2022 is the year we look forward to resetting all of our statistics and trends. However, we need to acknowledge many of the questions about our current world:
How are we traveling in the post-pandemic world?
What are we looking for? And what key elements trigger the desire to book?
How can we better forecast our destination’s feeder markets?
How can we better market our properties?
What are key points to validate when consumers are looking for their future bookings?
How competitive the market will be?
According to research conducted by Simon-Kucher & Partners, the aftermath of lockdowns means consumers are willing to spend more.
34% of respondents expect to spend more on leisure travel in the years to come: The US is a little higher than the average at 36% but the UK is less at 30%.
However, the overall frequency will be less with transportation preferences shifting towards private options where feasible.
Increased preference for private space as well, particularly for the US audience.
Expected long-term change in travel budgets
A growing phenomenon for 2022 is the rise of “Workations”: As hybrid working grows in both the US and UK so does hybrid leisure with more consumers keen to consider ‘workations’ to get more out of their travel time:
43% of global respondents are likely or very likely to take a workation holiday in the future.
47% for US respondents and 30% for UK.
There is clearly a brilliant opportunity for luxury hotels to adapt to this new demand.
Are properties ready to offer spaces for hybrid workers?
As the importance of sustainability continues to grow, businesses need to understand whether the business case stacks up for the significant investment often required. The good news is we are seeing that it pays to be sustainable:
Sustainability is a significant purchase criterion, 4th after price, quality, and relevant availability.
As expected, younger consumers are more actively taking steps towards being more sustainable.
67% of consumers wanted vacation locations/packages to be upfront about their environmental suitability
31% of respondents would pay a premium for sustainability in the UK versus 39% in the US
Higher-income respondents are more likely to want to pay more for an equivalent sustainable trip (up from 31% to 39% overall)
Overall, this year’s forecast remains optimistic according to recently published data from CBRE, despite the current inflation and market conditions. American Express global travel trends report highlights a very strong demand with 86 percent of a recent study just published, respondents expecting to spend more or the same on travel in 2022 vs pre-pandemic.
Millennials and GenZ, the largest travel market population who remarkably values giving back to the community as well as experiencing a genuine cultural immersion will make a huge contribution to bookings during 2022.
How can properties offer the added value they are looking for? What is the driver for clicking that booking? When sustainability and life of a time trips are major factors.
It is an exciting time for marketers and experience development professionals shaping the service and product. I remain excited for all the creativity to come from our industry.
Certainly, time will tell us how 2022 will perform, for now, we just can rely on qualitative research.
Note: research was conducted prior to Ukrainian war.
About the author
Ms. Domingo has over 20 years of branding and marketing experience specializing in globally recognized iconic real estate and mixed-use developments. She has a creative gift for translating architectural vision into strong consumer demand and award-winning brands that resonate with consumers, as well as meet the timelines and financial expectations of a specific project’s stakeholders. Ms. Domingo is a sought-after consumer engagement strategy developer and marketing executive for some of the
world’s most well-known retail, residential, cultural, leisure, and tourism attractions, with unique expertise in observation decks.
Past projects include Hudson Yards Experiences, Top of The Rock, Empire State Building, The View from The Shard, Saadiyat Island Manarat al Saadiyat Experience Center, Mall of Qatar, and Spain’s PlateaMadrid and Value Retail.
Ms. Domingo is a noted global keynote speaker on the topics of innovation, destination branding and marketing. Originally from Barcelona, Ms. Domingo is a long-time resident of the USA and a citizen of the world. Ms. Domingo is fluent in multiple languages and has experience working and living in six of the world’s most fascinating countries.
Ms. Domingo holds a Master of Arts in Integrated Marketing and Communications from Emerson College