For a period of more than 100 days, travel professionals around the world have been striving to make sense of the ever-changing global conversation surrounding COVID-19.
ILTM has no crystal ball, but whilst we can’t predict the future, our unique and close ties with buyers from around the globe gives us the next best thing: insight and data.
Throughout this crisis, buyers, armed with industry experience and knowledge of past sector upheavals, have been talking to their clients constantly. Keen to tap into this unrivalled knowledge source, ILTM created the 2020 Buyer Research Survey and want to share with you the optimistic, yet realistic, findings therein.
Current Booking Behaviours
The ILTM Buyer Research Survey ran between the 4th-18th June 2020 and went out to over 4,000 buyers from shows within the ILTM Collection, including Cannes, North America, Asia Pacific, China and Africa. The response was overwhelming and comprised of a majority of buyers in senior positions as private travel designers (35%) or within retail travel agencies (34%), among many others.
The crux of this research was to establish a number of core elements. Firstly, ILTM were keen to gather insight into the current needs and behaviours of the globe’s wealthy travellers. Additionally, we wanted to establish any fundamental barriers when it came to the idea of travelling again, and the changes in travel preferences that may be a side-effect of this. To that aim, one of our pivotal questions was determining the current demand for travel during this pandemic. Somewhat surprisingly, the volume of bookings buyers had received since the start of the outbreak was not as bleak as perhaps feared. It was found that 6 out of 10 buyers (64%) have received bookings since the start of the COVID-19 crisis, a result that was most prevalent in the Americas, Russia and Europe.
However, these figures don’t imply that those who are travelling are jumping in with both feet just yet. Of those clients willing to travel by air, for example, the majority (39%) are travelling domestically with 27% taking long-haul flights. Whilst this still represents a huge hit to revenues, it is certainly a step in the right direction and becomes increasingly positive when we apply time frames to when these bookings will take place.
Notably, it was revealed that just over half of the bookings made (52%) are taking place in less than 3 months’ time. The next increment of which at 39% are occurring in 3 to less than 6 months’ time. Despite the ongoing uncertainty and a reluctance of many to travel internationally as of yet, this swift return to travelling at all is undoubtedly a relief and it is not the only sign of latent demand that the industry is displaying.
Popular Destinations And Shifting Travel Preferences Among HNWI
When looking at the destinations chosen by clients, these too show a slow return to some key areas. European travellers, for example, are especially confident, with locations such as Greece, France, Spain, Italy and the Maldives all being among the booked choices.
For clients of APAC buyers, Australia, China, New Zealand, Europe and Africa were the top picks. When we consider the type of getaways that are being booked, the data continues to show some clear themes, with beach escape holidays being the overall most common type at almost 70% across all buyer regions save for APAC, possibly due to them having this type of landscape readily available domestically. Unsurprisingly too, family holidays were the second most prominent type of trip being booked at 55% and private villa trips were next in line in this data set at 42%. In light of the lockdown and the separation from family that we have had to endure, the surge in family bookings shows the key role that our industry will play in bringing loved ones back together.
Of course, what’s important to note here is that despite travel being a complicated business right now, we are not seeing a big impact on the desire to travel and this is supported time and again by the buyer research. As we’ve seen, clients are still willing and wanting to fly, with even a significant number willing to travel long-haul. For those who are still uneasy though, the response has for the most part not been to halt travel but to instead adapt and in many cases move to more private means. Of those buyers who have had bookings since the start of the pandemic, it was reported that 59% of clients were considering cars as an alternative mode of transport. It was also found that across the ILTM collection of buyers, those with bookings also reported that 22% of clients were considering other forms of travel which included private options such as jets, planes and yachts among others.
The Barriers To Travel And The Return Of Bookings
To further analyse these behaviours, we asked buyers to outline what they felt were the key barriers for clients to overcome in terms of travelling and unsurprisingly, health concerns and quarantine rules emerged equally at 64% as being the core reasons that many clients felt unable or unwilling to travel.
In spite of the barriers highlighted by buyers being seemingly hard to navigate or influence, the general optimism from buyers, even those who had not yet received any bookings, was significant. For example, when buyers who had yet to receive any bookings were asked to make an educated estimation on when they expect their clients to start travelling again, a huge 72% anticipate a climb in bookings in 3-9 months. When this data is drilled-down into, and reflective of the overall numbers, Asia Pacific buyers are split between thinking this change will be between 3-6 months and 6-9 months, whereas half of the European buyers are certain bookings will have an upsurge in 3-6 months.
By comparison, buyers from the Middle East are predicting things to happen much sooner, with 42% foreseeing more bookings in less than 3 months. Interestingly, 40% of North American buyers who have not had bookings are estimating a 6-9 month window for increased bookings despite North American buyers as a whole being graced with the most number of bookings in total.
These relatively short-term turnaround estimations reveal a confidence that the industry couldn’t imagine back in March. In a similar vein, when asked to estimate just when they thought the luxury travel industry would be able to rebuild there was overwhelming positivity. 50% of buyers from all of the ILTM Collection shows expected the luxury travel industry to return within a year. A further 38% expect this recovery to take up to two years, with Chinese buyers the most likely to state the longer time frame. European buyers, in particular, revealed a high confidence level at 51% predicting a sub-two-year time frame.
What the Industry Needs and the Journey Ahead
All of this culminates in something ILTM have firmly believed throughout: even in what can feel like the darkest hour for the luxury travel industry, buyers from across the entire ILTM Collection are telling us that while bookings have slowed and are less profitable, the fundamental desire to travel has not. Travellers are not only booking trips amid the ongoing crisis (52% within the next 3 months), but over 50% of buyers are also confident that the luxury travel industry will have returned within a year.
Of course, this is a global view and therefore the results don’t always account for the distinct and often stark regional differences that we are all still experiencing. Many of our colleagues and clients are operating within regions that do not yet feel the light at the end of the tunnel. But, with our flagship event ILTM in Cannes on the horizon in 6 months’ time, it seemed more important than ever to release these figures to meet the clear demand and desire of buyers and their clients the world over.
With the right set of circumstances ahead of us, we now believe it will be possible to deliver the show that the industry needs at the time the industry needs it this coming December.
As one buyer put it: “I am honestly hoping (and other partners I talked to feel the same) that ILTM in Cannes will happen as it is one of the most important places to meet with partners. We are very keen to have the possibility to connect and meet in person again after such a long time”.—2019 ILTM Cannes Buyer, Europe
ILTM Cannes will be the key to kick-starting that travel come December and for that reason, we are delighted to be beginning the journey towards our 2020 event. Our hope for Cannes 2020 is not only that it meets the ever-growing demand but also provides some much-needed respite to what has been a tough year. You will be hearing from us again very soon.
The ILTM team look forward to seeing you there.
With the world of wellness talking down meat for both body and world health, it’s a trend well worth taking note of 39 percent of urban Indonesians and 34 percent of urban Thais increased consumption of non-animal protein compared to the year before and 24 percent of urban Indonesians plan to follow a plant-based diet this year.1
What’s the most important thing we need to do in order to ensure that what we’re communicating—whether a sales pitch, a speech, or a presentation—will effectively reach our audience?
Kick off your foodie adventure at the Chinatown Complex Market & Food Centre, the largest hawker centre in Singapore. With over 200 stalls under one roof, you’ll get a crash course on Singapore’s various cultures through a diverse palate. For world-class Singaporean food, head to Hjh Maimunah and be like a local, enjoying village-style cuisine. The nasi padang (rice with a medley of Malay dishes) served here is one of the best on the island. For something more upmarket, the world’s first Michelin-starred Peranakan restaurant, Candlenut takes a contemporary yet authentic approach to the traditional Straits-Chinese cuisine. Arguably the best Peranakan restaurant in town, Chef Malcolm Lee has elevated his grandmother’s old recipes to Michelin-starred fame.
Stroll down Orchard Road, lauded as one of the best places to shop in Singapore. Spanning almost 2.2km, this bustling belt is a must-visit for shopaholics with its huge range of retail, dining and entertainment choices. Since opening in 2010, The Shoppes at Marina Bay Sands has amassed the largest collection of luxury labels under one roof in the region, with more than 170 luxury and premium brands. Explore VivoCity, the largest mall in Singapore. It features a plethora of shopping options as well as stores unique to VivoCity. Expect vast, open-air spaces for waterfront strolls, and find an array of amenities that are more than just shops.
Set on Singapore’s vibrant Robertson Quay, The Warehouse Hotel Lobby Bar is a swish boutique serving craft cocktails reflecting the three eras of the property’s past; a spice trade warehouse, an illegal distillery and a warehouse disco. Nearby, Marcello at the InterContinental Robertson Quay is Singapore’s first modern Italian cocktail bar, inspired by the early to mid-20th century. An institution in the making, Marcello houses the largest selection of Amari in Southeast Asia. Located on Andaz’s 39th floor is the rooftop bar, Mr Stork. Catch stunning, panoramic views of the Singapore skyline while relaxing in the tepee huts amidst lush greenery.
Southeast Asia’s first Hollywood movie theme park, Universal Studios Singapore™, features an enticing selection of attractions, rides and entertainment for families and thrill seekers. 18 out of the 24 movie-themed rides here were designed just for the Singapore Park. Not for those with a fear of heights, the Mega Adventure Park at Sentosa is all zip-lines and high-element activities. The main attraction at the park is the Mega Zip itself, a 450m zip-line. At Ultimate Drive, you can jump in a Ferrari F430 Spider or Lamborghini Gallardo Spyder and experience the thrill of driving on the official FORMULA ONE Marina Bay Street Circuit.
Doubling as a 19th-century nation monument, the Singapore Art Museum has built up one of the most important collections of contemporary art from the region. Little India is one of Singapore’s most vibrant districts. As you walk down Serangoon Road and neighbouring streets, explore their mix of temples, delicious food and unique shops. With its massive golden domes and huge prayer hall, Sultan Mosque is well worth the visit. Masjid Sultan, as it is also known, is a prominent mosque located in historic Kampong Glam and is one of the country’s most impressive religious buildings.
“If a property or destination has great environmental practices, this is something that clients will use to validate a decision to stay somewhere, after they’ve already decided, rather than it be a driving factor in their decision making.”
“What started as a movement of individuals has evolved into an awareness by the travel industry. The industry itself is now leading the education of many in terms of sustainability.”
“The impact tourism has had on our environment can’t be ignored. As the global population increases it’s getting worse; however, travel innovators are addressing the issue. In areas where conservation and sustainability is priority, both financial and societal resources are gaining speed, as seen in Africa with wildlife and landscape conservation. Conversely, in Bangladesh and India—areas of dense population and pollution—it’s challenging to even grasp where to start.”
“I believe we all want to be and are in support of helping our local communities and world resources. However, I have not personally felt that this is a primary area that comes up in questioning or is spoken about when making a decision. I feel that there are many that are more socially aware, and perhaps it is our part as advisors to help be advocates as this is the future of our planet. I think most clients are pleased to see this once they are there but do not seek this out.”
“Truthfully, for personal vacation travel, people are going to go where they most desire, in the best manner possible, and spend their money where they want. While most may be socially aware and ecologically minded, it does not always play into how some spend their dollars on vacation, especially for experienced travellers. They want the companies they stay with to all be as eco-friendly as possible as an expectation of being a good corporate, global citizen. However, their experience shouldn’t feel less luxe just to be green.”
“The older generations tend not to think about it so much, regardless of their political affiliations. And because of that, you don’t feel high-end luxury leading the charge on sustainability. At lifestyle hotels that cater to Millennials, you feel it everywhere – from the type of take-away plates and items they provide, to the plastic water bottles replaced by reusable bottles and filling stations… I think more travellers would actually like to give their time philanthropically when they travel – beach clean-up or building houses etc., they just don’t know where to find those offerings.”
“Millennials are more typically aware of the environment and sustainability. The new 
“Luxury resorts are paying more attention. For example, 
