Multi-Day Family Tours Tweak Models Ahead of Peak Summer Season
25.08.2023 - 14:03
/ skift.com
/ Summer Travel
/ Matt Berna
/ Selene Brophy
A shift in family holiday experiences and longer booking windows for tours are just some patterns shaping the upcoming peak summer season.
These summer pricing and booking patterns indicate a well-recovered travel industry, with the experiences sector also riding a growth wave.
Macroeconomic concerns such as global inflation and the rising cost of living appear to have little impact on travel demand, as booking platforms and niche day-tour operators note slightly shifted booking patterns but improved volume overall.
Research by the U.S. Travel Association showed travelers feel more confident in their financial situation — with 61 percent of leisure travelers and 69 percent of business travelers feeling good or excellent about their financial well-being in the next six months. In addition, U.S. travel spending in December 2022 totaled $97 billion, 3 percent above 2019 levels and 7 percent above 2021 levels.
Continued demand was further echoed by the world’s largest tour operator TUI, which has seen a marked uptick in bookings during the traditional tell-month of January, with bookings exceeding its 2019 levels. Tui added that its customer base was well-cushioned against the current market conditions.
While its pricing for summer is seeing a six percent increase, it is considerably lower than the 29 percent seen for its winter offering.
Intrepid Travel is more than optimistic about the peak summer period ahead, going from $14.6 million in losses in 2020 to a return to profitability in 2023. The company has noted a shift in family travel experiences, and is set to bring certain family trips, previously put on hold, back into the fold.
“Quality family time is more valuable than ever, given the past years with what Covid has presented,” said Matt Berna, president of Intrepid Travel, The Americas.
“There is a real trend where families are longing for immersive cultural experiences, which allow the entire family to learn and connect with the destination not just the well-known sites. Families are seeking meaningful family trips, and many may wish to have these experiences with grandparents, too.”
Young travelers, who heavily influence choice, want to support sustainable, experience-rich trips, with Intrepid focused on including them in the planning conversation.
With a total of 46 family trips, its year-to-date global booking numbers within this market segment was tracking some 38 percent higher than 2022, however, it was about 29 percent off its 2019 performance.
Trips seeing the highest growth (compared to 2019) are the “Italy Family Holiday,” up 181 percent, “Japan Family Holiday” 53 percent, “Borneo Family Holiday” 57 percent and “Turkey Family Holiday” up some 26 percent.
An example of a