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NEW DEVELOPMENTS & TRENDS IN INTERNATIONAL TOURISM

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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 Worldwide Leisure Tourism Categories A Typology of Motivators in International Tourism Major trends in International Tourism Factors Leading to International Tourism Trends Long-Term Trends in Tourism The Change in Customer profile: The new tourist Different Sub Groups of Length of Stay Preferences Variety of Tourism to Participate UNWTO Reports on Tourism Trends Prospects for Future Travel

3 International Tourism and Leisure Industry
Main elements: Vital force for peace Social importance Economic importance Cultural enrichment Employment opportunities Educational significance

4 INBOUND TOURISM WORLDWIDE

5 INBOUND TOURISM WORLDWIDE

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7 International Tourism and Leisure Industry
Business travel Meetings, conferences, seminars, workshops, and training sessions Incentive travel Normal business travel May be a combination of first two Research and teaching travel Includes all forms that are work related MICE (meetings, incentives, conferences, exhibitions)

8 International Tourism and Leisure Industry
Leisure travel Large and growing sector Includes travel for pleasure and recreation, visiting friends and relatives (VFR), history and culture, attractions, entertainment, cruising, sightseeing etc.

9 Leisure Tourism Categories

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 tourism Globalization The improvements in technology: Changing economic conditions The change in the demand profile of consumers Political aspects: the ‘War on Terror’, safety and health, the need for growing security

15 1. 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 development (increasing free circulation of people and services: ideas of liberalization and market economy)

16 GLOBALIZATION

17 Globalization Involves Us All
We experience international transactions daily Imports and exports reach even remote areas Technology and e-biz promote trade Consumers and companies pull markets closer

18 Global Drivers for International Tourism
Positive Negative Technology Open Markets Economic Integration Peace Corporate Strategy Global Focus Culture Market Barriers National Barriers War Corporate Strategy Local focusFocus

19 increase capital in less developed. countries,
Impacts of International Hotel Chains on International Tourism and leisure Destinations Advantages: increase capital in less developed. countries, technology and management know-how sharing distribution 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 fit with 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 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)

23 Internet Enabled the low-cost carrier revolution
More price transparency / competition Empowered tourists to share opinions with the world: no hiding place for those offering poor quality Provides incomparable ‘route to market’ for tourism businesses – big or small Big in numbers! Only 5 % of Indian’s have access, but that is 60 million people !!!

24 Functions 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

25 Navigation and CRS Navigation 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 grow Direct 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 information Interactive TV and mobile devices will increasingly be used for the distribution of tourism products and services.

27 The e-Tourism mix The 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 contrasts The growth in international tourist arrivals has slowed drastically worldwide Extremely 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 and Air transport more than other transport.

30 New Economy The 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 world Some realities: tourists’ anxieties, panics, some overreactions Some misconceptions: tourism is not that elastic

33 Long-Term Trends in Tourism

34 THE 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‘Experiences’ not ‘destinations’ count‘: n ‘where you do it’ Authenticity – wildlife, food and living culture: travel-savvy visitors have higher expectations than earlier generations More 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 research More interested in Trying new experiences, new tastes, new life styles, new people Likes to connect with others Likes to live in a different culture than his or hers Technology and learning oriented Looking 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 cultures Increasingly nature freindly and socially sensitive Wants deeper appreciation of destinations visited Has various preferences for various lengtht of vacations, demands different tourism types, etc.

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38 Different Sub Groups of Length of Stay Preferences
The industry has become more responsive to customers’ demand for flexibility: Choice of shorter breaks More ‘serial holidaymakers’ (multiple breaks) Long holidays taken in career breaks More 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 holidays Leisure and activity-related breaks Extreme and risk sports holidays Culture trips Medical tourism, health tourism Agritourism Sports tourism Medical /Health tourism

40 Creative Tourism Tourism 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 mandates There is an increased awareness, on the part of tourists, of the need for sustainability.

42 Nature Based & Sustainable Tourism

43 Nature Based & Sustainable Tourism
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 protection Studies show that still 47 % willing to pay higher fees yet 53 % were not

44 Agritourism Agritourism, 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
Camping Sometimes overlooked as part of the travel and tourism industry Campers travel millions of miles a year in the U.S., Canada, and Europe Statistics in dollars and numbers of campers show that camping is an enormous business Vast expenditures for RVs and camping equipment

46 Travel for Sports Includes traveling to attend spectator sports and/or participate in sporting activities Olympics and World cup Australian, French, and U.S. Open, and Wimbledon Superbowl, World Series, and the Masters Active sports (Biking, Surfing etc.)

47 Travel for Sports (cont’d.)
Also includes local-level games and competitions Positive effects on local economy Concept of health through physical activities has sparked renewed interest Tremendous economic impact Every year, two out of five U.S. adults travel for sports

48 Travel for Adventure Includes (but not limited to):
Off-road bike tours White water rafting African safaris and wildlife tours Rainforest canopy tours Bungee jumping

49 Travel for Adventure (cont’d.)
Segment is growing at a fast pace ½ U.S. adults (i.e., 98 million people), took an adventure trip in the last few years 31 million adults engaged in hard adventure activities Adventure travelers are more likely to be young, single, and employed

50 Religious Travel Often referred to as pilgrimage
Practiced for hundreds of years Still fairly common today Broken down into two categories: Satisfying one’s religious convictions Fulfilling 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 year Some examples include: Mountains of Buddhism pay homage to Buddha Muslim pilgrimage to Mecca and the Hajj is the peak of their religious life Catholic 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 treatments Beauty treatments Relaxation techniques Cellulite treatment Medical examinations Operations of all kinds

54 Health Tourism (cont’d.)
Special exercise, diet, and nutritional advice Medical treatments for specific diseases such as arthritis Alternative therapies Body massages

55 Medical Tourism Services 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.

57 Space Tourism

58 Space Adventures Orbital flights Sub-orbital flights
There are 4 basic experience products Orbital flights Sub-orbital flights Spaceflight training Space-related flight adventures

59 Space Tourism The 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 Tourism Russia 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 1990 More mega cruise ships benefiting from larger economies of scale Greater product differentiation including offerings to families, the youth market and ‘lifestyle’ cruises More recreational opportunities on board cruise ships

62 Cruise Tourism: The future
More design and technical innovation in cruise ships More recreational opportunities on board cruise ships New cruise regions, as traditional areas become congested New cruise locations Greater conflict between the cruise industry and environmentalists

63 Dark Tourism (also black tourism) is tourism involving travel to sites associated with death and tragedy The 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 distance Equipment costs and line charges fall Organisations become more environmentally-aware

65 UNWTO reports on Tourism Trends:
Tourism expected to double in next 15 years Tourism growing at overall annual rate of 4 % Increasing interest in nature and culture tourism Nature 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 groupings UNWTO forecasts 1.6 billion international arrivals by 2020 1.2 billion intraregional travelers 378 million long-haul travelers

67 Predicting the Future (cont’d.)
Top 2020 total tourist arrivals by region Europe (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 tourists Tourism Receipts 1950 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 2.000

69 International Tourist Arrivals and Trends, 1950–2020

70 Demand Influences and Issues
Demand factors: Consumer behavior and preferences Demographics (e.g., age) are also associated Splintering of tourism niche markets Outbound tourism from China and India Capacity control and mass tourism

71 Supply-Side Influences
Will continue to modify product offerings Emphasis on environmental protection Quality of services in emerging markets must improve More available experiences will provide greater fulfillment From space tourism to medical tourism

72 The Environment A number of environmental issues will affect tourism in the future Sectors are beginning to address and rectify contributions to global warming Tourism can affect whole ecosystems Damage caused by visitation to environmentally sensitive destinations

73 The Environment (cont’d.)
Governments and the private sector Must work together to promote more responsible travel and tourism Alternative fuels Eco-tourism will likely grow Consumers expect more sustainable vacation experiences Issues of certification and compliance will grow

74 Information Technology
E-tourism as mentioned before: Evolved from a trend to a mainstream business reality Creating opportunities and challenges for practitioners and researchers in the area Information technology: Will improve rapidly to help facilitate tourism and tourists

75 Information Technology (cont’d.)
Information access will greatly improve Technology will improve the travel and tourism experience Bookings will become easier More options will increase competition Transportation 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 years Tourists from developed countries will drive tourism by visiting other developed and developing countries U.S., Canada, Mexico, European countries, and Asian countries will see an increase in international visitors

77 Government Promotion Travel and tourism has an enormous impact on the world economy Receiving increasing attention from local, state, provincial, and central governments Perceived as a viable means to stimulate sluggish economies

78 Government Involvement
Governments benefit in the form of increased taxes and other income Government entities promote tourism directly and indirectly National tourist offices States and provinces also advertise Money raised from taxes and donations

79 Government (cont’d.) Many areas turn to tourism as the only way of raising up from poverty level Tourist money is money that is “new” from outside the economy Triggers rounds of additional spending

80 Prospects for Future Travel
Trends that favor tourism: Rising disposable income 67 % of travelers are employed full or part time Mean annual household income of travelers is $70,200 Greater discretionary time Retirees Workweek has shrunk

81 Prospects (cont’d.) Changing family structure
Birthrates have declined sharply Sexual equality and shifts in household roles Increased number of retired persons Earlier retiring ages Pension plans Life expectancy is rising

82 Prospects (cont’d.) Change in living conditions
Higher homebuilding costs increases living in smaller spaces, stimulating need to get away Education and shift in values People are thinking in more global terms Shift in values: for many, doing something, or taking part in something, has assumed more importance than material possessions Travel simplification Tour packages offer simplicity

83 Prospects (cont’d.) Factors that inhibit travel Uncontrollable issues
Economic uncertainty, recession, political unrest, terrorism, and excessive labor costs in transportation Travel hassles and security Baggage problems, delays, overbooking, etc. Lack of security in public places Too much security in airports

84 Product Markets Emerging and future product markets:
Special interest tourism Agri-Tourism Space tourism Creative tourism MICE tourism Existing product markets: Leisure / Holiday tourism Rural tourism Ecotourism Cultural/heritage tourism

85 Conclusions Information Telecommunication Technologies increasingly determine the competitiveness of tourism organizations Tourism 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 growth Heightened concerns about security Intensified competition among destinations Greater deregulation and privatization, encouraging market forces to operate More awareness and attention paid to the growing impacts of tourism

87 Emergent Patterns A consumer who is more knowledgeable, experienced and empowered A 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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