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As we witness 2020 fueled by technological advancements, the world of travel will undergo major changes. With consumer behaviors evolving in tandem, by the end of the century the “2030 traveler” will be a more connected, informed and environmentally conscious individual seeking unique experiences and bespoke travel options. With the rise of automation, artificial intelligence and sustainable travel practices, our future travelers will have access to a range of exciting new opportunities that will change the way we explore the world.
increase connectivity
One of the biggest changes we will see in travel over the next five years is increased connectivity. With the proliferation of 5G networks, wearable technology and the Internet of Things, travelers will be able to seamlessly access information and communicate with others no matter where they are in the world.
Real-time translation tools are starting to break down language barriers, making it easier for travelers to connect with locals and assimilate into new cultures. Wearable technology such as smartwatches and fitness trackers also allow travelers to monitor their health while on the go, while tracking their travel itinerary and providing personalized recommendations. We’re starting to see big changes, as travelers will be able to stay in touch with loved ones back home, share their experiences in real time, and use digital tools to enhance their travel experience.
According to a 2021 survey by Booking.com, 63% of global travelers say being able to stay connected while traveling is “essential”. The survey also found that 70% of travelers use technology to explore destinations and plan trips, with 57% saying they prefer to use apps or websites to book travel arrangements. These statistics highlight the growing importance of connectivity and technology in travel, as travelers rely on digital tools and services to stay informed, connected and engaged while on the road.
Customization and Personalization
Customization and personalization will also be key drivers of the travel industry over the next five years. The use of artificial intelligence and machine learning algorithms enables travel companies and insurance brokers to collect and analyze vast amounts of data on individual travelers, from their past travel history to their personal likes and interests. This enables them to provide personalized advice on insurance, destinations, accommodation and activities based on our travellers’ unique profiles.
Enter embedded and parametric insurance, rising over the next five years to become a must-have for future travelers. According to Forbes, the number of travelers planning to purchase travel insurance in 2023 will outpace the previous seven-year average. Embedded insurance is integrated into the purchase of a product or service, such as travel insurance that is automatically included when a traveler books a flight or hotel.
Parametric insurance, on the other hand, is an insurance that pays out based on predefined parameters rather than actual losses. Travelers can purchase parametric insurance, which pays out a fixed amount if their flight is delayed beyond a certain amount of time, regardless of the cause of the delay. This type of insurance is usually used to protect against specific risks or events that are beyond the traveler’s control, providing a simple and straightforward way to manage risk.
Recently, insurance technology has been integrated into every aspect of the travel experience, making travel planning and booking easier, improving the overall travel experience of travelers and making it more seamless, convenient and personalized.
Sustainable Tourism Practices
Younger generations are already thinking about sustainable travel, in fact 69% of travelers want to travel sustainably. Over the next five years, we will see a major shift towards sustainable tourism practices as travelers become more environmentally conscious.
To this end, the tourism industry has begun to adopt more sustainable practices, from the use of electric and hybrid vehicles to the implementation of renewable energy in hotels and resorts. Travelers are prioritizing eco-friendly accommodation and transportation options to minimize their carbon footprint, such as bike-sharing schemes and public transport.
Sustainable tourism also focuses on supporting local communities, economies and cultures, promoting responsible and ethical tourism practices. As people become more aware of the impact travel has on the environment, future travelers will seek sustainable and responsible experiences that ensure their travels have a positive impact on the planet and local communities.
Changes in tourist demographics
As the world becomes more connected, seamless travel becomes more of a reality. According to Skift’s research, people from a wider range of age groups will have the opportunity to explore new destinations in the years to come. Baby boomers will retire or retire, and with the rise of digital nomad culture, travelers will include a more diverse age group, from Gen Z while working remotely to seniors on retirement cruise ships. This is creating a more vibrant and diverse tourism industry, with people of all ages seeking unique experiences that meet their interests and needs.
The global middle class is also continuing to grow, which means more people from emerging economies are able to travel, opening up new markets for tourism. Over the next five years, travelers will be more globally aware and culturally sensitive, seeking authentic and immersive experiences that allow them to connect with local communities and cultures.
Today’s travel industry is undergoing major changes, driven by technological advancements, demographic shifts, and a growing focus on sustainability and connectivity. Travelers are looking for experiences that meet their unique interests and needs while minimizing their impact on the planet. With virtual and augmented reality technologies, artificial intelligence and machine learning algorithms, and autonomous transportation, tourism is changing the way we explore the world, making it more convenient, efficient, and seamless.
about the author
Ido Hertz is Vice President of Product at Pattern Insurance in Tel Aviv, leading their rapid growth in the global embedded insurance market. He is shaping the company’s product vision, strategy and execution. With more than 20 years of experience in the technology industry, Ido was most recently based in Asia as Agoda’s Head of International Travel Recovery Product, leading company-wide initiatives and addressing the changing needs of travelers during the pandemic.
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