It’s hot budget summer for travel brands
It’s hot budget summer for travel brands

It’s hot budget summer for travel brands

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Diverging Reports Breakdown

It’s hot budget summer for travel brands

U.S. travelers are prioritizing domestic travel due to both budget and political concerns. 72 percent of Americans have changed their travel plans because of rising prices, and 23% plan to travel domestically rather than internationally. The vacation rental site VRBO added a Last Minute Deals function this summer that narrows down searches to properties offering deals and labels properties with a “Last minute” badge showing the amount travelers can save. Amtrak—which has been increasingly leveraging cost and safety issues to drive travelers to choose the rails over air travel—launched a partnership with Crayola this summer, targeting family travel. The car rental company launched its first global ad campaign on Memorial Day weekend, the typical start of the summer travel season. One survey found 77% of travelers were planning around a destination’s food and restaurant choices. The Chase Travel poll found 55% were eager to travel to Italy, 45% to Italy and 45% for Italy. While relaxing and visiting friends and family are still the top reasons for travel, tourists are also increasingly focused on experiences built around their interests.

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As the summer season heads into its second half, leading to the Labor Day holiday, U.S. consumers are eager to hit the road. But travelers are conscious of both costs and security, and the trends are reflected in the marketing efforts to reach them.

Americans are factoring in the economy when budgeting for travel, a recent Harris Poll found summer travelers are price conscious, increasingly choosing hotels and flights based on price, trading flying for driving and finding other ways to stretch their travel dollar.

“Value is a loaded word these days, across many categories,” said Geoffrey Director, EVP, Strategy of Manifest. The Chicago-based creative and content agency has worked with Alamo Rent A Car, Ritz-Carlton and other travel brands.

It’s not so much that consumers are pinching pennies, he said: “It’s that they want to make sure their purchases are worth it.”

A report from Deloitte was very direct in its advice: “Travel providers should plan to be nimble this summer,” the analysts recommended. “Timely and targeted deals and offers can help reach travelers at the right moment and attract any incremental dollars they may be willing to spend.”

Marketers are taking the advice. The vacation rental site VRBO added a Last Minute Deals function this summer that narrows down searches to properties offering deals and labels properties with a “Last minute” badge showing the amount travelers can save.

“Last Minute Deals give families a great way to save on summer vacation, while helping hosts keep their properties booked year-round,” said Larry Plawsky, General Manager at Vrbo, in a statement. “It’s a win-win.”

Still hitting the road

In spite of rising prices, the lure of the road hasn’t dimmed. A survey from Enterprise found about two thirds of Americans started the summer planning to travel at least 50 miles away from home. The car rental company launched its first global ad campaign on Memorial Day weekend, the typical start of the summer travel season.

Travel companies are leaning heavily on discounts to bring in families, which may put off big-ticket trips because of the economic uncertainty. Amtrak—which has been increasingly leveraging cost and safety issues to drive travelers to choose the rails over air travel—launched a partnership with Crayola this summer, targeting family travel. The effort includes children-travel-free offers, free admission for kids to The Crayola Experience and locomotives wrapped in Crayola livery.

“Between special savings and imaginative locomotive designs, we are excited to foster extraordinary journeys and inspire creativity across America,” said Jessica Davidson, Amtrak’s vice president of digital and brand marketing.

U.S. travelers are prioritizing domestic travel due to both budget and political concerns. A survey from U.S. News & World report found 72 percent of Americans have changed their travel plans because of rising prices, and 23% plan to travel domestically rather than internationally. Indeed, 47 percent of U.S. citizens are worried how they will be perceived when traveling abroad, according to the survey.

Premium travelers are not cancelling, but they are shopping around, said Savannah McGusion, Director Experience Strategy, at RAPP, which works on the American Express’ Travel & Leisure services line. She noted that Amex is reinforcing its value-driven messaging focusing on enhancements such as late checkout and room upgrades, rather than purely aspirational themes.

“Instead of changing destinations for economic reasons, (premium travelers) often take a hybrid luxury approach by adjusting their hotel selection, mixing premium and standard accommodations, or choosing different airfare classes within a single trip,” she said. “However, political factors are prompting more international cancellations, and we anticipate this trend will continue.”

Destination marketing organizations are taking advantage of the shift to homegrown destinations, said Manifest’s Director. The organizations are engaging in what he called “hyper-local storytelling,” focusing not only on the state or city, but down to individual neighborhoods, cultural moments, and local-owned businesses. They are relying on these efforts to counteract the loss of travelers from Canada or Mexico turned down by current political friction, he said, “betting this can help attract visitors but also extend the average trip duration.”

Personal passions vs. destinations

While relaxing and visiting with friends and family are still the top reasons for travel according to most surveys, tourists are also increasingly focused on experiences built around their interests—food and wine, sports, wellness or entertainment. One survey found 77% of travelers were planning trips around a destination’s food and restaurant choices. The poll from Chase Travel found 55% were eager to travel to Italy for pasta, and 45% were looking forward to going to France for the wine.

“At Chase Travel, we’re witnessing a growing demand for authentic, immersive experiences, whether it’s exploring a destination’s culinary scene, wellness offerings, or cultural events,” said chief marketing officer Wendy Vividor. “In response, we’ve been launching more Sapphire Reserve Trips designed by Chase Travel, crafted to create unforgettable journeys that align with our cardmembers’ passions.”

For example, she noted Chase recently offered a trip to London that included a private tour of the Victoria and Albert Museum and personal shopper service at Harrod’s department store. And it is offering a trip to Oaxaca in Mexico for the Day of the Dead celebration that focuses on dining experiences and cultural immersions.

“There is a clear shift toward travel centered on personal passions versus destination-driven,” said RAPP’s McGusion. As an example, she noted that Airbnb recently relaunched its Airbnb Experiences program, offering travelers authentic local activities.

All sorts of interests are being targeted by travel brands. Marriott Bonvoy, the hotel company’s loyalty program, is partnering with BETMGM, the sports gaming arm of MGM Resorts, to launch a promotion centered on fantasy football. The effort includes a sweepstakes offering a fantasy football draft weekend in Las Vegas for the winner and 11 guests over Labor Day weekend, hosted by former pro quarterback Matt Ryan.

“BetMGM and Marriott Bonvoy are an unrivaled duo when it comes to delivering unique opportunities for sports fans,” said chief revenue officer Matt Prevost, in the announcement. “The Vegas Fantasy Draft with Matt Ryan is another example of how we are creating truly exceptional experiences for BetMGM players.”

Entertainment fans are also being targeted by destinations promoting their roles as backgrounds in popular TV shows and movies. For example, Discover Ireland, the Irish tourism arm, is pushing the locations of the Netflix series Wednesday to travelers in advance of the show’s second season premiere.

“Experiential add-ons aren’t just for luxury segments anymore,” said Manifest’s Director. Even as budget and mid-tier travelers shop around, “they still crave enriching moments,” he said. Brands are responding by offering bundles and tiers of experiences, more accessible wellness programming and forming partnerships with local creators to create more cost-effective offers, he said.

Research shows consumers want more out of travel than just to go somewhere different and relax, the Director said.

“Without a doubt,” he said. “While Americans are more comfort-driven than ever in their leisure time decision making, they also simply can’t sit still.”

Source: Brand-innovators.com | View original article

Source: https://brand-innovators.com/its-hot-budget-summer-for-travel-brands/

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