2023 Travel Predictions from Skift Global Forum New York
This September I found myself back in my old roots, the concrete jungle of New York City navigating crowded sidewalks to the subway platforms for the 2022 Skift Global Forum, the flagship global conference on the business of travel. It was fittingly hosted in NYC - a city struck to a standstill during the pandemic and an international hub for hospitality, culture, and travel. after being paused due to the pandemic
So after two years of virtual conferences, this year's Skift Global Forum brought over 700 professionals from across the world representing over 550 companies to their first in-person event - and welcomed more than 800 viewers online. The day-and-a-half conference had a wide range of global travel industry leaders, like Airbnb CEO Brian Chesky (skip down to his keynote), Expedia Group Chairman, Barry Diller, and the CEO of Marriott International Anthony Capuano engaged in powerful, hard-hitting sessions with Skift editors as they shared cutting-edge knowledge, the latest travel industry trends, and what we can expect in the next year.
While the conference robustly covered many areas of the industry - here are five key emerging themes for the 2023 travel industry.
Sustainability Gives Back to Your Destination & the Desire of Your Guests
Probably one of the biggest topics discussed during this year's conference was sustainability. It's no secret that there is severe pressure being placed on the travel industry to reduce carbon emissions. It seems to be a big priority for major travel industry leaders as many have pledged to reach net zero in the next 20-30 years. While it's important to be making the smartest decisions for our environment new data is actually showing that sustainability is a key driver for the consumer nowadays and it can greatly affect their booking decisions.
As boutique hotel managers, property managers, and real estate investors, it’s important that the decisions we make from the construction and design materials of new builds to the activities, and provided guest amenities impact our destination’s environment. Pioneering the sustainable travel movement is Ronald Akili of Potato Head, a boutique hotel and beach club with locations in Bali, Hong Kong, and Singapore. We caught up with Akili after the conference and he shared “Our vision is to be a lifestyle brand that enables people to a better way of living. We are inspired by the idea of a beautiful sustainable lifestyle, where we make everything so beautiful and it just so happens it is more sustainable. We believe it’s easier for people to make a change when they don’t have to compromise.” Potato Head’s approach shows global travelers that luxury exploration doesn’t have to be in excess, wasteful, or compromise on quality. It feeds your soul and the environment you’re immersed in. While many large chains are hyper-focused on targeting new demographics and building new chains and locations at a rapid speed places like Desa Potato are inspiring the idea of a beautiful sustainable lifestyle and trying to find a way to become a part of the solution rather than the problem.
So Long Corner Office, Blended Travel is Here to Stay
A new term taking the travel industry by storm and this year's Skift Global Forum was Blended Travel. Covid-19 resulted in office closures and a rise in the remote workforce, that's no secret. People can now be online in any corner of the world as long as they have a strong enough wifi connection. However, as corporate travel continues to rebound and professionals are venturing to new cities, they're taking advantage of their stays and blending work with pleasure. Back in the day when people were traveling for work, they more often than not were in and out, getting the job done and heading back home. Now, based on recent data, airlines and hotels are noticing that as corporate professionals are heading to new cities for work, they're also taking an extended stay into the weekend. Different from a flexcation, where one travels to a location with the full intention of working remotely and exploring when one can, the lines with blended travel are less blurry.
This means there’s an opportunity to cater to a market beyond the Millenial traveler and capture those Managers and C-Suite executives in metropolitan cities with extended stays. We’re thinking of strategic partnerships with visiting conferences and referral programs with large corporate offices in your area.
The Importance Of Understanding & Connecting With the “In Crowd”
Times are changing rapidly and so are those that find themselves frequently traveling. Let’s talk about the largest segment of travelers today - the ever-intimidating Millennials and Gen Z generations. They are traveling more than Baby Boomers and pushing off getting married and starting families to explore the world and investing in memorable experiences. They value things like health and wellness, happiness, fulfillment, diversity, inclusivity, and equality, and don't resonate with traditional methods of communication. Data is showing they align a majority of their trips with the brands they feel they have a connection to. So the question you should reflect upon is, are you one of those brands? Are you evolving and growing your brand?
Traditional vacation rental management companies and boutique hotels will find themselves lost in a digital-centric crowd if they don’t meet the next generation where they’re looking - on social media and in-app platforms. Need help standing out on social? Check out our 2022 Hospitality Social Media Guide.
The Emotional Force Of Travel
Travel fills you with anticipation, eagnerness, and desire - giving travelers a strong emotional investment in each reservation. Every trip is a moment being molded into a memory and leaves an imprint on people, good or bad. While going on vacation is a privilege, people will always have dreams to visit certain countries, tropical beaches, national parks, and crave new cultural experiences. That being said, our travel industry has a strong emotional influence on how and where people flock to.
In the past, vacations first started with airfare - where are the fastest flights for the most affordable price? Once the ticket is booked, travelers piece together the rest of their trip including accommodations and experiences. Airbnb CEO Brian Chesky thinks he’s figured out how to get customers to flip the script.
The pandemic made people rediscover locations that were never on their radar. More people took road trips and visited locations that never really caught their eye because they never really had to. Due to this, Chesky thinks a majority of people are going to have more considerations for where they travel. Have you noticed Airbnb’s home page is no longer about the location but rather the type of stay you want? They’ve categorized all of their properties and captivate the browser with beautiful home photography and sell the fantasy before you even realize what part of the map you’re searching on.
When discussing Airbnbs newest approach Chesky said “What we want to do now is we want to be more in the inspiration business. You come to Airbnb and we can point demand to where we have supply, that helps solve our supply issue. We can highlight what makes us unique and get into the top of the purchasing funnel, which is basically giving people ideas of where to travel based on what’s available.” More and more travel companies are figuring out ways to get us to certain destinations without us even realizing it. The power is truly in their hands. Watch Chesky’s full closing keynote below.
Modern Advertising And The Importance of Inclusivity
With today's economic uncertainty and geopolitical differences, travel demand remains strong. People are still trying to make up for lost time due to covid-19 lockdowns but that being said, that doesn't mean they’re just booking anything. Consumers are just as or if not more conscious of advertisements and are harder to sell. A big part of all advertising today should be inclusive. If travelers can’t envision themselves or at least a wide range of identities in your ads and travel offerings, they’re not interested in booking. Jennifer Andre, Vice President of Business Development at Expedia Group Media Solutions shared that 7 in 10 research respondents said they would choose one destination or travel offer over another if they felt it was more inclusive — and would even be willing to pay more. Seventy-eight percent of respondents admitted they’ve made a travel choice based on promotions or ads they felt represented them in messaging and/or visuals alone. The next generation of travelers seeks meaningful, inclusive experiences that will connect them with a wide range of people and learning opportunities within a destination.
There are a lot more factors in booking decisions nowadays, travelers aren't just looking at prices, they want to know your brand story, what you stand for, and your outlook on society.
The bottom line?
The travel industry is stepping into a Golden Age where customization, experiences, storytelling, and social and environmental impact are more important to the next generation of travelers.
This year's Skift Global Forum was an exciting event that brought together some of the industry's top leaders to discuss insightful topics and share data-driven research on the Travel Industry today and what we might expect for its future. I had a great experience and learned more than I could have ever imagined. Until next year, Skift Global Forum!