After a “scorching” summer, a new report by digital intelligence platform Similarweb paints a “mixed picture” of travel trends, according to Jim Corridore, senior information manager at Similarweb.
The report uses data from three of the largest online travel agencies: Expedia, Airbnb and Booking.com. Similarweb’s research focuses on global web traffic and US conversions.
The summer of “revenge travel” — in which consumers spent their discretionary income on travel despite the faltering economy and rising inflation — gave way to fall and winter travel prospects in muted, the study reveals.
Web traffic for Expedia, Airbnb and Booking.com dipped slightly from August to September, then from September to October, according to Similarweb analysis.
“The decline is not something to be worried about. It’s consistent with historic travel trends,” Corridore says. “I think what we’re starting to see now in the numbers is that this trend is starting to return to more seasonal patterns.
“During the summer we had a very hot spell, and it was unbearable.”
All three companies saw a decline in web traffic in the third quarter ending September 30, 2022, “both from the second quarter and from the prior year,” Corridore says.
- Year-over-year, Airbnb’s web traffic rose 11% in October and fell 20% in the third quarter.
- Year-over-year, Expedia’s web traffic rose 19% in October and fell 19% in the third quarter.
- Year-over-year, Booking.com’s web traffic increased 12% in October and fell 21% in the third quarter.
“The recent [quarterly] a year-over-year decline could indicate a potential decline in travel demand beyond normal seasonal patterns,” says Corridore. Possible causes include the recent decline in consumer confidence amid high inflation and higher interest rates.
According to Corridore, when people spend more time on OTA websites, it means they are looking for a deal. Consumers are switching from vacation rental brands to OTAs, indicating greater price sensitivity and potential problems for companies like Airbnb and Vrbo, he adds. Airbnb recently announced that it was increase price transparency.
“People are very concerned about rising rates, which translates into more OTA bookings rather than direct bookings at hotels and vacation rental companies,” Corridore says.
“Even though the numbers are only declining in line with seasonal trends, I think consumers are clearly concerned about rates and the economy.”
“The decline is not something to be worried about. It’s consistent with historic travel trends,” Corridore says. “I think what we’re starting to see now in the numbers is that this trend is starting to return to more seasonal patterns.
“During the summer we had a very hot spell, and it was unbearable.”
All three companies saw a decline in web traffic in the third quarter ending September 30, 2022, “both from the second quarter and from the prior year,” Corridore says.
- Year-over-year, Airbnb’s web traffic rose 11% in October and fell 20% in the third quarter.
- Year-over-year, Expedia’s web traffic rose 19% in October and fell 19% in the third quarter.
- Year-over-year, Booking.com’s web traffic increased 12% in October and fell 21% in the third quarter.
“The recent [quarterly] a year-over-year decline could indicate a potential decline in travel demand beyond normal seasonal patterns,” says Corridore. Possible causes include the recent decline in consumer confidence amid high inflation and higher interest rates.
According to Corridore, when people spend more time on OTA websites, it means they are looking for a deal. Consumers are switching from vacation rental brands to OTAs, indicating greater price sensitivity and potential problems for companies like Airbnb and Vrbo, he adds. Airbnb recently announced that it was increase price transparency.
“People are very concerned about rising rates, which translates into more OTA bookings rather than direct bookings at hotels and vacation rental companies,” Corridore says.
“Even though the numbers are only declining in line with seasonal trends, I think consumers are clearly concerned about rates and the economy.”
“The accelerated adoption of digital technologies since the start of the pandemic has redefined the customer experience,” says Mundy.
“To ensure a seamless journey as travelers bring a new set of expectations,” she explains, “companies need to leverage the technologies that enable this new world.”
The increase in cross-border transactions adds a layer of complexity to digital payments. Relying on outdated payment infrastructure could prove costly for a business, according to Mundy.
“This is the experience consumers expect every time they make a purchase: they want it to be simple, transparent and secure, and they want choice in how they pay. From prepayment to the end of their trip, travelers will continue to adopt and use tools that reduce complexity.
In terms of destinations, Paris tops the global ranking for 2022, followed by London, according to eDreams ODIGEOit is Travel Year Report.
London was number one for travel searches in 2022, followed by Paris, Istanbul, New York and Barcelona.
The report reveals that 41% of all bookings worldwide were for trips of seven days or more. A quarter of all bookings were for trips of seven to 13 days, while 8% of all bookings were for trips of three weeks or longer.
Globally, travelers are waiting longer to book, with 45% of all bookings being made relatively last minute – two weeks or less before departure, up from 36% in 2021 – an increase of 25% .
EDreams notes that in 2022, other key habits included an increased interest in combining work travel with vacations and an increase in digital nomadism.
Looking ahead to 2023, the report forecasts that Paris will once again top the list of global bookings, followed by London, along with Barcelona, Bangkok and Madrid. Bangkok is expected to top the global search list next year, with London, Paris, New York and Tokyo rounding out the top five.
Dana Dunne, CEO of eDreams ODIGEO, said: “Our bookings data shows that short breaks are currently the most important, revealing that consumers are looking to enjoy the holidays as much as possible, with almost a third of trips only last three to four days.
“Our results also reveal that travelers were spontaneous with their bookings. … It underpins consumers’ desire to enjoy the day after being restricted in their travel plans for so long,” says Dunne.
The report covers the period from January 1 to October 31, 2022 and is based on data from major European markets and the United States.
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