Over the past 20 years, and specifically in the last year or so, millennials have been the most influential force in altering the way we travel, from pioneering the sharing economy to redefining hostels with high-design ideals and carving out a location-independent work-life.
The travel landscape is changing rapidly, and it is nearly hard to forecast, and young, energetic actors are transforming it. But before we understand tourism trends in 2023, let's take a step back and see how the travel industry has reeled from the pandemic, where it stands today, and what this year has in store.
How has the Travel Industry Been Affected for the Past 2 Years?
Before the pandemic, the tourism industry had expanded virtually without interruption. According to Statista data, the global population annually spent billions on hotels, cruises, vacation rentals, and package vacations until the industry reached a value of $776.4 billion in 2019.
Then, in 2020, the epidemic struck, putting an abrupt end to travel around the world, and bringing the tourism industry to its knees. As a result, the sector's revenue fell significantly. After that, however, it started to creep slowly in 2021, and it has been regaining pre-covid levels.
The UNWTO World Tourism Barometer revealed that, during the first seven months of 2022, international tourist arrivals nearly tripled over the same period in 2021, reaching 57 percent of pre-pandemic levels.
Moreover, experts suggest that hotels will hit 1.1 billion guests globally in 2023, up from 969 million in 2022 and that almost every travel and tourism sector is poised to witness substantial growth in the upcoming years.
Upcoming Travel Trends in 2023
How people live, work, and travel has all drastically changed as the world begins to recover from the deadly battle against the pandemic. This idea is reflected in emerging tourism trends which show that travelers' requirements are drastically altering. Here are the most popular millennial travel trends for 2023.
#1. Millennials aren't shying away from spending more
Like Gen Z, Millennials place massive importance on experiences and remain open-minded to new opportunities and activities for which they are willing to splurge on travel.
According to the report, 42% of millennials are willing to spend INR 2-5 lakhs on their holiday, while 33% are willing to spend INR 5-10 lakhs. Approximately 31% of millennials prefer to book luxury properties, while 27% choose budget properties, and 26% prefer boutique properties.
Thus spending money to have an active holiday and outdoor experiences is an emerging trend in tourism.
#2. People are highly influenced by TV when picking their vacation destination
If you found yourself planning a vacation to Paris while watching "Emily in Paris," you're not alone. As per Expedia's travel trends in 2023, two-thirds of worldwide travelers have pondered, and 39% have booked trips to countries after seeing them on streaming shows or movies. New Zealand is the most popular destination, followed by the United Kingdom, Paris, New York, and Hawaii.
The increasing popularity of streaming services such as Netflix and Amazon Prime Video has been associated with this new trend in tourism. These sites make it easier for people to stream international TV series and movies.
#3. Taking a workcation to increase the productivity
Over 37% of global travelers have considered taking a workcation, which entails taking your laptop to a dreamy destination while earning money. This allows individuals to think in new ways, see things from fresh perspectives, and generally improve the quality of their production.
Remote work wasn't an option for most young people before the pandemic. Traveling was limited to their work-approved vacation days, public holidays, and gap years. However, since most workers in the world conduct business from their bedroom desks, working remotely from a beach or ski resort doesn't seem strange anymore.
#4. Focus on inner peace and digital detox
After a pandemic that boosted reliance on technology—from online courses to Zoom meetings—screen fatigue has become a constant problem.
As per Booking.com's annual travel predictions for 2023, 64% of Indian tourists seek "off-grid" vacations, utilizing travel as an opportunity to pick up survival skills or even get ready for an apocalypse.
Furthermore, millennials are looking for nostalgic getaways and a desire to disappear into the romance of a pre-digital era.
Bonus tourism trend: Millennials are moving towards sustainable travel and considering climate change while making travel decisions. They're looking at trains as the best way to travel to far-off places.
The bottom line
Besides the aforementioned tourism trends, millennials have a growing enthusiasm for exploring uncharted territory and opting for more sustainable travel to ecotourism destinations.
Thus, if you plan to hop on these tourism trends but are putting off your plans due to financial constraints, turn to Tata Capital. We offer travel loans at affordable interest rates and without any collateral as well as minimum documentation.
Take advantage of these tourism trends and plan the best vacation.
01 February 2023
4 mins read
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