ADARA - Surge in Travel Activity between Hong Kong and Singapore

Singapore, 23rd November, 2020 - Last week, Singapore and Hong Kong announced the establishment of an air travel bubble, slated to begin on 22 November, to allow bilateral, all-purpose and quarantine-free travel. Under this arrangement, travellers will no longer have to serve a quarantine period upon arrival in either country, and will only have to test negative for COVID-19 prior to departure.

Despite this arrangement, both countries continue to be cautious about a resurgence of COVID-19 cases and have caveated the announcement with an immediate suspension in the event of a rise in community cases. However, ADARA’s data has revealed that this has not deterred travellers from making plans.

ADARA data revealed a sharp rise in travel activity since the air travel bubble announcement was made – with an increase of 38% for average weekly searches and 83% for average weekly bookings from Hong Kong to Singapore, as compared to other origin cities (such as Bangkok, Kuala Lumpur, Perth and Tokyo). When measuring against the travel activity 3 months prior to the announcement from Weeks 29 to 41, searches and bookings from Hong Kong rose sharply in Weeks 42 to 44 since the announcement of the travel bubble in Week 42.

Beyond the growing eagerness to travel again, there has been a gradual shift in consumer behaviour, relating to preparation for travels. In light of the gradual lifting of travel restrictions, ADARA data reveals that travellers are now spending less time planning for trips. Prior to the travel bubble announcement, 16% of travel searches from Hong Kong to Singapore were made 31 to 60 days ahead of trips. Following the announcement, this figure increased by 10%, resulting in 26% of all searches made within 31 to 60 days - suggesting a growing inclination towards more spontaneous trips.

In addition to pent-up travel demand since the onset of COVID-19, travellers may be taking advantage of the current regulations to travel while they can and start making plans for travel in the near future. The volatility of the air travel industry due to COVID-19 may also cause some travellers to plan around current circumstances instead of planning for trips in advance. While signs point towards a return of pre-COVID travel patterns, travellers are still cautious about the tightening of travel restrictions should a resurgence of COVID-19 cases occur.

Singaporean travellers in Hong Kong have to test negative for COVID-19, a process that can take up to four hours. Given the time investment to go through the additional procedures, over 87% of travellers intend to travel for at least four days in order to make their trips worth their while.

This travel behaviour may also be a result of the pent-up demand over the past year, giving travellers the opportunity to opt for slightly longer trips to make up for the lack of travel. Moreover, the increased demand for air tickets may encourage travellers to take longer trips to make their money’s worth.

Overall, ADARA’s data has shown that there is a healthy interest in travelling between the two countries, suggesting that the travel industry is showing signs of recovery as restrictions begin to loosen. Despite these early signs of recovery, organisations and businesses should still consider how habits and preferences of consumers have shifted as a result of COVID-19, and leverage these insights to develop more targeted, audience-centric business strategies for the future.