The Tourism Industry: New Times, New Challenges
The tourism industry is evolving rapidly. Travelers are taking shorter trips, exploring new accommodation types like bed and breakfasts, and moving away from the traditional all-inclusive model. Hotels and destinations must adapt, offering personalized, high-quality experiences, even for short stays, and reconsidering their business models to remain competitive. To stay ahead, understanding these trends is essential. For further insights, check out the Hosteltur Tourism Trends Report 2024 and the UNWTO World Tourism Barometer.
Daniel Bermejo Oyarzun
7/8/20242 min read
The tourism industry is booming. The number of travelers is increasing globally, and the Average Daily Rate (ADR) continues to rise. While the raw figures are positive, the way we travel is changing.
The data confirms this:
Shorter trips: Travelers are opting for shorter vacations, resulting in a shorter average stay. With inflation, prices are higher, but the average traveler's budget remains the same. Holidays or getaways are still a necessity, so shorter trips are the solution for most travelers.
Rise of bed and breakfasts: This type of accommodation is gaining ground in both urban environments and traditional sun and beach destinations. The food and beverage (F&B) experience is part of the exploration, and travelers are more curious and eager to try different restaurants and alternatives outside the hotel. This contrasts with the traditional all-inclusive traveler.
Rethinking the all-inclusive: This model, once very profitable for hotels, is losing its appeal. High price competitiveness and the rising cost of raw materials due to inflation make it less attractive. Online travel agencies dominate short trips (getaways), while tour operators are losing market share in city destinations. Hotels are trying to increase direct sales to avoid high commissions from tour operators.
Emergence of smart hostels: New accommodation concepts, like smart hostels, are gaining popularity. By optimizing technology and reducing staff costs, these models offer affordable stays while maintaining quality service, appealing especially to budget-conscious travelers and short-stay visitors.
What does this paradigm shift mean?
The industry is facing a new scenario:
Need to adapt: Hotels and tourist destinations must adjust to the new preferences of travelers, offering personalized and short-term experiences. The focus is on the quality of experiences, even if they are short.
Search for alternatives: The all-inclusive model must reinvent itself to remain competitive or give way to new accommodation and board formulas. In city hotels, the business model is clear: focus on accommodation or bed and breakfast and avoid the complexities of F&B.
Opportunity for bed and breakfasts: This type of accommodation has the advantage of flexibility and proximity, aspects increasingly valued by travelers.
In short, the tourism sector is undergoing a transformation. Those who can read new trends and adapt to them will be the ones who emerge successfully from this change.
To learn more about the topic, I recommend consulting the following reports:
Hosteltur Tourism Trends Report 2024
UNWTO World Tourism Barometer