WTTC Summit: Big Bucks Projected on People’s Travel Passions

Data supporting this and other travel trends were explored last month when the World Travel & Tourism Council (WTTC) held their 24th Global Summit in Boorloo (Perth), Western Australia. An authority on the economic and social contribution of travel and tourism, the non-profit global tourism body is known for being the only forum to represent the private sector in all parts of the industry worldwide.

Set to shape the future of global travel and tourism, the event welcomed over 800 delegates including industry leaders from some of the world's most influential travel companies and key government representatives from more than 50 countries, plus more than a hundred journalists.

Open Jaw was at the forum that explored the summit theme ‘Ancient Land: New Perspectives’. Over two days, attendees were privy to policy and investment shaping insights. Throughout the summit, I was immersed in the knowledge of expertise of featured speakers that included Jane Sun, CEO of Trip.com Group and John Kerry, the 68th U.S. Secretary of State.

While there were many noteworthy points raised, the main message I took home was how consumers are seeking unique travel experiences. I also appreciated the summit’s spotlight on gastronomy tourism and aboriginal tourism; two areas that are of deep personal interest, plus the exploration of sustainable growth and its ability to empower local communities while preserving unique landscapes.

Here were some of the main takeaways from the 2024 WTTC Global Summit.

The WTTC panel session on Redefining Tourism Competitiveness brought together James Thornton (Intrepid Travel), Audrey Hendley (American Express Travel), Jason Waters (Perth Airport) with Arnie Weissman (Travel Weekly).

Addressing members of the media, WTTC President and CEO Julia Simpson’s keynote speech emphasized the growing consumer interest in experiential travel and/or having a reason to travel. For truly genuine experiences, she noted the need for increased “public and private sector collaboration” to meet the demands required by consumers who are travelling for business, cultural or sporting events. An influx of travellers will also require more hotel rooms (I learned that the demand is in high-end and resort-style hotels) to address the higher occupancy rates.

According to travel experts on the Redefining Tourism Competitiveness panel, people are putting experiences at the heart of their reasons to travel. Panelists said today’s travellers are  looking to venture off the normal path to experience a destination’s culture through local communities.

Tripadvisor Group CEO Matt Goldberg gave a short keynote and said USD$350 billion will be spent in the next few years in travel based on experiences. Modern travellers are looking for authenticity in their experiences, with many seeking environmental, social and culturally sustainable options. However, six in 10 people find that the cost of these experiences is too high.  

Goldberg shared that operators providing more affordable options will be rewarded, explaining that many of these options are often second and third-tier destinations

He also noted that two-thirds of those using Tripadvisor plan to book three-plus activities, and suggested that AI-led innovations would help consumers save time and money with researching and planning their trip. While the travel sector lags in its AI adoption in contrast to other industries, a report released by the WTTC earlier this year on AI believes that this technology can personalize recommendations and marketing strategies by analyzing traveller data, optimising pricing strategies through real-time adjustments, and offer instant responses through AI powered chatbots. The report notes that AI will be disruptive, but that can predict future demand patterns, and also generate new opportunities.

Audrey Hendley, President of American Express Travel, said consumers are prioritizing experiences over other things and “will spend more on an experience without asking about the cost if it’s what they want to do.” Whether it’s participating in big experiential trips like sporting events such as attending all four Grand Slam tournaments or finding a hidden gem, the challenge for businesses is “to figure out what the product is so that when customers want to take that trip, they have it.”

Large events are projected to bring in USD$2.38 trillion by 2034. It’s also worth noting that outside of the event itself travellers commonly add extra days to a business or sports trip. These are prime opportunities that destinations and operators can capitalize on. Hendley noted that companies who can innovate to offer customers experiences around the event, such as membership access to lounges, etc. are value added. It also helps brands connect with customers even if they don’t travel every day. Smart.

James Thornton, CEO of Intrepid Travel has been seeing more competition in small group travel. I found it interesting that he considered the increase in service providers as a positive thing, reasoning that it was beneficial to the sector in the same way niche sectors like health food have been able to grow.

“It’s [a] more sustainable [product] and is more expensive,” said Thornton. “But the secret is to stay, eat and work directly with different local providers. It’s a value-based experience that feels good because it benefits the local community.”

The Global Summit featured a handful of sessions exploring how the sector is driving economic growth in remote regions all while making significant contributions to cultural preservation. As with other economic drivers, panelists noted the importance of government support when it comes to catering to the growing want from travellers in experiencing Indigenous culture. The host state of Western Australia was spotlighted as a region that has given its First Nation people a platform by “empowering Indigenous communities to tell their own stories and share their 60,000-year-old culture [which] create[s] sustainable tourism opportunities, while enriching the experiences of travellers.”

In conjunction with the event and its theme of ‘Ancient Land: New Perspectives’, the WTTC released a report on Indigenous tourism, which projected the sector’s contribution of US$67 billion to the global economy by 2034.

Food and wine tourism has been on the rise with 81-percent of travellers stating that trying local foods and cuisines are the highlight of a trip.  

Food and wine tourism is especially popular with Gen Z and millennials, with nearly half (47-percent) confessing to having planned a trip around visiting a specific restaurant. (This geriatric millennial felt seen since I plan almost all my trips around meals or restaurants.) While the previous statistic was interesting, I was blown away to learn that gastronomy tourism brought in US$1160 billion in 2021. And according to data presented at the WTTC, it is expected to double by 2027.

In a panel discussing the future of gastronomy and wine tourism, David Burgess, President and CEO of Miles Partnership, noted that consumers are pushing more towards the culture and preparation components of gastronomy in contrast to the high-end dining experiences of the past. It’s important to recognize that “people are now wanting to understand the supply chain” that goes into the product, whether it's food or spirits-a category of interest “that has boomed over the past decade.”  In this sense the journey to the plate has eclipsed what is on the plate.

This escalation of interest in provenance means that travellers are now looking to have a closer, participatory experience that might have an impact on local communities and economies. Food has become the medium that consumers can explore sustainability in a wider sense i.e. cultural, social, economic and environmental sustainability.

The event’s opening press conference provided further follow up to the WTTC’s Economic Impact Report released earlier this year. Having projected a record-breaking year for tourism and travel (contributing an all-time high of US$11.1 trillion to the global economy in 2024), data presented further showed that travel and tourism was responsible for 9.1-percent of the global GDP (9.6% tax revenues) in 2023 and is projected to be worth US$16 trillion in 2034.

A fascinating forecast for the decade ahead in travel tourism is the robust growth and career opportunities set to provide employment for a staggering 347.8 million people. That’s about one in 10 people in the world, or a 4.1% increase in jobs in contrast to the peak of 2019. Not only is travel tourism seen to impact the community by providing direct entry positions plus opportunities that can lead to different career paths, but it also creates jobs that can protect and conserve culture (i.e. Indigenous tourism) and uplift women. I found this reassuring.

Tour operators will benefit from understanding the interests of their customers. Experts advise that vendors will capture the market if they can provide tailored experiences or services with Chinese and Indian travellers and their rising incomes and an increasing appetite for travel being given as an example at the WTTC.

A rise in solo travel was also reported, with approximately 70% of millennials and Gen Z saying they will take a solo trip because they just want to get away. It was also revealed at the WTTC that young people’s travel decisions are influenced by social media influencers and shows like Emily in Paris. The Instagram generation was reported to have interest in experiences that “nobody else has had” versus things.

Other notable travellers include women 65-plus, and families of three generations who are traveling together.

Sustainable travel was another hot topic. The latest Environmental and Social Research data released by the WTTC revealed a significant decrease in climate footprint emissions from travel and tourism.

Hearing that greenhouse gas emissions were 7.8% less in 2023 than what was registered in 2019 was encouraging. I learn that this is due in part to a decreased dependency on fossil fuels (88.2% in 2023 versus 90% in 2019) and a slight increase (1.1%) in low-carbon energy in the same period. However, despite transitioning out of coal, natural gas remains a key source of energy. Thankfully investment continue to be made in sustainable energy sources that range from large solar panel farms to wind power.

Aside: Data from travel intelligence specialist ForwardKeys has shown an increased use of new generation aircrafts (from 2008 or younger) in international flights arriving to the Asia Pacific region, which reflects the ongoing efforts in operating sustainably.

The conference wrapped up its final sessions first with a panel exploring the practical steps to protect the environment while growing sustainably, and then concluding with a fireside chat with the incredibly charismatic Robert Irwin. The nature and wildlife advocate, personality and zookeeper at his family-founded Australia Zoo enchanted the audience with stories of his many adventures while offering suggestions in how nature can be both protected and celebrated in tourism.

Next year's WTTC Global Summit will be held in Rome. No date has been announced.