We at ITDC read this insightful report with keen interest, of the reshaping of societies, intersecting forces or, “megatrends,” which provide enormous opportunities for those who can identify them and be prepared to embrace them.
Indonesia’s tourism is on the cusp of its own tourism megatrends. In a February 13 online report, Bloomberg also published an extensive article: “Travel Boom Drives Multi-Billion Indonesian Airports Expansion” highlighting another example of how travel and tourism is one of the fastest growing sectors in the country, one that will potentially surpass palm oil by 2020.
In 2017, the worldwide industry accounted for more than 10% of global GDP and with an estimated 1.8 billion international arrivals by 2030. According to the visionary Megatrends report, innovation and reinvention across five sectors are at play and it’s up to industry leaders to learn how to respond to new customer demands and expectations, the next revolution in data capabilities, and heightened business risks.
From the report, here is an overview of the five Megatrend takeaways for Travel & Tourism…
Today’s experience-driven world is fuelled by a desire for personal enrichment, self-direction and community. As people, communities and businesses become more sophisticated about the ways technologies can work in concert with human nature and analogue experiences; new ideas and beliefs are emerging about how best to live a connected life. Online and offline experiences are becoming increasingly integrated, from shopping to socializing to consuming media. With experiences at the core of Travel & Tourism, the sector has the potential to design meaningful, unique, and frictionless and even unplugged journeys that directly respond to these changing values.
The gig and sharing economies are redefining relationships, disrupting industries and creating new expectations for work and life. The growth of tech-powered economies such as the “gig economy” and “sharing economy” continues to redefine relationships, disrupt industries and create new expectations for work, life and culture. Fluidity, autonomy and social engagement are ascendant.
This can be seen in the breakdown of traditional boundaries between work and leisure, and the growing value placed on access in preference to ownership. As new economic and lifestyle trends intensify, the Travel & Tourism sector will see the growth of new opportunities – and face new expectations.
Data, through the Internet of Things and machine learning, has become a driving force of the economy, enabling unprecedented personalisation and connectivity.
The Internet of Things (IoT) and machine learning will deliver unprecedented ability to better understand and predict outcomes, becoming the lynchpin of new applications, strategies and business plans.
These technologies offer tremendous opportunities for the Travel & Tourism sector to provide connected, personalised and integrated customer experiences. Crucially, though, trust and accountability are also required. Data collection via smart devices enables consumer empowerment through access to information – but it also increasingly makes consumers uneasy when it comes to their safety, security and privacy.
Power and demographic shifts from West to East and nations to cities are redefining centres of influence and reshaping global markets, while individuals increasingly mobilise and demand accountability. The coming decades will be marked by changing power dynamics resulting in the emergence of new centres of influence.
A geographical shift toward the East and South, a growing, predominantly Asian middle class, and increasing urbanisation will have dramatic effects on global markets. This power revolution will require the sector to keep up with the demands of the most sought-after consumers, and may also compel them to address the repercussions of these shifts in today’s hyper-connected world.
There is significant potential for Travel & Tourism organisations to embrace new opportunities, but they will also need to deeply understand and develop a point of view on social issues to shape their own future.
As a response to escalating environment risks, consumer awareness has translated into more ethical and resource-efficient lifestyles, and this is driving the decision-making of younger generations. As the availability of resources and health of our planet are increasingly threatened, there is a need for responsibly balancing short and long-term priorities.
The durability of existing business models are called into question, with the private sector facing increased scrutiny and pressure to act. In this context, sustainable business practices can become the core of a robust growth strategy for the Travel & Tourism sector, one that makes safeguarding destinations, environmental leadership and community health integral to the customer experience.
Source: Bloomberg; WTTC