2022 Travel Trends

What a difference a year makes (?)

In looking at my year end “travel trends” post from 2020 I’m struck by how much, and sadly how little, has changed from one year ago.

In December 2020 we were at the end of a year where COVID-19 had entered our vocabulary for the first time. Travel essentially ground to a standstill.  Trip cancellations rather than new bookings were the day to day business of our travel agencies.  Many of us opted not to travel or to stick to destinations close to home to minimize the possibility of infection and quarantine.  We believed that a “post-pandemic” travel world was around the corner once vaccines became widely available in 2021. 

Many of the predicted 2021 trends DID come to pass. 

• Vacation travel focused on the great outdoors – national parks, RVs, home rentals.

• Updated health and safety protocols in the airline, hotel and cruise industries utilizing more touchless travel technology and updated sanitary procedures

• Increased growth and resurgence of flexible cancellation policies

• Implementation of vaccine mandates for entry into different countries, social spaces

• Clients recognizing the value of utilizing travel professionals

And on the positive side, COVID-19 vaccines and boosters are now widely available in the United States with almost three quarters of the US population having received at least one dose, and just under 65% fully vaccinated. Americans have slowly started taking vacations and joining in holiday get-togethers with loved ones.

But as 2021 draws to a close we are seeing a massive surge in positive COVID-19 cases due to the arrival and spread of the Omicron variant in the US and Europe, following the more serious, but less contagious Delta variant.  This is once again leading people to rethink their travel plans.  Airlines are once again cancelling flights due to a lack of staffing, tour operators and cruise lines are re-routing and cancelling itineraries due to outbreaks. 

So what’s in store for 2022?

Great Expectations – 2022 is being heralded as the year of the GOAT (Greatest of all Trips).  More than 2/3 of American travelers have been putting money aside and are planning to “go big” on their next getaway - either taking a dream vacation or upgrading their vacation experience with fancier hotels, upgraded airline cabins and private touring. And they will be met with…

Higher Prices

After a year of lowering prices to attract travelers, expect to see higher prices next year as demand increases (2020 and 2021 travelers embarking on delayed vacations in 2022). The average cost of an airline ticket will increase as the airlines have widely expanded their premium economy offerings at the expense of main cabin seating.  Increased demand along with higher labor and supply costs will drive higher prices at hotels and restaurants. 

Safety First

Consumers will continue to prioritize their health and safety when choosing vacation destinations.  While vaccine and mask mandates may be challenged in the courts, travelers will decide what countries and what types of air, hotel and cruise environments they value with their wallets. 

Back to Nature

Pre-vaccine travelers discovered the beauty and space of the great outdoors and this trend is likely to continue and expand in 2022.  Bookings for outdoor-focused destinations such as the nation’s National Parks, states like Alaska, Hawaii and Montana and towns like Jackson Hole, Bozeman and Coeur d’Alene are outpacing traditional urban vacation destinations such as New York City, Los Angeles, Miami and Boston.  Similarly international destinations with outdoor focuses – think Costa Rica, the Greek Islands or Iceland – are some of the top booked destinations for 2022.

Back to Business… but not quite

With the rollout of vaccines many companies have employees back in the office and back out on the road.  Expect to see a cultural and generational shift as Baby Boomers retire and Gen Z takes over.  Comfortable with working from anywhere, Gen Z-ers are also more likely to combine business and leisure travel (bleisure), stay in non-traditional accommodations (boutique hotels, home-like accommodations through Airbnb, VRBO) and manage their travel themselves.  Expect shifts in traditional corporate travel policies, increased use of travel technology and downsizing of corporate travel departments.

Labor Shortages / Touchless Technology

Reductions in hospitality services that were initially created and accepted due to fears of the spread of COVID (reduced housekeeping and dining options, touchless check-in…) will continue into 2022. This time it will be due to labor staffing shortages rather than COVID as the hospitality industry struggles to attract and hire employees to traditionally low paying jobs with long working hours. Labor shortages will lead to further developments of alternative “touchless” technologies such digital vaccine passes, keyless access, remote check-in and smartphone apps that allow travelers to order food, request housekeeping and download “do-it-yourself” city tours directly to their phones.

Last minute booking

With COVID-19 still impacting travel, many travelers are still reluctant to plan too far in advance or book non-refundable arrangements (even if they save money). As airlines, hotels and tour operators phase out their generous cancellation and rebooking policies, more travelers are opting to book within shorter time frames even at higher prices and reduced availability

People will still travel!

I’ve already got “hope” on my 2022 travel calendar - a January Caribbean cruise (my first), return visit to Costa Rica and a Fall train trip through Scotland. I’m sure there will be more.

Travel (and stay) Well!