In this year’s 7th annual edition of The Year in Review and The Year Ahead, Miles Partnership, Phocuswright and Arival unveiled crucial travel trends and technologies that are fundamentally changing the travel industry landscape.
Phocuswrights’ custom research answers key industry questions on the minds of many in the tourism industry: When and how will international travel recover? What are remote workers really looking for in their destinations and accommodations? What marketing trends are worth keeping an eye on, and which ones should be let go? Arrival shares critical insights and the latest research around the generational shifts in experiences, the true value of visual content and how this will shift trip planning in the future. Below are some key takeaways from this year's webinar.
Travel Tech & Marketing:
- What is this FinTech revolution? FinTech services include any financial software application that, specifically in the travel industry, reduces processing costs, provides traveler flexibility and minimizes friction in the reimbursement of expenses for business travelers. Companies leveraging FinTech to its greatest abilities will continue to push competition in the industry. As travelers continue to have greater flexibility in travel planning, the entire industry will need to embrace FinTech solutions more fully to remain competitive. Hopper, for example, is setting new standards by offering travelers on their app the ability to price predict and cancel for any reason, anytime.
- Additional major trends that continue to gain footing in the travel industry include: Attribute-based selling, subscription marketing and e-commerce. For more on these, check out the webinar reporting here.
Evolution of Accommodations:
- The rise of bleisure travel means short-term rentals are here to stay. Remote working, forever? Yes, COVID-19 was a major catalyst in bringing blended travel and digital nomadism to light. 55% of travelers stated they took a leisure trip where they or someone in their party worked remotely. According to Longwoods International, 35% of U.S. travelers plan to work remotely for at least two weeks in 2023. What does this mean for short-term rentals? Short-term rentals are the top choice for bleisure travelers, followed by hotels. Knowing what these travelers need will be key to capturing their eye during the booking process. Among the obvious, such as strong wifi and cell service, these travelers want a charming atmosphere, personalized spaces, ample desk/table space, privacy and extended coworking spaces in their destinations. Ennismore offers a growing number of hotels with refined coworking spaces designed to offer the tangible and intangible comforts of a home.
- Global opportunities continue to expand and despite different recovery trajectories around the world, there is an overall positive outlook on full recovery in the coming years, specifically in the Latin American and Southeast Asia travel markets.
- Latin America: Revenue is projected to increase 37% to $48 billion in 2022, and rebound to pre-pandemic levels in 2023.
- India: The country is spending $1.4 trillion in 2019-2023 on an unprecedented infrastructure exercise.
- Southeast Asia: 2022 is anticipated to show a year of recovery, and the future of Southeast Asian travel appears to offer many new opportunities. Further recovery will be incremental though, with gross bookings just shy of 2019 totals looking towards to 2025
- Some fundamental drivers in the continued success and growth of international travel are the rise of the world’s middle class. The number of wealthier communities globally has almost quadrupled in many of the world's most populous countries, and many of them are now regular international travelers. Additionally, as technology solutions continue to streamline distribution systems, smaller businesses gain access to international market share. Tourism Exchange, for example, connects all types of businesses in a single marketplace with online travel agencies, trade partners and wholesalers. Investments like this offer low-cost solutions internationally for smaller businesses who traditionally, have found it difficult to or were unable to partake in these markets.
Generational Shifts in Experiences:
- In the world of tourism activities and experiences, the path to purchase has started to evolve, especially within the younger traveler segments. A major component of this shift has come from an increased desire to pursue an experience, connect with like-minded people to share them with, and be a part of communities. 70% of Millennials and GenZ are booking their desired experiences before anything else. What does this mean for the industry? That destinations may no longer be a key driver in booking choice, and the impact of visual content and short-form videos could be profound in redefining an experience or activity for these travelers. Amazon recently launched Inspire, featuring a TikTok-style feed for app shoppers. And in Idaho, one woman even turned a giant potato into an Airbnb appealing to those travelers who want a unique experience