The pandemic permanently altered global travellers’ attitudes and motivations. As travellers evolve, previous assumptions about their behaviours are becoming redundant. Euromonitor is using its Voice of the Consumer: Travel Survey 2023 to track the traveller of the future via eight new consumer segments. Leisure Seekers form the largest of these segments.
As the most price-conscious of Euromonitor’s traveller segments, Leisure Seekers are often dismissed as only being motivated by price. Euromonitor’s survey data reveal, however, that this segment has become much more complicated. Leisure Seekers want to balance cost savings with high-quality trips. Understanding what quality means to Leisure Seekers and how to communicate a value story to them is critical for travel companies that wish to target this segment.
Leisure Seekers and the cost-of-living crisis
The global cost-of-living crisis is a major factor in the post-pandemic importance of the Leisure Seeker segment. Just as travel restrictions lifted across many markets in 2022, inflation hit record-high levels in countries across the globe. The distribution of the cost-of-living crisis is reflected in the geographic distribution of Leisure Seekers. Six of the 10 markets with the highest penetration of Leisure Seekers are in Latin America, led by Colombia, Brazil and Mexico. Consumers across Latin America have struggled with inflation over the past two years, driving the high penetration of Leisure Seekers in the region.
Inflation cooled across most markets globally in 2023. That cooling, however, does not diminish the fact that travellers are facing significantly higher prices than they did before the pandemic, driven by increased costs of food, energy and labour.
Globally, the average price of an international trip was 24% higher in 2023 than in 2019, while a domestic trip was 12% higher over the same period
Source: Euromonitor International
Leisure Seekers are the travel segment most susceptible to these higher prices. The more these consumers spend on daily essentials like groceries, the less they can spend on discretionary travel purchases. With travel prices stubbornly high, Leisure Seekers may need to trade down their holiday, for example travelling domestically instead of internationally. To keep them engaged, travel companies must demonstrate value and savings to Leisure Seekers.
Challenging assumptions around price-conscious travellers
Conversation about price-conscious travellers can easily veer into a race to the bottom, where the only way to reach these travellers is to offer discounts while cutting services. Euromonitor’s survey data, however, reveal that Leisure Seekers will pay more for travel features that promote simplicity and efficiency. For example, Leisure Seekers are more than four times more likely to pay more for the ability to book package holidays and all-inclusive resorts than the global average. Package holidays are especially popular with this segment because they allow travellers to plan their budget upfront and take advantage of flexible payment options.
Seeking simplicity from travel reflects the pressure Leisure Seekers face in their everyday lives.
41% of Leisure Seekers say they are under constant pressure to get things done
Source: Euromonitor International Voice of the Consumer: Travel Survey 2023 (n=40,030)
Leisure Seekers are price-conscious, but they will pay more for simplicity. This is especially the case when simplicity is also seen as a way to save money, as is the case with all-inclusive resorts.
Major hotel companies including Hilton, Marriott and Hyatt have announced expansions of their all-inclusive portfolio over the past two years. Many of these resorts target the upscale or luxury segments, but Leisure Seekers are willing to trade up if these resorts’ value story is convincing.
Much of this all-inclusive expansion is occurring in Mexico and the Caribbean, targeting US travellers. The high penetration of Leisure Seekers in Latin America points to another opportunity with these resorts. Ensuring that new all-inclusive resorts target Latin American residents in addition to US residents will allow hotel companies to turn the high frequency of Latin American Leisure Seekers to their benefit.
Demonstrating value to Leisure Seekers
It is important for travel companies to tailor their messaging to individual traveller segments. For Leisure Seekers, this means communicating value. One area many travel companies have focused on for their value story is loyalty programmes. Travel companies use loyalty programmes to offer their customers discounts and to improve the quality of their experiences.
Leisure Seekers rank slightly below other segments for their preference to shop at merchants where they participate in a loyalty programme. As travel companies continue to invest in their loyalty programmes, they need to show loyalty’s value-add, both in cost savings and simplification of travel planning. If companies can communicate these benefits through their loyalty programmes, they will build stronger relationships with Leisure Seekers.
At the same time, travel companies must be careful of hidden fees. Leisure Seekers are highly price-conscious, and unexpected fees could easily deter them from booking their trips. Fee transparency is critical for Leisure Seekers. If travel companies clearly show what their fees are and how they improve a traveller’s experience, they will minimise the risk these fees pose to Leisure Seeker bookings.
Leisure Seekers: An opportunity not to be missed
Leisure Seekers do not receive the same amount of attention as other traveller segments. Segments like Luxury Seekers or Blended Travellers are often in the spotlight for being high spenders or challenging established business models. Euromonitor’s survey data, however, reveal that Leisure Seekers are a dynamic segment. Their size, coupled with how they balance price consciousness and value, makes them an important segment that travel companies must consider in their marketing efforts.
Learn more about our other traveller segments in our report, Elevating the New Luxury Travel Experience.