1. Global Tourism Trends
Horwath HTL

2. 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

3. 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

4. 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”

5. 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

6. Generation Y and Z continued
-Generation Z (iGen, Screenagers) range in age from 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

7. 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

8. 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

9. 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

10. 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

11. Political Issues and Terrorism Continued
TED Talk: “For more tolerance, we need more ... tourism?”
Brussel’s News Article Activity

12. 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

13. 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

14. 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

15. 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

16. 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