Stats: Long-Haul Destinations Return, Hotel Demand Stays Strong During Q2

By Matt Turner Aug 10, 2022 10:30am

Expedia Group Media Solutions this week released its “Q2 2022 Traveler Insights Report,” which found several positive trends for the industry: Travel searches are holding steady; long-haul destinations are returning; and demand is staying strong despite rising costs. The quarterly report combines Expedia Group first-party data and custom research with actionable insights and industry examples to support travel marketers on their continued journey toward rebuilding.

Key findings from the “Q2 2022 Traveler Insights Report” include:

Travel Searches Hold Steady

Following a 25 percent quarter-over-quarter surge in searches globally between Q4 2021 and Q1 2022 across the Expedia Group branded sites, search volumes held steady in Q2, indicating sustained interest and enthusiasm to travel. Asia Pacific (APAC) saw strong double-digit growth between Q1 and Q2 (30 percent), followed by Europe, the Middle East and Africa (EMEA) at 10 percent.

Week-over-week global search volume fluctuated throughout Q2, with the strongest gains during the week of June 6 (the same week that the Biden Administration announced it would lift pre-departure testing for inbound air travelers to the U.S.). Week-over-week searches globally increased 10 percent following the June 10 announcement.

Search Windows Still Shorter

Seasonal holidays and a desire to travel in the near-term, coupled with economic and pandemic-related concerns and regional instability, contributed to growth in shorter search windows during Q1. Global share of searches in the 0- to 90–day window increased more than 5 percent quarter-over-quarter, with the 61- to 90–day window seeing the largest quarter-over-quarter lift at 15 percent.

In Q2, the majority of global domestic searches fell within the 0- to 30–day window, while the share of searches in the 91- to 180-plus-day window decreased quarter-over-quarter. The continued easing of travel restrictions and testing requirements contributed to a double-digit quarter-over-quarter lift in international searches globally in the 0- to 90-day window, with the strongest growth in the 61- to 90-day window. This indicates, according to Expedia Group, that even though travelers have reverted to planning for the near-term, they are still considering international trips.

Long-Haul Destinations Returning

As with prior quarters, major cities and beach destinations around the world remained popular with travelers in Q2, but London and Paris had particularly strong showings. On the global top 10 list of booked destinations in Q2, London took the No. 3 spot. London was the No. 1 booked destination by travelers from APAC and EMEA and made new appearances on the top 10 lists for travelers from Latin America (LATAM) and North America (NORAM).

Q2 also saw a significant increase in demand for long-haul flights (flights with a duration of four-plus hours) as travelers looked further afield. There was more than a 50 percent year-over-year increase in global traveler demand for long-haul flights. Further illustrating the rise in long-haul flights, Q2 delivered more than 100 percent year-over-year growth in traveler demand for flights from the U.S. to Europe.

Demand Stays Strong Despite Rising Costs

Q2 continued the growth momentum from Q1, with lodging bookings at the highest in Expedia Group history. A prior-year comparison shows total gross bookings were up by double digits as travel demand further improved. Lodging demand increased quarter-over-quarter in Q2, with APAC seeing the strongest growth. With sustained demand globally, average daily rates (ADR) in Q2 increased quarter-over-quarter and even more so compared to Q2 2019, while room night cancellation rates globally declined by double digits compared to Q2 2019.

Strong demand, rising fuel costs and an increase in longer-distance flights booked drove a quarter-over-quarter increase in the global average ticket price during Q2. Compared to Q2 2019, the global average ticket price was up double-digits in Q2 2022, led by EMEA and APAC.

Growing Interest in Inclusive Travel

People around the world are increasingly seeking ways to have more meaningful and conscientious travel experiences. According to Expedia Groups’ recent “Inclusive Travel Insights Report,” 92 percent of consumers think it is important for travel providers to meet the accessibility needs of all travelers—yet only half of consumers have seen options that are accessible to all abilities when they are searching for and booking a trip.

These insights point to the gap in accessible and inclusive options in the travel marketplace, as well as the opportunities for travel brands to improve offerings and make travel accessible to all travelers, everywhere.

Consumers are also paying attention to a travel brand’s commitment to inclusion, diversity and accessibility, and these commitments are influencing purchasing decisions. In fact, 78 percent of consumers said they have made a travel choice based on promotions or ads that they felt represented them through messaging or visuals, while seven in 10 consumers would choose a destination, lodging or transportation option that is more inclusive of all types of travelers, even if it’s more expensive.

Source: Expedia Group