As travel restrictions and Covid testing eased, 2022 saw a significant return to travel. Despite the economic boost this rebound provided the travel and tourism industry, it also created many challenges. From car rental shortages to mass flight cancellations, many travelers were left frustrated with their interrupted journeys.
These frustrations haven’t stopped people from wanting to travel. Research by Booking.com reveals that 73% of people are more optimistic about travel in 2023 than they were in 2022. Heading into 2023 in the midst of complex global economic and political uncertainty, travel and tourism marketers will need to be agile and adapt to market shifts, while staying a step ahead of new trends.
Below I’ve summarized 8 predictions for how the travel and tourism industry will evolve in 2023.
#1. The concept of luxury will change
The term “luxury travel” would historically conjure the visual of affluent consumers flying first class, staying at the finest 5-star hotels, and dining at Michelin-star restaurants. This may still have some accuracy, but consumers are changing. There are other values that mean luxury to consumers that don’t fit the traditional definition of the word. Today’s luxury traveler seeks a greater understanding and immersion into the local culture than ever before. They’re redefining their vision of wealth to include enriching experiences. They don’t just want to see – they want to participate and create everlasting memories which will be more prevalent than ever in 2023.
#2. Recruitment tactics will become more sophisticated
Millions of people lost their jobs in the travel and tourism industry when international travel bans were imposed. As the industry rebounded, people were expected to rush back to their jobs, which hasn’t been the case. Staff shortages are a key issue in the travel and tourism industry. The industry’s recovery and future growth are contingent on its ability to solve this issue which will be a key focus in 2023. Deeper sophistication in recruitment marketing will be activated. This sophistication includes leveraging Social Influencers and personalization tactics in digital strategies to drive hiring by promoting career opportunities.
#3. The need for sustainable corporate meeting spaces will rise
2022 saw a steady rise in business travel. This is expected to increase drastically in 2023. In fact, 85% of travel suppliers predict the number of bookings by corporate clients will be higher or much higher in 2023. Additionally, 80% of suppliers expect travel spending by corporate clients will be higher or much higher in 2023 compared to 2022. This rise in business travel will result in a need for more creativity in managing corporate meeting spaces and events. This will result in destination marketers and planners striving to promote best practices for conducting responsible, hybrid and sustainable meeting practices.
#5. Photography and advertising copy will become more relatable
The imagery and advertising copy used in travel and tourism campaigns are extremely important when it comes to capturing consumer attention. In 2023, the imagery that will capture this attention will be lifestyle photography that is relatable to the consumer. For example, a couple considering a trip to Disneyland would be more enticed if they saw an advertisement of a couple enjoying the park as opposed to an image of a family with children. As relevance increases with photography, it will also increase with call-to-action messaging. What used to be “Learn More or Plan Now” will become more engaging like “Buckle Up or Join the Fun.”
#6. The metaverse will become a go-to travel guide
Virtual travel will boom in 2023 as the metaverse and virtual reality become a crucial part of the travel and tourism industry. 43% of the world’s travelers say they will turn to virtual reality next year to choose their vacations. With travelers able to virtually visit destinations in advance of physically visiting them, uncertainty will be removed and they’ll become more adventurous in their destination choices. In fact, 46% of travelers are more likely to travel to destinations they would not have previously considered after experiencing them virtually. This creates an abundance of opportunities for marketers to create new and impactful virtual experiences.
#7. More travel and tourism campaigns will be supported by Artificial Intelligence
Artificial Intelligence is a large subject of intrigue. This intrigue will be amplified drastically in 2023 as marketers become more familiar with AI chatbots, such as ChatGPT, the AI chatbot from OpenAI which has many marketers equally excited, concerned, and curious. With labor shortages causing a strain on resources, Artificial Intelligence has the potential to provide marketers with the support needed to adjust campaign imagery and copy in seconds. Relying on the support of AI tools will allow travel and tourism marketers to quickly update digital campaigns based on real-time information, which could open the door to a world of possibilities.
#8. Connected TV will be the most valuable channel to reach travelers
CTV ad spending is expected to grow by 14.4% in 2023, while linear TV drops. The shift in spending follows viewership changes, as streaming’s share of total TV time has surpassed that of cable. CTV overtaking both cable and broadcast TV presents both opportunities and challenges. Ad fatigue is a huge challenge when it comes to CTV advertising, but there’s an opportunity to overcome this by layering in personalization tactics, including dynamic diversification. Dynamic diversification can enable brands to deliver appropriate advertising variations to their audiences without breaking the bank or requiring from-scratch production work. Ad technology opens the door to support CO-OP marketing initiatives for destinations in connected television, making it more affordable and accessible to all stakeholders. Contextual and dynamic signals such as time of day, weather and program genre can allow advertisers to vary their CTV creative to achieve frequency without fatigue.
To learn more about leveraging thoughtful creative strategies and dynamic tools in travel and tourism campaigns, feel free to contact me directly at vivian.mur@a.ki