Week 8: The Travel & Tourism Industry Today

The Travel & Tourism Industry Today

Travel and Tourism is one of the fastest growing industries internationally. In 2017, travel and tourism was 10% of the global gross domestic product (GDP); forecasts predict there will be 1.8 billion international arrivals by the year 2030 (Guevara & Benett, 2019). Travelers are wanting enriched, meaningful experiences, and they will be using more technology.

In a 2019 survey by STR, they found that people intend to travel more. Their findings suggested the increase is spurred by an increased life expectancy, more disposable income, and advances in technology. The use of technology and smart phones has made booking flights and accommodations much easier (6 Tourism Industry Trends, 2019).

Source: STR Inc. (6 Tourism Industry Trends, 2019)

In 2017, the United Nations declared 2017 as the International Year of Sustainable Tourism for Development. The purpose was to raise awareness about tourism and how tourism could lead to economic growth, a more inclusive society, and preservation of the environment (2017 Annual Report, 2017). Of the 17 sustainable development goals (SDG), tourism is aligned with 3:

Goal 8, Decent Work and Economic Growth: “By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.”

Goal 12.b, Responsible Consumption and Production: “Develop and implement tools to monitor sustainable development impacts for sustainable tourism that creates jobs and promotes local culture and products.”

Goal 14.7, Life Below Water: By 2030, increase the economic benefits to Small Island Developing States and least developed countries from the sustainable use of marine resources, including through sustainable management of fisheries, aquaculture, and tourism.

In the next few years, technology will change in ways that we have not yet imagined. We may be familiar with apps that provide communication tools, but the travel and tourism industry is taking things much farther. Right now, there are robotic suitcases that will make travel much more convenient.

Source: Travelmate (Travelmate Robotics, 2019)

Looking Into the Future

Given today’s tourists increased desire to travel and have meaningful adventures, there are many options for new twists on tourism. Keeping the United Nation’s SDGs in mind means these new types of tourism activities could have a large economic impact by creating jobs, raise cultural awareness, and be sustainable. The travel and tourism opportunities listed are in no specific order of importance.

Solo Travel

While family and couple travel will continue, the stigma has lessened for people to travel alone. Solo travelers run the gamut from young people looking for social activities or a partner to older, widowed people opting for long-term hotel stays or cruises rather than elder care facilities. Solo travel is expected to grow.

In a survey by Travel & Leisure, 46% stated their number one reason for traveling solo was “freedom to choose their own itinerary without input from others” (Leasca, 2019). The second reason was because it was easier to relax by themselves. Over half (57%) wanted to visit another city in the United States, with 40% wanting to visit a foreign country (Leasca, 2019).

In a separate Travel & Leisure article, they identified the top solo destinations as follows (Avakian, 2017):

1. London, England
2. Paris, France
3. Los Angeles, CA
4. Tokyo, Japan
5. Barcelona, Spain
6. New York City, NY
7. Toronto, Canada
8. Madrid, Spain
9. Berlin, Germany
10. Seoul, South Korea
11. Osaka, Japan
12. Lisbon, Portugal
13. Vancouver, Canada

Personalized Travel

Travelers want experiences that match their interests, and it’s more than choosing between a window or aisle seat. Preset packages are less desirable than those where the tourist may select activities and accommodations that fit his or her lifestyle.

There are companies that will customize every detail of your travels from flight, transportation, excursion booking, restaurant reservations, and individual travel guide to those that will design travel plans for you with suggestions. Several companies are listed in the For More Information section.

Local Experience

This type of travel has to do with visiting and becoming enmeshed with the local activities and culture. The tourist would view the culture from a local’s perspective. For example, visiting during a major festival or holiday to partake in those events, learning songs or games and then participating in those activities within the culture, and eating local and regional delicacies.

There is also a plethora of videos from people giving advice.

Niche Tourism

Niche tourism means traveling and having experiences related to a specific concept or area of interest. Agritourism is one type of niche tourism, and it follows. Other types may include heritage tourism, cultural tourism, culinary tourism, nautical tourism, geotourism, religious tourism, sports tourism, textile tourism, or wildlife tourism. Based on the videos online, there could be more emphasis on niche tourism.

Agritourism

As its name suggests, agritourism combines agriculture and tourism. Some types of agritourism have existed for a long time, for example, pumpkin patches, corn mazes, hay rides, you-pick produce, petting zoos, and Christmas tree farms. In recent years, agritourism has expanded to include wine tasting and wine tours, living history farms, farmer’s markets on the farmer’s property, and such activities. One major concern for agritourism include the liability for people who might be injured on the property. To overcome the liability factor, most farmers require signed waivers.

Those wishing to list their agritourism adventure online can do so at Agritourism World Links to an external site.. Types of adventures might include bird watching, horseback riding, walking tours, fishing, and camping. Events could include weddings, festivals, and workshops, and some farms might have products available for purchase.

Ecological/Sustainable travel

Today’s travelers, especially the younger ones, want vacation experiences that are environmentally friendly and sustainable. That means considering the carbon use of flights and looking for electric transportation. This type of travel could include conservation work or other volunteer experiences. Accommodation options could include home stays, treehouses, hammocks, or tents.

The Internet of Things (IoT)

Simply put, the Internet of Things (IoT) is controlling items from a smart device. These could be things in a hotel room (heating, cooling, TV, gaming, curtains, but they could also be used to book spa, gym, or pool times or order room service.

Expanded technology

Previously we covered robots and artificial intelligence (AI) in the hotel industry, but there is much more technology coming. Chatbots can help travelers book accommodations and travel reservations, and with the use of AI, chatbots can answer questions when human operators are not available. AI could also be used to find local services that match a traveler’s preferences. The possibility of virtual AI-driven tour guides is not far in the future.

Recognition technology is changing how travelers are granted access to secure areas. Smart hotels are starting to use voice and face recognition technology. Data on a person’s passport could be used to match the individual’s face to grant access. Jet Blue is already using face recognition in Boston for flights to Arruba, and Delta in Minneapolis is moving in that direction.

For More Information

References

(2017). 2017 Annual Report. New York, NY: United National World Tourism Organization.

6 Tourism Industry Trends. (2019, September 18). Retrieved from STR Inc.: https://str.com/data-insights-blog/6-tourism-industry-trends

Avakian, T. (2017, June 28). The Most Popular Destinations for Solo Travelers. Retrieved from Travel & Leisure: https://www.travelandleisure.com/trip-ideas/solo-travel/airbnb-best-destinations-solo-travelers

Guevara, G., & Benett, A. (2019). World Transformed: Megatrends and Their Implications for Travel & Tourism. London: World Travel and Tourism Council.

Leasca, S. (2019, May 16). The Number One Reason Americans Choose to Travel Solo. Retrieved from Travel & Leisure: https://www.travelandleisure.com/trip-ideas/solo-travel/why-americans-travel-alone

Travelmate Robotics. (2019, November 3). Retrieved from Travelmate Robotics: https://travelmaterobotics.com/

Source: Velda Arnaud, Blue Mountain Community College, Pendleton, Oregon