Is the leisure industry on the verge of death? For us, it is definitely NOT. We could see the initial optimistic insights, providing you with evidence for recovery.
Currently, we will not mention how many coronaviruses outbreak damage the global leisure industry since you could find millions of results across the internet. Tons of threats and warning suffuses throughout every corner social media, raising doubt about the dual-front crisis coming from both finance and healthcare pressure. Citizens in many countries have preoccupied with running out of money unless restoring businesses as usual, while they also scare of being injected in doing business activities.
If you are looking for critical articles, standing on an optimistic point of view, this blog will design for you. As a travel software development company, we would share our research and prediction about the future of the travel industry in creditable sources and practice pieces of evidence.
Future of the travel industry in the context of Healthcare concern
Travel leisure & hospitality recently rely on the balance of healthcare concern and financial concern. When the fear of healthcare problems manipulates the population, demand for leisure travel industry fell into the bottom. On the other hand, if the economic concern occupies healthcare consideration, it will be the very first signal for the travel leisure restoration.
Economic concern on the rise
In practice, several shreds of evidence propose that communities living in Europe are seemingly positive mind regarding pandemic anxiety. According to Deloitte insight, Germany, Netherlands, Australia, and Canada claimed to be the four countries showing the most optimistic view. In which, the majorities of respondents admit that they felt less anxious than the previous periods.
Likewise, the result of an investigation done in America shows that the U.S economy was the leading concern of respondents recently. Besides, the worry regarding an increase in COVID-19 cases was the number six out of ten considerations.
Related article: How coronavirus outbreak changes online grocery services and food industry globally
After six months of doing measures to reduce the pressure of the healthcare sector, the economic concern gradually dominates the future of travel for leisure business. Above 40% of the large payment was subjected to delay, while roundly 27% of leisure businesses stressed of not having payment capacity for the upcoming debts. To respond to the economics concern, leisure travel providers currently launch bundle travel packet and deliver promotions campaign to strengthen the financial flow.
A sign of rising demand for the leisure industry
In the meantime, travel safety refers to the driving force in the travel and leisure industry that leisure providers have stayed with strategies dealing with short-term financial uncertainty. Fortunately, there are several promising signals of recovery across sectors of travel leisure due to the changes in customers’ minds. Roundly 50% of UK citizens are feeling social safety, who are the confidence of their physical well-being.
- These trends have spread across the EU zone, while many countries in Asia are ready for broad promote domestic travels.
- Besides, the number of Americans being confidence in staying in hotels without a doubt reach roundly 30% of the population. Additionally, the ratio of people feeling safe from going to crowded places increased from 30% to 50% in July.
- On the other hand, public sectors have put efforts supporting the travel and hospitality industry to step out of downturns. Whereas, the UK, Belgium, France, Germany had slighted bolder for internal movement insides Europe, which expectedly to save the air travel sector.
Related article: How digital transformation affect the travel and tourism industry – mobile apps and technology innovation
Travel for leisure recovery signals
Along with the early signs of easing in leisure travel safety concerns, consumers have more evidence to restart their travel plans. In fact, they did that the spending on travel and leisure services has expected to turn the initial recovery phase.
Growing numbers of travel plan
In hotel and accommodation sectors, data came from the majority of providers show that roundly 35% of Americans have been planning to book hotels for leisure and travel plan. That numbers have enjoyed gradually increasing trend from Aprils when many states have eased the social distancing rules.
The core group of consumers tends to be Millennials, who can afford vacation expenses. Especially, Millennials are sensitive to technology and online opportunities that they actively search for travel deals and promotions from leisure travel providers. According to Deloitte, approximately 40% of air travel customers lay on the groups of 18 to 34-year-olds.
Some selected insights about Millenials on travel and tourism
- Millennials are more interested in a destination with cultural or historical significance
- Roundly 20% of total travelers globally are Millennials, who take an average over 7 trips per year.
- A typical millennial has roundly 5 trip planning for 2020.
Unfortunately, signs of restoration vary across sectors. In which, hotel and aviation tend to catch the spotlight, with significant growth in numbers of bookings. Companies in other areas as car rental or international travel also remain freeze.
Spending for the leisure industry
From February to March, the expenditure on leisure travel activities suffered a sharp decline to the bottom by at least 80% in five sections, including accommodation, airline, car rental, travel OTA, and cruise. Since April, the market trend proposed a slight increase in the hotel, airline, and car rental demand, while the spending was increased by 20% by the end of July.
Increase in traffics of travel and hospitality apps and websites
After a dramatic drop in traffic, leisure travel websites for booking and planning have seen more visitors since the mid-April, 2020. In which, the booking volume was positive at that time that the order cancelation was reduced gradually by 10% per month. Additionally, several offshore software development companies in Asia have received requests regarding mobile app development and website development for leisure businesses in America and Europe. It proves that both consumers and providers are planning on recovery by the end of 2020.
Final words, business uncertainties are undoubtedly hard to define. 2020 are a cheerless period of travel leisure & hospitality business, including both travel leisure companies and travel software development companies, facing with industry crisis. The dark time might end in Quarter II that providers and consumers have strong evidence to expect a strong resurgence of the leisure industry.