“Travel has recovered; we are now looking at growth opportunities,” Dave Goodger of Tourism Economics said at the 44th WTM London as he debuted the 2024 WTM Global Travel Report. This couldn’t have been clearer as the halls of the largest WTM London to date were bursting with opportunities and the roar of conversations.
According to Tourism Economics research, leisure remains the most important segment in the sector, comprising 69% of arrivals and 80% of global travel spending. He also highlighted that international arrivals are predicted to hit 2 billion by 2030, and that countries with the highest predicted growth are now in Southeast Asia as tourism in the region finally catches up with the rest of the world.
One caveat: short-haul is proving more popular than long-haul travel as travelers look to manage financial pressures. As consumers become more price-conscious and brand-agnostic, travelers and they have higher expectations of providers too, and loyalty is increasingly hard to come by.
The report emphasizes that predicted continued growth is underpinned by two factors: increasing numbers of global consumers with enough disposable income to spend on travel, and the priority consumers give to travel. The good news: it is increasingly considered “an essential non-essential,” particularly for those with higher incomes.
Here are our key takeaways from WTM London 2024 for travel operators, DMCs, and accommodation providers.
Desire for fresh experiences could unlock new customer demographics
As travelers seek out new experiences that are richer and more unique to satisfy their curiosity about the world, they are bucking traditional age trends.
Take cruises, for instance. The WTM Global Travel Report showed 64% of travelers aged 18-34 were more interested in cruises than before Covid, and that 82% of the same age group were likely to take one in the next 12 months.
In adventure travel, Julie Fitzgerald from G Adventures, said the biggest growing segment for their adventure packages was retirees who “have more spending power than their younger counterparts, and want adventure, but do not want to sacrifice luxury.”
Travelers want to tap into regenerative tourism principles for authentic travel experiences while giving back
Sustainability has been a constant topic of discussion within the travel industry for decades and most, if not all, operators are making efforts to reduce waste or limit their impact on the environment. But, WTM Sustainability Advisor Tina O’Dwyer and speakers at the Sustainability Summit called for operators to, “rethink and question what sustainability means, and whether it goes far enough.”
Anna Pollock of Conscious Travel—a leading proponent of regenerative tourism—explained that the sector’s pursuit of driving more (travelers, nights, spend) is simply incompatible with sustainability, as it is commonly defined: reducing carbon emissions, etc. Instead, Pollock advocates for a more holistic approach which prioritizes engagement and collaboration with hosts, communities, and nature to deliver “net-positive benefits” for all stakeholders.
Opportunities for travel operators lie in developing deep partnerships with local communities that deliver authentic cultural experiences that are in high demand with travelers, while also positively impacting the community and ecosystem. But this is not the only opportunity, there is no one-size-fits-all solution when it comes to regenerative tourism. As Pollock explained, each operator will need to find their own way forward, and with a long-term view, success should be defined by more than numbers.
Embracing technology can help travelers meet heightened customer expectations; choose partners wisely
As consumers become more price-sensitive and brand-agnostic, purchase pathways are becoming more diverse and personalized. Consumers now expect travel companies to understand their intent and customize their experience accordingly; leveraging tech will be critical if companies are to meet, let alone exceed, the higher expectations placed on them.
Take AI, one of the key trends in the travel sector at the moment. Booking.com SVP of Accommodations Matthias Schmid described how the company is using AI to smooth non-visible processes and enhance the customer experience, to display accommodation descriptions that match users' search criteria.
Choosing the right tech and, critically, the right tech partners is essential to delivering a great (and consistent) customer experience, and achieving strategic goals.
This is particularly true of payments. 70% of consumers do not complete their purchase, with security concerns and a lack of suitable payment options among the top reasons (Elavon). Travel is an increasingly large payment for consumers, so they must be confident it is secure. Partnering with a payment solution with solid payment security credentials, and that allows familiar local payment methods will remove friction and deliver a personalized payment experience that will improve conversion rates.
Best Acronym:
JOMO: the joy of missing out, the trend of embracing a slower pace of travel, increasingly popular with Gen Z travelers.