According to a recent report from the World Economic Forum and Kearney, “travel and tourism will contribute approximately $16 trillion to global GDP by 2034, representing more than 11% of the world economy.”
This means that travel retailers are in the perfect position to succeed in the coming years, provided they’re able to capture the attention of their target audience (i.e., tourists). This, of course, isn’t easy, especially due to the competitive nature of the travel industry.
With that in mind, here are some steps that key travel retailers can take to attract a higher volume of tourists.
Retailer: Tour Companies
Studies have shown that now, more than ever, travelers are on the lookout for authentic experiences that allow them to immerse themselves in local cultures. This is something that tour companies can easily provide, especially if they offer trips that allow their customers to stray (safely) off the beaten path.
For example, a 14 day itinerary for Spain could incorporate lesser-known destinations and towns in addition to tourist hotspots. This way, tourists can experience everything the country has to offer, without having to navigate the complicated planning process independently.
Tour companies can take this even further by curating trips or programs with specific audiences in mind. For example, they could run trips specifically for solo travelers, or specific age demographics.
Retailer: Companies offering Travel Experiences
Experiential travel is also on the rise. If you aren’t familiar with this phrasing, it simply means trips that are built around memorable activities as opposed to lounging by the pool and relaxing. This means that companies offering unique travel experiences, such as boat tours, are poised for long-term success already. However, there are certain steps that they can take to attract a higher volume of tourists moving forward.
For example, they may want to start by reconsidering their price point. By offering experiences at a more competitive price, they can capture the attention of a higher volume of tourists, especially when budgets are tighter than ever. This is a particularly effective strategy during off-peak season, when there are fewer tourists around and therefore higher levels of competition among providers.
Retailers offering travel experiences could also achieve greater success by offering a variety of experiences, each tailored to a different demographic. For example, companies running boat tours should target both young travelers and families separately. This allows providers to tailor each trip to their unique audience, increasing customer satisfaction rates and their overall experience.
Building a strong online presence can also be useful. This allows retailers to extend their reach as opposed to relying on customers stumbling across their store or website organically. This is particularly important when you consider the fact that a growing number of travelers use social media platforms such as Instagram and TikTok as a ‘search engine’ when looking for things to see and do while abroad.
Retailer: Airlines
While airlines will always benefit from having a steady stream of customers, there are still certain steps that they can take to boost their revenue and customer base.
Right now, the most obvious way to achieve this goal, beyond competitive pricing, is to build upon their sustainability initiatives. This is because the public interest in sustainable travel is growing year on year, with some travelers even opting to forgo traveling by air entirely. Airlines can continue to appeal to eco-conscious customers by clearly outlining their sustainability efforts, or the steps they are taking to reduce their carbon footprint. The more transparent they are in this regard, the better.
Retailer: Local restaurants
Restaurants and eateries in tourist destinations often earn the most money during peak travel periods. However, the competition to get diners into these spaces is fierce, especially for smaller, local restaurants that may have less of a pull than more established chains or businesses.
Fortunately, there are a few different ways in which local restaurants and bars can ensure they become popular among tourists moving forward. For example, they could partner with companies offering food tours in the area, meaning that guests will stop by at some point during their tour. If they enjoy the food or drink offered as part of their ticket, they are more likely to return in the future. Either way, they’ll receive compensation from the tour provider.
Alternatively, running regular deals and promotions can prove beneficial. For example, this could include a lunchtime offer or tasting menu. They should also focus on serving authentic, local cuisine wherever possible, as this is something many travelers are interested in trying out while abroad.
Retailer: Souvenir stores
Souvenir sales have been rapidly declining for some time. In fact, three in five travelers say they are buying fewer souvenirs now than ever before. There are many reasons for this, ranging from a preference for experiences over products when deciding how to spend their travel money to a feeling that the products lack value. For example, the majority of souvenirs are disregarded quickly upon returning home. Of course, this does not mean that all souvenir tours are on the path to closure; they simply need to innovate.
For example, those that sell locally-made products as opposed to mass-produced products are likely to perform better overall. This is because tourists then feel as though they are bringing a piece of the country home with them, as opposed to something they could find anywhere. Pricing is also important, especially if there are numerous souvenir shops on the same street selling similar products. Tourists will nearly always go to the most affordable spot!
Final thoughts. In short, there are many steps that travel retailers can take in order to attract a wider volume of tourists. This will allow them to fully reap the benefits of increased tourism in their locality, ensuring that their business remains operational for many years to come. It also provides them with ample opportunity to stand out from the crowd, giving them an edge against their competitors.
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