Travel guru for many years now, I have seen the travel industry wire adapt in so many ways. As you already know, we now live in a world with instant and infinite amounts of information, right at our fingertips. Like everything else, the travel industry has adapted, grown and cultivated a new identity with our present day world of information. Until beaches start disappearing and people can be teleported across continents, there will ALWAYS be the want and need to visit our regular and new destinations.
The travel industry plays a substantial role in the global economy. During 2015, the travel industry wire forecasts global GDP to grow by 3.7% and employment by 2.6%. This demonstrates the sector’s enduring ability to generate economic growth and create jobs at a faster rate than the global economy, which is due to grow by 2.9% in 2015. By the end of 2015, the Travel & Tourism sector will contribute US$7,860 billion, 10% of global GDP, once all direct, indirect and induced impacts are taken into account. The sector will account for 284 million jobs, 9.5% of total employment, or one in eleven of all jobs on the planet. By 2025, the global travel & tourism sector is projected to contribute 357 million jobs and generate $11.4 Trillion dollars. Ask your favorite travel guru and he will show you the various components all contributing to these massive amounts. Let’s check out what the travel industry wire says:
Among all the sub sectors of the travel & tourism industry, Hotels is one of the biggest fragments. The travel industry wire explains that hotels generated a global of $457 billion dollars in 2014. Your travel guru has most likely coordinated a recent trip within the Intercontinental Hotels Group. The company contributed the highest revenues, earning $22.8 billion dollars. In the United States alone, the total revenue within the hotel industry climbed to $163 billion dollars. The majority of tourists visiting the United States of America (65.1%) choose to stay in a hotel, where the average daily is a healthy $121.30.
Although the major corporations, leading sector, seem to always changing names and planes, the industry cultivated a whopping $783 billion US dollars in 2014. Your travel guru may have whispered about some of the airlines not performing, but the industry continues to grow at rate of 7.4% every year. The travel industry wire indicates that Europeans, Americans, Chinese & Brazilians combine for the highest market contributors.
Cruises have steadily become a popular choice of travel the past few years. These are an easy sell for your local travel guru… The luxurious ocean liners, offering food, fun & music for the entire family have created a loyal gathering that continues to grow. Due to the growth rate of 6.55% every year, Cruise lines have postured their company growth strategies, by building larger capacity ships, ship diversification, more local ports and more destinations. The travel industry wire indicates that the average cruise traveler spends approximately $1728.00 every year, with over 22 million people jumping on the floating palace. The cruise industry contributes about $39.6 billion dollars in 2014, and is poised for a solid 6-7% increase.
Online Travel Market
Any travel guru, coupled with the travel industry wire statistics, will tell you that the online travel industry has EXPLODED over the past 5 years and will only continue to skyrocket. As more and more people use smartphones and as these smartphones continue to develop into personal super computers, the more information we have, the more we want. Online travel revenue reached $340 billion dollars back in 2011, worldwide and 39% consisted of American bookings. Obviously, the deluge of data & information has contributed to the online travel industry, but hotels and hotel broker websites have been the main proponents to this boom. As everything turns to online information, bookings, etc… the travel agencies, travel gurus and everyone associated with the industry has jumped in. Rarely do you see a corporation dependent on the travel & tourism industry, that hasn’t adapted to the online market.