The  Future  of  Travel      Insights  from  Discussions  Building  on  an  Ini4al  Perspec4ve  by:    Richard  Hammond|  Founder  and  Chief  Execu4ve  |  Greentraveller  

Context  The  ini4al  perspec4ve  on  the  Future  of  Travel  kicked  off  the    

Future  Agenda  2.0  global  discussions  taking  place  through  2015.    This  summary  builds  on  the  ini4al  view  and  is  updated  as  we  progress.  

Ini4al  Perspec4ves  Q4  2014  

Global  Discussions  Q1/2  2015  

Insight  Synthesis  Q3  2015  

Sharing    Output  Q4  2015  

Doubling  of  Interna6onal  Tourism    In  2012  the  number  of  tourists  crossing  interna4onal  borders  reached  over  1bn.  Much  of  the  demand  is  fuelled  by  rising  household  incomes  in  emerging  economies…  Interna4onal  tourist  arrivals  are  expected  to  reach  1.8bn  by  2030  

Growing  Consumer  Awareness    The  dream  of  affordable  travel  is  being  obscured  by  climate  change  and  a  

growing  awareness  among  consumers  that  sustainability  and  responsible  travel  are  set  to  impact  how  we  understand,  embrace  and  manage  our  holiday  plans.    

Two  Main  Challenges    There  are  two  main  challenges  ahead  for  the  development  of  a  robust  travel  and  tourism  industry:  how  to  grow  further  to  deliver  jobs,  exports,  economic  growth  and  development,  and  in  doing  so,  how  to  manage  this  sustainably.  

Security  vs.  Convenience    The  balance  between  convenience  and  security  with  border  controls  coming  under  increasing  strain  as  they  deal  with  huge  volumes  of  people  travelling  

interna4onally  at  a  4me  when  fears  around  global  security  are  high.  

Mul6-­‐Modal  Hubs    Perhaps  the  most  significant  improvement  is  the  mul4-­‐modal  approach  to    air  and  rail.  Many  large  German  airports  now  have  modern  rail  sta4ons  that  allow  air  passengers  to  con4nue  seamlessly  by  rail  to  many  des4na4ons.    

BeEer  Employers    Given  that  the  travel  and  tourism  industry  is  a  huge  employer,    the  development  of  and  4ghter  controls  on  employment  rights    

are  likely  to  be  a  significant  factor  in  the  future.    

Community-­‐based  Tourism    Community-­‐based  tourism  is  on  the  rise  with  holidaymakers  eschewing  the  

crowded  beaches  and  all-­‐inclusive  packages  to  enjoy  a  more  authen4c  experience  living  in  the  culture  rather  than  observing  it  from  the  outside.  

Posi6ve  Local  Impact    Travellers  will  base  buying  decisions  not  only  around  comfortable  beds,  leisure  facili4es  or  cultural  a[rac4ons,  they  will  also  choose  to  stay  in  places  where  staff  are  being  treated  well  and  the  local  economy  is  not  being  exploited.    

Responsible  and  Inclusive    Look  out  for  growth  in  travel  focused  on  learning  about,  experiencing    or  posi4vely  affec4ng  ecological  conserva4on,  economic  development    and  local  community  improvements,  cultural  respect  or  human  rights.        

Seamless  Cross  Border  Travel    Smart  visas,  indeed,  smart  4cke4ng  in  general  for  mass  transit    

provides  a  tangible  way  forward  in  addressing  some  of  the  barriers    to  the  seamless  growth  of  cross  border  visitor  numbers.    

   

Personalised  Choice  Consumers  enjoy  a  world  where  choice  is  a  commodity  but  where  trusted  opinions  play  a  cri4cal  role  in  guiding  and  assis4ng  decisions  or,  for  some  

individuals,  reducing  choices  on  their  behalf.  

Device  is  King,  Consumer  is  Queen  The  device  is  the  focus  of  the  future  –  it  knows  where  you  are,  what  you  redeem  and  will  consolidate  all  your  informa4on.  Travel  brands  have  to  

understand  the  ways  devices  will  mediate  their  rela4onships  with  customers.  

Chinese  Tourists  150  million  outbound  Chinese  tourists  and  a  total  of  500m  more  mobile    Asians  will  need  places  to  stay  in  other  countries  that  align  be[er  with    

their  specific  cultural  norms  and  expecta4ons.    

   

Maximising  Moments  Individuals  seek  to  maximise  the  benefits  of  moments  available  to  them  -­‐    

whether  efficiency,  rest,  enjoyment  or  otherwise  -­‐  regardless  of  4mespan  and  whether  the  moment  was  planned  or  enforced.  

Up-­‐Stream  Insight  Companies  and  networks  have,  and  act  on,  very  early  insight  on  future  ‘intent  to  travel’  and  customise  services  to  suit.  Exis4ng  hotel  brand  rela4onships  are  

by-­‐passed  by  those  more  ‘in  the  know’  about  guest  interests.      

Eastern  Centricity  With  China’s  500m-­‐strong  middle-­‐class  burgeoning  and  travel    barriers  diminishing,  Western  and  Eastern  cultures  meet  and    

feed  off  one  another,  shibing  global  norms.  

Consumer  Power  The  consumer  is  likely  to  gain  the  upper  hand  in  terms  of    

the  power  dynamic  and  principles  such  as  ‘great  customer  service’    will  no  longer  be  a  nego4able.  

Mass  Medical  Tourism  In  key  loca4ons  where  hotel  footprints  align  with  the  medical  facili4es,    

there  will  be  growing  demand  for  accommoda4on  for  pa4ents,    their  families  and  healthcare  professionals.  

Deeper  Loyalty  While  travellers  are  used  to  points,  many  see  the  need  for  deeper  rela4onships  with  the  hotels  they  prefer  to  visit,  rather  than  a  global  porcolio  that  share    the  same  brand.  They  seek  closer  rela4onships  around  their  real  needs.  

Lengthening  Rela6onships  With  the  sector  under  a[ack  from  outside,  hospitality  companies  see  the  need  for  new  points  of  contact  that  are  different  from  the  past:  They  want  to  lengthen  rela4onships  with  customers  both  before  and  aber  the  stay.  

Final  Fron6ers  The  growth  of  space  tourism,  increasing  interest  and  par4cipa4on  in    Arc4c/Antarc4c  trips,  deep  sea  explora4on  and  other  remote  journeys    

all  drive  more  of  us  to  seek  to  access  the  inaccessible  

Wi-­‐fi  Global  Nomads  For  some  in  the  knowledge  economy  the  poten4al  for  con4nuous  travel,  

blended  with  part-­‐4me  work,  is  focused  on  ‘wi-­‐fi  hopping’  for  regular  access    to  high-­‐speed  connec4vity  -­‐  no  ma[er  where  in  the  world  they  are.  

Smart  Avia6on    Digitally-­‐enabled  passengers,  intelligent  passenger  screening  and    

pilotless  aircrab  deliver  greater  safety,  speed  and  efficiency.  Flying  4me  decreases  and  trade  increases  as  we  fly  more  efficiently,  more  oben.  

Peer  Power        Aggrega4on  occurs  in  hotel/peer  review    sites  alongside  integra4on  with  

consumers’  personal  trusted  networks.  This  gives  guests  advice    they  can  trust  and  greater  consistency  of  ra4ngs  globally.  

Travel  Mindsets,  Not  Segments    Through  be[er  staff  training  and  improved  use  of  connected  data,  travel  

organisa4ons  are  able  to  target  based  on  situa4ons,  not  segments,  allowing  the  mindset  of  the  guest  –  not  an  age  bracket  –  to  drive  their  experience.  

Learning  to  Upgrade    A  shib  occurs  in  how  educa4on  is  delivered  across  the  service  industry  globally.      Blended  learning,  be[er  brand  applica4on  and  capacity  building  in  HR,  results  in  a  more  data-­‐led,  mul4-­‐skilled  workforce  and  so  a  be[er  guest  experience.  

Government  Coopera6on    Issues  such  as  climate  change,  border  controls  and  open  skies,  demand    cross-­‐border  responses  and  greater  government  coopera4on,  resul4ng  

in  growth,  stability  and  a  rethink  about  airspace  management.  

Consolida6on  of  Travel  Ver6cals    The  pull  of  large  industry  players  aiming  to  improve  efficiencies  and  the  push  of  market  disrup4ons  such  as  AirBnB  and  Uber  lead  to  increased  consolida4on  

and  integra4on  within  tourism  boards,  hotel  brands,  travel  agencies  etc.    

Mul6-­‐Genera6onal  Travel  Many  elect  to  travel  together  as  mul4-­‐genera4on  groups  of  both  families  and  mixed  friends.  They  look  for  vaca4ons  that  keep  everyone  happy  and,  as  such,  

stress  many  systems  based  on  delivering  segmented  experiences.  

Sa6sfying  a  BeEer  Educated  Workforce  As  travel  industry  employees  are  more  educated,  increased  pressure  is  placed  on  management  to  be[er  serve  the  workforce  and  their  needs.  A  greater  focus  

on  human  capital  develops  leadership  and  embraces  diversity.  

Disrup6on  and  Resilience  Disrup4ons  and  instability  increasingly  interrupt  travel.  As  such  safety,  security  and  health  rise  as  key  criteria  for  travel  decisions  and  the  travel  industry  seeks  

to  be  be[er  prepared  and  deliver  greater  resilience  in  these  instances.  

End-­‐to-­‐End  Experiences      To  simplify  the  customer  journey  and  exploit  inefficiencies  across  the  travel  

eco-­‐system,  new  technology-­‐led  services  decouple  and  disintermediate  current  providers:  New  seamless,  integrated  apps  re-­‐bundle  the  a-­‐la-­‐carte  choices.  

Chinese  Convenience  The  global  travel  infrastructure  has  been  built  for,  and  by,  western  travellers.  This  will  be  reimagined  for  the  Chinese  -­‐  going  beyond  congee  for  breakfast  to  

a  more  subtle  understanding  of  what  is  ‘convenient’  for  Chinese  tourists.  

Chinese  Tourist  Demographics  More  Chinese  outbound  tourists  are  expected,  but  li[le  a[en4on  has  been  

paid  to  their  demographics.  Growth  so  far  has  been  in  the  young  and  wealthy,  but  the  next  decade  will  see  a  rise  of  less  wealthy  and  older  Chinese  tourists.  

Mind,  Body  and  Spirit  We  will  see  a  growth  in  travel  aimed  at  improvements  in  well-­‐being.  This  will  include  a  reawakening  and  revisi4ng  of  local  spiritual  tradi4ons  in  countries  where  travel  and  travellers  have,  to  now,  been  associated  with  modernity.  

Travelers  in  Control    Connec4vity  everywhere  will  redefine  research,  decision-­‐making,  marke4ng  and  experiences.  This  leads  to  a  richer  environment  for  travellers  and  the  opportunity  for  them  to  ‘make  it  their  own’  including  the  spontaneous.  

Suppor6ng  Overwhelmed  Travellers  With  access  to  seemingly  endless  informa4on,  travellers  will  con4nue  to    need  help  ‘connec4ng  the  dots’  and  filtering.  The  gathering  of  useful  local    and  authen4c  knowledge  from  meaningful  (human)  sources  will  be  key.      

Valuing  Time  Technology-­‐enabled  connec4ons  provide  more  headspace  and  heart-­‐space  that  displace  the  frustra4ons  and  ‘lost  4me’  that  travellers  needlessly  suffer.  

This  helps  them  to  get  more  value  from  their  4me  spent  travelling.  

Defining  My  Space    Hospitality  organisa4ons  increasingly  op4mise  the  experience  of  space  –  both  physically  and  experien4ally  -­‐  to  help  travellers  feel  comfortable  and  secure.  

This  results  in  more  memorable,  personalised  and  efficient  travel.  

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