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<p>It has been an especially tough few years for the travel and tourism industry. It was, after all, ravaged by the pandemic’s shutdowns, travel restrictions and the resulting economic downturn. While tourism contributed $1.9 trillion to the global economy in 2021, above the $1.6 trillion in 2020, <a href="https://www.unwto.org/impact-assessment-of-the-covid-19-outbreak-on-international-tourism">it still lags</a> behind the pre-pandemic value of $3.5 trillion, according to the United Nations World Tourism Organization. However, with the threat of Covid waning and most travel restrictions lifted, the sector is <a href="https://www.travelpulse.com/news/features/travel-and-tourism-industry-recovering-to-pre-pandemic-levels.html">bouncing back</a> strongly and is slowly returning towards pre-pandemic levels.</p>
<h2>Impact of Inflation and Economic Uncertainty</h2>
<p>Recent marketing research of ours shows that just over 70% of Americans took or had plans to take a summer holiday in 2022. But while people’s vacation plans have begun to return to normal, their travel concerns have evolved beyond a fear of catching Covid. Travelers are now far more concerned about gas prices and extra expenses, such as food, transportation and souvenirs, as a result of skyrocketing inflation and economic uncertainty, than they are about Covid when going on vacation.</p>
<p>These concerns are significantly higher than worries about waiting times in airports, canceled flights and delayed flights despite widespread negative <a href="https://www.cnbc.com/2022/07/29/air-travel-chaos-pilots-describe-toxic-culture-and-airline-errors.html">news reports</a> about chaos at airports. However, this could be explained by the fact that just under 80% of those taking a vacation do so using a car with just under 38% taking an airplane.</p>
<p><img decoding="async" class="alignnone wp-image-35833 size-full" src="https://greenbook.org/mr/wp-content/uploads/2022/11/Goodbye-Covid-Hello-Economy-What-New-Research-on-Travel-Shows2.png" alt="" width="2240" height="1260"   /></p>
<h2>Domestic Vacations Dominate</h2>
<p>We found that domestic tourism accounted for almost 80% of vacations, with international trips making up just slightly over 20%. This is similar to post-pandemic levels. The popularity of international travel (despite the desire to travel after the lockdown) wanted, mostly likely dampened by the higher cost of foreign vacations. Those can be up to five-times more expensive, according to a report in the <a href="https://www.latimes.com/travel/deals/la-tr-travel-spending-20171024-story.html">L.A. Times</a>.</p>
<p>Now with inflation driving up the additional expenses of food, transportation, souvenirs, and so on, the overall cost of vacations is spiraling upwards. Add to this the uncertainty of delayed/canceled flights and the extra costs involved in rebooking or having to stay another night, and it is of little surprise that for many people staying local can be a less stressful alternative. This has seen ‘staycations’ form a significant proportion of our ‘domestic’ holiday plans, with over a quarter of respondents (26.2%) having taken vacation time off work to spend time alone at home or with friends.</p>
<p><img decoding="async" class="alignnone wp-image-35834 size-full" src="https://greenbook.org/mr/wp-content/uploads/2022/11/Goodbye-Covid-Hello-Economy-What-New-Research-on-Travel-Shows1.png" alt="" width="2240" height="1260"   /></p>
<h2>Spend on Travel Relatively Flat</h2>

        <div class="post-related-post">
            <h3>Related</h3>
            <h4><a href="https://www.greenbook.org/insights/5-upcoming-travel-trends-pushed-by-ux-innovation">5 Upcoming Travel Trends Pushed by UX Innovation</a></h4>
        </div>
    
<p>With the pandemic nearing an end, it was expected that consumers would spend big in their vacations. They were, after all, cooped up in multiple lockdowns for over two years. This has been labeled ‘revenge travel’, referring to the rise in the number of people wanting to make up for time and experiences lost to the pandemic.</p>
<p>But the thoughts of people spending on once-in-a-lifetime vacations to avenge the time they lost traveling to Corona does not correlate with the findings of our market research. Only just under 13% of respondents said they planned to spend more on their vacation this year compared to previous years. While just over half said they would spend the same, almost 37% said they would be budgeting less.</p>
<p>So, while people’s vacation plans are starting to return to normal, deteriorating economic conditions could prevent a return to pre-covid normality in the short-term. Inflation has already begun to impact the travel and tourism spending patterns of lower-income consumers. This negative influence could gain momentum and start affecting more affluent consumer segments, highlighting the vulnerability sectors like travel and tourism are currently facing.</p>
<h2>Prices Set to Increase in 2023</h2>
<p>With rising energy costs and inflation, and the war in Ukraine, set to continue into 2023, prices in the travel sector are forecast to increase. Flight and hotel prices are expected to rise by more than 8% year-on-year in 2023, according to <a href="https://travelweekly.co.uk/news/air/global-flight-and-hotel-prices-forecast-to-rise-next-year">data</a> from CWT and the Global Business Travel Association (GBTA). This follows an increase of approximately 48.5% in air fares this year compared to last, together with an 18.5% rise in hotel rates and a 7.3% increase in car rental charges.</p>
<p>So, with rising costs and labor shortages still impacting the travel sector, paired with the above insights and analytics, two factors are influencing our vacation picking strategy for next year: our passion to travel and the size of our budget.</p>


Goodbye Covid, Hello Economy: New Research on Travel

<p>Even though they range from only age 7 to 22, Gen Z already accounts for 32% of the world’s population and wields an <a href="https://adage.com/article/cmo-strategy/gen-z-label-less-generation-and-future-data/2341291">estimated spending power of $142bn</a>. As their influence and economic power grow, brands are not surprisingly desperate to better understand how they can appeal to Gen Z.</p>
<p>As the first true digital natives, having been exposed to smartphones since early youth, social media plays a central role in the day-to-day lives of Gen Z. So, <a href="https://www.joyventures.com">Joy Ventures</a> joined forces with <a href="https://www.greenbook.org/company/GetWizer">getWizer</a> to use its automated research platform to get to grips with Gen Z and its use of social media.</p>
<p>YouTube and Instagram rank the highest when Gen Zers are asked what social media platforms they are currently using, followed by Snapchat and then TikTok.</p>
<div id="attachment_30024" style="width: 869px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-30024" decoding="async" class="wp-image-30024 size-full" src="https://greenbook.org/mr/wp-content/uploads/2021/08/Screen-Shot-2021-08-17-at-6.26.50-AM.png" alt="Social Media Platform - Total" width="859" height="546"   /><p id="caption-attachment-30024" class="wp-caption-text">JOY VENTURES</p></div>
<h2>Waking up with Snapchat, going to sleep with TikTok</h2>
<p>But be warned before you jump to conclusions about Gen Z’s usage of social media. It is not a straightforward relationship and varies depending on their age, gender, time of day, and mood.</p>
<p>So while YouTube leads the way as the platform most are active on, it is not their favorite one. This title is reserved for Instagram, which wins as the platform they use the most, followed in second place by TikTok.</p>
<p>When gender is taken into account, however, TikTok shoots to number one for girls, while YouTube and Instagram tie in first place for boys.</p>
<div id="attachment_30025" style="width: 1031px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-30025" decoding="async" class="wp-image-30025 size-full" src="https://greenbook.org/mr/wp-content/uploads/2021/08/Screen-Shot-2021-08-17-at-6.30.10-AM.png" alt="Social Media Platform - Most Used - Gender" width="1021" height="594"   /><p id="caption-attachment-30025" class="wp-caption-text">JOY VENTURES</p></div>
<p>Age also plays a major role, with TikTok ranking as the leading platform for those aged 15-17. Instagram is favoured most by those aged between 18-20, while Facebook leads the way for the 21-24 age group.</p>
<p>Interestingly, Snapchat is the one most Gen Zers wake up to in the morning, while TikTok is the app they go to sleep with. Morning usage, however, sees little variation between the age groups, but those aged 17-20 are most likely to use social media immediately before they fall asleep.</p>
<p>Highlighting the addictive nature of social media, 20% of respondents say they spend five hours or more on TikTok while 18% spend a similar amount of time on YouTube. Gen Z finds these most addictive platforms in terms of the time spent using them every day.</p>
<p>&nbsp;</p>
<div id="attachment_30026" style="width: 1013px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-30026" decoding="async" class="wp-image-30026 size-full" src="https://greenbook.org/mr/wp-content/uploads/2021/08/Screen-Shot-2021-08-17-at-6.33.52-AM.png" alt="Social Media Platform — TIME SPENT — Total " width="1003" height="590"   /><p id="caption-attachment-30026" class="wp-caption-text">JOY VENTURES</p></div>

        <div class="post-related-post">
            <h3>Related</h3>
            <h4><a href="https://www.greenbook.org/insights/lets-talk-about-generation-z-social-media-activism-and-consumerism">Let’s Talk About Generation Z: Social Media, Activism and Consumerism</a></h4>
        </div>
    
<p>Only 21% set clearly defined time limits for their social media usage, whereas 34% use the platforms with no regard for how long they spend using them. Interestingly, 26% of boys set a time limit, whereas only 17% of girls do likewise.</p>
<p>Gen Z’s interaction with social media platforms also satisfies various needs. Instagram, for example, is the number one destination for Gen Zers when it comes to connecting and interacting with one another. YouTube, on the other hand, is the go-to platform when they are seeking information or just want to pass time &#8211; if they are bored, sad, or alone.</p>
<h2>A highly diverse generation</h2>
<p>When it comes to these differences, <a href="https://www.pewresearch.org/social-trends/2020/05/14/on-the-cusp-of-adulthood-and-facing-an-uncertain-future-what-we-know-about-gen-z-so-far-2/">Pew Research</a><a href="https://www.pewresearch.org/social-trends/2020/05/14/on-the-cusp-of-adulthood-and-facing-an-uncertain-future-what-we-know-about-gen-z-so-far-2/">,</a> the North American think-tank, captured the complexity of Gen Z best when it described them as:</p>
<blockquote><p>&#8220;More racially and ethnically diverse than any previous generation, and they are on track to be the most well-educated generation yet.&#8221;</p></blockquote>


20% of Gen Z Spends More Than 5 Hours Every Day on TikTok

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