2023 Travel Industry Info

Expedia Group, the parent company of Vrbo, recently released the 2023 Traveler Value Index, which is a survey of factors impacting today’s traveler preferences, from the impact of COVID to inflation concerns. This comprehensive survey included 11,000 Travelers / Consumers and 1,100 industry professionals in 11 major markets.

Below you will find some key points as it relates specifically to the vacation rental industry and figures specific to our area.

Top traveler priorities for 2023 in order of importance:

1 Pricing

2 The ability to get a full refund if necessary

3 Flexible cancellation policy

60% of travelers say getting the right price is the most important feature

One in two consumers say inflation will impact their upcoming travel plans

Lodging dollars, as reported by Gulf Shores & Orange Beach Tourism:

2019: 589 million

2020: 541 million

2021: 828 million

2022: 880 million

Throughout 2020 and 2021, travelers valued their personal health and safety above all else when booking travel. However, a noticeable shift occurred once vaccines were widely available. While cleanliness standards will always be important to travelers, it is no longer the most important consideration to them. In the 2023 Traveler Value Index when consumers ranked in their top three most important travel considerations, enhanced cleaning methods does not appear on the list, whereas it was a top three consideration across all areas of travel in 2022.

While COVID-19 still weighs on the minds of travelers and industry professionals alike, consumers are now more concerned about the rising cost of everyday life. In 2021 and 2022, as we emerged from the worst of the pandemic, people were eager to travel and were willing to pay more to do so. For reference, in the second quarter of 2022, Expedia Group reported lodging bookings were the highest ever in Expedia Group history. However, in 2023 price sensitivity has returned as inflation rises and consumers are now prioritizing price over minimizing COVID exposure. By contrast, in last year's Traveler Value Index, consumers ranked both refundable reservations and enhanced cleaning above price. In the biggest change year-over-year, low pricing reappeared at the top of the list, with 27% of people now saying it is what they value most when booking travel. One in two consumers now say inflation will impact their upcoming travel plans. Despite fewer barriers to travel, consumers continue to demand flexibility. In fact, flexibility continues to be one of the top considerations for travelers.

Travelers’ need for extreme cleaning is waning. Inflation will impact travelers’ plans more than ongoing pandemic concerns and travel restrictions. If inflation comes under control soon, consumers may care less about price than they do now. However, until costs come down, we can’t underestimate the impact high prices are having on travelers, which is why you may have noticed rental rates have dropped significantly, now more in line with where they were pre-pandemic. To be successful in 2023, we have to be agile with pricing, flexible with cancellation policies, and thoughtful in messaging and marketing.