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  • Global Travel Industry Poised for 14% Year-on-Year Growth in 2024: Criteo’s Travel Insights

    Published on May 23, 2024

     Criteo (NASDAQ: CRTO), the commerce media company, today announced the findings from its travel report, unveiling key trends and consumer behaviors shaping the global travel industry based on the insights from the first half of 2024. According to the report, the 2024 travel industry outlook remains promising, with a projected year-on-year growth of 14%, surpassing pre-pandemic levels and setting a steady projected growth path of 3.5% annually. Online bookings are expected to dominate, reaching a 76% share by 2028.

    A standout trend highlighted in the report is the significant regional variations in air and accommodation bookings. Global air travel has made substantial strides, with major regions witnessing a 10-14% surge in air travel bookings in Q1 2024 compared to the same period last year. The EMEA region leads the growth with a 14% increase, closely trailed by APAC with a 13% increase. Notably, March contributed significantly to the Q1 gains seen in APAC, with year-on-year bookings for March 2024 soaring by an impressive 20%. Accommodation booking trends also showcase regional nuances, with APAC travelers spending the most time on these bookings, often engaging in a 6-week booking journey to carefully evaluate their options.

    In terms of booking behaviors, the findings of the report suggest that convenience and ease of use remain key for travelers, with more than half opting to book all travel services via a single platform. Simultaneously, travel operators leveraging app technology have witnessed a noteworthy 3-point surge in app bookings on a year-over-year basis, accompanied by a 4-point growth in the proportion of mobile bookings. In the past six months, AI tools have seen a rise in acceptance among travelers, showcasing their effectiveness in offering recommendations for dining experiences and destination inspirations.

    Spending patterns and deciding factors of travel are evolving, with approximately a quarter of global travelers reporting spending more on travel in the last six months, representing a significant jump in some regions compared to Q1 2023. Additionally, climate considerations are increasingly influencing travel decisions, as evidenced by 41% of travelers seeking cooler destinations. The report also reveals that 57% of global travelers have shown interest in traveling to regions where the climate significantly differs from their home environment. These findings highlight that weather conditions play an important role in travelers’ planning and final travel booking decisions. Positive reviews also emerged as a decisive factor, with two-thirds of travelers placing high importance on this aspect during their decision-making process. Additionally, cost considerations hold significant weight, as 38% of travelers indicated a willingness to adjust their travel schedules to secure better deals.

    A significant portion of global travelers are demonstrating a keen interest in minimizing their carbon footprint during their travels. Notably, 34% are actively seeking sustainable travel choices, utilizing filters like “low emissions” when securing flights or car rental bookings.

    For travel companies that have integrated low-emission travel alternatives into their portfolio, there is notable success stemming from acquisition campaigns centered around promoting sustainable offers, which demonstrates the need for travel companies to adapt strategies in a dynamic market, balancing growth aspirations with cost challenges and evolving consumer preferences. Harnessing insights and digital capabilities will be crucial for staying competitive in the evolving travel landscape, and Criteo will continue to guide travel companies to make informed decisions.

    Methodology

    Criteo employed a comprehensive methodology to gain insights into travel industry trends, involving both surveys and analysis of organic data from Criteo’s hundreds of global travel partners. A survey was conducted among 10,000 users in US, UK, Japan, South Korea, France and Germany, while online bookings from air travel and hotel providers were analyzed globally for Q1 2024 in comparison to Q1 2023.

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