Allianz Partners
Group Communications

Brisbane, 3 May 2022

1.  

Greener journeys a key theme emerging from the Allianz Partners Global Travel Summit

The pandemic has led to a rise in the eco-conscious consumer, with a greater appetite for environmentally friendly journeys. As we enter a new-era, travellers are beginning to think about the environmental impact of their journeys and taking more responsibility for their own personal impact on the environmentᶦ. The renewed focus on greener journeys was a key theme emerging from this year’s Allianz Partners’ Global Travel Summit.

The Allianz Partners’ Global Travel Summit took place recently under the theme of ‘Wonderland’. The 3-day virtual event, with over 1,000 attendees, focused on the emerging trends in the travel industry as the world emerges from the global pandemic and faces a new set of challenges as a result of geopolitical and economic uncertainly. The new world holds in it a new era of opportunity for the travel industry to be a leader for the eco-conscious consumer.

Allianz Partners partnered with global consumer trends agency, Foresight Factory, and other industry experts to explore the current and upcoming trends impacting travel, allowing Allianz Partners to stay ahead of the curve in terms of meeting the evolving needs of customers around the world.

The trends presented at the Summit were based on extensive research carried out by both Foresight Factory and also Allianz Partners’ Customer Lab research, which found that it’s now – more than ever – socially desirable to put the planet first and make more ethical, sustainable, and greener choices. This was supported by research findings that globally six in ten (60%) families, aged 25-40, say they will pay more attention to the environmental impact of their travel in the future, compared to pre-pandemic. Of the Australian respondents, only 41% of families, aged 26-40, said they will do soᶦᶦ. Over seven in ten consumers in Great Britain, Germany, and the USA say that sustainability filters on travel sites would help them make better choices and to live more sustainably,ᶦᶦᶦ.

The social ethics of travelling is weighing on the minds of travellers as they consider the various eco-conscious travelling options available to them. Over half (56%) of families aged 25-40 surveyed globally are intending to travel less in the futureᶦᵛ further reducing their environmental footprint. Of the Australian respondents only 37% of families, aged 26-40, are intending to travel less in the future. The slow travel trend, which positions the journey itself as a holiday destination or activity, also promotes more sustainable holiday options like train travel or travel by recreational vehicle (motorhomes, campervans, coaches, caravans).

Speaking from the Summit, Joe Mason, Chief Marketing Officer - Travel at Allianz Partners, said, “At this year’s event, we heard about the emerging trends in the travel industry, and it’s clear that a strong travel recovery is being faced with a new set of challenges. Economic volatility, geo-political unrest, and a rising cost of living – coupled with a desire to make sustainable and eco-friendly choices – will all have a lasting impact on our industry.

“The need to adapt to this new travel landscape has never been more important and is a priority for us at Allianz Partners. We are helping our customers and partners navigate through these challenging times and are focused on turning travel insurance into full end-to-end travel protection and we’re excited about what the future holds.

Damien Arthur, Regional Head of Travel Product Management and Innovation, APAC commented “Travel restrictions have only recently been lifted in Australia, so we’re a few months behind trends emerging in Europe. As expected, the key motivation for international travel we’re seeing is for visiting friends and relatives. This is also driving longer trip durations. However with almost two years of closed borders, the travel ecosystem is playing catchup, with airline capacity and capability quickly following the increased demand. With customers and governments gaining confidence that the risks associated with international travel can be managed, I expect we will see a wider choice of destinations and relaxed COVID-19 entry requirements which will support the continued rebound of leisure travel.

The travel industry is not immune to the economic outlook. Another dominant topic from the Summit pointed to the impact of economic conditions on confidence in travel. Where people travel, how long they travel for and how much they spend is directly impacted by inflation, rising energy costs, and a general rise in cost of living.

Households are feeling the direct impact of the geo-political unrest with supply chain issues causing major economic upheaval due to a surge in gas and food prices. For the travel industry, it is having a knock-on effect on the cost of travel, with long-haul flights, in particular, becoming increasingly expensive. However, it is also impacting prices for travel-related expenditures, such as hotels and restaurants who may pass these price hikes on to consumers.

Ultimately, the risk is that leisure travel may no longer be seen as a priority by consumers who have limited surplus income each month and instead be considered a luxury they cannot afford.

The way we work has changed completely as a result of the pandemic and as a result, business travel has been obliterated. Over the past two years, as remote working and virtual conferences took center stage, business travel has been drastically reduced. With the re-opening of borders, companies now are finding ways to re-assess their ways of working. Is there a need or a necessity for business travel, or is it simply a nice to have?

A reduction in business travel has reduced costs for companies and helped them to lower their carbon emissions which has helped businesses to meet sustainability targets. However, many employees long for face-to-face interaction with their clients and customers. Businesses are now at cross-roads between meeting sustainability targets and employee desires. As employees get back into the office the correlation between a desire for, and appetite for, business travel has increased with some companies using business travel as a recruitment and retention policy. Businesses are willing to change their policies in order to keep their staff engaged.

The world is constantly evolving. The rise of the eco-conscious consumer following the Covid-19 pandemic, coupled with a turbulent geopolitical landscape, creates some headwinds for an otherwise robust travel recovery.

ENDS

For further information about the Allianz Partners Travel Summit, please contact FleishmanHillard: allianzpartners@fleishmaneurope.com

Australian Press Contact

Thrive PR allianzpartners@thrivepr.com.au

Allianz Partners is a world leader in B2B2C insurance and assistance, offering global solutions that span international health and life, travel insurance, mobility and assistance. Customer driven, our innovative experts are redefining insurance services by delivering future-ready, high-tech high-touch products and solutions that go beyond traditional insurance. Our products are embedded seamlessly into our partners’ businesses or sold directly to customers, and are available through four commercial brands: Allianz Assistance, Allianz Automotive, Allianz Travel and Allianz Care. Present in over 75 countries, our 19,400 employees speak 70 languages, handle over 58 million cases each year, and are motivated to go the extra mile to offer peace of mind to our customers around the world.

Allianz Partners’ Customer Lab, an in-house consumer intelligence incubator, supporting the Allianz Group and its partners in understanding their customers’ key needs, attitudes and drivers of choice towards insurance and assistance solutions. Their proprietary quantitative database of customer insights surveyed over 60,000 customers across 27 countries around the world including 2500 Australian consumers, generating over 25 million behavioural data points. In 2022, a new wave surveyed an additional 23K consumers across across Mexico, Thailand, Japan, Singapore Switzerland, Austria, Turkey, Slovakia, Romania, Portugal and Greece and included questions related to COVID emerging new behaviours.

Foresight Factory is a leading international consumer futures business. Our core expertise is based on identifying and forecasting social and consumer trends and determining the extent of their impacts on markets, services, brands and products. Since our launch in 1996, we have worked to meet the strategic needs of businesses through the application of insight. We identify, measure and examine trends, attitudes and behaviours through the rigorous analysis of quantitative and qualitative research. Our robust programme of research provides businesses with the grounding and confidence to anticipate the likely impact of the evolving consumer environment.

ᶦ Foresight Factory, Base 854-4637, online respondents per country aged 16+, March 2021

ᶦᶦ Allianz Partners’ Customer Lab 2021, surveying 23K consumers across Mexico, Thailand, Japan, Singapore Switzerland, Austria, Turkey, Slovakia, Romania, Portugal and Greece, including questions related to COVID emerging new behaviours. Trends come from Foresight Factory Collision.

ᶦᶦᶦ Foresight Factory, Base 786-4550, online respondents per country aged 16+, May 2020

Allianz Partners’ Customer Lab 2021, surveying 23K consumers across Mexico, Thailand, Japan, Singapore Switzerland, Austria, Turkey, Slovakia, Romania, Portugal and Greece, including questions related to COVID emerging new behaviours. Trends come from Foresight Factory Collision.

ᶦᵛ Allianz Partners’ Customer Lab 2021, surveying 23K consumers across Mexico, Thailand, Japan, Singapore Switzerland, Austria, Turkey, Slovakia, Romania, Portugal and Greece, including questions related to COVID emerging new behaviours. Trends come from Foresight Factory Collision.