Energy and prices of goods are increasing daily, and it has an impact on businesses’ and families’ financials.
Businesses with higher costs tend to increase selling prices
and families try to cut expenses.
How will all this roll in the traveling and hospitality business?
What is Trivago reporting?
Having this scenario well clear, Trivago already addressed this reality in its Q3 report, foreseeing travelers’ behavior and its impact on the travel and hospitality business for the end of 2022 and the beginning of 2033
According to their Q3 report , they expect consumers to adjust their holidays and traveling plans to shorter periods, and more detail to price comparison that will lead to a more affordable holiday period.
” we saw first signs of consumers attempting to mitigate this effect through
searching for more affordable destinations and accommodations as well as by reducing the length of their
trip, especially in our Developed Europe segment. We believe that this trend is likely to continue in 2023
as inflation leads to consumers having lower real disposable income”
What is Edreams reporting?
Also on this topic, bloomberg shares an interview with not only CFO Matthias Tillmann but also edreams SFO Dana Dunne that also confirmed the trend for shorter periods and closer destinations
as a new reality.
What does it mean to businesses that have a link to the tourism industry?
What is the impact on the industry?
It means that it not only will have to adjust its value proposition but also increase the awareness of this value proposition to the market as consumers are more focused on that as well.
B2C – creating communication packages that can reinforce the business quality without burning your customer’s wallets.
Create solutions that can create great experiences with short traveling periods
B2B – Work with final clients on how you can help to maintain prices as competitive as possible.
