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Set-jetting, Forest Bathing, and Hush Trips: 20 Innovative Tourism Business Ideas and Trends for 2023

In This Article: Trends to Inspire Your Tours and Activities

Top tourism trends of 2023.

It’s that time of year again to ask ourselves, “What’s new, cool, and innovative in tourism?”. We’ve compiled a list of new, innovative tourism business ideas for 2023 so you can find your niche. 

The travel and tourism industry is in a state of constant flux, never more so than in the last few years. Every change and new trend brings with it an opportunity for tour operators to deliver what their customers old and new want—as well as add new tours and experiences they don’t yet even know they want. 

  As countries began to ease restrictions, 2022 saw the travel industry rebound from 2021 and 2020. Despite new global challenges appearing during 2022 and continuing into 2023, including the Russian-Ukraine war and the global economic fallout, the most important trend of all is that people still want to travel and are even budgeting for more travel.

As one travel professional interviewed for TravelAge West ’s article on travel trends put it: “It’s almost like travel went from a discretionary spend to an essential spend for a lot of people.”

Despite all that is still happening in the world, around the industry there is a continued air of optimism in 2023. Travel Pulse noted that “ while 2022 was the year of recovery [recovered almost 60 percent of its pre-pandemic levels], 2023 is poised to be the year of reinvention.” Booking.com research prompted them to label 2023 as a year of “creative imagination of travel.” Skyscanner’s Travel Trends report concluded that “Post-COVID restrictions, travellers continue to prioritize adventures abroad and embrace travel freedoms with relish.”

Here are some of the latest major trends and innovative tourism business ideas to keep an eye on and potentially incorporate into the tours and travel experiences you offer. We’ll also highlight a few of the more unusual and niche trends that could take off during 2023 or in the longer term, or just inspire some “out of the box” thinking when looking at your own products and services.

1. Transformational trips

A buzz phrase you’ll hear a lot in 2023 is “transformational retreat.” This refers to travel experiences that cater to people who want to undergo a significant personal or spiritual transformation. Retreats and activities include meditation, yoga, therapy, workshops, and other experiential practices. Most promote self-awareness, personal growth, and positive change, typically taking place in a secluded and peaceful setting and led by experienced facilitators or coaches. 

Booking.com’s Travel Predictions 2023 report called these trips “peace and pleasure pilgrimages.” The report found that 42 percent of travelers want to focus on their mental and physical health, including retreats to smooth the processes of pregnancy and menopause.” A large proportion of travelers are interested in meditation or mindfulness retreats. Some retreats even take the word “trip” literally, catering to people interested in the potential therapeutic benefits of the controlled and supervised use of “magic mushrooms” and other psychedelics.

Innovative tourism business ideas:

• Beckley Retreats : Science-backed psychedelic retreats
• Explorer X : A tour operator dedicated to transformational trips
• Organic Tuscany : Organic cooking retreats in Tuscany.

2. Forest bathing and digital detoxing

Not everyone is looking for a transformational outcome from their vacation; many simply want to unwind and enjoy some quality “me time.” Wellness vacations have been a growing tourism business trend for some time, with demand accelerated by the pandemic. Tours that offer people the chance to pamper themselves and generally recalibrate are likely to be extremely popular for the foreseeable future.

Two specific innovative tourism business ideas that look likely to be especially popular in 2023 are “forest bathing” and “digital detoxing.” 

Forest bathing, or Shinrin-yoku , originated in Japan. It involves becoming immersed in nature to enhance physical, mental, and emotional well-being. It can be as simple as going for a long walk through a forest, or sitting by a lake and taking in the sights, sounds, and smells of the natural surroundings. Research has shown that forest bathing can reduce stress and anxiety, improve mood, and even boost the immune system and reduce blood pressure and heart rate. After the last few years we’ve all been through, it’s no wonder it’s proving popular with travelers.

In a similar vein, many people want to unplug and undertake a “digital detox” where you never need to ask for the Wi-Fi password because there is no Wi-Fi. They could be seeking respite from “doom scrolling” through social media and news feeds on their digital devices, or they just want a break from the glowing screens so prevalent in their day-to-day. Trips that encourage travelers to leave their devices at home will be popular, whether to wellness retreats that ban or discourage digital devices or an out-of-the-way destination that makes electronic communication extremely difficult.

• Gaia Wellness Retreat : Digital detox packages in a forest setting
• Sheldon Chalet : A luxury chalet in Alaska
• Talaysay Tours : A corporate tour to “connect to the forest with all your senses”

3. Off-grid and “survival” travel

One way to both commune with nature and unplug from your digital life is to go where no signal can reach you. Booking.com’s report found that 55 percent of travelers want to spend their vacations off-grid, resulting in an increase in tour operators offering trips to places where you can’t easily be reached. This could be a lodge in a remote part of a country or backcountry camping.

A related trend is the opposite of “glamping.” A growing number of travelers want to challenge themselves to survive in inhospitable conditions (you know… just in case), while learning new skills at the same time. In Booking.com’s report, 58 percent of travelers want to learn survival skills on holiday—everything from fire lighting and food foraging to the more full-on prepping for societal breakdown. Zombie survival camp anyone?

• Off Grid Travel : Company offering a variety of off grid accommodation around Europe
• Docastaway : Offers a desert island castaway experience
• Black Tomato : Offers a “Get Lost service” for people who want to challenge themselves

4. Hush trips, workcations, and micro-cations

Shhh, don’t tell anyone (especially your co-workers and definitely not your boss), but “hush trips” are on the rise. A hush trip is a secret trip taken by an employee without their employer’s knowledge. It’s all linked to the huge rise in remote working. People who work in a different city and country from their employer can theoretically do their work from anywhere. However, a hush trip can be slightly different from a “workcation,” another popular trend in the age of remote working, when an employer’s permission is often sought. On a hush trip, no actual work might be done; the employee wants a real holiday to escape the hustle and bustle of daily life and recharge, but they may not use their vacation days to take it. They complete their work and take a day or two off without anyone knowing (they hope,) perhaps logging in now and then for appearances’ sake. Or, they may travel somewhere and continue to work, while enjoying their downtime in a new place, again without telling anyone. 

Many hush trips are “micro-cations,” short trips often taken close to home, often at the last minute. The micro-cation trend has continued to grow for the last few years, as people look for quick, convenient, and often budget-friendly getaways that don’t require a lot of planning. 

When you combine the acceptance of remote working among many more employers with a large number of people who left the office behind and didn’t miss it for a second, you have an opportunity to create workcation and hush trip experiences for digital nomads and remote workers.  

• Selina : Opportunities for people to stay, travel, and work in interesting places around the world
• Ethos Remote Habitat : Remote working retreats
• Work from Hyatt : Packages for people who want to work from a Hyatt hotel

5. Traveling for “bleisure”

The travel industry does love a good old word mash-up to describe the latest trend. Hot on the heels of workcations, we have the related trend of “bleisure”—a name coined to describe the trend of business travelers tacking on some leisure time to the end of business trips. Where a workcation is often a longer trip designed around work, the growth of bleisure trips reflects the fact that as business travel bounces back, people still want as much vacation time as they can get. 

Although the economy could affect business travel in 2023 as companies cut costs, it’s worth keeping an eye on the business and conference market to target business travelers who want to carve out some vacation time to explore a destination on their own time.

6. Set-jetting

If you’ve ever wanted to visit the set of your favorite movie or TV show, you’re not alone. A top travel trend for 2023 is “set-jetting,” when travelers visit destinations primarily because they were featured in a popular movie, TV show, or book. According to research, 39 percent of travelers have booked trips to places featured on shows or movies ( Expedia ). While people have long been drawn to iconic movie locations, perhaps the earliest example of mass set-jetting was New Zealand’s tourism industry getting a huge boost after the country played a leading role in the “Lord of The Rings” movies. Fans of the “Outlander” books and TV series have also been making pilgrimages to Scotland to see the country that provides the backdrop for their favorite show.

People don’t just want to visit the actual physical set and filming location, but also just the cities or countries featured in a particular production. Keep an eye out for popular shows where the location is as much the star of the show as the actors, such as “The Crown” (England,) “Emily in Paris” (Paris,) and “The White Lotus” (Sicily), as they could trigger a surge in demand for particular locations and experiences relating to the shows, such as a themed tour.

• The Potter Trail : Harry Potter-themed walking tours in Edinburgh, Scotland
• Red Carpet Tours : “Lord of the Rings” set-jetting specialists
• On Location Tours : TV- and movie-themed tours in New York, Chicago, and Boston

7. Sustainable tourism and electric travel

“Ecotourism” has been on the rise for several years, and continues to be popular. According to Booking.com’s Sustainable Travel Report 2022 , 81 percent of global travelers say sustainable travel is important to them, and 50 percent are influenced by news reports on climate change when it comes to booking choices. 

So-called “ecotours” let tourists enjoy a vacation while also learning about environmental and sustainability issues in a particular location. Some enable people to do something tangible to help, such as volunteering to plant trees or help to restore habitats. Many travelers these days also seek out “small footprint” or socially-responsible travel. This may not be an eco-tour as such; it could just mean they favor tour companies that take steps to minimize the impact of their tours or incorporate a social responsibility element. 

Many travelers also want to stay in planet-friendly accommodations. According to Booking.com’s report, 57 percent of travelers prefer accommodation with sustainable certification. Another related trend to watch is road trips or other travel using electric vehicles. Some car rental companies are adding electric cars to their fleets, and VW has even built an electric version of their classic camper van, the ID Buzz. Within cities, travelers might want to do tours on electric bikes and focus on other more sustainable modes of transport rather than the traditional taxi and car hire approach. In the not too distant future, electric air travel may even become the norm thanks to companies like Eviation that are developing electric planes.

• Jumbari Family Safaris : Eco-safaris in Africa.
• OneSeed Expeditions : Responsible adventure travel around the world.
• EV Travel : Sustainable adventures in Iceland

8. Indigenous experiences

Countries around the world are making an increased effort to reverse past wrongs when it comes to treatment of Indigenous peoples, while also empowering Indigenous communities to take a lead in areas like travel and tourism. Canada is one nation going through a period of reconciliation as it faces up to and attempts to make amends for its colonial past. This has resulted in a huge growth in Indigenous-led travel companies, experiences, resorts, and accommodation options. 

Australia and New Zealand are also seeing a growth in opportunities for travelers to support and learn about Indigenous communities, histories, and cultures.

If you are an Indigenous entrepreneur, you may find great opportunities available with an increase in programs that support Indigenous tourism in these countries. For others, there may be opportunities for partnering with or supporting Indigenous-led businesses and organizations in your region.

• Worn Gundidj at Tower Hill : Tours offering the chance to connect with Australian aboriginal culture
• Road Scholar : Offers a New Zealand cultural experience, learning from local experts  
• Haida Style Expeditions : Cultural trips on Haida Gwaii on Canada’s west coast

9. Budget-friendly travel

The economic upheaval we saw through 2022 looks set to continue through 2023. Inflation and cost of living rises mean while the desire to travel is still strong, many travelers will still have at least one eye on their budget. This could mean more interest from thrifty travelers in camping, self-catering, and all-inclusive holidays. Activities and vacations that involve renting rather than buying equipment could also be more popular. 

Packlist : Camping gear rentals in Canada

Lazy Days : Camper van rentals in Ireland

Tampa Bay eBikes : eBike rentals on the Gulf Coast

10. Luxury cruises and upscale all-inclusive

While there will be a lot of budget-conscious travelers in 2023, there are also plenty of opportunities in the luxury travel market, including two types of travel luxury travelers may previously have turned their noses up at—all-inclusive trips and cruises. The luxury cruise market, as well as the cruise market in general, is set to rebound in style. CN Traveller reported on “ a new breed of luxury yachts from the world’s leading hotel brands,” including  The Ritz-Carlton Yacht Collection , which boasts  “ the most sophisticated and expensive civilian ship ever built in Spain.” Cruise companies like Scenic and Emerald Cruises are expecting high demand for spots on their luxury ships . If you are on a luxury cruise route, catering your activities to a luxury-seeking clientele, with prices to match, might be worth considering.

Cruises tend to be all-inclusive as standard, but there is also a growth in upscale all-inclusive vacations in general. These experiences offer the best of everything—food, accommodation, and experiences, all for a set (and premium) price. Ikos Resorts will open a new five-star all-inclusive resort in Mallorca in June 2023.

• Ama Waterways : Luxury river cruises in Europe
• Windstar Cruises : Luxury small-ship cruises
• Conrad Maldives Luxury Island : All-inclusive resort in the Maldives

11. Train travel

From the “Flying Scotsman” to the “Orient Express,” there are few more romantic ways to travel than by train. However, train travel is also increasingly overlapping with other trends in our list, as it becomes more popular as a way to travel more sustainably by reducing car and air travel, travel slower (unless we’re talking train travel in Japan) and for longer, and travel to more countries on the same trip.

Train travel can also offer scenic views, comfortable travel with spacious seats, sleeping accommodation for longer or overnight trips, and the opportunity to socialize with other travelers, and convenient access to city centres. Piggy-backing the trend toward more immersive travel experiences, train travel also lets travelers see more of a country while mixing with locals. Many countries and rail companies, especially in Europe, offer passes that let travelers visit multiple places in one trip without leaving the ground. If your tours and activities are near a popular rail route, look for ways to capitalize on the increase in train travel by catering to people who may want something to do for a day or two before they move on.

• Byway : Lets travelers build their own train vacation
• Intrepid Travel : Offers a range of “Train it” itineraries
• Glacier Express : Cultural and foodie train trips in Switzerland

12. Glamping

During the pandemic, with international travel off the menu for most people,  RV rentals spiked dramatically . Road trips made it easier for tourists to physically distance from other travelers in a post-COVID world, and “glampervan” vacations became popular. Glamping is still on the rise in 2023; the glamping market is expected to reach US$4.1bn in 2028 ( Stratview Research ). Glamping lets people enjoy sleeping and living in the great outdoors, but with a step-up in comfort from traditional camping. Glampers can stay in everything from classic Airstream trailers to yurts and all manner of other non-tent accommodation.

• Woods on Pender : Stay in a classic Airstream trailer on an island.
• Huttopia : Glamping getaways in Canada and the US 
• Under Canvas : Upscale camping in Moab, the Grand Canyon, and other spectacular locations 

13. Go solo or go social

While “travel bubbles” are no longer required for COVID-related reasons, group travel continues to rise in popularity. Hotels and tour companies increasingly cater to family groups or groups of friends who want to take a memorable trip together. For example, Atticus Hotel  in Oregon’s  Bunkhouse room for groups . It’s not just families making up for lost time with “reunion” or “celebration” travel. Tour operator Contiki noticed an upswing in demand for what they call “social travel” from groups of Gen Z-ers who want to get together on a trip to celebrate birthdays, graduations, and other milestones: “Gen Z want to make up for lost time spent together and get travelling.” Another type of social travel piggybacks the rise of “travel influencers” on social media platforms like Instagram. Some popular influencers are pivoting to provide the opportunity for their followers to literally follow them on a trip. People can go on a trip or do an activity with their favorite influencer and a group of fellow followers.

Of course, not everyone has a posse to travel with or wants to travel with others. Solo travel continues to be very popular and has moved from a niche to a mainstream market. A Skyscanner report found that 40 percent wanted to travel solo for mental health wellness reasons, while singles and divorcees ranked highly for being ready to take a solo trip. The report concludes: “There is no longer any stigma attached to taking a trip on your own, and many tour companies cater specifically to this market.”

• Flash Pack : Small group adventures for solo travelers in their 30s and 40s.
• On the Go Tours : Pre-designed tours for private groups.
• My Life’s a Travel Movie : Join social media influencer Alyssa Ramos on a trip

Watch this space: Unusual and niche  tourism trends to track in 2023

14. flat pack hotels.

In a move that reflects the growing interest in responsible and sustainable travel, hotel company Habitas have opened a number of flat-pack hotels around the world for “like-minded people seeking connection, inspiration and a better future together.”

15. Crypto trips

A number of tour operators and travel companies now offer travelers the ability to pay with cryptocurrency. Some examples include Borrow a Boat , Soneva Resorts  and Get Your Guide . 

16. Dark tourism

There has been a rise in so-called “dark tourism,” when people travel to places or sites associated with disasters and darker historical events. Famous examples include Pearl Harbour, Alcatraz, and Hiroshima. If this is the first you’ve heard of this term, it can sound a bit ghoulish. However, travelers who explore these sites generally do so to pay their respects or learn more about important historical events that hopefully will never be repeated.

17. Sober travel

Sober travel has been around for a while, but it mostly catered to people in recovery. In 2023, sober travel is a subset of wellness travel. Travel companies like Travel Sober and  Sober Outside have pivoted to target anyone who wants a sober vacation.

18. Virtual travel

Forbes Magazine thinks 2023 will be “the year that tourism in the metaverse takes off.” Travel companies can use VR to give potential customers a taste of the experience they can expect from a tour or location. VR can be accessible through web browsers or people can enjoy a much more immersive experience using VR headsets.

19. Nostalgic travel

Booking.com’s 2023 travel predictions found that 88 percent of travelers want to go on a “nostalgic getaway,” whether that’s theme parks we went to as kids, nostalgic movie locations, or other trips down memory lane. 

20. Sleep tourism

Everyone likes a good night’s sleep, especially on vacation, and the travel is waking up to the opportunities offered by a rise in “sleep tourism.” The Park Hyatt New York now offers a stay in their  One Bedroom Sleep Suite by Bryte , while Swedish bed brand Hastens opened a branded Sleep Spa . Good night, sleep well.  

How to take advantage of innovative tourism business ideas

The key to taking advantage of these innovative tourism business ideas and other tourism industry trends is to always be thinking of your next profitable business opportunity. Here are a few ways to keep on top of what’s new and interesting in the travel business:

Maintain an ideas file

Include those “out there” trends that seem absurd the first time you hear them. Think about some recent innovations that would have been dismissed with a laugh not that long ago: Self-driving cars, passenger space travel, drone deliveries… Even that Holy Grail of futuristic inventions, the personal jetpack, is getting closer to reality. All but the most outlandish trends are worth tracking in case there’s a germ of an idea for a new business opportunity in there.

Listen to your audienc e

Hang out in online travel discussion forums, on social media, and in other places where travelers gather to swap notes and ideas or express needs and dreams. You might uncover a new business idea no-one else has come across yet.

Follow your competitors

Monitor what your direct competitors and others in the tourism business are up to. Subscribe to every industry newsletter you can, including those of your competitors, to keep up with emerging trends and help with your business idea generation.

Solicit customer feedback

Be proactive in asking your customers for feedback. Don’t just ask them what they liked and didn’t like about their experience with your company; ask them if there’s anything they would like to do that they currently can’t. 

Invest in the right booking system

It goes without saying that every tour operator should offer online booking and take a mobile-first approach. Not doing both of those things makes taking advantage of the above trends very difficult. The customer experience starts the moment they enter your website. Online booking enables them to easily browse, book, and pay for tours anytime and from is anywhere. Learn more about how Rezgo booking software is tailor-made for adventure companies.

At Rezgo, we always have our ear to the ground when it comes to the latest tourism trends and business opportunities. The Rezgo booking system is a comprehensive platform that enables you to become a more profitable business. It can also help you future-proof your business so you can develop and grow as the tourism industry changes.  Book a demo today or  sign up for free and start using Rezgo

Wondering what to read next? Here are our suggestions: The Future of Tourism: 10 Things Tour Companies Need To Prepare For in 2022 A Guide to Branding in the Travel and Tourism Industry Low Season Strategies to Prime Your Tour and Activity Company for Success

Written By | Rob Mathison

Rob Mathison is a Vancouver-based freelance writer focusing on tech, travel, digital marketing, and education. He is a co-author of The Complete Resident’s Guide to Vancouver.

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21 Tourism and Travel Business Ideas

Back to Business Ideas Categories

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on July 21, 2022 Updated on May 3, 2024

The tourism industry is massive and diverse, offering many opportunities for sharp entrepreneurs. You could start a travel agency, a campground, a hotel, or a concierge service. Explore many more excellent tourism and travel related business ideas in our list below.

1. Travel Agency

If you love to travel and are always planning your next trip, starting a travel agency might be the perfect career choice. It’s a great way to share your love and knowledge of travel, and it can be very lucrative.

If you have the resources, starting a travel agency business can be a breeze. But first, you need to identify your target market. Will you focus on domestic or international travel? A lot of Americans go on short trips for vacation or business purposes, providing an opportunity for travel agencies to earn money. Once you find your niche and draw up a business plan, you should work on establishing your brand and promoting it to find clients.

2. Nightclub

Do you enjoy late nights on the town? If so, starting a club might be right up your alley. Before you open your club, it’s important to know that the industry is heavily regulated, especially when it comes to alcohol consumption. You’ll need to meet both state and local regulations and licensing requirements so it’s best to inquire about the details from your local authorities first.

Next, it’s a good idea to research the market and find out what other clubs in your area are offering. You’ll have to innovate and come up with a unique selling proposition and a creative marketing plan for your club to attract customers. With these in place, your club can be very profitable.

3. Travel Photography

Are you an amateur photographer who loves snapping great images? Photography in the US is an $11 billion industry expected to see steady growth in the coming years, so now would be a great time to stretch your entrepreneurial wings and give it a shot. You could focus on travel photography, if that’s your passion, and give the world beautiful photos while also seeing the world. You can capture landscapes, people, cultures, customs, and history.

Assuming you already have a professional-level camera, you’ll just need some great editing software and to build a website showing off your portfolio and listing your prices and services. Instagram and Pinterest are perfect social media networks for showing your travel photography.

If you’ve stayed in an Airbnb, you probably know how sweet it is to have a home away from home! This is why the homestay segment of the hotel and lodgings market has seen explosive growth in recent years, with Airbnb leading the way. Renting out your home as an Airbnb is an easy and flexible way to earn income, whether you’re looking for a little extra money or to build a serious business. 

The first step is to make sure your home or apartment can be rented out for short-term stays. In many areas today, there are laws either banning Airbnb rentals or limiting them to a certain share of local units. If your home clears that hurdle and is in an area with some tourist appeal, you’re already halfway there. If your apartment fails to meet one of these requirements, you might want to look into purchasing a home or apartment in an appealing destination, which you could then develop into a successful Airbnb. 

Whichever approach you choose, the most important step is delivering fantastic service to your guests. If you can achieve Superhost status, you’ll be well on your way to Airbnb success.

5. Translation Business

Demand for translation services is expected to grow as more companies seek to capture or increase their share of the global market. Translation businesses help translate documents, localize travel and city guide websites, and interpret speech, including sign language. If you’re thinking of starting a translation business, you’re not alone. But if you have the skills and the right talents and tools, you could edge out the competition. 

In this internet age, finding translators who can work remotely across the globe has become easier. Promoting diversity among your staff could also be good for your business because you’ll be able to offer translation services for more languages. Do the paperwork to register your business, keep yourself updated with the latest technologies, promote your services, and you should be able to gain traction as soon as you start operating.

6. Bed and Breakfast

Many Americans still prefer to stay in a traditional B&B for the unique hospitality, homemade food, and fascinating local insights. When starting a B&B, it’s important to be aware of the latest industry trends. For example, many guests prefer a facility that offers live entertainment or is located close to tourist attractions. It’s also to your advantage to research the market and see what features and services are being offered by the competition. Be innovative in coming up with ways to differentiate your business. Running a bed and breakfast is not easy, but it can be very rewarding if you play your cards right. 

7. Glamping

A decade ago nobody had heard the word glamping, which is short for “glamorous camping”. Today it’s a nearly $3.1 billion global industry and among the fastest-growing segments of the travel and hospitality market, expected to more than double by 2030. If you have a bit of land in an appealing location, or have the funds to purchase such a plot, you could start your own glamping business and make a good living offering luxury experiences to discerning travelers.

There will be some serious work involved. In addition to acquiring the property, you’ll need to outfit it with all the bells and whistles — from tents and teepees to high-end beds, furniture, lighting and air-conditioning and heating units. If your location is on the water, you could boost your revenue by also offering sailboats, canoes, kayaks, and more. But before you get started, this is a new and fast-evolving industry, so it’s best to take the time to research the market and learn the latest trends before diving in.

8. Jet Ski Rental

Do you like having fun out on the water? Well, so does everybody else! That’s why starting a jet ski business is almost always a great idea. The global personal watercraft market is worth $1.6 trillion and expected to expand an impressive 50% by 2027. Right now is a great time to start a jet ski business, bring good times to your community and ride the market expansion to great success. 

Getting there will require a significant investment. You’ll need to spend about $25,000 to get your first few jet skis, plus a rental facility on the water and permits and licensing fees. Of course, you’ll also need to live near an appealing body of water, preferably one that’s enjoyable for more than a few months of the year. Finally, you will want to get good insurance, because jet skis are as dangerous as they are fun.

Once that’s all settled, just start advertising on local outlets and events, posting on relevant social media groups and online vacation platforms. You’ll have your first few customers in no time, and soon be cruising toward success.

9. Campground

Do you love the outdoors? If so, setting up a campground could be the perfect way to start your entrepreneurial journey. The recent study found that an estimated 84.8 million Americans went camping in 2023, and 5.5 million of those were first-time campers.

Your biggest challenge in starting a campground is likely to be finding a suitable location. The most visited campgrounds in the US are in state parks, near bodies of water, surrounded by wilderness, or in the mountains. Once you find an ideal campsite, you’ll need to comply with licensing, zoning, and other legal requirements. Before you launch your business, it’s wise to research the market and find out what other campgrounds are offering. With careful planning and a creative marketing strategy, your campground can give competing sites a run for their money.

10. Pet Sitting

You’d probably never guess that pet sitting is a $2.4 billion industry , but it is indeed. People love their pets, and will spend whatever it takes to ensure they’re taken care of when they are away. The pet sitting market is projected to see impressive growth through 2030, so if you’re an animal lover, now is the perfect time to start your own pet sitting business and ride that wave to serious profits. 

The first step is to decide which type of pets you’ll care for. Do you have more experience with dogs or cats? Are you OK with snakes? Pigs? Once you’ve got that nailed down, you’ll just need to buy some pet toys and supplies and offer your services on a gigs site like TaskRabbit. It’s a good idea to reach out to friends, family and work-related contacts and acquaintances. If you’re able to generate an initial client or two from your own personal network, and provide them with great service, you’ll have a strong reference to promote your services and start building a successful business.

11. Spa Salon

If you’re a massage therapist or esthetician, you could open a beauty salon, nail spa, luxury spa, massage studio, or even a mobile spa, and make people feel better while making a good living.  

You will likely need to get licensed, which can take some doing, and deliver excellent services to compete in an increasingly competitive and saturated market. Another crucial aspect will be location — your spa should be somewhere with steady traffic. Or you could go the mobile spa route and make house calls, bringing your massage and therapeutic services to your clients. This is more convenient for them, which means you can charge a higher rate, despite having lower overhead.

There are many elements to consider for your spa business, but what is not in doubt are your chances of success if you’re determined and can deliver healing services.

12. Scooter Rental

With gas prices going up, more and more Americans are turning to cheaper, more eco-friendly options for their commute and for seeing the city. Scooters cost less than cars and run on electricity. Over the past decade, Americans took a third of a billion trips on shared bikes and scooters. That’s a huge number, and it’s expected to increase sharply in the next few years. Considering this, a scooter rental business is a smart choice.

But first, it’s important to understand that scooters are used primarily as a transport option for short distances. Setting up this kind of business requires a huge upfront investment because you might have to purchase some scooters, unless you can lease them. You’ve need to make sure you have all the necessary permits and insurance in place before opening.

Once you have everything you need, it’s a good idea to work on a marketing plan. You can use social media, print ads, and word-of-mouth to get the word out about your new venture.

13. Party Bus

Ready to party? As the pandemic recedes, everybody’s getting back out there to have a good time. For a lot of people that means renting out a party bus and dancing and drinking the night away while cruising down the streets.

Starting your own party bus business will require considerable investment. The major cost will be, of course, the bus itself. Hopefully you’ll be able to find a reliable one at a reasonable price and then deck it out with all the trimmings, from a bar and disco ball to a DJ booth and more. Once you’ve done some marketing and gotten the word out you’ll be able to charge as much as $700 per night, so it shouldn’t take too long before you see a major return on your investment. 

Just be sure to get all your licenses, permits and insurance — the last thing you want is for the party to get parked on the curb.

14. Car Rental

With some hard work and determination, you could start your own car rental business and provide travelers the transport they need while grabbing your share of a growing $30 billion US market .  

Keep in mind that this is a competitive industry, which means you’ll need to find ways to stand out, such as with deep discounts or a unique selection of cars. Speaking of which, you’ll also need to lay out a sizable investment to get your initial fleet of four to five cars. Finally, it’s crucial that you meet all the licensing and insurance requirements or your business could face severe fines, or worse.

But if you’re able to clear these hurdles, there’s a good chance your car rental business will soon be cruising down easy street.

15. Boat Rental

Who doesn’t love a day out on the water? There are so many things to do. from skiing and tubing to cruising, socializing, swimming and just taking in the sun. That’s why boat rentals are a $5.3 billion US industry expected to see smooth sailing and steady growth in the years ahead. If you like spending time outdoors, you could start your own boat rental business and help people enjoy their time off while making a good living. 

There are several possible constraints. For one, you should live near a sizable body of water, and find an available access point or marina to base your operations. Second, you’ll likely need to accept the seasonal nature of this line of work, which in most areas of the US will only bring in revenue for 6-7 months of the year. Finally, getting started will require a significant investment, as appealing, rentable boats do not come cheap. 

But if you’re OK with all this, and able to acquire the necessary permits and insurance, once you start putting boaters on the water you’ll be cruising straight toward success.

16. Bike Rental

As travel regains steam and more workers return to the office, demand for bike rental for last-mile connections is sure to increase. If you’re thinking of starting your own business, a bike-share outfit or bike rental shop could be a great option. The US bike rental industry is projected to grow in the next five years amid a bike-share boom, driven in part by environmental concerns.

There are a few things you need to consider before starting a bike rental business. Is there a market for bike rental in your area? What kind of bikes should you offer? How many bikes should you start with? You will find the answers to these questions as you research the market. It is also important to comply with all the legal and regulatory requirements and to come up with a good marketing plan. One option is to place bike docks near subway stations and major bus stops.

17. RV Rental

RVing , or traveling in a recreational vehicle, is a popular way of exploring the US with family and friends. It’s showing no signs of slowing as more than 70 million Americans are expected to go on road trips in an RV they rent, own, or borrow, according to the RV Industry Association. You could start an RV rental business and tap into this exciting travel market.

You can either invest in a fleet of RVs, which would require a hefty investment, or you can just list your RV on an online marketplace like Outdoorsy. Before setting your rates, it’s a good idea to scope out the market and find out what your competitors are charging. You’ll have to factor in insurance and other costs in order to make a profit.

Finally, it’s important to keep your RVs well-maintained to attract customers, most of whom prefer to rent out new units. With all this in place, your RV rental business will making good money in no time.

18. Kayak Rental

As more people explore the outdoors in a post-pandemic world, a kayak business makes sense. It’s an eco-friendly way to help travelers enjoy their time off while getting some exercise and enjoying the great outdoors. The global kayak accessories market size was $164.2 million in 2020 and will touch $214 million by 2027. So, why not start a kayak rental business now?

Aside from offering kayaks for rent, you could also also offer apparel and helmets, storage bags, seats, life jackets, and safety gear. Selecting the location of your shop is important. It will have to be near the coast, a river or a lake, and with steady foot traffic. You’ll need a substantial investment to set up your shop. Finally, it’s a good idea to promote your business and let people know about your offerings.

Considering all the ride-sharing apps out there, you might be surprised to learn that old-school taxis are not only surviving, but doing quite well. The US taxi and limo market is worth more than $41.7 billion and expected to see steady growth in the coming years. If you enjoy driving and meeting new people, starting a taxi business might be the right move for you. 

Getting started will require some real effort and investment. You’ll need to buy a reliable car, if you don’t already have one, plus reliable insurance and all the necessary permits. In some cities the car hire license can be a major expense, for instance a New York City taxi medallion costs $80,000. In other places, like $300 in Cleveland, not so much. Once you’ve all set up, it’s a good idea to build a website so people can find you, and you might want to offer an app as well, as most car services nowadays offer on-demand ordering. 

Finally, get creative with your marketing to stand out in a competitive market, provide excellent service and steady driving to your first few clients, and the good reviews and revenues should start pouring in.

20. RV Park

The wanderlust spirit and a rise in road-tripping have amplified the allure of RV travel. Capitalizing on this trend, starting an RV park presents a golden opportunity in the travel business sector. Such parks cater to a growing demographic of explorers seeking the comfort of their RVs while embracing the freedom of the open road. With the right amenities and a strategic location, an RV park can be a haven for both short-term travelers and long-term nomads.

Location is paramount, ideally near popular tourist spots or natural attractions. Additionally, ensuring modern facilities, security, and possibly offering unique experiences or events can differentiate your park from competitors. As travel patterns evolve, an RV park can offer travelers a blend of adventure and convenience, making it a profitable and sustainable business venture.

21. Tour Operator

Tour operator business thrives on curating unique experiences, offering tailored packages, and ensuring travelers get the best out of their journeys. Unlike general travel agencies, tour operators control and manage the specifics of the trip, right from itinerary planning to the on-ground execution. This means creating partnerships with local businesses, ensuring safety standards, and offering a seamless travel experience to clients.

In today’s digital age, a tour operator’s success doesn’t just hinge on local networking, but also on a strong online presence. Reviews, testimonials, and digital marketing strategies play a pivotal role in attracting potential customers. Whether one chooses to cater to adventure seekers, history enthusiasts, or luxury travelers, the key is to differentiate, maintain high service standards, and keep evolving with the dynamic travel industry.

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Top 9 Travel Trends & Innovations in 2024

How are the latest trends in the travel industry reshaping trip planning and enhancing tourist experiences in 2024? Explore our in-depth industry research on the top 9 travel trends based on our analysis of 3500+ companies worldwide. These trends include AI, immersive tourism, IoT, contactless travel & more!

Technological advancements in the travel industry meet the growing demand for personalized experiences, safety, and sustainability. Post the COVID-19 pandemic, emerging travel trends mark a shift towards contactless travel through digital payments, self-check-ins, and more. Additionally, artificial intelligence (AI), the Internet of Things (IoT), and blockchain are automating various hospitality and travel-related operations.

For instance, smart hotels make use of internet-connected devices to remotely control rooms. Further, businesses offer virtual tours by adopting extended reality (XR) technologies like virtual reality (VR) and augmented reality (AR). Travel companies also leverage data analytics to personalize marketing. At the same time, traveler assisting solutions like chatbots and voice technology aid them in booking accommodation and optimizing journeys. These travel trends improve the overall profitability of the tourism industry and enable it to make operations more sustainable and safe.

This article was published in July 2022 and updated in February 2024.

Innovation Map outlines the Top 9 Travel Trends & 18 Promising Startups

For this in-depth research on the Top 9 Trends & Startups, we analyzed a sample of 18 global startups and scaleups. The result of this research is data-driven innovation intelligence that improves strategic decision-making by giving you an overview of emerging technologies & startups in the travel industry. These insights are derived by working with our Big Data & Artificial Intelligence-powered StartUs Insights Discovery Platform , covering 2 500 000+ startups & scaleups globally. As the world’s largest resource for data on emerging companies, the SaaS platform enables you to identify relevant startups, emerging technologies & future industry trends quickly & exhaustively.

In the Innovation Map below, you get an overview of the Top 9 Travel Trends & Innovations that impact travel & tourism companies worldwide. Moreover, the Travel Innovation Map reveals 3 500+ hand-picked startups, all working on emerging technologies that advance their field.

Top 9 Travel Trends

• Artificial Intelligence
• Immersive Tourism
• Internet of Things
• Contactless Travel
• Big Data & Analytics
• Post-Pandemic Tourism
• Tour Premiumization

Click to download

Tree Map reveals the Impact of the Top 9 Travel Trends

Based on the Travel Innovation Map, the Tree Map below illustrates the impact of the Top 9 Travel Industry Trends in 2024. Startups and scaleups are enabling contactless travel using technologies like biometrics, radio-frequency identification (RFID), and near-field communication (NFC). This is due to increasing health and hygiene concerns post the pandemic. The use of AI in tourism ensures hassle-free trip planning while AR and VR allow tourists to virtually visit various locations and excursions. IoT increases visibility into tourism industry operations and allows passengers to track their luggage more efficiently. Further, the demand for personalized and luxurious travel is rising. Several startups enable recreational space travel as well as offer sustainable travel options to passengers.

Global Startup Heat Map covers 3 635 Travel Startups & Scaleups

The Global Startup Heat Map below highlights the global distribution of the 3 635 exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals that the US, Europe, and India see the most activity.

Below, you get to meet 18 out of these 3 635 promising startups & scaleups as well as the solutions they develop. These 18 startups are hand-picked based on criteria such as founding year, location, funding raised, and more. Depending on your specific needs, your top picks might look entirely different.

Interested in exploring all 3500+ travel startups & scaleups?

Top 9 Travel Trends in 2024

1. artificial intelligence.

Hotels employ intelligent chatbots, powered by AI, to provide quick and personalized responses to traveler inquiries. These chatbots simplify the booking process and gather customer reviews, aiding potential travelers in making informed decisions. Moreover, AI-based robots enhance the customer experience by automating hotel disinfection and delivering room service.

At airports, these robots guide travelers and assist with luggage handling. Facial recognition technology, driven by AI, expedites identity verification at airports, enhancing security and offering a swift alternative to traditional methods. Startups are developing AI-powered trip planning solutions, optimizing journeys, and personalizing travel experiences.

Travel Professor develops a Travel Chatbot

UK-based startup Travel Professor offers an AI-enabled chatbot for travelers. The startup’s chat widget software monitors multiple flight deals and notifies users when their preferences match. It also provides travel destination recommendations and flight price alerts. This allows travelers to book economical flights and have a budget-friendly tourism experience.

Pneuma Travel facilitates Travel Planning

US startup Pneuma Travel develops a voice-assisted digital agent, Sarah , to streamline the process of travel planning. This assistant, powered by AI, excels in arranging flight and accommodation bookings and assists travelers in discovering a variety of activities. Sarah , available round the clock, provides continuous support for all travel-related inquiries.

Moreover, Sarah customizes travel options according to individual preferences and budgetary constraints. The agent further enhances the travel experience by providing insights into local attractions in unfamiliar cities. Importantly, Sarah enables real-time modifications to travel plans, in compliance with specific airline policies, thereby minimizing waiting times for users.

2. Immersive Tourism

Immersive tourism caters to the growing demand for meaningful experiences among travelers, leveraging AR, VR, and mixed reality (MR). VR simulates original locations through a computer-generated environment, allowing tourists to virtually explore destinations. It provides travelers with a comprehensive 360-degree tour of points of interest.

AR enhances the travel experience with interactive elements such as navigation maps and ads. Travel companies employ AR and VR-based gamification to heighten tourist attractions. Moreover, these technologies enable hotels and resorts to present amenities and rooms in an engaging, interactive manner.

VR Travel Expo offers VR-based Travel Plans

US startup VR Travel Expo develops a VR travel application to transform the way people research and book travel. The application enables users to plan their vacations more efficiently. It provides an engaging platform for users to explore and expand their knowledge of the world. Moreover, it employs 3D geospatial technology that creates real-time digital twins of the world. This further enhances the travel planning experience.

AR Tour makes AR Glasses

Italian startup AR Tour offers AR-powered tours. The startup’s AR glasses superimpose reconstructed images of archaeological ruins to show how the site originally was. Its tour informs the tourists about the site’s history and significance via an audio-visual package. Moreover, the startup designs lightweight AR glasses to prevent motion sickness among tourists, improving convenience.

3. Internet of Things

IoT generates ample data that tourism companies leverage to personalize services in their subsequent visits. Hotels use IoT sensors to enable smart rooms that automate room lighting, temperature, and ambiance control, enhancing guest comfort. These sensors adjust appliances in vacant rooms, conserving energy and reducing the building’s carbon footprint.

Startups harness IoT to deliver location-specific information to customers, including real-time luggage tracking via IoT tags, minimizing lost items. Airlines also incorporate IoT-based solutions into seats, monitoring passenger temperature and heart rate for proactive health management.

Altitude enables Smart Hotels

New Zealand-based startup Altitude creates an IoT-based hotel software and hardware to develop smart hotels. The startup makes self-service kiosks to automate reservations, room up-gradation, payments, as well as check-in and check-out. Its hotel management platform further enables contactless engagement with guests. Additionally, Altitude’s mobile keys allow guests to open doors using mobile phones, providing convenience and saving time for travelers.

Smart Tour provides Smart Itineraries

Brazilian startup Smart Tour offers smart itineraries using IoT and quick response (QR) codes. The startup recommends travel routes and destinations based on the user’s preference in real-time. This facilitates a seamless experience for travelers. Besides, the user-generated data enables tourism managers to better understand consumer behavior and indulge in proximity marketing. The startup also offers a contact tracing solution to monitor COVID-19 infected travelers and ensure public safety.

4. Contactless Travel

Travelers benefit from contactless recognition technologies like retina scanning, which replace traditional travel documents, speeding up passenger identification and reducing airport queues. QR codes offered by travel companies allow tourists to access relevant information on their mobile devices, enhancing engagement.

Hotels have introduced contactless self-check-ins, enabling visitors to arrange services before arrival. Additionally, contactless payment modes are available in hotels and restaurants for swift and secure transactions. Moreover, wearable devices are transforming the travel experience by providing real-time notifications and touch-free access to services and information.

Loxe designs Smart Hotel Keys

US-based startup Loxe makes smart mobile keys for hotels. The startup’s smartphone app replaces key cards with contactless mobile keys that allow users to unlock doors using smartphones. It also reduces operational costs incurred in the manufacturing of conventional keys or plastic cards. Moreover, the startup designs a Bluetooth retrofit module that converts normal door locks into mobile-ready door locks. This allows hotel owners to easily convert their existing locks into smart ones without additional expenses while improving guest safety and convenience.

Avendi provides Contactless Payment

Singaporean startup Avendi offers contactless and cashless payments for travelers. The startup allows tourists to accumulate expenses throughout their trip and pay at the end of the journey. Avendi’s app utilizes QR codes to add all the billed expenses and shown through its dashboard. The user settles the tab amount in the preferred currency, preventing the inconvenience of cash withdrawal or credit card payments.

5. Big Data & Analytics

Big data empowers travel companies with customer trends for strategic marketing. Analyzing traveler behavior, they offer tailored recommendations for hotel bookings, cab hires, flight reservations, and ticket purchases.

Predicting future demand is another advantage of big data and analytics, helping hotels and airlines identify peak periods to optimize revenue. Advanced analysis of transactional data aids in detecting cyber fraud, and safeguarding sensitive customer information such as credit card details and biometric data.

CheckandPack creates a Travel Platform

Dutch startup CheckandPack offers a big data travel platform. It runs marketing campaigns to gather traveler data and understand tourism trends. Based on these insights, the platform enables businesses to approach travelers with a customized appeal. It also provides travelers with holiday planning.

3Victors provides Travel Data Analytics

US-based startup 3Victors offers travel data analytics. The startup’s product, PriceEye Suite , proactively monitors the prices of numerous airlines to provide insights into competitor prices. It creates a dashboard to display travelers’ location of interest, allowing travel airlines to better manage their revenue and pricing strategy.

6. Post-Pandemic Tourism

Post-pandemic tourism focuses on safe, sustainable, and flexible travel options, responding to evolving traveler preferences and health guidelines. Enhanced health and safety protocols, including regular sanitization and contactless services, become standard in airlines and hotels, ensuring traveler confidence.

Destinations and operators emphasize outdoor and less crowded experiences, catering to a heightened demand for nature-based and wellness travel. Flexible booking policies and trip insurance gain prominence, offering peace of mind amid uncertainties. Sustainable travel gains traction, with tourists and businesses prioritizing environmental impact and community well-being.

GOPASS Global enables Pre-travel Risk Management

Singaporean startup GOPASS Global provides a travel risk analytics platform against COVID-19. It analyzes the biosecurity risk elements involved in a trip, such as border restrictions, quarantine requirements, airport type, and airline transit points or seating in real-time. This allows travelers to assess risk factors and plan their trips accordingly.

Moreover, the startup creates world maps displaying information regarding COVID-prone areas, testing areas, and vaccine coverage. This provides travelers with a preview of the current situation, allowing them to ensure safety during business and leisure travel.

Workcations enables Work from Anywhere

Indian startup Workcations provides properties at tourist destinations for remote-working individuals. It offers amenities like internet connectivity, food, and a quiet ambiance, allowing tourists to work in a peaceful environment without hindrance. This increases employee productivity, motivation, and retention.

7. Tour Premiumization

Hyper-personalization in travel experiences is on the rise, with tourists eager to immerse themselves in diverse cultures. Luxury travelers enjoy tailored experiences and intuitive services through tour premiumization. Health and wellness packages offered by travel startups help tourists unwind.

These retreats enhance health and offer detoxifying food options. Space tourism is another exciting development, offering leisure or research trips to space. Lastly, travel startups are fostering customer loyalty and building strong relationships through membership or subscription models.

STOKE provides Space Tour

US-based startup STOKE facilitates space travel using everyday-operable rockets. The startup’s rockets are reusable and deliver satellites to any desired orbit. This enables on-demand access to space, paving way for space tours for exploration, recreation, and research. The startup also emphasizes the economical and rapid development of its hardware for feasible spacecraft launches, advancing space tourism.

Origin offers Travel Personalization

Dutch startup Origin provides premium travel personalization to tourists. The startup utilizes machine learning and travel curators to plan creative vacations. It also arranges flights and accommodation for travelers. Further, the startup measures the carbon output of itineraries and offers sustainable tourism options.

8. Ecotourism

Traveling responsibly minimizes tourism’s environmental impact and supports local communities’ well-being. Ecotourists strive to reduce their carbon footprint during their journeys. Startups contribute by developing sustainable transport, ecolodges, and solar-powered resorts.

Airline passengers have the option to offset carbon emissions during flight bookings. Local tourism stimulates small businesses economically and creates job opportunities. It also emphasizes minimum littering, which lowers pollution and the time spent on cleanups.

Jet-Set Offset simplifies Flight Carbon Offset

US-based startup Jet-Set Offset creates a carbon-offsetting platform for air travel. The startup partners with non-profit organizations working against climate change and connects them with travelers. Each time travelers book flight tickets via the startup’s platform, Jet-Set Offset contributes a certain amount per mile for their journey to environmental organizations. This way, the passenger’s journey promotes mileage-based donations to offset carbon emissions.

The Green Stamp facilitates Ethical Wildlife Tour

Dutch startup The Green Stamp provides a platform to book ethical wildlife tours. It curates tours based on the tourists’ inclinations toward certain locations or wildlife. Exploration of these projects allows travelers to indirectly contribute to their cause as these wildlife projects donate to the welfare of local communities and the environment.

9. Blockchain

Blockchain provides the travel industry with operational transparency and security. Traceable payments, particularly for international travel, are a key application, that fosters trust among parties involved in transactions.

Automation and enforcement of agreements in travel insurance and supplier contracts are achieved through smart contracts. This strengthens reliability and cuts administrative costs. Travel firms establish customer loyalty programs where points are exchanged for cryptocurrency. Lastly, blockchain increases data storage security, reducing the risk of information leaks.

Upswing facilitates Guest Profiling

Indian startup Upswing creates AURA , a blockchain-powered platform for guest profiling. It provides a holistic view of guests, their preferences, and purchase patterns. The platform associates a score with each guest and suggests improvements in their service. This facilitates hotels to provide a personalized experience to their guests and, in turn, increase sales.

UIQ Travel develops a Solo Traveling App

US-based startup UIQ Travel develops a blockchain-based app to connect solo travelers. It discovers people with shared interests and suggests tours or attractions. Such hyper-personalized recommendations assist in experience discovery and also increase traveler engagement.

Discover all Travel Trends, Technologies & Startups

Tourism, although severely impacted by the pandemic, now continues to rapidly grow across the globe. Post-pandemic trends indicate an increasing emphasis on hygiene and safety during travel. The industry is witnessing the widespread adoption of disruptive technologies like AI, XR, IoT, and blockchain. The travel industry utilizes big data to understand traveler trends for targeted marketing. The transition to ecotourism is accelerating as businesses integrate zero-emission transit and carbon offset programs to reduce their carbon footprint.

The Travel Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation and startup scouting process. Among others, personalization, decarbonization, and travel safety will transform the sector as we know it today. Identifying new opportunities and emerging technologies to implement into your business goes a long way in gaining a competitive advantage. Get in touch to easily and exhaustively scout startups, technologies & trends that matter to you!

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How virtual tourism can rebuild travel for a post-pandemic world

The Faroe Islands is just one destination using new technologies to create a virtual tourism experience Image:  Knud Erik Vinding/Pixabay

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.chakra .wef-1nk5u5d{margin-top:16px;margin-bottom:16px;line-height:1.388;color:#2846F8;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-1nk5u5d{font-size:1.125rem;}} Get involved with our crowdsourced digital platform to deliver impact at scale

Stay up to date:, virtual and augmented reality.

• The COVID-19 pandemic has upended the travel and tourism industries;
• Businesses in this sector must build infrastructure and practices that allow people to travel safely in a post-pandemic world and support local communities that benefit from tourism;
• Augmented, virtual and mixed reality technologies can offer alternative ways to travel the world and an exciting new model for the industry.

The tourism industry has hit a nadir owing to the COVID-19 pandemic. It will continue to feel the effects for at least the first three quarters of 2021 – according to a recent UN report , tourist arrivals globally in January 2021 were down 87% when compared to January 2020.

Travel will prevail over post-pandemic anxiety, making it incumbent on the aviation and tourism industry to build safer infrastructure and practices that take care of travellers’ well being.

Have you read?

International tourism is set to plunge by 80% this year – but some regions could recover more quickly, how global tourism can become more sustainable, inclusive and resilient, virtual reality adds to tourism through touch, smell and real people’s experiences.

After a year thwarted by the pandemic and with the future not looking too upbeat for the industry at this juncture, tourism business owners should look at alternative modes of interaction for holidaymakers that can also aid the people and economies who depend on tourism.

The COVID-19 pandemic has noticeably hastened the testing and rollout of forward-looking technologies. Technology has not only enabled citizens globally to interact with loved ones, but also helped industries such as healthcare, information technology, education and many more to work remotely.

In the last few decades, technology has helped travel and tourism industries increase their reach through travel booking websites, videos, blogs and travel photography. Digital tools and content are a vital source of information for vacationists organizing their next holiday or creating a destination wish list. Whilst remote or virtual tourism has been a futuristic theme within industry forums for some time, the world today, shaped by the COVID-19 pandemic, might now be ready to accept it.

A human-centric design that draws insights from cognitive behaviour, social psychology, neuroscience and behavioural economics applied with cutting edge technologies such as augmented, virtual or mixed reality (AR, VR, MR) could be a game-changer. AR, VR and MR can enable a seamless, uninterrupted interactive experience for viewers from their own private space. The design principles will create a frictionless digital user experience and construct a positive perception of a tourist destination.

There have been previous attempts to achieve this feat: if you are an aqua sightseer, you might be aware of a documentary exploring the Great Barrier Reef . Through an interactive website, one can view the clear, tranquil currents of the Pacific Ocean and the biodiversity of the reef, and experience the sounds of a healthy coral reef. Another much-discussed VR experience is Mission 828 which allows you to take a virtual parachute jump from the world’s tallest building, Burj Khalifa in Dubai. The Official Tourist Board of the Faroe Islands has also crafted a virtual experience to entice post-pandemic visitors from across the world.

Imagine a human-centric designed, interactive space online that makes a destination accessible and so real for a sightseer with sound captured by electro-acoustics researchers. You could view holiday sites in a video or through self-navigation using voice or joystick controls, interact with people using video-calling platforms, travel through the streets of said location, eavesdrop on local music and much more. This could be stitched together in a single platform individually or in silos on the internet and further enhanced by setting up physical experience tourism centres locally. Such a setup would allow tourist guides, artisans, craftspeople, hoteliers and transport business to create their own digital and virtual offerings and interact with possible customers.

Here’s how it might look: a vacationer starts their experience from the time their flight commences. The plane descends to the destination runway and pictures of the vicinity from the aircraft window pane are captured. The airport signage welcomes passengers and directs them to a pre-booked taxi. The vacationer gets to choose their first destination and travels through the streets in a chauffeur-driven car whose interactions en route become part of their cherished memories. On arrival, a tourist guide walks you through the destination all controlled with just a tap on your gadget. During the sightseeing, you hear random people speaking, posing for photographs and more. You take a photo to post on social media, go shopping and negotiate with a local vendor to purchase an artwork and get it delivered to your door. You learn how a local dish is prepared and get familiar with local customs.

A virtual platform could even provide an opportunity for people to explore areas that are affected by or fighting terrorism. For example, imagine seeing the diverse wildlife and snow leopard of the Gurez Valley, in the union territory of Jammu and Kashmir, India. It doesn’t stop there: if thought through, one could experience travelling to the South Pole, space and beyond. It could also serve as a learning portal for students to understand geographies, culture, art and history.

With technology improving lives globally, virtual tourism could reignite the tourism industry and its people and help build a more sustainable economic model. As a human-centric platform, it can establish local tourist guides, artisans and others as global citizens in the tourism industry.

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Reimagining the $9 trillion tourism economy—what will it take?

Tourism made up 10 percent of global GDP in 2019 and was worth almost $9 trillion, 1 See “Economic impact reports,” World Travel & Tourism Council (WTTC), wttc.org. making the sector nearly three times larger than agriculture. However, the tourism value chain of suppliers and intermediaries has always been fragmented, with limited coordination among the small and medium-size enterprises (SMEs) that make up a large portion of the sector. Governments have generally played a limited role in the industry, with partial oversight and light-touch management.

COVID-19 has caused an unprecedented crisis for the tourism industry. International tourist arrivals are projected to plunge by 60 to 80 percent in 2020, and tourism spending is not likely to return to precrisis levels until 2024. This puts as many as 120 million jobs at risk. 2 “International tourist numbers could fall 60-80% in 2020, UNWTO reports,” World Tourism Organization, May 7, 2020, unwto.org.

Reopening tourism-related businesses and managing their recovery in a way that is safe, attractive for tourists, and economically viable will require coordination at a level not seen before. The public sector may be best placed to oversee this process in the context of the fragmented SME ecosystem, large state-owned enterprises controlling entry points, and the increasing impact of health-related agencies. As borders start reopening and interest in leisure rebounds in some regions , governments could take the opportunity to rethink their role within tourism, thereby potentially both assisting in the sector’s recovery and strengthening it in the long term.

In this article, we suggest four ways in which governments can reimagine their role in the tourism sector in the context of COVID-19.

1. Streamlining public–private interfaces through a tourism nerve center

Before COVID-19, most tourism ministries and authorities focused on destination marketing, industry promotions, and research. Many are now dealing with a raft of new regulations, stimulus programs, and protocols. They are also dealing with uncertainty around demand forecasting, and the decisions they make around which assets—such as airports—to reopen will have a major impact on the safety of tourists and sector employees.

Coordination between the public and private sectors in tourism was already complex prior to COVID-19. In the United Kingdom, for example, tourism falls within the remit of two departments—the Department for Business, Energy, and Industrial Strategy (BEIS) and the Department for Digital, Culture, Media & Sport (DCMS)—which interact with other government agencies and the private sector at several points. Complex coordination structures often make clarity and consistency difficult. These issues are exacerbated by the degree of coordination that will be required by the tourism sector in the aftermath of the crisis, both across government agencies (for example, between the ministries responsible for transport, tourism, and health), and between the government and private-sector players (such as for implementing protocols, syncing financial aid, and reopening assets).

Concentrating crucial leadership into a central nerve center  is a crisis management response many organizations have deployed in similar situations. Tourism nerve centers, which bring together public, private, and semi-private players into project teams to address five themes, could provide an active collaboration framework that is particularly suited to the diverse stakeholders within the tourism sector (Exhibit 1).

We analyzed stimulus packages across 24 economies, 3 Australia, Bahrain, Belgium, Canada, Egypt, Finland, France, Germany, Hong Kong, Indonesia, Israel, Italy, Kenya, Malaysia, New Zealand, Peru, Philippines, Singapore, South Africa, South Korea, Spain, Switzerland, Thailand, and the United Kingdom. which totaled nearly $100 billion in funds dedicated directly to the tourism sector, and close to $300 billion including cross-sector packages with a heavy tourism footprint. This stimulus was generally provided by multiple entities and government departments, and few countries had a single integrated view on beneficiaries and losers. We conducted surveys on how effective the public-sector response has been and found that two-thirds of tourism players were either unaware of the measures taken by government or felt they did not have sufficient impact. Given uncertainty about the timing and speed of the tourism recovery, obtaining quick feedback and redeploying funds will be critical to ensuring that stimulus packages have maximum impact.

2. Experimenting with new financing mechanisms

Most of the $100 billion stimulus that we analyzed was structured as grants, debt relief, and aid to SMEs and airlines. New Zealand has offered an NZ $15,000 (US $10,000) grant per SME to cover wages, for example, while Singapore has instituted an 8 percent cash grant on the gross monthly wages of local employees. Japan has waived the debt of small companies where income dropped more than 20 percent. In Germany, companies can use state-sponsored work-sharing schemes for up to six months, and the government provides an income replacement rate of 60 percent.

Our forecasts indicate that it will take four to seven years for tourism demand to return to 2019 levels, which means that overcapacity will be the new normal in the medium term. This prolonged period of low demand means that the way tourism is financed needs to change. The aforementioned types of policies are expensive and will be difficult for governments to sustain over multiple years. They also might not go far enough. A recent Organisation for Economic Co-operation and Development (OECD) survey of SMEs in the tourism sector suggested more than half would not survive the next few months, and the failure of businesses on anything like this scale would put the recovery far behind even the most conservative forecasts. 4 See Tourism policy responses to the coronavirus (COVID-19), OECD, June 2020, oecd.org. Governments and the private sector should be investigating new, innovative financing measures.

Revenue-pooling structures for hotels

One option would be the creation of revenue-pooling structures, which could help asset owners and operators, especially SMEs, to manage variable costs and losses moving forward. Hotels competing for the same segment in the same district, such as a beach strip, could have an incentive to pool revenues and losses while operating at reduced capacity. Instead of having all hotels operating at 20 to 40 percent occupancy, a subset of hotels could operate at a higher occupancy rate and share the revenue with the remainder. This would allow hotels to optimize variable costs and reduce the need for government stimulus. Non-operating hotels could channel stimulus funds into refurbishments or other investment, which would boost the destination’s attractiveness. Governments will need to be the intermediary between businesses through auditing or escrow accounts in this model.

Joint equity funds for small and medium-size enterprises

Government-backed equity funds could also be used to deploy private capital to help ensure that tourism-related SMEs survive the crisis (Exhibit 2). This principle underpins the European Commission’s temporary framework for recapitalization of state-aided enterprises, which provided an estimated €1.9 trillion in aid to the EU economy between March and May 2020. 5 See “State aid: Commission expands temporary framework to recapitalisation and subordinated debt measures to further support the economy in the context of the coronavirus outbreak,” European Commission, May 8, 2020, ec.europa.eu. Applying such a mechanism to SMEs would require creating an appropriate equity-holding structure, or securitizing equity stakes in multiple SMEs at once, reducing the overall risk profile for the investor. In addition, developing a standardized valuation methodology would avoid lengthy due diligence processes on each asset. Governments that do not have the resources to co-invest could limit their role to setting up those structures and opening them to potential private investors.

3. Ensuring transparent, consistent communication on protocols

The return of tourism demand requires that travelers and tourism-sector employees feel—and are—safe. Although international organizations such as the International Air Transport Association (IATA), and the World Travel & Tourism Council (WTTC) have developed a set of guidelines to serve as a baseline, local regulators are layering additional measures on top. This leads to low levels of harmonization regarding regulations imposed by local governments.

Our surveys of traveler confidence in the United States  suggests anxiety remains high, and authorities and destination managers must work to ensure travelers know about, and feel reassured by, protocols put in place for their protection. Our latest survey of traveler sentiment in China  suggests a significant gap between how confident travelers would like to feel and how confident they actually feel; actual confidence in safety is much lower than the expected level asked a month before.

One reason for this low level of confidence is confusion over the safety measures that are currently in place. Communication is therefore key to bolstering demand. Experience in Europe indicates that prompt, transparent, consistent communications from public agencies have had a similar impact on traveler demand as CEO announcements have on stock prices. Clear, credible announcements regarding the removal of travel restrictions have already led to increased air-travel searches and bookings. In the week that governments announced the removal of travel bans to a number of European summer destinations, for example, outbound air travel web search volumes recently exceeded precrisis levels by more than 20 percent in some countries.

The case of Greece helps illustrate the importance of clear and consistent communication. Greece was one of the first EU countries to announce the date of, and conditions and protocols for, border reopening. Since that announcement, Greece’s disease incidence has remained steady and there have been no changes to the announced protocols. The result: our joint research with trivago shows that Greece is now among the top five summer destinations for German travelers for the first time. In July and August, Greece will reach inbound airline ticketing levels that are approximately 50 percent of that achieved in the same period last year. This exceeds the rate in most other European summer destinations, including Croatia (35 percent), Portugal (around 30 percent), and Spain (around 40 percent). 6 Based on IATA Air Travel Pulse by McKinsey. In contrast, some destinations that have had inconsistent communications around the time frame of reopening have shown net cancellations of flights for June and July. Even for the high seasons toward the end of the year, inbound air travel ticketing barely reaches 30 percent of 2019 volumes.

Digital solutions can be an effective tool to bridge communication and to create consistency on protocols between governments and the private sector. In China, the health QR code system, which reflects past travel history and contact with infected people, is being widely used during the reopening stage. Travelers have to show their green, government-issued QR code before entering airports, hotels, and attractions. The code is also required for preflight check-in and, at certain destination airports, after landing.

4. Enabling a digital and analytics transformation within the tourism sector

Data sources and forecasts have shifted, and proliferated, in the crisis. Last year’s demand prediction models are no longer relevant, leaving many destinations struggling to understand how demand will evolve, and therefore how to manage supply. Uncertainty over the speed and shape of the recovery means that segmentation and marketing budgets, historically reassessed every few years, now need to be updated every few months. The tourism sector needs to undergo an analytics transformation to enable the coordination of marketing budgets, sector promotions, and calendars of events, and to ensure that products are marketed to the right population segment at the right time.

Governments have an opportunity to reimagine their roles in providing data infrastructure and capabilities to the tourism sector, and to investigate new and innovative operating models. This was already underway in some destinations before COVID-19. Singapore, for example, made heavy investments in its data and analytics stack over the past decade through the Singapore Tourism Analytics Network (STAN), which provided tourism players with visitor arrival statistics, passenger profiling, spending data, revenue data, and extensive customer-experience surveys. During the COVID-19 pandemic, real-time data on leading travel indicators and “nowcasts” (forecasts for the coming weeks and months) could be invaluable to inform the decisions of both public-sector and private-sector entities.

This analytics transformation will also help to address the digital gap that was evident in tourism even before the crisis. Digital services are vital for travelers: in 2019, more than 40 percent of US travelers used mobile devices to book their trips. 7 Global Digital Traveler Research 2019, Travelport, marketing.cloud.travelport.com; “Mobile travel trends 2019 in the words of industry experts,” blog entry by David MacHale, December 11, 2018, blog.digital.travelport.com. In Europe and the United States, as many as 60 percent of travel bookings are digital, and online travel agents can have a market share as high as 50 percent, particularly for smaller independent hotels. 8 Sean O’Neill, “Coronavirus upheaval prompts independent hotels to look at management company startups,” Skift, May 11, 2020, skift.com. COVID-19 is likely to accelerate the shift to digital as travelers look for flexibility and booking lead times shorten: more than 90 percent of recent trips in China  were booked within seven days of the trip itself. Many tourism businesses have struggled to keep pace with changing consumer preferences around digital. In particular, many tourism SMEs have not been fully able to integrate new digital capabilities in the way that larger businesses have, with barriers including language issues, and low levels of digital fluency. The commission rates on existing platforms, which range from 10 percent for larger hotel brands to 25 percent for independent hotels, also make it difficult for SMEs to compete in the digital space.

Governments are well-positioned to overcome the digital gap within the sector and to level the playing field for SMEs. The Tourism Exchange Australia (TXA) platform, which was created by the Australian government, is an example of enabling at scale. It acts as a matchmaker, connecting suppliers with distributors and intermediaries to create packages attractive to a specific segment of tourists, then uses tourist engagement to provide further analytical insights to travel intermediaries (Exhibit 3). This mechanism allows online travel agents to diversify their offerings by providing more experiences away from the beaten track, which both adds to Australia’s destination attractiveness, and gives small suppliers better access to customers.

Governments that seize the opportunity to reimagine tourism operations and oversight will be well positioned to steer their national tourism industries safely into—and set them up to thrive within—the next normal.

Download the article in Arabic  (513KB)

Margaux Constantin is an associate partner in McKinsey’s Dubai office, Steve Saxon is a partner in the Shanghai office, and Jackey Yu  is an associate partner in the Hong Kong office.

The authors wish to thank Hugo Espirito Santo, Urs Binggeli, Jonathan Steinbach, Yassir Zouaoui, Rebecca Stone, and Ninan Chacko for their contributions to this article.

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Fact sheet: 2022 national travel and tourism strategy, office of public affairs.

The 2022 National Travel and Tourism Strategy was released on June 6, 2022, by U.S. Secretary of Commerce Gina M. Raimondo on behalf of the Tourism Policy Council (TPC). The new strategy focuses the full efforts of the federal government to promote the United States as a premier destination grounded in the breadth and diversity of our communities, and to foster a sector that drives economic growth, creates good jobs, and bolsters conservation and sustainability. Drawing on engagement and capabilities from across the federal government, the strategy aims to support broad-based economic growth in travel and tourism across the United States, its territories, and the District of Columbia.

The federal government will work to implement the strategy under the leadership of the TPC and in partnership with the private sector, aiming toward an ambitious five-year goal of increasing American jobs by attracting and welcoming 90 million international visitors, who we estimate will spend $279 billion, annually by 2027.

The new National Travel and Tourism Strategy supports growth and competitiveness for an industry that, prior to the COVID-19 pandemic, generated $1.9 trillion in economic output and supported 9.5 million American jobs. Also, in 2019, nearly 80 million international travelers visited the United States and contributed nearly $240 billion to the U.S. economy, making the United States the global leader in revenue from international travel and tourism. As the top services export for the United States that year, travel and tourism generated a $53.4 billion trade surplus and supported 1 million jobs in the United States.

The strategy follows a four-point approach:

• Promoting the United States as a Travel Destination Goal : Leverage existing programs and assets to promote the United States to international visitors and broaden marketing efforts to encourage visitation to underserved communities.
• Facilitating Travel to and Within the United States Goal : Reduce barriers to trade in travel services and make it safer and more efficient for visitors to enter and travel within the United States.
• Ensuring Diverse, Inclusive, and Accessible Tourism Experiences Goal : Extend the benefits of travel and tourism by supporting the development of diverse tourism products, focusing on under-served communities and populations. Address the financial and workplace needs of travel and tourism businesses, supporting destination communities as they grow their tourism economies. Deliver world-class experiences and customer service at federal lands and waters that showcase the nation’s assets while protecting them for future generations.
• Fostering Resilient and Sustainable Travel and Tourism Goal : Reduce travel and tourism’s contributions to climate change and build a travel and tourism sector that is resilient to natural disasters, public health threats, and the impacts of climate change. Build a sustainable sector that integrates protecting natural resources, supporting the tourism economy, and ensuring equitable development.

Travel and Tourism Fast Facts

• The travel and tourism industry supported 9.5 million American jobs through $1.9 trillion of economic activity in 2019. In fact, 1 in every 20 jobs in the United States was either directly or indirectly supported by travel and tourism. These jobs can be found in industries like lodging, food services, arts, entertainment, recreation, transportation, and education.
• Travel and tourism was the top services export for the United States in 2019, generating a $53.4 billion trade surplus.
• The travel and tourism industry was one of the U.S. business sectors hardest hit by the COVID-19 pandemic and subsequent health and travel restrictions, with travel exports decreasing nearly 65% from 2019 to 2020. 
• The decline in travel and tourism contributed heavily to unemployment; leisure and hospitality lost 8.2 million jobs between February and April 2020 alone, accounting for 37% of the decline in overall nonfarm employment during that time. 
• By 2021, the rollout of vaccines and lifting of international and domestic restrictions allowed travel and tourism to begin its recovery. International arrivals to the United States grew to 22.1 million in 2021, up from 19.2 million in 2020. Spending by international visitors also grew, reaching $81.0 billion, or 34 percent of 2019’s total.

More about the Tourism Policy Council and the 2022 National Travel and Tourism Strategy

Created by Congress and chaired by Secretary Raimondo, the Tourism Policy Council (TPC) is the interagency council charged with coordinating national policies and programs relating to travel and tourism. At the direction of Secretary Raimondo, the TPC created a new five-year strategy to focus U.S. government efforts in support of the travel and tourism sector which has been deeply and disproportionately affected by the COVID-19 pandemic.

Read the full strategy here

UN Tourism | Bringing the world closer

Unwto startup competition for tourism technologies and solutions in hotels and new business models, category 1 hotel and new business technologies, winner: twistic | spain.

• Schulering | Czech Republic
• Everhost | United States of America
• Sparkle Haze | United Arab Emirates
• Ostel Flow | Tunisia

Category 2 Innovation and Sustainability  

Winner: weavair | canada.

• Senange Eco | Indonesia
• Hotels for trees | Netherlands
• Effiwaste | Spain
• Purple Elephant ventures | Kenya

Powered by:

THE COMPETITION

The World Tourism Organization (UNWTO) and Infecar, Feria de Gran Canaria, are once again joining forces to promote innovation, and to harness the immense potential of the tourism industry, reimagining the future of Hotels and New Business Models, by launching the UNWTO Startup Competition for Tourism Technologies and Solutions in Hotels and New Business Models . In the ever-evolving landscape of hospitality management, the mission is clear—forge unforgettable guest experiences and cultivate welcoming environments where every guest feels valued, comfortable, and cared for. As guest demands become more intricate, hotels are turning to new ideas and to technology to seamlessly enhance guest experiences, improve operational efficiency, and provide personalized services.

Revealing the Challenge : In the spotlight, this year is the future of tourism in hotels and new business models. We invite you to be a pivotal part of redefining the landscape of Hotels and New Business Models. Our objective is to ignite a revolution in the tourism sector, steering it toward uncharted levels of intelligence, sustainability, and innovation. We invite startups from around the world to join us on this journey of transformation!

Picture a competition that assembles brilliant minds from across the globe, all with a shared commitment to rejuvenating the tourism industry. We are in search of pioneers, innovators, and visionaries who can provide ingenious solutions to the multifaceted challenges that confront this vital industry. The challenge is open to any startup worldwide, eager to revolutionize the tourism sector with innovative approaches related to Hotels and New Business Models.

Why This Challenge Matters : The global tourism industry is not only vast but also vital to economies worldwide, serving as an economic cornerstone for countless nations and generating over $1.5 trillion in export earnings in 2019 alone. Tourism is more than leisure; it's an economic lifeline. Within this dynamic sector innovation in hotels, rental platforms, and other new modern business models playing a pivotal role, involving the implementation of new and unique ideas, technologies, and practices to elevate the guest experience and enhance operational efficiency. From the integration of smart hotel rooms and mobile check-ins to immersive virtual reality experiences and sustainability initiatives, innovation is reshaping the very landscape of the hospitality industry.

Your Journey: The chosen finalists will have the unique opportunity to present their groundbreaking ideas in the stunning backdrop of Gran Canaria, Canary Islands, Spain. Imagine breathtaking landscapes, a tapestry of rich cultural diversity, unique biodiversity, a climate boasting year-round perfection, gastronomic delights, and vibrant cities. The Canary Islands provide an exceptional stage for your brilliance to shine.

The world is watching, and the future of global tourism begins now. Are you ready to embrace the challenge? Join us and lead the way in the tourism revolution.

• Innovations in Digital Hospitality and Business Models : This comprehensive category explores pioneering technologies and strategies reshaping the digital landscape and operational efficiency of hotels and tourism-related businesses. From enhancing guest experiences through mobile apps, smart room technologies, digital infrastructure, and virtual concierge services to streamlining operations with advanced tools like revenue management systems, property management systems, housekeeping automation, and reservation platforms, participants are encouraged to present holistic solutions that seamlessly integrate technology for an elevated guest journey and enhanced operational excellence. In addition, this category also includes solutions designed for startups reimagining the traditional landscape of business models within the tourism and hospitality sector. Emphasizing creativity and originality, this category welcomes technological and non-technological innovations that bring novel approaches to how businesses operate and generate value. Whether it's redefining revenue streams, introducing innovative pricing structures, or proposing groundbreaking partnership models, this category encourages participants to challenge conventional norms and present fresh perspectives on sustainable and profitable business models.  
• Sustainability Impact: This category is dedicated to startups championing holistic sustainability in the tourism and hotel industry. It encompasses a wide range of initiatives, from environmentally friendly practices and waste reduction to renewable energy solutions. Moreover, it welcomes innovative approaches for preserving resources and extends to areas such as sustainable gastronomy, community engagement, cultural preservation, and health and wellness enhancement. This category invites transformative ideas that contribute to the overall well-being of both the environment and the communities involved in tourism and hospitality.

These categories cover a broad spectrum of innovation in the tourism and hotel industry, providing a diverse range of opportunities for startups to participate and showcase their innovative solutions.

TARGET AUDIENCE AND REQUIREMENTS

The purpose of the competition is to capture particularly the attention of startups and entrepreneurs from across the tourism value chain to facilitate the offering of innovative and smart solutions related the complex challenges the hospitality sector is facing. Startups are invited to participate if meeting the following criteria:

• Are innovative/disruptive in nature and provide value-added and sustainable solutions for the hospitality sector
• Harnessing the impact of new technologies especially within the context of blue and green economies,
• Offer alternative and complementary business models to harness the economic impact of hotels and new business models,
• Be scalable: to have potential for international growth and potential to be applied hotels or new business models,
• Be an Early Stage or Series A or B startups
• Have a minimum viable product or an idea that is ready to be developed and funded,
• Have a tested pilot and business plan
• Have a full-time team
• Emphasize the promotion of digitalization, innovation in environmental preservation and impact on local communities,
• All ways of innovation are welcome: new methods, processes, governance models, social impact initiatives, and technologies.

More information and the Terms of Reference .

• Opportunity to Pitch your solution at the UNWTO 2nd Tourism Tech Adventures in Gran Canaria, Spain, within the framework of DigiON, on 19-20 February 2024.
• Mentorships by UNWTO and top partners
• Tailored support for your startup
• Become a member of the UNWTO Innovation Network
• Scholarship opportunities for the Tourism Online Academy

About Innovation at UNWTO:

The World Tourism Organization (UNWTO) believes that innovation is the key to achieving the United Nations Sustainable Development Goals by 2030. To drive the digitalization of tourism, create an Innovation and Entrepreneurship Ecosystem that will maximize the potential of the sector in terms of economic growth, job creation, and sustainable development, and anticipate, address and overcome the new challenges and trends of the tourism sector, in 2018 UNWTO developed a framework for Innovation, Education, Digital Transformation and Investments.

The IEI Department already launched 23 global, regional, and specific challenges, and 21 Tourism Tech Adventures (Innovation Forums) in 14 countries were held, with an additional 8 online editions. Total funding of 214 + USD million has been gathered for the UNWTO Top Startups

About INFECAR:

The Trade Fair Institution of the Canary Islands (INFECAR) is a meeting point for economic and promotion activities. INFECAR is located in the city centre of Las Palmas de Gran Canaria and it is extremely well-connected with the rest of the island. It also offers its clients a unique track record of experience as leaders in event organisation in the Canary Islands.

It is an active member of the Spanish Association of Trade Fairs (AFE), the Spanish Association of Conference Centres (APCE), the Gran Canaria Convention Bureau, the Global Association of the Exhibition Industry (UFI), and the International Association of American Trade Fairs (AFIDA).

This emblematic venue offers pavilions, a conference centre with multi-purpose rooms, two large parking areas and landscaped gardens.

This combination of infrastructure and services enables professionals from all walks of life and parts of the world to make the most of this exceptional event venue for the organisation of trade fairs, conferences, work meetings or exhibitions in Las Palmas. Gran Canaria is a permanent bridge between Europe, America and Africa and has a consolidated reputation in the field of event organisation, thanks to its unbeatable climate, infrastructures and hotels, as well as the wide range of economic, social and cultural possibilities on offer.

Related links

Previous UNWTO startup competitions INFECAR

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• English (CA)
• Deutsch (DE)
• Deutsch (CH)

Business tourism 101: All you need to know

What is business tourism.

• To participate in internal meetings at different office locations
• To meet business partners (clients or suppliers)
• To go to conferences, exhibitions, trade shows, and other local or international business events
• To take part in company retreats or incentive trips

Why is business tourism important?

• Better understand common goals, needs, and challenges
• Work together more efficiently
• Easily share knowledge and ideas
• Achieve important breakthroughs and solve problems faster

See how to save money on business travel

What are the different types of business tourism, traditional business traveling, incentive trips, conference and exhibitions, how has business tourism evolved over the years.

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How to Develop a Tourism Business

Last Updated: February 16, 2024 Approved

This article was co-authored by Jessica Villegas . Jessica Villegas is a Certified Academic Life Coach and the Founder of Hi-Lite Coaching + Consulting in Winter Garden, Florida. Jessica has over 20 years of leadership experience, and she and her team serve teens and young adults through private coaching, group coaching, workshops, and speaking engagements. She uses workbook exercises, coaching planners, and regular check-ins to support young adults in achieving their academic and personal goals. Jessica received her Bachelor’s in Organizational Communications and Leadership Studies from the University of Central Florida and her Professional Coaching certification through Coach Training EDU, an ICF Accredited Institution, as an Academic Life Coach. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 23 testimonials and 100% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 355,562 times.

A tourism business is a great way to share your passion with others looking to experience a new location or culture, be it in a business or leisure capacity. To develop a tourism business, you need to first decide on your focus and create a business plan. Afterwards, you can move on to marketing and growing your business.

Selecting Your Businesses Focus

• Don't be afraid to send your customers to other businesses—it shows that you know the area well and are dedicated to ensuring they have the best time possible.
• Use your chosen geographic region to guide your focus. For example, if your location is secluded from the populace and dense with wineries, then guided winery tours, local bed and breakfasts, and airport transportation services are all viable business options.

• Imagine how your hotel would look and how it would stand out.
• Ask local business owners about their experience in the industry to get a feel for their day-to-day activities and how they succeed.

• Book a tour with a local agency and get a feel for what they offer. Take note of their pricing and routes.

• Compare the busiest restaurants to the slowest. Ask yourself what they are doing differently and how they could improve.

• For example, you might find that all hotels offer complimentary breakfast, so be sure to offer this. But if you find that none of them offer complimentary dinner, you can offer this to set yourself apart.
• Pinpoint a tourism sector that is not overly congested, and one that you can contribute something unique to.

• For example, if you want to focus on providing tours, decide on a location that you know well in terms of its history, food, and entertainment. If you think hospitality is your calling, decide on the type of foods and beverages that you want to provide to tourists.
• List the contacts that you have within each niche to get a better idea of which one you have the most connections in.

Setting the Foundation for Your Business

• If you provide tours in natural areas, you will likely need specific permits for each region or park.

• Determine if you must carry disability, unemployment, or other types of insurance for your employees.

• Include an outline of the products and/or services your business will be providing for tourists.
• Provide information about your target market and your competition.
• Describe how you plan on running your business and pricing your product or service

• Employee benefits

• Apply for a small business loan or grant if you find that you're low on funds. Visit Grants.gov ( https://www.grants.gov/ ) for a list of grants available around the world, or visit your bank and inquire about loans.

Marketing Your Tourism Business

• Run local promotions for your peers and their family and friends.

• Take out ad space in newspapers, magazines and lifestyle publications.
• Produce all applicable marketing materials, such as logos, regular newsletters, and business cards.

• Be sure to hire a specialist for search engine optimization (SEO) to maximize your site's online presence.

• Stay connected to local tourism industry councils and relevant media and trade organizations.

Growing Your Business

• Post ads on classified websites. Be sure to indicate the skills and experience you are looking for.
• Select employees that are familiar with your business. Remember that you always want to offer your customers a personalized, engaging experience.
• Plan your staff as far ahead as you possibly can. Be sure to plan extra carefully for busy times of the year.
• To make your business work, you really need to invest in your employees. It starts with the mission, vision, and values of the company and how those are permeated throughout your employees and how you deliver that and how you show up as that.

• Track competitor products, prices, and value regularly.

• Create gift cards, promo codes, and vouchers for your customers.

• Make it your primary goal to deliver on your promises and address every customer issue personally.
• Encourage your customers to leave their feedback on social media services.

• Always tell your customers about other sights in the area and tourism businesses close to yours that they can experience while in the area.
• Tell your customers about package deals, sales, and discounts.
• Send customers a follow-up email to thank them for choosing your business and make them feel welcome to return at any time!

• Plan different packages for different times of the year.
• Consider your audience when creating packages. Offer them things that make the experience more enjoyable and convenient.
• Look at packages from competing businesses and try to offer something that they don't.

Community Q&A

You Might Also Like

• ↑ https://smallbusinessbc.ca/article/strategies-start-grow-tourism-business/
• ↑ https://www.business.qld.gov.au/industries/hospitality-tourism-sport/tourism/starting-up/regulations/licences-permits-legislation
• ↑ https://www.business.qld.gov.au/running-business/employing/taking-on-staff/find/assess
• ↑ https://www.rezdy.com/blog/3-costs-you-need-to-consider-when-pricing-your-tourism-product/
• ↑ https://www.capterra.com/tour-operator-software/
• ↑ https://www.iti.gov.nt.ca/sites/iti/files/ProductPackaging.pdf

About This Article

Developing a tourism business is a great way to make a profit while sharing your love of different cultures with new people. A tourism business is any business that caters to tourists, like hospitality, food, and local tours. You’ll need to choose a lucrative niche with little competition to make sure there's space in the market for your business. Choose a location you know well and an industry you have experience in. Unless you already have funding for your business, you’ll need to secure a small business loan, grant, or private investment. You'll also need to write a business plan to present to investors and help you plan your next steps. For more tips, including how to market your tourism business, read on! Did this summary help you? Yes No

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WAKING UP TO A

New era of business travel.

Post-pandemic predictions for 2024

WORK HAS EVOLVED.

That means big changes for business travel.

Corporate travel is undergoing a massive transformation right now. What’s driving it? Big societal shifts. Remote working is here to stay, offering employees greater well-being and more work-life balance. Meanwhile, organizations are dealing with an ever-changing financial landscape and new environmental pressures. And at the same time, consumer trends are bleeding more and more into corporate ones. Combined, this means a whole lot of new expectations and friction to manage when it comes to business travel.

Corporate travel is undergoing a massive transformation right now. What’s driving it? Big societal shifts. Remote working has stuck around, offering employees greater well-being and more work-life balance. Meanwhile, organizations are dealing with an ever-changing financial landscape and new environmental pressures. And at the same time, consumer trends are bleeding more and more into corporate ones. Combined, this means a whole lot of new expectations and friction to manage when it comes to business travel.

Travelport is shining a light on some of the ways our customers have quickly adapted to a changing landscape. Having acquired Deem earlier this year, we’re doubling down on our efforts to modernize business travel. And that starts by finding out what today’s business travelers care about most, and then using these insights to further support the modern retailing efforts of travel management companies (TMCs).

We’ve identified six key trends for the year ahead, using our own research, third-party industry sources, and through the collective brainpower of our customers. We’ve crafted examples of how they have modernized their approach to corporate travel to keep all stakeholders happy. So read on, as we bring you the very latest on the evolution of business travel.

CORPORATE TRAVEL IS BACK IN BUSINESS. BUT WHAT’S CHANGED?

Since the pandemic ended, there’s been lots of speculation about the future of traveling for work. But in 2022, according to GBTA, global business travel expenditure increased by 47 %, topping over one trillion US dollars. And that growth shows no signs of stopping. Spending is predicted to recover to pre-pandemic levels by the end of 2024 — faster than the previously projected mid-2026 forecast.

Why? First and foremost, because business travel is a logistical necessity for many people, like sales reps, client service managers, consultants, conferences and events staff, construction workers, circus folk etc. For these folks, being on the road is part and parcel of their role, and it’s budgeted for even more in the most uncertain of economic climates.Because nothing beats being face-to-face time with customers. And the others? They travel because their organizations want them to, remaining steadfast in the belief that meeting in person drives performance and growth . What might surprise you is to hear that almost nine out of ten (87%) of business travelers agree with them .

of employees think business travel is important to company growth

Source: Uber and GBTA report

Nonetheless, many companies are still struggling to get employees moving, and that’s because many are still working from home. In fact, by 2025 it’s projected that 32.6 million US employees will be remote workers. Since that changes the very nature of what ‘work’ looks like, there are also knock-on consequences for business travel, too.

Balancing what everyone wants and needs is a delicate act, and many companies are turning to TMCs to help them do it. So here are six key findings to take into 2024.

6 BUSINESS TRAVEL TRENDS FOR 2024

(AND HOW TO MANAGE THEM)

Research shows remote working offers employees a much better quality of life. So now, when they’re asked to hit the road, it’s important to remember people are giving up relatively much more than they were a few years ago. Business travel post-pandemic feels like a different (and bigger) ask. That doesn’t mean people don’t want to go, but when they do, they expect the same kind of freedom, flexibility, and personal time they enjoy in their daily lives.

of business travelers say their biggest priority is having options that support well-being, productivity, and aid recovery

Source: Travelport research 2022

To meet that need, our customers understand what ‘well-being’ truly means to people. For some, it means paying special attention to comfort, convenience, reward, and recovery time. For others, it means handier flight times, meeting times, or more R&R time. Overall, the goal is to create a feeling where work trips better reflect a normal day, causing less of an upheaval to one’s personal life. In 2024, employees will expect organizations to be flexible and look after their well-being — and this is even becoming as important as pay to many. This was one of the key takeaways from GBTA 2023 — mirroring the findings from Travelport’s third-party research study earlier this year .

OFFERING CHOICE, CUSTOMIZATION, AND RECOVERY TIME BUILDS GOOD WILL

In this strong employment market, well-being is a consideration when asking employees to travel. Research shows that if well-being suffers, people won’t stick around. Leavers create hassle for companies, as empty roles, recruitment costs, and training time all hit the bottom line either as costs or lost revenue.

of workers would consider leaving a company that does not focus on their well-being

Source: Gympass

Just like travel managers and TMCs, Travelport and Deem also believe the customer should always be at the center of any travel experience. After all, well-being isn’t just about healthcare benefits, lunchtime yoga, or hybrid working, it’s about all aspects of work life. But every individual has a specific definition of well-being — just like every business has a specific set of needs to be successful. So why do travel policies sometimes take a one-size-fits-all approach?

The most successful travel programs balance cost savings with traveler satisfaction. So we offer users a modern UI, robust content, and omnichannel support – and partnering with our customers to develop policies that prioritize wellness and productivity.

Direct Travel

Corporate travel managers and TMCs know it’s critical to provide transparency and give the traveler all the choices they need to make sure their needs are met, even if it’s limited somewhat by business policy. This may mean making exceptions and granting managers permission to override a rule, like adding extra legroom or access to a gym. It may mean building in extra recovery time, so they feel rested and ready for work on their return. And it means making sure employees don’t end up out-of-pocket by forking out for small comforts, like a convenient flight time.

Choosing travel technology that presents transparent, rich, and intelligent content and offers, while letting you set different permissions for different individuals makes this easy.

During the pandemic, many people were hired in locations far away from their designated offices. Others moved away from big cities, while being a ‘digital nomad’ became a career option. Companies meanwhile, got more freedom to hire talent from anywhere, including places where it costs them less. Fast-forward three years, and there’s now a new ask from these employees: to come to the office from time to time. So while ‘business travel’ may not have previously been a part of their job, now their ‘commute’ to a physical office might mean taking a flight instead of hopping in their car.

Visiting other offices isn’t something new, but the purpose, format, and frequency of visits is changing. Plus, it’s not just happening domestically anymore, but internationally, too. The EU, for example is taking steps to allow workers to move more freely between offices, albeit for a limited number of days per year, enabling them to fully immerse themselves in another way of life.

This trend has been dubbed ‘ super commuting ’ by some outlets, but unlike a regular, short-hop train or car journey, there’s more grounds for a business to pay for the trip. According to a Deloitte survey, relocated employees are now taking more trips to the company headquarters, most of which (70%) are either completely or partially paid for by the company. And that means there’s a new — or at least, an accelerated — type of business travel to account for in corporate travel policies.

Because the format of these visiting trips can vary quite a lot compared to typical business travel, e.g. to a conference, sales meeting, and so on. Visiting trips are infrequent and tend to be for longer. They’re usually designed to improve connectivity, morale, and retention, so may incorporate more leisure time and activities.

But the challenge with this (besides the income tax implications) is that many companies still rely on old travel policies that were written pre-pandemic, when this concept didn’t really exist, or at least, was an anomaly.

CORPORATE TRAVEL POLICIES ARE RIPE FOR MODERNIZATION

The many new types of working arrangements mean there’s a huge opportunity for travel managers, and many of them have already started to rethink corporate travel policies for these new and nuanced needs. For example, maybe you work for a big tech firm who takes out a long-term lease on corporate apartments for visiting staff , so your main challenge is finding suitable flights or car rental instead of accommodation. Or maybe your company no longer has a physical office, so your travel budget has been reallocated to get people together every so often. By refreshing your corporate travel policy, you can rise to these new challenges, and better balance the needs of travelers and the business.

Corporate travel policies exist to keep a lid on costs, and hitting budgets is sometimes a key measure of success when sending people on the road. But post-pandemic, business travel is about more than just cost containment . There are new metrics that travel managers and TMCs can help organizations improve, like well-being, retention, or productivity.

of business travelers want full transparency into what they are buying

Source: Travelport research

As consumers, we are all now much closer to the planning, booking, and servicing side of a trip than ever before. Plus, in our professional lives many people now enjoy more freedom working remotely, so it no longer feels natural for travel to be any different. All this means business travelers expect to see a wide variety of options, they expect more control over their trips, and they expect to be trusted to make responsible decisions.

That doesn’t mean don’t need or want the support of a TMC (more on this below) — it means more transparency and flexibility is needed from any modern corporate travel policy. To ensure employees do not bend the rules and find opportunities to poke holes in the process.

FIND CREATIVE WAYS TO MAKE CORPORATE POLICIES WORK FOR EVERYONE

There’s a huge opportunity to look to travel managers who are leading the change right now. Imagine if, instead of just having a set of rules, corporate travel policies were more agile? Yes, we still need rules, but business travel itineraries could certainly be more personalized and a little less one-size-fits-all.

Maybe there’s a preferable hotel a little farther from the client that’s a little cheaper. Maybe a traveler would trade a less comfortable flight for a more comfortable bed. Maybe they’re a foodie and they want to spend less on transport and more for a nice restaurant. It’s about empowering people to make choices and prioritize what’s most important to them, while not exploding costs.

Business travelers today want flexibility and personalization. So we’re giving them more choice, the ability to choose their own flights, hotels, and transportation, and creating custom itineraries to fit their individual needs and preferences.

Executive Travel

This is just one example of how we could rethink corporate policies and rule-setting. Letting business travelers have a say on what’s important to them sweetens the idea of business travel, as well as their affinity for where they work. But thinking this way means looking at business travel in terms of a total package, rather than overseeing each distinct element. But done right, it helps the traveler have a more satisfying trip, without negatively impacting the bottom line.

While companies need employees to travel for business, and they have to navigate new needs and operate efficiently, they’re also under mounting pressure to meet sustainability goals. In the U.S., for example, carbon accounting is set to become an SEC reporting requirement , so public companies at least will be required to reduce their carbon footprint and report on their impact.

And these companies aren’t just facing pressure from governments and environmental bodies. Climate change is a burgeoning topic with consumers too, and their concerns don’t go away just because they’re at work. Increasingly, business travelers — particularly younger ones , who are socially conscious — want more transparency on the environmental impact of their trips. On this point, businesses and employees do agree. So it’s not surprising that 63% of companies are investing more in sustainable travel, and 80% of business travelers want more sustainable options.

Nearly a quarter of business travelers would decline a trip based on sustainability concerns

Concur Study

SEEK OUT INSIGHTS ON TRAVEL CHOICES THAT MAKE A REAL DIFFERENCE

When we talk about the importance of choice, we don’t just mean flight times, bag options, and a choice of chicken or salmon. It’s about giving people more information and helping them make informed decisions. When it comes to sustainability, we believe, and the data support, corporate travel managers will play a huge role in driving things forward, as they have the budget and power to make a real difference. But to do that, customers need more than just a leaf icon in their workflow, they need real insight into what a ‘sustainable choice’ actually reflects.

One option is, instead of focusing on carbon offsetting, look at the carbon generating characteristics of every flight. Booking tools need to give customers and their TMC reliable numbers, so they can be factored into flight choices based on their rule set. That way, the reporting will be more accurate, and you’ll know how you’re really tracking against your carbon goals — something for which government and regulators are increasingly calling.

Finally, it’s worth highlighting one approach that companies are trying to reduce their environmental impact, which is sending employees on longer trips instead of multiple short ones. They arrange more meetings in the same city over a longer time, or a multi-city tour, saving on the total number of take-offs and landings. The downside to this is that longer, more demanding trips hit employee well-being, and we know where that leads, right? Not necessarily, if done right, as we’ll see in the next section.

Fewer but longer trips with more meetings is a good way to help the planet, but what does it mean for Susan who has to spend six days away from home, family, friends, and her expensive gym membership? In order to coax people out of cozy home offices and, business travelers are asking companies to make the prospect as appealing and as purposeful as possible.

It’s interesting to see a disconnect between what businesses and travel managers think matters vs. what employees actually want. According to research, travel managers think it’s about late-start days after travel (74%) or letting the traveler book with an airline/hotel they have a loyalty membership with (68%). But business travelers say they want more, like paid-for premium experiences (45%), or additional paid time-off (42%). In 2022/2023, roughly half of business travelers (47%) included additional time for leisure/personal time while (on at least some) of their trips. A further 61% would like their corporate travel policy to allow for some leisure time, plus the freedom to let partners or families join them at the employee’s expense.

We all missed out on trips during the pandemic, right? Less time in the office means time spent somewhere new and exciting. This is particularly relevant for younger employees , who typically want to travel more and view it as a work perk.

BLENDED TRAVEL EXPERIENCES DRIVE EMPLOYEE ENGAGEMENT

In the past, business trips often meant giving up 24 hours of your day, for a few days or more. But today’s focus on well-being means business travel needs to feel more like a normal day with time built in for R&R. So blended travel may be nothing new, but — as Amex GBT points out — remote working and the associated lifestyle expectations have accelerated the demand for it.

This doesn’t mean creating a vacation for employees, though some travel agencies are already starting to offer this service while some employers are looking at that as an option .. More broadly, this is about making sure your people have the flexibility to enjoy a blended travel experience. And even, helping them do it, through the TMC or corporate booking/expense tool.

of business travelers want recommendations for their trip. 85% want agencies to make them.

Source: 2023 Travelport research

Sometimes that only requires a rule set allowing the employee to use their own credit card for extras through the expense platform and the booking tool. Even with things the company would normally pay for (like hotels or meals), you can simply let the employee pay the difference for an upgrade. Or make it part of a rewards program — there are lots of routes to consider. Or you can allow the traveler to book some extras on the same itinerary. Or let them extend trips over a weekend to visit friends nearby or explore the destination. After all, Frankfurt may not be top of your places-to-visit list, but if work is sending you there, why not make the most of it?

Here’s an example: you’ve sent a salesperson to a meeting in Chicago on Friday, but they’ve also got to be in Cincinnati on Monday. Rather than flying home on Friday night, and back out on Monday, doesn’t it feel more rewarding to just connect the two trips and give them a little extra daily allowance for a ball game or a nice restaurant? It’s still cost savings, and the employee gets a better trip and feels more valued. The company benefits, too, because they’re proving they can be flexible, and that they value people’s well-being and personal time. Plus, they hit their sustainability goals. Win, win, win — as long as everyone’s needs are balanced fairly and satisfactorily.

These days, you really have to expect the unexpected. Whether that’s due to extreme weather events, political instability, strikes, or even, dare we say it, bed bugs — there are a lot of external factors that can cause unexpected changes to any kind of travel. According to Egencia , 69% of frequent business travelers now view disruption as normal. But the good news is, that doesn’t deter 94% of people from doing it.

The not-so-good news is that often business travelers don’t feel like they get much support when they need it. Fortune reports that less than a third of employees say they receive practical advice while traveling, including who to contact in an emergency or what to do in the event of an incident. And only a small majority of business travelers believe their company can help with an emergency or personal crisis while traveling abroad. One thing is for sure, that uncertainty is not great for well-being.

Our customers are telling us: travel is more prone to change than ever now, so we need more support on the road. To keep everyone moving, we’re using modern retailing technology to better manage itinerary changes, self-services, and communicating with customers

Increasingly, business travelers (and especially younger ones) are turning to new technology for help managing disruption too. No, that doesn’t mean they’re going to ask ChatGPT for advice if an earthquake happens. It means they’re using it to get things like real time updates, timesaving tips, view activity heat maps in destinations, and make arrangements if circumstances change unexpectedly.

USE RETAILING TECHNOLOGY TO HANDLE THESE DEMANDS

All areas of the travel industry have faced serious short-staffing challenges over the past three years. Coupled with more demands for more support (especially urgent ones) this is a big strain on TMCs. To tackle this, TMCs and agencies benefit from technology that offers richer insights for the traveler, with the right range of choices available in the corporate booking tool. Individuals have different needs and concerns, and functionality that takes that into account is so important — particularly for female safety and LGBTQI+ people. This also allows our customers to deliver greater duty of care, by considering crime levels and traveler safety without the traveler having to scramble for research.

While 77% of respondents have used chatbots, roughly the same amount want the option of live chatting with a human.

Automation and AI can help companies and TMCs support travelers more proactively, so they don’t need to do it themselves. When something goes wrong, customers need tools to communicate directly with travelers in advance and give them choices to help plan for all eventualities. Many want self-service capabilities, so they feel in control of their trip when the world around them isn’t. These days, people expect a range of contact options and things like live chat, so problems get resolved immediately, without having to wait for a callback. And as always, the human touch is critical : many want a real-life agent always standing by to help if plans change. Surprisingly, this is even more important for younger travelers .

Travelport and Deem believe the customer should always be at the center of both the travel experience and the corporate travel policy. After all, happy travelers make the best ambassadors a company can hope to have representing them out in the world.

Over the past few years, we’ve been innovating and investing in the corporate travel space, because this is a sector we believe in. To that end, we’re focused on modernizing the customer experience and making business travelers happy. And hey, many people really enjoy traveling for work (we sure do). But it’s important to keep in mind what they’re now giving up to do so, especially compared to five years ago.

Now is the time many innovative customers are modernizing business travel policy to put people first, and make the process easy, efficient, and comfortable. If you’re a corporation, that means harmonizing employee needs with your own. If you’re a TMC, you’ll be used to harmonizing everyone’s needs, but now, there are new things to consider.

Yes, that means thinking about things differently. Like measuring success not only by cost containment, but by well-being, retention, productivity, and meeting sustainability goals. But you’ll soon reap the benefits. Employees will be happier. TMCs will play a more invaluable role. Travel managers will find it easier to keep people within policy, cut costs, reduce leakage, and deliver on duty of care. And organizations will slash recruitment costs too.

But to do all that, customers need flexible technology that offers transparency, rich, intelligent content, offers, and the ability to set different permissions at the individual level. It’s our job to help you. We can offer the maximum choice in travel content, enable more flexibility in delivering compliant offers, and supply the data that helps measure results.

We aim to provide all the right choices. We aim to help customers find the right trip.

We aim to deliver a modern, easy-to-use platform that makes booking and servicing, simple.

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With 'bleisure' and fewer workers, the American hotel is in recovery

Alina Selyukh

Vinay Patel, head of Fairbrook Hotels, owns 11 hotels around Virginia. Amar Patel/Courtesy of Vinay Patel hide caption

Vinay Patel, head of Fairbrook Hotels, owns 11 hotels around Virginia.

Midday is quiet at a Hampton Inn & Suites near Dulles International Airport in Northern Virginia. Staff restock the snacks. A young dad bounces a baby among the grays, browns and teals of the lobby. Eventually, a couple of new arrivals roll a suitcase to the front desk, asking to check in early.

The hotel's owner, Vinay Patel, has noticed this interaction waning.

"People are now literally not wanting to go to the front desk," he says. "They'll check in online on the phone similar to the airlines and go straight to [the] room."

Technology has long been transforming hotels, and the pandemic accelerated that change.

Wages, employment, inflation are up, causing headaches for the Fed

It's Tuesday, and for this hotel, that used to mean a crush of business travelers. Instead, Patel has been welcoming a new type of guest: here not just for business or leisure, but a combination of both. "Bleisure" is a hot new term in hospitality, the product of remote-work culture.

All this is part of a big post-pandemic reset for the American hotel: It's shaken up travel habits, erased jobs and put the industry on a circuitous path to recovery.

Getting by with fewer workers

Today almost 200,000 fewer people work in hotels and other lodging than before the pandemic, federal data shows. That's a 9% drop. Lower employment often implies an industry in trouble — but hotels may actually never need as many workers as they once did.

When travel cratered in 2020, hotels were wiped out and over a million workers lost jobs. Housekeepers, front desk agents, maintenance staff went into construction, food, retail. Those who stayed trained to do new tasks. Hotels that offered extra services, like lunches, scaled them back.

Over time, guests learned to skip daily room cleanings for COVID precautions. Breakfasts got more self-served and automated, with waffles and pancakes tumbling out of machines. And in the long run, operating with fewer workers saves companies money.

Hotels say goodbye to daily room cleanings and hello to robots as workers stay scarce

"You know, like it or not ... the pandemic has kind of taught us a lot," says Patel, who owns 11 hotels around Virginia. "We've become a lot more efficient."

Less business, more "bleisure"

Vacationers surged back to hotels with " revenge travel ," but foreign tourists and corporate travelers are still not back in force.

"That's the biggest impact," says Miraj Patel, the chair of the Asian American Hotel Owners Association, whose members own the majority of U.S. hotels, and Vinay Patel's nephew. "The full recovery is still not there."

The Indicator from Planet Money

Opening a hotel during a pandemic.

The "bleisure" travelers make up for some of the losses, says Vinay Patel. They come for meetings, and stay longer to visit the Virginia wineries. And at the Hampton, six miles from the airport, that's upended the ebb and flow.

Before the pandemic, "you do not mess with Tuesday-Wednesday," Patel recalls. "Business travelers come down on Tuesday-Wednesday."

And these days? "It's spread out a lot more," he says.

Questions about the industry's future

Major hotel chains, like Hilton and Marriott, have seen their stock price resurge to record highs this year. That's partly because luxury hotels have fared much better than the rest.

People stayed more often at upscale brands and less in economy lodging in early 2024 versus 2023, says Jan Freitag, who tracks hospitality analytics at the real estate data firm CoStar.

Overall hotel occupancy neared 64% in March compared to 68% in 2019, CoStar found. That suggests near-recovery from pandemic collapse, though the lag does obscure millions of rooms that got built, opened and not filled.

"We have more rooms available now, and we are selling fewer rooms than we did," says Freitag.

Price-wise, the average cost has jumped to $155 per room from $129 in 2019, Freitag says. That's a 20% increase. At the same time, overall U.S. inflation added up to almost 23% over those years. So hotel owners list plenty of higher costs, too: taxes, wages, insurance, coffee, cups, linens, detergent.

A hotel worker's 3-hour commute tells the story of LA's housing crisis and her strike

Add in high interest rates, plus banks being stingier with loans, and a new concern hovers overs the industry's future: Fewer people have been buying and building new hotels.

That includes Vinay Patel in Virginia, who keeps delaying construction on a lot where he originally planned to break ground when the pandemic began.

"I just can't make the numbers work right now," he says. "I have to wait another year to two years."

Still, he notes a silver lining: There's less competition for his existing hotels — for now.

NPR's Scott Horsley contributed to this report.

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Government of Canada launches major new initiative to support Indigenous tourism

From: Innovation, Science and Economic Development Canada

News release

New funding will support large-scale “signature” Indigenous tourism projects

May 9, 2024 – Gatineau, Quebec 

Indigenous tourism helps advance economic reconciliation, while allowing the sharing of Indigenous cultures and histories across Canada. That’s why supporting its growth, in close partnership with First Nations, Inuit and Métis communities, is one of the Government of Canada’s top priorities. One of the many ways in which the government invests in Indigenous tourism is through the Indigenous Tourism Fund ( ITF ), a $20 million investment in both large and small Indigenous projects. The first stream of the ITF, the Micro and Small Business Stream, was launched in November 2023 and has already supported 145 projects across the country.

Today, the Honourable Soraya Martinez Ferrada, Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec, announced the launch of the ITF’s Signature Indigenous Tourism Experiences Stream ( SITES ). With $10 million in federal funding, SITES will support major Indigenous tourism projects, awarding contributions of $500,000 to $1.25 million. The funded projects will build on existing tourism destinations, many of which are located around significant cultural and natural sites in Indigenous communities. Minister Ferrada made the announcement as part of the 2024 Indigenous Prosperity Forum.

This funding, part of the broader $20 million ITF, will support key experiences that anchor tourism destinations in Indigenous communities, and it will help develop the infrastructure and services needed for tourism. Today’s announcement underscores the government’s commitment to working with Indigenous leaders and communities to help grow Indigenous tourism.

The National Aboriginal Capital Corporations Association (NACCA) will deliver SITES. An umbrella organization for more than 50 Indigenous financial institutions, NACCA has over 35 years of experience in Indigenous economic development. NACCA’s successful track record, its robust network and the significant contributions of its members—which have collectively facilitated $3. 3  billion in loans to Indigenous businesses—make it an ideal partner to manage this Indigenous-led process.

SITES will support projects that make Indigenous tourism sites more accessible, encourage overnight stays and boost spending. It will favour initiatives that can anchor larger tourism destinations and attract other sources of financing. NACCA will also lead a committee, including representatives from the Indigenous Tourism Association of Canada and provincial and territorial Indigenous tourism organizations, to assist in identifying and evaluating projects. This committee will ensure that projects contribute positively to communities and can attract further investment. NACCA will oversee the application process, disburse funds, monitor project progress and make all final funding decisions.

“Indigenous tourism has the power to advance economic reconciliation while allowing Indigenous communities to share their cultures and histories. That’s why helping it grow and thrive is one of our top priorities. Through this Indigenous-led process, we are supporting communities, and the tourism businesses in those communities, in making their own decisions and developing tourism at their own pace. I am so excited to see how this funding will make ‘signature projects’ a reality in so many Indigenous communities.” – The Honourable Soraya Martinez Ferrada, Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec

“ NACCA is pleased to oversee the implementation of the Signature Indigenous Tourism Experiences Stream (SITES) programming, aimed at enhancing tourism offerings within First Nations, Métis and Inuit communities. Our ISO 9001 certification underscores our commitment to quality and reinforces our reputation as a trusted partner of the Government of Canada. With a rich history and extensive experience in Indigenous lending and business support across all sectors of the economy, NACCA and the network of Indigenous financial institutions are well equipped to assist Indigenous businesses. NACCA takes great pride in helping Indigenous businesses feature vibrant cultures while bolstering local economies through tourism.” – Shannin Metatawabin, CEO, National Aboriginal Capital Corporations Association

Quick facts

Before the pandemic, Indigenous tourism was the fastest-growing segment in the Canadian tourism market, posting significant gains in job creation and contributions to Canada’s GDP. 

The Indigenous tourism industry was particularly hard hit by the impact of the COVID-19 pandemic and has been slower to recover.

Budget 2022 dedicated $20 million to the Indigenous Tourism Fund (ITF) to aid the industry’s recovery from the pandemic. 

The Micro and Small Business Stream of the ITF was launched on November 2023. As of March 28, 2024, the Indigenous Tourism Association of Canada has approved 145 program applications, or $3,603,490 in support.

In addition, at least 15% of the Tourism Growth Program from Budget 2023 will be invested in Indigenous tourism sites.

Associated links

• The Federal Tourism Growth Strategy
• The Canadian tourism sector

Marie-Justine Torres Press Secretary Office of the Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec 613-327-5918 [email protected]

Media Relations Innovation, Science and Economic Development Canada [email protected]

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Artificially Intelligent Help for Planning Your Summer Vacation

Travel-focused A.I. bots and more eco-friendly transportation options in online maps and search tools can help you quickly organize your seasonal getaway.

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By J. D. Biersdorfer

J.D. Biersdorfer has been using smartphone apps for travel since the summer of 2007.

The summer travel season starts in just a few weeks, but if you are looking for software that goes beyond simply booking flights and hotels, you’re in luck. Search engines enhanced by artificial intelligence can help with your research and outline full itineraries. Certain older apps have recently been updated to suggest more eco-friendly travel options. And keeping it all organized on your phone is easier than ever. Here’s an overview.

Using an A.I. Travel Agent

General-purpose A.I.-powered search tools and chatbots like Google’s Gemini spin up a list of things to do on your vacation when asked, but A.I. bots that are fine-tuned for travel queries are often more comprehensive. These bots scout destinations, plan itineraries, search for accommodations and flights, map out road trips and do more — grabbing a lot of information at once and saving you all that time-consuming web trawling.

Give the software your specifics — like destination, length of stay, interests — and see what it suggests. Many A.I. helpers are free to use if you sign up for an account, but some charge a subscription fee for premium services; your app store has specifics.

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But as others have also noted, while A.I. travel planners have much potential, many are still works in progress and usually display disclaimers admitting so.

A.I. bots have been known to offer generic advice like “enjoy lunch at a local restaurant,” suggest activities that are out of season or too far apart, repeatedly recommend the same restaurant, consistently steer you to their advertisers or point you to locations that have closed. If you ask different bots the same question, you may get nearly identical suggestions, all scraped from the same tourism websites.

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Finding Earth-Friendly Options

There’s no shortage of apps for booking transportation to your destination. But if you want to keep the environment in mind, recent updates to Google’s Maps and Search apps now suggest routes and methods that lower your personal impact on the planet.

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Other apps available for those seeking environmentally minded vacations include Bikemap for community-sourced cycling routes around the world, HappyCow for vegan and vegetarian travelers and Tap Hydration and Water Stations to locate sources for refilling reusable water bottles.

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If you don’t already have software for consolidating your trip information, your phone’s default apps can help. Electronic boarding passes, hotel reservations and advance tickets can be quickly added to the digital wallet on your phone; a pragmatic paper backup tucked in your bag is insurance. Google and Apple offer to automatically add reservations and events from email and messages to your calendar .

Free services like TripIt (and its phone apps ), TripCase (also with Android or iOS apps) and Wanderlog automatically put all your travel information in one place, typically by scanning the information in your confirmation emails. TripIt Pro , a $50-a-year subscription version, adds more features like seat, fare and airline-points trackers, as well as international travel tools and regional risk alerts like those for extreme weather that can affect airline schedules and public safety .

A.I. bots and travel apps will continue to evolve and, hopefully, make vacation planning even easier in the future. Just don’t forget to occasionally put the phone down and enjoy your time off once you get there.

J.D. Biersdorfer has been writing about consumer technology for The Times since 1998. She also creates the weekly interactive literary quiz for the Book Review and occasionally contributes reviews. More about J. D. Biersdorfer

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