TOURISM INDUSTRY TRENDS INCLUDE RESPONSIBILITY AND AI

Kevin Eagan - Sep 16, 2019
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AI, connectivity, nanotechnology, artificial biology, the environment, and many other elements accelerate and influence our way of conduct; and tourism is no exception from this. The tourism industry trends are shaped by these things extensively.

The Report on Travel and Tourism trends prepared by We Are Marketing breaks down what the future of the industry holds for us. As part of a completely futuristic context, by the year 2045, there will be a series of inputs to consider when setting the current bases. The diseases of the twentieth century will have been forgotten, and it is estimated that life expectancy will be 142 years. The report also highlights that in 2045, the world will be even more populated and life will concentrate in cities turned into smart entities that manage physical space. We will live a large-scale metamorphosis of humanity, comparable to some of the most important spiritual, scientific and technological revolutions in history.

According to the experts behind this study, the tourism, leisure and hospitality industry will grow exponentially in every way. Not only in meaning, but also the role it will have in the future society and, above all, its social and economic importance in a hedonistic, smart and connected society of the future. What should we do to attain these changes?

Responsibility and environmental awareness

Tourism is responsible for 5% of CO2 emissions, but also for the exponential increase of plastic waste in the seas. Currently, many companies in the industry, from hotel chains to airlines, have launched ambitious programs to eradicate the use of disposable plastics and the tourism industry is betting on other recyclable materials, such as cardboard.

All of this, besides its effect on the planet, also influences the decision-making of travelers when booking their trips. According to a recent study by Booking.com, the social awareness of European travelers will influence their trips in 2019. The most important travel trends for these years include cultural exchanges, ecological activism, virtual agents, and a “less is more” approach.

TOURISM INDUSTRY TRENDS INCLUDE RESPONSIBILITY AND AI

CRM, the industry’s greatest ally

Traditional CRM is no longer useful. Advances in all areas suggest a very interesting route in the coming months that will allow us to anticipate the needs of the client. It’s not a surprise to see that 28% of companies worldwide have already used AI as part of their CRM strategy, and 41% plan to do so this year according to IDC and Salesforce. It is important to update the travel and hospitality CRM approach as a part of customer loyalty programs since a 5% increase in customer retention can boost the company’s profitability by up to 75%.

Data, source of the tourism business

IBM estimates that 90% of all data has been created in the past two years. The ways in which we share, analyze and absorb information through technology have now boomed to the point that using Big Data is much more common.

In the travel industry, by analyzing a complex set of data such as travel history and demography, predictive analysis can foresee the movements of travelers, even before the travelers themselves know it. AI provides the ability to convert huge amounts of data that were regarded as pointless into useful information. Even now, there are data brokers that, paired with the right equipment, can do magic in an establishment, destination or resort.

TOURISM INDUSTRY TRENDS INCLUDE RESPONSIBILITY AND AI

Reputation, the new way of marketing

Reputation improves the brand’s perception, increases visibility and goodwill, real demand, as well as the price that customers are willing to pay for the service, which translates into profits. According to this study, the desired brand is a valued brand and, therefore, will be strong and competitive in the market.

93% of users will read 10 or more reviews before forming an opinion on the business, and 90% will read reviews from other users before visiting a company. Concerning the vital importance of word of mouth, 60% of B2C companies will use Net Promoter Score as the main metric of their reputation by 2020.

The IDC report predicts that by 2021, over 30% of manufacturers and distributors will have built a digital trust system through collaborative blockchain services between the value chain and give customers access to the product’s history.

Bringing the user to the center

The report states that one of the current and future trends is based on working on 360 degrees strategies, in which users are at the center of that circle. In addition to personalization, it is important that the company's point of view is global and that all of the parts of the business move at the same time and aim for the same goals.

As the years go by, the world will become increasingly complex, so the focus should be on the consumer and to come up with a strategy that covers all areas.

TOURISM INDUSTRY TRENDS INCLUDE RESPONSIBILITY AND AI

Authenticity, a marked trend

69% of millennials bet on authenticity; that is, living experiences that allow them to know the culture of the place they visit. The research speaks of authenticity referring to the physical, dreamlike, flavored, tangible and intangible components linked to a brand, a service, a region... the elements that make it unique.

However, the constant growth in the number of travelers, the cheaper transport and new platforms have made tourism look like something vain. Identity has become the true differential value of tourism positioning that allows a destination to stay relevant to the traveler.

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