By 2030, there will be an extra billion people in the world, of which it is forecast 20% will be travelling. The United Nations predicts a population of 9.6 billion by 2050.
NB This is a guest article by Scott Alvis, chief marketing officer for Amadeus North America.
And while these statistics might be astounding to some, a rapidly growing population combined with improved standards of living lends itself to a prosperous global travel market ahead.
When thinking about the future traveler - and consumers in general - companies will need to shift towards understanding the motivations driving their decisions. They will also need to give more thought to the demographic and economic trends that lie ahead and how those trends might impact the way they market to the consumers of tomorrow.
Demographics are dead
In the past, companies have targeted their offerings based on demographics such as age, examining millennial preferences compared to baby boomer preferences and the impact of Gen Z on the future.
Over time, technology has leveled the playing field, making traditional consumer segmentation by age or generation a thing of the past.
Today, travel companies must consider how the travel ecosystem could change, focus on gaining insights into the drivers behind consumers’ behaviors and determine how to personalize offerings in ways that give consumers exactly what they want.
Over the next several decades, population growth changes, especially in emerging nations, will change the global travel population as travelers will come from a wider array of nations. But it may be too early to predict the exact travel needs and desires of these new travelers.
Airlines and travel providers will need to diversify their offerings and embrace greater flexibilities to best accommodate future traveler needs.
Rebalancing of global power
By 2030, the global economic power map will be redrawn, driving double-digit traffic growth is some markets which in turn impacts the global travel landscape.
Asia-Pacific, Latin America and Africa will become the fastest growing markets while China surpasses the United States to becomes the largest global economy.
All of these shifts will mean the maps of airline travel – and travel patterns overall -- could be redrawn.
By 2030, the international stage will have changed. As globalization continues, national, ethnic and religious groups will become harder to define as cultures and communities intermingle more closely and future generations of travelers self-identify more fluidly.
The migration from emerging to developed markets will define the future global population flow, prompting companies to consider populations with “multilocated” individuals - such as those with dual-citizenships, temporary visas or overseas students, etc.).
At the same time, technology will enhance travelers’ abilities to travel further and get places faster, thus further impacting global travel patterns.
An Amadeus report, Future Traveller Tribes 2030: Understanding Tomorrow’s Traveller, explores how the shift from a “demographic” to a “psychographic” marketing approach can be more effective for targeting consumers.
The report reveals a new way to view consumers based on the motivations driving their behaviors and outlines six traveler tribes which set to shape global travel by 2030:
• Simplicity Searchers: value ease and transparency in their travel planning
• Cultural Purists: use travel as an opportunity to immerse themselves in an unfamiliar culture
• Social Capital Seekers: express a desire to take maximal social reward from their travel
• Reward Hunters: seek a return on investments made in their busy, high achieving lives
• Obligation Meeters: have their travel choices restricted by the need to meet a bounded objective
• Ethical Travellers: allow their conscience to be their guide when organizing and undertaking their travel
As the consumer landscape evolves and new global economies enter the mix, travel providers will have new opportunities to embrace more of a psychographic approach to segmentation.
Furthermore, as the speed of technological change accelerates, companies will need to align their offerings with the true drivers behind consumer motivations and decision-making.
With a solid understanding and awareness of the landscape ahead, companies across all industries including travel can equip themselves with the knowledge and resources they need to meet and exceed the expectations of tomorrow’s consumer.
NB1 This is a guest article by Scott Alvis, chief marketing officer for Amadeus North America. It appears here as part of Tnooz's sponsored content initiative.
NB2 Population growth image by Shutterstock.