GLOBAL TRAVEL DISTRIBUTION COVID19 IMPACT From Travel Consul
GLOBAL TRAVEL DISTRIBUTION COVID-19 IMPACT From Travel Consul June 2020
ABOUT TRAVEL CONSUL Travel Consul is an international travel marketing alliance consisting of (18) advertising, media, public relations and marketing firms spread across six different continents – all specializing in travel. With over 600 clients in the travel and tourism sector, our global team of more than 850 experts work seamlessly to implement global strategies with unique hands-on local market knowledge and industry relationships. From B 2 B to B 2 C, Travel Consul helps government and commercial organizations. For more information, please visit: www. Travel. Consul. com 2
ABOUT THIS REPORT Travel Consul, a global travel marketing alliance, conducted a global survey on the impact and outlook of the COVID-19 outbreak to travel distribution partners (tour operators and agencies owners). Fourteen of Travel Consul’s partner agencies participated in this global research as shown on the map. The survey was distributed from May 11 to May 25, 2020, in 8 languages: Chinese, Czech, English, French, Italian, Polish, Portuguese and Spanish. The findings are based on 903 respondents from the main tourism source markets.
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT Respondents by Company Type and Region of Main Operation 903 COMPLETE GLOBAL RESPONSES Q 1. Respondents by Company Type GSA 1% Q 2. Region of Company´s Main Operation Asia Other 13% Australia/New Zealand Tour Operator/ wholesaler [VALUE] Retail travel agency 45% Europe The Americas 0% 10% 20% 30% 40% 50%
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT Globally, companies with less than ten employees represented 53% of the pre COVID-19 full time workforce COMPLETE RESPONSES | GLOBAL: 903 | ASIA: 168 | AUSTRALIA: 24 | EUROPE: 393 | THE AMERICAS: 302 Q 4. Pre COVID-19 Full Time Workforce 70% 60% 50% 40% 30% 20% 10% 0% ASIA <10 employees AUSTRALIA 11 -29 employees EUROPE 30 -100 employees THE AMERICAS Over 100 employees
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT At a global level, 38% of the respondents reported moving from full-time to part-time. In North America employing independent contractors was the main option (28%) among the 167 partners taking the survey Q 5. How is your team working today 50% “Other” include: - On government furlough scheme - Working from home - Working less hours - Paycuts up to 50% - Combination: full time to part time and partly laid-off 40% 30% 20% 10% 0% Full time, same as We moved from We have laid-off pre COVID-19 full time to part the majority of time our team GLOBAL Independent contractors NORTH AMERICA Other
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT Two-thirds of travel distribution partners anticipate being able to sustain their businesses for six months without government financial support 903 COMPLETE GLOBAL RESPONSES Q 13. Compared to the last calendar year (20192020), what % drop do you expect in business volume (revenues) for Q 3 and Q 4 2020? 73 % 60 % Estimated decrease in business volume in Q 3 2020 Estimated decrease in business volume in Q 4 2020 Q 14. Under the current circumstances, with no government intervention, how long would you be able to sustain your business? 40% 30% 20% 10% 0% 1 -3 months 4 -6 months 7 -10 months 10+
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT New products design, training programmes and business model adaptation among the leading measures taken during the COVID-19 pandemic. 903 COMPLETE GLOBAL RESPONSES
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT Travel associations reported as primary data sources during the crisis 903 COMPLETE GLOBAL RESPONSES
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT Travel associations reported as primary data sources during the crisis COMPLETE RESPONSES |ASIA: 168 | AUSTRALIA: 24 |EUROPE: 393 | NORTH AMERICA: 169 | SOUTH AMERICA: 82 Q 8. What top 3 data sources are you using to help you cope with the crisis? 80% 70% 60% 50% 40% 30% 20% 10% 0% ASIA AUSTRALIA EUROPE NORTH AMERICA SOUTH AMERICA Travel tech firms International tourism organisations Media Industry friends Trade media Your National Government Destinations (DMOs) TOs/travel agencies associations
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT Email is the leading communications formula during lockdown. Interestingly, the traditional use of the telephone was the second most utilized channel 903 COMPLETE GLOBAL RESPONSES Q 9. Which channels are you using with your clients during lockdown? Please rank by order of relevance 4 3 2 1 0 Email Telephone Social media Video conference/webinars Live chat
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT 57 % 34 % Expect to resume normal operations by 2021 Do not know 903 COMPLETE GLOBAL RESPONSES Q 15. When do you expect your business to go back to normal levels? 12
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT Clients are still waiting to decide where to travel next 903 COMPLETE GLOBAL RESPONSES 46 % Are waiting to decide % 41 Are looking to go to where they had originally booked % 13 Are changing destination Q 10. With clients who are already showing some interest or rebooking, can you indicate the % for each of the following preferences?
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT TOP THREE REQUESTED ACTIONS FROM DMOS Introducing health and safety certificates for agents to feel sure the destinations are safe to send their customers Presenting useful and timely data Marketing campaigns for consumers Q 12. How important are the following actions that destination organizations can do to help you once recovery commences? 903 COMPLETE GLOBAL RESPONSES 14
GLOBAL TRAVEL DISTRIBUTION SURVEY A further in depth look at the activities DMOs can do to support distribution partners in recovery 903 COMPLETE GLOBAL RESPONSES Q 12. How important are the following actions that destination organizations can do to help you once recovery commences? Introducing a health and safety certification 7% Presenting useful and timely data 8% Marketing campaigns for consumers Training sessions Industry and media updates 13% 54% 42% 6% Marketing webinars 59% 33% 11% 12% 68% 33% 13% Info hub for trade partners Joint online calls 25% 48% 47% 41% 51% 35% 36% 46% 19% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Not important Somewhat important Very important
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT 70% of the respondents believe that modifying cancellation policies or terms and conditions will be among their main undertakings in 2020 903 COMPLETE GLOBAL RESPONSES Q 16 Considering your role will change going forward, do you think you will be doing More, Same or Less in 2020? Modify cancellation policies or T&C 4% 26% Expand customer communication channels 3% 31% 70% 67% Diversify or change your product/destination offerings 6% 34% 61% Create new partnerships with new buyers or suppliers 8% 32% 60% Diversify or change your source markets 6% Offer insurance policies 43% 9% 43% Increase your marketing and advertising spend 29% Offer price reductions 30% 0% Less Same 51% 48% 41% 48% 31% 22% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% More
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT Globally, almost half of the respondents are very likely to consider HOTELS & RESORTS not previously offered 903 COMPLETE GLOBAL RESPONSES Q 17. As consumer needs change, will you consider hotels and resorts you have never sold before? 60% 50% 40% 30% 20% 10% 0% Not likely Somewhat likely Very likely
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT 53% of distribution partners across the globe are very likely to contemplate DESTINATIONS not previously offered 903 COMPLETE GLOBAL RESPONSES Q 18. As consumer needs change, will you consider destinations you have never sold before? 60% 50% 40% 30% 20% 10% 0% Not likely Somewhat likely 18 Very likely
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT Globally, ca. 40% of respondents are very likely to consider SUPPLIERS they have never worked with before 903 COMPLETE GLOBAL RESPONSES Q 19. As consumer needs change, will you consider suppliers you have never worked with before? 60% 50% 40% 30% 20% 10% 0% Not likely Somewhat likely 19 Very likely
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT Two out of three respondents plan to focus on social media during recovery 903 COMPLETE GLOBAL RESPONSES Q 20. Which marketing activities do you plan once recovery commences? Other marketing activities include: - Newsletters - Virtual promotional events - Info sessions - Direct calls - In-person events - Networking - One-to-one meetings - Email outreach - Relaunching the website - Enhanced customer service 70% 60% 50% 40% 30% 20% 10% 0% None Advertising Sales Co-op campaigns Digital 20 Social
GLOBAL TRAVEL DISTRIBUTION. COVID-19 IMPACT Changing roles Q 21. HOW DO YOU THINK YOUR ROLE WILL CHANGE GOING FORWARD INTO 2021 AND BEYOND? ANSWERED: 657 SKIPPED: 246 “More customers will buy through operators for security and support issues” “I believe customers will be more conducive to using a travel advisor than before” “We will need to elude confidence in the safety of traveling” “More travel consulting rather than product design” “Customers will value the support of a travel consultant” “New destinations and working with high-end clients” “Adjustment on destination product based on market needs” “Hard to predict” “Unsure” “We must have a more tech-approach to customer” “Will be more detailed business service with accurate product” “More on customer service, offer safety destination” “More involved in tactical marketing to react to the recovery as it develops” “Consolidate product and market knowledge” 21
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