Digitalisation, innovation and sustainability to shape tomorrow’s consumer-centric tourism products
Euromonitor is providing the industry with cutting edge research on the most important themes impacting travel at ITB Berlin 2023
Caroline Bremner, Senior Head of Travel Research discusses the trends shaping the travel industry in an exclusive interview with ITB Berlin News. She and her colleague Stephen Dutton will present their findings at the ITB Berlin Convention tomorrow.
What segments of the tourism and travel industry will experience significant growth over the next five years?
Globally, the fastest growth for in-destination spending are spas and medical tourism, as consumer wellbeing post-pandemic is expected to remain a top priority, both growing at 11% of CAGR over 2023- 2027. Whilst duty-free (9%), national parks (8%) and food & dining (7%) are also expected to grow above average. Values-based travel packages such as sports, wellness and eco-tourism are all expected to outperform standard travel packages over 2023-2027, with world average value growth of over 12% per year. Nature-based tourism – including adventure, eco-tourism and sun & sea – enjoys also increased consumer appetite, expected to account for 57% of all travel packages world-wide in 2023.
Globally, the fastest growth for in-destination spending are spas and medical tourism.
What are the challenges brought by travellers’ changing needs and expectations ?
Consumers face new challenges as a global cost-of-living crisis has gripped the world, with high inflation and rising prices for fuel and food. All are weighing heavily on consumers’ discretionary income although travel remains a priority for many. Consumers are more susceptible to price discounting, but travel companies should stand firm on the quality and integrity of their offer. Digitalisation, innovation and sustainability help create consumer-centric products matching interest in sustainable and seamless travel.
What is Euromonitor doing to help travel companies adapt and navigate these changes?
We transform our research offer to meet changing needs of our clients – global hotel chains, OTAs, tour operators and destinations. At the height of the pandemic, we launched a Sustainable Travel Index to help with sustainable development that we update this annually. More recently, we incorporated research into consumer segments that reap positive benefits to communities such as blended travel or nature-based/sustainable travel packages. We track themes impacting travel and tourism such as sustainability, innovation and digitalisation.
How does it feel to be back at ITB Berlin ?
It feels great! This will be my first international trip in three years and I cannot wait to visit the city again and see old friends. We have all dealt with hybrid events but face-to-face interactions are where ideas spark, creating new opportunities for future growth and collective success.
Euromonitor International talk innovation and technology at ITB Berlin Convention
Innovation is happening in many shapes and forms: decarbonisation of transport, new consumer segmentation, co-creation with communities, or all digital dots across the customer’s journey. At ITB Berlin, Caroline Bremner and her colleague Stephen Dutton are respectively presenting research on leisure and the metaverse – internet next generation. Euromonitor has already observed that 50% of Millennials are extremely or very interested in an immersive virtual world, like concerts or sporting events. Bremner also sees AR/VR making inroads into the inspiration phase of a trip or holiday, where consumers use this technology to experience a tourism product before purchasing.
Future Technologies for Travel. What’s next?
Today, 2:45-3:45 pm
Hall 7.1a Orange Stage
Blended Travel: Are we all getting remote?
Wednesday 08 March
1.00pm-2.00pm
Location: Hall 7.1b Blue Stage
