2023 began with very good news for the tourism sector, according to UNWTO forecasts. International arrivals are expected to recover to pre-pandemic levels, depending on the economic pace, the evolution of geopolitical issues such as the war in Ukraine and the recovery of tourism in Asia and the Pacific region.

However, destinations have a greater challenge to overcome: attracting those travelers who are increasingly intelligent when deciding their chosen destination and whom continue to seek good value for their money while searching for sustainable destinations and demanding new experiences.

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Let’s look at some of the most relevant insights and trends in 2023:

1. Stabilization in spending

Travellyze, ITG’s business intelligence platform, found in its latest report that about 50% of European travelers will allocate the same budget as in 2022 for their holidays, while between 8% and 12% (depending on the market) foresee that they will spend more than the previous year. As for the average budget of the travelers surveyed, 43% say they plan to allocate between 1,000 and 3,000 euros for their trips throughout the year.

2. Smart and sustainable consumption

By 2023, 8 out of 10 travellers recognise the importance of sustainable travel. Traveler’s new concerns include the measurement and offsetting of their travel’s carbon footprint (8.9% of European travellers according to Travellyze data), alternative ways of travelling, such as choosing rail travel over airplanes when possible (22%) or road trips in electric cars.

Destinations that include experiences or activities that support local communities have great potential, since consumers increasingly demand these types of initiatives that seek to generate sustainable development.

The same is true in the luxury segment, where about three-quarters of travelers are willing to pay more for more sustainable trips, according to a Virtuoso survey, or book eco-friendly accommodation over traditional, even if it costs a little more.

3. MICE is a key tool in organizational culture.

High employee turnover and attracting new talent is a major challenge for organizations today. The MICE industry, through its different types of events, are a fundamental tool in creating organizational branding and a positive organizational culture that contributes to improving employee engagement.

The tourism sector must respond to this trend that is gaining more traction where human talent and emotional well-being are key to the better development of society.

4. Luxury tourism grows

Exclusive tourism is postulated as one of the main drivers of spending for 2023. According to data from Travellyze, this year, luxury travel will be more popular than ever. Within this segment of travelers, travel budgets maintain exponential growth, with an 11% increase in luxury suite/villa bookings.

These hopeful trends show great progression and consolidation for the tourism sector, while implying a challenge for destinations and companies who must focus on developing new products, being cost-efficient and sustainable, as travelers are increasingly demanding and will continue to seek good value for their money, search for sustainability and demand new experiences.

 

Camila Correa

Travel Trade Executive