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Tourism and hospitality are set to soar, powered by new travelers, destinations, and trends, says McKinsey report

Tourism faces disruption with shifting markets and demand for personalized, luxury experiences, emphasizing the importance of local travel and strategic adaptation according to McKinsey report.

Tourism and hospitality are on a journey of disruption. Shifting source markets and destinations, growing demand for experiential and luxury travel, and innovative business strategies are all combining to dramatically alter the industry landscape, reveals recent McKinsey report. Given this momentous change, it’s important for stakeholders to consider and strategize on four major themes:

  • The bulk of travel is close to home. Although international travel might draw headlines, stakeholders shouldn’t neglect the big opportunities in their backyards. Domestic travel still represents the bulk of travel spending, and intraregional tourism is on the rise.
  • Consumers increasingly prioritize travel – when it’s on their own terms. Interest in travel is booming, but travelers are no longer content with a one-size-fits-all experience. Individual personalization might not always be practical, but savvy industry players can use segmentation and hypothesis-driven testing to improve their value propositions. Those that fail to articulate
    target customer segments and adapt their offerings accordingly risk getting left behind.
  • The face of luxury travel is changing. Demand for luxury tourism and hospitality is expected to grow faster than any other travel segment today – particularly in Asia. It’s crucial to understand that luxury travelers don’t make up a monolith. Segmenting by age, nationality, and net worth can reveal varied and evolving preferences and behaviors.
  • As tourism grows, destinations will need to prepare to mitigate overcrowding. Destinations need to be ready to handle the large tourist flows of tomorrow. Now is the time for stakeholders to plan, develop, and invest in mitigation strategies. Equipped with accurate assessments of carrying capacities and enhanced abilities to gather and analyze data, destinations can improve
    their transportation and infrastructure, build tourism-ready workforces, and preserve their natural and cultural heritages.
McKinsey the-state-of-tourism-and-hospitality-2024
Co-Founder & Chief Editor - TravelDailyNews Media Network | Website | + Posts

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.