The global
travel industry is comprised of a wide variety of businesses, from hotels and
inns to casino resorts, trains, buses, airplanes, cruise ships, tour operators
and travel bookers, both online and physical.
The United Nations, estimates that more than 1.4 billion tourists
traveled the world during 2018.
World
Travel & Tourism Council (WTTC) found that the global travel and tourism
industry supported 154.1 million jobs on a direct basis in 2018.
The industry generated $2.8 trillion in
direct global contribution to GDP (gross domestic product).
In most parts of the world, hotels and resorts
have been enjoying good to excellent occupancy rates, which enabled them to
raise prices, while many new properties have been built or are under
construction in promising markets.
Business travel has grown substantially in recent years, while leisure
travel has been generally strong worldwide.
Nonetheless, when members of middle class consumers do take a vacation,
it is generally on a carefully watched budget.
Businesses are sending large numbers of employees on trips.
At the same time, they are keeping a tight
rein on costs.
Corporate travel managers
are negotiating reduced hotel and airfare rates, while relying on advanced
software to help manage and track employees' travel expenses.
A growing number of business travelers are
relying on Airbnb.com as a lower-cost alternative to traditional hotels.
Airlines in many parts of the world are
enjoying high
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The global
travel industry is comprised of a wide variety of businesses, from hotels and
inns to casino resorts, trains, buses, airplanes, cruise ships, tour operators
and travel bookers, both online and physical.
The United Nations, estimates that more than 1.4 billion tourists
traveled the world during 2018. World
Travel & Tourism Council (WTTC) found that the global travel and tourism
industry supported 154.1 million jobs on a direct basis in 2018. The industry generated $2.8 trillion in
direct global contribution to GDP (gross domestic product).
In most parts of the world, hotels and resorts
have been enjoying good to excellent occupancy rates, which enabled them to
raise prices, while many new properties have been built or are under
construction in promising markets.
Business travel has grown substantially in recent years, while leisure
travel has been generally strong worldwide.
Nonetheless, when members of middle class consumers do take a vacation,
it is generally on a carefully watched budget.
Businesses are sending large numbers of employees on trips. At the same time, they are keeping a tight
rein on costs. Corporate travel managers
are negotiating reduced hotel and airfare rates, while relying on advanced
software to help manage and track employees’ travel expenses. A growing number of business travelers are
relying on Airbnb.com as a lower-cost alternative to traditional hotels.
Airlines in many parts of the world are
enjoying high occupancy rates and excellent profits. Airlines are flying aircraft that are much
more fuel-efficient than those of a few years ago, and they have streamlined
operations in all departments so that their staff levels are more efficient It is also vital to note one additional shift
in airline strategy: today, they rely
heavily on fees for services such as checked baggage, seats with extra legroom
and on-board food. This has contributed
substantially to profitability.
Advanced new aircraft are bringing significant
changes in the global airline industry. For
example, Boeing’s highly advanced 787 enables airlines to offer great
enhancements to passenger comfort with extremely long intercontinental range,
while the airlines benefit from a fuel efficiency boost of about 20%. Airbus competes with similarly efficient,
long-haul aircraft.
Perhaps more important is the spectacular
demand from global airlines for single aisle planes to replace older models
that are not particularly fuel-efficient.
Enormous numbers of such aircraft will be sold by both Boeing and Airbus
over the long term.
Discount airlines remain very important players
in the U.S. as well as in Europe and the rest of the world. Outside the U.S., good examples include
Dragonair in China and Ryanair in Europe.
Norwegian Air Shuttle is competing fiercely with low airfares from
Europe to the U.S. and elsewhere.
Nonetheless, legacy airlines (e.g. American Airlines and British
Airways) are now competing head-to-head on price with discount airlines in many
cases, but only for the least-desirable seats in economy class.
E-commerce continues to play an extremely
important role in the travel sector, making booking convenient for consumers
who want to compare costs and services across multiple airlines or hotel
properties at once.
The cruise line
business has enjoyed solid growth.
Consumers see cruises as high-value package deals, and cruise ships are
nearly full at all times. Some of the
newest ships, such as Royal Caribbean’s “Allure of the Seas” are among the
largest passenger ships ever built.
Approximately 13.1 million passengers sailed on cruises originating in
North America during 2018, up from 12.6 million in 2017. Plunkett Research forecasted that 13.3
million would sail in 2019. The cruise
industry is expanding into niche markets, including ships operated specifically
for Chinese passengers, as well as more river cruises and adventure cruises.