EMERGING MARKET TRENDS OF TRAVEL AND
TOURISM POST-COVID
Travel and tourism is a vast industry that opportunities (WTTC, 2021). This rising
provides several services. It involves a and booming sector suffered major losses
complex network of suppliers, tourism due to the pandemic. So much so that its
products, destination marketing contribution to the world’s GDP dropped by
organizations, tour operators, and travel 49.1%, and it had to suffer $4.7 Trillion in
agents to form it (Knowles & Westcott, losses (BBC, 2021).
n.d.). Apart from this, several other
UK was ranked as the top
fifth travel destination prior to
the pandemic, however, it
alone suffered a 62.3% loss,
bringing its ranking down to
eight (WTTC, 2021). Other
European countries were also
affected due to the losses
suffered by the UK. However,
with current improvements in
the situation, the industry is
slowly getting back to
organizations and industries are also business.
interlinked with the travel and tourism
sector. Before the pandemic this industry
contributed 10.4% to the world’s GDP, To understand the current situation of the
making it a significant sector (WTTC, travel and tourism sector it is important to
2021). In Europe alone, it accounted for analyze the macro and micro-environment
9.5% of the GDP prior to the pandemic and factors affecting it. Getting further into the
provided 38.5 Million employment post-covid era, businesses and their
dynamics have changed immensely and ECONOMIC: Due to new travel policies
rapidly. Therefore, it is at this time and and guidelines, tourists need to make extra
innovative and effective practices will be the for travel than they normally would. This
only solution to gain back the losses includes costs of quarantine, PCR, and
incurred in the past year. COVID testing. The hotel cost of quarantine
has risen from £ 1,750 to £ 2,285 for a single
WHAT IS HAPPENING IN THE UK adult (BBC, 2021). This makes it difficult
FOR TRAVEL AND TOURISM: for a lot of people to travel to the UK, other
MACRO-ENVIRONMENT TRENDS than the tourists coming in from the green-
listed countries (Reed, 2020). Furthermore,
POLITICAL: As more and more people are the global economic recession and the
getting vaccinated, traveling restrictions are uncertainty associated with the situation has
now being eased. UK has opened its borders made recovery for this sector slow.
for most countries around the world except
for those that are at high risk of COVID. SOCIAL: Travelling and tourism trends are
However, people are required to follow set changing. Tourist preferences regarding
rules and guidelines during travel to ensure mode of traveling, places they stay and visit
safety (BBC, 2021). People from the green has become different. While people still
list countries can travel with ease, while want to go on leisure trips, they are
people from the amber list countries need to concerned about their safety. People are
self-isolate themselves for 10
days after arrival. People
from the red list countries are
banned from traveling to UK
(BBC, 2021). Within UK,
government has now allowed
the re-opening of public
spaces. Hence, the tourism
industry can function as
usual for the most part.
avoiding public modes of transport, or tourists continue coming into the country, it
traveling with people they don’t know this. is important that their trust is maintained,
Thus, changing the way tour groups used to and the government proactively manages the
work previously. situation.
TECHNOLOGICAL: Several technological
trends are emerging to suit the needs of the INTERNAL HAPPENINGS OF THE
post-Covid era. UK fintech startups such as INDUSTRY: MICRO ENVIRONMENT
‘Fly Now Pay Later’ are offering payment TRENDS
services that are contract-free and provides CUSTOMERS
flexibility in payment for flights and hotels
through easy installment plans. It has raised
$13.8 million and is now expanding into the
US (England, 2021). This allows tourists to
purchase tickets during these times of
uncertainty without the risk of losing their
money. There are several other revenue
streams including virtual tours and virtual
reality booking options. The London’s
Design Museum sold 5000 tickets for its
online 360-degree digital walk-around of the
museum that costs £5 (Rea, 2021).
ENVIRONMENT: The entire travel and
tourism industry greatly relies on how well
the government manages the spread of
COVID-19 not only in the UK but in other
countries as well. As new variants emerge in
different countries, and with the lift on travel
ban and gatherings, the risk of the virus
spreading still exists. In order to ensure that
CUSTOMERS: Due to the changing trends
of the macro environment of travel and
tourism, especially due
to the unprecedented
COVID situation,
innovative practices will
help the sector in
regenerating revenue.
Travel agencies and
guides need to use this
opportunity to market
services that will attract
customers of the post-covid
era. This can include
itineraries that involve
tourists visiting places that
are not crowded and focus
more on creating tour groups
of people who know each
other rather than random
groups (Anon., 2021).
EMPLOYEES: One of the major problems
being faced right now is the lack of staffing
in the hospitality industry. This market
sector requires highly skilled staff that is
properly trained to deal with different types
of customers. However, due to the extended
period of lockdown during which many
employees of this sector lost their jobs or
were kept on furlough found new
opportunities for themselves. Now as the example [ CITATION Jud21 \l 2057 ]. With
hospitality industry reopens, they do not lesser international tourists it is important
have adequate staffing as employees who that the travel and tourism sector makes the
have left do not want to return due to most from domestic tourism. Moreover, it is
uncertainty in the industry (Sweney, 2021). expected that the UK will generate $ 51.4
This would require hiring new staff and billion in revenue from domestic tourism
training them, which is an extensive and [ CITATION Vis21 \l 2057 ]. The focus has
costly process for the sector is. Regardless, it also now shifted towards leisure day
will open employment opportunities for spending more than night stays.
many people as well.
Moreover, business travel has decreased
significantly. Prior to the pandemic, in 2018
INVESTMENT: Despite the re-opening of
more than 20% of the $ 1.4 trillion revenue
travel and tourism activities the stocks of
generated through business travels came
Carnival Plc, IAG, Cineworld, and
from Europe [ CITATION Dan20 \l 2057 ]. It
Restaurant group are still down as compared
accounted for a huge part of the revenue
to 2020. These stocks might go up as the
generated by the travel and tourism industry,
influx of tourists increases in the country.
especially for the airlines. However, the
With more countries being shifted to the
corporate sector has indicated that their
amber list, it will improve the stocks of the
business travel will stay at 25% to 50% of
key businesses of the industry (Alves,
what it was in 2019 (Reed, 2020). As a
2021).
result, the focus of the tourism industry has
now shifted to leisure trips.
DEVELOPMENTS
The new emerging trend of conscious luxury INSIGHTS TO THE COMPETITIVE
is becoming more appreciated. It allows DYNAMIC
travelers to enjoy and relax in hygienic and
The key competitors in the UK are the
safe conditions while also giving them the
existing travel companies such as
opportunity to explore and appreciate nature.
TripAdvisor, Booking Holdings, and
It is a perfect way to promote staycations as
Expedia among the many. However, with
well. Carbis Bay Hotel St Ives is one such
the changing dynamics of the sector, new
startups are also emerging in the market. these adjoining countries as compared to
Recently Revoult, UK’s leading digital taking trips within the United Kingdom.
bank, also introduced a hotel booking
feature online. With more than 16 million
users, it is an emerging competitor for travel INSIGHTS TO THE CUSTOMER
companies[ CITATION Jil21 \l 2057 ]. DYNAMIC
Moreover, companies with new and
Consumer dynamics dictate that most
innovative technologies are rising as well
vacationing away from large metropolis
such as Fly Now Pay Later, and TravelPerk.
areas has been popular among holiday
These companies are not only understanding
travelers from the UK. Seeing this consumer
the market needs but providing suitable and
pattern, it is inferred that these UK travelers
sustainable solutions to the customers in
save and spend on vacations in natural
these unprecedented times [ CITATION
locations[ CITATION Sta21 \l 2057 ].
Ell20 \l 2057 ]. The main focus of the travel
Travel is one such area where the average
companies is to increase their profitability
UK citizen spends, on an average of 5.7 %
and recover the losses incurred in the past
of their total income[ CITATION Vis211 \l
year. Therefore, they are actively changing
2057 ]. Most dwellers of the UK are mostly
their marketing strategies and coming up
in search of beach holiday destinations. For
with innovative solutions.
longer vacations, usually, those that account
Apart from this, for both international and for four nights or more, UK travelers often
local tourists, competition also exists with choose countries in Europe with warmer
other European countries. Most travelers are climates. Hence, it is inferred, that most of
considering France when they are the travel of UK citizens that is about 50
considering alternative destinations to million trips a year is mostly within the
Britain. We also see that among many short country[CITATION Sta20 \l 2057 ].
and long-haul visitors, Germany is Whereas, a sizeable portion of these 50
considered to be a great favorite of travelers, million trips, means travelers also travel to
followed by Ireland and then Italy. Those areas outside of the UK, usually countries
travelers with a higher disposable income close by.
would prefer to take these trips abroad, to
CUSTOMER SEGMENTS: Generally, there 2057 ]. In regard to those citizens who take
is a great deal of travel within the UK, vacations within the United Kingdom, we
especially within the summer months. This see many residents choose to opt to holiday
form of seasonal travel is apparent in all at home. UK adults take an average of two
parts of the world, but within UK, the mass ‘staycations’ per year, which means they
consumer segment that travels is traveling prefer taking two vacations in nearby
for leisure [ CITATION Vis16 \l 2057 ] . Upon areas.
scrutiny of these segments, we see that the
major demographic is made up of families
who are vacationing, the second-largest
chunk constitutes of solo travelers or young
adults, and whereas we see that business
travel is mostly limited especially during the
summer months [ CITATION Sta201 \l 2057 ] . It
is found that business travel is more
prevalent throughout the year, rather than
remaining concentrated within a specified
period. Geographically, it is observed that
most travelers have faced restrictions due to
the lockdown imposed by the pandemic, as a
result of which, there are now a much fewer
number of leisure as well as business trips
this year as compared to the previous ones.
MOTIVATION TO TRAVEL: Most
travelers prefer to seek places within the
country, or, if they venture abroad, they
mostly target countries that are nearby. For
UK residents traveling abroad, Spain
continues to rank as the most visited holiday
destination abroad, followed by France and
Italy in the year 2019[ CITATION Sta201 \l
CONSUMER BEHAVIOUR: In the UK, we
see that young adults achieve maturity at a
younger age as compared to their
counterparts in other
countries. This financial
independence enables
them to make more
independent decisions
when it comes to their
travel plans. This is a
trend that is not so
common in other parts
of the world, but more
apparent in the UK.
The patterns of tourists
stay has changed during
this year. While more
people continue to travel
for leisure rather than
for business, shorter
haul traveling has
reduced. Moreover,
tourists are choosing to
stay for 4 -13 days,
which is a longer haul
travel compared to their
previous preferences.
This is because people
have more time and the opportunity to work
from home as well. The age group 35-44 is
seen to be having longer haul visits
independently rather than dependently as and tour operator websites, and
compared to the past. Understanding the accommodation provider websites are more
consumer behavior post-COVID is integral influential for longer duration trips made by
for travel and tourism companies to plan travelers in the UK.
their business activities accordingly, and
CONCLUSION
market services that will cater to the
changing needs of the travelers[ CITATION Even though the travel and tourism sector
ONS20 \l 2057 ]. has suffered a major hit due to COVID-19, it
remains an important sector for the country
INFLUENCERS OF CONSUMER
due the contribution it brings to the GDP.
DECISION MAKING: It's difficult to
Therefore, not only the business owners in
measure an exact number of visitor
this sector but the government as well is
attractions,
Figure 1: Consumer behavior insights as CITATION
and statistics[ some
taking measure to support the sector.
ONS20 \l 2057 ]. businesses or sites, like
Moreover, in terms of changing consumer
places of worship, have a
trends, travel and tourism has a lot of
different primary purpose but are still visited
potential to thrive. The combined used on
by tourists. However, we estimate there are
technology and innovative marketing
around 5,000 to 6,000 visitor attractions in
strategies, this sector will be able to grow in
England[ CITATION Vis16 \l 2057 ].
the near future.
If travelers are making short trips within the
United Kingdom, then it is noted that most
search engines, price comparison websites
and word of mouth, traveler reviews,
conversations on social media are sought.
These information sources are broadly the
key online information sources for travelers.
They make most shorter-bound trips based
on these sources of information
If we see the travel behavior for longer
hauls, then it is observed that travel agents
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