Changes in Travel for 2023

Changes in Travel for 2023

We know that the only constant in the world is change. As we come out of the world pandemic, we am starting to see important and significant changes in the travel industry based on what they learned during those 12-18 months. Business exists to create a profit for the shareholders by creating system efficiencies. We are seeing the groundwork being laid for new efficiencies throughout the travel industry.

Airlines

The number of airline seats on sale worldwide in January 2023 are at 94% of pre-pandemic. One of the new changes for airlines are changes in filling seats. 

I just received an email from the AirAsia loyalty club. We fly exclusively with Air Asia in Southeast Asia as they have the highest safety rating that airlines can receive. Air Asia is trying out a subscription model for seats. Membership costs $300 for unlimited flights for a year. They fly throughout Southeast Asia including Singapore, Thailand, Vietnam, Cambodia, Philippines and more. 

For an additional $500 a year, you can also go to Australia, India, Maldives, Japan and Korea. For budget slow travellers like us, it is a great deal. For AirAsia they are filling all their seats and selling the brand to their guests resulting in future sales.

Accommodations

We are seeing changes in accommodator human resources that will result in an increase of room sales.  The Nuevo Vallarta Vidanta Resort where we stayed for a week in April 2022, kept all of their staff employed during the shutdown. And they kept their entire staff during the subsequent massive drop in guests for the pandemic year of 2020-2021.

 As a result, the staff are the best ambassadors the company could hope for in selling their brand to guests. The resulting high calibre guest care has people booking into the resort for their next holiday. As a direct result of the fantastic treatment we experienced at the resort, we have booked for three weeks this winter.

Airbnb did a complete pivot in the summer of 2022 on their rental offerings after they found out that over 50% of their bookings are for a month or more. Long term sales are highlighted offering substantial discounts to nightly and weekly rentals. They created new categories where you can search for long term stays, outstanding pools, outstanding designed homes and a huge variety of other categories.

I for one have found this refreshing as it signals a change for the better in vacation rentals. I have been saying for a long time that with the explosion of short term rental market there are many who are acting out of greed. They are trying to make a quick buck without any background in hospitality or interest in offering a superb or at least a reasonable rental experience. In some cases, people are paying 5-Star prices for 1-Star accommodations and experience. 

Unfortunately, there are many new travellers that fall for the promises on the page and pay the exorbitant prices only to be disappointed. Feeling cheated and getting a subpar experience. It is a case of buyer beware.

I am hoping that the vacation rental market matures quickly as more and more upstart software booking companies come on-line and more and more accommodations are placed on the short term rental market. The software booking competition and the glut of rental accommodations should be good for the budget slow traveller as the prices settle at a fair and reasonable price over the next five years although we will go through a period of transition that will be difficult for budget travellers.

This winter we saw first hand how the prices of rental accommodations has changed over the past ten years. Ten years ago, our monthly accommodation cost was $1500 a month when we travelled, in 2023 it has more than doubled to $3500 a month for the same accommodation in places like Mexico. Places we rented for $2000 a month in Hawaii are now $10,000. These high priced locations are catering to the 7-10 day vacationer who save up for a year or more to take the big vacation at whatever the cost. 

We were all set to go to Panama for two months this year for February and March. We rented a 4 bedroom house with a huge pool on an acre of landscaped tropical foliage for $2000 a month. At the last minute our house rental fell through and we were scrambling to find a place to rent. As we were already booked for a week at the Nuevo Vallarta Vidanta in Puerto Vallarta we decided to stay an extra two months in Puerto Vallarta to save on the $2000 airfare. 

Unfortunately, as it was within three months of going, which is last minute for booking accommodations in hot spots at high season, all the ideal places were rented. What was left were the units that no one wanted, last minute cancellations and new units just coming on stream. It took me a month of hard looking to find suitable accommodations for two months. We ended up with four weeks in two resorts and a month split between two condos.

Puerto Vallarta Explodes

Puerto Vallarta has exploded with building the last five years. It has been identified as the second best place in the world to retire in several magazines and people are flocking there, especially from the US. I will give you an update on Puerto Vallarta on my next blog.

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