Introduction
Between 2019 and 2022, the COVID-19 pandemic has affected the world in many ways. Although the virus continues, the world is returning to the previous international and local travel rates. However, the habits and beliefs of the people impacted by the pandemic have changed drastically during this period.
The lack of movement and positive experiences, and the need to stay home for work and leisure, have contributed to people’s desire for exciting and extravagant events. According to O’Keeffe (2022), the new view took the shape of “splurge-cations” – vacations defined by a high degree of comfort, increased expenses, and a feeling of luxury. As the desire to travel grows and the pandemic becomes a less critical obstacle for tourists, one has to investigate the trend of splurge cations and see which factors contribute to its popularity.
Research demonstrates that people’s preferences for splurge-cations are explained by the previous years of travel restrictions. Taylor (2022) argues that the financial savings from the pandemic have allowed some households to afford trips with a higher degree of comfort. Moreover, the ‘fear of missing out’ (FOMO) concept influenced travelers to choose destinations with higher prices and more exciting and memorable experiences (Zaman et al., 2022). The growing rates of travel optimism and weakening restrictions contribute to individuals’ desire to spend more on their next trip. Thus, it is forecasted that the trend of splurge-cations will remain popular in the following years, with travelers wishing to make up for lost opportunities and having a more urgent need to experience vacations at a higher comfort level.
Application of JBTD
Consumer Profile
The consumer segment chosen for the analysis is “Conventional Family Life.” According to the classification by Roy Morgan Research (2023), Conventional Family Life describes households of adults (from 20 to 50 years old) with children. It prioritizes comfortable living, strong familial relationships, health, and success. Table 1 below presents a persona representation of a typical family in an easy-to-understand manner.
Table 1: “Conventional Family Life” persona representation
| Eric, Jane, John, Mary |  |
| Age | 38, 33, 9, 6, respectively. |
| City | Sydney, Western Australia. |
| Occupations (regarding parents) | Data analyst (Eric)/Retail agent (Jane). |
| Life-Stage | Middle-aged, married, in a relationship, happy family. |
| Major Life Goals | Happy life and success for children/family-oriented objectives. |
| Motivations | Children’s well-being, economic/political stability, luxurious vacations, family over career, and bright future. |
| Frustrations | Inability to travel due to COVID-19, inadequate environment for children due to pandemic restrictions, and concerns about the future due to political/environmental global issues. |
| Income | Middle-to-high household income of more than $140,000 with two working adults. |
| Social Media Use | High digital literacy and daily use of social media, including YouTube, Instagram, and Facebook. |
Families in this segment are interested in splurge-cations due to the frustrations generated by COVID-19 and a substantial desire to provide children with positive and memorable experiences. The primary source of information about this trend comes from social media, such as pictures from friends and travel advertisements, which the family uses daily. Families typically have a positive perception of splurge-cations because of their favorable portrayal in media, and want to try this type of vacation.
Progress to Be Done
Reviewing the customer profile and the trend of splurge-cation, one can see a common threat of comfort. On the one hand, individuals in the segment of Conventional Family Life strive for experiences that promise safety and happiness to them and their children. They wish to enjoy a higher quality in their everyday activities while balancing expensive and cheap product purchases.
On the other hand, splurge-cations are depicted as rare experiences that offer a higher degree of comfort and accommodations that minimize travel time, upgraded hotels, excursions, and group trips to see interesting sights, and more (O’Keeffe, 2022; Taylor, 2022). Thus, the customers want an emotional job to be done (JBTD) – to experience excitement, happiness, and comfort as a family. Moreover, during the post-pandemic period, they are likely to want new experiences for the household with a change of location, sightseeing, good food, and family learning (Pokora, 2022). The emotional job of feeling fulfilled and close-knit during and after the vacation is a major need for this consumer group.
Progress-making forces can demonstrate the desires of consumers and challenge their experience when considering a purchase. The force diagram depicting processes for the JTBD is presented below (Figure 2). First, one can look at the forces that promote the new choice for consumers. As noted above, the pandemic has resulted in many individuals feeling tired from staying inside and not being able to travel.
Now, as the restrictions continue to ease, it is possible for people to travel internationally again and enjoy different types of resorts and experiences. These factors push the situation – they create a need for new experiences and a change in the environment. Here, the magnetism of the new solution–splurge–cation arises, as it offers a new experience that performs the JTBD of an interesting and comfortable leisure activity.
Second, it is vital to review the forces that block change, including existing habits and anxiety related to new choices. The Conventional Family Life segment values savings due to the high chance of having a mortgage and similar large payments. Thus, these individuals may be used to cheap alternatives and stay-cations, finding interesting activities in the local area. Furthermore, the main fear connected to splurge-cations is going over the estimated budget, which leaves the consumer group outside their comfort zone and does not align with their priorities.
Innovation Concepts and Forecast
Concept Statement
Concept
Business offering a set of splurge-cation tours to popular locations for families that offer customizable benefits packages.
Details
Each travel tour includes a planned vacation with additional bonuses, such as TSA pre-checks, direct nonstop flights, rideshares, or private drivers. Moreover, clients have the opportunity to choose from high-class hotels and accommodations for the whole family, such as living in one suite and booking group or private tours to select destinations.
Objectives
To introduce pre-planned vacation tours that guarantee a trip for a family that prioritizes comfort and positive experiences.
The suggested concept presents a business idea focusing on customizable family tours. Focusing on the needs of the segment Conventional Family Life, the packages are designed with flexibility to ensure the best value for each consumer. The offered service aims to become popular among families seeking rare experiences and wanting to organize the greatest of all trips (GOAT) (Zaman et al., 2022). The potential risk of this concept is the limited number of locations that allow such services.
Forecast Analysis
Reviewing the offering in the macroenvironment framework of DENT-PC (Demographic, Economic, Natural, Technological, Political, and Cultural), one may analyze the impact of the economic factors on its success. Although the pandemic is subsiding and the restrictions are being lifted, many economies have been significantly affected by the logistical disruptions and labor changes during this period. According to Pokora (2022), inflation is an issue, and operational issues are common in travel-related businesses. This may be challenging for the proposed business as it must offer various services.
Nevertheless, the current trends suggest that more and more people want to increase their spending on vacation time as they aim to make up for the lost time (Pokora, 2022; Zaman et al., 2022). In one survey, almost half of the respondents were willing to set aside a bigger travel budget (Pokora, 2022). This statistic indicates that economic factors such as inflation and recession present a moderate rather than significant challenge to the concept.
Using the SIP-CCC (Suppliers, Intermediaries, Publics, Competitors, Customers, Company) microenvironment framework, one may review the factor of customers as the most influential. As noted previously, the trend of splurge-cations is founded on people’s desire for new experiences after pandemic restrictions. Pokora (2022) forecasts the high popularity of luxury travel among customers, including adults between the ages of 18 and 34.
However, the selected segment of Conventional Family Life requires family vacations, implying more tourists in one group and more responsibilities and expenses for parents. While families may want to prioritize comfort and engaging experiences, they may also hesitate to spend money on luxury trips. Here, the main risk lies in creating an inflexible offering that would not allow customers to choose which parts of the trip to upgrade. The service should be customizable to overcome this challenge and offer clients options for splurging in accommodations, tickets, destinations, and tours.
Conclusion
The trend of splurge-cations – trips that require increased spending but offer high-level experiences and luxury-type comfort – is steadily rising. Tired of the restrictions from COVID-19, people crave new memories and entertainment. Customers in the category of Conventional Family Life are not an exception, as they prioritize happiness and fun for the whole family.
The suggested offering is a business that helps consumers customize their splurge-cation by offering packages with hotels, tickets, drivers or rides, and tours to popular destinations. The main challenges for the concept are the shaky economic state of many countries and customers’ hesitancy to increase spending. The trends show that such issues, while possible, are possible to overcome, but the magnetism for the new solution is strong among most tourists.
Reference List
Auxier, B. and Anderson, M. (2021) Social media use in 2021. Web.
O’Keeffe, F. (2022) Travel Tales: ‘The newest trend is predicted to be the splurgecation or blowout break…’. Web.
Pokora, B. (2022) Here’s what to expect from 2023 travel: trends and predictions. Web.
Roy Morgan Research (2023) Roy Morgan values segments: conventional family life. Web.
Taylor, H. (2022) 6 ways you can turn your next vacation into a splurge-cation. Web.
Zaman, U., Barnes, S.J., Abbasi, S., Anjam, M., Aktan, M. and Khwaja, M.G. (2022) ‘The bridge at the end of the world: linking Expat’s pandemic fatigue, travel FOMO, destination crisis marketing, and vaxication for “greatest of all trips”’, Sustainability, 14(2312), pp. 1-21.