2. Many people around the world breathed a sigh of relief with the close of 2016. It was a tumultuous year, marked with surprising celebrity breakups, hard-fought political battles, and sadly, horrifying acts of
violence. The travel industry also had its share of tumult, with major mergers (Marriott & Starwood; Alaska Airlines & Virgin America; Vail Resorts & Whistler Blackcomb), major events (Rio Olympics) and a major
outbreak (Zika).
As we kick off 2017, Edelman looked at the various factors that will impact the ways consumers think about and plan travel in the next year. It will be a year of change â with new policies from the White House
that may affect tourism, evolving worldviews as travelers come to terms with new leadership, and a host of new technology innovations available for major travel brands and small businesses.
We hope you find this snapshot of 7 Trends That Will Shape Travel in 2017 informative and inspiring â and that you will join us in watching how the industry adapts in the coming months.
7 TRENDS THAT WILL SHAPE TRAVEL IN 2017
PRESIDENT TRUMP DEVELOPMENT +
CLIMATE CHANGE
AUGMENTED +
VIRTUAL REALITY
AIRBNBâS AMBITION
LOCAL OBSESSION TERRORISM + WAR MILLENNIAL
RELATIONSHIPS
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Edelman Seattle
West Coast Tourism Lead
3. President Trump
Americaâs first hotelier-in-chief
may mean a boon for business,
but will protectionist policies
repel international visitors?
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4. President Trump
With Donald J. Trump now in office, the U.S. has its first president who is also a hotelier.
The travel industry has never before had one of its own in the White House, but like many
issues surrounding President Trump, experts have varying views on whether the Trump
presidency will have a positive or negative impact on U.S. inbound tourism. On one hand,
the industry can expect pro-business policies and loosening of regulations that may
encourage hospitality real estate development and further airline consolidation. Trump has
also mentioned that he plans to fix Americaâs infrastructure, including its airports, which as
the potential to improve the traveler experience. On the other hand, Trumpâs protectionist
rhetoric from the campaign trail and early days in office â including talk of mass
deportation and the new executive order banning travelers from seven countries â may
dissuade some international visitors from spending their vacations and their money in the
U.S. Of course, in the wake of Brexit and other referendum votes in Europe, the U.S. isnât the
only country seeing a rise in populism. But a number of countries including Canada, France,
Germany, the UK and the United Arab Emirates have issued warnings toward U.S.-bound
travelers, citing concerns such as anti-Muslim and anti-LGBT sentiment. Also, according to
Skift, Brand USA, which is tasked with marketing America as a destination, is reporting that
travelers from Mexico and Germany are already rethinking trips to the U.S. as a result of
the election. This is significant considering international visitors spent $246.2 billion in the
U.S. in 2015 â and the tourism industry supports 7.6 million jobs.
WHAT TO WATCH:
For U.S. travelers, 2017 could see the âstaycationâ evolve to be the âAmerication,â with some
hotels and tour operators creating packages encouraging residents to stay within American
borders. Also, with such deep political divisions between âredâ and âblue,â travelers may
increasingly seek out experiences and destinations where their views are shared.
Regardless, in this political climate there is a clear opportunity for the private sector of the
tourism industry to lead with the message that all of the U.S. is open for tourism, and all
travelers are welcome. From an outbound tourism perspective, with U.S. and Russia relations
rapidly thawing, look for more interest in Russia as a hot spot for international travel â
Lonely Planet and National Geographic have already named Moscow as a top destination
for 2017.
5. Development +
Climate Change
More attention than ever will be
on Sustainable Tourism as the world adapts
to a changing climate and increasingly
mobile population
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10. Airbnbâs Ambition
The trend of Airbnb disrupting the hospitality industry is not new for 2017.
What is new is Airbnbâs ambitious plans to expand into new segments of the travel industry.
The Silicon Valley darling, which is now valued at as much as $30 billion, is setting its sights
well beyond vacation rentals. Concur*, the travel and expenses company, recently issued a
report showing that Airbnb rentals are quickly growing in the business travel space, with
bookings from corporate travelers up 44 percent year over year in the second quarter of
2016. In November 2016, Airbnb launched a new service to allow guests to book more
than just a room â Airbnb Trips now lets users search and book from a selection of 500
curated experiences in 12 cities. These local experiences â things like a Samurai Swordplay
workshop or a classic car class â are a new offering that will help satisfy travelersâ
obsession with all things local (see trend #5). And at the Airbnb Open conference in
November, CEO Brian Chesky hinted that soon add flights, car rentals and other services.
WHAT TO WATCH:
Airbnb seemingly has ambitions to be a master integrator of travel experiences â
for the guest and host. Look for new and unique partnerships with tour operators and
transportation providers. With the new Trips platform, expect opportunities
for restaurants, food and beverage companies, and arts & cultural organizations
to play the role of host for new tourism experiences. But donât expect the hotel industry to sit
idly by while Airbnbâs ambition takes over. Look for hotel brands to evolve their own local
partnerships in an effort to compete with Trips. And as Airbnb continues its lightning-fast
expansion, there will be hiccups â the company is currently battling a list of cities on
regulatory issues â but some experts are holding up the deal Airbnb struck with the city of
New Orleans as an ideal template. Other cities will follow. Why? As one Travel Weekly
headline put it, âAirbnb says resistance is futile.â
12. Local Obsession
It is no secret that social media has changed the way travelers experience destinations.
Gone are the days of relying solely on a concierge or guidebook â as global citizens,
travelers today can crowdsource local suggestions for anything from the best brunch in Bali
to the perfect Instagram posts in Paris. Itâs that ability to go directly to the source that is
fueling travelersâ obsessive pursuit of local experiences â so much so that in October 2016
Facebook launched its âRecommendationsâ feature to better enable friends to share local
knowledge. Some travel brands have jumped on this trend, with Swedenâs Tourism
Association offering a phone hotline for travelers to talk to random Swedes about anything
â and Icelandair offering guests a program where its own crew members serve as
âStopover Buddyâ personal tour guides. Hilton* has launched a new locally-focused brand
with its new Canopy hotels that are designed to showcase the food, culture and local
products of the neighborhoods in which properties are located. Alaska Airlines serves food
from its home town of Seattle â Tom Douglas meals, Beecherâs Cheese, Sun Liquor spirits and
yes, Starbucks* coffee. Authentic, local experiences are also evolving, with tour operators
offering transformative travel, such as heroâs journeys, that allow travelers to return home
with the skills and mindset to implement positive steps to change their lives or the lives of
those around them.
WHAT TO WATCH:
Richard Edelman has predicted that in 2017, local will prevail over global and that brands
should underline their local roots. Look for more big travel brands to move away from mass
market products in favor of local goods served onboard or in-room. And expect like-
minded leaders and organizations to band together for a shared purpose, like the newly-
formed Transformational Travel Collective.
13. Terrorism + War
Cold is the new hot in attracting
tourists during tumultuous times
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14. Terrorism + War
Beyond the immediate and horrifying effects of terror attacks and war, there are potentially
long-term and equally devastating effects on the tourism industry in destinations where
traumatic violence has occurred. Some of the most popular destinations in Europe â including
Brussels, Berlin, Istanbul and Nice â saw terror attacks in 2016, and The New York Times
reported in July that tourism business was down across Europe as a result. Separately, the war
in Syria has displaced 11 million residents, with 4.8 million seeking refuge in neighboring
countries and in Europe â dramatically reshaping many destinations in the last year. The irony
is travel and tourism may actually be a key to fostering peace. In 2016 the World Travel &
Tourism Council (WTTC) partnered with the Institute of Economics and Peace (IEP) to explore
the links between tourism and peace, and the resulting report showed that âcountries with a
more open and sustainable tourism sector tend to be more peaceful.â
WHAT TO WATCH:
Expect major cities, tourist attractions, hotels and cruise lines to offer greater transparency
about safety and security measures to help allay traveler concerns. Destinations with a long
history of peace will be big in 2017. Canada, bolstered by its vivacious new Prime Minister,
Justin Trudeau â as well as its sesquicentennial celebration â has been named #1 on the New
York Timesâ â52 Places to Go in 2017â and was named as the #1 top country in Lonely
Planetâs âBest in Travel 2017.â Quiet and cold destinations seem to be a theme for 2017, with
Alaska (National Geographic), Finland (Lonely Planet, National Geographic, Travel +
Leisure), Ireland (Travel + Leisure, Lonely Planet), Norway (New York Times), Sweden (New
York Times) and Switzerland (Lonely Planet, Travel + Leisure, New York Times) all finding
spots on âBest ofâ 2017 travel lists. Also, as some popular destinations may struggle to regain
momentum in the wake of terror attacks, look for a spotlight on destinations that have been
typically been under the radar for many Western travelers. For example, the Balkans
appeared on âBest ofâ 2017 travel lists from Lonely Planet, Travel + Leisure, AFAR and
National Geographic.