Trends
See the future E
uromonitor International’s travel research team is introducing a new report, Megatrends Shaping the
Future of Travel, at WTM London today. The report identifies the most influential megatrends transforming the way we travel and do business. Are overcrowding and environmental concerns finally pushing sustainable travel into the mainstream? Should travel companies look beyond their industry to engage with their customers? Connectivity is a must, but is it getting too much? These are some of the questions that will shape the future of travel.
Snapshot and forecast Euromonitor International’s research shows that global inbound arrivals are expected to grow by 5% to 1.4 billion trips in 2018. On the back of an upgraded economic outlook for major economies like the USA, Japan and the Eurozone, inbound receipts are set to grow even stronger at 11%.
Airlines also register healthy increases at an expected 6.5% growth in 2018, with low-cost carriers outperforming scheduled airlines in terms of passenger and value sales growth, albeit from a smaller base.
In relation to global travel performance, the report shows how the global lodging category is set to grow by 6.1% in 2018, with short-term rentals outperforming all other lodging categories and registering 13% growth. Hotels account for 73% of total lodging sales, with luxury hotels registering the strongest growth. Additionally, in-destination activities are expected to grow by 6.5% in 2018. Within this, shopping by international tourists is set to grow fastest at 8.1%, while attractions (culture, museums, casinos and parks) are expected to grow by 5.6%. Spas lag behind at only 4.3% growth.
32 06.11.2018
GLOBAL EXPECTED GROWTH IN 2018
Inbound arrivals ...
...5% to 1.4 billion Airline passengers 6.5% Accommodation 6.1% Attractions 5.6%
For the UK, the outcome of the Brexit negotiations will have the largest impact on outbound travel, as outbound expenditure outnumbers inbound receipts by 2:1. Although outbound expenditure is forecast to increase whatever the Brexit
Shopping 8.1% Spas 4.3% (year on year)
outcome, some $11 billion of outbound expenditure hangs in the balance depending on the form Brexit takes. A “soft” Brexit would give outbound expenditure a boost, while a “no-deal” Brexit would restrain the rate of growth.
The fi nal straw for plastic waste
Plastic holds an infl uential role in shaping modern society, evident through its widespread application and increased use across all industries. It is hard to imagine living without plastic. In December 2017, however, 200 countries signed a United Nations Environment Programme resolution to tackle all forms of pollution. Companies from all industries, including Adidas, P&G, and Ecover, today use ocean plastics in their products, and many travel players have pledged to take action by reducing plastic waste. One example is Ryanair, the biggest budget operator in
Europe in terms of passengers carried, which announced plans to completely remove non- recyclable plastics from its aircraft by 2023. The initiatives include using biodegradable cups and paper packaging. Running a solid sustainability strategy could become a useful marketing tool for Ryanair. Improved customer experience is on Ryanair’s agenda, and the operator’s latest ambitions are testament to its goals to boost effi ciency, embrace more “green” practices, and in the process become known for more than just cheap fl ights.
Today at WTM London, Euromonitor International will reveal its findings following analyis of the megatrends shaping travel. Wouter Geerts, travel research consultant at the organisation, previews the session
TRAVEL TREND
TO WATCH Customers interact daily with major brands such as Facebook and Google, but only a few times per year with hotels and airlines. It is hard to have loyal customers when interaction is limited. Breaking down silos and engaging with travellers outside traditional engagement phases is becoming increasingly important – being omnipresent allows brands to provide greater customer experiences.
For example, hotels are good at engaging with travellers, and often much better at that than engaging with local residents. AccorHotels wants to change the understanding that hotels cater to travellers by opening its hotels for the local community. In the 2017 earnings call, chairman and chief executive Sebastien Bazin suggested that players like Amazon, Alibaba and Facebook are powerful because they have so many touchpoints with their users. He says: “What is AccorHotels’ point of contact with our customers? Well, on average four times a year.” The company launched its AccorLocal app to attract local residents to its hotels and cater to their needs. It offers services from local merchants and hotels, including breakfast, yoga and fi tness classes, co-working spaces or package delivery and collection.
■ Find out more about Euromonitor International’s megatrends report at the Keeping Ahead of Megatrends Shaping Travel session, taking place at 1.30pm today in the Press Conference Theatre at ME580. Open to all attendees.
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