That’s why travel brands are dancing all the way to the bank
In a clear sign that travel is back, I’ve been getting a lot of visitors lately and it’s such a pleasure to be playing tour guide again at home instead of having to play domestic tourist as we all had to do these past couple of years.
This time, it was a couple living in Minnesota (yes, that cold part of the world) who, on their first overseas trip since the pandemic, are on a six-month jaunt around Asia. She grew up in Malaysia and settled in the US, and they’ve decided to take time out to discover the region.
While she’s happy visiting friends and relatives, and eating old, familiar food, the husband has done the Annapurna trek in Nepal and, perhaps needing a rest after that, went for a seven-day retreat in a silent meditation centre in Surat Thani, Thailand.
When I asked him what he looked for on his travels, he said, “Local experiences.” He was chomping on satay by the seaside as he said this. After Singapore, both are off to Australia for a month before heading back to the US.
I believe my friends are typical of a certain tribe of traveller who have the time and money to now travel like they never did before. They are staying out longer, are slightly more adventurous, open to trying new things and staying in non-branded accommodation and private homes. They booked a small, neighbourhood hotel (I’d never heard of it) away from the main tourist areas of Singapore.
Travellers such as these are part of the reason why travel companies this week announced glowing results.
Look at Airbnb – fourth quarter revenues of $1.9 billion were up 24% from the same period in 2021. Net income for those three months was $319 million, making it the company’s most profitable fourth quarter ever. Adjusted EBITDA was $506 million in Q4 – another company record – and generated a full-year total of $2.9 billion.
Said CEO Brian Chesky, “Consumer confidence to travel remains really high. I think part of that is no matter what happens in the world, people want to travel. For many people, the office is now Zoom. The mall is now Amazon. The theater is now Netflix. Travel is going to become a very important way that people experience the world this year. Therefore, this is going to be an exciting year for Airbnb and traveling all around the world.” (Read Phocuswire report for full story).
And in a ringing endorsement for the growth of the tours, activities and experiences sector, Viator was the poster for Tripadvisor’s fourth quarter and full year 2022 financial results. In 2022, Viator brought in $493 million in revenue – up 168% compared to 2021. And even more noteworthy – the marketplace for travel experiences accounted for 33% of Tripadvisor’s total revenue of nearly $1.5 billion in 2022, up from just 20% in 2021. (Read Phocuswire report for full story)
Expedia Group also reported record full-year and Q4 lodging bookings and lodging revenue. Gross bookings were valued at $20.5 billion in Q4, a 17% increase year over year, and $95 billion for the full year, up 31% compared with 2021.Revenue in the quarter increased 15% compared with Q4 2021 to $2.6 billion. For the full year, revenue came in at $11.7 billion, up from $8.6 billion in 2021 and inching closer to pre-pandemic 2019 full-year revenue of $12.1 billion. (Click here for full story)
So really, good news all round for travel – it seems no matter what is going on in the world, people want to travel. The years of forced lockdowns have shown people how integral travel is to their lives and how vital it is to their well-being.
And well-being comes in many shapes and forms. It need not only come in the form of a wellness retreat but it can come from eating exotic foods, or trekking Annapurna, or attending a rock concert on the other side of the world.
It comes from doing anything that makes your heart sing, and travel facilitates that.
It is also vital to world peace. The saying, “When goods don’t cross borders, soldiers will”, often attributed to the 19th century French Liberal economist Frederic Bastiat, is truer more than ever.
Next week, I will welcome more visitors. I think I will qualify for tour guide certification soon.
