JANUARY 2021 - Aruba Airport
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JANUARY 2021
SNAPSHOT JANUARY 2021
30 **Tourism Credits: In the new
DAY presentation of the Balance of
Payments, the Central Bank of Aruba
reclassified maintenance fee arising
HOW MANY HOW MANY HOW LONG WHAT DID from Timeshare arrangement from
THEY SPEND?** “Other Services” to “Travel Services”
ARRIVALS? CRUISE TOURISM? DID THEY STAY?
(Tourism). With this reclassification it
Central Bank Aruba
should be noted that the term Tourism
(Q1 and Q2 2020)
Receipts has changed to Tourism
Credits in the new presentation of
31,368 0 305,365 Awg. 1,174 min Balance of Payments. This
reclassification resulted in an upward
adjustment of the previously used term
-65.2% -56.2% -40% Tourism Receipts.
WHERE DID THEY STAY?
HIGH RISE LOW RISE TIMESHARE OTHERS
56,451 16,092 130,070 102,752
NIGHTS NIGHTS NIGHTS NIGHTS
-76.6% -69.0% -39.6% -45.8%
JANUARY RESULT 2021
NORTH AMERICA SOUTH AMERICA EUROPE OTHERS
26,860 1,776 1,843 889
85.6% 5.7% 5.9% 2.8%
OTHERS VENEZUELA
1,751 25
5.6% 0.1%
TOTAL ARRIVALS TOTAL ARRIVALS WITHOUT VENEZUELA
31,368 31,343
-65.4% -65.2%
ARRIVALS 31,368 -65.4%
JANUARY ARRIVALS GROWTH
2020 Growth 2021 % Growth Marketshare 2020 Marketshare 2021
USA 67,817 -41,598 26,219 -61.3% 74.8% 83.6%
Canada 6,949 -6,308 641 -90.8% 7.7% 2.0%
NA 74,766 -47,906 26,860 -64.1% 82. 5% 85. 6%
Venezuela 574 -549 25 -95.6% 0.6% 0.1%
Colombia 2,367 -1,310 1,057 -55.3% 2.6% 3.4%
Brazil 780 -704 76 -90.3% 0.9% 0.2%
Argentina 1,892 -1,620 272 -85.6% 2.1% 0.9%
Chile 419 -322 97 -76.8% 0.5% 0.3%
Ecuador 29 -4 25 -13.8% 0.0% 0.1%
Peru 224 -223 1 -99.6% 0.2% 0.0%
Paraguay 236 -176 60 -74.6% 0.3% 0.2%
Uruguay 137 -124 13 -90.5% 0.2% 0.0%
Mexico 84 -52 32 -61.9% 0.1% 0.1%
Others 601 -483 118 -80.4% 0.7% 0.4%
SA 7,343 -5, 567 1,776 -75.8% 8. 1% 5. 7%
Netherlands 3,499 -2,448 1,051 -70.0% 3.9% 3.4%
UK 272 -168 104 -61.8% 0.3% 0.3%
Germany 434 -315 119 -72.6% 0.5% 0.4%
Italy 667 -602 65 -90.3% 0.7% 0.2%
Sweden 654 -619 35 -94.6% 0.7% 0.1%
Belgium 143 -100 43 -69.9% 0.2% 0.1%
Ireland 9 -3 6 -33.3% 0.0% 0.0%
Others 1,221 -801 420 -65.6% 1.3% 1.3%
Europe 6,899 -5,056 1,843 -73.3% 7. 6% 5. 9%
ROW 1,615 -726 889 -45.0% 1. 8% 2. 8%
Total 90,623 -59,255 31,368 -65.4%
W/O Ven. 90,049 -58,706 31,343 -65.2%
ARRIVALS USA 26,219 -61.3%
JANUARY ARRIVALS GROWTH
SMALLEST DECREASE IN %: GEORGIA | LARGEST SHARE IN %: NEW YORK
2020 Growth 2021 % Growth Marketshare 2020 Marketshare 2021
New York 15,470 -8,477 6,993 -54.8% 22.8% 26.7%
Massachusetts 8,461 -5,781 2,680 -68.3% 12.5% 10.2%
New Jersey 6,912 -3,611 3,301 -52.2% 10.2% 12.6%
Pennsylvania 4,319 -3,077 1,242 -71.2% 6.4% 4.7%
Illinois 2,616 -1,836 780 -70.2% 3.9% 3.0%
Connecticut 2,023 -1,219 804 -60.3% 3.0% 3.1%
Florida 2,685 -2,684 1 -100.0% 4.0% 0.0%
Ohio 1,944 -1,171 773 -60.2% 2.9% 2.9%
Maryland 2,245 -1,528 717 -68.1% 3.3% 2.7%
Michigan 1,492 -691 801 -46.3% 2.2% 3.1%
Virginia 1,386 -903 483 -65.2% 2.0% 1.8%
Georgia 974 -397 577 -40.8% 1.4% 2.2%
North Carolina 1,608 -1,032 576 -64.2% 2.4% 2.2%
Texas 1,164 -589 575 -50.6% 1.7% 2.2%
California 955 -634 321 -66.4% 1.4% 1.2%
Other 13,563 -7,968 5,595 -58.7% 20.0% 21.3%
Total 67,817 -41,598 26,219 -61.3%
NIGHTS 305,365 -56.2%
JANUARY NIGHTS GROWTH
2020 Growth 2021 % Growth ALOS 2020 ALOS 2021
USA 492,364 -253,395 238,969 -51.5% 7.3 9.1
Canada 63,609 -49,666 13,943 -78.1% 9.2 21.8
NA 555,973 -303,061 252,912 -54.5% 7.4 9.4
Venezuela 5,950 -5,735 215 -96.4% 10.4 8.6
Colombia 16,462 -7,434 9,028 -45.2% 7.0 8.5
Brazil 5,243 -4,515 728 -86.1% 6.7 9.6
Argentina 18,520 -15,054 3,466 -81.3% 9.8 12.7
Chile 3,157 -2,323 834 -73.6% 7.5 8.6
Ecuador 342 188 530 55.0% 11.8 21.2
Peru 1,372 -1,365 7 -99.5% 6.1 7.0
Paraguay 1,801 -1,314 487 -73.0% 7.6 8.1
Uruguay 1,116 -925 191 -82.9% 8.1 14.7
Mexico 527 75 602 14.2% 6.3 18.8
Others 3,605 -2,309 1,296 -64.0% 6.0 11.0
SA 58,095 -40, 711 17,384 -70.1% 7.9 9.8
Netherlands 42,416 -26,934 15,482 -63.5% 12.1 14.7
UK 2,525 -923 1,602 -36.6% 9.3 15.4
Germany 3,656 -1,595 2,061 -43.6% 8.4 17.3
Italy 5,587 -4,730 857 -84.7% 8.4 13.2
Sweden 8,160 -7,700 460 -94.4% 12.5 13.1
Belgium 1,567 -854 713 -54.5% 11.0 16.6
Ireland 78 21 99 26.9% 8.7 16.5
Others 11,015 -4,561 6,454 -41.4% 9.0 15.4
Europe 75,004 -47, 276 27,728 -63.0% 10.9 15.0
ROW 8,782 -1, 441 7,341 -16.4% 5.4 8.3
Total 697,854 -392,489 305,365 -56.2% 7.7 9.7
ACCOMODATIONS: WHERE DID THEY STAY? HIGH RISE LOW RISE TIMESHARE OTHERS 56,451 16,092 130,070 102,752 NIGHTS NIGHTS NIGHTS NIGHTS -76.6% -69.0% -39.6% -45.8%
ACCOMMODATIONS 31,368 -65.4%
JANUARY ARRIVALS GROWTH
THE LARGEST MARKETSHARE (%): TIMESHARE
ARRIVALS BY ACCOMMODATION
2020 Growth 2021 % Growth Marketshare 2020 Marketshare 2021
High Rise 38,760 -30,268 8,492 -78.1% 42.8% 27.1%
Low Rise 7,338 -5,240 2,098 -71.4% 8.1% 6.7%
Timeshare 22,751 -10,221 12,530 -44.9% 25.1% 39.9%
Others 21,774 -13,526 8,248 -62.1% 24.0% 26.3%
Total 90,623 -59,255 31,368 -65.4%
NIGHTS BY ACCOMMODATION
2020 Variance 2021 % Growth Marketshare 2020 Marketshare 2021
High Rise 241,026 -184,575 56,451 -76.6% 34.5% 18.5%
Low Rise 51,892 -35,800 16,092 -69.0% 7.4% 5.3%
Timeshare 215,236 -85,166 130,070 -39.6% 30.8% 42.6%
Others 189,700 -86,956 102,744 -45.8% 27.2% 33.6%
Total 697,854 -392,497 305,357 -56.2%
AGE GROUP 31,368 -65.4%
JANUARY ARRIVALS GROWTH
MARKETSHARE 20-49 YEARS : 49.8%
2020 Growth 2021 % Growth
0 - 11 5,119 -3,241 1,878 -63.3%
12-19 4,069 -2,050 2,019 -50.4%
20 - 29 11,025 -5,690 5,335 -51.6%
30 - 39 12,456 -6,940 5,516 -55.7%
40 - 49 12,656 -7,883 4,773 -62.3%
50 - 59 18,956 -13,033 5,923 -68.8%
60 - 69 16,870 -12,891 3,979 -76.4%
70 + 9,456 -7,514 1,942 -79.5%
Not Stated 16 -13 3 -81.3%
Total 90,623 -59,255 31,368 -65.4%
CARRIERS 31,368 -65.4%
JANUARY 2020 Growth 2021 % Growth
ARRIVALS
Marketshare 2020 Marketshare 2021
GROWTH
JetBlue 17,186 -9,997 7,189 -58.2% 19.0% 22.9%
United Airlines 13,438 -7,997 5,441 -59.5% 14.8% 17.3%
Delta Air Lines 12,522 -8,260 4,262 -66.0% 13.8% 13.6%
American Airlines 17,820
2020 Growth -10,542 7,278 % Growth
2021 -59.2% 19.7%
Marketshare 2020 23.2%
Marketshare 2021
Westjet Airlines 1,861 -1,732 129 -93.1% 2.1% 0.4%
JetBlue 17,186 -9,997 7,189 -58.2% 19.0% 22.9%
Insel Air 0 0 - 0.0% 0.0%
United Airlines 13,438 -7,997 5,441 -59.5% 14.8% 17.3%
Copa 2,592 -2,079 513 -80.2% 2.9% 1.6%
Delta Air Lines 12,522 -8,260 4,262 -66.0% 13.8% 13.6%
Sun Country 396 -149 247 -37.6% 0.4% 0.8%
American Airlines 17,820 -10,542 7,278 -59.2% 19.7% 23.2%
KLM 2,754 -1,128 1,626 -41.0% 3.0% 5.2%
Westjet Airlines 1,861 -1,732 129 -93.1% 2.1% 0.4%
Avianca/AeroGal 3,260 -2,622 638 -80.4% 3.6% 2.0%
Insel Air 0 0 - 0.0% 0.0%
Divi Divi Air 611 -129 482 -21.1% 0.7% 1.5%
Copa 2,592 -2,079 513 -80.2% 2.9% 1.6%
Sun Country 396 -149 247 -37.6% 0.4% 0.8%
Sun Country 396 -149 247 -37.6% 0.4% 0.8%
Ez Air 306 -239 67 -78.1% 0.3% 0.2%
KLM 2,754 -1,128 1,626 -41.0% 3.0% 5.2%
Aero Republica (Wingo) 666 -100 566 -15.0% 0.7% 1.8%
Avianca/AeroGal 3,260 -2,622 638 -80.4% 3.6% 2.0%
ArkeFly 1,299 -1,215 84 -93.5% 1.4% 0.3%
Divi Divi Air 611 -129 482 -21.1% 0.7% 1.5%
SouthWest 7,446 -5,737 1,709 -77.0% 8.2% 5.4%
Sun Country 396 -149 247 -37.6% 0.4% 0.8%
Air Canada 2,217 -1,805 412 -81.4% 2.4% 1.3%
Ez Air 306 -239 67 -78.1% 0.3% 0.2%
Spirit Airlines 522 -72 450 -13.8% 0.6% 1.4%
Aero Republica (Wingo) 666 -100 566 -15.0% 0.7% 1.8%
Surinam Airways 312 -302 10 -96.8% 0.3% 0.0%
ArkeFly 1,299 -1,215 84 -93.5% 1.4% 0.3%
Sky High Aviation Service 50 -37 13 -74.0% 0.1% 0.0%
SouthWest 7,446 -5,737 1,709 -77.0% 8.2% 5.4%
Private 250 -110 140 -44.0% 0.3% 0.4%
Air Canada 2,217 -1,805 412 -81.4% 2.4% 1.3%
Other 4,719 -4,854 -135 -102.9% 5.2% -0.4%
Spirit Airlines 522 -72 450 -13.8% 0.6% 1.4%
- 0.0% 0.0%
Surinam Airways 312 -302 10 -96.8% 0.3% 0.0%
- 0.0% 0.0%
Sky High Aviation Service 50 -37 13 -74.0% 0.1% 0.0%
- 0.0% 0.0%
Private 250 -110 140 -44.0% 0.3% 0.4%
- 0.0% 0.0%
Other 4,719 -4,854 -135 -102.9% 5.2%
0.0% -0.4%
- 0.0%
- 0.0% 0.0%
Total 90,623 -59, 255 31,368 -65.4%
- 0.0% 0.0%
- 0.0% 0.0%
- 0.0% 0.0%
- 0.0% 0.0%
Total 90,623 -59, 255 31,368 -65.4%GUEST SATISFACTION
GUEST EXPERIENCE INDEX (GEI)
9,000 9.6
Since July, the number of reviews has
8,143
been growing gradually while the 8,000
7,519 9.4 9.3
destination is carefully reopening. 9.4
7,000 9.2
On a very positive note, the score of 9.1 9.1
9.2 9.2
guest satisfaction since the destination 6,000
has reopened reaches 9.2 including 9.0
8.9 9.0
January 2021. This level is high in 5,000 8.9
8.9
8.9
8.8
absolute level and has risen sharply
4,000 4,574
vs pre- covid19 average (8.9), 8.7
8.8
3,227
indicating that travelers appear to be 3,075
3,000 2,613
very satisfied with their recent stay 2,395 8.6
on Aruba. 2,001 2,080
2,000
1,208
8.4
1,000
418 398 415
- 8.2
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21
Reviews Rating
In total ATA is tracking 318 establishments.KEY SANITARY INDICATORS
In total ATA is tracking 318 establishments.
Aruba 7.0 7.2
Sanitary Safety Score : The Sanitary Safety Score gives you a key insight into what your customers' sentiment
regarding the cleanliness and safety of your establishment. In total ATA is tracking 318 establishments.
Health Precaution Scores : The Health Precaution Score gives you an insight into the perception your customers have concerning the
precautions you have taken within your establishment. Based on selected keywords and analyzed for sentiment, you can understand
the sentiment your customers have about how you are protecting your guests during the pandemic.
Both scores, expressed on a 10-point scale (10 being the best rating), are based on an expansive selection of key words along with
analyzing the negative and positive sentiment, covering 6 Languages - English, French, Spanish, German, Dutch and Italian.TIDBITS
CARIBBEAN TOURISM ORGANIZATION
LATEST STATISTICS 2020
February 8, 2021
Tourist
Destination Period % Change Overall
Arrivals
Anguilla Jan-Dec 25,381 -73.4
Antigua & Barbuda Jan-Dec 125,090 -58.4
Aruba Jan-Dec 368,322 -67.0
Bahamas Jan-Dec 422,640 -76.5
Belize P Jan-Dec 144,123 -71.4
Bermuda * Jan-Oct 36,977 -84.5
British Virgin Islands Jan-Dec 82,687 -72.7
Cayman Islands Jan-Nov 145,647 -67.5
Cuba Jan-Dec 1,085,920 -74.6
Curacao Jan-Dec 174,871 -62.3
Dominica P Jan-Dec 21,733 -75.7
Dominican Republic * Jan-Dec 2,405,315 -62.7
Grenada Jan-Dec 43,815 -73.1
Jamaica Jan-Dec 880,404 -67.2
Martinique Jan-Dec 312,298 -43.9 Non-Resident Air Arrivals
Montserrat Jan-Dec 4,544 -56.3 ** Non-Resident Hotel registrations only
Puerto Rico ** Jan-Aug 522,853 -53.0 *** Air Arrivals by Nationality
St. Kitts & Nevis ^ P Jan-Dec 28,721 -77.7 P Preliminary figures # Winter - Jan to Apr;
Saint Lucia Jan-Dec 130,695 -69.2 Summer - May to Dec ^ Excludes data from Vance
M. Amory Int’l Airport in Nevis.
St. Maarten * Jan-Dec 106,425 -66.7
N.B: Figures are subject to revision by reporting
Trinidad & Tobago *** Jan-Aug 93,147 -65.2 countries.
Turks & Caicos Islands Jan-Sep 131,981 -64.4 SOURCE - Data supplied by member countries and
U.S Virgin Islands Jan-Nov 363,052 -36.5 available as at February 8, 2021CARIBBEAN TOURISM
Table 3: Tourist Arrivals by Main Market – 2020 ORGANIZATION
United States Canada Europe Other LATEST STATISTICS 2020
Destination Period
Tourists % ch. Tourists % ch. Tourists % ch. Tourists % ch. February 8, 2021
Anguilla Jan-Dec 17,615 -72.1 1,562 -62.0 3,064 -71.4 3,140 -81.9
Antigua & Barbuda Jan-Dec 60,319 -51.2 15,716 -57.8 38,688 -60.6 10,367 -75.3
Aruba Jan-Dec 295,307 -64.7 19,632 -62.4 28,201 -69.7 25,182 -81.3
Bahamas Jan-Dec 338,772 -76.9 42,618 -68.2 23,944 -79.9 17,306 -78.2
Belize P Jan-Dec 91,196 -72.1 14,503 -59.2 16,179 -72.8 22,245 -72.8
Bermuda * Jan-Oct 24,650 -86.4 4,587 -80.8 6,340 -75.5 1,400 -83.0
Cayman Islands Jan-Nov 119,319 -68.2 13,407 -49.0 7,290 -65.4 5,631 -78.0
Cuba Jan-Dec 58,148 -88.3 413,410 -63.1 241,657 -73.8 372,705 -78.5
Curacao Jan-Dec 22,646 -69.4 10,290 -53.4 112,427 -53.9 29,508 -76.1
Dominica P Jan-Dec 4,425 -64.6 929 -59.9 5,197 -70.1 11,182 -80.5
Dominican Republic * Jan-Dec 629,120 -69.0 338,098 -61.0 405,560 -69.4 1,032,537 -53.6
Grenada Jan-Dec 20,726 -72.9 4,914 -72.6 10,924 -67.7 7,251 -79.1
Guyana Jan-Oct 24,272 -69.4 4,887 -72.3 3,924 -66.8 35,939 -75.5 Non-Resident Air Arrivals
Jan-Dec 637,505 ** Non-Resident Hotel registrations only
Jamaica -65.3 132,014 -66.6 78,225 -75.6 32,660 -74.0
*** Air Arrivals by Nationality
Montserrat Jan-Dec 1,309 -50.4 284 -46.9 1,720 -44.0 1,231 -70.3 1 Some European countries are included in Other
St. Kitts & Nevis ^P Jan-Dec 18,607 -76.4 2,580 -65.4 2,867 -78.3 4,667 -84.0 PPreliminary figures ^ Excludes data from Vance M.
Amory Int’l Airport in Nevis.
Saint Lucia Jan-Dec 67,888 -64.6 15,272 -62.6 33,457 -66.9 14,078 -84.4 N.B U.S.V.I reported figures in this table are Hotel
Registrations whereas their reported Stay Over totals are
St. Maarten * Jan-Dec 54,514 -67.1 9,364 -66.2 33,735 -63.3 8,812 -74.4 Air Arrivals.
Trinidad & Tobago *** Jan-Aug 43,111 -65.0 14,417 -57.6 14,891 -60.5 20,728 -71.5 N.B: Figures are subject to revision by reporting countries.
SOURCE - Data supplied by member countries and
Turks & Caicos Islands Jan-Sep 110,298 -64.0 14,867 -53.3 3,436 -78.4 3,380 -79.1 available as at February 8, 2021Excerpts of the report
Editor’s Note: When mulling how to approach Skift’s annual Megatrends exercise, which traditionally looks at the upcoming year, we figured that 2021 could be another tumultuous period given uncertainties about the uneven global distribution and effectiveness of the vaccines, and the prospects of ongoing spikes and dips in coronavirus outbreaks. At the least, even under the most optimum circumstances, it would be a year of recovery and wound-licking for much of the travel industry that outlasted 2020. We therefore decided to write our best Megatrends forecasts of what travel would look like in 2025, five years from now, when perhaps a sense of a new normalcy would have a chance to settle in. Although we realize that given climate change variables, political strife, the chance of fresh pandemics, and economic dislocations, there’s no guarantee that 2025 will bring stability. In reflecting about the likely shape of 2025, we even speculated about deals that might happen if that particular Megatrend is solid. Given the variables, for many of our individual Megatrends within this publication, we also included a counterpoint argument, just in case our prognostications turn out a different way. After all, each of these will be debated back and forth, and we hope you participate in that dialogue with Skift about the future of travel. So for the sake of this year’s Megatrends, imagine you are waking up and reading them in 2025.
TRENDS
• Travel’s New Cadence Is More Deliberate, Introspective and Soulful
• Backyard Tourism Is On a Pedestal But Far-Flung Exploration Recovers
• Hotels Are Back With Big Upsides for Owners Who Stuck Out the Hard Times
• Accor Partner Trend: Pushing the Boundaries of Lifestyle for the New Era of Travel
• Work From Anywhere Spurs a New Type of Business Travel
• Asia Bulks Up Even As It Looks Inward
• Travel Sectors Get Scrambled, Definitions Blur
• The Subscription Model Becomes a Staple of Travel Industry Renewal
• American Express Partner Trend: Brands That Embrace Agility and Flexibility Will Be Equipped for the Future of Travel
• Humbled Airlines Back Away From Any Brash New Ventures
• Cruise Lines Partner, Prune and Take Refuge In Their Private Islands
• The Rise of Global Mobile Wallets Upends Travel Payments
• DCT Abu Dhabi Partner Trend: How Abu Dhabi Is Adapting Its Events Strategy
• The Robots You See and the Ones You Don’t Accelerate Automation
• More Mainstream Short-Term Rentals Cope With New Headwinds
• Product Mediocrity Seeds a New Era of Travel Industry Disruption
• Renewed Strength Matters in 2025 Note: In this tidbits the
trends presented are
highlighted in purpleMEGATREND TRAVELING WITHOUT WRECKING THE PLANET
Battered by years of a stubborn pandemic, harsher hurricanes, more severe “Asking questions” is important, Poon Tip advised. “Deciding between hotels,
typhoons, sporadic wildfires, and escalating global temperatures that have and between cruise ships. There are better ones, and between luxury hotels.
melted glaciers, flooded coastal zones, and parched entire geographic Deciding between operators, I mean, finding out where your money is going
expanses, the travel industry — and travelers — have been shocked into a because you have so much power when you decide to travel and spend
new consciousness in 2025. money in another economy.”
The oldest millennials are approaching 40 years old now, and have spawned All of this doesn’t mean making the travel experience less exciting, but it
the more globally spirited Generation Alpha. Millennials, along with their becomes in some instances a less flashy way of viewing and traveling the
younger Generation Z counterparts, with the oldest among the latter group world — or your own region or country — with an emphasis on safety,
now in their late-20s, were renowned before Covid-19 as being price- sustainability, and profound experiences while getting from point A to B
conscious, experience-seeking, and destination-indecisive. Find them a deal without wrecking the climate and local quality of life in the process.
and a potentially memorable experience, and boom — the vacation was on.
A somewhat leaner and more consolidated travel industry, wracked by the
But in 2025, many members of these maturing generations have turned things coronavirus contagion and the extended period of economic dislocation and
around, and become destination-decisive. pain that ensued, in 2025 simultaneously influences and gets shaped by this
Megatrend, which embodies a newly empowered destination-decisiveness
That means that a growing segment of travelers — not everyone, for sure — and purposefulness. As part of this new decisiveness, visitors are embracing
is now mulling the relative impact their trips may have if they opt for Botswana the slow travel movement, soaking in fewer attractions in their wanderings
instead of Barcelona, or choose to ride the rails closer to home instead of and getting more out of each. They’d rather make stops along the way, and
flying an Airbus A380 to a congested airport outside a teeming metropolis. take an unanticipated turn toward a small village that just came into view,
This more-conscious decision was already happening among Millennial and instead of speeding 80 miles per hour along a highway to add another tourist
Gen Z travelers years earlier as seen in the chart on the next page. magnet to their refrigerator collections.
The seeds of the change were already simmering in the midst of the Overwrought destinations have increased limits on big-cruise ship arrivals,
pandemic in 2020. In a Booking.com global survey of travelers that summer, capped or banned Airbnb and other short-term rentals, and invested in
60 percent of respondents said they would use an app or website that marketing under-visited but enticing cities, towns and villages that aren’t
recommended itineraries where tours would have a positive impact on locals. tourism magnets. Lisbon incentivized short-term rental owners to rent their
At the same time, 51 percent claimed they would change their chosen travel properties to the municipality to use for affordable housing instead of tourist
destination and head instead to a less-popular one if that decision would have stays, and more than a handful of major cities in 2025 have followed the
less of an adverse environmental impact. As G Adventures founder Bruce Portuguese capital’s lead. That has helped tamp down real estate
Poon Tip described it five years ago in 2020 at a Skift conference, speculation in major urban centers, and quieted some of the neighborhood
conscientiousness in personal decision-making is essential for changing the convulsions that came with the daily spasms of tourist arrivals and out-of-
world, and diminishing any deleterious impact of travel. control house parties.TRAVELING WITHOUT WRECKING THE PLANET Continued Some travel businesses and destinations have found a receptive audience among travelers eager to visit previously unheralded locations. Although voluntourism before the pandemic tended to be a niche affair, the incessant spikes of global climate calamities that put peoples and nations under duress, have spurred an intensified traveler desire in 2025 to depart a destination only after contributing to making it a better place rather leaving it as a mountain village or urban neighborhood more beaten down. It didn’t take technological wizardry, but many online travel agencies and tour operators now offer bookers the option of dedicating a day or two of their trips to helping construct a local water purification system, plant trees along shorelines devastated by hurricanes, or immersing themselves in local languages and cultures. THE SPLINTERING EFFECT However, the new world order in 2025 is certainly not a Utopian patchwork of tolerance and feel-good vibrations. Far from it. In many ways, a surge in hyper- nationalism, xenophobia and neo-fascism within some countries toward its own citizens, and outwardly toward refugees, foreigners, and other nations has rendered travel more splintered, and the globe more fragmented, turbulent, and disconnected. Travel bubbles, or trip corridors, that some countries inaugurated in 2020, 2021, or 2022 out of pandemic concerns have morphed in 2025 into semi-permanent tunnels of intolerance, restricting admittance to the privileged, or to favored nationalities, ethnicities, and religions. Intermittent political tensions have turned regions and countries into “go” or “no-go-zones.” Visa restrictions have become so tight and onerous in some destinations that would-be international travelers don’t even bother to consider certain visits, and opt instead for less-exotic regional or domestic destinations, which have increased in popularity post-pandemic regardless. All of this fragmentation has occurred despite the fact that the profile of the global middle class looks considerably different now in 2025 when compared with a half- decade earlier. Travelers’ relative buying power has shifted even further eastward toward China and India now, but Russia and Brazil played catch-up, as well. For example, gross domestic product per capita rose nearly nine times to roughly $25,300 in China over the five-year span, five-fold to $9,560 in India, and it would more than triple to $33,850 in Russia, as a Bloomberg analysis of the International Monetary Fund’s World Economic Outlook had pointed to. Brazil’s gross domestic product per capita doubled, but slightly trailed the comparable growth rate in per-capita GDP in the United States.
When China doesn’t ban certain travel destinations, such as it did with South In other words, in 2025, despite the fact that the short-term rental recovery
Korea way back in 2017 in a dispute over stationing U.S. missile defense eclipsed that of the traditional hotel industry coming out of the pandemic,
systems there, and when other countries don’t carry out similar prohibitions, the hotels are back — although somewhat transformed. The growth of business
balance of power among the globe’s most popular travel destinations has travel has slowed, and hotels that formerly dedicated themselves to road
shifted in 2025. The anti-foreigner rhetoric that blunted U.S. visitations during warriors have tilted toward vacationers, but make no mistake that hotels are
the Trump era has abated five years later because of the change of presidential back.
administrations. Due to the increased spending power of the Chinese and
Indian middle classes, in particular, their travelers have rewritten the global SHORT MEMORIES
most-visited countries’ list based on their own most-favored nations.
Coronavirus vaccines not only turned back a deadly virus, but they also
Many observers have pointed out that innovation almost reflexively follows seemed to have erased many travelers’ memories in 2025 about the days
crises. The Roaring 20s in the United States followed the Spanish flu of 1918. five years earlier when they were fearful of flying alongside a potentially
Likewise, the Covid-19 pandemic of 2019 and 2020, with its extended contagious seatmate, or the years when they refused to enter packed hotel
lockdowns, dislocations, death and general feelings of malaise, not only gave elevators.
way to an enhanced appreciation for family, friends, relationships, everyday
normalcy, and the right to travel in 2025, but it also led to a period of innovation, In 2020, Expedia Group CEO Peter Kern scoffed at the notion that residents
just as the 1920s did with its wave of autos and automation. and travelers would abandon big cities because of coronavirus, and in 2025
we can say he spoke the truth.. Kern said Expedia hadn’t found anything to
Digital services from food delivery to the Alibaba and Amazon retail platforms, indicate “there’s a long-term behavioral change” that would grow out of
and work-from- anywhere freedoms, became ingrained in 2025, as did Covid-19. He recalled that after 9/11, pundits predicted that travel would
livestream marketing, an expanded assortment of virtual experiences, and self- change “forever,” and New Yorkers would abandon New York City in droves,
driving cars on well-worn and less-complicated routes. A humbled global travel but that never materialized.
industry that was shorn of innumerable weaker companies, and battered during
an era of Covid-19 and overlapping and intensifying climate calamities, seized “I am not one to believe that anything about what we’re going through will be
opportunities to fill market gaps, and got more imaginative and creative about permanent,” Kern said.
new ways to capture the 2025 loyalties of the new self-directed traveler. Yes,
many travelers in 2025 seek a more intimate, meaningful, and soulful trip At the same time, while local drive vacations as an alternative to long-haul
experience flights, and trips to more isolated destinations and properties where travelers
could exert more sanitary controls surged during the 2020 coronavirus
“In terms of — at the biggest macro level from a traveler perspective, how do I outbreak, the hotel industry and mass tourism picked up where they left off
think things are going to change in travel in a two-, three -year time frame?,” by 2025.
Kaufer said in 2020 in a call with financial analysts. “I got to say not much.
People love to travel. It’s more and more of the younger generation who is Barcelona is as crowded with travelers as ever although wildfires in Napa
growing up, looking for experiences in travel, always rate super highly on what Valley, California meant tourism never recovered there. Mass tourism,
people want to do. So the demand, I believe, will be there.” though, tends to have a very short memory.MEGATREND
Leisure travel as a whole in 2025 is close to surpassing historic 2019 levels.
However, the global and regional patchwork responses in public health protocols
and border restrictions back in Covid times means that this peak remains uneven
across the world. It’s true that domestic tourism has taken on a sexier allure for
the past five years, as travelers continue to invest part of their vacation time in
backyard tourism. Less-stringent health requirements, such as the absence of
domestic vaccine mandates or digital health passes, help push this local travel
demand.
Travelers seek out coastal drive-to destinations, as well as wellness and outdoor-
oriented rural areas, and bespoke cultural experiences within 100 miles of home.
Domestic tourism isn’t a new concept for regions such as Europe, Asia and
Australia, but it sits on a more solid pedestal there, as well.
In the United States, tourism offices have built a more collaborative relationship Cities, in particular, bounced back in 2025 quicker than what many
with local communities as a result of having to seek revenue sources beyond predicted. Public health concerns pushed some cities to rethink mobility
international tourists. As seen in the chart on the left, trips to beaches and while tackling pollution and climate issues. They lured new travelers and
national parks were sought-after domestic destinations coming out of the Covid enticed residents to return with enhanced urban living spaces, improved
crisis. air quality, and technology innovations.
Political instabilities around the world ranging from racial-justice protests to trade For example, Paris decided to eliminate 75,000 parking spaces and
tensions further cement this domestic leisure travel trend. The ravages of climate convert them into public recreational spaces. Milan’s Open Streets Plan
change in coastal areas have also contributed to dissuade international travel. prioritized cyclists and pedestrians, as did Bogotá and London, among
Not least among factors is the heightened sense of community that emerged from others. Addis Ababa engineered a green turnaround with a slew of
pandemic times. Many travelers are more conscious of buying locally and outdoors parks that double as entertainment venues.
splurging in their own backyards to support small businesses, which continue to
recoup from an historic four-year downturn. Way back in 2020 at the Skift Short-Term Rental and Outdoor Summit,
Sonder Chief Financial Officer Sanjay Banker predicted rightly that “urban
COUNTERPOINT: Foreign cities in far-flung destinations have not lost their travel is going to bounce back in a big way and that the demise of the city
allure. If anything, the pent-up global travel demand from years of Covid backyard argument is overrated.” Indeed, as Banker pointed out, “cities have been
confinement continues to manifest itself, even surpassing domestic travel hubs of activities for thousands of years.”
demand. That’s a relief to many destinations because domestic travel often lacks
the power of international tourism to generate revenue.Skyscanner’s search results immediately following the multiple Covid vaccine announcements in late 2020 and Skift’s Recovery Index at the close of that Covid-laced year were predictive as well, pointing to big international city searches such as Munich, Madrid, Paris, and Amsterdam, and showing an early rebound in travel to United Arab Emirates and Latin American destinations, respectively. Those who crave far-flung outdoor adventures, the arts, food, and local flavor know that cities are hotbeds of cultural exchange, and give their countries distinct attributes. Cities in 2025 recaptured many former residents who had escaped to the suburbs or less- populated areas after Covid, but were eager to experience all the amenities that only cities offer. Flexible refund policies and a wide availability of travel specials fed globe-trotters’ urge to return home with epic memories of the Maldives or South Africa. That couldn’t easily be snuffed out. Nor could the hunger for offbeat experiences to look back on later in life. “The fact that we saw people being unruly in their desire to travel [during Covid] — because people were actually taking risks in order to travel — that tells us something about the nature of travel now,” said Simón Suárez, former president of the Caribbean Hotel Tourism Association and head of institutional relations at Grupo Puntacana. What has changed when it comes to international bucket lists, however, is the desire to stay longer and explore slower than in the past. The slow travel movement comes with an increase in consciousness about climate change and environmental impact from both the travel industry and travelers, in addition to continued vigilance about health and safety precautions. Long-haul travel has become more seamless as airports continue to go contactless. Technology advances in immigration processing run the gamut from facial recognition to e-visas, including in regions that were once technologically challenged, such as the Caribbean.
MEGATREND HOTEL SERVICES ON THE CHOPPING BLOCK
The hotel industry is back in 2025, but it looks considerably different than it did Despite the pandemic pain, some hoteliers salivated and took advantage of the
five years earlier. There is no doubt the pandemic brutally ravaged the sector. pandemic-driven ability to accelerate cost-cutting initiatives that were
Hotel portfolios in large, urban centers or those focused on meetings and unthinkable in pre-pandemic times, especially in U.S. and European cities with
events may not have shuttered for good — but they certainly traded hands.
an organized labor presence.
Owners and investors who lacked the resources or had no stomach for the
turbulence of an extended recovery period, got out early in 2020 and 2021, but
those who persisted were in store for a significant upside. Hoteliers marketed contactless features like mobile check-in and checkout as
safety initiatives to limit potentially unsafe interactions between staff and guests.
“There’s going to be an opportunistic play for someone willing to carry those But post-pandemic, these are as common to the hotel industry as mobile
hotels for the next year or two,” Acres Capital CEO Mark Fogel told Skift in boarding passes are to the airlines. Hotels cut labor costs tied to heavily staffed
2020. front desks.
As seen in the chart on the right, U.S. hotel occupancy and average daily rates
were severely impacted in 2020. But on the owner side, the recovery’s slog The most severe cuts came to housekeeping, which was the biggest labor
paid off for some. Years of cost cuts, including streamlining operations and expense for many hotel owners. Hotel companies quickly eliminated daily room
reducing employee rosters, delivered an industry with significantly higher profit cleanings at most properties during the pandemic as an alleged safety
margins in many cases compared even to those seen in record-setting precaution. Labor unions, such as Unite Here, balked at that decision, and
performance years leading up to the first coronavirus case. claimed it was simply a way to cut costs rather than promote safety.
While convention hotels still operate, they are no longer built at the same rate
as they were pre-pandemic. Instead, owners of these spaces rely on
alternative-use arrangements like work-from-hotel programs to generate
revenue between the occasional major event.
Companies that decided to reduce their office footprint during the pandemic
rely more on these surviving convention hotels to conduct quarterly meetings,
which is an upside to the properties that made it. Some of these businesses
even use the work-from-hotel model in select cases as a way to provide a
reliable, private office space in lieu of longer arrangements with coworking
entities such as WeWork.
But this is still a fairly limited revenue stream and works best when the hotel
works in partnership with a coworking company such as the way Proper
Hospitality partnered with Industrious.In a trend that started years before the pandemic, the hotel industry again Airlines stepped up, too. A thriving charter market took hold, while
took a page from the airline sector’s playbook in rebuilding after the international carriers launched subsidiaries to meet the requirements for
pandemic. Services that were once included in the room rate are now discerning clients and higher standards.
unbundled and charged on an a la carte basis, especially in economy-scale
hotels. In the old days of 2020, remote-working specialists like Ethos and Outsite
operated on the fringes, and attracted digital nomads. Corporations would
Sure, guests grumble about the way things were, but they still flock to these occasionally bring in these specialists for team-building getaways, or an
properties for loyalty perks. That’s because competitors are likewise charging annual get-together.
the new fees, and many guests believe that hotels make for a safer stay than
unwieldy short-term rentals when it comes to cleaning and health. Not anymore. In 2025, a new breed of tour operator emerged, building
exclusive retreats in remote destinations for organizations that would
leverage them in the battle to land the best talent.
COUNTERPOINT: The hotel industry comeback would rely on corporate These offsite program perks became everything for a talent pool that now
travel and major events to kick back into gear, but that hasn’t happened so reached every corner of the planet.
far.
Sure, vaccines were widely distributed and the pandemic for the most part is
a thing of the past. But leisure travel still dominates in an environment where
many companies and event planners recognize the cost savings inherent in
virtual meetings and remote gatherings. People still fly in for vital business
meetings or due diligence trips — but at nowhere near the frequency seen in
2019. That has greatly hampered occupancy rate recovery, especially in
urban hotels.
Vacation travelers are back in full force, sometimes even more than pre-
pandemic levels, due to pent-up demand and lingering memories of 2020
shutdowns. But those travelers aren’t booking stays in hotels like they once
did. Hotel companies banked on travelers craving the familiarity of a major
brand coming out of the pandemic. Instead, travelers migrated toward having
the control of an entire home or condo through a short-term rental.
In a manner similar to hotels, companies like Airbnb also rolled out stringent
health and safety standards during the pandemic to allay fears of the virus.
That, along with the convenience of driving to a vacation home distant from
pandemic-spiking cities, rapidly accelerated the brand’s appeal to new
customers during the year, 2020, when it became a public company. Short-
term rentals from Airbnb, Expedia’s Vrbo and others became a viable hotel
alternative for both vacationers and even business travelers.MEGATREND
The abrupt digitalization of the workplace and office culture in 2020 led to a Hotel companies recognized the changing consumer appetite, and many
surprise boom in a somewhat new form of “corporate travel” in the following joined the short-term rental fray. Marriott’s Homes & Villas is no longer just
years. Remote employees around the world were increasingly required to attend a “very small part” of the company, as leaders at the world’s largest hotel
in-person company-wide meetings for team-building and collaboration. This company repeatedly said during its launch in 2019. Luxury brands like
helped offset those billion dollar losses many feared would hit due to video Four Seasons Hotels & Resorts have their own spin on short-term rentals,
conferencing. placing them as residences within the chain’s resorts, and other global
hotel chains expanded into short-term rentals especially as a way to tap
Some of the early signals came from short-term rental providers, which saw their into markets where a traditional hotel wouldn’t work.
average length of stay driven upwards by on-the-move workers.
This push for to focus on leisure travel, or vacationers, further tanked the
After the pandemic thrust workforces to stay at home, remote working took hold hotel industry as room rates plummeted. Hotel analysts warned hotel
and employees didn’t just prove they were as efficient as before, they exceeded owners to hold the line on rates, even during the pandemic era of low
expectations. Productivity soared. occupancy, since it is so hard to build up daily rates consumers got
accustomed to steep discounts.
Some organizations nostalgically held on to their city headquarters, while others
opted for impromptu satellite offices in other urban areas, centered around But with the cash cow of business travel not returning to pre-pandemic
colleagues’ needs. levels, hotel owners had little choice but to reduce rates to woo leisure
travelers.
WORK TRIPS REDEFINED This prolonged period of poor performance sparked a wave of hotel loan
Remote working became big business. External meetings successfully moved defaults and property closures. Major urban areas that once generated
online, boosted by advancements in virtual reality platforms. Then remote substantial corporate travel saw owners begin to convert underutilized
employees around the world were increasingly required to attend regular hotels into apartment or condo developments, and that alleviated housing
company-wide in-person meetings. In some countries it even became mandated shortages across many markets.
by law in attempts to address employee morale, company cohesiveness, mental
health concerns, and even physical wellbeing for a new generation that never
knew what it was like to commute to an office everyday.
By 2025, the volume of these work trips by all employees — and not just the
salespeople and executives — rivaled the record highs of 2019. All employees
were now business travelers.
Hotels initially picked up a lot of the post-pandemic slack, diversifying into new
brands to accommodate company-takeovers at their properties, and perfecting
co-working spaces and subscription packages, competing against the likes of
Citizen M and Mint House.MEGATREND
Looking back from 2025, we see that the pandemic catalyzed and sped up a COUNTERPOINT: In 2025, corporations rethought mission creep and
sector convergence that had been simmering for years. Fierce competition from portfolio sprawl, which had been reflexive reactions among some growing
superapps like Grab, WeChat, Line, and Rappi fueled the cross-selling spurt. out of the revenue crisis five years earlier. Executives were reassured that in
the midst of the Covid crisis, Airbnb's hot initial public offering validated its
Another factor: Making the most of marketing money. Many companies ran choice to focus on its lodging and experiences.. Airbnb had abandoned its
direct booking campaigns to optimize their marketing expenditures. So pre-pandemic ambitions of becoming an all-in-one travel booking provider by
corporate investors pushed the brands to add more products and services, adding flights and more. Other companies in 2025 rehabbed their way to
hoping to boost the average number of transactions per customer. simplicity, jettisoning distracting business lines.
Asset-light businesses, such as hotel groups and online booking services, Asia embraced the conglomerate model more than much of the world did.
found the shift straightforward to make. Showcasing the trend, Accor entered Yet pre-pandemic wind-downs at HNA and post-crisis financial at heavily
the ski resort and operation business via acquisition with a deal it saw fitting into peers tarnished the model's reputation.
its Live Limitlessly campaign. Marriott, for its part, acquired a significant fitness
and spa franchisor to increase how often consumers interact with its brands. Leveraging a brand by adding more offerings and types of operations can
Even before the pandemic, as seen in the chart on the right, the sound good in theory. But it often created a complex beast that was hard to
accommodations sector had expanded way beyond traditional hotels. manage in practice in 2025.
Online travel sellers fattened up. After Facebook spun out WhatsApp in Managers found it too hard to comprehend the drivers of operational
response to trust-busting regulators, Booking.com acquired it as part of "its excellence or fully grasp the levers that affect marketing performance when
mission to make it easier for everyone to experience the world." Trip.com Group an enterprise became diversified into multiple business models.
snapped up a major tour bus operator and began running tours where its Consolidation of traditional competitors to strengthen or hold market share
customers can use the Trip.com mobile app to listen to the voice of a recorded often proved a safer bet.
guide in their native language. Indonesia-based online travel agency Five years after the unprecedented revenue crisis of 2020, perhaps one of
Traveloka's first move after going public on the stock market was to buy a the lasting lessons was it is difficult to make an elephant dance. Better to be
cruise line from Genting, given the surging interest among China’s seniors in a lynx.
gambling-themed cruises.
For years, the travel sector locked itself into siloed thinking, with executives
from, say, hotels, living in a bubble and not adapting an expansive mental
framework to see related opportunities elsewhere. But a wave of developments
in computer programming has made it easier to aggregate products. This trend
can make it shrewd for a brand like Hilton Worldwide, which has millions of
loyalists, to use its heft to upsell guests on vacation homes, experiences like a
diving excursion, or perhaps even glamping. It's better to flex your brand's
muscle than wait and watch as some platform players like Amazon, Google, or
Alibaba sweep in, and steal your customers with some travel offering.MEGATREND STACKING PERKS
In 2025, the subscription model, with its recurring payments, is a mainstream The travel sector already had many membership services that aimed to smooth out
business model option for many travel companies. The vast promise of the pain points of business travel. But membership needed more privileges.
monthly or annual payments as an alternative to one-off purchases has been
gaining traction. Consider how, in retail, Amazon for years benefitted not only from its Prime program’s
monthly fees, but also from the extra visits to its site that the subscription loyalty plan
In the past five years, lodging brands Selina, Oasis, and CitizenM each generated. The additional visits translated into more shopping. Similarly, travel brands
debuted a plan that lets remote workers hopscotch from property to property used subscription-based membership services in 2025 to boost overall customer
for monthly fees. You can expect other brands across travel sectors to sign- interactions by adding benefits.
on to the concept, too. Some will seek steadily paying customers with
subscription solutions that provide surprises to wow customers. Businesses By 2025, many travel brands were likely enhancing their paid membership programs
may stack perks on top of their new mainstay subscription offering. And the by stacking many more perks on top of basic offerings. Airport lounge membership
subscription model may enhance the environmental sustainability that a programs, for example, could add benefits such as vouchers for short-term parking at
chunk of travelers are now demanding. airports, access to speedier airport security lanes powered by biometric identity
companies such as Clear, or meeting space booked through services such as
Peerspace.
SURPRISES
• Like the beer-of-the-month club that spotlights rare brews instead of SUSTAINABILITY
merely shipping big-name booze brands, the best leisure travel
subscriptions in 2025 unearth delightfully surprising experiences, and not Many travel companies wanted to up their environmental games. But they often used
only offer trips. vendors that were wasteful. Happily, subscription schemes can overturn old business
models that relied on service contracts based on planned obsolescence to make a
• "Say you're staying at a vacation rental and the chef comes to the house profit.
and prepares a gourmet dinner for your extended family," said Amy
Konary, chair of The Subscribed Institute, a think tank about the Some companies will add subscriptions to their mix of revenue streams, while others
subscription economy that's run by tech firm Zuora. "That's the surprise will use subscriptions as the main offering, like a Netflix for travel. An example of the
and delight you crave as a traveler." latter is London-based BeRightBack, where travelers pay a monthly fee in exchange
for three package holidays, where their destinations, flights, and hotels are essentially
• A case in point is Inspirato Pass, which lets travelers book serial stays at chosen for them. Bratislava, Slovakia has been among those choices. Konary was
many of the hotels and vacation homes that are part of Inspirato's luxury prescient about the coronavirus postscript. "Subscriptions can help incentivize more
hospitality club. The startup offers properties with desirable designs and sustainable practices," Konary said. "That's important because once the travel sector
locations. But more importantly, it also provides perks that vary by gets out of the coronavirus crisis, it will face the climate crisis."
situation, such as champagne on arrival or the suites with panoramic
views.MEGATREND THE GREEN YEARS
Years after overtourism became a pressing issue, followed by the cruise- What’s for sure? 2025 is greener. “More people are willing to be sensitive
shaming trend that emerged post-Covid, crowds are back on megaships in to environmental issues and not rebel at the notion that perhaps there’s
2025, and cruise lines returned to generating billion-dollar earnings. But the something wrong with cruising and it has a negative effect on the
nature of the cruise industry’s business model had to undergo major shifts to environment,” said Jim Walker, a Florida-based maritime attorney who runs
make that happen. Cruise Law News. One of the biggest environmental fights that cruise lines
continue to face in 2025 is their use of scrubbers, long found to cause
The world’s biggest cruise companies have been recouping their extensive cancer-linked discharge in ports, pollute waters, and otherwise negatively
losses up until this point by merging with other lines for greater efficiency. The impact marine life.
result? Big ships offer roller coasters on their decks and additional outsized
activities continue to surface to help drive up onboard revenue. Ports of call are Port citizens in North America and Europe, in particular, with localized
fewer, as cruise lines reduce their dependence on them, and instead focus on movements and solid political partnerships, are making more headway in
the growth of their private islands, particularly in the Caribbean. the passing of environmental legislation banning scrubbers. But the
influence of broad-based coalitions such as the Global Cruise Activist
Why offer shore excursions when one can sail to one’s own private beaches Network, born during Covid, remains uncertain.
while keeping 100 percent of the revenue in cruise coffers? Besides, the lines
still lure cruisers with the promise of safety bubbles on these private islands, “If past history is an insight, the activism will continue losing some of its
and many prefer staying put at sea rather than venturing into multiple ports. potency,” Klein said, explaining the power of the cruise industry to push
back against these efforts. After all, Key West, Florida’s big win against
Destinations that were once heavily dependent on big ships are dealing with mass cruising back in 2020 resulted from decades of militant activism that
fewer port calls, and focusing on niche offerings from smaller lines. These began in 2003.
niche cruise players emerged from the cheap post-Covid divestiture and sale of
older ships that debuted in the 2000s. “It’s a repeat of what we saw in the Meanwhile, 2025’s headlines report that the cruise industry’s major players
1990s, when there were some upstarts bringing on vintage ships and offering are making financial gains. Those funds will come in handy for the heap of
niche kinds of products,” said Ross Klein, a veteran cruise industry expert and looming environmental bans and regulations, potentially signaling the
professor at Memorial University of Newfoundland. beginning of the end of megaships
The travel bucket list isn’t going anywhere — port cities that faced overtourism
pre-Covid continue to face the conundrum of whether to reject tourist crowds in
2025 after suffering a debilitating multiyear downturn. They’re using innovative
ways to control the crowds, such as higher day-tripper fees like the ones
Venice approved back in 2020.MEGATREND
Superapps, social media and cryptocurrencies collided in 2025, with Global distribution systems stepped up. As airlines took more control of
established travel technology players and a new wave of payment service their own direct retailing, the distribution systems built upon their technology
integrators nearly stripping out the last remnants of friction for many and experience to rapidly grow their presence in financial services.
consumers.
Airlines and hotels also came up against the demand for mobile payments.
The superapp concept spread well beyond Asia. Large swathes of the “Fifteen to 20 percent of customers will leave the booking experience if their
population were stuck in their homes during the 2020 pandemic, and that preferred payment method is not accepted, whether it’s credit cards or
necessity of shopping online, and ordering takeaways, caused mobile alternative forms of payment,” said Kristian Gjerding, CEO of CellPoint
payments to soar. Digital, back when helping to integrate Apple Pay into Southwest Airlines’
services.
Inspired by WeChat Pay, more social media firms designed their own
currencies. Facebook’s Diem cryptocurrency spurred a new market of
Instagram influencers selling directly on the platform, boosted by livestream
marketing. It was only going to go one way, as foretold five years earlier. The year
2020 “is the year that alternative payments will surpass cash and cards for
Smartphone makers and operating systems grew in the payments field, travel industry transactions,” said Bart Tompkins, managing director of
too. Apple Pay accounted for 5 percent of all card transactions worldwide in payments at Amadeus.
2020, and doubled that over the next five years. Also working in the
smartphone’s favor was biometric recognition, with features like retina By 2025, travel companies had upped their game to accept a level of
scanning giving mobile wallets heightened levels of authentication. alternative payments, via mobile wallets, they’d never imagined in 2020.
Another pandemic byproduct was the growth in contactless payments. A
Skift and Oracle Hospitality survey back during the pandemic found that
contactless payments, followed by digital room keys, and then digital
messaging services were the top factors making travelers feel more
comfortable when staying in a hotel, as they allowed for easier social
distancing.
For the business travel sector, the combination of virtual payment cards
and mobile wallets gained further ground in 2025.
As a result, these changes pressed the travel industry into accepting a
range of emerging mobile wallet payments. And brands that tapped into this
prospered.MEGATREND
The year 2025 hasn't seen widespread adoption of Jetsons-like, humanoid robots. Yet many travel sector workers are trembling as they see various technologies pick
up the pace at which they automate some work tasks. The 2020 pandemic prompted many companies to computerize many processes to cope with reduced staffing.
The crisis accelerated the digitization of customer interactions by about three years, according to McKinsey & Co. Yet during the recovery, many companies often saw
little need to add back human labor. Chinese hotel groups Huazhu and BTG Homeinns went so far as to invest in 2020 in ExcelLand, a Shenzhen-based manufacturer
that makes the robots they use to deliver food by room service.
Formulaic or highly structured physical activities are seeing the most upheaval.
After authorities approved the use of autonomous vehicles in controlled settings,
self-driving mobility scooters in airport terminals reduced the need for workers to
push physically impaired passengers in wheelchairs. Meanwhile, drones and
robots slashed the security forces needed to patrol airport perimeters.
As seen in the chart below, coming out of the pandemic installing a variety of
contactless tech services. The "robots" you don't see, such as artificial
intelligence and machine learning, can be just as disruptive as the ones you do.
Jobs involved in collecting and processing data likewise are taking a hit from
automation.
Many hotel groups that slashed their revenue management teams in 2020 opted
to use software for setting rates and managing room inventory as the crisis
ebbed. While not perfect, the software came out ahead more often than not when
performing certain revenue management functions.
Some travel companies reacted to the rising level of automation by investing in better training and education for their workforces. The pandemic accelerated a
trend of more education happening online. Some companies supported efforts by organizations such as Typsy and Hosco to help enhance the capabilities of
workers using a mix of gamified and mobile-first video tutoring, and virtual and augmented reality to create simulations for practicing skills. The multi-decade trend
in automation has at least one upside for workers. "Automation drives productivity increases that raise total income in the economy," noted an MIT report in 2020.
Some of that additional money will be spent on more frequent and distant travel, benefiting the sector, and the employees who serve itYou can also read
