Long-haul travel sentiment is returning around the world even in the face cost of living concerns, new research reveals.
High inflation continues to put pressure on people and influence their travel planning, despite the positive outlook for 2023, according to the latest long-haul travel barometer published by the European Travel Commission (ETC) and Eurail.
The financial situation is a key worry for Australian, Brazilian, American and Canadian travellers, so getting good value for less budget becomes essential.
When asked what would provide comfort to plan long-haul trips in 2023, 41% of respondents mentioned an improved financial situation. Another 35% said bargains and attractive deals for travel and in destination would be influencing factors.
The removal of Covid-19 border restrictions also remains essential for travellers’ confidence, according to 35% of those polled.
Following from this, destinations that have fully lifted travel barriers may be perceived as more appealing in 2023.
The research examines travel intentions to Europe in key overseas markets – Australia, Brazil, Canada, China, Japan and the US.
The study found that more than 60% of potential travellers in Australia, Brazil, Canada, China and the US intend to travel long-haul in 2023, with Europe being top of mind.
Travel sentiment to Europe in the first four months of the year has also improved, with the most notable year-on-year increases observed in China (up 21 points) and Brazil (up 13 points).
The exception to these positive trends is Japan, with 27% of respondents enthusiastic about long-haul trips in 2023 as a whole and 13% between January and April.
The removal of China’s zero Covid-19 policy in December has triggered a positive change in the potential for long-haul travel.
But barriers remain to the immediate recovery of tourism flows from China, including air connectivity and capacity, the recent re-imposition of Covid-19 safety measures in some destinations and health concerns.
The main considerations when choosing a destination are the tourism infrastructure, weather conditions and its perceived safety. Notably, Chinese travellers are eager to return to luxury shopping in Europe.
Meanwhile, 40% of US respondents intend to travel overseas by April, and 33% consider Europe as a destination. This marks a change to the same period in 2022, when only 28% of Americans planned to travel overseas and 23% to Europe.
In the US, eagerness to travel is associated with a higher annual household income. Findings show that 55% of Americans earning $75,000 or more look forward to travelling, compared to just 20% of respondents in the other income groups.
In contrast to other markets, a large share of US respondents (20%) are open to solo travel.
Canada is also on track for a gradual recovery in travel. The share of Canadians planning to visit Europe between January and April increased from 15% in 2022 to 29% this year.
But the majority (62%) of Canadian respondents will forgo overseas trips at the beginning of 2023. The main deterrent for 39% of them is their disposable budget.
Canadians wishing to visit Europe in the next months will look for experiences revolving around history and culture, and the vibrant life of European cities. The top European destinations for Canadians are France, Italy, the UK and Germany.
ETC president Luís Araujo said: “ETC is pleased to see that long-haul travel sentiment is proving more positive this year than in 2022.
“A significant development that will surely have a major impact on travel to Europe in the coming year is China’s reopening.
“The removal of China’s zero Covid-19 policy has reinstated travel confidence among Chinese travellers, and China’s sentiment index for travelling to Europe is now at values close to pre-pandemic times.
“This is hopeful news, but still, there remain concerns that in the context of inflationary pressures, personal finances may limit long-haul travel overall.
“Promoting Europe in overseas markets remains crucial for the sector’s continued recovery in 2023.”