Travel 2016 Key Insights

Travel at the epicentre

The travel industry is highly susceptible to external shocks, and 2016 has served up a host of geopolitical tensions, including mass migration and conflict. However, the industry is resilient, with 4% growth in trips taken internationally and domestically, driven especially by Asia, stealing a march on Europe.

Terrorism takes its toll

Travel continues to be a target for terrorist attacks across the world. Atrocities cause a short, sharp decline followed by a rebound. However, sustained and frequent attacks, as in Turkey and Egypt, have a more long-term effect.

Brexit shockwaves

The UK’s decision to leave the EU has led to high levels of uncertainty, casting dark shadows over the UK economy. The depreciation of sterling will constrain the UK outbound market significantly, but will be a boon for inbound travel.

Asia packs a punch

With Europe and North America looking inward, Asia and China continue to hold great future promise, as Asian travellers venture beyond their region. Huge untapped potential exists in populous nations like India and Indonesia.

Disruptor alert

Short-term rentals have proved their success, with over 50% online penetration and sales worth US$65 billion in 2015, having overtaken the well-established budget hotel category, giving hotels a run for their money for price/value.

Mobile for the masses

The sheer rate of mobile travel sales adoption has been impressive, and it is now a mainstream booking channel. By 2020, online travel will account for over 45% of total sales, and mobile will account for 40% of online sales.

Green light ahead

2017 is the International Year of Sustainable Tourism for Development. The travel industry is well placed to build on successes, but more needs to be done to reduce revenue leakage and promote sustainable tourism practices.