Berlin — Flying taxis, digital nomads and gamma destinations will all reshape the future of travel, according to Jenny Southan, CEO, editor and founder, Globetrender, speaking at the International Hospitality Investment Forum (IHIF).
Southan said that there was “no better time” for audacious ideas to capitalise on the boom in travel, the uptake of generative artificial intelligence (AI) and the rise in Gen Z and Gen Alpha consumers, as she said that the travel industry needed to “think bigger and project further into the future.”
Reflecting on a sector that has been disrupted by a series of global events, from the pandemic and soaring oil prices, to the ongoing war in Ukraine and the climate crisis, including rising sea levels, she insisted: “Fortune will favour the bold”.
“As an industry we need to think beyond the year ahead and experiment with visionary ideas,” she said, as she lauded the recovery in global travel, citing 34 countries where tourism levels are already ahead of 2019 levels, with a full recovery worldwide expected by 2024.
Route resurgence
Southan pointed to route resurgence as one of the key factors in the ongoing recovery, especially in the Asia Pacific region, while in the peak summer period in Europe she said that airlines were doing their best to meet the desire for travel and lack of capacity, which will inevitably leave some travellers disappointed.
Despite labour shortages and supply chain challenges regarding airline manufacture, she said that the airline industry was working hard to reinstate and open up connectivity to underserved markets.
“BA has started routes to Aruba and Guyana, Lufthansa has reopened routes, Virgin Atlantic has just reinstated its London to Shanghai route and in October Delta will open up Los Angeles to Auckland, while in June Qantas will start its New York to Auckland route,” she said of some of the connections opening again.
Rebel spending
Southan added that “rebel spending” was another ongoing trend, thanks to an “explosion in wealth”, around the world.“In spite of the wider cost of living crisis, this expansion of the affluent will mean money will keep flowing. This is a unique opportunity to cash in for the travel industry, with unparalleled surge in luxury demand,” she said.
However, she added that soaring costs did mean that more price sensitive locations are also out-performing, with Turkey up 69% since 2019, plus cheaper locations such as Montenegro in high demand.The return of Chinese travellers next year, plus the growing Indian population and more travel from Asian countries would mean that competition to see the most famous locations will become fiercer, she warned.
“That means that alpha destinations in Europe such as Barcelona and Venice will see very strong demand, as will beta destinations. So we predict that gamma destinations, with more capacity to cope with tourists, will benefit,” Southan said.
One such example is Saudi Arabia, which by 2030 plans to become a major holiday destination with target of 100 million inbound tourists. Another is the Republic of Congo thanks to the development of a luxury camp, plus Hudson Valley New York State, which is being established as a wellness centre.
Such locations will be generally be opened up by major, destination hotel and resort openings, she said.
Southan also cited ‘geoarbitrage’ as another growing trend, whereby locations advertise themselves as places for global digital nomads, where people are given the opportunity to temporarily move to somewhere with a lower cost of living but retain the same income through their work or freelance.
Digital nomad visas
New digital nomad visas have been issued in countries such as Spain, Belize and Barbados, with South Korea set to issue its own this year.
That trend will favour hotels with more residential elements and co-working space, such as brands like Citizen M, Ruby and the Hoxton she said.
Southan’s final trends looked further to the future, noting that generative AI - a $28bn opportunity according to Skift – would see developments in bots, smart hotel room controls and analysis of market trends to optimise room pricing.
She also picked out flying taxis, predicting that urban mobility challenges would soon mean people that travellers will not need to use roads, but instead will opt for aerial highways, transported by battery powered vehicles, with vertical landing facilities at hotels, in the same way that some have helipads.
Southan said that Virgin Atlantic was purchasing vertical taxis capable of speeds of around 200mph and with range of about 100 miles, which additionally are almost silent, with no emissions.
Falcon’s air taxis are also expected to become operational in Dubai form 2026, using the Atlantis as a base, while a number of other operators are also looking to acquire fleets in other markets.