Global travel is back and buzzing.
After falling by 75 percent in 2020, travel is on its way to a full recovery by the end of 2024. Spending on travel is estimated to reach $8.6 trillion in 2024, representing roughly 9 percent of this year’s global GDP. What’s more, sixty-six percent of the travelers we surveyed say they’re more interested in travel now than they were before the COVID-19 pandemic. So, what is the future of travel?
In a recent McKinsey Live, partner Margaux Constantin and senior partner Matteo Pacca shared insights from new McKinsey research, The state of tourism and hospitality 2024. Margaux and Matteo explore how shifting source markets and destinations, growing demand for experiential and luxury travel, and innovative business strategies are all combining to dramatically alter the industry landscape.
The takeaway: Travel isn’t merely an interest these days, it’s become a priority.
To be successful in this increasingly competitive industry, travel and hospitality providers should understand their travelers inside and outside. The one-size-fits-all approach to tourism offerings has grown outdated. Today’s travelers want to indulge in creative experiences that are tailored to their priorities and personal narratives. And those priorities look different for travelers across generations and source markets.
For more on this topic, read the full research, The state of tourism and hospitality in 2024, and the accompanying collection of articles: Now boarding: Faces, places, and trends shaping tourism in 2024, The way we travel now, Today’s luxury traveler, Destination readiness: Preparing for the tourist flows of tomorrow, and Six trends shaping new business models.
You can also listen to a recent McKinsey Podcast episode, A new itinerary for the tourism industry.
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