Will Inflation Affect Revenge Travel? This Industry Group Weighs In
With pandemic restrictions easing and people growing more and more confident to travel once again, will inflation affect travel plans?
Did you know that, based on data from Airbnb, group travel spiked by nearly 180% year-on-year in 2022? In fact, the Department of Tourism (DOT) already recorded 3,000,079 international visitor arrivals from the beginning of 2023 until July 19. And the target for international visitor arrivals for the whole year was previously set at 4.8 million, which means the country already reached 62% of its target.
These numbers show that travel is in full swing again after years spent dealing with a pandemic. But as many travelers set their sights on doing a lot of revenge traveling, will the rising inflation affect all these travel plans?
The Philippine Tour Operators Association (PHILTOA) does not think so.
Cheaper Options are the Answer
In fact, according to PHILTOA President Fe Abling-Yu, the pandemic plays a big role in people’s decision to travel once more. “Yung nangyaring COVID, may kinalaman sa spending habit ngayon ng mga tao na ‘bakit kailangan pa natin hintayin kung ano pagkakataon’, ‘bakit hindi na lang tayo mag travel while kaya pa natin,’” she said during the Philippine Travel Mart media launch.
[Translation: “COVID has something to do with the spending habit of people today that goes along the lines of ‘why do we have to wait for an opportunity,’ ‘why don’t we just travel now while we still can.’”]
The PHILTOA president has pointed out that tourists can just opt for cheaper options when making plans for their travels. She likewise has noted that tour operators and agencies are already offering alternatives and value-for-money options that will appeal to tourists.
How Businesses Can Take Advantage of Revenge Travel
Given that prices are skyrocketing thanks to inflation, having more affordable options is the name of the game today, especially in the tourism industry.
The accommodations sector, for example, can provide more budget-friendly options such as homestays and group stay packages. Interested entrepreneurs can even use this as an opportunity to put up budget hotels that cater to tourists looking for affordable rates.
The tourism industry can also benefit from revenge travel by offering specific experiences that tourists are looking for. According to Tourism Promotions Board (TPB) COO Maria Margarita Nograles has said that the government plans to highlight several travel themes this year.
“We are looking at health and wellness. We are also looking at educational tours,” said Nograles. “And we are looking to more meaningful and purposeful experiences coming to the Philippines.”
Businesses can take advantage of this by providing products and services that are geared towards the aforementioned themes. For example, entrepreneurs can look into more options geared towards health and wellness tourism, such as spas and wellness resorts.