The recent developments in technologies such as artificial intelligence (AI) and big data analytics present potential for creating personalized experiences. With these emerging technologies, the sector can enhance traveller satisfaction, improve operations and drive innovation across the leisure and business traveller segments. Use cases for travellers include AI-powered travel itineraries (developed by leading tech companies or online travel companies), which provide suggestions based on preferences or suggest sustainable choices; AI-enabled real-time translation is also lowering communication barriers between travellers, sector workers and local communities; and GenAI is being leveraged for inspiration (such as supporting travellers in selecting destinations or changing flight dates). Similarly, companies in the sector are leveraging AI for price prediction and real-time personalization capabilities. Additionally, big data and analytics are supporting tourism management and destination planning (e.g. Salzburg, which uses multiple data sources for visitor flow analysis).26 In a similar way, analytics and cloud-based property management systems continue to support hospitality players in the sector to deliver personalized services and to attract more travellers. Finally, face-recognition technologies continue to increase efficiency across the journey (e.g. at airports). These examples showcase how technology is shaping the future of the sector. The growing focus on health and well-being for individuals and companies27 presents an opportunity for the sector to develop value propositions that cater to travellers’ needs and continue to be a driver for well-being worldwide. A survey conducted during the pandemic showed that 97% of respondents reported that having a trip planned made them happier.28 Moreover, wellness is becoming more popular as a travel purpose among a broader audience and is expected to reach $1.3 trillion by 2025.29 The sector should try to capitalize on these trends and continue to create experiences or design innovations that adjust to different needs beyond resorts and spas. Similarly, some companies are embracing flexible work arrangements and blended itineraries to boost productivity and wellness. Research and experiments30 have shown improved retention and employee satisfaction when companies allow employees to combine work and leisure in travel. Destinations are capturing this trend with measures such as “digital nomad” visas, which are now available in more than 40 countries. As travellers increasingly seek authentic and meaningful experiences (75% of respondents said they spend at least half their time exploring outside of accommodations),31 there is an opportunity for the sector to support the preservation of cultural heritage. Creating unique and immersive cultural experiences that allow travellers to engage with local traditions and implementing practices that support the continuation of traditional methods will help preserve intangible cultural heritage. For example, partnerships between tourism businesses and cultural institutions are rapidly becoming a critical asset for the sector (see case study 2). Moreover, innovation in heritage sites as seen in regions in China (e.g. Mount Danxia) has been a catalyst to attract more tourists, engage the local community and transform tourism in the destination.32 Future of Travel and Tourism: Embracing Sustainable and Inclusive Growth 8

Future of Travel and Tourism 2025