Uncertain economic situation affects travel this summer
According to new research from insurer Allianz Partners, the uncertain economic situation poses the main challenge for travellers this summer
The research, which was carried out by OpinionWay on behalf of Allianz Partners, surveyed 9,107 people across Austria, France, Germany, Italy, Spain, Netherlands, Switzerland, UK and USA, with the aim of gaining an insight into consumer trust and confidence levels in travel ahead of the 2022 summer vacation period and to identify the main challenges facing travellers this summer.
While the impact of the pandemic on daily life seems to be receding in most countries around the world, the research finds that confidence in the ability to travel is up (77 per cent) compared to last winter (58 per cent). However, half of respondents (50 per cent) say the probable increase in travel costs might push them to downscale their summer getaways this year.
Similarly, almost half (47 per cent) say that the state of their personal finances could mean they’ll need to downgrade their ambitions for their summer vacation. Meanwhile, of those who are not planning any summer vacation this year, the number one reason cited by respondents is that they can’t afford to, due to rising cost of living and travel.
Concern over the ongoing health crisis is the second most likely obstacle to the smooth execution of summer vacations (45 per cent). This is ahead of concerns regarding the geopolitical situation with the war in Ukraine (42 per cent), along with personal (43 per cent) and professional (32 per cent) obligations.
Four out of five Brits will take vacation this summer
In the UK four out of five respondents are confident they will take a vacation this summer, with 84 per cent confirming a summer vacation is important to them. Fifty-eight per cent say they will be taking a staycation, whilst 42 per cent plan to travel abroad, the majority (31 per cent) of which plan to travel in Europe.
Cost of travel (51 per cent), personal financial circumstances (48 per cent) and uncertainty over the Covid crisis (47 per cent) are the key obstacles deterring UK respondents to make travel plans. The main travel expectations of UK respondents are to relax (46 per cent), go to the beach (38 per cent) and spend time with loved ones (35 per cent).
Covid-19 forced the borders of many countries to close and as such, those seeking a vacation began to explore their own countries. While our worlds became physically smaller, our home countries became more attractive than ever before and this trend is here to stay, despite the re-opening of borders. Italy (81 per cent), Spain (75 per cent) and the US (67 per cent) are leading the way with most of those surveyed planning on travelling within their country for their summer vacation this year. In Austria (58 per cent) and Switzerland (57 per cent) respondents are primarily considering travelling abroad.
Economy plays big role in travel intentions
The economy is playing a big role in travel intentions with close to half (43 per cent) of respondents who are not planning on leaving the country quoting the economy as the main reason for this. Over a quarter (27 per cent) say they cannot travel abroad because of the rise in prices and a further 16 per cent prefer saving their money.
The anticipated average budget among Americans for summer vacations this year is by far the highest, at €3,061 ($3,222). However, over half (57 per cent) say the rise in prices could mean they’ll be forced to revise their budgets to spend less. While almost all Spanish and Italians agree summer vacation is important, they both declare the lowest budgets, at €1,585 and €1,607 respectively. In these countries the fear of inflation is also high with two-thirds (66 per cent) in Spain and over half in Italy (59 per cent) saying it will probably have a negative impact on their vacation this summer.
As the world tackles health, geopolitical and economic crises, it is not surprising that respondents across all countries, except Spain, cite having a relaxing, restful holiday as their primary hope for their summer vacation. In Spain, most respondents (48 per cent) hope to go to the beach or seaside.
Americans are most likely to say they want to visit family and friends (28 per cent). They are also more likely to plan shopping vacations (19 per cent), as are the Dutch (19 per cent). While Austrians are the most athletic, with 14 per cent wanting to use their vacation to take part in a sport or hobby.
Commenting on the survey, Joe Mason, Chief Marketing Officer Travel at Allianz Partners, said: “The good news is that confidence in the ability to travel this summer is largely established across all countries surveyed. Summer vacations are extremely important to people and a valuable moment to take some time out to relax and connect with family and loved ones. As we head into the first summer in three years with few travel restrictions due to Covid, it’s particularly interesting to see that the pandemic is no longer the primary concern for summer vacationers.”