Last year, the travel of Latvian residents to foreign countries exceeded the pre-pandemic period, and the industry has recovered in the field of outbound tourism. The time spent on one trip has remained approximately the same as before, but now residents travel more often – several times a year. The average amount for a trip has increased by less than 10%, and currently it reaches an average of 500 euros per traveler, according to the information collected by the online travel agency “AirGuru.lv”. On the other hand, the data of “Inbank Latvia” show that the average amount of the service for the trip, which customers have chosen to divide into parts, was around 1,300 euros last year.
Travel is becoming more affordable
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As inflation subsides and various financial services develop, travel has once again become more affordable for citizens. In turn, various technology tools offer trips based on individual interests and financial capabilities, providing a personalized experience.
“Today, technology helps travelers manage their finances more effectively. With a variety of budget tracking apps, currency converters, and expense organizers, you can make smarter financial decisions throughout your trip. Travel financing options have also expanded. According to the survey of the Baltic residents conducted by our company, the trends are similar, that is, about 6% of the respondents in Latvia, Lithuania and Estonia borrow money for travel. Since we currently offer customers not only a consumer loan, but also a “partitioning” service with the possibility of dividing the travel amount into several payments without paying anything for it, customers can plan their expenses much more freely, and this service is becoming more and more popular. The service with splitting the travel costs into parts is mainly chosen by women (80%), less by men (20%). We observe that interest from more and more partners in the tourism industry, who choose to offer their clients the opportunity to “split” travel costs into parts, is growing, thus expanding the availability of the service,” says Dainis Skrinda, head of “Inbank”.
Although the use of financing products has become very convenient for citizens, D. Skrinda reminds that the “Inbank” payment method “in installments”, although without overpayment, is still a financial obligation. For this reason, each transaction should be carefully considered – when it is reasonable to pay for the trip from your savings, when to pay in installments, when to use one of the financing services, evaluating your ability to repay.
Estonians plan ahead, Latvians and Lithuanians – at the last minute
In general, travel habits are similar throughout the Baltics, however, Estonian residents are more likely to plan their trips for a longer period of time in advance, while Latvian and Lithuanian travelers are more likely to use last-minute offers. “If in Estonia it is not uncommon for trips to be completely sold out a long time before they take place, then in Latvia and Lithuania residents are not afraid to wait until the last moment to buy a trip at a better price. This explanation is also due to the fact that there are more flight destinations from Riga and Vilnius, more travel opportunities and a wider offer,” says Janis Možeiko, co-founder and manager of “AirGuru.lv”.
In terms of the length of the trip, Estonian travelers almost always choose at least 7 nights of rest, while in Latvia – also shorter trips. Baltic travelers are happy to choose favorable travel offers from neighboring countries as well. For example, travelers from Estonia go to Riga to fly to Malta, but Latvian residents often choose to fly from Kaunas or Vilnius.
“We have concluded that the price is important, but not the distance, when it comes to the road to the airport, and travelers choose the best value for money. This also applies to the choice of destinations – for example, residents choose a trip based on the price and benefits for this amount, so they often don’t mind choosing Tunisia instead of Turkey, but with a better hotel and entertainment offer,” says J. Mojeiko.
Most people choose to relax by the beach
In all three Baltic countries, Egypt, Turkey, Malta, Spain, Italy and Greece are among the most popular destinations. About two-thirds of travelers (65%) opt for a beachside vacation, with the majority opting for all-inclusive dining. On the other hand, every third (35%) goes on trips to European cities. In summer, people choose closer destinations, but as winter approaches, destinations become more distant, for example, Thailand, Vietnam, Morocco.
While Estonian travelers prefer to rest by the water, Lithuanian travelers more often go on excursions and get to know the history of cities, while Latvian travelers are also interested in various festivals and other cultural activities.
“In general, we observe that customers are increasingly choosing to make reservations online independently, without calling agents and consultants for help at all. Recently, an online reservation for a last-minute trip was made by an over 80-year-old lady, which proves that shopping on the Internet is also becoming a norm in tourism and is not meant only for the younger generation,” concludes the head of “AirGuru.lv”.
