Changing traveller expectations are reshaping tourism, says Kearney
Shifting consumer preferences for specific travel experiences are transforming the globe’s $10 trillion tourism industry. Emerging destinations, such as the Middle East, have a chance to capitalize on these trends by developing innovative, sustainable tourism strategies to meet new-age demands.
As global tourism rebounds, 1.8 billion tourists are expected to embark on vacations around the world by 2030. That is in part due to the rebound in tourism in the aftermath of the pandemic and a growing middle-class with an appetite for vacationing.
A report from Kearney shows that the global travel industry is transforming rapidly, and as a result, tourism sectors will need to adapt to ever-changing visitor preferences or face a downhill walk in attractiveness.
Beach vacations remain the top preference for global travellers, as the sea and sun retain their eternal allure. Destinations that fit this bill include Miami, Dubai, or Ibiza, with other emerging spots like the Red Sea or Patagonia.
Ecotourism is another subsector that is growing in popularity. Travelers are increasingly valuing the environment when choosing sustainable travel to nature destinations like Central America, the Alps, New Zealand, or even Egypt.
Younger consumers in the Gen Z and Millennial generations are far more likely to have major concerns about the environment as climate change becomes more and more of a worry. As more young people reach the point of having expendable income, they will make up an increasingly significant percentage of tourists worldwide.
“Sustainability consciousness is now a mainstream trend, not a niche concern,” said Mauricio Zuazua, lead author and Chair of Kearney in the Middle East and Africa.
Meanwhile, more and more travellers are seeking out alternative options like ‘regenerative tourism’, which includes activities that directly support local economies and are neutral for the environment. This kind of travel can include things like cultural exchanges, volunteering, or getting involved in conservation projects.
According to Kearney’s study, a total of 75% of respondents claimed that the impact their vacation has on the environment plays at least somewhat of a role in their travel decisions. Of those, 32% said it actually plays a major role.
This relates somewhat to another finding from the report, which shows that around 70% of travellers prefer trips of at least a week or longer. That includes 35% that said they prefer to travel for more than a week.
The travel experience
The bottom line said Kearney, is that travellers are increasingly looking for deeper, more immersive experiences so that they can get to know their destinations better. This trend might come from a post-pandemic focus on work-life balance, especially among younger workers, who want to make the best of travel experiences.
And indeed, more and more young travellers want a taste of what it is like to live in their destinations. Another dimension to these longer-stay vacations is the rise in ‘workcations’, with some countries even offering special visas for traveling digital workers, often called ‘digital nomads’.
Spain, Greece, Peru, Colombia, and the Bahamas are just a few of a huge list of countries that welcome foreign digital workers with favourable visa schemes since the onslaught of the pandemic, when working from home became the norm.
In order to keep up with these trends, Kearney suggests destination countries should work to promote unique local experiences, invest in nature attractions, and enhance access to nearby cities and regions for travellers to branch out and make day trips.
“The global travel industry is rapidly evolving, and stakeholders including tourism authorities, project developers, and private operators must adapt to shifting visitor preferences or risk becoming obsolete,” said Zuazua.
“As the industry expands to an estimated 1.8 billion international tourists by 2030, it is crucial for stakeholders to stay ahead of evolving traveler expectations, embrace sustainable practices, and innovate continuously. Whether in established tourist hubs or emerging markets, understanding these changes and adapting strategies will be key to growth and long-term success.”
The Kearney report noted that the Middle East is well positioned to meet the changing demands. “The region’s significant investments in tourism infrastructure and visionary projects position it well to emerge as a leading destination. Emerging destinations like the Middle East have the opportunity to set new standards and offer unparalleled experiences that fulfill modern travellers’ diverse aspirations.”