Consumers around the world are “prioritising” leisure travel for their discretionary spend, leading to a positive post-pandemic outlook for the global tourism industry, reveals new research.

 

The WTM Global Travel Report, in association with Oxford Economics, was launched yesterday (Nov 6) at WTM London 2023, the world’s most influential travel and tourism event.

 

The 70-page report reveals that the number of leisure trips taken in 2023 will be just 10% lower than during the prior peak in 2019. However, the value of these trips, in dollar terms, will end the year in positive territory relative to before the pandemic.

 

Experiences matter

The research also revealed that more holidaymakers are abandoning their sun loungers in favour of nature, foodie and wellness experiences.

 

The report notes “increasing demand for unique, authentic and personalised experiences while people are away on vacation.

 

The report cites social listening data curated by tourism intelligence specialist Mabrian in 2023. This “revealed that experiential activities such as wellness, nature and food tourism increased by over 10% compared with 2019”.

 

“Meanwhile, traditional activities such as sunbathing were less important in travellers’ motivations compared with 2019,” says the report.

 

It also notes how people “crave more opportunities to reconnect” in an increasingly digital world, with more meaningful in-person experiences “fast becoming the raison d’etre for travel”.

 

Increasing costs

The report explains that pressure on fuel, staffing and finance costs for the aviation sector is one of the factors driving up prices. However, consumers in advanced economies are prioritising leisure travel spend in the near-term, while the overall growth trends for leisure travel in the emerging markets are back in line with pre-pandemic projections.

 

“Increasing costs combined with potential downward shifts in consumer outlook pose a threat to the industry, but there are currently no clear signs that costs are a deterrent to trip volumes,” the study says.

 

Demand for leisure travel in 2024 will be “robust”, the report continues, with domestic tourism continuing to perform well.

 

The long-term growth of the tourism industry is strong. By 2033 leisure travel spending is expected to be more than double 2019 levels. One driver, the report says, will be the significant increase in the number of households in China, India and Indonesia able to afford international travel.

 

Destinations in line for a triple-digit increase in the value of their inbound leisure business over the next decade include Cuba (103% growth), Sweden (179%), Tunisia (105%), Jordan (104%) and Thailand (178%).

 

A caveat to the long-term optimism is climate change, although the report says the main impact will be displaced demand and shifts in seasonality.

 

Juliette Losardo, Exhibition Director, World Travel Market London, said: “ The WTM Global Travel Report takes an incredibly detailed look at how our industry has recovered after the pandemic. It is full of positive indicators that validate the work we have all put in to get travel back on its feet.

 

“But there is no room for complacency. We encourage travel businesses to have a look at the sections on drivers of demand, risks and opportunities and emerging traveler trends. Mapping your own take on these topics to the opinions of our experts is a quick way for any business to evaluate the path they are on.”

 

Climate change impact

Furthermore, climate change looks set to play a bigger role in consumers’ choice of holiday destinations and timings. “This is already influencing travel patterns after successive hot European summers,” according to the report.

 

“In 2023, data from the European Travel Commission found that the popularity of Mediterranean destinations dropped by 10% compared with 2022, which was influenced at least in part by perceptions of weather.”

 

The climate crisis has other influences over consumer trends and government policies, says the report.

 

“This could mean fewer but potentially longer long-haul trips, and more local, short-haul trips,” it adds, noting a growing demand for volunteering and interacting with local communities.

 

“Slow travel, which involves undertaking longer but potentially fewer trips, may also become an increasingly popular trend.”

 

Overtourism

Meanwhile, many destinations have been grappling with the problems of overtourism, such as Thailand which had closed Maya Beach as thousands were lured there after it featured in The Beach.

 

And next year, Venice will trial a new tax on day visitors, who have a significant impact on the city’s infrastructure.

 

Elsewhere, outbound markets in emerging economies are continuing to grow, including China, India and Indonesia.

 

As these countries become more affluent, more people can afford leisure travel, prompting new trends with different demographics and cultural preferences.

 

China, India demand to soar

“The ‘travelling class’ in China is expected to nearly double over the next 10 years,” says the report.

 

“However, this represents only a very small portion of Chinese citizens (2.3%) which highlights huge potential for future growth. Similar growth opportunities exist also within India and Indonesia, to name just a few.”

 

It also highlights how older people in China will become more affluent over time, which could mean more demand for holidays such as cruises.

 

Furthermore, the report notes a resurgence in the demand for travel agents as consumers seek help to make the most of their time on holiday.

 

Losardo said: “Trends in leisure travel are quickly changing, which mean this WTM Global Travel Report is a vital snapshot for the industry to see how markets fared in 2023 and what is in store for 2024 as post-pandemic consumer demands evolve.

 

“Holidaymakers seem more determined to make the most of their precious time away – instead of just sun-bathing, more of them want to create treasured memories by booking experiences and excursions to get under the skin of their destination, to explore cultures, cuisine and nature.

 

“After lockdown, we also saw that growing desire to enjoy the outdoors and connect with other people – but in an increasingly sustainable way.

 

“Our report is vital for those seeking a macro view of the travel industry and a deeper understanding of the forces shaping it – and the discussions it will prompt can help to re-frame travel and tourism in a positive way for us all.”  -TradeArabia News Service