After falling by 75 percent in 2020, travel is on its way to a full recovery by the end of 2024. In fact, domestic travel is expected to grow 3 percent annually and reach 19 billion lodging nights per year by 2030.
There’s clearly a strong demand to travel and a prime opportunity for the industry to capitalise on this.
However, against the backdrop of a fast-evolving digital landscape and changes in consumer appetite, staying on-top of the market is key.
In this article, we analyse and discuss the challenges facing the travel industry.
Priorities and sustainability
While sustainability is front of mind for many consumers, travellers have in fact struggled to prioritise it in 2024 despite good intentions.
Sustainable travel has been an increasingly discussed topic within the industry, with consumers expected to think more mindfully about the way they travel. However, research from Booking.com shows that while 82% say sustainable travel is important to them, almost half (42%) admit it isn’t a primary consideration when booking trips.
With other factors such as the cost of living coming into play, some say their travel time is too precious to prioritise sustainability in their decisions. In fact, more than 30% say they feel fatigued by constant climate change messaging.
So, where does this leave brands in their PR strategies? Sustainability isn’t just a trend so this doesn’t mean it should be removed from communication plans altogether. However, instead, brands should still implement sustainable goals and policies, but focus on promoting elements that are most likely to appeal to consumers alongside this – such as their USPs, affordability, or luxury offerings.
Brand differentiation
With so many consumers looking to book a getaway, the travel industry has become an incredibly crowded space, meaning brands really need to consider what sets them apart from their competitors.
Early travel trend predictions for 2024 anticipated experiential travel, ‘set-jetting’, ‘cool-cationing’ and regenerative tourism to be the next big things in 2024.
Set-Jetting proved one of the most popular travel trends; after the first season of BBC series ‘The Traitors’ aired, there was a 32% increase in searches to the Scottish Highlands (source), while searches for Adelaide, South Australia, increased by 56% after ‘The Tourist’ aired (source).
However, while it is certainly important to pay attention to these trends, it is equally critical to consider whether they may potentially be short-lived and if they are in fact something your brand can get involved with authentically. If you haven’t already done so, now is the time to really nail down your USPs. Instead of trying to achieve mass appeal, consider what makes your brand stand out. To establish your niche, decide what your key selling points are and focus your travel PR strategy on that. Remember, it’s better to do one thing well than try to do it all.
To pique the interest of consumers and make a lasting impact, consider implementing a creative communications strategy that uses storytelling to highlight your USPs, whether that be highlighting the unusual destinations you offer, sharing behind-the-scenes content about exclusive experiences that align with the latest trends, or sharing tips and tricks to help consumers get the best deals for their next break.
Cybersecurity
Cybersecurity is widely recognised as a growing concern across the travel industry. We’re at a pivotal time where the adoption of advanced technologies such as AI can help boost the travel and tourism sector, but equally open the industry up to great risks, including cyberattacks.
We only have to look at the recent IT outage as an example of what can happen, when things go wrong.
The industry has a responsibility to not only keep their operations running as smoothly as possible, but to protect their customers’ data and personal information.
By implementing robust mitigations, such as comprehensive cyber-security frameworks, multi-factor authentication, employee training and encryption, the industry can ensure it’s well shielded against cyber-criminals.
And if a cyber incident does occur – the trick is to be a couple of steps ahead of a cybercriminal. That means not waiting until it happens but being prepared, in the case that it does. By implementing a reputation strategy, you can help to maintain your brand’s image, communicate consistently and effectively to customers and mitigate any further risk.
The Year of Elections
2024 has been dubbed the year of elections. There are more than 50 taking place, with 25 of those expected to have economic implications which could resonate around the world.
But how does an election impact travel?
In the UK, the industry is looking to the new Labour Government to create a strong regulatory environment to thrive. This includes efforts to reform Atol protection and the Package Travel Regulations (PTRs) and clarification around Air Passenger Duty (APD) and the EU261 flight compensation scheme.
And globally, with the upcoming US election – the travel industry will be on tenterhooks, waiting on the outcome. Under a Trump win, we could see travel bans re-issued and visa delays which could create a backlog for the travel industry. In contrast, under a Harris administration, a focus on automatic refunds from airlines in the case of delayed or cancelled flights and a series of changes to progress visa wait times could improve customer retention and US tourism massively.
Brands should have an effective election strategy in place, to ensure they’re on-top of upcoming legislation and in a position to create and maintain relationships with trade bodies and tourism boards.
Audience Considerations
The travel landscape is vast so, when considering today’s travellers and their needs, brands also need to consider who exactly they want to appeal to. For example, travel remains a top priority for younger generations, particularly Millennials and Gen-Z who are willing to spend more of their income on travel than other generations (source). Whereas baby boomers are willing to spend if they see value. Still accounting for around 20% of the overall travel landscape, they are willing to spend more on comforts such as non-stop, direct flights, or more premium accommodation. However, typically, older generations plan more domestic trips whereas younger generations want to travel abroad more.
As with many industries, there is no one-size-fits-all approach, so brands should consider exactly who they want to target and how.
While in the past customers may have been loyal to brands that they had travelled with previously – whether that be airlines, hotels or excursion providers – customers are increasingly savvy, instead opting to shop around for the deals that tick most of their boxes and align with their personal values. Equally, in today’s highly competitive travel industry, customer service and personalisation are key to retaining customers. Offerings including tailored recommendations, personalised offers and loyalty schemes are increasingly expected by holiday-makers, and proven to encourage repeat bookings.
By implementing these customer retention strategies and communicating them creatively to consumers as part of a clear PR and social media campaign plan, travel brands can increase customer satisfaction and foster a sense of loyalty and connection to the brand, encouraging customers to stick with them for a while longer.
If you’d be interested in discussing your travel PR strategy for 2025, why not get in touch with our expert Consumer and Corporate Public Relations teams today.