COVID-19 BUSINESS SUPPORTS HUB Consumer Insights & Trends for Tourism Businesses
Martina Kerr Bromley Head of Enterprise Development
Helen McDaid Manager, Enterprise Development
Jill de Azevedo Head of Consumer Planning and Insights
CONSUMER PLANNING AND INSIGHTS DOMESTIC CONSUMER INSIGHTS August 2020 Jill De Azevedo Head of Consumer Planning and Insights
CONSUMER PLANNING AND INSIGHTS
Consumers moods have shifted with the majority moving into an uncertain space based on recent events. MIXED INCREASE IN OVERSEAS POSTPONEMENT COMPLACENCY MESSAGING CASES COMPLIANCE VISITORS OF PHASE 4 WORKED Government Tourists from badly Uncertainty as to Rise in the number of Growing sense of communication is affected countries whether Phase 4 will daily cases since the complacency, people unclear , with the (USA in particular) are happen. The initial reopening of not being as vigilant, advice against foreign a worry. delay is seen as a restaurants/cafés and frustrations around travel at odds with the reminder that there travel is a cause for the lack of social Green List may be more concern. distancing and those challenges down the who continue to not line. wear face masks. CONSUMER PLANNING AND INSIGHTS 8
Despite being more likely to engage in the appropriate behaviours, confidence about their safety drops in middle aged consumers. Total Age Total 18-24 25-34 35-44 45-54 55-64 65+ ROI I am confident that I will stay safe by taking precautions 54% 48% 48% 47% 47% 44% and looking after 43% my hygiene I am worried about 23% 25% falling sick no 27% 27% 27% 29% 35% matter how much I take care of myself Total Age Total 18-24 25-34 35-44 45-54 55-64 65+ I don’t really pay 29% much attention to 24% 22% 21% 20% 17% 16% whether I adhere to the social distancing measures or best practice behaviours 51% 59% 64% 68% 69% 71% I am very careful to 76% adhere to all social distancing and other measures, like e.g. hygiene 9 CONSUMER PLANNING AND INSIGHTS
The majority of households have seen or expect to see, a negative impact on their disposable income. IOI ROI NI Coronavirus… Wave Wave Wave Wave Wave Wave Wave Wave Wave Wave Wave Wave 13 14 15 16 13 14 15 16 13 14 15 16 Coronavirus has already 37% 37% 35% 36% 40% 38% 35% 35% 29% 34% 33% 36% negatively impacted my household income Coronavirus has not yet 28% 30% 32% 31% 28% 29% 32% 33% 28% 32% 29% 26% impacted my household income but I expect it to in the future 24% 26% 26% 28% 34% 28% 32% 32% Coronavirus will have no impact 27% 27% 28% 29% on my household income 8% 6% 6% 5% 7% 6% 6% 4% 9% 7% 5% 6% Don’t know 10 CONSUMER PLANNING AND INSIGHTS
The need to live a regular life • Safety • Get away from it all • Finances • Family needs • Cautious • Experiences • Heightened sense of worry • #makeabreakforit • Impact of schools going back • Consumers are managing an inner dialogue between logic and their emotions. This causes a great deal of conflict and they have a need to be reassured that they are making the right choices. CONSUMER PLANNING AND INSIGHTS
Many are uncertain and anxious and are firmly in the ‘wait and see’ space. Word of mouth and anecdotal evidence will be key to decision making. And as a result remain very cautious about booking a holiday while Covid-19 is still present. They are waiting to see: • if there is an increase in the R number Uncertainty I am keeping my options open as regards a • if people are complying with rules while on holidays i.e. mask proposed trip in late August . If numbers of wearing, social distancing, cleanliness of hotels etc. new cases increase significantly, I will probably cancel. I also have friends who • how friends and family experienced their holiday in Ireland regarding are currently on a similar break and I safety and observations of other people’s behaviour intend to discuss their experience Uncertainty is leading many feeling anxious about their future travel plans regarding safety . • many ny plan an to coun unte teract act the uncer ertai taint nty y with th last t minu nute te trips ps and d Female, 55, Mullingar, booking g refu funda ndabl ble e hote tels travels with friends/as a couple • some me plan an to repl plac ace e a holiday ay this year ar with th day y trips ps CONSUMER PLANNING AND INSIGHTS 12
Our KPIs and Lead Indicators Confirm The Opportunity and The Need to Inspire Consumers To Take a Break
Domestic travel KPIs have plateaued. The importance of continuing to drive the message and opportunities around staycations becomes critical. 72% in the next ▪ 12 months Experience Consideration and Value 60% short break in ▪ the next 6 months 19% ▪ Penetration Intent 27% long break in the ▪ next 12 months Barriers and Booking Enablers 34% ▪ Shorter booking ▪ periods, 2 -3 weeks in advance CONSUMER PLANNING AND INSIGHTS
The balance of August as well as the claimed intent for September and October remain opportunities. Innovative value offers will be important to drive up demand for the shoulder season, alongside the key message of safety. IOI Wave 16 Wave Wave Short trip Long Trip 14 15 18% 10% July 2020 20% 24% ▼ ▼ August 2020 32% 30% 36% 28% September 27% 30% 29% 21% 2020 October 22% 21% 18% 17% 2020 November 11% 10% 12% 10% 2020 December 10% 8% 11% 15% 2020 Don’t know 8% 9% 8% 15% Couples over 45 more likely to go in Sept 2020 than other life stages 15 CONSUMER PLANNING AND INSIGHTS
Day trips still predominate in terms of what consumers are doing as part of a staycation as they offer opportunities to tap into a multitude of experiences. ROI Late June Mid-July Short Trip 47% 45% (up to 20km) 1 Day Trip 37% Day 25% ▼ (+20km) Short Break 19% 14% ▼ (1-3nights) Long Break 11% 9% (4+ nights) CONSUMER PLANNING AND INSIGHTS 16
Value for money and safety are the largest barriers to travel. IOI Wave Wave Wave 16 14 15 Accommodation costs 47% 49% 51% Safety and security specifically related to Covid-19 48% 40% ▼ 49% Value for money in the destination 42% 46% 42% Attractions to visit in the area 38% 37% 39% Safety related to Covid Availability of options for eating in / out 32% 26% 29% 19 skews to older Ease of travelling/distance to destination 31% 31% 29% couples and under Ease of travelling within destination 23% 24% 26% indexes for families. Accommodation choices 29% 29% 25% The range of outdoor activities in and around the location 17% 18% 20% Reviews about the place/accommodation in general 21% 22% 20% How popular or busy the location will be 14% 15% 15% The remoteness of the location 12% 12% 12% The range of indoor activities in and around the location 11% 11% 10% Availability of specific leisure activities (e.g. water sports, golf ) 12% 9% 10% Other 2% 3% 2% Don’t know 1% 2% 1% CONSUMER PLANNING AND INSIGHTS 17
Consumer Planning & Insights Hotels need to continue to focus on safety and the value equation.
Consumer Planning & Insights Those who prefer hotels are somewhat more likely to be older, although appeal spans all life-stages. These travelers are less likely to have booked as yet – due mainly to safety concerns .
Those who prefer hotels are looking for enjoyment and good food as an essential part of their holiday. Holiday motivations (outside of 51% taking a short break only 31% are couples 45+ yrs., traditional relax and escape) in Ireland, significantly higher significantly higher than total centre around fun and food: than total enjoy good food and drink 35% and to have fun (30%) CONSUMER PLANNING AND INSIGHTS 20
They are however, cautious when it comes to booking their trip. short break Long break IOI Prefer other accommodation types Prefer a Hotel for LB Prefer other accommodation Prefer a hotel for SB Yes booked some/all 37% 31% 43% 31% Not booked 43% 64% 35% 62% ▼ ▼ ▼ Don’t need to book 19% 4% ▼ 22% 6% 1% 1% 0 2% Don’t’ know CONSUMER PLANNING AND INSIGHTS 21
Deals that cut through and offer added value are noticed . Night in Carlow for friend's birthday: 20% off and hotel credits for afternoon tea/golf etc. One- • night stay, deluxe room, B&B, four course evening meal for €224 Night in Offaly for 2 with Breakfast included €89, Laois for 2 nights for €267 with dinner and • breakfast, pays to go off the beaten track Sign up to hotels email offers – very beneficial, it pays to shop around..... • Supervalu getawaybreaks , deals are great value, depends when you travel. • Google what’s on before arrival, events have separate websites offering discounts • “If you search for a hotel booking at different times of the day prices do vary. Everything is much more expensive right now. We are supposed to be staycating at home but the prices I am seeing would really turn you off.” (Male, 43, Dublin, Travels with Kids) CONSUMER PLANNING AND INSIGHTS 22
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