NEW DEVELOPMENTS & TRENDS IN INTERNATIONAL TOURISM 1

NEW DEVELOPMENTS & TRENDS INNEW DEVELOPMENTS & TRENDS ININTERNATIONAL TOURISMINTERNATIONAL TOURISM

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ContentsContentsInternational Tourism and Leisure IndustryInbound Tourism WorldwideLeisure Tourism CategoriesA Typology of Motivators in International TourismMajor trends in International TourismFactors Leading to International Tourism TrendsLong-Term Trends in Tourism The Change in Customer profile: The new touristDifferent Sub Groups of Length of Stay PreferencesVariety of Tourism to ParticipateUNWTO Reports on Tourism TrendsProspects for Future Travel

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Main elements:Main elements: Vital force for peace Social importance Economic importance Cultural enrichment Employment opportunities Educational significance

International Tourism and Leisure IndustryInternational Tourism and Leisure Industry

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INBOUND TOURISM WORLDWIDEINBOUND TOURISM WORLDWIDE

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INBOUND TOURISM WORLDWIDEINBOUND TOURISM WORLDWIDE

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Business travelBusiness travelMeetings, conferences, seminars, workshops,

and training sessionsIncentive travelNormal business travel

May be a combination of first twoResearch and teaching travelIncludes all forms that are work related

MICE (meetings, incentives, conferences, exhibitions)


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LLeisure traveleisure travelLarge and growing sectorLarge and growing sector

Includes travel for pleasure and recreation, visiting friends and relatives (VFR), history and culture, attractions, entertainment, cruising, sightseeing etc.


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Leisure Tourism CategorieLeisure Tourism Categoriess

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A Typology of Motivators in International TourismA Typology of Motivators in International Tourism

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Major trends in International Tourism Major trends in International Tourism (some)(some)

1) Increase in the demand for alternative tourism types like heritage, culture, eco, sports heritage, culture, eco, sports etc. (an optimal bundle of them as a package tour, specialized tours)

2 )Need for Creative TourismCreative Tourism

3) Hotel trends to fit the needs for customers: the lodging facilities specialize in areas like; green green hotels, thematic hotels, spa hotels, convention hotels, thematic hotels, spa hotels, convention hotels, all-suite hotels, etc.hotels, all-suite hotels, etc.

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Major trends in International Tourism Major trends in International Tourism (some) (some)

4) Continued concern for safety and security safety and security in tourism

5) Growing number of price sensitive price sensitive consumers maximizing the value of the service purchased, Price wise comparison: PERCEIVED VALUE PERCEIVED VALUE is the key word

6) Increase in internet usage internet usage in tourism operations and e-tourisme-tourism rate

7) Increased levels of expectation for quality servicequality service

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Major trends in International Tourism Major trends in International Tourism (some) (some)

8) Changes in businessbusiness tourism (MICE etc.)9) Introduction of new tourism products; like like

space tourismspace tourism, adventure tourism, boutique adventure tourism, boutique jet airlinesjet airlines, dark tourismdark tourism etc.

10) Applications of destination management destination management and marketingand marketing

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There are five five basicbasic factors leading factors leading to changes in global trends and consumer behaviors in tourism

1.1. GlobalizationGlobalization2.2. The improvements in technologyThe improvements in technology:3.3. Changing economic conditionsChanging economic conditions4. The change in the demand profile of consumersprofile of consumers5.5. Political aspectsPolitical aspects: : the ‘War on TerrorWar on Terror’, safety and

health, the need for growing security

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Five Five BasicBasic Factors Leading to International Tourism Factors Leading to International Tourism TrendsTrends

11. GLOBALIZATION. GLOBALIZATION

Tourism contributes to globalization Tourism contributes to globalization (flows of tourists around the world, creation of a global tourist culture, development of multinational corporate organizations like hotels)

Globalization contributes to tourism Globalization contributes to tourism development development (increasing free circulation of people and services: ideas of liberalization and market economy)

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GLOBALIZATIONGLOBALIZATION

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We experience internationaltransactions daily

Imports and exports reacheven remote areas

Technology and e-bizpromote trade

Consumers and companiespull markets closer

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PositivePositive

TechnologyTechnologyOpen MarketsOpen MarketsEconomic IntegrationEconomic IntegrationPeacePeaceCorporate StrategyCorporate StrategyGlobal FocusGlobal Focus

NegativeNegative

CultureCulture Market BarriersMarket Barriers National BarriersNational Barriers WarWarCorporate Corporate StrategyStrategyLocal Local focusfocusFocus

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Impacts of International Hotel Chains on International Impacts of International Hotel Chains on International Tourism and leisure DestinationsTourism and leisure Destinations

AdvantagesAdvantages:

- increase capital in less developed. countries,

- technology and management know-how sharing

- distribution of risks,- new markets in global environment,global environment,- to increase supsuppplyly,,- increase employment and incomeyment and income,- make tourism season longerseason longer,

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DisadvantagesDisadvantages:- After a while leads to monopoly,- Disability to compete as a local investor,- Discourage domestic tourism,- Company and country benefits may not fit with it,- Profit is transferred outside as the form of leakages

Impacts of International Hotel Chains on Impacts of International Hotel Chains on International Tourism and leisure DestinationsInternational Tourism and leisure Destinations

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2. 2. THE IMPROVEMENTS IN TECHNOLOGY: TRANSPORTATION AND THE IMPROVEMENTS IN TECHNOLOGY: TRANSPORTATION AND COMMUNICATIONCOMMUNICATION

The rise of the new technologies, like the information technology, internet and biotechnology had huge impacts on global tourism. Transport: A380 (« superjumbo »)Transport: A380 (« superjumbo »)Product innovation – examples such as null xamples such as null hotels, no staff hotels, etc.

e-tourism and internet

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TelecommunicationsTelecommunications and Networking tools in the and Networking tools in the Tourism IndustryTourism Industry

• Telephone, telex and fax• Mobile devices • Videotext and new data• Teletext• Electronic Data Interchange (EDI)• Inter-organisational and Intra-organisational

networking• Virtual reality • Information superhighway (converges media,

telecommunications and information technology)

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InternetInternet

Enabled the low-cost carrier low-cost carrier revolutionMore price transparency price transparency / competitionEmpowered tourists to share opinions with the

world: no hiding place for those offering poor quality

Provides incomparable ‘route to marketroute to market’ for tourism businesses – big or small

Big in numbersBig in numbers! Only 5 % of Indian’s have access, but that is 60 million people !!!

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Functions of Internet in tourismFunctions of Internet in tourism

• Information distribution • Electronic commerce• Request availability/prices/information• Reservation and confirmation • Expanding value chain with complementary products• Deposits and full settlements• Specific requests/enquiries• Feedback/complaints• Ancillary services

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Navigation and CRSNavigation and CRSNavigation and GPSGPS technologies are

providing endless opportunities to hoteliers hoteliers and consumers. and consumers.

Today, tourism organizations are virtually using computer reservations systemscomputer reservations systems.

CRS allows reservationists to conclude sales more easily and to place guests in the right hotel at the right price anywhere in the world.

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Increase in e-tourism rate leads to trends as:Increase in e-tourism rate leads to trends as:

The use of Internet in travel-planning Internet in travel-planning / booking by both business and leisure travelers seems to continue to grow

Direct on-line bookingsDirect on-line bookings by customers are predicted to make up a significant market share by 2010 with access available to most of the population in industrialized countries;

“Virtual touristsVirtual tourists” will have an increasing demand for multi-media travel information

Interactive TV and mobile devices Interactive TV and mobile devices will increasingly be used for the distribution of tourism products and services.

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The eThe e--Tourism mixTourism mix The eTourism concept and eTourism domainsThe eTourism concept and eTourism domains

3. GLOBAL ECONOMY3. GLOBAL ECONOMY

• International tourism was negatively affected in the years of 2008 & 2009 from economic crisis, turbulence and contrasts• The growth in international tourist arrivals has slowed drastically worldwide• Extremely volatile and unfavorable global economy:

credit crunch, the widening financial crisisfinancial crisis, commodity and oil price risesoil price rises, and massive exchange rate exchange rate fluctuations.

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GLOBAL ECONOMY and EFFECTS on TOURISM GLOBAL ECONOMY and EFFECTS on TOURISM INDUSTRYINDUSTRY

International tourism International tourism was affected more than domestic tourism,

Business tourism Business tourism more than leisure tourism, Hotelsotels more than other accommodation and Air transport Air transport more than other transport.

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New EconomyNew EconomyThe emerging economic structure is now also

called “new economynew economy”. This term is aimed at underlining the fact that

the factors of economic growth and economic growth and competitiveness competitiveness are changing.

Consumers’ behaviourConsumers’ behaviour, consumption structure, production structure and corporate structures are changing.

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44..The change in the demand profile of consumersThe change in the demand profile of consumers

More learning and experience orieexperience oriented tourists,

Changing preferences of destinations and length of stay for travels,

Demanding various tourism typestourism types, Changing demographics like aging

population, changing family size, etc

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5. Political Factors: More Concern 5. Political Factors: More Concern ffor Security or Security and Healthand Health

Typical examplesTypical examples: 9/11, Bird Flue, the ongoing turmoil in the Middle East, Swine Flue etc...

Unstable political situationUnstable political situation in many regions of the world

Some realitiesSome realities: tourists’ anxieties, panics, some overreactions

Some misconceptionsSome misconceptions: tourism is not that elastic

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Long-Term Trends in TourisLong-Term Trends in Tourism m

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THE CHANGE IN CUSTOMER PROFILE: THE NEW TOURISTTHE CHANGE IN CUSTOMER PROFILE: THE NEW TOURIST

Educated customers and a fragmented market today: so we need to be creative and innovative

what you do’ more important tha‘ExperiencesExperiences’ not ‘destinations’ count‘: n ‘where you do it’

AuthenticityAuthenticity – wildlife, food and living culture: travel-savvy visitors have higher expectations than earlier generations

More sophisticated, intelligent and educated customes More sophisticated, intelligent and educated customes “they know what they want”

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Consumer Trends: The “New Tourist”Consumer Trends: The “New Tourist”

Experienced and independentExperienced and independent“do it yourself” travel bookings, destination research

More interested in More interested in Trying new experiences, new tastes, new life styles, new

peopleLikes to connect with othersLikes to live in a different culture than his or hers

Technology and learning orientedTechnology and learning orientedLooking for best price/quality ratio best price/quality ratio in tourism products &

value for money

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Consumer TrendsConsumer Trends: The “The “New TouristNew Tourist””

More active: More active: prefers multi-activities and willing to learn from other cultures

Increasingly nature freindlynature freindly and socially and socially sensitivesensitive

Wants deeper appreciation Wants deeper appreciation of destinations visited

Has various preferences various preferences for various lengtht of vacations, demands different tourism types, etc.

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Different Sub Groups of Length of Stay PreferencesDifferent Sub Groups of Length of Stay Preferences

The industry has become more responsive to The industry has become more responsive to customers’ demand for flexibility:customers’ demand for flexibility:

Choice of shortershorter breaksMore ‘serial holidaymakersserial holidaymakers’ (multiple breaks)Long holidays taken in career breakscareer breaksMore firms adopting flexible working patternsflexible working patterns

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Variety of Tourism to ParticipateVariety of Tourism to Participate

Social factors such as demographic change and trends to healthier lifestyles have encouraged:

AdventureAdventure holidaysLeisureLeisure and activity-related breaksExtremeExtreme and risk sports holidaysCulture tripsCulture tripsMedicalMedical tourism, healthhealth tourismAgritourismAgritourismSportsSports tourismMedicalMedical /Health tourism

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Creative TourismCreative Tourism

Tourism which offers visitors the opportunity to develop their creative potentcreative potential through active participation active participation in courses and learning learning experiences experiences which are characteristic of the holiday destination where they are undertaken

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Nature Based & Sustainable TourismNature Based & Sustainable Tourism

There is an increasing awareness at the level of governments of the social, economic and environmental importance of the tourism sector, and of the impacts it causes on destinations.

Globally, the responsibilities of governments in tourism development have tended to become more decentralized, with many mandates

There is an increased awareness, on the part of tourists, of the need for sustainability.

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Issues gaining importance, many talks and news, beginnings of action, recession hinders change

People are interested in sustainability but still half is not willing to pay more for nature nature protectionprotection

Studies show that still 47 % willing to pay higher fees yet 53 % were not

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AgritourismAgritourismAgritourism, as it is defined most broadly, involves

any agriculturally-based operation or activity that brings visitors to a farm or ranch.

Agritourism is a form of niche tourism that is considered a growth industry in many parts of the world,

Agritourism overlaps with geotourism , ecotourism, wine tourism and culinary tourism.

Other terms associated with agritourism are "agritainment", "value added products," "farm direct marketing", and "sustainable agriculture".

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CampingCampingSometimes overlooked as part of the travel

and tourism industryCampers travel millions of miles a year in the U.S.,

Canada, and EuropeStatistics in dollars and numbers of campers show

that camping is an enormous businessan enormous businessVast expenditures for RVs and camping

equipment

Travel for Natural Beauties Travel for Natural Beauties

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Includes traveling to attend spectator sports and/or participate in sporting activitiesOlympics and World cup

Travel for SportsTravel for Sports

Australian, French, and U.S. Open, and Wimbledon

Superbowl, World Series, and the Masters

Active sports (Biking, Surfing etc.)

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Also includes local-level games and Also includes local-level games and competitionscompetitionsPositive effects on local economy

Concept of health through physical activitieshealth through physical activities has sparked renewed interest

Tremendous economic impactEvery year, two out of five U.S. two out of five U.S. adults

travel for sports

Travel for Sports Travel for Sports (cont’d.)(cont’d.)

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Includes (but not limited to):Off-road bike toursWhite water raftingAfrican safaris and

wildlife toursRainforest canopy

toursursBungee jumping

Travel for AdventureTravel for Adventure

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Segment is growing at a fast pace ½ U.S. adults (i.e., 98 million people), took

an adventure trip in the last few years31 million adults engaged in hard adventure hard adventure

activitiesAdventure travelers are more likely to be young,

single, and employed

Travel for Adventure Travel for Adventure (cont’d.)(cont’d.)

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Often referreferred to as pilgrimagered to as pilgrimagePracticedPracticed for hundreds of years for hundreds of years Still fairly Still fairly common todaycommon today

Broken dowBroken downn into two categoriesinto two categories:Satisfying Satisfying one’s religious convictionsone’s religious convictionsFulfilling one’s curiosity about a particular Fulfilling one’s curiosity about a particular

faith or practicefaith or practice

Religious TravelReligious Travel

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Thousands of sites (e.g., holy landss, churcheschurches,, temples, and mosques) Attract millions of tourists each yearSome examples include:

Mountains of Buddhism pay homage to BuddhaMuslim pilgrimage to Mecca and the Hajj is the

peak of their religious lifeCatholic Vatican is a holy land of sorts

Religious TravelReligious Travel (cont’d.)

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Health tourism is defined as:Attempts of tourist

facilities to attract tourists by promoting health care services and features in addition to regular tourist amenities

Medical and Health TourismMedical and Health Tourism

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Health care services may include:HydrotherapyHydrotherapy treatmentsBeautyBeauty treatmentsRelaxationRelaxation techniquesCelluliteCellulite treatmentMedicalMedical examinationsOperations of all kinds

Health Tourism Health Tourism (cont’d.)(cont’d.)

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Special exercise, diet, and nutritional adiet, and nutritional adviceMedical treatments for specific diseases such

as arthritisarthritisAlternative therapiestherapiesBody massagesBody massages

Health Tourism Health Tourism (cont’d.)(cont’d.)

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Medical TourismMedical TourismServices typically sought by travelers include

elective procedures as well as complex specialized surgeriessurgeries such as joint replacement (knee/hip), cardiac surgery, replacement (knee/hip), cardiac surgery, dental surgery, and cosmetic surgeries. dental surgery, and cosmetic surgeries.

Over 50 countries have identified medical tourism as a national industry, including IndiaIndia

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Space TourismSpace Tourism

Space tourism is space travel for different different purposes. purposes.

A number of startup companies have sprung up in recent years, hoping to create a space tourism a space tourism industryindustry.

Orbital space tourism opportunities have been limited and expensive, with only the Russian Russian Space Agency Space Agency providing transport to date.

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Space AdventuresSpace Adventures

There are 4 basic experience products OrbitalOrbital flights Sub-orbital Sub-orbital flights SpaceflightSpaceflight training Space-related flight adventuresadventures

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The publicized price for flights brokered by Space AdventuresSpace Adventures to the International Space Station aboard a Russian Soyuz Russian Soyuz spacecraft have been US $ 20–35 million, during the period 2001–2009.

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Space TourismSpace TourismRussia halted orbital space tourism in 2010

due to the increase in the International Space Station crew size, using the seats for expedition crews that would be sold to paying spaceflight participants.

However, tourist flights are tentatively planned to resume in 2013, when the number of single-use three-person SoyuzSoyuz launches could rise to five a year

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Cruise TourismCruise TourismOut-performed all other tratravel segments vel segments

since 2000avg. 7.4 % annual growth sisince 1990nce 1990More mega cruismega cruise ships benefiting from

larger economies of scaleGreater product differentiation including

offerings to families, the youth market and ‘lifestylelifestyle’ cruises

More recreational opportunities More recreational opportunities on board cruise ships

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Cruise Tourism: The futureCruise Tourism: The future

More design and technical innovationdesign and technical innovation in cruise ships

More recreational opportunities recreational opportunities on board cruise ships

New cruise regions, as traditional areas become congested

New cruise locationsNew cruise locationsGreater conflict between the cruise industry and cruise industry and

environmentalistsenvironmentalists

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Dark TourismDark Tourism(also black tourismblack tourism)

is tourism involving travel to sites associated with death and tragedydeath and tragedy

The main draw to these locations is mostly due to their historical value rather than their associations with death and sufferingdeath and suffering

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One of the main trends is the growth of video-One of the main trends is the growth of video-conferencing asconferencing as::

TechnologyTechnology allows ‘real-time’ networking at a distance

Equipment costs Equipment costs and line charges fall

Organisations become more environmentally-aware

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UNWTO reports on Tourism TrendsUNWTO reports on Tourism Trends:

Tourism expected to double expected to double in next 15 yearsTourism growing at overall annual rate overall annual rate of 4 % Increasing interest in nature and culture nature and culture tourismNature Nature based based travel travel increasing at annual rate

between 10 % and 30 %37 % of all international trips include a cultural cultural

componentcomponent

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Tourism future:Likely to continue being the one of fasting

growing interrelated industry groupingsinterrelated industry groupingsUNWTO forecasts 1.6 billion international

arrivals by 20201.2 billion intraregionalintraregional travelers 378 million long-haul long-haul travelers

Predicting the Future of TravelPredicting the Future of Travel

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Top 2020 total tourist arrivals by regionEuropeEurope (717 million tourists)East Asia and the Pacific East Asia and the Pacific (397 million)AmericasAmericas (282 million)Followed by AfricaAfrica, the Middle EastMiddle East, and

South Asia

Predicting the Future (cont’d.)

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Number of International Tourists (millions) and World Tourism Number of International Tourists (millions) and World Tourism Receipts(billion USDReceipts(billion USD))

Year # of tourists Tourism Receipts1950 25 2.1

1960 70 6.8

1970 165 18

1980 285 105

1990 458 268

2000 698 475

2002 714 470

2008 913 941

2009 877 852

2010 935 900

2023 (prediciton) 1.700 2.00068

International Tourist Arrivals and Trends, 1950–2020

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Demand factors:Consumer behavior and preferencesbehavior and preferencesDemographics (e.g., age) are also associatedSplintering of tourism niche marketsniche marketsOutbound tourism from ChinaChina and IndiaIndiaCapacity control Capacity control and mass tourism

Demand Influences and Issues

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Supply side:Supply side:Will continue to modify product offerings

Emphasis on environmental protectionenvironmental protectionQuality of services in emerging markets must

improveMore available experiences will provide

greater fulfillmentFrom space tourism to medicalspace tourism to medical tourism tourism

Supply-Side Influences

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A number of environmental issues environmental issues will affect tourism in the futureSectors are beginning to address and

rectify contributions to global warmingglobal warmingTourism can affect whole ecosystems

Damage caused by visitation to environmentally environmentally sensitive sensitive destinationsdestinations

The EnvironmentThe Environment

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Governments and the private sectGovernments and the private sector Must work together to promote more

responsible travel and tourismAlternative fuels

Eco-tourism will likely grow Eco-tourism will likely grow Consumers expect more sustainable vacation

experiencesIssues of certification and compliance will grow

The Environment (cont’d.)

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E-tourismE-tourism as mentioned before:Evolved from a trend to a mainstream

business realityCreating opportunities and challenges for

practitioners and researchers in the areaInformation technologyInformation technology:

Will improve rapidly to help facilitate tourism and tourists

Information TechnologyInformation Technology

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Information access Information access will greatly improveTechnology will improve the travel and

tourism experienceBookings will become easierMore options will increase competitionTransportation will likely be a challenge due to

congestion

Information Technology (cont’d.)Information Technology (cont’d.)

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Current global economic situationOnly a modest growth in tourism modest growth in tourism is likely in

the next few yearsTourists from developed countries will drive

tourism by visiting other developed and developed and developingdeveloping countriesU.S., Canada, Mexico, European countries, and

Asian countries will see an increase in international visitors

Economic ChangeEconomic Change

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Travel and tourism has an enormous impact on the world economyReceiving increasing attention from local, local,

state, provincial, and state, provincial, and central central governmentsgovernmentsPerceived as a viable means to stimulate

sluggish economiessluggish economies

Government PromotionGovernment Promotion

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Governments benefit in the form of increased taxes and other incometaxes and other incomeGovernment entities promote tourism

directly and indirectlyNational tourist officesNational tourist offices

States and provinces also advertiseMoney raised from taxes and donationsMoney raised from taxes and donations

Government InvolvementGovernment Involvement

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Many areas turn to tourism as the only way of raising up from poverty levelTourist money is money that is “newnew” from

outside the economyTriggers rounds of additional spendingadditional spending

Government Government (cont’d.)(cont’d.)

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Trends that favor tourism:Trends that favor tourism: Rising disposable incomeRising disposable income

67 % of travelers are employed full or part timeMean annual household income of travelers is

$70,200 Greater discretionary timeGreater discretionary time

Retirees Workweek has shrunk

Prospects for Future TravelProspects for Future Travel

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Changing family structureChanging family structureBirthrates have declined sharplySexual equality and shifts in household roles

Increased number of retired personsIncreased number of retired personsEarlier retiring agesPension plansLife expectancy is rising

Prospects (cont’d.)Prospects (cont’d.)

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Change in living conditionsChange in living conditionsHigher homebuilding costs increases living in

smaller spaces, stimulating need to get awayEducation and shift in valuesEducation and shift in values

People are thinking in more global termsShift in values: for many, doing something, or

taking part in something, has assumed more importance than material possessions

Travel simplificationTravel simplificationTour packages offer simplicity

Prospects (cont’d.)

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Factors that inhibit travelUncontrollable issuesUncontrollable issues

Economic uncertainty, recession, political unrest, terrorism, and excessive labor costs in transportation

Travel hassles and securityTravel hassles and securityBaggage problems, delays, overbooking, etc. Lack of security in public placesToo much security in airports

Prospects (cont’d.)Prospects (cont’d.)

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Product MarketsProduct Markets

Existing product markets:

Leisure / Holiday tourism

Rural tourismEcotourismCultural/heritage

tourism

Emerging and future product markets:

Special interest Special interest tourismtourism

Agri-TourismAgri-TourismSpace tourismSpace tourismCreative tourismCreative tourismMICE tourismMICE tourism

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ConclusionsInformation Telecommunication Technologies

increasingly determine the competitivenesscompetitiveness of tourism organizations

Tourism industry should take advantage of the Internet, Extranet and Intranet Internet, Extranet and Intranet to manage its representation to the world, its internal efficiencies and its relationships with other partners.

ICT-enabledICT-enabled tourism organizations will benefit and grow in the future

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Emergent PatternsEmergent Patterns

Tourism is entering an age characterized by;Moderating rates of growthgrowthHeightened concerns about securitysecurityIntensified competitioncompetition among destinationsGreater deregulation and privatizationderegulation and privatization,

encouraging market forces to operateMore awareness and attention paid to the

growing impacts of tourismimpacts of tourism

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Emergent PatternsEmergent PatternsA consumer who is more knowledgeable,

experienced and empoweredA tourism sector increasingly dominated by a

small number of large multinational enterprises

An increasing number of tourism product types competing for a fragmented market, and

A technology driven marketplace.‑

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Documents

NEW DEVELOPMENTS & TRENDS IN INTERNATIONAL TOURISM 1