tripadvisor travel trends 2022

2022 is the year of the travel rebound – Tripadvisor report

Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly

A new travel trends research paper released today by Tripadvisor in partnership with Ipsos MORI, reveals how consumers are planning to travel in 2022 and beyond, and how their attitudes and behaviours in relation to travel have changed as compared to pre-pandemic.

While outside factors like COVID-19 variants, international travel rules and staffing shortages still can represent existential threats to traveller behaviours, year-end sentiment and search data shows ongoing demand for travel remains high. Who benefits from the tourism demand? As travellers spend more, cultural experience providers (tours and attractions), tourism businesses catering to domestic audiences and companies adhering to safety standards will win the hearts and minds of travellers.

“Despite new variants of COVID-19, consumers across the globe still want to travel and explore. This is evident in our month-over-month search data which shows a consistent, healthy increase in page views post-Christmas,” said Kanika Soni, chief commercial officer, Tripadvisor, Inc. “Travellers are quickly adapting to local public health conditions, with cleanliness and safety remaining important factors in their planning.”

Unsurprisingly, the report continues to show that the pandemic weighs on the minds of people across the countries featured in this study. The good news is that reported travel intent for 2022 compared with 2019 and analysis of planned average trip spend show prospects for a strong year ahead in the hospitality industry.

Some of the key findings from the study include:

Planned travel in 2022 surpasses actual travel in 2019

• Across the five key markets around the world that were surveyed, those likely to travel for leisure purposes in 2022 outpaces pre-pandemic reported travel levels.
• In the UK, 78% of respondents said that they are likely to travel for leisure in 2022, compared to 72% of those who said that they travelled for leisure in 2019.
• In the United States, 2022 leisure travel intent is up 8 percentage points (pp) compared to 2019, with 71% saying they are likely to travel for leisure in 2022.
• Singapore leads the way in travel optimism, with 82% reporting they are likely to take a trip in 2022, up 2pp compared to 2019. Australia (72%) and Japan (51%) are trending similarly, with those who are planning a leisure trip in 2022 up 7pp and 5pp from those who reported travelling in 2019, respectively.

Average spend per trip for 2022 is beyond that of 2019, as travellers look to level up their travel experience**

• According to Tripadvisor site behavioural data, American travellers are expected to spend 29% more on their average trip in 2022 than they did in 2019.
• In Australia, average booking rates are expected to be up by 16% in 2022 against 2019.
• Singaporean travellers booking values are also expected to increase by an average of 7%.
• On the other end of the spectrum, the average Japanese traveller is expecting to spend 30% less in 2022 compared with 2019. In Italy, average booking spend is expected to be down 19%. While in the UK, Brits are planning to spend slightly less on 2022 travel than they did in 2019 (-1%).
• Shifting from behaviour to sentiment, over a quarter of travellers in each of the five markets surveyed said it is more important now than before the pandemic to splurge on a big trip. In the United States, roughly 3 in 10 Americans (29%) who travelled for leisure in 2019 said it’s more important now than before the pandemic to splurge on a big trip. Twenty-eight percent of Singaporean and Australian travellers, 27% of Japanese travellers and 25% of UK travellers said the same.

Domestic travel continues to lead the way

• While a sizable proportion of consumers across most of the markets surveyed plan to travel abroad for leisure in 2022, travelling within their home country is still the most favoured option.
• Seventy-four percent of Singaporean respondents plan to travel domestically for leisure, compared with 53% who plan to travel abroad for leisure. Seventy-three percent of Brits say they plan to travel within the UK for leisure compared with 48% planning to travel abroad.
• In the US and in Australia, 68% of respondents in each market said they are likely to travel domestically in 2022, while 29% of Americans said they are likely to travel overseas in 2022 compared to 38% of Australians.
• In Japan, 50% of Japanese respondents reported that they are likely to travel within their home country in 2022, compared to 10% of those likely to travel internationally.

Travellers are seeking new travel experiences in 2022 and beyond

• More than a third to nearly half of all travellers surveyed in the United States (41%), UK (38%), Australia (46%), Japan (34%) and Singapore (49%) said that travelling to a destination they’ve never been to before would be more important to them now, compared to trips they took in 2019 when choosing where to travel.
• Three-quarters (75%) of Americans said that it’s important they “see new places” when thinking about their future travel plans, 74% of Australians, 73% of Singaporeans, 70% of Britons and over half (59%) in Japan said the same.
• The top three most important considerations, across the markets surveyed, in future travel plans to visit a destination was to get immersive by seeing new places, having new experiences and learning about history and culture.
• Forty-four percent of Singaporean travellers, 38% of Australians and a third (34%) of Americans and UK travellers respectively said that it’s more important now than before the pandemic that they choose a destination where they can immerse themselves in “authentic local experiences”. A quarter (25%) of Japanese travellers said the same.
• In both the US and Australia, 30% of travellers said it’s more important now that they “pack as many activities” into their holiday travel as possible. While in the UK, 28% said it’s more important for them to plan an action-packed travel experience in 2022 or beyond.
• About 2 in 10 travellers in each of the five markets surveyed said they will do more guided cultural activities – those activities and tours where subject matter experts and professional guides allow for travellers to sit back, learn, relax, and see all that an area has to offer – when planning trips in 2022 or beyond than before the pandemic (except in Japan where this proportion was 14%).

COVID-19 case counts, safety protocols, quarantine restrictions, and cleanliness are all key factors in travel decision making in 2022

• Eighty-five percent of Singaporean travellers, nearly three-quarters of Japanese (73%) and Australian (74%) travellers, 72% of British and 70% of Americans say that cleanliness measures of a hospitality business will be an important factor in their travel decision making next year, even after COVID-19 cases have dropped worldwide.
• Approximately 7 in 10 respondents in each of the markets said that destinations that have a low number of COVID-19 cases are important when making a decision on where to travel next.
• One-third of the Brits (32%) and Americans (33%) who aren’t travelling next year said they’ve decided against it because of uncertainty surrounding possible travel restrictions. Over half (55%) of Singaporeans, 47% of Australians and a quarter (25%) of Japanese respondents cited the same reason.

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NEEDHAM, Massachusetts—A new travel trends research paper released by Tripadvisor in partnership with Ipsos MORI reveals how consumers are planning to travel in 2022 and beyond and how their attitudes and behaviors in relation to travel have changed as compared to pre-pandemic. While outside factors like COVID-19 variants, international travel rules, and staffing shortages still can represent threats to traveler behaviors, year-end sentiment and search data show ongoing demand for travel remains high. As travelers spend more, cultural experience providers (tours and attractions), tourism businesses catering to domestic audiences, and companies adhering to safety standards will benefit from tourism demand

The report, titled “Travel in 2022—A Look Ahead” combines consumer sentiment analysis, gathered by Ipsos MORI on behalf of Tripadvisor, via surveys in five major international markets and behavioral analysis of Tripadvisor’s first-party search data—uncovering several travel patterns such as the average length of trips planned for 2022 and the amount travelers are looking to spend, according to searches they actively made on the Tripadvisor platform before year-end.

“Despite new variants of COVID-19, consumers across the globe still want to travel and explore. This is evident in our month-over-month search data which shows a consistent, healthy increase in page views post-holidays,” said Kanika Soni, chief commercial officer, Tripadvisor, Inc. “Travelers are quickly adapting to local public health conditions, with cleanliness and safety remaining important factors in their planning.”

Unsurprisingly, the report continues to show that the pandemic weighs on the minds of people across the countries featured in this study. The good news is that reported travel intent for 2022 compared with 2019 and analysis of planned average trip spend show prospects for a strong year ahead in the hospitality industry.

Key findings from the study include:

• Planned travel in 2022 surpasses actual travel in 2019.
• Across the five key markets around the world that were surveyed, those likely to travel for leisure purposes in 2022 outpaces pre-pandemic reported travel levels.
• In the United Kingdom, 78 percent of respondents said that they are likely to travel for leisure in 2022, compared to 72 percent of those who said that they traveled for leisure in 2019.
• In the United States, 2022 leisure travel intent is up 8 percentage points compared to 2019, with 71 percent saying they are likely to travel for leisure in 2022.
• Singapore leads the way in travel optimism, with 82 percent reporting they are likely to vacation in 2022, up 2 percentage points compared to 2019. Australia (72 percent) and Japan (51 percent) are trending similarly, with those who are planning a leisure trip in 2022 up 7 percentage points and 5 percentage points from those who reported traveling in 2019, respectively.

Average spend per trip for 2022 is beyond that of 2019, as travelers look to level up their travel experience:

• According to Tripadvisor site behavioral data, U.S. travelers are expected to spend 29 percent more on their average trip in 2022 than they did in 2019.
• In Australia, average booking rates are expected to be up by 16 percent in 2022 against 2019.
• Singaporean travelers booking values are also expected to increase by an average of 7 percent.
• On the other end of the spectrum, the average Japanese traveler is expecting to spend 30 percent less in 2022 compared with 2019. In Italy, average booking spend is expected to be down 19 percent. While in the United Kingdom, travelers are planning to spend slightly less on 2022 travel than they did in 2019 (down 1 percent).
• Shifting from behavior to sentiment, over a quarter of travelers in each of the five markets surveyed said it is more important now than before the pandemic to splurge on a big trip. In the United States, roughly 3 in 10 U.S. travelers (29 percent) who traveled for leisure in 2019 said it’s more important now than before the pandemic to splurge on a big trip. Twenty-eight percent of Singaporean and Australian travelers, 27 percent of Japanese travelers, and 25 percent of U.K. travelers said the same.

Domestic travel continues to be prominent:

• While a sizable proportion of consumers across most of the markets surveyed plan to travel abroad for leisure in 2022, traveling within their home country is still the most favored option.
• Seventy-four percent of Singaporean respondents plan to travel domestically for leisure, compared with 53 percent who plan to travel abroad for leisure. Seventy-three percent of U.K. travelers say they plan to travel within the United Kingdom for leisure compared with 48 percent planning to travel abroad.
• In the United States and in Australia, 68 percent of respondents in each market said they are likely to travel domestically in 2022, while 29 percent of U.S. travelers said they are likely to travel overseas in 2022 compared to 38 percent of Australians.
• In Japan, 50 percent of Japanese respondents reported that they are likely to travel within their home country in 2022 compared to 10 percent of those likely to travel internationally.

Travelers are seeking new experiences:

• More than a third to nearly half of all travelers surveyed in the United States (41 percent), United Kingdom (38 percent), Australia (46 percent), Japan (34 percent), and Singapore (49 percent) said that traveling to a destination they’ve never been to before would be more important to them now compared to trips they took in 2019 when choosing where to travel.
• Three-quarters (75 percent) of U.S. travelers said that it’s important they “see new places” when thinking about their future travel plans, 74 percent of Australians, 73 percent of Singaporeans, 70 percent of U.K. travelers, and over half (59 percent) in Japan said the same.
• The top three most important considerations across the markets surveyed in future travel plans to visit a destination were to get immersive by seeing new places, having new experiences, and learning about history and culture.
• Forty-four percent of Singaporean travelers, 38 percent of Australians, and a third (34 percent) of U.S. travelers and U.K. travelers respectively said that it’s more important now than before the pandemic that they choose a destination where they can immerse themselves in “authentic local experiences.” A quarter (25 percent) of Japanese travelers said the same.
• In both the United States and Australia, 30 percent of travelers said it’s more important now that they “pack as many activities” into their holiday travel as possible. While in the United Kingdom, 28 percent said it’s more important for them to plan an action-packed travel experience in 2022 or beyond.
• About two in 10 travelers in each of the five markets surveyed said they will do more guided cultural activities—those activities and tours where subject matter experts and professional guides allow for travelers to sit back, learn, relax, and see all that an area has to offer—when planning trips in 2022 or beyond than before the pandemic (except in Japan where this proportion was 14 percent).

COVID-19 case counts, safety protocols, quarantine restrictions, and cleanliness are all key factors in travel decision making in 2022:

• Eighty-five percent of Singaporean travelers, nearly three-quarters of Japanese (73 percent) and Australian (74 percent) travelers, 72 percent of U.K. travelers, and 70 percent of U.S. travelers say that cleanliness measures of a hospitality business will be an important factor in their travel decision making next year, even after COVID-19 cases have dropped worldwide.
• Approximately seven in 10 respondents in each of the markets said that destinations that have a low number of COVID-19 cases are important when making a decision on where to travel next.
• One-third of the U.K. travelers (32 percent) and U.S. travelers (33 percent) who aren’t traveling next year said they’ve decided against it because of uncertainty surrounding possible travel restrictions. Over half (55 percent) of Singaporeans, 47 percent of Australians, and a quarter (25 percent) of Japanese respondents cited the same reason.
• 2022 travel trends
• January 2022
• travel trends
• Trends & Research
• TripAdvisor

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• What travel in 2022 can look like: Survey

‘Travel in 2022 - A Look Ahead’ combines consumer sentiment survey data, gathered by Ipsos MORI on behalf of Tripadvisor, via surveys in five major countries worldwide, and behavioral analysis of Tripadvisor’s first-party search data - uncovering several travel patterns, such as the average length of trip planned for 2022 and the amount travellers are looking to spend, according to searches they actively made on the Tripadvisor platform before year-end.

• ETTravelWorld
• Published On Jan 23, 2022 at 01:00 PM IST

How will travel, tourism & aviation industry shape up in 2022?

Experts from the travel, tourism, aviation, visa, and travel tech sector share their views on how the industry will move forward despite the scare of the new mutant virus of Covid-19.

• Across the five key markets around the world that were surveyed, those likely to travel for leisure purposes in 2022 outpaces pre-pandemic reported travel levels.
• In the UK, 78 per cent of respondents said that they are likely to travel for leisure in 2022, compared to 72 per cent of those who said that they traveled for leisure in 2019.
• In the United States , 2022 leisure travel intent is up 8 percentage points (pp) compared to 2019, with 71 per cent saying they are likely to travel for leisure in 2022.
• Singapore leads the way in travel optimism, with 82 per cent reporting they are likely to vacation in 2022, up 2pp compared to 2019. Australia (72 per cent) and Japan (51 per cent) are trending similarly, with those who are planning a leisure trip in 2022 up 7pp and 5pp from those who reported traveling in 2019, respectively.
• According to Tripadvisor site behavioral data, American travellers are expected to spend 29 per cent more on their average trip in 2022 than they did in 2019.
• In Australia, average booking rates are expected to be up by 16 per cent in 2022 against 2019.
• Singaporean travellers booking values are also expected to increase by an average of 7 per cent.
• On the other end of the spectrum, the average Japanese traveller is expecting to spend 30 per cent less in 2022 compared with 2019. In Italy, average booking spend is expected to be down 19 per cent. While in the UK, Brits are planning to spend slightly less on 2022 travel than they did in 2019 (-1 per cent).
• Shifting from behavior to sentiment data, over a quarter of travellers in each of the five markets surveyed by Ipsos MORI said it is more important now than before the pandemic to splurge on a big trip. In the United States, roughly 3 in 10 Americans (29 per cent) who traveled for leisure in 2019 said it’s more important now than before the pandemic to splurge on a big trip. Twenty-eight percent of Singaporean and Australian travellers, 27 per cent of Japanese travellers and 25 per cent of UK travellers said the same.

Will luxury travel be the buzzword in 2022? The hospitality industry and niche market players share emerging trends

Talking about how 2022 can change the business scenario for the Indian hospitality industry, the Hotel Association of India (HAI) and leading players in the luxury travel segment decode the mantra to success in the new year and what travellers can look forward to in terms of offerings.

• While a sizable proportion of respondents across most of the markets surveyed plan to travel abroad for leisure in 2022, traveling within their home country is still the most favored option.
• Seventy-four percent of Singaporean respondents plan to travel domestically for leisure, compared with 53 per cent who plan to travel abroad for leisure. Seventy-three percent of Brits say they plan to travel within the UK for leisure compared with 48 per cent planning to travel abroad.
• In the US and in Australia, 68 per cent of respondents in each market said they are likely to travel domestically in 2022, while 29 per cent of Americans said they are likely to travel overseas in 2022 compared to 38 per cent of Australians.
• In Japan, 50 per cent of Japanese respondents reported that they are likely to travel within their home country in 2022, compared to 10 per cent of those likely to travel internationally.
• More than a third to nearly half of all travellers surveyed in the United States (41 per cent), UK (38 per cent), Australia (46 per cent), Japan (34 per cent) and Singapore (49 per cent) said that traveling to a destination they’ve never been to before would be more important to them now, compared to trips they took in 2019, when choosing where to travel.
• Three-quarters (75 per cent) of Americans said that it’s important they “see new places” when thinking about their future travel plans, 74 per cent of Australians, 73 per cent of Singaporeans, 70 per cent of Britons and over half (59 per cent) in Japan said the same.
• The top three most important considerations, across the markets surveyed, in future travel plans to visit a destination was to get immersive by seeing new places, having new experiences and learning about history and culture of the places visited.
• Forty-four percent of Singaporean travellers, 38 per cent of Australians and a third (34 per cent) of Americans and UK travellers respectively said that it’s more important now than before the pandemic that they choose a destination where they can immerse themselves in “authentic local experiences”. A quarter (25 per cent) of Japanese travellers said the same.
• In both the US and Australia, 30 per cent of travellers said it’s more important now that they “pack as many activities” into their holiday travel as possible. While in the UK, 28 per cent said it’s more important for them to plan an action-packed travel experience in 2022 or beyond.
• About 2 in 10 travellers in each of the five markets surveyed said they will do more guided cultural activities – those activities and tours where subject matter experts and professional guides allow for travellers to sit back, learn, relax, and see all that an area has to offer – when planning trips in 2022 or beyond than before the pandemic (except in Japan where this proportion was 14 per cent).
• Eighty-five percent of Singaporean travellers, nearly three-quarters of Japanese (73 per cent) and Australian (74 per cent) travellers, 72 per cent of British and 70 per cent of Americans say that cleanliness measures of a hospitality business will be an important factor in their travel decision making next year, even after COVID-19 cases have dropped worldwide.
• Approximately 7 in 10 respondents in each of the markets said that destinations that have a low number of COVID-19 cases are important when making a decision on where to travel next.
• One-third of the Brits (32 per cent) and Americans (33 per cent) who aren’t traveling next year said they’ve decided against it because of uncertainty surrounding possible travel restrictions. Over half (55 per cent) of Singaporeans, 43 per cent of Australians and a quarter (25 per cent) of Japanese respondents cited the same reason.
• Updated On Jan 23, 2022 at 01:00 PM IST

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Travel insights: Be prepared for experiential trends

Travelers are hungry for new and exciting experiences in 2022 and beyond. Microsoft Advertising Insights found that searches for Tour Operators are up 45% compared to pre-pandemic, and clicks are up 197% year-over-year. 1  Searches for Tourist Attractions are also up 14% compared to 2019, and volumes are expected to increase for this subcategory beginning in April. 2 Searches and clicks for Concerts and Music Festivals are also rebounding. With 14% of survey respondents planning on attending a local music event during their 2022 travels, ensure budgets are in place in time for spring and summer events. 3 Travelers are also expected to prioritize luxury experiences in 2022 and beyond; searches for Luxury Travel are up 26% year-over-year, and are surpassing 2019 numbers by 10%. 4  Lastly, flexibility will also be key for travelers. We found that searches for travel insurance and travel brands’ policies are up 69% compared to pre-pandemic. 5 For trending experiences and recommendations on how to maximize spend, download the insights.

[1] Microsoft internal data,  January 2019 - January 2022 [2] Microsoft internal data,  January 2019 - December 2021 [3]  Expedia/Northstar Research Partners . 8/27/2021-9/6/2021 [4] Microsoft internal data, January 2019 - December 2021 [5] Microsoft internal data, January 2019 - January 2022

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News & Insights

Gaining 20% This Year, Will Tripadvisor Stock Rally Further After Q1 Results?

May 08, 2024 — 12:33 am EDT

Written by Trefis Team for Trefis  ->

Tripadvisor (NASDAQ: TRIP) , an online travel company providing booking for hotel reservations, transportation, lodging, travel experiences, and restaurants, is scheduled to announce its fiscal first-quarter results on Wednesday, May 8. We expect Tripadvisor’s stock to likely see little to no movement with revenue and earnings matching estimates.  Liberty Tripadvisor Holdings (LTRPA) has stated its intention to engage in discussions regarding a potential acquisition, prompting the formation of a special committee to evaluate proposals resulting from these discussions. It should be noted that LTRPA owns 21.1% of Tripadvisors’ shares outstanding and TRIP’s stock price has gained traction since this announcement. That said, Tripadvisor stock has been struggling for years as its audiences have moved elsewhere and the demand for online advertising has been weak due to tough competition from Google. It is difficult to compare Tripadvisor’s current business with its previous business model because it has reorganized over the years. However, in 2019, the company’s Tripadvisor brand (representing 60% of its sales then) generated revenue of $939 million. By comparison, in 2023 the company’s Tripadvisor Core brand (~58% of sales now) generated a total revenue of $1,031 million – signaling only a small revenue growth during this period. In addition, Tripadvisor’s gross margins have always been consistently more than 90%. But still, despite such high margins, the company’s profits have been scarce and far between through the years, largely due to higher spending on sales and marketing. TRIP stock has seen a decline of 15% from levels of $30 in early January 2021 to around $26 now, vs. an increase of about 35% for the S&P 500 over this roughly 3-year period. Notably, TRIP stock has underperformed the broader market in each of the last 3 years. Returns for the stock were -5% in 2021, -34% in 2022, and 20% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 24% in 2023 – indicating that  TRIP underperformed the S&P in 2021, 2022, and 2023. In fact, consistently beating the S&P 500  – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Information Technology sector including MSFT, AAPL, and NVDA, and even for the megacap stars GOOG, TSLA, and AMZN. In contrast, the Trefis  High Quality (HQ) Portfolio , with a collection of 30 stocks, has  outperformed the S&P 500 each year  over the same period.  Why is that?  As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in  HQ Portfolio performance metrics . Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could TRIP face a similar situation as it did in 2021, 2022,  and 2023 and underperform the S&P  over the next 12 months – or will it see a recovery?

Our forecast indicates that Tripadvisor’s valuation is at $26 per share, which is in line with the current market price. Look at our interactive dashboard analysis on Tripadvisor Earnings Preview: What To Expect in Q1? for more details.

(1) Revenues expected to come in line with consensus estimates 

Trefis estimates Tripadvisor’s Q1 2024 revenues to be around $395 M il , in line with the consensus estimate. The company’s Q4 revenues rose 10% y-o-y to $390 million. Its adjusted Q4 EBITDA of $84 million, or 22% of revenue, came in better than expected due to a favorable channel mix and disciplined marketing spending. Tripadvisor’s sales shot higher in fiscal 2023 to an all-time high value of $1.8 billion, reflecting a 20% annual growth. The company’s Viator segment allows third parties to list bookable experiences on its platform. It then collects the payment through travelers’ bookings, pays the experience organizer, and keeps a cut for itself in a much similar way to how Airbnb does business. Viator now contributes to 40% of total revenues and its revenues grew almost 50% y-o-y to $737 million in FY 2023.

For the full year 2024, we expect Tripadvisor revenues   to rise 10% y-o-y to nearly $2 billion.

(2) EPS likely to match consensus estimates

Tripadvisor’s Q1 2024 earnings per share (EPS) is expected to come in at 2 cents as per Trefis analysis, matching the consensus estimate. Tripadvisor’s net income for the full year was $10 million, or $0.08 diluted EPS – down 42% year-over-year (y-o-y). The company spent aggressively on marketing and technology development, especially in the Viator and core Tripadvisor platforms.

(3) Stock price estimate matches the current market price

Going by our Tripadvisor’s Valuation, with an EPS estimate of around $1.07 and a P/E multiple of around 23.9x in fiscal 2024, this translates into a price of $26, which is in line with the current market price.

It is helpful to see how its peers stack up. TRIP Peers shows how Tripadvisor’s stock compares against peers on metrics that matter. You will find other useful comparisons for companies across industries at Peer Comparisons.

[1] Returns as of 5/6/2024 [2] Cumulative total returns since the end of 2016 Invest with  Trefis Market-Beating Portfolios

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Kayak CEO Says Online Travel ‘Still Sucks’ and He Wants to Stay ‘Until It’s Fixed’

Dennis Schaal , Skift

May 11th, 2024 at 6:34 PM EDT

Twenty years later, Google is the leading global player in travel metasearch. Steve Hafner can do little about that but argues travelers can snack on Google but they should come to Kayak for better results when they are ready to book.

Dennis Schaal

Leaders of Travel: Skift C-Suite Series

What are the top trends impacting hotels, airlines, and online bookings? We speak to the executives shaping the future of travel.

The Kayak website launched to the public in May 2004 as a pioneer in travel metasearch.

When Kayak had its IPO in 2012, it was such a big deal in the travel and tech world that Skift published a live blog to follow every development.

A few months later, Priceline Group – now called Booking Holdings – announced a deal to scoop it up  $2.1 billion.

We caught up with Steve Hafner, co-founder and CEO of Kayak and also OpenTable, on a Zoom call while he was in an Uber in Manhattan. We also exchanged emails with the other co-founder, serial entrepreneur Paul English about the 20th anniversary of Kayak’s launch.

The interview has been edited for clarity and brevity.

Dennis Schaal: So, Steve, why are you still here? Why are you still at Kayak?

Steve Hafner: Because online travel hasn’t been solved yet. So look, it’s come a long way in the last 20 years. I think when we started, online travel really sucked. It just made the transition from offline to online, but it was still like a sea of blue links and nine flight results. When you made a change, you had to wait for something to load.

It’s a lot better now. 20 years later, we have mobile apps, we have thousands of search results. It’s pretty easy to buy stuff now. But it still kind of sucks, because it’s overwhelming – the amount of information now.

I’m hopeful that 20 years from now, it’ll be a lot better. AI is a new technology everyone hopes will help it get there. But it still sucks. So until it’s fixed, I’m still going to be around.

Future at Booking Holdings?

Perhaps Glenn Fogel (CEO of Kayak’s parent company, Booking Holdings) will retire soon (or eventually). Most founders, after they sell the company, they’re gone in a year. But you landed in this gigantic company with a lot of opportunities. So what’s ahead for you at Booking holdings?

I have no idea. It’s never been about the job – it’s been about the product. We have this problem called online travel and we want to make it better. And we have a lot of unfinished business, so I’m delighted to still be with the company all this time.

I wish we had completed the job and actually solved it, but we haven’t. As long as Booking Holdings is willing to have me stick around and I can be helpful to our team, then I’ll be here. It has nothing to do with my role at the company.

Kayak’s Early Days

Any thoughts on the the early team that launched Kayak, and the process for launching Kayak? How you guys got started?

The alchemy of successful company is kind of hard to pin down but it starts with a good idea. A great team, sufficient capital, and then luck. And we got all those pieces put together at the right time.

So that original founding team was phenomenal: Paul English, Bill O’Donnell Paul Schwenk, Jeff Rago, but a bunch of guys. But I think the talent level now at Kayak is just as good as it was back then. If not better.

We emailed Kayak co-founder and former chief technology officer Paul English for his thoughts on Kayak after 20 years.

Paul, any thoughts on the 20th anniversary of the launch of Kayak?

Paul English: Hello from Rome. What strikes me most about the early years of Kayak is how lucky we were with the team we hired. It is not false modesty to say Kayak would never have been successful without the original team. I’m still a fan of Kayak. I use it all the time. If I were to work at Kayak again, I would turbo charge Trips . [For more about English’s career at Kayak, read this .]

Kayak vs. Google

Steve, I mentioned to somebody on my team that I’m interviewing you around the 20th anniversary of Kayak. And they said to me, ‘Look, Google is eating their lunch, and Open Table has been overtaken by Rezy and others.’ What would be your answer to that?

I’d say your colleague is misinformed. We have a very successful business, and OpenTable is a very successful business. Yeah, we’re not as big as Google is. But we never intended to be, and we’re having a lot of fun, we’re building great products.

And we’re very profitable. Not a lot of companies get to say that. I remember my first venture capital pitch when we started Kayak. Because Google existed when we started Kayak.

We said, this is what we’re going to do: We’re going to build this metaserarch site, it’s going to find travel search results from across the web, because there were no mobile apps then. We’re going to direct consumers to the place where they want to buy, and we’ll make money that way.

It’s a big enough category that we can be a very successful number two. And that’s kind of where we are. And it’s never been about being bigger than Google. It’s about being better than Google. And we are better than Google.

In what way?

If you come and do a search on Kayak as a consumer, you’re gonna get better search results than you are on Google – more options, better prices, more accuracy.

So, go to Google to snack in a lot of categories, not just travel. But go to Kayak when you’re ready to buy. And, by the way, just to shift to OpenTable. Tell your friend that OpenTable has 55,000-plus restaurants and we fill 1.7 billion seats per year. We have a very profitable business. So he’s mistaken.

Google declined to comment on whether Kayak is better than Google.

Selling to Priceline

Do you think Kayak would have done better if you had stayed independent? A lot of times brands get lost within larger companies. Do you think Kayak might have done better on its own?

Absolutely not. When when they bought us, we were in five countries and three languages. Now we’re in 60 countries and 25 languages that let us operate independently. We’ve done $700 million worth of acquisitions since then. We haven’t been distracted by public markets.

Just just take a look at Trivago or Tripadvisor? They’re independent — how well are they doing?

Being independent is overrated. We’ve been able to do anything we’ve wanted to do. Glenn and BHI (Booking Holdings Inc.) have been very supportive of our mission. And it’s been a pleasure being part of the bigger group.

Learnings From Kayak Hotels

How do you look back on your foray into Kayak Hotels at this point? [Kayak opened three Kayak-branded hotels but exited the business after around two years in late 2022.]

It was worth a try. One of the things that’s that’s a hallmark of Kayak is we’ve never shied away from being innovative and taking risks and Kayak Hotels was a big risk.

But at the time, you have to remember, Sonder and Selena and a bunch of other companies were pursuing this space. And so we thought we’d take a sniff, too.

And what we quickly learned is there’s a reason OpenTable doesn’t have restaurants, there’s a reason Kayak doesn’t have hotels. Because the actual guest experience involves a lot more than just great technology. And as we got into it — everything we do at Kayak is test, learn and then scale — Kayak Hotels never got past the learn scales. We quickly learned it’s not a great business to be in.

When you say OpenTable doesn’t have restaurants do you mean OpenTable doesn’t own restaurants?

OpenTable doesn’t operate restaurants. Its sweet-spot is software. And we learned that Kayak’s sweet-spot is software, as well.

Was OpenTable a Good Deal?

Do you think it was a mistake for Booking to buy OpenTable? Because at the time, everybody was talking about the synergy between travel and dining? It seems logical, but it hasn’t really worked out like that.

OpenTable was a great acquisition. It’s a phenomenal company. It hasn’t had the synergies that we had hoped with with Booking.com because dining and accommodations are fundamentally different. Most dining is local. It’s not travelers. You don’t use the Booking.com app to book a restaurant. You use the OpenTable app.

It’s been an accretive acquisition, let’s leave it at that. And, personally, I wish they hadn’t paid more for OpenTable [$2.6 billion in 2014] than they paid for Kayak [$2.1 billion in 2013] because Kayak’s a more profitable company. But it is what it is.

Accomplishments and Regrets

What would you say would be the three big accomplishments at Kayak and OpenTable over the last year? 

On the Kayak side, we’ve always done the consumer site and meta really well. Since 2021, we’ve been working on Kayak Hotels, which didn’t pan out, but there’s also Kayak for Business.

I think Kayak for Business now is actually on a great track. So we’ve got three big enterprise clients: PricewaterhouseCoopers, Tripadvisor, and Diageo. And we’ve got more coming. And then we’ve got 30,000 small accounts that have self signed up and are using the site.

Are you doing managed travel?

Businesses can use us to see where all their employees are traveling. You can upload your own business travel policy and negotiated rates. And then the coolest thing is no expense reports need to be filed and no credit card that needs to be used.

You don’t need your own personal credit card; we have a virtual credit card. And then it’s direct billing via the blockchain right back to like American Airlines, for example. So they save the 2% processing charge on on credit cards.

And how’s the blockchain used?

So that’s the ledger for where a transaction happens and the last person to touch it. So if you’re a traveler, and you book on Kayak, you may [actually] be booking on AA.com. And if you use a corporate travel agency to change the itinerary that gets fed into the blockchain. There’s a digital ledger.

So any contact point knows exactly what’s happened throughout the the customers journey. It’s pretty cool stuff.

What are some of your biggest regrets about Kayak and some of the things that you’re most proud of about Kayak?

We had the opportunity to buy 25% of Uber early on, and we did not do that. Which is a pretty big regret. I think we might have sold a little too early. I’m glad we sold. But that’s turned out OK, as well.

And then an early days thing was we started the website with Adobe Flash? We shouldn’t have done that. That cost us about a year of development work.

But overall, we’ve been successful the last 20 years, I don’t have a lot of regrets. We’ve been extremely fortunate. We’ve had a great team, and had a great run. And I expect the next 20 years could be as good, if not better.

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Tags: blockchain , booking holdings , booking.com , business travel , business travel newsletter , glenn fogel , ipo , IPOs , kayak , leaders of travel , mergers , mergers and acquisitions , metasearch , online travel newsletter , opentable , paul english , steve hafner , travel tech , uber

Photo credit: Kayak and OpenTable CEO Steve Hafner. Kayak

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I Have These 12 Under-$30 Resort-ready Dresses on My Radar for a Trip to the Italian Coast

Prices start at $10.

Travel + Leisure

My excitement for summer travel is in full swing, especially since I’m returning to Italy for a second time in August. I’ve already started saving outfit inspiration to make the most of my wardrobe (and luggage space). Right now, I’m searching for resort-ready dresses, particularly for daytime exploring and sit-down dinners. 

Perusing Walmart for great fashion finds is essentially my nine-to-five job, and I’ve already found so many expensive-looking dresses for under $30. I rounded up 12 on my travel wish list from brands like Jessica Simpson , Sofia Jeans by Sofia Vergara , and Time and Tru .

Keep scrolling to see what I’m adding to my virtual cart, with prices starting at $10.  

Best Resort-ready Travel Dresses at Walmart

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Jessica Simpson Amelia Ruffle Short Dress

While I gravitate towards midi-length dresses most of the time, a short dress is a welcome alternative in my lineup on high-temperature days. The bright orange and pink floral pattern on this Jessica Simpson ruffle dress will be a nice change of pace from my typical neutral wardrobe, and it’ll be an easy nighttime dinner outfit with a pair of sandals. This is the perfect ensemble for enjoying some pasta and an Aperol spritz. 

Sofia Jeans by Sofia Vergara Double Ruffle Convertible Neck Maxi Dress

Off-the-shoulder necklines are always flattering; this one is convertible, so it can also be worn with the straps on tank top style. One shopper said the ruffled dress fits beautifully and gets them so many compliments, while another loved the comfiness so much that they bought it in multiple colors. I’m currently between the purple floral pattern and the all-black, but it’s also available in a red palm leaf print.  

Time and Tru Cotton Blend Tiered Eyelet Dress

I used to avoid white dresses (I stain almost everything I wear, oops!) until I realized how beautiful the color looked on my sunkissed skin. This tiered eyelet style is available in white, pink, and navy and is perfect for casual outings with sneakers or dressed up with wedges. What really sold me on the dress was the lining and pockets. I’m considering using it as a cover-up over a swimsuit for a boat ride excursion. 

Sofia Jeans by Sofia Vergara Asymmetrical Gathered Dress

For an elevated dress that’s a smidge sexier, this Sofia Jeans by Sofia Vergara gathered style features flattering ruching and an asymmetrical hem that one reviewer said looks and feels high-end. I’m considering snagging this in more than one color, especially for just $20, since it’s made from a stretchy, body-hugging fabric that’ll be easy to walk and sit in. 

Keep scrolling for more travel-ready dresses I have my eye on at Walmart for under $30.

Time and Tru Cross Back Dress with Tiered Skirt

Time and tru midi double cloth dress, no boundaries maxi dress, time and tru v-neck smocked midi dress.

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Main technology solutions planned to be implemented by travel agencies worldwide 2023

A 2023 global survey examined the main technology solutions planned to be implemented by leisure travel agencies over the next 12 months. New distribution capabilities (NDC) ranked as the main tech solution to be adopted in the coming year, as indicated by 40 percent of responents.

Main technology solutions planned to be implemented by leisure travel agencies worldwide in the next 12 months as of 4th quarter 2023

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150 respondents

senior leaders of leisure travel agencies that are involved in technology investment; figures refer to travel agencies that deal directly with the public and exclude online travel agencies (OTAs) and business travel agencies (BTAs)

The countries involved in the study included Brazil, China, France, Germany, India, Mexico, South Korea, the United Arab Emirates, the United Kingdom, and the United States.

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Measuring the private jet market in 2024.

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Last night, I returned home to Miami after spending a bit longer than I had anticipated in San Diego, where I had been attending the Spring meeting of the International Aircraft Dealers Association, also known as IADA. In fact, I wasn’t supposed to be at home today.

I was supposed to be visiting my father, who lives in what the airlines call a spoke city. In other words, to get there, you must change flights at one of their hubs.

Thanks to American Airlines, it didn't work out that way, which is as good a segue as any into why private aviation is likely to be more relevant than ever for those who can afford it, emphasis on afford.

So how is business in the world of private jets?

After the pandemic led demand spike, is the industry headed up, down, or somewhere in between?

Managing Director of AeroDynamic Advisory Richard Aboulafia, who has been tracking aviation for more than 30 years, calls it "one of the more confusing market cycles I've seen."

The IADA dealers , who operate like real estate agents for consumers and corporations who want to buy private aircraft, particularly preowned ones, are naturally optimistic.

The group's members, who represent about 50% of preowned transactions globally, saw a 5.9% year-over-year increase in sales, with 253 closings in the first quarter of 2024.

Like their brethren in the property market, brokers need something to sell, something that was lacking as inventory hit record lows during 2022.

Rollie Vincent of Rolland Vincent Associates, an industry analyst and former manufacturer and fractional executive, said while inventories are still well below their 10-year averages, they have rebounded from substantially from those low points (image below).

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Available business aircraft inventory is below historic averages but up from the record lows of ... [+] 2022, according to analyst Rolland Vincent & Associates.

Back then, buyers eschewed standards such as pre-buy inspections, which were more difficult due to pandemic restrictions, and simply wired millions of dollars to buy used private jets based on pictures. Many deals were made before aircraft were even listed.

As I wrote last year, even as the bloom was off the rose, aircraft owners saw the benefits in being discreet, concerned their pilots would leave before they could sell their jets.

Today, the outlook is bifurcated.

Vincent surveys over 500 flight departments and users quarterly. His research shows a diminished, slightly negative sentiment over the past eight quarters from North American respondents who represent the industry's largest market of buyers.

Supply, not demand, is holding back business aviation, according to analyst Richard Aboulafia ... [+] speaking during the International Aircraft Dealers Association Spring Conference, held earlier this week in La Jolla, California.

Vincent told the audience that their outlook coincides with lower U.S. consumer and business confidence and a shift in the Federal Reserve's approach to interest rates, "that money should cost money."

At the same time, Aboulafia's research paints a different picture.

He says the industry is constrained not by demand but by supply.

He says manufacturers are still struggling to work their way through backlogs, perhaps prudently eschewing the huge investments it would take to ramp up production versus the memories of getting too far over their skies leading up to the 2008 financial crisis.

"For the first time, supply is the problem, not demand," he told attendees.

Aboulafia said corporate profits and the strength in equities markets are reasons to be bullish about buyers.

Ron Draper, President and CEO of Textron Aviation, told attendees of IADA's Spring Conference, ... [+] despite improvements, OEMs are still dealing with "acute" supply chain issues as they work through order books.

Ruben Kempeneer, President of Aviation International News , a trade publisher, said corporate flight departments are increasingly looking to fractional shares, jet cards, and charter flights, not to replace owning jets, but as additional solutions. Flight trackers who circumvent privacy measures have companies concerned that missions to scout out or negotiate M&A deals could be seen by competitors.

While Argus TraqPak data shows North American private flights in 2023 were down 3.7% from the 2022 peak, last year still ranked as the industry's second busiest year and was 17.5% ahead of 2019's pre-Covid numbers.

For those looking to read the tea leaves, perhaps it’s worth tracking deliveries of new private jets to NetJets.

By far the biggest buyer and operator of private aircraft, the unit of Berkshire Hathaway has signed options deals for up to almost 2,000 private jets it could buy over the next 15 years.

Since 2010, annual worldwide deliveries of new jets have ranged from 672 (in 2012) to 809 (in 2019), so what NetJets ends up converting to firm orders is a big piece of the market.

Keynote speaker Ron Draper, CEO of Textron Aviation, which has an agreement that could see it sell 1,500 of its jets to NetJets, told the dealers, "When they're selling, we're selling."

WingX, which tracks flight hours across the different aviation segments, including airlines and cargo, recently noted that NetJets’ flying last month was 50.3% ahead of where it was pre-pandemic 2019.

Aside from privacy, an increasing population of UHNWs and corporate profits, airlines are still boosting private aviation providers. Last year, a Private Jet Card Comparisons survey found that 63% of subscribers considering private aviation cited airline delays and cancelations as a driving factor.

Of course, the wish to fly privately is constrained by one's ability to underwrite the not-insignificant expense of paying for the flights, around $8,000 per hour for a six-seat light jet.

Since I don't have $40,000 to spare, visiting Dad will have to wait. How it works out across an industry that vividly remembers the pre-2008 frenzy, the lost decade that followed the Great Recession, the bull market of 2021 and 2022, and wherever it is now, well, that’s much more difficult to say.

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