IncollaborationwithKearney

TravelandTourismataTurningPoint:PrinciplesforTransformativeGrowth

INSIGHTREPORTJULY2025

Images:GettyImages,Unsplash

Contents

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Foreword

Executivesummary

Introduction:Travelandtourism(T&T)atacrossroads

1GrowthareasandtensionpointsaskeytrendsforT&T

1.1Growthareas

1.2Tensionpoints

2Guidingprinciplesforatransformedsector

2.1Guidingprinciples

3Fromprinciplestoaction:Enablersandpotentialareasforintervention

3.1Keyenablersforimplementation

3.2Actionareasandprioritiesforthepublicsector(nationalandregionallevels)

3.3ActionareasandprioritiesforT&Tsectorconstituents

3.4Roleofthewiderecosystem

Conclusion:TowardsanewvisionforT&TContributors

Endnotes

Disclaimer

Thisdocumentispublishedbythe

WorldEconomicForumasacontributiontoaproject,insightareaorinteraction.

Thefindings,interpretationsand

conclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedand

endorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarily

representtheviewsoftheWorldEconomicForum,northeentiretyofitsMembers,

Partnersorotherstakeholders.

?2025WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformation

storageandretrievalsystem.

TravelandTourismataTurningPoint:PrinciplesforTransformativeGrowth2

TravelandTourismataTurningPoint:PrinciplesforTransformativeGrowth3

July2025

TravelandTourismataTurningPoint:

PrinciplesforTransformativeGrowth

Foreword

B?rgeBrende

PresidentandChief

ExecutiveOfficer,

WorldEconomicForum

BobWillen

GlobalManagingPartnerandChairman,Kearney

AhmedAl-Khateeb

MinisterofTourism,

KingdomofSaudiArabia

Thisinsightreportarrivesatacrucialmomentfor

thetravelandtourism(T&T)sector.Today,T&Tisatacrossroads,facingacomplexlandscapefilledwithnewopportunitiesandavarietyofchallenges.

Thesectorisprojectedtoserveabout30billion

touristvisitsandcontribute$16trilliontoglobal

GDPby2034–morethan11%oftheworld’s

economy.Thisremarkabletrajectory,coupledwithT&T’simpacts,extendingfarbeyonditssubstantialeconomiccontributions,presentsunprecedented

possibilities.Thesectorencompassescultural

exchange,socialconnectionandpersonal

enrichment–allcatalystsforpositiveglobalchange.Itisavitalengineofgrowth,deeplyinterconnectedwithawidearrayofindustriesandcrucialtothe

well-beingofcommunitiesandindividuals.

However,thispathforwardisnotwithoutits

challenges.Thepastfiveyearshavebeentumultuous,includingworldwidedisruptions,geopoliticaltensionsandtheCOVID-19pandemic.Yetthroughitall,the

sectorhasdemonstratedremarkableresilienceandresourcefulness,and,asaresult,itismoreimportantthanevertotheglobaleconomy.

Thisreportproposesasetofguidingprinciples

aimedatfosteringatransformedandmore

sustainableindustry;itdelvesintotheenablersand

potentialareasforinterventionthatcanhelpachievethesegoals.Italsodetailstensionpoints,includingenvironmentalimpacts,theneedforinvestments

andworkforcechallenges.

Bybringingtogetherourdiverseperspectivesandexpertisetoaddresstheindustry’smultifaceted

evolution,weexplorethebiggesttrendsshapingthefuture,fromthetransformativepowerofnewtechnologiestoevolvingtravellerprofilesandtheriseofnewgrowthsegments.

Overthenextdecade,T&T’spathwillhingeonthecollaborativeactionofallstakeholders,andthe

environmentcreatedtoallowthosepartnershipstoflourish.Governments,businesses,travellers

andcommunitiesmustworktogethertocreateanindustrythatnotonlyfuelseconomicprosperity

butalsoencouragesculturalunderstanding,

environmentalregenerationandinclusivegrowth.

Weareoptimisticthatthisextraordinary

opportunitycanberealized.Withthoughtful

collaborationandstrategicaction,thetravel

andtourismsectorcanachieveitsremarkablepotentialwhileaddressingthechallengesthatlieahead,producinglastingvalueforeconomies,communitiesandtravellersworldwide.

TravelandTourismataTurningPoint:PrinciplesforTransformativeGrowth4

trillion

T&T’sprojected

contributiontoglobalGDPby2034.

Executivesummary

Travelandtourism’sfuturetransformationrequirescollaborativeactiontomakethemostofgrowthdriverswhileaddressingtensionpoints.

Thetravelandtourismsectorstandsat

acrossroads.Afterrecoveringfromthe

unprecedentedshockoftheCOVID-19pandemic,thesectornowfacesnewandexacerbated

challenges.By2034,travelandtourismis

projectedtocontribute$16trilliontoglobalGDP

(morethan11%globally),supportingbusinesses,destinationsandlocalcommunitieswhilefacilitatingapproximately30billiontouristvisitsworldwide

(domesticandinternational).

Thisgrowthwillbeshapedbyinterconnecteddriversandtensionpoints:

Growthdriversandopportunities

1Evolvingtravellerprofiles

Principle:Adapt,upgradeandpersonalizeofferings

2Growingsegmentsasdrivers

Principle:Embracegrowthsegmentsstrategically

3Technologydevelopmentsasanenabler

Principle:Fosterresponsibletechnologyandinnovation

Tensionpointsandchallenges

4Riskofglobaldisruptions

Principle:Developcrisis-resilientstrategies

5Increasedfrictionbetweenvisitorsandresidents

Principle:Encouragemutualbenefitand

understandingbetweenresidentsandvisitors

6Growingpressureonnature

Principle:Committoregenerativepractices

7Labourandskillscrisis

Principle:Bridgeworkforcegaps

8Localcapacity-building

Principle:Supportsmallandmedium-sizedenterprises(SMEs)andlocalcommunities

9Infrastructureandinvestmentrequirements

Principle:Investinanddevelopsustainableinfrastructure

10Culturalandheritagedynamics

Principle:Revitalizeuniqueheritage

Implementationrequiresanoverarchingprinciple

ofholisticcollaborationtoalignthepublicand

privatesectorandallstakeholdereffortstodrive

transformativechange.Governmentsmustestablishenablingframeworksthroughstrategicpoliciesandinvestments.Industryleadersshouldtransform

operatingmodelswhileotherstakeholders(e.g.civilsociety,academia)shouldmakedistinct

contributionsalignedwiththeircapabilities.

Thisinsightreportprovidesthefoundationalanalysisforanewvisioninwhichtravelandtourismevolvesbeyondbeingaforceofeconomicprosperity

tobecomeestablishedasacatalystofglobal

resilience,culturalunderstanding,environmentalregenerationandinclusiveprosperity.

Introduction:Travelandtourism(T&T)atacrossroads

T&Tisnavigatingpost-pandemicrecovery,emergingchallengesandunprecedentedgrowthopportunitiesinanevolvingworld.

Thesocioeconomicsignificanceoftravelandtourism

Thetravelandtourism(T&T)sectorisavitalgrowthenginewithfar-reachingsocioeconomicimpact.

In2023,thesectoraccountedforapproximately

10%ofglobalGDPandsupportedmorethan330millionjobsworldwide.1During2024,thesector’s

globalspendexceeded$7trillion.2Thiseconomic

influenceextendsbeyondairlinesandhospitality

companiesintolocaleconomiesthroughextensivesupplychainssupportingagriculturalproducers,

foodserviceproviders,retailestablishments,

financialinstitutionsandcountlesssmallbusinesses.Indeed,morethantwo-thirdsofthesector’s

economiccontributionflowsthroughindirector

inducedchannels,3includingsupplychaineffects,governmentspendingandcapitalinvestment.4

T&T’seconomicsignificancevariesdramaticallyamongcountriesatdifferentstagesof

developmentandeconomicdiversification.Figure1illustratestherangeofthesector’simportanceandexpectedgrowth.

Tourism-centriceconomies:T&Trepresentsa

Caption:Sangenjaya,Tokyo,Japan

significantportionofGDP.NationssuchasBahamas,SaintLuciaandSeychellesdependheavilyontourism

astheirprimaryeconomicdriver.Thesedestinationsoftenhaveafavourableclimateandexceptional

naturalassetsbutfacegreatervulnerabilitytonaturaldisastersoreconomicdownturns.

Emergingtourismdestinations:EconomiessuchasSriLanka,Azerbaijan,IndonesiaandSaudi

Arabiaareexpectedtogrowsignificantlyandare

investingheavilyintheirtourismsector,resulting

inanincreaseininternationalarrivals,tourism-

relatedbusinessactivityandoverallsectorvisibility.Thechallengesthesecountriesarefacinginclude

workforcedevelopmentandinfrastructurepressures.

Diversifiedeconomieswithstrongtourism

sectors:NationssuchasTürkiye,France,JapanortheUnitedStateshaverobusttourismsectorswithvariedattractionsandestablishedinfrastructure,butT&T’scontributiontoGDPisbalancedwithintheirdiversifiedeconomies.Evenwithinthesecountries,however,tourismbenefitsareconcentratedin

specificdestinations(e.g.Istanbul,Beijing,Paris).StrategiestodistributetourismmoreevenlycouldbeexploredbygovernmentstocontinuegrowingT&Tdirectcontributionwithoutaddingpressuretoalreadymuch-visiteddestinations.

TravelandTourismataTurningPoint:PrinciplesforTransformativeGrowth5

TravelandTourismataTurningPoint:PrinciplesforTransformativeGrowth6

FIGURE1T&TGDPdirectcontributionandgrowthbycountry

Annualgrowth,%ofcountry’sGDP,1size=T&TGPD–$billions

35

(Non-exhaustive)

T&TdirectGDPcontribution(%)

12

10

9

8

7

6

5

4

3

2

1

0

Tourism-centriceconomiesMacauSAR,

China

Aruba

Seychelles

SaintLucia

Bahamas

Croatia

AntiguaandBarbuda

Jamaica

Portugal

Mauritius

Montenegro

Greece

EQ\*jc3\*hps16\o\al(\s\up6(D),e)

ci

EQ\*jc3\*hps16\o\al(\s\up6(v),o)

EQ\*jc3\*hps16\o\al(\s\up6(e),n)

r

EQ\*jc3\*hps16\o\al(\s\up6(s),o)

eiIcelandElSalvadorPhilippines

TürkiyeMoroccoPuertoRicoEmergingtourismdestinations

BelgiumJordanThailand

MaltaCostaRica

Albania

Tunisia

Eswatini

SaudiArabia

NepalOman

Japan

Czechia

SriLanka

GermanyParaguay

Guyana

RomaniaIsraelSouthKoreaBangladesh

Mexico

Spain

Egypt

Italy

UK

China1

Brazil

Poland

USA

Mongolia

Myanmar

HongKongSAR,China

01.522.533.544.5566.5788.599.5101113.516.5

T&TdirectGDPgrowth(2023–2033)2

2.Annualizedrealgrowthadjustedforinflation.Source:WWTC5andUNTourism6

Notes:1.2022GDPdirectcontribution;

Non-G20G20T&TGDP=$10billion

Atsubnationallevels,significantvariationexists

invisitorintensities.CitiessuchasDoha,Dublin

orLimaconcentratemorethan60%oftheir

countriesT&TGDPcontribution.7Despitebeing

amongthemostvisitedcitiesglobally,T&TdirectGDPcontributioninmajorhubssuchasParis,

TokyoorMexicoCitydoesnotexceed4%ofthecitysGDPandcanbeaslowas1%.8Thisunevendistributioncreatesbothfocusedopportunitiesandconcentratedchallenges.Forexample,inThailand,theprovincesofPhuketandChonburicapture

morethan40%ofthecountrystourismrevenue,9withPhuketreachingvisitor-to-residentratiosof

118:1,creatinginfrastructuralandenvironmental

challenges.10Meanwhile,thenorth-eastregion

ofIsaan,whichoccupiesnearlyone-thirdofthe

countrystotalpopulation,hashistoricallybeen

oneoftheleastvisitedareas.Thisimbalance

createschallengesforboth.Over-visitedareas

faceresourcestrainswhiletheunder-visitedregionseekseconomicdevelopmentopportunities.Infact,

tourismauthoritiesinThailandrecentlydefinedthelatterasanewfocalpointfortourismgrowth.11

Newrealitiesemergingasa

resultoftheCOVID-19pandemic

TheCOVID-19pandemicshookthesector,withglobalT&TGDPcontractingfrom$10.3trillionin2019to

$5.3trillionin2020adeclineofalmost50%.12Thisperiodalsoacceleratedinnovationandpromptedastrategicreassessment.Recovery,whileuneven,hasbeensteady,withglobalT&TGDPsurpassing2019levelsin2024.13Themaindevelopmentsinclude:

Variedrecoverypatterns:Someregions

recoveredfasterthanothers.Bytheendof

2023theMiddleEastandwesternandsouthernEuropeexceeded2019levelswhileAsiaPacificremained44%below.14

Acceleratedinnovation:Rapidadoptionoftechnologiesandoperatingmodels,fromcontactlesstechnologytohealthprotocols.

Evolvingconsumerbehaviours:Newtravel

patternsemerged,includinginterestinoutdoor

experiences,blendedtravelandafocuson

wellness(a2022studyfoundhealthandwellnesstobethereasonfortravelforoneinfivetravellers).15

Asthesectormovesbeyondrecovery,itfaces

acomplexenvironment.Severeweatherevents

increasinglyaffecttravellerpatterns(one-thirdof

Europeansavoideddestinationslikelytoexperienceextremeweatherconditions)16andgrowing

environmentalconsciousness(arecentsurvey

showedthatenvironmentalimpactplaysarolein

thedestinationselectionof75%oftravellers).17

Geopoliticalrealignmentsaltertravelpatternsand

canmanifestassocialunrest,safetyconcernsor

disruptionsthatdirectlyaffectvisitorexperiences.

Accordingtoarecentsurveyofsectorexperts,

geopoliticalrisks18haverisen20percentagepoints

sinceSeptember2024,19makingthisoneofthemajorchallengesforthesector.Similarly,economicfactors(e.g.highertransportationandaccommodationcosts)areamongthemainthreatsseenbyexperts.20Finally,technologicaldisruptioncontinuestotransformand

challengebusinessmodels.

Thesefactorsinformfourpotentialscenariosin

thelatestWorldEconomicForumwhitepaperin

collaborationwithKearney:FourScenariosforthe

FutureofTravelandTourism(July2025).Rather

thanbeingapredictionexercise,thisaspiresto

supportstakeholderstoprepareforpotentialfutures:

Scenario1

Athousandislandsworld(highgeopolitical

fragmentationandglobaleconomicstagnation)

Scenario2

Harmonioushorizons(highstability,strongeconomicgrowth)

Scenario3

Greenascent(rapidsustainabilitytransition,moderategrowth)

Scenario4

Techturbulence(accelerateddisruption,unevengrowth)

Whiledistinct,elementswithinthesescenarioswilllikelymanifestsimultaneously,creatingcomplex

realitiesforstakeholderstonavigate.Thisreflects

whatacademicsdescribeas“polycrises”the

convergenceofmultipleinterconnectedglobal

challengesoccurringconcurrently.21Regardlessofhowthesevariablesunfold,certainfundamental

challengesandopportunitiesrequirefocused

attention.Thelatestprojectionssuggestthesectorwillcontribute$16trillioninGDPby203422and

totaltravelspendwillreach$14trillion.23The

factorsstatedearliercanaccelerateorslowdowntheseprojections;nevertheless,significantgrowth

willmostlikelymaterializeovertime,bringing

tremendouspotentialandresponsibilityforkey

stakeholders.Howthisgrowthisshapedand

materializedwilldeterminewhetherornotthesectorfulfilsitspotentialasapositiveforceforprosperity,culturalunderstanding,inclusionandregeneration.

Section1examinesthemostimportantgrowthareasandtensionpointsthatwillinfluencethesectors

evolution,providingafoundationfortheguiding

principlesandactionareasthatcanhelpstakeholdersnavigatethiscomplexanddynamiclandscape.

FIGURE2

T&T’scontributiontoGDP2019一2034

14

12

10

20

16

+4%1

15

10.3

10.99.9

10

8.0

8

6.55.3

5

6

0

4

2019

2022

2023

2024

2034F

20202021

●TotalT&TGDPcontribution($trillions,realprices)%ofGlobalGDP

Note:1.Compoundannualgrowthrate(CAGR);F=forecast.

TravelandTourismataTurningPoint:PrinciplesforTransformativeGrowth7

Source:WTTC24

TravelandTourismataTurningPoint:PrinciplesforTransformativeGrowth8

1

Caption:GergetiTrinityChurch,Georgia

Growthareasand

tensionpointsaskeytrendsforT&T

Evolvingbehaviours,segmentsandchallengeswillshapeT&T’sfuturedevelopment.

TravelandTourismataTurningPoint:PrinciplesforTransformativeGrowth9

3

T&Tgrowthareasandtensionpoints

FIGURE

Growthareas

02

Growingsegmentsasdrivers

01

Evolvingtravellerpro?les

Fast-growingmiddleclasses,e.g.in

IndiaandChina,arecreatingnew

travellerpatternsandaresettoreachmorethan25%shareoftotal

internationaltripsby2030.

Traveltech(market~$10billionin2024)isexpectedtodouble,servingasan

enablerfornewvisitorswithcontinuousfocuson?exibilityandtransparency–butalsocarryinginherentrisks.

Newsegmentswillemergeandbecomegrowthdrivers–e.g.liveeventstourism(16%CAGR),ecotourism(14%CAGR),MICE(9%CAGR)andwellness

(8%CAGR).

05

Increasedfrictionbetweenvisitorsandresidents

Visitor-to-residentratioscouldrisebyatleast50%,intensifyingchallengesandhighlightingtheneedtopromote

harmoniouscoexistenceandspacesthatbene?tboth.

06

Growingpressureonnature

Thesectorcouldstrainnaturalsystemsandaccountfor15%oftotalGHG

emissions,10%ofglobalenergyconsumptionand7%ofsolid

wasteproduction.

08

Localcapacity-building

SMEsrepresent80%ofthesector;toproperlyserveexpecteddemandtheywillrequiresupportastravellersseeklocalexperiences.

09

Infrastructureand

investmentrequirements

Serving~30billiontouristsinthefuture

willrequireinfrastructureandasset

investments(e.g.~25millionhotel

roomsby2034),aswellasregulatoryandotherchangestoexpeditedevelopment.

03

Technologydevelopmentasanenabler

Tensionpoints

04

Riskofglobaldisruptions

Increasedsensitivitytoglobaldisruptorssuchasgeopoliticaltensions,climatechangeanddemographicshiftscouldreach$6trillionlossesby2030,showingneedtoincreaseresilience.

07

Labourandskillscrisis

By2034,100million+morejobswill

havetobe?lled;someplacescurrently

facequantitativeandqualitativelabourgaps(e.g.intheUK,thesectorturnoveris>50%,farexceedingothersectors).

Culturalhomogenizationandheritage

degradationposecriticalrisks,with97%ofrespondentsinasurveyagreeinglocalsareadoptingtouristcultureovertraditionsand70%ofheritagesitesarebeingthreatenedbyinadequatemanagementplans.

10

Culturalandheritagedynamics

Note:MICE=meetings,incentives,conferencesandexhibitions.

Source:WorldEconomicForum

Growthareas

1.1

TheT&Tsectorstandsonthethresholdof

significantgrowth.By2034,itisexpectedto

expand1.5timesfasterthantheglobaleconomy.Thisgrowthtrajectoryreflectsthecontinuedriseinglobalmobilityandincreasedspendingacrossdifferentsegmentsdespitethesector’salready

substantialsize.Domestictravelwillcontinuetocontributemorethan70%ofdirectGDP,andleisuretravelwillcontinuetorepresent80%ofthemarketInlinewithpre-pandemicfigures

North-EastAsia

SouthAsia

South-EastAsia

CentralAsia

5.1%

MiddleEast

Sub-SaharanAfrica

NorthAfrica

4.9%

4.7%

4.5%

Oceania

4.4%

Caribbean

3.1%

NorthAmerica

2.9%

OtherEurope

LatinAmerica

2.8%

2.6%

EuropeanUnion

(2018and2019).25

Geographically,Asiawillbeamajordriverof

GDPgrowth,withT&TdirectcontributiontoGDPexceeding7%acrossregions(Figure4).This

positionsAsiaastheworld’sfastest-growing

tourismeconomy,fundamentallyshiftingglobal

tourismdynamics,requiringmassiveinfrastructureinvestmentsandcreatingnewtourismcorridors.SuchgrowthcouldpositionAsiaasoneofthe

8.9%

globe’sepicentreswhilepotentiallybecomingadominantforceinsettinginternationalstandardsandpractices.

PercentagegrowthprojectionsinT&TdirectGDPcontribution2023一2033

FIGURE4

6.2%

8.1%

7.7%

123456789

Source:WTTC26

>Caption:Grand

Bahama,Bahamas

TravelandTourismataTurningPoint:PrinciplesforTransformativeGrowth10

TravelandTourismataTurningPoint:PrinciplesforTransformativeGrowth11

oftraveltechnology

decision-makersexpectmoderatetoaggressiveincreasesintechnologyinvestmentintheir

organizations.

1Evolvingtravellerprofiles

Theglobaltravellerdemographiccomposition

willundergoprofoundtransformationdrivenby

emerging-marketshifts,generationalchangesandevolvingpreferences.

Estimatessuggestthatby2030IndiaandChina

willcollectivelyaccountformorethan25%of

internationaloutboundtravel.27WithIndiantravellerstriplingandChinesetravellersdoublingtheircurrentshare,theirpreferenceswillshapethemarket.

Simultaneously,MillennialsandGenerationZwill

comprisemosttravellers,bringingindigital-native

behaviours.Theywillcontinuetofueldemandfor

experiencesandevents,28withmostpreferringliveexperiencesoverpurchasingitems29andrelying

heavilyonsocialmediaforinspiration.30Content

creatorsandtravelinfluencershaveemergedas

powerfulintermediaries,shapingtraveldecisions

andbehavioursthroughtheirplatforms,creating

bothopportunitiesandresponsibilitiesforpromotingsustainable,respectfultourismpractices.

Thepandemicacceleratedhybridtraveller

segments,withblendedtravel31projectedto

expandataround9%compoundannualgrowth

rate(CAGR)by2032asremoteworkpolicesenablelocationflexibility.Suchshiftsareaccompanied

byevolvingpreferences(e.g.morethan50%ofbusinesstravellerswantmoreblendedtraveltripsandin2024tookatleasttwoofthem).32

Theseevolvingtravellerprofilescreateboth

opportunitiesandchallenges.Destinationsand

businessmustdevelopvariedofferingsthatserve

travellerswhilenotdilutingauthenticity.Traditional

demographicmarketingisbecominglesseffectiveasmotivationalandbehaviouralfactorsincreasinglydefinetravellersegments.Entitiesthatdevelop

nuancedunderstandingsoftheseprofilesandadapttheirofferingswillreapthegreatestrewards.

2Growingsegmentsasdrivers

Severalsegmentsemergeassignificantgrowthdrivers,expandingatratesexceedingsector

averages.

Travellingtoattendliveevents,includingmusic

festivalsandsportstourism,isgrowingatdouble-digitrates.Sportstourism,wherethetouristeitherobservesasaspectatororactivelyparticipatesinasportingevent,wasvaluedatmorethan$609billionin2023andisexpectedtoreachmore

than$1.7trillionby2032(16%CAGR).33Social

mediaplatformsarekeyenablersforthisgrowthintripsastheypromotetournamentsandevents.Onlineshowsandcontentonvideoplatformsalso

encouragespectatorstoengagemore,driving

higherattendance.Furthermore,participationby

recreationalathletesineventssuchasmarathonsisexpectedtocontinue.

Ecotourismisprojectedtoexpandatarateof14%CAGR,reaching$760billionby2032.34Among

thedriversaretheriseinawarenessofoutdoor

recreationalactivitiesandininterestinsustainabletourism.Wellnesstourismisprojectedtoincreaseat8%CAGRby203435ashealthconsciousnessgrows,creatingdemandforexperiencesthattreatmindandbody(e.g.spatreatments,mindfulnessretreatsandwellnessprogrammes).

MICE(meetings,incentives,conferencesand

exhibitions)isprojectedtogrowat9%CAGR

between2025and2030,from$870billionin

2024,36outpacingtherestofthebusinesstravelsegment.Thisgrowthreflectsthevalueofface-to-faceinteractionevenastechnologyprovidesalternatives.

Thesesegmentsofferopportunitiestodevelop

specializedofferingsfordestinationsand

organizations,whilepotentiallyaddressing

seasonalitychallenges.Successfullyenteringthesesegmentsrequiresinvestment,skillsdevelopmentandmarketingcapabilities.Additionally,competitionisintensifying,evenwithincountries,asthese

opportunitiesarerecognized–makingdistinctive

positioningandcoordinationincreasinglyimportant.Stakeholdersmustcarefullyevaluatewhich

segmentsalignwiththeircapabilitiesratherthanpursuingallareas.Specializedsegmentscan

alsocreateopportunitiestoadvanceinbroadersustainabilityandinclusionobjectives(e.g.

ecotourism’sconservationefforts).

3Technologydevelopmentsasanenabler

Technologicalinnovationhasbeentransforming

everyaspectoftheT&Tecosystem–fromtravellerinspirationandplanningtobusinessoperationsanddestinationmanagement–creatingopportunities,responsibilitiesandchallenges.

Theglobaltraveltechnologymarketsize,estimatedat$10.5billionin2024,isexpectedtonearlydoubleby2033(7.5%CAGR).37Thisreflectswidespread

adoptionoftransformativetechnologiesandalignswithbroaderindustrytrends.Arecentsurvey

indicatesthat91%oftraveltechnologydecision-

makersexpectmoderatetoaggressiveincreasesintechnologyinvestmentintheirorganizations.38

Artificialintelligence(AI)andmachinelearning

applicationsspantheentiretraveljourney,from

chatbotstopersonalizedrecommendationengines.

TravelandTourismataTurningPoint:PrinciplesforTransformativeGrowth12

1.2

LeadingproviderssuchasTuseAIto

generatecustomizeditinerariesthatcombine

travellerpreferenceswithreal-timeconditionsandhistoricaldata.Similarly,SouthKorea’sYanolja

connectsdata,improvesdataqualityandprovidesAIservicesthataimtoincreaseefficiencyandleveltheplayingfieldforcompaniesworldwide.

Internetofthings(IoT)technologiescreate

environmentsthatenhanceguestexperienceswhileoptimizingefficiency.Hospitalitypropertiesimplementthesesolutionsforenergymanagement,predictive

maintenance,contactlessoptionsandpersonalization,whileairportsdeployconnectedsystemsforbaggagetrackingandoptimizingcrowdflow.

Beyondo