Evolving traveller profiles The global traveller demographic composition will undergo profound transformation driven by emerging-market shifts, generational changes and evolving preferences. Estimates suggest that by 2030 India and China will collectively account for more than 25% of international outbound travel.27 With Indian travellers tripling and Chinese travellers doubling their current share, their preferences will shape the market. Simultaneously, Millennials and Generation Z will comprise most travellers, bringing in digital-native behaviours. They will continue to fuel demand for experiences and events,28 with most preferring live experiences over purchasing items29 and relying heavily on social media for inspiration.30 Content creators and travel influencers have emerged as powerful intermediaries, shaping travel decisions and behaviours through their platforms, creating both opportunities and responsibilities for promoting sustainable, respectful tourism practices. The pandemic accelerated hybrid traveller segments, with blended travel31 projected to expand at around 9% compound annual growth rate (CAGR) by 2032 as remote work polices enable location flexibility. Such shifts are accompanied by evolving preferences (e.g. more than 50% of business travellers want more blended travel trips and in 2024 took at least two of them).32 These evolving traveller profiles create both opportunities and challenges. Destinations and business must develop varied offerings that serve travellers while not diluting authenticity. Traditional demographic marketing is becoming less effective as motivational and behavioural factors increasingly define traveller segments. Entities that develop nuanced understandings of these profiles and adapt their offerings will reap the greatest rewards. Growing segments as drivers Several segments emerge as significant growth drivers, expanding at rates exceeding sector averages. Travelling to attend live events, including music festivals and sports tourism, is growing at double- digit rates. Sports tourism, where the tourist either observes as a spectator or actively participates in a sporting event, was valued at more than $609 billion in 2023 and is expected to reach more than $1.7 trillion by 2032 (16% CAGR).33 Social media platforms are key enablers for this growth in trips as they promote tournaments and events. Online shows and content on video platforms also encourage spectators to engage more, driving higher attendance. Furthermore, participation by recreational athletes in events such as marathons is expected to continue. Ecotourism is projected to expand at a rate of 14% CAGR, reaching $760 billion by 2032.34 Among the drivers are the rise in awareness of outdoor recreational activities and in interest in sustainable tourism. Wellness tourism is projected to increase at 8% CAGR by 203435 as health consciousness grows, creating demand for experiences that treat mind and body (e.g. spa treatments, mindfulness retreats and wellness programmes). MICE (meetings, incentives, conferences and exhibitions) is projected to grow at 9% CAGR between 2025 and 2030, from $870 billion in 2024,36 outpacing the rest of the business travel segment. This growth reflects the value of face- to-face interaction even as technology provides alternatives. These segments offer opportunities to develop specialized offerings for destinations and organizations, while potentially addressing seasonality challenges. Successfully entering these segments requires investment, skills development and marketing capabilities. Additionally, competition is intensifying, even within countries, as these opportunities are recognized – making distinctive positioning and coordination increasingly important. Stakeholders must carefully evaluate which segments align with their capabilities rather than pursuing all areas. Specialized segments can also create opportunities to advance in broader sustainability and inclusion objectives (e.g. ecotourism’s conservation efforts). Technology developments as an enabler Technological innovation has been transforming every aspect of the T&T ecosystem – from traveller inspiration and planning to business operations and destination management – creating opportunities, responsibilities and challenges. The global travel technology market size, estimated at $10.5 billion in 2024, is expected to nearly double by 2033 (7.5% CAGR).37 This reflects widespread adoption of transformative technologies and aligns with broader industry trends. A recent survey indicates that 91% of travel technology decision- makers expect moderate to aggressive increases in technology investment in their organizations.38 Artificial intelligence (AI) and machine learning applications span the entire travel journey, from chatbots to personalized recommendation engines. 231 91% of travel technology decision-makers expect moderate to aggressive increases in technology investment in their organizations. Travel and Tourism at a Turning Point: Principles for Transformative Growth 11

Travel and Tourism at a Turning Point 2025