COVID-19 CONSUMER TRENDS: TRAVEL - Active International
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WEEK OF JULY 20, 2020
COVID-19 CONSUMER TRENDS: TRAVEL
Countries across the globe are
in different stages of opening
borders and easing travel
restrictions.
As markets emerge from
isolation, what’s currently in
the hearts and minds of
Canadian consumers? What
opportunities are there for the
hard-hit travel industry in
2020 and beyond?
COVID-19 TRAVEL RESTRICTIONS
TRAVEL RESTRICTIONS FOR INBOUND AIR TRAVEL BY COUNTRY
(AS OF 7/16/2020)
96 countries are
completely closed. 72 countries are
partially open. 16 countries are
opening soon. 36 countries have no
travel restrictions.
COMPLETELY CLOSED PARTIALLY OPEN REOPENING SOON NO RESTRICTIONS
Only citizens, residents returning home, Entrance into the country may depend The country has announced a specific The country has no formal entry
or people in other special circumstances on the traveler’s citizenship, point of date for reopening, but certain entry restrictions in place, but is still
may enter the country. origin, or other specific regulations. requirements may still apply. monitoring the situation and may have
other travel advisories in place.
EUROPE BOUND? On June 30th, the European Union made the decision to re-open borders to citizens from 15
non-EU countries they deemed as “safe” – Canada included.
CANADIAN INTER-PROVINCIAL TRAVEL RESTRICTIONS
CLOSED TO NON-RESIDENTS TRAVEL PERMITTED NO INTER-PROVINCIAL
(WITH SOME EXCEPTIONS) (14-DAY SELF-ISOLATION REQUIRED) RESTRICTIONS
• Newfoundland & Labrador • Manitoba • British Columbia
• New Brunswick • Nova Scotia • Alberta
• PEI • Yukon • Saskatchewan
• Northwest Territories • Ontario
• Nunavut • Quebec
Atlantic Travel Bubble: Residents from the Atlantic Provinces (Newfoundland and Labrador, Nova Scotia,
New Brunswick, and PEI) can travel freely between these provinces without self-isolating upon arrival.
Sources: Kayak, Forbes
CONSUMER TRAVEL INTENT
VACATIONING WITHIN CANADA: consumers are opting to stay within Canadian borders for their
vacations and travel domestically. According to a study by the Globe,
54% are interested in taking a trip to visit family and friends,
44% intend to visit a cultural destination (i.e. museum or art gallery),
42% want to take a cottage trip,
7% want to take a cruise, and
1% want to visit an amusement park.
YOUNGER CANADIANS HAVE A Canadians Planning to Travel for Leisure in Next 3 Months
STRONGER INTENT TO TRAVEL
15% of all Canadians, and 20% of A18-34 30%
are actively searching for travel deals. 25%
20%
This younger demographic shows the
highest intent towards all categories of 15%
leisure travel over the next 3 months, 10%
while those aged 55+ are more reluctant, 5%
as seen in the graph to the right. 0%
Car Rental Cruise Domestic Hotel Int’l Flight Private Rail
Flight Accom.
18-34 35-54 55+
18% 28% 20%
OF CANADIANS FEEL OF CANADIANS FEEL SAFE OF CANADIANS A18-34
SAFE FLYING RIGHT STAYING IN A HOTEL ARE ACTIVELY SEARCHING
NOW. RIGHT NOW. FOR TRAVEL DEALS
Sources: Deloitte State of the Consumer Tracker, Globe Insiders Travel Attitudes &
Impressions Study (June 2020)CONSUMER TRAVEL INTENT
FEWER PURCHASES BEING DELAYED
According to Deloitte, 37% of Canadians say
59%
they are delaying large purchases, down from
over 50% in mid-April.
Now that the virus is slowing down in
Canada, consumers may be more inclined to OF U.S. & U.K. CONSUMERS ARE
spend on travel. PLANNING TO TRAVEL USING
MONEY SAVED FROM A TRIP
An eMarketer survey of US and UK consumers
indicate their plans for using the money CANCELLED DUE TO COVID-19.
saved from their trips cancelled due to the
coronavirus outbreak:
• 33% intend to rebook their vacation to
another date
49%
• 14% intend to spend it on a domestic
vacation
• 12% intend to spend it on day trips
OF CANADIANS ARE PLANNING A
DAY TRIPS AND DOMESTIC TRAVEL DAY TRIP IN THE NEAR FUTURE
The recovery phase for the industry will (NEAR-TERM TRAVEL RECOVERY
SHORT TERM DISCOUNTS STIMULATE
DEMAND THE AVERAGE RETURN AIRFARE
According to the IATA, we can expect prices for IN 2020 IS EXPECTED TO BE
air travel to fall in the short term as airlines
68% lower
discount their tickets. The average return fare
(before surcharges + tax) is expected to be $254
in 2020 – after adjusting for inflation, this is
than 1998
expected to be 68% lower than in 1998.
PRICE CONSCIOUS CONSUMERS
Many consumers are cautious about how they
spend their discretionary income moving
forward. 15% globally say that they plan to take
15%
cheaper vacations following the outbreak, and
10% plan to take more budget airline flights.
CHINESE CONSUMERS OPTIMISTIC
ABOUT INTERNATIONAL TRAVEL OF CONSUMERS GLOBALLY
PLAN TO TAKE CHEAPER
With China further along in its recovery, much of VACATIONS AFTER THE
the country is open to domestic travel. PANDEMIC. ENDS
Consumers are already showing indications of
international travel intent, and have postponed
their foreign trips rather than cancelling them.
According to the China Outbound Tourism
Research Institute, Europe may see an influx of 2021 VACATION
tourists from China in the second half of 2020.
ASPIRATIONS FOR
Chinese tourists will help kickstart the recovery CANADIANS:
– in 2019, these customers made 170 million
journeys and spent $277 billion on tourism. Australia
Hawaii
RECOVERY IN SIGHT Italy
According to eMarketer, sales are expected to New Zealand
reach pre-pandemic levels in 2022. Japan
Sources: AITA, Global Web Index, France24, eMarketer, IMI Next
Wave (July 8th)MEDIA TRENDS
BUDGET CUTS
According to Adweek, travel ad spending
fell by 90% between February and March. 76%
MEDIA RECOVERY OF CANADIANS SAY
NOW IS THE TIME TO
According to a survey by the IAB Canada, START STIMULATING
we may see a partial recovery in ad spend ECONOMY THROUGH
in Summer 2020 (58%) or Sept-Dec. 2020 ADVERTISING
(65%).
IMPACT ON SEARCH MARKETING
It is expected that US search ad spending
56%
by travel advertisers will fall by 2.7% in OF U.S. TRAVELERS SAY
2020 to $54.37 billion (a drop of 15% from THE MOST RECENT
initial 2020 forecasts of $63.92 billion). TRAVEL AD THEY SAW
MADE THEM FEEL
OPPORTUNITY IN RADIO HAPPY OR VERY HAPPY.
According to a recent study by Radio
Connects and Signal Hill Insights, heavy
radio listeners over-index in expected
spending on travel, including camping
equipment (140) and domestic travel (126).
TRAVEL MESSAGING Travel Ad Spend ($000s), Canada, Digital
According to eMarketer, post-pandemic Feb Mar Apr May Jun
$25,000 100%
travel messaging will focus on three areas: $20,608
$20,000 80%
health & safety, price & flexibility, and
$15,000 60%
empathy & understanding.
$10,000 $8,135 28% 40%
$5,000
BUYERS MARKET
20%
$1,404 $1,197 $1,532
$0 0%
-$5,000
Media costs are currently lower than -15% -20%
-$10,000
typical as publishers aim to encourage ad -61%
-40%
-$15,000
spend. Advertisers can use this as an -60%
-$20,000
opportunity to set their brands up for -80%
-$25,000 -83%
success in the long term. -100%
Spend % Change
Sources: Adweek, eMarketer, Global Web Index, IAB Canada, Radio Connects & Signal
Hill Insights, Angus Reid, NumeratorFUTURE OF TRAVEL
Safety is the primary concern for consumers before
they feel comfortable travelling again.
SANITARY PRECAUTIONS
Many travel companies that have already re-
opened have upgraded their sanitation standards
and safety protocols such as:
72%
• Screening employees and guests OF CANADIANS SAY THEY ARE
• Providing face coverings UNCOMFORTABLE FLYING ON
• No-touch check-ins AN AIRPLANE WITH A
• Providing keys in pre-packaged envelopes PASSENGER SEATED NEXT TO
• Notifying guests of their right to cancel THEM IN THE ADJACENT SEAT.
reservations if they are showing symptoms
• Rolling out electrostatic sprayers
• Using hospital-grade disinfectants
MANDATORY MASKS
Mandatory masks may become permanent across
the travel industry after the pandemic.
1 in 4
VACATIONERS IN THE UK & US
AVAILABILITY OF A VACCINE
SAY A CONTACT-FREE BOARDING
According to eMarketer, 45% of US adults said that PROCESS WOULD ENCOURAGE
a vaccine was required before they would travel THEM TO TRAVEL.
internationally again.
HEALTH APPS OF THE FUTURE
45%
Medical records and data about coronavirus
antibodies may be required before boarding
planes in the future. According to the BBC, in order
to travel to and from Urumqi, China (the site of a
recent outbreak), passengers must first display a OF US ADULTS ARE WAITING
“safe to travel” health code on an app. FOR A VACCINE BEFORE
TRAVELING INTERNATIONALLY
FLEXIBILITY IS CRITICAL
Consumers will be looking for more cancellation
flexibility and assurance from travel providers
when booking travel in the near future.
Sources: InMarket InSights, GlobalWebIndex, eMarketer, BBC News, LegerBRAND RESPONSE
Travel brands are continuing to pivot and respond to the market with COVID-appropriate health and
safety protocols and increased flexibility for consumers. One of the most important actions brands can
take at this time is to communicate clearly with their consumers and demonstrate transparency in the
actions they are taking to address the pandemic.
MARRIOTT AIR CANADA
Extra perks and more flexibility Introduction of “Air Canada
offered to customers. CleanCare+” committed to end-to-
end health and safety protocols to
Marriott is offering customers additional
perks, including off-peak rates, extension of
keep customers safe.
elite status for rewards members, and the
ability to send travel points to friends or They also implemented highly flexible and
family as a gift. expanded booking options, allowing
customers to make a one-time change
Holders of the Marriott Bonvoy credit card without a fee.
have also been given extensions for the
redemption of their annual free night award. For cancellations, passengers have the option
to convert tickets to a travel voucher with no
expiry date or to receive Aeroplan Miles with
65% bonus miles provided.
22% OF VACATIONERS ARE MORE LIKELY TO BUY FROM BRANDS
THAT CONTACTED THEM DURING THE OUTBREAKIt is key to listen to and monitor the expectations and behaviours of potential travelers as we
enter the recovery period.
• In the short term, focus on local and hyperlocal vacations.
• Remain attentive and empathetic to consumer health and safety concerns.
• Proactively communicate the steps you are doing to keep travelers safe.
• It is currently a buyers market for media, presenting an opportunity to amplify your health &
safety messages and maintain consumer share of mind in an affordable way.
• Ultimately, a data-driven approach to marketing and media strategy will help brands remain
agile and prepare for what’s next.
There’s no one-size-fits-all approach on how to respond to the pandemic, with many category
nuances. We're here to help you navigate now, and plan for next. We may all be amid uncharted
territory, but together we achieve more.
Thank you for your partnership.
Susanne Morello
SVP Media | Active International Canada
Susanne.Morello@activeinternational.com
To read more of our COVID-19 media and consumer
insights, visit activeinternational.ca/covid-19You can also read
