Now that restrictions have lifted and things have pretty much stabilised, people are a lot more confident in booking trips in advance. This means that many already have holidays lined up for next year.
Since March 2022, the number of bookings for international travel from Europe, the Middle East and Africa have exceeded pre-pandemic levels. Corporate travel is making a comeback, and the rise of remote working has made travel even more possible for those now able to work from anywhere. An increasing number of people are adopting the digital nomad role by moving between countries and completing short, frequent trips abroad.
More trips—and more spending
The “Skyscanner Horizons: Outlook in 2023” survey provides an insight into people’s travel plans next year. It gathered responses from 11,000 travellers across 10 countries, exploring traveller’s attitudes to spending, destination type and purchase experience.
Skyscanner asked its respondents, “Are you planning to spend more or less money on travel abroad in 2023 compared to 2022?”, and 82% said they were planning to spend more or the same amount.
Just under half (41%) of respondents from around the world said that they were planning to spend more in the coming year, whilst 36% said they would spend about the same. 13% said they didn’t know, whilst those intending to spend less in 2023 made up the smallest group (10%).
In the US, 43% of Americans are planning to spend more on travel abroad in 2023 than they did in 2022, whilst the same percentage intend on spending the same amount as the previous year. (5% hope to spend less, while the remaining 9% said they weren’t sure.)
A strong US dollar continues to make international travel an attractive venture. Americans can get a lot more for their money in the UK and across Europe than in previous years.
In the UK, the largest portion of people are intending to spend the same on travel next year (39%) followed shortly by those planning to spend more (31%). Out of all countries surveyed, the UK had the highest “I don’t know” responses at 23%.
The impact of technology on travel
Another key finding of the Skyscanner survey was the rising use of mobile devices when arranging trips: 51% of respondents used a mobile to compare flight or hotel options; 49% to conduct destination research, and 43% to book flights or hotels.
Travel influencers are growing in popularity, and an increasing number of people are turning to social media platforms for travel inspiration. Instagram was the most common platform used for this purpose at 40%, followed by Facebook at 33%, and the rising star of recent years, TikTok, at 25%.
With this, the travel industry is gearing up for increased demand, and expecting to make a strong financial comeback.
Delta Airline expects revenue gains of between 15% and 20% in 2023, with adjusted earnings to nearly double to as much as $6 per share due to increased travel demand.
It seems that inflation and the rising cost of living around the world is not stopping travellers in their tracks. With international trips a priority for many in 2023, we can expect to see increased demand for short-stay accommodation, and a very bright year for the tourism industry.
Contact us today to discuss property investment opportunities.
