People plan to rein in spending this year with travel among the sectors affected, new research reveals.
More than 40% of UK consumers intend to spend less once international travel is permitted.
This is explained as being a symptom of consumer finances hit hard by the pandemic and a widespread mistrust of how realistic it will be to travel internationally in 2021.
However, this can be overcome by individualised one-to-one communication thanks to the fact that more than half (57%) of 1,000 respondents would spend more money with a brand that treats them as an individual.
The figure increases to 89% for those aged between 16-24 and 77% for 25-34-year-olds.
But only 12% of consumers believe the travel sector communicated to them as individuals in 2020.
The poll by marketing firms RAPP and Code shows that on average, one third of consumers plan to spend less overall across six categories in 2021.
Consumers will also cut back on luxury, with 34% saying they will spend less, followed by decreases of 31% in retail, 30% in automotive and technology and 27% in financial services.
RAPP chief experience officer Caroline Parkes said: “As we emerge from lockdown, the depth of the pandemic’s economic impact will become clearer.
“Our research has highlighted the cautious mindset of the consumer which means that brands have an important job to do to help instil confidence and give customers exactly what they are looking for – particularly when it comes to international travel.
“Generic messages will do a brand no favours in this post-lockdown world – the gap between the winners and losers will become wider.
“Consumers have told us they want to be treated as an individual which means that the brands that find smarter ways of combining customer research with social and data sciences will come out on top.
“Adapting to and predicting the values, needs and behaviours of an individual using AI and machine learning will allow brands to approach that consumer with real one-on-one communication, not just a first name at the top of an email.
“Only then will brands – regardless of sector – deliver the value and hyper-targeted experience people are looking for as we all re-enter the world after what has been one of the most bizarre years to date.”