Exploring the Future of Travel: Balancing Sustainability and Transformation with Destination Growth

This opinion piece examines key insights from the DTTT WTM Breakfast Briefing; in partnership with Skyscanner, The Travel Corporation (TTC) and Core Optimisation.

The tourism industry is currently undergoing a significant digital and sustainable transformation, driven by evolving traveller behaviour and technological advancements. This opinion piece examines key insights from the DTTT WTM Breakfast Briefing held on 6 November 2024, in partnership with leading travel organisations Skyscanner, The Travel Corporation (TTC) and Core Optimisation, offering valuable perspectives for businesses and destinations seeking to adapt and thrive in this dynamic landscape.

2025 Traveller Trends

2025 will be defined by a continued eagerness from travellers to explore the world, with 43% of travellers globally planning to increase their travel frequency compared to 2024, according to Skyscanner's 2025 Horizons Report. This enduring passion for travel is further underlined by the fact that 37% and 31% of travellers intend to spend more on flights and accommodation respectively.

An increasing interest in community and collective experiences will shape travel in 2025, underscoring a shift towards experiences that foster a sense of belonging and shared interests. This trend manifests in various forms:

  • Sport Mode: TV shows have captured new audiences, encouraging travellers to experience these events with other fans.
  • Astro Adventurers: As our understanding of the universe expands, travellers increasingly seek celestial experiences through stargazing and dark sky tourism.
  • Reset Jetters: Beyond traditional spa retreats, travellers desire holistic wellness experiences that promote resilience, purpose and longevity
  • Art-Venture: Contemporary audiences want immersive experiences that transport them beyond the canvas, allowing them to actively engage with art and culture.
  • Cowboy Core: The resurgence of Western culture, fuelled by popular media and a growing appreciation for rustic charm, has inspired travellers to seek authentic ranch experiences.
  • Horti-Culture: From serene garden retreats to hands-on workshops, travellers seek green getaways to reconnect with nature.
  • Gami-Vacation: Gamers are taking their passion for video games to new heights, combining their love of gaming with travel to attend conventions and explore gaming hotspots around the world.

Despite these emerging trends, cost consciousness remains a key factor influencing destination choices, with flight (60%) and hotel (58%) costs being the primary considerations for travellers. Social media's reign as a travel inspiration powerhouse also continues, with 48% of travellers globally relying on it for travel ideas. Additionally, personal recommendations (44%), online media (35%), guidebooks (34%) and film and TV (33%) play significant roles in influencing travel decisions.

Nevertheless, some signs are appearing that the role of influencers may soon need to evolve by placing a stronger focus on identifying hidden gems. With rising awareness of sustainability among travellers, 26% indicated a willingness to consider less-frequented destinations to mitigate their environmental impact. This burgeoning eco-consciousness reflects a growing desire to travel responsibly despite lingering concerns about safety (50%) in lesser explored destinations and a lack of knowledge about other destinations (32%) or the activities available in them (30%).

The influence of generative AI in shaping travel planning and booking is also growing, with 47% of travellers expressing confidence in using this technology for these purposes - including most of those under 55. This technological shift is evident in the specific ways travellers are employing AI, including researching destinations (35%), comparing flight or hotel options (32%) and crafting travel itineraries (30%).

Industry-Wide Digital Transformation

With the rapid emergence of generative AI, digital transformation is necessary for the tourism sector's long-term success. This involves seamlessly integrating technological advancements across all facets of a business, fundamentally changing how it operates and delivers value to customers. Investing in delivering exceptional customer experiences is crucial, as increased conversion rates can significantly boost a business's digital success. Moreover, as automation becomes more prevalent, it becomes vital to continuously innovate and invest in employee upskilling. This transformation is essential for improving efficiency and leveraging data-driven insights to enhance customer satisfaction and create a more resilient business model.

Core Optimisation is leveraging expertise in this field to lead the implementation of Fáilte Ireland's pioneering Digital that Delivers programme; aimed at transforming the digital capabilities of attractions and activity providers. Through this process, businesses are augmenting their foundational knowledge of digital best practices, business strategies and pricing and distribution models to improve commercial awareness of SMEs and the associated value around image and positioning. This is complemented by more broadly advancing digital acumen through raising awareness of the latest trends in boosting website and app performance and outlining the core requirements for leveraging emerging technologies.

To successfully navigate this digital transformation, businesses need a robust framework, spearheaded by engaged business owners and leaders. This framework is built on four key pillars:

  • Digital Maturity - Careful Reflection of current abilities and their implications for the destination is essential for understanding where to direct investment in digitalisation. In addition to this, businesses should also become aware of how the software providers they use have invested in incorporating AI tools into their services and understand how they can benefit from this to improve content creation, social media management, customer interactions, personalised marketing and tapping into the growing role of generative AI in trip planning by ensuring maximum visibility of products across leading large language models.
  • Digital Skills Development - Technology is always improving, requiring a thorough assessment of employee capabilities and the adaptation of training based on this knowledge to complement and build upon existing knowledge and skills.
  • Roadmap Development - Creating a strategic plan that outlines the resources and level of investment required over a defined period to successfully undertake the transformation process. This should focus on ensuring that actions are prioritised correctly and implemented gradually.
  • Data-Driven Decision-Making - Transforming different data sources into actionable insights that help to determine and track Key Performance Indicators. This involves breaking silos from standalone platforms to centralise all the rich data into one location and strengthening analytics capabilities to create a clear snapshot of user behaviour patterns and regional demographics.

Keeping the four pillars of the digital transformation framework in mind, five areas need to be focused upon. This includes ensuring leadership teams have the right skills, clear governance and can provide sufficient support, a people-centred approach that fosters the right work culture and knowledge across teams and a constant focus on the customer experience across all touchpoints and ensuring that each one is optimised. Alongside this, leveraging emerging technologies and automating operations helps streamline the management of all business functions - from marketing to sales and customer support - alleviating pressure on teams.

The Power of Partnerships for Sustainability

Partnerships are indispensable not only for aiding digital transformation, but also for propelling sustainability efforts within the tourism industry. Through collaboration, tourism organisations can leverage shared resources, expertise and networks to develop and implement impactful sustainability initiatives to overcome shared challenges.

TTC provides a compelling example of how partnerships can drive sustainability forward by focusing on four key areas since its sustainability journey began in 2008:

  • Achieving net-zero emissions by 2050: These ambitious targets are validated by the Science Based Targets Initiative and supported by an industry-first Carbon Fund that invests in projects that help decarbonise the tourism industry, with Contiki achieving a 60% decrease in emissions across its European operations.
  • Implementing nature-based solutions:  TreadRight grants are used to support biodiversity protection projects, working with five major partners globally to restore ecosystems.
  • Developing Make Travel Matter® Experiences:  A collection of conscious travel experiences has been launched that align with the UN Global Goals, enabling travellers to have a tangible positive impact on their destination.
  • Forging sustainable partnerships: Collaborating with DMOs to tackle sustainability challenges head-on.

TTC's approach to sustainable partnerships is strategically based on the traditional marketing model - targeting several key areas, including product development, contracting and supplier relationships and marketing and distribution. Two successful industry-first collaborations between TTC and DMOs exemplify this approach to climate, sustainable experiences and supply chain transition:

  • Switzerland Tourism: This partnership used a top-down approach to drive the post-COVID tourism recovery in a sustainable manner and drive increased enrolment in the Swisstainable programme through educating businesses, trade partners and visitors on how to travel sustainably in Switzerland. Acting from the front, the uptake of the Swisstainable programme is being integrated as a condition of TTC's supplier contracting, with 67% of suppliers now achieving this certification. Alongside this, product development has been supported by the launch of the first Swisstainable tour that only includes certified attractions and integrates rail travel as a core aspect of the experience - growing of 150%, showcasing the desire of tourists to book sustainable travel options - and the doubling of Make Travel Matter® Experiences. Through integrated campaigns and incentives for travel agents, a 20% increase in Switzerland tour sales has been achieved over a three-year period, with a 74% increase in January-April departures driven by a campaign focused on off-peak travel.

  • VisitScotland: This tripartite collaboration, which arose from discussions following COP 26 in Glasgow, is focused on decarbonising the supply chain and supporting VisitScotland's ambition to become the world's first net-zero destination. Key outcomes to date include boosting joint efforts to address challenges such as overtourism tenfold through regular ideation and brainstorming sessions, the development of a dedicated toolkit to support sustainable tourism practices, a 30% increase in Make Travel Matter® Experiences, the introduction of a new sustainable luxury tour and a month-long multichannel campaign which drove a 68% surge in impressions for sustainable travel-related searches.

While rapid progress can sometimes be obtained from individual efforts, collective action is required to reach far-reaching goals. This is a fundamental consideration for ensuring the advancement of tourism's digital and sustainable transition. Navigating this evolving landscape necessitates robust frameworks that support long-term success and strong leadership from senior managers within DMOs and businesses to drive change.

The tourism industry is currently undergoing a significant digital and sustainable transformation, driven by evolving traveller behaviour and technological advancements. This opinion piece examines key insights from the DTTT WTM Breakfast Briefing held on 6 November 2024, in partnership with leading travel organisations Skyscanner, The Travel Corporation (TTC) and Core Optimisation, offering valuable perspectives for businesses and destinations seeking to adapt and thrive in this dynamic landscape.

2025 Traveller Trends

2025 will be defined by a continued eagerness from travellers to explore the world, with 43% of travellers globally planning to increase their travel frequency compared to 2024, according to Skyscanner's 2025 Horizons Report. This enduring passion for travel is further underlined by the fact that 37% and 31% of travellers intend to spend more on flights and accommodation respectively.

An increasing interest in community and collective experiences will shape travel in 2025, underscoring a shift towards experiences that foster a sense of belonging and shared interests. This trend manifests in various forms:

  • Sport Mode: TV shows have captured new audiences, encouraging travellers to experience these events with other fans.
  • Astro Adventurers: As our understanding of the universe expands, travellers increasingly seek celestial experiences through stargazing and dark sky tourism.
  • Reset Jetters: Beyond traditional spa retreats, travellers desire holistic wellness experiences that promote resilience, purpose and longevity
  • Art-Venture: Contemporary audiences want immersive experiences that transport them beyond the canvas, allowing them to actively engage with art and culture.
  • Cowboy Core: The resurgence of Western culture, fuelled by popular media and a growing appreciation for rustic charm, has inspired travellers to seek authentic ranch experiences.
  • Horti-Culture: From serene garden retreats to hands-on workshops, travellers seek green getaways to reconnect with nature.
  • Gami-Vacation: Gamers are taking their passion for video games to new heights, combining their love of gaming with travel to attend conventions and explore gaming hotspots around the world.

Despite these emerging trends, cost consciousness remains a key factor influencing destination choices, with flight (60%) and hotel (58%) costs being the primary considerations for travellers. Social media's reign as a travel inspiration powerhouse also continues, with 48% of travellers globally relying on it for travel ideas. Additionally, personal recommendations (44%), online media (35%), guidebooks (34%) and film and TV (33%) play significant roles in influencing travel decisions.

Nevertheless, some signs are appearing that the role of influencers may soon need to evolve by placing a stronger focus on identifying hidden gems. With rising awareness of sustainability among travellers, 26% indicated a willingness to consider less-frequented destinations to mitigate their environmental impact. This burgeoning eco-consciousness reflects a growing desire to travel responsibly despite lingering concerns about safety (50%) in lesser explored destinations and a lack of knowledge about other destinations (32%) or the activities available in them (30%).

The influence of generative AI in shaping travel planning and booking is also growing, with 47% of travellers expressing confidence in using this technology for these purposes - including most of those under 55. This technological shift is evident in the specific ways travellers are employing AI, including researching destinations (35%), comparing flight or hotel options (32%) and crafting travel itineraries (30%).

Industry-Wide Digital Transformation

With the rapid emergence of generative AI, digital transformation is necessary for the tourism sector's long-term success. This involves seamlessly integrating technological advancements across all facets of a business, fundamentally changing how it operates and delivers value to customers. Investing in delivering exceptional customer experiences is crucial, as increased conversion rates can significantly boost a business's digital success. Moreover, as automation becomes more prevalent, it becomes vital to continuously innovate and invest in employee upskilling. This transformation is essential for improving efficiency and leveraging data-driven insights to enhance customer satisfaction and create a more resilient business model.

Core Optimisation is leveraging expertise in this field to lead the implementation of Fáilte Ireland's pioneering Digital that Delivers programme; aimed at transforming the digital capabilities of attractions and activity providers. Through this process, businesses are augmenting their foundational knowledge of digital best practices, business strategies and pricing and distribution models to improve commercial awareness of SMEs and the associated value around image and positioning. This is complemented by more broadly advancing digital acumen through raising awareness of the latest trends in boosting website and app performance and outlining the core requirements for leveraging emerging technologies.

To successfully navigate this digital transformation, businesses need a robust framework, spearheaded by engaged business owners and leaders. This framework is built on four key pillars:

  • Digital Maturity - Careful Reflection of current abilities and their implications for the destination is essential for understanding where to direct investment in digitalisation. In addition to this, businesses should also become aware of how the software providers they use have invested in incorporating AI tools into their services and understand how they can benefit from this to improve content creation, social media management, customer interactions, personalised marketing and tapping into the growing role of generative AI in trip planning by ensuring maximum visibility of products across leading large language models.
  • Digital Skills Development - Technology is always improving, requiring a thorough assessment of employee capabilities and the adaptation of training based on this knowledge to complement and build upon existing knowledge and skills.
  • Roadmap Development - Creating a strategic plan that outlines the resources and level of investment required over a defined period to successfully undertake the transformation process. This should focus on ensuring that actions are prioritised correctly and implemented gradually.
  • Data-Driven Decision-Making - Transforming different data sources into actionable insights that help to determine and track Key Performance Indicators. This involves breaking silos from standalone platforms to centralise all the rich data into one location and strengthening analytics capabilities to create a clear snapshot of user behaviour patterns and regional demographics.

Keeping the four pillars of the digital transformation framework in mind, five areas need to be focused upon. This includes ensuring leadership teams have the right skills, clear governance and can provide sufficient support, a people-centred approach that fosters the right work culture and knowledge across teams and a constant focus on the customer experience across all touchpoints and ensuring that each one is optimised. Alongside this, leveraging emerging technologies and automating operations helps streamline the management of all business functions - from marketing to sales and customer support - alleviating pressure on teams.

The Power of Partnerships for Sustainability

Partnerships are indispensable not only for aiding digital transformation, but also for propelling sustainability efforts within the tourism industry. Through collaboration, tourism organisations can leverage shared resources, expertise and networks to develop and implement impactful sustainability initiatives to overcome shared challenges.

TTC provides a compelling example of how partnerships can drive sustainability forward by focusing on four key areas since its sustainability journey began in 2008:

  • Achieving net-zero emissions by 2050: These ambitious targets are validated by the Science Based Targets Initiative and supported by an industry-first Carbon Fund that invests in projects that help decarbonise the tourism industry, with Contiki achieving a 60% decrease in emissions across its European operations.
  • Implementing nature-based solutions:  TreadRight grants are used to support biodiversity protection projects, working with five major partners globally to restore ecosystems.
  • Developing Make Travel Matter® Experiences:  A collection of conscious travel experiences has been launched that align with the UN Global Goals, enabling travellers to have a tangible positive impact on their destination.
  • Forging sustainable partnerships: Collaborating with DMOs to tackle sustainability challenges head-on.

TTC's approach to sustainable partnerships is strategically based on the traditional marketing model - targeting several key areas, including product development, contracting and supplier relationships and marketing and distribution. Two successful industry-first collaborations between TTC and DMOs exemplify this approach to climate, sustainable experiences and supply chain transition:

  • Switzerland Tourism: This partnership used a top-down approach to drive the post-COVID tourism recovery in a sustainable manner and drive increased enrolment in the Swisstainable programme through educating businesses, trade partners and visitors on how to travel sustainably in Switzerland. Acting from the front, the uptake of the Swisstainable programme is being integrated as a condition of TTC's supplier contracting, with 67% of suppliers now achieving this certification. Alongside this, product development has been supported by the launch of the first Swisstainable tour that only includes certified attractions and integrates rail travel as a core aspect of the experience - growing of 150%, showcasing the desire of tourists to book sustainable travel options - and the doubling of Make Travel Matter® Experiences. Through integrated campaigns and incentives for travel agents, a 20% increase in Switzerland tour sales has been achieved over a three-year period, with a 74% increase in January-April departures driven by a campaign focused on off-peak travel.

  • VisitScotland: This tripartite collaboration, which arose from discussions following COP 26 in Glasgow, is focused on decarbonising the supply chain and supporting VisitScotland's ambition to become the world's first net-zero destination. Key outcomes to date include boosting joint efforts to address challenges such as overtourism tenfold through regular ideation and brainstorming sessions, the development of a dedicated toolkit to support sustainable tourism practices, a 30% increase in Make Travel Matter® Experiences, the introduction of a new sustainable luxury tour and a month-long multichannel campaign which drove a 68% surge in impressions for sustainable travel-related searches.

While rapid progress can sometimes be obtained from individual efforts, collective action is required to reach far-reaching goals. This is a fundamental consideration for ensuring the advancement of tourism's digital and sustainable transition. Navigating this evolving landscape necessitates robust frameworks that support long-term success and strong leadership from senior managers within DMOs and businesses to drive change.

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