We’ve all heard about the pent-up demand that has led to increased spending lately and which is a major factor in the inflation we’re experiencing currently. That increased spending has been particularly noticeable in the travel category. Flights have been full and prices for transportation and accommodations have risen sharply.
In recent focus groups about travel, we asked frequent travelers if they intend to continue the increased pace of travel. The answer was a resounding “no.” Almost all participants had postponed travel plans during the pandemic and finally made those trips this year. Now that those trips have been made, they are planning to go back to their normal travel frequency.
In other research, we’ve been talking to consumers about inflation and the impact on their spending. While many talked about accepting higher prices and adding higher tips during the pandemic, now consumers are being more careful and looking to spend less. My own personal experience: I was going to order a pizza online from a local restaurant, which I planned to pick up myself, until I noticed they added a “pickup fee.” For me, that just crossed a line, and I decided to order somewhere else. A few weeks later, I ordered from that restaurant again, and the pickup fee had disappeared.
What does this mean for marketers? It may be time to return to emphasizing value and offering promotional deals. Let’s find out how your customers feel about spending. Email me at info at bureauwest.com.
Source: Bureau West research