As Pandemic Concerns Fade, 76% of North Americans Plan To Travel Soon

Oracle Survey respondents are ready to spend more on hospitality perks beyond the room charges, hoteliers add new services to extend the customer experience

After more than a year in lockdown, 76% of consumers in North America plan to travel within the next six months. According to a new Oracle Hospitality survey, 24% of respondents in the US and Canada plan to travel immediately, 31% in the next one to three months, and 21% by the end of the year.

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People are largely traveling regionally, but venturing further from home. Domestic travel will account for 61% of travel plans (vs. 44% last year), 19% of people will stay within driving distance (vs. 47% last year), and 20% will go abroad (vs. 10% last year). Beaches (39%) and national parks (16%) are the favored destinations. No matter the location, 77% noted a COVID-19 vaccination is very or somewhat important in giving them the peace of mind to travel. In terms of getting on a plane, 18% do not feel safe doing so until they are fully vaccinated.

Last year, travelers cared most about navigating uncertainty with flexible hotel cancellation and refund policies. This year is all about the experience. To fend off competition from short-term property rentals, hoteliers are offering extended services from packaged excursions to new dining options. The majority of hotel executives surveyed (72%) are exploring opportunities for non-room revenue. And consumers are all in, with 68% noting they are very or somewhat interested in purchasing products or experiences from their hotel beyond the room.

“The pandemic has had a profound impact on the hospitality industry and continues to redefine how travel will look moving forward,” said Alex Alt, senior vice president and general manager, Oracle Hospitality. “The great news is that travel is on the rise and consumers are excited to get back out in the world. However, they have new and evolving expectations of what that experience will look like. Hoteliers are rising to the challenge to not only delight customers with a great stay, but also come up with services to boost revenue and compete with the growing short-term rental market.”

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Spending beyond the room
After a year of saving money on lost vacations, travelers expressed a willingness to spend for a great experience. Top services consumers have already or are interested in purchasing from a hotel include:

• 92% – food from a hotel restaurant.
• 82% – drinks from a hotel bar.
• 83% – food takeout or delivery.
• 79% – tour or activity.
• 68% – tickets to an event.
• 77% – an extended stay.
• 63% – wellness or fitness services.
• 53% – subscription membership to hotel services.
• 39% – utilizing a hotel as a temporary office space.

Pandemic priorities have become permanent practices
The survey shows that the features and amenities that became a necessity during the pandemic will be the norm and desire moving forward:

• 76% of hoteliers are providing contactless payment options, 36% self-service check-in, 59% digital messaging services to limit staff and guest interactions, and 42% smartphone-based room keys.
• 67% of travelers hope to see increased frequency of cleaning and disinfecting procedures remain the standard in hotels.
• 55% of consumers still want to see guest areas/public spaces arranged for social distancing.
• 11% of consumers plan to dine solely via room service to minimize contact. However, 30% plan to dine in hotel restaurants, and 48% expect to do both.

Redefining the Vacation
Being stuck at home has shifted consumer thinking around vacations and what is most critical in terms of space and amenities:

• Rentals on the Rise:
  • 54% of travelers said they plan to stay at a short-term rental property in the next twelve months.
  • 43% for the ability to stay socially distanced and minimize COVID-19 risk.
  • 57% chose the rental for the added privacy.
  • 59% chose a rental for the access to a kitchen.
• Hoteliers rethinking services to win over guests:
  • 59% of hotel executives agree that non-room revenue will represent a growing share of their annual revenue in the next five years. Nearly half (43%) said non-room sources of revenue could represent as much as a quarter of their hospitality business in 2021 and another 24% said it could be between 26-50% of revenue within five years.
  • 48% of hotel executives are upgrading community space amenities.
  • 46% are considering promoting hotel-only amenities such as restaurants, gyms and pools.
  • 26% are looking to add more live events and social activities.
  • 28% are considering upgrading in-room kitchens to better compete with short-term rentals.

Oracle Hospitality brings more than 40 years of experience in providing technology solutions to independent hoteliers, global and regional chains, gaming, and cruise lines. The report asked questions of consumers and hotel executives to better understand the key factors defining the post-pandemic hospitality marketplace. The survey highlighted what consumers are looking for in this fast-changing and highly competitive landscape and how hoteliers are adapting to welcome back travelers.