As 2024 unfolds, the desire for travel remains steadfast, but the landscape is evolving – shaped by accelerated demands on technology and a growing thirst for personalised experiences. HBX Group, a B2B player in the TravelTech space, anticipates significant shifts in the industry this year, driven by a surge in luxury and experiential trips, a rebound of Asia-Pacific travel, a focus on personalisation and automation, the rise of daycations, sustainable travel, and a spotlight on Fintech solutions.
Last year, driving trends in travel and global hospitality included, “trip stacking” – with many travellers catching up on trips denied, postponed, and cancelled during the pandemic. There was also the continued digitalisation of the hotel experience.
New figures from the United Nations World Tourism Organisation (UNWTO) highlight the recent growth in travel, revealing that destinations around the world welcomed 22% more international tourists in Q3 of 2023 than the same period in the previous year, reflecting a strong northern hemisphere summer season. According to the organisation, global tourism receipts for 2023 could reach US$1.4 trillion.
As the global tourism sector is projected to generate 110 million new jobs over the next ten years, according to the World Travel & Tourism Council (WTTC), HBX Group reveals the trends that are forecasted to shape the travel industry in 2024.
Experiential and luxury travel take the lead
According to HBX Group, travellers are set to embrace experiential journeys tailored around their interests. The Olympic Games in Paris and Euro 2024 in Germany will draw sports enthusiasts, while cricket fans will flock to the U.S. and Caribbean for the T20 World Cup.
Beyond sports, the fusion of retail and entertainment, coined as “retailtainment,” (which doesn’t roll off the tongue quite as expected) is poised to peak. Established destinations like London and the U.S. will continue to attract, but emerging hotspots, including Italy, are gaining traction, especially among Chinese travellers seeking unique experiences from homegrown designers.
HBX Group adds that a surge in luxury travel, particularly in the wellness tourism sector, is anticipated as travellers prioritise achieving ‘internal and external harmony’. HBX’s data shows that exclusive experiences, often centered around fine dining and holistic wellness retreats, offer a perfect blend of relaxation and self-care, reflecting a growing trend of seeking balance and wellness in life and in travel.
Asia-Pacific’s resurgence
This year marks the first full year of travel for the Asia-Pacific region since 2019, presenting a plethora of opportunities for tourists.
HBX Group claims that while China is expected to lead the resurgence, Vietnam is poised to experience a notable spike in popularity, showcasing the diverse attractions the region has to offer.
Personalisation and automation
HBX Group’s research reveals a staggering 90% of travellers now seek personalised solutions. As a response, the tech platform is introducing new product lines to offer end-to-end, frictionless travel experiences.
Additionally, brands can introduce comprehensive travel packages, inclusive of 24/7 customer support in local languages, that cater to the evolving needs of travellers who seek seamless, tailored trips.
Daycations are the new travel norm
Daycations aren’t a particularly new concept but the trend has been rising steadily over the last couple of years. With the growing trend of remote and hybrid work models, many travellers have now adopted workcations as a default standard, with many logging-in and taking virtual meetings while on holiday.
However, for those struggling to take extended breaks, HBX Group forecasts that 2024 heralds the continuing rise of daycations, adding that a day at the beach or a mountain hike provides a refreshing work reset, offering a budget-friendly and planet-conscious alternative to traditional vacations.
Sustainability and a focus on fintech
Based on HBX Group’s forecasts, travellers are actively seeking actionable information to make eco-friendly decisions, focusing on metrics such as greenhouse gas emissions, energy use, and resource consumption. Understanding the impact of their trips, travellers are looking to reduce their environmental footprint when choosing travel providers or destinations.
Simultaneously, travel demand is surging but cancellations, delays and staffing shortages continued to plague travel operations in 2023. This can, obviously, create friction and stress for travellers, damaging brands and demanding resolution. That’s where fintech could be a viable solution.
HBX Group reports that the size of these opportunities in fintech is already large and growing. For example, the travel insurance sector alone is currently worth €15 billion and is expected to grow to €99 billion by 2030, according to research by Spherical Insights & Consulting.
For travel companies pushing to regain and expand their market share in the current chaotic environment, HBX Group adds that travel fintech offers compelling solutions by freezing prices, changing or cancelling reservations and easily rebooking disrupted flights, paying with whichever methods they find the most convenient.
Image credit: HBX Group