(Finance) – In 2022, Europe (36.7%) and the United States (19.9%) recorded the highest concentration of tourism activities. France is the most visited destination of the year with 79.4 million arrivals, followed by Spain (71.6 million), USA (50.87 million), Turkey (50.45 million) and Italy (49.8 million) . Travel agencies dominate bookings globally (44%). The highest market growth is expected for tour operators with a CAGR of +15.15% until 2027. Investments by private equity and venture capitalists in Cuban tourism startups will amount to 8.23 billion euros globally in 2022. Sustainable and digitalized travel, neverending tourism and off-peak travel are the main trends. This is the evidence presented by Team Innovation of PwC Italia during the celebratory event for the 10 years of the Startup Tourism Association, organized on the occasion of the TTG Travel Experience in Rimini to provide an overview of the main innovation trends in the tourism sector. At the center of PwC’s speech, future prospects, emerging trends, travellers’ expectations and an overview of the developments of investments in innovation for the realities of the sector.
After the positive performances and increase in revenues recorded in 2022, the tourism sector will continue to grow stably, reaching a value of 2.5 trillion euros in 2023 and an estimated average annual growth rate of 2.5% from 2023 to 2028. At a geographical level, the commercial concentration in tourism is greatest in Europe (36.7%) and the United States (19.9%), followed by North Asia (11.2%), South-East Asia ( 10.3%), Africa (9.8%), South America (4.7%), India and Asia (3.7%), Oceania (3.7%).
Europe and North America, which are among the regions with a higher commercial concentration, record more tourist arrivals. Specifically, France records 79.4 million arrivals, followed by Spain (71.6 million), USA (50.87 million), Turkey (50.45 million) and Italy (49.8 million). Europe is therefore the most visited destination of the year. As regards the origin of travellers, PwC analyzes show that the tourists who spend the most when leaving their own borders come from the USA (109.1 billion euros), China (109 billion euros) and Germany (84.9 billion euros). EUR); followed by the United Kingdom (66.4 billion euros), France (45.3 billion euros), Spain (28 billion euros) and Italy (24.9 billion euros).
According to PwC research, tourists continue to rely on travel agencies, accounting for 44% of the total global market in 2022. In terms of revenues, Cuban travel agencies 127.98 billion euros, followed by other organization and booking services (103.16 billion euros), tour operators (46.78 billion euros) and conference and tourism offices ( 13.97 billion euros). In this context, PwC estimates that the tour operator market will have the highest growth from 2022 to 2027, with an expected CAGR of +15.15%.
The reasons that drive tourists to travel in 2022 are mainly related to the exploration of different cultures, the knowledge of local history and culture, the desire to unplug, the exploration of hidden destinations, the love of nature and local cuisine. Italian tourists are among those who travel mainly driven by cultural curiosity, not only connected to historical attractions, but also in terms of experience and direct contact with local culture.
At the same time, travel trends are emerging that embrace the concepts of sustainable, digitalised travel, neverending tourism and off-peak travel and which contribute to redefining the travel experience with a growing focus on sustainability, digitalisation and flexibility, understood as the ability to combine business and leisure.
Roberta Anelli, Senior Manager Innovation at PwC Italiacomments “The analysis of traveler profiles and interests at a global level that we have conducted demonstrates the growing use of digital channels during the end-to-end travel experience: from research and booking to the management of the trip itself. Yes This is an opportunity that can interest both companies that address a digital-native target, such as Millennials and GenZ, and companies that address a very different generational target (e.g. Baby Boomers) that uses social networks and websites. web to search and book your trips”.
The travel intermediary market is also recovering in Italy, after the pandemic period. Growth is strongly accompanied by digitalisation in the sector: PwC estimates that hospitality e-commerce sites grew by 13% in 2022 (vs. 2019), going from 14.6 billion euros in revenues to 16.4 billion of Euro.
The potential of the digitalisation of travel also emerges from the analysis of the online conversations of Italian travelers who rely on tour operators, conducted by PwC thanks to the KPI6 Artificial Intelligence solution. In particular, listening to conversations on social media highlights needs that could be satisfied thanks to the implementation of digital and innovative solutions, such as digital marketplaces for outdoor experiences, digital platforms to support bookings and chatbots.
Investments in tourism startups are recovering after the pandemic period, with a share of 8.23 billion euros invested globally in 20221. In detail, five main investor categories emerge from PwC studies:
Venture Capitalist and Private Equity oriented VC raising $72 million in 2,090 rounds between 2015-2021;
Non-sector companies, raising $12.5 million in 264 rounds, between 2015-2021);
Sector companies, raising $7.8 million in 389 rounds, between 2015-2021);
Banks and public sector, raising $6.4 million in 125 rounds, between 2015-2021;
Angel investors and private individuals ($3.6 million in 138 rounds, between 2015-2021).
Venture Capitalists (VC) and Private Equity (PE) firms will account for 46% of travel startup funding in 2022, attracting between $10 and $11 million.
Investments are focused on startups that provide search and distribution capabilities, especially in the hospitality sector, which raised nearly $5.5 billion between 2020 and 2021, representing 30% of total funding in the analysis period.
Roberta Anelli, Senior Manager Innovation at PwC Italia, concludes “Looking back to the pre-pandemic period, 2015 and 2019 were record years, with investment spikes linked to significant acquisitions that consolidated the market and drove growth in the travel sector. Investors appear to favor established leaders over potential disruptors, confirming the importance of company-startup relationships for strategic growth”.