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With annual travel insurance , you are well insured throughout the year. You can go on holiday as often as you like. With short-term travel insurance , you are only insured for a single trip. If you go on holiday more than twice a year, an annual travel insurance policy will usually cost you less.

First of all, you are insured against theft and damage to your belongings during your trip. Even more importantly, you will get financial assistance in unexpected situations. Such as if you fall ill during your trip and cannot return home on the scheduled date. Or maybe you get injured and need special transport back to the Netherlands. The chances of this happening are of course low, but the financial costs involved are huge. Much better if you don't have to pay for it all yourself.

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Tag: Travel and Tourism

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What next for travel and tourism? Here's what the experts say

In many countries, more than 80% of travel and tourism spending actually comes from the domestic market. Image:  Unsplash/Surface

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Stay up to date:.

• In 2020 alone, the travel and tourism sector lost $4.5 trillion and 62 million jobs globally.
• But as the world recovers from the impacts of the COVID-19 pandemic, travel and tourism can bounce back as an inclusive, sustainable, and resilient sector.
• Two experts highlight some of the key transformations in the sector going forward during the World Economic Forum's Our World in Transformation series.

The Travel & Tourism sector was one of the hardest hit by the COVID-19 pandemic, leaving not only companies but also tourism-driven economies severely affected by shutdowns, travel restrictions and the disappearance of international travel.

In 2020 alone, the sector lost $4.5 trillion and 62 million jobs, impacting the living standards and well-being of communities across the globe. Moreover, the halt in international travel gave both leisure and business travellers the chance to consider the impact of their choices on the climate and environment.

Amid shifting demand dynamics and future opportunities and risks, a more inclusive, sustainable and resilient travel and tourism sector can be - and needs to be - built.

The World Economic Forum's Travel & Tourism Development Index 2021 finds that embedding inclusivity, sustainability and resilience into the travel and tourism sector as it recovers, will ensure it can continue to be a driver of global connectivity, peace and economic and social progress.

We spoke to Sandra Carvao , Chief of Market Intelligence and Competitiveness at the United Nations World Tourism Organization (UNWTO), and Liz Ortiguera , CEO of the Pacific Asia Travel Association in Thailand (PATA), and asked them to highlight some of the key areas of risk and opportunity in the sector during an episode of the World Economic Forum's Our World in Transformation series.

Have you read?

Travel & tourism development index 2021: rebuilding for a sustainable and resilient future, towards resilience and sustainability: travel and tourism development recovery, how can we really achieve sustainability in the travel sector, what are some of the top global trends you're witnessing currently in the travel and tourism sector.

Liz Ortiguera: Given the extended lockdown that we had on travel with the pandemic, vacation for friends and relatives (VFR) is now a high priority for people who haven’t been in touch for a long time thanks to the pandemic. So, people are reconnecting. And that kind of links to the second trend, which is multi-purpose or blended travel. Never before, particularly now that we can connect digitally through Zoom, has the ability to work from anywhere enabled travellers to cover multiple purposes, like visits with friends and multiple business trips. So, we'll find that the duration of travel and the length of stay is longer. And third is the continued high focus on safety and wellness which is top of mind for travellers due to the pandemic. All travel is wellness-related now.

Sandra Carvao: I think there is a bigger concern with sustainability, which is very welcome in our industry. Consumers, particularly the younger generation, are much more aware of the impact they have, not only on the environment but also socially and on the communities they live in. We've also seen an increase in expenditure per trip, so I think people are very eager to go outside, and they're staying longer. And on the other side, I think there are some challenges: we’re seeing a rise in late bookings because restrictions can change at short notice and that’s having an impact on the decisions of travellers. This is putting pressure on the industry in terms of planning and anticipating fluctuations in demand.

Social media surveys have shown that travellers who have immersive experiences are more likely to post about them, which is good for the industry.

What is community-based tourism and why is it important?

Sandra Carvao: One of the positive impacts of the pandemic is that people are looking for local experiences and are spending more time with communities. So, the concept of community-based tourism is obviously one that puts the community at the core of every development, ensuring that it's engaged and empowered and that it benefits. At the UNWTO, we worked with the G20 and the Saudi presidency back in 2020 and produced a framework for tourism development in communities, which states that communities need to be part of the planning and management of tourism activities. We need to go beyond traditional definitions of community to a point where the industry leans on partnerships between the public and private sectors and communities.

Liz Ortiguera: In July 2022, PATA is hosting a destination-marketing forum and one of the key themes is community-based tourism. The purpose is really to put the community and authenticity-in-culture activities at the heart of the travel experience. There are benefits for all stakeholders. One is that travellers can have an authentic experience. They're not in overcrowded, touristic locations and they experience something new and unique within the community. These experiences are designed in partnership with communities who get the benefit of financial inclusion, and if activities are designed properly, the reinforcement of their cultural heritage. Governments also engage in economic development more broadly across countries. Another interesting trend is creative tourism, which means you create an experience for tourists to participate in, like a dance lesson, or a cooking lesson. Social media surveys have shown that travellers who have these kinds of immersive experiences are more likely to post about them online and that's good for the industry.

It is important to emphasize that virtual experiences, while they are a fun tool, can never replace visiting a destination.

How is technology and innovation helping to leverage cultural resources?

Sandra Carvao: One interesting trend we’re seeing is that more and more people are booking trips directly, so communities need to be supported to digitize their systems. Education and upskilling of communities are important so that they can leverage digital platforms to market themselves. From the tourists’ perspective, it is important to emphasize that virtual experiences, while they are a fun tool, can never replace visiting a destination.

Liz Ortiguera: People have been living virtually for more than two years. Amazing innovations have emerged, such as virtual reality and augmented reality, and all kinds of applications and tools. But the important thing is the experience. The destination. Real-world experiences need to remain front and centre. Technology tools should be viewed as enablers and not the core experience. And when it comes to staff, technology can really democratize education. There’s an opportunity to mobilize a mobile-first approach for those who are on the frontlines, or out in the field, and can’t easily access computers, but need to get real-time information.

How is the sector dealing with labour shortages and re-employment of the workforce?

Liz Ortiguera: Labour shortages are much more dynamic in North America and in Europe. But it’s having a knock-on effect on Asia. If, for example, their air carriers are limited by staff and they have to cancel flights, which we're very much seeing out of Europe, seating capacity then becomes a limiting factor in the recovery of Asia Pacific. That's the main constraint right now. And compounding that is the rising price of fuel. But people in the Asia Pacific are keen to get reemployed.

Sandra Carvao: Labour shortages are a priority for the sector in countries around the world. Many workers left the sector during the pandemic and the uncertainty that surrounded the measures taken to contain it left many people unsure of whether the sector would recover. It is time to address things like conditions, scheduling, and work/life balance, all things which have been top of mind for workers during the pandemic. As the sector recovers, we need time to bring new hires on board and to train them to take over where those who switched jobs left off.

Are we seeing a growing trend towards domestic tourism?

Sandra Carvao: We’re talking about 9 billion people travelling within their own countries. And in many countries, for example in Germany, more than 80% of the tourism spending actually comes from the domestic market, similarly in countries like Spain and even smaller economies. Whenever it's possible to travel again, domestic markets tend to be more resilient. They kick off first mostly due to perceptions of safety and security issues. As the world economy recovers from the pandemic, there is a good opportunity for nations to rethink their strategy, look at the domestic market in a different way, and leverage different products for domestic tourists.

When it comes to sustainable tourism, how quickly could we mainstream eco-friendly modes of transportation?

Sandra Carvao: Transport is one of the key contributors to energy impacts and tourism. But it's also important that we look at the whole value chain. The UNWTO together with the One Planet Sustainable Tourism Programme just launched the Glasgow Declaration, which includes green commitments from destinations and companies. We’re seeing a strong movement in the airline industry to reduce emissions. But I think, obviously, technological developments will be very important. But it's also very important to look at market shifts. And we can't forget small islands and developing states that rely on long-haul air travel. It’s important to make sure that we invest in making the problem much less impactful.

Liz Ortiguera: 'Travel and tourism' is such a broad encompassing term that it’s not fair to call it an industry: it is actually a sector of many industries. The pandemic taught us how broad the impact of the sector is in terms of sustainability. There's a big movement in terms of destination resilience, which is the foundation for achieving sustainability in the journey to net-zero. We now have standards to mitigate that impact including meetings-and-events (MIE) standards and standards for tour operators. There are multiple areas within our industry where progress is being made. And I'm really encouraged by the fact that there is such a focus not just within the sector but also among consumers.

This interview was first done at the World Economic Forum's studios in Geneva as part of 'Our World in Transformation' - a live interactive event series for our digital members. To watch all the episodes and join future sessions, please subscribe here .

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World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

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• Salary In Travel And Tourism

Salary in Travel and Tourism

With a contribution of over 8 trillion dollars to the global economy, tourism is a giant industry. Over 1.3 billion people take part in tourism-related activities worldwide. The travel & tourism industry is defined as a group of several industries that work together to yield one specific function. To cater to the needs of travellers and tourists. Travel deals with the journey, usually a single journey, and tourism includes overnight accommodation along with the travel. Since both of these are vital in serving the purpose, the term ‘travel and tourism’ is used to describe the industry as a whole. It is fairly obvious that the largest service sector in the world sure comes with its benefits. Well, one of those benefits is the good salary in travel and tourism .

Unlike the olden days in which people took vacations once in 2-3 years or so, in this modern era, vacations and holidays are extremely common. There are people who visit different areas and regions every month, and even weekly. As a result, the demand for the industry just keeps on increasing. Also, these days, people seldom find the time to book and plan their trips and instead allocate this task to travel agencies and such. Also fueled by the technological and communication advancements, the travel and tourism industry is a gold mine.

Travel and Tourism Pay Scale

The salary in travel and tourism is something everyone would want to know before starting to pursue a career in the field. Well, luckily, the pay in this industry is excellent. Suppose you spend a certain amount on doing the travel and tourism courses, you will gain back that amount in less than a year easily. The investment to return ratio for the career is significantly high. The different ranges of travel and tourism career salary in India are detailed below - 

Based on the Position

Based on the different job positions, the pay scale for a few of the most popular roles are as follows - 

Tour Operator

A tour operator deals with combining the travel and tour aspects of tourism and provides customers with different exciting packages. The arrange several functions such as travel, accommodation, food, etc for the tourists. Considering that the individual has the necessary skills for this rule, they can easily earn around 7000-15000 Rupees per month in the beginning and can increase higher based on experience. 

Travel Agent

Travel agents are people who deal with people by providing them with services that are required for their travel. They are responsible for ensuring that their client has a smooth process during their journey. These include ticketing, accommodation, etc. On average, an entry-level travel agent can expect a salary in the range of 8000-10000 per month. However, as you gain experience, you can get higher pay.

Operations Manager

As an operations manager, you will be in charge of the functioning of a particular organization. Since this is a job profile that requires a higher level of education, the individuals get paid handsomely in the range of 15000-25000 for entry level. However, with experience, you can expect a salary significantly higher than this. 

Airline Reservation Agents

These are the people who help customers in their airline ticket planning and will have to provide excellent customer service for the airline company’s customers. For an entry-level agent, the salary is usually between 12000-20000 per month. Similar to any job, these can increase with experience.

Front Office Manager

The managers are in charge of the reception at a hotel, airline company, or any other travel and tourism related organization. Their duties involve overseeing the front agent receptionists ensure that the customers are well dealt with, as per the company policy. An entry-level front office manager can expect to earn around 10000-20000 Rupees per month. However, as the experience increases, you can easily get higher pay.

Please keep in mind that these values are only average, and can vary based on several factors such as experience, responsibilities, geographical location, size of the company, etc. Countries such as the USA, France, etc have much higher pay for tourism-related positions due to their high demand.

Based on the Educational Qualification

The jobs you may get and the pay scale can also depend on your level of education in travel and tourism. Even though there are several levels, of course, you can study after 10th, 12th, and even after graduation, each degree of the course has its own perks and job positions. The job positions and pay grade for the 3 levels such as a diploma, graduate degree, and postgraduate degree courses are as follows - 

Diploma and Certificate Courses

A diploma in travel and tourism can be pursued after 12th, or even after graduation. Being a short term course, you will learn the required topics up to the point. Diploma courses can open you up to several job prospects such as tour manager, ticketing agent, travel agent, foreign exchange officer, etc. The salary after diploma in travel and tourism normally has a wide range between 7k to 15k rupees per month for entry level individuals. Further experience is bound to increase this value. 

Bachelor Degree

A bachelor degree in any of the travel and tourism domains can open you up to further positions. Since these are generally around 3 years, you will gain in-depth knowledge of the field, making you eligible for the job. Usually, a job after you have a BBA or similar bachelor degree can get you around 10-18k per month at entry level. 

Master Degree

Once you have a postgraduate degree, your value increases significantly. Since this makes you an expert in that field, you can obtain jobs. The salary after MBA in travel and tourism usually varies in the range of 20-30k at entry level.

Despite these salary statistics, the actual pay depends on factors such as your job responsibilities, experience, geography, etc. For example, even if you have a postgraduate degree, a job may pay less than the range shown above.   

Jobs in Travel and Tourism

The travel and tourism scope is an endless sea. With the industry affecting almost every other sector directly or indirectly, there is something for everyone. Whatever field of tourism your interests and passion are, you will find that you can easily pursue them in this. With several domains such as medical tourism, adventure tourism, religious tourism, ecotourism, etc, there are numerous job opportunities in this industry. Even in our own backyard, ie, India, thanks to the Indian government initiatives, tourism has spread to all corners and fields. Over 9.2 per cent of the GDP can be accounted for by the tourism sector alone. And a whopping 10 million tourists visited India in 2018. Apart from this, domestic tourism is on a whole another level with over a billion tourist visits in the nation. 

Even though there are several sectors you could find a career in this industry, the main areas are as below - 

• Travel agencies : These are organizations that focus on serving the public in terms of travel arrangements such as flights, accommodations, tourist activities, etc. Apart from tourists, they also provide packages for business visitors. Basically, travel agencies work as a mediator or an agent between the customer and the company selling the services. A few career positions that are available at these include travel agent, travel consultants, travel insurance consultant, sales reservation agents, etc. 
• Tourism Department : The tourism department refers to the government organization that focuses on travel planning, reservations. Apart from these, they are also in charge of administering the rules, regulations, as well as other policies revolving around tourism in the country. Present both at the state and national level, the position in these include tour guides, public relations manager, etc.
• Hotels : These are establishments that provide shelter, food as well as other recreational services to tourists. Working of this involves the day to day activities of a hotel with respect to food, accommodation and service. A course in hospitality or hotel management can get you a position of front office manager, chef, events manager, guest relations executive, concierge, etc.
• Road transport : Focusing on the road vehicles used for the functioning of tourist activity, this sector includes drivers, car/bike rentals, self-driven car services, etc 
• Aviation industry : Known as the biggest domain of the travel and tourism industry, this deals with providing customers service right from booking the tickets for the flight to boarding it. Some of the common jobs in this sector include ground staff, ticketing staff, operations manager, and so on.
• Tour operators : establishments that deal with tour planning and facilities related to it for the customers comprises of the tour operators. They draw up packages and trips that attract customers and are feasible for them. Careers in this path can include planning accommodation, food, as well as leisure activities. The positions usually include itinerary planner, international travel consultant, travel product designer, tour manager, etc.
• Entrepreneurship : One of the modern factions of the travel and tourism industry is the entrepreneurship. These include innovations and startups that are focused on providing new products or services to the tourists. 
• Banks : Banks interestingly are also a sector that is involved in tourism. Jobs in these would require you to assist customers in travel insurance, foreign exchange, and other financial functions. 

Almost every country is focusing on developing its tourism due to its huge potential. Even Saudi Arabia, who never issued tourist visas, have planned on issuing them soon to evolve this particular industry. Due to the amount of potential and economy hidden in this sector, it is fair to say that the job opportunities, as well as the pay scale,  are bound to be excellent. It is not just the salary. The jobs in the industry come with several remuneration and perks such as discounted travel, commissions, bonuses, etc. When all of this adds up, a career in the travel and tourism industry may just be the best path to follow.

17 Jul, 2019 By rifahth ms . Posted In Career . Tagged Salary in travel and tourism , Payscale in travel and tourism , Tourism Scope .

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What is the future of travel?

All aboard! After the pandemic upended life and leisure as we know it, travel is roaring back. The industry is set to make a full recovery by the end of 2024, after losing 75 percent of its value in 2020. Much of this has been so-called “revenge travel,” or people embarking on international or bucket list trips that were delayed by the pandemic. But domestic travel is recovering quickly too and is set to represent 70 percent of travel spending by 2030.

Get to know and directly engage with senior McKinsey experts on travel and tourism

Margaux Constantin is a partner in McKinsey’s Dubai office, Matteo Pacca is a senior partner in the Paris office, and Vik Krishnan is a senior partner in the Bay Area office.

We’ve done a deep dive into the latest travel trends and how industry players can adjust accordingly in The state of travel and hospitality 2024 report. Check out the highlights below, as well as McKinsey’s insights on AI in travel, mass tourism, and much more.

Learn more about McKinsey’s Travel, Logistics, and Infrastructure Practice .

Who are today’s travelers, and what do they want?

In February and March 2024, McKinsey surveyed  more than 5,000 people in China, Germany, the United Arab Emirates (UAE), the United Kingdom, and the United States who had taken at least one leisure trip in the past two years. Here are six highlights from the results of that survey:

• Travel is a top priority, especially for younger generations. Sixty-six percent of travelers we surveyed said they are more interested in travel now than before the COVID-19 pandemic. And millennials and Gen Zers  are traveling more and spending a higher share of their income on travel than their older counterparts.
• Younger travelers are keen to travel abroad. Gen Zers and millennials who responded to our survey are planning nearly an equal number of international and domestic trips in 2024. Older generations are planning to take twice as many domestic trips.
• Baby boomers are willing to spend if they see value. Baby boomers still account for 20 percent of overall travel spending. They are willing to spend on comforts such as nonstop flights. On the other hand, they are more willing to forego experiences to save money while traveling, unlike Gen Zers who will cut all other expense categories before they trim experiences.
• Travel is a collective story, with destinations as the backdrop. Travelers both want to hear other travelers’ stories and share their own. Ninety-two percent of younger travelers were inspired by social media in some shape or form for their last trip.
• What travelers want depends on where they’re from. Sixty-nine percent of Chinese respondents said they plan to visit a famous sight on their next trip, versus the 20 percent of European and North American travelers who said the same. Respondents living in the UAE also favor iconic destinations, as well as shopping and outdoor activities.

Learn more about McKinsey’s  Travel, Logistics, and Infrastructure Practice .

What are the top three travel industry trends today?

Travel is back, but traveler flows are shifting. McKinsey has isolated three major themes for industry stakeholders to consider as they look ahead.

• The bulk of travel spending is close to home. Seventy-five percent of travel spend is domestic. The United States is currently the world’s largest domestic travel market, but China is set to overtake it in the coming years. Stakeholders should make sure they capture the full potential of domestic travelers before turning their attention abroad.
• New markets such as India, Southeast Asia, and Eastern Europe are growing sources of outbound tourism. Indians’ travel spending is expected to grow 9 percent per year between now and 2030; annual growth projections for Southeast Asians and Eastern Europeans are both around 7 percent.
• Unexpected destinations are finding new ways to lure travelers and establish themselves alongside enduring favorites. Rwanda, for example, has capitalized on sustainable tourism by limiting gorilla trekking permits and directing revenue toward conservation.

Looking for direct answers to other complex questions?

For a more in-depth look at these trends, check out McKinsey’s State of travel and hospitality 2024   report .

How will AI change how people travel?

In the 1950s, the introduction of the jet engine dramatically reduced travel times, changing the way people traveled forever. Now AI is upending the industry  in a similarly fundamental way. Industry players down to individual travelers are using advances in generative AI (gen AI) , machine learning , and deep learning  to reimagine what it means to plan, book, and experience travel. “It’s quite clear,” says McKinsey partner Vik Krishnan , “that gen AI significantly eases  the process of travel discovery.”

For travel companies, the task now is to rethink how they interact with customers, develop products and services, and manage operations in the age of AI. According to estimates by McKinsey Digital, companies that holistically address digital and analytics opportunities have the potential to see an earnings improvement of up to 25 percent .

McKinsey and Skift Research interviewed executives from 17 companies across five types of travel business. Here are three key findings on how travel companies can reckon with emerging technologies, drawn from the resulting report The promise of travel in the age of AI :

• Segmentation. Companies can use AI to create hyperspecific customer segments to guide how they interact with and serve customers. Segmentation can be based on a single macro characteristic (such as business versus leisure), or it can be so specific as to relate to just one customer.
• Surprise and delight. In the travel context, gen AI could take the form of digital assistants that interact with customers throughout their journeys, providing personalized trip itineraries and tailored recommendations and helping to resolve unexpected disruptions.
• Equipping workers better. AI tools can free up frontline workers’ time, allowing them to focus more on personal customer interactions. These tools can also shorten the training time for new hires and quickly upskill  the existing workforce.

AI is important, yes. But, according to Ella Alkalay Schreiber, general manager (GM) of fintech at Hopper, “The actual challenge is to understand the data, ask the right questions, read prediction versus actual, and do this in a timely manner. The actual challenge is the human thinking, the common sense .”

How is mass tourism changing travel?

More people are traveling than ever before. The most visited destinations are experiencing more concentrated flows of tourists ; 80 percent of travelers visit just 10 percent of the world’s tourist destinations. Mass tourism can encumber infrastructure, frustrate locals, and even harm the attractions that visitors came to see in the first place.

Tourism stakeholders can collectively look for better ways to handle visitor flows before they become overwhelming. Destinations should remain alert to early warning signs about high tourism concentration and work to maximize the benefits of tourism, while minimizing its negative impacts.

Destinations should remain alert to early warning signs about high tourism concentration and work to maximize the benefits of tourism, while minimizing its negative impacts.

For one thing, destinations should understand their carrying capacity of tourists—that means the specific number of visitors a destination can accommodate before harm is caused to its physical, economic, or sociocultural environment. Shutting down tourism once the carrying capacity is reached isn’t always possible—or advisable. Rather, destinations should focus on increasing carrying capacity to enable more growth.

Next, destinations should assess their readiness to handle mass tourism and choose funding sources and mechanisms that can address its impacts. Implementing permitting systems for individual attractions can help manage capacity and mitigate harm. Proceeds from tourism can be reinvested into local communities to ensure that residents are not solely responsible for repairing the wear and tear caused by visitors.

After risks and funding sources have been identified, destinations can prepare for growing tourist volumes in the following ways:

• Build and equip a tourism-ready workforce to deliver positive tourism experiences.
• Use data (gathered from governments, businesses, social media platforms, and other sources) to manage visitor flows.
• Be deliberate about which tourist segments to attract (business travelers, sports fans, party groups, et cetera), and tailor offerings and communications accordingly.
• Distribute visitor footfall across different areas, nudging tourists to visit less-trafficked locations, and during different times, promoting off-season travel.
• Be prepared for sudden, unexpected fluctuations triggered by viral social media and cultural trends.
• Preserve cultural and natural heritage. Engage locals, especially indigenous people, to find the balance between preservation and tourism.

How can the travel sector accelerate the net-zero transition?

Global warming is getting worse, and the travel sector contributes up to 11 percent of total carbon emissions. Many consumers are aware that travel is part of the problem, but they’re reticent to give up their trips: travel activity is expected to soar by 85 percent  from 2016 to 2030. Instead, they’re increasing pressure on companies in the travel sector to achieve net zero . It’s a tall order: the range of decarbonization technologies in the market is limited, and what’s available is expensive.

But decarbonization doesn’t have to be a loss-leading proposition. Here are four steps  travel companies can take toward decarbonization that can potentially create value:

• Identify and sequence decarbonization initiatives. Awareness of decarbonization levers is one thing; implementation is quite another. One useful tool to help develop an implementation plan is the marginal abatement cost curve pathway framework, which provides a cost-benefit analysis of individual decarbonization levers and phasing plans.
• Partner to accelerate decarbonization of business travel. Many organizations will reduce their business travel, which accounts for 30 percent of all travel spend. This represents an opportunity for travel companies to partner with corporate clients on decarbonization. Travel companies can support their partners in achieving their decarbonization goals by nudging corporate users to make more sustainable choices, while making reservations and providing data to help partners track their emissions.
• Close the ‘say–do’ gap among leisure travelers. One McKinsey survey indicates that 40 percent of travelers globally say they are willing to pay at least 2 percent more for carbon-neutral flights. But Skift’s latest consumer survey reveals that only 14 percent  of travelers said they actually paid more for sustainable travel options. Travel companies can help close this gap by making sustainable options more visible during booking and using behavioral science to encourage travelers to make sustainable purchases.
• Build new sustainable travel options for the future. The travel sector can proactively pioneer sustainable new products and services. Green business building will require companies to create special initiatives, led by teams empowered to experiment without the pressure of being immediately profitable.

What’s the future of air travel?

Air travel is becoming more seasonal, as leisure travel’s increasing share of the market creates more pronounced summer peaks. Airlines have responded by shifting their schedules to operate more routes at greater frequency during peak periods. But airlines have run into turbulence when adjusting to the new reality. Meeting summer demand means buying more aircraft and hiring more crew; come winter, these resources go unutilized, which lowers productivity . But when airlines don’t run more flights in the summer, they leave a lot of money on the table.

How can airlines respond to seasonality? Here are three approaches :

• Mitigate winter weakness by employing conventional pricing and revenue management techniques, as well as creative pricing approaches (including, for example, monitoring and quickly seizing on sudden travel demand spikes, such as those created by a period of unexpectedly sunny weather).
• Adapt to seasonality by moving crew training sessions to off-peak periods, encouraging employee holiday taking during trough months, and offering workers seasonal contracts. Airlines can also explore outsourcing of crew, aircraft, maintenance, and even insurance.
• Leverage summer strengths, ensuring that commercial contracts reflect summer’s higher margins.

How is the luxury travel space evolving?

Quickly. Luxury travelers are not who you might expect: many are under the age of 60 and not necessarily from Europe or the United States. Perhaps even more surprisingly, they are not all millionaires: 35 percent of luxury-travel spending is by travelers with net worths between $100,000 and $1 million. Members of this group are known as aspirational luxury travelers, and they have their own set of preferences. They might be willing to spend big on one aspect of their trip—a special meal or a single flight upgrade—but not on every travel component. They prefer visibly branded luxury and pay close attention to loyalty program points and benefits .

The luxury-hospitality space is projected to grow faster than any other segment, at 6 percent per year  through 2025. And competition for luxury hotels is intensifying too: customers now have the option of renting luxurious villas with staff, or booking nonluxury hotels with luxury accoutrements such as rainfall showerheads and mattress toppers.

Another critical evolution is that the modern consumer, in the luxury space and elsewhere, values experiences over tangible things (exhibit).

Luxury properties may see more return from investing in a culture of excellence—powered by staff who anticipate customer needs, exceed expectations, create cherished memories, and make it all feel seamless—than in marble floors and gold-plated bath fixtures. Here are a few ways luxury properties can foster a culture of excellence :

• Leaders should assume the role of chief culture officer. GMs of luxury properties should lead by example to help nurture a healthy and happy staff culture and listen and respond to staff concerns.
• Hire for personalities, not resumes. “You can teach someone how to set a table,” said one GM we interviewed, “but you can’t teach a positive disposition.”
• Celebrate and reward employees. Best-in-class service is about treating customers with generosity and care. Leaders in the service sector can model this behavior by treating employees similarly.
• Create a truly distinctive customer experience . McKinsey research has shown that the top factor influencing customer loyalty in the lodging sector is “an experience worth paying more for”—not the product. Train staff to focus on tiny details as well as major needs to deliver true personalization.

What’s the latest in travel loyalty programs?

Loyalty programs are big business . They’ve evolved past being simply ways to boost sales or strengthen customer relationships; now, for many travel companies, they are profit centers in their own right. One major development was that travel companies realized they could sell loyalty points in bulk to corporate partners, who in turn offered the points to their customers as rewards. In 2019, United’s MileagePlus loyalty program sold $3.8 billion worth of miles to third parties, which accounted for 12 percent of the airline’s total revenue for that year. In 2022, American Airlines’ loyalty program brought in $3.1 billion in revenue, and Marriott’s brought in $2.7 billion.

But as this transition has happened, travel players have shifted focus away from the original purpose of these programs. Travel companies are seeing these loyalty programs primarily as revenue generators, rather than ways to improve customer experiences . As a result, loyalty program members have become increasingly disloyal. Recent loyalty surveys conducted by McKinsey revealed a steep decline in the likelihood that a customer would recommend airline, hotel, and cruise line loyalty programs to a friend. The same surveys also found that airline loyalty programs are driving fewer customer behavior changes than they used to.

So how can travel brands win customers’ loyalty back? Here are three steps to consider:

• Put experience at the core of loyalty programs. According to our 2023 McKinsey Travel Loyalty Survey , American respondents said they feel more loyal to Amazon than to the top six travel players combined, despite the absence of any traditional loyalty program. One of the reasons for Amazon’s success may be the frictionless experience it provides customers. Companies should strive to design loyalty programs around experiential benefits that make travelers feel special and seamlessly integrate customer experiences between desktop, mobile, and physical locations.
• Use data to offer personalization  to members. Travel brands have had access to customer data for a long time. But many have yet to deploy it for maximum value. Companies can use personalization to tailor both experiences and offers for loyalty members; our research has shown that 78 percent  of consumers are more likely to make a repeat purchase when offered a personalized experience.
• Rethink partnerships. Traditionally, travel companies have partnered with banks to offer cobranded credit cards. But many credit card brands now offer their own, self-branded travel rewards ecosystems. These types of partnerships may have diminishing returns in the future. When rethinking partnerships, travel brands should seek to build richer connections with customers, while boosting engagement. Uber’s partnership with Marriott, for example, gives users the option to link the brands’ loyalty programs, tapping into two large customer bases and providing more convenient travel experiences.

In a changing travel ecosystem, travel brands will need to ask themselves some hard questions if they want to earn back their customers’ loyalty.

Learn more about McKinsey’s Travel, Logistics, and Infrastructure Practice . And check out travel-related job opportunities if you’re interested in working at McKinsey.

Articles referenced include:

• “ Updating perceptions about today’s luxury traveler ,” May 29, 2024, Caroline Tufft , Margaux Constantin , Matteo Pacca , and Ryan Mann
• “ The way we travel now ,” May 29, 2024, Caroline Tufft , Margaux Constantin , Matteo Pacca , and Ryan Mann
• “ Destination readiness: Preparing for the tourist flows of tomorrow ,” May 29, 2024, Caroline Tufft , Margaux Constantin , Matteo Pacca , and Ryan Mann
• “ How the world’s best hotels deliver exceptional customer experience ,” March 18, 2024, Ryan Mann , Ellen Scully, Matthew Straus, and Jillian Tellez Holub
• “ How airlines can handle busier summers—and comparatively quiet winters ,” January 8, 2024, Jaap Bouwer, Ludwig Hausmann , Nina Lind , Christophe Verstreken, and Stavros Xanthopoulos
• “ Travel invented loyalty as we know it. Now it’s time for reinvention. ,” November 15, 2023, Lidiya Chapple, Clay Cowan, Ellen Scully, and Jillian Tellez Holub
• “ What AI means for travel—now and in the future ,” November 2, 2023, Alex Cosmas  and Vik Krishnan
• “ The promise of travel in the age of AI ,” September 27, 2023, Susann Almasi, Alex Cosmas , Sam Cowan, and Ben Ellencweig
• “ The future of tourism: Bridging the labor gap enhancing customer experience ,” August 1, 2023, Urs Binggeli, Zi Chen, Steffen Köpke, and Jackey Yu
• “ Hotels in the 2030s: Perspectives from Accor’s C-suite ,” July 27, 2023, Aurélia Bettati
• “ Tourism in the metaverse: Can travel go virtual? ,” May 4, 2023, Margaux Constantin , Giuseppe Genovese, Kashiff Munawar, and Rebecca Stone
• “ Three innovations to solve hotel staffing shortages ,” April 3, 2023, Ryan Mann , Esteban Ramirez, and Matthew Straus
• “ Accelerating the transition to net-zero travel ,” September 20, 2022, Danielle Bozarth , Olivier Cheret, Vik Krishnan , Mackenzie Murphy, and Jules Seeley
• “ The six secrets of profitable airlines ,” June 28, 2022, Jaap Bouwer, Alex Dichter , Vik Krishnan , and Steve Saxon
• “ How to ‘ACE’ hospitality recruitment ,” June 23, 2022, Margaux Constantin , Steffen Köpke, and Joost Krämer
• “ Opportunities for industry leaders as new travelers take to the skies ,” April 5, 2022, Mishal Ahmad, Frederik Franz, Tomas Nauclér, and Daniel Riefer
• “ Rebooting customer experience to bring back the magic of travel ,” September 21, 2021, Vik Krishnan , Kevin Neher, Maurice Obeid , Ellen Scully, and Jules Seeley

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The mighty Brahmaputra River originates in Tibet and brings its glacial Himalayan waters down to India. As a vital source of transportation, its waters bring trade and life to the villages that dot its banks. The Brahmaputra River Valley is home to seven national parks, including two UNESCO World Heritage Sites, making it a wildlife enthusiast’s paradise; home to an abundance of unique flora and fauna that may be viewed from the ship’s deck.

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The Ganges may begin life as a mere trickle in the Western Himalayas, but as it powers across India it brings life, livelihoods and cultural wealth to millions of people. Its vital waterways and religious significance have drawn travellers to its banks for thousands of years, creating a confluence of colonisers, from the Mughals to the British, the French to the Dutch. This rich tapestry of historic sites, cultural influences, and political epochs has left a legacy that endures to this day in its buildings, people, religious sites, and food. 

From the crumbling vestiges of the British Empire that line Kolkata’s wide boulevards, to the vibrant, electrifying colour of Varanasi, the Ganges peels back the layers of history that have moulded India into the country she is today. Besides being a life-giving force of nature, it’s not uncommon to find people bathing in the latte-coloured waters of the Ganges, and offering flowers and lit oil clay lamps whilst in prayer.

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Hawaii travel update: john oliver discusses tourism, history, and future of hawaii in recent episode of last week tonight.

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John Oliver tackled some major issues facing Native Hawaiians, including tourism, in a recent ... [+] episode of Last Week Tonight.

The Hawaiian Islands have been in the national spotlight of late.

Earlier this month, Maui graced headlines on August 8th as the one-year anniversary of the Lahaina wildfires was observed, and prior to that, the amount of aid given to local residents came up on an episode of the Joe Rogan Experience .

The latest media focus on the Aloha State comes from late-night host John Oliver, as he urged Americans to learn more about the history of Hawaiʻi and how tourism and multi-millionaires impact the local culture.

In a recent episode of Last Week Tonight, he put together a major segment that addressed a wide range of topics and issues that were both funny, enlightening, and unfortunately sad due to their truthful and revealing nature.

The 30-minute episode kicks off with Oliver warming up by going through several pop-culture topics that skew American’s perception of the islands.

This included some bad cinema from Hawaiʻi Five-0 and the myth of the "cursed" lava rocks, which have been taken and then mailed back to Hawaiʻi Volcanoes National Park in extremely large numbers by tourists. The myth is due to a made-up belief that the rocks are cursed by Madam Pele, the goddess of the volcano.

He then dives into more serious topics that have plagued the islands in recent months as well as the modern era in general: the Maui wildfires, the history of Hawaiʻi, increased development, the U.S. military footprint, the impacts of tourism, the local economy, and the reversal of Hawaiʻi’s food production, to name a few.

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Oliver gives large doses of his usual humor as he lays out these topics, but as the episode continues, one begins to see the sad reality of many of the current local issues and how they are negatively effecting Native Hawaiians.

Many celebrities who have purchased land in Hawaiʻi—and at times clashed with locals—are also brought into question, including Mark Zuckerberg and Oprah Winfrey.

The end of the episode is especially powerful, when Oliver discusses the idea of visiting Hawaiʻi as a tourist and how the industry as a whole effects the islands.

Oliver concedes that it’s reasonable to visit Hawaiʻi as a tourist. However, when doing so, he asserts that it's best to make sure you understand the place you are visiting.

Take the time to familiarize yourself with the local history and people, and be a considerate guest, he says. (This logic can be applied to any place in the world, of course, but is especially relevant in Hawaiʻi, where local culture has historically taken a back seat to visitor preferences.)

For example, Hawaiʻi has beaches and hikes that are fun to enjoy, he says, but good travelers will be sure to understand the complete picture.

“If you do end up visiting, try to be aware of the history you are stepping into, a history, I realize, most of us were never taught,” Oliver said. "And remember that your vacation spot is also someone else's home."

You can stream the entire episode of Last Week Tonight on Hawaiʻi for free on Youtube .

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