Travel and Tourism accounts for more than one-tenth of global GDP making it one of the most important industries there is. After a long period of fairly limited innovation the industry is experiencing a new time of significant change that is beginning to change the nature of the industry. More than any other factor, technology is driving this change causing businesses in the industry to rethink their business model and adapt to the times to better engage with their customers. The future of the industry is going to be recognizable, but there will certainly be new types of products that take advantage of the fact that travellers are now increasingly mobile, constantly connected and demanding new and unique experiences.

Key Highlights

Airline industry is striving for innovation amid difficult trading conditions
Hotel market not changing as dramatically as once thought
People are going on different types of vacation, changing the market
The business of selling holidays is changing
The Travel insurance industry has many options for innovation

Not regarded as a market prone to sudden changes, vacations have been experiencing gradual development of late due to adjustment to developing consumer tastes. Now a growing part of the market and attracting investment, cruises are attracting new audiences. Package vacations have survived numerous dips following terror attacks around the world, and appear set to remain the mainstay of vacations. The market is adapting to the rise in solitary travellers and continued popularity of short-term city breaks, marking a departure from the traditional two-week vacation. The airline industry continues to experience periods of flux.