60%). These preferences are followed by self-catering rental accommodation, small groups 8-15 pax and fly-drives.
International advance bookings
Clients are either waiting to decide when to travel (48%) or are booking an international trip less than a month in advance (21%). Last minute bookings are becoming more prominent for European travellers (35%). In contrast, 31% of North American clients are booking a holiday seven months to one year before departure.
How supplier policies are affecting travel distribution partners
45% of distribution partners believe that suppliers’ cancellation and flexibility policies are having a positive impact on their businesses.
Travel associations reported as primary data sources
Tour operators and travel agencies associations remain the preferred data source during this crisis (64%) followed by destination tourist offices (40%). Industry friends (35%) moved from the fifth to the third position in round II.
Marketing efforts for recovery are focused on social media
Regarding marketing activities during recovery, social media was clearly the winner with seven out of ten respondents claiming that social marketing was their main concept. Digital and sales respectively came in second and third.
How COVID- 19 is redefining roles and tasks
Similar to the first round of this survey, 70% of the respondents believe that modifying cancellation policies or terms and conditions will be among their main undertakings in 2020 and 2021. Offering insurance policies, however, saw a 12% increase.
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