FX.co ★ Top 5 trends to shape tourism industry in 2021

Domestic tourism to replace international one

The coronavirus pandemic is still greatly affecting the global tourism industry. Citizens of most countries across the globe are forced to travel only within the borders of their own countries. Many governments support local tourism and plan to develop domestic tourism destinations in 2021. So far, China has achieved the greatest success in boosting the popularity of domestic tourism. This is the only country where the number of domestic air flights has not shrunken. China’s domestic tourism thrived mainly thanks to lavish government funds as well as stimulus measures from travel agencies and airlines. Russia takes second place in terms of the great demand for inbound tourism. In 2020, Russians chose Karelia, Magadan, the Urals, and Chukotka as their holiday destinations. According to analysts, intra-regional tourism flows in the country increased by 35%.

Low demand for advance booking and tickets

Experts think that in 2021, traditionally buoyant demand for advance purchases of railway and air tickets will be shattered due to the traffic flow instability. Previously, travelers booked tours a month before departure and regular flight tickets ten days before the tour. Currently, travelers do it almost at the last moment in fear of flight cancelation or non-refundable hotel reservations. Many vacationers are afraid of canceling previously booked tours within the country, so they are not in a hurry to buy tickets. Thus, the current trend may spur the demand for short trips (from one to three days) within one region.

Sharp decline in number of direct flights

Another vital trend in 2021 will be a decrease in the number of air travel due to constant changes in the rules of departure, opening and closing borders, tests for COVID-19, etc. Besides, some people are afraid of getting infected with the coronavirus on the plane, although this is highly unlikely. According to a study conducted by the International Air Transport Association (IATA), the probability of catching COVID-19 on an airplane is extremely low. Since the beginning of 2020, only 44 cases of potential coronavirus infections have been traced back to flights.

Remote work from any corner of world

A widespread shift to remote work is a new trend of the outgoing year and the upcoming one. At the moment, a huge number of companies have many employees working remotely. The main advantage of remote work is the opportunity to perform your work from anywhere in the world. People can work in a different country as well as relax or take treatment there. The Hotel Office is gaining popularity worldwide. The largest chain of hotels, the Providence Marriott Downtown, offers remote employees Day-Use packages with discounts of 50%. Many hotels provide discounts (for long-term stays-up to two months or more). Therefore, employees can settle on some paradise-like islands or in the mountains.

Digitalization of tourism industry

The overall shift to a remote type of work has also affected the employees of the tourism industry. Experts have already pinpointed great changes in consumer behavior. Nowadays, people prefer booking tours online. According to the EU e-commerce report for 2020, the lion's share of citizens buy tours online (57%). Analysts record the rapid development of online services. For example, in the UK, the digitalization of tourism exceeds 90%. The closure of offline travel agencies enables travel managers to comply with epidemiological measures imposed by the government, such as no long queues. The digitalization of the tourism business is a necessary condition for its survival. What is more, the long-term impact of COVID-19 on the tourism and air travel industry is a key issue that requires a separate study.