Next year (2023) will be a mix between permanent trends carried over from the COVID era, and the return of the values that travellers held before the pandemic.

This is according to an Expedia Group survey covering 17 countries, including South Africa.

The Traveler Value Index unveiled a comprehensive view of traveller trends, sourced across Expedia, Hotels.com and Vrbo platforms, covering more than 11 000 travellers and 1 100 industry professionals. The study was carried out as part of Expedia’s Q4 2022 Traveler Insights reports.

“When we look at Expedia, Hotels.com, and Vrbo data together, we see a detailed and robust picture of travel into 2023,” said Jon Gieselman, Expedia Brands President. “We’re seeing a surge in trips to culture capitals, a new wave of interest in wellness retreats, and a spike in demand for outdoor destinations beyond just beaches and mountains – not a new normal but people branching out to unexpected trends in what we’re calling the ‘no normal’.”

Hunger for new experiences, flexibility

The survey found that 43% of travellers were on the hunt for new experiences, and 34% of those surveyed said they wanted to leave their comfort zones on their travels.

Despite the travel environment stabilising after COVID, consumers are also continuing to demand flexibility when making travel arrangements.

When booking travel, being able to get a full refund on cancelled bookings was the second-highest ranked value for travellers (selected by 20% of consumers as the most important consideration), behind atypical, low pricing (27%). Flexible policies to change bookings without fees or penalties came in fourth (12%), behind enhanced and frequent cleaning methods (14%). Nearly half of consumers (47%) said they would steer away from booking non-refundable lodging.

Interestingly, the study found that industry professionals may be underestimating the importance of flexibility and refunds for consumers. Nearly all of the surveyed professionals said they offered flexible booking options, but only 63% said they would continue to do so in future.

Price-sensitivity and value for money

The study found that the post-pandemic trend of travellers willing to pay more to travel appears to be waning. In 2021, refundable reservations and enhanced cleaning were ranked above price as the top traveller value, but in 2022, low pricing is top of the list. Value for money is a more important consideration than ever, as travellers are more closely evaluating every aspect of their experience.

“Many people may feel comfortable increasing their overall budget for travel, but they want to get their money’s worth. In fact, they say feeling that ‘the experience was worth the cost’ is the most important factor for a positive trip experience,” the survey points out.

Expedia advises that until travel costs come down “those in the travel space should not underestimate the impact that high prices are having on their customers and should be agile in how they adjust their pricing and thoughtful in their messaging and marketing”.

Travel to recover within two years

Only 8% of industry professionals say that leisure travel is back to pre-pandemic levels, with nearly two-thirds (63%) expecting a full recovery within the next two years. A similar trend can be seen in business travel, with 70% of respondents expecting a recovery in the same period.

“International travel is likely to play a large role in closing that gap, particularly for regions most impacted by restrictions. According to our first-party data, international bookings account for half of all package bookings thus far in 2022 – a return to pre-pandemic levels,” Expedia found.