RESET, RECOVER & RISE - The Post-Pandemic Travel Transformation A analytical report - Talon Outdoor
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RESET, RECOVER & RISE The Post-Pandemic Travel Transformation A analytical report Smarter as Standard
Throughout this eBook, Plexus reviews the impact Global Travel Trends of COVID-19 on the travel industry so far and how The impact of COVID-19: the story so far it has shaped a ‘new normal’ for travel in the future. The Traveller Psyche Plexus delves deep into data from various How the traveller mindset has evolved reputable sources to provide a holistic view on global travel, the road to recovery and the shift in the traveller psyche. The New Consumer Journey Drawing on our experience as International OOH Adapting to the ‘new normal’ specialists, we analyse how these changes will affect advertisers and brands who traditionally The Future of Travel aim to engage with the ‘global traveller’. Travel in a post-COVID world Plexus and COVID-19 If you have any questions about the contents of How we adapted to the changing landscape this report, or want to know more, please contact us at: plexusteam@plexusoutdoor.com
The global travel industry has never seen a year like 2020. We don’t yet know the full impact across all stakeholders, but it’s without doubt that there’s going to be long lasting changes. Changes that will influence all aspects of travel. Personally and professionally, we have all had to adapt. This eBook explores these adaptations, sharing our insight and opinion on what we’ve seen, where we are, and where we are going. 2021 is likely to be a significant reset point for airlines and their passengers. Expectations will change both from a consumer experience and operational basis. In general terms, the airport experience is going to change. COVID procedures will lead to longer dwell times. Even pre-COVID, airports were moving towards a frictionless experience. Now that’s a touchless experience. Change represents opportunity; maximising use of increased dwell time, taking advantage of increased awareness, and offering tangible value to consumers. t I will become more influential in delivering end to end travel solutions and adjusting A them in real time to take changes into account. This generates huge opportunities for aligned, automated, intelligent use of data. We are already able to understand global passenger movements and behaviours in some detail. Across multiple markets, it’s now easier than ever to consistently deliver the right message at the right time, to the right audience. Tom Perrett With all this in mind, brands should have high expectations of delivering and proving Client Services Director, measurable business outcomes from their activity. We look forward to discussing 2021 Plexus and beyond. Tom has over 15 years’ experience in the OOH industry, specialising in understanding global travellers and the global OOH industry. Leading the Plexus team, he works with clients to provide better solutions for reaching people as they move across the globe.
GLOBAL TRAVEL TRENDS THE IMPACT OF COVID-19: THE STORY SO FAR Smarter as Standard PRIVATE AND CONFIDENTIAL
GLOBAL TRAVEL TRENDS The global pandemic has had undeniable adverse effects on the Travel, Tourism and Aviation industry. From global aviation coming to a stand-still, to being homebound in nation-wide lockdowns, peoples’ movements have been drastically restricted, and the travel sector has suffered as a result. Over the past several months, we as human-beings have been forced to entirely reshape how we work, live and travel. Digital adoption has become central to our lives and we have had to regularly adapt to new rules and protocols. At Plexus we have analysed various data sources to evaluate peoples’ attitudes towards travel and their behaviours during the height of COVID-19 to help us understand how travel has changed and what behavioural patterns have emerged as a result. Smarter as Standard
COVID-19 TIMELINE | THE STORY SO FAR Nov-20 Europe surpasses Jun/Jul-20 Aug/Sep-20 11 million cases Early Dec-20 Apr/May-20 COVID-19 cases One year has Multiple countries and curfews, As many countries continue to ease rise drastically passed since the first around the world restrictions and restrictions. Spain again but few COVID-19 case Dec-19/Jan-20 Feb-20 have been in lockdowns roll lifts state of lockdowns to the reported in Wuhan. WHO receives word of Cases are Mar-20 Oct-20 out across the lockdown, working emergency from same extent as The UK’s national an outbreak of cases spreading and After a surge in Harsher, region. The UK from home March have lockdown ends and of ‘viral pneumonia’ in multiple countries cases across the most E.U. countries. localised extends furlough becomes the norm. South Korea sees a been they move back Wuhan. Similar cases are beginning to globe, WHO lockdowns and scheme until Despite showing second wave. The announced. into a tier system. appear in Thailand, see a rise in cases. declares the signs of recovery, restrictions have Mar-20. Japan, the US Nepal, coronavirus US continues to see been imposed By the end of Feb China reports new Vietnam, France, there are 56 outbreak a cases rise. in markets such domestic cases. Malaysia, Singapore countries with pandemic. Madrid and and more. confirmed cases. various UK cities. Feb-20 Jan-20 UK and France China implements advise against all Oct-20 screening, travel but essential Apr/May-20 Mandatory Nov-20 restrictions, and travel to China. Mar-20 Markets such as Jun/Jul-20 Aug/Sep-20 testing on Positive news on Early Dec-20 quarantines across Lockdowns and Restrictions and Israel, Germany, Italy and a few In many travellers vaccine The UK has become multiple cities. The US restrictions lockdowns begin Italy, Denmark and other countries countries, schools becomes more developments the first Western begin to evacuate extend to more to take place South Africa release begin to open up reopened widespread in a instils hope that country to approve nationals from than 760 million worldwide. Italy, plans to start easing their international despite increases bid to keep the end of the the rollout of the Wuhan and several people in China. Denmark and lockdown restrictions. borders to specific in cases. Limits on borders open. pandemic is Pfizer/BioNTech airlines suspend others close their This includes opening countries. At the group gatherings near. Latest tests vaccine. It was flights to China. borders. The UK small stores, schools start of July, the UK remain in many show a vaccine announced that joins others and and reopening their lifted travel of the affected is more than 90% quarantine rules will enters lockdown. economy. restrictions from 50 markets. effective. be eased for countries. business travellers in England. Source: WHO; British Foreign Policy Group; thinkglobalhealth.org
Trying to comprehend the full impact of the pandemic and the extent to which it has affected people globally, is no easy task. Industries from all around the world have attempted to analyse and interpret what is an ever-evolving situation. The difficulty is that insight and data tends to be obsolete within weeks, if not days, as the impact of COVID-19 continues to unfold across the globe. Throughout all this change though, there have been fundamental trends that have emerged in the way that people behave. The Travel, Tourism & Aviation industry is among the most negatively impacted sectors as a result of the outbreak. Nevertheless, the travel industry is hugely important in terms of the global economy and humans have an inherent desire to travel and explore. Therefore, there is hope that the industry will make a full recovery in the near future. As part of the behavioural trends that have developed over the last few months, we have seen adjustments in how people plan, book and perceive travel. While the concept of travel might seem like a distant memory for some, there are people with an innate willingness to travel now and in the immediate future. Throughout this document, we will explore who these people are and how this varies across markets and types of travel. The graph on the next page illustrates peoples’ attitudes to travel during and after the pandemic across 12 countries. This demonstrates how much this can vary across the globe. This data was taken from a recent ‘Passenger Confidence Tracker’ survey conducted by Inmarsat.
WHEN WOULD YOU BE CONFIDENT TO TAKE YOUR NEXT FLIGHT? 32% 35% 29% 22% 22% 24% 20% 19% 22% 17% 20% 16% 17%16% 17% 13% 14%14% 14% 14% 10% 11% 12% 12% 12% 9% 11% 8% 7% 8% 8% 9% 8% 8% 7% 9% 10% 5% 5% 7% 4% 4% 5% 3% 3% 1% 2% 2% UK US GERMANY AUSTRALIA SOUTH KOREA SINGAPORE 43% 43% 32% 36% 26% 19% 20% 20% 15% 16% 16% 19% 14% 14% 18% 17% 16% 11% 11% 11% 13% 13%14% 10% 9% 10%10% 9% 10% 7% 7% 8% 6% 7% 6% 6% 5% 6% 5% 4% 4% 4% 3% 2% 2% 1% 1% 1% UAE INDIA BRAZIL HUNGARY FINLAND SPAIN Today More than a year Source: Inmarsat Aviation ‘Passenger Confidence Tracker’, Nov 2020 Next month Not until COVID-19 disappears Within 6 months Not until there is a vaccine Within a year Don’t know
The data conveys that travellers in the UK and HUNGARY are the most confident and would be comfortable to ‘travel today’ with scores of 16% and 26% respectively. The majority of respondents in the UAE and INDIA stated that they will travel within the next 6 months with 43% agreeing with this declaration. SOUTH KOREAN travellers appear to be the most cautious with 35% stating that they will not travel until COVID-19 disappears. Therefore, we must be cognizant of the fact that travel confidence can vary drastically across markets and as a result, recovery will be staggered.
As expected in a global pandemic, international travel will have a slower recovery than domestic travel. This is already blatantly apparent in China, where domestic capacity has actually surpassed that of 2019. Latest data from Official Aviation Guide (OAG) shows that China has a domestic capacity of +13% from 2019 figures, demonstrating a huge appetite for travel. Guangzhou airport is leading this recovery due to its vast domestic capacity. GLOBAL SEARCH DATA SKYSCANNER This trend has been evident since March 2020, when China was seemingly on the road to recovery, but the rest of the world were at the verge of undergoing an influx of COVID-19 cases. Oliver Wyman carried out a research study to assess the JAN FEB MAR APR MAY JUN JUL AUG SEP implications of COVID-19 on Chinese travellers back in March. Results from the survey 15% 13% 12% showed that 77% of Chinese travellers would prefer for their first post-pandemic trip to 11% 11% be a domestic one. When comparing this to their travel survey from last year, this 10% demonstrates a 13% YoY uplift in domestic travel. Therefore, there is a clear increased 5% interest in travelling domestically rather than internationally in the near future. 0% Looking at the impact of COVID-19 in China is fundamental in our understanding of the virus and the steps we need to take in order to recover. The Plexus team -5% reviewed this earlier in the year and published a blog post, which you can read more -10% -11% about here ‘China Shows the way for a Post-COVID World’. -10% -13% -15% -15% The trend of favouring domestic travel has been echoed on a global level. As we can see from the graph opposite, since June there has been a dramatic dip in the -20% number of international searches and a practically mirrored trajectory for domestic searches. This was at a time when air travel and international borders were about to DOMESTIC INTERNATIONAL reopen. Source: COVID-19 impact on Chinese traveller survey, March 2020, Oliver Wyman; OAG Frequency & Capacity, December 2020; Skyscanner Travel Insight, 2020 Smarter as Standard N.B. data has been standardised to demonstrate the trends.
Another trend that we have witnessed is a rise in last-minute holiday searches. Skyscanner Travel Insight allows us to track 7-30 DAY SEARCHES the increase in searches for holidays within a 7-30 day period JAN FEB MAR APR MAY JUN JUL AUG SEP from the date of search. 30% AU BR 25% DE There has been a global increase in short-term searches since ES 20% FR Q1 and this trend has continued over the course of the IN pandemic. This pattern reflects the global response to COVID- 15% IT JP 19 as a whole, as protocols and procedures change regularly. KR 10% NL RU Safety regulations for travel were (and still are) repeatedly 5% SI updated which, consequently, means that passengers only 0% TR have a short window of time to plan and book their holidays, or TW UK the opportunity might be missed. Brands need to keep this front -5% US of mind when advertising as there is a clear appetite for travel -10% GL in the short term. Unlike previous years, passengers do not necessarily have the confidence to book trips that are far into 20% the future, so considering the timing of campaigns is vital. 15% 14% 15% The bottom graph separates the global trend so that we can 10% 11% see how this has changed over time. So far, the summer 10% 6% months saw the biggest uplift when non-essential travel first 3% GL 5% began to reopen. It will be interesting to see if this trend is a -1% temporary response to COVID-19, or one that will continue into 0%-3% -2% the future. -5% JAN FEB MAR APR MAY JUN JUL AUG SEP Source: Skyscanner Travel Insight, 2020 N.B. data has been standardised to demonstrate the trends.
The same search data from Skyscanner reveals that one-way searches also rocketed at the beginning of the pandemic in ONE-WAY SEARCHES March and April, and remained above the norm throughout JAN FEB MAR APR MAY JUN JUL AUG SEP the summer. Although, the level of increase varies per market, 30% when we look at the average on a global level, there was still a significant upsurge. 20% If we isolate the global data we can see that in April and May, the number of one-way searches increased by 16%. Even 10% though it reduces over time, when we look at the data at the end of the summer, we can see that one-way searches were 0% still far more common than pre-COVID times. The flexibility of remote working means that people are not tied to working AU BR ES FR IN IT JP KR from a specific location and therefore, are able to work from -10% NL RU TR TW UK US GL abroad. 20% G… 16% 16% This trend can be interpreted in a number of ways, however, 14% 15% 11% 11% one interpretation is that people are looking for flights to 10% 9% destinations where they plan to stay for lockdown. This could 10% be a second home, back to their families, or a sunny destination. Another interpretation could be that people are 5% researching where they can currently safely travel to and are 0% -2% keeping this in mind for future holidays. Ultimately, this data -4% reveals that there is a strong desire for travel despite the -5% impact that COVID-19 has had. -10% JAN FEB MAR APR MAY JUN JUL AUG SEP Source: Skyscanner Travel Insight, 2020 N.B. data has been standardised to demonstrate the trends.
It is fair to say that the pandemic and consequent lockdowns have sparked a heightened global awareness of socio-economic issues. This was further amplified by the increased use of digital platforms. News spreads far and wide Respondents agree that via social media networks, sparking global controversy and shining a light on companies behaving in more 39% major universal issues that perhaps did not receive the same level of attention in sustainable/eco-friendly ways a pre-COVID world. has become a lot more important because of One subject that has certainly received greater consumer attention is coronavirus. sustainability. COVID-19 forced the world into a stalemate and in doing so, revealed the shocking condition of the environment. Since then, brands, individuals and industries are undergoing increased public scrutiny and pressure to reduce their negative environmental impact. Although sustainability has been Of all travellers would a conversation point for many years, we cannot deny that there is now a higher consider switching their 56% expectation than ever before to behave and operate in sustainable and eco- preferred airline if there friendly ways. The following consumer sentiment data demonstrates just that. was a more environmentally- friendly option available. 58% of consumers say they are thinking more about the environment since COVID-19. 42% Of millennials said they would be willing to pay more for a 60% agree that sustainability has flight that had lower become a more important environmental impact factor when choosing which compared to similar airline to fly with. flight options. Source: GWI Wave 5 Multi-market Coronavirus Study 2020; OAG A Greener World of Travel May 2020
The shift in how people travel is not only motivated by sustainability, Globally, commercial aviation has more or less halved in terms of but also hygiene. The COVID-19 outbreak is a health crisis after all capacity however, when looking specifically at private flights, the and passengers want to avoid crowded and contained areas – decline is far less drastic. Financial Times published an article where both of which are inherent characteristics of commercial flying. For they compared data from WingX and Eurocontrol to assess the businesses and individuals who can afford it, flying via private jet recovery of private and commercial flights in 2020 vs. the same period presents them with the unique opportunity to socially distance while in 2019. We have included a snapshot of that data below. Although, travelling and therefore, this method of travel has been favoured both forms of aviation have followed a similar pattern, private aviation during the pandemic. We expect this trend to continue as people is way above that of commercial flights. have become more hygiene conscious. Plexus first evaluated this back in early May after witnessing MAR APR MAY JUN JUL AUG SEP dramatic spikes in private flights. The increases at the time can be 20% largely attributed to High Net Worth Individuals (HNWIs) jetting off to their lockdown locations. Destinations such as Ibiza, saw increases as 0% high as 80% YoY. You can read more about our findings in our blog -20% post titled ‘COVID-19 and the Rise of Private Jet Travel’. -40% While the figures are not quite as extreme now, we are still witnessing similar patterns. We expect many large corporations to continue -60% choosing private flights for their business executives above first or -80% business class on commercial flights, as they have a corporate responsibility to protect their employees. This might be further -100% amplified since announcements that as of 5th December 2020, high- Commercial Private value business travellers will no longer need to self-isolate when returning to England. Currently the rules only apply to top bosses of multinational firms, so private/business aviation will likely be a viable option for them. Source: Financial Times, WingX; BBC News Smarter as Standard
CHAPTER SUMMARY With no clear view on travel restrictions in the future, consumers The desire and willingness to travel varies across have favoured last-minute holidays and searches for holidays markets, therefore, brands need to be mindful about within 7-30 days have risen. Passengers want to take who they are speaking to and how they are speaking advantage of being able to travel before the opportunity to them. passes. Unsurprisingly, domestic travel has been the preferred As travel, businesses and people were forced into a global type of travel during the pandemic and is likely to standstill, the impact we have on the environment was brought continue to be in the immediate wake of COVID-19. to light. As a result, sustainability has increased in importance However, international travel still has its place and will for consumers. see a recovery in the future. Due to presenting a unique opportunity to socially distance The impending lockdowns and uncertainty around while travelling, private aviation has become the preferred travel restrictions resulted in a spike in one-way method for businesses and HNWIs. Brands who appeal to an searches. With the flexibility of working virtually, people affluent audience should consider this environment as a key are able to work from anywhere. touchpoint for their target audience.
THE TRAVELLER PSYCHE HOW THE TRAVELLER MINDSET HAS EVOLVED Smarter as Standard PRIVATE AND CONFIDENTIAL
THE TRAVELLER PSYCHE Air travel has changed significantly in 2020 with Global international passenger figures down 91.8% at the height of the pandemic. Whilst hopping on a plane and taking a trip was temporarily put on hold this year, research has shown that our determination to travel remains stronger than ever. Travellers are not cancelling their journeys; they are simply pushing them back a year or two whilst still dreaming of faraway beaches and planning vacations. Source: IATA and Travel Mindset Smarter as Standard
THE IMPACT OF COVID-19 ON MINDSET Passengers have reported People are actively seeking more Travellers are now more mindful of what a heightened sense of sustainable modes of travel and they touch throughout their airport anxiety around travel and companies with greener journeys. This has led to an increased are now more risk-aware. credentials. Passengers will look desire for touchless travel and modified They crave a new level of to eco-tourism certifications for behaviour as consumers become more security when flying. travel recommendations. health conscious. Safety and flexibility are now a priority for passengers Quarantine regulations in 2020 have dissuaded travellers from with people actively seeking airlines whom have put taking trips. Many passengers have reported that they will be in health and safety measures around COVID-19. more inclined to travel if the duration of quarantine is Passengers are also looking to book travel which shortened or the rules are relaxed. In the UK, 78% of UK can be easily changed or cancelled depending on travellers said halving the quarantine time from 14 days to 7 restrictions and quarantines. would make them more likely to travel abroad
Global sentiment towards travel is shifting week by week. The graph below shows how people currently perceive the COVID-19 pandemic. Swings in sentiment will affect people’s likelihood to travel, with those feeling that the situation is staying the The percentage of people in same or getting worse unlikely to book a departure within the near future. AMER whom believe the 33% Skyscanner search and booking data has shown that when restrictions are current situation is improving. changed, travellers are willing to adapt their travel behaviours in order to continue Up from 30% the week prior. travelling. A combination of reduced quarantine length and more airport testing 37% think it is getting worse measures could mean that we see more travellers feeling confident to travel to which is down from previous their favourite places again without being heavily impacted on their return. weeks. GLOBAL SITUATION SENTIMENT The number of people in EMEA Q. Overall, how do you feel about the global progress regarding COVID-19 whom believe the situation is 100% Situation Global getting better has nearly doubled in the past week at 23%. 48% think it is getting 23% % of Total Count of Situation Global It is getting better 80% It is getting worse worse which is down from It is staying the same previous weeks. 60% 40% In APAC 27% of people 27% believe that the situation is improving. 46% think 20% that it is getting worse, up 1% from last week. 0% 6 Apr 4 May 1 Jun 29 Jun 27 Jul 24 Aug 21 Sept 19 Oct 16 Nov Week of Date (2020) Smarter as Standard Source: Skyscanner 2020
In 2020, the resolve to travel has remained strong. People are not cancelling their holidays, they are simply postponing them. Research has shown that travellers are flexible and willing to adapt their travel behaviours in order to of people afraid that they will continue travelling. Reduced quarantine length and increased airport testing 44% catch COVID-19 on a plane. measures will boost passenger confidence to travel to their favourite In reality the risk is very low, as destinations without being affected on their return. The pandemic has led to detailed here. a number of passengers having anxiety about air travel. Due to this we are seeing a new era emerge, with passengers trying to balance any potential health risks alongside their desire to travel. It is this balancing-act which is driving a new set of consumer values. Factors that were once important when booking a trip, such as speed and cheap tickets are being de-prioritised in favour of new considerations such as COVID-19 secure processes and health conscious travel providers. We are also seeing an impact on people’s behaviour in public spaces such as airports. Due to social distancing, we are more acutely attuned to situations of respondents in an OAG study with lots of people. Passengers will not want to sit next to a stranger in the 61% reported that they would like near future or be in close proximity to anyone throughout their journey. Before their travel providers to give COVID-19 it would have been an inconvenience to have a stranger sit next to them predictions of how busy a you but now it is a genuine health concern and people will be conscious of flight will be. this when travelling. ‘Safety’ has taken on a new meaning to passengers, not only are they concerned with the operational running of a flight and the aircraft itself, they are now looking at airlines whom have actively adopted new health- conscious rules in 2020, such as mandatory face coverings for all passengers and staff. People also want to see enhanced cleaning and staff education around the virus. Passengers are actively seeking out additional data to inform their travel decisions. When considering potential destinations, people are not just looking at general tourist information for their destinations either, they would like specific insight to be given, such as the number of COVID-19 cases Source: Skyscanner 2020, Euronews 2020, OAG
THERE ARE THREE NEW PASSENGER DEMOGRAPHICS EMERGING IN 2020 DUE TO THE PANDEMIC CONSCIOUS We are seeing a rise in the number of travellers whom are more discerning about the journeys that they are taking and more conscious of how much they travel. According to Skyscanner research, this group will be TRAVELLER more willing to stay away from home for longer thanks to remote working. They will be less reckless with their spending and they will appreciate their surroundings more. This will lead to more meaningful travel. Safety and sustainability will play a big role in this group’s travel decisions. These messages will be key for our audience, whom will look to OOH for information on these topics. RISK- TAKING The Pandemic has shown a number of travellers to be open to risks and uncertainty when it comes to their adventures, with many choosing to book trips regardless of the Global health crisis. These people will most TRAVELLER likely to have a lifestyle which is centred around travelling and they will be keen to book more trips as soon as it is possible to do so. Nearly a third of passengers have not amended their travel habits because of the virus. This demographic has a high proportion of Millennials and Gen Z within it, with 69% being less likely to adjust their travel plans because of the virus. BLEISURE The return of the Bleisure traveller – someone whom mixes both business and leisure in one trip. This group will seek out business trips which can be extended to allow for a few days holiday as well. “Business trips will TRAVELLER become increasingly popular and a valuable source of additional tourism revenue for predominantly work- related destinations” [Skyscanner]. The flexibility of working virtually means that many business travellers are able to extend their trips and stay in their destination for longer. The Bleisure traveller gives us an opportunity to target our audience in a dual frame of mind as they pass through airports. Source: Skyscanner 2020, Euronews 2020
In the future, we are likely to see a rise in ‘reactive’ travel with DOMESTIC EMEA APAC AMER passengers booking journeys closer to their travel date instead of planning far into the future. This is a trend which 60% I believe it is currently safe Within a week Within a month In 1 to 3 months In 4 to 6 months In 6+ months + we saw in the summer months during the peak of COVID-19. Passengers will want to know of any quarantine rules closer to 40% their time of travel which will drive this ‘reactive’ booking % of respondents trend. Across different markets there are varied opinions from 20% travellers on when they expect to travel again, with many believing that it is currently safe to travel domestically but hesitant to travel abroad until 2021. 0% Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug These graphs from Skyscanner research show the expected GLOBAL timelines from passengers of when they feel it will be safe for I believe it is Within a week Within a month In 1 to 3 months In 4 to 6 months In 6+ months + them to return to travel. currently safe 60% % of respondents QUESTION 40% When do you think it will be safe to travel 20% again? 0% Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Source:: Skyscanner Source: Skyscanner 2020 Smarter as Standard
This data shows that EMEA has the highest proportion of DOMESTIC EMEA APAC AMER travellers whom believe that it is currently safe to travel domestically. 60% I believe it is currently safe Within a week Within a month In 1 to 3 months In 4 to 6 months In 6+ months + APAC passengers have a high propensity to believe that international travel within 6 months will be safe again, whereas EMEA travellers are a little more cautious with only 40% % of respondents 40% of people reporting that they will be travelling during the next half of the year. 20% 0% Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug GLOBAL I believe it is Within a week Within a month In 1 to 3 months In 4 to 6 months In 6+ months + currently safe 60% % of respondents 40% 20% 0% Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Mar ----------------- Aug Source: Skyscanner 2020 Smarter as Standard
Data is demonstrating a peak in travel searches following the announcements of Travel Corridors, for instance, on November 12th this year, a dramatic increase was seen in flight searches to UAE following updated travel advice. Travellers are paying attention to Government advice and travelling to destinations which are deemed safe. Following the current trend for last minute bookings, the graph below shows a surge in travel searches for Dubai in December 2020 compared to the STLY. This shows how travellers are ready to travel and are immediately reacting to Government guidelines. REDIRECTS TRENDS 2020 2019 Flights Data 1 Jun 12 Jun 23 Jun 4 Jul 11 Jul 28 Jul 6 Aug 17 Aug 28 Aug 8 Sept 16 Sept 30 Sep 11 Oct 22 Oct 2 Nov 13 Nov Source: Skyscanner 2020
WHERE WILL PEOPLE TRAVEL TO IN THE FUTURE? Prior to a vaccine being made available world-wide, travellers will take advantage of Travel Corridors, feeling secure in the knowledge that these EUROPE destinations are approved and do not require a period of quarantine. These ‘travel bubbles’ are continually being reviewed based on countries whom 63% Internationally have the virus under control. Travel corridors will pave the way for new 73% Domestically destinations to be explored. APAC We are likely to see a new trend emerge following COVID-19, with people now travelling to less populated destinations. This will be for two reasons, firstly Internationally 55% health as it is likely that social distancing will remain a necessity for a while but Domestically 78% also to diversify tourism and help smaller communities whom rely on outside revenue sources. Travel searches in the UK rose 48% in the last week with new emerging NAM destinations for passengers for Easter 2021 – Orlando, New York, Dubai, Bali and 73% Internationally Bangkok top the list of long-haul searches.. 81% Domestically London, Kuala Lumpur, Tokyo and Shanghai are topping the list of travel searches in Australia. More than 1 in 3 travellers here believe that the COVID-19 situation is getting better. GLOBALLY Internationally 69% Domestically 79% Source: Skyscanner 2020, OAG Smarter as Standard
WHY ARE PEOPLE TRAVELLING? Passengers are thinking more carefully about the way in which they travel and which companies they travel with following the pandemic. In a survey, 55% of passengers reported that they are extremely or somewhat likely to explore new air brands or loyalty programs in the future. As passenger priorities have adapted, people are thinking more carefully about why they are travelling. In answer to the question “Why are you visiting Skyscanner today?”, 44% said they were actively planning a trip, while another 44% said they were considering planning a trip. With the rise of the conscious traveller and the Bleisure traveller we are seeing a rise in the number of people whom are taking a trip for work but staying for longer in their destination to have a holiday. The resurgence in this type or trip is down to passengers making the most of their journeys and seeking to travel as few times as possible. From this, it is likely that ‘workations’ will be very popular in 2021, with people embedding themselves in a place for a longer amount of time whilst both working and taking a vacation. People are also looking for more experience-led travel. During 2020 passengers have had the opportunity to reflect on their travel dreams and plan the trip of a lifetime. It’s likely that we will see an increase in bigger ticket holidays once it is safe to travel. People will want experiences and they are willing to pay for extra to make them happen. In the UK, 70% of travellers are prepared to pay for a test in order to avoid quarantining on their return home, people will also look for other payable options which will firstly allow them to travel and secondly make it safe to do so. There will also be a wider shift towards more meaningful travel which is centred around giving back to our planet. It is important for advertisers to recognise the shift in passenger motivation and to understand what is driving people to travel. This will allow us to remain relevant with our campaigns and to talk to passengers in the right context. Source: Skyscanner 2020, Euronews 2020
THE FUTURE TRAVELLER MINDSET TRAVELLER CONFIDENCE is likely to come from SUSTAINABILITY will be at the forefront of people’s the introduction of an easier journey. A minds, with more consumers looking for greener combination of reduced quarantine length air travel and companies whom are actively and more airport testing measures could mean tackling their emissions. Air pollution around that we see more travellers feeling confident to Gatwick reduced by 60% during the height of the travel to their favourite places again without pandemic and by 54% around Heathrow airport. being heavily impacted on their return. With pollution issues being prevalent in the public consciousness, passengers will prioritise travel providers whom are actively helping the planet. Passengers will look for reassurance from There will be a wider shift towards legitimate eco-tourism certifications more MEANINGFUL AND EXPERIENTIAL TRAVEL, centred around giving back to our planet. SAFETY AND FLEXIBILITY will be front of mind, with people actively searching for airports There will also be a shift and airlines whom have implemented towards EXPERIENCE-DRIVEN COVID-19 secure procedures. TRAVEL and once in a lifetime holidays. Travel will not be taken for granted in future and people will seek once-in –a-lifetime trips. Travellers will access TRAVELLERS ARE LOOKING FOR DEALS – 91% touchpoints along their of people in UK, US and Australia who will journey and look for MINIMAL search for Black Friday travel offers did not POINTS OF CONTACT. search for these last year. Source: Euronews, Skyscanner, The Guardian
CHAPTER SUMMARY The mindset of air passengers is adapting quickly and shifting based on the ever changing COVID-19 situation. People’s priorities when booking a trip will shift. The focus will Week by week we are seeing passenger sentimentalities be on flexibility, safety and sustainability. There is a demand towards air travel evolving. for global standardisation. The resolve of passengers is still strong – their travel is not New types of passenger demographics are emerging. We are cancelled, it is simply delayed until it is safer to travel. seeing a split between passengers who are cautious of Passengers are still looking for inspiration and dreaming travelling and those whom are willing to take risks in order to of far-off destinations. continue fly. People are eager to book holidays as soon as they can, Passengers will expect a new type of journey, with less contact with many planning trips within the next six months. points and more opportunity to use their own devices. This Brands need to keep this top of mind when decided the increased digital adoption will require adapted advertising best time to run a campaign. methods, such as the combination of mobile & OOH.
THE NEW CONSUMER JOURNEY ADAPTING TO THE ‘NEW NORMAL’ Smarter as Standard PRIVATE AND CONFIDENTIAL
THE NEW CONSUMER JOURNEY Following on from the current and future traveller mindset, we have reviewed the new consumer journey and how passengers are adapting to the ‘new normal’. Developing technology means that the consumer journey is continually evolving. With COVID-19 prominent globally, change has been necessary for the safety and security of passengers. Integrated digital solutions that enable safe and seamless travel are being fast-tracked to reduce physical touchpoints across the traveller journey. Smarter as Standard
The airport is more than just a place passengers pass through; it is a destination. As developments within the environment have evolved and advanced airports are now seen as an attraction in themselves. Both amenity and service driven, providing an immersive and entertaining user experience has become a priority. This is only going to amplify further with an estimated $1.2 - 44% of passengers say that airline reputation is now more important when choosing an airline to fly with $1.5 trillion expected to be spent on global airport infrastructure by 2030. Airports are quick to adapt to fit the current climate. The sector will build on and aggregate existing solutions. From biometric 47% verifications and e-gates to contactless payments to enhance the of passengers feel confident to fly within 6 months traveller journey, these advances address new concerns around and 1 in 6 UK passengers would be happy to get on capturing health data and contact tracing. There is a need to a flight today prioritise the harmonisation of standards and processes for efficient and reliable health testing and tracing, particularly before a vaccine is made available world-wide. 79% The aim is for seamless travel experiences which enable of passengers would feel more confident if they passengers to feel safe and secure within the airport. For this to could stay up to date with real-time destination become a reality, new and improved methods within the information during the flight environment will become the ‘new normal’. 85% of passengers would feel more confident flying with staggered boarding enabling greater social distancing Source: Inmarsat Aviation ‘Passenger Confidence Tracker’, Nov 2020, IATA Airport Infrastructure 2020 Smarter as Standard
52% Staggered boarding and leaving the plane Toilet queue booking app 32% The air travel experience has fundamentally changed forever. The push for a touchless journey has resulted in new ways of travelling through the airport. There are new aspects of the travel experience that passengers want to remain even after the pandemic is over – largely driven by opportunities for digital information and engagement. Online The advancements highlighted on the diagram to the right 45% destination info inflight introduce new benefits of advertising within the airport environment. For example, staggered boarding could increase dwell times and advertisers can therefore capitalise on this. Heightened digital use could result in mobile Pre-order catering 39% 43% retargeting and use of QR codes being more valuable. The Real time enhanced processes displayed mean that there will be more luggage tracking opportunities than ever for brands to reach consumers. QUESTION Crew chatbots 20% 40% Facial recognition What new aspects of the travel experience would be security an improvement compared with how it was before, and should be kept even after the pandemic is over? 35% Inflight entertainment on my own device Source: Inmarsat Aviation ‘Passenger Confidence Tracker’, Nov 2020 Video medical support 33%
Following on from developments within the environment, some airports have already begun new and improved ways to enhance safety and security. In particular, Changi Airport in Singapore have taken the lead in providing a safer consumer experience. Several initiatives have been put in place to contribute towards a touchless journey. FAST CHECK-IN KISOKS AND BAG-DROP fitted with proximity sensors so passengers will not need to touch the screens to check-in or to drop off their bags. Passengers will just need to point their finger close to the screen to make their selections. NEW BIOMETRIC SYSTEMS that uses face and iris recognition technology to match passengers with their travel documents. This replaces the need for traditional fingerprint- scanning. Over 70% of passengers believe new AUTONOMOUS CLEANING EQUIPMENT technologies to improve safety and deployed throughout Changi Airport, cleaning floors security within the airport would either and carpets daily. These robots have been equipped with a misting attachment that disinfects improve or significantly improve their the carpets after cleaning. confidence when travelling Source: Changi Airport, Measures Against Covid19, 2020
Forward thinking, prioritisation of passenger safety and the use of technology in airports can create a safe environment for QUESTION passengers to travel. How confident would you feel with regards to safety / health precautions at the following points in a journey? The multiple touch points within the consumer journey enables Mean score out of 10 at each point in the journey where brand engagement and interaction, whether it be via mobile, 10 = confident, and 1 = not at all confident. OOH or both. Although the passenger journey cycle is currently less frequent, as vaccines become available to the public and consumer confidence continues to rise, the cyclical passenger journey will return, keeping advertisers front of mind with their consumers; from booking flights to thinking about their next. Airport terminal Staying abroad Communicating More than ever brands need to be educated on the touch Boarding gate Served inflight with cabin crew Onward travel point that they are advertising at. With new safety methods put meal in place passenger confidence varies throughout the Security search Passport control environment. The graph to the right outlines consumer confidence throughout the passenger journey. Boarding Arrivals Visiting the toilet inflight The graph conveys that currently passengers feel that they are Around the safest when communicating with cabin crew, closely passengers 6.51 6.41 followed by their journey through passport control and security 6.34 6.24 6.09 6.04 6.09 search. We know that OOH is seen as a trusted medium 6.05 6.00 6.08 however, brands might benefit further from advertising at touchpoints that are associated with safety. As more airports introduce touchless, safer methods there will be a visible 5.30 5.42 increase in the numbers on the graph as passenger confidence within the environment grows. Source: Inmarsat Aviation ‘Passenger Confidence Tracker’, Nov 2020
With a reduction in physical touchpoints being a goal for airports as a 77% of passengers have said that they would feel result of the current climate, the use of mobile and OOH together is even more valuable. The rise in the need for use of mobile in the either significantly confident or slightly confident airport to access information, specific apps and travel documents, using mobile booking verification. This contributes algins with integrating mobile and OOH advertising to target to minimising physical contact within the airport. consumers effectively. These factors contribute to the concept of a document-free future. Mobile opportunities extend the physical world directly into traveller's of passengers have said that they would feel hands and keeps brands front of mind, reaffirming brand recognition 76% and brand messaging. either significantly confident or slightly confident using immunity passport on mobile. Using this The need for a touchless process accelerates the opportunity for method is a step towards enhancing passenger brands to target consumers via the various mobile advertising information and aligning with the touchless methods. Understandably, it does take time for passengers to be journey. confident with storing and accessing information in a new way. However, confidence in the process will continue to grow as more airports adapt to the ‘new normal’ that is required for a safer journey. of passengers have said that they would feel 66% either significantly confident or slightly confident pre-ordering catering for the airport. Along with mobile booking, this minimises contact within the environment. Smarter as Standard Source: Inmarsat Aviation ‘Passenger Confidence Tracker’, Nov 2020
Online booking rather There is value in every step of the than methods that require consumer journey. Although passengers face to face contact BOOKING will need to adapt to the ‘new normal’, Transfer booked further in advance to facilitate possible longer security the combination of advancements in TRANSFER times as a result of testing technology and safety will result in a more Paperless processes seamless and enjoyable airport meaning e-travel experience. document are advised CHECK IN The diagram to the right illustrates the Biometric screening to avoid various consumer touch points and how SECURITY contact with machines and staff processes are having to evolve to keep There will be a push for passengers pace with an unprecedented rate of to pre-order catering, duty-free change. and contactless payment methods DUTY FREE Social distanced seating as The widespread availability of digital well as online queuing technology is delivering huge efficiencies LOUNGE / CONCOURSE systems during busy periods including the ability to adapt quickly to Staggered boarding to maintain change, often in real-time. distance between passengers BOARDING Hard copy magazines and IN FLIGHT flight safety to be digitalised Pre-landing immigration clearance to reduce congestion in arrivals ARRIVAL Testing / thermal scanning when entering destination to DESTINATION reduce spread of the virus
ADAPTED AND NEW WAYS TO ADVERTISE Branding hand sanitiser stations enables advertisers to The adaptations and advancements throughout the consumer reach consumers in a new and unmissed way. Heathrow journey as a result of COVID-19 means that there are more airport already have this opportunity ready for brands. opportunities than ever for brands to advertise within the airport environment. Utilising QR codes to access information is a dynamic way Looking back on the statistics throughout this section it is clear that of advertising that isn’t new to the OOH space however, passengers are open and willing to adapt to the ‘new normal’. demand for this method will be higher than ever with the Whether that be new technologies, new ways of storing personal need for a touchless journey. and travel data or physically keeping a safe distance. This positive outlook on the new methods within airports reflects well on advertisers who want to target consumers throughout their journey. Mobile/online advertising including advertising via queuing With a positive outlook comes receptiveness to advertising. or pre-ordering website/apps as well as branding of e- documents are all forms are advertising that are going to be Although many of the advertising opportunities were available to key when targeting the new consumer journey. brands prior to COVID-19 there will now be a heightened demand to reach consumers via these methods. There is the opportunity to target more consumers than ever as passengers who would not Touchless screens for brands to advertise in airports outlines usually have a digital outlook are being pushed in this direction and how we can still use dynamic OOH in a safe way to keep therefore exposed to the advertising. consumers engaged. Talon Outdoor worked with the brand ŠKODA in November on a campaign which utilised touchless screens within a mall environment. You can read more about this on the Talon website here.
CHAPTER SUMMARY Airports serve as a destination not just a place Technological change and digitalisation is at the forefront of passengers travel through, resulting in longer dwell time providing a safer and seamless journey for consumers. These and greater opportunities for brands to connect and elements are going to continue to drive the evolution of the engage with consumers. passenger journey, enhancing the overall experience. The ultimate aim is for a touchless consumer journey. Although adaptation to the ‘new normal’ takes time for This evolution has been accelerated by the COVID-19 consumers to trust new processes, the evidence demonstrates pandemic. Airports are reducing physical touchpoints that passengers are willing to try new methods and in turn to make the experience more seamless and enhance create a safer environment. passenger safety. The ‘new normal’ has introduced new and adapted ways of Consumers have different levels of confidence at the targeting consumers via OOH. The necessity for a change to various passenger journey touch-points. Brands processes on account of the COVID-19 pandemic has therefore need to be mindful of their messaging and increased dwell time and the use of technology, creating new the way in which they choose to connect with and more targeted opportunities for brands within the audiences at the different stages. environment.
THE FUTURE OF TRAVEL TRAVEL IN A POST-COVID WORLD Smarter as Standard PRIVATE AND CONFIDENTIAL
THE FUTURE OF TRAVEL As we all know too well, the world has had to adapt to new ways of living in response to COVID-19. Masks have become an everyday staple; social distancing rules have been enforced; and gelling our hands has become a regular habit. We have been able to adapt to a lifestyle that is so starkly different from anything that we have known before. This flexibility that we have demonstrated provides optimism and hope for the future of travel. While similar fundamental changes will need to be made to the industry, we know that consumers can and will adapt. So, what does the new shape of travel look like? Based on our understanding of behavioural trends, consumer sentiments and industry news, we have summarised what can be expected for the future of travel. Smarter as Standard
As is evident from various consumer sentiment studies, business and industry green credentials have become increasingly important. The global attention on the matter has been intensified as a result of the pandemic and people are now looking to brands and companies to ensure that they continue to demonstrate their commitment to a more sustainable future. Since air travel came to a global stand-still in March and April, travellers were forced to reconsider the impact of travel. The world saw tremendous changes as carbon emissions reduced and air quality improved. Since then, consumers are reassessing the way in which they will travel in the future. With rising environmental concerns, the industry has a lot of work to do to for consumers to have trust and confidence that the necessary steps are being taken to reduce carbon emissions. Global travel brands such as Skyscanner have been encouraging this for years with their ‘Greener Choice’ labels which highlight flights that emit less CO2 compared to the average flight for that specific route. While this was a pre-COVID development, we know that passengers are becoming more conscious of their carbon footprint and are therefore, more likely to select greener options, or change their mode of transport entirely. TRAIN PLANE There is some work be done for the industry as a whole, but on an individual level, many airports, companies and airlines have already pledged to gradually reduce their carbon emissions In a global study by OAG, it was found that 50% of all entirely as they endeavour to have carbon neutral operations in travellers would be willing to increase their travel time by 2 hours the future. or more if it was a greener mode of transport. This leads us to wonder whether planes will be substituted for trains, a greener Advertisers are also being held to the same standard and there alternative, for domestic, regional and short-haul destinations. is a global expectation for them to demonstrate their ecological commitment. It is important for brands to understand the steps We know that domestic and short-haul destinations are going to that are being taken by the travel industry and the impact that be the first to recover so this could result in heightened this will have on the airport environment. Brands with sustainable passenger use of international train services such as Eurostar and values should align themselves with these positive developments other high speed rail services in the future. and benefit from connotations of greener credentials. Source: OAG ‘A Greener World of Travel’ 2020
The importance of sustainability is evidently an overarching theme of 2020, which consumers expect to be addressed and implemented by industries and individuals alike. Travellers have expressed a renewed interest However, the subject of sustainability is not only limited to environmental in sustainable and environmentally conscious factors, but also, to the economy. With a heightened awareness of social travel. distancing rules and hygiene, we can expect there to be a change in where people travel. New, rural and ‘off-the-beaten-track’ destinations are set to see increased tourism, while traditionally popular destinations might receive smaller crowds. Sustainable Tourism needs to be at the forefront of these Eco-destinations are likely to see an influx of changes as the economical and ecological state of regions must be new travellers, while traditionally popular protected in order for them to welcome tourism. destinations might see smaller crowds. AI and digital technology is becoming so integrated in the consumer journey and people’s safety that there is a risk that more rural locations cannot deliver the same standard. Therefore, there is a need for the travel and tourism industry to provide support to these locations. Peak travel periods might no longer be as clear cut. Extraneous variables such as With new destinations increasing in popularity, new peak travel periods are weather, travel corridors and avoiding crowds likely to emerge. These might be prompted by local seasons and when it is could influence when we see people travel. best to visit, or, it might be a reactive response to new travel corridors and eased restrictions, which dictate when and where people can travel. This could also be impacted by people wanting to avoid peak times. Advertisers must keep this front of mind as they need to be conscious of who they are speaking to and when. We must continue to see how this trend evolves over time in order to fully comprehend the changes.
Restoring passenger confidence is essential in accelerating the recovery of travel. The COVID-19 outbreak has triggered increased health and safety concerns, which means that passengers are less trusting of 1 3 crowded and enclosed environments. We already know from the ‘New Consumer Journey’ chapter that passengers are demanding fundamental changes to their airport and travel experience in order to make them feel more comfortable with travelling. Airports are already responding to these demands but this is 2 only happening on an individual airport by airport basis. There is a global demand for standardised health and safety regulations across airports in 4 order to instil consumer confidence and see travellers return to the skies. HEPA Fresh air intake While confidence might be low and the risk of flying might be perceived The seats and passengers face forward which limits the as high, recent research from IATA shows that the probability of catching and transmitting Coronavirus on an aircraft is in fact, very low. 1 number of face-to-face interactions. The low risk can be attributed to a number of factors, which we have illustrated in the diagram on the right. Although the actual risk of in-flight The seat backs act as an additional solid barrier. Masks are transmission is low, there is still some work to be done in reviving 2 also compulsory on aircrafts, which again, act as a barrier. passenger trust in travel. Research suggests that the airflow does not act as an We know however, that there is already a distinct traveller profile who is willing to travel now and in the immediate future. With recent positive 3 accessory for droplet spread, unlike other indoor environments and modes of transport. news on vaccine developments, we can expect the number of people willing to travel to grow and for travel to quickly resume. Modern airlines use hospital-grade HEPA filters meaning 4 that the cabin air is exchanged every 2-3 minutes. Source: IATA, November 2020
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