5 key players in tourism industry

Stakeholders in tourism: Who are they and why do they matter?

Disclaimer: Some posts on Tourism Teacher may contain affiliate links. If you appreciate this content, you can show your support by making a purchase through these links or by buying me a coffee . Thank you for your support!

Stakeholders in tourism. This is a phrase often used in both academia and the tourism industry, but what does it actually mean?

The word stakeholder is a term that often throws people. In fact, it is commonly confused with the term shareholder . Whilst the two terms are not entirely dissimilar, the two mean two different things. So, lets clarify this- what exactly do we mean by stakeholders in tourism?

Stakeholders in tourism: What does it mean?

Stakeholder theory in tourism, stakeholder analysis in tourism, tourism organisations and operators, small and medium enterprises, utilities and infrastructure, communities, stakeholders in tourism: conclusion, further reading on stakeholders in tourism.

In this article I am going to explain to you want is meant by the term stakeholder and who the stakeholders in tourism are…. but before you read on, take a look at this short video that I created on the topic (and don’t forget to hit the like button too- thanks a million!)

A stakeholder is quite literally anyone who is involved with a particular project, organisation or industry. To put it simply, they hold a metaphorical ‘stake’.

A stakeholder in tourism can be an individual person, such as a tourist or a taxi driver. They could be a group of people such as a student group or a family. They could be a company or organisation.

A stakeholder is different from a shareholder . A stakeholder is a person, group or organisation who is in some way involved with a project. Whereas a shareholder is a person, group or organisation who owns part of the project (i.e. a share).

Therefore a stakeholder and a shareholder are two different things.

As such, when we refer to a stakeholder in tourism, we are NOT talking about somebody who is necessarily financially involved. Instead they could have a wide range of involvements, that are not necessarily related to ownership or money.

Stakeholder Theory is all about the way in which stakeholders should be taken into account when making business decisions.

Most of the world nowadays is built upon a capitalist society, within which there is a complex web of interconnected stakeholders. From customers through to suppliers, employees, investors and local communities, it is important that their needs and desires are taken into account in order to yield optimal results.

As such, Stakeholder Theory presupposes that an organisation should take into account and create value for all stakeholders when undertaking their planning and operational activities.

Stakeholder Theory was first introduced by R. Edward Freeman in 1984. Since this time businesses and organisations in a range of industries throughout the world have utilised Edward’s theoretical contributions in their operational plans.

Stakeholder Theory has become a key consideration in the research of business ethics and has served as a platform for further research and development in the area.

In order to ensure that a business, whether in tourism or in another industry, is effectively considering stakeholders needs and requirements, the organisation must carry out some form of stakeholder analysis.

Stakeholder analysis is a process whereby key stakeholders are identified and grouped according to levels of participation, interest and influence. The organisation must then determine how best to work with and satisfy said stakeholders.

In the context of tourism this could involve considering how best to work with the host community or working with the Government on tax policies, for example. Or it could involve investigating what products would be most popular with the tourists and what working conditions must be provided to yield the best outcomes from company employees.

To put it simply, stakeholder analysis is a complex task where each person, group or individual must be assessed in terms of their value to the organisation and what their needs and requirements are.

Theoretically then, if the organisation operates with all of its stakeholders’ needs and requirements in mind, they are more likely to satisfy stakeholders and therefore to conduct successful business operations.

Here is a bit more on exactly what stakeholder analysis is-

Who are the stakeholders in tourism?

The tourism industry is one of the biggest industries in the world. This means that there are many individuals, groups and organisations who are involved at some level or another.

As demonstrated in the diagram above, there are a number of key stakeholders who are commonly involved with the tourism industry. Through his work on the stakeholders in tourism, Peter Burns has classified stakeholders according to the type of engagement that they have: External, secondary or primary. This is demonstrated below.

I will provide a brief outline of the typical involvement that the above stakeholders are likely to have.

The Government plays in a key role in the tourism industry. Throughout the different levels of tourism policy and planning , the Government will dictate a variety of rules, requirements and practices.

From visa policies to the maintenance of public infrastructure, most tourism business will operate closely with Government.

There are a wide range of tourism organisations and operators.

From travel agents and airlines through to DMOs (Destination Management Organisations) and travel bloggers , to restaurants, hotels and tourist attractions, all of these organisations are key players in the tourism industry.

There are a wide range of businesses that are seen as stakeholders in tourism.

These may be directly associated with travel and tourism , such as an airline.

They may also be indirectly associated with tourism, such as a waste removal company (who deals with the waste created by tourism).

There are also many NGOs (non-governmental organisations) that are associated with the tourism industry.

These might include charities or non-profit organisations. Examples include the Tourism Society and The Travel Foundation .

Tourists are at the very heart of the tourism industry. Without tourists there would be no tourism!

The tourism industry relies on a wide range of suppliers.

From factories producing bedding used in hotels, to farmers growing the vegetables served in restaurants, there are many suppliers who work either directly or indirectly with the tourism industry.

One of the key stakeholders in tourism is the workforce.

Some have argued that the travel and tourism industry employs more people, directly and indirectly, than any other industry in the world (see my post on the economic impacts of tourism for more details).

Employees in the tourism industry are commonly undertaking low-paid jobs in areas such as hospitality, catering and customer service.

The education sector is also a stakeholder in tourism.

Many educational courses will involve visits to tourism areas to enhance the educational provision offered. For example a school history trip to the D-Day beaches in France .

Education is also offered to many employees who work in the tourism industry in the form of training.

In order for the tourism industry to function, certain utilities and infrastructure is required.

This means that the local power plant is a stakeholder in tourism, because it provides energy.

It also means that the builders, road workers and engineers are stakeholders in tourism, because they provide and maintain the necessary infrastructure.

Read more: You might also be interested in the following posts – What is the sharing economy and how does this influence tourism? – Authenticity in tourism: Explained -What is McDonaldisation and how does it work? – Economic leakage in tourism explained – How to write an awesome literature review

There is a strong relationship between transport and tourism .

In fact, the very definition of tourism , prescribes that a person must travel away from the place that they live in order to be a tourist (although with the growth of virtual tourism I would argue that there is a need to revise this widely used definition).

As such, the method of transport between point A and point B is an integral part of the tourism system, thus making the transport providers (airlines, trains, taxi etc) important stakeholders in tourism.

The final stakeholder in tourism that is worth mentioning is the community. In fact, many would argue that this is one of the most important stakeholders in tourism.

In my post on the social impacts of tourism , I outline how important it is for tourism organisations to work with the local community and what the consequences can be if tourism operators do not listen to the needs and requirements of the host community.

Good tourism management often involves community-level briefings, consultations and ongoing communication in order to ensure that this important stakeholder is empowered throughout the process of tourism development planning and operation.

Hopefully this post has helped you to understand what is meant by the term stakeholders in tourism. You should also now be familiar with the concepts of stakeholder theory and stakeholder analysis. There are many, many stakeholders in tourism and in this post I have provided you with lots of examples. Want to learn more? I have suggested some key texts for additional reading below.

• The 10 Major Types of Events
• The 8 Major Types of Cruise
• 150 types of tourism! The ultimate tourism glossary
• 20 Popular Types of Hotels Around The World
• 21 Types of Tourists Around The World

Liked this article? Click to share!

Understanding the Travel and Tourism Sector: A Business Perspective

The world of business is inextricably linked with the realm of travel and tourism. From corporate travel arrangements to the operation of hospitality giants, this sector plays a pivotal role in the global economy.

The travel and tourism industry is not merely about vacations and leisure; it encompasses a diverse array of activities, services, and businesses that fuel economies, create jobs, and shape the way we explore the world.

In this article, we will embark on a journey to understand the intricacies of the travel and tourism sector from a business standpoint. We will explore its significance in the global economy, delve into the core components of the industry, examine the economic impact, and discuss emerging trends and challenges.

Moreover, we will shed light on the business aspects of travel, highlighting the key players, revenue streams, and marketing strategies that drive success.

But why should business professionals, beyond those directly involved in tourism, care about this sector? The answer lies in the fact that travel and tourism intersect with nearly every industry. Whether you're in finance, technology, healthcare, or any other field, understanding how this sector operates can unlock opportunities for growth, collaboration, and innovation.

So, fasten your seatbelts and prepare for a journey through the multifaceted world of travel and tourism, where business meets exploration and economic growth meets wanderlust.

Travel and Tourism

Travel and tourism refer to the activities, services, and industries associated with people traveling to and staying in places outside their usual place of residence for leisure, business, or other purposes.

The Core Components of Travel and Tourism

At its heart, the travel and tourism sector comprises several key components, each playing a unique role in the industry's ecosystem. Understanding these components is crucial for any business professional aiming to navigate this dynamic sector effectively.

Here are the primary elements:

1. Accommodation: Accommodation providers are the backbone of the tourism industry. They include hotels, resorts, vacation rentals, and even unconventional options like Airbnb. These establishments cater to travelers by offering a place to stay, ranging from budget to luxury.

2. Transportation: Travel relies heavily on transportation. This segment encompasses airlines, cruise lines, railways, car rental services, and public transportation systems. Efficient transportation networks are vital for connecting travelers to their destinations.

3. Food and Beverage: Dining experiences are an integral part of any trip. This category includes restaurants, cafes, food trucks, and bars. Culinary tourism, where travelers explore local cuisine, has become a significant trend within this segment.

4. Travel Agencies: Travel agencies and tour operators serve as intermediaries between travelers and service providers. They help plan itineraries, book accommodations, and arrange transportation, making the travel process more convenient.

5. Attractions and Entertainment: Tourist destinations offer various attractions, from historical sites and museums to theme parks and natural wonders. Entertainment options such as theaters and music venues also contribute to the overall travel experience.

6. Travel Technology: In the digital age, technology has transformed the way people plan and experience travel. Online booking platforms, travel apps, and services like TripAdvisor have reshaped the industry's landscape.

7. Tourism Services: This category includes a range of services such as travel insurance, currency exchange, and visa assistance. These services ensure that travelers are prepared for their journeys and can navigate any unforeseen challenges.

8. Destination Management: Local governments and organizations play a pivotal role in managing and promoting tourist destinations. They invest in infrastructure, marketing, and sustainability efforts to attract visitors.

The Economic Impact of Travel and Tourism

From a business perspective, it's essential to grasp the significant economic impact of the travel and tourism sector. This industry is a global economic powerhouse that generates jobs, fosters investment and drives economic growth.

Here are some key statistics to illustrate the significance of travel and tourism :

• Job Creation: Travel and tourism directly support over 330 million jobs worldwide, accounting for 1 in 10 jobs globally.
• Contribution to GDP: In 2022, the travel and tourism sector contributed 7.6% to global GDP, highlighting its substantial economic footprint.
• Investment Magnet: This sector attracts investments in infrastructure, hotels, transportation, and more, further stimulating economic activity.
• Foreign Exchange Earnings: Tourism often serves as a vital source of foreign exchange earnings for many countries, boosting their balance of payments.
• SME Growth: Small and medium-sized enterprises (SMEs) play a significant role in the sector, benefiting from the opportunities created by tourism-related businesses.

The economic interplay between tourism and other industries is intricate.

For instance, the hospitality sector relies on agriculture for food supplies, airlines depend on the aerospace industry for aircraft and tourist destinations often collaborate with local artisans and businesses to promote cultural experiences.

In the business world, recognizing the economic clout of travel and tourism can open doors for collaboration, investment, and innovation. Many companies, even those seemingly unrelated to tourism, can find ways to tap into this lucrative market.

Emerging Trends and Challenges

The travel and tourism sector is continuously evolving, driven by changing consumer preferences, technological advancements, and global events. Business professionals must stay attuned to these trends and challenges to adapt and thrive in this dynamic industry.

Here are some notable developments:

1. Sustainable Tourism: Travelers increasingly prioritize eco-friendly and sustainable practices. Businesses that adopt green initiatives not only reduce their environmental footprint but also attract environmentally conscious travelers.

2. Digital Transformation: The digitalization of travel services has reshaped how consumers plan and book trips. Online platforms, artificial intelligence, and data analytics are instrumental in personalizing travel experiences.

3. Health and Safety: Recent global health crises have heightened travelers' concerns about safety and hygiene. Businesses must implement robust health and safety measures to regain consumer trust.

4. Shifts in Travel Behavior: The pandemic has brought about changes in travel behavior, with a focus on remote and nature-based destinations. Companies need to adapt their offerings to cater to these evolving preferences.

5. Regulatory Challenges: Navigating complex regulations, including visa requirements and health protocols, can be a challenge for travel businesses. Staying informed and compliant is crucial.

6. Geopolitical Factors: Political instability and international relations can significantly impact the tourism industry. Businesses must be prepared to adapt to changing geopolitical landscapes.

The Business of Travel and Tourism

Understanding how businesses operate within this sector is essential for both industry insiders and entrepreneurs looking to tap into this thriving market.

Role of Businesses in the Travel Sector

Businesses play a pivotal role in shaping the travel and tourism landscape. Whether you're a hotel chain, an airline, a tour operator, or a travel agency, your role is multifaceted, encompassing everything from customer service to marketing and sustainability initiatives.

• Customer-Centric Approach : At the heart of every successful travel and tourism business is a deep commitment to customer satisfaction. Travelers today expect exceptional service and unique experiences. From the moment a traveler starts planning their trip to the time they return home, businesses must focus on providing top-notch services, personalized recommendations, and seamless experiences.
• Innovation and Adaptation : The travel industry is highly competitive and constantly evolving. Successful businesses in this sector are those that innovate and adapt to changing trends. This could mean embracing digital technology, offering eco-friendly options, or creating new and exciting travel packages.

Business Models and Revenue Streams

To thrive in the travel and tourism sector, businesses employ various revenue models tailored to their specific niches. Here are a few common business models:

• Hospitality and Accommodation : Hotels, resorts, and vacation rentals rely on room bookings and additional services such as dining, spa treatments, and event hosting to generate revenue.
• Airlines and Transportation : Airlines make money through ticket sales, baggage fees, in-flight services, and partnerships with other travel-related businesses. Transportation services like taxis, trains, and cruise lines have similar revenue structures.
• Tour Operators and Travel Agencies : These businesses profit from organizing and selling travel packages, tours, and experiences. Commissions, booking fees, and tour sales are primary income sources.
• Online Travel Agencies (OTAs) : OTAs like Expedia and Booking.com aggregate information from various travel service providers and earn commissions on bookings made through their platforms.

Customer Experience and Service Excellence

In the digital age, the travel and tourism sector is driven by customer reviews and recommendations. Travelers share their experiences online, influencing the choices of others. Therefore, providing exceptional customer service is paramount. Here are some strategies to achieve service excellence:

• Personalization : Tailor recommendations and services to individual preferences.
• Seamless Booking and Travel : Make the booking process simple and provide support throughout the journey.
• Feedback and Improvement : Collect customer feedback and use it to enhance services continually.
• Crisis Management : Be prepared to handle unexpected situations, such as flight cancellations or health emergencies, with professionalism and empathy.

Marketing and Promotion Strategies

Effective marketing is essential for attracting travelers to your business. Here are some strategies commonly used in the travel and tourism industry:

• Digital Marketing : Utilize online channels such as social media, search engine optimization (SEO), email marketing, and paid advertising to reach a global audience.
• Content Marketing : Create engaging content, including blog posts, videos, and travel guides, to inspire and inform potential travelers.
• Partnerships : Collaborate with influencers, other businesses, and tourism boards to expand your reach and access new markets.
• Sustainability Promotion : Highlight your commitment to sustainable and responsible travel practices, as eco-conscious travelers seek eco-friendly options.

The business of travel and tourism is a multifaceted realm that demands a relentless focus on customer satisfaction, innovation, and responsible practices.

Success in this sector requires a deep understanding of your niche, a commitment to service excellence, and strategic marketing efforts. As the travel industry continues to evolve, businesses that can adapt and offer unique, memorable experiences will undoubtedly thrive in this exciting and ever-changing market.

Key Players in the Travel and Tourism Industry

As we dive deeper into the business of travel and tourism, it's crucial to recognize the key players that shape this industry. These players, ranging from airlines to accommodation providers and travel agencies, contribute to the diverse ecosystem of travel and tourism.

Understanding their roles and significance is essential for anyone interested in this dynamic sector.

Airlines and Aviation

Airlines are the lifelines of global travel. They provide the means for travelers to reach their destinations quickly and efficiently. Here's an overview of their role in the industry:

• Passenger Transportation : Airlines transport millions of passengers daily, connecting cities and countries across the globe. They generate revenue through ticket sales, baggage fees, and in-flight services.
• Cargo Services : Airlines also play a pivotal role in transporting goods and cargo, contributing significantly to international trade and logistics.
• Global Networks : Major airlines operate extensive global networks, allowing travelers to reach virtually any corner of the world.

Hotel Chains and Accommodation Providers

The hospitality sector, including hotels, resorts, and vacation rentals, is another cornerstone of the travel and tourism industry. Here's how they contribute:

• Lodging : These businesses offer lodging options, from budget-friendly to luxury, catering to diverse traveler preferences.
• Dining and Services : Many hotels provide dining options, spa services, event hosting, and recreational facilities, enhancing the guest experience and generating additional revenue.
• Destination Attraction : Iconic hotels and resorts often become attractions in themselves, drawing travelers to specific destinations.

Tour Operators and Travel Agencies

Tour operators and travel agencies specialize in creating and selling travel packages and experiences. Their roles include:

• Curating Experiences : They design itineraries and packages that offer unique and immersive travel experiences, from adventure tours to cultural excursions.
• Booking and Logistics : These businesses handle the logistics of travel, including accommodations, transportation, and activities, streamlining the process for travelers.
• Expertise : Tour operators and travel agencies provide expert guidance, helping travelers navigate complex travel decisions.

Destination Management Companies

Destination management companies (DMCs) focus on specific regions or destinations. Their roles encompass:

• Local Expertise : DMCs have in-depth knowledge of their respective destinations, enabling them to offer specialized services and experiences.
• Customized Services : They work closely with travel planners and agencies to tailor experiences for groups and individuals.
• Sustainability : DMCs often play a vital role in promoting responsible tourism practices within their destinations.

Online Travel Agencies (OTAs)

Online travel agencies have become a dominant force in the industry, leveraging digital platforms to connect travelers with various travel services. Here's what they do:

• Aggregation : OTAs aggregate information from airlines, hotels, and other travel service providers, offering a wide array of choices to travelers.
• Booking Platforms : They provide convenient booking platforms, allowing travelers to book flights, accommodations, and more in one place.
• Reviews and Recommendations : OTAs often feature user reviews and recommendations, influencing traveler decisions.

Understanding the roles of these key players in the travel and tourism industry is essential for anyone considering entering this sector.

Each player contributes uniquely to the travel experience, from transportation to accommodation and beyond. Successful businesses often collaborate with multiple stakeholders to offer comprehensive and memorable travel experiences to their customers.

Travel and Tourism Post-COVID-19

The travel and tourism industry, like many others, faced unprecedented challenges during the COVID-19 pandemic. Lockdowns, travel restrictions, and health concerns brought international travel to a standstill. However, the industry has displayed remarkable resilience and adaptability.

Let's explore how the sector is recovering and adapting in a post-pandemic world.

Impact of the Pandemic on the Industry

• Travel Restrictions : Stringent travel restrictions, including border closures and quarantine requirements, severely impacted international travel. Airlines faced a sharp decline in passenger numbers.
• Hospitality Struggles : Hotels and accommodation providers experienced a dramatic drop in occupancy rates. Many temporarily closed or adapted to offer quarantine and isolation services.
• Cruise Industry Challenges : Cruise lines faced significant setbacks due to onboard outbreaks. The industry had to reimagine health and safety protocols.
• Shift to Domestic Travel : With international travel restrictions, many travelers turned to domestic and regional destinations, boosting local tourism.
• Digital Transformation : The pandemic accelerated the adoption of digital technologies for contactless bookings, health monitoring, and communication.

Recovery and Adaptation Strategies

The travel and tourism industry is rebounding, thanks to a combination of factors:

• Vaccination Campaigns : Widespread vaccination campaigns have increased traveler confidence, making international travel safer.
• Health and Safety Protocols : Airlines, hotels, and other businesses have implemented robust health and safety measures to reassure travelers.
• Flexible Booking Policies : Many travel companies introduced flexible booking and cancellation policies to accommodate changing travel plans.
• Sustainability Focus : There's a growing emphasis on sustainable and responsible tourism, with businesses integrating eco-friendly practices.
• Digitalization : The industry continues to embrace digital technologies, offering contactless experiences and personalized services.
• Collaboration : Stakeholders across the industry are collaborating to rebuild and promote destinations.

Future Outlook and Resilience

The travel and tourism industry is poised for recovery and growth in the coming years. Here's what the future may hold:

• Pent-Up Demand : Many travelers postponed their plans during the pandemic, leading to pent-up demand for leisure and business travel.
• Sustainable Travel : Sustainable and eco-conscious travel is gaining momentum. Travelers are increasingly choosing destinations and businesses committed to environmental responsibility.
• Tech Integration : Technology will continue to play a significant role, with advancements in AI, mobile apps, and data analytics enhancing the travel experience.
• Health and Safety : Health and safety measures will remain a priority, with businesses maintaining rigorous protocols.
• Remote Work and Travel : Remote work trends may encourage a blend of work and leisure travel, with more extended stays in diverse locations.
• Resilience Planning : The industry is developing resilience plans to better handle future crises and disruptions.

The travel and tourism industry's ability to adapt and innovate in the face of adversity demonstrates its resilience. As it recovers and evolves, it offers promising opportunities for businesses and travelers alike.

The key to success lies in embracing change, prioritizing safety, and delivering exceptional experiences that meet the evolving needs of travelers in a changing world.

Sustainable Tourism and Responsible Business Practices

In a world increasingly concerned about the environment and social responsibility, the travel and tourism industry is under scrutiny to adopt more sustainable and responsible practices.

Let's delve into the importance of sustainable tourism and how businesses can contribute to a greener and more ethical travel sector.

Environmental and Social Responsibility

• Reducing Carbon Footprint : The travel industry is a significant contributor to greenhouse gas emissions. Airlines, for example, are exploring biofuels and more fuel-efficient aircraft to reduce their carbon footprint.
• Preserving Natural Resources : Eco-conscious travelers seek destinations that protect and preserve natural resources. Businesses can contribute by implementing eco-friendly initiatives like energy-efficient facilities and waste reduction programs.
• Conservation Efforts : Supporting local conservation projects and wildlife protection initiatives can be a part of responsible tourism. This can involve financial contributions or active participation.
• Respecting Local Cultures : Responsible tourism respects and celebrates local cultures and traditions. It involves engaging with local communities in a respectful and sustainable manner.
• Community Involvement : Businesses can support the communities they operate in through job creation, fair wages, and community development projects.

Sustainable Tourism Certifications and Initiatives

• Eco-Certifications : Numerous certifications, such as EarthCheck and Green Key , help businesses showcase their commitment to sustainability. These certifications often involve rigorous audits of a company's environmental practices.
• Zero-Waste Initiatives : Some hotels and resorts aim to become zero-waste establishments, recycling and repurposing nearly all their waste.
• Wildlife Conservation : Tour operators and businesses can partner with wildlife conservation organizations to promote ethical wildlife experiences.
• Local Sourcing : Restaurants and hotels can prioritize local sourcing of food and materials, reducing transportation-related carbon emissions.
• Plastic Reduction : Many businesses are eliminating single-use plastics and opting for sustainable alternatives.

Benefits of Responsible Tourism for Businesses

• Competitive Advantage : Travelers increasingly seek sustainable and responsible options. Businesses that embrace these practices gain a competitive edge.
• Cost Savings : Sustainable practices often lead to cost savings through reduced energy and resource consumption.
• Enhanced Reputation : Businesses committed to responsible tourism build a positive reputation and attract like-minded customers.
• Legal Compliance : Adhering to eco-friendly and ethical standards ensures compliance with evolving environmental and social regulations.
• Long-Term Viability : By protecting the environment and supporting local communities, businesses contribute to the long-term viability of their destinations.
• Guest Satisfaction : Eco-conscious travelers appreciate businesses that share their values, leading to higher guest satisfaction and loyalty.

The travel and tourism sector's future hinges on sustainable and responsible practices. Businesses that prioritize environmental and social responsibility not only contribute to a healthier planet but also position themselves for long-term success in an industry undergoing profound changes.

As a business professional, understanding and adopting these practices can be a strategic advantage in a world where ethical considerations increasingly influence consumer choices.

Hostile Takeovers

In a hostile takeover, the acquiring company pursues the target company despite the target's resistance. Hostile takeovers often involve aggressive tactics, such as tender offers directly to shareholders or attempts to replace the target's board of directors.

Case Studies: Successful Businesses in Travel and Tourism

To gain deeper insights into the strategies and approaches that have propelled certain businesses to success in the travel and tourism sector, let's examine a few notable case studies.

These examples showcase how innovation, adaptability, and a customer-centric approach can make a significant impact in this dynamic industry.

Airbnb: Revolutionizing Accommodation

Airbnb, founded in 2008, has transformed the hospitality sector. This online marketplace connects travelers with unique accommodations offered by hosts worldwide. What sets Airbnb apart?

Key Success Factors:

• Platform Model : Airbnb operates as a platform, allowing hosts to list their properties and travelers to book them. This asset-light model means Airbnb doesn't own properties, reducing capital requirements.
• User Reviews : User-generated reviews and ratings build trust among users. Travelers can make informed choices based on the experiences of previous guests.
• Personalization : Airbnb's recommendation engine suggests accommodations based on user preferences, enhancing the customer experience.
• Diverse Offerings : From treehouses to castles, Airbnb offers a wide range of unique accommodations, appealing to travelers seeking authentic experiences.
• Host Community : Airbnb invests in building a strong host community, providing support and resources to hosts.

Cross-Border Mergers and Acquisitions: Global Expansion

Cross-border M&A transactions involve companies from different countries coming together. These deals offer opportunities for global expansion but also present unique challenges.

Booking.com: Data-Driven Booking

Booking.com, founded in 1996, is a global online travel agency. It leverages technology and data to simplify travel booking.

• Vast Inventory : Booking.com offers a wide range of accommodation options, from hotels to vacation rentals. This extensive inventory caters to diverse traveler preferences.
• User Experience : The platform's user-friendly interface and transparent booking process contribute to its popularity.
• Data Analytics : Booking.com uses data analytics to understand traveler behavior, enabling personalized recommendations and pricing strategies.
• Global Reach : With a presence in over 220 countries and territories, Booking.com serves a global audience.
• Instant Confirmation : Providing real-time booking confirmation enhances the customer experience.

Delta Air Lines: Customer-Centric Air Travel

Delta Air Lines, a major U.S. carrier founded in 1924, is known for its customer-centric approach.

• Reliability : Delta prioritizes operational reliability, minimizing flight cancellations and delays.
• Fleet Upgrades : Investing in a modern and efficient fleet enhances the passenger experience and reduces operating costs.
• Customer Service : Delta emphasizes excellent customer service, and its efforts are reflected in high customer satisfaction ratings.
• Global Alliances : Participation in global airline alliances expands route networks and offers travelers more choices.
• Innovation : Delta embraces innovation, introducing features like biometric boarding and in-flight entertainment options.

These case studies highlight the diverse strategies and approaches that have driven success in the travel and tourism sector. From disruptive online marketplaces to data-driven booking platforms and customer-centric airlines, businesses that prioritize innovation, customer experience, and adaptability are well-positioned for growth.

By studying these examples, business professionals can gain valuable insights into the industry's evolving landscape and identify opportunities to innovate and excel in their own travel and tourism endeavors.

Lessons Learned from Industry Leaders

The travel and tourism sector offers a treasure trove of lessons for business professionals across various industries. Let's distill some key takeaways from the successes and innovations of industry leaders:

1. Customer-Centricity Is Paramount

Whether you're running an airline, hotel, or travel agency, prioritizing the customer experience is non-negotiable. Happy and satisfied customers become loyal patrons and brand advocates. Invest in personalized services, efficient booking processes, and responsive customer support.

2. Embrace Technology and Data

Technology is a game-changer in the travel industry. From data analytics that inform pricing strategies to mobile apps that enhance on-the-go experiences, leveraging technology can set your business apart. Be open to adopting new tools and systems that improve efficiency and customer satisfaction.

3. Diversity and Choice Matter

Offering a diverse range of products or services can attract a broader audience. In the travel sector, this means providing various accommodation types, transportation options, and tour packages. Embrace diversity to meet the unique preferences of your customers.

4. Transparency Builds Trust

Transparency in pricing, policies, and terms and conditions builds trust with customers. Hidden fees and ambiguous policies can lead to dissatisfaction. Clear communication and honesty go a long way in establishing credibility.

5. Sustainability Is the Future

Sustainability and responsible tourism are becoming central to the industry's ethos. Travelers are increasingly conscious of their environmental impact. Consider eco-friendly practices and promote responsible tourism. It's not only good for the planet but also a selling point for your business.

6. Innovate or Stagnate

Innovation is the lifeblood of the travel and tourism sector. Whether it's introducing new services, improving efficiency, or enhancing the customer journey, staying ahead requires a commitment to innovation. Monitor industry trends and be open to creative solutions.

7. Globalization Expands Reach

Participating in global networks and alliances can expand your business's reach. Collaborate with international partners to offer customers a wider range of options. Globalization also provides resilience in the face of economic fluctuations.

8. Resilience Is Crucial

The industry has weathered numerous storms, from economic crises to health emergencies. Building resilience into your business plans, such as having contingency measures for crises, is essential. Flexibility and adaptability are key.

9. Community and Culture Matter

Embrace the culture and communities where your business operates. Engage with local communities, respect their traditions, and contribute positively. This fosters goodwill and can lead to meaningful partnerships.

10. Continuous Learning Is a Competitive Advantage

The travel and tourism sector is ever-evolving. Continuous learning and staying informed about industry trends and regulations are essential. Attend conferences, workshops, and industry events to network and gain insights.

Incorporating these lessons into your business strategy can set you on a path to success in the dynamic and rewarding world of travel and tourism. By combining innovation, customer focus, and a commitment to sustainability, you can thrive in an industry that promises new horizons and unforgettable experiences for travelers worldwide.

The travel and tourism sector represents a dynamic and resilient industry with a significant impact on the global economy. As a business professional, understanding the nuances and opportunities within this sector is paramount. In this comprehensive guide, we've explored the multifaceted world of travel and tourism, delving into its significance, components, trends, and challenges.

We've seen how the industry intersects with business, offering a wide array of opportunities for entrepreneurs and established enterprises alike. Whether you're considering venturing into travel-related ventures or seeking to enhance an existing business through tourism, the sector holds immense potential.

Key takeaways from this exploration include:

• The Economic Powerhouse : Travel and tourism contribute significantly to GDP, job creation, and foreign exchange earnings in many countries. This sector's resilience is evident through its ability to rebound from crises.
• Diverse Components : The industry encompasses hospitality, transportation, attractions, travel services, and more, creating a rich tapestry of business opportunities.
• Trends and Challenges : Emerging trends like sustainable tourism and digital transformation offer avenues for innovation. Yet, challenges such as health concerns and environmental responsibility must be addressed.
• The Business of Tourism : Customer-centricity, technology adoption, transparency, and sustainability are vital principles for success in this sector.
• Key Players : Airlines, hotel chains, tour operators, and online travel agencies are among the key players shaping the industry's landscape.
• Post-COVID-19 Era : The pandemic prompted significant shifts in travel behavior. Recovery strategies and adaptability are critical for businesses in the post-COVID-19 world.
• Sustainable Tourism : Responsible practices not only benefit the environment but also appeal to conscious travelers and can drive business success.
• Lessons from Industry Leaders : Customer-centricity, innovation, transparency, and resilience are valuable takeaways from successful travel and tourism businesses.

As the world evolves, so do the travel and tourism opportunities. By staying informed, embracing innovation, and aligning with sustainability, you can position your business for success in an industry that promises both profitability and the chance to create unforgettable experiences for travelers around the globe.

Now, armed with insights from this guide, you're better equipped to navigate the exciting and ever-changing world of travel and tourism, contributing to its growth and shaping its future. Bon voyage!

• United Nations World Tourism Organization (UNWTO). (2022). Tourism Highlights 2022 Edition. Link
• World Travel & Tourism Council (WTTC). (2022). Economic Impact Reports. Link
• International Air Transport Association (IATA). (2022). IATA Economics. Link
• Deloitte. (2022). Travel, Hospitality, and Leisure Reports. Link
• Statista. (2022). Statistics and Market Data on Travel and Tourism. Link
• McKinsey & Company. (2022). Travel, Logistics & Transport Infrastructure. Link
• Booking.com. (2023). Link
• TripAdvisor. (2023). GreenLeaders. Link
• The New York Times. (2023). Travel and Tourism. Link
• National Geographic. (2023). Sustainable Travel. Link
• The World Bank. (2023). Tourism. Link
• World Tourism Organization (2022). Global Code of Ethics for Tourism. Link

Tumisang Bogwasi

2X Award-Winning Entrepreneur | Empowering Brands to Generate Leads, Grow Revenue with Business Strategy and Digital Marketing | Founder, CEO of Fine Group

Complete Overview of the 5 Sectors in the Tourism Industry

Overview of the sectors in tourism

The interplay of sectors in tourism, impact of each sector on the tourism industry, challenges and opportunities in each sector.

The tourism industry is one of the most dynamic landscapes . That’s primarily because it consists of several unique sectors. Each one of these sectors goes through comprehensive changes and is subject to many factors. 

Nevertheless, understanding these sectors is quite essential! Why? Because it can help you make informed business decisions, identify valuable growth opportunities, future-proof your travel brand, and, ultimately, set it up for success.

Below you can find an in-depth analysis of the different sectors in tourism, how they affect each other, and the industry as a whole. Finally, you will discover unique challenges and opportunities for each sector.

The tourism vertical is quite extensive. It consists of six sectors, making it one of the most diverse industries. These sectors are transportation, accommodation, food and beverage, travel agencies, and attractions. Let’s take a closer look at the sectors, their sizes, and their economic impact.

Transportation in Tourism

Transportation in tourism is a big sector. It encompasses a wide range of forms of travel and enables tourists to reach their destinations safely and efficiently. The sub-sectors include air travel, land transportation, and maritime travel. 

When it comes to inbound tourism, air travel comprises the largest share, 57% . Travelers trying to reach faraway destinations often choose from various travel options. One can actually gauge the momentum of the tourism sector recuperation after the COVID-19 pandemic by looking at air transportation trends. The latest report states that total air traffic is up by 52% compared to 2022 . 

Land transportation for tourists has been increasing in recent years. A recent study reveals that car transportation makes up 77% of all journeys . The reasons that explain this trend are flexibility, price, and independence. 

Maritime travel or cruise tourism is also experiencing steady growth. This subsector is estimated to continue to grow at a CAGR of 10.4% from 2022 to 2031 .

Transportation is one of the pillars of the tourism industry, and as such, it has a tremendous economic impact on the vertical – its efficient functioning is critical for not only attracting tourists to destinations but also enabling them to reach their desired locations . It allows companies to generate revenue through ticket sales. However, by enabling tourists to reach their destinations, it also drives economic activity in hospitality.

Accommodation in Tourism

All the lodging options tourists can choose from comprise the accommodation subsector of the tourism industry. It includes hotels, resorts, hostels, vacation rentals, Airbnb, and more.  

The hotel occupancy rates metric is the best one to keep track of the developments in this subsector simply because there are almost 750,000 hotels and resorts worldwide . In April 2022, hotel occupancy rates were highest in the Americas, reaching 64% . Europe was in second place with the hotel occupancy rates at 63%, followed by the Middle East and Africa at 49% and the Asia Pacific at 48%. 

When it comes to the economic impact, the best metric to track is revenue per available room or RevPAR. The RevPar reached $93.27 in 2022, an 8.1% increase compared to 2019 . The average daily rate is up by 13.6%, which makes $148.83 for the same period. Occupancy rates are still not at the pre-pandemic level, but with only a 4.9% difference, they are getting there. 

The revenue this sector generates has a tremendous impact. The money is used toward creating new jobs, developing infrastructure, and boosting local economies. Local communities and governments also benefit from the taxes and fees collected from accommodation providers. 

Food and Beverage in Tourism

The food and beverage tourism sector is quite diverse and doesn’t just include restaurants and cafes. It also encompasses various dining establishments where tourists can experience local culinary traditions and cuisine.

According to the National Restaurant Association research, the sales in the fine dining segment to travelers and visitors went down by 41% . However, total restaurant industry sales are projected to reach $.1.2 trillion by 2030 , and traveler purchases will significantly contribute to this positive development. The food tourism market is projected to reach $1,796.5 billion by 2027 in size, which is a 16.8% growth given that its size in 2022 is $1,116.7 billion. 

One of the most extensive studies done recently encompassed the data from over 50,000 travelers to conclude that 64% of travelers base their traveling decisions on the food and drink options available at their destination. 

There are two sides to the economic impact of food and beverage in tourism. First, it helps generate more direct revenue, and second, it fosters culinary entrepreneurship and can significantly boost agricultural and food production sectors. It can also help create more job opportunities.

Travel Agencies and Tour Operators 

Travel agencies are travel brands that specialize as intermediaries. They provide tourists with access to accommodation and other tourism options. Travel agencies can also offer various services, such as tour packages, accommodation reservations, and transportation booking . 

Online travel agencies or OTAs are currently dominating this space. In 2022, the online global travel market size reached $475 billion and is projected to reach over one trillion US dollars by 2030. OTAs, including the most significant players such as Booking.com, Trip.com, and Expedia, captured over 40% of the total market . 

While travel agencies continue to generate revenue, it’s important to note that global travel agency revenue is growing at a CAGR of 2.5% . 

Travel agencies, both offline and online, are vital parts of the entire travel ecosystem. They both contribute to the whole sector and facilitate tourism overall. Travel agencies stimulate economic activity through other sectors as they are responsible for actually funneling tourists to destinations. They also help create new jobs, improve travel satisfaction, and ensure repeat business.

Tour operators, the companies that create packages for travel agencies to sell, also make up a sizable sub-sector. The market size of the tour operators industry in the US in 2022 was $8.6 billion . The US market will continue to grow at a CAGR of 17% to reach $30 billion in size by 2023 . Across the ocean, we have Europe, with its tour operator market size projected to reach $74 billion by 2026 , with Germany as the leader in the field with a market size of $24 billion.

Tourism Attractions

Tourism attraction is a place of interest. Generally speaking, tourism attractions’ primary role is to attract tourists to a particular destination. It can be anything from natural wonders and historical sites to museums and cultural landmarks. 

According to the latest data , the most visited attractions are spread across the globe. These include Nagashima Spa Land, Japan; Universal Studio, USA; Palace of Versailles, France; and Bourbon Street, USA.

Theme parks are also among the most popular tourist attractions. In 2022, these parks attracted almost 200 million visitors . The museums are right behind theme parks, with an attendance of 57 million. 

Tourism attractions also have a significant economic impact. They support jobs in the vicinity, boost local economies, and positively impact the overall tourist experience. They are also the number one factor that often drives visitation. 

The most important thing to understand about sectors in the tourism industry is that they are not separated from one another. In fact, the interplay of sectors in tourism is quite elaborate and happens on so many different levels. 

Let’s start with transportation. The affordable, dependable, and reliable means of transportation can facilitate visitation. Transportation is also responsible for the tourist experience. It can improve access to tourism attractions, make tourism agencies more attractive, and drive sales in the accommodation and food and beverage sectors. 

Accommodation in tourism often interplays with travel agencies. It can help improve the brand image of a travel agency by enhancing the stay experience. It can also lead to increased food and beverage sales if the hotel or a resort has its own facilities, such as a restaurant or bar. In return, the food and beverage sector can improve the standing of accommodations and destinations in the eyes of travelers.

Travel agencies interplay with all of the sectors. The services they offer have to live up to the descriptions found on the websites. They can help boost the average daily rates for accommodation providers, increase booking rates at transportation companies, and bring more people to attractions. 

The best way to look for the interplay of sectors in tourism is to closely examine partnerships. The transportation, accommodation, and other various travel brands have recognized the value of the interplay and decided to partner up to reap even more benefits. 

The most common are partnerships between airlines, hotels, and travel agencies. It enables airlines to remain competitive while helping hotels and travel agencies maintain high customer satisfaction and enhanced travel experience.  

The real-world example that comes to mind is Wilderness Safaris’ partnership with Qatar Airways . The big hospitality brand wanted its guests to arrive well-fed & rested, ready to engage in adventures in the great outdoors. Given that Qatar Airways received high marks in the catering and business class areas, it was the perfect pick for Wilderness Safaris.

Another real-world example is AEGAN’s partnership with Booking.com. Here, we have a transportation company and OTA joining forces together to reap unique benefits. AEGAN, an airline brand, wanted its customers to be able to conveniently check hotel availability in real-time, book accommodation at competitive prices, and benefit from friendly cancellation policies. 

To encourage travelers to choose AEGAN services through Booking.com, the company also launched the Frequent Flyer Program and awarded consumers extra miles with every hotel booking using AEGAN transportation services.

As one of the largest industries, the tourism vertical contributes 10% of all jobs or 333 million . All sectors contribute to job creation and the global tourism market size of $2.4 trillion . 

Accommodation and food and beverage sectors have a significant impact on the tourism industry as well. In terms of GDP, these sectors contributed 3.3% , a significant growth, given that the US average is 2.87% .

In raw numbers, it looks like the following. Global accommodation in tourism generates $903 billion . Almost half of it, 49%, comes from the USA sector. Europe, APAC, Middle East, and Africa contribute with their shares of 25%, 22%, 3%, and 2%, respectively. The global hotel and resort industry currently employs approximately 10.5 million people . 

The global travel agency services industry’s revenue has reached $475 in 2023 . Travel agencies in the US employ 402,835 people. Over the last 5 years, the number of people working in the travel agency sector went up by 12%. On a global scale, travel agencies employ approximately 2 million people . 

While every industry and sub-sector is unique, they all share a few things in common. In each one of them, you can find a couple of opportunities and encounter a few challenges. Let’s see what challenges and opportunities there are in each sector. 

Transportation in tourism

Challenges:

• Ever-increasing prices of fuel – to remain profitable, airlines need to manage operational costs, and one of the enormous costs is fuel;
• Becoming green – transportation companies need to reduce carbon emissions and adopt sustainable travel practices, which can be challenging and costly;
• Infrastructure in remote destinations – building roads and developing infrastructure can be pretty challenging in remote destinations with tremendous tourism potential.

Opportunities:

• Using technological advancements – transportation technologies can help improve customer experience and improve operational efficiencies;
• Implementing sustainable practices – becoming eco-friendly can help brands attract environmentally conscious travelers;
• Improving connectivity – with connectivity expansion, transportation brands can help local economies and create new tourism opportunities.

Accommodation in tourism

• Online offer – as more and more competitors join online marketplaces, accommodation providers need to embrace a new paradigm;
• Overtourism – limited accommodation capacity is a massive problem in destinations where over-tourism is a norm;
• Guest safety and security – in some situations and locations, accommodation providers can struggle with ensuring guest safety and security.
• Going digital – embracing cutting-edge technologies can help enhance guest experience and ensure longer and repeat stays;
• Personalized accommodation – offering boutique and experiential lodging can help accommodation providers cater to modern travelers;
• Partnerships – aligning with relevant companies and local brands can help providers attract more travelers.

Food and beverage in tourism

• Quality and safety of food – upholding the highest food quality and safety standards can be challenging;
• Fluctuating demand – seasonal destinations can struggle with handling fluctuating food and beverage demand;
• Shifting dietary preferences – guests may have diverse dietary preferences, which require planning and management.
• Innovation – innovative dishes and fusion cuisines can attract guests who feel more adventurous;
• Farm-to-table – cooperating with local farmers can help bring fresh ingredients to restaurants;
• Focus on local cuisine – bringing local dishes into the spotlight can help attract people interested in authentic cuisine.

Travel agencies

• Harsh competition – travel agencies have to compete against hundreds of online travel booking platforms;
• Tailored services – many travelers look for personalized experiences, which can prove hard to provide if you are a small agency;
• Agility is required – getting ready for a wide range of disruptions is costly and hard to sustain at scale.
• Customization – offering unique packages can help generate more bookings;
• Multi-channel presence – being present across online and offline channels is paramount;
• Focus on a niche market – staying focused on a specific travel niche can help you truly cater to the needs of your target customers.

Tourism attractions

• Preservation – sustainable management of tourism attractions can be challenging; 
• Seasonality – if traction generates the majority of the revenue through seasonal visitors, it can be a problem;
• Infrastructure demand – a growing number of visitors can cause infrastructure strain.
• Collaboration – partnerships can help create a better ecosystem;
• Interpretive guides and interactive displays – interpretive experiences can delight a wide range of visitors;
• Expanding offer – You can offer new activities to make the offer more attractive.

As you can see, the tourism industry landscape is quite comprehensive, with a lot of moving pieces on the board, and the best way to understand the vertical is to take a look at its subsectors.

Hopefully, now you understand transportation, accommodation, food and beverage, travel agencies, and tourism attraction sectors better. They are all intertwined, with many interplay activities. While the tourism sector comes with its fair share of challenges, there are also many opportunities. The current stats and projections tell us that all subsectors are prosperous and expected to grow in the foreseeable future. 

Subscribe to our newsletter

Yay you are now subscribed to our newsletter.

Marc Truyols has a degree in Tourism from the University of the Balearic Islands. Marc has extensive experience in the leisure, travel and tourism industry. His skills in negotiation, hotel management, customer service, sales and hotel management make him a strong business development professional in the travel industry.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

Related Posts

Unveiling the 13 Hottest Travel Trends of 2024

13 min. No one knows better than you how dynamic the realm of travel is. Dynamic shifts brought by technological strides, ever-changing traveler priorities, and global events are the new normal in 2024.  How do you navigate this landscape that keeps transforming? You should familiarize yourself with the very travel trends that shape the world […]

30 Most Important Travel Industry Events for 2024

30 min. Many travel industry experts believe that travel industry events play a pivotal role in shaping the future of the travel industry. Why is this so?  It’s because these events foster collaboration, networking, and innovation among key stakeholders in this vertical. As a platform for sharing best practices, trends, and insights, travel industry events […]

Empowering Equality: Mize Leads the Way in Travel Technology

7 min. Are we all equal? Are we all equally represented in the business world? In some professional sectors, there might still be some under-representation of women, minorities, and the LGBTQIA+ community. The tech sphere is no different, but is the travel tech sector a spark of hope? As the business world becomes more diverse, […]

The future of tourism: Bridging the labor gap, enhancing customer experience

As travel resumes and builds momentum, it’s becoming clear that tourism is resilient—there is an enduring desire to travel. Against all odds, international tourism rebounded in 2022: visitor numbers to Europe and the Middle East climbed to around 80 percent of 2019 levels, and the Americas recovered about 65 percent of prepandemic visitors 1 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. —a number made more significant because it was reached without travelers from China, which had the world’s largest outbound travel market before the pandemic. 2 “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Recovery and growth are likely to continue. According to estimates from the World Tourism Organization (UNWTO) for 2023, international tourist arrivals could reach 80 to 95 percent of prepandemic levels depending on the extent of the economic slowdown, travel recovery in Asia–Pacific, and geopolitical tensions, among other factors. 3 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. Similarly, the World Travel & Tourism Council (WTTC) forecasts that by the end of 2023, nearly half of the 185 countries in which the organization conducts research will have either recovered to prepandemic levels or be within 95 percent of full recovery. 4 “Global travel and tourism catapults into 2023 says WTTC,” World Travel & Tourism Council (WTTC), April 26, 2023.

Longer-term forecasts also point to optimism for the decade ahead. Travel and tourism GDP is predicted to grow, on average, at 5.8 percent a year between 2022 and 2032, outpacing the growth of the overall economy at an expected 2.7 percent a year. 5 Travel & Tourism economic impact 2022 , WTTC, August 2022.

So, is it all systems go for travel and tourism? Not really. The industry continues to face a prolonged and widespread labor shortage. After losing 62 million travel and tourism jobs in 2020, labor supply and demand remain out of balance. 6 “WTTC research reveals Travel & Tourism’s slow recovery is hitting jobs and growth worldwide,” World Travel & Tourism Council, October 6, 2021. Today, in the European Union, 11 percent of tourism jobs are likely to go unfilled; in the United States, that figure is 7 percent. 7 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022.

There has been an exodus of tourism staff, particularly from customer-facing roles, to other sectors, and there is no sign that the industry will be able to bring all these people back. 8 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022. Hotels, restaurants, cruises, airports, and airlines face staff shortages that can translate into operational, reputational, and financial difficulties. If unaddressed, these shortages may constrain the industry’s growth trajectory.

The current labor shortage may have its roots in factors related to the nature of work in the industry. Chronic workplace challenges, coupled with the effects of COVID-19, have culminated in an industry struggling to rebuild its workforce. Generally, tourism-related jobs are largely informal, partly due to high seasonality and weak regulation. And conditions such as excessively long working hours, low wages, a high turnover rate, and a lack of social protection tend to be most pronounced in an informal economy. Additionally, shift work, night work, and temporary or part-time employment are common in tourism.

The industry may need to revisit some fundamentals to build a far more sustainable future: either make the industry more attractive to talent (and put conditions in place to retain staff for longer periods) or improve products, services, and processes so that they complement existing staffing needs or solve existing pain points.

One solution could be to build a workforce with the mix of digital and interpersonal skills needed to keep up with travelers’ fast-changing requirements. The industry could make the most of available technology to provide customers with a digitally enhanced experience, resolve staff shortages, and improve working conditions.

Would you like to learn more about our Travel, Logistics & Infrastructure Practice ?

Complementing concierges with chatbots.

The pace of technological change has redefined customer expectations. Technology-driven services are often at customers’ fingertips, with no queues or waiting times. By contrast, the airport and airline disruption widely reported in the press over the summer of 2022 points to customers not receiving this same level of digital innovation when traveling.

Imagine the following travel experience: it’s 2035 and you start your long-awaited honeymoon to a tropical island. A virtual tour operator and a destination travel specialist booked your trip for you; you connected via videoconference to make your plans. Your itinerary was chosen with the support of generative AI , which analyzed your preferences, recommended personalized travel packages, and made real-time adjustments based on your feedback.

Before leaving home, you check in online and QR code your luggage. You travel to the airport by self-driving cab. After dropping off your luggage at the self-service counter, you pass through security and the biometric check. You access the premier lounge with the QR code on the airline’s loyalty card and help yourself to a glass of wine and a sandwich. After your flight, a prebooked, self-driving cab takes you to the resort. No need to check in—that was completed online ahead of time (including picking your room and making sure that the hotel’s virtual concierge arranged for red roses and a bottle of champagne to be delivered).

While your luggage is brought to the room by a baggage robot, your personal digital concierge presents the honeymoon itinerary with all the requested bookings. For the romantic dinner on the first night, you order your food via the restaurant app on the table and settle the bill likewise. So far, you’ve had very little human interaction. But at dinner, the sommelier chats with you in person about the wine. The next day, your sightseeing is made easier by the hotel app and digital guide—and you don’t get lost! With the aid of holographic technology, the virtual tour guide brings historical figures to life and takes your sightseeing experience to a whole new level. Then, as arranged, a local citizen meets you and takes you to their home to enjoy a local family dinner. The trip is seamless, there are no holdups or snags.

This scenario features less human interaction than a traditional trip—but it flows smoothly due to the underlying technology. The human interactions that do take place are authentic, meaningful, and add a special touch to the experience. This may be a far-fetched example, but the essence of the scenario is clear: use technology to ease typical travel pain points such as queues, misunderstandings, or misinformation, and elevate the quality of human interaction.

Travel with less human interaction may be considered a disruptive idea, as many travelers rely on and enjoy the human connection, the “service with a smile.” This will always be the case, but perhaps the time is right to think about bringing a digital experience into the mix. The industry may not need to depend exclusively on human beings to serve its customers. Perhaps the future of travel is physical, but digitally enhanced (and with a smile!).

Digital solutions are on the rise and can help bridge the labor gap

Digital innovation is improving customer experience across multiple industries. Car-sharing apps have overcome service-counter waiting times and endless paperwork that travelers traditionally had to cope with when renting a car. The same applies to time-consuming hotel check-in, check-out, and payment processes that can annoy weary customers. These pain points can be removed. For instance, in China, the Huazhu Hotels Group installed self-check-in kiosks that enable guests to check in or out in under 30 seconds. 9 “Huazhu Group targets lifestyle market opportunities,” ChinaTravelNews, May 27, 2021.

Technology meets hospitality

In 2019, Alibaba opened its FlyZoo Hotel in Huangzhou, described as a “290-room ultra-modern boutique, where technology meets hospitality.” 1 “Chinese e-commerce giant Alibaba has a hotel run almost entirely by robots that can serve food and fetch toiletries—take a look inside,” Business Insider, October 21, 2019; “FlyZoo Hotel: The hotel of the future or just more technology hype?,” Hotel Technology News, March 2019. The hotel was the first of its kind that instead of relying on traditional check-in and key card processes, allowed guests to manage reservations and make payments entirely from a mobile app, to check-in using self-service kiosks, and enter their rooms using facial-recognition technology.

The hotel is run almost entirely by robots that serve food and fetch toiletries and other sundries as needed. Each guest room has a voice-activated smart assistant to help guests with a variety of tasks, from adjusting the temperature, lights, curtains, and the TV to playing music and answering simple questions about the hotel and surroundings.

The hotel was developed by the company’s online travel platform, Fliggy, in tandem with Alibaba’s AI Labs and Alibaba Cloud technology with the goal of “leveraging cutting-edge tech to help transform the hospitality industry, one that keeps the sector current with the digital era we’re living in,” according to the company.

Adoption of some digitally enhanced services was accelerated during the pandemic in the quest for safer, contactless solutions. During the Winter Olympics in Beijing, a restaurant designed to keep physical contact to a minimum used a track system on the ceiling to deliver meals directly from the kitchen to the table. 10 “This Beijing Winter Games restaurant uses ceiling-based tracks,” Trendhunter, January 26, 2022. Customers around the world have become familiar with restaurants using apps to display menus, take orders, and accept payment, as well as hotels using robots to deliver luggage and room service (see sidebar “Technology meets hospitality”). Similarly, theme parks, cinemas, stadiums, and concert halls are deploying digital solutions such as facial recognition to optimize entrance control. Shanghai Disneyland, for example, offers annual pass holders the option to choose facial recognition to facilitate park entry. 11 “Facial recognition park entry,” Shanghai Disney Resort website.

Automation and digitization can also free up staff from attending to repetitive functions that could be handled more efficiently via an app and instead reserve the human touch for roles where staff can add the most value. For instance, technology can help customer-facing staff to provide a more personalized service. By accessing data analytics, frontline staff can have guests’ details and preferences at their fingertips. A trainee can become an experienced concierge in a short time, with the help of technology.

Apps and in-room tech: Unused market potential

According to Skift Research calculations, total revenue generated by guest apps and in-room technology in 2019 was approximately $293 million, including proprietary apps by hotel brands as well as third-party vendors. 1 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. The relatively low market penetration rate of this kind of tech points to around $2.4 billion in untapped revenue potential (exhibit).

Even though guest-facing technology is available—the kind that can facilitate contactless interactions and offer travelers convenience and personalized service—the industry is only beginning to explore its potential. A report by Skift Research shows that the hotel industry, in particular, has not tapped into tech’s potential. Only 11 percent of hotels and 25 percent of hotel rooms worldwide are supported by a hotel app or use in-room technology, and only 3 percent of hotels offer keyless entry. 12 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. Of the five types of technology examined (guest apps and in-room tech; virtual concierge; guest messaging and chatbots; digital check-in and kiosks; and keyless entry), all have relatively low market-penetration rates (see sidebar “Apps and in-room tech: Unused market potential”).

While apps, digitization, and new technology may be the answer to offering better customer experience, there is also the possibility that tourism may face competition from technological advances, particularly virtual experiences. Museums, attractions, and historical sites can be made interactive and, in some cases, more lifelike, through AR/VR technology that can enhance the physical travel experience by reconstructing historical places or events.

Up until now, tourism, arguably, was one of a few sectors that could not easily be replaced by tech. It was not possible to replicate the physical experience of traveling to another place. With the emerging metaverse , this might change. Travelers could potentially enjoy an event or experience from their sofa without any logistical snags, and without the commitment to traveling to another country for any length of time. For example, Google offers virtual tours of the Pyramids of Meroë in Sudan via an immersive online experience available in a range of languages. 13 Mariam Khaled Dabboussi, “Step into the Meroë pyramids with Google,” Google, May 17, 2022. And a crypto banking group, The BCB Group, has created a metaverse city that includes representations of some of the most visited destinations in the world, such as the Great Wall of China and the Statue of Liberty. According to BCB, the total cost of flights, transfers, and entry for all these landmarks would come to $7,600—while a virtual trip would cost just over $2. 14 “What impact can the Metaverse have on the travel industry?,” Middle East Economy, July 29, 2022.

The metaverse holds potential for business travel, too—the meeting, incentives, conferences, and exhibitions (MICE) sector in particular. Participants could take part in activities in the same immersive space while connecting from anywhere, dramatically reducing travel, venue, catering, and other costs. 15 “ Tourism in the metaverse: Can travel go virtual? ,” McKinsey, May 4, 2023.

The allure and convenience of such digital experiences make offering seamless, customer-centric travel and tourism in the real world all the more pressing.

Three innovations to solve hotel staffing shortages

Is the future contactless.

Given the advances in technology, and the many digital innovations and applications that already exist, there is potential for businesses across the travel and tourism spectrum to cope with labor shortages while improving customer experience. Process automation and digitization can also add to process efficiency. Taken together, a combination of outsourcing, remote work, and digital solutions can help to retain existing staff and reduce dependency on roles that employers are struggling to fill (exhibit).

Depending on the customer service approach and direct contact need, we estimate that the travel and tourism industry would be able to cope with a structural labor shortage of around 10 to 15 percent in the long run by operating more flexibly and increasing digital and automated efficiency—while offering the remaining staff an improved total work package.

Outsourcing and remote work could also help resolve the labor shortage

While COVID-19 pushed organizations in a wide variety of sectors to embrace remote work, there are many hospitality roles that rely on direct physical services that cannot be performed remotely, such as laundry, cleaning, maintenance, and facility management. If faced with staff shortages, these roles could be outsourced to third-party professional service providers, and existing staff could be reskilled to take up new positions.

In McKinsey’s experience, the total service cost of this type of work in a typical hotel can make up 10 percent of total operating costs. Most often, these roles are not guest facing. A professional and digital-based solution might become an integrated part of a third-party service for hotels looking to outsource this type of work.

One of the lessons learned in the aftermath of COVID-19 is that many tourism employees moved to similar positions in other sectors because they were disillusioned by working conditions in the industry . Specialist multisector companies have been able to shuffle their staff away from tourism to other sectors that offer steady employment or more regular working hours compared with the long hours and seasonal nature of work in tourism.

The remaining travel and tourism staff may be looking for more flexibility or the option to work from home. This can be an effective solution for retaining employees. For example, a travel agent with specific destination expertise could work from home or be consulted on an needs basis.

In instances where remote work or outsourcing is not viable, there are other solutions that the hospitality industry can explore to improve operational effectiveness as well as employee satisfaction. A more agile staffing model  can better match available labor with peaks and troughs in daily, or even hourly, demand. This could involve combining similar roles or cross-training staff so that they can switch roles. Redesigned roles could potentially improve employee satisfaction by empowering staff to explore new career paths within the hotel’s operations. Combined roles build skills across disciplines—for example, supporting a housekeeper to train and become proficient in other maintenance areas, or a front-desk associate to build managerial skills.

Where management or ownership is shared across properties, roles could be staffed to cover a network of sites, rather than individual hotels. By applying a combination of these approaches, hotels could reduce the number of staff hours needed to keep operations running at the same standard. 16 “ Three innovations to solve hotel staffing shortages ,” McKinsey, April 3, 2023.

Taken together, operational adjustments combined with greater use of technology could provide the tourism industry with a way of overcoming staffing challenges and giving customers the seamless digitally enhanced experiences they expect in other aspects of daily life.

In an industry facing a labor shortage, there are opportunities for tech innovations that can help travel and tourism businesses do more with less, while ensuring that remaining staff are engaged and motivated to stay in the industry. For travelers, this could mean fewer friendly faces, but more meaningful experiences and interactions.

Urs Binggeli is a senior expert in McKinsey’s Zurich office, Zi Chen is a capabilities and insights specialist in the Shanghai office, Steffen Köpke is a capabilities and insights expert in the Düsseldorf office, and Jackey Yu is a partner in the Hong Kong office.

Explore a career with us

Winter is here! Check out the winter wonderlands at these 5 amazing winter destinations in Montana

• Travel Tips

What Is The Hospitality And Tourism Industry

Published: December 12, 2023

Modified: December 28, 2023

by Ingunna Whipple

• Hotel Reviews
• Sustainability

Introduction

Welcome to the exciting world of the hospitality and tourism industry! This dynamic and ever-growing sector offers an array of opportunities for those with a passion for travel, leisure, and providing exceptional customer experiences. In this article, we will explore the ins and outs of the hospitality and tourism industry, its definition, scope, key players, employment opportunities, challenges, and trends.

The hospitality and tourism industry encompasses a wide range of businesses and services that cater to the needs of travelers, tourists, and individuals seeking leisure activities. It includes establishments such as hotels, resorts, restaurants, airlines, cruise lines, travel agencies, theme parks, and more. These diverse entities all work together to create memorable experiences for guests and visitors.

As global travel continues to increase year after year, the hospitality and tourism industry plays a crucial role in the global economy. Not only does it provide employment opportunities to millions of people worldwide, but it also contributes to the growth of local economies and promotes cultural exchanges between different regions and countries.

Nowadays, people’s expectations for travel and hospitality experiences have evolved. It’s no longer just about offering a comfortable stay or a delicious meal; guests seek unique and personalized experiences that resonate with them. This shift has led to the rise of experiential travel, where travelers immerse themselves in the local culture, try authentic cuisines, and engage in activities that give them a deeper understanding of a destination.

The hospitality and tourism industry is driven by the concept of hospitality, which entails providing an exceptional level of service and attention to guests. Whether it’s warmly welcoming guests at a hotel, anticipating their needs at a restaurant, or ensuring smooth travel arrangements, hospitality professionals strive to create a positive and memorable experience for every visitor.

Furthermore, the industry’s success relies heavily on effective customer service and customer relationship management. Building strong relationships with guests and fostering loyalty are essential for businesses to thrive in this competitive landscape. Word-of-mouth recommendations and positive online reviews have a significant impact on a company’s reputation and customer acquisition.

As we delve deeper into the hospitality and tourism industry, we will uncover the various sub-sectors, discuss the employment opportunities they offer, explore the challenges faced by professionals in the field, and highlight the latest trends shaping the industry’s future. So, let’s embark on this journey together and discover the countless possibilities that await in the vast world of hospitality and tourism.

Definition of Hospitality and Tourism Industry

The hospitality and tourism industry is a dynamic and ever-evolving sector that encompasses a wide range of businesses and services. It revolves around providing exceptional customer experiences to individuals who are seeking leisure activities, travel, and accommodation. This industry plays a crucial role in the global economy, offering employment opportunities to millions of people worldwide and contributing to the growth of local economies.

At its core, the hospitality and tourism industry is defined by its focus on hospitality, which involves delivering outstanding service and creating memorable experiences for guests. Whether it’s a luxury hotel, a quaint bed and breakfast, a fine dining restaurant, or an adventurous travel agency, the industry is united by its commitment to catering to the needs and desires of travelers and tourists.

Tourism, a significant component of the industry, refers to the activities individuals engage in when visiting different destinations. These activities can include sightseeing, exploring cultural landmarks, participating in outdoor adventures, and immersing oneself in the local culture. The tourism sector relies on various services within the hospitality industry to provide comfortable accommodation, dining options, transportation, and entertainment.

The hospitality and tourism industry includes a wide array of businesses and services:

• Hotels and resorts: These establishments provide accommodation for travelers, ranging from budget-friendly options to luxury experiences.
• Restaurants and food services: From casual dining to Michelin-starred restaurants, these establishments offer a variety of culinary experiences.
• Travel agencies and tour operators: These organizations assist individuals in planning and booking their travel arrangements, including flights, accommodations, and itinerary.
• Airlines, cruise lines, and transportation services: These companies facilitate the movement of travelers, providing air, sea, and land transportation options.
• Entertainment and attractions: Theme parks, museums, historical sites, and other attractions offer leisure activities and entertainment for tourists.
• Event planning and management: This sector handles the organization and execution of various events, such as conferences, weddings, and corporate functions.

The hospitality and tourism industry is highly customer-oriented and focuses on creating positive experiences that meet and exceed the expectations of guests. It requires individuals with excellent communication skills, attentiveness, problem-solving abilities, and a genuine passion for providing top-notch service.

As the industry continues to evolve, the definition of hospitality and tourism has expanded beyond traditional boundaries. It now encompasses new trends such as eco-tourism, wellness tourism, experiential travel, and the integration of technology in enhancing guest experiences. This adaptability ensures that the industry remains relevant and responsive to the changing preferences and demands of travelers worldwide.

Scope and Importance of the Hospitality and Tourism Industry

The scope of the hospitality and tourism industry is vast and encompasses a wide range of activities, businesses, and services. From providing accommodation and dining options to organizing travel arrangements and offering entertainment, this industry plays a crucial role in shaping the experiences of travelers and tourists worldwide.

One of the primary purposes of the hospitality and tourism industry is to cater to the needs and desires of individuals seeking leisure activities and travel experiences. It offers a diverse range of services that provide comfort, convenience, and entertainment to guests, ensuring their satisfaction and enjoyment.

One of the key aspects of the industry’s scope is the provision of accommodation options. Hotels, resorts, bed and breakfasts, and other lodging establishments offer visitors a place to stay while exploring a destination. These accommodations can range from budget-friendly options to luxury suites, catering to the preferences and budgets of various travelers.

In addition to accommodation, the industry also encompasses an array of dining options. Restaurants, cafes, food trucks, and other establishments provide visitors with the opportunity to sample local cuisine, indulge in gourmet experiences, or simply grab a quick bite to eat. These dining experiences often add a cultural element to travelers’ journeys, allowing them to savor the flavors of a particular region or country.

The transportation sector is another critical component of the industry’s scope. Airlines, cruise lines, car rental services, and other transportation providers ensure that individuals can reach their desired destinations conveniently and safely. This seamless connectivity helps facilitate travel and allows visitors to explore multiple locations during their trips.

Entertainment and attractions are also significant contributors to the industry’s scope. Theme parks, museums, historical sites, natural landmarks, and other attractions offer leisure activities and unique experiences for tourists. These destinations play a vital role in attracting visitors, increasing local tourism, and promoting cultural exchanges.

The importance of the hospitality and tourism industry cannot be overstated. Economically, it generates substantial revenue for destinations, stimulates local businesses, and creates employment opportunities for millions of people worldwide. It supports a wide range of industries, including hospitality, transportation, food and beverage, and retail.

Socially, the industry encourages cultural exchange, promoting understanding and appreciation of different cultures and traditions. It fosters connections between people from diverse backgrounds, enabling the exchange of ideas, customs, and perspectives.

Furthermore, the hospitality and tourism industry contributes to the preservation and promotion of natural and cultural heritage. By highlighting and showcasing these assets, it raises awareness about the importance of conservation and sustains the value of unique landmarks and ecosystems.

Key Players in the Hospitality and Tourism Industry

The hospitality and tourism industry consists of numerous key players, each playing a crucial role in delivering exceptional experiences to travelers and tourists. These players include a diverse range of businesses and organizations that contribute to the overall success and growth of the industry.

Hotels and resorts are major players in the industry, offering accommodation options to guests. This includes luxury chains, boutique hotels, budget-friendly establishments, and everything in between. These properties provide a variety of amenities and services to ensure a comfortable and enjoyable stay for visitors.

Restaurants and food services are also significant players in the hospitality and tourism industry. From high-end fine dining establishments to casual cafes and street food vendors, these businesses cater to the culinary needs of travelers and locals alike. They offer a wide range of cuisines, flavors, and dining experiences to satisfy diverse palates.

Travel agencies and tour operators play a vital role in planning and organizing travel arrangements. These players assist individuals and groups in booking flights, accommodations, transportation, and activities. They curate itineraries, provide expert guidance, and offer personalized recommendations to create unforgettable travel experiences.

Airlines and cruise lines are essential players in the transportation sector of the industry. They facilitate travel by air and sea, connecting travelers to various destinations around the world. These players focus on providing safe, efficient, and comfortable travel options for guests, ensuring a seamless journey from start to finish.

Attractions and entertainment providers contribute to the industry’s vibrancy and appeal. Theme parks, museums, zoos, national parks, and cultural heritage sites offer unique and engaging experiences for visitors. They showcase local history, art, nature, and provide opportunities for entertainment and adventure.

Event planning and management companies are important players in the industry, organizing conferences, conventions, weddings, and other events. They ensure that every aspect of an event, from venue selection to logistics and execution, meets the highest standards and exceeds the expectations of attendees.

Tourist boards and destination marketing organizations (DMOs) play a critical role in promoting tourism and attracting visitors to specific destinations. They collaborate with businesses, governments, and local communities to develop marketing campaigns, initiatives, and strategies aimed at showcasing the unique offerings and attractions of a place.

In addition to these key players, technology companies have also become increasingly important in the hospitality and tourism industry. Online travel agencies (OTAs), hotel booking platforms, and travel review websites have transformed the way travelers search, book, and review accommodations and experiences. The integration of technology has revolutionized the industry, providing greater convenience and options for travelers.

Collaboration and synergy between these key players are essential for the industry’s success. By working together, they can create seamless, memorable experiences for travelers, enhance destination offerings, and drive the growth and sustainability of the hospitality and tourism industry as a whole.

Sub-Sectors of the Hospitality and Tourism Industry

The hospitality and tourism industry is vast and comprises several sub-sectors that cater to the diverse needs and preferences of travelers and tourists. These sub-sectors offer specialized services and experiences, contributing to the overall richness and appeal of the industry. Let’s explore some of the key sub-sectors:

Hotels and Accommodation: This sub-sector includes various types of lodging options, ranging from luxury hotels and resorts to budget-friendly motels and hostels. It encompasses full-service hotels, boutique properties, bed and breakfasts, serviced apartments, and vacation rentals. Each lodging category provides different amenities, styles, and experiences to cater to the needs of travelers.

Food and Beverage: Restaurants, cafes, bars, and food services form an integral part of the hospitality industry. This sub-sector caters to both locals and tourists, offering a wide array of culinary delights that showcase local and international cuisines. From fine dining establishments to street food vendors, the food and beverage sub-sector delivers diverse and memorable dining experiences.

Travel and Tourism Agencies: This sub-sector encompasses travel agencies, tour operators, and online travel agencies (OTAs). These entities specialize in organizing and facilitating travel arrangements for individuals and groups. Whether it’s booking flights, accommodations, transportation, or activities, travel agencies play a pivotal role in creating seamless and hassle-free travel experiences for customers.

Transportation: Airlines, cruise lines, car rental services, and transportation companies fall under this sub-sector. They ensure the smooth movement of travelers from one destination to another. Airlines connect cities and countries through air travel, while cruise lines offer leisurely journeys by sea. Car rental services and transportation companies provide options for convenient and efficient travel within destinations.

Entertainment and Attractions: This sub-sector comprises a variety of attractions and entertainment venues that enhance the overall travel experience. Theme parks, museums, art galleries, amusement parks, zoos, botanical gardens, and cultural heritage sites all fall under this category. These attractions offer visitors the opportunity to explore local history, culture, and natural beauty, providing unique and engaging experiences.

Event Planning and Management: This sub-sector specializes in organizing and managing various events, such as conferences, conventions, weddings, and exhibitions. Event planning companies coordinate every aspect of an event, including venue selection, logistics, catering, and audiovisual arrangements. They ensure that events run smoothly and leave a lasting impression on attendees.

Destination Marketing: Tourist boards and destination marketing organizations (DMOs) play a crucial role in this sub-sector. They promote specific destinations, highlighting their unique attractions, cultural heritage, and activities to attract visitors. DMOs collaborate with local businesses, governments, and communities to develop marketing campaigns and initiatives that boost tourism and drive economic growth.

Technology and Online Platforms: This emerging sub-sector encompasses technology companies that provide online booking platforms, travel review websites, and other travel-related services. These platforms have revolutionized the way travelers plan, book, and review accommodations and experiences. Through the integration of technology, travelers have access to a vast array of choices and can personalize their travel experiences.

Each sub-sector of the hospitality and tourism industry plays a vital role in creating a comprehensive and enjoyable travel experience. By working together, these sub-sectors contribute to the overall success and growth of the industry, ensuring that travelers have a plethora of options and experiences to choose from.

Employment Opportunities in the Hospitality and Tourism Industry

The hospitality and tourism industry offers a vast array of employment opportunities for individuals with a passion for customer service, travel, and creating memorable experiences. From entry-level positions to managerial roles, this diverse industry provides a wide range of careers that cater to different skills, interests, and qualifications.

Overall, the hospitality and tourism industry is a dynamic and promising field for employment. It offers a wide range of opportunities for individuals seeking a career that combines their passion for travel, customer service, and creating unforgettable experiences. Whether it’s in hotels, restaurants, travel agencies, attractions, or event planning, there is a career path for individuals with diverse backgrounds and interests in this ever-evolving industry.

Challenges and Trends in the Hospitality and Tourism Industry

The hospitality and tourism industry operates in a dynamic and highly competitive environment, continuously evolving to meet the changing needs and expectations of travelers. While the industry offers numerous opportunities, it also faces various challenges. Let’s explore some of the key challenges and trends shaping the industry today.

Challenges:

1. Economic Factors: Economic instability, fluctuating currency rates, and geopolitical issues can significantly impact the industry. Economic downturns can lead to reduced travel budgets and lower consumer spending, affecting businesses’ profitability and sustainability.

2. Seasonality and Demand Variability: Many tourist destinations experience peaks and troughs in visitor numbers due to seasonality. Managing staffing levels, inventory, and operations to meet fluctuating demand can be a complex challenge for businesses.

3. Competition: The industry is highly competitive, with businesses constantly vying for customers. From large hotel chains to online travel agencies and local establishments, businesses must differentiate themselves and offer unique experiences to attract and retain guests.

4. Changing Consumer Behavior: Consumers’ preferences and expectations are continually evolving. Travelers now seek experiential travel, personalized recommendations, sustainable practices, and seamless digital experiences. Adapting to these changing demands requires continual innovation and investment in technology.

5. Technological Advancements: While technology presents opportunities for growth, it also poses challenges. Online booking platforms, review websites, and social media influence consumer decisions and can impact a business’s reputation. Staying up-to-date with technological advancements and leveraging them strategically is key to staying competitive.

1. Sustainable and Responsible Tourism: In response to growing environmental concerns, travelers are embracing sustainable and responsible tourism practices. Businesses are implementing eco-friendly policies, reducing waste, and supporting local communities to meet the rising demand for environmentally conscious travel experiences.

2. Experiential Travel: Travelers are seeking immersive and authentic experiences. They want to connect with local cultures, participate in unique activities, and explore off-the-beaten-path destinations. Businesses are catering to these desires by offering curated experiences, cultural immersion programs, and adventure tourism options.

3. Personalization and Customization: Personalization is a key trend in the industry. Travelers appreciate tailored recommendations and experiences that cater to their specific preferences and interests. Businesses are utilizing technology and data analytics to understand customer preferences and provide personalized offers and services.

4. Technology Integration: Technology continues to transform the industry, with advancements such as artificial intelligence, virtual reality, and mobile apps enhancing customer experiences. Key trends include mobile check-ins, contactless payments, chatbots for customer service, and personalized digital concierge services.

5. Rise of Sharing Economy: The sharing economy, represented by platforms such as Airbnb and Uber, has disrupted traditional hospitality and transportation sectors. It has provided travelers with alternative accommodation options and transportation choices, forcing businesses to adapt and find innovative ways to compete.

By staying informed about these challenges and trends, businesses in the hospitality and tourism industry can adapt their strategies, invest in technology, and provide exceptional experiences that meet the evolving needs and expectations of travelers. The industry’s ability to navigate these challenges and embrace trends will determine its success and resilience in the ever-evolving global marketplace.

The hospitality and tourism industry holds immense potential as a thriving and vibrant sector that caters to the needs of travelers and tourists worldwide. Throughout this article, we have explored the definition, scope, key players, employment opportunities, challenges, and trends of this dynamic industry.

The industry’s definition is centered around providing exceptional service and creating memorable experiences for guests. It encompasses a wide range of businesses and services, including hotels, restaurants, travel agencies, airlines, attractions, and event planning organizations.

The scope and importance of the hospitality and tourism industry cannot be understated. It drives economic growth, generates employment opportunities, fosters cultural exchange, and promotes the preservation of natural and cultural heritage.

The key players in the industry each play a significant role in delivering outstanding experiences to travelers, ensuring their comfort, satisfaction, and enjoyment during their journeys.

The numerous sub-sectors within the industry, such as hotels, food and beverage, travel agencies, attractions, event planning, and technology, offer diverse employment opportunities for individuals with a range of skills and interests.

While the industry presents exciting opportunities, it also faces challenges, including economic factors, competition, changing consumer behavior, and technological advancements. Businesses must embrace these challenges and stay attuned to the latest trends in order to provide exceptional experiences and stay competitive.

The trends shaping the industry, including sustainable and responsible tourism, experiential travel, personalization, technology integration, and the rise of the sharing economy, offer new avenues for growth and innovation for businesses in the industry.

In conclusion, the hospitality and tourism industry is a dynamic and ever-evolving sector that offers a wide range of opportunities for individuals seeking a career that combines their passion for travel, customer service, and creating unforgettable experiences. By adapting to changing consumer preferences, embracing technology, and providing exceptional service, businesses in the industry can continue to thrive and contribute to the growth and success of this exciting and vital industry.

• Privacy Overview
• Strictly Necessary Cookies

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

UN Tourism | Bringing the world closer

Ethics, culture and social responsibility, global code of ethics for tourism.

• Accessible Tourism
• Tourism and Culture
• Women’s Empowerment and Tourism

share this content

• Share this article on facebook
• Share this article on twitter
• Share this article on linkedin

" Tourism is a genuine driver of solidarity and development. Let us all fully harness its power to bring people and communities together, abiding by the Global Code of Ethics for Tourism. This way tourism can keep delivering better opportunities and sustainable development for millions across the globe. "

Zurab pololikashvili, un tourism secretary-general, august 2020.

As a fundamental frame of reference for responsible and sustainable tourism, the Global Code of Ethics for Tourism (GCET) is a comprehensive set of principles designed to guide key-players in tourism development. Addressed to governments, the travel industry, communities and tourists alike, it aims to help maximise the sector’s benefits while minimising its potentially negative impact on the environment, cultural heritage and societies across the globe. Adopted in 1999 by the General Assembly of the World Tourism Organization, its acknowledgement by the United Nations two years later expressly encouraged UN Tourism to promote the effective follow-up of its provisions. Although not legally binding, the Code features a voluntary implementation mechanism through its recognition of the role of the World Committee on Tourism Ethics (WCTE), to which stakeholders may refer matters concerning the application and interpretation of the document.

The Code’s 10 articles amply cover the economic, social, cultural and environmental components of travel and tourism:

Tourism's contribution to mutual understanding and respect between peoples and societies

3. The host communities, on the one hand, and local professionals, on the other, should acquaint themselves with and respect the tourists who visit them and find out about their lifestyles, tastes and expectations; the education and training imparted to professionals contribute to a hospitable welcome; 4. It is the task of the public authorities to provide protection for tourists and visitors and their belongings; they must pay particular attention to the safety of foreign tourists owing to the particular vulnerability they may have; they should facilitate the introduction of specific means of information, prevention, security, insurance and assistance consistent with their needs; any attacks, assaults, kidnappings or threats against tourists or workers in the tourism industry, as well as the wilful destruction of tourism facilities or of elements of cultural or natural heritage should be severely condemned and punished in accordance with their respective national laws; 5. When travelling, tourists and visitors should not commit any criminal act or any act considered criminal by the laws of the country visited and abstain from any conduct felt to be offensive or injurious by the local populations, or likely to damage the local environment; they should refrain from all trafficking in illicit drugs, arms, antiques, protected species and products and substances that are dangerous or prohibited by national regulations; 6. Tourists and visitors have the responsibility to acquaint themselves, even before their departure, with the characteristics of the countries they are preparing to visit; they must be aware of the health and security risks inherent in any travel outside their usual environment and behave in such a way as to minimize those risks.

Tourism as a vehicle for individual and collective fulfilment

Tourism, a factor of sustainable development

Tourism, a user of the cultural heritage of mankind and contributor to its enhancement

Tourism, a beneficial activity for host countries and communities

Obligations of stakeholders in tourism development

Right to tourism

Liberty of tourist movements

Rights of the workers and entrepreneurs in the tourism industry

Implementation of the principles of the Global Code of Ethics for Tourism

Full Text of the Global Code of Ethics for Tourism

• ENGLISH (brochure)
• ENGLISH (passport size)
• FRENCH (brochure)
• FRENCH (passport size)
• SPANISH (brochure)
• SPANISH (passport size)
• RUSSIAN (brochure)
• RUSSIAN (passport size)
• ARABIC (brochure)
• ARABIC (passport size)

The versions of the Global Code of Ethics for Tourism in non-official languages of the World Tourism Organization have been endorsed by official National Tourism Administrations of the countries and regions listed below. UN Tourism does not guarantee the accuracy of these translations with regard to those in the official languages of the Organization.

This site shall constitute the main source for the Global Code of Ethics for Tourism. Other sites onto which the Global Code of Ethics for Tourism has been uploaded are not under the control of UN Tourism. UN Tourism shall not be responsible for the content of any of these sites or any link contained therein. 

The Global Code of Ethics for Tourism in non-official languages

• ALBANIA (Albanian)
• ANDORRA (Catalán)
• AZERBAIJAN (Azerbaijani)
• BANGLADESH (Bangladeshi)
• BOSNIA AND HERZEGOVINA ( Bosnian ) ( Serbian ) ( Croatian )
• BRAZIL (Portuguese)
• BULGARIA (Bulgarian)
• CHINA (Chinese)
• CROATIA (Croatian)
• CZECH REPUBLIC (Czech)
• EGYPT (Arabic)
• FLEMISH COMMUNITY OF BELGIUM (Dutch )
• GEORGIA (Georgian)
• GERMANY (German)
• GREECE (Greek)
• HUNGARY (Hungarian)
• ICELAND (Icelandic)
• INDONESIA (Bahasa)
• ISRAEL (Hebrew)
• ITALY (Italian)
• JAPAN (Japanese)
• JORDAN (Arabic)
• LATVIA (Latvian)
• LITHUANA (Lithuanian)
• NIGERIA ( Hausa ) ( Yoruba )
• PALESTINE (Arabic)
• PHILIPPINES (Filipino)
• POLAND (Polish)
• PORTUGAL (Portuguese)
• REPUBLIC OF KOREA (Korean)
• ROMANIA (Romanian)
• SAN MARINO (Italian)
• SERBIA (Serbian)
• SLOVAKIA (Slovak)
• SLOVENIA (Slovenian)
• THAILAND (Thai)
• TURKEY (Turkish)
• UNITED REPUBLIC OF TANZANIA (Swahili)

Private Sector Signatories of the Commitment

In 2011, UN Tourism formulated a Private Sector Commitment to the Global Code of Ethics for Tourism, for the signature of private enterprises worldwide. In signing the commitment, companies pledge to uphold, promote and implement the values of responsible and sustainable tourism development championed by the Code. They further undertake to report on their implementation of the Code's principles in their corporate governance to the World Committee on Tourism Ethics.

Ethics convention

The UN Tourism Convention on Tourism Ethics, the first convention of the Organization, was approved by A/RES/722(XXIII) during the 23rd General Assembly which took place in San Petersburg, Russian Federation in September 2019.

World Committee on Tourism Ethics (WCTE)

Established in 2003, the World Committee on Tourism Ethics is the impartial body responsible for interpreting, applying and evaluating the provisions of the UN Tourism Global Code of Ethics for Tourism. For further information, please see UN Tourism General Assembly Resolution A/RES/607(XIX) of October 2011.

The Responsible Tourist

To facilitate the understanding of the principles of the  Global Code of Ethics for Tourism  by tourists, the  World Committee on Tourism Ethics prepared the " Tips for a Responsible Traveller " (2020 version)  to highlight those principles of the Code directly related to tourists, in order to help guide travellers in making their behaviour ever more responsible. 

Background of the Global Code of Ethics for Tourism

The Global Code of Ethics for Tourism sets a frame of reference for the responsible and sustainable development of world tourism. It draws inspiration from many similar declarations and industry codes that have come before and it adds new thinking that reflects our changing society at the beginning of the 21st century.

Related links

• UN Tourism ETHICS AWARD
• RESOLUTIONS ON THE GLOBAL CODE OF ETHICS FOR TOURISM
• Implementation Reports on the Global Code of Ethics for Tourism
• 20th Anniversary of the Global Code of Ethics in Tourism

• I am a Tour Operator
• I am a Destination Management Company - DMC
• I am a Travel Wholesaler
• I am a Travel Retailer
• Complete Travel Ecosystem
• Management for Travel Agencies
• Reservations and Distribution
• Inventory and Distribution
• Multiple Points of Sale
• What is TINA?
• TINA Features
• Corporate Portal
• What is IRIX?
• IRIX Features
• IRIX Partners
• What is NOVA?
• NOVA Features
• What is TRIP?
• What is AIDA?
• AIDA Features
• Content Mapping
• Consultancy And Expertise
• Operational Audit
• Customizations
• Product Updates
• Client Portfolio
• Client Testimonials
• Leadership Corner Interviews
• Partnerships
• Our Management Team
• International Events
• dcs plus in the News
• Customer Care

travel tech insights

From then to now, part ii: the travel industry's major players.

by Nick Ostdick , on Sep 1, 2016 9:45:27 AM

In the first entry  of our series on the evolution of the travel industry since 2002, we looked at the traveler and how their needs, desires, tools, and buying behaviors have shifted during the last 14 years. We examined how advances in personal and industry technology have made it easier than ever for travelers to become an integral part of the travel industry rather than just observers watching from the sidelines.

Today’s entry, the second in our three-part series, will focus on the major industry players, their history, evolution, and impact on the global travel industry. The companies and organizations we’ve chosen to highlight have in one way or another made significant contributions to the growth and development of the industry and have left an important mark on how the travel industry operates today.

This radical transformation throughout the industry sparked a wave of innovation that is still impacting how travel companies operate in 2016. The rapid evolution and development also resulted in the creation and development of a number of key industry players whose influence and impact not only ushered in industry-wise changes but also continues to affect the way travelers travel and companies operate.

But who are these major industry players? What companies came of age during the last 14 years to emerge as core brands or companies in today’s global travel industry? What made them such disruptive forces in the travel industry’s evolution and development? To answer these questions, here are a handful of the major players in today’s travel industry and what exactly made them so influential.

TripAdvisor

Widely regarded as the first true travel booking review and interaction website, TripAdvisor was founded in 2000 and was one of the first travel sites to rely completely on user-generated content. For many industry analysts, TripAdvisor was also the first platform that gave travelers a voice - writing reviews of hotels, airlines, tours, and other bookings gave customers an outlet to express their concerns in a way where other travelers could connect, respond, and share related concerns. In today’s world of social media, real-time messaging, and other ways travelers and travel companies interact, TripAdvisor is viewed as the first incarnation of 21st Century customer engagement and relations - the first wave in a movement that pushed travel companies to be more responsive and agile to the needs of the modern traveler.

Orbitz was founded in 2001 as one of the first large-scale online retailers for hotels and airlines. Though it has since been purchased by competitor Expedia, Orbitz leveraged the lowest online airfares from 2000 to 2001 and was the first online travel company to incorporate an unbiased flight matrix display, a development which many travel companies soon copied in an effort to offer enhanced customer service and optimal operational flexibility. In another forward-thinking move, Orbitz launched a proactive notification platform where travelers received automated alerts about flight delays, gate departure changes, and other modifications in bookings. This model not only provided increased agility and transparency for the company, but it also offered customers peace of mind in planning their trips. This real-time notification capability also helped spawn the communication and messaging apps travel companies use today to remain constant contact with travelers and customers.

One of the leading providers of IT solutions for the global travel and tourism industry, Amadeus also functions as a key GDS provider for travel companies around the world. Amadeus provides search, pricing, booking, ticketing, and other processing services in real-time for suppliers and travel companies through its own advanced networking systems. In 2001, Amadeus operated more than 57,000 travel agency locations worldwide and maintained the highest level of productivity across the globe. In 2010, the company processed more than 850 million billable travel transactions for hotels, airlines, and more, making it a top-tier system for a number of travel agencies and travel management companies on a global scale.  

Pegasus Solutions

Though the company underwent a rebranding in 2000 from Pegasus Systems to Pegasus solutions, the company has remained a critical technology provider for travel companies, OTAs, hotels, airlines, and more. Founded in 1989, the company has since worked to provide integrated product and service delivery technologies for more than 60,000 hotel properties worldwide, making it one of the industry’s largest third-party provider of reservation services and platforms. Pegasus’ Utell and Unirez reservations applications are used in more than 140 countries and helped power some of the industry’s most robust online travel booking websites such as Orbitz and other major booking sites. Primarily a B2B provider, Pegasus services include central reservation systems, electronic distribution services, commission processing, and payment services.

Perhaps the most recent disruptive company in the travel and tourism industry, AirBnB was founded in 2008 and has ushered in a new wave of peer-to-peer travel bookings based on a user-generated marketplace. Originally conceived as corporate travel alternative to a saturated hotel market, the company now has more than 1.5 million listings, operates 34,000 cities, and has rentals in more than 190 countries. What’s made AirBnB such an impactful development in the travel industry is its reliance on travelers connecting with other travelers to offer and book accommodations for a processing fee without any help or support from traditional travel agencies or travel companies. Unlike the more conventional models of supply and demand - which is based on scalability of inventory - AirBnB scales by simply increasing the number of hosts in the hopes of finding travelers to connect them with. User reviews are the primary drivers in terms of the accommodations offered, which is perhaps in the most recent incarnation of the model started by TripAdvisor at the turn of the century.

Subscribe to Email Updates

Travel technology blog.

As the travel industry is a dynamic one, dcs plus team is permanently working on bringing you the latest travel industry news, insights and useful resources for your travel business!

Recent Posts

Posts by topic.

• travel technology (58)
• Travel Industry (49)
• travel agency (31)
• travel erp (31)
• travel trends (28)
• travel booking system (23)
• travel company (19)
• Tour Operator (18)
• Product updates (17)
• Travel Management Company (17)
• dcs plus news (14)
• tour operator solution (14)
• travel website (14)
• travel erp system (13)
• Business Travel (12)
• Mobile App (12)
• Travel App (12)
• mid back office solution (12)
• trends (12)
• Industry Events (11)
• Mobile Technology (11)
• travel agents (11)
• erp system (10)
• Corporate Travel (9)
• Tour Operators (9)
• Travel booking engines (9)
• dcs plus (9)
• online travel agency (9)
• travel agent (9)
• Mobile Bookings (8)
• travel agencies (8)
• Mobile Travel (7)
• travel business (7)
• travel software (7)
• Digital Technology (6)
• Insider (6)
• Millennials (6)
• Online booking systems (6)
• Travel Management Companies (6)
• process automation (6)
• travel companies (6)
• Big Data (5)
• Business Traveler (5)
• Partners interviews (5)
• Tour Operator Software (5)
• customer retention (5)
• travel agency technology (5)
• Booking engines (4)
• Mobile Device (4)
• Static databases (4)
• Tour Companies (4)
• Travel Policy (4)
• Travel booking systems (4)
• Travel suppliers (4)
• back office automation (4)
• millennial travelers (4)
• online travel (4)
• responsive travel website (4)
• technology (4)
• travel website conversion (4)
• Content mapping (3)
• Databases (3)
• Demographics (3)
• Food and Adventure Tourism (3)
• Mobile Apps (3)
• Mobile travel apps (3)
• Travel Distribution Channels (3)
• Travel Management Software (3)
• Travel customers (3)
• Travel history (3)
• anniversary (3)
• automated processes (3)
• content matching (3)
• global travel industry (3)
• social media (3)
• travel agency workflow (3)
• travel back office (3)
• travel marketing (3)
• travel process automation (3)
• Advanced Booking Systems (2)
• B2B Travel Resellers (2)
• Bleisure (2)
• Branding (2)
• Business Process Automation (2)
• Business Travelers (2)
• Customer engagement (2)
• Financial Reporting (2)
• Food Tourism (2)
• Inbound Marketing (2)
• Infographic (2)
• Leisure Travel (2)
• Templates (2)
• Travel Costs (2)
• Travel bookings (2)
• Travel start-up (2)
• Travel website abandonment (2)
• WTM 2016 (2)
• abandoned travel bookings (2)
• corporate self booking tool (2)
• engagement marketing (2)
• internet booking engine (2)
• millennial traveler (2)
• new travel company (2)
• online reputation management (2)
• online travel reviews (2)
• reporting (2)
• software (2)
• start-up tips (2)
• travel agency management (2)
• travel agency website (2)
• travel experience (2)
• travel mobile app (2)
• travel packages (2)
• travel reservation system (2)
• travel system (2)
• travelers (2)
• web-based travel erp (2)
• 360 Customer View (1)
• Advanced Accommodation Contract Management (1)
• Adventure travelers (1)
• B2B Reseller (1)
• B2B Resellers (1)
• BI Reporting (1)
• Budget traveler (1)
• Cancellations (1)
• Chinese millennial (1)
• Cognitive computing (1)
• Comparison shopping (1)
• Conference (1)
• Contact matching (1)
• Content (1)
• Culinary traveler (1)
• Customer relations (1)
• Digital Innovation (1)
• Digital Natives (1)
• Documents (1)
• Emerging market travelers (1)
• Emerging markets (1)
• Experimental travel (1)
• Financial Dashboard (1)
• Import rates (1)
• Instant messaging (1)
• Integrate with Accounting Software (1)
• Internet (1)
• Luxury traveler (1)
• Mobile Transaction (1)
• Mobile payments (1)
• NDC distribution (1)
• Operational Reporting (1)
• Reseller networks (1)
• Resellers (1)
• Response (1)
• Subagents Network (1)
• TINA Academy (1)
• Travel Reseller Network (1)
• Travel Revenue Management (1)
• Travel booking problems (1)
• Travel finance reporting (1)
• Travel stats (1)
• abandonment (1)
• accomodations (1)
• advanced reporting (1)
• airline direct connect technology (1)
• ancillary services (1)
• cloud computing (1)
• collection (1)
• collection challenges (1)
• common data model (1)
• conversion rates (1)
• cost control (1)
• credo ventures capital invests in dcs plus (1)
• customer reviews (1)
• data analysis (1)
• dcs plus credo investment (1)
• dcs plus credo ventures (1)
• deloitte technology fast 500 EMEA (1)
• digital transformation (1)
• e-invoicing KSA (1)
• email marketing (1)
• email marketing for OTAs (1)
• erp e-invoicing (1)
• lost travel bookings (1)
• modern travel agencies (1)
• networks (1)
• new features (1)
• online customer review (1)
• online reputation (1)
• online travel agencies (1)
• risk management (1)
• senior travelers (1)
• shopping baskets (1)
• shopping carts (1)
• social network (1)
• standardized processes (1)
• static content (1)
• travel SaaS (1)
• travel account services (1)
• travel agency customers (1)
• travel agency profitability (1)
• travel analytics (1)
• travel blog (1)
• travel planning (1)
• travel reviews (1)
• travel shopping carts (1)
• travel software for agencies (1)
• travel software system (1)
• travel technology europe (1)
• travlist smart mobile app (1)
• trusted adviser (1)
• trusted advisor (1)
• upsell functionality (1)
• vouchers (1)
• website traffic (1)

Blog Archive

• November 2016 (12)
• March 2016 (11)
• October 2016 (11)
• December 2015 (10)
• December 2016 (10)
• January 2017 (10)
• March 2017 (10)
• April 2016 (9)
• May 2016 (9)
• June 2016 (9)
• August 2016 (9)
• September 2016 (9)
• November 2015 (8)
• January 2016 (8)
• February 2016 (8)
• July 2016 (8)
• October 2015 (7)
• February 2017 (7)
• September 2015 (6)
• November 2017 (6)
• June 2017 (5)
• April 2017 (4)
• October 2017 (4)
• February 2015 (3)
• June 2015 (3)
• July 2015 (3)
• May 2017 (3)
• November 2019 (3)
• August 2020 (3)
• March 2015 (2)
• July 2017 (2)
• August 2017 (2)
• September 2017 (2)
• December 2017 (2)
• April 2015 (1)
• August 2015 (1)
• January 2018 (1)
• February 2018 (1)
• October 2019 (1)
• December 2019 (1)
• January 2020 (1)
• February 2021 (1)
• January 2022 (1)

dcs plus is a registered trademark in the European Union.

Copyright 2024 dcs plus. All rights reserved.

Tourism: The Key Player

• First Online: 20 August 2019

Cite this chapter

• Francisco J. Tapiador 3  

Part of the book series: World Regional Geography Book Series ((WRGBS))

941 Accesses

This economic activity enabled the development of Spain in the 1960s and 1970s, and its territorial effects have been highly marked. Tourism is today a fundamental economic sector around which the balance of payments and the services sector gravitate. It also affects the dynamics of the food sector, agriculture (mainly wine and oil), and construction and housing. Tourism in Spain is mainly coastal, but inland tourism is starting to develop.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

• Available as PDF
• Read on any device
• Instant download
• Own it forever
• Available as EPUB and PDF
• Compact, lightweight edition
• Dispatched in 3 to 5 business days
• Free shipping worldwide - see info
• Durable hardcover edition

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

The observatory of El Silo in Bello, Teruel , is a nice and modest example.

Afonso-Rodríguez JA, Santana-Gallego M (2018) Is Spain benefiting from the Arab spring? On the impact of terrorism on a tourist competitor country. Qual Quant 52(3):1371–1408

Article   Google Scholar  

Albaladejo IP, González-Martínez M (2018) Congestion affecting the dynamic of tourism demand: evidence from the most popular destinations in Spain. Curr Issue Tour:1–15

Google Scholar  

Albalate D, Fageda X (2016) High speed rail and tourism: empirical evidence from Spain. Transp Res A Policy Pract 85:174–185

Albalate D, Campos J, Jiménez JL (2017) Tourism and high speed rail in Spain: does the AVE increase local visitors? Ann Tour Res 65:71–82

Alberca-Oliver P, Rodríguez-Oromendía A, Parte-Esteban L (2015) Measuring the efficiency of trade shows: a Spanish case study. Tour Manag 47:127–137

Alina-Cerasela A (2015) Spa tourism – a comparative analysis on Spain and Romania. Balneo Res J 6(3)

Almeida Garcia F (2014) A comparative study of the evolution of tourism policy in Spain and Portugal. Tour Manag Perspect 11:34–50

Almeida F, Cortés R, Balbuena A (2015) Tourist spaces and tourism policy in Spain and Portugal. Adv Cult Tour Hosp Res 10:235–249

Almeida-García F, Peláez-Fernández MÁ, Balbuena-Vázquez A, Cortés-Macias R (2016) Residents’ perceptions of tourism development in Benalmádena (Spain). Tour Manag 54:259–274

Alonso-Álvarez L (2012) The value of water: the origins and expansion of thermal tourism in Spain, 1750–2010. J Tour Hist 4(1):15–34

Álvarez-Díaz M, D’Hombres B, Ghisetti C (2017) Modelling inter- and intra-regional tourism flows in Spain - a spatial econometric approach. Reg Stat 7(2):3–34

Álvarez-García J, Río-Rama de la Cruz M, Vázquez-Huerta G, Rueda-Armengot C (2016) Smart city and tourism: an analysis of development of Caceres (Spain) as a smart city. In: Sustainable smart cities, pp 199–218

Amengual A, Homar V, Romero R, Alonso S, Ramis C (2012) Projections of the climate potential for tourism at local scales: application to Platja de Palma. Spain Int J Climatol 32:2095–2107

Ana Isabel PP, Dolores María FJ, Miguel Ángel RM (2013) The effect of a destination branding strategy for rural tourism on the perceived value of the conservation of the indigenous resources of the rural tourism destination: the case of Spain. Curr Issue Tour 16(2):129–147

Andrades-Caldito L, Sánchez-Rivero M, Pulido-Fernández JI (2013) Differentiating competitiveness through tourism image assessment: an application to Andalusia (Spain). J Travel Res 52(1):68–81

Bafaluy D, Amengual A, Romero R, Homar V (2014) Present and future climate resources for various types of tourism in the Bay of Palma, Spain. Reg Environ Chang 14(5):1995–2006

Bakhat M, Rosselló J (2011) Estimation of tourism-induced electricity consumption: the case study of Balearics Islands, Spain. Energy Econ 33(3):437–444

Bird ECF (2008) Coastal geomorphology. An introduction. 2nd Edn. John Wiley and Sons, New York

Blancas FJ, Lozano-Oyola M, González M, Guerrero FM, Caballero R (2011) How to use sustainability indicators for tourism planning: the case of rural tourism in Andalusia (Spain). Sci Total Environ 412–413:28–45

Calle Lamelas JV (2017) Big data revolution in tourism: analysis of the new data sources for the creation of knowledge in the destiny world heritage of Spain. Int J Inform Syst Tour (IJIST) 2(2)

Calzada I, Arranz A (2017) Translocal strategies for experimenting with smart tourism labs in Zumaia: the case of the Basque coast Geopark, Basque Country (Spain). SSRN

Camisón C, Forés B (2015) Is tourism firm competitiveness driven by different internal or external specific factors?: new empirical evidence from Spain. Tour Manag 48:477–499

Campón-Cerro AM, Hernández-Mogollón JM, Alves H (2017) Sustainable improvement of competitiveness in rural tourism destinations: the quest for tourist loyalty in Spain. J Destin Mark Manag 6(3):252–266

Canals P (2010) Performance auditing of tourism websites: France, Spain, and Portugal. Adv Cult Tour Hosp Res 4:59–68

Cañas J, Pérez L (2015) Language needs in tourism enterprises. Case study: the region of Pallars Sobirà, Catalonia, Spain. Procedia Soc Behav Sci 212:298–303

Cànoves Valiente G, Romagosa F, Blanco A, Priestley GK (2012) Religious tourism and sacred places in Spain: old practices, new forms of tourism. Int J Tour Anthropol 2(4):282–298

Carrascal Incera A, Fernández Fernández M, Pereira López X (2015) Spillover effects of tourism consumption between Galicia and the rest of Spain. Int J Tour Res 17(2):185–195

Carrillo M, Jorge JM (2017) Multidimensional analysis of regional tourism sustainability in Spain. Ecol Econ 140:89–98

Castillo-Manzano JI, Lopez-Valpuesta L, Alanís FJ (2015) Tourism managers’ view of the economic impact of cruise traffic: the case of southern Spain. Curr Issue Tour 18(7):701–705

Castro Fernańdez BM, Lois González RC, Lopez L (2016) Historic city, tourism performance and development: the balance of social behaviours in the city of Santiago de Compostela (Spain). Tour Hosp Res

Cazcarro I, Hoekstra AY, Sánchez Chóliz J (2014) The water footprint of tourism in Spain. Tour Manag 40:90–101

Ceisel CM (2013) Consuming the “authentic”: globalized nostalgia and the politics of hybridity through culinary tourism and heritage foodways. A case study of Galicia, Spain. ProQuest dissertations and theses, 184

Cisneros-Martínez JD, McCabe S, Fernández-Morales A (2018) The contribution of social tourism to sustainable tourism: a case study of seasonally adjusted programmes in Spain. J Sustain Tour 26(1):85–107

Clavé SA (2013) The geography of tourism in Spain: institutionalization and internationalization. Tour Soc Sci Ser 19:151–177

Corral-Marfil JA, Cànoves-Valiente G (2016) An approach to tourism research in Spain. Tour Soc Sci Ser 22:167–189

Cristobal-Fransi E, Daries N, Serra-Cantallops A, Ramón-Cardona J, Zorzano M (2018) Ski tourism and web marketing strategies: the case of ski resorts in France and Spain. Sustainability (Switzerland) 10(8)

Cruz Ruiz E, Bermúdez González G, Tous Zamora D (2018) Destination image, satisfaction and destination loyalty in cruise tourism: the case of Málaga (Spain). Tour Manag Stud 14(1):58–68

Cuadrado-Ciuraneta S, Durà-Guimerà A, Salvati L (2017) Not only tourism: unravelling suburbanization, second-home expansion and “rural” sprawl in Catalonia, Spain. Urban Geogr 38(1):66–89

de-Arriba R (2011) Global tourism, competitiveness and economic policy in Spain. Actual Probl Econ 126(12):347–356

Domínguez Vila T, Darcy S, Alén González E (2015) Competing for the disability tourism market – a comparative exploration of the factors of accessible tourism competitiveness in Spain and Australia. Tour Manag 47:261–272

Domínguez T, Fraiz JA, Alén E (2013) Economic profitability of accessible tourism for the tourism sector in Spain. Tour Econ 19(6):1385–1399

Du D, Ng P (2018) The impact of climate change on tourism economies of Greece, Spain, and Turkey. Environ Econ Policy Stud 20(2):431–449

Duarte Alonso A (2015) Far away from sun and beach: opportunities and challenges for cultural tourism in Córdoba, Spain. J Herit Tour 10(1):21–37

Elche-Hortelano D, Martínez-Pérez Á, García-Villaverde PM (2015) Bonding capital, explotación de conocimiento e innovación incremental en los clusters de turismo cultural: Las Ciudades Patrimonio de la Humanidad en España. Investigaciones Europeas de Direccion y Economia de La Empresa 21(3):120–128

Folgado-Fernández JA, Palos-Sánchez PR, Campón-Cerro AM, Hernández-Mogollón JM (2017) Gastronomic products with identity and the development of the tourism destination. A study on cheese routes in Spain. Int J Sci Manag Tour 3(1):93–109

Fraile Jurado P, Cuevas D, Arsenio VL (2013) The impact of sea level rise on the tourism facilities in the Andalusian coast, Spain. In: Proceedings of the international conference of tourism. Trends, impacts and policies on sustainable tourism development

Frías-Jamilena DM, Del Barrio-García S, López-Moreno L (2013) Determinants of satisfaction with holidays and hospitality in rural tourism in Spain: the moderating effect of tourists’ previous experience. Cornell Hosp Q 54(3):294–307

Frost W, Michael Hall C (2012) Tourism and national parks: international perspectives on development, histories and change. In: Tourism and National Parks: international perspectives on development, histories and change, pp 1–358

Chapter   Google Scholar  

Galván MO, Lafuente AMG (2014) Public policies and tourism marketing. An analysis of the competitiveness on tourism in Morelia, Mexico and Alcala de Henares, Spain. Procedia Soc Behav Sci 148:146–152

Garay L, Cànoves G (2011) Life cycles, stages and tourism history: the Catalonia (Spain) experience. Ann Tour Res 38(2):651–671

García FA (2013) Tourism policy and territorial imbalances in Spain. Bull Geogr 22:7–19

García García Y, Blanco Gregory R, Pérez Rubio JA (2013) The “countryman tourism” in rural areas: the case of Extemadura (Spain). In: Methods and analysis on tourism and environment. Nova Science Publisher’s, Inc, Hauppauge

Garcia-Ayllon S (2018) Urban transformations as an indicator of unsustainability in the P2P mass tourism phenomenon: the Airbnb case in Spain through three case studies. Sustainability (Switzerland) 10(8)

Garín Muñoz T (2011) Spain as a tourism destination for British residents: an empirical model for visitors in hotels. SSRN

Garín-Muñoz T, Pérez-Amaral T (2011) Internet usage for travel and tourism: the case of Spain. Tour Econ 17(5):1071–1085

Garrido AM (2017) Come to Spain! America in Spanish tourism policy (1911–1954). J Tour Hist 9(2–3):193–204

Gómez M, Molina A (2012) Wine tourism in Spain: denomination of origin effects on brand equity. Int J Tour Res 14(4):353–368

Gómez M, Lopez C, Molina A (2015) A model of tourism destination brand equity: the case of wine tourism destinations in Spain. Tour Manag 51:210–222

Gómez-Martín MB, Armesto-López XA, Cors-Lglesias M, Muñoz-Negrete J (2014) Adaptation strategies to climate change in the tourist sector: the case of coastal tourism in Spain. Tourism 62(3):293–308

Gómez-Martín MB, Armesto-López X, Amelung B (2016) Tourism, climate change and the mass media: the representation of the issue in Spain. Curr Issue Tour 19(2):174–198

Gomis FJDC, Lluch DL, Civera JMS, Torres AMA, Mollá-Bauzá MB, Poveda ÁM, Nogués Pedregal AM (2010) Wine tourism product clubs as a way to increase wine added value: the case of Spain. Int J Wine Res 2(1):27–34

González Álvarez D (2018) Rethinking tourism narratives on the cultural landscapes of Asturias (Northern Spain) from the perspective of landscape archaeology: do archaeologists have anything to say? Landsc Res:1–17

González-Ramiro A, Gonçalves G, Sánchez-Ríos A, Jeong JS (2016) Using a VGI and GIS-based multicriteria approach for assessing the potential of rural tourism in Extremadura (Spain). Sustainability (Switzerland) 8(11)

Guirao B, Campa JL (2016) Should implications for tourism influence the planning stage of a new HSR network? The experience of Spain. Open Transp J 10(Suppl-1, M3):22–34

Gundelfinger-Casar J, Coto-Millán P (2018) Measuring the main determinants of tourism flows to the Canary Islands from mainland Spain. J Air Transp Manag 70:83–90

Guzman-Parra VF, Quintana-García C, Benavides-Velasco CA, Vila-Oblitas JR (2015) Trends and seasonal variation of tourist demand in Spain: the role of rural tourism. Tour Manag Perspect 16:123–128

Hernández Mogollón JM, Campón Cerro AM, Baptista Alves HM (2011) The state of the art in research into rural tourism in Spain: an analysis from the perspective of marketing. Enlightening Tour Pathmaking J 1(1):31–61

Hernández JM, Suárez-Vega R, Santana-Jiménez Y (2016) The inter-relationship between rural and mass tourism: the case of Catalonia, Spain. Tour Manag 54:43–57

Hernández-Maestro RM (2011) Quality and buying process in rural tourism in Spain. In: Ecotourism: management, development and impact. Nova Science, New York

Herrero-Prieto LC, Gómez-Vega M (2017) Cultural resources as a factor in cultural tourism attraction: technical efficiency estimation of regional destinations in Spain. Tour Econ 23(2):260–280

Hof A, Blázquez-Salom M (2015) Changing tourism patterns, capital accumulation, and urban water consumption in Mallorca, Spain: a sustainability fix? J Sustain Tour 23(5):770–796

Holleran M (2017) Tourism and Europe’s shifting periphery: post-Franco Spain and post-socialist Bulgaria. Contemp Eur Hist 26(4):691–715

INE (2002–2018). Anuario Estadístico de España

INE (2018a) Inebase

INE (2018b) España en cifras

Ivars i, Baidal JA, Rodríguez Sánchez I, Vera Rebollo JF (2013) The evolution of mass tourism destinations: new approaches beyond deterministic models in Benidorm (Spain). Tour Manag 34:184–195

Izquierdo-Yusta A, Martínez-Ruiz MP (2011) Assessing the consumer’s choice of purchase channel in the tourism sector: evidence from Spain. EuroMed J Bus 6(1):77–99

Jeong JS, García-Moruno L, Hernández-Blanco J, Sánchez-Ríos A (2016) Planning of rural housings in reservoir areas under (mass) tourism based on a fuzzy DEMATEL-GIS/MCDA hybrid and participatory method for Alange, Spain. Habitat Int 57:143–153

Jiménez Beltrán J, López-Guzmán T, Santa-Cruz FG (2016) Gastronomy and tourism: profile and motivation of international tourism in the City of Córdoba, Spain. J Culinary Sci Technol 14(4):347–362

Liberato D, Alén E, Liberato P, Domínguez T (2018) Governance and cooperation in Euroregions: border tourism between Spain and Portugal. Eur Plan Stud 26(7):1347–1365

Logar I, Van Den Bergh JCJM (2013) The impact of peak oil on tourism in Spain: an input-output analysis of price, demand and economy-wide effects. Energy 54:155–166

López Lluch, D. B., Del Campo Gomis, F. J., and Bausá, J. M. 2015. Rural development through tourism: the case of cave paintings in “La Canal De Navarrés” (Spain). Handbook on tourism development and management

López-Bonilla JM, López-Bonilla LM (2014) Holistic competence approach in tourism higher education: an exploratory study in Spain. Curr Issue Tour 17(4):312–326

López-Guzmán T, Cruz FGS (2016) The fiesta of the patios: intangible cultural heritage and tourism in Cordoba, Spain. Int J Intangible Herit 11:182–192

López-Guzmán T, Sánchez-Cañizares S (2012) Gastronomy, tourism and destination differentiation: a case study in Spain. Rev Econ Finance:63–72

López-Sánchez Y, Pulido-Fernández JI (2014) Incorporating sustainability into tourism policy: a strategic agenda for Spain. Eur J Tour Res 7(1):57–78

Luo Y (2013) Special focus: issues in tourism economics from the perspectives of China and Spain. Tour Econ 19(2):229–230

Maria Raya J, Martínez-Garcia E, Celma D (2018) Economic and social yield of investing in hiking tourism: the case of Berguedà, Spain. J Travel Tour Market 35(2):148–161

Martínez-Ibarra E (2014) Climate, water and tourism: causes and effects of droughts associated with urban development and tourism in Benidorm (Spain). Int J Biometeorol 59(5):487–501

Martínez-Roget F, Pawlowska E, Rodríguez XA (2013) The economic impact of academic tourism in Galicia, Spain. Tour Econ 19(5):1139–1153

Mediavilla Saldaña L, Gómez Encinas V, Sánchez Burón A, Villota Valverde S (2014) Profile of adventure tourism companies in Spain, Italy and Costa Rica. J Sport Health Res 6(2):177–190

Medina-Muñoz DR, Medina-Muñoz RD, Chim-Miki AF (2013a) Tourism competitiveness assessment: the current status of research in Spain and China. Tour Econ 19:297–318

Medina-Muñoz DR, Medina-Muñoz RD, Zúñiga-Collazos A (2013b) Tourism and innovation in China and Spain: a review of innovation research on tourism. Tour Econ 19:319–337

Mérida A, Golpe AA (2016) Tourism-led growth revisited for Spain: causality, business cycles and structural breaks. Int J Tour Res 18(1):39–51

Millán G, Arjona JM, Amador L (2014) A new market segment for olive oil: olive oil tourism in the south of Spain. Agric Sci 05(03):179–185

Millán-Vazquez de la Torre MG, Arjona-Fuentes JM, Amador-Hidalgo L (2017) Olive oil tourism: promoting rural development in Andalusia (Spain). Tour Manag Perspect 21:100–108

Miralles JL, García-Ayllón S (2015) GIS analysis of the consequences of short-term urban planning in a mass tourism destination in Spain. Int J Sustain Dev Plan 10(4):499–519

Molina A, Gómez M, González-Díaz B, Esteban Á (2015) Market segmentation in wine tourism: strategies for wineries and destinations in Spain. J Wine Res 26(3):192–224

Morales JML, Devesa MJS (2017) Business cycle and external dependence on tourism: evidence for Spain. Tour Econ 23(1):187–199

Nash M (2015) Mass tourism and new representations of gender in late Francoist Spain: the Sueca and Don Juan in the 1960s. Cult Hist 4(2):136–161

Nieto J, Hernández-Maestro RM, Muñoz-Gallego PA (2011) The influence of entrepreneurial talent and website type on business performance by rural tourism establishments in Spain. Int J Tour Res 13(1):17–31

Olcina Cantos J, Fernando Vera-Rebollo J (2016) Climate change and tourism policy in Spain: diagnosis in the Spanish Mediterranean coast. Cuadernos De Turismo (38):323–359

Ordóñez JM, Ordóñez MDC, Torres JL (2010) Distance matters: an assessment of international tourism demand in Spain. Tour Anal 15(2):183–196

Otero-Giráldez MS, Álvarez-Díaz M, González-Gómez M (2012) Estimating the long-run effects of socioeconomic and meteorological factors on the domestic tourism demand for Galicia (Spain). Tour Manag 33(6):1301–1308

Özer KO, Latif H, Sarıışık M, Ergün Ö (2012) International competitive advantage of Turkish tourism industry: a comperative analyse of Turkey and Spain by using the diamond model of M. Porter. Procedia Soc Behav Sci 58:1064–1076

Padilla AO, Rodríguez DB, Aracil PF, Morote GF, Galiano JCS (2016) High speed rail passenger profile in sun and beach tourism destinations: the case of Alicante (Spain). Open Transp J 10(Suppl-1, M9):97–107

Paül V, Trillo-Santamaría JM, Pérez-Costas P (2016) Action research for tourism planning in rural areas? Examining an experience from the Couto Mixto (Galicia, Spain). Geogr Res 54(2):153–164

Peña AIP, Jamilena DMF (2010) The relationship between business characteristics and ICT deployment in the rural tourism sector. The case of Spain. Int J Tour Res 12(1):34–48

Pérez González E, Chávez Álvarez ME, Camalich Massieu MD, Martín-Socas D (2015) Archaeological heritage management in canary islands (Spain) and its relationship with tourism. Current trends in archaeological heritage preservation. Br Archaeol Rep Int Ser 2741:73–76

Perfetto MC, Vargas-Sánchez A (2018) Towards a smart tourism business ecosystem based on industrial heritage: research perspectives from the mining region of Rio Tinto, Spain. J Herit Tour:1–22

Perles Ribes J, Ramón Rodríguez A, Serrano AR, Moreno Izquierdo L (2013) Cycles, economic crisis and tourism competitiveness in Spain: mechanisms of transmission and structural effects. SSRN

Perles-Ribes JF, Ramón-Rodríguez AB, Rubia-Serrano A, Moreno-Izquierdo L (2016a) Economic crisis and tourism competitiveness in Spain: permanent effects or transitory shocks? Curr Issue Tour 19(12):1210–1234

Perles-Ribes JF, Ramón-Rodríguez AB, Sevilla-Jiménez M, Rubia A (2016b) The effects of economic crises on tourism success: An integrated model. Tour Econ 22(2):417–447

Perles-Ribes JF, Ramón-Rodríguez AB, Rubia A, Moreno-Izquierdo L (2017) Is the tourism-led growth hypothesis valid after the global economic and financial crisis? The case of Spain 1957–2014. Tour Manag 61:96–109

Perles-Ribes JF, Ramón-Rodríguez AB, Ivars-Baidal J, Such-Devesa MJ (2018a) The use of private vehicles in residential and holiday tourism destinations: the case of Spain. Curr Issue Tour 1–20

Perles-Ribes JF, Ramón-Rodríguez AB, Ortuño Padilla A (2018b) Brexit announcement: immediate impact on British tourism in Spain. Cornell Hosp Q 60(2):97–103

Polo AI, Frías D (2010) Collective strategies for rural tourism : the experience of networks in Spain. J Tour Consump Pract 2(1):25–45

Prat Forga JM, Cànoves Valiente G (2017) Cultural change and industrial heritage tourism: material heritage of the industries of food and beverage in Catalonia (Spain). J Tour Cult Chang 15(3):265–286

Prat Forga JM, Cànoves i, Valiente G (2012) Relational dynamics of accessible tourism in France, Spain and Morocco. Enlightening Tour Pathmaking J (2):71–95

Priego FJ, Rosselló J, Santana-Gallego M (2015) The impact of climate change on domestic tourism: a gravity model for Spain. Reg Environ Chang 15(2):291–300

Pueyo-Ros J, Ribas A, Fraguell RM (2017) Uses and preferences of visitors to coastal wetlands in tourism destinations (Costa Brava, Spain). Wetlands:1–15

Rey B, Myro RL, Galera A (2011) Effect of low-cost airlines on tourism in Spain. A dynamic panel data model. J Air Transp Manag 17(3):163–167

Ribes JFP, Rodríguez AR, Jiménez MS (2011) Determinants of the competitive advantage of residential tourism destinations in Spain. Tour Econ 17(2):373–403

Rico-Amoros AM, Sauri D, Olcina-Cantos J, Vera-Rebollo JF (2013) Beyond megaprojects?. Water alternatives for mass tourism in coastal Mediterranean Spain. Water Resour Manag 27(2):553–565

Rodríguez XA, Martínez-Roget F, Pawlowska E (2012) Academic tourism demand in Galicia, Spain. Tour Manag 33(6):1583–1590

Romeiroa P, Costab C (2010) The potential of management networks in the innovation and competitiveness of rural tourism: a case study on the Valle del Jerte (Spain). Curr Issue Tour 13(1):75–91

Rosselló J, Saenz-De-Miera O (2011) Road accidents and tourism: the case of the Balearic Islands (Spain). Accid Anal Prev 43(3):675–683

Saenz-de-Miera O, Rosselló J (2012) The responsibility of tourism in traffic congestion and hyper-congestion: a case study from Mallorca, Spain. Tour Manag 33(2):466–479

Sánchez Rivero M, Sánchez Martín JM, Rengifo Gallego JI (2016) Methodological approach for assessing the potential of a rural tourism destination: an application in the province of Cáceres (Spain). Curr Issue Tour 19(11):1084–1102

Sanchez-Cañizares S, Castillo-Canalejo AM (2015) A comparative study of tourist attitudes towards culinary tourism in Spain and Slovenia. Br Food J 117(9):2387–2411

Santana-Jiméez Y, Hernández JM, Suáez-Vega R (2013) Estimating the environmental attractions of rural tourism lodging units in La Gomera island. Spain European Journal of Tourism Research 6(2):132–140

Santana-Talavera A, Fernandez-Betancort H (2014) Times of tourism development and sustainability in lanzarote. Spain Bridging Tour Theory Pract 5:241–264

Santos XM, Trillo-Santamaría JM (2017) Tourism and nation in Galicia (Spain). Tour Manag Perspect 22:98–108

Saurí D, Olcina J, Fernando Vera J, Martín-Vide J, March H, Serra-Llobet A, Padilla E (2013) Tourism, climate change and water resources: coastal Mediterranean Spain as an example. In: European climate vulnerabilities and adaptation: a spatial planning perspective, pp 231–252

Secall LB (2012) Effects of the implementation of tourism excellence plans (1992–2006) in Spain. The case of the Catalan coast. J Pol Res Tour Leisure Events 4(1):84–104

Seoane Perez F (2016) Franco sells Spain to America: Hollywood, tourism and public relations as postwar Spanish soft power. J Contemp Hist 51(4):919–921

Serrano-Macías MI, Álvarez-Gálvez J (2017) Education and tourism in the Spain: identification of tourist profiles through the application of decision trees. Empiria (38)

Sosa DC (2016) Comparative analysis of higher education in tourism in Latin America and Spain. Critical success factors and determinants of enrollment prices. Eur J Tour Res 14

Toubes D, Gössling S, Hall C, Scott D (2017) Vulnerability of Coastal Beach tourism to flooding: a case study of Galicia, Spain. Environments 4(4):83

Urbano D, Toledano N, Ribeiro D (2010) Support policy for the tourism business: a comparative case study in Spain. Serv Ind J 30(1):119–131

Vallejo-Pousada R, Vilar-Rodríguez M, Lindoso-Tato E (2018) The tourism economy in Spain, 1900–1939: new sources, new methodologies and new results. J Tour Hist 10(2):105–129

Vallés SM, Gallego Fernández JB, Dellafiore CM (2011) Dune vulnerability in relation to tourism pressure in central gulf of Cádiz (SW Spain), a case study. J Coast Res 272:243–251

Vargas-Sánchez A (2011) Tourism research in Spain: the state of the. Art Enlightening Tour Pathmaking J 1(1):93–110

Vázquez de la Torre GM, Hidalgo LA, Arjona Fuentes JM (2014) Rural tourism in the south of Spain: an opportunity for rural development. Mod Econ 5:152–160

Voltes-Dorta A, Jiménez JL, Suárez-Alemán A (2016) The impact of ETA’s dissolution on domestic tourism in Spain. Defence Peace Econ 27(6):854–870

Yrigoy, I (2016) The impact of Airbnb in the urban arena towards a tourism-led gentrification? the case-study of Palma old quarter (Mallorca, Spain). Monografies de la Societat d’Historia Natural de les Balears. 281–289

Download references

Author information

Authors and affiliations.

Universidad de Castilla-La Mancha, Toledo, Spain

Francisco J. Tapiador

You can also search for this author in PubMed   Google Scholar

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this chapter

Tapiador, F.J. (2020). Tourism: The Key Player. In: The Geography of Spain. World Regional Geography Book Series. Springer, Cham. https://doi.org/10.1007/978-3-030-18907-5_23

Download citation

DOI : https://doi.org/10.1007/978-3-030-18907-5_23

Published : 20 August 2019

Publisher Name : Springer, Cham

Print ISBN : 978-3-030-18906-8

Online ISBN : 978-3-030-18907-5

eBook Packages : Earth and Environmental Science Earth and Environmental Science (R0)

Share this chapter

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Publish with us

Policies and ethics

• Find a journal
• Track your research

• Fitch Solutions

CreditSights

Fitch learning, fitch ratings research & data, sustainable fitch.

• BMI Platform
• BMI Geoquant
• Fitch Connect

BMI Tourism Industry Research

We support the strategic plans of promotion agencies, hotel chains, travel and transport companies, and terminal operators with forward-looking, integrated research on the global tourism industry.

Get deep insight into tourism trends

Quarterly Reports

Tourism market overviews for over 65 countries, including latest forecasts, trend analysis, and company strategies.

Data & Forecasts

Exportable database with up to 30-year historic data and 5-year forecasts for tourism arrivals, receipts, departures, and hotel accommodation.

Competitor Intelligence

Company profiles, strategies, and financials of key players across the tourism industry, including mergers and acquisitions, restructuring activities, and investments.

Data and research to drive your tourism strategy

The year ahead for 2024.

In 2024, a multitude of industries will be affected by a combination of factors: a slowing global growth rate, continued geopolitical instability, and a packed 2024 election schedule. The anticipated de-synchronised deceleration in global economic growth will be felt most prominently in developed markets and poses significant challenges for all sectors.

Macroeconomic & Industry Data

Our experts collate, verify, and standardize data from over 2,000 sources across global markets, allowing you more time to analyze, explore, and execute on your strategy.

Latest Tourism Indicators

From Albania to Zimbabwe, our Tourism dataset provides key indicators for arrivals and departures by country, international tourism receipts and expenditure, domestic spend, length of stay, hotel rooms, occupancy, and more.

Connect with our thinking

We integrate political, macroeconomic, and cross-industry expertise into our tourism industry analysis, allowing our customers to benefit from understanding how each factor impacts on the other in their chosen markets.

Michelle Berman

Advisory Project Director

Michelle Berman is a Project Director within BMI’s Advisory team and has worked as a Head of Research across multiple industries since joining BMI in 2007. Her most recent role was as Head of Consumer, Food & Drink and Tourism Industry Research, where she worked directly with clients in these industries to run opportunity assessment and risk planning. Prior to this role Michelle headed up the Operational Risk division, which focused on offering clients insight into market entry and expansion strategy within emerging and frontier markets. Michelle has also held the positions of Head of Logistics Industry Research and Senior Analyst in the Construction and Infrastructure Industry Research team.

Latest Insights

Radisson hotel group launches new luxury beachfront hotel in india, morocco’s arrivals will be driven by european markets, but there are opportunities for source market diversification, malawi's tourism, ev import duty exemption and logistics development will boost vehicle demand, greece to ramp up tourism strategies to drive increased arrivals, meliá hotels’ thailand expansion will bolster the market’s luxury hotel offering, mauritius tourism set for robust growth with full rebound projected for 2024, quick view: marriott and ab living resorts expansion highlights positive tourism environment, oman to set new tourism growth trajectory amid robust arrivals growth, azerbaijan’s arrivals to climb in 2024, but trail pre-pandemic peak, quick view: marriott hotels to tap into mexico's strong inbound tourism sector, costa rica tourism arrivals projected to recover to pre-pandemic levels in 2024, kenya to strengthen arrivals from mainland china, driving tourism sector growth, hong kong, china: less drag from net exports in 2024, beyond elections: turkiye’s economic and sectoral outlook.

Jun 05, 2023 Webinar | 11:30 London BST | 13:30 Turkiye TRT

Political Risk In 2023: Turkiye And Beyond

May 30, 2023 Webinar | 12:30 London BST

World of Worries: Political Risks in 2024

Our analysts and specials guests discuss the key political and geopolitical risks to watch

Megatrends In Industry, Politics And The Global Economy

What will the world look like in 2050?

Presenting BMI’s Key Megatrends

On 21st June 2023 we launched the 4th edition of Towards 2050: Megatrends in Industry, Politics and The Global Economy at an exclusive event in London, where BMI’s senior analysts explored some of the key themes from the report in more detail.

Towards 2050: Megatrends in Industry, Politics and The Global Economy – Report Summary

The 4th edition of the best-selling Towards 2050: Megatrends in Industry, Politics and The Global Economy report leverages BMI analyst expertise and the results of an industry-wide survey to assess the disruption risk and new opportunities that will emerge from key global themes such as:

Global Industries Outlook 2023

Six major themes will influence the way industries operate in 2023.

Asia Monthly Outlook: Key Themes for 2023

We expect Asia’s tourism recovery to pick up pace in 2023 due to an influx of tourists from Mainland China.

Rising Risks to Turkey’s Outlook

Fitch Solutions Country Risk analysts explore the current economic conditions in Turkey and provide three growth scenarios for 2023-2025, based on possible policy direction following the upcoming elections scheduled for June 2023.

Global Industries Outlook 2022 - Mid-Year Update

Russia’s invasion of Ukraine has permeated across many of our global themes. The high inflation environment and subsequent cost of living crisis and rising interest rate environment in many markets has had knock-on-effects for other trends we expected to see play out. In general, while we have seen a waning economic impact from Covid-19, the Russia-Ukraine crisis has prevented full economic normalisation globally, impacting growth across several industries.

• Reports Store

Over 2,000 reports are available to purchase and download immediately at the BMI Store .

You may also be interested in:

Bmi consumer & retail industry research.

Key insights and data into the economic, social, and political factors influencing household spending.

BMI Healthcare Industry Research

Data-driven analysis of healthcare systems, resources, expenditure, and digital health strategies.

BMI Country Risk

Expert analysis of the political and economic risks that could impact your growth strategies in more than 200 markets.

BMI Operational Risk

Detailed analysis of business environment risks and comparable data evaluating the ease of doing business in world markets.

Seize opportunities in the tourism sector

Request a demonstration of Tourism Industry Research to find out how we help clients prioritize markets and profit from the latest trends. Once you complete the form, one of our specialists will be in touch to discuss how our data and research can be seamlessly delivered to match your needs.

Thank you for your request. One of our specialists will be in touch shortly. If you need immediate assistance, please contact our nearest office .

Thank you. Your download link will be emailed to you shortly.

Get to know the business behind the products. Meet some of our key people and explore our credentials.

BMI Launches New Political Risk Service Offering Key Insights, Analytics, And Data Across 200+ Markets

AfCFTA Implementation Could Boost African GDP by up to 4.2% by 2035, Says CFCA Insights/BMI Report

GeoQuant Wins Most Innovative Technology Vendor – AI & Machine Learning at American Financial Technology Awards

• Early Talent

Know what you need but not sure where to find it? Discover how we can meet your requirements.

• Countries & Regions
• Industries & Sectors
• Companies or Entities
• Issues, Deals & Transactions

Explore knowledge that cuts through the noise, with award-winning data, research, and tools.

• Country Risk
• Industry Research
• Operational Risk
• Fitch Ratings Data & Research
• Fitch Credit Ratings Data
• Fitch Ratings Credit Research
• Fitch Ratings ESG Relevance Scores Data
• Fundamental Data & Analytics
• Bank Scorecard
• Basel III - SCRA Data
• CDS Implied Credit Scores
• Financial Implied Credit Scores
• Fitch Connect News
• Fundamental Data
• Leveraged Finance Intelligence
• Covenant Review
• LevFin Insights
• PacerMonitor
• CreditSights  
• Risk Products

Browse over 2,000 research reports at the Fitch Solutions Store .

• Country Risk Reports
• North America
• Latin America
• Middle East
• Industry Reports
• Special Reports
• Browse All Reports

Know what you need but can't find it?

BMI has a 40- year track record of supporting investors, risk managers and strategists. We help them identify opportunities and quantify risks in markets where reliable information is hard to find and difficult to interpret. This includes in-depth insight and data, and high frequency geopolitical risk indicators.

CreditSights enables credit market participants to manage financial risk better with independent credit research, global market insights, covenant analysis, and news, distilling market noise into actionable investment ideas.

dv01 provides true transparency in lending markets, and valuable intelligence on every consumer loan in the structured finance world, through a leading data intelligence platform.

Fitch Learning develops the future leaders of the financial services industry and drives collective business performance. We do this by utilizing a best-in-class technology platform and blended learning solutions that maintain the personal element of development.

We help credit, risk, and investment professionals make better-informed decisions and meet regulatory requirements, within and beyond the rated universe. We do this by providing differentiated perspectives and in-depth expertise through Fitch Credit Ratings, Fitch Ratings Credit Research, Fundamental Financial Data, and innovative datasets, all backed by transparent methodologies, accessible analysts, and workflow-enhancing analytical tools.

Sustainable Fitch delivers human-powered sustainability Ratings, Scores & Opinions, as well as Data & Research to serve the needs of fixed income investors. Our specialists uniquely deconstruct the complex issues of E, S, and G globally.

ESG Relevance Scores Data

Access ESG Scores on more than 10,000 entities and transactions, and over 140,000 ESG data points to support your credit risk assessments.

Get to know the company behind the products, our values and our history. Meet some of our key people and explore our credentials.

• Work with Us

Explore our latest views on risks and opportunities by industry, region or topic.

Central Bank of Egypt Will Hold Rates In H2 2024

Downward 2024 Growth Revision For Zambia As Drought Conditions Bite

Quick View: Regional Logistics Potential Improves Tanzania's Autos Production Appeal

US Election Chartbook (April 2024)

Americas Telecommunications Insight (March 2024)

Middle East & Africa Mining Insight (March 2024)

• Global Elections 2024
• BMI Key Themes 2024
• Russia-Ukraine Crisis
• Agribusiness
• Consumer & Retail
• Consumer Electronics
• Food & Drink
• Information Technology
• Infrastructure
• Medical Devices
• Oil & Gas
• Pharmaceuticals
• Telecommunications
• More Industries

Learn more about the BMI products and services that empower you to make critical business decisions with confidence.

• Politics & GeoQuant

• Hospitality Industry

Why the tourism industry needs sustainability champions

November 19, 2020 •

6 min reading

In the absence of leading role players in sustainability, the tourism landscape currently benefits from an eco-system of academics, startups, entrepreneurial businesses, NGOs and the public sector

Tourism is one of the world’s biggest sectors and contributes substantially to the global CO2 emissions. Moreover, Covid-19 has emphasized the importance of travel and tourism to many economies, but also the volatility of the business. Questions loom large :

• Given the Co 2 emissions, c an tourism ever be sustainable?
• H ow can the tourism sector transition to more sustainable practices?
• H ow can the current crisis be an opportunity for a more sustainable industry ?

Sustainability is a buzzword that is often overused. Nowadays every company and every senior executive in the tourism value chain tries to position themselves as representing responsible organizations and citizens, (even if it is not always clear how they meet their sustainability obligations). Central to this discussion is the concern about how the tourism industry is looking to the future and what needs to be done to reduce its social, financial and environmental impacts, and stay within the planetary boundaries .

The travel and tourism industry is one of the largest industries in the world. In that sense, it is different from other goods and services: tourism brings together a melting pot of some of the largest global multinationals with tens of thousands of smaller local, regional and national participants. Also, different from other sectors, sustainability initiatives in tourism tend to follow a bottom-up approach. A growing number of smaller players are entering the field with innovative approaches and disruptive business models.

Sustainability champions

The tourism industry is in great need of mavericks - role model companies that make strong commitments to sustainability, as to transform their business philosophy in its entirely. When the current move towards more sustainable and regenerative activities turns into a global transformation, every firm needs to designate a role model to guide their strategic decisions. Here’s why:

• Leadership : Sustainability mavericks pave the path to bringing about a positive change. Champions and ambassadors take risks and invite others to also carve out a path that isn't already there.
• Accountability: These iconic companies unleash the power of influence as industry leaders. These companies increase accountability, limit opportunism and shape an industry´s sustainable future - in the environmental sense as much as in social and governance terms (2020 Global 100 ranking of the world´s most sustainable corporations ).
• Innovation: Big companies help to build so-called sustainable business ecosystems. These companies are the keystone to co-creating value and redefining supply networks.

According to Eccles, Ioannu and Serafeim (2014), “the boards of directors of high sustainability companies are more likely to be formally responsible for sustainability and their organizations, to establish processes for stakeholder engagement, to be more long-term oriented, and to exhibit higher measurement and disclosure of nonfinancial information.” Yet, seldomly does a tourism company make it to the top list of key global players in sustainability.

Take for example the latest Greenbiz' s 20 C-Suite Sustainability champions for 2020 or the Corporate Knights Global 100 , an annual ranking of the 100 most sustainable companies by Corporate Knights, the company for clean capitalism. None of these well-known rankings include any tourism or accommodation company nor any of their C-Suite members.

It is worth noting that Global 100 companies consistently outperform MSCI ACWI companies on ESG (environmental, social, governance) dimensions: CEO-to-average-worker-pay ratio, board gender diversity, paying their fair share of taxes, and on various other specific metrics that factor into the ranking.

Source: Bloomberg (2020)

Source: Where are the World’s Most Sustainable Companies ?

Smaller ventures are the bedrock of sustainable tourism

In the absence of those groundbreaking pioneers that inspire transformation at a massive scale, grassroot organizations are stepping up in an effort to take a leading role in shaping a more sustainable tourism industry by means of bringing together businesses, academics, startups, SMEs, NGOs and the public sector searching for answers to today’s biggest challenges.

These associations ensure that the bedrock of the new industry - smaller companies - has access to sustainable initiatives and resources. Interest groups and movements develop networks and build communities. They also play a vital role as a source of innovation, a liaison with funding and institutional resources and, above all, a force for change.

GreenBuzz illustrates how grassroot organizations create legitimacy in the sustainable tourism landscape . It was founded 10 years ago and is a global network of sustainability professionals with branches in Zurich, Bern, Geneva, Amsterdam and Berlin. Through events, UNconferences, workshops and peer-to-peer learning groups, GreenBuzz connects professionals as well as organizations, companies and institutions from across different sectors to share knowledge and to inspire and motivate each other to push sustainability forward.

Last September 2020, GreenBuzz Zurich, the biggest sustainability network in the region with over 3,000 people, got together for a thematic evening around the question “ How can Tourism be a Force for Good? ” The event was organized by EHL Alumni including: Alexie Duncker Grosse and Carol Gerhard, and volunteer Marie Cristina Nieddu.

Several experts were invited to share their perspectives on sustainability action plans and relevant opportunities to implement them, including Mr. Luigi Cabrini , the Chairman of the Board of Directors of the Global Sustainable Tourism Council (GSTC); Franziska Altenrath , Managing Director of Tutaka; Daniela Schöb the Project Manager of "Smart ZRH" at Zürich Tourism; Alexandra Pastollnigg , the founder of Fair Voyage ; and Carlos Martin-Rios , Associate Professor of Management at EHL.

While big players in the industry get ready to step up on sustainability , events promoted by associations like Greenbuzz champion sustainability development and become a great opportunity to building lasting alliances across academia, business, policy and activism.

Additional information

More information about GreenBuzz and GreenBuzz Zurich can be found here and here .

Associate Professor at EHL

Keep reading

Hospitality management careers list for hotel enthusiasts

May 07, 2024

How Airbnb and short-term rentals reshape rural and urban communities

May 02, 2024

What does a Hotel Manager do?

This is a title

This is a text

• Bachelor Degree in Hospitality
• Pre-University Courses
• Master’s Degrees & MBA Programs
• Executive Education
• Online Courses
• Swiss Professional Diplomas
• Culinary Certificates & Courses
• Fees & Scholarships
• Bachelor in Hospitality Admissions
• EHL Campus Lausanne
• EHL Campus (Singapore)
• EHL Campus Passugg
• Host an Event at EHL
• Contact our program advisors
• Join our Open Days
• Meet EHL Representatives Worldwide
• Chat with our students
• Why Study Hospitality?
• Careers in Hospitality
• Awards & Rankings
• EHL Network of Excellence
• Career Development Resources
• EHL Hospitality Business School
• Route de Berne 301 1000   Lausanne 25 Switzerland
• Accreditations & Memberships
• Privacy Policy
• Legal Terms

© 2024 EHL Holding SA, Switzerland. All rights reserved.

• Do Not Sell My Personal Info

•  ⋅ 

The US Online Travel & Tourism Industry: Who Are The Top Players in Search?

Expedia and Kayak lead the visibility charts with impressively strong positions in Organic Search results.

Rapidly changing, highly competitive, filled by tremendous amounts of newcomers emerging as we speak – this is how the US Online Travel & Tourism Industry can be generally described. Despite all the challenges, there are some players who successfully manage to reach and remain in top positions in the biggest search engine results. Following, we will explore who they are and which are the most competitive categories in which their domains “fight” to dominate.

The Top 5 Domains in the Travel & Tourism Industry

The following infographic illustrates the aggregated visibility of the current top 5 competitors in the US Travel & Tourism Industry over the past 6 weeks, including both Organic and Paid visibility:

The top players receive the following percentages of aggregated visibility, respectively: Expedia.com – 39.2%; Kayak.com – 18.9%; TravelandLeisure.com – 16.1%; Orbitz.com – 15.5%; and Priceline.com – 10.3%. Data was extracted on 3/12/2013.

Expedia and Kayak lead the charts

It doesn’t take much to observe that Expedia.com and Kayak.com are direct competitors in the “fight” for visibility, as a logical result of the similar nature of their business. Expedia and Kayak are both among the world’s largest online travel agencies with a solid presence across the globe via local websites. The travel companies work as aggregators of a large range of flight & hotel deals, car rentals, vacation destinations and cruises. Additionally, Expedia and Kayak provide their customers with ideas, deals and information through a mobile app and have a solid presence in social media.

This calls for a battle! Let’s see what happens if we place the two domains in a direct “fight”, and get a more detailed overview of the Categories in which they are direct rivals. Here is an extraction of the results, specifically of the US Market:

The screenshot represents the battle between Expedia and Kayak, only partially. The first table contains the ranking of Expedia.com, and the second of Kayak.com. The battle was conducted on 2/12/2013.

Two conclusions come to mind after a first glimpse:

• Expedia is a Market Leader in a greater number of Categories (11 Total) within the Travel & Tourism Industry, however both domains rank #1 in an equal amount of Categories.
• “Airline Tickets” is the Category in which Expedia and Kayak are direct competitors for Visibility.

Further Insights: Paid vs. Organic Search Strategy

Because, as mentioned before, Airline Tickets was the category in which the two domains are direct competitors, we decided to compare how their visibility is spread among Organic and Paid. Here comes the interesting part:

You probably think that the top players in an extremely competitive Category, such as Airline Tickets, often have to spend significant resources on AdWords, PPC, etc. in order to “buy” their way to the top. On the contrary, both Expedia and Kayak have spent little (Expedia.com) to zero (Kayak.com) in paid visibility on the top generic keywords that we track for the Industry for the last 6 weeks:

The real rivalry between Expedia and Kayak in the Airline Tickets Category can be easily observed in their organic results:

To summarize, the analysis of two top players in the US Online Travel & Tourism Industry points out a key takeaway for marketers struggling to achieve better visibility with their Search Marketing efforts: spending resources on Ads to gain positions in paid visibility does not necessarily guarantee leading positions in the biggest search engine results. Players like Expedia and Kayak, with their impressively strong organic positions, are proof of that.

Smilena likes to call herself a “digital enthusiast”, fascinated by the power and the potential of online media for businesses. ...

Subscribe To Our Newsletter.

Conquer your day with daily search marketing news.

+1-315-215-1633

[email protected]

• Industries Healthcare Information Technology & Semiconductors Machinery & Equipment Aerospace & Defence Chemicals & Materials Food & Beverages Agriculture Energy & Power Consumer Goods Automotive & Transportation
• Services Consulting Services Tailored Insights Emerging Technologies Syndicated Market Reports Competitive Intelligence Customer Research Market Intelligence Industry Development

Tourism Market

Tourism Market Size By Travel Days (Within 7 Days, More Than 15 Days, and 7-15 Days), By Travel Type (Business Spending and Leisure Spending), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2022 to 2030

• Report ID: TBI-13245
• Published Date: Jan, 2023
• Category: Consumer Goods
• Format: PDF

Buy @ $4700.00 Request Sample PDF

• Table of Content
• Market Segmentation

Methodology

• Request Sample PDF

The global tourism market is expected to reach USD 16.9 Trillion by 2030, at a CAGR of 5.4% during the forecast period 2022 to 2030. Asia Pacific is expected to grow the fastest during the forecast period. 

Market Overview:

Travel may be short-distance, long-distance, domestic, or international. The travel demand is expected to increase significantly over the next few years due to various factors, particularly after the relaxation of travel limitations connected to COVID-19. The different aspects of the broader service sector that meet the wants and needs of people who travel from one part of the world to another are included in the travel business. Sustainable travel, which is predicted to be the future of travel, is projected to have a growing impact on the expansion of the travel and tourist industry. The improvement in accessibility to several isolated but stunning sites as well as the development in disposable income, are the main factors driving the travel and tourism business. The travel and tourist industry has benefited from the robust growth of the general infrastructure and transportation systems. Unique once-in-a-lifetime experiences are becoming more and more popular among millennial tourists. Ecological trips are growing in popularity in this setting. As a result, the global travel and tourism market is expanding faster than before. To diversify their revenue streams, businesses in the travel and tourism industry must provide cutting-edge and distinctive travel experiences, such as immersive tours.

Get an overview of this study by requesting a free sample

Recent Development

• Hilton Worldwide Holdings Inc. made intentions to increase its presence in the Caribbean and Latin America public in August 2022. By the end of 2022, the business anticipates opening its 200th hotel in the area. The company also inked 15 new development partnerships. It announced intentions to open 15 further hotels in the second half of 2022, increasing the total number of projects in its pipeline to 105, totalling almost 15,750 rooms.
• On Unguja, the largest island in Zanzibar, RIU debuted the Riu Jambo, its second hotel, in June 2022. With a total of 461 rooms, it is a 4-star, 24-hour all-inclusive hotel.

Market Dynamics:

Increasing Government Initiatives - Emerging countries benefit greatly from health tourism's financial output, which enables them to improve their healthcare infrastructure. Public authorities have responded by increasing their participation in travel and tourist websites in favour of healthcare services. For instance, the Thai government released the criteria for issuing smart visas to professionals or business owners seeking to start new ventures in February 2018. This announcement may help international health tourism service providers expand their operations in Thailand.

Restraints:

Rise in Cost- However, one of the main reasons that would impede market growth and further complicate the expansion of the tourism market over the forecast period is the rise in the cost of research and development activities. The development of the cultural tourist business will be further hampered by the strict rules put in place by the authorities in response to the impact of COVID-19.

Opportunities:

Promotions by the government - To draw in a variety of travellers from all over the world, governments and organisations like the World Tourism Organization (UNWTO) are promoting tourism. The global tourism market is expanding as a result of these measures. The emerging notion of adventure tourism is driving the whole tourism market. Furthermore, a recent development in the global tourism industry is medical tourism . The notable price differences between medical procedures in various nations drive the global trend of medical tourism. International sporting events also drive the global tourism business. Sports events like the FIFA World Cup 2014, the London Olympics 2012, and the ICC World Cup 2011 attract travellers.

Challenges:

Several Risks Associated - When a person is travelling to another country, there are several risks associated with it, such as; contracting disease, robbery, legal issues etc. Furthermore, there are several language barriers which also challenge the market’s growth over the forecast period.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific emerged as the largest market for the global tourism market, with a 40% share of the market revenue in 2022.

Asia Pacific currently dominates tourism with a 40% market revenue share in 2022. China and India are the two most powerful nations in the region. The developing BRICS nations are a focus for international tourism and travel companies. In China, the travel and tourism sector is expanding. Tourism industry participants worldwide should benefit financially from inbound and outbound tourism to growing Asia-Pacific nations. Thailand, Japan, Singapore, Vietnam, Indonesia, Malaysia, the Philippines, and South Korea are the most popular travel destinations. After the pandemic's peak, there has been a persistent trend toward ecotourism, emphasising conservation, adventure travel, and health and wellness tours.

Europe is expected to witness the fastest growth during the forecast period. To increase tourism, important government agencies in the area are working with specialised tourism businesses and other government agencies. This is a significant factor influencing the European travel and tourism industry globally.

Europe Region Tourism Market Share in 2022 - 33%

www.thebrainyinsights.com

Check the geographical analysis of this market by requesting a free sample

Travel Days Analysis:

The travel days segment is divided into within 7 days, more than 15 days, and 7-15 days. The within 7 days segment dominated the market, with a market share of around 40% in 2022. The travel days are usually 7 days. As people have their professional responsibilities so they cant expand their travelling days to more than 7, which adds impetus to the segment’s growth.

Travel Type Analysis:

The travel type segment is divided into business spending and leisure spending. Over the forecast period, the business spending segment is expected to grow at the fastest CAGR of 5.9%. Most of the businesses offer travelling facilities to their employees, adding impetus to the segment’s growth.

List of Key Market Players:

• Austin Adventures, Inc.
• Butterfield & Robinson Inc.
• G Adventures
• Geographic Expeditions Inc.
• Intrepid Group, ltd.
• Mountain Travel Sobek
• Discovery Nomads
• Row Adventures
• Cox & Kings Ltd.

Report Description: 

Frequesntly Asked Questions

What is the market size of the global tourism market.

As per The Brainy Insights, the size of the tourism market was valued at USD 11.1 Trillion in 2022 to USD 16.9 Trillion by 2030.

What is the market growth rate of the global tourism market?

The global tourism market is growing at a CAGR of 5.4% during the forecast period 2022-2030.

Which region dominates the global tourism market?

Asia Pacific currently emerged as the largest market for Tourism.

Who are the key players in the global tourism market?

Key players in the Tourism market are Austin Adventures, Inc., Butterfield & Robinson Inc., G Adventures, Geographic Expeditions Inc., Intrepid Group, ltd., Mountain Travel Sobek, Discovery Nomads, Row Adventures, Tui Group, and Cox & Kings Ltd.

Get Your Report Customized

• Further segmentation of the market on the basis of type, application, end use, product, technology, method, process and any other segment depending on the market
• Segmentation on the basis of any specific country or region
• Any segment can be classified on the basis of application
• Application segment can be further divided on the basis of companies
• The companies profiled are not limited, we can incorporate additional companies of your choice
• We can split the company market share on the basis of product, application and region
• Report can be prepared for any specific country/region/segment
• Customers can be added on the basis of regions and countries

1. Introduction     1.1. Objectives of the Study     1.2. Market Definition     1.3. Research Scope     1.4. Currency     1.5. Key Target Audience 2. Research Methodology and Assumptions 3. Executive Summary 4. Premium Insights     4.1. Porter’s Five Forces Analysis     4.2. Value Chain Analysis     4.3. Top Investment Pockets           4.3.1. Market Attractiveness Analysis By Travel Days           4.3.2. Market Attractiveness Analysis By Travel Type           4.3.3. Market Attractiveness Analysis By Region     4.4. Industry Trends 5. Market Dynamics     5.1. Market Evaluation     5.2. Drivers           5.2.1. Increasing Government Initiatives     5.3. Restraints           5.3.1. Rise in Cost     5.4. Opportunities           5.4.1. Promotions by government     5.5. Challenges           5.5.1. Several Risks Associated 6. Global Tourism Market Analysis and Forecast, By Travel Days     6.1. Segment Overview     6.2. Within 7 Days     6.3. More Than 15 Days     6.4. 7-15 Days 7. Global Tourism Market Analysis and Forecast, By Travel Type     7.1. Segment Overview     7.2. Business Spending     7.3. Leisure Spending 8. Global Tourism Market Analysis and Forecast, By Regional Analysis     8.1. Segment Overview     8.2. North America           8.2.1. U.S.           8.2.2. Canada           8.2.3. Mexico     8.3. Europe           8.3.1. Germany           8.3.2. France           8.3.3. U.K.           8.3.4. Italy           8.3.5. Spain     8.4. Asia-Pacific           8.4.1. Japan           8.4.2. China           8.4.3. India     8.5. South America           8.5.1. Brazil     8.6. Middle East and Africa           8.6.1. UAE           8.6.2. South Africa 9. Global Tourism Market-Competitive Landscape     9.1. Overview     9.2. Market Share of Key Players in Global Tourism Market           9.2.1. Global Company Market Share           9.2.2. North America Company Market Share           9.2.3. Europe Company Market Share           9.2.4. APAC Company Market Share     9.3. Competitive Situations and Trends           9.3.1. Travel Days Launches and Developments           9.3.2. Partnerships, Collaborations, and Agreements           9.3.3. Mergers & Acquisitions           9.3.4. Expansions 10. Company Profiles     10.1. Austin Adventures, Inc.           10.1.1. Business Overview           10.1.2. Company Snapshot           10.1.3. Company Market Share Analysis           10.1.4. Company Travel Days Portfolio           10.1.5. Recent Developments           10.1.6. SWOT Analysis     10.2. Butterfield & Robinson Inc           10.2.1. Business Overview           10.2.2. Company Snapshot           10.2.3. Company Market Share Analysis           10.2.4. Company Travel Days Portfolio           10.2.5. Recent Developments           10.2.6. SWOT Analysis     10.3. G Adventures           10.3.1. Business Overview           10.3.2. Company Snapshot           10.3.3. Company Market Share Analysis           10.3.4. Company Travel Days Portfolio           10.3.5. Recent Developments           10.3.6. SWOT Analysis     10.4. Geographic Expeditions Inc.           10.4.1. Business Overview           10.4.2. Company Snapshot           10.4.3. Company Market Share Analysis           10.4.4. Company Travel Days Portfolio           10.4.5. Recent Developments           10.4.6. SWOT Analysis     10.5. Intrepid Group, ltd.           10.5.1. Business Overview           10.5.2. Company Snapshot           10.5.3. Company Market Share Analysis           10.5.4. Company Travel Days Portfolio           10.5.5. Recent Developments           10.5.6. SWOT Analysis     10.6. Mountain Travel Sobek           10.6.1. Business Overview           10.6.2. Company Snapshot           10.6.3. Company Market Share Analysis           10.6.4. Company Travel Days Portfolio           10.6.5. Recent Developments           10.6.6. SWOT Analysis     10.7. Discovery Nomads           10.7.1. Business Overview           10.7.2. Company Snapshot           10.7.3. Company Market Share Analysis           10.7.4. Company Travel Days Portfolio           10.7.5. Recent Developments           10.7.6. SWOT Analysis     10.8. Row Adventures           10.8.1. Business Overview           10.8.2. Company Snapshot           10.8.3. Company Market Share Analysis           10.8.4. Company Travel Days Portfolio           10.8.5. Recent Developments           10.8.6. SWOT Analysis     10.9. Tui Group           10.9.1. Business Overview           10.9.2. Company Snapshot           10.9.3. Company Market Share Analysis           10.9.4. Company Travel Days Portfolio           10.9.5. Recent Developments           10.9.6. SWOT Analysis     10.10. Cox & Kings Ltd.           10.10.1. Business Overview           10.10.2. Company Snapshot           10.10.3. Company Market Share Analysis           10.10.4. Company Travel Days Portfolio           10.10.5. Recent Developments           10.10.6. SWOT Analysis

List of Table

1. Global Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

2. Global Within 7 Days, Tourism Market, By Region, 2019-2030 (USD Trillion) 

3. Global More Than 15 Days, Tourism Market, By Region, 2019-2030 (USD Trillion)

4. Global 7-15 Days, Tourism Market, By Region, 2019-2030 (USD Trillion)

5. Global Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

6. Global Business Spending, Tourism Market, By Region, 2019-2030 (USD Trillion)

7. Global Leisure Spending, Tourism Market, By Region, 2019-2030 (USD Trillion)

8. North America Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

9. North America Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

10. U.S. Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

11. U.S. Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

12. Canada Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

13. Canada Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

14. Mexico Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

15. Mexico Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

16. Europe Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

17. Europe Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

18. Germany Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

19. Germany Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

20. France Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

21. France Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

22. U.K. Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

23. U.K. Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

24. Italy Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

25. Italy Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

26. Spain Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

27. Spain Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

28. Asia Pacific Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

29. Asia Pacific Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

30. Japan Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

31. Japan Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

32. China Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

33. China Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

34. India Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

35. India Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

36. South America Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

37. South America Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

38. Brazil Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

39. Brazil Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

40. Middle East and Africa Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

41. Middle East and Africa Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

42. UAE Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

43. UAE Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

44. South Africa Tourism Market, By Travel Days, 2019-2030 (USD Trillion)

45. South Africa Tourism Market, By Travel Type, 2019-2030 (USD Trillion)

List of Figures  

1. Global Tourism Market Segmentation

2. Global Tourism Market: Research Methodology

3. Market Size Estimation Methodology: Bottom-Up Approach

4. Market Size Estimation Methodology: Top-Down Approach

5. Data Triangulation

6. Porter’s Five Forces Analysis 

7. Value Chain Analysis 

8. Global Tourism Market Attractiveness Analysis By Travel Days

9. Global Tourism Market Attractiveness Analysis By Travel Type

10. Global Tourism Market Attractiveness Analysis By Region

11. Global Tourism Market: Dynamics

12. Global Tourism Market Share By Travel Days (2022 & 2030)

13. Global Tourism Market Share By Travel Type (2022 & 2030)

14. Global Tourism Market Share By Regions (2022 & 2030)

15. Global Tourism Market Share By Company (2021)

This study forecasts global, regional, and country revenue from 2019 to 2030. Brainy Insights has segmented the global tourism market based on the below-mentioned segments:

Global Tourism Market by Travel Days: 

• Within 7 Days
• More Than 15 Days

Global Tourism Market by Travel Type:

• Business Spending
• Leisure Spending

Global Tourism Market by Region:

• South Africa

Research has its special purpose to undertake marketing efficiently. In this competitive scenario, businesses need information across all industry verticals; the information about customer wants, market demand, competition, industry trends, distribution channels etc. This information needs to be updated regularly because businesses operate in a dynamic environment. Our organization, The Brainy Insights incorporates scientific and systematic research procedures in order to get proper market insights and industry analysis for overall business success. The analysis consists of studying the market from a miniscule level wherein we implement statistical tools which helps us in examining the data with accuracy and precision. 

Our research reports feature both; quantitative and qualitative aspects for any market. Qualitative information for any market research process are fundamental because they reveal the customer needs and wants, usage and consumption for any product/service related to a specific industry. This in turn aids the marketers/investors in knowing certain perceptions of the customers. Qualitative research can enlighten about the different product concepts and designs along with unique service offering that in turn, helps define marketing problems and generate opportunities. On the other hand, quantitative research engages with the data collection process through interviews, e-mail interactions, surveys and pilot studies. Quantitative aspects for the market research are useful to validate the hypotheses generated during qualitative research method, explore empirical patterns in the data with the help of statistical tools, and finally make the market estimations.

The Brainy Insights offers comprehensive research and analysis, based on a wide assortment of factual insights gained through interviews with CXOs and global experts and secondary data from reliable sources. Our analysts and industry specialist assume vital roles in building up statistical tools and analysis models, which are used to analyse the data and arrive at accurate insights with exceedingly informative research discoveries. The data provided by our organization have proven precious to a diverse range of companies, facilitating them to address issues such as determining which products/services are the most appealing, whether or not customers use the product in the manner anticipated, the purchasing intentions of the market and many others.

Our research methodology encompasses an idyllic combination of primary and secondary initiatives. Key phases involved in this process are listed below:

MARKET RESEARCH PROCESS

Data Procurement:

The phase involves the gathering and collecting of market data and its related information with the help of different sources & research procedures.

The data procurement stage involves in data gathering and collecting through various data sources.

This stage involves in extensive research. These data sources includes:

Purchased Database: Purchased databases play a crucial role in estimating the market sizes irrespective of the domain. Our purchased database includes:

• The organizational databases such as D&B Hoovers, and Bloomberg that helps us to identify the competitive scenario of the key market players/organizations along with the financial information.
• Industry/Market databases such as Statista, and Factiva provides market/industry insights and deduce certain formulations. 
• We also have contractual agreements with various reputed data providers and third party vendors who provide information which are not limited to:
• Import & Export Data
• Business Trade Information
• Usage rates of a particular product/service on certain demographics mainly focusing on the unmet prerequisites

Primary Research: The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. Primary research mainly involves in telephonic interviews, E-mail interactions and face-to-face interviews with the raw material providers, manufacturers/producers, distributors, & independent consultants. The interviews that we conduct provides valuable data on market size and industry growth trends prevailing in the market. Our organization also conducts surveys with the various industry experts in order to gain overall insights of the industry/market. For instance, in healthcare industry we conduct surveys with the pharmacists, doctors, surgeons and nurses in order to gain insights and key information of a medical product/device/equipment which the customers are going to usage. Surveys are conducted in the form of questionnaire designed by our own analyst team. Surveys plays an important role in primary research because surveys helps us to identify the key target audiences of the market. Additionally, surveys helps to identify the key target audience engaged with the market. Our survey team conducts the survey by targeting the key audience, thus gaining insights from them. Based on the perspectives of the customers, this information is utilized to formulate market strategies. Moreover, market surveys helps us to understand the current competitive situation of the industry. To be precise, our survey process typically involve with the 360 analysis of the market. This analytical process begins by identifying the prospective customers for a product or service related to the market/industry to obtain data on how a product/service could fit into customers’ lives.

Secondary Research: The secondary data sources includes information published by the on-profit organizations such as World bank, WHO, company fillings, investor presentations, annual reports, national government documents, statistical databases, blogs, articles, white papers and others. From the annual report, we analyse a company’s revenue to understand the key segment and market share of that organization in a particular region. We analyse the company websites and adopt the product mapping technique which is important for deriving the segment revenue. In the product mapping method, we select and categorize the products offered by the companies catering to domain specific market, deduce the product revenue for each of the companies so as to get overall estimation of the market size. We also source data and analyses trends based on information received from supply side and demand side intermediaries in the value chain. The supply side denotes the data gathered from supplier, distributor, wholesaler and the demand side illustrates the data gathered from the end customers for respective market domain.

The supply side for a domain specific market is analysed by:

• Estimating and projecting penetration rates through analysing product attributes, availability of internal and external substitutes, followed by pricing analysis of the product.
• Experiential assessment of year-on-year sales of the product by conducting interviews.

The demand side for the market is estimated through:

• Evaluating the penetration level and usage rates of the product.
• Referring to the historical data to determine the growth rate and evaluate the industry trends

In-house Library: Apart from these third-party sources, we have our in-house library of qualitative and quantitative information. Our in-house database includes market data for various industry and domains. These data are updated on regular basis as per the changing market scenario. Our library includes, historic databases, internal audit reports and archives.

Sometimes there are instances where there is no metadata or raw data available for any domain specific market. For those cases, we use our expertise to forecast and estimate the market size in order to generate comprehensive data sets. Our analyst team adopt a robust research technique in order to produce the estimates:

• Applying demographic along with psychographic segmentation for market evaluation
• Determining the Micro and Macro-economic indicators for each region 
• Examining the industry indicators prevailing in the market. 

Data Synthesis: This stage involves the analysis & mapping of all the information obtained from the previous step. It also involves in scrutinizing the data for any discrepancy observed while data gathering related to the market. The data is collected with consideration to the heterogeneity of sources. Robust scientific techniques are in place for synthesizing disparate data sets and provide the essential contextual information that can orient market strategies. The Brainy Insights has extensive experience in data synthesis where the data passes through various stages:

• Data Screening: Data screening is the process of scrutinising data/information collected from primary research for errors and amending those collected data before data integration method. The screening involves in examining raw data, identifying errors and dealing with missing data. The purpose of the data screening is to ensure data is correctly entered or not. The Brainy Insights employs objective and systematic data screening grades involving repeated cycles of quality checks, screening and suspect analysis.
• Data Integration: Integrating multiple data streams is necessary to produce research studies that provide in-depth picture to the clients. These data streams come from multiple research studies and our in house database. After screening of the data, our analysts conduct creative integration of data sets, optimizing connections between integrated surveys and syndicated data sources. There are mainly 2 research approaches that we follow in order to integrate our data; top down approach and bottom up approach.

Market Deduction & Formulation: The final stage comprises of assigning data points at appropriate market spaces so as to deduce feasible conclusions. Analyst perspective & subject matter expert based holistic form of market sizing coupled with industry analysis also plays a crucial role in this stage.

This stage involves in finalization of the market size and numbers that we have collected from data integration step. With data interpolation, it is made sure that there is no gap in the market data. Successful trend analysis is done by our analysts using extrapolation techniques, which provide the best possible forecasts for the market.

Data Validation & Market Feedback: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helps us finalize data-points to be used for final calculations.

The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. The data validation interview and discussion panels are typically composed of the most experienced industry members. The participants include, however, are not limited to:

• CXOs and VPs of leading companies’ specific to sector
• Purchasing managers, technical personnel, end-users
• Key opinion leaders such as investment bankers, and industry consultants

Moreover, we always validate our data and findings through primary respondents from all the major regions we are working on.

Choose License Type

Flexible purchase options.

• Chapters of your choice
• Quantitative Information for Historical & Forecasted Data
• Regional/Country Level Reports

Get in touch with us

Our clients.

Why choose us

Proactive We manage our resources 24/7 to identify issues and address them before they become problems

Quality & Reliability We are committed to providing reliable and highly accurate data with an excellent quality control system

Global Outreach 6 Major regions and 40+ countries level analysis accomplished

Competitive Pricing Our pricing strategy is highly competitive in the market, without compensating on the quality and the timeline of project delivery

Some Facts About The Brainy Insights

Free Customization

Fortune 500 Clients

Free Yearly Update On Purchase Of Multi/Corporate License

Companies Served Till Date

5 Mega Challenges Facing the Global Travel and Tourism Industry

The global travel and tourism industry sits smack in the eye of a perfect storm. On the one hand, demand is up. Planes are packed. Our wanderlust is lustier than ever. On the other hand, rising inflation, lagging infrastructure, geopolitical uncertainty, staffing shortages, and COVID’s lingering impact have all converged into the stuff of nightmares — for travelers and the travel industry alike.

As researchers and advisors to global tourism boards and brands across the travel and tourism ecosystem, we are seeing some of these challenges hit certain players harder than others. On the bright side, recovery is on the horizon. But some geographies and industry sectors will face steeper challenges as five major headwinds converge upon them. We’re seeing opportunities for brands to get ahead of the storm and put the wind at their back.

These are the top five challenges facing the travel and tourism industry today, along with our perspective on navigating the way forward.

Travel Insight #1: Inflation means trade-offs and discretionary travel may lose out

Just when tourism was on the rebound, rising inflation came nipping at the heels of a travel boom. Escalent’s forthcoming 2022 Holiday Shopping & Travel Study revealed only 42% of consumers feel confident they’ll achieve their 2022 holiday travel plans (down 24 percentage points from 2021), and 49% of consumers are uncertain their holiday plans will be achieved (up 23 percentage points from 2021).

For the travel and tourism industry, inflation is a huge concern since it drives up product prices and affects consumers’ willingness to spend on discretionary travel. According to Euromonitor, 63% of travel executives said inflation was having a moderate to extensive impact on their businesses. Subsequently, over half of global travel companies acted in kind, by raising all or some of their prices. This was even higher in the Americas, where 59% of the companies raised all or some of their prices. Meanwhile, 44% of businesses accepted that they would suffer from having a lower profit margin by absorbing the inflationary costs rather than passing them on to their consumers to limit impact on their travel plans.

During inflationary times, it is common to see brands cut back on their marketing and advertising spend. While this reduces costs short term, it can be a setback to building long-term brand trust. In times of uncertainty, consumers tend to gravitate towards certainty, something a trusted brand can confer. And a destination is a brand. The more trust you can build amid uncertainty, the better.

Travel Insight #2: The ripple effects of geopolitical disruption

Geopolitical instability is also a key concern for the travel and tourism industry. The outlook for global travel and tourism for inbound spending is expected to be at 45% of 2019 levels, according to Euromonitor’s travel forecast model. The war in Ukraine is estimated to have caused a $7 billion decline in global inbound tourism, while Russian outbound tourism has all but collapsed under economic sanctions, airspace closures and flight bans. The loss of big-spending Russian visitors will impact travel destinations globally, but especially in Europe, the Caribbean and Turkey.

What happens when your high-value source market can’t travel? The ripple effects of geopolitical disruption are felt across regional clusters, forcing travel and tourism entities to rethink their source markets and reset their tourism marketing and targeting strategy.

Travel Insight #3: The travel and tourism infrastructure is in trouble

The pent-up travel demand is causing additional strain on the existing infrastructure, particularly for the airline sector. Problems with safety protocols and compliance with new national and international health standards are predicted to be made worse by capacity constraints when the industry recovers. This is expected to result in (even) longer lines, (more) crowded terminals and operational bottlenecks.

Social distancing measures have been lifted in many countries, including the US. But measures are still in place in many airports around the world, thus reducing airport capacity. Airports that operated close to their saturation capacity before the COVID crisis can expect to reach their maximum saturation capacity at just 60%–75% of their pre-COVID peaks.

According to ACI World, as air transport demand recovers, passenger demand will put more pressure on existing airport infrastructures. This may have socio-economic consequences, if not addressed in time. If long-term capacity constraints are not addressed through capital investments, it is estimated to lead to a reduction of up to 5.1 billion passengers globally, by 2040. For every million passengers that airports cannot accommodate due to airport capacity constraints in 2040, there would be 10,500 fewer jobs and 346 million USD less in GDP contribution from the industry.

Airports are often the “first impression” of a destination. A traveler’s airport experience sets the stage for the rest of the journey. When greeted with chaos and delays, even the most intrepid traveler can sour on the experience. Recently the US has made modest steps towards infrastructure improvement, including the Infrastructure Investment Act passed in November 2021, which includes spending for airports. While its impact will not be immediately felt, many travel associations have applauded the passing of this long overdue legislation.

Travel Insight #4: There’s no quick fix for the staffing shortage

If you’ve stepped foot in an airport this summer, you already know. The travel industry is facing a severe staffing challenge, particularly for customer-facing roles at hotels and airlines. Industry CEOs acknowledge that they are struggling to add staff to meet demand.

Airlines, in particular, are struggling to fill staffing requirements. Boeing’s 2021 Pilot and Technician Outlook voices concern that many airline workers who were furloughed during COVID may have left the industry permanently. The commercial airline industry needs 612,000 new pilots, 626,000 new maintenance technicians and 886,000 new cabin crew members over the next 20 years. Hotels and hospitality are also struggling, making it harder to deliver on guests’ expectations. Many hotels are shifting housekeeping services to a by-request-only model and some are cutting back on food and beverage amenities, including room service and restaurants.

What’s the precautionary tale to take away from this staffing mess? It can take decades to build brand trust, and one canceled flight, one bad stay, to destroy it. How people experience your brand — no matter if it’s in the best of times or the worst of times — stays with them. Travelers expect consistency from major brands. It will take time and investment for many airline and hospitality brands to rebuild trust in the quality and consistency of their brand experience.

Travel Insight #5: COVID is with us for the long haul

COVID travel restrictions are still impacting many elements of world tourism, with countries like China continuing to impose stringent restrictions and quarantines on visitors as well as Chinese outbound travelers.

In Asia Pacific, 83% of travel businesses report that ongoing COVID restrictions continue to have a moderate to extensive impact. This compares with 59% in Western Europe, according to Euromonitor. Although less, compared to 2021 levels, COVID concerns among travelers persist. Ongoing concerns, including new variants, affect the travel decisions of 55% of travelers, according to another recent study. Travelers are planning their trips cautiously, and nearly 70% are avoiding certain destinations, with 56% preferring close destinations and 56% avoiding crowded places.

Just as sanctions have grounded Russian travelers, COVID restrictions are keeping Chinese travelers homebound. Popular destinations for Chinese tourists such as Japan, Thailand, Singapore and Australia continue losing out on billions in tourism revenue. And countries with strict quarantine requirements like Japan continue to struggle. Between June 10 and July 10 this year, Japan hosted only 1,500 international tourists, according to data from Japan’s Immigration Services Agency. That’s down 95% from the same period in 2019. Who wants to spend half their holiday in quarantine? Destinations like Japan have focused on promoting domestic travel, but with COVID with us for the long haul, doubling down on domestic travel marketing and promotions is not a sustainable strategy.

Turn disruption into opportunity with tourism industry research and consulting

Escalent specializes in travel and tourism market research, traveler behavior, tourism investment strategy and consultative support across the travel and tourism ecosystem. Learn more about our Travel & Tourism practice and let us help you ride out the storm and go forth with confidence.

SOURCES CITED

(forthcoming) Escalent 2022 Holiday Shopping and Travel Study Please contact us if you would like to be notified when the report is available. View press release .

Voice of the Industry: Travel Survey, Facing New Challenges, Euromonitor, May 2022

Travel: Quarterly Statement Q1 2022, Euromonitor, May 2022

Holiday Barometer among Europeans, North Americans, Asians & Oceanians, Ipsos, June 2022

Japan is open to travel. So why aren’t tourists coming back? CNN, July 31, 2022

Deloitte travel outlook, The winding path to recovery 2022

Half of US Hospitality Workers Won’t Return in Job Crunch, Bloomberg, July 2021

Staff Shortages: World Travel & Tourism Council Travel Survey, May 2022

Related Industry: Travel & Tourism

Related Solution: Brand Positioning , Customer Experience Management , Market Assessment

Related Expertise: Secondary Research

Vivek leads Escalent’s Travel & Tourism practice where he works with tourism boards, airlines, hotels and hospitality brands across the globe, including in China, Africa, Southeast Asia, and the Middle East. A featured thought leader at global travel and tourism forums such as ITB, TTRA, and PCMA, his expertise spans the Travel & Tourism value chain. Vivek is an experienced business executive with expertise in various business elements including operations, business development and P&L management. A seasoned insights leader, he advises clients on market assessment  and entry strategy, market sizing and growth strategies. An engineer by training, he holds an MBA in Strategy & Marketing from the Indian Institute of Management. Vivek has a keen interest in human psychology and believes that a transparent, win-all proposition is the key to creating a sustainable people-centric business.

Subscribe to Our Newsletter

Keep me informed. I’d like to receive occasional newsletters, event notifications, and thought leadership materials.

17430 College Parkway Livonia, MI 48152

P: +1 734 542 7600

• Escalent on LinkedIn
• Escalent on Twitter
• Escalent on Facebook
• Escalent on YouTube

©2024 Escalent and/or its affiliates. All rights reserved. Reg. U.S. Pat. & TM Off

Informative Website For Everyone

Who are the role players in the tourism industry?

Table of Contents

• 1 Who are the role players in the tourism industry?
• 2 What is the role of tourists in the tourism industry?
• 3 What are the different tourism products?
• 4 What is the role of Tourism Australia in Australia?
• 5 How are tourists used in the travel industry?

Some role players are directly involved with tourism, such as the tour operator, tourist guide, airlines, accommodation providers etc. Other role players are indirectly involved with tourism, such as banks, retail shops, petrol stations etc.

What is the role of tourists in the tourism industry?

Tourism is vital for the success of many economies around the world. There are several benefits of tourism on host destinations. Tourism boosts the revenue of the economy, creates thousands of jobs, develops the infrastructures of a country, and plants a sense of cultural exchange between foreigners and citizens.

Why are people involved in tourism?

Community participation in tourism helps to uphold the local culture, tradition and indigenous knowledge of the local people. It also helps in conservation of the environment and culture of the local community.

What are the 5 key players in the tourism industry?

Key Players in the Global Tourism Industry They include private and non-profit sector services, public sector services, suppliers (transportation, accommodations, food and beverage services, attractions, and events and conferences), intermediaries, and the customers (tourists/travellers) themselves.

What are the different tourism products?

Types of Tourism Products

• Accommodations; For example, Taj, ITC Hotels.
• Transportation; For example, Owning taxis, luxury buses, and boats.
• Retail Travel Agents.
• Tour Operators.
• Shopping Centers such as malls.
• Cinema Theatres such as PVR.
• Restaurants for Food and Beverages.
• Tourism Information Centers.

What is the role of Tourism Australia in Australia?

How is tourism an activity of the movement of people?

What is the role of the government in tourism?

How are tourists used in the travel industry?

Privacy Overview

• Set a threshold that meets accuracy targets and limits negative speed and cost impacts—and work iteratively towards that goal.
• Prioritize use cases for GenAI product development by looking at value potential, organizational readiness, and level of complexity.
• To ensure optimal operation of a GenAI solution over time, develop the various components early on, focusing on interoperability and adaptability.
• Improve data readiness by creating metadata, preprocessing unstructured data, and storing data in GenAI ingestion-ready formats.
• Mitigate risk by working with providers who have full rights to GenAI model training data; establishing process checks, such as IP risk reviews and user agreements; and monitoring progress early and often.

Subscribe to receive the latest insights on Technology, Media, and Telecommunications.

Media & Entertainment Consulting

/ article, secrets to scaling genai in information services.

By  Suchi Srinivasan ,  Ernesto Pagano ,  Christopher Collins ,  Giorgo Paizanis , and  Anna Schickele

Key Takeaways

For traditional information services providers, generative AI (GenAI) represents an unprecedented opportunity to drive sustainable advantage. By scaling solutions that leverage their vast data and content assets, companies can help their customers harness the power of GenAI while generating new revenue for themselves. Leading players across financial information, credit, publishing, and other info services are already beginning to see the benefit of GenAI at scale.

But for the vast majority of companies, realizing the full potential of GenAI has proved challenging. According to a recent BCG cross-industry survey , 66% of leaders are ambivalent or dissatisfied with their progress on AI and GenAI. This has also been the case with information service providers, many of whom have created proofs of concept only to find that developing a customer-facing product is more costly and resource-intensive than anticipated. Issues pertaining to accuracy of GenAI output, organizational capability and capacity, systems integration, and data preparation are among those standing in the way of successful scaling.

Providers that address these challenges and scale GenAI successfully will have access to a rapidly growing market. According to BCG analysis, the current market opportunity for GenAI financial services information products alone is around $5 billion to $6 billion and is projected to grow to $15 billion by 2026.

The Promise of GenAI at Scale

To date, GenAI has gained wide use as a way for companies to enhance internal productivity, and some are already using it to drive end-to-end transformation. But for companies that provide information products—such as financial, business, and sustainability data—GenAI can be a tool to enhance the productivity of end-customers. This new revenue stream can help to justify early investments into the nascent technology.

While most traditional info service providers understand the value of this opportunity, few have managed to scale GenAI successfully. To learn why, in early 2024 we surveyed 100 professionals from providers who had experience scaling GenAI solutions. (See “About the Survey.”)

More than half of the survey respondents said that building GenAI products has been more time-intensive and costly than anticipated. Four challenges were cited most frequently: accuracy requirements, organizational capability or capacity, systems integration, and data preparation and management. (See Exhibit 1.)

About the Survey

In early 2024, BCG conducted a survey of 100 tech, data, and IT professionals from global information services providers across financial information; credit, risk, and compliance; business information; and other verticals. Of these respondents, 66 were considered experienced: they have started to or have successfully scaled a GenAI solution. The remaining 34 are considered inexperienced because they have conducted proofs of concept or pilots but have not yet attempted to scale a solution.

Overcoming Critical Scaling Barriers

Through our work with clients, we have gleaned various ways to address the top four obstacles to successfully scaling GenAI.

Secret #1: To meet accuracy requirements, set an accuracy threshold and work iteratively towards that goal.

Accuracy requirements for GenAI output were the most frequently cited barrier to scaling up solutions. Yet while there are many ways to make an off-the-shelf GenAI model more accurate, determining which techniques to implement is not straightforward.

A key issue is that accuracy improvements often come at the expense of latency and cost. Complicating matters, changes to any part of the solution may have ripple effects elsewhere. Sometimes these effects can be positive—for instance, simply injecting the word “please” in a prompt can significantly improve the accuracy of model output. But often a change, such as adding an extra space, can reduce accuracy. And since GenAI solutions can provide different results each time, the outcome of any changes, large or small, can be difficult to predict.

Given these constraints, setting a clear accuracy threshold is a critical first step for avoiding overinvestments of time and resources. For a case where GenAI will be used to help with report writing, 80% accuracy (as good as a typical human writer) is likely good enough. This type of solution may be achievable with a lower-cost model (such as Chat GPT-3.5 instead of GPT-4). But for use cases where near 100% accuracy is required—such as contract review or credit scoring—predictive or deterministic AI models may need to be used alongside GenAI, at least for now.

Once the threshold has been determined, the next step is to apply techniques that may help meet this goal. We recommend starting with the simplest techniques, such as prompt engineering and context injection, even though many developers are not familiar with them. (See Exhibit 2.) If these techniques do not achieve the threshold, organizations should consider approaches that are more complicated and expensive, such as fine-tuning or training a new model. A “human in the loop” process to review output can also boost accuracy.

The key here is iteration, finding the right combination of changes to magnify the power of the entire solution and hit the accuracy threshold while limiting negative impacts to speed and budgets.

Secret #2: To manage organizational capability and capacity, prioritize use cases carefully.

Few organizations have the capability or capacity to develop every GenAI product they’d like to build. According to BCG’s recent cross-sector, C-suite survey, 62% of the executives who expressed dissatisfaction with their organization’s progress on AI and GenAI cited a shortage of talent and skills.

To make the most of the GenAI opportunity, therefore, it’s important for companies to determine which use cases to focus on. Resource requirements should be driven by three considerations that focus on value, readiness, and complexity. To scale a GenAI product successfully, companies should be able to answer “yes” to the following questions:

• Value potential: Are the benefits of this solution enough to drive significant usage and adoption?
• Organizational readiness: Is our team ready, willing, and able to build this solution? Does the team have leadership support?
• Complexity of the approach: Is the proposed approach something we can achieve and maintain?

Companies must fight the urge to prioritize based on only one or two of these dimensions. Focus only on value potential, and a company may take on more than it is ready for in terms of technical complexity. Focus only on organizational readiness, and a company may build products that don’t have strong enough market demand. A company that focuses only on complexity may conceptualize solutions that are valuable and feasible but could lack the necessary leadership support to execute.

Best-in-class companies use a balanced scorecard across these dimensions to focus their energy and resources in the right places. Once companies have a few early successes, they are usually able to scale the skills and capabilities they have built within their organization—and build increasingly sophisticated solutions as well.

For example, a financial information services provider built a retrieval-augmented generation (RAG) solution to help answer free-text questions about company financial performance. It took the company nine months to build this product, and only half that time to build subsequent solutions that leveraged a similar approach.

Secret #3: To optimize systems integration, aim for interoperability and adaptability.

It’s easy to lose sight of the fact that a GenAI solution requires many components besides the GenAI model. The front end, data, enterprise core systems, infrastructure, and security all must be developed to operate optimally, both now and in the future. Companies should start developing these other components early on, focusing on two main considerations.

Interoperability. To support high-quality, secure data sharing, the components of a particular GenAI solution need to be interoperable with the organization’s existing tech stack and with its other GenAI products. This helps ensure that different solutions can “talk” to each other, enabling cohesive workflows.

Adaptability. Given the fast pace of today’s tech cycles, it’s critical to ensure that the solution components can be updated cost-effectively at scale. Companies, therefore, should build components with standardized APIs and services that can be easily swapped out for upgrades when they become available. A standard solution reference architecture can then be used to guide the conformance to enterprise architecture principles and standards.

Often, companies will need to make substantive changes to a solution. For instance, when using an off-the-shelf model, it may be necessary to “remodel” or switch to a newer version of a foundation model when it comes available. That’s what many users of Chat GPT-3.5 did when GPT-4 came out. In other cases, companies may need to rebuild their solution completely, such as when new technology or techniques emerge or a strategic shift necessitates a different approach (e.g., moving from a RAG solution to a fine-tuned model). Although these changes go beyond what we would typically consider “application maintenance,” companies should treat them as part of the ongoing maintenance cycle for GenAI products.

Secret #4: To ensure robust data preparation and management, master these new techniques and mitigate new risks.

To build GenAI products that meaningfully leverage a company’s data assets, organizations need data readiness. Any data, whether structured or unstructured, needs to be clean, machine readable, and protected from risks of exposure. This means deploying preparation and management techniques specific to GenAI solutions.

Our survey of information services providers demonstrated that data readiness increases with scaling experience: two-thirds of the respondents who are experienced in scaling GenAI products report high data readiness. By contrast, only one-third of the participants who lack scaling experience said they are data-ready. (See Exhibit 3.)

Organizations can take the following steps to improve their data preparation and management:

Prepare the data with new techniques. Three techniques—creating metadata, preprocessing unstructured data, and storing data in GenAI ingestion-ready formats, such as vector databases— are all crucial because they help ensure that the GenAI model can interpret the data correctly. Experienced companies are more comfortable with these steps; training can help inexperienced teams get up to speed.

Mitigating new risks. While info services providers have long been careful to protect their IP and data, GenAI products introduce new pathways for exposure. IP concerns include inadvertently deploying models trained on unlicensed proprietary data or selecting a vendor that retains proprietary company data to train their models, among others. Data exposure concerns include potential release of the information services provider’s own data or the customer’s data.

The methods that info services providers use for mitigating IP and data exposure risk are clearly related to their scaling experience. Some 74% of novice organizations restrict the data that can be used in GenAI solutions. While this approach reduces risk, it also curtails product development and limits product depth.

By contrast, experienced organizations deploy mitigation practices that avoid making this tradeoff. These companies pay close attention to vendor selection, for example, by working only with providers who can demonstrate that they have full rights to the data used to train their models. Moreover, they make careful design choices, such as building all or parts of the solution within the company’s own domain so that proprietary data is never sent to a third party. These companies also establish process checks, such as IP risk reviews and user agreements, and they monitor progress early and often to catch any issues that may arise. Such guardrails allow product development to move forward while mitigating the risks associated with using IP and data in GenAI solutions.

A gap is already opening between the information services providers that started early with GenAI and are gaining critical scaling experience—and those who are waiting on the sidelines. Now is the time for companies to get their GenAI products to market and create a competitive advantage that in due course will become unassailable.

The advent of GenAI has given incumbent information services providers the opportunity to leverage their vast data and content assets like never before. By addressing the challenges of accuracy, capability, systems integration, and data preparation, companies can scale their products with confidence and realize the promise of this remarkable innovation.

Acknowledgments

We wish to thank Krishnan Ramachandran, Daniele Pariente, John Hajjar, and Lauren Hawkins for their contributions to this article.

Managing Director & Partner

Managing Director & Partner, Global Sector Leader, Media

BCG X – Manhattan Beach

Project Leader

ABOUT BOSTON CONSULTING GROUP

Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

© Boston Consulting Group 2024. All rights reserved.

For information or permission to reprint, please contact BCG at [email protected] . To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcg.com . Follow Boston Consulting Group on Facebook and X (formerly Twitter) .