The emerging trends in traveling
Traveling is becoming a trend on its own, caused by a typical for every human-being curiosity and a need to explore and learn more. But the desire to visit news places is mainly “fueled” by the growing impact of the social media and the open world we all live in. Sharing the journeys in your life and your experiences from different places around the globe inspires others to jump on the plane and visit the next destination from their bucket list.
Our lives’ increasing digitalization inevitably affects the way we travel. A lot of new trends are sprouting and keeping up with them is the only way for tour operators to survive in this changing landscape.
Activities instead of leisure
According to Phocuswright online tours and attractions gross bookings will more than double from $9B in 2015 to $21B in 2020, most of which will be mobile-optimized. The third largest segment of travel is ‘Activities’, bringing up to $129B per year in revenue and it is growing quicker than the total travel market. It’s expected to reach up to $174B globally by 2020 (Phocuswright, 2017).
Millennials are here to stay
The largest generation, Millennials (also known as Generation Y), will soon account for 75% of all consumers and travelers and will shape the next 20–25 years of traveling. 83% are working full-time or part-time and currently, spend the most money on travel compared to their younger or older counterparts. Generation Y is defined as exploratory, seeking new adventures and unique experiences. In fact, prioritizing traveling over possessions is core to their identity — therefore they are more likely to invest in it.
These so-called ‘Digital Natives’ are technologically comfortable and well-educated, adventurous and closely connected with social media and the Internet. They are looking for convenience in their booking process and plan carefully every detail of the itinerary.
Generation Y travels differently compared to previous ones. They are strongly influenced by peers, friends and family and their travel behavior is nothing like the one of to their predecessors.
Social travel
What distinguishes Millennials is their inclination to choose their accommodation and trips based on the opportunity to meet other people on the road. The term ‘social travel’ refers to the whole information shared about their trips as well as the communication with fellow travelers via different websites and platforms. They look forward to engaging with new cultures and customs around the globe on a deeper level while sharing the experience with like-minded peers.
Unique experiences
Travelers are increasingly looking for experiences that are distinguishable and that would make for good stories once they return home. Such an example is La Tomatina, the Spanish tomato fight festival that attracts thousands of people and it has lead to the restriction of up to 20 000 of participants per event. Visiting ice caves in Iceland, diving with crocodiles in Africa, the more peculiar and breathtaking the venture, the better. There is no lack of candidates for such specialized trips and the tendency is for them to multiply in the upcoming years.
Tailor-made trips
Tour operators that are targeting specific niche markets are reported to be increasing in numbers. These target customers are attracted by eco-friendly travels, gay tours, foodie vacations, history-themed trips, etc. Experiences that are more about sharing one’s lifestyle with others and less about the getting to know a particular place are proving to be more and more desirable.
‘Let’s check the reviews’
It has been argued that the next big tendency in the travel industry will be the better use of information in order to tailor the experience in relation to both one’s travel and technological needs. 69% of travelers have proven to be more loyal to a travel company that personalizes their experiences both online and offline (Google, 2017).
9 out of 10 travelers find reading online reviews important however, 45% of tour takers do not trust reviews on tour operators’ own websites. Most important are indicated to be reviews by third parties: 95% of travelers trust tour & activity reviews on third-party sites (Stride Travel, 2016). Feedback by others is so crucial that 76% of travelers have certified that they are willing to pay more because of better online reviews (TrustYou, 2015).
The smartphone’s dominance
Mobile devices are becoming the most important tools for reaching the modern consumer and they are quickly replacing the desktop. Around 50% of the travel journeys begin on smartphones according to the latest studies. 79% of the mobile travelers completed a booking in 2017 after doing a research on their smartphone — a considerable rise compared to the 70% who did the same in 2016 (Google, 2017). Even more impressively, 49% of direct online bookings are now on mobile, compared to 31% in 2016. Therefore, travel brands are customizing the experience in their aim to deliver better mobile apps and websites.
The service deliverers’ struggles
Only 9% of DMOs (Domestic Marketing Organizations) believe they have “a cutting-edge digital strategy”. 55% try their best to stay digitally relevant but struggle to achieve it (TrekkSoft, 2017). With the blockchain technology this tech leap forward could be possible, as it ensures transparency, security of the transactions and data traceability. Most suppliers are manually validating reservations, which poses a risk of mistakes. The larger suppliers (with a revenue over 1 million dollars) are being regularly hit the hardest by fraud. Geographically, emerging markets are more affected by such incidents (Phocuswright, 2017).
Overall, the travel industry today is nothing like the travel industry from 20 years ago. Service providers are lagging in reaching the expectations by the new wave of travelers. This is where 15toGO can step in, as we are well-aware of both the issues that the market is facing and the solutions that would satisfy the needs of the demanding customers.
References
Google, 2016, https://www.thinkwithgoogle.com/marketing-resources/booking-com-last-minute-travel-mobile/
Phocuswright, 2017, https://www.phocuswright.com/Special-Projects/2016/Tours-and-Activities-Come-of-Age
StrideTravel, 2016, https://www.stridetravel.com/blogs/reviews-trust-for-tours-adventure-travel.html
The NewYork Times, 2017, https://www.nytimes.com/2017/01/06/travel/where-sustainable-travel-is-headed-in-2017.html
TrekkSoft, 2017, https://www.trekksoft.com/en/library/research-report-remaining-relevant-as-a-dmo
