CHAPTER EIGHT

The Future of Tourism Industry

Tourism is a dynamic and varied activity, where both the industry and the public have proven
extremely adaptable to new situations. As the world changes, so will the travel and tourism.
Technological, political and social changes will make travel market of today different from that
of the 1990‟s.

Every year travel trends come and go; however, 2021 is set to be one of tourism‟s most
significant years to date. As the world slowly recovers from COVID-19 and borders gradually
start to open, we expect travel to look a little different than it did pre-pandemic.

The new consumer of tourism is becoming knowledgeable and discerning, and seeking quality
and participation. The increasing knowledge and sophistication of new tourists can now be
catered by a tourism industry which is firmly embracing the marketing concept, facilitated by
technological developments such as computer reservation system (CRS), data base marketing
and internet.

The trend of future tourism is clearly away from mass passive tourism and towards more tailor-
made, individual consumption of active tourism.

8.1. EMERGING TRENDS IN TOURISM

A. Travel for different purposes will continue to increase in the years ahead. Some of the
purposes are:

 Leisure travel- due to an increase in discretionary income and time, higher educational
level, the desire for nonmaterial experience, more travel promotion and the creation of
new travel products, travel and tourism will increase.

 VFR’s-the members of today‟s families are likely to be scattered in many part of the
world. Most people have friends who have moved to different areas, so, VFR tourism
will be one of the main reasons to travel.
  Business and professional travel-business travel will continue to grow as domestic
and international businesses continue to expand. Offices, plant locations and sources of
supply are being decentralized and internationalized. Professional travel will increase,
too, as people recognize the need to communicate more with others in their profession
and to keep their skills and knowledge up-to-date. The travel and tourism will develop
new marketing techniques to meet the needs of professional travelers.

B. Increased Recognition

Until recently, the travel industry was more or less ignored by the academic community,
government and other bodies. However, with the growing realization of the power of travel and
tourism to employ millions of people, to improve international relations and to help balance
foreign trade, the travel industry is gaining new respect. The different components of tourism are
also beginning to see their interrelationship and project themselves as a single industry.

 Academic community-schools are beginning to focus more on practical skills that

will have a direct application in the practical world.

 Government-governors around the world are recognizing the benefits of tourism

especially inbound tourism to their country‟s economy. To promote tourism and to say
that it is well planned, many countries have created tourism ministries. The
relationship between the government and the travel and tourism industry will be an
interesting area to occur in the coming years. Tourism policy will become an
important part of the nations‟ economic policy. Tourism will be even intertwined with
the economic health of nations that is nations will be less likely to engage in conflict if
it means risking economic benefits.

C. Continued Deregulation

Many years have been passed since the airline de-regulation act was enacted, but the effects of
de-regulation are being debated. Each time there is a midair collision or an airline goes bankrupt,
a certain segment of the population is crying out for re-regulation.
Three controversial areas about de-regulation

 The level of service and safety in airline industry: in an attempt to cut costs airlines
may be tempted to reduce service or take short cuts that compromise safety.

 The trend towards concentration: just a few large carriers could end up controlling
all the business.

 The inequitable spread of savings among travelers: airlines may be tempted to

charge higher fares on routes where they have less competition and use the profits to
subsidize discounted fares on intensely competitive routes.

But, in general, for the future airline de-regulation and privatization will continue.

D. Advanced Technology

Developments in technology take place every day, and many new developments –not yet
dreamed of-will occur in the future. Most of the technologies will be consumer centric. The
developments may make travel more pleasant, efficient and comfortable.

Transportation, hospitality industry, attractions and the channels of distributions are the main
areas that are bound to feel the impact of technology. Continuous development of transportation
may make travel time small and enable remote areas more accessible. As stated above the major
areas of technological advancements related to tourism are transportation, hospitality industry
(like hotels, art resorts and sporting) and marketing systems.

• Internet of things (IoT)

– Internet of things is relevant to many tourism trends. It is a microprocessor with a

form of digital connectivity, therefore allowing them to connect to and controlled
from the internet.

– The basic idea of IoT is to make the experience “smart”. That is allowing guests
to book spa sessions through the touch on their smartphone.

• Augmented Reality (AR)

 – Augmented reality means combining real world with the virtual world. In tourism
industry this can be very useful as an AR smartphone app can give information to
the tourists about the place they are going to explore

– Lalibela

E. Increased Education and Professionalism

The increasing competition and complexity of travel and tourism industry as well as the
sophisticated demand of tomorrow‟s traveler implies that travel and tourism employees will need
to be better educated. Education will also be important for adapting to an industry which is
constantly changing. To inspire the confidence of the public, the travel and tourism industry will
need to develop a more professional image among its employees.

As the world becomes small through advances in transportation and communication, travel
professionals will have an excellent opportunity to help people get to know their world. Students
of business of tourism will live in interesting manner.

Benefits of education and training in tourism:-

 For the industry as a whole (it adds value), and it raises the quality of personnel and
influences a sense of professionalism and ownership.

 It helps to define the industry and indicate the underlying similarities with other
sectors (transport, attractions, hospitality, accommodation…).

 To make stake holders better understand the industry and its relationships and then
begin to perceive business opportunities.

 Training, in particular, deliver skills and practical knowledge which boost

performance and productivity of personnel across the industry, and the linking of
education and training with man power planning allows a closer gearing of the
needs of the sector with the out puts of tourism schools.

 Education and training helps to retain staff, provide a carrier path for employees
and, over all, achieve better use of human resource in the tourism industry.
F. Changing Demographics

For travel and tourism industry, certain demographic changes are significant in planning and
promoting products and services.

 Age- generally travel for senior citizens is becoming large market segment because
they have the time and the money compared to other age groups.

 Work- changes in work place particularly in work schedules have a direct impact
on vacation and leisure travel. Decreasing in working hours, multi-task by
individuals, weekend vacations, changes in life style etc. have their own impact on
the tourism sector.

G. Political Trends

Great leaders in many fields have extolled (inscribed) that the social benefits to humanity results
from travel. Solon (Greece) - states that „we travel in order to see‟-to see is to increase
understanding and appreciation of other people, other culture and other land. Countries whose
leaders understand and encourage tourism are making an effort to improve the personal
relationship between their citizens and those of other countries.

 Tourism flourishes in a climate of peace and prosperity.

 Travel teaches tolerance.

 Stability increase tourist flows.

 Generally, it is believed that the world will be prosperous, rich and stable through
tourism.

H. Environmental Changes

It is only recently that the negative effects of tourism have been set against the most tangible
economic gains. This become all the most potent with the rise of environmentalism and green
consciousness in the mid to late of the 1980‟s.
Considering that tourism utilities; natural resources and its facilities occupy natural landscape,
any philosophy of tourism‟s future must consider environmental impacts. Today, there is a
strong trend towards increased environmental awareness and sensitivity i.e. the future of tourism
is expected to be more sustainable. Recently, green movement of tourism is on the track.

The use of different amount of gasoline or diesel fuel by different means of transportation,
wastes from hotels, motels, shops etc. must be evaluated carefully to recognize the ecological
and environmental effects. Good planning and follow up is needed for sound and efficient
tourism development. In addition, zoning and building code is important. Finally, any tourism
development should viable, desirable, economic and social force in any community.

Generally the future of tourism will be aimed at:-

Making a positive contribution to the global environment.

Accepting responsibility for the environmental consequences and minimizing any

adverse environmental impact.

Conducting all the activities in the spirit of being custodies of the environment.

Enabling guests and employees to experience the process of environmental care at

first hand, so that they will be encouraged to make contributions in their daily lives.

To show that sustainable tourism development is achievable.

World problems: - although the future of travel industry appears to be bright, certain conditions
and events may occur that would discourage or curtail travel and tourism.

 Overcrowding and pollution.

 Problem in the availability of oil.

 Political instability e.g. terrorism, hijacking and bombings.

 Fluctuating currency rates