Trends in tourism
As we saw in the previous unit, the rising cost of living and rising inflation have led to a change in consumer attitudes regarding travel.
What are travellers’ choices today?
BEWARE OF THE PRICES
Despite the rise in prices, people do not intend to give up their holidays. This means that we tend to choose less expensive destinations and travel in low season periods.
Furthermore, ADVANCE BOOKINGS are increasing, especially among travelers from Northern Europe.
Consumer booking time has remained unchanged from 2022 with 41% of tourists booking their holidays further in advance than last year. Fear of inflation influences people to book earlier – 37 percent want to avoid inflation-driven price rises. 38% of advance bookers do so to benefit from attractive booking offers and 25% fear that everything will be sold out, so book their holidays in advance.
USING TECHNOLOGY TO SAVE ON PRICES WHILE TRAVELING
Percentage who agree (2023)
25 – 40 Years
41 – 56 Years
18 – 24 Years
57 – 75 Years
76 – 93 Years
Source: Booking.com
How consumers save – Percentage who agree (2023)
They take advantage of offers, smart timing
They organize well in advance
They prioritize value for money with discounts and loyalty programs
They spend their budget on two long vacations rather than multiple short stays
Off-season destinations or longer routes
Source: Booking.com
The preference for personalized holidays over all-inclusive ones is growing. Globally, personalized travel grew by 5% compared to 2022.
A survey by Simon Kucher shows that travel agencies are more prevalent in the UK and UAE. In contrast, in France 37% of travelers chose personalized holidays in 2023 compared to 32% in 2022. For the United States this difference rises by 10% between 2022 and 2023.
The possibility of booking online is certainly one of the decisive factors for travellers. Many bookings are made via mobile devices, representing over two in five direct bookings for tours and over half of direct bookings for attractions. Being easily identifiable and available online therefore becomes a necessity for anyone who wants to operate in the sector. It is important to be traceable on Google search and Google maps. Furthermore, Google things to do, a search product for attraction tickets and tourist experiences, is becoming increasingly popular (for more information visit this page).
Artificial intelligence will play an increasingly important role in the travel & tourism sector. Although still a niche in Europe, in the USA more and more people are turning to AI to organize personalized itineraries. Travel agencies and tour operators will increasingly use AI to create and optimize online content and listings, improve customer service and streamline online booking processes. Software companies are already gearing up to provide specific tools to the tourism sector.
We are witnessing the boom in Airbnb Experiences, indicative of a strong desire to experience emotions and sensations during a specific activity linked to the place of visit. Often this desire for experiences is linked to the desire to move away from mass tourism and come into contact with the local reality. For this reason, sector specialists should invest in offering structured packages with “stay and experience” formulas, possibly involving local operators.
The wellness sector has already demonstrated strong resilience during the pandemic (in 2020 it had dropped by 65% compared to 68% in other tourism sectors). Along with well-being, nature travel – adventure, ecotourism, sun and sea – which were the least affected during the pandemic phase, also continues to grow. According to Euromonitor this sector is expected to account for 57% of all travel packages worldwide in 2023 alone.
Last but not least, SUSTAINABLE TOURISM is now an important trend that those who work in tourism can no longer ignore.
In a recent survey conducted by Expedia, 90% of consumers said they were looking for sustainable options for their vacations. This means there is significant demand for sustainable travel providers. Additionally, Euromonitor International reports that “73.8% of travel industry executives noted increased interest in sustainability from their customers in 2022.”
Perhaps even more interesting for tour operators themselves, 57.3% of these executives noted that tourists are often willing to pay more for a tour or activity they feel
apply sustainable practices.
> For further information, consult unit 1.3 of the course
