Richmond, Virginia, May 3, 2022 – The pandemic has led to a rise in the eco-conscious consumer with a greater appetite for environmentally friendly journeys, according to trends identified by travel insurance provider Allianz Partners. As we enter a post-pandemic travel era, travelers are beginning to think about the environmental impact of their journeys and taking more responsibility for their own personal impact on the environmenti. The renewed focus on greener journeys was a key takeaway that emerged from this year’s Allianz Partners Global Travel Summit.
The virtual Allianz Partners three-day travel summit included more than 1,000 attendees, and focused on emerging trends in the travel industry as the world emerges from the global pandemic and faces a new set of challenges as a result of geo-political and economic uncertainty.
The Rise of Ethical Travel
Allianz Partners partnered with global consumer trends agency Foresight Factory and other industry experts to explore current and upcoming trends impacting travel, allowing Allianz Partners to stay ahead of the curve in terms of meeting the evolving needs of customers around the world.
The trends presented at the Summit were based on extensive research carried out by both Foresight Factory and Allianz Partners’ Customer Lab research which found that it’s now – more than ever – socially desirable to put the planet first and make more ethical, sustainable, and greener choices. This was supported by research findings such as that nearly six in ten (59%) Family Millennials, aged 26 – 40, say they will pay more attention to the environmental impact of their travel in the future, compared to pre-pandemicii. Additionally, over seven in ten consumers in Great Britain, Germany, and the USA say that sustainability filters on travel sites would help them make better choices and to live more sustainablyiii.
The social ethics of traveling is weighing on the minds of travelers as they consider the various eco-conscious travel options available to them. Over half (55%) of Family Millennials aged 26-40 surveyed are intending to travel less in the futureiv, further reducing their environmental footprint. The slow travel trend, which positions the journey itself as a holiday destination or activity, also promotes more sustainable holiday options like train travel or travel by recreational vehicle (e.g. motorhome, camper van, coach, caravan).
Speaking from the Summit, Joe Mason, Chief Marketing Officer – Travel at Allianz Partners, said, “At this year’s event, we heard about the emerging trends in the travel industry, and it’s clear that a strong travel recovery is being faced with a new set of challenges. Economic vitality, geo-political unrest, and a rising cost of living – coupled with a desire to make sustainable and eco-friendly choices –all will have a lasting impact on our industry.
“The need to adapt to this new travel landscape has never been more important and is a priority for us at Allianz Partners. We are helping our customers and partners navigate through these challenging times and are focused on turning travel insurance into full end-to-end travel protection, and we’re excited about what the future holds.”
Macroeconomic Conditions
The travel industry is not immune to economic forces. Another dominant topic from the Summit pointed to the impact of economic conditions on confidence in travel. Where people travel, how long they travel, and how much they spend is directly impacted by inflation, rising energy costs, and a general rise in cost of living.
Households are feeling the direct impact of the geo-political unrest with supply chain issues causing major economic upheaval due to a surge in gas and food prices. For the travel industry, it is having a knock-on effect on the cost of travel, with long-haul flights, in particular, becoming increasingly expensive. However, it also is impacting prices for travel-related expenditures such as hotels and restaurants that may pass these price hikes on to consumers.
Ultimately, the risk is that leisure travel may no longer be seen as a priority by consumers who have limited surplus income each month and instead be considered a luxury they cannot afford.
Business Travel versus Sustainability Targets
The summit also found that a reduction in business travel has reduced costs for companies and helped them to lower their carbon emissions which has helped businesses meet sustainability targets. However, many employees long for face-to-face interaction with their clients and customers. Businesses are now at a crossroads between meeting sustainability targets and employee desires. As employees get back into the office, the correlation between a desire for and appetite for business travel has increased with some companies using business travel for recruitment and retention.
The summit found that the rise of the eco-conscious consumer following the Covid-19 pandemic, coupled with a turbulent geo-political landscape and the transformation of business travel, will create some headwinds for an otherwise robust travel recovery.
Allianz Partners offers travel insurance through leading travel agents, online travel agencies, hotel companies, cruise lines, directly to consumers and through most major U.S. airlines. For more information, please visit: www.allianztravelinsurance.com.
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FINN Partners
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