Global Trends Report, Industry on the brink of recovery

The Global Trends Report, published by Euromonitor International, has highlighted several key emerging international travel trends for 2012. Global arrivals are predicted to slow down 5,8% from last year but by 2012 are anticipated to break the one billion arrivals barrier—accumulating in a total spend of almost US$1 trillion.

The global overview was of ‘recovery on the brink’ with many analysts anticipating a double-dip recession, specifically in Europe. The International Monetary Fund predicts a 4% global GDP growth in 2011, down from 5,1% in 2010. Rising fuel and commodity prices, taxation, austerity procedures, political turmoil and social unrest are all reported to have contributed to the slower GDP growth.  Across all markets, online marketing is considered to be the most significant growth area in the long term, with applications on social media and mobile devices very lucrative in the medium-term.

 The following key trends were reported per region:

North America: Mystery Trips

The need to escalate the excitement of travel is fuelling a rise in mystery trips that are premium in price and are for popular milestone vacations such as honeymoons and birthdays. The mystery trips range from customers bidding on packages with an unknown destination and hotel name, to being handed a smartphone unveiling the itinerary day by day, according to their preferences and budget. Travellers pay only 50% of the sales price and suppliers benefit from selling excess capacity without undermining their brand.

United Kingdom: Rent a garden

The outlook in the UK remains bleak with a stagnant economy. Travellers are searching for alternative accommodation options such as campsites and hostels.  Value remains key in the travel decisions of Britons. A growing alternative is garden camping, in which Generation Z and the baby boomer markets rent garden spaces in which to camp out. Campinmygarden.com is growing in popularity and provides listings of individuals and establishments that rent their gardens for camping purposes.

Europe: Luxury without the guilt

Following the global economic crisis, a new kind of luxury tourism is emerging in Europe – more authentic and ethical with a focus towards ‘luxury without the associated guilt’. Responsible and sustainable travel is high on the agenda, with around 50% of the European luxury outbound market demanding responsible tourism practices when travelling. There is an increase in the use of ‘living walls’ and ‘vertical farms’ whereby luxury hotels have their own kitchen gardens and implement community support in a local produce growing and social empowerment movement. In Europe the high-end segment is outperforming its mid- and lower-tiered counterparts.

Africa: Mobile commerce boosts travel

Africa is leading the world in M-commerce with 60% of mobile Web users using mobile phones to purchase goods. The upwardly mobile population means that Africa is leap-frogging earlier forms of media and taking travel to those who were traditionally excluded from it.

Technology and Online Travel: Gamification

This is the integration of gaming dynamics in non-gaming environments, started in the US entertainment industry and is now a growing movement in the travel and tourism industry. By encouraging consumers to join competitions and share their experiences, photos and videos, the trend generates brand awareness and loyalty for destinations. It works through the offering of points, badges and real-life gifts, with some websites allowing web users to explore a region’s attractions, complete challenges and win trips to the desired region.

Global village: Evolution of social media

Social media was at the forefront of tourism marketing activity during 2011, leveraging offline events to interact with online audiences. Social media focus is shifting to loyalty programmes, bookings, concierge and customer service and the aim is to capitalise on its power and friends/followers’ influence to drive bookings and build loyalty. Hotels are rethinking their marketing strategies to target online audiences in a more tailored and intimate way. An upsurge in hotel chains utilising social media during 2011 was reported.
 
Article Source: www.tourismupdate.co.za