WTM Global

Travel Report
2024 In association with
Tourism Economics

5-7 November 2024

 5-7 November 2024

Contents

Foreword 5

Executive Summary 7

01. Global View 13

02. Regional View 21

03. Industry Trends 43

04. Sectoral Trends 59

About Tourism Economics 82

3
Foreword
Introducing WTM Global Travel Report

World Travel Market brings together the global leisure travel community,
providing inspiration, networking, and sourcing opportunities for travel
professionals seeking to build unbeatable travel experiences.

WTM’s aim is to help attendees navigate change, ensuring travel professionals

are equipped for the year ahead. Commissioning the WTM Global Travel
Report supports our commitment to providing attendees with the latest trends
shaping the travel landscape. Using an expansive data-bank covering more
than 185 countries worldwide as destinations and as origin markets, covering
all major bilateral tourism flows in terms of visits, nights and spend, as well as
unique industry insights, the report gives a comprehensive outlook on tourism.

Juliette Losardo
Exhibition Director
World Travel Market London

Introducing Tourism Economics

Tourism Economics is an Oxford Economics company with a singular

objective: combine an understanding of the travel sector with proven
economic tools to answer the most important questions facing
destinations and corporations worldwide. More than 500 companies,
associations, and destinations work with Tourism Economics every year as
research partners. We bring decades of experience to every engagement
to help our clients make better marketing, investment, and policy
decisions. As part of the leading global economic forecaster and provider
of quantitative analysis, our work is backed by world-class datasets for
navigating economic uncertainty.

We are proud once again to partner with World Travel Market and share
our perspectives regarding global travel trends. If 2024 represented a
return to normalcy for tourism, 2025 is destined to see more elevated
and innovative tourism experiences which go well beyond normal.
The industry is poised for exciting growth fuelled by ever deepening
wanderlust. This report illustrates key opportunities and unpacks trends to
help capitalise on travel’s increasing share of wallet.

Dave Goodger
Managing Director EMEA
Tourism Economics

5
Executive Summary

Global Summary 2030 this figure should grow by over Consumers continue to prioritise
30% to 2 billion. Advanced markets travel despite the rise in value-
Tourism businesses and destinations such as Western European countries hunting. Tourism Economics Travel
are transforming and reinventing and the United States will continue Trends Survey (TTS) showed that
themselves to cater for a more to represent the largest portion three-quarters of all respondents
discerning yet demanding customer. of outbound travellers. However, are still prioritising travel but are
As we fully emerge from the emerging markets are expected looking for more cost-effective
disruption caused by the pandemic, to post the fastest growth, with options. Travellers are also
consumer preferences have evolved. Chinese demand at the forefront. continuing to seek new destinations
Travellers are now seeking more and experiences. Average length of
unique and richer experiences than Short-haul travel will continue to stay on international travel remains
ever before, sparking a new wave of dominate, especially in the short- elevated as some shorter trips are
opportunities for tourism globally. term, with many households facing being sacrificed in place of longer
The prize is impressive; growing to a increased financial pressures from visits. This is to explore destinations
level 24% above 2019 values, global persistent inflation in recent years. more fully as part of the slow travel
leisure tourism expenditure in 2024 The challenging economic backdrop trend. The overwhelming majority
is now worth over $5.5 trillion. is shaping an increasingly cost- of TTS respondents said that they
conscious consumer. Over 80% of are now more interested in meeting
International travel is expected tourism experts in a recent survey locals or learning about local culture.
to be a key growth driver in the conducted by Tourism Economics
coming years. In 2024, a significant think that price sensitivity will
milestone of 1.5 billion international increasingly influence travel retail
tourism arrivals is expected, but by in 2025.

Emerging
Cost of travel Markets Undertaking
is becoming Leisure leisure trips is
a bigger Travel Spend an important
issue (% of global value) priority each
year
2010 25%
(% agree) (% agree)
2019 38%
83% 2030 45% 75%
Source: Tourism Economics, Travel Industry Monitor 2024 Source: Tourism Economics 2024 Source: Tourism Economics, Travel Trends Survey 2024

7
 5-7 November 2024

Regional Trends
Regional Summary:
In Europe, the largest markets—
notably Germany, France, and the
The slower travel recovery of
China is weighing on the regional
Travel spend across Africa surpassed
the pre-pandemic level in 2023, Travel Spend Growth (domestic and international)
UK—will continue to drive leisure
spend in 2025.1 These markets also
outlook in Asia. This is having a
disproportionate impact on its
and is set to grow again in 2024
and looking forward to 2030, albeit, & Fastest Growing Markets (2025 annual % growth)
benefit from significant domestic near neighbours with Thailand more modestly compared with some
tourism activity, which in the case and Vietnam particularly reliant on other regions. Geopolitical tensions
of Germany accounts for around Chinese travellers. Recovery to 2019 are constraining the outlook while
95% of all leisure tourism spend.
Meanwhile, profiting from profiting
levels is lagging, but overall tourism
spend growth is expected in each of
connectivity is also a challenge
with limited route development North Latin
from travellers increasingly hunting
for newer and more affordable
the 20+ territories in 2025 compared
with 2024. The steepest growth is
across the region. However, with
niche activities on the rise, including Europe America America
7% 6% 7%
experiences, the strongest growth expected in Sri Lanka with spend set adventure travel, there are upsides
will come from smaller markets. This to increase by 40%. for some countries, especially those
includes emerging or developing less reliant on domestic tourism.
markets such as Slovak Republic Increased appeal to visit Gulf This includes the big three—South
and Azerbaijan, while Albania and Cooperation Council (GCC) Africa, Egypt, and Morocco—and Slovak Republic United States Dominica
Armenia have experienced the countries has played a major role other smaller destinations such as
fastest growth to date. in propelling tourism across the
Middle East in recent years. In 2024,
Mozambique and Ghana. 26% 7% 27%
Domestic tourism will continue the region should attract roughly
to be the mainstay of demand in double the volume of inbound Hungary Canada U.S. Virgin Islands
24% 6% 18%
North America, influenced by the visitors compared with 2019. Global
United States, accounting for circa mega events, such as Dubai Expo
90% of travel spending. However, and Qatar World Cup, and more
international leisure spend is relaxed border controls and visa
expected to grow by 9% per year policies are key features of this Azerbaijan Mexico Barbados
until 2030, providing the greatest
opportunities.
success. Improved connectivity
and destination development will 22% -3% 18%
continue to drive growth in coming
Central American and Caribbean years. However, the travel outlook
countries have performed the across the region is subject to a high
strongest in Latin America,
benefitting from strong demand
degree of uncertainty due to the
direct and indirect consequences of Asia Middle East Africa
15% 13% 4%
by U.S. travellers. This looks set to ongoing conflicts and instability.
continue next year with destinations
such as Dominica, U.S. Virgin
Islands and Barbados expected to
achieve double digit spend growth.
South American countries face a
Sri Lanka Qatar Nigeria
generally more subdued outlook,
but with growth in a range of
40% 26% 29%
markets including the large Brazilian
domestic market. Laos Iraq Mozambique
30% 21% 27%
Cambodia Oman Ghana

29% 8% 25%

Source: Tourism Economics

1 Leisure (travel) spend relates to all destination spend including domestic and international.

8 9
 5-7 November 2024

Trendspotting

The rise of the global middle class is activities are possible is projected to
driving increased demand for newer fall in some important destinations.
and distinctive tourism experiences.
This is leading to shifts in traditional As some demand is displaced, there
norms in travel. The rise of alternative
accommodations such as short-term
are sizeable opportunities for the
industry to capitalise on growing Short-term 65%
rentals share
rentals, which now represent 20% of demand for more sustainable
tourism nights in Europe, illustrates offerings. This also coincides with

agree travel
29%
of all
how the industry has undergone a trend of increased interest in the
significant change in recent decades. outdoors, either through passive or

The prospect of further change

more active activities, with adventure
tourism expected to grow by over tourism nights has a negative
and disruption lurks in many
corners as technology is set to play
15% per year in the next decade. (2023) impact on the
an increasingly significant role in There is a trend of democratisation in
of travellers environment
influencing behaviour. This is not
only as a source of information
but also as part of a new toolkit
travel with consumers drawn to and
presented with a broadening range
of offerings. Many of today’s travellers
report
20%
used by travel businesses to are more interested in sustainability
improve efficiencies and offer more
immersive experiences. Growing
and authenticity, so local cultures
and the natural environment are
increased
adoption of new technologies
could significantly grow profitability
increasingly powerful magnets. There
is potential for travel businesses large
interest in
for tourism firms. Adoption of
new technology is higher among
and small to tap into this increased
curiosity which will propel the
adventure Source: Eurostat, Tourism Economics 2023 Source: Tourism Economics, Travel Trends Survey 2024

younger demographics, with Gen

Z respondents much more reliant
industry forward in this exciting
new chapter.
travel
on technology including AI for trip
planning according to TTS. This is
becoming more widespread among
the wider travel population and,
consequently, a large majority of I need to be
tourism experts agree that these
tools will boost productivity and Over half of connected to
experiences across the industry.
Gen Z use technology at
Sustainable travel choices will also
continue to rise in prominence AI tools for all times when
and influence activity. Elevated
recognition of the potential trip planning undertaking trips
negative aspects of travel on social,
cultural, and natural environments,
combined with climate change
impacts, will shift behaviour. This
may further fuel the trend of slow
travel as consumers prioritise travel
25%
(agree)
experiences by undertaking longer
and more meaningful trips. Climate
and environmental challenges
may lead to the demise of some
traditional tourism products for some
countries as conditions or natural
environments deteriorate. The Source: Tourism Economics, Travel Trends Survey 2024 Source: Tourism Economics, Travel Trends Survey 2024 Source: Tourism Economics, Travel Trends Survey 2024

number of days when typical tourism

10 11
 01. Global View
Global travel hitting new
heights

Global travel has reached new spending is continuing to rise in Overnight stays in all paid
record high levels in 2024 according major advanced economies to rates accommodation are set to exceed
to latest estimates. Many analysts higher than in the ten years prior to 2019 levels by 16%, including
have been tracking progress the pandemic. annual growth in 2024 of 7%. This
relative to 2019 as a pre-pandemic improvement is clearer for overnights
benchmark. International arrivals Emerging markets, including some than for visits as average length of
worldwide are now set to surpass markets in Asia Pacific, have lagged stay is rising. Average length of stay
that benchmark, with 1.5 billion recovery to date. This is especially for both domestic and international
overnight arrivals expected this year. notable in China where international stays trended down in the decade
outbound travel remains well below prior to the pandemic, but has
Consumers are continuing to 2019 volumes. However, these increased during the post-pandemic
prioritise travel, especially within emerging markets are now also recovery and remains elevated
advanced economies, economies, prioritising travel and are starting compared with the prior trend.
with spending on travel rising by to drive a rising share of demand
24% since 2019 to match the growth once again. Travel as a share of
in total consumer spending (in spending in these emerging markets
nominal USD terms). Furthermore, is returning close to the high rates
travel as a share of consumer experienced in 2019. Average
length of
Travel stay in
Global spending as hotels on
international percentage international
arrivals to of consumer trips: +12%

01.
surpass spending in 2024
2019 levels compared
in 2024 and 8.8% to 2019–
more than
reach a new (2024)
record level offsetting
of 1.5 billion 8.2% the 8% fall
overnight (2010-2019 average) in the prior
arrivals decade
Source: Tourism Economics, 2024 Source: Tourism Economics 2024 Source: Tourism Economics 2024

13
International travel is International travel is now reaching levels and 15% above 2023 levels. the United States and those in
more dynamic new record levels in 2024. For many This increased average length of stay Western Europe as well as further
major destinations, arrivals data in reflects the prioritisation of travel rapid growth from large emerging
Recovery, and any growth since peak months is higher than in 2019. as well as some sustainable travel markets such as China and India.
2019, has been dominated by This is reflecting continued high choices. Overall, this fits with the
domestic demand which surpassed travel confidence and prioritisation slow travel trend as some consumers However, travel patterns will not
the previous high mark in 2022. of new experiences among place greater emphasis on travel fully return to their prior norms. In
Domestic travel was initially seen as consumers. Consumer research experiences which can mean staying addition to longer stays on trips,
a safer option, and now provides a illustrates this trend as 75% of key longer in destinations. many travellers are looking for cost
more cost-effective option for many global travel markets consider savings on travel in the near-term
travellers. overnight leisure trips an important International demand is now, once while new destinations are also

Domestic demand still accounts

annual priority. again, becoming the most dynamic
segment of travel, and is set to
being sought. Short-haul, intra-
regional travel will continue to
International travel is set
for a higher proportion of overall
travel, at 70% of overnight stays.
The impact of increased length of
stay is clearer for international travel.
take a growing share of the market
and, in doing so, converge with
dominate cross-border growth in
the coming years.
to grow 12% per year
However, this share has moderated
from recent highs and is returning to
While arrivals are set to surpass prior
peaks by just 2% in 2024, overnight
pre-pandemic growth trends in the
coming years. This will be supported
over the next two years,
more typical shares as international
travel continues to rebound.
stays by international visitors are
estimated to be 8% above 2019
by continued robust growth from
established markets including
compared to just 3%
annual growth for
domestic travel
Undertaking leisure trips is an
important priority each year
(% agree)
75%
Source: Tourism Economics 2024
Source: Tourism Economics, Travel Trends Survey 2024

Annual Growth in Domestic & International Visits Growth in Short- & Long-Haul Visits
2024-2025, change on previous year 2024-2025, change on 2019
14%
16%
12% 14%
12%
10% Domestic International 10% Short-haul Long-haul
8% 8%
6%
6%
4%
4% 2%

2% 0%
-2%
0% -4%
2024 2025 2024 2025
-6%
Source: Tourism Economics 2024
Source: Tourism Economics 2024

14 15
Leisure travel remains This includes the phenomenon of from 3.4% in 2023 to 2.6% in 2024 in
crucial blended travel, so-called bleisure real inflation adjusted terms, and is Annual Growth in Business & Leisure Visits
trips, as extra leisure nights are set to grow at a similar rate in 2025. 2024-2025, change on previous year
The performance of business travel added to business trips. The rise of This is in line with some slowdown
has been something of a surprise remote working has created a more in disposable incomes, while the
agile workforce who can live and 20%
relative to prior expectations that positive impacts of interest rate cuts
this segment would be replaced work away from home. will not become evident until late 18%
by remote meetings and events. 2025 at the earliest. 16%
Yet, in-person contact is still highly However, leisure travel remains the
valued and business overnights and most important travel segment in Cost savings are increasingly 14%
spending have surpassed prior peaks. terms of volumes and spending, being sought while luxury 12%
comprising 69% of arrivals and 80% remains important for some too. Business Leisure
10%
Business travel is being built of global travel spending. An increasingly price-conscious
to a large extent around MICE and brand-agnostic consumer is 8%
events, with indications that Growing consumer interest in evolving, ever willing to trade up 6%
business travellers are staying travel means that both domestic or trade down, balancing financial
longer and spending more per and international leisure travel considerations with greater 4%
trip. For example, the volume of activity is now above prior peaks appreciation of comfort 2%
international business visits remains and is set to continue to grow and experiences.
0%
6% below pre-pandemic levels, further despite some more modest
2024 2025
while overnights are 3% above that consumption increases. Global
benchmark. consumer spending growth slowed
Source: Tourism Economics 2024

Blended leisure and business travel

is the top opportunity for tourism
growth - mentioned by over 50%
of tourism experts

Source: Tourism Economics, Travel Industry Monitor 2024

16 17
 2 billion Chinese outbound is set
The road to 2 billion visits

Longer-run leisure growth

to rise by 80% from

opportunities also remain clear and
we anticipate that the number of tourist arrivals anticipated by 2030
international overnight arrivals per

pre-pandemic levels by
year will grow from 1.5 billion this
year to surpass 2 billion before the Source: Tourism Economics 2024

end of this decade.

Developed markets will remain the

largest travel source markets, but Global Tourist Arrivals by 2030 while Indian travel
will double
emerging markets will continue to
gain importance. In the ten years
prior to the pandemic, leisure travel
Region 2019 / 2030
spending by emerging markets 50%
rose from around 25% of the global Europe 47%
value to 38%. This proportion is set
to rise further in the coming years, Asia-Pacific 24%
representing almost 45% of 25%
global leisure travel spending by
N America 10%
the end of this decade. 9%
Global population growth is Middle East 5%
moderating, including in some 8%
major emerging markets, but these
Africa 6%
populations will continue to grow in 6%
prosperity. The global middle class will 5%
continue to expand, notably Latin America
from emerging markets, with an
5%
increased travelling class evident in Source: Tourism Economics 2024

these markets.

Top Outbound Growth Markets: 2019-30

Increase in number of nights spent on outbound trips (millions) & % increase (in labels)

China 78%

United States 42%

Germany 48%

United Kingdom 48%

France 65%

India 97%

Russia 61%

Canada 35%

South Korea 67%

Australia 59%

0 50 100 150 200 250 300 350

Source: Tourism Economics 2024
Source: Tourism Economics 2024

18
 02. Regional View
Europe: Intra-regional European travellers are now
demand and value for increasingly venturing beyond
money their borders and international

Europe is ahead of the general

travel demand is catching up with
the recovery in domestic demand. Travellers
pattern of global recovery and
the majority of destinations are
International travel is making a
greater contribution to growth in
are still
expected to expected to surpass 2024 and will remain important in seeking new
2019 levels by the end of this
year. The elevated importance
coming years.
destinations
of international travel in Europe Travel intensity (overnights per and
is partly due to geography as,
in terms of distance travelled, a
capita) is hitting new heights in a
range of cities, including Barcelona, experiences
significant proportion of cross- Amsterdam and Venice which are
seeking to limit visitor volumes.
while also
border travel within Europe is
equivalent to domestic travel in However, stronger growth and remaining
larger countries such as the United
States. Nonetheless, European
greater intensity is evident in
Edinburgh, due to the festival, and
cost
countries generate around 30% of the associated benefits are seemingly
more accepted there. There are
conscious
global travel spending, including all
domestic and international activity. opportunities for smaller destinations

Europe: 2024 Leisure Travel Summary

% growth

16%

02.
2019-23 2023-24
14%

12%

10%

8%

6%

4%

2%

0%

International Domestic International Domestic

spend spend nights nights

Source: Tourism Economics, 2024

21
to position themselves as alternatives destination development. Türkiye Long-haul travel to the region is a
to these iconic destinations as is also expected to see growth in mixed bag. Travel from Middle East Europe: Largest & Fastest Growing Destinations
overtourism becomes a greater risk. 2025, despite inflationary pressures and Americas, and notably from 2024 market size & 2025 expected growth
and the more stable Lira raising the the United States, has recovered.
Travellers are also keen to explore cost of travel there in 2024 to the Travel from Asia Pacific markets and
450 30%
new destinations, with a number of benefit of alternative destinations. especially from China is yet to recover
smaller countries experiencing the Greece has benefitted from the cost due to slowing economic activity and 400
25%
fastest growth as travellers seek new movements, while also benefitting limited capacity.

2025 annual % growth

350
and authentic experiences. A range of from favourable visa changes which
300 20%

US$ bn
countries will continue to experience allow Turks to visit ten Greek islands
double-digit travel growth in coming with a visa on arrival. 250
15%
years. Albania, Armenia, and Serbia 200
stand out as destinations where Intra-regional demand is a crucial 150 10%
travel spending has doubled since driver of international demand for
2019, with international demand to many markets. Some slower consumer 100
5%
the fore. More moderate growth is demand growth in the region is 50
now anticipated, but with markets actually a positive as Europeans are 0 0%
such as Slovak Republic, Hungary, reluctant to travel beyond the region, Germany France UK Italy Spain Slovak Hungary Azerbaijan Bulgaria Türkiye
Azerbaijan, and Bulgaria gaining with value for money increasingly Republic
ground and benefitting from some important for travellers.
Inbound leisure spend Domestic leisure spend 2025 % growth

Source: Tourism Economics, 2024

Travel intensity is hitting new

high levels in some major
city destinations

Tourism Intensity by Selected European City Europe: 2030 Leisure Travel Growth
2019=100 Visitor nights per capita Annual average % growth 2024-30
9%
110
8%
90 7%

6%
70
5%
50
4%

30 3%

2%
10
2019 2020 2021 2022 2023 2024 1%

0%

Venice Amsterdam Edinburgh International Domestic International Domestic

London Barcelona spend spend nights nights
Source: Tourism Economics, 2024 Source: Tourism Economics, 2024

22 23
North America: Domestic exceeded 2019 levels this year - North America has taken a larger
demand remains crucial largely due to sustained demand share of global spending - and travel United States: Travel Balance & Exchange Rate
from the United States. from the United States has been a key
growth driver for many destinations Travel balance, US$ bn Weighted average
Domestic demand is vitally important
The impact of the strong worldwide. North America holds a (inbound leisure spending minus outbound) US$ exchange rate index
for North America and especially for
the United States where it accounts performance of USD to date is higher share of global outbound
40 1.5
for 90% of travel spending. Domestic evident in the travel imbalance as spending than it did pre-pandemic,
spending has been the key driver outbound travel remains high while largely due to robust outbound U.S. 30 1.4
of travel recovery to date with inbound is yet to fully recover. As the travel demand. The United States has
overnights and spending well above exchange rate stabilises we should been a key growth driver for Mexico, 20
1.3
pre-pandemic levels. see a return to a closer balance, with as well as destinations in Central
improvement in inbound travel back America and the Caribbean. Economic 10
1.2
International travel volumes are above 2019 levels. slowdown in the United States poses
0
yet to regain 2019 levels, but a risk to the wider region, given its
this is now the most dynamic U.S. consumers have also been heightened exposure to the United 1.1
-10
segment and will drive growth in more extravagant spenders States as a source market. This is
coming years. Inbound spending with a much lower saving also notable in the region for Mexico 1
-20
is also notably improving, in part rate than in other countries. A as well as for many destinations in
due to inflation and the higher greater proportion of excess the Caribbean and Central America. -30 0.9
cost of travel, but also aided by savings accumulated during the For example, Mexican international
affordability gains as the USD is pandemic has also been spent. travel has seen significant recovery -40 0.8
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
now potentially weakening against With prioritisation of travel within to date, with inbound making a large
other major currencies. Mexico discretionary spending, domestic contribution. More moderate growth Leisure travel balance Exchange rate index
is the regional exception, having and outbound travel have boomed. is expected in coming years. Source: Tourism Economics

U.S. inbound spending growth

is now overtaking outbound to
narrow the travel balance
Source: Tourism Economics, 2024

N America: 2024 Leisure Travel Summary N America: Destination Summary

% growth 2024 market size & 2025 expected growth

35% 1400 8%

30% 1200 6%

2025 annual % growth

2019-23 2023-24
25%
1000
4%

US$ bn
20%
800
15% 2%
600
10% 0%
400
5%
200 -2%
0%
0 -4%
-5%
United States Mexico Canada
-10% International Domestic International Domestic
spend spend nights nights Inbound leisure spend Domestic leisure spend 2025 % growth
Source: Tourism Economics, 2024 Source: Tourism Economics, 2024

24 25
 Latin America: Short-haul
N America: 2030 Leisure Travel Growth demand remains crucial
Annual average % growth 2024-30
Caribbean and Central American The Caribbean is the favoured
9% destinations have benefitted destination for new mega-vessels
8% significantly from the strong travel which account for 45% of new
demand from the United States. capacity in the region. This is also
7% coupled with the rapid growth in
Some of the strongest travel growth

70%
6% has been recorded in Caribbean private islands owned by cruise
islands in recent years, including lines in the region, which appeal to
5%
Puerto Rico, Dominican Republic, and new cruisers. Further developments
4%

3%
the Bahamas, and these were among
the earliest destinations to regain
of this sort may help to alleviate
some overtourism concerns while
Caribbean
2%
pre-pandemic levels of travel. Both El
Salvador and Guatemala have been
allowing growth in this sector.
travel growth
1% receiving wider interest by offering
eco-tourism and nature travel
Meanwhile, the larger South
American countries have
is from the
U.S.
0%
opportunities at a more affordable experienced more subdued
International Domestic International Domestic performance with a greater reliance
price point than Costa Rica.
spend spend nights nights
on domestic and short-haul travel (2019-24)
Source: Tourism Economics, 2024 The remarkable growth in cruise demand. For example, Brazil relies
demand is also benefitting many on domestic activity for around
island destinations. The Caribbean 95% of travel spending and has
is growing faster than all other experienced a much more modest
major cruise regions this year, performance. Demand is continuing
with deployed capacity up 14% to expand among Brazilian travellers
according to the Cruise Intelligence both domestically and for outbound
Platform. In contrast, capacity in the travel, including on transatlantic
Mediterranean is largely unchanged. routes. This is mirrored by growing Source: Tourism Economics, 2024

Latin America: 2024 Leisure Travel Summary

% growth

40%
35%
30% 2019-23 2023-24
25%
20%
15%
10%
5%
0%
-5%
-10% International Domestic International Domestic
spend spend nights nights

Source: Tourism Economics

26 27
interest in Brazil as a destination. It
will remain the largest market in the
region and take a growing share of
international travel.

Latin America: Largest & Fastest Growing Destinations Record cruise demand
2024 market size & 2025 expected growth is benefitting
120 30% the Caribbean with
100 25%
14%

2025 annual % growth

increase in deployed capacity
80 20%
US$ bn

60 15%

40 10%

20 5%

0 0%
Brazil Argentina Chile Venezuela Dominican Dominica U.S. Virgin Barbados St. Vincent Antigua
RB Republic Islands Grenadines and
Barbuda

Inbound leisure spend Domestic leisure spend 2025 % growth Source: Tourism Economics, Cruise Intelligence Platform 2024

Source: Tourism Economics, 2024

Caribbean Cruise Passengers

000s & % share of global demand

Latin America: 2030 Leisure Travel Growth

Annual average % growth 2024-30 18,000 45%

16,000
7%
14,000
6%
12,000 40%
5%
10,000
4% 8,000

3% 6,000 35%

2% 4,000

2,000
1%
0 30%
0%
2019 2024 2025
International Domestic International Domestic
spend spend nights nights % of global demand

Source: Tourism Economics, 2024 Source: Tourism Economics, 2024

28 29
Asia: China to remain again, this is not as high as the pre-
crucial for growth pandemic rate and is still skewed Asia: 2024 Leisure Travel Summary
towards domestic demand. % growth

44
Travel within Asia is lagging the
40%
recovery and subsequent growth Travel from China to other
2019-23 2023-24
being experienced in other global destinations in the region and
regions. However, this is influenced beyond is still well below pre- million new middle 30%

pandemic levels, with Chinese

by the importance of China within
the region as a source market and visits to Asia being 28% down on
class households in 20%

as a destination. Travel to China 2019 levels in 2024. Exchange rate China expected by
is expected to remain 22% below and price shifts mean that Chinese 2030 10%

2019 levels in terms of inbound spending power is diminished

0%
visitor arrivals in 2024, while many (although the yuan has partly
destinations have experienced recovered in 2024 Q4), while
-10%
strong growth in international travel preferences have seemingly &
demand in 2024. changed with the emergence
-20%
of lower-spending international
Domestic demand in the region
surpassed 2019 levels last year. All
destinations have now recovered,
travellers, including more repeat
travellers.
9
million new middle
-30% International
spend
Domestic
spend
International
nights
Domestic
nights

but China is also having a large China remains crucial for regional Source: Tourism Economics
impact on the regional total. and global growth. Despite the class households in
slower expected economic outlook,
Travel within China, and across
Chinese borders, was still subject to the population will continue to
India expected by
restrictions until early 2023 while become wealthier, and the number 2030
other markets were closer to a of households defined as middle
return to normality. While Chinese class and able to afford travel will
consumers are starting to spend a increase.
high proportion of income on travel Source: Tourism Economics, 2024

Asia: Largest & Fastest Growing Destinations China & India: Outbound Leisure Travel Spending
2024 market size & 2025 expected growth US$ bn, 2019 and 2024 labels are average annual growth rates from 2015, 2025 labels are
growth rates from 2024
1000 45% 250
18%
900 40%
800 35% China India 8%
2025 annual % growth

200
700
30%
US$ bn

600
25%
500
20% 150 -3%
400
15%
300
200 10% 100
100 5%
0 0%
50
China India Japan Thailand Philippines Sri Lanka Laos Cambodia Brunei Malaysia 14%
12%
19%

Inbound leisure spend Domestic leisure spend 2025 % growth 0

2015 2019 2024 2025

Source: Tourism Economics Source: Tourism Economics

30 31
India will see rapid economic Oceania: Steady growth
growth, and associated rapid growth ahead
in travel demand, but this is from a
lower starting point. Domestic and Travel to Oceania is set to More dynamic international
outbound travel growth from India experience some of the most rapid demand growth, including
will still lag behind that from China growth out of all world regions returning Chinese travellers, is
in terms of volumes. Additional – in part thanks to growth from now providing greater benefit to
challenges in terms of capacity China as it continues to recover. all Oceania destinations. There
and infrastructure, as well as visa This is broadly in line with the is more obvious growth evident
policies, will limit international growth being experienced in for smaller countries with less of
travel growth to and from India many destinations in Asia, and an internal market, including the
without further reform. comparable to some of the growth Pacific Island nation of Tonga.
trends in South-East Asia which are
South-East Asian countries are benefitting from intra-Asian travel. Long-haul demand has
growing rapidly and account for traditionally accounted for a
the majority of the fastest growing Australia is the largest market large proportion of international
destinations in the region. These in Oceania and accounts for the demand for this region, including
countries are benefitting from bulk of the growth, notably in the travel from Europe. This demand
regional demand, as well as some recent improvement in domestic is not set to return to a strong
significant inflows from Russia, as demand. However, performance growth path in the near-term, but
travel to more traditional European this year and expected growth into will become an important driver
countries is no longer possible. the near-term is more subdued, for the outlook to 2030.
as there is substitution towards
South-East Asian countries also outbound travel and away from
remain attractive to other longer- domestic. Australian travellers
haul travellers who are hungry to are now increasingly returning to
explore new and more affordable long-haul destinations, with such
destinations. Long-haul travel to the trips already up 6% on 2019 levels.
sub-region will outpace that for the
wider Asia region.

Asia: 2030 Leisure Travel Growth

Annual average % growth 2024-30 Oceania: 2024 Leisure Travel Summary
% growth
12%
60%
10% 2019-23 2023-24

40%
8%
20%
6%
0%
4%
-20%
2%
-40%

0%
-60% International Domestic International Domestic
International Domestic International Domestic
spend spend nights nights
spend spend nights nights

Source: Tourism Economics Source: Tourism Economics

32 33
 Middle East: Rapid end of this year, will further boost significantly. More modest growth
Oceania: Largest & Fastest Growing Destinations growth but large risks travel in the region. is now anticipated within the region
2024 market size & 2025 expected growth as some gains are consolidated, but
The Middle East is the region which Travel within the region also continued development within the
120 60% is most reliant on international benefitted in recent years from region, including new destination
demand and has enjoyed the improved relationships between other development within Saudi Arabia
100 50% strongest performance in recent years. countries, including the resumption of will drive continued expansion of

2025 annual % growth

International leisure overnights are direct flights between Israel and some the sector, as Saudi Arabia continues
80 40% GCC countries but serious risks remain
roughly double the pre-pandemic to diversify its economy away from
US$ bn

norms. in the geopolitics of the region. reliance on hydrocarbons.

60 30%

This rapid growth is led by GCC Travel has been further boosted
40 20%
countries as destinations, but also by the new development and
as source markets. Intra-GCC travel infrastructure that was put in place
20 10%
is growing rapidly as residents are for the Dubai Expo and Qatar World
increasingly travelling across borders Cup in 2022 which is now being
0 0%
within this sub-region in a way that is enjoyed by all visitors. The successful

Middle East
Australia New Zealand Fiji Tonga Vanuatu Solomon hosting of these major events, and
consistent with domestic demand in
Islands
many other countries. associated destination development

Inbound leisure spend Domestic leisure spend 2025 % growth The positive effects of geopolitical
has helped to attract new visitors.
New connectivity, including airline international
Source: Tourism Economics developments constitute part of this
success, as the end to the blockade
and airport development is a further
growth driver for the region, as well as travel has
of Qatar and resumption of travel
with other GCC countries has seen a
provision of easier visa processes and
notably for Saudi Arabia. doubled
significant uplift in leisure visits and
spending. The growth since 2019 is Saudi Arabia has seen particularly since 2019
a somewhat flattering statistic since eye-catching growth with total
it includes some resumption of the visitor arrivals up 80% in 2024 since
travel that was limited after the prior 2019. This is explained to large
peak in 2016. Plans for a unified GCC extent by religious tourism, but
visa, still scheduled for launch at the holiday travel has also increased Source: Tourism Economics, 2024

Oceania: 2030 Leisure Travel Growth Middle East: 2024 Leisure Travel Summary
Annual average % growth 2024-30 % growth
120%

12%
100%

10% 2019-23 2023-24

80%

8%
60%

6%
40%

4%
20%
2%
0%
0% International Domestic International Domestic
International Domestic International Domestic spend spend nights nights
spend spend nights nights

Source: Tourism Economics Source: Tourism Economics

34 35
However, ongoing conflicts and prices for consumers in the region and Africa: Regional demand outdoor and experiential travel,
tensions are disrupting life in parts beyond. As a result, the travel outlook held back by connectivity which could benefit the African
of the region, including impacts across the region is subject to a high destinations which can offer safari
on travel patterns. Escalation could degree of uncertainty. African travel has also returned to holidays or adventure travel.
disrupt important oil and gas markets more normal levels on all metrics
and further affect supply chains and and is set for further growth, albeit Air connectivity within the region
more modest than in some other
regions. These trends are strongly
remains limited; improved regional
air transport agreements would
Rise in
Middle East: Largest & Fastest Growing Destinations
tied to intra-regional demand.
Intra-African travel accounts for
facilitate cross-border regional
flights. The introduction of regional
demand for
2024 market size & 2025 expected growth the majority of demand within the
continent, especially when domestic
air transport agreements in other
regions has previously led to
experiential
70 30%
demand is also included in the
calculation, primarily due to pricing
expansion of cross-border travel,
including facilitation of longer-haul
and
60 25%
and connectivity effects. arrivals via regional hubs, as well as
nature-based

2025 annual % growth

lower air fares. High transport costs
50
20%
Travel budgets within the region remain a significant barrier to travel
tourism can
US$ bn

are typically more limited and in Africa.

40
15% short-haul trips are the most
practical option for many travellers, South Africa is the largest tourism
benefit many
African
30
10% hence destination performance is destination country in the region
20 strongly tied to regional economic in spending terms and is expected
10 5% success. Robust, but unexceptional
growth to 2030 is anticipated while
to see strong growth in 2025.
Some North African destinations,
destinations
0 0% there remain risks associated with including Egypt and Morocco,
Saudi UAE Iran Israel Jordan Qatar Iraq Oman Bahrain Kuwait geopolitical tensions both in North are also exceptions to the wider
Arabia Africa and in several Sub-Saharan trends. These destinations have
countries. easier access, through proximity,
Inbound leisure spend Domestic leisure spend 2025 % growth to wealthier European and Middle
However, there are also notable Eastern markets and enjoy a higher
Source: Tourism Economics upsides for some countries in the international travel share as well as
region from the rising demand for some more rapid current growth.

Middle East: 2030 Leisure Travel Growth Africa: 2024 Leisure Travel Summary
Annual average % growth 2024-30 % growth
14%
40%
12% 2019-23 2023-24
35%

10% 30%

25%
8%
20%
6%
15%
4%
10%

2% 5%

0%
0%
International Domestic International Domestic
International Domestic International Domestic spend spend nights nights
spend spend nights nights
Source: Tourism Economics Source: Tourism Economics

36 37
Other developing and emerging for countries like Mozambique and
markets are poised to see healthy Ghana increased international travel
growth in 2025 due to base effects spend is also expected.
from much lower levels of tourism
activity. This growth is likely to come
predominantly from increased
domestic tourism spend, although

Africa: Largest & Fastest Growing Destinations

2024 market size & 2025 expected growth

25 35%

30%
20

2025 annual % growth

25%
US$ bn

15 20%

15%
10
10%
5
5%

0 0%

South Egypt Morocco Algeria Tunisia Nigeria Mozam- Ghana Zambia Comoros
Africa bique

Inbound leisure spend Domestic leisure spend 2025 % growth

Source: Tourism Economics

Africa: 2030 Leisure Travel Growth

Annual average % growth 2024-30
8%

7%

6%

5%

4%

3%

2%

1%

0%
International Domestic International Domestic
spend spend nights nights
Source: Tourism Economics

38
 5-7 November 2024 5-7 November 2024

International Travel Leisure Spend

2030 Largest & Fastest Growing Destinations

The bubbles show the largest

destination countries by international
leisure visitor spend in each region
as well as a selection of smaller,
fast-growing markets. The size of the
bubble reflects the overall size of the
market for the largest destinations in
each region. Meanwhile, fast growth
markets are shown in a consistent Estonia

121%
bubble size.
Europe
Growth

Germany

Canada
Top 5 111% Growth
Czech
Slovak
Republic

101% 294%
Republic

Fastest growth
37% France Growth
Growth

Growth Spain
31% Middle East
60%
Bulgaria

Growth 92%
North America
Growth Azerbaijan
China
Growth 134%
55%
United Italy Turkey
States
49% 76%
Growth

Top 5
Top
77%Growth Tunisia
Growth
Growth Growth
Japan

Morocco
39% Jordan
49%
32%
Growth Qatar

29%
Growth

Dominican Egypt Growth 127%

48%
Growth Growth
Republic

33% Asia
Mexico Saudi Arabia
51%
Taiwan

69% 24% 93%

Growth
UAE
Growth Anguilla
Growth 89% Growth
India
Growth

Puerto Rico
Growth
Growth 74% Thailand Top 5
22% 133%
Dominica

147%
Growth
Growth Growth Oman Vietnam Fastest growth
Panama
46% Growth
Growth
93% 101%
Growth
Philippines

57%
Growth

Kenya Sri Lanka

Growth
25% 109%
Malaysia

Growth Growth 69%

Growth
Colombia

16% Tanzania
Growth
49% Growth

Peru Brazil

94%
Growth
45% Growth Mozambique

167% Fiji
Growth
24%Growth
Botswana

Latin America Paraguay

120%
46%
Growth Australia

Top 5
Growth
60% Growth

Africa
South Africa
Fastest growth 90% New Zealand

118%
Growth

Top 5 Growth

Fastest growth Oceania

Top 3

Note: High growth markets are shown in lighter shading

Note: Figures in bubbles show % growth in inbound leisure travel spend (nominal terms) between 2030

40 41
 03. Industry Trends
3.1. OPPORTUNITIES

Time to travel Growing global middle class

For thousands of years travelling While the scars of the pandemic The travelling class, consumers with
for pleasure has evoked a sense remain in some regions, notably sufficient disposable income to
of wonder among civilisations. Asia-Pacific, the overall outlook undertake leisure travel, will account
In ancient history, Egypt was an for tourism in 2024 is healthy as for 21% of the global population
early example of a flourishing global visitor arrivals are expected in 2024. By 2030 and 2050, this
destination as privileged members to increase by 16% compared with audience is expected to grow
of society flocked to see its famous 2023 and reach a new record level significantly to 24% and 33% of the
monuments such as the Pyramids of 2% above the previous peak global population which presents
of Giza. The Seven Wonders of the in 2019. huge opportunities for tourism
Ancient World subsequently became growth.
must-see sights for ancient travellers. Economic trends are a key factor
Over the passage of time countless underpinning positivity with travel
destinations have spawned across well-established as a priority spend
the globe each offering unique item among advanced economies
experiences in distinctive natural, and a growing middle class
cultural, and historical settings.
Despite some geopolitical risks and
emerging in developing countries.
Travelling
tensions in several regions around
the world, some might say there has Class
never been a better time to travel! (% of global
population)

Global
Visitor 2024

03.
75% agree, Arrivals 21%
undertaking 2024
leisure 2030
trips is an +16% vs 2023
24%
important
priority each 2050
year +2% vs 2019
33%

Source: Tourism Economics, Travel Trends Survey, 2024 Source: Tourism Economics 2024 Source: Tourism Economics 2024

43
Experience economy The next best thing

88% Visiting New Destinations

Triggering a further boon for The popularity of travel has fuelled
tourism, consumers in developed remarkable creativity. Be it volcano- (% more interested compared to five years ago)
nations have demonstrated boarding in Nicaragua or cage

57%
increased demand for experiences diving with sharks in South Africa,
in recent decades. Consequently, of consumers, mostly European, stated a broadening range of activities
the “experience economy”— they plan to spend the same or more are available to consumers driven
consumers prioritising memories on experiences in 2024 by growing demand for new and
over physical goods—has thrived. unique experiences.
Source: Mastercard, 2024 Source: Tourism Economics, Travel Trends Survey 2024

According to Mastercard research, Consumer research recently

nearly nine out of ten people conducted by Tourism Economics
expected to spend the same or identified that the range of things
more on experiences in 2024 Most Popular Experiences to see and do is a leading factor
compared with 2023 with travel (% wishing to undertake more of in 2024) in choosing both domestic (25%)
and tourism related experiences and international (27%) travellers.
most in demand. Travel and tourism: 60% Moreover, 57% of travellers in the
Food-related experiences: 35% same research indicated that they
The trend is evident in the spending Outdoor experiences: 35% are more interested in visiting new
behaviour of consumers globally Live music events: 35% destinations compared to five years
and not just those in developed ago which highlights increased
countries. Over the last decade Source: Mastercard, 2024 appeal for fresh experiences.
developing markets have spent a
higher share of their disposable The seemingly boundless
income on travel, catching up the opportunities for travel companies
proportion of spending in many to innovate by offering distinct
advanced economies. Leisure Travel Spend 2014-19 & 24 and personalised offerings, aided
(% of consumption) by technology, presents exciting
Furthermore, evidence, such as possibilities for the industry.
recent Skift surveys, suggests Advanced Economies: 8.1% & 8.5%
younger generations such as Gen Developing Markets: 9.3% & 9.3% Travel to new, alternative
Z and millennials place greater destinations is also continuing to
emphasis on experiences rather boom, with stand-out growth in
than materialistic goods which Source: Tourism Economics, 2024 travel to new and emerging markets
bodes well for the travel outlook. such as Saudi Arabia and Albania
which achieved visitor arrival
growth of 80% and 74% respectively
in 2024 compared to 2019 .

I’d rather spend

money on travel than
things

60%+
of Gen Z and millennials agree

Source: Skift Research, 2019

44 45
Sustainable tourism Great outdoors
Global travel, including air travel, has a
According to Tourism Economics’ negative impact on the environment Engaging with nature and the Nature Tourism Market
latest Travel Trends Survey (TTS), outdoors has traditionally been an
nearly two-thirds of travellers All 65% important element of recreation
from key outbound source and leisure. However, since the $600 billion
markets recognise that travel can Europe 71% pandemic many consumers have (market size 2015)
have a negative impact on the sought to reconnect with nature in
environment. Asia-Pacific 60% more impactful ways. The impact of
lockdowns and restrictions during Source: World Economic Forum, republished from Balmford et al

Increased recognition of the impact North America 58% COVID-19 likely strengthened this
of travel on the environment is bond. As a result, eco-tourism and
reshaping travel behaviour for Source: Tourism Economics, Travel Trends Survey 2024 nature-based or outdoor tourism
and creating new opportunities
businesses to tap into modern
activities, such as hiking and cycling,
are poised to attract expanding
Tourism Growth
(2024 compared to 2019)
travellers’ eco-consciousness. audiences.

Voluntourism—travelling with
Sustainable Tourism Market Our TTS research reveals that, Visitor arrivals
the purpose of helping local
communities—is an example of
14% compared to five years ago, 34%
of consumers reported a growing Global average (excluding top 250 cities)
(forecasted annual growth, 2024-2034) interest in rural and nature-based
how tourism has expanded in new
directions which, according to
Grand View Research, is expected
to generate nearly $1 billion
$11.4 trillion
(2034 market size)
tourism while 29% indicated
increased interest in adventure
travel. Nature- based tourism, such
7%
globally in 2024. This is part of Source: Precedence Research, 2024 as safaris and birdwatching trips, Top 250 cities
a broader movement known as also emerged as a leading trend in
sustainable or regenerative tourism,
guided by the principle of tourism
creating more positive impacts
China’s tourism market—the largest
outbound travel market globally—
ranking as the top choice for
5%
for local communities. Research short trips and vacations typically
conducted by Precedence Research undertaken by Chinese travellers. Leisure tourism spend
suggests the economic value of the
sustainable tourism market globally
I attempt to minimise Growing appetite to engage with Global average (excluding top 250 cities)
could grow by 14% per year over my carbon footprint when rural or smaller destinations is
the next decade.

The industry has responded

travelling
already happening and looks set to
continue as travel growth, excluding
the top 250 cities globally, has
20%
53%
to growing demand for more outperformed the global average. Top 250 cities
sustainable tourism offerings. This This illustrates growing demand
is exemplified by the expanding
efforts of many travel brands to
help consumers identify more eco-
agree
beyond traditional city hotspots as
more travellers seek further flung
and more rural and countryside
15%
friendly travel options. In a recent Source: Tourism Economics, Travel Trends Survey 2024 destinations. Trend beating travel Source: Tourism Economics, 2024

development to its sustainability growth in Greek and Spanish Islands

program, Booking.com is now also reaffirms this trend.
providing tools to accommodation
partners to improve the pathway to
third-party certifications displayed 83% Physical exercise along with other
health rejuvenation activities is part Wellness Trip Expenditure
on its site. There are now more than
18,000 properties on the Booking.com
agree that sustainable travel is important of booming wellness sector within
tourism. According to the Global 16.6%
platform that have achieved third-
party sustainability certification. The
57%
intend to reduce energy consumption on future trips
Wellness Institute, wellness tourism
expenditure is expected to grow
projected CAGR (2022-2027)

$1.4 trillion
platform is also enabling travellers robustly at 17% per year over the
next few years. (forecast 2027)
in certain destinations to pick and
choose greener options such as Source: Booking.com, 2024 Source: Global Welless Institute, 2024
electric or hybrid rental cars or taxis.

46 47
Sailing ahead Greater luxury
Likelihood to undertake a cruise Share of travellers who consider travel as very or
Once synonymous with an in the next 12 months Luxury travel is poised to remain extremely important in their lives by income
older demographic, the global (% stating ‘likely’) a major driver of growth in the
profile of cruisers has undergone industry. Recent research by Skift $200,000-$299,999 60%
transformation with younger 18-34 82% identified a correlation between
consumers increasingly drawn to income and the importance of travel
cruising. Based on recent research with the highest earners most likely $300,000-$499,999 65%
conducted by Tourism Economics
35-54 83% to consider travel very or extremely
among active cruisers, younger important. $500,000+ 78%
audiences, aged 18-34, indicated 55+ 77%
they were significantly more likely Motivated to travel and with greater
Source: Skift Research, 2023
to undertake a cruise in the next Source: Tourism Economics, Cruise Trends Survey 2023 financial means, affluent travellers
12 months compared to those represent a disproportionately
aged 55 or above. Perhaps more large share of tourism expenditure.
tellingly, significantly above other According to the same Skift study, this
demographics, over 60% of younger Interest in cruising now compared segment accounts for 30% of travel Share of United States travel
audiences indicated that their to before Covid-19 spend in the United States. spend by household income
interest in cruising had been piqued (% in ‘more interested’)
since the pandemic. However, luxurious travel experiences
18-34 64% are not confined to the highest
Under $30,000 17%
The successful efforts of cruise earners. Aligning with increased
operators to broaden appeal and
35-54 54% demand for meaningful and $30,000-$59,999 15%
target new segments along with memorable experiences, travellers
value for money considerations of all budgets seek pampering and $60,000-$89,999 14%
are important drivers of change. 55+ 33% indulgent leisure experiences. Based
Indeed, some brands now on our TTS research among key
specifically target millennials. Royal Source: Tourism Economics, Cruise Trends Survey 2023 tourism markets, 39% indicated that $90,000-$119,999 13%
Caribbean’s newest ship, Utopia of they indulge in luxurious experience
the Seas, offers shorter, high-energy while undertaking travel - among $120,000-$149,999 10%
cruises directly aimed at younger Chinese travellers this figure increased
customers. to 55%.
$150,000+ 30%
In 2024, the global cruise industry Out of this has grown a trend of
is expected to see demand growth affordable luxury as consumers
of nearly 13% compared with 2023 increasingly choose premium or Source: Skift Research, 2023

- a year which posted 7% growth higher quality offerings. According

compared to 2019, the high-water to the views of tourism professionals
mark for cruise tourism before from Tourism Economics’ Travel
the pandemic. The outlook is also Industry Monitor, this is expected
buoyant as demand is set to grow by to remain important in 2025,
around 4% per year, in line with the despite a potential slowdown in the
strong growth rate achieved by the
industry before Covid-19.
luxury market overall, as recently
highlighted by LVMH, a well-known
Cost of travel is becoming
French luxury goods company. a bigger issue impacting
Global Cruise Demand Growth
While capitalising on splurge consumer decision making
13%
(2024 vs. 2023)
spending remains a clear opportunity
in travel, there is growing evidence

83%
of increased price sensitivity as cost

20%
conscious consumers reevaluate their
spending habits. From the same study
(2024 vs. 2019) conducted by Tourism Economics, agree
over 80% of tourism experts agreed
Source: Tourism Economics, Cruise-Intelligence Platform 2024 the cost of travel is becoming a more Source: Tourism Economics, Travel Industry Monitor 2024

challenging issue in the industry.

48 49
3.1. CHALLENGES
GDP Growth Rates
Counting costs Mixed economic outlook 2024 / 2025
Economic theory dictates that Despite some economies In air travel an outlook of modestly Alongside potentially higher travel
increased demand generates higher experiencing reduced inflationary increasing air fares marks a directional costs, consumer sentiment in some
prices but there are other factors
which have contributed to drive
pressures, early evidence suggests
stickiness towards higher prices
shift after a decade or so of decreased
global air fares in real terms. Higher jet
markets has stalled recently which
is linked to a range of economic
World: 2.7% / 2.8%
United States: 2.7% / 2.5%
up travel costs in recent years. in the industry. A “new normal” of fuel costs and costly decarbonisation issues, including persistent inflation
Labour shortages, increased debt steeper cost increases may threaten initiatives are a few variables which are and prolonged higher interest
repayments and higher supplier the continued growth of tourism, contributing to a trend of increasing rates. Major travel markets such as
costs are other issues which have
forced many travel companies to
especially with key drivers such as
pent-up demand and increased
air fares. The need to cover debt
repayments also add to cost pressures,
Germany, the United States, among
others, have recently posted mixed
Eurozone: 0.8% / 1.2%
China: 4.8% / 4.4%
review their pricing strategies. Based household savings increasingly in while low-cost carriers are having less economic and consumer data which
on quarterly research conducted the rear-view mirror post pandemic. of a downward impact on prices. may signal headwinds for travel
among tourism professionals by as consumers rein in discretionary
Tourism Economics, rising business spend. However, lower inflation
costs is a major constraint in travel. means interest rates cuts are now
underway which should boost Source: Oxford Economics, 2024

household finances and spending

throughout 2025 in advanced
economies.
Travel Pricing Global Air China is another key travel market China Outbound Visitors
Expectations Fares showing signs of economic
weakness. GDP growth is moderating
(as % of 2019)

Barrier To
Q4 2024 vs Q4 2023 (change in real prices)
and is set to grow by just over 4%
in 2025; faster than many other
2024 2025
Growth: markets but significantly slower
than prior trends. This slowdown
69% 95%
(views from tourism experts)
was largely anticipated and is
2014-2024
Source: Tourism Economics, 2024
partly a consequence of a maturing

Increased 75% economy. However, price deflation

business
expect increased eating
and drinking costs -23% and currency movements are eroding
Chinese purchasing power. Importance Of
costs Prior to the pandemic, China was
the largest source market for global
Chinese Visitors
(% of visitor arrivals in 2019)
mentioned 66% tourism but it has yet to fully recover.
expect increased costs Underlining subdued growth,
South overall
East Asia
by for entertainment /
experiences
according to Tourism Economics’
latest Global Travel Service (GTS)
2024-2030 29%
50%
forecasts, in 2024, Chinese outbound
travel is expected to hover at around

63% 10% 70% in 2024 and is unlikely to fully

recover by the end of 2025. Thailand
expect increased
accommodation costs This is particularly ominous for its
near neighbours in Asia such as
40%
Thailand and Vietnam which have
traditionally disproportionately Vietnam
benefitted from Chinese travellers,
although Chinese travellers are 56%
Source: Tourism Economic, Travel Industry Monitor 2024 Source: Tourism Economics, Travel Industry Monitor, 2024 Source: Tourism Economics & IATA - Air Passenger
Forecasts 2024
returning to other Asian countries Source: Tourism Economics, 2024

ahead of longer-haul destinations.

50 51
Slowbalisation Hard work

Influenced by increased regional

insecurity and economic instability,
Travel Deterrents The tourism industry has
traditionally struggled to hire
among other factors, shifting Geopolitical/cultural views mentioned by and retain talented staff which
societal views appear to be shaping generates persistent challenges,

19%
a new world order in which and this will likely continue
nationalist priorities are taking hampering operations in 2025 and
precedence over global integration. beyond.
A levelling off of global integration (equal third largest travel deterrent)
or “slowbalisation” with fewer free A combination of factors including
trade deals may pose new threats an aging workforce, lack of
for tourism development in the Source: Tourism Economics, Travel Trends Survey 2024 perceived career development
future. Weaker trade ties between opportunities and insufficient
countries will likely see reductions training are commonly cited
in business travel with fewer as reasons explaining this
international contracts secured but phenomenon. While the
this may also generate negative
perceptions which impacts bilateral World Trade Value particularly acute impacts on
staffing due to the pandemic
tourism flows. (CAGR 2000-2022) may have ameliorated, according Barrier To Growth
6%
to Tourism Economics’ quarterly
In a recent consumer survey survey among tourism industry
conducted by Tourism Economics professionals, staffing challenges
among key global travel markets,
nearly 20% said that geopolitical
remain a key issue in the industry. Staffing issues
or cultural views, such as negative
World(CAGR
Trade Volume Tourism has also traditionally mentioned by

44%
perceptions of countries, were provided opportunities for part-
a deterrent when considering 2000-2022) time workers, including those

3%
destinations. beginning their careers. Some of
these part-time workers left the
Following an extended period labour force or found other jobs
which has seen an expansion of during and coming out of the
liberal trade policies, a new era pandemic which poses longer-term
for global trade could be shaped challenges for the sector.
in the coming years. Rising world Source: WTO, 2024

trade has facilitated sustained

tourism growth for many decades,
especially in the 1990s and 2000s. (2024 Average)
Slower trade growth since 2010
has had a negative impact on
international travel, albeit offset by
some lower price trends which are Change to Global Visitor
also now fading.
Arrivals Annual Growth
Reduced air route development (2000-2019)

4%
may be one potential ramification
if trade policies become more
restrictive as cargo services
contribute to the feasibility of
many routes.

Source: Tourism Economics, 2024 Source: Tourism Economics, Travel Industry Monitor 2024

52 53
Loyalty lost Sustaining sustainability

The growth of promiscuous

Online Travel Content There are opportunities to benefit
Price Markup For
shoppers, consumers who
frequently switch brands and are
Consumption from a ‘green premium’ with
consumers increasingly drawn
Sustainable Products
often attracted by special offers, to more eco-friendly offerings. (versus conventional products)
has gained prominence in recent
Average However, tourism businesses
years disrupting the status quo in
industries. In retail, this has led to
5 hours face challenges transforming
their operations to become more Average c. 80%
(45 days prior to booking)
an expansion of discount retailers sustainable due to higher costs and
which have gained market share likely increased regulation.
from incumbents.
Number of online travel content Fashion Beauty & Health c. 200%
pages viewed According to consulting firm
Price and value-based decisions Kearny, sustainable products can be
are likely to become ever more
Average around 80% more expensive than
Source: Kearney (and others)

important in travel as consumer

reliance on technology continues
141 conventional products. Indeed,
from the same study, costs for some
(45 days prior to booking)
to grow amid a trend of increased categories are estimated to increase
travel bargain hunting. This means
the role of individual brands
Source: Expedia, 2023 by over 200%, including beauty
and health products. Increased raw
Shipside Investments
Retrofit costs versus new-build projects
could diminish leading to weaker material and manufacturing costs
customer relationships. are two factors contributing to drive
up the costs of sustainable products.
+150-200%
Younger generations such as Gen Z
and millennials are more likely than Gen Z and millennials, These higher costs are additional
risks for the industry as it continues (estimate)
other generations to consider and
transact with a broader range of
consider + 1.7 times to grapple with cost-related factors.

travel brands. This finding suggests more travel brands Developing more sustainable Source: World Port Sustainability Program

that the path-to-purchase for travel

shopping will become increasingly than older generations businesses is not just about
changing suppliers to source
complex and nuanced in the future. greener products. In some
Source: McKinsey & Company, 2023
sectors a more radical rethink
As consumers are becoming more is required to reduce emissions
price conscious and brand agnostic, which poses further problems.
this is leading to falling appeal for Retrofitting cruise ships to use
loyalty programmes which spells Net difference between respondents new sustainable fuels and other
challenges for sectors traditionally likely and not likely to recommend energy-saving technologies is an
reliant on this source of business. loyalty programme important task for the industry as
According to McKinsey & Company, part of its decarbonisation goals.
likelihood to recommend travel However, practical challenges
loyalty programmes declined Airline sector linked with costly and complex
between 2023 and 2021.
2021 (+20%) engineering make retrofitting
particularly difficult for cruise Price of SAF (2022)
However, more disloyal
2023 (+15%) ships and ports alike.
consumers should mean increased
opportunities for the broader
tourism ecosystem and, ultimately,
In the aviation industry there are
strong hopes that sustainable
$2,437
per tonne
more choice for customers. Lodging sector aviation fuel (SAF) will drive down
Price of Jet Fuel (2022)
Increased online presence and
more seamless online experiences 2021 (+35%) global emissions and help the
industry to achieve Net Zero Targets
are important for travel businesses
to remain competitive in this
environment.
2023 (+15%) by 2050. However, SAF is currently
prohibitively expensive with costs
ranging from 120% to 700% higher
$1,094
per tonne
compared to conventional fuels,
Source: McKinsey & Company, 2023
according to a recent critical review Source: IATA, 2023

conducted by Watson et al.

54 55
Climate change Expectation and
challenges experience divide
Avoided visiting a
Wildfires, extreme heat, flooding
are just a few examples of severe destination in last
As the experience economy continues
to flourish, increasingly savvy and
Difference between
weather events which deter
travellers and make destinations 12 months due to
demanding consumers are placing
greater emphasis on the quality of
importance and
less appealing. According to Tourism
Economics’ recent survey among concerns about inclement
the experience. This sparks challenges
for travel brands to ensure that
satisfaction
key global travel markets, almost customer offerings are marketed
30% of all travellers and over 40% or extreme weather accurately, consistently high quality
of younger generation travellers
have been put off travelling to
and, perhaps more decisively, able
to match up against expectations.
All Industries +17%
a destination due to inclement Technology is playing a role enabling
weather in the last 12 months.
Average 29%
travel businesses to provide more
personalised offerings but there Airlines +33%
While perceptions play an important is increasing onus on providing
role influencing consumer 16-34 43% transformative experiences which
destination choice, the extent to
which natural landscapes and
may be hard to fulfil. Hotels +10%
environments change due to the Based on 2018 research conducted
impact of a harsher climate could
play an even greater role limiting
Source: Tourism Economics, Travel Trends Survey 2024 by PWC, there are significant gaps in
the expectations and experiences of
Restaurants +12%
tourism. This includes degradation of customers in the travel sector. The
nature and intolerable temperatures study assessed differences between
which prevent tourism. as the Dominican Republic, Malaysia, activities and more broadly travel and satisfaction levels and the level of
Egypt and Thailand are expected tourism. Some Northern European importance consumers placed on Source: PwC, 2018

According to a 2024 study conducted to see significant declines in and North American destinations customer experience in different
by Massachusetts Institute of “outdoor days” – days with moderate could see potential benefits. industries. Air travel recorded the
Technology (MIT), destinations such temperatures that allow for outdoor highest disparity suggesting more
underwhelmed customers compared
with other industries. The research
also highlighted increased weight
Annual Change in Outdoor Days by 2100 attached to the customer experience
(Selective countries) in tourism settings compared to other
industries.

With competition stiff as different

Sweden 53
sectors vie to tap into the burgeoning
experience economy, there is a greater
Canada 23
need for tourism brands to deliver
France 18
high quality services and experiences
among increasingly disloyal
Greece - 37 consumers.

Thailand - 55

Egypt - 68

Dominican Rep. -124

-140 -120 -100 -80 -60 -40 -20 0 20 40 60 80

Source: Massachusetts Institute of Technology (MIT), Tourism Economics

56 57
 04. Sectoral Trends

4.1. ACCOMMODATION

Based on the latest data from

Tourism Economics, global
accommodation spending is 24%
higher in 2024 than in 2019, while
the number of nights in paid

Global
accommodation has risen by 16%.

Accommodation spending is set to

Accommodation
grow by 63% over the next decade,
well above the 48% growth over
the past ten years. This expected
growth represents an increase of
over $1 trillion in accommodation
expenditure which underlines
exciting growth opportunities Expenditure
Growth
across the sector.

Accommodation is now taking

a rising share of total tourism
spending, accounting for 19% of
travel spending in 2024, up from (2025-2034 forecast)

63%
17% in 2000, and 18% as recently
as 2024.

Amid a trajectory of growth, the

landscape for accommodation

04.
providers is expected to continue
evolving rapidly as shifting
consumer preferences, attitudes
towards sustainability, and product
differentiation, among other
aspects, will lead to winners and
losers in the lodging sector. Changes
in regulation as well as finance and
tax structures will also influence the
mix of product supply.

Source: Tourism Economics, 2024

59
Independent or branded? Long-term growth: Short-
Branded Hotel Supply by Selective Regions term rentals
A key battleground in the (% of current supply & % of pipeline)
hospitality industry is a turf war As travellers have become more Another is the diversity of its Camping and caravanning offers
between independent and branded curious and consumer demands offerings from flying saucers to consumers increased affordability
accommodation providers. In a 45% have widened, alternative wooden elephants. Increased which could be more important
backdrop of increasing need for Middle East & Africa 76% accommodations have gained demand for unusual and niche for those continuing to feel the
authenticity, independent hotels prominence. A key segment within experiences aligns with a broader squeeze of the cost-of-living crisis
are well-positioned. Meanwhile, U.S. 72% this is short-term rentals, which trend as consumers increasingly moving into 2025. In addition, the
branded operators with typically
82% according to Eurostat, accounted for seek newer and more memorable sector is well-placed to benefit
deeper pockets can offer more
Asia Pacific 59% around 20% of all tourism nights in experiences. from biophilia – a growing trend of
reliable services for today’s 90% Europe in 2023. increased interest in the outdoors –
travellers with exacting standards. Growing adoption of short-term and linked to that wellness tourism
Source: STR, 2023 A notable player in the sector is rentals is leading to fundamental as many travellers rely on engaging
Data suggest that brands have Airbnb, which since launching in 2007 shifts in tourism impacts as the sector with nature and the outdoors for
grown in appeal to modern has attracted more than 150 million is enabling rural and traditionally less self-healing.
day consumers who seek more users globally who have booked over popular destinations to benefit more
personalised and immersive 1.5 billion stays on the platform. from the impact of visitor spend.

Soft Brand and

experiences. According to STR,
there are now more than 1,200 The shared economy is a key Another segment poised for strong
hotel brands worldwide, including ingredient of Airbnb’s success, growth is camping and caravanning.
over 60 brands in the Marriott and providing opportunities for a According to Grand View Research,

Independent
Hilton portfolios. more authentic experience of the global camping and caravanning
a destination, including stays market size is predicted to grow at
This is due to multiple factors, with hosts. just over 10% per year until 2030.

Hotel
including hotel ownership
structure and increased marketing
capabilities, as well as the shifting
of customer preferences. Lifestyle
Share of Short-Term Rental
hotel brands and soft brands,
which offer more experiential and
unique experiences compared
to traditional brands, illustrate
Performance Tourism Nights in Europe
(2023)

20%
novel developments in the sector
which are gaining market share.
Acquisitions of independent hotels
EBITDA Margin
for conversions to soft brands are
also typically cheaper and more
desirable than new property
development as the real estate Soft brand Source: Eurostat / Oxford Economics, 2023

industry focuses more on adaptive

reuse developments. 21.8%
Similar opportunities can be Largest Lodging Companies (Rooms/Listings)
unlocked by other accommodation
providers by connecting with Independent
guests through storytelling,
harnessing local communities and 19.6% Airbnb: c. 7,700,000
providing more unique and tailored Marriott International: 1,574,486
services.
Jin Jiang: 1,336,399
Hilton Worldwide: 1,113,727
Source: CBRE Hotels Research, 2024 Source: MKG Consulting, Airbnb, 2024

60 61
Distribution wars Sustainability

Online travel agents (OTAs) have

Share of Online Hotel Bookings certification: Trustworthy
or green washing?
captured significant market share (2010 & 2019)
this century and enjoyed rapid While the industry has responded
growth in profits. Booking.com and strongly to meet the need for
Expedia accounted for almost half of more sustainable and eco-friendly
all online hotel bookings before the travel options, choosing the most
pandemic according to Skift. 2010 environmentally friendly option
can be challenging as there are
However, as branded hotel All OTAs 49% many sustainability accreditation
presence rises and hotel operators schemes and, in some cases,
increasingly adopt new technology limited information to substantiate
such as integrated booking engines Booking & Expedia 20% good practice.
and sophisticated tools to manage
inventory and guest relationships, As a result, consumers are
2019

75%
the tide may be turning on the increasingly wary of greenwashing
stronghold of OTAs. h2c’s 2023 – companies providing false or
Digital Hotel Operations Study misleading information about
found that hotel direct bookings
All OTAs 61% the environmental impact of
increased significantly compared their services. According to Skift
with 2022 while OTA share fell. Booking & Expedia 48% Research, over 75% of consumers in
a 2021 study were sceptical about
Digitisation was considered a key travel companies’ claims regarding
feature of this success as inhouse sustainable practices. There is a
technology is helping the industry Source: Skift, 2019 real demand among travellers for
to better understand the needs and more evidence-based sustainable
want of guests leading to a virtuous options, with an emerging trend
circle of more loyal and repeat of regenerative travel that benefits
business. Share of Hotel Chain Revenue destinations.
want to travel more
(2022 & 2023) As we look ahead to 2025,
marketing initiatives promoting
sustainably over the next
green credentials are unlikely to
dissipate nor will the exertions of
12 months
the industry to drive down carbon
2022 emissions. This means a balance may
need to be struck which could see
Direct online booking 20% third-party organisations such as the
Global Sustainable Tourism Council
playing a more pivotal role vetting
OTA 39% sustainability standards. Initiatives,
like the new program launched
by Booking.com, which facilitate
2023 increased adoption of third-party
certification will help consumers
make more informed decisions
Direct online booking 29% regarding sustainable travel.

OTA 34%

Source: h2c, 2023 Source: Booking.com, 2024

62 63
4.2. EXPERIENCES

Cultural connection

Increasing demand for unique and

authentic experiences is heralding
Sampling Local
new opportunities for travel
destinations and businesses to tap
Food & Drink
into a growing market interested in (Interest now compared with 2019)

92%
local culture. According to Business
Research Insights, the cultural
tourism market is expected to grow
by nearly 15% per year over the next
5 years and its value could exceed (Same or higher level of interest)
$17 billion by 2032.

Underlining the global significance Source: Tourism Economics, Travel Trends Survey 2024
of cultural history, over 900 of the
current 1,200 plus World Heritage
Sites are categorised as cultural
heritage sites. These are major
drivers of tourism with sites such
as the Statue of Liberty and the
UNESCO World Heritage
Tower of London drawing millions
of visitors per year. However, a
Sites Tourism Impact
broad range of mainstream and
niche cultural factors are also key
drivers of demand for destinations Estimated increase of between
and brands alike including food and
drink, music, and film.

A study conducted by
5,000–10,000
visitors from each European country per site
ChampionTraveler identified that
popular movies can increase tourism
to filming locations between 25%
to 300% with, for example, Harry Source: Panzera et al, 2021

Potter film locations posting visitor

number growth of 50%.

Concerts and Live Entertainment Industry

Economic Impact in the United States (2019)

$132.6 billion
economic impact

913,000
jobs supported
Source: Tourism Economics, 2021

65
Going local Eventful thinking

Set to be relaunched in 2025,

Airbnb’s newer vertical, Experiences,
Meeting Locals/Learning Following an action-packed year of
mega events in 2024, the outlook
huge publicity and can attract
visitors from new markets.
Global Live
which offers immersive tours
and activities provided by locals,
About Local Culture for major cultural and sporting
events remains bright, despite In addition to generating new
Events Market
highlights growing relevance in (Interest now compared with 2019) financial challenges impacting demand for destinations which
(2024-2030)
cultural experiences through the households. The Global Live Events leads to increased footfall for

88%
lens of locals. Findings from Tourism Market report estimates that the local businesses, events can
Economics’ Travel Trends Survey sector could increase by over bring a different type of visitor
also reinforces that consumers are tenfold from nearly $60 billion in producing additional benefits.
Annual growth
looking for deeper and meaningful
interactions with local populations
while travelling.
(Same or higher level of interest)
2023 to over $754 billion in 2030,
which represents annual growth
of over 40%.
Higher yield and longer length
of stay visitors are commonly
associated with events, including
sporting events. An OECD study
+44%
Technology is destined to play According to a recent survey estimated that event visitors
Source: Tourism Economics, Travel Trends Survey 2024
an expanded role developing conducted by AAA and Bread generate a 20% premium
experiences in this sector. Inhouse- Financial some of this growth compared with the expenditure
trained AI models delivering is due to surging interest in live behaviour of regular tourists. Source: Azoth Analytics, 2024
personalised recommendations events among Gen Z and millennial
for travellers as they explore local consumers who show greater
destinations is already being willingness to attend events
provided by operators such as and higher propensity to spend
SmartGuide, which currently offers compared with other generations.
self-guided tours for over 100,000
Travelled in past 12 months or intend to
destinations. Share of U.S. In 2024, Taylor Swift’s Eras Tour
grabbed headlines and generated a
travel in next 12 months more than 50 miles
from home to attend in-person event
Travellers Undertaking significant amount of travel to host
cities, but other events have also
(U.S. travellers)

Self-Guided Tour generated activity. This includes

other music artists but also major Gen Z 65%
(2023) sports sporting events and notably
the Paris Olympics and EURO 2024
in Germany. These mega events
Millennial 58%
bring people to host cities but also
typically involve displacement of
normal visitor flows. Our analysis
Gen X 43%
All 14% indicates that there was no uplift
in event time visitor volumes for Baby Boomers 27%
these destinations. However, major
events are likely to bring benefits in

18-34 18%
Source: AAA / Bread Financial, 2024
subsequent years as they generate

Sports Tourism Market

10% of global tourism expenditure
Source: Arival, 2024 Source: UNWTO, 2024

66 67
Just for the thrill of it

Consumers are also more open

to adventure, thrill-seeking and
Popular Trip Types
extreme experiences. This is
being compounded by growing
demand for inimitable, “bucket list”
Out of comfort zone
experiences and increased curiosity, (% agree)
and, maybe even, greater tolerance
of risk.

Future Market Insights forecast

that the global adventure tourism
industry is expected to grow
at 16.2% per year until 2033,
73%
potentially making it worth around Source: Booking.com, 2023

$1.5 trillion.

Estimated to account for between

60% to 80% of the market, soft
adventure activities, which are
generally low risk and require
Global Adventure
limited experience, such as hiking,
cycling and wildlife watching,
Tourism Market
represent the largest share of (2033 forecast)
adventure tourism opportunities.
However, hard adventure activities,
like skydiving, mountaineering and
whitewater rafting, are likely to gain
increased traction among a typically
wealthier audience more open to
$1.492 trillion
adventure and willing to take higher
risks.
Source: Future Market Insights, 2023

This type of riskier travel is also

known as frontier travel. It is
perhaps humans’ unquenchable
desire to see and experience
remote and unchartered
destinations that will propel space
tourism in the coming decades.
Anthropologist and credited as a
pioneer of tourism research, Valene
Smith once said what tourists want,
the industry will provide.
What tourists want, the
industry will provide.

Anthropologist, Valene Smith

68
4.3. TRANSPORT

“It’s not the destination,

it’s the journey”
Change to Overall Rating
Transportation not only provides
of Cruise Experience
a fundamental function of travel, (% stating Good or Very good)
but it also plays an important
role enhancing experiences and
is increasingly developing to
become a standalone experience
All 88%
in certain settings.

A growing embrace of slow travel,

a more relaxed approach to
18-34 94%
travel focusing on quality rather
than quantity, is influencing Source: Tourism Economics, Cruise Trends Survey 2023

travel behaviour which directly

impacts the services of transport
providers. Regulations are also
becoming more important in the
sector as governments review the
role of transport alongside their
Net Zero commitments.

71
Taking the train Cruise control

Since the launch of the Orient

Express in 1883 connecting
Global Heritage Railway The global cruise industry is a
story of overwhelming success
Market Share of Mega
European capitals between Paris
and Istanbul, luxury train travel has
Train Market in recent years, despite suffering
catastrophically during the
Vessels (>4.5k pax)
garnered appeal. Today, with luxury (forecasted annual growth 2024 to 2034) pandemic as cruising ground to a
travel growing in many verticals halt. As the industry increasingly
and with an increased focus on appeals to a broader spectrum
Active fleet 16%
8.2%
sustainability, there is a new wave of would-be cruisers, including a
of opportunities running along the younger demographic, there is an
tracks for railway operators and the interesting dichotomy emerging.
broader ecosystem.

An expanding range of rail routes

Strong demand is influencing
buoyant cruise pricing for all ship
Full orderbook 58%
globally is generating a new “Golden Source: Future Market Insights, 2024 categories which highlights the
Age” for train travel, both as a means need for supply growth. Operators Source: Tourism Economics, Cruise Intelligence Platform 2024

of achieving better connectivity are responding to this opportunity

between destinations and creating by investing heavily in the creation
new tourism experiences. of small luxury ships and, more

Recently launching new itineraries

New Rail Routes significantly, mega-vessels with
extensive dining and entertainment
Change in Interest in
2023/2024
dedicated to rail, Intrepid Travel, an
Australian based adventure travel
facilities.
Cruising Compared
company, represents an example of
how industry is responding to this
However, research conducted by
Tourism Economics among active
to 2019 by Vessel Size
growing opportunity.
European Sleeper Service cruisers shows that demand is
increasingly leaning towards smaller
and midsize vessels with fewer than
Brussels to Prague 3,000 passengers.
Smaller vessel
La Dolce Vita Moreover, there are limited larger
and mega-size vessel berths among
(Accor & Arsenal S.P.A) global ports currently which
creates logistical challenges for
<500 pax 15%
Italy (one and two-night journeys) continued growth. A growing wave
of discontent in some destinations
Mid-size vessels
ASEAN Express regarding overtourism poses further
problems for the industry despite

Malaysia to China
record interest in cruising. This
movement has already led to cruise
<3000 pax 20%
ship restrictions such as in Barcelona

Silk Road Express and Venice.

Large vessels
(Qinghai-Gansu Grand Loop) China
3000+ pax -11%
Tren Maya
Mexico

Source: Tourism Economics, Cruise Trends Survey 2023

Source: Various

72 73
Price versus points Inbetweener: Premium
Economy
Airlines have traditionally relied
on loyalty programs to attract and
Frequent Flyer Higher quality typically comes at
Premium Economy
retain customers providing an
important revenue source. However,
Programme Enrolment a higher price and in a context
of increasingly price conscious
Growth
there is evidence of diminishing (North Americans) consumers, a balance is being (increase in aircrafts offering service
appeal with these programmes struck. This is seeing growing
which may reflect increasing price popularity for premium economy
between 2017-2022)
scrutiny and reduced importance Baby boomers 89% cabin class, which bridges the gap

84%
attributed to loyalty points by more between economy and first class
of today’s consumers. The trend and is often considered the “sweet-
appears to be skewed towards
younger travellers who are likely
Gen X 80% spot” for long-haul passengers
and airlines alike. Data from airline
to shape the industry more in the
future. In a recent OAG study, Gen Millennials 70% analytics firm, Cirium, identified
growth of over 80% in the global
Z and Millennials were around 25% supply of aircrafts offering this cabin
Gen Z 65%
Source: Cirium, 2022
less likely to be enrolled in an airline class as a distinct service between
loyalty programme compared with 2017 and 2022.
Baby Boomers and Gen X.

This is leading to shifting dynamics Source: OAG, 2024

in airline pricing as more consumers

trade up from economy to premium
classes with fewer ties and weaker
loyalty to any single brand. This is
yet another example of how modern
travellers are placing increased
weight on quality and raises
questions regarding the long-term
viability of loyalty schemes. It also
highlights a need for the industry
to respond to retain customer
engagement.

74 75
4.4. TECHNOLOGY

Switched on

According to recent research I need to be connected to

conducted by Tourism Economics,
a quarter of consumers, and over technology at all times when
30% of those categorised as Gen
Z, rely on being connected to their undertaking leisure trips
mobile device at all times while
travelling. This finding highlights
our strong and tightening bond All 25%
with technology which is paving
the way for more transformation in 18-34 33%
the industry.

Technology is permeating our lives

35-54 27%
in previously unimaginable ways
and is changing how travellers plan 55+ 16%
trips as well as impacting business
operations. Artificial intelligence Source: Tourism Economics, Travel Trends Survey 2024

(AI) chatbots, such as ChatGPT, are

providing information and advice
guiding more of our day-to-
day decision making, including
holiday planning, while new apps
Used artificial intelligence
are providing tailored information
and recommendations to
tool such as ChatGPT to
travellers. AI and machine-
learning tools are helping the
research/plan overnight
industry to improve business
operations and profitability.
leisure trip
In 2023, Goldman Sachs Research All 29%
estimated that sophisticated
tools using generative AI have 18-34 51%
the capability to drive up global
GDP by 7% or, put differently,
contribute almost $7 trillion over a 35-54 29%
10-year period.
55+ 9%

Source: Tourism Economics, Travel Trends Survey 2024

Potential contribution to global economy of widespread AI adoption

(GDP impact over 10 years)

$7 trillion
Source: Goldman Sachs 2023

77
Fixing business issues Bye passport, hello
biometrics
With the rapid rise of AI, new

98%
technologies are being developed Identification based on specific
and applied in ever-expanding ways characteristics goes back hundreds
to solve business problems and of years with fingerprint signing
provide automated services which
improve customer experience. In
in the 1800s. In travel, biometrics,
identifying individuals based on of airlines have
hotel operations, machine-learning
models are helping revenue
unique biological characteristics, is
increasingly emerging as a game- implemented or plan to
managers better understand the
flow of demand to optimise pricing
changer enabling safer and more
efficient transport hubs. implement biometrics at
decisions. Hoteliers are also using
AI to understand guest behaviour However, the benefits of biometrics airport services
60%
better which leads to happier and is not just confined to creating more
more loyal customers and healthier seamless and secure transport,
balance sheets. Duetto and Mews technology processing biometrics
are two technology providers with
built-in AI capabilities enabling the
offers untapped potential for
the tourism industry to improve of airports expect to
accommodation sector to leverage
and act upon data in new more
customer experiences. Accelerating
services such as check-ins and launch biometrics
powerful ways. making payments or even
replacing hotel key cards, the use of across complete airport
biometrics is likely to become more
widespread. experience in next
Encouragingly, consumers are five years
supportive of the use of this
technology, according to Oracle’s
Hotel 2025 report over 60% of
consumers agreed their experience
would be improved with biometric
Artificial intelligence and new technology. Source: Amadeus, 2024

technologies, like ChatGPT, will make

the tourism industry more successful Automated recognition using
biometrics and facial recognition would
(% agree among tourism experts)
enhance hotel experience

71% 62%
(% agree)

Source: Tourism Economics, Travel Industry Monitor 2024 Source: Oracle, 2024

78 79
Real benefits: AR

Advancements in technology are

leading to innovations which are
enhancing visitor experiences and,
in some cases, creating entirely
new dimensions. In an increasingly
Previously used or
competitive environment, new
technology such as augmented
interesting in using
reality (AR) can help the industry
to stay competitive and relevant
AR/VR technology

95%
by providing a more immersive
experience.

The Skin & Bones app, which brings

skeletons to life using AR in the
Smithsonian National Museum of
Natural History’s Bone Hall, provides
an excellent practical example of
of Americans
new technology complimenting the
visitor experience.

Blending the digital and physical

world renders new and exciting
possibilities for all sorts of tourism
organisations. This is being Source: AddictiveTips, 2023
spearheaded by amusement and
theme parks with Universal Studios
Japan and LEGOLAND Windsor
Resort being examples of operators
using AR to bring characters to
life and, in doing so, elevating the
visitor experience.

Interested in
exploring the world
with AR

XXXXX
75%
of consumers

Source: Tourism Economics

Source: Ipsos/Snap, 2024

80
 5-7 November 2024

About Tourism Economics

Oxford Economics is the world’s foremost November 2024
independent economic advisory firm. Tourism All data shown in tables and charts are Oxford
Economics—an Oxford Economics company— Economics’ own data, except where otherwise stated
combines decades of deep tourism knowledge with and cited in footnotes, and are copyright © Oxford
rigorous economics to answer the most important Economics Ltd.
questions facing destinations and corporations
worldwide. This report is confidential to WTM and may not
be published or distributed without their prior
Oxford Economics was founded in 1981 as a written permission.
commercial venture with Oxford University’s business
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countries, 100 industries, and 7,000 cities and regions. and projections shown.

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