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Heading Futures
Fáilte Ireland Futures
Key Tourism & Travel Trends
Orla Canavan
for Dublin Breakfast Briefing
Flat Screen TVs
Video Conference
Technology
Biometric
Identification
3D
Holographic
Displays
Drones
Agenda
Context – Why are trends important
Contextual Trends
Global Growth in Tourism
Ageing & Ageless Society
Generations – Millennials and Gen Z
Globalisation
Behavioural Trends
Experience society
Mobile living
Networked Society & Culture of recognition
No one wants to be these guys……
Context – More Consumer Focus
Consumer Research highlighted Ireland as a
destination was not best in class in terms of
iconic experiences
Perceived as one region’ by many visitors
Wild Atlantic Way
2,500 km route along the
Atlantic coast, from Malin Head
to Kinsale.
Dublin
Deliver on Dublin's potential –
from party perception to dialling
up the coast, mountains and
outdoor opportunities
Ireland’s Ancient East
Discovery of 5,000 years of
Europe’s diverse & ancient
history, older than the Pyramids
and set in a natural lush green
landscape
Global Segmentation Model
Priority Segments
Social Energiser Busy
Looking for excitement
New experiences and fun
Social holiday somewhere different
At the ‘in’ places to shop, cool places to eat, best sightseeing opportunities
Stay close to the action
Culturally Curious Culture
Independent 'active sightseers'
Broaden their mind
Explore landscapes, history and culture
Immerse in local experiences
Stay somewhere there’s lot to see
Great Escapers Together
Take ‘time out’
Spend quality time with loved ones
Enjoy experiences / activities off the beaten track
City Brand Imagery: League table
Breakdown of Brand imagery score: Dublin
Rationale for Future Looking
Capture market opportunities
Basis for innovation process
Better decision making for strategic management
Everett Rogers 1962
By focusing on Innovators and Early
Adopters, it’s possible to anticipate Early
Majority and Late Majority tastes
Consider………
Trend content is everywhere - How can we apply the trend to travel, tourism and hospitality industry?
What competitive advantage is to be gained
Local context is important, but aspiration is global
Consumer don’t live inside industry silos. Neither should we
TRENDS
What is a Trend?
A trend is an empirically observable movement
or tendency within prevailing socio-economic
conditions which results in a (potentially
sustainable) alteration of expectation, decision
or behaviour on the part of a significant number
of citizens and/or institutions
“
”
Subtitles….
“empirically observable
“within prevailing socio-economic
conditions”
“a (potentially sustainable)
alteration“
“alteration of expectation, decision
or behaviour”
“a significant number of citizens
and/or institutions”
Is quantitatively
proven
Makes sense in
context of other trends
or drivers
has longevity
It defines a consumer
need, attitude,
behaviour
Prominent within the
population OR has
upward trajectory
Wave Lengths of Change
Contextual Drivers
Established Trends
Emerging Trends
Fads & Fashions TRENDY
INSPIRING
SHAPING
STRUCTURING
Growth in Tourism 1
Aged & Ageless Society 2
Millions of Millennials 3
Globalisation 4
TRENDING
CONTEXTUAL TRENDS INFLUENCING TRAVEL
19
GLOBAL GROWTH IN TOURISM
1.1 billion* tourists travelled abroad in 2014 – an increase of 4.7% on previous year
INTERNATIONAL TOURIST ARRIVALS
At this pace international tourism is set to double from 1 billion - 2 billion
between 2013 and 2035
* UNWTO World Tourism Barometer
INTERNATIONAL TOURIST ARRIVALS
HOW DOES THE FUTURE LOOK?
UNWTO predict that emerging economies will welcome more international tourists than advanced economies by 2020
Already, developing countries account for more than 40% of all international tourist arrivals and spending
China has consolidated its position as the number one tourism source market in the world, with more than 100 million travellers
Approximately 2/3 of Chinese travellers prefer to travel independently, up 5% over 2013
27% of Chinese tourists abroad spend more on shopping when travelling than on anything else
Source: World Bank, OECD; Główny Urząd Statystyczny
AGEING POPULATIONS
Rising incomes combine with stronger healthcare cultures to produce rising life expectancy in many parts of the world.
As mortality declines so does fertility, so the proportion of over-65s increases almost universally – big impact on family structure
This older generation is different, much more
Consumerist
Leisure Focused
Affluent
Estimations that people over 60 hold more than 50% of the wealth in Developed Countries, with emerging countries following suit
2009-2011 – 325% increase in multi-generational holidays
• World population of 65+ will rise from 600 million in 2015 to more than 1 billion by 2030
• 17% of Europe’s population is now 65+, 10% in North America and 7% in Asia.
• Implications for accommodation, as families
are likely to go away with more adults
(including grandparents) and fewer children
I N D I C AT O R S
1.8bn of 7bn people worldwide belong to millennial generation (18-34)
Millennials’ prioritise experiences over other purchases, their travel spending often outpaces spending on other items.
98% Millennials own and use a smartphone on a daily basis
75% post at least once a day on Social Networks while travelling
18% of Millennials are already mobile only
By 2020, this market will be taking 47% more international trips than in 2013, with many young travellers looking for:
Unique and authentic experiences
Companies that listen to their feedback
Opportunities to learn something new
Word of mouth recommendations
FACTORING IN AGE
I N D I C AT O R S
Children Connect Everything – Gen Z
Source: 10 Hot Consumer Trends 2015 – Ericsson ConsumerLab
Post Demographic Imperatives
Source: IMF, UN DESA, US Dept of Commerce
Source: Greg Richards, 2014
Source: Resonance Portrait of US International Traveler Report 2015
GLOBALISATION
National borders are progressively erased
World is a giant bazaar & consumers can enjoy massively expanded choice and are constantly invited to be adventurous (in what they eat, how they dress, where they travel, how they entertain themselves...)
Big brands try to standardise consumer behaviour in their favour
While behaviour may align, requirements for new, authentic and non-homogenous experiences increases
I N D I C AT O R S
• Traditional cultural tourism is centred on
built heritage, but there is a growing
interest in ‘intangible heritage’ – popular
culture, traditions and storytelling
• Cities with ‘creative class’ population and
culture attract traveller from developed
markets, where built heritage continues
to resonate with emerging markets
• 27% of US international travellers are
‘Sophisticated Explorers’ for whom
‘Exploring new culture & their traditions
while on vacation’ is the #1 vacation
motivation
• Higher level of interest in active/creative
cultural participation rather than passive
observation
Global Tourism - Authentic experiences valued on holiday
0%
20%
40%
60%
80%
100%
Au
str
alia
Ca
na
da
US
AS
ou
th K
ore
a
GB
Fin
lan
dIr
ela
nd
Ne
the
rla
nd
sS
we
de
nD
enm
ark
Fra
nce
Ge
rma
ny
Ita
lyS
pa
inC
zech
Re
pH
ungary
Po
land
Tu
rke
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sia
Ch
ina
South
Afr
ica
Ind
iaM
exic
oR
ussia
Bra
zil
2014 (Adjusted) 2014 (Reported)
Source (chart and top box) : nVision Research │ Base: 1000-5000 online respondents per country aged 16-64 (Indonesia, Mexico & S. Africa 16-54), 2014
Source (lower box): UNWTO World Tourism Barometer/nVision, 2014
The World Heritage Centre, UNESCO/nVision, 2014
Over three-quarters of respondents agree that, when planning a trip abroad, they carry out
extensive research about their intended destination. Much of which is driven by the desire
to find authentic, status-enhancing experiences when on holiday - a common concern for
travellers worldwide.
“How strongly do you agree or disagree? I am interested in
visiting sites associated with historical tragedies whilst on
holiday (e.g. sites of battlefields, prisons, slavery etc)”
│ % who agree or agree strongly
“When I plan a trip
abroad, I find out as
much as I can about
the destination
before I go”
78% AGREEMENT
GLOBAL AVERAGE
The number of UNESCO
World Heritage Sites
increased from 468 in 1995
to 936 in 2011, and
reaches1,007 at the end of
2014.
Networked Society
Best Face Forward
3
Experience Society 1
Surprise Me!
Shared Economy
Mobile First 2
Silent Traveller
TRENDING EMERGING TRAVEL TRENDS
Immerse Me
33
EXPERIENCE SOCIETY
Source: nVision Research 2013, various
Source: Kumar et al, Psychological Science/The Atlantic
EXPERIENCE SOCIETY
As wealth (gradually) expands and education levels rise, so consumer-citizens across the continents find basic needs ever more readily met.
And so the search for quality grows intense: tastier and more varied cuisine, more elegant fashions, more exotic, immersive holidays…
More and more the nature of personal satisfaction becomes more experiential and less materialist.
• Around 50% of middle-class citizens in India now define luxury as “having lots of space around me”; a similar proportion identify “eating good quality food”
• Millennials highly value experiences and are increasingly spending more time and money on them
• Research shows that people enjoy shopping
for holidays, for example, more than buying
physical goods because of the anticipation.
Anticipating future experiences, as well as
remembering past times, makes us happy.
I N D I C AT O R S
A r e w e m a k i n g i t e a s y f o r v i s i t o r s t o f i n d u n i q u e a n d
h a p p i n e s s i n d u c i n g e x p e r i e n c e s ?
Experiences must be Authentic
Millennials & Experiences
When it comes to money, ‘experiences’
trump ‘things’:
More than 3 in 4 millennials (78%) would
choose to spend money on a desirable
experience or event over buying
something desirable
78%
28%
Millennials
Spend money onexperiences overmaterial goods
Spend money onmaterial goods overexperiences
FOMO drives millennials’
experiential appetite: Nearly
7 in 10 (69%) millennials
experience FOMO.
In a world where life
experiences are broadcasted
across social media, the fear
of missing out drives
millennials to show up, share
and engage.
Surprise Me!
Experiences that help consumers to pre-
verify that their experience and holiday
choices will deliver on their expectations,
while also engineering surprises & exceeding
expectations, will resonate with the ‘Surprise
Me’ holiday culture.
Experiences that surprise also provide an
excellent source of material to share
online and offline
With so many ways to plan and preview experiences, disappointment, when it occurs, is even harder to
swallow for international travellers today & therefore the value of serendipity and surprise is elevated
Traffle is a travel app which provides its users
with a “shuffle-able” travel itinerary. The app
connects users with like-minded peers through
their social networks, aiming to inspire otherwise
unlikely experiences.
Hyatt Palm Springs – wow guests whereby a
staff member will knock on each guests’ door and
offer them complimentary items from the “Wow
Cart”
Source: nVision Research [ base 1,000-5,000 online respondents per country aged 16-64 ( Mexico 16-54, Indonesia 16-44) 2013]
% interested in a service that suggested one new place to visit, that
visitor would not normally consider
Global Average
50%
GB
55%
USA
54%
France
59%
Stage of
Customer
Journey
Booking Inspiration for Activity on holiday
Social Energisers • Won’t risk being bored
• Like to see images of what they can
expect
• They trust supplier website sites and
other consumers for
recommendations
• Exceed their expectations with contemporary novel ways to share new stories.
• Highly satisfied visitors will reward you with positive word of mouth and online
reviews.
This group are also up to being spontaneous and ready to try new things
• Location based recommendations (online or offline)
Stage of
Customer
Journey
Booking Inspiration for Activity on holiday
Culturally
Curious
• Gather lots of information before the trip
& enjoy the process of doing so
• More likely to book in-destination and
with the provider.
• They don’t like to follow the herd and
like to keep their options open.
• Enjoy discovering places when they
arrive
For the Culturally Curious who will research things to do but don’t necessarily book
until they are on holiday, recommendations from people they interact with (locals,
trade and other visitors) is key.
40
It’s Good to Share (Sharing Economy)
9%
9%
11%
13%
0% 2% 4% 6% 8% 10% 12% 14%
US
UK
France
Germany
Column1
Trust in strangers and a desire to travel like a local makes collaborate
consumption more appealing.
Interaction with locals and the unique experience it provides, along
with a greater trust in online interactions is winning many
tourists over to the shared economy
The traditional notions of private ownership are being challenged as shared production and consumption of goods and services is growing
Is there room for the Shared Economy alongside traditional
models? Is the need to eat with a stranger a niche trend, or will
it become main-stream?
Source: Phocuswright 2015 [4,000 online travellers]
Percentage of Travellers who have rented space in a Private home/Apartment in the past year
Immerse Me
Countless marketing campaigns promise the
consumer an immersive, engaging experience
The tools of immersion-building are, however,
daily being sharpened by relentless
technological innovation.
New services - from VR headsets to
holographic interfaces - collectively hint at
what might lie ahead : a future where real-life
experiences can be convincingly imitated in
digital code; and where storytelling brands can
magically transport us into specially-crafted
spaces where the user can suspend her
disbelief with such ease that she genuinely
believes she is actively present in the faux
moment.
The promise of an ever more personalised, immersive and magical media and leisure experience. The era
of inner space travel has now opened
Fáilte Ireland – WAW VR promotion -
unmissable experiences along the Wild Atlantic
Way for virtual reality (VR) viewing, giving
people the chance to remotely experience 3D
tours of the coastal route
Marriot experimented with the Oculus Rift in
late 2014. In its #GetTeleported campaign, the
hotel brand used the headset to recreate the
experience of being at Marriot location
Wai’anapanapa Black Sand Beach in Maui.
Source: nVision Research [ base 1,000-5,000 online respondents per country aged 16-64 ( Mexico 16-54, Indonesia 16-44) 2013]
43
https://www.youtube.com/watch?v=xVigoyrmcC0
MOBILE FIRST CONSUMER
Source: Think with Google 2014: the 2014 Travlerr’s Road to Decision : US Base: 5,000
MOBILE FIRST CONSUMER
Never being out-of-touch = how we live now.
With connected mobile devices becoming the preferred platforms for many of our internet activities, there is now a requirement to prepare for - and engage with - the Mobile First consumer
While traditional means of accessing the internet will persist, new generations of internet users will regard themselves as mobile-by-default
I N D I C AT O R S
Smartphone are used throughout the travel process
Source: Think with Google 2014: the 2014 Travlerr’s Road to Decision : US Base: 5,000
Overwhelmingly leisure travellers rely on search engines via their smartphone at both the planning stages of the holiday and when on holiday to find local information
Are we catering for the mobile first consumer adequately?
Are we mobile optimised and ranking high on the search engine lists?
Are we catering for both practical information while on holiday and also the inspirational content to motivate visitors to visit our area?
Source: Think with Google 2014: the 2014 Travlerr’s Road to Decision : US Base: 5,000
Silent Traveller / DIY Traveller
• Silent Travellers can interact with brands as much or as little as they want, which poses a huge challenge for an industry that typically emphasises the human service element.
• If consumers choose to limit human interaction, how can the industry identify, understand and fulfil their needs?
Are digitally confident, independent individuals, who use a range of devices & tools to plan, manage and book travel online. Their relationships with travel brands, hotels & booking agents are purely digital – because that’s the way they like it
CitizenM: small, independent
chain of international hotels,
purposely caters for the
preferences of the Silent T
raveller by weaving technology,
independence & quality service
into its brand story.
•Airport-inspired self check-in
•Free Wi-Fi, and
•Tablet with which to control the blinds,
lighting
•Free movie service in every
guestroom
•They also skip the features DIY travellers
don’t need, such as concierges and dining
rooms
Source: nVision Research [ base 1,000-5,000 online respondents per country aged 16-64 ( Mexico 16-54, Indonesia 16-44) 2013]
NETWORKED SOCIETY
Source: Source: nVision Research [Base 3,620 online respondents (all social networkers0 age 16+, GB 2014]
NETWORKED SOCIETY
Everybody is connected. Value is attributed in linking online with friends and strangers alike.
Human friendship now involves a continuous distribution of news, serious and trivial. A non-presence on social media is an eccentricity.
We are increasingly influenced by social media habits and consequently strive to promote a perfect version of ourselves
The rise of social media enhances the value of experiences as they become social currency used to define and communicate status
.
• 1 in 4 in GB post photos on social media via
smartphone
• 1.5 billion photos uploaded & shared daily
I N D I C AT O R S
% I like it when people acknowledge my posts / photos / comments on social
networking sites
USA: 69%
GB: 66%
Germany: 49%
France: 48%
5% Baby Boomers
17% Gen X
29% Gen Y
Best Face Forward
Online we openly strive to portray a perfect self at all times, showing the world our best and happiest
selves. But social media is no longer
confined to the digital world. Our whole reality if becoming more visual, social and recognition
fuelled.
We are increasingly influenced by social media habits and consequently strive to promote a perfect version of ourselves
# LoveDublin
Allows visitors to share their experiences and
images of Dublin with other visitors and fans
of Dublin.
Tweets and images are shared in the Dublin
Tourist Information Office for iinspiration for
other tourists.
I wish I could be more like the person I describe myself as on Social Media
Source: nVision Research [Base 3,620 online respondents (all social networkers0 age 16+, GB 2014]
How does Ireland embed itself as an aspirational destination that is ‘facebook-able’
Create ‘photo-able’ opportunities; backdrops etc . Opportunities to encourage that perfect pic while bringing your offering into the frame.
Make Wi-Fi available to so visitors can instantly share the moment
Ensure your visitors know you’re on Facebook, Instagram and other social platforms
Ask your visitors to share their positive experiences with their networks or write a review on Tripadvisor
Collect positive testimonials and ask for permission to use visitors selfies in your promotional material
Heading Futures
Thank You
For more visit
www.failteireland.ie/trends
