Global Tourism Trends Horwath HTL

10 MEGA trends in Tourism Top 5 Supply in Tourism -Technological Revolution -Digital -Loyalty -Health and Healthy Lifestyle -Sustainability Top 5 “Demands” in Tourism -silver-haired tourists -Generation Y and Z channels -growing middle class -emerging destinations -political issues and terrorism

Silver-haired Tourists -fastest growing segment in the tourism market -by 2050, this population will reach 21% of the market, up from 12% in 2013 -specifically increase in China, India, and US -life expectancy is predicted to increase with technological advancements -this demographic is more financially secure and often have less home responsibilities and more time to travel

Silver-Haired Tourist Continued -they are more active and healthier than previous generations **they will require tailor-made services with face-to-face interactions** -Think: Who will this generation of travellers help to keep employed? -they are seeking “travel experiences” over “material goods”

Generation Y and Z -Generation Y (Millennials) are expected to represent 50% of all travellers by 2025 -this demographic likes to explore, interact, and desires an emotional (authentic) travel experience -this has cause chain operations to rethink their accommodation services -more tech savvy, so the industry has to continue to meet the tech demand as well

Generation Y and Z continued -Generation Z (iGen, Screenagers) range in age from 6-20 years old -while they are an “upcoming” demographic, they are predicted to impact the tourism industry in a more radical way than the change from Gen X to Gen Y -higher access to information, more dynamic lifestyle, higher level of education, faster adoption of change and faster spending -they want to see a change in the world

Generation Y and Z Continued -frequently use social media as a search tool -expect real time information via short messages and pictures, speak in emoticons (Thanks social media) -this change requires service providers to have to learn how to “speak” their language

Growing Middle Class -majority of the world’s population is neither rich nor poor -major growth in Asia-Pacific -uses more of their disposable income to learn English so that they can use guided tours (autonomous travelling) -middle-class tourists are constantly looking for value for their money -set budget, use discounted travel sites for accommodations and travel -will require the industry to adapt multiculturally

Emerging Destinations -increase in middle class travellers has caused a growth in emerging, off the path, destinations -extremely popular in Asia, South and Central America, Africa -currently international travels reach over 100 countries with more than 1 million arrivals each year -in 1950, it was only 15 core countries http://uk.businessinsider.com/emerging-travel-destinations-for-2016-2015-12 http://www.cnn.com/2015/12/22/travel/emerging-destinations-2016/

Political Issues and Terrorism -new emerging destinations can cause ethnic, cultural and religious differences to experience varying degrees of tension -this can result in political unrest, acts of terrorism and civil riots, ultimately imposing a threat on the future of tourism -various destinations that have been affected by these unrests have experienced a hit to their tourism economy (especially international visitors) -have seen an increase in screening when it comes to international and national travel

Political Issues and Terrorism Continued TED Talk: “For more tolerance, we need more ... tourism?” https://www.youtube.com/watch?v=TVtgb153S6I Brussel’s News Article Activity

Technological (R)Evolution -tourism is strongly influenced by technological progress -now we are constantly connected -the Internet has already shaped the way tourists search, book and explore their travel experience -robots, holograms with avatars, interactive displays and smartphone apps are already becoming a reality for the tourism industry -real time, tailored travel experiences based on personal interests

Digital channels -vacations now begin and end with the internet -research collection (start) to providing feedback about their experience via social media networks (finish) -spend 60% of time on social networks -feedback sites are: Tripadvisor, booking.com, and Airbnb -these sites can make or break tourist destinations -currently 65% of all vacation searches start on a mobile device

Loyalty -need to change loyalty programs to more instant gratification programs -shift from point collection for spending money to “perks” for doing certain things (ex. Check-in during off peak hours, writing online reviews etc.) -loyalty programs need to become more individualistic and tailor-made for travellers based on personal preferences -Shift from “cards” to apps on phones

Health and Healthy Lifestyle -growing trend in travellers -spas are becoming more popular as tourist destinations -wearable technology is growing rapidly -need to gear services to promote this type of progress -things that destinations should consider include: -destination spas, new fitness programs, room lighting, lifestyle coaching

Sustainability -tourism impacts various aspect of world development, prosperity and well-being -sustainable tourism is “tourism that respects both local people and the traveller, cultural heritage and the environment.” -needs to ensure feasible, long-terms economic operations -measures need to be taken to protect tourist destinations