Andy Headington of Adido believes 2024 could be one of the best years for travel in recent memory if early trends continue
Judging by headlines over the past few weeks, it looks like the travel industry is shaping up for a spectacular 2024.
In January, Travel Counsellors recorded two consecutive record sales days – neither of which were on the traditional ‘Super Saturday’ but both mid-month – while Hays Travel reported record trading thanks to their highly successful ‘payday’ campaign.
Barrhead Travel have reported their best ever Sunday via channels including retail, call centres, online and social media, while Advantage also declared record-breaking numbers.
The mood is rightly one of optimism, with data from Barclays revealing that travel was the third-biggest sector for spending growth in January.
But is it all congas and cocktails across the board? Which sectors peaked in peaks – and did any see a dip in demand?
Using Google keyword search data, we looked at where interest and enquiries have been in 2024 versus other years to find out who really won peaks.
Broadly speaking, the data here clearly suggests that general search volumes haven’t actually increased this year. One trend that has carried on from last year is a shift away from mainland Europe and package holidays, with more people moving towards specialist or destination holiday types. For instance, one of this year’s winners has been the ski sector, with related searches up 62% this January compared to 2023.
On the other hand, searches for mainstream holiday packages have seen a downturn, with the more traditional destinations of Greece and Turkey declining by 18%. This can be partially attributed to the initial post-Covid boom, where travellers’ pent-up wanderlust and saved pennies led to a surge in bookings following months in lockdown. Since then, the trend for mainstream European package travel appears to be on a downwards trajectory as other factors start to come into play such as:
- Cost of living impacting regular package deal holidaymakers
- Concerns over climate change affecting popular destinations
- Increased desire for experiences rather than just holidays
In contrast, and to back up the rationale in this change in demand, there has been a continued increase in domestic travel. UK holidays and breaks are exceeding pre-2020 levels, suggesting a focus on staying close to home for financial or environmental reasons. Overall, there has been a 10% uptick this year for phrases such as ‘holiday in the UK’, demonstrating growth for the third consecutive year.
Interestingly, there has also been a large growth in searches for luxury holidays, suggesting people with significant disposable income aren’t feeling the cost-of-living pinch. High-end holidays to Asia – and particularly the likes of Bali and Thailand – have seen customer interest back to pre-pandemic demand levels, with 23% year-on-year improvements.
While the cruise industry didn’t see any growth this January, it has maintained high search volumes, with bookings reaching record levels for a number of operators across ocean, luxury, expedition and river cruising. Much of this is being driven by a host of new vessels – from the mega ships of 6,000+ passengers to smaller, more intimate ships and yachts. Additionally, we’re also seeing more innovative itineraries that not only offer people new ports of call but also exclusive, on-shore experiences.
Looking at the long-term trends of cruise, we’ve seen the growth of cruise travellers making plans further in advance. The trend for January 2024 shows a slight uptick, which would indicate that bookings for next year will be just as strong or even better.
What does it all mean for agents?
So what does this mean for agents? Clearly, specialist holidays are on the rise and there may be opportunities to badge up traditional getaways with themes or a particular focus, to take advantage of this trend.
There is a significant opportunity for agents to promote domestic destinations and experiences. They shouldn’t shy away from highlighting the benefits of exploring your own country to capitalise on the continued uptick in this demand.
And more generally, our advice is for travel agents to be adaptable to shifting consumer preferences. Monitoring customer booking patterns to identify market trends will allow for the adjustment of marketing strategies ensuring the agents are best placed to capture new leads.
And from a supplier perspective, domestic and luxury operators need to act on the current favourable momentum wherever possible. Budget for sales, marketing and PR activity could potentially be brought forward to further reap the benefits of the current positive position.
Traditional operators clearly face a challenge and given the appetite for cost-effective travel, should showcase all the benefits of their holidays underpinned by the value they offer.
While peaks has definitely had its winners in 2024, suppliers who didn’t get their traditional start of year bookings might have to work harder through 2024 to get their traveller numbers up.
But for those that continue to see success, if these trends continue, 2024 could be one of the best years for travel in recent memory.