Rising geopolitical unrest, growth continues to be uncertain

The World Travel Market Global Trends Report in association with Euromonitor International just released today at the WTM notes that economic growth across the globe continues to be uncertain, with rising geopolitical unrest, notably in the Middle East and North Africa, Russia and Ukraine.

A potential US interest rate rise, oil price volatility, the struggling Chinese economy and the Eurozone crisis are all cause for concern.

However, the International Monetary Fund predicts global GDP growth of 3.2% for 2015 and travel continues to boom globally, with arrivals reaching over 1.1 billion in 2014, up by 4.3%. 2015 is forecast to see slightly slower growth, estimated at 3.7%. The Asia Pacific region is predicted to see the fastest growth in inbound expenditure over the next five years.

Key growing trends include digitalisation driving travel in the UK to secondary cities. UK towns outside London like Milton Keynes, Bristol, Cambridge, Glasgow, Leeds and Birmingham are increasingly looking at hi-tech strategies to attract visitors. These include smartphone applications, Twitter and beacon technology, which detects nearby smartphones and sends visitors information relevant to where they are.

A small but growing number of American companies are offering employees unlimited paid holidays to create happier, more loyal and motivated staff, resulting in increased bookings.

In Europe, Hipster Holidays are all the vogue: visitors to European destinations are looking beyond the mainstream, exploring alternative districts popular with local hipsters. Key ones include Dalston in London, Kreuzberg in Berlin, District VII in Budapest, Sodermalm in Stockholm, Norrebro in Copenhagen, Gracia in Barcelona, Malasana in Madrid, Amsterdam Noord in Amsterdam, Miera iela in Riga, Kalamaja and in Tallinn.

500 million Indians do not have bank accounts, and travel companies are helping out by introducing alternative payment schemes. And in the Middle East, Iran is poised tro be the next travel hotspot. As global relations improve with Iran, foreign travel companies are set to enter the closed country. As well as possessing 17 world heritage sites, Iran has 19 ski resorts, making it a surprise potential ski destination of the future. New hotels are increasingly being seen to shun the banks by using crowdsourcing and crowdfunding to open boutique properties, while technology start-ups are flourishing across Africa, boosting business travel.

In China, after a shaky start, the sharing economy is takes off in China with the rise of such initiatives as home-grown ride-sharing and private rental companies.