The travel industry is at an unprecedented stage of evolution. Despite lingering challenges from the pandemic and economic concerns, people continue to place travel as a high priority in their lives. According to Expedia Group’s recent Traveler Value Index 2023 study, nearly half of consumers globally (46%) feel that travel is more important to them now than it was before the pandemic, and nearly as many (43%) are planning to increase their travel budgets in 2023.
This is particularly true in South Korea: 60% of South Koreans say that travel is more important now than it was before the pandemic, and 55% say their travel budgets are bigger than last year. The number of consumers who say they are planning to take a leisure trip within the next year is also on the rise across APAC, including Australia (82%) and South Korea (86%).
As the travel industry continued to rebound in the last 18 months, there is no question that it also experienced tremendous—and in some cases likely permanent—changes. Arguably the most significant change is the higher expectations travelers now have for their entire travel experience. Expedia Group’s Traveler Value Index examined what travelers truly want, and how travel professionals can tap into that demand to provide the best end-to-end experience possible.
New Motivators for Travel
To really understand traveler behaviors, travel professionals should be aware of why people are traveling. Our previous study in 2021 found that reconnecting with friends and family was a driving force behind many trips, and understandably so after two years of travel restrictions and lockdowns.
Today, making up for lost time with loved ones remains a top driver of travel, but new motivators also emerged. According to the 2023 study, nearly half (49%) of global consumers cited mental and physical well-being and change of scenery as their top reasons for travel, and self-care will continue to remain a priority. Many people also view travel as a way to gain new experiences (43%) and get out of their comfort zones (22%). Providing a smooth experience from beginning to end will help travelers get the most out of their trips.
Loyalty programs are also increasing in importance when it comes to where travelers choose to book. More than half of consumers (53%) say that it is more important to travel with loyalty providers than before the pandemic, with 52% valuing discounted pricing from those programs the most. Across APAC, travelers from Australia (42%) and South Korea (51%) find it more important to book with loyalty providers compared to those from Japan (27%).
The good news is that 75% of travel providers are operating loyalty programs to encourage repeat bookings. It is important to make processes for redeeming these points and vouchers as easy as possible to capitalize on this demand and ensure travelers start off their trips right.
Pricing Makes a Comeback, Flexibility is Still a Top Priority
The travel industry is far less tumultuous today than it was during the height of the pandemic. However, traveler demand has permanently shifted to favor flexible reservation policies in case the need to change or cancel a trip should arise. For example, Australians (61%) place a higher importance than the global average (50%) on flexible policies that allow them to make changes without fees or penalties when it comes to vacation rentals.
Globally, price reemerged this year as the top thing travelers value when booking travel. While this holds true for those in Australia and Japan, South Korean travelers placed the highest emphasis on restaurants and food experiences when booking travel. While other parts of the world cited inflation as having the biggest impact on travel plans in the next 12 months, APAC countries are more concerned with ongoing health and safety concerns from the pandemic.
Travel providers who align with these preferences by offering highly flexible booking options and demonstrating enhanced health and safety protocols will be most successful in enticing APAC travelers.
Travelers Vote with Their Values
Around the world, consumers are increasingly voting for their values with their wallets, and the travel sector is no different. Travelers are increasingly choosing to book with providers that align with their personal values.
Notably, more than two-thirds (70%) say they are more likely to choose more inclusive travel options, even if it means paying more. That figure is slightly higher than most travel pros expected, so it is imperative not to underestimate what an important consideration inclusivity is becoming for travelers. Demonstrating inclusivity also extends to how travel businesses promote themselves. A staggering eight in ten (78%) of consumers say that they’ve made a travel purchase based on promotions or ads they feel represent them through messaging or visuals.
The travel industry is quickly adapting to this continuing trend: three in five organizations (60%) made changes in the last year to ensure their services are inclusive and accessible, and an additional 21% have plans to do so. Notably, nearly 1-in-4 South Korean travel pros plan to make supporting diversity and inclusion a top priority this year. Travel businesses that fall behind risk losing travelers from key demographics.
Sustainability is another area that is top of mind for many travelers. According to our recent Sustainable Travel Study, 90% of consumers are looking for sustainable options when traveling. Data aggregated from reviews across Expedia Group’s travel brands showed that terms related to sustainability doubled from January 2021 to January 2022.
The travel industry recognizes the shift toward sustainable preferences. Many businesses list it as one of their top investment priority areas for 2023. In Japan, for example, 26% of travel pros will make sustainability investments a top priority in 2023. Clear communication around what sustainable amenities, options and activities is a key opportunity: two-thirds of consumers want more sustainability information from lodging and transportation providers to help them make informed decisions when booking their next trip. Such information can include options for environmentally friendly transport and recommendations for destinations that support local cultures and heritages.
Travelers are quickly becoming savvier as they place greater importance on travel as a way to heal and reconnect with the world. It is vital for the industry that travel professionals continue to adapt with flexible, sustainable and value-driven options to not only attract consumers, but to follow through on the promise to delight travelers from the booking experience to the taxi ride home.
