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Travel, Tourism & Hospitality

Global tourism industry - statistics & facts

What are the leading global tourism destinations, digitalization of the global tourism industry, how important is sustainable tourism, key insights.

Detailed statistics

Total contribution of travel and tourism to GDP worldwide 2019-2034

Number of international tourist arrivals worldwide 1950-2023

Global leisure travel spend 2019-2022

Editor’s Picks Current statistics on this topic

Current statistics on this topic.

Leading global travel markets by travel and tourism contribution to GDP 2019-2022

Travel and tourism employment worldwide 2019-2034

Related topics

Recommended.

• Hotel industry worldwide
• Travel agency industry
• Sustainable tourism worldwide
• Travel and tourism in the U.S.
• Travel and tourism in Europe

Recommended statistics

• Basic Statistic Total contribution of travel and tourism to GDP worldwide 2019-2034
• Basic Statistic Travel and tourism: share of global GDP 2019-2034
• Basic Statistic Leading global travel markets by travel and tourism contribution to GDP 2019-2022
• Basic Statistic Global leisure travel spend 2019-2022
• Premium Statistic Global business travel spending 2001-2022
• Premium Statistic Number of international tourist arrivals worldwide 1950-2023
• Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
• Basic Statistic Travel and tourism employment worldwide 2019-2034

Total contribution of travel and tourism to gross domestic product (GDP) worldwide in 2019 and 2023, with a forecast for 2024 and 2034 (in trillion U.S. dollars)

Travel and tourism: share of global GDP 2019-2034

Share of travel and tourism's total contribution to GDP worldwide in 2019 and 2023, with a forecast for 2024 and 2034

Total contribution of travel and tourism to GDP in leading travel markets worldwide in 2019 and 2022 (in billion U.S. dollars)

Leisure tourism spending worldwide from 2019 to 2022 (in billion U.S. dollars)

Global business travel spending 2001-2022

Expenditure of business tourists worldwide from 2001 to 2022 (in billion U.S. dollars)

Number of international tourist arrivals worldwide from 1950 to 2023 (in millions)

Number of international tourist arrivals worldwide 2005-2023, by region

Number of international tourist arrivals worldwide from 2005 to 2023, by region (in millions)

Number of travel and tourism jobs worldwide from 2019 to 2023, with a forecast for 2024 and 2034 (in millions)

• Premium Statistic Global hotel and resort industry market size worldwide 2022-2023
• Premium Statistic Most valuable hotel brands worldwide 2023, by brand value
• Basic Statistic Leading hotel companies worldwide 2023, by number of properties
• Premium Statistic Number of hotels in the construction pipeline worldwide 2024
• Premium Statistic Number of hotel rooms in the construction pipeline worldwide 2024
• Premium Statistic Countries with the most hotel construction projects in the pipeline worldwide 2024

Global hotel and resort industry market size worldwide 2022-2023

Market size of the hotel and resort industry worldwide in 2022 and 2023 (in trillion U.S. dollars)

Most valuable hotel brands worldwide 2023, by brand value

Leading hotel brands based on brand value worldwide in 2023 (in billion U.S. dollars)

Leading hotel companies worldwide 2023, by number of properties

Leading hotel companies worldwide as of June 2023, by number of properties

Number of hotels in the construction pipeline worldwide 2024

Number of hotels in the construction pipeline worldwide as of the first quarter of 2024

Number of hotel rooms in the construction pipeline worldwide 2024

Number of hotel rooms in the construction pipeline worldwide as of the first quarter of 2024

Countries with the most hotel construction projects in the pipeline worldwide 2024

Countries with the highest number of hotel construction projects in the pipeline worldwide as of the first quarter of 2024

• Premium Statistic Airports with the most international air passenger traffic worldwide 2022
• Premium Statistic Market value of selected airlines worldwide 2023
• Premium Statistic Global passenger rail users forecast 2017-2028
• Premium Statistic Daily ridership of bus rapid transit systems worldwide by region 2023
• Premium Statistic Number of users of car rentals worldwide 2019-2028
• Premium Statistic Number of users in selected countries in the Car Rentals market in 2023
• Premium Statistic Carbon footprint of international tourism transport worldwide 2005-2030, by type

Airports with the most international air passenger traffic worldwide 2022

Leading airports for international air passenger traffic in 2022 (in million international passengers)

Market value of selected airlines worldwide 2023

Market value of selected airlines worldwide as of May 2023 (in billion U.S. dollars)

Global passenger rail users forecast 2017-2028

Worldwide number of passenger rail users from 2017 to 2023, with a forecast through 2028 (in billion users)

Daily ridership of bus rapid transit systems worldwide by region 2023

Number of daily passengers using bus rapid transit (BRT) systems as of April 2023, by region

Number of users of car rentals worldwide 2019-2028

Number of users of car rentals worldwide from 2019 to 2028 (in millions)

Number of users in selected countries in the Car Rentals market in 2023

Number of users in selected countries in the Car Rentals market in 2023 (in million)

Carbon footprint of international tourism transport worldwide 2005-2030, by type

Transport-related emissions from international tourist arrivals worldwide in 2005 and 2016, with a forecast for 2030, by mode of transport (in million metric tons of carbon dioxide)

Attractions

• Premium Statistic Leading museums by highest attendance worldwide 2019-2022
• Basic Statistic Most visited amusement and theme parks worldwide 2019-2022
• Basic Statistic Monuments on the UNESCO world heritage list 2023, by type
• Basic Statistic Selected countries with the most Michelin-starred restaurants worldwide 2023

Leading museums by highest attendance worldwide 2019-2022

Most visited museums worldwide from 2019 to 2022 (in millions)

Most visited amusement and theme parks worldwide 2019-2022

Leading amusement and theme parks worldwide from 2019 to 2022, by attendance (in millions)

Monuments on the UNESCO world heritage list 2023, by type

Number of monuments on the UNESCO world heritage list as of September 2023, by type

Selected countries with the most Michelin-starred restaurants worldwide 2023

Number of Michelin-starred restaurants in selected countries and territories worldwide as of July 2023

Online travel market

• Premium Statistic Online travel market size worldwide 2017-2028
• Premium Statistic Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023
• Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
• Basic Statistic Market cap of leading online travel companies worldwide 2023
• Premium Statistic Estimated EV/Revenue ratio in the online travel market 2024, by segment
• Premium Statistic Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Online travel market size worldwide 2017-2028

Online travel market size worldwide from 2017 to 2023, with a forecast until 2028 (in billion U.S. dollars)

Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023

Estimated desktop vs. mobile revenue of leading online travel agencies (OTAs) worldwide in 2023 (in billion U.S. dollars)

Number of aggregated downloads of leading online travel agency apps worldwide 2023

Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Market cap of leading online travel companies worldwide 2023

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Estimated EV/Revenue ratio in the online travel market 2024, by segment

Estimated enterprise value to revenue (EV/Revenue) ratio in the online travel market worldwide as of April 2024, by segment

Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Estimated enterprise value to EBITDA (EV/EBITDA) ratio in the online travel market worldwide as of April 2024, by segment

Selected trends

• Premium Statistic Global travelers who believe in the importance of green travel 2023
• Premium Statistic Sustainable initiatives travelers would adopt worldwide 2022, by region
• Premium Statistic Airbnb revenue worldwide 2017-2023
• Premium Statistic Airbnb nights and experiences booked worldwide 2017-2023
• Premium Statistic Technologies global hotels plan to implement in the next three years 2022
• Premium Statistic Hotel technologies global consumers think would improve their future stay 2022

Global travelers who believe in the importance of green travel 2023

Share of travelers that believe sustainable travel is important worldwide in 2023

Sustainable initiatives travelers would adopt worldwide 2022, by region

Main sustainable initiatives travelers are willing to adopt worldwide in 2022, by region

Airbnb revenue worldwide 2017-2023

Revenue of Airbnb worldwide from 2017 to 2023 (in billion U.S. dollars)

Airbnb nights and experiences booked worldwide 2017-2023

Nights and experiences booked with Airbnb from 2017 to 2023 (in millions)

Technologies global hotels plan to implement in the next three years 2022

Technologies hotels are most likely to implement in the next three years worldwide as of 2022

Hotel technologies global consumers think would improve their future stay 2022

Must-have hotel technologies to create a more amazing stay in the future among travelers worldwide as of 2022

• Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
• Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
• Premium Statistic Inbound tourism visitor growth worldwide 2020-2025, by region
• Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region

Travel and tourism revenue worldwide 2019-2028, by segment

Revenue of the global travel and tourism market from 2019 to 2028, by segment (in billion U.S. dollars)

Distribution of sales channels in the travel and tourism market worldwide 2018-2028

Revenue share of sales channels of the travel and tourism market worldwide from 2018 to 2028

Inbound tourism visitor growth worldwide 2020-2025, by region

Inbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

Outbound tourism visitor growth worldwide 2020-2025, by region

Outbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

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Top 9 Travel Trends & Innovations in 2024

How are the latest trends in the travel industry reshaping trip planning and enhancing tourist experiences in 2024? Explore our in-depth industry research on the top 9 travel trends based on our analysis of 3500+ companies worldwide. These trends include AI, immersive tourism, IoT, contactless travel & more!

Technological advancements in the travel industry meet the growing demand for personalized experiences, safety, and sustainability. Post the COVID-19 pandemic, emerging travel trends mark a shift towards contactless travel through digital payments, self-check-ins, and more. Additionally, artificial intelligence (AI), the Internet of Things (IoT), and blockchain are automating various hospitality and travel-related operations.

For instance, smart hotels make use of internet-connected devices to remotely control rooms. Further, businesses offer virtual tours by adopting extended reality (XR) technologies like virtual reality (VR) and augmented reality (AR). Travel companies also leverage data analytics to personalize marketing. At the same time, traveler assisting solutions like chatbots and voice technology aid them in booking accommodation and optimizing journeys. These travel trends improve the overall profitability of the tourism industry and enable it to make operations more sustainable and safe.

This article was published in July 2022 and updated in February 2024.

Innovation Map outlines the Top 9 Travel Trends & 18 Promising Startups

For this in-depth research on the Top 9 Trends & Startups, we analyzed a sample of 18 global startups and scaleups. The result of this research is data-driven innovation intelligence that improves strategic decision-making by giving you an overview of emerging technologies & startups in the travel industry. These insights are derived by working with our Big Data & Artificial Intelligence-powered StartUs Insights Discovery Platform , covering 2 500 000+ startups & scaleups globally. As the world’s largest resource for data on emerging companies, the SaaS platform enables you to identify relevant startups, emerging technologies & future industry trends quickly & exhaustively.

In the Innovation Map below, you get an overview of the Top 9 Travel Trends & Innovations that impact travel & tourism companies worldwide. Moreover, the Travel Innovation Map reveals 3 500+ hand-picked startups, all working on emerging technologies that advance their field.

Top 9 Travel Trends

• Artificial Intelligence
• Immersive Tourism
• Internet of Things
• Contactless Travel
• Big Data & Analytics
• Post-Pandemic Tourism
• Tour Premiumization

Click to download

Tree Map reveals the Impact of the Top 9 Travel Trends

Based on the Travel Innovation Map, the Tree Map below illustrates the impact of the Top 9 Travel Industry Trends in 2024. Startups and scaleups are enabling contactless travel using technologies like biometrics, radio-frequency identification (RFID), and near-field communication (NFC). This is due to increasing health and hygiene concerns post the pandemic. The use of AI in tourism ensures hassle-free trip planning while AR and VR allow tourists to virtually visit various locations and excursions. IoT increases visibility into tourism industry operations and allows passengers to track their luggage more efficiently. Further, the demand for personalized and luxurious travel is rising. Several startups enable recreational space travel as well as offer sustainable travel options to passengers.

Global Startup Heat Map covers 3 635 Travel Startups & Scaleups

The Global Startup Heat Map below highlights the global distribution of the 3 635 exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals that the US, Europe, and India see the most activity.

Below, you get to meet 18 out of these 3 635 promising startups & scaleups as well as the solutions they develop. These 18 startups are hand-picked based on criteria such as founding year, location, funding raised, and more. Depending on your specific needs, your top picks might look entirely different.

Interested in exploring all 3500+ travel startups & scaleups?

Top 9 Travel Trends in 2024

1. artificial intelligence.

Hotels employ intelligent chatbots, powered by AI, to provide quick and personalized responses to traveler inquiries. These chatbots simplify the booking process and gather customer reviews, aiding potential travelers in making informed decisions. Moreover, AI-based robots enhance the customer experience by automating hotel disinfection and delivering room service.

At airports, these robots guide travelers and assist with luggage handling. Facial recognition technology, driven by AI, expedites identity verification at airports, enhancing security and offering a swift alternative to traditional methods. Startups are developing AI-powered trip planning solutions, optimizing journeys, and personalizing travel experiences.

Travel Professor develops a Travel Chatbot

UK-based startup Travel Professor offers an AI-enabled chatbot for travelers. The startup’s chat widget software monitors multiple flight deals and notifies users when their preferences match. It also provides travel destination recommendations and flight price alerts. This allows travelers to book economical flights and have a budget-friendly tourism experience.

Pneuma Travel facilitates Travel Planning

US startup Pneuma Travel develops a voice-assisted digital agent, Sarah , to streamline the process of travel planning. This assistant, powered by AI, excels in arranging flight and accommodation bookings and assists travelers in discovering a variety of activities. Sarah , available round the clock, provides continuous support for all travel-related inquiries.

Moreover, Sarah customizes travel options according to individual preferences and budgetary constraints. The agent further enhances the travel experience by providing insights into local attractions in unfamiliar cities. Importantly, Sarah enables real-time modifications to travel plans, in compliance with specific airline policies, thereby minimizing waiting times for users.

2. Immersive Tourism

Immersive tourism caters to the growing demand for meaningful experiences among travelers, leveraging AR, VR, and mixed reality (MR). VR simulates original locations through a computer-generated environment, allowing tourists to virtually explore destinations. It provides travelers with a comprehensive 360-degree tour of points of interest.

AR enhances the travel experience with interactive elements such as navigation maps and ads. Travel companies employ AR and VR-based gamification to heighten tourist attractions. Moreover, these technologies enable hotels and resorts to present amenities and rooms in an engaging, interactive manner.

VR Travel Expo offers VR-based Travel Plans

US startup VR Travel Expo develops a VR travel application to transform the way people research and book travel. The application enables users to plan their vacations more efficiently. It provides an engaging platform for users to explore and expand their knowledge of the world. Moreover, it employs 3D geospatial technology that creates real-time digital twins of the world. This further enhances the travel planning experience.

AR Tour makes AR Glasses

Italian startup AR Tour offers AR-powered tours. The startup’s AR glasses superimpose reconstructed images of archaeological ruins to show how the site originally was. Its tour informs the tourists about the site’s history and significance via an audio-visual package. Moreover, the startup designs lightweight AR glasses to prevent motion sickness among tourists, improving convenience.

3. Internet of Things

IoT generates ample data that tourism companies leverage to personalize services in their subsequent visits. Hotels use IoT sensors to enable smart rooms that automate room lighting, temperature, and ambiance control, enhancing guest comfort. These sensors adjust appliances in vacant rooms, conserving energy and reducing the building’s carbon footprint.

Startups harness IoT to deliver location-specific information to customers, including real-time luggage tracking via IoT tags, minimizing lost items. Airlines also incorporate IoT-based solutions into seats, monitoring passenger temperature and heart rate for proactive health management.

Altitude enables Smart Hotels

New Zealand-based startup Altitude creates an IoT-based hotel software and hardware to develop smart hotels. The startup makes self-service kiosks to automate reservations, room up-gradation, payments, as well as check-in and check-out. Its hotel management platform further enables contactless engagement with guests. Additionally, Altitude’s mobile keys allow guests to open doors using mobile phones, providing convenience and saving time for travelers.

Smart Tour provides Smart Itineraries

Brazilian startup Smart Tour offers smart itineraries using IoT and quick response (QR) codes. The startup recommends travel routes and destinations based on the user’s preference in real-time. This facilitates a seamless experience for travelers. Besides, the user-generated data enables tourism managers to better understand consumer behavior and indulge in proximity marketing. The startup also offers a contact tracing solution to monitor COVID-19 infected travelers and ensure public safety.

4. Contactless Travel

Travelers benefit from contactless recognition technologies like retina scanning, which replace traditional travel documents, speeding up passenger identification and reducing airport queues. QR codes offered by travel companies allow tourists to access relevant information on their mobile devices, enhancing engagement.

Hotels have introduced contactless self-check-ins, enabling visitors to arrange services before arrival. Additionally, contactless payment modes are available in hotels and restaurants for swift and secure transactions. Moreover, wearable devices are transforming the travel experience by providing real-time notifications and touch-free access to services and information.

Loxe designs Smart Hotel Keys

US-based startup Loxe makes smart mobile keys for hotels. The startup’s smartphone app replaces key cards with contactless mobile keys that allow users to unlock doors using smartphones. It also reduces operational costs incurred in the manufacturing of conventional keys or plastic cards. Moreover, the startup designs a Bluetooth retrofit module that converts normal door locks into mobile-ready door locks. This allows hotel owners to easily convert their existing locks into smart ones without additional expenses while improving guest safety and convenience.

Avendi provides Contactless Payment

Singaporean startup Avendi offers contactless and cashless payments for travelers. The startup allows tourists to accumulate expenses throughout their trip and pay at the end of the journey. Avendi’s app utilizes QR codes to add all the billed expenses and shown through its dashboard. The user settles the tab amount in the preferred currency, preventing the inconvenience of cash withdrawal or credit card payments.

5. Big Data & Analytics

Big data empowers travel companies with customer trends for strategic marketing. Analyzing traveler behavior, they offer tailored recommendations for hotel bookings, cab hires, flight reservations, and ticket purchases.

Predicting future demand is another advantage of big data and analytics, helping hotels and airlines identify peak periods to optimize revenue. Advanced analysis of transactional data aids in detecting cyber fraud, and safeguarding sensitive customer information such as credit card details and biometric data.

CheckandPack creates a Travel Platform

Dutch startup CheckandPack offers a big data travel platform. It runs marketing campaigns to gather traveler data and understand tourism trends. Based on these insights, the platform enables businesses to approach travelers with a customized appeal. It also provides travelers with holiday planning.

3Victors provides Travel Data Analytics

US-based startup 3Victors offers travel data analytics. The startup’s product, PriceEye Suite , proactively monitors the prices of numerous airlines to provide insights into competitor prices. It creates a dashboard to display travelers’ location of interest, allowing travel airlines to better manage their revenue and pricing strategy.

6. Post-Pandemic Tourism

Post-pandemic tourism focuses on safe, sustainable, and flexible travel options, responding to evolving traveler preferences and health guidelines. Enhanced health and safety protocols, including regular sanitization and contactless services, become standard in airlines and hotels, ensuring traveler confidence.

Destinations and operators emphasize outdoor and less crowded experiences, catering to a heightened demand for nature-based and wellness travel. Flexible booking policies and trip insurance gain prominence, offering peace of mind amid uncertainties. Sustainable travel gains traction, with tourists and businesses prioritizing environmental impact and community well-being.

GOPASS Global enables Pre-travel Risk Management

Singaporean startup GOPASS Global provides a travel risk analytics platform against COVID-19. It analyzes the biosecurity risk elements involved in a trip, such as border restrictions, quarantine requirements, airport type, and airline transit points or seating in real-time. This allows travelers to assess risk factors and plan their trips accordingly.

Moreover, the startup creates world maps displaying information regarding COVID-prone areas, testing areas, and vaccine coverage. This provides travelers with a preview of the current situation, allowing them to ensure safety during business and leisure travel.

Workcations enables Work from Anywhere

Indian startup Workcations provides properties at tourist destinations for remote-working individuals. It offers amenities like internet connectivity, food, and a quiet ambiance, allowing tourists to work in a peaceful environment without hindrance. This increases employee productivity, motivation, and retention.

7. Tour Premiumization

Hyper-personalization in travel experiences is on the rise, with tourists eager to immerse themselves in diverse cultures. Luxury travelers enjoy tailored experiences and intuitive services through tour premiumization. Health and wellness packages offered by travel startups help tourists unwind.

These retreats enhance health and offer detoxifying food options. Space tourism is another exciting development, offering leisure or research trips to space. Lastly, travel startups are fostering customer loyalty and building strong relationships through membership or subscription models.

STOKE provides Space Tour

US-based startup STOKE facilitates space travel using everyday-operable rockets. The startup’s rockets are reusable and deliver satellites to any desired orbit. This enables on-demand access to space, paving way for space tours for exploration, recreation, and research. The startup also emphasizes the economical and rapid development of its hardware for feasible spacecraft launches, advancing space tourism.

Origin offers Travel Personalization

Dutch startup Origin provides premium travel personalization to tourists. The startup utilizes machine learning and travel curators to plan creative vacations. It also arranges flights and accommodation for travelers. Further, the startup measures the carbon output of itineraries and offers sustainable tourism options.

8. Ecotourism

Traveling responsibly minimizes tourism’s environmental impact and supports local communities’ well-being. Ecotourists strive to reduce their carbon footprint during their journeys. Startups contribute by developing sustainable transport, ecolodges, and solar-powered resorts.

Airline passengers have the option to offset carbon emissions during flight bookings. Local tourism stimulates small businesses economically and creates job opportunities. It also emphasizes minimum littering, which lowers pollution and the time spent on cleanups.

Jet-Set Offset simplifies Flight Carbon Offset

US-based startup Jet-Set Offset creates a carbon-offsetting platform for air travel. The startup partners with non-profit organizations working against climate change and connects them with travelers. Each time travelers book flight tickets via the startup’s platform, Jet-Set Offset contributes a certain amount per mile for their journey to environmental organizations. This way, the passenger’s journey promotes mileage-based donations to offset carbon emissions.

The Green Stamp facilitates Ethical Wildlife Tour

Dutch startup The Green Stamp provides a platform to book ethical wildlife tours. It curates tours based on the tourists’ inclinations toward certain locations or wildlife. Exploration of these projects allows travelers to indirectly contribute to their cause as these wildlife projects donate to the welfare of local communities and the environment.

9. Blockchain

Blockchain provides the travel industry with operational transparency and security. Traceable payments, particularly for international travel, are a key application, that fosters trust among parties involved in transactions.

Automation and enforcement of agreements in travel insurance and supplier contracts are achieved through smart contracts. This strengthens reliability and cuts administrative costs. Travel firms establish customer loyalty programs where points are exchanged for cryptocurrency. Lastly, blockchain increases data storage security, reducing the risk of information leaks.

Upswing facilitates Guest Profiling

Indian startup Upswing creates AURA , a blockchain-powered platform for guest profiling. It provides a holistic view of guests, their preferences, and purchase patterns. The platform associates a score with each guest and suggests improvements in their service. This facilitates hotels to provide a personalized experience to their guests and, in turn, increase sales.

UIQ Travel develops a Solo Traveling App

US-based startup UIQ Travel develops a blockchain-based app to connect solo travelers. It discovers people with shared interests and suggests tours or attractions. Such hyper-personalized recommendations assist in experience discovery and also increase traveler engagement.

Discover all Travel Trends, Technologies & Startups

Tourism, although severely impacted by the pandemic, now continues to rapidly grow across the globe. Post-pandemic trends indicate an increasing emphasis on hygiene and safety during travel. The industry is witnessing the widespread adoption of disruptive technologies like AI, XR, IoT, and blockchain. The travel industry utilizes big data to understand traveler trends for targeted marketing. The transition to ecotourism is accelerating as businesses integrate zero-emission transit and carbon offset programs to reduce their carbon footprint.

The Travel Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation and startup scouting process. Among others, personalization, decarbonization, and travel safety will transform the sector as we know it today. Identifying new opportunities and emerging technologies to implement into your business goes a long way in gaining a competitive advantage. Get in touch to easily and exhaustively scout startups, technologies & trends that matter to you!

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What Are the 8 Sectors of Tourism?

By Anna Duncan

Tourism is one of the largest and fastest-growing industries in the world. It plays a significant role in economic development and job creation in many countries.

The tourism industry consists of several sectors, each with its own unique characteristics and offerings. In this article, we will discuss the eight sectors of tourism.

1. Accommodation

The accommodation sector is one of the most critical sectors of tourism. It includes all types of lodging facilities such as hotels, motels, resorts, lodges, guesthouses, and bed & breakfast establishments. These facilities provide visitors with a place to stay while they are away from home.

2. Food and Beverage

The food and beverage sector is another essential component of the tourism industry. It includes restaurants, cafes, bars, nightclubs, and other establishments that provide food and drinks to tourists.

3. Transportation

The transportation sector is responsible for moving tourists from one place to another. It includes airlines, trains, buses, taxis, rental cars, and other modes of transportation that visitors use to get around.

4. Travel Trade

The travel trade sector includes travel agencies that help tourists plan their trips by providing them with information on destinations, accommodations, transportation options, and tour packages.

5. Adventure Tourism

The adventure tourism sector offers activities such as hiking, camping, skiing/snowboarding on mountains or water sports including surfing or scuba diving to thrill-seekers who are looking for an adrenaline rush while on vacation.

6. Events and Conferences

The events and conferences sector provides facilities for large gatherings such as meetings or conventions that bring together people from different places to exchange ideas.

7. Attractions

The attractions sector includes theme parks like Disney World, museums, historical sites, zoos, and other places that tourists visit for entertainment and education.

8. Tourism Services

The tourism services sector includes companies that offer visitor-related services such as tour guides, translators, photographers, and other support services to enhance the visitor’s experience.

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5 innovations transforming the travel industry

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Stay up to date:, supply chain and transport.

The 21 st century consumer is very different from previous generations. We are tech savvy and not only do we expect service quality, we want an experience to go with it. Given our unlimited access to information, we know what the gold standard is, and more importantly, we are open to sharing our experiences on social media and review platforms.

Although the travel industry is booming, with over 1.1 billion international global travelers in 2014, I haven’t met one person who has not complained about an experience they have had while traveling. So how can the industry make the experience more pain-free? There are obviously factors that are beyond the control of the industry, such as the weather, but like most other industries, there is room for innovation.

While many people are aware of some of the interesting innovations that are changing the way we experience travel, many are still under the radar:

• To share or not to share: The most obvious change in the last few years in hospitality is the sharing economy. The face of this movement is Airbnb, which is now valued at $25 billion, but there are many other companies that are playing the game, such as Couchsurfing, Feastly, Knok, Vayable or even Wimdu. While there are some regulatory issues around this new consumer model, it is providing accommodation to travelers who may not otherwise be able to afford it.
• Keep track of your bag: My biggest concern when I travel is losing my suitcase, and being left stranded for a business meeting whilst in sweatpants. But new innovations are changing this. Why, if we have smartphones, can’t we have smart suitcases? Well now we can. Different players are looking at different solutions. While airports like Las Vegas’ McCarran Terminal 3 are starting to attach a radio frequency identification chip to suitcases to ensure they don’t get lost, Bluesmart has created a carry on suitcase which can be controlled and tracked using an app on your phone.
• Let’s stay connected: We live in a hyperconnected world, where in-flight Wi-Fi was bound to happen – and it did. Although a number of airlines offer internet to passengers, it is not a perfect science and it is most definitely not free. But we have a choice which we didn’t have a few years ago. Airlines are also adding power outlets so that passengers can charge their devices throughout their flights and not arrive at their destination with a “dead” phone.
• Do it yourself: Today, I barely talk to anyone when I go through the airport. With the available technology, I am able to book my flight online, have my boarding pass on my phone, check in with machines, go through automated clearance gates and even validate my boarding pass to board the plane. These innovations have made navigating airports much more efficient – if you are tech savvy. Still, given that security is front of our minds, gate and security agents are present to make sure travelers can have a seamless experience.
• Guiding your experience: Guidebooks like Lonely Planet used to be the traveler’s bible – but have now become irrelevant in a world of websites and crowdsourcing sites which provide us with advice and reviews on hotels, tours and restaurants. Traditional online Travel Agencies like Expedia and Priceline have provided alternatives. But new players are on the market too: Peek puts a tour guide in your phone, while HotelTonight is a last minute hotel booking tool. Other players are also thinking differently about the issue, such as AnyRoad, which helps us connect to incredible guides and avoid travel agencies.

While these innovations are now the new norm, ten years ago, they would have been unheard of. As we look forward into the next decade, what innovations might continue to transform the way we travel?

The Annual Meeting of the New Champions 2015 is taking place in Dalian, China, from 9-11 September.

Have you read? The future of Chinese travel How to attract the tourists of tomorrow

Author: Tiffany Misrahi, Community Lead, Travel & Tourism Industries , World Economic Forum

Image: A mobile phone is connected to Wi-Fi network on board of the Norwegian Airways Boening 737-800 at Berlin Schoenefeld Airport April 2, 2015. REUTERS/Pawel Kopczynski

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How does the travel industry actually work?

You may be new to the travel industry, investigating a career in travel or just trying to research a bit about the industry ahead of your next adventure. There’s a mass of information out there and it can be overwhelming to wrap your head around. Lucky for you, our team of travel experts have been hard at work to give you a bird’s eye view of the travel industry as a whole .

The travel industry has gone through many evolutions with a variety of external factors contributing to who has access to travel, where they are travelling to and what the travel industry looks like overall.

A few important travel industry statistics

Let’s start by setting the scene…the travel industry is HUGE and the numbers certainly prove it .

Source: Statista

A brief history of the travel industry

We are fortunate to live in a globalised world meaning that travel is reasonably accessible. At the press of a button, most people are able to book a flight and jet off to wherever our wallets will take us. 

But, it hasn’t always been so easy. To help you understand how the industry has developed to the point it has today and where it might head in the future, here is a travel industry timeline.

Before the mid 20th century, travel was reserved for the extremely wealthy. It was expensive and it was time-consuming (can you imagine having to travel on a boat for 3 weeks…. or 3 months!). The concept of a ‘travel industry’ had not yet formed; it was more a collection of hotels, restaurants and coachlines who all operated independently from one another.

1950 – 2000

After the Second World War, travel suddenly started to become accessible for many more people due to the development of commercial airlines. Although they were originally still very expensive,  costs started to reduce over the years and more people were able to invest in seeing the world.

The industry grew and grew, and many saw a gap in the market for people wanting to travel but not having the knowledge, or time to organise it themselves – travel agents and tour operators started to establish themselves!

2000 – 2019

The travel industry has undoubtedly boomed, and the way that people travel is almost unrecognisable from the early 20th century. With smartphones, we now have unlimited apps at our fingertips, specifically designed to make every aspect of travel easier. 

For travellers, there are websites and apps to help them plan their travel, help them while travelling and to give them inspiration for their next trip! For travel agents and tour operators, itinerary software has streamlined much of their processes, from itinerary planning to customer relationship management. Now all this technology is amazing, and helps our lives in many ways, but has also resulted in fragmentation of the travel industry with travellers choosing to plan and manage their trips themselves or online increasingly.

 2020 and the future of travel

Due to the pandemic and the pause in travel, both countries and travellers worldwide re-evaluated travel and how it should be conducted. Countries who experienced over-tourism considered ways to encourage more sustainable travel in their destinations . For travellers, Covid triggered them to start thinking about their bucket list destinations and working with travel designers to plan and book them. This resulted in tourism returning with a significant rise in 2022, although the industry is indicating it might be plateauing in 2023/2024 .

How does the industry actually work?

You may be thinking to yourselves, how does travel actually function as an industry . How does it all fit together? You are not alone, it’s a complex industry notorious for its jargon, terminology and abundance of acronyms!

As you can see there are a few key players to remember:

Tourism Boards and Government organisations: Usually run or overseen by local or national governments. These boards set in place regulations for the other players in the industry. They also market countries or cities as tourist destinations for potential travellers

Suppliers/Vendors: Suppliers (or Vendors) are the hotels, the restaurants and the activity providers that travellers eat, stay and partake in on their travels. Travellers may liaise with and purchase from suppliers directly if they are organising their own travels, or communications with suppliers may be managed entirely by a middle-man (AKA, the tour operator, travel agent, travel wholesaler or DMC).

Tour Operators: Tour Operators design itineraries, often tailor made, for their customers, liaising with suppliers to organise and book the travel itinerary (partially or start to finish)

Travel Agents: Travel agents liaise with tour operators to book packages and tours for their clients. As such, tour operators will often focus on a certain destination or market area, whereas travel agents can focus on selling the whole world – with a comprehensive list of suppliers in their books

Destination Management Companies (DMC’s) : Organisations that specialise in offering tours, logistics, and planning services for a particular destination. They often re-sell their services to tour operators

Ground Handlers : A ground handler takes care of some day to day operations and tour management such as picking customers up from the airport and arranging sightseeing tours

Associations and Memberships: These organisations exist to provide support, promotion, and opportunity to other players in the travel industry. All of them operate with a slightly different mission, whether it’s to promote sustainable business practices, celebrate the luxury travel market or to connect travellers with LGBTQ friendly travel businesses

Travellers: Arguably the most important cog in the wheel. Everyone in the tourism industry sets out to meet travellers’ needs – to ensure they keep coming back for more!

The beauty of the travel industry supply chain is how all of these key players work together creating one of the worlds biggest industries.   

 Interested to learn more?

The ultimate A-Z glossary for the Travel industry. Understand the different terms, jargon and acronyms.

For a taste of the luxury end of travel, explore our list of Exclusive luxury travel communities

To discover more about sustainable tourism, download our ebook focusing on how to elevate travel design with sustainability.

Travel designers- meet the influencers you should work with.

Understand the role travel influencers play in the industry and why tour operators should be following, interacting and collaborating with them. Explore eight global travel influencers who are inspiring travellers daily.

Tourism news websites you can trust

In the tourism industry it can be hard to differentiate the reliable travel news sources from the not-so-trustworthy ones. In this blog we summarise the top travel news websites that tour operators, travel agencies and DMC’s should pay attention to.

How to set your team up for success when introducing new software

Making changes happen is hard. Especially when it is something that will create a significant impact on the way you work, like new software. We discover what change management is and how it can assist you, your leaders and your team in creating new processes that will make you more successful in the long run. Is it time for a change?

How can tour operators contribute to sustainable tourism?

Sustainability is a key pillar of tourism, with a growing number of people interested in travelling responsibly and sustainably. We explore the easy ways in which your tour operator business can make a positive change. You can help to encourage economic growth and protect our environment whilst also watching your business flourish… could it get better?

The travel industry turned upside down: Insights, analysis, and actions for travel executives

Although the travel industry is no stranger to hardship and has been seriously damaged by the pandemic, we have already seen strong leadership actions that are keeping companies and their people above water while remaining focused on long-term growth. Many players have acted quickly to retain customer goodwill, tap into new sources of liquidity, and work effectively with unions to agree on voluntary redundancy programs. We have also seen innovation and a focus on customer experience. These examples illustrate the travel industry's strength that will help it chart a way forward through these challenging times.

Key insights of the report

To see how the industry has been affected by COVID-19 and how it might thrive in the future, we have synthesized ongoing Skift and McKinsey analyses and interviewed travel executives and major corporate-travel buyers. In so doing, we observed five, perhaps counterintuitive, themes:

• We see signs of latent demand for travel. Customers are interested in traveling again when restrictions lift, even willing to do so before a vaccine is available at scale. China—which, as of the time of writing, has effectively controlled the spread of the virus—is seeing both the leisure and business travel segments recover domestically. And led by Germany, Europe shows encouraging first signs of recovering travel demand. Other geographies, including the United States, have not yet effectively controlled the spread of the virus; even so, we see a considerable increase in searches and advance bookings.
• Travelers are keen to travel but feel restrained. Indeed, due to necessary public-health measures and safety precautions—such as quarantines, closures, and other restrictions—the leisure space may be curbed by the inability to do anything meaningful at a destination. Similarly, many business travelers who are ready to fly again may be limited by corporate travel policies and companies’ understandable focus on duty-of-care obligations to employees.
• The working-from-anywhere trend could permanently blur the lines between leisure and business travel. Digital nomads and “bleisure” travel predate COVID-19. However, the pandemic and the rise of remote work seem to accelerate growth of these travel segments. Players across the travel value chain—including destinations, corporate travel managers and hotels —need to think through key implications.
• Nonprice factors have become more important to customers. The industry needs to cover other terrain before “demand stimulating” its way out of the crisis and instead restore traveler confidence. The travel industry is only as strong as its weakest link, so customers need to be comfortable with all touchpoints in their journeys.
• Self-reported sentiments may not accurately reflect preferences or behavior, despite being easy to gather, and especially in the depth of a crisis. For this reason, travel companies cannot rely only on stated preferences; they need to improve the way they keep a pulse on travelers’ actions through leading indicators.

Grow your way out of the crisis: Four actions for travel companies

This report culminates with a set of four critical actions for travel companies to take, regardless of sector. With these four actions, we believe, travel companies can emerge from this period not just intact, but better than before.

• First, travel companies should seek to understand their customers as microsegments, not monoliths. Travel is, after all, deeply personal.
• Second, travel companies should widen their view of what constitutes the customer journey and design the next set of thoughtful customer-experience interventions.
• Third, companies should design new—perhaps unconventional partnerships—that restore travelers’ confidence and set this global, fragmented, capital-intensive industry on track to financial sustainability.
• Lastly, travel companies should seize this reset moment to embrace and preserve their crisis-induced agility and nimbleness for the long trip ahead.

While the coming months bring with it a lot of uncertainty, opportunities remain for those who can make sense of the noise and seize the reset moment accordingly. Whatever your interest in the industry—from investor to concerned travel enthusiast—our collective findings tell all you need to know about the state of travel: the roadblock it hit and how players can find their way to recovery.

Download the full report, The travel industry turned upside down: Insights, analysis, and actions for travel executives (PDF–6.4 MB).

Seth Borko is a senior research analyst at Skift and is based in New York. Wouter Geerts is a senior research analyst at Skift and is based in London. Haixia Wang is the VP of research at Skift and is based in Seattle.

McKinsey & Company provided analytical support and industry perspectives to this research. As supporting contributors, Jasperina de Vries is a consultant in McKinsey’s New Jersey office, Vik Krishnan is a partner in the San Francisco office, Ellen Scully is a consultant in the Seattle office, and Jules Seeley is a senior partner in the Boston office.

The authors would like to thank the following travel executives and corporate travel managers who generously shared their perspectives through interviews with us: Alex Alt (Oracle Hospitality), Andy Cassidy (AMC Networks), Arne Sorenson (Marriott International), Brett Tollman (The Travel Corporation), Chris Nassetta (Hilton), James Thornton (Intrepid Travel), Keith Barr (InterContinental Hotels Group), Mandy Chan (The Mozilla Corporation), Matt Roberts (Vacasa), Pam Booth (Impellam Group), Steve Kaufer (Tripadvisor), Taimur Khan (Salesforce). They also wish to thank the corporate-travel managers who were consulted on condition of anonymity for theirs contribution.

They also wish to thank IATA, WTTC, trivago, ADARA, and OTA Insight for making their data available.

The authors wish to thank Skift’s Rafat Ali, Carolyn Kremins, Tom Lowry, and Dennis Schaal and McKinsey's Chris Bailey, Urs Binggeli, Margaux Constantin, Alex Cosmas, Melissa Dalrymple, Alex Deshowitz, Alex Dichter, Will Enger, Guenter Fuchs, Dwayne Henclewood, Evgeni Kochman, Ryan Mann, Alicja Mokwinska, Esteban Ramirez, Steve Saxon, Nathan Seitzman, Jonathan Steinbach, Peimin Suo, Jillian Tellez, Nina Wittkamp, and Jackey Yu for their contributions to this report.

Finally, the authors wish to thank Skift’s Joanna Gonzalez, Brian Quinn, Dawn Rzeznikiewicz, Kat Townsend, and Danielle Wagstaff and McKinsey’s Kelly Kolker, Rene Nunez, Karen Schenkenfelder, and Anchit Sood for their creative, editorial, external relations, and communications support.

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12 examples of digital transformation in the travel industry

Alexander Ragin

Updated May 16, 2024 • 13 min read

In this article

What is digital transformation?

Why is digital transformation important for the travel and tourism industry, 12 examples of digital transformation in the travel and tourism sector, our experience.

Successful businesses have been adapting to new technologies for decades, but the COVID-19 pandemic propelled digital transformation like we’ve never seen before. For the travel industry, the demand from customers for more efficient and remote tools cannot be ignored. Nowadays, customers expect nearly all of their services digitally, from researching destinations to booking flight tickets and managing every aspect of the entire trip. Travel and tourism industry must keep up in order to thrive.

Thankfully, there are plenty of opportunities to adopt digital solutions and strategies that can satisfy those needs while still growing your profit.

If you are not yet familiar with the term, digital transformation in travel industry is the adoption of new technologies by a company, which leads to changes in how the company operates.

Think of taxi services. Before the growth of the internet the only way to get a cab was to call an operator via phone. Nowadays there’s no need for an operator at all — you can order an Uber with just a few taps on the screen.

Digitalization is happening everywhere in many industries, and the travel and tourism sectors are no exception. According to predictions published on Statista , worldwide spending on digital technologies and services will continue to increase: it has doubled since 2017 and will triple by 2025.

There are multiple reasons for this growth.

• The COVID-19 pandemic. This is a massive contributing factor, rapidly increasing the need for remote services and digital operations.
• Advancements in technology. The rise of cloud computing, big data analytics, and artificial intelligence has made it easier for companies to innovate and improve their services.
• Competitive pressure. As more companies adopt digital technologies, there's a race to stay ahead in offering innovative solutions and enhancing customer experience to retain market share.

The travel industry is no stranded tourist when it comes to digital transformation. However, the pandemic massively accelerated the need for companies to evolve their tech capabilities at light speed. Within the travel sector, one of the hardest-hit areas, it quickly became clear — digitize or get left behind.

During lockdowns, our collective appetite for on-demand convenience skyrocketed as we managed everything from food to work to healthcare remotely. Travel companies watched as people grew accustomed to booking appointments, paying bills, and accessing services from their devices with just a few taps.

In our post-pandemic reality, customer expectations for seamless digital journeys are through the roof. In today's on-demand economy, modern travelers not only want but simply expect the ability to research destinations, compare options, book travel, and handle documentation from the comfort of their couch. Digital native companies catering to these demands gain a competitive advantage over competitors who are still relying on clunky legacy processes.

But it's about more than just pleasing customers. Introducing new digital solutions can make your work easier — any travel company will benefit from automating manual and laborious business processes.

Mobile apps

Mobile apps should be a top priority if you want to meet modern travelers where they are — on their smartphones. In fact, according to Booking.com, 80% of travelers use a mobile app when researching a trip, and 50% of accommodation searches and bookings are made on mobile devices.

What is the true power of your app? It elevates the entire tourism cycle from start to finish. Keep clients looped in with push notifications while letting them breeze through check-ins using biometrics and digital wallets. Streamline the customer journey from destination research and booking to in-location exploration.

In the mobile era, a standout app is your key to fostering unwavering loyalty and creating raving brand ambassadors.

Personalization

In today’s world, travelers demand more than just a trip; they want experiences crafted just for them. By diving into data like booking habits, preferences, activity on social media platforms, and real-time location, travel agencies and tour operators can gain insights into individual traveler behavior and patterns, uncovering what they want.

Armed with this knowledge, creating personalized travel plans, stays, deals, and one-of-a-kind experiences has never been simpler. And it doesn’t stop with planning — think bespoke tours, on-demand concierge, and dining that feels made-to-order.

By embracing this trend of digital tourism, you can stand out from the crowd, winning your customers' minds and hearts and making sure they always come back for more.

Get deep insights into what customers like, how they behave, and emerging trends. By analyzing large amounts of data gathered from different sources like online bookings, social media, and customer feedback, you can tailor your marketing strategies and recommendations more precisely than ever.

A great example of big data in use is how online travel agencies (OTAs) and metasearch engines provide personalized travel recommendations. These platforms, using advanced analytics tools and machine learning algorithms, engage in extensive data collection to gather and analyze a wealth of information By understanding a traveler's preferences, such as favorite destinations, budget, travel style, and past trips, OTAs can present options that are more likely to be booked.

And your travel company is no different. By leveraging big data, you can offer the right products at the right price — and to the right customers at the right time.

Dynamic pricing

Dynamic pricing has become a key strategy in the travel and tourism industry, not just for hotels and flights but also for tours, activities, and other travel experiences. By using advanced algorithms and analyzing data in real-time, you can change prices based on factors like demand, season, competitor prices, and customer behavior.

For tours and activities, dynamic pricing is especially useful for managing spots available and adapting to changes in the market. For example, a popular guided city tour might change its prices based on the time of day, day of the week, or even the weather. Prices might go up during busy times or when there is a lot of interest and go down during slower times or when the weather is bad to encourage more bookings. Discounts might also be offered at the last minute to fill any remaining spots, ensuring that the tour operates at full capacity.

By using dynamic pricing, you can find the right balance between making the most money and attracting customers who are looking for a good deal. And in the end, this ultimately boosts your profitability and competitiveness.

Artificial intelligence (AI)

Today's consumers demand on-demand service and intuitive digital experiences. This is where AI really shines for travel brands. Offer smart virtual assistants and chatbots that understand the context to deliver personalized support 24/7 — handling booking inquiries, providing recommendations, and troubleshooting issues via instant messaging. But AI's impact goes far beyond just customer service — it can transform your entire operation.

By automating routine tasks, you can cut down on manual mistakes, work more efficiently, and use resources better. For instance, with AI-powered scheduling systems, you can optimize how you allocate your staff based on predictions of demand and when your employees are available. This ensures you have the right personnel ready to meet customer needs while also keeping labor costs down. On the back-end, AI-powered sentiment analysis lets you proactively detect and address service issues before they escalate.

With this approach, you can lead the AI revolution and outpace competitors in no time.

While mobile and AI modernize customer touchpoints, immersive digital technology like virtual reality (VR) and augmented reality (AR) lets you inspire major wanderlust right from the start. With VR, explorers can travel to any destination for first-hand virtual tours of hotels, cruise ships, local attractions, and more. Let them roam 360° to get a natural feel for amenities, room layouts, surrounding scenery, and nearby sights.

Then, deploy AR to infuse the physical travel experience with digital wayfinders, translation tools, and interactive property maps that reveal hidden location details. Simply by pointing their smartphones, customers can immerse themselves in a destination's stories, culture, and mysterious backstories.

Capitalize on VR and AR to ignite curiosity, build excitement, and let travelers truly preview the adventure before arriving.

Faster payments

Your travelers want a smooth and safe payment experience when booking their dream vacations. The worry about online transactions is a thing of the past; now, customers gladly use convenient digital wallets like Apple Pay and Google Pay, which simplify the checkout process. Travelers can easily book their trips with just a few taps on their smartphone, confident that their payment details are protected.

As a Stripe-certified company, we understand the importance of a dependable and efficient payment gateway in the travel industry. By integrating Stripe, we can help you offer various payment options, including popular installment plans. This flexibility makes expensive travel packages more affordable to more people, leading to increased bookings and happier customers.

By making the payment process smoother and focusing on high-level security, you build strong trust with your customers — and this trust leads to more online sales and supports long-term growth

Ready to start your company’s digital transformation journey?

We’re here to help. Contact us to develop the best possible solutions for your travel company.

Biometry is another emerging technology in the travel and tourism industry, especially in the aviation sector. By using advanced biometric solutions like facial recognition, fingerprint scanning, and iris recognition, airports can make the process of identifying and verifying passengers quicker and more secure.

No more fumbling with passports or boarding passes — these technologies allow for an easier, touch-free experience, reducing wait times, cutting down on errors, and increasing passenger satisfaction. And by integrating biometrics with other digital systems, like baggage tracking and border control, airports can build a smart and connected environment that improves security and efficiency during the entire travel process.

The recent acquisition of Vision-Box by Amadeus, a leading travel technology provider, is also a significant step forward in adopting biometric solutions. By combining Vision-Box's expertise with Amadeus' global reach, the travel industry is poised to witness a new era of secure and efficient travel experiences. From check-in to boarding, unique biometric data becomes a passport to a smoother journey.

Blockchain technology is an emerging game-changer for rebuilding trust around traveler security and data privacy. As a decentralized ledger, blockchain serves up an auditable, fraud-proof record of every booking, payment, itinerary change, and more. You can autonomously execute refunds, credits, or adjustments using pre-programmed smart contracts.

Beyond operations, blockchain enables verified digital ID and shareable documentation storage solutions for customers. Look ahead to seamless biometric check-ins, loyalty program data management, and contactless arrivals — all secured by blockchain's distributed trust model. This unhackable approach eliminates fraud while letting customers take ownership of their personal data.

Be an industry leader by adopting blockchain for unparalleled transparency and remain relevant by meeting customers' increasing demands for data privacy and security.

Cloud adoption

Cloud computing is set to revolutionize tourism, making operations more scalable, flexible, and cost-effective. With this technology, travel companies now have the power to easily store data, manage online bookings, and run their apps without the constraints of traditional IT infrastructure.

By moving to the cloud, you can enjoy secure, centralized control over customer info, bookings, online sales data and other critical info, making everything accessible anytime, anywhere. This means updates in real-time, easy team collaboration, and the freedom to work from anywhere, boosting productivity and supporting remote teams.

Plus, with cloud technology, travel companies can adjust their resources up or down based on demand, saving costs and maintaining optimal performance during peak travel seasons. By adopting the cloud, businesses are setting themselves up for a future of faster, smarter, and more innovative service, keeping them ahead in the digital game.

Internet of Things (IoT)

Don't sleep on the Internet of Things (IoT) either! IoT connects physical spaces to the digital ecosystem, so hotel rooms can self-adjust to customer preferences before they even arrive. Leverage IoT sensor data to automate comfort settings like temperature, lighting, entertainment and more for a hyper-personalized experience.

Another forward-thinking IoT application in the travel industry is digital lock systems. These systems allow guests to unlock their hotel room doors using their smartphones without the need for traditional keycards. This not only provides a convenient experience for guests but also reduces the risks—there is no need to worry about lost or stolen keycards.

On the operational side, IoT monitoring provides a constant data feed on everything from HVAC performance to occupancy levels — alerting you to potential issues before they become costly problems. Effortless in-room conveniences like voice controls and smart home integration let you amaze customers by delivering intuitive, smart tourism experiences.

Smart destinations

Step into the digital era of smart destinations, where technology tailors travel to perfection. Borrowing from the smart city blueprint, a smart destination harnesses cutting-edge tech to uplift the tourist experience, aiming to perfect service quality and skyrocket customer satisfaction.

In these tech-savvy spots, the Internet of Things (IoT) powers everything. This means travelers' journeys are supported by a network of connected devices, from smart transport systems that whisk them away without a hitch to intelligent lighting that guides their path and environmental sensors that ensure the air they breathe is as fresh as the morning dew. Plus, with augmented reality and digital wayfinding, travelers' exploration becomes an interactive saga, with each step unveiling a new chapter of the locale's lore.

You can be a key player in this, knitting together collaborations with local stakeholders to stitch this digital fabric into the tourist experience. By championing smart destinations, you’re not just offering trips; you're giving travelers a seamless blend of digital innovation and sustainability. This isn't just travel; it's an intelligent journey where every element is pushing the boundaries of what it means to explore and enjoy.

A few years ago, a travel company founder approached us. Their agency had been using an outdated CRM system for too long and desperately needed a new one.

The old system performed poorly, was difficult to understand, and felt clunky. This caused significant issues for the staff—some managers left the company because the system made it hard for them to do their jobs, and it took newcomers too long to learn how to operate it. The system was also buggy and unreliable.

We began building an entirely new, custom CRM system for the company . We ensured it would be intuitive, easy to use, and responsive. It wasn’t just about the design, but also the functionality—we added new features to store customer documents, calculate agents' commissions, and send reports directly to the accounting department.

This digital transformation was a huge success. The new CRM system allowed the company to process up to 30% more bookings through its team of 150 travel agents, all without hiring additional staff.

Digital transformation is an inevitable part of business growth, including for travel businesses. New digital tools can provide a much better customer experience and make your work more streamlined and efficient, while giving you an edge over traditional travel companies.

We focus on helping travel companies achieve digitally enabled growth and have vast experience in creating products that help businesses thrive in a challenging global market.

Got a model of your ideal digital tool, but need consulting?

Contact us, and we’ll help you at every step of your company’s digitization processes!

Founder & CEO

Alex loves travel and tech and founded Zoftify to help travel companies use technology more effectively. Before this, he worked in tech consulting, where he led international mobile development teams.

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The swot of a travel agency (with examples).

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We've drafted tons of business plans for travel agencies and, far too often, business owners neglect to dedicate time and thought to crafting a strategic vision for their new project.

It's mainly because they lack the right tools and frameworks. The SWOT analysis is one of them.

What is it? Should you make a SWOT for your travel agency?

A SWOT analysis is an invaluable tool for travel agencies to navigate the complexities of the tourism industry. It stands for Strengths, Weaknesses, Opportunities, and Threats.

Developed as a framework for strategic planning, SWOT analysis helps businesses like travel agencies to dissect their internal dynamics and the external environment. The travel industry, with its ever-changing trends and customer preferences, makes this tool particularly relevant.

If you're running or considering starting a travel agency , a SWOT analysis is a crucial step. It enables you to pinpoint what you excel at (strengths), areas needing improvement (weaknesses), potential avenues for growth (opportunities), and external challenges (threats).

For example, your travel agency's strengths might include specialized travel packages or excellent customer service, while weaknesses might be a limited online presence or dependency on seasonal tourism. Opportunities could emerge from trends like eco-tourism or wellness travel, whereas threats might include economic downturns or travel restrictions.

Travel agency owners often undertake a SWOT analysis when launching new services, responding to market shifts, or facing operational hurdles. It provides a structured way to assess both the business and the broader travel landscape.

Understanding these four aspects can lead to better strategic decisions, helping prioritize efforts and develop plans that leverage your strengths and mitigate your weaknesses.

For anyone embarking on a new travel agency venture, a SWOT analysis is not just beneficial; it's a strategic necessity. It assists in recognizing your agency's unique selling points, areas requiring more investment or improvement, and external factors to watch out for.

While a SWOT analysis doesn't assure success, it dramatically increases your chances by offering a clear, strategic direction for your travel agency.

How do you write a SWOT analysis for your travel agency?

Filling out a SWOT analysis for your travel agency can seem daunting, particularly when you're attempting to foresee potential strengths, weaknesses, opportunities, and threats in the dynamic travel industry.

Engaging in comprehensive market research and perusing travel industry reports is crucial. These resources offer valuable insights into travel trends, customer preferences, and competitive dynamics.

Interacting with other travel agency owners or travel experts is also advantageous. Their practical experiences and insights can provide perspectives that are not always evident in industry reports.

Remember, the essence of a SWOT analysis is not to predict the future with absolute certainty but to equip you with a strategic approach to face it.

Reflect on the unique elements your travel agency brings to the industry.

Perhaps you specialize in exotic destinations that are not mainstream, or you have strong partnerships with reputable travel providers. Your strength might be in an experienced team with deep knowledge of travel planning, or you may offer innovative travel packages that stand out in the market.

These are internal factors that can set your travel agency apart from others.

Identifying weaknesses demands honesty and introspection.

You might face limitations in marketing budgets, affecting your ability to reach a broader audience. Lack of experience in certain types of travel, high competition in your chosen niche, or dependency on a specific market segment could be potential weaknesses.

These areas may require strategic planning, additional resources, or diversification of your services.

Opportunities

Opportunities are external elements that your travel agency can capitalize on.

For example, a rising trend in eco-tourism or adventure travel could be an opportunity. Collaborating with local businesses for travel packages, or exploiting a gap in the market, like offering unique cultural experiences, can be advantageous. Additionally, technological advancements in booking systems or virtual travel experiences could open new avenues for your business.

Threats are external challenges that could impact your travel agency.

These might include changes in travel regulations, economic downturns affecting travel spending, increased competition, especially from online travel platforms, or shifts in travel preferences due to global events like pandemics or climate change.

Examples of Strengths, Weaknesses, Opportunities and Threats for the SWOT of a travel agency

These strengths and opportunities can be leveraged to improve the profitability of your travel agency .

More SWOT analysis examples for a travel agency

If you're creating your own SWOT analysis, these examples should be useful. For more in-depth information, you can access and download our business plan for a travel agency .

A SWOT Analysis for a Luxury Travel Agency

A luxury travel agency specializes in providing exclusive, personalized travel experiences. Its strengths include access to high-end accommodations and unique, once-in-a-lifetime activities. The agency benefits from a knowledgeable team that offers expert advice and tailors travel plans to individual preferences. Strong relationships with premium service providers ensure a high level of quality and exclusivity in its offerings.

One weakness may be the high cost of luxury travel, which can limit the agency's client base to a relatively affluent demographic. Dependence on a small, high-income market segment makes the business vulnerable to economic fluctuations. Additionally, the complexity of organizing bespoke travel experiences can be labor-intensive and time-consuming.

Expanding into emerging luxury markets, such as eco-tourism or wellness retreats, can attract new clients. Collaborating with influencers in the luxury travel sphere can enhance brand visibility. Leveraging technology to provide virtual tours or augmented reality experiences can enhance the planning process and attract tech-savvy travelers.

Economic downturns can significantly impact the luxury travel market. Competition from online travel platforms offering luxury experiences at competitive prices is a growing threat. Additionally, global events such as pandemics or political instability in popular destinations can disrupt travel plans and affect business.

A SWOT Analysis for an Adventure Travel Agency

An adventure travel agency stands out with its wide array of adrenaline-pumping activities like hiking, diving, and mountain climbing. Its strengths include expert guides, access to remote and exotic locations, and tailored adventure packages. The agency's focus on sustainable tourism practices appeals to environmentally conscious travelers.

The niche nature of adventure travel limits its appeal to a specific client base, primarily younger and physically active individuals. The risks associated with adventure activities require comprehensive safety measures and insurance, adding to operational costs. Seasonal variations in weather can impact the availability of certain activities.

Developing partnerships with local communities can create unique, authentic experiences and foster sustainable tourism. Expanding the range of activities to include less intense options can attract a broader audience. Utilizing social media to showcase thrilling travel experiences can increase brand visibility and appeal to younger demographics.

Changes in environmental conditions and natural disasters can disrupt travel plans and destinations. The rise of DIY adventure planning through online resources is a competitive challenge. Additionally, fluctuations in travel regulations and global health concerns can significantly impact the adventure travel sector.

A SWOT Analysis for a Budget Travel Agency

A budget travel agency's primary strength lies in its affordability, appealing to cost-conscious travelers. It offers a variety of budget-friendly packages, including low-cost flights, accommodations, and tours. The agency benefits from strong negotiation skills to secure deals and discounts for its clients.

The focus on low-cost options may limit the quality of travel experiences offered. The agency faces intense competition from online booking platforms and other budget travel agencies. Limited profit margins on budget travel packages can challenge the financial sustainability of the business.

Expanding services to include budget-friendly, off-the-beaten-path destinations can attract travelers looking for unique experiences. Collaborating with budget airlines and hostels for exclusive deals can enhance package attractiveness. Embracing digital marketing and online booking platforms can streamline operations and reach a wider audience.

Economic downturns can lead to reduced travel spending, even among budget-conscious travelers. The rapid change in travel trends and consumer preferences requires constant adaptation. Competition from self-booking options and travel apps offering low-cost solutions is significant.

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