Allianz Partners reports key travel trends
The company has highlighted three key trends as part of its States of Mind: Travel report, which will define the future of the travel industry
Allianz said the trends were developed ‘from a combination of Allianz Partner’s proprietary Customer Lab research; the Allianz Partners Summer Vacation Confidence Index; in-house consumer behavioural insights; and data from across the wider travel ecosystem’.
The Customer Lab research was collected in Spring 2022, and involved surveying over 25,000 consumers across 10 major travel markets – Australia, Belgium, Brazil, Canada, China, France, Germany, Italy, UK, and US. Data was analysed at a country and age group level, as well as at the total sample level.
The report also drew on the expertise of Joe Mason, Chief Marketing Officer for Travel at Allianz Partners, and Luís Araújo, President of the European Travel Commission and President of Turismo de Portugal.
Trend 1: Demand for greater flexibility
Allianz found that travellers are responding to the greater level of complexity involved in travel since the pandemic by demanding greater flexibility and peace of mind from travel providers and insurers.
Flexible booking and cancellation policies have become popular in response to ‘high levels of cancellations and delays’ and entry requirements imposed during the pandemic.
Allianz explained: “These factors have created a landscape in which plans are liable to change at short notice, at the same time as more paperwork and process is complicating travellers’ experience throughout the customer journey.”
Allianz found that the intention to purchase travel insurance has risen ‘significantly’ among respondents from Belgium, France, Germany, Italy and the UK since the pandemic – from 21 per cent of travellers in 2019, to 55 per cent in 2022.
Customer Lab data also found that more than half (58 per cent) of younger families now plan to make flexible reservations when booking, so that they can more easily change their travel plans to deal with unforeseen events.
The report also noted: “Travellers must also consider growing economic and geopolitical complexities. Inflation and cost of living pressures are set to have a major impact on the destination-deciding process for many travellers in 2023. That’s especially true for younger families, who often have large, fixed overheads such as mortgages and childcare costs.
Allianz found that the demand for flexibility is also driven by the ‘changing nature of travel’, such as the growing popularity of multi-generational family trips.
Trend 2: Remote working has created a ‘work from anywhere’ culture
Allianz noted that the Covid-19 pandemic has accelerated the adoption of remote working, and said that ‘there are already indications that the trend is here to stay’.
Research carried out by Allianz Partners for their Customer Lab report found that 28 per cent of Generation Z travellers, aged 18 to 25, expect to work from abroad more frequently or from a secondary or family residence in the future.
“People across all ages and demographics are now requiring remote working facilities, not just younger ‘digital nomads’. The ability to work from anywhere is also behind the popularity of the ‘Bleisure’ trend which combines business and leisure travel,” the report stated.
Allianz explained that better healthcare services such as telemedicine and video consultations were also driving the trend among older generations, who may have previously have been ‘uneasy about the possible consequences of long holidays without access to familiar healthcare’. Accommodation providers are also moving to offer more long-term options to cater for those making extended stays.
However, the report added that this trend was being hindered in some countries by ‘outdated and inflexible regulations’, and suggested that the travel industry had some way to go in adapting to the needs of travellers, even while traditional business travel ‘takes time to return to pre-pandemic levels’.
Trend 3: The future of sustainable travel
Allianz also found: “While consumers are becoming more conscious of the impact international travel can have on the environment, they have yet to consider their carbon footprint as a major factor in their decision-making processes regarding travel.”
The company suggested in light of the lack of direct market incentive, a ‘multi-sectoral approach’ was required to address issues of environmental sustainability at both national and international levels. Such an approach should be ‘focused on supportive regulatory frameworks for companies in the sector to reduce their environmental impact’.
The report added: “Addressing societal issues is also critical, with particular attention needed to ensure travel has a positive impact on people and communities who live and work in popular destinations.”
Allianz Partners also announced the appointment of Dr Francois-Xavier Duchateau as its new Group Chief Medical Officer earlier this year.