Travel and Tourism in 2024

This industry offers various services to cater to travellers, including package holidays, hotel accommodations, food and beverage establishments, air transport, online booking platforms, adventure and leisure experiences, vacation rentals, and car rentals.

According to a market report on “Travel and Tourism” by Statista, revenue is estimated to reach US$916 bn by 2024 and is projected to grow annually at a rate of 3.99%, resulting in a market volume of US$1,114 bn by 2029.

With digital content on platforms like Facebook, Instagram, and TikTok and the ease of bookings, travel has gained a boost. In the upcoming years, due to the growing aging population around the world with more disposable income, there is an expectation of a sharp rise in travel in this segment. Solo tourism and family tourism also contribute to industry growth.

Statistics from official websites of various economies worldwide indicate an increasing trend in travel spending. According to a report by the World Economic Forum, Travel and Tourism Development Index 2024, Europe and Asia-Pacific and high-income economies continue to have the most favourable conditions for the travel and tourism sector. The highest-ranked economies for tourism are the United States, Spain, Japan, France, Australia, Germany, the United Kingdom, China, Italy, and Switzerland. The following countries have a significant share of their GDP in tourism:

• Robust market confidence is driven by the company’s strong market position
• The company has benefitted from advancements in technology and AI and the shift in consumer behavior towards digital solutions.
• Their initiatives to enhance user experience and expand globally have further solidified investor trust.
• The overall recovery in the sector post-pandemic has positively impacted credit spreads, signaling stability and growth potential.

A similar company, Expedia Group Inc., founded in 1996, has a low credit spread in August 2024, signaling investor confidence and stability for the company.

With rising disposable incomes in the decades to come boosting the propensity to travel in the Asia Pacific region, there is an expectation of huge growth in inbound and outbound tourism in the region.

The industry has still not fully recovered to pre-pandemic levels but is on the path of growth and expansion. As we can see from the growth of companies like Airbnb, Booking.com, and OYO, they introduced technology in the travel industry to ease the travel process for people around the world.

• Inflation has hit all major economies of the world, which is impacting the sector.
• Due to the introduction of virtual meetings, business travel has reduced, and it’s difficult to predict whether it will return to pre-pandemic levels.
• Geopolitical situations have also affected the industry. For example, the ongoing tension in Ukraine is affecting tourism in Europe, the region with one of the highest summer inflows.
• Local communities are protesting against mass tourism, such as the recent anti-tourism protest in Barcelona.

The tourism sector is responsible for 8% of world carbon emissions. With the world shifting towards sustainability, the industry is under pressure to rediscover travel as sustainable. According to the United Nations World Tourism Organization, sustainable tourism aims to create a balanced approach where the needs of tourists, host communities, and the environment are all considered, ensuring that tourism remains a positive force for the destinations and people involved. The challenge is to achieve net zero emissions with growth and profitability.

The results of the Travel and Tourism sector analysis are characterized by a mix of strong demand growth and overcoming challenges. Given the sector’s increasing economic contribution, it must take action to work towards sustainability, putting local communities at the center of development, increasing travel openness, and ensuring the responsible and safe adoption of technology.

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