Professional services giant Deloitte published a report titled Facing Travel’s Future: A Future of Consumer Industry Report. It highlighted key trends affecting the future of tourism, including generation shifts, technological disruption, climate change pressures, and evolving travel preferences.
According to the report, millennials and Gen Z will take over travel. They will account for around 90% of trips by 2023, overtaking Baby Boomers in spending.
Climate change, remote work, and AI
The report clearly shows that the demands of the environmentally conscious and tech-savvy younger generations will dominate the travel industry. This trend coincides with the industry’s biggest threat: climate change pressures.
The industry will be compelled to address climate concerns such as heat waves, rising sea levels, and shrinking ski seasons, which will affect destinations. Additionally, there will be greater demand for sustainable travel options and stricter regulations that will affect operations.
Furthermore, the report stated that the popularity of remote work will reshape travel patterns. Almost one–third (30%) of Gen Z and millennials are described as “laptop luggers,” or people who like to work while traveling. This flexibility will result in longer and more frequent trips.
Like every other industry, artificial intelligence (AI) is poised to transform travel. The report states that nine out of 10 business leaders expect generative AI to boost productivity. Significant returns from AI are expected within three years. But the industry must first overcome hurdles with legacy technology.
Deloitte’s forecast for the travel industry’s future aligns with its 2024 outlook. In that report, workplace flexibility and remote work were cited as the primary drivers of resiliency in travel spending. This is despite the decline in revenge travel from the pandemic.
Travel companies that outsource are advised to inquire with their business process outsourcing (BPO) partners about strategies to keep up with these trends.
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Chipkin, H. (2024, May 22). ‘Laptop Luggers’ Plan To Work More During Summer Trips, Says Deloitte Survey. Business Travel Executive. Retrieved from https://www.businesstravelexecutive.com/news/laptop-luggers-plan-to-work-more-during-summer-trips-says-deloitte-survey
Deloitte + Skift. (2024, September 6). New Deloitte Report Maps Climate Change’s Triple Threat to Travel Industry. Skift. Retrieved from https://skift.com/2024/09/06/new-deloitte-report-maps-climate-changes-triple-threat-to-travel-industry/
Lawton, K. (2024, April 12). Deloitte: Key forces reshaping the travel and tourism industry. Hospitality Net. Retrieved September 13, 2024, from https://www.hospitalitynet.org/news/4121412.html
