Expedia’s 2023 Travel Trends predict a “global shift in mindset”

The Expedia Group recently announced its Travel Trends for 2023. After surveying 24,000 travelers across 17 countries through Expedia, Hotels.com, and VRBO, the report coined 2023 as the year of the “no-normal.” Jon Gieselman, president of Expedia Brands, explained, “we’re seeing a surge in trips to culture capitals, a new wave of interest in wellness retreats, and a spike in demand for outdoor destinations beyond just beaches and mountains — not a new normal, but people branching out to unexpected trends in what we’re calling the ‘no-normal.’”

There’s no doubt that the pandemic disrupted the flow of all industries, but none more so than travel. As the world has slowly reopened, preferences were changed forever, leaving the travel industry scrambling to characterize the new consumer mindset. Driven by a top-down worldview, we have identified six key megatrends that underscore the changes in behavior mentioned by Gieselman. Our team uses these emerging trends to guide the construction of our purpose-built short-term rental portfolio, directly impacting everything from our acquisitions strategy to design and operations.

There’s no doubt that the pandemic disrupted the flow of all industries, but none more so than travel. As the world has slowly reopened, preferences were changed forever, leaving the travel industry scrambling to characterize the new consumer mindset. Driven by a top-down worldview, we have identified six key megatrends that underscore the changes in behavior mentioned by Gieselman. Our team uses these emerging trends to guide the construction of our purpose-built short-term rental portfolio, directly impacting everything from our acquisitions strategy to design and operations.

Expedia added an empirical perspective to our macroeconomic insights and demonstrated the true extent of these changes. Travelers are no longer going with the status quo; they are creating it. As more travelers “ditch the conventional and veer off course for all-new experiences,” Expedia projects that the next year of travel will be filled with non-conformity and guided by unique adventures. Or, as we put it, unique > generic.

From the hospitality perspective, the data shows travelers are looking for impeccable amenities and distinct vibes when booking stays. More than 50% of travelers looking for vacation rentals with family or friends say that amenities are one of the most important considerations when booking. Couple this with more travelers preferring one-off experiences, and an opportunity exists to challenge industry orthodoxies by reworking the traditional hospitality model. By proactively engaging guests to understand who’s coming, what they want to do, and what a successful trip looks like, hosts are better prepared to delight every guest.

The travel industry isn’t immune from the challenges in the broader economy, and the report shows that nearly 25% of travelers plan to spend more carefully in 2023. With a heightened focus on where each dollar is spent, optionality will be key moving forward. We see this as a challenge for the hotel model, where each guest pays for amenities regardless of if they use them. In our operating model, guests can select from a la carte amenities, including in-house chefs and Peloton bikes, empowering them to choose the extras that provide the most value to them while saving money on those that don’t.

As the world continues to evolve, we at Stomp Capital believe the change in mindset highlighted by Expedia’s report is just the beginning. In our view, we are in the very early innings of a generational shift in consumer preferences that will provide a massive opportunity for disruptors in the hospitality space to win market share from traditional operators. For us, this means we have a chance to be ahead of the curve and develop custom-built, short-term rentals in unique locations that inspire creative energy, get people excited, and create stronger relationships with people around them.