In 2017, travel bookings contributed$1.7 trillionto the U.S. economy. Globally, travel was worth $7 billion as of 2016. Driving travel bookings -- and increasing revenue growth -- are four main factors.
By catering to these factors, hospitality and tourism professionals can ensure continued revenue growth. Learn what's driving travel bookings, so you can tailor your service accordingly.
1. New Money
New money brings with it the capital to achieve long-held dreams, so it should be no surprise that many newly wealthy individuals are choosing international travel. When incomes rise and home economies are stable, people across the world feel free to use their capital on pleasurable experiences rather than save for an uncertain future.
Across the Asia/Pacific region, Africa, and the Middle East, newly wealthy individuals emphasize values such as living richly and enjoying new experiences. Travel fulfills these values.
2. Affordable Airfare
Ticket prices are dropping thanks to a blend of factors, from lower fuel prices, carrier competition, and a rise of low-cost airlines. While this news is unwelcome in the airline industry, which is using ancillary fees to increase profit margins, it benefits travelers who can get more from their purchasing power.
3. Corporate Travel
This year, business travel is projected to grow by over 6 percent. In China and India, the growth of business travel is particularly steep due to the relentless pace of economic growth in those countries. Industry consolidation, pressure to book directly instead of though online travel sites, and stricter cancellation policies help hotels capture a greater share of every business dollar.
4. Experiential Travel
The buzzword of recent years, experiential travel is still a major driver of tourism. Consumers in general are spending more money on dining out, travel, and recreation, and less money on material possessions. Experiential travel focuses on experiences rather than consumer goods, for instance offering travelers the chance to create once-in-a-lifetime memories through a cultural exchange or wildlife encounter.
When you keep pace with tourism trends, your hospitality business will thrive.