ABTA has recently released its’ first Holiday Habits report – the first for three years – which has been met with much anticipation in the industry.
As the UK’s main trade association for the travel industry, we’ve very interested in ABTA’s insights into the state of the travel landscape, and this report gives us a great snapshot of how people are travelling and viewing travel between September 2021 and August 2022.
But what impact do these insights have on the ‘new normal’ of holidays, staycations – we’ve shared our thoughts on this below:
Demand For Travel
While ABTA’s report notes that Brit’s thirst for travel has not been lessened by the few remaining travel restrictions or the ever-rising cost of living, (77% took a holiday in the last 12 months), it is hard to measure whether the industry has truly bounced back, or just caught up with itself.
The same report notes that 39% of trips taken in 2022 were simply rolled over from the pandemic.
It is hard to see an immediate future without turbulence for the travel industry, with the cost-of-living crisis throwing a new spanner in the works when it comes to enticing cash-strapped Brits back to their holidays after two years of caution and COVID impacts.
But one thing we know for sure is that Brits love their holidays – so while we may not be taking as many trips or spending as much on travel as a typical year not marred by the news agenda, we feel reassured that the way Brits travel will simply change, offering up lots of opportunity not only for the staycation market but also for long-haul too.
We hope to see holidaymakers take more shorter trips at home or focus finances on one big trip next year, versus taking multiple mid-and-long-haul holidays in a typical year.
Holidays At Home
Demand for UK holidays has happily levelled off. 65% of holidays taken in 2022 are reported by ABTA to be within the UK – meaning that staycations haven’t taken as much of a hit this year as was feared now that the world has opened up again.
This is perhaps great news for those who choose to staycation over going abroad as the norm, with demand and elevated pricing over the last few years a barrier to those who have historically stayed closer to home.
Reassuringly for the domestic market, ABTA reports that 57% of people are still keen staycationing in the next 12 months.
This revelation is met with a sigh of relief from hoteliers and hospitality specialists across the UK who may have invested heavily in their product to meet the demands of the past three years spent at home – those investments, expansions, renovations, or new adventures into the world of holiday accommodations have and will continue to pay off.
What Comes Next?
Despite a maintained appetite for the staycation looking positive for 2023, the next 12 months pose as much of a question for the industry and the previous.
With the spiralling cost of living now a real threat to many, it is clear the industry may only be at the beginning of its rocky road to recovery and further diversification may be needed in areas really hit hard by reduced disposable incomes, such as restaurants, pubs, and cafes.
After being locked down for so long, ABTA’s report does however reveal that people plan to prioritise holidays over other non-essentials – but as with COVID – we are likely to see a change in the way people holiday and spend their money while away.
ABTA reports that 28% will choose cheaper travel options, 23% will eat out less on holiday, 22% will choose cheaper accommodations, 19% will only holiday in the UK with a further 19% will choose destinations that are closer to home than usual.
As expected, 56% put this holiday cost cutting down to concerns around the rising cost-of-living.
Is Going Greener the Answer?
With sky-rocketing gas prices and fuel costs on everybody’s minds (which for some is directly impacting the type of holidays they’re able to consider for 2023), the sustainability of a holiday is still front of mind for a lot of consumers.
In fact, a chance to reassess sustainability and travel during the pandemic has led to 54% of people feeling that the travel industry should operate in a greener way than it did before the pandemic according to ABTA.
Interestingly, 43% of people feel that it is the responsibility of the travel company to be more environmentally responsible – not theirs. This is where consumers want to see corporate action on sustainability heightened as we move into 2023.
While a sustainable approach to operations is a requirement, not a nice-to-have for many holidaymakers – looking ahead to 2023, it is our feeling that even the best intended carbon- commitments aren’t going to cut the mustard for many when it comes to weighing up sustainable holiday choices. We will wait to see how COP27’s key takeaways reflect on an industry that has been hit hard in recent months.
Consumers want to see commitment translated into action in more than just the lightbulbs, toiletries, and the facilities on offer – this is where travel companies, destinations and providers have a chance to turn their reduction goals into regeneration. We predict that the conscious consumer will be looking for their holiday destinations to better demonstrate how they are working to better the destination or community they operate within alongside their corporate or operations commitments – taking a holistic view of sustainability and travel going forwards. For those that don’t, we can expect to see minimal fanfare for achieving the expected minimum reduction measures.
ABTA is a trade association for UK travel agents, tour operators and the wider travel industry.
For more information or to read ABTA’s Holiday Habits 2022 Report visit: https://www.abta.com/industry-zone/reports-and-publications/abta-holiday-habits-reports/holiday-habits-2022
