The future of tourism is now: Reflections from my journey to ITB Berlin

By: Deann Donohue , Vice President, Global Segments Lead, Mastercard for Government

Earlier this month, I had the pleasure of returning to ITB Berlin , the world’s largest tourism trade fair, where 100,000 attendees from around the world come together with the same passion and purpose in mind – identifying forward-thinking and innovative ways to shape the next generation of modern tourism. ?

Across three action-packed days, destinations representing 170 countries showcased their cultures, experiences and landscapes, highlighting the latest technologies, and discussing the importance of enhancing traveler experiences. ??

As I reflect on my time on the ground and the insightful conversations and engagements I took part in, five things really stuck with me that will shape how me and the team are thinking about the future of tourism going forward:?

1. The future of tourism is bright?

The tourism and travel community is one of vibrance, optimism and resilience. Despite the varied challenges destinations and the industry face, the sector is focused on its continued growth and is using the learnings of the past to solve for the future. I was fascinated by the session from TikTok about how the platform has revolutionized travel, especially hearing that 42% of TikTok users have planned their trips to destinations based on content they saw on TikTok. The discussion around how governments are driving digital adoption as well as how technologies like blockchain, digital wallets and identity are at the cusp of disruption left me motivated to continue our work to ensure travelers’ journeys ?are seamless. I would love to hear your own impressions of ITB’s 200 sessions.?

2. The future of tourism is experiential?

I heard from destinations is that?a new era of eventful economies is driving tourism globally. Travelers are prioritizing experiences over material spending. This was on full display last year when the Mastercard Economics Institute studied The Swift Lift, essentially the economic impact of Taylor Swift’s Era’s tour on the cities where she played. The findings were impressive, showing: 68% spending growth at restaurants and ?47% growth at accommodations in the immediate vicinity of the stadiums and arenas she performed in. In a panel discussion we hosted with our partners in Munich & Dresden city, we heard how large sporting events and concerts positively impacted their economies through inbound visitors.?

3. The future of tourism is evolving before our eyes?

AI like many other sectors has burst onto the tourism scene in recent years; and, according to Phocuswright’s recent report, nearly half of all Gen AI users in the past year used the tool to plan a trip. Gen AI, was front and center at this year’s event, where solutions utilizing AI with proven results could be experienced. One session I tuned in to focused on The Rise of Chatbots and AI showcasing successful solutions. For example, Lufthansa’s trip planning tool used AI-supported processing for customer complaints, which resulted in a 75% increase in employee productivity. Or in the case of TUI, we heard that they are using AI internally to assist their travel agents and agencies with trip planning. The future really is now.?

4. The future of tourism is digital?

The most interesting topic of the week was ‘the Gen Z traveler’ and how destinations can and should be trying to meet their expectations. I heard countless times about their use of social media for trip planning, non-traditional ways of booking, their spending patterns, and the rise of digital nomads. Their digital fluency has been reshaping the tourism industry with a demand for seamless and visually appealing experiences, from booking to check-out. I am excited about the opportunity this presents for destinations and the role we can play in helping them to respond to this change. ?To address this new need, we are providing a suite of data-driven tourism solutions through Mastercard’s platform, Tourism Insights that helps destinations understand what makes ?today’s traveler tick.?

5. The future of tourism is personal?

I heard the words ’personal’ and ‘unique’ uttered throughout the conference numerous times – with these two adjectives epitomizing traveler's current preferences. The concept of cultivating personal experiences was certainly top of mind for many destinations looking to attract tourists. Tapping into a traveler’s motivations, whether they're driven by passion, culture, sustainability, or just general hobbies, they are looking for experiences that are in line with their personal beliefs. We recognize that, which is why we’re teaming up with destinations to launch creative campaigns much like the one we launched last year in partnership with the Greek National Tourism Board, to bring exclusive experiences for cardholders that highlighted Greece’s hidden beauties and unique experiences. ?

My team’s vision for the future of tourism brings destinations to life with limitless choice, simplified journeys, and cutting-edge digital integration. Our teams are partnering with destinations around the world to ensure travelers’ journeys are frictionless, secure and borderless. Imagine a world where all of that is possible, priceless. ?