Overview of the Travel Sector

Global
The travel sector continues to grow in an upward trend
o Over 4 per cent increase in travelers in 2014 (UK Yahoo! News)
o 2012 Travel & Tourism impacts: $6.6 trillion in GDP, 260 million in jobs,
$760b in investments and $1.2 trillion in exports (WTTC)
o International demand for travel beyond national borders (leisure and
business visitors) continues to remain strong and grow
o Estimated that China will overtake US by 2023 as worlds largest Travel
& Tourism economy (WTTC)
o Expected that in 2023, travel & tourism will account for about 3.05% of
the whole economy GDP (WTTC)
o BRIC/other emerging nations are driving the growth
Economic boom, continual disposable income in BRIC driving
global travel industry growth
(Western) Europe
UK residents have taken an estimated 50.3 million visits abroad in 2012 (FCO)
Spain, Greece, France, Italy, Cyprus: most popular holiday destinations 2012
Over 11 million UK visitors in Spain in 2012. Over half of UK visitors in Spain
have been to Spain at least 10 times and 90% of them are at least on their second
visit (FCO).
Western European countries (France, Germany, UK) and Russia dominate market
for travel by rail in 2011 (Amadeus)
Middle East
Political unrest in places like Egypt have affected bookings
Dubai hosting 2020 Expo, said to attract more than 25 million visitors between
October 2020 April 2021 (Hotelier Middle East)
o Need for about 164,000 hotel/apartment rooms to be created to hold this
tourism boom
89,996 tourists from Saudi Arabia, UAE, Bahrain, Egypt travel to Jakarta,
Indonesia during January-August period (Jakarta Post)
o Non-Muslims spend about $1,113 during vacations in Indonesia while
Muslim travelers spend 2-3 times that figure during their vacations
o Tend to spend over a week in Indonesia when visiting
o Other top travel destinations for Middle Easterners: Malaysia and
Singapore
Far East (Asia)
Asians emerging wealthy middle class will lead the growth of the travel and
tourism market over the next decade with an annual average growth of 6 percent
British tourists have begun to visit Burma more often as a travel destination
starting in 2010

o Burma has good reputation for up and coming as well as for warm,
friendly people and culture
o 50 hotels being built in anticipation of high tourist numbers when Burma
hosts 27th South East Asian Games in December 2013 (FCO)
Asian countries advertising heavily to attract Europeans to travel to their countries
(Malaysia hopes to attract 28 million tourists in 2014)
By 2023, China will lead the world in Travel and Tourism contributions to GDP,
overtaking the US (WTTC)

TRAVEL
Destination: South America and Under-Utilized Countries to be top destinations in the
upcoming years
Brazil is said to be a top destination between 2013-2016 (World Cup, Olympics
generating buzz and interest in Brazil)
Focus to be put on high potential, under-utilized countries like Burma, Turkey,
UAE, Cambodia (Deloitte)
Asia, Latin America, Sub-Saharan Africa among top growing destination markets
in 2012 (WTTC)
Destination Branding
o Cities and countries branding themselves for tourists
o Brand partnerships: Britain: Youre Invited campaign partnership with
companies like Ben Sherman (created Union Jack suitcase)
o Southeast Asian companies branding (Malaysia, Singapore)
o Scotland is promoting their country in 2013 with promotions about their
nature and green land to attract people to the beauty of the country (FCO)
Booking: People are taking autonomous approach to booking and relying on peers and
reviews rather than travel agents
In one year, increase by 44.4% of mobile bookings for travel, and 100.1%
increase in booking on tablet or iPad, and decrease in bookings on Desktop by
5.5%
Autonomous feeling, empowered by the Internet and in control of their travels
and no longer need a travel agent
Routehappy.com allows consumers to rate happiness experiences on airlines,
hotels, etc. for the public to see
Websites like Kayak, Expedia, TripAdvisor
Digitalization of Travel and Tourism
o More people use social media and read travel blogs
Niche blog communities: Mommy bloggers, millennial &
generation C, Multi-generational travel, gay/lesbian, foodies
Target specific groups of people looking for different things in
their vacations/holidays in terms of hotels, airlines, destinations
o TripAdvisor is a huge hit in terms of deciding airlines, hotels, cruise lines,
etc. Over 260 million unique visitors a month (Social Media Today)
o 70% of consumers trust online advice (Teletextholiday)
Instant, personalized, and bookable services is the key driver

Ports: Push for technology to enhance the customer experienceSmart traveling

All tickets, confirmations, etc. will be paperless due to new apps and new airport
accommodations (apps such as Passbook on the iPhone)
LED Digital Signage in the airports: low energy and high quality with
advertisements, etc.
Technology driving the airports: predicting waiting times at security checkpoints
and sending to mobile devices or putting on digital screens (Airport Business)
Smart devices to check-in and improve customer experience in airports (Airport
Business)
Incredible IT at Airports
o At Athens International Airport, Holographic lady announces travel
information to help travelers with knowing about delays, wait times, etc.
o Passengers can use their own devices to seek information about flights, etc.
with a free 60 minute wireless connection (at Athens International Airport)
o All-in-One-Kiosks telephone calls, flight information, communication
with airports call centre, weather forecasts all available by scanning your
boarding pass (Airport Business)
Experience is a key factor in airport upgrades
o Dallas/Fortworth Airport has a new The Next Level Experience plan
(Airline Trends)
Lounge seats and screens displaying waiting times have been
installed in the terminals
Once passenger completes security process, they can repacl their
belongings in a comfortable re-composure area by SpringHill
Marriott Suites
Aims to alleviate airport stress at the security checkpoint, the most
stressful part of the airport
Transport: More emphasis on travel destinations and technology/customer experience
Airlines
o Encourage passengers to provide service feedback (applications and cards)
o KLM mobile app: feedback on check-in process, lounge, boarding, arrival)
Cruise Lines
o Growth in the cruise industry
Since the economic storm, the cruise industry (in terms of
passengers worldwide) has steadily been rising growth potential
17,216,000 in 2009, 20,335,000 in 2012, and expected 23,694,000
in 2017 (Cruise Market Watch)
Chinese people are top in cruise market second largest global
cruise market after the US by 2017 (Travel Daily News)
o Destinations in cruise lines are expanding to more Far East countries such
as Burma
o U.S. based cruise lines going global
More emphasis on nationalities and embracing more local culture
Royal Caribbean in Brazil cruises geared towards South American
entertainment/food/culture

o In 2013/14we will see more Russians, Asians, Latin Americans, and

Europeans on board US cruise lines (Cruise Critic)
o UK Lines are doing Short-Break Cruises
Tester cruises (1-5 days) that all leave from UK ports
Destinations include France, Belgium, Holland, British Isles
Helps attract new cruisers who might not be interested in a full 7-8
day cruise (helps grow cruise economy) (Cruise Critic)
o Telecommunications on cruise lines are improving (Cruise Critic)
Cruise ships are enhancing their satellite communications to
upgrade less expensive and faster Internet options and more mobile
options on cruise lines
Carnival and Royal Caribbean are working on fiber optic-like
Internet speeds for their passengers
Working on accommodating to the needs of passengers who are in
need of talking to family or who need to do work while on
vacation (makes cruise lines more appealing)
Train/Railway
o Europe is trying to expand their railway services European high-speed
network triple length of existing speed railway said to be finished by 2030

Accommodation: Increase in pop-up hotels and shared/smart travel

Pop-up hotel phenomenon: Mexico, Greece, Italy, Bali, England
o Tend to be themed: yoga ashrams (Italy, Bali) or have interesting
exteriors to catch attention
o Here today gone tomorrow rooms (Travel and Leisure)
Shared Travel & Smart Travel
o Sharing rides will be a big part of 2014 (cars, taxis, planes, etc.)
o Airbnb leading home sharing website (also linked up on TripAdvisor) as
well as HomeAway, similar to Airbnb
o ZipCar, Avis, Budget rental car services
o Smarter way to travel, more cost efficient and convenient