The future of travel looks a lot like the road less traveled.
5 new opportunities for travel and tourism brands to keep their eyes on.
There’s no question the travel industry has been one of the hardest hit by COVID-19. It’s also one where the effects may be the longest lasting. Richard Dow, CEO of the US Travel Association, has acknowledged that COVID-19 has had an effect 6–7 times greater than the 9/11 attacks. Even as states open up, people’s anxiety with new surroundings heightens. A recent Harris Poll showed that 51% of Americans have called off or put off their travel plans because of coronavirus concerns, and other sources have seen consistent increases in the delay of vacation purchases in nearly every market around the globe over the past few months.
That said, travel is also one of America’s favorite leisure activities. In fact, last year, 1.9 billion leisure trips were taken in the U.S. (that’s equivalent to every American traveling 5 times a year). It’s critical to our mental health. It’s essential in building a sense of connection to the world around us. It’s something people want to get back to doing. In fact, a recent study by Global Web Index saw that Americans are prioritizing booking a vacation above all other purchases once it’s safe to do so.
Vacations just might look a little different.
New behaviors stemming from the past few months of turmoil also open up new opportunities for feeding people’s need for travel, and in turn, new opportunities to reignite the travel and tourism industry.
Here’s 5 to consider.
Locals are the new visitors
Typically, lodging brands (whether hotels or vacation rentals) rely on “out-of-towners” for their business, but they could actually serve as a refuge for locals in the near future. Booking a staycation at a local hotel may be a comforting “travel” option, as locals are familiar with the location, and they know the health situation and structure, yet it also offers a change of scenery and a feeling of “getting away from it all.” In fact, mobile searches for “‘things to do/activities’ + ‘near me’” have seen a 6-time increase recently, according to Google.
RVs as the new AirBNB
People may not be ready to fly again, but hitting the open road has a nice ring to it. A recent travel study showed that half of Americans will feel comfortable taking a vacation by car 30 days following their hometown’s reopening. And just this week, the RV Association saw sales spike up to 170% in some areas. While RVs have typically appealed to Boomers for cross-country road trips, younger generations could be a fresh new market for a different kind of RV occasion. Even before COVID-19, “van life” was a growing trend among niche Millennial groups. Imagine an AirBNB or even Zipcar model for RVs that enables groups to grab their trusted family or friends, create a safely “quarantined” mobile vacation, and explore (cue Outdoorsy). It’s a new category many travelers could get on board with, literally.
The unknown attraction over the iconic.
We might not be quite ready for the lines at Navy Pier or gathering shoulder to shoulder to watch the Rockefeller Tree Lighting, but we still want to experience places and things that have stories and lore. The plethora of small, more obscure landmarks that offer stories of their own could find their moment. Take a ride on the “Bucking Pup” in Rockaway Beach, Oregon — the home of the original corndog, or trade-in the view of your dresser for the World’s Largest Chest of Drawers in North Carolina. Even swap a trip to England for a trip through Alliance, Nebraska to explore Carhenge, a replica of Stonehenge that incorporates sculptures made from cars and car parts. Now is the time for people to spread their wings and explore the unexpected.
The rise of small.
In much the same way as iconic landmarks, big cities and tourist destinations may have the hardest time rebounding quickly. We’d already seen the pull toward smaller cities like Charleston, Savannah, and the like. But now, these won’t be the exceptions — they’ll be the rule. Compare the destinations on this year’s “Top Staycation Destinations” to those two years ago. Suburban and small now outrank urban cultural capitals. Perhaps cities like Omaha, Columbus, and Boise will have their moment to shine — creating an entirely new hotbed of “must-visit” destinations that are rich with story, but limited in people.
IRL isn’t the only way to travel anymore.
For years, travel brands have transported people to destinations through communications. But virtual tourism isn’t just for advertising anymore (cue Zoom backgrounds). For the one-third of people not planning on taking a physical trip in the near future, methods to “feel” like they’re traveling have become strong replacements — some even worth paying for, perhaps.
Destinations have offered livestreams of local attractions, including museum tours, concerts, and more. Publishers have been finding ways to help people scratch the travel itch. Rough Guides even published a guide into some of Xbox’s most amazing worlds, detailing the things gamers should see and do as if they were there in person.
Now imagine that approach getting flipped on its head. Destinations could offer “pay to unlock” gaming experiences that take visitors into new neighborhoods, cities, and countries. Travelers would pay to experience the livestreams of museum tours or concerts rather than attending in real life. Virtual experiences have proven their ability to deliver the thrill without the trip — and they could become viable alternatives to physically leaving home in the foreseeable future.
No one can know for certain if these will be the trends in travel. That said, traveler sentiments suggest they’re behaviors worth watching. And, as the desire to “get out” continues to grow and our ability to do so meets it — they just may be the near-term opportunities travel brands and destinations need to kick start their engines again.
