Since the onset of COVID-19, the travel and hospitality industry has been forced to adapt to rapidly changing safety guidelines and consumer behaviors. While travel rates are returning to pre-pandemic levels, our survey shows that this return looks quite different across countries and age groups, highlighting a crucial need for personalized offerings from travel brands.
Despite travel and hospitality companies working overtime amidst economic uncertainty, our survey results reveal that most travelers still have frustrations with trip planning, the booking process, and more. Industry leaders can use the findings in this report to understand the most important travel trends across generations—and how to meet changing consumer needs.
Millennials are the travel generation for 2022. They’re the most engaged in travel and have the disposable income to carry out their vacation plans. Millennials are most likely to be frequent travelers, with 20% reporting 4+ trips in the upcoming year, compared to just 13-14% in other generational cohorts. Their travel itineraries often include going to a destination they’ve always wanted to visit, learning about a new culture, and attending specific events.
Millennials are more likely to travel abroad and to visit friends and family due to recent world events like COVID-19, and their previous travel plans were the most heavily impacted by the pandemic. 64% of Millennials had to cancel a trip due to COVID-19, versus only 52% of Gen Z and 49% of Gen X. Health and safety are still a concern for this generation, with more Millennial respondents saying safe and secure destinations are their #1 priority for travel.
Travel is a large part of many Millennials’ identity. 43% of Millennial respondents strongly agree that travel is an integral part of who they are, versus only 31% of Gen Z and 34% of Gen X. Compared to other generations, Millennials are more open to using new travel technology. Almost 60% of Millennials reported being very or somewhat interested in using AR/VR to experience travel destinations before going, and 44% said the same about using cryptocurrency to pay for trips, compared to less than 45% of Gen X and less than 53% of Gen Z who said the same for either. Millennials are also slightly more likely than Gen Z and Gen X to say that sustainability plays a vital role in where they travel, with two-thirds agreeing, versus 64% of Gen Z and 54% of Gen X.
Gen X relishes tried-and-true travel experiences, finding a good deal, and avoiding travel with COVID restrictions. Their #1 priority for travel is value for money over safe and secure destinations or once-in-a-lifetime experiences. Gen X is also more likely to travel with family members like children, which makes travel more costly if they’re footing the bill. They’re less likely to travel to experience a new culture and more motivated to return to a destination they’ve been to before. Almost a quarter of Gen X wants to visit a familiar destination, while only 19% of Millennials and 16% of Gen Z said the same. Gen X also takes the longest vacations, with 46% saying their next trip was 7+ days, compared to only 41% of Millennials and 33% of Gen Z.
COVID-19 safety measures present more of a hassle for Gen X. About 35% of Gen X respondents would not travel somewhere where they’d have to take a COVID test or quarantine, whereas younger age groups are more agreeable to these safety measures. This generation is also planning to stay closer to home and is more likely to travel domestically, with 39% of Gen X respondents traveling within their own country this year, compared to only 29% of Millennials and 24% of Gen Z. Overall, Gen X is most concerned with relaxing and getting away rather than seeking new experiences, which also carries over to planning. They’re the least likely to be open to paying with cryptocurrency and using AR/VR to experience a travel destination before they go.
In a digital-first world, all generations prefer booking travel online, but it doesn’t come without some hesitation. Every aspect of a trip can be planned digitally, and most travelers prefer it that way. From finding destination inspiration to researching restaurants and booking hotels and flights, most travelers would rather use a search engine than speak to a professional. Out of all digital travel planning channels, search engines like Google and Yahoo are the most popular for research and booking. Roughly 62% of travelers use a search engine and/or talk to friends and family to plan a trip.
YouTube is a growing online platform for travel research (34%), along with travel review sites (47%) and travel apps (37%). Gen Z and Millennials are much more likely than Gen X to use social media platforms like YouTube and Instagram for travel research, excluding Facebook, which is most popular with Millennials. More than a quarter (28%) of Gen Z respondents also reported using TikTok as a travel research platform. However, Gen Z is more likely to speak to a person than go online compared to other generational cohorts. When it comes to activities, lodging, and flights, 30% of Gen Z will talk to a professional, compared to just 24% of Millennials and roughly 20% of Gen X.
Most travelers (44%) say their biggest frustration with online booking is trusting they get what they pay for. After two years of travel chaos and cancellations due to COVID-19, many travelers may still be scarred by previous unpleasant customer service or online experiences. Almost a quarter of respondents said they had difficulty booking travel or accommodations online as well, and 13% cited managing their bookings with multiple companies as the biggest issue.
How can travel companies put customers at ease? When it comes to the growing concern over cost for most travelers, freebies are the best way to entice travelers. Despite most people preferring to stay in an upscale hotel (37%), most people are still cost-conscious and looking for free add-ons. Out of 12 hotel perks to choose from, respondents picked free Wi-Fi, complimentary breakfast, and all-inclusive options as the offers that would make them most likely to stay at a specific hotel.
Respondents were more concerned about COVID-19 safety on flights. Half of respondents said health checks for employees would make them more likely to choose a specific airline, but 54% still said they’d be most motivated to choose an airline with in-flight Wi-Fi, and 46% were swayed by in-flight entertainment.
Modern travel technology (digital check-in, personalized app offers, etc.) is popular. More than 30% of people said they’d want to use their phone to check in to their hotel and get personalized offers through an app. Almost a quarter of respondents were interested in check-in kiosks and using their phone as a room key. Travelers were also somewhat open to futuristic booking options, like using crypto and AR/VR, with Millennials being the most receptive. Overall, every age cohort seeks seamless digital booking options that will help rebuild their trust in the travel and hospitality industry.
Gen Z is disproportionately more likely to use YouTube, Instagram, and especially TikTok to research and plan travel. Millennials are embracing Facebook for travel ideas more than the other age groups. Gen X sticks to search engines and travel review websites.
Most Gen Xers are not interested in using cryptocurrency to pay for travel or taking advantage of AR/VR travel previews. Out of all the generations, Millennials are the most enthusiastic about subscription-based travel promotions.
Country cultures impact travel destinations, trip length, and vacation motivations. Overall, travelers from the United Arab Emirates (UAE) have the most trips planned for 2022. UAE respondents’ trips are more frequent, further, and longer than those planned by travelers in the U.S. and the U.K. On average, UAE respondents have 2.6 trips on the books this year, versus U.S. and U.K. respondents reporting 2.2 and 2.3 trips. UAE residents, especially Millennials, travel more frequently than the average traveler from another country. In this case, UAE residents were also most impacted by COVID-19, with 72% forced to cancel a trip, versus just 54% and 42% of U.S. and U.K. residents.
UAE respondents are also traveling further. In the U.K. and the U.S., people most frequently travel domestically or within their continent, but the same is not true for the UAE. Almost three-quarters of UAE respondents’ travel plans are on different continents, versus only half of U.S. respondents’ trips and 37% of U.K. respondents’ trips. Over half of UAE travelers also said their trips were 7+ days, compared to only 44% of U.K. and 27% of U.S. respondents—perhaps due to views and policies surrounding vacation days in the respective countries. The national average for PTO in the United States is 7.6 days, whereas employees in the UAE are entitled to at least 30 days off per year, and U.K. employees are entitled to 5.6 weeks of PTO per year.
Culture also impacts reasons and motivations for travel. UAE respondents are much less likely than U.S. or U.K. respondents to say they are traveling because they “need to get away,” as they are more likely to travel to “visit friends and family” or travel for “work or for my career.” Almost 90% of the UAE population are expats, while only 14% of U.S. and U.K. residents are foreign-born, which could explain this cultural difference in answers for the three countries.
Motivations for travel were incredibly diverse across all locations. On average, respondents selected three or more different motivations to get away. Specific leisure events, new cultures, bucket list travel destinations, friends and family, the need to get away, and relaxation and well-being were all top motivations to travel.
In the aftershock of the COVID-19 pandemic, travelers are ready for leisure. The initial shock has worn off in the countries surveyed, but overall travel patterns are still abnormal. While leisure travel is back in close-to-full swing, business travel is less prevalent. With the popularity of remote work and certain travel restrictions in place, business travel has yet to recover, with an average of only 1.1 business trips planned for U.S. and U.K. respondents in the next year and 2 for UAE respondents.
Leisure travel is back, but travelers are more budget-conscious. Almost 60% of respondents said they are more likely to find affordable or budget-friendly accommodations or have a “staycation” post-COVID. More than half also agreed they are more likely to travel within their own country or even skip or delay traveling to save money. Over half of respondents said cost is their biggest trip-planning concern, yet just 19% said health concerns related to the pandemic. U.S. respondents were concerned about cost the most (66%), and UAE respondents the least (39%), which could also be due to record inflation in the U.S. at the time of the survey. Across age groups, Millennials are now more likely to travel abroad and to fly to visit family/friends, while Gen X travelers are less likely to pursue these two options due to COVID impacts.
The majority of travelers had to cancel a trip due to COVID-19. More than half of the study’s travelers canceled or delayed a trip due to COVID impacts, mostly to avoid exposure. However, Gen X has a higher frequency of citing travel or business restrictions in place in the destination as their reason for cancellation. Culture played a significant role in travel cancellations and even vaccination rates. Almost three-quarters of UAE respondents canceled a trip due to COVID-19, while only 42% of U.S. and 54% of U.K. respondents said the same. While 85% of respondents are vaccinated, just 74% of U.S. respondents are, versus 95% of UAE respondents.
Travelers of different generations are also divided on willingness to take protective measures against COVID-19 while traveling this year. Overall, 31% of travelers would go to a destination with restrictions, and 43% say it depends on the situation, while 26% would not go at all. With Gen X specifically, only 21% would go to a destination with restrictions, 43% said it depends, and 35% would not. The younger the traveler, the more willing they are to set out to a destination that may have quarantine or protective measures in place. But when it comes to the number of days willing to quarantine at a travel destination, most people aren’t willing to cooperate after 3–4 days.
COVID-19 also impacted views on transportation. Most travelers are comfortable traveling by car and by plane (85% and 64%). Still, only 20% of people feel comfortable traveling by ship, potentially because of highly-publicized disease outbreaks on cruise ships in the early days of the pandemic. Overall, cost is the biggest concern for travelers right now, much more so than health and safety—which is a marked departure from the peak of COVID-19 outbreaks two years ago.
Survey findings show that travelers are eager to vacation again this year, but they still harbor some lingering frustrations from travel experiences and interactions during the height of the pandemic. How can travel companies regain digital trust and cater to a diverse pool of consumers? These are three actions travel brands can take now to improve the booking process and emphasize personalization:
Travel brands can compete with third-party websites or travel marketplaces by offering trustworthy booking options for transportation, lodging, dining, and activities all in one place. Incorporating AR/VR online virtual tours can also help customers easily see what hotel rooms or travel experiences will look like, avoiding unnecessary confusion or discontent down the line. Providing easy-to-digest, detailed, transparent information about every offering, with communication efforts targeted to consumers, will help brands stand out as reliable and regain loyalty with all demographics.
Jagdish Ghanshani
Managing Partner, Global Client Partner, Travel & Hospitality, North America
jagdish.ghanshani@publicissapient.com
Nick Shay
Group Vice President, Travel & Hospitality, International Markets
nick.shay@publicissapient.com
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