As we begin to see light at the end of the COVID pandemic tunnel, we are excited about the rebound, recovery, or restart of the travel and tourism industry. There are a few questions worthy of discussion as we prepare for the future.

Shall we be optimistic?
The pandemic makes people reflect on a number of things that have been taken for granted—time with family and friends, freedom to travel, and serendipitous interaction with strangers. The challenging time makes people appreciate the fragility of human life and creates a sense of urgency for many to accomplish their “bucket list”. All of these will facilitate not only the recovery but also the explosive growth of the tourism and hospitality industry. This is more than the realization of the much talked about pent-up demand; it is a reflection of people’s changing values and priorities.
Research has shown that people’s tendency to reduce the existential angst caused by the prominence of mortality could affect a broad range of human behaviors, including the inclination to engage in more indulgent/hedonistic consumption, spend significantly more money on a wide range of products, enhance engagement with brands, and/or immediately consume. Travel is one of the behavioral tendencies and serves as a reducing agent for anxiety caused by the pandemic. In addition, the stress and immobility experienced in the past one-and-a-half years could induce people’s desire for travel.

How have travelers’ behaviors changed?
Before people are confident about international travel, domestic consumption of tourism and hospitality services is already on the rise, especially for countries with a large domestic market. Take China as an example, the past Labor Day holiday evidenced highest number of domestic tourists and spending, surpassing the pre-COVID record by a wide margin. While the government encouraged citizens to stay home during the October National Day holiday due to sporadic COVID cases reported, the tourism activities reached approximately 70% of the 2019 level.
What’s worth-noting is the consumption patterns. Popular forms of travel include rural/farm tourism, eco-tourism, wellness tourism, immersive experiences, multi-generational travel, and smaller groups with private and customized itineraries. Other behavioral changes include higher willingness to spend, more booking through online travel agents, and staying at high-end hotels and resorts, including boutique and glamping facilities.
While consumers are eager to get back on the trail, their expectations and preferences may very well be different from the pre-pandemic time. The concepts of hospitality, comfort, luxury and trust could all take on some new meanings due to new ways of seeing the world, changed relationship with others, and different interpretation of the significance of life and self. Hospitality attributes such as paying attention to details and providing personalized services are even more important to make guests feel comfortable and valued. Some traditional ways of showing hospitality and welcoming may now be seen as encroaching on personal space and “too friendly.” The perception of luxury has also shifted from indulgence based on material wealth to pleasure generated from intangible and often deprived resources, such as time, privacy, and quality personal interactions. The ability to entail trust in current issues, such as health and safety, needs to be demonstrated through tangible offerings and effective communication. As consumers enjoy their reacquired freedom and mobility, many are eager to live life to the fullest and live for themselves without further “wasting” any previous time.

Are we ready to be smarter?
The pandemic has pushed the adaptation of technology forward in unprecedented speed, which represents opportunities for the industry to upgrade the smartness of their offerings as they face labor shortages. Technology innovations could very well cater to consumers’ new preferences for low/no touch, customized services. In addition to the use of robots for repetitive tasks, such as room service delivery and large area sanitation, mobile apps allow customers to perform many activities that used to require contact with employees. Customers can use apps to make various service requests, check in to hotels, select specific rooms or dining room tables, and interact with virtual tour guides.
Human employees need to work smarter as well. With reduced number of face-to-face contacts, each interaction becomes even more important to exceed guest expectations.

Will only the rich be traveling?
Absolutely not! The travel bug of all people has been awaken as much of the world has been in a lockdown mode. While those have the means are willing to spend on luxury experiences, the less economically wealthy would still travel but with a limited budget. The future may very well see the growth on both ends of the spectrum – the very high end and the budget travelers enjoying their freedom their own way.

The future…
With so many questions still in the air, a certainty is that the travel and tourism industry will bounce back to new heights!