Unit 2

Why Tourists Travel


Alberta Education Outcome

Lesson 9: Trends

"Artists are blessed to travel all over the world. They see the trends before they even come out." ~ Tina Knowles


Booking Flexibility is Key


Tour and activity websites are most commonly visited during the evening with Monday and Sunday evenings having the most visits. Fifty-nine percent of travellers begin researching their next trip one to three months before departure and 38% of bookings happen the same day or up to two days before the activity. Many of those bookings actually take place "in-destination" while the tourist is already travelling. 

Consumers want flexibility when they choose to book, whether it's advance or last-minute. Tourism providers need to provide options that allow for both planning and spontaneity. For that, operators need an online booking system that updates in real-time with no restrictions on when bookings can be accepted.




    Leisure Travellers Research Big Trips, But Still Respond to Last Minute Great Deals


    Fifty-five percent of leisure travellers take 1-2 vacations a year and they put a lot of thought into planning these trips. However, when they are presented with a promotional price offer, 30% would take the discounted trip even when it is a place they are unfamiliar with.

    Most Travel Bookings are Done by Women



    Women are the ones booking tours and activities 67% of the time. With regards to all tour and activity bookings, the numbers have shown that for some time, women are both researching and booking the majority of holidays.

    Sustainable Organizations Are King


    Eco-friendly tours are increasing. For example, Intrepid Travel now offers more than 1000 group tours per year that are fully carbon neutral. The number of travellers staying in an eco-friendly or green accommodation at least once has doubled in 2017.

    While businesses need to be thinking about sustainability as the best choice for the planet, it also makes business sense. By solidifying their reputation as a conscious organization, tourism businesses can set themselves apart from local competitors.

    The Chinese Tourism Market is Changing


    The growth of the Chinese outbound market continues. Reports predict an average growth of 8.5% each year between 2016 and 2021. Where Chinese travellers have been seen as having "crazy" spending habits, they might slow down sooner than expected, instead seeking more experiences. However, there is a clear distinction between first-time travellers and mature travellers who are not looking for the same things. Staying current with this fast-changing tourist is vital.

    The Tourism Sector is Still Trying to Understand Millennials


    Staycations make up 43% of all trips taken by millennial families, especially those who wish to reduce environmental impact or save for a larger trip in the future. Not all millennials want to travel to exotic destinations. Although there is an increase in personal planning and booking, 34% of millennials were found to use a travel agent and are more likely to turn to professional planners when the upcoming trip is more expensive.

    Travellers are Merging Business and Leisure


    In the US, 43% of business trips are now more bleisure, a mix of business and leisure. When a business trip is to attend a conference or convention, clients are more likely to turn them into a business / leisure combination trip than when they are strictly attending an off-site meeting. However, when the business trip is 3+ days, the business traveller is 30% more likely to add leisure.




    Experience is the Favourite Word in Travel


    Studies show that experiential purchases, money spent on doing, tend to provide more enduring happiness than material purchases, money spent on having. The most forward-thinking DMOs use a digital and content-first strategy to build an emotional and inspirational brand with experiences at its centre.

    We are in an experience economy. There is science behind it, but it's also very simple: regardless of political uncertainty, austerity, and inflation, we are spending more on doing stuff, choosing instead to cut back on buying stuff. Travel brands can make inspiration the centre of their marketing and get consumers even more excited about their upcoming experience. With a positive guest experience, they can also encourage feedback, sharing, and word of mouth marketing.

    Mobile Devices are the Primary Travel Research Device


    Half of travellers' journey's start with mobile research and half of millennial travellers will search for new travel companies with their phones. This is why it is vital that tourism websites are mobile-optimized, especially when they are selling bookable experiences.

    Not surprisingly, the smallest portion of online bookings is from the older generation (6% ages 45-54 and 6% are 55+). 75% of end users booking a tour or activity are 34 years or younger.

    Online tours and attractions gross bookings more than doubled from $9 billion in 2015 to $21 billion in 2020.

    Destinations are Becoming More Digital, But with Difficulty


    Fifty-six percent of destination management organizations (DMOs) focus their program budget on digital and 73% say it is taking a lot of effort to stay digitally-relevant. However, only 9% of DMOs believe they have a cutting-edge digital strategy while 55% say they are trying their best to stay digitally relevant but are struggling.

    The tourism boards that are seen as driving results are using a digital-first strategy to build an emotional and inspirational brand instead of focussing the majority of their efforts on broadcasting information. Rather than informing visitors, they are engaging and inspiring them with both a content and experience-rich online approach.

    Activities Industry is Stuck in the Stone Age

    Activities are the third largest segment of travel at $129 billion and growing faster than the total travel market. It is projected to reach $174 billion globally by 2020.

    Fifty-five percent of tour and activity suppliers do not have a third-party reservation system and 67% strictly use email or a calendar to manage their bookings. Tour and activity supplies are setting online sales growth as their number one priority. Suppliers need to see the urgency of investing in tech and working with online resellers, even if they think they are doing fine without it. This is especially the case for smaller suppliers and those in emerging markets. Consumer behavior has shifted online with increasingly last-minute bookings and reliance on destination books, so suppliers need to fight against the how we've always done it mentality if they want to survive.