Travel Report 2014 According to a Euromonitor report of November 2013 one of the most notable trends amongst 21st century travelers is an increase in online bookings. The US and Western Europe remained the largest online travel markets in 2012, with online travel sales reaching US$185 billion and US $170 billion, respectively. These same markets will grow the least from 2012-2017. However, BRIC markets are each expected to grow between 10-20% during that same forecast period.
Mobile technology has greatly affected travel bookings and will continue to grow, driving the increasingly important real-time social conversation between the newest travelling consumer, the millennial, and consumers and travel brands. According to Pew Research Center, 81% of US consumers between the ages of 25-34 have smartphones and 37% own a tablet. Marketing strategies must adapt to incorporate gaming, apps and user-generated content to reach this generation, since they are skeptical of traditional marketing.
Collaborative consumption, or the act of consumers and producers coming together through activities like lending, exchange and bartering, is becoming increasingly popular. AirBnB has been a leader in the “hotel” space given the recent economic woes. Tourists are keen to rent less expensive lodging options and homeowners struggling to pay mortgages are more willing to rent their spaces. Therefore, the vacation rental market performed better than hotels in 2009.
Luxury travel has made a comeback. Despite its decline in 2009, luxury hotels and premium air travel grew between 5-10% per year over 2010-2012. With ever-rising annual disposable incomes, middle class consumers are becoming more sophisticated, boosting demand for luxury hotels worldwide. Luxury guests have also embraced technology, with social media playing an important role for brands.