Vacation rental company looks at travel trends.
Travel Trends Report 2020 by SaffronStays analyzed hospitality segment trends and demand drivers. The team spoke to residents of Mumbai and Pune across age groups and shared some intriguing insights. With high-stress lives and much to accomplish, Mumbaikars are looking for “do-nothing” vacations that allow them to escape the city and spend time with family and friends. People prefer shorter “lean-back” holidays over single “lean-in” ones. Shorter, more frequent breaks at locations close to home are the way to go.
The Demographics
This survey was conducted with select residents of Mumbai and Pune. It received 582 responses. Just over 40% of responders were between the ages of 25-34, while 22.8% were in the 35-44 age group. With 88 respondents, the 18-24 demographic had the third-most responses. The 45-54 age bracket saw 13.2% representation, while 9.6% of respondents were older than 55.
Holiday “Snacking”
More than 420 respondents, of which 75.7% had taken a break in the past three months, took a short domestic holiday within six months of the survey. Over time, the travel industry is pivoting to cater to short-term vacationing. From villa rentals to hotels, the industry is understanding the need of the hour: convenience. Consumers are opting for shorter options that allow them to break from their routines and return effectively. It is no wonder that all 320 who took a domestic holiday less than three months ago selected a destination that was no more than 5 hr or one direct flight away from their city of residence.
“Do-Nothing” Vacations
The traditional concept of hosting magicians or ornithologists, or setting up an activity center for kids, is passé. Of the 582 respondents, no more than 33% of individuals, across all age groups, tagged onsite activities as a factor that determined their vacation accommodations. In fact, travelers now look at indulging in “do-nothing” vacations that lack a checklist of items to do or see. Rather, our guests often ask us for things to do around the house.
Six Factors That Will Determine Holiday Patterns in 2020
- Holidays with shorter getaways makes proximity a key criterion for choosing a holiday. Three factors rule a real estate project: Location, location, location. The hospitality industry mimics the real estate industry, with proximity of accommodation the most important factor determining travel trends. With a 77.66% majority, 452 respondents across all age groups believe this factor was pivotal in choosing their stay. Among respondents, 62% had gone for a quick getaway in the previous three months.
- Amenities and great service are no longer “good to have”; they are a given. The hospitality industry can no longer emphasize great service. Good amenities and service are considered basic needs. One in two respondents tagged service as a necessity, proving that a lapse in customer satisfaction can cost a brand dearly. Western India follows a do-it-yourself trend, where guests are open to the idea of fending for themselves — cooking, cleaning, exploring. However, in the east, Indians prefer a do-it-for-me model of vacationing in which they can break away from the routine of taking care of themselves and are, instead, pampered by professionals.
- Privacy is the new luxury. Two in five respondents said privacy was an important consideration for their holiday. Interestingly, this ratio changes to one in two for the 25-34 age bracket. The definition of luxury is not gold-plated crockery and Italian-marble bathrooms. It is privacy. These “little emperors” have grown up with the notion of space and individualism, and do not want to compromise that, especially while on holiday. While the general stereotype that individuals in the 18-24 age bracket prefer “squeezing and squatting,” 43.82% of respondents in this age group prefer privacy.
- Affordable luxury is on the rise. Consumers in the 25-34 age group are the most difficult to please. They have a list of must-haves for their holiday accommodations. They are extremely budget-conscious, even as they demand a touch of luxury. One in two respondents selected need for luxury and budget-friendly options as factors. Hospitality players worldwide are now marketing the concept of “affordable luxury” to this section.
- People want water. Regardless of location and lodging, a requirement that stood out was water, with 87.8% resonance among respondents. With a 70.62% majority, 411 of 582 selected a pool as a requirement of their vacation accommodations, with 74.66% between the ages of 18 and 44 voting for this amenity. While the demand for a pool is inversely proportional to respondents’ age, demand for a beach is directly proportional to their age. Only 38.66% respondents younger than 24 prefer beaches, but one in two individuals older than 35 prefer a beach vacation. More than 48% of respondents selected a waterfront as a must-have amenity, reiterating that a holiday is incomplete without the presence of water.
- Vegetarian/Jain meals are in high demand. Consumers on holiday are unwilling to compromise on food. An interesting insight of the survey was that respondents, mostly who resided in Mumbai and Pune, said they needed vegetarian and/or Jain meals. One in three said failure to provide such meals would be a dealbreaker. However, data clearly shows the older generation is more conscious of its vegetarian food habits compared with those younger than 35.
From villa rentals to hotels, the industry is understanding the need of the hour: convenience.
Disconnecting to Connect
Disconnecting from the world is a privilege few can afford: 56% of respondents admitted to spending more than 4 hr a day on their phones, while 444 individuals were likely to use their phones while spending time with their families. Surprisingly, three of four individuals also said they wanted to disconnect from their phones and go on holiday without Wi-Fi. While reports claim millennials are suffering from nomophobia — fear of being without a mobile device — 250 of the 323 respondents younger than 34 voted for a getaway away from their phones. Thirty-seven percent of respondents said they would choose a vacation because a company offers various options for guests to break away from the world.
Private Villas a Hit
There is a clear link between travel groups and the type of accommodation they choose. While 285 respondents are more likely to stay in a boutique hotel or hotel chain when they travel with family, 44.33% would choose alternate accommodations. With a 60% majority, private villas, homestays and hostels were a clear winner for groups of friends. In addition, one in five corporate offsite gatherings were held in alternate accommodations across the country. The rising demand for private villas is apparent, with Indian hospitality brands launching private villa rental divisions.
There are 128,000 rooms in the Indian hotel industry today, with 60,000 rooms in the luxury/premium sector. The premium homestay market consists of no more than 40,000 rooms across India. With a rising demand for private villas, this relatively sparse supply will lead to an imbalance. Hotel chains build “vanilla” inventory in far-flung locations, then set up activity centers and customer engagement programs around them. Demand, however, is for closer, private homes where guests can bond in the comfort of their own living rooms, instead of in a hotel room or lobby.
How People Decide
While social-media outlets provide information, vacation decisions are highly influenced by family and friends. Word-of-mouth ranked highest in determining a vacation destination. More than 74% of respondents were guided by friends’ recommendations, while 26.1% tagged family. Surprisingly, only 61.4% respondents turned to social media for ideas and recommendations, and an even lower 22.1% named influencers as one of their sources.
The rising demand for private villas is apparent, with Indian hospitality brands launching private villa rental divisions.
The rise of Instagram influencers, especially in the travel and lifestyle space, has sent brands’ marketing teams into a tizzy. While a large part of brand awareness is driven by social-media influencers, decision and action are driven by the influence of friends and peers. Family members and friends have nothing to gain if they recommend a holiday destination or accommodation. In fact, they put their credibility on the line when they suggest something as personal and consuming as a holiday. Influencers, however, have nothing to lose by sharing a post or story about their vacations.
Accessibility is Key
A perusal of SaffronStays’ websites reveals that accessibility is a feature of many of the company’s villas, as they are outfitted with stylish, discrete lifts. Properties including Dulwich Cottage in Ganeshpeth, Belvedere in Goa, Xanadu in Alibaug and Aquila in Khandala all have elevators. “Take the stairs to access the upper level or, if you are feeling lazy, hop into the elevator that will take you up,” states the Aquila website. . . . Editor
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