The paper suggests short-term rentals have increased the number of accommodations available and helps the spread of visitors in a destination, expanding local community participation in tourism and offers a different and sometimes unique option to travellers.
To help address the increased popularity of these accommodations, the report offers case studies from destinations such as Cape Town, Sydney, and Seattle, amongst others. It includes simple policy recommendations such as data sharing, registration, smart taxation, and long-term community investment approaches to benefit all Travel & Tourism stakeholders and can inform regulation.
For copy of full report click below
Geneva - The International Air Transport Association (IATA) announced passenger data for May 2022 showing that the recovery in air travel accelerated heading into the busy Northern Hemisphere summer travel season.
Note: We have returned to year-on-year traffic comparisons, instead of comparisons with the 2019 period, unless otherwise noted. Owing to the low traffic base in 2021, some markets will show very high year-on-year growth rates, even if the size of these markets is still significantly smaller than they were in 2019.
Total traffic in May 2022 (measured in revenue passenger kilometers or RPKs) was up 83.1% compared to May 2021, largely driven by the strong recovery in international traffic. Global traffic is now at 68.7% of pre-crisis levels.
Domestic traffic for May 2022 was up 0.2% compared to the year-ago period. Significant improvements in many markets were masked by a 73.2% year-on-year decline in the Chinese domestic market due to COVID-19 related restrictions. May 2022 domestic traffic was 76.7% of May 2019.
International traffic rose 325.8% versus May 2021. The easing of travel restrictions in most parts of Asia is accelerating the recovery of international travel. May 2022 international RPKs reached 64.1% of May 2019 levels.
“The travel recovery continues to gather momentum. People need to travel. And when governments remove COVID-19 restrictions, they do. Many major international route areas – including within Europe, and the Middle East-North America routes - are already exceeding pre-COVID-19 levels. Completely removing all COVID-19 restrictions is the way forward, with Australia being the latest to do so this week. The major exception to the optimism of this rebound in travel is China, which saw a dramatic 73.2% fall in domestic travel compared to the previous year. Its continuing zero-COVID policy is out-of-step with the rest of the world and it shows in the dramatically slower recovery of China-related travel,” said Willie Walsh, IATA’s Director General.
International Passenger Markets
European carriers’ May traffic rose 412.3% versus May 2021. Capacity rose 221.3%, and load factor climbed 30.1 percentage points to 80.6%. The impact of the war in Ukraine remained limited to areas directly impacted.
Asia-Pacific airlines had a 453.3% rise in May traffic compared to May 2021. This is significantly higher than the 295.3% year-on-year gain registered in April 2022. Capacity rose 118.8% and the load factor was up 43.6 percentage points to 72.1%. Improvements in the region are being driven by reduced restrictions in most of the region’s markets, except China.
Middle Eastern airlines’ traffic rose 317.2% in May compared to May 2021. May capacity rose 115.7% versus the year-ago period, and load factor climbed 37.1 percentage points to 76.8%. The progressive re-opening of Asian markets is boosting traffic through Gulf hubs.
North American carriers experienced a 203.4% traffic rise in May versus the 2021 period. Capacity rose 101.1%, and load factor climbed 27.1 percentage points to 80.3%. With most restrictions removed for travelers from this region, tourism and a high willingness to travel continue to foster the international recovery as several other routes areas are now outperforming 2019 results.
Latin American airlines’ May traffic rose 180.5% compared to the same month in 2021. May capacity rose 135.3% and load factor increased 13.5 percentage points to 83.4%, which was the highest load factor among the regions for the 20th consecutive month. Some routes, including those from Central America to Europe and to North America, are outperforming 2019 levels.
African airlines had a 134.9% rise in May RPKs versus a year ago. May 2022 capacity was up 78.5% and load factor climbed 16.4 percentage points to 68.4%, the lowest among regions.
Domestic Passenger Markets
India’s domestic RPKs rose 405.7% year-on-year in May, compared to the 78.6% increase recorded in April. In May 2021, India had experienced the country’s most severe COVID-19 outbreak.
US domestic traffic was up 26.1% in May, compared to May 2021.
2022 vs 2019
The strong results in most international and domestic markets compared to a year ago is helping passenger demand catch-up to 2019 levels. Total RPKs in May 2022 reached 68.7% of May 2019 levels, which was the best performance against pre-COVID-19 travel so far this year.
Air Passenger Market overview - May 2022 vs the same month in 2019
The Bottom Line
“The recovery in travel markets is no less than impressive. As we accelerate towards the peak summer season in the Northern Hemisphere, strains in the system are appearing in some European and North American hubs. Nobody wants to see passengers suffering from delays or cancellations. But passengers can be confident that solutions are being urgently implemented. Airlines, airports and governments are working together, however, standing up the workforce needed to meet growing demand will take time and require patience in the few locations where the bottlenecks are the most severe.
In the longer term, governments must improve their understanding of how aviation operates and work more closely with airports and airlines. Having created so much uncertainty with knee-jerk COVID-19 policy flip-flops and avoiding most opportunities to work in unison based on global standards, their actions did little to enable a smooth ramping-up of activity. And it is unacceptable that the industry is now facing a potential punitive regulatory deluge as several governments fill their post-COVID-19 regulatory calendars. Aviation has delivered its best when governments and industry work together to agree and implement global standards. That axiom is as true post-COVID-19 as it was in the century before.” said Walsh.
Read the latest Passenger Market Analysis (pdf)
HONOLULU, July 7th 2022 – The Department of Business, Economic Development and Tourism (DBEDT) released the results of its Q1 2022 Visitor Satisfaction and Activity Survey (VSAT) that shows overall satisfaction among visitors from Hawai‘i’s key markets has rebounded to pre-pandemic levels. Visitor satisfaction is a key performance indicator (KPI) of the Hawai‘i Tourism Authority’s (HTA) Strategic Plan, along with resident satisfaction, average daily visitor spending and total visitor spending.
"The Hawai‘i Tourism Authority’s comprehensive approach to destination management places the community’s needs first and foremost,” said HTA President and CEO John De Fries. “We aim to foster the right balance in which Hawai‘i’s residents, natural resources and culture can thrive, and visitors can have a meaningful, enriching experience.”
Prior to or during their trip, the majority of visitors from each market recalled seeing or hearing information about safe and responsible travel; caring for and respecting Hawai‘i’s culture, people and environment; and ocean and hiking safety.
The vast majority of visitors surveyed rated their most recent trip to Hawai‘i as “excellent.” This included visitors from the U.S. West (87.7 percent), U.S. East (89.2 percent) and Canada (86.6 percent). The ratings for the U.S. markets were up from the same reporting period last year (Q1 2021) and consistent with data collected from all three markets in Q1 2020, before pandemic-related restrictions were implemented. Visitors from Canada were not surveyed in Q1 2021 due to pandemic-related restrictions.
De Fries continued, “An essential component of Hawai‘i’s sustained recovery, the increase in visitor satisfaction during the first quarter is attributable to the numerous, hardworking individuals in our community – from the flight attendants and front desk agents to the stewards of our natural and cultural resources, to the musicians and entertainers, and the shop owners and restaurant servers.”
Hawai‘i outperformed expectations among many visitors, with 47.9 percent of U.S. West, 57.1 percent of U.S. East and 46.2 percent of Canadian visitors indicating their latest trip “exceeded expectations.” For all three markets, first-time visitors expressed higher degrees of satisfaction than repeat visitors and satisfaction was highest amongst younger travelers, those under 35 years of age.
Despite the slight increase in overall satisfaction in the first quarter of the year, the proportion of U.S. visitors who indicated they are likely to return to Hawai‘i in the next five years declined, with travelers indicating a willingness to return at 82.2 percent among those from the U.S. West (down from 86.3 percent in Q1 2021) and 66.6 percent among those from the U.S. East (down from 73.2 percent in Q1 2021). The high cost of a vacation in Hawai‘i was the top reason cited among visitors from both markets for being unlikely to revisit in the next five years. Nearly three quarters of visitors from Canada (74.7 percent) expressed interest in returning in the near future.
The likelihood of visitors from the U.S. West, U.S. East and Canada to recommend the Hawaiian Islands as a vacation destination to their friends and family has remained constant, with nine in ten visitors being “very likely” to advocate for a Hawai‘i trip.
The most popular activities on each island were the same for visitors from the U.S. West, U.S. East and Canada. Enjoying the beach was enjoyed by roughly 90 percent of visitors from each market in Q1 2022, followed by swimming in the ocean as well as enjoying scenic views and natural landmarks among more than two in three vacationers. Approximately half of the visitors from each market went hiking during their stay. At least a third of visitors from each market visited a park or botanical garden. Roughly 10 percent of visitors participated in agritourism activities. Approximately two percent of visitors participated in a volunteer opportunity with a community-based organization.
More than two thirds of visitors from these key markets participated in activities centered around history, culture and fine arts, including visiting historic and cultural sites, attending a lū‘au or hula performance, going to an art gallery or museum, or attending a festival or art/craft fair.
More than half of the visitors from each market dined at a family-style restaurant and nearly half enjoyed fine dining. Approximately 42 percent of visitors went to a food truck, roughly half went to a café or coffee shop, and more than one in three visited a farmer’s market. Nearly two in three visitors said they went to a local or artisan shop, and almost half purchased Hawai‘i-made products.
The VSAT is an ongoing survey of visitors from key visitor markets who recently completed a trip to Hawai‘i. The sampled visitor markets for Q1 2022 were: U.S. West (Alaska, California, Oregon, Washington, Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming), U.S. East (all other states in the Continental U.S.), and Canada. Typically eight visitor markets are analyzed, but due to COVID-19-related travel restrictions, visitors from Japan, Oceania, Korea, China, and Europe were not surveyed as these markets did not have sufficient visitation for this study.
DBEDT’s Tourism Research Branch contracted Anthology Research to conduct the VSAT survey. Data were collected between January 1 and April 30, 2022, among visitors who traveled to Hawai‘i during Q1 2022. A total of 3,832 visitors were surveyed during this period; 1,588 from the U.S. West, resulting in a margin of error of +/- 2.46 percent; 1,705 from the U.S. East, with a corresponding margin of error of +/- 2.37 percent; and 539 from Canada, with a margin of error of +/- 4.22 percent. Note all margins of error are presented at the 95 percent level of confidence.
The full results from the Q1 2022 VSAT are available online at:
By Sean McCracken | Hotel News Now | June 29, 2022 | 9:14 AM
ORLANDO — Since the onset of the pandemic, marketers in the hotel industry have been tasked with reaching potential travelers as behaviors seemingly change at light speed.
Speaking during the 2022 HSMAI Marketing Strategy Summit, Daniel Levine, director of the Avant-Guide Institute, said these consumer changes can be boiled down to five phenomena occurring not just in hospitality but across society.
1. A Holistic Mindset
Levine said much of the struggle of the past two years is directly related to desire for a more beneficial work-life balance or a redefinition of what that means.
"The idea of work-life balance has changed in the last few years to this idea of work-life integration," he said. "It's not about work is over here and the rest of your life is over here. People are learning, 'Hey, let's mix it.' It's all one thing, and if that doesn't work in my life, I'm going to do different work."
This mindset has potential to impact the hotel industry from an employment perspective, but it can also be a demand driver as more people push to work remotely.
"That's opening people's minds to say, 'Wow, it's not just work from home. I can work from resorts. I can work from The Caribbean,'" he said. "That's what's changing people's mindset."
This idea of looking at things more holistically also means consumers are expecting brands to better fit into their values and priorities, driving greater interest for sustainability at hotels.
2. Swift Assistance
Levine said consumers have an expectation today for immediacy from the brands they buy from, when they need help or information, but that's an area that many hotels have fallen behind in.
"People are researching, both B2C (business-to-consumer) and B2B (business-to-business) at 3 a.m. from their beds," he said. "That's happening more and more, so it really amazes me that I am not seeing more properties integrating and bolstering their FAQ pages to offer people that self-help at 3 in the morning."
He said it's easy to see this demand for immediacy across the economy, with services such as Amazon one-click ordering, Dominoes zero-click ordering or Walmart soon offering drone deliveries in seven states.
Daniel Levine, director of the Avant-Guide Institute, speaks during the 2022 HSMAI Marketing Strategy Summit in Orlando. (Sean McCracken)
Examples of self-serve convenience in hospitality and travel include self-serve kiosks for check-in. Some hotels have adopted the technology, but adoption is not universal.
Levine noted the hospitality industry, which is often a laggard in adopting technology, could be behind the curve in that regard, especially as more-tech-forward travel brands are already abandoning check-in kiosks due to consumers preferring to simply use their smartphones for the process.
He said that layer of customer preference should be baked into decisions on tech adoption.
"With self-serve kiosks, some of you might say cynically that they did that so they don't have to employ so many people," he said. "That's true, but these things have double duty. If it's not working from a customer's perspective, it's not going to work at all."
He noted there's a clear generational shift in consumer adoption of kiosks.
"It's interesting that younger people go to the kiosks because they don't want to talk to a real human, but older people go to a human because they don't want to deal with the technology," he said.
3. Braggable Luxury
Levine noted that over the course of the pandemic, the idea of luxury has shifted. More consumers are defining luxury as something they can brag about.
That means, in part, things that seem more new and novel feel more luxurious to consumers. But as more companies adopt a high-tech, low-human-touch model, the classic idea of luxury with a large human component can also feel more unique and interesting to travelers, with Levine noting that luxury could soon be defined as "interacting with human beings because human beings are expensive and machines are cheap."
He said luxurious and unique are quickly becoming synonymous.
"Think about the ice hotels in Sweden or Canada," he said. "You actually, physically sleep on a block of ice. Is that luxurious? No, it's the opposite. But it's considered a luxury experience."
4. Honest Communication
Consumers are increasingly looking for brands that will interact with them clearly and honestly, as they live through "a time that's particularly challenging when it comes to honesty," Levine said.
He noted the hospitality industry has historically been more on the conservative side but has increasingly embraced letting employees be themselves, dress down to appear less formal with guests and learn new ways to communicate in a more direct way.
Levine noted guests are particularly apt to recoil at the sight of what they believe are hidden fees, like resort or parking fees.
"I sort of understand why this is such a challenging thing in hospitality to deal with, but from a trends perspective, it ain't right because of" what consumers think about it, he said.
5. Phygital Interaction
Levine said companies and brands outside of the hotel industry, particularly in retail, are putting more effort into blending the experience for consumers between the physical and digital worlds.
While some retailers allow consumers to virtually walk through their brick-and-mortar stores online to shop, others including Macy's now allow customers to browse inventory through digital kiosks in stores. He also mentioned Sephora stores, where customers can virtually try on different lipsticks with augmented reality booths.
He said the trend is now common at food-and-beverage outlets, too.
"When you go to a restaurant, the menus are QR codes," he said. "This is a digital experience they're creating."
World Economic Forum June 30, 2022
Two experts highlight some of the key transformations in the sector going forward during the World Economic Forum's Our World in Transformation series.
The Travel & Tourism sector was one of the hardest hit by the COVID-19 pandemic, leaving not only companies but also tourism-driven economies severely affected by shutdowns, travel restrictions and the disappearance of international travel.
In 2020 alone, the sector lost $4.5 trillion and 62 million jobs, impacting the living standards and well-being of communities across the globe. Moreover, the halt in international travel gave both leisure and business travellers the chance to consider the impact of their choices on the climate and environment.
Amid shifting demand dynamics and future opportunities and risks, a more inclusive, sustainable and resilient travel and tourism sector can be - and needs to be - built.
The World Economic Forum's Travel & Tourism Development Index 2021 finds that embedding inclusivity, sustainability and resilience into the travel and tourism sector as it recovers, will ensure it can continue to be a driver of global connectivity, peace and economic and social progress.
We spoke to Sandra Carvao, Chief of Market Intelligence and Competitiveness at the United Nations World Tourism Organization (UNWTO), and Liz Ortiguera, CEO of the Pacific Asia Travel Association in Thailand (PATA), and asked them to highlight some of the key areas of risk and opportunity in the sector during an episode of the World Economic Forum's Our World in Transformation series.
What are some of the top global trends you're witnessing currently in the travel and tourism sector?
Liz Ortiguera: Given the extended lockdown that we had on travel with the pandemic, vacation for friends and relatives (VFR) is now a high priority for people who haven’t been in touch for a long time thanks to the pandemic. So, people are reconnecting. And that kind of links to the second trend, which is multi-purpose or blended travel. Never before, particularly now that we can connect digitally through Zoom, has the ability to work from anywhere enabled travellers to cover multiple purposes, like visits with friends and multiple business trips. So, we'll find that the duration of travel and the length of stay is longer. And third is the continued high focus on safety and wellness which is top of mind for travellers due to the pandemic. All travel is wellness-related now.
Sandra Carvao: I think there is a bigger concern with sustainability, which is very welcome in our industry. Consumers, particularly the younger generation, are much more aware of the impact they have, not only on the environment but also socially and on the communities they live in. We've also seen an increase in expenditure per trip, so I think people are very eager to go outside, and they're staying longer. And on the other side, I think there are some challenges: we’re seeing a rise in late bookings because restrictions can change at short notice and that’s having an impact on the decisions of travellers. This is putting pressure on the industry in terms of planning and anticipating fluctuations in demand.
“Social media surveys have shown that travellers who have immersive experiences are more likely to post about them, which is good for the industry.”— Liz Ortiguera, CEO of the Pacific Asia Travel Association (PATA)
What is community-based tourism and why is it important?
Sandra Carvao: One of the positive impacts of the pandemic is that people are looking for local experiences and are spending more time with communities. So, the concept of community-based tourism is obviously one that puts the community at the core of every development, ensuring that it's engaged and empowered and that it benefits. At the UNWTO, we worked with the G20 and the Saudi presidency back in 2020 and produced a framework for tourism development in communities, which states that communities need to be part of the planning and management of tourism activities. We need to go beyond traditional definitions of community to a point where the industry leans on partnerships between the public and private sectors and communities.
Liz Ortiguera: In July 2022, PATA is hosting a destination-marketing forum and one of the key themes is community-based tourism. The purpose is really to put the community and authenticity-in-culture activities at the heart of the travel experience. There are benefits for all stakeholders. One is that travellers can have an authentic experience. They're not in overcrowded, touristic locations and they experience something new and unique within the community. These experiences are designed in partnership with communities who get the benefit of financial inclusion, and if activities are designed properly, the reinforcement of their cultural heritage. Governments also engage in economic development more broadly across countries. Another interesting trend is creative tourism, which means you create an experience for tourists to participate in, like a dance lesson, or a cooking lesson. Social media surveys have shown that travellers who have these kinds of immersive experiences are more likely to post about them online and that's good for the industry.
“It is important to emphasize that virtual experiences, while they are a fun tool, can never replace visiting a destination.” — Sandra Carvao, Chief of Market Intelligence and Competitiveness at the United Nations World Tourism Organization
How is technology and innovation helping to leverage cultural resources?
Sandra Carvao: One interesting trend we’re seeing is that more and more people are booking trips directly, so communities need to be supported to digitize their systems. Education and upskilling of communities are important so that they can leverage digital platforms to market themselves. From the tourists’ perspective, it is important to emphasize that virtual experiences, while they are a fun tool, can never replace visiting a destination.
Liz Ortiguera: People have been living virtually for more than two years. Amazing innovations have emerged, such as virtual reality and augmented reality, and all kinds of applications and tools. But the important thing is the experience. The destination. Real-world experiences need to remain front and centre. Technology tools should be viewed as enablers and not the core experience. And when it comes to staff, technology can really democratize education. There’s an opportunity to mobilize a mobile-first approach for those who are on the frontlines, or out in the field, and can’t easily access computers, but need to get real-time information.
How is the sector dealing with labour shortages and re-employment of the workforce?
Liz Ortiguera: Labour shortages are much more dynamic in North America and in Europe. But it’s having a knock-on effect on Asia. If, for example, their air carriers are limited by staff and they have to cancel flights, which we're very much seeing out of Europe, seating capacity then becomes a limiting factor in the recovery of Asia Pacific. That's the main constraint right now. And compounding that is the rising price of fuel. But people in the Asia Pacific are keen to get reemployed.
Sandra Carvao: Labour shortages are a priority for the sector in countries around the world. Many workers left the sector during the pandemic and the uncertainty that surrounded the measures taken to contain it left many people unsure of whether the sector would recover. It is time to address things like conditions, scheduling, and work/life balance, all things which have been top of mind for workers during the pandemic. As the sector recovers, we need time to bring new hires on board and to train them to take over where those who switched jobs left off.
Are we seeing a growing trend towards domestic tourism?
Sandra Carvao: We’re talking about 9 billion people travelling within their own countries. And in many countries, for example in Germany, more than 80% of the tourism spending actually comes from the domestic market, similarly in countries like Spain and even smaller economies. Whenever it's possible to travel again, domestic markets tend to be more resilient. They kick off first mostly due to perceptions of safety and security issues. As the world economy recovers from the pandemic, there is a good opportunity for nations to rethink their strategy, look at the domestic market in a different way, and leverage different products for domestic tourists.
When it comes to sustainable tourism, how quickly could we mainstream eco-friendly modes of transportation?
Sandra Carvao: Transport is one of the key contributors to energy impacts and tourism. But it's also important that we look at the whole value chain. The UNWTO together with the One Planet Sustainable Tourism Programme just launched the Glasgow Declaration, which includes green commitments from destinations and companies. We’re seeing a strong movement in the airline industry to reduce emissions. But I think, obviously, technological developments will be very important. But it's also very important to look at market shifts. And we can't forget small islands and developing states that rely on long-haul air travel. It’s important to make sure that we invest in making the problem much less impactful.
Liz Ortiguera: 'Travel and tourism' is such a broad encompassing term that it’s not fair to call it an industry: it is actually a sector of many industries. The pandemic taught us how broad the impact of the sector is in terms of sustainability. There's a big movement in terms of destination resilience, which is the foundation for achieving sustainability in the journey to net-zero. We now have standards to mitigate that impact including meetings-and-events (MIE) standards and standards for tour operators. There are multiple areas within our industry where progress is being made. And I'm really encouraged by the fact that there is such a focus not just within the sector but also among consumers.
Jim Hepple is an Assistant Professor at the University of Aruba and is Managing Director of Tourism Analytics.