With world arrivals predicted to reach a 50% slump by the end of 2020, the global travel supply chain is currently under tremendous pressure.
Undergoing global recession and second wave in virus attack, countries are resorting to innovation to speed up recovery, as per Euromonitor International’s latest report, a global market research company, ‘Accelerating Innovation after Coronavirus’.
A strong rebound of 5% real growth in GDP and a 76% rise in inbound receipts are expected in 2021 in Europe. In the recovery process, sustainable tourism will play a huge role with countries trying to attain net positive impact for local communities, particularly places experiencing the ill effects of over-tourism, like Barcelona. With an increase in nature-based activities, Scotland is developing a therapeutic recovery programme, known for its cognitive benefits, to get mental wellbeing post-lockdown in a better state.
Within the coming three years, in Asia Pacific, recovery is expected; comparatively earlier than Western Europe counterpart. Home to the largest population of internet users in the world, innovation in the region is flourishing with concepts managing different needs during lockdown, comprising customer journey, mobility and sustainable destination management. In 2020, mobile sales accounted for 62% of all APAC online sales. Post pandemic, this trend will continue rapidly. By 2025, Singapore will lead online travel sales with an average spending of USD1, 200 per person a year.
In 2021-2025, in the Americas, Panama and Argentina are predicted to witness a 20% CAGR in inbound receipts, before the US at 12% CAGR. Digitalization is speeding up with a huge range of technology implemented into new travel concepts, like AI, automation, blockchain and the Internet of Things, creating safer, sustainable and hassle-free travel experience. In the next five years, Insights from Euromonitor pinpoints the fact that 61% of US travel companies are expecting AI to influence their businesses.
In the Middle East, countries are introducing new health and hygiene safety standards to reassure people’s security. Ozone technology and thermal cameras are being used in Mosques in Saudi Arabia for mass disinfection and temperature scanning. In Africa on the other hand, the potential for smart connected cities is close in countries such as South Africa and Nigeria, with the acceleration in digital identity creation and rolling out 5G.
