My first visit to the WTM in London was … overwhelming.
At least in the first hour. After the first meeting, things got rolling and with a full calendar of meetings you’re basically on auto pilot - running on caffeine and cookies from one stand to another. In one word, exciting.
During the WTM, everyone from the travel industry is in London. Agencies, startups, journalists, you name it.
Lots of conversations were interesting and valuable. You basically meet people working in any sub-industry of travel and there’s many opportunities out there.
Though the group of people with whom I probably got the most were ones from the global Travel Massive community. Two of the evenings post-WTM I spent with the TM crew and got even more excited to push the growth of our community in Slovenia.
While I didn’t listen to any talks at the WTM, I did read the WTM Global Travel Report and found a few things interesting to talk about here.
Teaming up with Tourism Economics, this report dives into what's hot in travel right now. It consists of insights from around the world, showing us how travel's bouncing back after tough times and where it's headed next.
It’s a go-to for understanding the latest travel trends, from how people are spending their travel money to the challenges travel companies are facing.
I see it as a roadmap that helps us figure out what travelers want and how to deliver it, keeping us ahead in the game.
This is my TL;DR version of the report - dive in!
Growth in Travel Demand
Post-COVID, travel trends aren't following the usual economic patterns. Even with the global economy struggling, travel has bounced back stronger than expected, showing that people are eager to travel regardless of economic conditions.
Despite economic challenges, people are prioritizing travel over other luxuries. In wealthier countries, a larger portion of income is being spent on travel, while emerging markets, especially in Asia, are slower to restart travel post-pandemic.
Luxury travel's hot right now, but we might see a split in travel trends soon. People not hit by economic troubles are still going for luxury trips. But those with tighter budgets are likely to lean towards cheaper travel options or might just travel less.
Opportunities
One of the opportunities indicated in the report was Business tourism / blended leisure and business travel. 89% of corporate travellers want to include some leisure component in their next trip. (I saw this trend present in the house I’m renting out - business travelers who had meetings in Ljubljana opted for our cottage to include some leisure and nature vibes to their trip).
Chinese travelers are set to grow in global tourism numbers. By 2033, their spending could be double that of US tourists. Over 60 million more households in China will be ready to hit the road by 2033. Chinese travelers are changing their travel habits too. Post-pandemic, they're showing a stronger interest in nature-based tourism.
The expanded use of technology presents a growth opportunity, especially in tackling staffing shortages in the tourism sector.
More than half of businesses consider customer personalization as an important way to increase revenue and profits. Personalized services are likely to generate increased loyalty going forward.
Challenges
The most significant challenge is the rise in operational costs, as reported by 59% of tourism professionals surveyed. This includes higher costs for flights and accommodation.
Recently, travel costs have started to climb. For instance, flight prices in Europe increased by 36% in 2023, which might slow down travel demand in the future.
The industry is experiencing large staffing shortages, exacerbated by high housing costs in tourist areas and the loss of experienced staff during the pandemic. Many former tourism workers have moved to other sectors, leaving a gap in skilled labor.
Governments and municipal authorities are increasingly focusing on sustainability and environmental issues, which could lead to difficult decisions impacting tourism, such as restrictions to prevent overtourism. Alternative ways of traveling or the promotion of traveling less is on the horizon.
It's clear from the WTM that the travel world is at high energy. From fresh startups to the big players, everyone's taking next steps.
As travel rebounds after Covid, perhaps even in higher numbers, it will be interesting to see where it takes us. What kind of places will still be popular, how will destinations react to these growing numbers (overtourism?), how will technology fit into this and which players will still be in the game.
Let's see where this journey takes us next!