Strong regrowth is being experienced in the travel industry. Reasons for this growth include a new trend called revenge travel, post-pandemic, and the devaluation of currencies in other parts of the world which has made travel less expensive for USA, UK, and European residents. Leisure travel has increased each year since 1990 and luxury travel, which is growing at an estimated 5% annually, is one of the fastest-growing segments of the travel industry. Additionally, there has been a dramatic increase in the prevalence of a younger generation entering the luxury travel market.
According to new statistics from GlobalData, the youth segment will drive luxury travel in the post-COVID-19 world. They are the ‘Instagram’ generation who want to take more risks so they can experience that ‘wow’ factor. Something that will take their breath away and they can afford it now.
The global travel and tourism industry’s post-pandemic recovery is gaining traction as pent-up demand for international travel rekindles. According to GlobalData’s latest forecasts, on a global scale, international departures will reach 68% of pre-COVID levels in 2022.
This is expected to improve to 82% in 2023, and 97% in 2024, before fully recovering by 2025 at 101% of 2019 levels.
The younger travellers made up of Millennials and Gen-Zs are looking for brands with a conscience, companies that demonstrate corporate and social responsibility and brands that genuinely embrace environmentally responsible practices. They are a generation that lives in a state of mindfulness, connected to and aware of their impact on the planet. This translates into responsible tourism, offsetting carbon footprints, and choosing service providers who can meet these criteria.