The global travel industry is facing challenges due to political turmoil and changing consumer behaviour, despite a forecasted increase in average spend per trip at $1,101 by 2024, according to global market research company Euromonitor International.
In its new report ‘Megatrends Shaping the Future of Travel: 2019 Edition’ revealed at the World Travel Market (WTM) 2019 in London, Euromonitor looks at the latest trends shaping travel across the regions globally.
Consumers in Asia Pacific are using multifunctional mobile ‘super apps’, combining social, financial and retailing services on one platform. With apps like WeChat holding 1 billion monthly active users, super apps have significantly contributed to the $227 billion online intermediaries’ sales in 2019. However, the threat of the U.S-China trade war could impact Chinese outbound tourism growth.
Under a ‘Trump Adverse Policies’ scenario which would see further tariffs imposed and stricter immigration policies, tourism demand in the U.S. could see 9.6% wiped off potential growth by 2024. “In Latin America, one third of consumers purchase via social media, making it a lucrative tool for businesses. Influencers are following suit, transitioning into tour operators, blurring the boundaries between communication, purchase and experience.” says Caroline Bremner, head of travel research at Euromonitor International.
With Brexit uncertainty and concerns for a severe recession in Europe, low-cost carriers and short-term rentals are expected to be the most popular travel choices, as consumers continue to seek value for money. However, with 59% of consumers concerned about climate change, the move towards sustainable travel is on the rise.
Middle East and Africa
Despite the challenges of war in Syria and Yemen, the Middle East and Africa region continues to enjoy sound growth, with departures from the region estimated to grow by 5.6% by 2024. “Saudi Arabia is investing in tourism by opening up to foreign tourists, to reduce its economic dependency on oil. In Africa, intra-regional tourism is rising rapidly, with domestic influencers and entrepreneurs leveraging growing internet connectivity to promote Africa through rich storytelling” concludes Bremner.
“With the travel landscape evolving, new business models are emerging to offer accessibility, convenience and sustainable alternatives,” Euromonitor notes.
Euromonitor International is the world’s leading provider for global business intelligence, market analysis and consumer insights.