SINGAPORE, 17 March 2022: Expedia Group
Media Solutions recently published the Travel Recovery Trend Report for Q4,
detailing the latest insights on the industry’s continued recovery from the
pandemic.
Based on Expedia Group’s exclusive
first-party data, the group’s media solutions insights and planning team
identify the latest findings for 2022 and beyond.
Resilient and travel-ready
The findings from the Q4 2021 Travel
Recovery Trends Report indicate resilience in global travellers who continued
to travel, particularly over the holiday period, despite the challenges posed
by the Omicron variant.
Early Q1 has also seen great momentum in
search volume for both domestic and international travel. For example, global
searches for Europe, the Middle East, and Africa (EMEA) destinations for
January 2022 were almost 60% up over December and over 170% year-over-year. North
American (NORAM), Latin America (LATAM), and Asia Pacific (APAC) destinations
also saw strong Januarys: up year-over-year by around 50%, 80%, and more than
30%, respectively.
Travel search volumes climb
While restrictions have limited travellers over
the past two years, Expedia data has shown that many have learned to live with
Covid and continued creating experiences. Restrictions have only encouraged
committed travellers to adapt: through domestic trips, seeking rural escapes,
or swapping hotels for vacation rentals. They have also been inspired by and
attracted to destinations open during the pandemic they might not have
previously considered, foregoing those places they wanted to visit but which
were closed to tourism.
Q4 was, in many ways, the epitome of this
resilience. Despite the Omicron challenge, overall search volume remained flat
quarter-over-quarter compared to Q3 and was up 70% year-over-year. In Expedia’s
Traveler Value Index research, data shows 81% are planning a leisure trip in the
next six months, and one in five plan on taking three or more trips.
In the Q3 report, advanced holiday bookings
surged, with triple-digit year-over-year bookings for Thanksgiving and the
Christmas period. Despite Omicron’s challenges, resilient travellers saw their
advanced holiday plans through and remained committed to travel.
For example, Expedia Group cancellations
were flat during Q4, and according to STR, Christmas Day occupancy in the US.
was the highest on record, at 47.4%. Travellers respond well to Black Friday,
Cyber Monday, and Travel Tuesday events, sparking a 10% week-over-week lift in
US domestic searches.
Landmark reopenings
The Traveler Value Index revealed that more
than 50% of cruise travellers said border openings and government-led
initiatives have a strong impact on their likelihood to travel, illustrating
just how influential restrictions and changes are on traveller decision-making.
As with previous reports, travellers respond immediately to border reopenings
and news of reopenings. The reopening of the US borders to 33 countries
worldwide led to increasing inbound and outbound travel and represented what
could be considered a landmark in the travel industry’s recovery from Covid-19
after almost 20 months closed to the world.
Looking specifically at search volume from German travellers to the US, the market increased 300% from October to December, and the US jumped from the 43rd most-searched destination to 13th during Q4.
Overall, in Q4 2021, cruise searches
increased 50% year-over-year and bookings were up an impressive 500% compared
to 2020.
The APAC region finally saw good news, too.
Overall search volumes were up nearly 35% over Q3, driven by additional travel
green lanes and international border reopenings in various countries, including
Australia, Singapore, and Fiji. Australia’s reopening, which was announced in
early October, proved significant to the wider region and led to a 25%
week-over-week increase in international searches for APAC.
Looking Ahead
The US reopening has inevitably led to
growing confidence in Americans to travel further afield. Expedia’s Traveler
Value Index discovered that 68% of Americans are planning to go big on their
next trip, and many are eyeing intercontinental destinations like Rome, Bali,
London, and Paris in 2022.
This sentiment was reflected in lengthening
search windows detected in Q4. Travellers switch to making their plans on a
more short-term basis—typically in the 0- to 21-day search window—as they’ve
responded to ever-changing pandemic conditions.
However, in Q4, the share of searches in
this short-term window decreased, while searches for 31+ days increased by 15%
to 40% of total searches. This indicates that travellers were feeling more
confident to travel internationally, and with loosening international
restrictions, starting to dream about or plan trips further out – often to
long-haul or bucket-list destinations.
It is evident that traveller expectations
have changed over the past two years. They are adapting to new ways of
travelling. However, at the beginning of 2022, and reflecting on a stable Q4 of
2021, the data points to optimism and resilience in committed travellers who
are more than ready to get back to seeing the world and creating memorable experiences.
To find out about the trends covered here in more detail, download the Q4 2021 Travel Recovery Trend Report.
(Source: Richard Kocher Expedia Group Media Solutions)