It’s not just tech that can disrupt a sector, but also changing behaviours and demographics that also drive strategic changes. Visa’s international travel insights report shows how the travel sector could change as the preferences and behaviours of older travellers’ impact travel and tourism over the next decade.
What the report found is that the combination of an aging population, increased connectivity, and a rising global middle class is going to significantly increase the number of households – 282 million by 2025, a 35 per cent increase from 2015 – that will plan to travel internationally.
The aging population is changing the travel landscape in a very different way. By 2025, travellers aged 65+ will more than double their international travel to an estimated 180 million trips, accounting for one-in-eight international trips globally. While travellers in this age bracket take fewer trips, they tend to take longer trips and spend more while abroad.
Increased connectivity will also have a real impact by changing the way people travel as well as making it much more affordable. With 340 new airports expected to be built over the next decade and new technologies increasing Internet connectivity, how people travel will change dramatically.
Among those households most likely to travel internationally, Visa’s study estimates that spending will reach an average of $5,300 per household, per year, by 2025.