Case study “Trends in European tourism”
Tourism is a living business with a lot of trend in different directions. Especially these days we have quiet a lot of changing elements because of the financial crises or ascending states (e.g. China). But there are also a lot of trends about the length of the tourism stays or in the point of when they take place. Like in other branches the tourism is related to a lot of different aspects.
Like in nearly every country the average of the habitants get older and they stay healthy when they are aged. But because of this growing amount the older people also have to work longer, otherwise they would have financial problems. But are those older people really that interesting? – No they’re not, because if we will look over a longer period of time we will find out that older people won’t spend more, because of their finances. The really interesting guests are the ones between 16 and 35 years, but there are also some changes in this target group, because those people have to work a lot and quiet hard nowadays, in addition most of them travel alone. In general we split them into two groups: time-rich and money-rich guest. Time-rich people have a lot of time to spend but not that much money, as a consequence they do longer trips, but probably a bit less luxurious than others. Money-rich guests are mostly younger people, whom have to work a lot and don’t have that much time for longer trip, this provokes that if they go on holidays they won’t leave for a long time, but they want to have all organized for their travel and everything to be on the highest standard.
But which country has the biggest potential of travelers in following years? –It’s definitely China, they are one of the most growing economies, but nowadays there are just 1% of these 200 millions habitants which can afford a trip to Europe.
Further trends in a short overview:
Whilst the global travel industry has steadily grown since 1995, the recent recession was a setback with global tourist arrivals down to 880 million in 2009 from 920 million in 2008.
• 2010 has seen a return to global growth, but Europe remains sluggish and there are lingering economic concerns.
• The global aviation industry mirrors these trends. Whilst it is forecast to return to profitability in 2010, its forecast annual net profit margin is only 0.5%. Questions over industry viability and the need for new revenue sources remain.
• Agents face the additional challenges of the demise of commission-based travel and increasing use of the internet in place of traditional F2F contact.
• Agents are likely to reinvent their role as bespoke travel advisors and as a trusted source of information.
• Macroeconomic modelling by Oxford Economics suggests that Asia will account for nearly 22% of global arrivals by 2020 (up from 18% in 2008). The region’s residents will account for 32% of travel spending by 2020 – up from 21% today.
(Economics & Amadeus, The Travel Gold Rush, 2011, S. 4; Economics & Amadeus, The Travel Gold Rush 2020, 2011)
Most of the people take the plane to travel from one country to another. But is it also a rentable business? Actually it’s not. The financial crise seems not to be the reason that people won’t spend that much money on their flights and change to low coast carriers. As a consequence the “normal” airlines have losses on their trips. They would like to raise the price level again, but because of those low coast carriers they can’t. But there are also other factors like growing petrol coast or higher safety rules.
In conclusion we can say that there are a lot of trends and changes going on in European tourism. But in general right now the tourism industry doesn’t have the best time, because of financial crises, which influence the income and also the mood of travelers. People start doing shorter trips instead of choosing longer vacation, because they don’t have that much time, but therefore they also spend more money on their trips.
(ETC), E. T. (2011). European Tourism in 2011 Trends & Prospect. Brüssel.
Economics, O., & Amadeus. (2011). The Travel Gold Rush.