The new frontiers of tourism

"At a time when the rhetoric of global policy is overshadowed by protectionism and trade barriers, tourism acts as a sector that promotes understanding between people as well as peace, connectivity and familiarity between nations.”

Rania Al-Mashat, Minister of Tourism, Egypt

Today is World Tourism Day.

The theme for 2019 is Tourism and Jobs – A Better Future For All, which, in the light of Thomas Cook’s recent demise and 21,000 of its staff losing their jobs, is a little ironic and even sad. 

Jobs are great, but at what cost to the world? What about places to live? Central areas in Barcelona have now mostly turned into Airbnb pads, with locals no longer able to afford living there. As a result the cultural heritage which most of us visit for loses some of its authenticity.

These two examples, though very different, demonstrate that tourism industry is changing - and quickly. Therefore understanding the essence of these changes and their trajectory is vital for those who want to be in a position to react to them.

"Tourism demand continues to reach new heights and we expect to see over 1.5 billion overnight tourist arrivals worldwide in 2020. New heights will be hit thanks to ongoing economic growth, and continued emergence of the new global middle class, despite clear downside risks to economic activity."

David Goodger, Managing Director EMEA, Tourism Economics, an Oxford Economics company

This article touches upon a few of the biggest industry trends and invites readers to discuss the topic in more detail by submitting comments below.

Tourism Trends Alert: take them seriously or die

The experience economy: I don’t want your package, I want my experience

My sister and I used to have very different approaches to managing our finances when we were teenagers. She would spend what little savings she had on trifles like shoes or make up, while I would save up my money for travelling. My explanation was that I wanted an experience rather than something perishable.

Back then in post-Perestroika Russia, and I assume in many other parts of the world, just going away from home was an experience in itself. Not today. Today we are spoilt in this respect and want more authentic, distinct, adventurous and fulfilling experiences to leave their imprints in our brains and souls.

The experience economy did not get its name for nothing.

"I believe we will see an acceleration and expansion of the biggest trend we have been seeing; fragmentation. People moved away from similar and familiar experience and destinations. They want unique experiences in less popular destinations. All with an element of personalization for them, whether it be budget-driven, glam, rugged, or any combination."

David Martin, Owner, Sunhaze Consulting

Personalisation – I don’t want your package, I want my package

People want tailor-made products. Any consumer industry faces this expectation today, but in this respect the travel industry might be better placed than others. After all there are only so many personalised alternations you can make to a dress, while a holiday package can encompass a wide variety of options, closely matching a consumer’s preferences, expectations and needs. The better one’s tailoring the more likely customers are to return and use the service again.

Where is this need for personalisation coming from? Very often it is just a natural desire to have things exactly as you like them. Plus, everyone enjoys feeling special and having a personalised product or service is a way to achieve this near nirvana state.

 But much of this urge for personalisation is also fuelled by the Fear of Missing Out (FOMO) so well maintained by social media. Have you heard the term “instagrammable”?

Sharing economy: Sharing is caring for your budget and mine

Probably because travelling can be quite a hefty financial burden the idea of collaborative consumption has become so popular. Technology as an enabler also played a big part in the spreading of this business model, which for many has also become a social movement.

Today tourism sharing marketplaces like Airbnb, Zipcar, Uber, and Couchsurfing allow many more people than before to travel, which is why this trend is likely to shape the tourism industry for the foreseeable future.

"The further democratization of tourism through technology, economic development, and countless entrepreneurial initiatives is placing a heavy responsibility on our shoulders. Both travelers and service providers in the tourism industry are called to re-evaluate old patterns, keeping in mind that easy practices may allow for short-term profits but carry a heavy toll for future generations. Let's all walk the talk and choose the "road less traveled".

Konstantina Sakellariou, Writer, Advisor for Europe and the Middle East, Rahhalah Explorers

Travelling solo is not solitude, it is an attitude

As statistics over the last few years show, travelling is no longer a predominantly family affair. Female travellers are the main driver of this solo travel trend and the reasons behind it are diverse. Travel companies have spotted this and started developing products for this category of travellers who were previously ignored and put off by better offers for those who travel as couples.

Group travel is on the rise too. The social and cultural norms of our society are constantly changing and these influence the different kinds of travels people take.

Technology: disrupting and innovating

While technology has caused a shift in the power of choice to the consumer from the hands of the service provider, it has also armed the industry with a vast arsenal of differentiators and value creators: Recognition Technology, Artificial Intelligence, Virtual Reality, Augmented Reality, Internet of Things, Mobile Technology, Big Data analytics, etc.

It wouldn’t be an exaggeration to say that the brightest future belongs to those who will make the wisest technology investment decisions.

Tourism Stewardship (aka overtourism): We don’t want you here, we want you here 

There are destinations out there for which tourism has become too much. Barcelona and Dubrovnik, for example, are struggling to cope with their ever increasing numbers of tourists. This has resulted in attempts to try to limit the negative impact that comes from overtourism by restricting the number of cruise ships that can enter their ports, promoting less known areas, reducing bed night capacity, carefully taxing and regulating private rentals, etc. To say they don’t want tourists might be stretching things, but (in their words) they want better tourists, and are creating policies allowing them to manage the situation rather than powerlessly observing the demise of local infrastructure, communities, wild life and ecosystems.

With global tourist numbers growing, tourism stewardship has become vital for all stakeholders and is here to stay.

"The main topic on everyone's mind today is "tourism stewardship". If it's to survive, what the travel industry is going to have to develop for itself are a set of tools based on publicly shared data that can help predict, diagnose, and describe the risks and specific financial impacts of not better managing their own tourism, and then together create packages of new infrastructure and regulatory solutions to ensure that travel to beautiful, faraway destinations can be supported and sustained for many more generations to come."

Charlie Ballard, Director of Strategic Insights, TripAdvisor

In June 1841, Thomas Cook opened the first leisure travel agency, designed to help Britons improve their lives by seeing the world. I feel good about the fact that now, 178 years on, we have the means to enrich the lives of both travellers and their host communities by deploying innovative business approaches, modernising regulatory frameworks and encouraging inclusive and sustainable growth.

Happy World Tourism Day, everyone!

I would like to thank Rania Al-Mashat, Minister of Tourism, Egypt, Charlie Ballard, Director of Strategic Insights, TripAdvisor, David Goodger, Managing Director EMEA, Tourism Economics, David Martin, Owner, Sunhaze Consulting and Konstantina Sakellariou, Writer, Advisor for Europe and the Middle East, Rahhalah Explorers for contributing their insights to this article.