Travel, Transportation, and Hospitality Industry Trends To Watch in 2021
Several innovations were triggered and accelerated by the COVID-19 crisis. There’s pressure to stay competitive in this new business environment, which requires new strategies, processes, and sometimes, even business models.
Here are some travel trends to look forward to in 2021:
With COVID-19 vaccines rolling out this year at an accelerated rate, a return to travel is on the horizon and the industry is taking steps to win back customers.
A new 2021 travel trend is called, Dateless Departures—basically guaranteeing you a spot when the first tour to a specific destination starts again. If the dates don’t line up, you can rebook without losing money.
Another new safety option, Travel Bubbles, are smaller, private group tours designed to keep your group socially distant from other travelers. Predictions say that the rise in travel bookings started last January, while people are taking time off and looking ahead to 2022 .
For the Electric Vehicle (EV) Sector, exciting developments helped stock markets sputter back to life after spending months of 2020 in the red. The EV sector is set to grow 14x over the next decade. Tesla and the whole EV sector, in general, have been on a tear with TSLA stock boasting a 16,600% gain since their IPO and a 615% gain in the year-to-date and looking to add another 2x-5x gain over the next couple of years. The EV sector boasts a 62% YTD gain vs. 13% by the S&P 500, having climbed 25% over the past 30 days alone.
Shared mobility, including services such as taxis, car sharing, and ride-hailing, accounts for an estimated 5% of current passenger vehicle miles. There’s an exponential rise in shared mobility services projected to account for 19% of the total annual mileage completed by passenger vehicles in 2040. The ridesharing market was valued at $73 billion in 2019 and is expected to reach $218 billion by 2025—good for a compound annual growth rate (CAGR) of nearly 20% over the forecast period. The increase in demand for cost-saving and time-saving transport is expected to continue driving the market .
Travel, transportation, and hospitality industries—are they growing or declining?
If there’s a space that’s been hit hard by the COVID-19 pandemic, it’s where the travel and hospitality industries are. While some predictions state that the road to recovery could last until 2024, others don’t see such a grim picture. Instead, they see the crisis as a rare opportunity to make improvements and transform the travel, transportation, and hospitality space. One of these experts is Willem van Rossem, a seasoned hospitality executive with international experience in hotels and resorts worldwide. Furthermore, industry experts are very optimistic about the future of travel and tourism, and it’s important to remind ourselves that this isn’t the first crisis these industries have suffered.
As the industry tries to gain back its foothold, here are some trends we can expect:
- Digitalization is here to stay. The digitalization of certain processes such as mobile check-ins, as well as the use of facial recognition and chatbots, are suddenly seen as a requirement instead of being optional. As these digital processes became the norm, businesses that were hesitant to take the leap are now forced to accept that digital transformation is a must.
- Travelers will continue to look for unique experiences. Even during the lockdown, when virtual travel was the only option, people sought out unique ways to have a good time. Travelers don’t want to buy products or services; they want a memorable experience.
- Sustainability will take center stage. The COVID-19 pandemic has accelerated the push for more sustainable travel as environmental consciousness and human health were suddenly thrust into the spotlight .
As big corporations and new players are expected to take part in a purposeful agenda of creating new and more environmental offerings, there is no doubt that the quest of the travel, transportation, and hospitality industries will lead to development and innovations in the future.
By involving everyone, it can be expected that more support is necessary to cater to the needs of the sustainability market. For TaskUs, this is associated with new opportunities in a rather fresh, exciting, and steadily growing segment.