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Travelers want more personalized tours in 2023. and will pay more for them
By
27 January 2023

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2023 will be the final phase before full recovery from the COVID-19 pandemic

2023: Final phase of travel recovery from COVID-19?

A new report by tour booking and payment platform WeTravel suggests that global travel and tourism will be back to "normal" by the end of 2023, but with big changes.

  • 2023 could see 1.6B tourist arrivals, up 30% from 2022.
  • 22% of US and European travelers may opt for more sustainable options vs. air travel
  • 55% of travelers will be seeking simpler, more down-to-earth experiences.
  • 50% say they look forward to experiencing "complete culture shock."
  • Millennial and GenZ travelers will seek "pre-digital" experiences.
  • 42% will opt for health-focused retreats.
  • Tour operators expect to see an average of 58% revenue growth by 2025.
  • Travelers aged 31-45 will dominate bookings (50%, +11% vs. 2019).
  • More than 25% of tour operators claim their 2023 tours are more than 75% sold out.
  • Bookings from travel agents will double compared to 2019, but half of all bookings will be direct via website or phone.
  • 60% of operators say travelers are booking less than 3 months prior to departure.
  • Only 30% of tours will be paid by cash or check.
  • More than 75% of operators have increased prices by more than 10% vs. 2019.
  • Demand for Asia and Australia is up, that for Europe down, other regions flat with 2018.
  • 94% of travel advisors offer tour add-ons:
    • Activities and excursions (71%)
    • Meal plans (35%)
    • Transfers (29%)
  • 94% of travel advisors' clients will pay be credit card.
  • Group tour sizes will be:
    • Fewer than 10 persons (64%)
    • 11-20 persons (27%)
    • More than 21 travelers (9%)
  • How operators will grow revenue:
    • Shift demand away from all-inclusive packages (56%)
    • Add departure dates (25%)
    • Increase depth of tours (16%)
  • Threats identified by operators:
    • Down economy, pandemic, extreme weather (89%)
    • Staff shortages, supply crisis, room availability (22%)
    • Lack of access to money (15%)

Actions WeTravel recommends for travel sellers include:

  • Target women and persons aged 35+
  • Accommodate shorter lead times, or offer discounts for earlier booking
  • Shift offerings away from Europe to Asia, Australia, Latin America. (US domestic remains strong.)
  • Increase online direct booking options
  • Increase prices slowly
  • Offer flexible payment options
  • Offer refunds as a value proposition

I would add to those recommendations: take full advantage of all of Google's travel products and services, particularly paid ads which although getting more expensive under conditions of tighter competition for consumer dollars in this down economy have essentially a lock on best ROI.


David Boggs President/CEO ACRO Global|Publisher Tourism Marketer
David H. Boggs
President/CEO
ACRO Global
Publisher
TourismMarketer

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