Presentation on theme: "NEW DEVELOPMENTS & TRENDS IN INTERNATIONAL TOURISM"— Presentation transcript:
1 NEW DEVELOPMENTS & TRENDS IN INTERNATIONAL TOURISM
2 Contents International Tourism and Leisure Industry Inbound Tourism WorldwideLeisure Tourism CategoriesA Typology of Motivators in International TourismMajor trends in International TourismFactors Leading to International Tourism TrendsLong-Term Trends in TourismThe 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
3 International Tourism and Leisure Industry Main elements:Vital force for peaceSocial importanceEconomic importanceCultural enrichmentEmployment opportunitiesEducational significance
7 International Tourism and Leisure Industry Business travelMeetings, conferences, seminars, workshops, and training sessionsIncentive travelNormal business travelMay be a combination of first twoResearch and teaching travelIncludes all forms that are work relatedMICE (meetings, incentives, conferences, exhibitions)
8 International Tourism and Leisure Industry Leisure travelLarge and growing sectorIncludes travel for pleasure and recreation,visiting friends and relatives (VFR),history and culture,attractions,entertainment,cruising,sightseeing etc.
10 A Typology of Motivators in International Tourism
11 Major trends in International Tourism (some) 1) Increase in the demand for alternative tourism types like heritage, culture, eco, sports etc. (an optimal bundle of them as a package tour, specialized tours) 2 )Need for Creative Tourism 3) Hotel trends to fit the needs for customers: the lodging facilities specialize in areas like; green hotels, thematic hotels, spa hotels, convention hotels, all-suite hotels, etc.
12 Major trends in International Tourism (some) 4) Continued concern for safety and security in tourism 5) Growing number of price sensitive consumers maximizing the value of the service purchased, Price wise comparison: PERCEIVED VALUE is the key word 6) Increase in internet usage in tourism operations and e-tourism rate 7) Increased levels of expectation for quality service
13 Major trends in International Tourism (some) 8) Changes in business tourism (MICE etc.) 9) Introduction of new tourism products; like space tourism, adventure tourism, boutique jet airlines, dark tourism etc. 10) Applications of destination management and marketing
14 Five Basic Factors Leading to International Tourism Trends There are five basic factors leading to changes in global trends and consumer behaviors in tourismGlobalizationThe improvements in technology:Changing economic conditionsThe change in the demand profile of consumersPolitical aspects: the ‘War on Terror’, safety and health, the need for growing security
15 1. GLOBALIZATIONTourism 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 development (increasing free circulation of people and services: ideas of liberalization and market economy)
17 Globalization Involves Us All We experience internationaltransactions dailyImports and exports reacheven remote areasTechnology and e-bizpromote tradeConsumers and companiespull markets closer
18 Global Drivers for International Tourism PositiveNegativeTechnologyOpen MarketsEconomic IntegrationPeaceCorporate StrategyGlobal FocusCultureMarket BarriersNational BarriersWarCorporate StrategyLocal focusFocus
19 increase capital in less developed. countries, Impacts of International Hotel Chains on International Tourism and leisure DestinationsAdvantages:increase capital in less developed. countries,technology and management know-how sharingdistribution of risks,new markets in global environment,to increase supply,increase employment and income,make tourism season longer,
20 Impacts of International Hotel Chains on International Tourism and leisure Destinations Disadvantages:After a while leads to monopoly,Disability to compete as a local investor,Discourage domestic tourism,Company and country benefits may not fitwith it,Profit is transferred outside as the form of leakages
21 2. THE IMPROVEMENTS IN TECHNOLOGY: TRANSPORTATION AND COMMUNICATION The rise of the new technologies, like the information technology, internet and biotechnology had huge impacts on global tourism.Transport: A380 (« superjumbo »)Product innovation – examples such as null hotels, no staff hotels, etc.e-tourism and internet
22 Telecommunications and Networking tools in the Tourism Industry Telephone, telex and faxMobile devicesVideotext and new dataTeletextElectronic Data Interchange (EDI)Inter-organisational and Intra-organisational networkingVirtual realityInformation superhighway (converges media, telecommunications and information technology)
23 Internet Enabled the low-cost carrier revolution More price transparency / competitionEmpowered tourists to share opinions with the world: no hiding place for those offering poor qualityProvides incomparable ‘route to market’ for tourism businesses – big or smallBig in numbers! Only 5 % of Indian’s have access, but that is 60 million people !!!
24 Functions of Internet in tourism Information distributionElectronic commerceRequest availability/prices/informationReservation and confirmationExpanding value chain with complementary productsDeposits and full settlementsSpecific requests/enquiriesFeedback/complaintsAncillary services
25 Navigation and CRSNavigation and GPS technologies are providing endless opportunities to hoteliers and consumers.Today, tourism organizations are virtually using computer 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.
26 Increase in e-tourism rate leads to trends as: The use of Internet in travel-planning / booking by both business and leisure travelers seems to continue to growDirect 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 tourists” will have an increasing demand for multi-media travel informationInteractive TV and mobile devices will increasingly be used for the distribution of tourism products and services.
27 The e-Tourism mixThe eTourism concept and eTourism domains
28 Extremely volatile and unfavorable global economy: credit crunch, International tourism was negatively affected in the years of 2008 & 2009 from economic crisis, turbulence and contrastsThe growth in international tourist arrivals has slowed drastically worldwideExtremely volatile and unfavorable global economy:credit crunch,the widening financial crisis,commodity and oil price rises,and massive exchange rate fluctuations.
29 GLOBAL ECONOMY and EFFECTS on TOURISM INDUSTRY International tourism was affected more than domestic tourism,Business tourism more than leisure tourism,Hotels more than other accommodation andAir transport more than other transport.
30 New EconomyThe emerging economic structure is now also called “new economy”.This term is aimed at underlining the fact that the factors of economic growth and competitiveness are changing.Consumers’ behaviour, consumption structure, production structure and corporate structures are changing.
31 4.The change in the demand profile of consumers More learning and experience oriented tourists,Changing preferences of destinations and length of stay for travels,Demanding various tourism types,Changing demographics like aging population, changing family size, etc
32 5. Political Factors: More Concern for Security and Health Typical examples: 9/11, Bird Flue, the ongoing turmoil in the Middle East, Swine Flue etc...Unstable political situation in many regions of the worldSome realities: tourists’ anxieties, panics, some overreactionsSome misconceptions: tourism is not that elastic
34 THE CHANGE IN CUSTOMER PROFILE: THE NEW TOURIST Educated customers and a fragmented market today: so we need to be creative and innovativewhat you do’ more important tha‘Experiences’ not ‘destinations’ count‘: n ‘where you do it’Authenticity – wildlife, food and living culture: travel-savvy visitors have higher expectations than earlier generationsMore sophisticated, intelligent and educated customes “they know what they want”
35 Consumer Trends: The “New Tourist” Experienced and independent“do it yourself” travel bookings, destination researchMore interested inTrying new experiences, new tastes, new life styles, new peopleLikes to connect with othersLikes to live in a different culture than his or hersTechnology and learning orientedLooking for best price/quality ratio in tourism products & value for money
36 Consumer Trends: The “New Tourist” More active: prefers multi-activities and willing to learn from other culturesIncreasingly nature freindly and socially sensitiveWants deeper appreciation of destinations visitedHas various preferences for various lengtht of vacations, demands different tourism types, etc.
38 Different Sub Groups of Length of Stay Preferences The industry has become more responsive to customers’ demand for flexibility:Choice of shorter breaksMore ‘serial holidaymakers’ (multiple breaks)Long holidays taken in career breaksMore firms adopting flexible working patterns
39 Variety of Tourism to Participate Social factors such as demographic change and trends to healthier lifestyles have encouraged:Adventure holidaysLeisure and activity-related breaksExtreme and risk sports holidaysCulture tripsMedical tourism, health tourismAgritourismSports tourismMedical /Health tourism
40 Creative TourismTourism which offers visitors the opportunity to develop their creative potential through active participation in courses and learning experiences which are characteristic of the holiday destination where they are undertaken
41 Nature 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 mandatesThere is an increased awareness, on the part of tourists, of the need for sustainability.
43 Nature Based & Sustainable Tourism Issues gaining importance, many talks and news, beginnings of action, recession hinders changePeople are interested in sustainability but still half is not willing to pay more for nature protectionStudies show that still 47 % willing to pay higher fees yet 53 % were not
44 AgritourismAgritourism, 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".
45 Travel for Natural Beauties CampingSometimes 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 businessVast expenditures for RVs and camping equipment
46 Travel for SportsIncludes traveling to attend spectator sports and/or participate in sporting activitiesOlympics and World cupAustralian, French, and U.S. Open, and WimbledonSuperbowl, World Series, and the MastersActive sports (Biking, Surfing etc.)
47 Travel for Sports (cont’d.) Also includes local-level games and competitionsPositive effects on local economyConcept of health through physical activities has sparked renewed interestTremendous economic impactEvery year, two out of five U.S. adults travel for sports
48 Travel for Adventure Includes (but not limited to): Off-road bike toursWhite water raftingAfrican safaris and wildlife toursRainforest canopy toursBungee jumping
49 Travel for Adventure (cont’d.) Segment is growing at a fast pace½ U.S. adults (i.e., 98 million people), took an adventure trip in the last few years31 million adults engaged in hard adventure activitiesAdventure travelers are more likely to be young, single, and employed
50 Religious Travel Often referred to as pilgrimage Practiced for hundreds of yearsStill fairly common todayBroken down into two categories:Satisfying one’s religious convictionsFulfilling one’s curiosity about a particular faith or practice
51 Religious Travel (cont’d.) Thousands of sites (e.g., holy lands, churches, 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
52 Medical and Health Tourism 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
53 Health Tourism (cont’d.) Health care services may include:Hydrotherapy treatmentsBeauty treatmentsRelaxation techniquesCellulite treatmentMedical examinationsOperations of all kinds
54 Health Tourism (cont’d.) Special exercise, diet, and nutritional adviceMedical treatments for specific diseases such as arthritisAlternative therapiesBody massages
55 Medical TourismServices typically sought by travelers include elective procedures as well as complex specialized surgeries such as joint replacement (knee/hip), cardiac surgery, dental surgery, and cosmetic surgeries.Over 50 countries have identified medical tourism as a national industry, including India
56 Space Tourism Space tourism is space travel for different purposes. A number of startup companies have sprung up in recent years, hoping to create a space tourism industry.Orbital space tourism opportunities have been limited and expensive, with only the Russian Space Agency providing transport to date.
58 Space Adventures Orbital flights Sub-orbital flights There are 4 basic experience productsOrbital flightsSub-orbital flightsSpaceflight trainingSpace-related flight adventures
59 Space TourismThe publicized price for flights brokered by Space Adventures to the International Space Station aboard a Russian Soyuz spacecraft have been US $ 20–35 million, during the period 2001–2009.
60 Space TourismRussia halted orbital space tourism in 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 Soyuz launches could rise to five a year
61 Cruise Tourism Out-performed all other travel segments since 2000 avg. 7.4 % annual growth since 1990More mega cruise ships benefiting from larger economies of scaleGreater product differentiation including offerings to families, the youth market and ‘lifestyle’ cruisesMore recreational opportunities on board cruise ships
62 Cruise Tourism: The future More design and technical innovation in cruise shipsMore recreational opportunities on board cruise shipsNew cruise regions, as traditional areas become congestedNew cruise locationsGreater conflict between the cruise industry and environmentalists
63 Dark Tourism(also black tourism) is tourism involving travel to sites associated with death and tragedyThe main draw to these locations is mostly due to their historical value rather than their associations with death and suffering
64 One of the main trends is the growth of video-conferencing as: Technology allows ‘real-time’ networking at a distanceEquipment costs and line charges fallOrganisations become more environmentally-aware
65 UNWTO reports on Tourism Trends: Tourism expected to double in next 15 yearsTourism growing at overall annual rate of 4 %Increasing interest in nature and culture tourismNature based travel increasing at annual rate between 10 % and 30 %37 % of all international trips include a cultural component
66 Predicting the Future of Travel Tourism future:Likely to continue being the one of fasting growing interrelated industry groupingsUNWTO forecasts 1.6 billion international arrivals by 20201.2 billion intraregional travelers378 million long-haul travelers
67 Predicting the Future (cont’d.) Top 2020 total tourist arrivals by regionEurope (717 million tourists)East Asia and the Pacific (397 million)Americas (282 million)Followed by Africa, the Middle East, and South Asia
68 Year # of tourists Tourism Receipts Number of International Tourists (millions) and World Tourism Receipts(billion USD)Year# of touristsTourism Receipts1950252.11960706.819701651819802851051990458268200069847520027144702008913941200987785220109359002023 (prediciton)1.7002.000
69 International Tourist Arrivals and Trends, 1950–2020
70 Demand Influences and Issues Demand factors:Consumer behavior and preferencesDemographics (e.g., age) are also associatedSplintering of tourism niche marketsOutbound tourism from China and IndiaCapacity control and mass tourism
71 Supply-Side Influences Will continue to modify product offeringsEmphasis on environmental protectionQuality of services in emerging markets must improveMore available experiences will provide greater fulfillmentFrom space tourism to medical tourism
72 The EnvironmentA number of environmental issues will affect tourism in the futureSectors are beginning to address and rectify contributions to global warmingTourism can affect whole ecosystemsDamage caused by visitation to environmentally sensitive destinations
73 The Environment (cont’d.) Governments and the private sectorMust work together to promote more responsible travel and tourismAlternative fuelsEco-tourism will likely growConsumers expect more sustainable vacation experiencesIssues of certification and compliance will grow
74 Information Technology E-tourism as mentioned before:Evolved from a trend to a mainstream business realityCreating opportunities and challenges for practitioners and researchers in the areaInformation technology:Will improve rapidly to help facilitate tourism and tourists
75 Information Technology (cont’d.) 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
76 Economic Change Current global economic situation Only a modest growth in tourism is likely in the next few yearsTourists from developed countries will drive tourism by visiting other developed and developing countriesU.S., Canada, Mexico, European countries, and Asian countries will see an increase in international visitors
77 Government PromotionTravel and tourism has an enormous impact on the world economyReceiving increasing attention from local, state, provincial, and central governmentsPerceived as a viable means to stimulate sluggish economies
78 Government Involvement Governments benefit in the form of increased taxes and other incomeGovernment entities promote tourism directly and indirectlyNational tourist officesStates and provinces also advertiseMoney raised from taxes and donations
79 Government (cont’d.)Many areas turn to tourism as the only way of raising up from poverty levelTourist money is money that is “new” from outside the economyTriggers rounds of additional spending
80 Prospects for Future Travel Trends that favor tourism:Rising disposable income67 % of travelers are employed full or part timeMean annual household income of travelers is $70,200Greater discretionary timeRetireesWorkweek has shrunk
81 Prospects (cont’d.) Changing family structure Birthrates have declined sharplySexual equality and shifts in household rolesIncreased number of retired personsEarlier retiring agesPension plansLife expectancy is rising
82 Prospects (cont’d.) Change in living conditions Higher homebuilding costs increases living in smaller spaces, stimulating need to get awayEducation and shift in valuesPeople are thinking in more global termsShift in values: for many, doing something, or taking part in something, has assumed more importance than material possessionsTravel simplificationTour packages offer simplicity
83 Prospects (cont’d.) Factors that inhibit travel Uncontrollable issues Economic uncertainty, recession, political unrest, terrorism, and excessive labor costs in transportationTravel hassles and securityBaggage problems, delays, overbooking, etc.Lack of security in public placesToo much security in airports
85 ConclusionsInformation Telecommunication Technologies increasingly determine the competitiveness of tourism organizationsTourism industry should take advantage of the Internet, Extranet and Intranet to manage its representation to the world, its internal efficiencies and its relationships with other partners.ICT-enabled tourism organizations will benefit and grow in the future
86 Emergent Patterns Moderating rates of growth Tourism is entering an age characterized by;Moderating rates of growthHeightened concerns about securityIntensified competition among destinationsGreater deregulation and privatization, encouraging market forces to operateMore awareness and attention paid to the growing impacts of tourism
87 Emergent PatternsA consumer who is more knowledgeable, experienced and empoweredA tourism sector increasingly dominated by a small number of large multinational enterprisesAn increasing number of tourism product types competing for a fragmented market, andA technology‑driven marketplace.