tourism in the future essay

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Tourism: Current and Future Trends Essay

Introduction, tourism trends, importance of understanding demographic trends, opportunities and challenges, facility management, perspective.

The modern tourism and hospitality business is significantly being influenced by demography, and it is posited that it will characterize the future of the area. Current demographic patterns will influence the demand for tourism and the choice of the workforce, which will impact how the industry operates, is structured, and how it will develop in a sustainable manner.

Furthermore, the tourism sector has to know what, why, how, and when something will occur, the repercussions, and the strategies that should be employed to exploit the benefits and play down the risks that these changes will bring. Tourism is quickly gaining a global dimension as people have a higher purchasing power, allowing them to tour cross-border destinations.

The World Travel & Tourism Council report shows that there were one billion international tourists in 2012. It also found that the global tourism and travel industry earned $2.057 trillion in direct global contribution to the gross domestic product in the same year, and it is estimated that this figure will grow to $3.0 trillion in 2022 (Fuller, 2013).

The industry has as well shown remarkable growth in the United States, as it accounted for $438.6 billion of the gross domestic product in 2012, and expectations are that it will rise to $628.5 billion in 2023.

This growth is attributed to a considerable change in customer demographics with a rising population of baby boomers and middle-class segments who can afford to travel for leisure. Moreover, statistics show that Asians form a significant proportion of travelers in modern-day tourism.

These changes have necessitated the need to study trends in tourist demographics in order to anticipate a swing in client preferences and develop products that meet these tastes. This is a discussion of current and future trends of tourist demographics and the challenges and opportunities they present to the tourism industry.

Travel and leisure patterns have changed over the years in several ways. For example, international tourism is gaining popularity as people desire to see more than what their country has to offer.

Records show that most of the guests who visit the United States are from Western Europe and Asia as shown in 2007 documentations where, 45.6% of all the arrivals were from Western Europe, while 26.9% were from Far East Asia (U.S. Department of Commerce, 2007). Furthermore, it is reported that in the same year, the average age of male leisure travelers was 42 years while that of females was 38 years.

The proportion of visitors from Western Europe and Asia was 43.2% and 26.6% respectively in 2010, which illustrates that the number of European tourists fell while that of Asians rose over the three year period. In addition, the average age of male travelers was 42 years and that of females was 37 years (U.S. Department of Commerce, 2010).

The rise in the number of Asian guests is an indicator that these countries are significantly impacting the global tourism industry as countries like China and India record a strong middle class, which is estimated to be approximately 600 million people in 2015. Experts also predict that, by 2030, the middle-class population in China will have grown by about two billion people.

Indonesia also anticipates that about 60 million people will join this group in the next couple of years (Fuller, 2013). Consequently, it is believed that there will be a higher demand for leisure travel, as the middle class is considered a strong indicator of travel intent, ability, and desire.

Additionally, analysts argue that baby boomers will form a critical component of the tourism industry, as it is projected that they will have a higher disposable income, and will be more youthful and determined to travel than their predecessors (Boksberger, Sund, & Schuckert, 2009). The above statement is explained by the fact that it is estimated that this age group will own about 60% of the nation’s wealth in the United States by 2015.

In addition, they will account for 40% of total spending in the same period and it is assumed that they will spend a substantial amount of time traveling after retirement (Deloitte, 2010).

Though boomers are likely to catapult the travel sector, the younger populace aged between 20 and 50 years is also keen on traveling albeit on cheaper budgets. Moreover, players in the business should also focus on this market because it has shown a desire to tour and are flexible to participate in a range of fun activities.

It is apparent that demographic trends in the tourism industry in the United States and globally will change extensively in the next few years. This change means that service providers must develop product offerings that appeal to the changing clientele in order to attract repeat customers.

Consequently, it will be essential to understand the cultural differences that come with these changes and efforts made to ensure that visitors feel comfortable while on vacation.

Some of these efforts include sensitizing staff to tolerate the different cultures, offering meals from different parts of the world, and employing multi-lingual tour guides. Besides that, it is essential to make sure that the leisure activities provided are suitable for the diverse market segments. Additionally, it will be vital to develop sustainable strategies that help businesses attract and retain different groups.

The current and future demographic trends of travelers present several opportunities for the hospitality industry for players who can package the products to take advantage of the expectations of the different segments. For instance, senior tourists are likely to be thrilled by cruise- related activities because they are, quiet, and are less risky.

In contrast, generation x and y may be more inclined to engage in precarious and social activities such as excursions. It is also imperative to consider the changing factors such as more holiday periods, intention to combine leisure travel with work, shorter vacations, preference for a participatory vacation and discretionary tourism, among other factors.

Secondly, younger travelers have access to information, which influences their choice of destinations and activities. They have become sophisticated clients who want value for money so they are deemed to be experience-oriented rather than destination-oriented. There is an opportunity to transform the market by offering customized holidays and providing personalized services, allowing visitors to take on a more active role during their trips.

All this information can be posted online to make it easily accessible and where possible allow for electronic booking, which has become a favorite travel option for the tech-savvy.

The shift in tourism demographics also creates prospects for forging alliances to derive synergy from each other. For instance, the middle class and affluent travelers would prefer to have an airport and hotel transfer services rather than having to arrange their own transport. Moreover, they would like tour operators to plan their itinerary and they are willing to pay a premium to avoid the inconveniences that come with self-planning for a vacation.

This new demand requires players to work together to ensure they deliver top-notch services to create delight and attract repeat business and referrals.

Unfortunately, the demographic changes have a downside. For example, the surge in baby boomer population comes with additional costs as this age group may require special treatment because of its fragile nature.

As a result, service providers with limited resources may opt to steer away from this market, and miss out on the returns that it can generate. On the other hand, a swell in the number of international visitors means that firms have to invest heavily in hiring and training multicultural staff to increase customer satisfaction. Lastly, there may be a need to forge partnerships to derive synergy; however, it is not easy to do so with competitors.

The process of management of a hospitality facility has multiple layers and very complicated infrastructure. Like any other type of business tourist business is oriented towards the maximization of revenue potential. This is done through the representation of new branches and services to the facility and exploring the range of benefits and activities the facility can provide for the customers.

This is why the statistical knowledge of the needs of potential clients is crucial. The success of the facility management lies in the accurate monitoring of the kinds of tourists using the services of the facility and the modern cost policy.

Contemporary customers have access to the information, which influences their expectations of the quality of services distributed by the facilities; this is why training a qualified staff is an important part of the management success.

The modern world is tightly connected to the technologies and the Internet. This is why every contemporary hospitality facility has to be equipped with a powerful IT team and the best software needed to provide predictive management based on diagnostics and planning.

It is highly important to keep an eye on all the modern newly developed trends within the business and quickly adopt all the changes, because the potential customers are most likely to be interested in the most modern services, so their choices of the facilities will be based on their levels of preparation for the season and on their abilities to please even the most spoiled customers.

There are various types of people traveling, and they have various demands, yet the hospitality facilities have to offer certain types of services that will never stop being popular. Such services are good, comfortable and clean accommodations, diverse and fresh meals, and a broad range of beverages. These are the aspects of the facility management that need the most of attention.

The tourism and hospitality sector is growing at a remarkable rate locally and globally. Analysts attribute this growth to demographic changes such as a strong global middle class, a rise in the number of senior tourists, and a rise in the number of international travelers. This shift means that the sector needs to understand current patterns, anticipate future trends, and understand the opportunities and challenges that they present.

Nevertheless, the most important thing for tours and hotel operators is to formulate strategies and tactics that will grow their competitive advantage because only those that can foresee and plan for new trends will survive in the trade.

Boksberger, P., Sund, K., & Schuckert, M. (2009). Between Past, Present and Future – Implications of Socio-demographic Changes in Tourism, Trends and Issues in Global Tourism , 29-36. Web.

Deloitte. (2010). Hospitality 2015: Game Changers or Spectators ? 1-26. Web.

Fuller, E. (2013). Impact of the World’s Travel/Tourism Industry Adds Up To More Than A Walk On The Beach, Forbes . Web.

U.S Department of Commerce. (2007). Profile of Overseas Travelers to the United States: 2007 Inbound . Web.

U.S Department of Commerce. (2010). Profile of Overseas Travelers to the United States: 2010 Inbound . Web.

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Tourism: Current and Future Trends Essay

1. introduction.

This topic is a pioneering effort by the World Tourism Organization, UNWTO, aimed at focusing on the future and the likely changes in the pattern of tourism, with special attention to the issues facing the future of tourism in the world of tomorrow. Of particular interest are those changes in the world which are expected to have an impact on tourism and those issues and trends which are expected to be most significant in the tourism of the future. This work is innovative in that it faces issues which have received little attention in tourism literature, perhaps because they are difficult to research, or because they require a multidisciplinary approach to the study of tourism. Changes in the world and issues in tourism are treated as they are related, in order to push toward a holistic approach to the study and understanding of the future of tourism. Such an approach, it is hoped, will yield a more profound understanding of the future and more useful insights and advice for those who must meet the challenges of the future. A holistic approach also requires that trends in the world and issues in specific parts of the world, particularly the less developed countries which have a dependence on tourism, must be given equal attention. This work is global in scope and emphasis, and an attempt is made to consider issues and trends relevant to all parts of the world. Given that tourism is an industry based on the movement of people, it is also an international and global phenomenon, and it should be studied and understood in that light. This is not to suggest that all trends and issues in tourism are relevant to all parts of the world, and variations and contrasts are noted throughout the work. Meanings and predictions are clear qualifications of general trends and tendencies.

2. Current Trends in Tourism

Sustainable Tourism Tourism carries an important role in the development of a country or region. It is an alternative way to boost the economy and create a lot of jobs for local people. With good management, tourism can be a development agent. However, it can also lead to disasters. The number of tourists who come and go and the development of tourism facilities can potentially damage the natural and cultural environment. That's why there is an idea to merge conservation with travel and tourism, called sustainable tourism. Sustainable tourism is tourism that takes full account of its current and future economic, social, and environmental impacts, addressing the needs of visitors, the industry, the environment, and host communities. This idea emerges as the realization of the future of tourism, which is maintaining competitiveness in the global market while moving towards sustainable development. Sustainable tourism is important and should be practiced by all people involved in it. The government should be the starter by providing good policies and rules with strict sanctions for those who break them. The society, tourism practitioners, and tourists themselves also play an important role in the success of sustainable tourism. In sustainable tourism, it is expected that tourists can respect the local culture and the environment, and increase local economic welfare. As a form of tourism that is responsible for the environment, there are several things that need to be considered. The use of energy should be reduced as much as possible, and renewable biomass energy can be used. Water usage should be efficient and minimize local water resource depletion. Tourism activities should minimize damage to the local physical environment and maintain biological diversity in the ecosystem. The conservation of natural and cultural resources becomes the main focus for sustainable tourism, with the hope of providing satisfaction for tourists and maintaining the future of tourism itself.

2.1. Sustainable Tourism

Sustainable tourism concepts aim to reduce adverse environmental impact through activities, such as the use of environment-friendly products and respecting local cultures. It leads to the management of all resources in such a way that economic, social, and aesthetic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, biological diversity, and life support systems. This leads to a minimization of waste and efficient use of resources like energy, water, and even office supplies. High staff participation, speed of implementation, and creativity are also crucial in achieving these goals. This generation of tourism is based on the sustainability concept. It tries to meet the needs of tourists, the industry, the environment, and host communities. Now and in the future, it is expected that tourism will grow, and the number of tourists and destinations will increase, thus globalizing the consumption of tourism products and resources. Markets will become more competitive and more demanding. Emerging destinations are a probable staging, and there will be a need to diversify the types of tourism products in these locations. Tourism can bring many economic and social benefits, particularly in rural areas and developing countries, but this is often at the cost of cultural and environmental degradation. In these destinations, the need for sustainability in tourism development is particularly acute. It is suggested that a sustainable approach is the only option for the future.

2.2. Digitalization in Tourism

Digitalization has had an enormous impact on travel, tourism, and hospitality. It has not only introduced new forms of communication between consumers and suppliers but also provided easier and more affordable alternatives. Digitalization has also changed the way information is stored and led to better means of utilizing this information for business purposes. The internet has had the biggest impact on the travel and tourism industry. It has allowed for a greater distribution of information to a global audience. Potential travelers can now seek information on destinations from around the world without fees or time constraints. The internet provides a 24/7 information source and a booking facility without the need for human intervention. Research has shown that consumers now prefer to gather information and make reservations online as opposed to using more traditional methods such as travel agents or brochures. This has forced many companies to close their high street operations and concentrate on delivering their products via the internet. As a result, the traditional distribution channel of tour operators and travel agents has begun to evolve into a more complex, interconnected environment. The online environment has quickly become competitive, and as a result, many companies are now dependent on methods such as search engines and promotions to drive traffic to their website. This has led to the creation of a new, fragmented travel and tourism industry. E-tourism has not only affected how consumers approach tourism but has also presented business opportunities and brought about industry challenges. The differences between electronic commerce and traditional commerce (table 1) illustrate how online transactions can offer several advantages to both consumers and suppliers. Through e-commerce, consumers now have the ability to customize and experience a greater range of products and services. Simulation and virtual reality can give the traveler a better feel for a product, and proper utilization of databases can match products to consumer preferences. Online transactions remove time constraints and have the potential to save the consumer money through greater comparison shopping. This new form of commerce has made businesses less dependent on location and opened doors for smaller firms that may not have survived in a traditional environment. Digitalization has essentially forced an electronic integration of various tourism industry sectors. The interaction between computers means information is now much more easily transferred between sectors and can be stored in central databases. This has created new means of coordinating and packaging tourism products.

2.3. Rise of Adventure Tourism

Hence, in terms of understanding the long run of adventure tourism, it can be seen to maintain continuous growth in market share. As mentioned by Tucker and Hovden, adventure tourism can be divided into two major types. The first being "hard" adventure involving activities such as rock climbing and caving. This market segment appeals to a limited demographic of participants and is still considered a niche market. Alternatively, there is the "soft" adventure market which has much broader appeal involving activities such as cultural and ecological tourism, including activities like bird watching and camping. It is the "soft" adventure market which has shown significant growth in market share compared with traditional tour packages. This growth can be expected to continue as consumers become increasingly more fitness and health-oriented, thus having more disposable income to spend on adventure travel in retirement from the workforce. The opportunity for the travel industry to capture the elder years market segment has and will continue to progressively shift tour package resources towards the development and marketing of adventure tourism-based products. Sustained levels of tourism in the remote and natural-based areas of the world are dependent upon achieving a balance between economic and environmental interests. Adventure travel often takes place in locations that are multi-use in nature, where the local communities are fishing, farming, logging, and mining. Such activities put a strain on the environment and often result in increased tourism development in the area. While this development can generate significant revenue, the goal is to keep it at sustainable levels while minimizing the impact on the natural environment. High-impact tourism such as alpine skiing can cause deforestation, habitat destruction, and soil erosion. Measures can and are being undertaken to ensure that such environmental degradation is either avoided or the adverse impacts are minimized. For example, Tucker and Hovden outline the efforts of the United States Forest Service and Vail Associates Inc. in formulating a set of best practice guidelines for environmental assessments and planning in ski area development. The next generation of adventure tourism will depend upon the preservation and utilization of natural resources, taking only what can be replenished, thus ensuring long-term availability for future generations. This can be likened to the economic concept of sustainable development, whereby resource use aims to satisfy human needs both present and future.

3. Future Trends in Tourism

The future of tourism is irrevocably connected to technology as it serves as the medium for the realization of trends still at their infancy. Virtual Reality tourism might not be considered a separate niche in 2016, however its potential to transform tourism is so great that it is sure to become one. By allowing people to map out entire holidays from the comfort of their own home, Virtual Reality has the power to greatly diminish the need for physical tourism. Imagine the implications on both travel and all other industries connected to tourism if people can have an entire holiday experience without leaving the country? The travelling process itself may become the minority of tourism as the attractions of foreign countries are re-created through Virtual Reality. Conversely, Virtual Reality might simply change the way we experience other cultures, which might be a positive for race relations on an international scale. An example is given by an Australian Virtual Reality company who are attempting to digitally re-create Kakadu National Park for tourists to explore before they embark on the real-life experience. Measures are being taken to preserve the Park's Aboriginal heritage and it is hoped that through experiencing the digital version, tourists will have a greater understanding and appreciation of the real thing. Virtual Reality might also solve some of the problems associated with mass tourism. Wellness Tourism is sure to grow as we are continuously presented with new ways to achieve better health. The idea of escaping from the hustle and bustle of daily life is something most people would appreciate, and the rising levels of stress and lifestyle-related disease in western countries suggest that there will be a strong market for tourism centered on improving health. Already, an aging population is increasing demand for all types of medical services, and thus Medical Tourism is destined to become a major industry in the future. Factors such as reduced cost and shorter waiting times for medical procedures make developing countries an attractive destination for medical tourists, and this is unlikely to have detrimental effects on those countries' local tourism industries. Some might say that the concept of Cultural Tourism is one which has been lost to the whirlwind of globalization. The world is becoming a smaller place, and many distinct cultures are vanishing in the melting pot of western consumer culture. However, it is this very thing that will drive a revival in Cultural Tourism. As the effects of globalization spread to the furthest reaches of the earth, so too do homogenized brands of consumer culture, and thus cultural dislocation has become an issue even in places that were previously untouched by the modern world. Nostalgia will be a powerful motive for people of all ages and cultures to seek out remnants of the past in a rapidly changing world. On a positive note, an increased awareness of cultural heritage and identity might serve to preserve and revive many aspects of culture which have been lost in the rapid modernization of the 20th century. This too will provide future generations with a rich tapestry of cultural diversity to explore through tourism.

3.1. Virtual Reality in Tourism

Virtual Reality (VR) in Tourism. Virtual reality (VR) is one of the emerging trends within the tourism and hospitality industry. VR can be defined as an interactive computer-generated experience taking place within a simulated environment. This simulated environment can vary from a recreation of the real world to an imaginary world. This is a major shift for the tourism industry as a product is no longer just a service, it is an experience of anywhere in the world that can be achieved without leaving a room. Virtual reality can be applied across the industry in many ways such as marketing, pre-trip familiarization, and destination marketing. VR has the potential to revolutionize many aspects of the travel lifecycle before a traveler even leaves for their trip. There are many ways in which VR can be implemented in the marketing stage, a simple Google Cardboard for example, can be received by booking a trip which can then allow the traveler to engage with a variety of travel experiences. A rental can connect and load immersive street views, an airline can offer a sneak peek to a traveler's possible upgrade by showing the luxurious amenities at the higher class, to just name a few. Another example is that a hotel can showcase its property through a fully navigable "virtual walkthrough" allowing the potential guest to explore and learn about the property without actually visiting it. This gives the consumer a much more enriched understanding of the product than looking at pictures would, as well as being much more cost-effective for the property and the guest, as the consumer can determine if they like the experience they saw without investing the time and money for a visit.

3.2. Wellness and Medical Tourism

Defined as the activity undertaken during one’s involuntary staying in the environment away from home, there are various reasons for travel, and correspondingly, an ever-expanding tourism product that has continued to meet and create new types of demand. In a similar sense, Greenwood defines wellness as "the active process of becoming aware of and making choices toward a more successful existence". It can be said that today's societies are ever increasing in the value placed on the ability to take an active role in the betterment of one’s own health and life quality. Specifically seen in the developed nations of the world, health care is an ever increasing concern, as the strains of modern working life, and environmental and food pollution take their toll in the form of chronic lifestyle diseases. High tech medicine has never been more advanced, yet correspondingly, patients in the modern age have not been so disillusioned with the impersonal and often ineffective treatments provided for chronic diseases. In effect, those in higher income brackets are seeking a way to escape their own stressful lifestyles and the ineffective environment of current medical solutions, by combining vacation travel with the enhancement of their physical and mental well-being. This synergy of health and travel has given rise to the concept of wellness tourism, and the associated preventative medical and complementary alternative medicine (CAM) industry.

3.3. Cultural Tourism Revival

At the same time as the growth in the quantity of travelers from essentially all international locations, there has been a switch from traveler to tourist. Tourist is living spending a prime quantity of the year in the location visited. They take into paintings and buy or rent a holiday home. This trade is partially attributed to developments in delivery. The time involved in touring to many in the beginning some distance away places is however quick leaving more time for the vacation sports. High-speed intercontinental jets have made travel regarding "departing" day later inside the days of route in the house of early vacationer jet so have an effect on the time required to get to a vacation spot and increasing the duration of the vacation in phrases of days at the destination stay. The greater regular, commodious and less expensive but relative "heading off the beaten track" or "alongside trade routes" of today has befallen around the continuing development in widespread roads and motor automobiles. A huge purchase of a giant vacation occurs in Europe above all to excellent in countries with the European traveler particularly these from across the channel. This has caused vast trade all through parts of Europe previously visited by way of best a few foreigners or largely by using other national corporations of Europeans. Step by step members from prosperous nations with an increasing amount of proper too significantly free time and looking for a trade from mass tourism have moved similarly afield in Europe to North excellent and the Mediterranean and to different nations in regions consisting of Asia, Latin America, and Africa. Step with the globalization of the prosperous traveler segments there has been a growing quantity of trips to a much broader and extra various listings of destinations.

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Trends of Modern Tourism Industry

Understanding modern tourism industry.

Within a fast-growing, technology-based society, the majority of leading industries aim to keep up with the latest changes to achieve stable progress. Tourism is generally considered one of the most prosperous business domains, which faced critical challenges over the past year. The dramatic spread of COVID-19 has shaped a new way of building tourism and its underlying structure and made it a fragile industry until nowadays. In this research, tourism will be examined in the context of current trends affecting the industry, characteristics of tourist destinations, and evaluation of these aspects on the international level and their impact on one another.

The Current Trends Affecting National and International Tourist Destinations

The tourism industry and trends shaping its contemporary image in terms of a global business scene are primarily influenced by a wide range of factors, which are external to tourism and beyond its regulation. More specifically, the impact of tourism can be examined in association with various resources and environments consumed by the industry itself (Fig. 1). The most recent tourism and hospitality trends encompass e-tourism, new management approaches, and new supply and demand elements, including low-cost airlines and growth in independent travel (Page and Connell, 2020). The current trends in the travel sector should be regarded according to the division of the urban, rural, coastal, and resort tourism fields, as well as the hospitality industry in the least developing countries. This significantly affects the different types of tourist destinations and how it affects the national economies worldwide.

The Analysis of the Main Tourist Destinations of the World

The main tourist destinations are primarily shaped by the patterns of global investment flows, which create the universal forms of travel and tourism production, including hotel chains and integrated hospitality enterprises. However, the dynamic flow of traveling currently extends to all parts of the globe, thus, intensifies activity at particular locations. According to Page and Connell (2020), such an international investment movement defined the leading role of the world tourism destinations, such as “London, Paris, New York, and Rome” (p. 17). Moreover, these cities own global control over capital flows. In the same way, travel activity is reinforcing within three central regions that govern international patterns, including Europe, North America, and East Asia-Pacific.

From the quantitative perspective, the top ten tourist destinations include France, Spain, the United States, China, Italy, Turkey, Mexico, Thailand, Germany, and the United Kingdom, ranging from 83.5 million to 39.4 million tourist arrivals accordingly. Based on the income generation, the most popular travel locations imply the following order: United States, Spain, France, Thailand, United Kingdom, Italy, Australia, Germany, Japan, and China (CITE). Most importantly, the latter ratio is developed in relation to the percentage of GDP (Gross Domestic Product), impacting the economic growth of the countries. The highest increase in GDP is traced in Thailand (12.6 %) and Spain (5.2 %) (CITE). Nonetheless, the United States obtains the highest total tourism income with over 210 billion $ annually.

The Assessment of the Current Trends Affecting Tourist Destinations

Currents trends affecting pivotal tourist destinations are mainly based on the globalization process. Such a critical process has the power to connect the diversified cultures on the international level, emphasizing inequities and the gap between the developed and developing nations. Therefore, these two major global destinations are based on cultural contact and the international capital, utilizing tourism destinations. It is important to consider that local communities and resource endowments are built to profit from the tourism activity. However, compared to the global leaders in hospitality, the less developed destinations face the reinforced inequalities. In addition, the spread of the world pandemic severely restricted the opportunities of the current tourism industry and altered the modern trends, which significantly impact the future of the travel domain.

The main current tourism trends include leisure travel, increased automation service, mobile bookings, personalization, sustainability and eco-travel, transformation, experience and solo journey, and safety and hygiene approach to travel. Moreover, the modern tendencies affecting tourist destinations encompass both travelers and market trends. According to Kozak and Baloglu (2012), the first aspect refers to more educated tourists, enhanced personal mobility, attitude towards cultural diversity, demand for individualized experience, and technology-oriented customers. The second aspect incorporates increased tourism marketing responsibility, emphasis on disaster and crisis planning, higher-speed transportation, and tourism diversification.

The Analysis of the Future Trends in Tourist Destinations

The number of tourists within the modern travel industry represents only one of the several determining features of the future of a changing tourism landscape. Ryan (2018) states that tourist trade today entails “a virtual space” that defines current perceptions and expectations regarding tourist destinations (p. 197). Also, such a space guides the consumers to particular locations and disseminates the appraisals regardless of more conventional modes of promotion, given the industry’s perspective. Therefore, the current potential of virtual and extended reality in the near future shapes one of the future trends in tourist destinations, including the use of advanced technologies and artificial intelligence. Such a tech-savvy approach will considerably continue to define the essential practices and behaviors in the travel sector.

Despite the external factors influencing the tourism industry, which are beyond one’s control, several tourism-related factors affect the future trends in this sector. Such a system serves as a groundwork for two underlying considerations, including exogenous factors and those within the control and factors outside the management (Fig. 3). As claimed in the table below, the future trends in travel and hospitality are based on critical societal and political changes, as well as safety and global security. Future trends also embrace the vital approaches towards combatting global environmental issues, including climate change and health challenges, such as the COVID-19 pandemic (Fig. 4). Most importantly, tourist destinations must develop environmentally-friendly policies to preserve their competitive advantage on a high level within a future marketplace.

The Characteristics of Tourist Destinations and the Relationship to their Appeal

The market appeal of tourist destinations can be examined at a geographic level, wherein they can attract visitors at a local market, regionally, nationally, or even internationally. Some of the main attractions appeal to a particular group of tourists based on the demographic level (Page and Connell, 2020). For instance, Disneyland is a global tourist destination point; however, it is more oriented to younger families with children and sometimes older people. At the same time, Universal Studios is a movie-targeted place attracting universal age groups. Apart from providing appeal in a particular destination, tourist attractions serve as the focal points for increased consumer activity and money spending. It is specifically important when the tourism forms are part of the comprehensive development strategy or area restoration approach. As a result, the salient characteristics of the tourist destinations reinforce the place’s appeal to the visitors and, thus, eliminates poverty in a particular region.

The Cultural, Social, and Physical Characteristics of Tourist Destinations

The European and worldwide tourist destinations remain the leading actors in the travel sector with a new tourist attraction introduced annually, obtaining a strong, appealing factor. Moreover, it is a general approach to advertising key tourist destinations via social media networks. Some of the most advertised destinations over the past years include “Turkey, Brazil, China, and India” (Chin, Lo, Razak, Pasbakhsh, and Mohamad, 2020, p. 3). When evaluating how the characteristics of a leading tourist destination affect its appeal, several factors need to be considered. In general, tourists select one destination over another for a particular reason based on cultural appeal, the destination’s characteristics and attractions, and the ability to access the area. Chin et al. (2020) highlight the key features that affect the appeal of the tourist destination, including “infant mortality, life expectancy, level of poverty, and migration from rural to urban” (p. 10). With this said, the destination appeals and tourism infrastructure represent a physical product as they both are capable of providing physical satisfaction to the area’s visitors.

It is important to note that the concept of destination appeal has faced an increased interest in rural tourism in the modern travel industry. The reason for such transformation is that it can facilitate the destination’s attractiveness and engage more tourist visits. The destination appeals are commonly associated with the people (social factor), food, history, and culture (cultural factor), as well as climatic conditions, landscape features, and tourism-related activities (physical factor) (Chin et al., 2020). Such factors comprising natural resources, cultural heritage, and outdoor activities play a leading role in defining the influence on the appealing aspects to captivate increased level of visitors to tourist destinations.

The cultural factors impacting tourist attractions’ appeal include local religion and beliefs, food and drink, art heritage, historical sites, language, and main cultural events. Altogether, they represent the cultural richness of the region and define the choices of tourists’ appeal. For instance, the United Kingdom, France, and Spain are known for their abundant ethnic foundation; thereby, they attract visitors with the help of museums, libraries, historical monuments, and cultural events to reinforce the cultural inheritance of the destinations (Page and Connell, 2020). According to Joshi, Poudyal, and Larson (2016), it is essential to preserve such cultural resources within the unique natural environment, specifically among exotic cultures, to maintain authenticity and appeal to tourist destinations.

The social characteristics of the travel destinations and places involve the core social culture customs and safety measures of the country, city, or a small rural destination, unique for each tourist attraction. The physical factors comprise climate, natural environment, and ecology that serve the visitors’ preferences and tastes during travel (Page and Connell, 2020). The physical beauty of the tourist destination implies the collection of its cities, natural green and water resources, and rural sites. Concerning the effect of such characteristics on the tourist destination appeal, each country presents its leading position in the particular sector. For example, the United Kingdom is significantly impacted by its cultural characteristics due to the prevailing culture and tradition in this region that attract tourists worldwide.

Instead, France is led by its physical characteristics, namely geographical factors, such as islands, rivers, mountains, flatbeds, and forests. More specifically, Alps Mountain is a unique tourist destination with an increased appeal annually (Page and Connell, 2020). Spain, in turn, attracts its visitors through social features, including national and religious social groups. However, some characteristics might also have an opposite effect, including countries with the enhanced level of terrorism, violence, crime, and unreliable local law enforcement, undermining tourists’ safety and health. In addition, the over-commercialized tourist destinations can cause crowded spaces and rapid increase and abundance of the urban infrastructure, which has to be regulated by the authorities.

The Characteristics of Tourist Destinations and their Impact on Tourist and Tourism

According to the current research, tourist destinations obtain particular social, physical, and cultural characteristics that affect the international tourism sector differently. All the factors comprise both positive and negative impacts on the tourist attractions and, therefore, the travel domain in the specific country in general. Given that tourism is an integral part of economies in developed and developing countries, the industry contributes approximately nine percent of the global domestic product (GDP) (Joshi et al., 2016). As such, touristry became a highly competitive business and economic sector in a global arena led by globalization. Moreover, the industry is characterized by complex dynamics, meaning that it is extremely vulnerable to political, socioeconomic, and environmental change. Such aspects define the tourists’ preferences and choices of tourist destinations, impacting the tourism domain on the international level.

The Characteristics of a Developing Tourist Destination

It is essential to examine the complex characteristics of tourist destinations to understand its correlation with tourist behavior and tourism that promotes sustainable tourism development on a global level. Szromek (2019) described that tourist destinations address “various environmental and sociocultural impacts” throughout the development stage (p. 5). There is a particular set of characteristics that define certain stages of development of a tourist area. Such features are united into major groups, including “destination characteristics, marketing response, economic impact, social impact, and environmental impact” (Szromek, 2019, p. 5). More specifically, the developing tourist attractions are currently characterized by the rapid advancement in modern technologies. Therefore, developing destinations are defined by technological infrastructure, sustainable development, universal accessibility, tourist interaction with the environment, and quality experience.

The current research also defines the particular factors impacting the international tourist numbers and their selection patterns regarding specific tourist destinations. With this said, Joshi et al. (2016) analyze the factors related to policies and governmental regulation; the socioeconomic context; business, facilities, and tourism infrastructure; and aspects of natural and cultural resources. Destination characteristics define the individual development phases of tourism, including “number of visitors, growth rate, the capacity of beds, occupancy rate, service prices, expenses per person, visitor type, brand and attractiveness” (Szromek, 2019, p. 7). The main characteristics of tourist destinations also imply international receipts, policy, environment preservation, safety and security, health and hygiene, price competitiveness, human resources and affinity, infrastructure, and natural and cultural endowments. Another critical characteristic of tourist attractions implies the relationship between national policy and international tourism receipts. The existing domestic regulations should prioritize travel and tourism to generate enhanced tourism revenue.

The Impact of a Tourist Destination’s Characteristics on its Appeal to Tourists

Tourism primarily relies upon a positive tourism experience, which requires concurrent positive outcomes from the physical, geographical, and sociocultural factors concerning tourist destination and society. Hence, the travel industry’s sustainable and robust development is maintained by the quality and delivery of service, hospitality, and the diversity and availability of choices for tourists. According to econometric studies, tourism demand is directly dependent on “tourist income, the relative price of tourism product in destination versus the country of origin, substitution effects, and the exchange rate” (Joshi et al., 2016, p. 833). Furthermore, the above-mentioned international receipts factor mainly reflects the duration of tourists’ stay and their financial input to the tourist destination. In a similar way, tourists decide to select the commodity that delivers the maximum level of utility and satisfaction compared to other available alternatives.

It can be argued that the core of tourists’ rational choices and decisions within the travel process is mainly concentrated on the highest satisfaction that the tourist destination can provide. Also, each tourist is searching for a unique travel experience according to their individual demands and tourism goals. This facilitates a variable that differs substantially from country to country. The well-developed national policies considerably impact the international image of the destination and, thus, attract an increased number of tourists and associated revenue. However, the most fundamental concern in the modern travel industry is based on the rapidly growing demand for experiences within unique natural environments or among exotic cultures. As such, the competitive side of each tourist destination is significantly affected by its capacity to provide extraordinary tourist experience, intensity, and diversity, which will continue to affect the destination’s appeal to tourists in the future.

Touristry remains the most demanded concern for modern society as it enables crucial worldwide connections and helps people discover the world. Its position in a global arena is defined by the current and future trends, the relationship between tourist destination and their appeal, and how the destination’s characteristics impact tourists and tourism in general. Summing up, tourism is a global phenomenon addressing rapid development and growth in both developed countries and newly emerging economies. The enhanced understanding of tourism demand and tourists themselves as consumers is crucial to reinforce and maintain stable progress of the industry despite the critical challenges and crises in other domains.

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The future of tourism: Bridging the labor gap, enhancing customer experience

As travel resumes and builds momentum, it’s becoming clear that tourism is resilient—there is an enduring desire to travel. Against all odds, international tourism rebounded in 2022: visitor numbers to Europe and the Middle East climbed to around 80 percent of 2019 levels, and the Americas recovered about 65 percent of prepandemic visitors 1 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. —a number made more significant because it was reached without travelers from China, which had the world’s largest outbound travel market before the pandemic. 2 “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Recovery and growth are likely to continue. According to estimates from the World Tourism Organization (UNWTO) for 2023, international tourist arrivals could reach 80 to 95 percent of prepandemic levels depending on the extent of the economic slowdown, travel recovery in Asia–Pacific, and geopolitical tensions, among other factors. 3 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. Similarly, the World Travel & Tourism Council (WTTC) forecasts that by the end of 2023, nearly half of the 185 countries in which the organization conducts research will have either recovered to prepandemic levels or be within 95 percent of full recovery. 4 “Global travel and tourism catapults into 2023 says WTTC,” World Travel & Tourism Council (WTTC), April 26, 2023.

Longer-term forecasts also point to optimism for the decade ahead. Travel and tourism GDP is predicted to grow, on average, at 5.8 percent a year between 2022 and 2032, outpacing the growth of the overall economy at an expected 2.7 percent a year. 5 Travel & Tourism economic impact 2022 , WTTC, August 2022.

So, is it all systems go for travel and tourism? Not really. The industry continues to face a prolonged and widespread labor shortage. After losing 62 million travel and tourism jobs in 2020, labor supply and demand remain out of balance. 6 “WTTC research reveals Travel & Tourism’s slow recovery is hitting jobs and growth worldwide,” World Travel & Tourism Council, October 6, 2021. Today, in the European Union, 11 percent of tourism jobs are likely to go unfilled; in the United States, that figure is 7 percent. 7 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022.

There has been an exodus of tourism staff, particularly from customer-facing roles, to other sectors, and there is no sign that the industry will be able to bring all these people back. 8 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022. Hotels, restaurants, cruises, airports, and airlines face staff shortages that can translate into operational, reputational, and financial difficulties. If unaddressed, these shortages may constrain the industry’s growth trajectory.

The current labor shortage may have its roots in factors related to the nature of work in the industry. Chronic workplace challenges, coupled with the effects of COVID-19, have culminated in an industry struggling to rebuild its workforce. Generally, tourism-related jobs are largely informal, partly due to high seasonality and weak regulation. And conditions such as excessively long working hours, low wages, a high turnover rate, and a lack of social protection tend to be most pronounced in an informal economy. Additionally, shift work, night work, and temporary or part-time employment are common in tourism.

The industry may need to revisit some fundamentals to build a far more sustainable future: either make the industry more attractive to talent (and put conditions in place to retain staff for longer periods) or improve products, services, and processes so that they complement existing staffing needs or solve existing pain points.

One solution could be to build a workforce with the mix of digital and interpersonal skills needed to keep up with travelers’ fast-changing requirements. The industry could make the most of available technology to provide customers with a digitally enhanced experience, resolve staff shortages, and improve working conditions.

Would you like to learn more about our Travel, Logistics & Infrastructure Practice ?

Complementing concierges with chatbots.

The pace of technological change has redefined customer expectations. Technology-driven services are often at customers’ fingertips, with no queues or waiting times. By contrast, the airport and airline disruption widely reported in the press over the summer of 2022 points to customers not receiving this same level of digital innovation when traveling.

Imagine the following travel experience: it’s 2035 and you start your long-awaited honeymoon to a tropical island. A virtual tour operator and a destination travel specialist booked your trip for you; you connected via videoconference to make your plans. Your itinerary was chosen with the support of generative AI , which analyzed your preferences, recommended personalized travel packages, and made real-time adjustments based on your feedback.

Before leaving home, you check in online and QR code your luggage. You travel to the airport by self-driving cab. After dropping off your luggage at the self-service counter, you pass through security and the biometric check. You access the premier lounge with the QR code on the airline’s loyalty card and help yourself to a glass of wine and a sandwich. After your flight, a prebooked, self-driving cab takes you to the resort. No need to check in—that was completed online ahead of time (including picking your room and making sure that the hotel’s virtual concierge arranged for red roses and a bottle of champagne to be delivered).

While your luggage is brought to the room by a baggage robot, your personal digital concierge presents the honeymoon itinerary with all the requested bookings. For the romantic dinner on the first night, you order your food via the restaurant app on the table and settle the bill likewise. So far, you’ve had very little human interaction. But at dinner, the sommelier chats with you in person about the wine. The next day, your sightseeing is made easier by the hotel app and digital guide—and you don’t get lost! With the aid of holographic technology, the virtual tour guide brings historical figures to life and takes your sightseeing experience to a whole new level. Then, as arranged, a local citizen meets you and takes you to their home to enjoy a local family dinner. The trip is seamless, there are no holdups or snags.

This scenario features less human interaction than a traditional trip—but it flows smoothly due to the underlying technology. The human interactions that do take place are authentic, meaningful, and add a special touch to the experience. This may be a far-fetched example, but the essence of the scenario is clear: use technology to ease typical travel pain points such as queues, misunderstandings, or misinformation, and elevate the quality of human interaction.

Travel with less human interaction may be considered a disruptive idea, as many travelers rely on and enjoy the human connection, the “service with a smile.” This will always be the case, but perhaps the time is right to think about bringing a digital experience into the mix. The industry may not need to depend exclusively on human beings to serve its customers. Perhaps the future of travel is  physical, but digitally enhanced (and with a smile!).

Digital solutions are on the rise and can help bridge the labor gap

Digital innovation is improving customer experience across multiple industries. Car-sharing apps have overcome service-counter waiting times and endless paperwork that travelers traditionally had to cope with when renting a car. The same applies to time-consuming hotel check-in, check-out, and payment processes that can annoy weary customers. These pain points can be removed. For instance, in China, the Huazhu Hotels Group installed self-check-in kiosks that enable guests to check in or out in under 30 seconds. 9 “Huazhu Group targets lifestyle market opportunities,” ChinaTravelNews, May 27, 2021.

Technology meets hospitality

In 2019, Alibaba opened its FlyZoo Hotel in Huangzhou, described as a “290-room ultra-modern boutique, where technology meets hospitality.” 1 “Chinese e-commerce giant Alibaba has a hotel run almost entirely by robots that can serve food and fetch toiletries—take a look inside,” Business Insider, October 21, 2019; “FlyZoo Hotel: The hotel of the future or just more technology hype?,” Hotel Technology News, March 2019. The hotel was the first of its kind that instead of relying on traditional check-in and key card processes, allowed guests to manage reservations and make payments entirely from a mobile app, to check-in using self-service kiosks, and enter their rooms using facial-recognition technology.

The hotel is run almost entirely by robots that serve food and fetch toiletries and other sundries as needed. Each guest room has a voice-activated smart assistant to help guests with a variety of tasks, from adjusting the temperature, lights, curtains, and the TV to playing music and answering simple questions about the hotel and surroundings.

The hotel was developed by the company’s online travel platform, Fliggy, in tandem with Alibaba’s AI Labs and Alibaba Cloud technology with the goal of “leveraging cutting-edge tech to help transform the hospitality industry, one that keeps the sector current with the digital era we’re living in,” according to the company.

Adoption of some digitally enhanced services was accelerated during the pandemic in the quest for safer, contactless solutions. During the Winter Olympics in Beijing, a restaurant designed to keep physical contact to a minimum used a track system on the ceiling to deliver meals directly from the kitchen to the table. 10 “This Beijing Winter Games restaurant uses ceiling-based tracks,” Trendhunter, January 26, 2022. Customers around the world have become familiar with restaurants using apps to display menus, take orders, and accept payment, as well as hotels using robots to deliver luggage and room service (see sidebar “Technology meets hospitality”). Similarly, theme parks, cinemas, stadiums, and concert halls are deploying digital solutions such as facial recognition to optimize entrance control. Shanghai Disneyland, for example, offers annual pass holders the option to choose facial recognition to facilitate park entry. 11 “Facial recognition park entry,” Shanghai Disney Resort website.

Automation and digitization can also free up staff from attending to repetitive functions that could be handled more efficiently via an app and instead reserve the human touch for roles where staff can add the most value. For instance, technology can help customer-facing staff to provide a more personalized service. By accessing data analytics, frontline staff can have guests’ details and preferences at their fingertips. A trainee can become an experienced concierge in a short time, with the help of technology.

Apps and in-room tech: Unused market potential

According to Skift Research calculations, total revenue generated by guest apps and in-room technology in 2019 was approximately $293 million, including proprietary apps by hotel brands as well as third-party vendors. 1 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. The relatively low market penetration rate of this kind of tech points to around $2.4 billion in untapped revenue potential (exhibit).

Even though guest-facing technology is available—the kind that can facilitate contactless interactions and offer travelers convenience and personalized service—the industry is only beginning to explore its potential. A report by Skift Research shows that the hotel industry, in particular, has not tapped into tech’s potential. Only 11 percent of hotels and 25 percent of hotel rooms worldwide are supported by a hotel app or use in-room technology, and only 3 percent of hotels offer keyless entry. 12 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. Of the five types of technology examined (guest apps and in-room tech; virtual concierge; guest messaging and chatbots; digital check-in and kiosks; and keyless entry), all have relatively low market-penetration rates (see sidebar “Apps and in-room tech: Unused market potential”).

While apps, digitization, and new technology may be the answer to offering better customer experience, there is also the possibility that tourism may face competition from technological advances, particularly virtual experiences. Museums, attractions, and historical sites can be made interactive and, in some cases, more lifelike, through AR/VR technology that can enhance the physical travel experience by reconstructing historical places or events.

Up until now, tourism, arguably, was one of a few sectors that could not easily be replaced by tech. It was not possible to replicate the physical experience of traveling to another place. With the emerging metaverse , this might change. Travelers could potentially enjoy an event or experience from their sofa without any logistical snags, and without the commitment to traveling to another country for any length of time. For example, Google offers virtual tours of the Pyramids of Meroë in Sudan via an immersive online experience available in a range of languages. 13 Mariam Khaled Dabboussi, “Step into the Meroë pyramids with Google,” Google, May 17, 2022. And a crypto banking group, The BCB Group, has created a metaverse city that includes representations of some of the most visited destinations in the world, such as the Great Wall of China and the Statue of Liberty. According to BCB, the total cost of flights, transfers, and entry for all these landmarks would come to $7,600—while a virtual trip would cost just over $2. 14 “What impact can the Metaverse have on the travel industry?,” Middle East Economy, July 29, 2022.

The metaverse holds potential for business travel, too—the meeting, incentives, conferences, and exhibitions (MICE) sector in particular. Participants could take part in activities in the same immersive space while connecting from anywhere, dramatically reducing travel, venue, catering, and other costs. 15 “ Tourism in the metaverse: Can travel go virtual? ,” McKinsey, May 4, 2023.

The allure and convenience of such digital experiences make offering seamless, customer-centric travel and tourism in the real world all the more pressing.

Three innovations to solve hotel staffing shortages

Is the future contactless.

Given the advances in technology, and the many digital innovations and applications that already exist, there is potential for businesses across the travel and tourism spectrum to cope with labor shortages while improving customer experience. Process automation and digitization can also add to process efficiency. Taken together, a combination of outsourcing, remote work, and digital solutions can help to retain existing staff and reduce dependency on roles that employers are struggling to fill (exhibit).

Depending on the customer service approach and direct contact need, we estimate that the travel and tourism industry would be able to cope with a structural labor shortage of around 10 to 15 percent in the long run by operating more flexibly and increasing digital and automated efficiency—while offering the remaining staff an improved total work package.

Outsourcing and remote work could also help resolve the labor shortage

While COVID-19 pushed organizations in a wide variety of sectors to embrace remote work, there are many hospitality roles that rely on direct physical services that cannot be performed remotely, such as laundry, cleaning, maintenance, and facility management. If faced with staff shortages, these roles could be outsourced to third-party professional service providers, and existing staff could be reskilled to take up new positions.

In McKinsey’s experience, the total service cost of this type of work in a typical hotel can make up 10 percent of total operating costs. Most often, these roles are not guest facing. A professional and digital-based solution might become an integrated part of a third-party service for hotels looking to outsource this type of work.

One of the lessons learned in the aftermath of COVID-19 is that many tourism employees moved to similar positions in other sectors because they were disillusioned by working conditions in the industry . Specialist multisector companies have been able to shuffle their staff away from tourism to other sectors that offer steady employment or more regular working hours compared with the long hours and seasonal nature of work in tourism.

The remaining travel and tourism staff may be looking for more flexibility or the option to work from home. This can be an effective solution for retaining employees. For example, a travel agent with specific destination expertise could work from home or be consulted on an needs basis.

In instances where remote work or outsourcing is not viable, there are other solutions that the hospitality industry can explore to improve operational effectiveness as well as employee satisfaction. A more agile staffing model  can better match available labor with peaks and troughs in daily, or even hourly, demand. This could involve combining similar roles or cross-training staff so that they can switch roles. Redesigned roles could potentially improve employee satisfaction by empowering staff to explore new career paths within the hotel’s operations. Combined roles build skills across disciplines—for example, supporting a housekeeper to train and become proficient in other maintenance areas, or a front-desk associate to build managerial skills.

Where management or ownership is shared across properties, roles could be staffed to cover a network of sites, rather than individual hotels. By applying a combination of these approaches, hotels could reduce the number of staff hours needed to keep operations running at the same standard. 16 “ Three innovations to solve hotel staffing shortages ,” McKinsey, April 3, 2023.

Taken together, operational adjustments combined with greater use of technology could provide the tourism industry with a way of overcoming staffing challenges and giving customers the seamless digitally enhanced experiences they expect in other aspects of daily life.

In an industry facing a labor shortage, there are opportunities for tech innovations that can help travel and tourism businesses do more with less, while ensuring that remaining staff are engaged and motivated to stay in the industry. For travelers, this could mean fewer friendly faces, but more meaningful experiences and interactions.

Urs Binggeli is a senior expert in McKinsey’s Zurich office, Zi Chen is a capabilities and insights specialist in the Shanghai office, Steffen Köpke is a capabilities and insights expert in the Düsseldorf office, and Jackey Yu is a partner in the Hong Kong office.

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