Expedia Executive Sees "Big, Big" Jump in Demand in Second Quarter 2021
Travel Agent Jim Byers December 10, 2020

A senior executive at Expedia says he sees an “exponential” jump in travel demand taking place in the second quarter of next year.
Speaking as part of a panel discussion prior to the start of Thursday’s explore ’20 Expedia virtual conference, Cyril Ranque, President of the company’s Travel Partners Group, said he thinks that vaccinations being rolled out around the world will boost confidence in travel early in 2021.
Ranque said he personally sees a “big, big exponential jump” in demand.
Ariane Gorin, president of Expedia Business Services, said she agrees, but that she feels demand will grow differently in different parts of the world.
Gorin also said Expedia places a great deal of value on its relationship with travel agents and advisors.
Expedia’s Travel Agency Platform allows agents to log onto the Expedia portal to do searches and create bookings for clients. As well, they work with agents by having them use Expedia inventory with their own tools, she said.
“We have a number of ways we can work with travel agencies. Over the last nine months we’ve worked hard to support them through it, because obviously it’s been a tough moment for all of us and especially so for the traditional travel agencies. So we’ve done things like helping them on our commissions, making sure they can maintain the commission tiers they’ve had.
“We’ve introduced new inventory. You may have heard of our optimized distribution program with Marriott and a couple other hotels where we’re getting them access to high-margin rates. We’ve also built a lot of automations, so that we know that many travel agencies and many people across the travel ecosystem have had to furlough employees this year, so how can we help them manage the travellers they already have.
“I would say we’ve tried to do everything we can to try and support them, because we believe that travel agents play an important role in the ecosystem, and you’ll always have people who want to walk into a travel agency and talk to someone face-to-face. So, it’s an important area for us. We continue to invest.”
Gorin says Expedia “sees a rebound for agencies in the same way that the overall market is rebounding.”
Expedia Group officials said their research reveals that one in two travellers feel optimistic – that is, comfortable or even excited – about taking a trip in the next 12 months. Though consumer confidence in travel varies by country and generation, the importance of hygiene measures, flexibility, and financial peace of mind is more universal.
Three-quarters of travellers said measures such as mask enforcement, contactless services, and flexibility, including easy refunds or cancellation policies, will inform where they visit on their next trip.
“As the world keeps a watchful eye on vaccine news, and people continue to crave a change of scenery or opportunity to catch up with loved ones, we know the pent-up demand for travel will grow,” said Monya Mandich, Vice President of Global Marketing, Expedia Group Media Solutions. “COVID-19 has driven a seismic shift in traveller preferences and influences, and understanding these changes is critical to recovery efforts and future marketing strategies. The new research provides insights into the steps travel brands can take to reassure and connect with travellers as they begin researching, planning and booking again.”

Traveller trends in the next 12 months
- Globally, travellers are more likely to take trips between April and September 2021. Brazilian, Chinese, and Mexican travellers show a higher likelihood to travel even earlier, between January and March 2021, which aligns with the positive traveller sentiment also seen in those markets.
- Globally, Generation Z and millennial travellers are 1.5x more likely than other generations to take a leisure trip in January to March 2021.
- Fifty-seven percent of travellers said they would be comfortable traveling if a vaccine is widely available, which is promising given that this sentiment was captured in October, prior to the recent positive vaccine news.
- Seven in 10 travellers will look for flexibility, such as travel insurance and trip protection, full cancellations and refunds on transportation and accommodations. Expedia.com’s lodging data shows that travellers booked refundable rates 10 per cent more often in 2020 than the year before, and the new research indicates this trend is likely here to stay.
Factors influencing transportation and accommodation decisions
- Travellers want reassurances that travel providers and brands are following and enforcing pandemic protocols. Mask use and enforcement (50%), cost (47%) and easy refunds or cancellation policies (45%) will be the leading factors in future transportation decisions, though the importance placed on each varies by mode of transportation.
- For future air travel, six in 10 travellers would be most comfortable traveling if social distancing measures are in place.
- Proper COVID-19 hygiene protocols will inform future accommodation decisions for more than half of travellers, and this is the leading factor across all types, from chain and boutique hotels to vacation rentals to staying with family or friends. Additional considerations include contactless room service and takeout (24%) and contactless check in options (23%).
· Travel providers, as well as destination organizations, need to clearly communicate health and hygiene measures, pandemic protocols and flexibility to reassure and attract travellers.

Inspiring future travel
· Travellers are turning to online travel agencies for information and travel planning 24 per cent more than pre-pandemic, while destination websites saw a 20 per cent increase in use as a planning tool.
· Pictures and informative messaging in travel advertising are 20 per cent more influential than pre-pandemic, along with travel organizations and experts. This is reflective of the shift in traveller priorities – with hygiene measures and flexibility overtaking experiences and activities – and the increased importance of credible, up-to-date information from trusted sources.
Technology to reduce friction
The research shows that people will book travel if they are confident in their ability to change plans and stay safe. Expedia Group is investing in technology that provides travellers and lodging partners with more choice in how they seek and receive support, while helping them complete tasks faster and make informed decisions.
- Virtual agent enhancements: Expedia Group added new skills to its AI-powered virtual agent that helps resolve the most common enquires including cancelling or changing trips, receiving refunds, redeeming vouchers, and answering questions about safety measures. A recently added feature, one-click cancellation, allows travellers to initiate cancellations for each part of their trip. One-click cancellation works seamlessly for bookings across Expedia Group’s brands and adheres to cancellation policies of the travel partner. In the case of complex enquiries, the virtual agent connects travellers with human agents or directly with the travel partner.
Viewing explore ’20 on-demand
On-demand recordings from explore ’20 will be available at www.exploreexpediagroup.com starting the week of December 14 until the end of 2020.
For further insights on traveller attitudes, motivations and influences that will drive future travel decisions, download the full global Traveler Sentiment and Influences study and stay tuned for regional research from Expedia Group Media Solutions at upcoming virtual events.
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