Episode 4 | September 21, 2020

How COVID-19 Changed Travel Behavior | Insights from Costco

Discover how COVID-19 changed travel behavior with Costco Travel’s Diya Loney. Learn about evolving trends, safety, and the future of vacations. #TravelTrends

How COVID-19 Changed Travel Behavior: Insights from Costco Travel’s Diya Loney

"Travel isn’t just about the destination anymore—it’s about safety, trust, and flexibility."

For many, planning a vacation used to be an exciting escape, a way to explore the world with minimal hassle. But since the COVID-19 pandemic, travel has become a calculated decision shaped by evolving restrictions, shifting consumer preferences, and heightened safety concerns.

In a recent episode of Insights Unlocked, hosts Janelle Estes and Michael Mace sat down with Diya Loney, a product manager at Costco Travel, to discuss how consumer travel behavior has changed—and what it means for the future of the industry​.

The 3 types of post-pandemic travelers

When COVID-19 hit in early 2020, the travel industry came to a sudden standstill. But as restrictions eased, three distinct types of travelers emerged.

1. The Eager Traveler

Some people refused to let the pandemic stop them from exploring. These individuals, who Diya describes as "those who, irrespective of the situation, still want to travel," found ways to book vacations despite the risks. They were more likely to seek out destinations with relaxed restrictions and were willing to navigate changing safety protocols​.

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2. The Cautious Planner

Other travelers took a wait-and-see approach. While they weren’t booking immediate getaways, they were still planning future vacations. “They may not be ready to travel right now,” Diya explains, “but they are still booking vacations for further out in the year or for next year because they’re hoping things will get better.”

3. The Hesitant Non-Traveler

Then there were those who weren’t comfortable traveling at all. “Considering how uncertain the times are, some people are simply unwilling to book or travel at all,” Diya notes. For these individuals, the risks outweighed the rewards, leading them to indefinitely postpone travel plans​.

"Some people are simply unwilling to book or travel at all." – Diya Loney

Understanding these distinct traveler personas has helped companies like Costco Travel adjust their offerings and communication strategies.

From vacation packages to road trips: how travel behavior has shifted

One of the most noticeable changes in travel behavior has been a shift away from traditional vacation packages. Pre-pandemic, Costco Travel’s curated vacation bundles—featuring all-inclusive resorts, theme parks, and international flights—were some of their best-selling products. However, travelers today are prioritizing flexibility and control.

“People are not as comfortable getting on flights anymore,” Diya explains. “Our rental car and hotel-only bookings have seen a huge bump because people want to plan their own vacations closer to home.”

Instead of hopping on a plane, many travelers are opting for drivable getaways to secluded destinations like national parks, private rentals, and remote beaches. They’re seeking experiences that minimize contact with crowds while still providing a much-needed break​.

“The rental car and hotel-only part of the business is seeing a huge bump.” – Diya Loney

Building  consumer confidence through transparency

With shifting regulations and lingering uncertainty, trust has become the new currency in travel. Travelers want to know that the places they’re booking are safe, clean, and flexible.

Diya emphasizes Costco Travel’s commitment to providing up-to-date information on safety protocols, refund policies, and destination-specific restrictions. “We are very careful about our marketing,” she says. “Even if a destination opens up, we wait and see if everything is going the way they wanted it to go before we start selling.”

This cautious approach helps build consumer confidence, ensuring that Costco members feel secure in their travel decisions.

"We don't want to put our members through an experience that was unhappy for them." – Diya Loney

Contactless travel: the new standard

In a world where people once sought high-touch hospitality, today’s travelers want low-contact convenience. The pandemic has accelerated demand for contactless services, from mobile check-ins at hotels to self-service rental car pickups.

"Previously, great customer service meant frequent interactions with hotel staff," Diya said. "Now, it’s about providing a seamless, contact-free experience that makes travelers feel safe."

Hotels and rental car companies have responded by enhancing their digital experiences, ensuring guests can book, check in, and access services with minimal human contact.

"People just don’t want to be in touch with others anymore." – Diya Loney

What lies ahead: the future of travel

While no one can predict exactly what post-pandemic travel will look like, Diya believes some changes are here to stay.

1. Stricter sanitation standards

"I don’t think people can ever go back to being as carefree about some of these vacations as they used to be," Diya says. Hotels, airlines, and cruise lines will likely maintain enhanced cleaning protocols for years to come​.

2. Increased demand for flexible booking

With uncertainty still looming, lenient cancellation policies have become a major factor in booking decisions. Travelers want the ability to cancel or reschedule plans without penalties.

3. The rise of domestic and nature-based travel

International travel restrictions have pushed many people to explore destinations closer to home. As a result, national parks, road trips, and remote getaways have surged in popularity.

"Travelers today want flexibility, safety, and transparency more than ever before." – Diya Loney

Earning trust for the long term

Ultimately, Costco Travel’s approach is rooted in trust, customer-first policies, and adaptability.

"This is the time when companies should focus on understanding their consumers," Diya says. "If you lose their trust now, there’s no way to earn it back."

For businesses in the travel industry, the lesson is clear: consumer trust is everything. By prioritizing transparency, flexibility, and seamless experiences, brands can not only survive these uncertain times—but come out stronger on the other side​.

“Right now, we’re just making sure we’re making the right decisions for our consumers and preparing for when travel comes back.” – Diya Loney

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