Euromonitor's recent research on the global travel industry shows a sector moving from "rock bottom to rebound."
Tourism spending fell by 75 percent in 2020. Travel was one of the first sectors to close and one of the last to reopen and it is still restricted in many destinations around the world.
The vaccines have made opening up easier and taken some of the fear away from traveling either for leisure or business. Now, research from Euromonitor suggests that much of the industry took the time out during the pandemic to rethink and rewire for a new age of travel.
The latest white paper "Travel Rewired: Innovation Strategies for a Resilient Recovery" found that the stress experienced during the pandemic has led businesses to creative innovations, adapting and transforming their operations, products and service.
The report identified four "Innovation Pillars" for a rewired travel industry, including Digital, Sustainable, Safe and People-centric.
Following these pillars provides a chance for an industry reset, Euromonitor notes. However, despite pent-up demand, global tourism isn't expected to surpass 2019 levels for several years.
In the Americas, inbound tourism spending is forecast to return to pre-crisis levels by 2024, with domestic expenditure leading the recovery in the short term. However, with the climate emergency, technological shifts and the effects of the pandemic, the industry is facing immense challenges where business actions and consumer demands are mismatched.
Companies are using this period of slow growth to transform how they approach the travel industry, making strides technologically as well as on sustainability and health factors.
According to Euromonitor's research, 60 percent of travel brands are committed to integrating artificial intelligence to enable better user experience and search along with customer service queries. Thirty-nine percent of travel businesses are integrating new technologies this year.
In the Americas, like in other regions, domestic tourism is leading the recovery in the short term. Euromonitor cited IATA (International Air Transport Association) data, noting that domestic air passenger traffic was almost back to 2019 levels in August 2021.
In comparison to Europe, Euromonitor noted that the lack of a national health database pushed vaccine passports to the private sector with companies such as IATA Travel Pass and CommonPass the go-to technology.
The U.S. hotel industry has also focused greatly on innovative technology to promote health and safety. Euromonitor pointed to Yotel's ultra-violet robot (named Vi-Yo-Let) in Boston, and Marriott and Hilton's reliance on g branded air quality solutions such as PureRoom.
America is taking a people-centric approach to its recovery. Euromonitor research showed that 63 percent of respondents said improving the customer experience is a priority. Nearly 54 percent want to become more person-centric. A lot of desire revolves around upgrading the mobile experience.
However, while there is a desire to offer mobile services, Euromonitor highlighted there is a disconnect. Nearly 67 percent rate mobile check-in as being important for their customers, but just 30.5 percent offer a mobile app to their consumers.
There are companies making great strides in these areas, and in the areas of diversity and inclusion. Euromonitor highlighted two companies making inroads in the digital space: Wheel the World and Sisterwave for Safe Travel.
Wheel the World is an accessible travel booking platform that enables people with disabilities to experience the world
just like anyone else. The brand sells accommodation, tours and activities, working with partners to ensure that
consumers' unique needs are met through personalized customer care.
Sisterwave is akin to an "Airbnb for women." It targets cis- and transgender women and provides a community that fosters safe solo travel. It boosts inclusion, equality, co-existence, and connection.
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