Trends in consumer behavior over the past few years cannot be clearly defined.
In an uncertain world, companies across all industries, including travel, are trying to determine which actions post-pandemic are likely to be short-lived and which are likely to persist.
Euromonitor has identified six areas of global consumer trends for 2024 that have already captured consumer interest and are likely to continue to do so this year.
It’s no surprise that artificial intelligence is a top global consumer trend. Even before the end of the first quarter of 2023, travel companies like Expedia and Kayak announced the first ChatGPT plugins. And as technology and tools mature, the industry is poised for further development.
“New tools are evolving into co-creators for consumers, influencing consumer decisions and reshaping expectations for brand engagement. It will become increasingly consolidated,” Euromonitor said. Businesses should leverage generative AI to enhance personalization and improve the overall customer experience. ”
Furthermore, research by a market intelligence firm shows that 42% of consumers would be resistant to voice assistants providing personalized product information, while using bots to solve complex customer service issues. It turns out that only 17% of people are reluctant to do so.
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Travel companies are taking note of the growing AI trend, and use cases are emerging in every sector of the industry, from business travel and hotels to tours and activities and vacation rentals.
Consumers are also becoming accustomed to this technology. A report released late last year by management consultancy Oliver Wyman found that one in three leisure travelers used an AI-powered generation tool. The study concludes that adoption rates of relatively new technology are high and satisfaction levels are high.
Euromonitor concludes that consumers will expect travel companies to keep up with the latest in technology.
The generative AI trend has many unintended consequences worth noting, including whether travel companies develop in-house teams or acquire existing players. We can also expect travel companies to create new roles within their organizations for agile engineers and AI leaders.
Cash considerations
Factors such as global conflict, inflation, and the cost of living crisis are all contributing to the uncertainty of 2023, causing many consumers to consider their finances. Last year, while pent-up travel demand showed no signs of slowing down, Euromonitor highlighted ‘value hacking’ as one of the global consumer trends of 2024.
The report said 44% of consumers plan to save more money in 2023, adding that they are “adopting increasingly smart strategies to get the best deals.” Ta.
This trend is already spilling over into the travel industry, with buy now, pay later (BNPL) and buy now, buy later initiatives being added to online travel agency payment options.
Klarna is the latest company to announce plans to expand into the travel sector by partnering with Cathay Pacific Airways and CarTrawler for its BNPL service.
A further example cited by Euromonitor is Turkish Airlines, which offers free accommodation to passengers with a connection of more than 20 hours via Istanbul.
meaningful impact
The insight firm also lists “Greenwashed Out” as a trend to watch in 2024. This is a challenge for the travel industry, which is often singled out for its carbon footprint and unsustainable practices.
Euromonitor said in its report: “Consumers are striving to live more sustainably, but we question whether businesses and governments are making full use of the resources available to them to create meaningful impact.” “Consumers want organizations to step up and show evidence of their environmental commitment.”
In December, Britain’s advertising watchdog, the Advertising Standards Authority, banned ads from Air France, Lufthansa and Etihad Airways for misleading consumers about their environmental impact.
Consumers may be quick to point out greenwashing, but recent Phocuswright research shows that despite good intentions, sustainable travel methods are unclear and sustainable considerations are not included in purchasing decisions. It became clear that it was rarely included.
Further regulation will continue to impact corporate initiatives and goals. At European level, environmental impact reporting requirements for public companies have been extended to companies with 500 employees. The European Union’s Corporate Sustainability Reporting Directive means companies must monitor and report the impact of their travel. About the environment and people.
moment of joy
The final trend to note in Euromonitor’s report is ‘pleasant distractions’. This trend reflects consumers’ desire to escape daily stress and the prevailing global uncertainty.
According to Euromonitor, 29% of consumers would be happy to have their mood tracked so that brands can tailor experiences to people’s moods.
The exciting nature of travel allows this industry to do this perhaps more easily than others. Many travel companies launch marketing campaigns at the turn of the year to encourage consumers to book sunny holidays. However, infrequent travel remains a challenge, forcing travel companies to consider increasing interaction with consumers and collaborating with like-minded brands.
“Pleasant pastimes are moments that evoke positive emotions. Think exciting, heartwarming, or playful,” says Euromonitor. These interactions can help evoke joy and relieve tension, allowing consumers to forget about their worries, even if it’s just for a few minutes. ”
The remaining trends identified by the insight firm, “progressive polarization” and “wellness pragmatism,” will continue to permeate travel.
Progressive Polarized talks about the values consumers align with themselves and ultimately influence their purchasing decisions. According to Euromonitor, “people are quick to criticize or avoid companies that promote marketing campaigns around controversial themes,” so travel brands that can tap into customer values are likely to increase loyalty. will gain.
Finally, the wellness trend has also played out in the travel sector in recent years with digital detox-type vacations offered by many hotels and other travel providers. Additionally, a number of wellness-focused startups have recently sprung up, including CalmGetaways and Boddy, and startups like Vacayou are also expanding their services. Accommodation startups such as Raus, which offer a break from the daily grind, are also gaining momentum.
