What you need to know

Domestic traveller volume experienced a sharp decline of 52.1% compared with 2019, according to the National Tourism Bureau. But traveller numbers at key holiday times suggests consumers are gradually returning to holidays. Although people show interest in travelling, holiday spending will not rebound quickly because consumers place more priority on long-term and emergency needs compared to discretionary items.

Mintel suggests the following key themes can motivate travel participation and support further recovery. Brands can leverage and highlight different themes to tailor marketing mix for targeting specific demographic groups.

  • A balanced choice between travel product quality and price

  • Responsible consumption

  • Consumer protection – covering hygiene and privacy

  • Self-improvement and emotional wellbeing

There are also two dynamics to keep an eye on in the holiday market.

More consumers are longing to be close to nature during weekend leisure time after COVID-19 outbreak. Retailers, food service as well as tourist attractions can feature natural elements in the store environment or activities to capture weekend consumption. Nature is also a potential theme when targeting short-haul travellers going out during the weekend.

In the leisure accommodation market, vacation rentals are not likely to be a true competitor for premium hotels. This is because they in fact attract consumers looking for different value sets. Vacation rentals’ usage is mainly encouraged by competitive pricing, while consumers of premium hotels emphasise professionalism and protection.

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