Uneven outcomes for hotels, airlines and travel agencies
As summer draws to a close, we are unveiling the results of the Natixis Payments Observatory on Tourism1, which focuses on three types of players: travel agencies, airlines and hotels.
An analysis of transactions by the French highlights major differences between the players: not everyone has benefited from the much-awaited ‘catch-up’ in the same way. Currently, it is hotels that are making the most of the summer uptick, thanks to a higher average order value and more transactions compared to pre-COVID summers. Airlines and travel agencies, however, are lagging behind.
Average order value soars for hotels – and plummets for travel agencies
Because of the catch-up effect, the total amount of transactions in the hospitality sector soared in July and August to levels above those observed in the summer of 2020, and even in 2019 and 2018.
- +43 points compared to 2020
- +23 points compared to 2019
- +34 points compared to 2018 (aggregate of transactions made in July and August)
This is mainly because of an average order value higher that of previous years: +€35 compared to 2019, from €122 to €157. But the number of transactions has also increased, by 5.7%.
For travel agencies, however, the trend is quite different. The average order value is lower than before the pandemic: down by €92 in 2021 compared to 2019 (it was €458 in 2019, and only €366 in 2021). The number of transactions is also down by 32.1% over the first 8 months of the year.
Airlines are also not out of the woods yet. The average order value is down (to €215 from €227 in 2019), and the number of transactions remains low compared to pre-COVID years. Cumulatively over the first eight months of the year, the number of transactions is 40% lower than in 2019.
The young are driving the industry’s recovery
Airlines are seeing younger people account for more of their sales: compared to 2020, those under 24 have increased their spending by 32%. On the other hand, spending decreased by 14% for those in the 55-64 age group and by 21% for those over 65.
Airlines: changes in spending in the January-August period, from 2020 to 2021
![](https://dalenys.annarenaudin.net/wp-content/uploads/2021/09/visuel-cp-etudeecomm-opinionway-sept21-compagnie-aerienne.jpg)
It is a similar trend for hotels: those under 24 have increased their spending by 67% compared to 2020, while those over 65 increased it by 1% only.
Hotels: changes in spending in the January-August period, from 2020 to 2021
![](https://dalenys.annarenaudin.net/wp-content/uploads/2021/09/visuel-cp-etudeecomm-opinionway-sept21-hotellerie.jpg)
The trend is even more marked for travel agencies, where those under 35 are the only ones to have spent more than in 2020.
Travel agencies: changes in spending in the January-August period from 2020 to 2021
![](https://dalenys.annarenaudin.net/wp-content/uploads/2021/09/visuel-cp-etudeecomm-opinionway-sept21-agences.jpg)
Players who have gone digital
What do all these players have in common? A strong digital transformation.
Airlines were already highly digitised before the pandemic (e-commerce accounted for 92% transactions in 2019), and this trend has increased further with 94% of transactions done online in 2021.
For the other players, who were highly dependent on their physical presence before the crisis, the jump to e-commerce is unprecedented:
- Hotels: 56% of all transactions have been done through e-commerce in 2021 vs. 42% in 2019
- Travel agencies: 87% of all transactions have been done through e-commerce in 2021 vs. 77% in 2019
1 Natixis Payments Observatory, industry analysis based on electronic payment transactions by Banque Populaire and Caisse d’Epargne cardholders (22 million cards).