1. The Anywhere Traveler Puts New Destinations on the Map 

Among Skift megatrends, we highlight the significance of the millennial generation, which accounts for a quarter of the world’s population. The typical millennial, born between 1981 and 1996, is now around 34 years old and in the mid-stage of their career with approaching peak purchasing power. According to Boston Consulting Group, this generation will increase their per capita spending by 10 percent over the next five years, while spending by Gen X and Baby Boomers will decline. Millennials prioritize experiences over material possessions and desire unique travel experiences to distinguish themselves from others. Skift Research reports that 70 percent of American millennials and Gen Zs seek out travel experiences that are unheard of by their family and friends, and the percentage is even higher in China at 90 percent.
Moreover, while digital nomads may not be a significant market, they create a positive image of living and working in unexplored places that have not been widely advertised on social media. This idea of being a digital nomad inspires many millennials and Gen Z travelers who seek unique experiences. Therefore, companies and destinations that can cater to this trend have a good chance of succeeding. 

2. The Changing Face of Human Capital in Travel 

The travel industry is facing a complex labour problem, which varies depending on location and time. Labour shortages persist in many markets, and demographic and cultural shifts are likely to sustain mismatches between supply and demand for some time. Travel companies are developing innovative solutions such as starting their own academies, using social media to attract new talent, and offering better pay and more flexible working hours. However, there are still gaps, especially among low-earning workers who may choose to work in other industries. To address this issue, online platforms are helping to match candidates with employers, and some companies are introducing new models such as offering underemployed professionals 20-hour working weeks. In addition, the cruise industry is calling for more flexible visa arrangements to address staffing shortages, and travel companies are using digitalization and automation to upskill their staff. To attract and retain talent, travel companies could use human resource analytics, according to McKinsey & Company. Some companies, such as Amadeus, have opened schools to train the next generation in digital skills in tourism. While the industry is working to address the labour problem, it remains to be seen how effective these solutions will be in practice. 

3. Planners Embrace Transformational Experience-First Events 

During the pandemic, businesses were forced to conduct their operations online and realized the gains in efficiency. This has led to the acceptance of online meetings, and in-person events are now designed to create a more welcoming environment where attendees drive their own experiences. People now demand to return home inspired and connected, and events that encourage connection and meaning are well-positioned for success in the future. The experience economy is a multi-billion industry that meetings and events can borrow from to offer attendees an experience they will soon not forget. However, meeting professionals must consider planning less and allowing attendees to take more control of their experiences. Accessibility for all is a priority, and diversity, equity, and inclusion (DE&I) have been a continued focus in the meetings and events industry. Finally, content is at the core of a successful conference, and the experience of understanding is what is offered, which is achieved by eliminating teleprompters and lecterns and creating a simple and minimalistic environment. 

4. Travel Marketing Poised for Reboot From Generative AI 

The travel marketing industry is moving towards using artificial intelligence (AI) to create marketing campaigns, social media posts, and other content. This is made possible by generative AI, a new development that allows computers to create unique products based on specific rules given to them. The generative AI market is projected to reach $110.8 billion by 2030. In the travel industry, this technology can be used for personalized travel recommendations, virtual tours, and creating personalized advertisements, among other things. Marketing agencies are already experimenting with AI software platforms to generate marketing copy and assets. Generative AI is based on transformer models, which spot patterns in data where the sequence of the elements is important. While marketing is the sector that will see the most immediate change from this technology, it could also be used for designing airports, hotels, aircraft, and more. There are already platforms that exist for interior design, and experiments are happening now to explore how AI can be used to develop architecture drawings. 

5. India Becoming the New China in the Reordering of Asia Travel 

China has relaxed its strict zero-Covid policy for domestic tourism, but this may be too late as the rest of the world is learning to live with the virus. Chinese tourists remain skeptical of international travel, according to a recent survey, and this creates an opportunity for India to become the largest travel source market. India’s population is set to surpass China’s in 2023, and it already ticks most of the boxes for a suitable candidate to replace China. In 2019, China was the largest outbound travel market in the world, but its recovery path remains uneven and destinations are looking for new source markets, with India being a frontrunner. India has outperformed other Asia-Pacific countries in terms of a faster rebound and is projected to become the new China over the next five years. Despite challenges such as the cutback on incentive trips, the depreciating Indian Rupee, and visa logjams, India’s potential for outbound tourism is exemplified by its large population, confidence among its travellers, and disposable incomes fuelling recovery in the tourism sector. 

At Twissen we observe that many of the megatrends highlighted by Skift present both opportunities and challenges for the industry, thus, companies and destinations that can successfully cater to them have a good chance of succeeding, while those who ignore the current change in travel & tourism will likely be surpassed by their competitors. 

Learn more about Skift Megatrends 2023. 

Twissen

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L'articolo The Skift Report 2023 includes artificial intelligence and labour shortages among the megatrends proviene da Twissen.

Firstly, it will enhance the creation of an immersive experience for visitors, allowing them to explore and discover the destination virtually before booking a real trip. Additionally, hotels and tourist destinations can use the metaverse to promote their facilities and services, creating a sort of “virtual showroom” where potential customers can see and experience what they have to offer. 

Another great opportunity offered by the metaverse is the ability to purchase a land, or a portion of virtual land, recreate their own environment and mood. This allows hotels and tourist destinations to customize the experience for visitors and create a unique atmosphere that reflects their brand, identity, and level of hospitality. 

For example, a beach hotel could create a virtual land with a marine environment, while a mountain hotel could create a land with an alpine environment. In both cases, hotels would be able to create an immersive experience for visitors that would help them feel already at ease and imagine what it would be like to spend time in their facility. 

Furthermore, by purchasing land in the metaverse, hotels and tourist destinations can also create virtual activities and events to entertain visitors and increase their engagement with the destination. For example, a hotel could organize a virtual dinner for visitors of its land, allowing them to try the hotel’s restaurant dishes virtually. 

We at Twissen are monitoring how the metaverse may represent an enormous opportunity for hotels and tourist destinations to enhance their business and offer unique and immersive experiences to visitors. By purchasing land in the metaverse and recreating their own environment and mood, hotels and tourist destinations can increase their visibility and attract new customers.

Twissen

L'articolo Why tourism destinations and hotels are purchasing lands in the metaverse proviene da Twissen.

What opportunities for the Travel&Tourism industry that is based on real experience? For sure, the virtual experience will never substitute the real one, but there are many aspects that tourist destinations, tour operators, hotels as well as tour and activities providers can consider. We will develop this story around the tourist destinations, however a little effort in creativity will make it possible to adapt this solution to multiple tourist enterprises.

Destinations can buy a land, a portion of the virtual space, and reproduce part of the territory in dimension 3D with the objective of replicating the environment or the mood that is able to attract the tourist-customer. As reported by Euronews, the City of Seoul will implement a 5 years plan and enter in the metaverse by 2023.
A tourist can virtually discover the destination by visiting places, landscapes or museums or by riding a scooter, sailing a boat or through interactive experiences such as fishing, a cooking class or a yoga lesson in the nature or in an historical venue.

It’s a big opportunity to gather, nurture, build loyalty and develop the community and, why not?, to attract new visitors.
Like in the real life, it will be possible to build shops in order to enhance the e-commerce experience, allowing more monetization opportunities.
Some experiences could only be offered in virtual mode and the most attractive ones could be on demand, especially the most relevant for those users who will not be able to reach the destination or who want to re-live a memorable holiday.
Virtual events, with different levels of hybridization, will offer new income streams, especially if relevant and unique.
Finally, the destination can rent or sell part of the land and, like in real life, get revenues also linked to NFT, namely non-fungible token, digital assets linked to the blockchain. 

At Twissen we observed that there are already giant investments in the metaverse and that this technology will be disrupting very soon. Destinations, and other tourist players, will be ready both to build loyalty and to attract new customers, offering experience without limits of time and space to a high number of users. Who comes first, will get the best results.  

Francesco Redi

President and founder at Twissen. Manager in Local Development, Tourism Policies,  EU Funds. He cooperates with several European universities, public bodies, development agencies, DMOs and enterprises.

L'articolo The business opportunities for tourism in the metaverse proviene da Twissen.