Regardless of what industry you are in, it is important to stay on top of trends so that you can continue to grow your business. If you’re in the travel industry, there are some trends that are changing the way people look at travel.
Mobile accounts for over 25% of travel industry revenue
Boris Dzhingarov from Travel Tipsor declared that using a mobile device to book travel is the latest sales channel to upend the travel industry. Mobile bookings have surpassed $2 billion in two years. And the market is expected to grow by 40% over the next five years.
The travel industry has gone to great lengths to build an online presence. In fact, eight of the largest travel sites can be accessed in a mobile incognito window.
While a mobile app can be a great tool, it is a little less surprising to learn that the most important feature on a mobile device is the location. Mobile is the ideal companion for the traveler, allowing them to continue planning their trip while on the go.
Mobile devices are now travelers’ loyal companions
Considering the recent rise in mobile penetration around the globe, it’s not surprising that travel companies are scrambling to make mobile a part of the overall customer experience. In fact, the number of Internet connected mobile devices is set to rise by 16 percent each year. A good number of travelers are using smartphones to plan, book, and purchase their travel.
While there is no universally accepted benchmark for the best mobile app, the top three players in terms of total usage each account for more than half of all app usage. Mobile e-wallets are changing how we pay for things. Near field communications are also changing the way we do business.
Digital nomads
Approximately 15.5 million digital nomads are estimated to be worldwide. They are people who work for a living while traveling. They can earn more money and enjoy greater freedom and flexibility in their work. They tend to do work that requires specialized education, such as information technology, consulting, coaching and research.
These workers are highly satisfied with their work and lifestyle. They typically choose to stay in one location for several months, and cross borders for short periods of time.
A recent study by MBO Partners found that there is a significant increase in the number of digital nomads in the U.S. and that they will grow to 15.5 million by 2021.
Sustainable travel
Considering the effects of climate change, more and more travellers are looking for greener travel options. They are also pushing tourism operators to be more accountable for their impact. This is a trend that the tourism industry can follow. They can provide more sustainable options for travellers to choose from.
In addition to being mindful of their carbon footprint, travellers can also support greener cities and towns. They can choose local restaurants, hotels and shops, and buy local souvenirs. They can also support local farmers.
Moreover, a report by Skift and Expedia showed that a majority of travelers support local businesses and economies. They are also willing to pay more for companies that benefit the local community.
Ancillary revenue is growing like crazy
Almost a decade ago, the airline industry’s ancillary revenue was only $2 billion. But now, it’s a $50 billion-plus market. It includes everything from baggage charges and seat assignments to retail and activities. And some airlines are doing a better job at turning this money into profit than others.
As airlines look for ways to boost their ancillary revenue, they are turning to digital solutions. They can leverage data to target spending across a broad range of services. They can also use partnerships to promote tailored offers.
They can also take advantage of the digital tools offered by airports. For instance, Manchester Airport Group has a digital agency based on mall operator queues.
Glamping
Millennials are a large part of the glamping demographic, and this group is also a key contributor to the overall global glamping market. As more young people become more aware of the benefits of nature, they are also becoming more willing to try new things. This can be seen in the rise of technology companies such as Warby Parker, Google and Netflix.
Young people also want to disconnect from technology, and are interested in unique experiences that can help them do just that. Glamping offers this and more, including a chance to explore the outdoors without sacrificing the comforts of home.
According to IMARC Group, the 18-32 age group is the group that is most likely to opt for glamping. This segment has the largest market share, and is expected to register the fastest growth rate.
