The world continues to experience recessions. It resulted in slowed down the expansion of several industries. Fortunately, some industries have been able to maintain constant revenue growth. In spite of the economy-depressing pandemic, some industries are doing well. Tourism and hospitality are one of them.
In 2020, the worldwide luxury travel market was valued at USD 1,794.4 billion, with a CAGR (compound annual growth rate) of 5.3 percent predicted during the forecast year. Over the last two decades, luxury tourism has steadily grown to become one of the world’s largest and fastest-growing economic sectors. The tourism business is increasing to meet the wants of more rich residents in various parts of the world. Luxury travel refers to the availability of a particular type of tourism, as well as the demand for it. Europe was the largest market in 2019 and will be the fastest expanding region by 2028, with a CAGR of over 6%.
The travel business is expanding as the global population’s average income rises and new consumers’ eager for fresh experiences emerge in diverse parts of the globe. New middle classes are interested in the substantive aspects of luxury travel, while established mature markets are looking for new indulgences. People have more access to more places to visit as the world becomes a safer place, resulting in a massive expansion of available touristic products and services.
Of course, the COVID-19 epidemic had a significant impact on the tourism business. During the years 2020 and 2021, revenue and overall visitation both decreased significantly. However, this is only partially relevant. We know that individuals will never stop wanting to travel around the world and participate in activities while doing so. It will only be a matter of time before it reverts to its previous state. With the resumption of travel on the horizon, you don’t want to be scrambling for a life jacket when activity bookings resume. Software solutions have become an important part of the fight against COVID-19 since they help to secure your business and your visitors.
Development of the industries
The growth of international and domestic, business and leisure travel has increased year over year. The increase in the tourism industry triggers the increase in the hotel industry’s market. The growth of hospitality is signified by the increase in revenue per available room, average daily rate and occupancy. The airline industry also takes benefits from the growth in the tourism industry. The revenue of the global commercial airline industry is catching USD 472 billion by 2021.
Most visited places in 2019
- Bangkok, Thailand with 22.78 Million Visitors
- Paris, France with 19.10 Million Visitors
- London, UK with 19.09 Million Visitors
- Dubai, United Arab Emirates with 15.93 Million Visitors
- Singapore, Malaysia with 14.67 Million Visitors
Most visited countries in 2022
- United States
It is the new concept, which the travel agencies should look into. The transport sector in tourism impacts the CO2 emission. So considering the environmental degradation, the tourism industry should implement environmentally friendly practices in tourism like ecotourism, green travel or green accommodation, etc.
Tourism and hospitality is a key business that is rapidly expanding. Sustainability is a relatively new concept in this industry. The tourist business, like many other industries, contributes to the growth of other industries.