Contents • International Tourism and Leisure Industry • Inbound Tourism Worldwide • Leisure Tourism Categories • A Typology of Motivators in International Tourism • Major trends in International Tourism • Factors Leading to International Tourism Trends • Long-Term Trends in Tourism • The Change in Customer profile: The new tourist • Different Sub Groups of Length of Stay Preferences • Variety of Tourism to Participate • UNWTO Reports on Tourism Trends • Prospects for Future Travel
Main elements: Vital force for peace Social importance Economic importance Cultural enrichment Employment opportunities Educational significance International Tourism and Leisure Industry
Business travel Meetings, conferences, seminars, workshops, and training sessions Incentive travel Normal business travel May be a combination of first two Research and teaching travel Includes all forms that are work related MICE (meetings, incentives, conferences, exhibitions) International Tourism and Leisure Industry
Leisure travel Large and growing sector Includes travel for pleasure and recreation, visiting friends and relatives (VFR), history and culture, attractions, entertainment, cruising, sightseeing etc. International Tourism and Leisure Industry
Major trends in International Tourism (some) 1) Increase in the demand for alternative tourism types like heritage, culture, eco, sports etc. (an optimal bundle of them as a package tour, specialized tours) 2 )Need for Creative Tourism 3) Hotel trends to fit the needs for customers: the lodging facilities specialize in areas like; green hotels, thematic hotels, spa hotels, convention hotels, all-suite hotels, etc.
Major trends in International Tourism (some) 4) Continued concern for safety and security in tourism 5) Growing number of price sensitive consumers maximizing the value of the service purchased, Price wise comparison: PERCEIVED VALUE is the key word 6) Increase in internet usage in tourism operations and e-tourism rate 7) Increased levels of expectation for quality service
Major trends in International Tourism (some) 8) Changes in business tourism (MICE etc.) 9) Introduction of new tourism products; like space tourism, adventure tourism, boutique jet airlines, dark tourism etc. 10) Applications of destination management and marketing
Five Basic Factors Leading to International Tourism Trends There are five basic factors leading to changes in global trends and consumer behaviors in tourism • Globalization • The improvements in technology: • Changing economic conditions • The change in the demand profile of consumers • Political aspects: the ‘War on Terror’, safety and health, the need for growing security
1. GLOBALIZATION • Tourism contributes to globalization (flows of tourists around the world, creation of a global tourist culture, development of multinational corporate organizations like hotels) • Globalization contributes to tourism development (increasing free circulation of people and services: ideas of liberalization and market economy)
We experience international transactions daily Imports and exports reach even remote areas Technology and e-biz promote trade Consumers and companies pull markets closer Globalization Involves Us All
Global DriversforInternationalTourism Positive Negative Technology Open Markets Economic Integration Peace Corporate Strategy Global Focus Culture Market Barriers National Barriers War Corporate Strategy Local focusFocus
Impacts of International Hotel Chains on International Tourism and leisure Destinations Advantages: • increase capital in less developed. countries, • technology and management know-how sharing • distribution of risks, • new markets in global environment, • to increase supply, • increase employment and income, • make tourism season longer,
Impacts of International Hotel Chains on International Tourism and leisure Destinations Disadvantages: • After a while leads to monopoly, • Disability to compete as a local investor, • Discourage domestic tourism, • Company and country benefits may not fit with it, • Profit is transferred outside as the form of leakages
2. THE IMPROVEMENTS IN TECHNOLOGY: TRANSPORTATION AND COMMUNICATION The rise of the new technologies, like the information technology, internet and biotechnology had huge impacts on global tourism. Transport: A380 (« superjumbo ») Product innovation – examples such as null hotels, no staff hotels,etc. e-tourism and internet
Telecommunicationsand Networking tools in the Tourism Industry • Telephone, telex and fax • Mobile devices • Videotext and new data • Teletext • Electronic Data Interchange (EDI) • Inter-organisational and Intra-organisational networking • Virtual reality • Information superhighway (converges media, telecommunications and information technology)
Internet • Enabled the low-cost carrier revolution • More price transparency / competition • Empowered tourists to share opinions with the world: no hiding place for those offering poor quality • Provides incomparable ‘route to market’ for tourism businesses – big or small • Big in numbers! Only 5% of Indian’s have access, but that is 60 million people !!!
Functions of Internet in tourism • Information distribution • Electronic commerce • Request availability/prices/information • Reservation and confirmation • Expanding value chain with complementary products • Deposits and full settlements • Specific requests/enquiries • Feedback/complaints • Ancillary services
Navigation and CRS • Navigation and GPS technologies are providing endless opportunities to hoteliers and consumers. • Today, tourism organizations are virtually using computer reservations systems. • CRS allows reservationists to conclude sales more easily and to place guests in the right hotel at the right price anywhere in the world.
Increase in e-tourism rate leads to trends as: • The use of Internet in travel-planning / booking by both business and leisure travelers seems to continue to grow • Direct on-line bookings by customers are predicted to make up a significant market share by 2010 with access available to most of the population in industrialized countries; • “Virtual tourists” will have an increasing demand for multi-media travel information • Interactive TV and mobile devices will increasingly be used for the distribution of tourism products and services.
The e-Tourism mix The eTourism concept and eTourism domains
3. GLOBAL ECONOMY • International tourism was negatively affected in the years of 2008 & 2009 from economic crisis, turbulence and contrasts • The growth in international tourist arrivals has slowed drastically worldwide • Extremely volatile and unfavorable global economy: • credit crunch, • the widening financial crisis, • commodity and oil price rises, • and massive exchange rate fluctuations.
GLOBAL ECONOMY and EFFECTS on TOURISM INDUSTRY • International tourism was affected more than domestic tourism, • Business tourism more than leisure tourism, • Hotels more than other accommodation and • Air transport more than othertransport.
New Economy • The emerging economic structure is now also called “new economy”. • This term is aimed at underlining the fact that the factors of economic growth and competitiveness are changing. • Consumers’ behaviour, consumption structure, production structure and corporate structures are changing.
4.The change in the demand profile of consumers • More learning and experience oriented tourists, • Changing preferences of destinations and length of stay for travels, • Demanding various tourism types, • Changing demographics like aging population, changing family size, etc
5. Political Factors: More Concern for Security and Health • Typical examples: 9/11, Bird Flue, the ongoing turmoil in the Middle East, Swine Flue etc... • Unstable political situation in many regions of the world • Some realities: tourists’ anxieties, panics, some overreactions • Some misconceptions: tourism is not that elastic
THE CHANGE IN CUSTOMER PROFILE: THE NEW TOURIST • Educated customers and a fragmented market today: so we need to be creative and innovative • what you do’ more important tha‘Experiences’ not ‘destinations’ count‘: n ‘where you do it’ • Authenticity– wildlife, food and living culture: travel-savvy visitors have higher expectations than earlier generations • More sophisticated, intelligent and educated customes“they know what they want”
Consumer Trends: The “New Tourist” • Experienced and independent • “do it yourself” travel bookings, destination research • More interested in • Trying new experiences, new tastes, new life styles, new people • Likes to connect with others • Likes to live in a different culture than his or hers • Technology and learning oriented • Looking for best price/quality ratio in tourism products & value for money
Consumer Trends: The “New Tourist” • More active: prefers multi-activities and willing to learn from other cultures • Increasingly nature freindly and socially sensitive • Wants deeper appreciation of destinations visited • Has various preferences for various lengtht of vacations, demands different tourism types, etc.
Different Sub Groups of Length of Stay Preferences The industry has become more responsive to customers’ demand for flexibility: • Choice of shorter breaks • More ‘serial holidaymakers’ (multiple breaks) • Long holidays taken in career breaks • More firms adopting flexible working patterns
Variety of Tourism to Participate Social factors such as demographic change and trends to healthier lifestyles have encouraged: • Adventure holidays • Leisure and activity-related breaks • Extreme and risk sports holidays • Culture trips • Medical tourism, health tourism • Agritourism • Sports tourism • Medical /Health tourism
Creative Tourism Tourism which offers visitors the opportunity to develop their creative potential through active participation in courses and learning experiences which are characteristic of the holiday destination where they are undertaken
Nature Based & Sustainable Tourism • There is an increasing awareness at the level of governments of the social, economic and environmental importance of the tourism sector, and of the impacts it causes on destinations. • Globally, the responsibilities of governments in tourism development have tended to become more decentralized, with many mandates • There is an increased awareness, on the part of tourists, of the need for sustainability.
Nature Based & Sustainable Tourism • Issues gaining importance, many talks and news, beginnings of action, recession hinders change • People are interestedin sustainability but still half is not willing to pay more for nature protection • Studies show that still 47 % willing to pay higher fees yet 53 % were not
Agritourism • Agritourism, as it is defined most broadly, involves any agriculturally-based operation or activity that brings visitors to a farm or ranch. • Agritourism is a form of niche tourism that is considered a growth industry in many parts of the world, • Agritourism overlaps with geotourism, ecotourism, wine tourism and culinary tourism. • Other terms associated with agritourism are "agritainment", "value added products," "farm direct marketing", and "sustainable agriculture".
Camping Sometimes overlooked as part of the travel and tourism industry Campers travel millions of miles a year in the U.S., Canada, and Europe Statistics in dollars and numbers of campers show that camping is an enormous business Vast expenditures for RVs and camping equipment Travel for Natural Beauties
Includes traveling to attend spectator sports and/or participate in sporting activities Olympics and World cup Travel for Sports • Australian, French, and U.S. Open, and Wimbledon • Superbowl, World Series, and the Masters • Active sports (Biking, Surfing etc.)
Also includes local-level games and competitions Positive effects on local economy Concept of health through physical activities has sparked renewed interest Tremendous economic impact Every year, two out of five U.S. adults travel for sports Travel for Sports (cont’d.)
Includes (but not limited to): Off-road bike tours White water rafting African safaris and wildlife tours Rainforest canopy tours Bungee jumping Travel for Adventure
Segment is growing at a fast pace ½ U.S. adults (i.e., 98 million people), took an adventure trip in the last few years 31 million adults engaged in hard adventure activities Adventure travelers are more likely to be young, single, and employed Travel for Adventure (cont’d.)
Often referred to as pilgrimage Practicedfor hundreds of years Still fairly common today Broken downinto two categories: Satisfying one’s religious convictions Fulfilling one’s curiosity about a particular faith or practice Religious Travel