The Powerful Growth Engines of Travel and Hospitality Industry 2018-19
A strengthening global economy is the solid reason behind any industry growth. The travel and hospitality industry is no exception! In the wake of strong proliferating culture of online travel booking apps and other technology platforms, and changing consumer’s interest from products to experiences has made the sleeping giant truly awakened.
The US travel market is among the leading beneficiaries of a swelling global traveler pool.
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Clearly seen, from 2018 onwards the travel sector will inevitably see a spike in its growth. Established travel industry players should stay alert and attract the coming waves of hopeful travelers and tourists in order to convert the prospects.
Here are the powerful growth engines in the travel and hospitality industry that are set to dwell in and fuel the growth of travel.
Factors that will drive success of Travel industry: The Growth Engines
Healthy Economic Indicators of Consumer Spending
Hotel, airlines and other travel segments are vulnerable to the ebbs and flows of the economic trends. Recessions and upsurge plays a vital role in consumer spending in their travel budget. In beginning of 2017 where we’ve witnessed global tailwinds, which eventually affected the travel industry whole year is seemed to bottomed out as 2018 set in.
If we talk about the economic fundamentals of 2018-19, this promising year is expected to show green signs of strong economy as average hourly earnings are continually accelerating. Henceforth, projecting rise in consumer spending resulting in fueled travel demand in 2018-19.
1. Intense airline competition
Intense airline competition from low cost carriers as well as international flights, along with low fuel prices, will drive down the airline fares in 2018, resulting to entice travelers and a spike in travel spending that includes—airlines, hotels and restaurants.
2. Active Corporate Travel Demand
The building strength in economy has driven the growth of business activities. 2018 is forecasted to be a robust year for corporate travel spending. Pending global uncertainties, corporate travel is expected to surge 6.1 percent, its highest rate of growth since 2011, as per a Deloitte report.
3. Spending shift from products to experiences
There is a fundamental shift in consumer values towards experiences over things. Experiences are overtaking things or product. New figures show we are continuing to spend less money on buying clothing, cars, groceries or other different stuff instead spending more upon on experiences like travel, recreational activities, eating out.
While positive signs continue to escalate, it’s a good chance for travel and hospitality traders to encash the opportunity and step forward for advanced technologies that further support their back and help them achieve the coveted heights in their business.
Codiant develops unsurpassable and value-driven travel app and web development solutions for travel and hospitality industry that are poised to grow year by year.