From how travelers book to where they want to visit, travel is changing in 2024. To meet the preferences and behaviors of today’s travelers, businesses must first understand what travelers are looking for in their next adventure – and appeal their products and services to those needs.
In November 2023, WeTravel surveyed 600 global travel businesses, from six key markets to pull together key travel industry trends in its second-annual What’s Ahead For Travel Bookings and Payments Report.
The report digs into the responses from these travel businesses to uncover the year’s travel industry trends. While the findings span many aspects of travel bookings, collecting this year’s data with our 2023 comparative survey data, we’ve discovered one connecting assertion. While we, in the travel industry, know that 2023 was a pivotal year for emerging travel industry trends–and shifting consumer preferences–after the world stood still for two years, what the data is showing is that 2024 travel is emerging as its own “pivotal year”, a byproduct of the post-pandemic travel era (the year of “revenge travel” that followed the pandemic).
We’ve taken the findings and created an easy-to-digest list, just below.
Now, we know you’re wondering: What are the future trends for the travel industry?
While the booking lead time significantly shortened after the pandemic, as travelers were, mainly, weary of cancellations and airlines often offered seat sales for low-capacity flights soon to depart; this year’s travelers are adopting a more spontaneous approach to planning their trips than years prior, if you can believe it.
The booking lead time has shortened in 2024, with more than 60% of bookings made within one to three months before departure – half of those bookings (about 33%) being made less than 30 days before departure. The 30-day booking lead time is new behavior from travelers, who, according to WeTravel’s 2023 report, rarely booked less than one month before departure in 2023 and before the pandemic.
With shortening booking lead times comes the expectation that the entire trip has to be paid at the time of booking, as most businesses require full payment 30 days prior to departure. However, even for bookings more than 30 days prior to departure, WeTravel’s survey found that the most-common payment option is now full payment at booking, signaling a desire for immediate confirmation and a departure from the use of installment payments, which have decreased by 20% from 2023.
For many reasons, a shortened booking lead time can cause operational and logistical issues for an operator – who not only has to manage supply and supplier/destination management company relationships, but also manage trip capacity and revenue. However, receiving full-payment at booking can support a business with revenue management, with guaranteed, non-refundable according to terms and conditions payments.
Given the shorter booking lead times, travel businesses should adopt more agile marketing strategies to capture the attention of last-minute planners. Additionally, provide flexible payment options to cater to the increasing trend of travelers making the total payment at booking. Offering secure and convenient installment plans may also attract a broader audience.
Digital payment methods are gaining prominence, reshaping the payment landscape for travel businesses. When we write “digital payments” what do we mean? We mean any non-traditional payment form that can be transacted through a digital outlet like a phone or a computer. In North America, you may be familiar with local payment methods like Apple Pay and PayPal; in Europe, you may better know iDEAL and SEPA.
According to WeTravel’s survey, the adoption of Apple Pay as a payment method for tours has surged, with over 12% of businesses now acknowledging its use by travelers, compared to none in 2023. The use of other local and online payment methods, including PayPal and iDEAL, has risen to constitute 27% of all payments collected by the surveyed travel businesses.
While the percentages may not dominate the payment space, the prediction is that the expectation for local payment methods from travelers will only continue. Looking ahead, 24% of businesses expect a growing preference for online payment methods like Apple Pay, while 26% anticipate an increased demand for solutions that allow travelers to pay using their preferred local payment methods.
This year, to get ahead of the curve, invest in infrastructure to support digital wallets like Apple Pay and consider expanding to other popular methods. Providing digital payment options to your travelers can enhance the overall customer experience and attract a larger, global traveler base. Recognize the surge in travelers using local and online payment methods; partnering with regional payment gateways can optimize the payment process and build trust among diverse customer bases.
After the pandemic, according to WeTravel’s first trends report in 2023, travel businesses were forked: some decided to lower their costs to attract more travelers, while others increased prices to recoup lost revenue during the pandemic and capitalize on the “revenge travel” mentality.
However, the global landscape has changed and more conversations are being had on inflation rising, cost of living, in turn, rising and salary increases deflating, retail industries seeing revenue decline. Well, most would assume these global conversations are impacting travel bookings, it appears, in fact, to be the opposite assertion.
The cost of travel experiences is on the rise. A significant 27% of travel businesses have increased their tour prices by 10-25% for 2024 departures, while 22% have implemented even higher price increases exceeding 25% compared to 2023. In terms of traveler spending, 33% report an increase of 10-25%, indicating a willingness among travelers to invest more in their trips.
While the price increase of travel is noted industry-wide–from retreat leader responses to tour operator responses to destination management company responses–there are ways for your business to increase prices, while continuing to attract bookings. Clearly communicate the value of enhanced experiences to justify price increases. Highlight the unique aspects of the tour or additional services provided to create a perceived value that justifies the higher costs. Additionally, tailor marketing strategies based on traveler segments; for example, customize approaches for those willing to spend more on destinations, unique experiences, or personalized services.
The power of the phone. The average traveler is not only searching for their next adventure through the device in their hand, but they’re also booking their trips through their mobile. For travel businesses, mobile optimization in the travel booking process is one way to increase your bookings – it’s similar to the up-sell items you may find in the check-out line at your favorite store. The more options you have for a traveler to book, while the trip is on their mind, the better chance you’ll have at converting the booking.
Therefore, in order for a traveler to complete the booking process through mobile technology, the check-out process has to be mobilized for this experience. As such, traditional payment methods such as cash and mailed checks are rapidly declining, plummeting by 70% since 2023. However, according to WeTravel’s survey, a significant amount of travel businesses don’t use a booking platform to manage their business – both at the front-end for user experience and the back-end of business management.
To successfully capture the online booker, travel businesses should optimize online booking processes to cater to the trend of total payment at booking. Streamlined and user-friendly interfaces can enhance the customer experience, and you can encourage the adoption of digital payment methods by offering incentives or discounts to customers who choose these modern payment options.
Existing itineraries rarely stay as designed; it has been like this since the pandemic. Instead, travelers are seeking to customize and add-on specific experiences to existing itineraries in 2024. After the pandemic, the rise of “customizing” tours to stay in a small group (often friends and family) and remove any public transportation or accommodation was quite common. Now, the customization is less about being in a bubble and more about travelers wanting to see the world their way.
This year, 56% of businesses surveyed are offering personalized itineraries reporting an increase in travelers requesting customization. This extends beyond itineraries, as 36% of respondents note that travelers are spending more on add-ons to tailor their trips to their preferences. These add-ons include private transport (28%), accommodation upgrades (24%), and additional days (28%).
In order to manage the operations and logistics of customizing itineraries, invest in technology that allows easy customization of itineraries and add-ons. Providing online tools or dedicated personnel for customization can set your business apart. Facilitate collaborative trip planning by involving customers in the itinerary creation process. Platforms that allow real-time adjustments based on traveler preferences can enhance satisfaction.
The good news for all, another travel industry trend isn’t much of a trend anymore: Travelers are seeking more than just sightseeing; they crave immersive and transformational experiences. When travel is focused on local experiences, every stakeholder benefits. While the idea of local travel has only increased in the past decade, with many operators working alongside destination management companies to support local communities through travel, now more travelers than ever expect local experiences as part of their adventures.
Half of the respondents have introduced new trips that offer immersive, experiential activities for 2024. Furthermore, 15% of businesses are placing a strong emphasis on local culture and community involvement, demonstrating a shift towards more meaningful and authentic travel experiences.
To appeal to travelers that are seeking immersive, local experiences, incorporate storytelling into marketing materials to showcase the immersive and transformational aspects of your travel experiences. Engaging content can create emotional connections with potential customers. Don’t stop at the marketing: Build partnerships with local communities to create authentic experiences, thereby adding value to your offerings and attracting travelers seeking deeper connections with the destinations.
We are what we eat, the saying goes. In travel, the same saying applies. More common than years before, travelers are seeking to understand the destinations they’re visiting through the local cuisine. Culinary experiences are gaining popularity, with 39% of businesses expanding their offerings to include immersive culinary-based experiences. Simultaneously, wellness activities represent 26% of the most popular add-ons, highlighting a growing interest in holistic and enriching travel experiences.
This year, forge partnerships with local chefs or culinary experts to enhance the culinary experiences in your tours. Collaborations can elevate the authenticity and uniqueness of your offerings. Develop wellness-focused packages or add-ons to cater to the growing demand for holistic travel experiences. Highlighting the health benefits of these offerings can attract wellness-conscious travelers.
This is a trend that is not only good for business, but it’s good for economic development and forging new connections. More than half (51%) of businesses are responding to the trend of travelers seeking unique experiences by expanding their trip offerings to include lesser-known or off-the-beaten-track destinations. Additionally, 18% have observed a rise in travelers willing to spend more to reach exclusive or far-flung destinations.
Continuously diversify your destination portfolio to include both popular and emerging destinations. This flexibility allows you to cater to a broad spectrum of traveler preferences. Consider curating exclusive experiences in lesser-known destinations to attract travelers seeking a more intimate and exclusive travel experience.
Africa is emerging as a significant travel destination, accounting for 22% of tour operators' current bookings in 2024, up from less than 10% in 2023. Destination Management Companies report a substantial increase in bookings through their partners, with 39% stating that Africa is now one of their most popular regions. This trend suggests a growing interest among travelers in exploring the diverse landscapes and cultures of the African continent.
Moreover, Africa finds that the majority of bookings don’t follow the pattern we’ve seen above (shorter booking lead time, full payment at booking), instead most operators state that bookings are more than six months prior to departure and are heavily reliant on installment payments. Why? The main factor being the higher-ticket price of safaris in Africa.
How can your travel business capitalize on this travel industry trend? Leverage marketing efforts to highlight the unique offerings of African destinations. Emphasize cultural richness, diverse landscapes, and exclusive experiences to attract travelers seeking novel adventures. Collaborate with local Destination Management Companies (DMCs) to gain insights into the unique offerings of African regions and establish partnerships that enhance the overall travel experience.
A substantial 62% of businesses report that travelers are spending more on their trips in 2024, indicating a broader trend toward more luxurious and personalized travel experiences. This shift reflects a desire for elevated comfort, unique amenities, and exclusive services, underlining the importance for travel businesses to cater to these evolving expectations.
Stay ahead of the curve: Customize services to cater to the preferences of luxury travelers, such as exclusive access, personalized itineraries, and premium accommodations. Implement loyalty programs to reward repeat luxury travelers, fostering long-term relationships and encouraging them to choose your services for future trips.
In conclusion, staying attuned to these trends will empower travel businesses to meet the evolving demands of today's travelers and ensure a successful and prosperous 2024. Adaptation and innovation are key as the industry continues to transform.