How do people feel about tourism almost six months after lockdown?
We’re coming to the end of the summer holidays - and reaching almost six months since the nation went into lockdown at the end of March due to the global pandemic. As lockdown has been eased and businesses try to operate within the new normal, how are consumers feeling about life - and in particular tourism - as we approach the end of our peak season?
London based market research firm BVA BDRC and Alligator Digital have teamed up to provide tourism marketers with a weekly snapshot. Their report looks at how consumers feel about a range of different things, including what their attitudes are to tourism and hospitality - and how that changes week by week.
Here’s some of the key takeaways directly from this week’s report - which is the final report the agency will be issuing.
National mood and sentiment picks up
After the most negative outlook recorded since April in last week's report, there is a slight improvement in overall mood and sentiment this time. Confidence in the UK government’s handling of the crisis recovers somewhat – but 85% of the population considers a 2nd wave and lockdown to be a likely scenario.
Bleak outlook for outbound travel, as lead-times lengthen again in face of quarantine
Despite being in peak summer holiday season, we estimate that the incidence of those taking overseas holidays among our ‘Travel Activist’ sample is just 7% of that recorded in Q1.
With anticipated lead times to next flight and international holiday lengthening for the second consecutive week and no sign of an end to the uncertainty around quarantine rules, the outlook for international travel continues to be bleak.
Among those who are planning to go on an overseas holiday, the hierarchy of holiday type preferences remains largely unchanged, with Spain top of the destination charts and beaches still top of the menu.
Restaurants, pubs and shopping malls continue to see growth in re-engagement
For pubs, shopping malls and restaurants in particular, we continue to see week-on-week increases in the incidence of participation – the latter helped, it seems, by the Eat Out to Help Out scheme. Meanwhile, the reduction in VAT would also appear to have had an impact on uptake of paid-for accommodation, though not to the same extent as EOTHO: a case for ”Stay Away to Save the Day” perhaps?
Outdoor scenic destinations lead our recovery index - but have flat-lined since July
A combination of the good mid-summer weather, avoidance / impossibility of international holidays, as well as an innate desire for space and clean air post-lockdown, contributed to outdoor scenic areas racing ahead in terms of the extent of recovery in visitors / customers.
In August, however, recovery in participation levels has flat-lined, with no further increase in the incidence of visitors among our ‘Travel Activist’ sample.
Advertising: consumers show preference for ‘normality’ and an absence of virtue signalling
When it comes to marcoms strategy, this week’s report underlines the importance of pitching the right message to each audience. At an aggregate national-level, there is a sense that ads should focus more on a return to normality than on COVID-related safety and wellbeing messages – though these COVID-related themes continue to resonate for those in the ‘COVID Concerned’ attitudinal segment.
In general, consumers are also cynical about brands publicising their good deeds during the crisis, with ‘Life Goes On’ and ‘Pragmatic Policy Supporters’ (also the segments most likely to be re-engaging with the economy) particularly likely to be turned off by virtue signalling from brands.
Consumers are feeling better about their finances than at the start of the crisis
Notwithstanding the growing incidence of redundancies, pay cuts and reduced-time contracts, consumers are typically feeling somewhat better about their personal finances than at the very start of the crisis. 37% now describe themselves as ‘alright’ and a further 9% as ‘better off than before (the crisis)’ – on a combined basis, this is up 10 points since early April.
For historical context, when BDRC asked the same questions during the aftermath of the 2008 financial crisis, only 27% described themselves as ‘alright’ or ’better off’.
Where are audiences getting their information from and what media do they consume - and how does that relate to their actions during a global pandemic?
Earlier this year, we published a blog article which talked about segmenting your market in a COVID-19 world. Audiences can be identified by how they feel about going out and taking part in activities during this pandemic, and this can held iidentify ways of reaching them. The five segments were created by BVA-BDRC as part of this ongoing consumer sentiment research.
This week, they’ve discussed the media preferences that customers have and broken it down by the segments. It makes for really interesting reading, and there’s a summary of their findings below.
To what extent is consumer participation in each activity sector recovering to ‘normal’ levels?
Visitor Attractions: The proportion who have already visited an attraction since being able to do so increased in the second week of August. Intentions to go before the end of the year remain steady, while intentions in term of visiting an attraction by the end of April 2021 or later increase.
The lead time for most types of attractions continues to increase this week, with historic houses seeing the largest increase. Indoor play centres, however, see lead times drop as families are excited to see them begin to re-open.
Zoos: The intention to visit a zoo by the end of September continues to drop, falling from 11% to 9%. Intention to go by the end of April or later also continues to drop, falling from 27% to 19%, the lowest level recorded.
Theme Parks: Theme parks are another segment of the leisure industry impacted by second wave concerns: the proportion of Travel Activists having an interest in visiting but without a specific timeframe in mind, continues to nudge upwards, while short term intentions for August decline for the 3rd consecutive week.
Museums and Galleries: With last week’s data reflecting a peak in consumer anxiety about a potential second wave, and an accompanying sharp drop in intention to visit a museum or gallery before end of 2020, this week there is a partial recovery. Nevertheless, intention to visit this side of 2021 remains lower than it was back in May.
Small Historic Houses: In a similar trend to museums, intentions to visit a small historic house before the end of December recovered this week. However, reflecting continued caution in respect of indoor public spaces, the speed of participation recovery remains slow.
Outdoor Parks and Scenic Areas: Outdoor parks and scenic areas recovered faster and to a greater extent than any other section of the economy BVA BDRC have tracked and remain ahead of everything else. That said, the incidence of visitors among the Travel Activist sample is no higher now than it was at the end of July, while forward intentions are on the decline as Autumn comes into sight.
Attraction visitors are looking for the usual visitor experience, with sensible health and safety precautions. Hand sanitiser, enhanced cleaning and enforced social distancing enabled by capacity caps are essential for all segments except ‘Life Goes On’.
Visitors typically do NOT expect discounted entry, or require exclusive opening for small groups, and closure of communal areas could actually be a deterrent – visitors want access to the full offer.
This information comes directly from the report Tracking Consumer Sentiment on the Impact of COVID-19 Week 21 FINAL , shared with colleagues in Cornish tourism. It was authored by the team at BVA BDRC and Alligator.
If you would like more insights into consumer behaviour around tourism, you can download the full report below. We’re happy to discuss how you can use these insights more fully in your marketing strategy and campaign planning moving forward - get in touch with us to continue this conversation