Right this moment’s demand received’t outline tomorrow’s vacationers

Optimism comes straightforward in an auditorium full of a whole bunch of enthusiastic – and maskless – journey professionals. With COVID shutdowns relegated to the previous, and demand for journey withstanding inflation fears within the current, how might the sector’s future be something however shiny?

But a panel of business leaders supplied some phrases of warning on the opening day of the primary MarketHub Americas convention in 4 years Wednesday in Cancun, Mexico. Their message in brief: Don’t let the pent-up urge for food for journey and experiences blind you to the necessity to adapt to the altering local weather and client expectations.

“The restoration post-pandemic has been simply superb. We see that journey actually ranks very excessive in life priorities,” mentioned Nicolas Huss, the CEO of Hotelbeds, the convention’s host. “However with the blessing come the challenges.”

Chief amongst these is sustainability, a troubling topic each for the complexity of any response and the frequent contradiction between surveys that present rising concern amongst vacationers for environmentally-friendly insurance policies and reserving information that signifies a reluctance to pay for these measures.

“Sustainability. You will note a whole lot of that. And a few of it’s possible you’ll be pondering, ‘Yeah, yeah, we’ve heard that for a very long time. It’s there however not actual.’ We expect that issues are altering,” Huss mentioned. “There’ll clearly be a reshaping of our business within the coming years, and we have to take that very significantly.”

Nejc Jus, the pinnacle of analysis for the World Journey & Tourism Council, mentioned COVID has made vacationers extra involved about sustainability.

“They do care concerning the setting,” he mentioned. “When you ask me the query the place subsequent for journey, one reply is all of us have to change into local weather leaders of our sector, the guardians of nature, in order that our sector can thrive not only one or 5 extra years however serve vacationers for generations to return.”

It’s laborious to argue the purpose as file droughts give method to unprecedented floods and greater wildfires to extra damaging hurricanes. But it will also be laborious to concentrate on a sobering future when the social gathering punch bowl remains to be brimming.

Whereas Konrad Waliszewski, CEO and co-founder of @Resort, sees the hazard in that, he additionally spoke to the results COVID had on journey demand.

“We had a few years the place we took without any consideration that there’ll at all times be a aircraft to fly someplace and an open border ready. And that we are able to at all times try this subsequent expertise subsequent weekend or try this factor with our household subsequent 12 months,” he mentioned as a part of one of many panel dialogue’s extra spirited exchanges. “The one factor that individuals are not taking without any consideration they usually’re prioritizing greater than something is journey experiences. … That they had two years of not having the ability to do something or go anyplace.”

That demand hasn’t even been blunted by persistent inflation, Huss conceded.

“The price of dwelling has elevated dramatically in lots of nations. Despite the fact that we knew that journey and tourism are fairly resistant industries in disaster time, a few of us had been involved that this could damage badly,” he mentioned. “As you undergo, you see that it [demand] has climbed a lot increased. It doesn’t imply that we’re immune and that it’ll proceed endlessly. … We’ve realized by COVID that we shouldn’t take into account that the nice might be there endlessly, however that we have to make it occur collectively.”

Antonio Herrera of Blue Diamond Resorts mentioned he’s been shocked inflation hasn’t already taken a toll on journey demand.

“It was superb to see the way it was working the previous 12 months. However I feel at [some] level this has to all come to an finish since you solely have what you could have,” he mentioned. “Individuals had been actually desirous to exit. That they had some financial savings by COVID however, my opinion, as soon as that’s gone, we head again to regular. … Slowly, I feel it’s coming to an finish. That’s what I feel, although I hope to be improper.”

Waliszewski pushed again. “I feel it [travel] would be the last item that buyers minimize,” he mentioned. “Normally, it’s the very first thing, however after a pandemic, it will likely be the very last thing. Individuals are making a whole lot of different laborious cuts of their life. However their trip – they’re not prepared to offer that up but.”


The restoration post-pandemic has been simply superb. We see that journey actually ranks very excessive in life priorities. However with the blessing come the challenges.

Nicolas Huss – Hotelbeds

Diana Marin, a senior vp at NH Resort Group, mentioned simply as COVID helped make extra individuals delicate to environmental considerations, it additionally led extra individuals to prioritize experiences.

“On the finish of the day, it’s altering conduct,” she mentioned. “I feel prior to now it was extra centered on shopping for issues or investing in a home or investing in a automobile. However now individuals are trying extra at investing in an expertise, and that’s altering when it comes to priorities in our lives. It’s one thing that’s clearly right here to remain, and I feel it’s going to be extraordinarily optimistic for our business if we’re in a position to ship these experiences that our prospects count on.”

Huss identified one other seeming incongruity between client attitudes and conduct. He famous the complaints the journey business has heard about issues like operational capability and staffing challenges — at the same time as satisfaction survey rankings stay as excessive as earlier than COVID.

“There’s perhaps right here a contradiction between the fact of the efficiency … and the client satisfaction,” he mentioned, musing that buyers’ want for journey may make them extra prepared to forgive the inconveniences. Such a honeymoon received’t final endlessly, he warned, creating a possible “wave of dissatisfaction.”

“The traveler is more and more refined,” he mentioned. “They’re know-how savvy. And what’s certain is that they need the worth for the worth they pay.”

These views lead him to conclude that even pretty much as good as client urge for food for experiences has been for journey, it doesn’t relieve business leaders from making ready for a extra sustainable future.

“It’s about greater than [sustainability]. It’s about ethics and doing proper by enterprise: What’s it that we wish to do collectively, how will we wish to place our firm, our household, our particular person, etcetera,” he mentioned. “We are likely to assume we are able to sort of play with this on the margin. My view is that relating to ethics, it’s non-negotiable. It’s one strike and also you’re out. …

“The great factor, on prime of the moral a part of it, is there’s additionally a enterprise mannequin for it. I imply individuals are actually prepared to pay extra as a result of now they’ve been assured they usually perceive there are some further prices from a resort perspective, from an airline perspective, etcetera, and I feel it’s very optimistic.”

Waliszewski mentioned the enterprise crucial was much more evident when generational attitudes.

“You see that Gen X, 50% of individuals are prepared to spend slightly bit extra [for travel] if it’s sustainable and moral. Millennials are 66%. Gen Z is 76%. And it’s continued to rise,” he mentioned. “The youthful era, particularly Gen Z, is prepared to place cash the place their mouth is. Their cash is just not a significant a part of buying energy at the moment, however every year that’s altering, and it’s rising rapidly, so I feel now it’s a accountability that all of us have and it’s an important enterprise mannequin. However in a number of extra years, it’s simply going to be a necessity. You received’t be capable to survive should you’re not excited about that.”

*The reporter’s attendance on the occasion was supported by Hotelbeds.

Phocuswright Europe 2023

Prime leaders from European resort teams talk about servicing excessive demand, fixing the labor scarcity, defending the setting and accelerating income.

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