globalEDGE Blog - By Tag: travel

As many people go around the world to travel and enjoy the scenery of various attractions, we are starting to see how the traveling industry has shifted towards getting a better understanding of what travelers want in their destination. The market size for tourism has been making a comeback over the last few years since the pandemic, regaining their sector amount from $0.8 trillion in 2020 back up to $2 trillion in 2024. On top of it, WTTC announced this year that the travel industry has put approximately $11.1 trillion toward the global GDP. Travel and tourism will take over 11.4% of the economy by 2034, leading to a $16 trillion contribution. But now the question is, what makes this industry appealing for travelers to visit various countries?

The popularity of cruises has increased astronomically since the significant dip it took due to COVID-19 in 2020. The global cruise market is estimated to reach 37 billion U.S. dollars by 2028. Currently, the United States is the leading country by far in terms of revenue created by cruises. In 2025, it is estimated that the United States will generate a little under 16 billion dollars of revenue from the cruise industry.

Spring break. Images of beaches, bikinis, and maybe a fleeting sunburn cross our minds. But beyond the fun, this annual student craze unleashes a surprising ripple effect on the economy.

Climate change is a subject that few need an introduction to. The world is continuing to see long-term changes in temperature and weather patterns, some of which are being driven by humans. The prevalent use of non-renewable energy has increased this shift in climate, forming new issues in other markets. One industry that is seeing new obstacles due to climate change is the travel industry.

The World Cup is making history in 2022! This year marks the first time in the 92-year history of the World Cup that it is hosted by a Middle Eastern nation. Qatar put in its bid in 2009 while competing against Australia, South Korea, Japan, and the U.S. for the chance to host this prestigious event. Hosting sports events as globally recognized as the World Cup ensures economic benefits that will provide the nation with a great opportunity to not only capitalize on profit but also show off its unique culture and traditions throughout the event, resulting in progress for the nation of Qatar.

The anticipation around the growing electric vehicle market has consumers excited about the future of transportation, but this future may be approaching in a way we did not expect. With concerns around COVID-19 exposure on public transportation, many people started utilizing alternative methods of getting around, one of those methods being biking. A Dutch company in particular saw this phenomenon and has taken their solution to the next level, saying goodbye to the average bicycle and introducing electric bikes.

Travel has been a delicacy over the past few years. Due to the ongoing pandemic, many previous flyers have been less frequent with their travel. With the recent merger of two major airlines, the world of traveling is in for a major change. The Spirit Airlines franchise and Frontier Airline franchise completed their merger over the weekend. The two franchises have been hit hard by the pandemic, and the merger can help with their recovery. These airlines have been major players in the low-cost flight industry in the United States and Latin America, including Puerto Rico, Mexico, Jamaica, and El Salvador. This move will help them grow and move past the pandemic. The union between Spirit and Frontier is expected to create enhanced values for shareholders of both airline industries and allow the companies to better compete with rival airlines.

On November 26, 2021, a new variant, Omicron, of the coronavirus was discovered in South Africa. The World Health Organization declared this variant a concern due to Omicron's unusually high number of mutations and warned that the overall global risk is very high. Similar to other variants, these mutations impact how easily the virus spreads and the gravity of this virus when sick.

On Monday, November 8, the United States lifted COVID-19 restrictions that kept many international travelers out of the country for 20 months, a possible indicator of the rebound of the international travel industry. As of November 8, the majority of those entering the United States will be required to show proof of vaccination as well as a negative COVID-19 test. The United States is just one of the many countries that will require proof of vaccination upon entry. Other common requirements for travel in a COVID-19 conscious world include a brief quarantine period or a negative COVID-19 test upon entry, although restrictions can vary widely by country. To read a blog post about the United States opening its borders, click here. 

Have you been missing a loved one that lives across the globe? Now might be your chance to finally see them. For the first time in 18 months, the United States has finally opened its borders to tourists since they closed the border at the beginning of the pandemic in March 2020. Since the pandemic, the global travel industry has lost hundreds of billions of dollars in the last 18 months, due to a lack of tourism. In New York City during the pandemic in 2020, it lost $60 billion dollars in revenue and caused 89 thousand people to lose their jobs in retail, arts, culture, transportation, and hotels.

On Monday, October 3, 2021, global airlines within the lobby group International Air Transport Association (IATA) announced their plans of reaching net-zero emissions by 2050. “For aviation, net-zero is a bold, audacious commitment,” International Air Transport Association Director General Willie Walsh said, “but it is also necessary.” To many, this plan may seem unattainable due to limited solutions and resources.

Optimism for the end of the pandemic has steadily increased with the arrival of widespread vaccinations. No industry is more ready for a return to normality than the tourism industry. In 2019, the last normal year for travel, tourism provided $8.9 trillion to the global GDP. Through October of 2020, tourism revenue was down $935 billion. As we look forward to being able to travel again, let’s look at which cities and locations see the most visitors per year.

As world governments begin to roll out COVID-19 vaccination initiatives, they are faced with a dilemma. Are they allowed to discriminate against who can travel or visit restaurants, and theatres based on whether a person is vaccinated? Proponents of these restrictions say opening businesses to vaccinated persons is a solution for allowing the economy to safely heal. On the other hand, some say these types of restrictions may unfairly discriminate against minorities who are less likely to have access to a COVID-19 vaccine, or younger people who won’t be able to get access to a vaccine until later phases of vaccination initiatives. Some countries are already experimenting with these types of restrictions.

With Pfizer and Moderna’s vaccines starting to be carried out to the general public, one might consider, "At what point will travel and tourism pick up?"  This industry has been arguably most affected of all, and will likely face the steepest recovery timeline due to the time it will take for vaccines to be administered and for world governments to ease travel restrictions.  While many of these companies have incurred tremendous financial setbacks, they are eager and prepared to provide safe travel experiences for tourists across the globe.

With the COVID-19 pandemic greatly decreasing travel around the world, airlines quickly retired their older and less economical planes, including Airbus’ A380 and A340, older models of the Boeing 747, and their aging fleets of intercontinental jets. When confronted with the reality that the pandemic would be cutting the world’s airlines revenues by almost $500 billion and the impending climate crisis’ effects, these retirements were necessary for most, but the expected recovery by 2025 also brings several new developments in the world of aviation.

The economic landscape has changed drastically over the last year. While there have been severe hits to industries such as travel and retail, others have seen increased growth. One of these thriving markets is e-commerce, with leading digital retailers like Amazon, which has seen tremendous growth since the middle of March. Specific medical industries are also thriving, with healthcare IT and medical textiles becoming exponentially more important to deal with issues brought on by COVID-19. While it is understandable that digital and healthcare industries are growing, there is a niche industry that has seen a surprising uptick in interest during 2020. The demand for the purchase and rental of private islands has skyrocketed at a time when most travel opportunities have been restricted.

The coronavirus pandemic has brought about changes in lifestyle for populations around the globe.  People are staying home and avoiding travel, whether by choice or due to government restrictions. International travel, in particular, has stopped in its tracks.  As of March 31, the United States is under a Global Level 4 Health Advisory, with the state department recommending all citizens avoid international travel. Inevitably, travel-related industries have felt the impact of these changes.  Let’s look at how airlines and other hospitality businesses have been affected by the coronavirus.

2019 was a turbulent filled year for many airlines, while others seemed to have smooth flying all year. Two of the main contributors to the success of airlines this year were the companies’ ability to schedule flights around bad weather and compliance between employees and a company’s management.

By now, everyone has heard of virtual reality (VR). For the past decade, scientists and engineers have tried to improve this technology to be more user-friendly and affordable. Companies around the world are all investing in this "next big thing". Thanks to their hard work, VR has become not just something in fantasy movies but also a technology that can be used in daily life.

Throughout the world, sustainability is a growing trend.  Consumers are beginning to recognize their contribution to climate change and habitat destruction, and a sense of social responsibility is growing.  The tourism industry is no exception. Tourism is responsible for about eight percent of global carbon emissions. A single person flying from New York City to Paris generates 1,812.5 pounds of carbon dioxide according to Sustainable Travel International.  So, let’s look at how people are changing their travel habits and how it’s affecting businesses around the world.

Commercial Space Travel has been a dream for years. Most science fiction media would tell you that it’s all aliens and fantasy—but it has become the dream of many humans to walk on the moon. The National Aeronautics and Space Administration (NASA), while usually in the spotlight when talking about space travel, is not the top organization researching private flight.

Postcards could be dated back to the Victorian era in the UK. It was the first time that brightly colored photos were sent and received to share the joy of special occasions, travel destinations, and precious memories. However, there has been a steady decline in the sales of postcards, predominately due to the rise of social media and portable technologies. These platforms have led to instant sharing and convenience for postcard consumers.

In the past few decades, there has been a steady increase in the number of international tourists everywhere, both inbound and outbound. As connections increase due to globalization and advanced technology, more people are traveling for leisure than ever. This increase has shaped a new industry with high growth potential. In recent years, tourists' spending is increasing at a surprising speed, contributing to countries GDP and shaping many travel policies.

Taking into consideration cancellation and no-shows, airlines have always been overbooking flights in order to maintain a full flight and keep the prices low. Most of the time, predictions are accurate and all passengers are able to board the flight. However, on some occasions, passengers will be "bumped". Bumping also referred to as "declined-boarding", is when passengers are forced to give up their seats involuntarily. Before bumping passengers, airlines must first ask for volunteers in exchange for compensation. When there aren't enough volunteers, bumping takes place.

China has successfully landed on the far side of the moon, something that no country has done before. This is a major step in challenging the United States' supremacy regarding space research and travel. President Xi Jinping has announced ambitious space travel goals, including a lunar base by 2025, the ability to man the facility by 2030, and a long-term goal of mining the moon for energy resources. With these announced plans, there is pressure mounting on the United States to continue to reach new solar milestones. Right now, the U.S. isn’t planning to return to the moon until 2023.

A necessary and functional accessory for students of all ages, day-to-day employees, and travelers across the globe, backpacks are widely consumed as a staple of transit and activity.  With their versatility that a variety of uses—from storing school supplies, to holding electronics, to carrying clothes and food—backpacks provide users with many ways to tote their belongings and are one of the most invested in goods with total sales value projected to climb over 25 billion dollars in 2018, and increase to over 30 billion dollars by 2021.  The backpack market currently holds a value of about 16-20 billion dollars and is expected to hold over 25 billion dollars in 2022.

Since 1912, hostels have been a centerpiece for teenagers and young adults traveling. They are overwhelmingly popular throughout the European continent, but also have a presence in most tourist-friendly countries around the world. They are a low-cost option for housing, eating, and provide an opportunity for social interaction. In an age where freelance work is becoming more common, hostels are playing an increasingly important role in travel and work abroad.

The aviation industry has advanced society in numerous ways despite its relatively short existence. Being the fastest and most convenient form of transportation for long-distance travels, people from all over the world fly daily for education, leisure, and business. In fact, airlines have reported a total of 4.1 billion passengers in 2017 alone. One downside of the industry is its price instability. The major determining factor is the cost of fuel, and as we all know, fuel prices are extremely volatile. The International Air Transport Association, an association composed of 290 member airlines, announced at its recent meeting that the profit forecast for 2018 is going to decrease by 12% due to the unexpected increase in fuel prices. According to the Jet Fuel Price Monitor, fuel prices have already increased by 24.97% compared to last year.

Many countries around the world motivate and support young citizens to travel and study outside their home country. Governments often invest in scholarship programs that provide students with the chance to leave their home country and learn in educationally advanced countries such as the United States, Britain, Canada, and Australia.

This year, the International Air Transport Association anticipates four billion people will engage in global travel. By the year 2036, it is expected to nearly double to 7.8 billion—half of which will solely be from people living in Asia. High rates of international travel indicate economic well-being, and increased globalization will continue to drive demand. Areas experiencing a spike in international travel will benefit from the influx of money from tourism, but not without enduring the consequences of expansion.

The process of acquiring a second passport as means of citizenship is continuing to grow in popularity as more countries establish themselves in the industry. For passport owners, the return on investment ranges from increased access and establishment in new markets to owning luxurious homes in coastal regions. For participating countries, the potential for job creation or financial support is among the benefits. The trend has gained significant traction, climbing to what is now a multi-billion dollar industry.

There has been an increase in research on how studying and living abroad can affect one's performance at work. In a world more connected than ever before, employers are looking for applicants who can think critically and adapt to an evolving business environment. Experience abroad can help offer unique talking points during an interview, and it might offer the competitive edge that lands the job.

As winter vacations come to a close, the global workforce is underway again, and there are several questions business and corporate travelers have regarding their upcoming costs of travel and stay. Among the many factors, the future of international business travel remains uncertain due to the prolonged set back in the Chinese economy, the United Kingdom’s monumental vote to depart from the European Union, the controversial U.S. Presidential election, and increased security concerns across the globe. However, despite the uncertainties, global demand for air travel remains at a record high.

President Obama began his week-long trip abroad this Monday in Beijing, where he was attending the annual Asia-Pacific Economic Cooperation (APEC) summit. While at the conference, President Obama unveiled a new visa agreement with the Chinese government. The new agreement extends tourist and business visas from one year to ten years, the longest allowed under US law. Student visas are also extended from one year to five years. The visa reforms went into effect Wednesday, November 14th.

In December of 2013, American Airlines and US Airways have completed their long awaited merger to create the world’s largest airline. Earlier in 2013, the merger was blocked by the United States Justice Department due to concerns that the merger would adversely affect competition in the airline industry of the United States. In order to reach a settlement, American Airlines and US Airways agreed to give up several hundred gates at airports across the United States. Now the companies expect to save over one billion dollars in synergy with the merger. This merger will undoubtedly have a variety of effects on the global airline industry.

The Arctic Ocean has traditionally been covered in ice and very difficult to travel through with a ship. Currently the ocean is travelable for four months a year as polar ice caps melt due to global warming. One country taking advantage of the newly opened route is China. A Chinese shipping company, COSCO, sent a ship from the port of Dalian to Rotterdam in the Netherlands, a 3,380 mile route that would take just over 30 days.

From the hustling cities of Asia to the scorching desert cities of the Middle East, business travel is booming in emerging countries. Last year business traffic in the emerging markets of Asia, Latin America, and the Middle East grew substantially and major infrastructure projects are underway to accommodate the rapid growth in these markets. Most emerging cities are experiencing an expansion of airports, hotels, and highway. This trend is further testament to the dynamism and growth prospects of emerging markets.

The Costa Concordia cruise ship ran aground off the coast of Italy on January 13th and has caused, along with a devastating heartbreak, major waves in the cruise industry. The tragic crash of this ship has caused speculation about the competency of major cruise lines worldwide. It seems that there are not strict regulations on cruise lines as passengers may have assumed which has caused customers to question their safety and could affect the travel industry as a whole.

Hop on that plane, business travel is back! After the global recession hit, many companies scaled back on corporate travel. More sophisticated technologies along with cost cutting initiatives around the global recession also led to a decline in business travel. To companies less travel meant lower costs, and more virtual meetings. While this may have helped some companies’ bottom lines, some saw business relationships and sales numbers suffer.

In a recent Wall Street Journal article the idea of more and more students taking off a year before college was raised. These students would instead travel, volunteer internationally, and even study fields they are interested in pursuing. After seeing the increase of those engaging in the "gap year" as they call it, it further begs the question "why"?

Today, business trips are common for many employees as modern transportation allows people to travel around the world quite easily. Hotels are a critical component in the business trip process and play a major role in accommodating business travelers. With this responsibility, hotels are looking to provide comfort to the many business travelers that are expected to keep up with their workloads on the road. Businesses in the hospitality and travel industry are changing their strategy to satisfy their hard working customers. You may have a guess to what this new strategy may be—remodeled lobbies and bars, more comfortable beds, or luxurious restaurants? Actually the answer is rather simple. Hotels are now accommodating business travelers with a redesigned workspace in hotel rooms.

The global travel industry has been hit hard by the recent economic downturn. Hotels all over the world have experienced a drop in occupancy rates due to this decline. So renovations and sprucing up rooms seems like it would be last on their priority list now, right? Not necessarily. Some hotel chains have decided that it is worth their investment to improve rooms, lobbies and other facilities to make them more modern and up to date and appealing to travelers.

While many United States and European airlines have been floundering, the Latin American airline industry has been soaring and is expected to continue to grow into next year. New non-stop flights, frequent flier miles partnerships and alliances of airlines have propelled the airline industry in Latin American countries. While much of the globe has been hit hard in the airline sector, the International Air Transport Association expects Latin America to thrive.

Think about it, when the economy is in a downturn, what tech startups can find funding to develop a new business model? The innovative companies of course! You know, the ones with different ideas that stray away from the normal? It’s these innovative companies that strive in this harsh economic atmosphere, and that is just what happened in the recent economic downturn. The economy weeded out the basic, cookie cutter businesses and unearthed the gems beneath. Some of these gems include the likes of Spotify, Twitter, FourSquare, and Tesla Motors. All four of these companies have a stake of their business abroad too which means that these successful tech startups understand the importance of going global. How have they done business abroad? Glad you asked!