The coronavirus (COVID-19) crisis is unlike anything the travel industry has seen before—the speed at which it made its presence felt across the industry was staggering in its impact, travelmarketreport.com notes in the following article:
But, it is not going to last forever – and when things do start improving, the speed of that recovery could match the speed of the fallout, based on new research from marketing firm MMGY Global.
MMGY, in a note titled “Looking Past This Crisis – The Future State of Travel,” described its best case for a recovery in the travel market focuses, which is a four phase change in consumer mentality—fear, understanding, action and recovery.
According to Clayton Reid, CEO of MMGY Global, though we are now in the “fear phase” of the crisis, consumers are heading towards the understanding and action phases and “rational behavior will follow soon after that,” Reid said.
MMGY expects recovery mindsets to begin shifting 45 to 90 days after the peak coronavirus (COVID-19) infections. According to that timeline and MMGY research, there will be a pent-up demand for travel “unleashed in late Q2 across global economies.”
“Given the $2 trillion+ Congressional package in America and stimulus programs throughout Europe, suppliers will be in a more tenable situation to operate with less disruption,” Reid noted.
“And we know that travel confidence leads-out consumer confidence, therefore will be a leading indicator for the economy. Expect shoots of good news to emerge first with airlines then hotels, restaurants and cruise lines.”
Also, Reid told TMR, travel advisors will play a critical role in that recovery.
“As the travel industry fights to recover, third parties and travel agents will be increasingly important for travelers, both as a source of calm and information, but also as an important guide on rates and booking in what will be an increasingly competitive market. Agents will also play a key role in lifting the cruise industry as tens of thousands tell the story of cruising,” he pointed out.
Read more: Tornos