Low Cost Travel and Tourism Evolution Intelligence Report 2023: Global Consumer, Enterprise, and Industry Trends – Travel Apps Shaping Consumer Behaviour and How Companies Interact with Customers

DUBLIN, March 13, 2024 /PRNewswire/ — The “Low Cost Evolution Travel and Tourism – Thematic Intelligence” report has been added to  ResearchAndMarkets.com’s offering.

This thematic report offers an overview of the influence of the evolution of low-cost options on the travel sector, aiming to explore the contributing factors to this phenomenon. It categorizes key trends within this theme into three groups: consumer trends, enterprise trends, and industry trends.

The report incorporates several case studies to examine how countries and companies have reacted to the growth of this theme and outlines their strategies for capitalizing on it. Through these case studies, the report sheds light on the diverse approaches taken by stakeholders in response to the impact of the proliferation of low-cost options in the travel sector.

The pandemic has bolstered the importance of the low-cost evolution theme, with many travelers becoming increasingly concerned regarding their finances due to the economic impact of COVID-19. When comparing the analyst’s Q3 2022 Consumer Survey to its Q3 2023 Consumer Survey, the level of ‘extreme concern’ from global respondents over their personal finances only changed by one percentage point, from 30% to 31%. This minor change shows that a substantial segment of the global traveler market will continue to look for low-cost options as international travel continues to become more accessible in 2023.

However, high demand for low-cost alternatives in travel has been present for decades, not just during the pandemic. It was the introduction of Low-Cost Carriers (LCCs) that kick-started the low-cost evolution. LCCs threw the travel industry on its head. Characterized by the original ‘no frills’ set, the likes of EasyJet, Ryanair, and Southwest have now revolutionized the way tourists and mainstream providers think about travel. As the LCC market evolves it is driving the disaggregation of Full-Service Carrier (FSC) ticketing, creating new niches like low-cost long haul, and generally challenging what it means to be an airline carrier. Southwest Airlines is the original low-cost model pioneer within aviation and the wider travel and tourism industry. 

The introduction of the Airline Deregulation Act within the domestic aviation market in the US in 1979 gave the airline an opportunity that was not present before. The Department of Transport no longer had control over minimum/maximum ticket prices or airline schedules and destinations. Southwest took advantage of this opportunity by undercutting its competition and focusing on a new stripped-back business model.

The airline made the argument for deregulation and other markets including Europe, and more have followed since due to the benefits it offers. Southwest’s model has been so successful that even other sectors have followed. Many major travel and tourism companies now run low-cost brands and models to take advantage of the constant demand for budget alternatives.

Key Highlights

Travel, especially international travel, was once confined to the wealthy. But as airfares have decreased and hotels have become more affordable, travel companies have been able to target a wider range of customers. The industry now encompasses every type of traveler, and the rise in the popularity of low-cost operators is likely to continue. As financial constraints continue to be present, consumers will increasingly look for ways to reduce their spend and low-cost evolution has opened up travel to the masses.

When comparing the analyst’s Q3 2022 Consumer Survey to its Q3 2023 Consumer Survey, the level of ‘extreme concern’ from global respondents over their personal finances only changed by one percentage point, from 30% to 31%. This minor change shows that a substantial segment of the global traveler market will continue to look for low-cost options as international travel continues to become more accessible in 2023.

Travel apps have been heavily adopted by tourism-related companies operating in the low-cost market. Low-cost companies that are not developing and investing in app technology stand to become laggards within their respective sectors. Apps shape travelers’ spending habits by sending push notifications regarding last-minute deals while allowing for personalization.

Advancements in technology have seen a rise in the popularity of the sharing economy. The sector has changed the way travelers book trips and the business model poses a threat to many different operators. Airbnb and Uber have revolutionized the interaction between buyers and sellers and the asset-light business models these firms have adopted have resulted in low prices being offered to the market. Internally, apps reduce overheads by instantly solving customer queries with ‘frequently asked questions’ sections and allowing companies to create competitive advantages by displaying innovation through their app development, such as by incorporating advanced technologies like AI.

Low-cost evolution first happened within the aviation sector and has now occurred across the majority of the travel and tourism sector. There is a magnitude of different ways firms can make cuts to become low-cost. Car hire firms have removed navigation devices from vehicles and offer economy option cars. Hotels have diversified to offer basic hotel rooms offering the bare necessities in a smaller room with fewer amenities.

Reasons to Buy

Understand the current low cost evolution trends within the travel landscape today and how these will escalate in the near future.Assess how travel and tourism companies such as tour operators, OTAs and DMOs are utilizing low cost evolution to drive revenues.Acknowledge the potential pitfalls of using low cost evolution by understanding the social, cultural, and environmental effects on the destination.Discover recommendations for businesses involved in low cost evolutionThe thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.All across the travel and tourism supply chain, now have an opportunity to capitalize on low cost evolution, and there are notable examples of this. Therefore, all should buy this report to fully understand how this theme will continue to be a key theme in the future travel landscape.

Key Topics Covered:

Executive Summary Players Thematic Briefing Defining the low-cost evolution theme Trends Technology trends Macroeconomic trends Regulatory trends Industry trends Industry Analysis Market size and growth forecasts Use cases Timeline Signals M&A trends Company filing trends Social media trends Value Chain Lodging suppliers Transportation suppliers Intermediaries suppliers Companies Public companies Private companies Sector Scorecards Airlines sector scorecard Glossary

A selection of companies mentioned in this report includes

AccorAirbnbAmerica’s Best Value InnAmtrakAvisBalkan HolidaysBest WesternBlaBlaCarBooking HoldingsCarnival CorporationChoice HotelsCitymax HotelsCurbDeutsche BahnDidi ChuxingeasyHoteleasyJeteasyJet HolidaysEnterprise Rent-A-CarEuropcarEurostar InternationalExpedia GroupFareportalFirst GroupFlixbusGocompare.comGoogle FlightsGreat Value VacationsHertzHostelworldIHG Hotels & ResortsIndiGoJameson InnJet BlueJet2HolidaysLastminute.com GroupLocalizaLumoLyftMoneysupermarketMotel 6MSC CruisesOn the BeachOYO RoomsRed Roof InnRoyal Caribbean InternationalRyanairScootSixtSouthwest AirlinesThe Motel One GroupTravel RepublicTrip.com GroupTripAdvisorTUI GroupTuroUberVuelingWhitbreadWizz AirWyndham Hotels & Resorts

For more information about this report visit https://www.researchandmarkets.com/r/hjvi6y

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