What does the global future of travel look like?
The global economic landscape has always had an influential role over the travel industry, and today is no different.
Chief economist for Southeast Asia Justin Wood had a few insights up his sleeve at the Travelport conference in Seoul, and trends that are likely to shape the future of travel.
Wood took dry economic analysis and stats, and turned them into useful info for the travel sector. Here are the top tips to look out for.
Economic Outlook
In terms of the global economy, things look to be improving at a modest pace, with Asia Pacific tipped to outperform all the rest for the next 12 to 18 months.
Commodity prices are shaky, which will leave the Americans saving around $200 million on petrol and fuel costs over the coming year, a trend that will boost the demand for travel.
The Euro is pinned to remain weak, along with the Yen, while printing money in Europe and Japan means the economies will enjoy greater stimulation.
China’s growth has also been predicted to slow in the near future, and despite being in a slightly better position than previous years, Greece continues to be at risk.
Geo- Political Risk areas
The key global areas that remain at risk, and subsequently will drop in travel demand, include:
- Russia-Ukraine
- South China Sea
- Middle East
Wood suggested these destinations would experience a lag in visitors, while they pulled themselves back up to tip top travelling standards.
Global Themes
Overall, Wood said it’s a good year to be making the trek to Europe, with the continent set to grow modestly by around 1.5%.
The Central Bank in Europe has decided to start printing money, and as a result the Euro is weakening, further encouraging travellers to jetset off on a European getaway.
The US economy is roaring along, with more jobs being create, and an economy that is now 8% bigger than before the GFC.
Japan
A lot is happening in Japan, from printing money to government spending on infrastructure, plus a range of structural reforms.
A rise of consumption tax means that people have stopped spending as much money, and where once Japan was an expensive place to travel to, Wood says it’s now looking much more affordable.
Pack your bags, it’s a good time to check out Japan.
Where is the growth in the emerging markets?
Emerging markets are important to track in the travel industry, and Wood suggested to keep an eye on Asia and Africa, both markets that are coming into their own.
In 30 years China has had 10% growth year-on-year, but this is now set to drop to 6-5%, however the nation can still expect exceptional growth.
- Chinese workforce is aging and shrinking
- Investments in fixed assets are now saturated, the key engine of growth in China.
China will still add $890 billion dollars every year to the global economy, the equivalent GDP of Australia every year over the coming years, with Wood suggesting the country will become much more than just a strong, emerging market.
India is growing faster than China, but don’t be fooled, because its speed is no match China’s size.
Australia’s sharp drop in currency and our somewhat shaky dollar means that more travellers are looking to visit down under, while Aussies are predicted to travel to other cheaper markets outside of our home territory.
Overall, Wood says a trend will emerge where Australian consumers will slowly come home, and start to spend again as the weaker currency and fall in interest rates boosts the economy back up.
The overall economic outlook is looking good for the future of travel, and it’s something Wood says we as an industry can look forward to.
Nancy Hromin is attending the Travelport Conference in Seoul on behalf of Travel Weekly and can be contacted at nancy@travelweekly.com.au.
Latest News
Collette goes off the beaten track with Canyon Country tour
To be clear TW is not advocating actually walking off the beaten track. Avoid the coyotes. Stay on the beaten track.
Intrepid & Korean Tourism Organisation team up to give agents a cooking masterclass
These guys learnt that Korean cooking is more than just putting kimchi on 2-minute noodles (as we once thought).
Winner, winner! Intrepid reveals the 9 lucky agents that won $2k
Who won the incentive? Which Intrepid trip will they spend it on? What day of the week is it again? Where am I? Huh?
Corporate Traveller reports 42% increase in Easter traffic this year
Business travellers just love Easter! Expect plenty of chocolate stained documents returning to the office on Tuesday.
Turbulent year wiped $384m off Qantas brand value: Report
Meanwhile, eating tuna at your desk can damage your own personal office brand value by several thousand dollars.
FAMIL: Room-Res & Singapore Tourism Board shows agents the Lion City’s roar
Click this article to see a man very impressed by a 20-layer chocolate cake. We're not kidding, he loved it!
Oceania Cruises offers sailors free pre-cruise hotel stay
Looking for ways to make your holidays as long as possible? Look no further.
Bonza launches new website to compliment app, agent portal
Does news about an airline's website fill you with ecstasy, glee and joy? Get your hit of the good stuff here.
MTA agents attends ‘Lunch ‘n’ Learn’ with AMA Waterways
When organising the event, Lunch 'n' Learn beat out Dinner 'n' Divulge and Breakfast 'n' Banter. Understandably so.
Travelmarvel reveals 2025 South America tours
If you spot any typos in the newsletter today it is because TW became distracted Googling images of Machu Picchu.
Tourists from 5 countries could be BANNED from visiting Australia
Anthony Albanese's immigration laws could impact tourism from certain countries.
Just how many passengers will Qantas & Jetstar hop around this Easter?
Airline workers are ready for gleeful Easter travellers! Also prepared for sticky children with chocolate on their face.
Air New Zealand gets ready for bumper Easter weekend
Air NZ gears up for travelling passengers this Easter, while TW looks to beat our egg eating record. 117 here we come!
Four Seasons Yachts reveals first itineraries to the Caribbean & Mediterranean
These trips look so good we wish there were five seasons! Alright, we'll see ourselves out...
FAMIL: Travellers Choice treats top agents to the wonders of Rotorua
This one's got plenty of famil pics and no one looks shockingly hungover in them! Clearly no TW staffers were there.
European Waterways celebrates 50th anniversary with week-long founders cruise
Plan on celebrating your 50th anniversary with a bottle of Moët and fairy bread? European Waterways has better ideas.
100th route! Jetstar celebrates the launch of Brisbane-Avalon with 12 hour sale
Jetstar knocks a ton and celebrates with a sale while TW once scored a ton and celebrated with about 17 beers.
Record-breaking year for NSW as visitor expenditure soars past $50 billion
Enjoy running round the Opera House? Be prepared to elbow even more tourists out the way.
Norwegian Cruise Line makes play for solo travellers
NCL ensuring you don't have to go trawling Tinder to find a cruise partner. Thank goodness, we were sick of catfishing.
Entire Travel Group’s Canada and Europe 2024/25 brochures are out now
Entire's new brochure is bittersweet; it both informs your clients and makes you envious of the holiday they'll take.
Malaysia Airlines adds 3 new destinations & A330neo seats
More seats means cheaper airfares and more money to spend on overpriced airport sandwiches. Woohoo!
Two divine days onboard Crystal Serenity
It's only pure serenity onboard this ship. Anxiety, agitation and anguish have been rejected by the bouncer.
How the Globus Family of Brands elevates coach touring: Travel Weekly TV with Chris Fundell
Chris' here so you don't think coaches mean peeling your thighs off a sticky leather seat every time you stand up!
The Flight Centre Foundation gears up for massive 2024 with 3 new board members
The foundation looks to invest $200k this year, spurring the TW journos to figure out how to qualify as a charity.
Barking Owl Communications to head up Anantara & Avani in ANZ
Fellow PR competitors had been barking up the wrong tree even thinking of bidding for this job!
Amex GBT to purchase CWT for $871m
It's big deals like this that get a firm handshake - hence the sore hands over at the CWT and Amex GBT offices.
1000MTG’s second global conference reminds agents to ‘strive and thrive’
Alongside messages to 'strive' and 'thrive' were those to 'survive', 'drive', 'arrive' and 'jive' (when appropriate).
Qantas A330 makes “loud bang”, pilots forced to shut down one engine
Qantas refusing to let Boeing have all the headlines in aviation world today!
GX Community Tourism Summit 2024 location revealed!
The new location has arrived and it'll blow your socks off! Time for another trip to Target for more socks then.
Visiting the destination my Mum didn’t want me to
Yet again, this journo has been a stress to his mother. Discover how this trip spurred his mother's anxiety here.
Agents come out of their shells at P&O’s turtle hatchery event
For some, it's a few glasses of bubbles to lure them out of their shell. For these agents, it was a bit more literal.
Boeing cleanout: CEO, chair to go as safety crisis plagues the manufacturer
CEOs are falling thick and fast these days. We should have started up a bingo game with their headshots in the office.
Virgin looks to swap MAX 10 order for MAX 8s amid Boeing delays: Reports
Virgin has changed its order for something smaller. Much like we have to at Maccas following a worrying doctor's visit.
Club Med unveils newest luxury yacht for 2024/25 early bird sale
This yacht is preserved for the early birds! Night Owls may also get onboard depending how late they stay up.
Abercrombie & Kent 2024 Asia Portfolio is here
Round up the family and get planning an Asia jaunt. Or, if they're hard to handle, brush them all and go it alone!
Elevate your earnings: Final days to secure double commission with Inspiring Vacations’ March offer
What could inspire you to sell more Inspiring Vacations? Double commission of course! That's all the inspiration needed.