With the cost-of-living crisis looming, are big trips still big business? Cathy Toogood investigates
With pent-up demand following Covid-19 travel restrictions, many travel companies believed that 2022 would be a big year for booking once-in-a-lifetime trips. In its Travel Trends 2022 report, Black Tomato predicted 2022 would be filled with “big moments and exceptional encounters”.
It said it was seeing a surge in long-lead bookings of “massive escapes and memorable expeditions” for 2022 and 2023 because travellers were “optimistic and forward-thinking”.
G Adventures also saw a rise in demand for larger, achievement-based holidays such as climbing Kilimanjaro and Everest Basecamp at the start of 2022. Fittingly, 2022 marks 150 years since Around the World in 80 Days was published, a book that has inspired so many travellers to plan adventurous trips.
But now, in the final quarter of 2022, how do bookings look for big trips? We spoke to some key players to find out if the cost-of-living crisis is starting to have an impact on demand.
Spectacular scenery
Members of the Association of Touring & Adventure Suppliers (Atas) are reporting a strong recovery in sales for bucket-list and event-led holidays, with consumers keen to make up for lost time after missing out during the pandemic.
Claire Brighton, Atas account director, says: “We’re getting feedback from our tour operators that pent-up demand is translating into bookings for luxurious, exotic or longer holidays.”
Brighton says customers want to visit iconic destinations with spectacular scenery such as the Inca Trail and Machu Picchu in Peru.
Pent-up demand is translating into bookings for luxurious, exotic or longer holidays
Once-in-a-lifetime wildlife tours to destinations such as Borneo, the Galápagos and Antarctica are also proving popular. Since entry restrictions were relaxed for Thailand, Vietnam, Cambodia and Laos, G Adventures has reintroduced its Indochina circuit tours, which range between 30 and 40 days and are now among its most popular trips.
Brian Young, managing director for EMEA at G Adventures, says this shows there’s a real appetite among young travellers in particular for longer-duration, multi-destination trips.
Cost of living
However, will the cost-of-living crisis see clients shy away from longer, bucket list-style trips? In its Insight Report 2022 the Latin American Travel Association (Lata) revealed that 84% of its tour operators said customers were concerned about inflation and the cost of living.
However, a recent Travel Trends study by global consultancy Simon-Kucher & Partners found that consumers are so keen to travel again that they are more likely to spend their money on holidays than restaurants, clothing or day trips.
People consider their holiday a necessity
Intrepid Travel remains optimistic too and Joanna Reeve, head of business development and partnerships, says: “We’ve seen from previous recessions that travel is resilient, and people consider their holiday a necessity.
They’ve been saving up over the past couple of years and are still keen to go.” Clients may start to look at different ways to travel on big trips, though, and Reeve says some travellers are opting to book off-season when prices are cheaper.
They may also start looking for extra value. Young says: “Small group and adventure travel is a great way for travellers to explore the world in an affordable way, while being responsible and giving back to local communities.
Options such as our shared room policy means solo travellers aren’t penalised for travelling on their own.”
Strong sales
Sales are looking strong compared with pre-pandemic levels, according to Young. G Adventures is seeing bookings across its products, including big trips, exceed those of 2019.
It’s even built a new vessel, the Reina Silvia Voyager, to cater to the growing demand in the Galápagos. Wendy Wu Tours has also arranged extra departures. Gary King, head of trade sales, says: “Our top-selling destination by far is Japan, which is also the most high-value on a price-per-day basis.
“We’ve had to arrange extra departures for our Japan Uncovered and Japan by Rail tours. Also, other longer, higher-value tours such as Ultimate South America have sold exceptionally well.” And, according to Atas, sales of escorted tours to awe-inspiring sights have shown such strong growth that several members have released tours earlier than ever.
Even as winter bites and travellers have to deal with currency pressures, there’s every reason to be positive that clients will still be keen to prioritise their long-awaited big trips.
PICTURES: Shutterstock/David Ionut, Fotogrin, Vixit
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