The tourism and hospitality landscape witnessed notable trends, according to the 2024 State of Tourism and Hospitality report by McKinsey.
Millennials and Generation Z demonstrated a heightened enthusiasm for travel, undertaking more trips annually and allocating a larger portion of their income towards experiential journeys compared to older generations.
The report highlighted the diversification of luxury travellers, with younger individuals and those from emerging markets like Asia joining the ranks. This shift also challenged traditional notions of luxury travel demographics.
Tourism industry undergoes shifts as younger generations prioritise travel
Popular destinations grappled with overtourism, as visitor volumes concentrated in specific locations, periods, and attractions, the report revealed, however, there is a need for destinations to assess their tourism readiness using metrics such as visitor volumes, infrastructure strain, and environmental impacts.
Strategies to increase carrying capacity are deemed essential to mitigate potential negative consequences.
Meanwhile, the accommodation sector experienced the rise of asset-light models like franchising, consolidation among major hotel chains, and the continued growth of home-sharing platforms.
Experience providers ventured into new activities, segments, and geographies, accompanied by sophisticated revenue management techniques across attractions.
The abundance of travel-related data presented opportunities for stakeholders to gain deeper insights into travellers’ preferences and orchestrate cohesive experiences across the value chain.
Companies prioritised strategies like unbundling offerings, cross-selling unique experiences, and utilising data insights to drive profit growth and capture a larger share of the tourism market.
Global travel rebounded from the pandemic, with projections indicating a return to pre-pandemic levels by the end of 2024. Domestic travel constituted the majority (75 percent) of travel spending.
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