2014 Trends in

Travel & Tourism

About Us
Resonance Consultancy creates strategies
and plans that shape the future of
destinations around the world.

1. Global Growth

1. Global Growth

The IMF predicts global GDP to grow by 3.8% in 2014

BRICs is expected to drive economic performance 2015-2017

Americas - demand is likely to outpace supply

Europe - arrivals and incoming receipts have started to pick up

Middle East - shift away from Egypt, Syria and Lebanon towards the Gulf
markets

Africa - business tourism plus rising incomes and urbanization are driving
domestic travel

Asia - remains the leading global region for economic growth

India - travel and tourism is rebounding

2. China
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2. China

In 2012, the number of outbound tourists totals 83,182,700, up 18.41%

comparing with 2011. China Tourism Academy expects the Chinese
outbound market to reach 94 million trips this year, up 15 percent from
2012.

China surpassed the U.S. and Germany in 2012 to become largest source of
outbound travelers in the world

New Tourism Law implemented in October is leveling the playing field

causing a shift towards more independent travel

Paris (#5), Rome (#11), New York (#13), London (#14) only Top 20
Destinations outside of Asia, according to report by daodao.com (Trip
Advisor)

3. South America

3. South America

There has been a 12% increase in outbound trips, but growth is likely to
slow next year

International tourism expenditure soared 50% in 2010 and rose a further

30% in 2011

The US and Europe are the main destinations.

Brazilians have proven to be high spenders

Brazilians intending to travel more next year has declined to 29% from 42%
one year ago.

4. Millennials
More and More

4. More Millenials

Millennials are far more interested in international travel than nonMillennials

Are more interested in urban rather than resort destinations

Millennials are more likely to travel for leisure in organized groups, with
extended family, or with friends.

Millennials are twice as likely as non-Millennials to use their mobile

phones to show travel pictures to friends, share travel photos on social
media, blog or recount travel experiences online, and post travel reviews,
according to a survey by BCG

8 in 10 Millennials consider online travel reviews either somewhat or

very important. (Expedia.com)

5. Unstoppable `
Elders

5. Unstoppable Elders

The elders target group is estimated between 1.3 and 1.6 billion
worldwide

59% of 55+ U.S. affluent define retirement as a time to travel and explore
new places, and 42% are planning international travel in the next 12-24
months.

Rest and relaxation, 3 - 4 days and 9 - 10 days

Word-of-mouth information is an important source of information

Off peak travel is favorable

Seniors are the developed world's wealthiest and most demanding

Tourism Security is important to senior travelers

Seniors tend to show higher levels of frustration

Lack of good airline service is a major obstacle for senior tourism.

6. Millions of
Millionaires

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6. Millions of Millionaires

The number of U.S. millionaires is projected to grow from 10.5 million in

2011 to 20.5 million in 2020, according to Deloitte & Oxford Economics

Top 9% of U.S. Households (HHI $150k+) account for 29% of all spending on
air travel and lodging according to 2011 Consumer Expenditures Survey

Despite growth in wealth in China and other Asian countries, travelers from
U.S., Japan and Europe will continue to dominate luxury travel space
through 2020

7. Conspicuous
Leisure

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7. Conspicuous Leisure

Signaling social status through consumption of experiences rather than

material goods

Social media a key vehicle for sharing and communicating status

Resonance Report found Top 5 most desired luxuries of affluent U.S.

households are

#1 Smart Phone

#2 Vacation Home

#3 Freedom to Work from Home

#4 Taking Exotic Vacations

#5 Extended Time off Work

8. Gay on the Go

8. Gay on the Go

LGBT spending on tourism will exceed US$200 billion in 2014

LGBT tourists are choosing not to travel to unsupportive countries

LGBT visitors are sending a message with their spending

Welcoming destinations: Sweden, France, Spain, Belgium, UK and New

Zealand

9. Multi Generational
Glocality
Travel
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9. Multi-Generational

40% of families went on a multigenerational vacation in the past year.

77% planned it around a milestone event

Grandparents travel almost 25% more than the average leisure traveler

Today's seniors are living longer, healthier, and more mobile lives and are
eager to make up for lost time and long distances away from their beloved
grandchildren.

Attracting the multigenerational market is about memories, convenience

and value

10. Active
Adventures

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10. Active Adventures

Luxury travelers are seeking out ways to stay active and healthy on the road

Growth in adventure travel has accelerated at a 65% yearly rate since 2009

The value of the global outbound adventure travel sector was more than
$345 billion in 2012

Adventure travel includes two out of three criteria: nature, culture and
physical activity

Adventure travelers are younger

Nearly 54% of travelers are planning an adventure activity on their next trip

11. Wired &

Wireless

11. Wired & Wireless

More than 40% of all online research for travel came from a mobile device

Millennials are more likely than their older colleagues to book their
business travel on their mobile phones (32 percent) or tablets (20 percent), a
habit thats slow to catch on among 46- to 65-year-olds. (Expedia.com)

Internet access the MOST important hotel amenity for affluent U.S.
travelers

DMOs must have a dedicated mobile site for on-site, real-time information

Mobile apps are replacing the hotel concierge

12. Bleisure

12. Bleisure

According to a US report published by Orbitz in 2012, 72% of business

travelers said that they take extended executive trips that have a leisure
component

In North America, 54% of 18-30 year olds bring a significant other on a

business trip, versus 36% of 31-45 and 16% of 46-65 according to a study by
Egencia.

27% of affluent U.S. vacation home owners use their home 2 months or
more per year

13. Shopping Tourism

13. Shopping Tourism

Tourists spend approximately one-third of their total tourism expenditures

on retail purchases

Tourism shopping includes: pre-trip shopping, add-on function of the

attraction or destination, shopping experience, and experience local
culture.

There are 10 major malls under construction in the Middle East to be

completed by 2014

Growing middle classes in Brazil, Russia, India, and China are travelling to
shop

Historic market towns tend to attract boutique and independent shops,

while cities tend to attract major chains.

14. Creative Tourism

14. Creative Tourism

UNESCO defines creative tourism as travel directed toward an engaged

and authentic experience, with participative learning in the arts, heritage,
or special character of a place, and it provides a connection with those who
reside in this place and create this living culture.

The creative tourist is always a participant, someone who learns by doing,

someone who finds enjoyment and fulfillment in developing new abilities,
someone who wants to interact with local people. As a result, creative
tourists get closer to the cultures of the countries they visit.

15. Whole
Living

15. Whole Living

Whole Living is the idea of balancing work with play, indulgence with
discipline, good living with well being and luxury with simplicity. Its the
notion, in travel, that all aspects of the experience contribute to well-being.

Whole Foods has launched Whole Journeys an experiential travel

company focused on food, cooking, health, wellness and cultural travel
experiences

Urban Land Institute launched two year project in 2013 focused on creating
Healthy Places

16. Culinary Tourism

16. Culinary Tourism

One of the most dynamic and creative segments of tourism

DMO partnerships with chefs, restaurants and food tours

88% of destinations consider gastronomy strategic in defining their brand

and image

27 million culinary American leisure travelers in the last 3 years

$12 billion spent directly on culinary activities while traveling

American culinary tourists - cultured and affluent

17. Going Green ?

17. Going Green ?

One of the most dynamic and creative segments of tourism

Tourism presently accounts for 5% of global emissions approximately 4%

from transportation (40% of those from air travel and 32% from car travel)
and almost 1% from the accommodation sector

Just 16% of affluent U.S. travelers rate eco-friendliness an important factor

Visits to Beijing have dropped by roughly 50% so far this year, which many
attribute to the citys notorious pollution

Vancouvers Green Capital campaign target to become worlds greenest

city by 2020

18. Athletic Events

18. Athletic Events

"Spectator sports" and "Participatory sports"

Major events shape the future of the place

Its about Legacy

The sports tourism economy: arrivals, revenues, investment, employment,

skills development, environmental management, identity and unity

The target audience: amateur, collegiate, professional leagues and

associations

19. OTA Power

19. OTA Power

A recent study by Expedia Media Solutions found that travelers visit 38 sites
before booking a vacation

OTAs capture 47.2% of those web visits while DMOs receive just 6.4%

Younger travelers are more likely to use an OTA (65% < 55 affluent U.S.
households use OTA vs. 48% of 55+)

New York and San Francisco DMOs recently signed agreements with
Booking.com

20. DMO vs DMMO

20. DMO vs DMMO

A number of DMOs have started to consider transitioning to a DMMO

Creating a suitable environment:
Planning and infrastructure
Human resources development
Product development
Technology and systems development
Related industries
Procurement
Delivery on the ground:
Visitor quality of experience
Product start-ups
Events development and management
Attractions development and management
Training and education
Business advice
Strategy, research and development

For more information, please visit

resonanceco.com
Chris Fair
cfair@resonanceco.com
@crfair
(646) 413-8887

Richard Cutting-Miller
rrcm@resonanceco.com
@rcuttingmiller
(646) 233-1383