The Future of Travel & Tourism: Technology is Driving Significant Change, Growth is on the Horizon

Travel and tourism accounts for more than one-tenth of global GDP making it one of the most important industries there is. After a long period of fairly limited innovation the industry is experiencing a new time of significant change that is beginning to change the nature of the industry.

More than any other factor, technology is driving this change causing businesses in the industry to rethink their business model and adapt to the times to better engage with their customers. The future of the industry is going to be recognizable, but there will certainly be new types of products that take advantage of the fact that travellers are now increasingly mobile, constantly connected and demanding new and unique experiences.

Scope

- What are the major changes developing in the travel and tourism industry?

- What might the future of the industry look like?

- How are the hotels, airlines and insurance industries preparing for the future?

- What are the big trends in the industry and what products and sales techniques are prospering?

Key Highlights

- Many have alluded to the rise of Airbnb as indicator of the end of the dominance of the big hotel chains but they are growing well regardless.

- Despite this though the future of the hotel industry will require some flexibility and change, because there are some new requirements coming from younger generations and business customers.

- Not regarded as a market prone to sudden changes, vacations have been experiencing gradual development of late due to adjustment to developing consumer tastes. Now a growing part of the market and attracting investment, cruises are attracting new audiences. Package vacations have survived numerous dips following terror attacks around the world, and appear set to remain the mainstay of vacations.

- The market is adapting to the rise in solitary travellers and continued popularity of short-term city breaks, marking a departure from the traditional two-week vacation.

- The airline industry continues to experience periods of flux.

Reasons to buy

- Examine the Airline industry and how it’s changing to deal with difficult market conditions.

- See how the hotel market is dealing with the threats from new entrants.

- Look at the types of holidays that are popular in the travel and tourism industry today.

- Examine the opportunities for the travel insurance industry and what the future of insurance might look like.

Table of Contents

Table of Contents

Executive summary 2

Airline industry is striving for innovation amid difficult trading conditions 2

Hotel market not changing as dramatically as once ...

Table of Contents

Executive summary 2

Airline industry is striving for innovation amid difficult trading conditions 2

Hotel market not changing as dramatically as once thought 2

People are going on different types of vacation, changing the market 2

The business of selling holidays is changing 2

The Travel insurance industry has many options for innovation 3

Airline industry is striving for innovation amid difficult trading conditions 8

Sustainable airlines are minority in industry where margins are thin 8

Consolidation is reaching logical limits in United States - Europe will likely follow 9

Ancillary and additional charge revenue becoming more important to airline balance sheets 10

Online platforms now attracting large investments from leading players 11

Airlines are harnessing social media in bid to attract larger audience 12

Hotel market not changing as dramatically as once thought 14

The global hotels market is growing quite well driven by key trends in technology 14

Global occupancy rates are good particularly in Europe and Asia 15

The UK is about to experience a large spike in room numbers 15

Airbnb is a popular phenomenon, but hotels are strong regardless 16

Airbnb can never standardize its service the way hotels can 17

Airbnb is trying to move into the enormously lucrative business space 18

Airbnb might need to consider a substantial rewards system 19

There has been a boom in hotel booking websites, who have considerable power 19

Attracting millennials to hotels is entirely possible with some changes 20

People are going on different types of vacation, changing the market 22

Helped by growing interest from new markets, cruises are attracting enough attention for the fleet to expand 22

Prone to fluctuations caused by outside influences, package vacations are here to stay 23

More people are choosing to travel alone, changing the focus of travel and tourism market 24

City trips are set to dominate travel and tourism for a long time to come 25

The business of selling holidays is changing 27

Online is now the dominant method of buying and selling holidays 27

Tourist boards and travel companies now increasingly use Instagram to reach customers 28

Holidays with millennials are less traditional and tend to favor “instagramable” experiences 29

Prices are now similar for Instagram posts and for TV advert buys 30

Deploying technology to help improve and sell the holiday experience 31

Deploying AR and VR as a method of selling holidays and showcasing the experience 32

Using the Internet of things to customize and sell 32

The Travel insurance industry has many options for innovation 34

The insurance industry has been slow to evolve but is now changing significantly due to disruptors 34

Personalized products and increased connectivity are a boost to convenience 34

Full automation is a prime example of how costs savings can be made 34

Big data is changing how insurers do business, allowing better fraud detection and tailoring policies to individual consumers 35

The development of flight delay policies is a major benefit 37

The nature of the travel insurer is going to change 38

Key Findings 40

Appendix 41

Sources 41

Further Reading 41

Ask the analyst 42

About MarketLine 42

Disclaimer 42

List of Tables

List of Figures

List of Figures

Figure 1: Air-France KLM net income 2005 to 2017 (EURm) 8

Figure 2: Air Berlin 10

Figure 3: Ryanair net income 2007 ...

List of Figures

Figure 1: Air-France KLM net income 2005 to 2017 (EURm) 8

Figure 2: Air Berlin 10

Figure 3: Ryanair net income 2007 to 2016 (EURm) 11

Figure 4: MyRyanair App 12

Figure 5: Emirates Instagram page 13

Figure 6: Global hotels and motels market 2012-2016 15

Figure 7: Hotel chains and Airbnb valuation compared Sept 2017 $bn 16

Figure 8: Airbnb and hotel prices compared in US cities $ 17

Figure 9: Net income of the top public hotel chains ($m) 18

Figure 10: Hotel chains and Airbnb total room listings millions 19

Figure 11: Hilton Canopy hotel room, Reykjavik 21

Figure 12: Fincantieri shipyard, Trieste 22

Figure 13: Global hotels and motels value ($bn) 2010 to 2016 24

Figure 14: Traveling alone growing in popularity 25

Figure 15: Seville, Spain 26

Figure 16: Survey, customers that booked a holiday through channel in 2017 27

Figure 17: Age groups and their preferred methods of booking holidays 28

Figure 18: Survey asking 1000 millennials the most important factors when booking holidays 29

Figure 19: Travelling focused on social media content 30

Figure 20: Instagram holiday destination content and products 31

Figure 21: AliveCor Kardia EKG analysis app for i-watch 36

Figure 22: Allianz travel smart app 38

    Pricing

Discounts available for multiple report purchases.

reportstore@marketline.com
+44 (0) 161 359 5817

Saved reports