Consumers' cost and climate worries to become barriers to travel spend – report
Sarah DennisConsumers’ pursuit of value, concerns about climate change and desire for more sustainable product options are poised to have an increasingly significant impact on travel spending, according to the latest WTM Global Travel Report.
The report, detailed at WTM London on Tuesday (5 November), charted an increase in “value hunting” for global travel, highlighting data from Tourism Economics which shows more than 80% of tourism experts agree the cost of travel will become an increasingly challenging issue for the industry.
Presenting the report, Dave Goodger, Tourism Economics’ managing director EMEA, said: “People want to get that value for money even if they are prioritising travel.”
Goodger said nearly two-thirds (65%) of consumers agreed travel has a negative impact on the environment, adding that while there were signs of "tentative behavioural changes", there wasn’t yet a "wholesale" transition in sight.
However, he insisted people do want sustainable travel options. "This is more notable when we look at younger travellers," he said. "Sustainable products are becoming non-negotiable for this demographic”.
Goodger revealed nearly a third (29%) of consumers had consciously avoided certain destinations in the past year owing to concerns about extreme weather, and warned this would become more prevalent.
Despite this, he characterised 2024 as a “new benchmark” for travel, eclipsing 2019’s record. He said: “2022 was a year of rebound, 2023 a year of recovery, but this year, we’re seeing the growth phase.”
Speaking as part of a panel discussion exploring the report’s findings in more detail, Royal Caribbean vice-president EMEA, Gerard Nolan, said the average age of the line’s guests has reduced from 49 to 42.
“I think the value opportunity is another lens," he told delegates. "When you consider what we have in our offering, I think that’s another piece of value that is compelling.
Goodger highlighted “more growth” for cruise, and forecasted a 25% increase in capacity compared with pre-pandemic levels going into 2026.
Cultural experiences remain another priority for travellers, Goodger said, with 92% of consumers stating an increased interest in sampling local food and drink compered with pre-pandemic levels.
Another panellist, Julie Fitzgerald, G Adventures’ vice-president of buying and supply chain, brought up the 29% growth in interest for adventure tourism.
She said travellers wanted to "break bread with local people and give back through travel to local communities”. “People want to be surprised when they travel, they want things they don’t expect," Fitzgerald added.
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