The travel business took a severe beating during the pandemic but wanderlust travelers are back with a vengeance as demand for transportation and accommodations roars back to pre-pandemic levels. Even with stretched and limited resources, travel providers are seeing surging demand as customers continue to demand experiences and leisure. A recent survey from Skyscanner suggested that 39% of US travelers intend to spend more on travel in 2024. TTS spotlights some travel categories that are poised for a positive 2024.
Transportation
Airlines suffered terribly during the COVID-19 pandemic as travel ground to an almost standstill. 2022 saw a strong resurgence in passenger air traffic and a recent report from Airport Councils International (ACI) estimates that for 2023, the industry will reach 94.2% of 2019 passenger totals. Upticks in air travel are to continue into the new year and ACI forecasts a total of 9.4 billion passengers, finally surpassing 2019 passenger air traffic. 2024 is considered to be a milestone year for airlines as they look to capitalize on the increasing demand for transportation by using technology to optimize fares and schedules. The report from ACI also indicates a strong finish to the year and that The Latin America – Caribbean region will be the first to achieve post pandemic traffic levels by 2023 at 102.9% of 2019 passenger volume.
Euromonitor suggested that rail travel will be the fastest growing category in 2024, clocking in at almost 36% above the previous year’s passenger traffic. A shift towards climate friendly travel may be driving the surge in railway business.
Accommodations
Travel demand for accommodations is also marching towards pre-pandemic levels as hotel & resort operators pull out all the stops when it comes to marketing their properties. The category as a whole is expecting occupancy to increase 2.5% in 2024. Higher end luxury properties and destinations may see bigger increases as surging demand returns to the elite category. Africa and South America are regional standouts with expected explosive growth over the next decade.
Group sales & corporate events are also making a strong comeback with China and the US as preferred destinations for multi-day events and meetings. Business related travel is expected to grow 14% in 2024 to $190 billion, exceeding pre-pandemic levels . Sustainable travel and wellness experiences are hot trends in 2024 in the business category.
Cruising
Cruise operators are also expecting big gains in 2024, finally recovering beyond pre-pandemic levels. In 2019, 29.7 million passengers booked ocean voyages whereas 36 million bookings are expected in 2024, representing a 120% increase. Consistent and steady growth in passenger traffic is expected through at least 2027. Revenue for cruise lines is also expected to explode to just over $30 billion, exceeding pre pandemic revenue totals. The US market commands the top spot in cruising revenue with Germany and China a distant second and third.
Specific traveler demographics demand value when spending travel dollars and cruising offers include features as well as desirable add-on experiences making it the perfect choice for the cost conscious consumer. Combined with luxury and upper tier cruise experiences, the market is forecasted to grow 9.2% through 2027. In 2024, cruising capacity will top 729,000 with The Caribbean, Bahamas and Bermuda the top cruising destination ports.
Experiences
Consumer tastes in travel are constantly evolving but 2024 will see some dominate trends that travelers are leaning towards:
- Wellness travel and experiences: Travelers continue to research and book vacations and experiences that center around personal wellness and wellbeing. This category is currently valued at just over $814 billion and is expected to grow just over 12% annually through 2030. Travel providers could tap further markets by offering packages that cater to this growing niche.
- 87% of travelers in a recent survey would prefer sustainable travel options and 39% of those actually do research and book environmentally friendly travel. This is a growing trend that should see increases in market value through 2024 as climate woes continue to dominate the media landscape.
- Potential travelers still value the experience and are constantly looking for ways to make their journey unique and memorable. This gives travel providers many opportunities to craft experiences that build brand loyalty and accelerate word of mouth marketing.
The Travel Business Continues to Ramp Up
While the Covid-19 Pandemic affected the travel industry, individual travelers have not lost their desire to explore and enjoy new experiences. As the industry marches back to pre-pandemic levels, travel providers are changing the way they do business to operate profitably and efficiently in the challenging post-pandemic business landscape. Experts would not call this a ‘business-as-usual’ environment but the travel industry should see milestone achievements in 2024 as demand and usage levels finally surpass those in 2019.
Sources:
(https://www.sojern.com/blog/charting-the-course-whats-trending-for-travelers-in-2024)
(https://photoaid.com/blog/cruise-industry-statistics/)
(https://www.siteminder.com/r/hotel-industry-statistics/#hotel-statistics-that-matter-in-)
(https://www.hospitalitynet.org/opinion/4119148.html)
(https://www.euromonitor.com/article/top-trends-for-travel-in-2024)
(https://www.skyscanner.com/tips-and-inspiration/travel-trends)
(https://aci.aero/2023/09/27/latest-air-travel-outlook-reveals-2024-to-be-a-milestone-for-global-passenger-traffic/)