NEW YORK CITY —McKinsey & Company has released a new report on the state of tourism and hospitality, and some of the trends it identifies should be on the radar of trade show executives.
The report states that tourism and hospitality are in the midst of a transformation. Changing source markets and destinations, growing demand for experiential and luxury travel, and innovative business strategies are combining to radically alter the landscape of the sector.
After falling 75% in 2020, travel is on track to fully recover by the end of 2024. Domestic travel is expected to grow 3% per year to reach 19 billion room nights per year by 2030. Over the same period, international travel is also expected to increase to its historical average of nine billion room nights.
Similar to a trend identified by many industry insiders, the report indicates that there will be an increase in travel to second-tier destinations.
This trend was also identified by Greg Topalian, president of Clarion Events North America, at the 23rd Annual Convention and Exhibition Executives Forum (ECEF) in Washington DC
Topalian predicts that some gatherings will move out of first-tier cities and into new destinations. In addition, nontraditional venues in first-tier cities are more appealing than ever. Not only are they different, they’re often less expensive. “I don’t want to be in a traditional building. Let’s try an outdoor venue. It’s happening,” Topalian says.
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Domestic travel has recovered from the COVID-19 pandemic faster than international travel and continues to grow. International travel has not returned to 2019 levels, due to visa wait times. For example, it takes at least 849 days to get an appointment for a visitor visa interview in Mexico City. In Bogota, it takes 640 days. These delays are having a tangible negative impact on the trade show industry.
Source markets are also changing. While established markets continue to anchor international travel, Eastern Europe, India and Southeast Asia are all becoming growing sources of outbound tourism. The destinations of the future may not be the typical ones of the past, the report suggests.
Countries like Peru, the Philippines, Rwanda and Vietnam have developed thoughtful tourism demand generation strategies that should bear fruit in the years to come.
The McKinsey report also indicates that travelers are looking for personalization, similar to what trade show attendees want. Today’s trade show attendees don’t want to feel like just another individual.
Contact Greg Topalian at Greg.Topalian@Clarionevents.com