2014 Travel & Tourism Trends

2014 Trends in Travel & Tourism

About Us

Resonance Consultancy creates strategies and plans that shape the future of destinations around the world.

1. Global Growth

1. Global Growth

•  The IMF predicts global GDP to grow by 3.8% in 2014

•  BRICs is expected to drive economic performance 2015-2017

•  Americas - demand is likely to outpace supply

•  Europe - arrivals and incoming receipts have started to pick up

•  Middle East - shift away from Egypt, Syria and Lebanon towards the Gulf

markets

•  Africa - business tourism plus rising incomes and urbanization are driving

domestic travel

•  Asia - remains the leading global region for economic growth

•  India - travel and tourism is rebounding

5 2. China 5

2. China

•  In 2012, the number of outbound tourists totals 83,182,700, up 18.41%

comparing with 2011. China Tourism Academy expects the Chinese

outbound market to reach 94 million trips this year, up 15 percent from

2012.

•  China surpassed the U.S. and Germany in 2012 to become largest source of

outbound travelers in the world

•  New Tourism Law implemented in October is leveling the playing field

causing a shift towards more independent travel

•  Paris (#5), Rome (#11), New York (#13), London (#14) only Top 20

Destinations outside of Asia, according to report by daodao.com (Trip

Advisor)

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3. South America

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3. South America

•  There has been a 12% increase in outbound trips, but growth is likely to

slow next year

•  International tourism expenditure soared 50% in 2010 and rose a further

30% in 2011

•  The US and Europe are the main destinations.

•  Brazilians have proven to be high spenders

•  Brazilians intending to travel more next year has declined to 29% from 42%

one year ago.

4. Millennials More and More

4. More Millenials

•  Millennials are far more interested in international travel than non-

Millennials

•  Are more interested in urban rather than resort destinations

•  Millennials are more likely to travel for leisure in organized groups, with

extended family, or with friends.

•  Millennials are twice as likely as non-Millennials to use their mobile

phones to show travel pictures to friends, share travel photos on social

media, blog or recount travel experiences online, and post travel reviews,

according to a survey by BCG

•  8 in 10 Millennials consider online travel reviews either “somewhat” or

“very important.” (Expedia.com)

5. Unstoppable ` Elders

5. Unstoppable Elders

•  The “elders” target group is estimated between 1.3 and 1.6 billion

worldwide

•  59% of 55+ U.S. affluent define retirement as “a time to travel and explore

new places,” and 42% are planning international travel in the next 12-24

months.

•  Rest and relaxation, 3 - 4 days and 9 - 10 days

•  Word-of-mouth information is an important source of information

•  Off peak travel is favorable

•  Seniors are the developed world's wealthiest and most demanding

•  Tourism Security is important to senior travelers

•  Seniors tend to show higher levels of frustration

•  Lack of good airline service is a major obstacle for senior tourism.

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6. Millions of Millionaires

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6. Millions of Millionaires

•  The number of U.S. millionaires is projected to grow from 10.5 million in

2011 to 20.5 million in 2020, according to Deloitte & Oxford Economics

•  Top 9% of U.S. Households (HHI $150k+) account for 29% of all spending on

air travel and lodging according to 2011 Consumer Expenditures Survey

•  Despite growth in wealth in China and other Asian countries, travelers from

U.S., Japan and Europe will continue to dominate luxury travel space

through 2020

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7. Conspicuous Leisure

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7. Conspicuous Leisure

•  Signaling social status through consumption of experiences rather than

material goods

•  Social media a key vehicle for sharing and communicating status

•  Resonance Report found Top 5 most desired luxuries of affluent U.S.

households are

•  #1 Smart Phone

•  #2 Vacation Home

•  #3 Freedom to Work from Home

•  #4 Taking Exotic Vacations

•  #5 Extended Time off Work

8. Gay on the Go

8. Gay on the Go

•  LGBT spending on tourism will exceed US$200 billion in 2014

•  LGBT tourists are choosing not to travel to unsupportive countries

•  LGBT visitors are sending a message with their spending

•  Welcoming destinations: Sweden, France, Spain, Belgium, UK and New

Zealand

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Glocality

9. Multi- Generational Travel

9. Multi-Generational

•  40% of families went on a multigenerational vacation in the past year.

•  77% planned it around a milestone event

•  Grandparents travel almost 25% more than the average leisure traveler

•  Today's seniors are living longer, healthier, and more mobile lives and are

eager to make up for lost time and long distances away from their beloved

grandchildren.

•  Attracting the multigenerational market is about memories, convenience

and value

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10. Active Adventures

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10. Active Adventures

•  Luxury travelers are seeking out ways to stay active and healthy on the road

•  Growth in adventure travel has accelerated at a 65% yearly rate since 2009

•  The value of the global outbound adventure travel sector was more than

$345 billion in 2012

•  Adventure travel includes two out of three criteria: nature, culture and

physical activity

•  Adventure travelers are younger

•  Nearly 54% of travelers are planning an adventure activity on their next trip

11. Wired & Wireless

11. Wired & Wireless

•  More than 40% of all online research for travel came from a mobile device

•  Millennials are more likely than their older colleagues to book their

business travel on their mobile phones (32 percent) or tablets (20 percent), a

habit that’s slow to catch on among 46- to 65-year-olds. (Expedia.com)

•  Internet access the MOST important hotel amenity for affluent U.S.

travelers

•  DMOs must have a dedicated mobile site for on-site, real-time information

•  Mobile apps are replacing the hotel concierge

12. Bleisure

12. Bleisure

•  According to a US report published by Orbitz in 2012, 72% of business

travelers said that they take extended executive trips that have a leisure

component

•  In North America, 54% of 18-30 year olds bring a significant other on a

business trip, versus 36% of 31-45 and 16% of 46-65 according to a study by

Egencia.

•  27% of affluent U.S. vacation home owners use their home 2 months or

more per year

13. Shopping Tourism

13. Shopping Tourism

•  Tourists spend approximately one-third of their total tourism expenditures

on retail purchases

•  Tourism shopping includes: pre-trip shopping, add-on function of the

attraction or destination, shopping experience, and experience local

culture.

•  There are 10 major malls under construction in the Middle East to be

completed by 2014

•  Growing middle classes in Brazil, Russia, India, and China are travelling to

shop

•  Historic market towns tend to attract boutique and independent shops,

while cities tend to attract major chains.

14. Creative Tourism

14. Creative Tourism

•  UNESCO defines creative tourism as “travel directed toward an engaged

and authentic experience, with participative learning in the arts, heritage,

or special character of a place, and it provides a connection with those who

reside in this place and create this living culture.”

•  “The creative tourist is always a participant, someone who learns by doing,

someone who finds enjoyment and fulfillment in developing new abilities,

someone who wants to interact with local people. As a result, creative

tourists get closer to the cultures of the countries they visit.”

15. Whole Living

15. Whole Living

•  Whole Living is the idea of balancing work with play, indulgence with

discipline, good living with well being and luxury with simplicity. It’s the

notion, in travel, that all aspects of the experience contribute to well-being.

•  Whole Foods has launched Whole Journeys – an experiential travel

company focused on food, cooking, health, wellness and cultural travel

experiences

•  Urban Land Institute launched two year project in 2013 focused on creating

“Healthy Places”

16. Culinary Tourism

16. Culinary Tourism

•  One of the most dynamic and creative segments of tourism

•  DMO partnerships with chefs, restaurants and food tours

•  88% of destinations consider gastronomy strategic in defining their brand

and image

•  27 million culinary American leisure travelers in the last 3 years

•  $12 billion spent directly on culinary activities while traveling

•  American culinary tourists - cultured and affluent

17. Going Green ?

17. Going Green ?

•  One of the most dynamic and creative segments of tourism

•  Tourism presently accounts for 5% of global emissions – approximately 4%

from transportation (40% of those from air travel and 32% from car travel)

and almost 1% from the accommodation sector

•  Just 16% of affluent U.S. travelers rate eco-friendliness an important factor

•  Visits to Beijing have dropped by roughly 50% so far this year, which many

attribute to the city’s notorious pollution

•  Vancouver’s “Green Capital” campaign target to become world’s greenest

city by 2020

18. Athletic Events

18. Athletic Events

•  "Spectator sports" and "Participatory sports"

•  Major events shape the future of the place

•  It’s about Legacy

•  The sports tourism economy: arrivals, revenues, investment, employment,

skills development, environmental management, identity and unity

•  The target audience: amateur, collegiate, professional leagues and

associations

19. OTA Power

19. OTA Power

•  A recent study by Expedia Media Solutions found that travelers visit 38 sites

before booking a vacation

•  OTAs capture 47.2% of those web visits while DMOs receive just 6.4%

•  Younger travelers are more likely to use an OTA (65% < 55 affluent U.S.

households use OTA vs. 48% of 55+)

•  New York and San Francisco DMOs recently signed agreements with

Booking.com

20. DMO vs DMMO

20. DMO vs DMMO

•  A number of DMOs have started to consider transitioning to a DMMO •  Creating a suitable environment:

•  Planning and infrastructure •  Human resources development •  Product development •  Technology and systems development •  Related industries •  Procurement

•  Delivery on the ground: •  Visitor ‘quality of experience’ •  Product “start-ups” •  Events development and management •  Attractions development and management •  Training and education •  Business advice

•  Strategy, research and development

For more information, please visit

resonanceco.com

Chris Fair [email protected] @crfair (646) 413-8887

Richard Cutting-Miller [email protected] @rcuttingmiller (646) 233-1383