Lauren Gumport is the Vice President of Communications & Brand at travel disruptor Faye.
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Results from a new survey by Faye Travel Insurance, where I work, show a high intent to travel this holiday season, despite inflation and recessionary concerns. Case in point: 50% of trip takers say the cost of travel is negatively impacting their mental health, though 40% intend to spend $5,000-$8,000 on their international trips. This issue is so present for travelers that studies point to a trend where they are altering their plans as a result. For example, a survey from YouGov found that those whose financial situations are the same or worse this year are less likely to be traveling out-of-state for the holidays than the general population. Another from Bankrate (via Fox 29) highlighted that travelers are considering shortening their trips and participating in less expensive activities due to rising prices.
Here's what travel brands can do to ease consumer fear over spending too much.
1. Don't Take Advantage Of Overly Eager Travelers
The most popular winter holiday for travel among Americans will be Christmas, with 84% planning to take a trip over this holiday and 58% intending to travel over New Year's Eve, according to my company's research.
With travel intent high, travelers are also anticipating what could go wrong. The top four travel fears we identified are: dealing with a disaster such as a category 4 hurricane (29%), losing luggage (25%), flight cancellations/delays/missed connections (24%) and contracting Covid-19 (23%).
How can travel brands mitigate concerns like these? Address them upfront. Airlines, hotels and travel insurance providers should communicate how they will protect travelers in such scenarios, whether that be through vouchers, partial refunds or money-back guarantees. Offer solutions to the cost concerns, such as no-prepayment accommodations or flexible flight tickets so date changes don't incur fees.
Also helpful: Share the documents travelers need to have in order to get their money back upfront if they encounter one of the aforementioned issues. For example, what should they do if they contract Covid-19 during their trip? Providing the details in advance will help ensure your customer support teams don't get bogged down by an influx of calls over one of the busiest—and what's meant to be the merriest—times of the year. In fact, we have an entire page dedicated to our Covid-19 coverage to answer travelers' burning questions upfront, as well as all the scenarios in which they're protected.
2. Conduct Less Savage Selling
I get it: Hospitality providers want to make up for income they lost at the height of the pandemic. But given the current economic situation and the cost of travel, wouldn't transparency in pricing be the least they could offer? This is especially true since airfare costs were nearly 43% higher in September 2022 than they were in the same month in 2021, according to the Bureau of Labor Statistics (via Travel and Leisure).
Airlines should be honest about discount fares that, in reality, may not provide much cost savings. When consumers tack on one or two add-ons to a base fare (such as luggage), the price point often matches what they'd pay for an economy seat. And when it comes to baggage, rather than a confusing checkout process that makes it unclear whether or not bags are included, low-cost carriers should be communicating upfront if the only way to avoid a fee right now is likely by only bringing what's in your pocket or a small handbag. For those who do carry-on, there is generally a weight limit—which carriers should make easily available and accessible.
When it comes to hotels, corporations should rethink aggressively upselling on amenities that have, for years, been included in their fees. This includes complimentary hotel parking for guests, towels at the pool and early check-in. Otherwise, they should advertise these additional prices upfront so guests aren't surprised (and disappointed) upon check-in.
3. Know What Customers Are Saving On And Reach Them Where They're At
With the knowledge that cost is top of mind in the current environment, understanding consumer behavior when targeting them is the obvious next step. In our survey, we asked Americans what their top cost-cutting strategies are this holiday season. Their responses:
1. Staying with friends/family to save on accommodations: 37%
2. Traveling during off-peak times (i.e., shoulder season): 36%
3. Cooking at their place of accommodation rather than eating out: 36%
4. Going to destinations that are "off the beaten path": 32%
5. Packing light to cut down on baggage costs: 28%
According to PwC's annual Holiday Outlook report, additional concerns include gas prices and staff shortages on airlines.
With the above in mind, Airbnb hosts can advertise their full kitchens; airlines can offer deals on baggage if customers purchase them well in advance of their trip; car rental dealerships can advertise lower gas prices if you bring your car back with an empty tank; and hotels can offer shoulder-season deals on stays.
A Merry 2023 For Travel
For the travel industry to heal from the last few years of madness, travelers themselves should truly be on the side of hospitality providers. And that can only happen if travel brands avoid taking advantage of overzealous revenge travelers looking to head home—or abroad—for the holidays.
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