The 2021 travel picture

There are several luxury destinations that have opened to tourists and have been widely seen as having handled the pandemic well.After temporarily closing the borders to curb the spread of coronavirus, Maldives reopened borders for all international travelers on July 15 2020.During the month of February, the ministry of tourism in Maldives observed record-breaking numbers with 96,881 arrivals. We have partnered with Visit Maldives to promote this destination to our strong portfolio and reach in MENA as one of the most preferred destinations within the market.

Seychelles is another example where travelers can enjoy a seamless travel experience in the naturally distanced islands and the stringent safety measures the country is applying to ensure the safety for all travelers.

Another destination that has been on the radar for many travelers lately is Thailand. The country has had notable success at keeping infections under control and recently announced that quarantines for inbound arrivals would be reduced to ten days. I can think of worse places to spend a hotel quarantine than a luxury Thai resort or villa! We are working closely with the Tourism Authority of Thailand to promote this marvelous destination.

Costa Rica has done an admirable job of keeping COVID under control while also remaining open for inbound tourism. This is anecdotal, but I know more than a few people working in the tech sector who moved to CR early on during the pandemic and have been working remotely from there ever since and who rave about the destination. The country is working on enhancing its luxury travel offering through high touch eco lodges that provide a seamless experience for travelers during the pandemic.The islands of Tahiti are a natural choice for travelers who are looking for a carefree vacation. Travelers get to enjoy the overwater bungalows, a range of water activities and overwater villas for the ultimate luxury experience.

Let’s not forget about the luxury travel destination of Dubai, which has managed to remain open to the world through most of the pandemic by adopting an aggressive testing regime, strict social distancing measures and a speedy vaccination rollout.We advise travelers to plan ahead well in advance and to keep an eye out for changes to the rules and procedures for their destination, for the airline and for returning to their home country. The Wego app has a News tab where we try to keep our users fully informed about all the latest updates.

2. In January, you told the magazine that the region would be ready to travel again this year – how has this prediction panned out so far, and what do you see happening over the next quarter?

People living in the region are definitely ready to travel again! We see this in the survey work we’ve done with Wego users and we see it in the immediate jump in bookings every time a travel restriction is rolled back and a new destination or route re-opens. 

Travel demand from MENA markets over the first quarter of 2021 is at about 30 percent of 2019 levels, which is up from about 25 percent in the fourth quarter of 2020. Obviously, we still have a long way to go but we’re trending in the right direction.

As we get closer to summer most of the elderly and higher-risk segments of the populations across all GCC countries will have been vaccinated and at that point I think governments will open up their borders for both outbound and inbound travel while also relaxing some restrictions at home.

Vaccine passports are being trialed at the moment and will be rolled out more broadly over the second quarter. Important Middle East airlines like Emirates, Etihad and Qatar Airways have all announced plans to adopt the IATA Travel Pass, which will digitally store your vaccination status and test results.

The Saudi aviation regulator (GACA) has reiterated that May 17 is the date that Saudi Arabia will reopen for international travel and I suspect Kuwait and Bahrain will ease travel restrictions on a similar schedule.

Over the next few quarters, we expect tourists to prioritise destinations that have vaccinated most of their population and/or that have successfully managed through the coronavirus. I expect to see many destinations waiving quarantine requirements for visitors from countries that are mostly vaccinated. This is good news if you live in Israel, the UAE, Bahrain or the the UK, which will be amongst the first countries to reach herd immunity.

Our baseline prediction for the MENA travel industry still has it recovering to close to 2019 levels by the end of 2021, but the first-quarter recovery has been a little slower than we had initially anticipated.

3. How has the pandemic changed traveler expectations for luxury travel?

There are a lot of people who haven’t had a proper vacation for over a year now since the coronavirus lockdowns began, myself included. This has resulted in a lot of pent-up demand for leisure travel experiences and if you’re making up for lost time, you’re way more likely to spare no expense. We’re definitely seeing this phenomena in our booking data. Some in the industry have dubbed this ‘revenge travel’.

For those people who have managed to keep their jobs through COVID, average savings rates have actually increased significantly because of the amount of time being spent at home and we expect that in many households that this cash is earmarked for one or more vacations.   

For those who are traveling currently we’re seeing a bias towards better known and trusted brands and more luxury accommodation choices. For those traveling internationally, we’re also seeing length of stay increasing, which I think is people wanting to make the most of the trip given the friction created by all the extra safety procedures.

We also see a significant increase in Wego users booking extended stays of 30 or more days, often in luxury hotels or villas. These are digital nomads or white-collar professionals, probably without kids, who have the flexibility to work from anywhere and in many cases are choosing warmer, safer and more open places than the city that their employment was previously tied to. This is a fascinating trend and I’ll be interested to see how much of this continues in a couple years’ time after COVID as a disruptive force is largely behind us.

Travelers are showing interest in tailor-made trips, looking for social distancing and fresh air without taking away the sense of adventure.

I also know of more than a few people who’ve picked up new languages or hobbies during lockdowns, which will now have an impact on their destination choices. The pandemic has also changed travelers’ needs and behaviors where they are focusing more on relaxation and wellness in luxury destinations rather than shopping or clubbing.

4. Can you share some insights from the platform – what destinations and experiences have you seen experiencing the highest growth in search over the first quarter? What categories have seen the biggest growth in terms of actual purchases?

According to our data, the destinations that saw the highest growth in search volumes over the course of the first quarter were:

• Seychelles saw a 62 percent increase
• Thailand saw a 45 percent increase
• Maldives saw a 40 percent increase
• The UK saw a 30 percent increase
• Norway saw a 29 percent increase 
• Spain saw a 19 percent increase

As for the experiences that had the highest demand in 2021, there has been an increase in domestic activities and local adventures as travelers are experiencing leisure activities in nearby destinations.

Wellness and retreat activities topped the list during the pandemic, with the majority of travelers are searching for relaxing getaways.