April 1, 2019
Airline travel is booming. Image credit: Priority Pass
As global travel continues to grow, “megatrends” such as connectivity, sustainability and engaging experiences are shaping tourism across borders.
According to a report from Euromonitor, politics are also playing a role in travel patterns, both in Europe and the Americas. International travel is also becoming more accessible for different populations, in particular the Chinese.
Euromonitor’s report is based on input from more than 1,000 industry experts.
Global tourism
Megatrends are influencing different regions to varying extents.
London was the most-visited city in Europe with more than 19.8 million arrivals. However, with confusion still surrounding Brexit, the repercussions of a “no deal” could extend beyond the United Kingdom tourism industry.
Brexit is likely to impact the European tourism industry. Image credit: The Langham London
Currently, Britons account for 21 percent of inbound tourism revenues in Spain. A no deal outcome could result in a loss of up to $747 million in revenue in Spain this year alone, which could potentially lead to a reduction of $66 million in spending by Spaniards.
In the U.S., concerns about a negative “Trump effect” on international tourism have not fully materialized.
While inbound travel from Mexico and other Latin American countries has declined, Canadians and Chinese tourists continue to flock to the States. The tense relationship between the U.S. and China may adversely impact business travel in the near future.
Political upheaval in South America has also impacted travel. In the case of Venezuela, the tourism industry is now nearly nonexistent with a sharp and steady drop in airline and lodging spend since 2013.
Connected travelers
Consumers today expect travel experiences to be interconnected and nearly seamless, from checking in at hotels to frictionless payments. Mobile pay also eases the difficulties that can come with language barriers and other issues from traveling abroad.
According to Euromonitor, South Africa is expected to see a 22 percent compound annual growth rate in mobile payments from 2017 to 2023.
However, China and Asia are leading the way with mobile, or proximity, payments.
When traveling overseas, more than 90 percent of Chinese tourists will use mobile payment platforms if the option is available, according to a report from Nielsen and Alipay.
Mobile pay can assist these shoppers to make their experience easier, in turn making them want to spend more. Tourists from China use mobile payments 54 percent more than non-Chinese travelers (see story).
Per Euromonitor, China is expected to be both the largest source of outbound travelers and the largest inbound market by 2030 as both international and domestic tourism pick up steam.
Even smaller destinations should prepare to see a significant number of Chinese travelers in the near future, as more adventurous generations continue to push their horizons.
Engaging with nature is a top travel priority for younger Chinese. According to a survey from Resonance Consultancy, 69 percent of millennials and 66 percent of Generation X respondents named enjoying nature as a travel activity they already enjoy (see story).
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