1. Sustained, rapid change
2. Sharing economy expansion
3. Increased biometrics adoption

1. Change is the only constant

With so much happening quickly in the travel industry, an environment of relentless change is what we鈥檝e come to expect. The speed at which we are adapting to new technology, new competitors, new consumer preferences, and new ways of doing business is astounding.  

The planning horizon has shrunk. Five years ago, how many in the travel industry knew the degree to which Instagram-worthy photos and overtourism would affect travelers鈥� destination choices? Or how dramatically short-term rentals would disrupt the hotel business? What about the rise of low-cost (and ultra low-cost) airlines and unbundled services?

Looking at , it鈥檚 clear some could foresee the direction we鈥檇 be moving. But, new business models and consumer behavior have shifted focus and ramped up the speed. Twitter was expected to be the social media channel to watch (Instagram wasn鈥檛 launched until 2010), and the first OTAs were just a few years old.

What鈥檚 clear about the quickly changing travel industry is that payment service companies need to remain flexible, agile, and provide customizable solutions – payments that can be adaptable to specialized customer needs.

This culture of sustained rapid change creates an atmosphere that encourages innovation and advances, including the sharing economy expansion and increased biometrics adoption. Both of these 2020 trends have far-reaching implications and present exciting opportunities for travelers and travel companies. 

Let鈥檚 explore further.

2. Value of sharing amenities grows

A perennial disruptor in the travel industry, the sharing economy will continue to evolve. The next phase of that evolution takes accommodations to a new level 鈥� one that competes even more directly with hotels by offering services and amenities found in traditional hotels. Presenting travelers a more complete experience will include tapping into benefits like hosts鈥� unused golf or beach club memberships. 

In a survey commissioned by Airbnb last year, . In terms of vacation quality, accommodations were the top response with amenities second. Airbnb reports that accommodations rank higher than shopping/dining, location, culture, and family/friends. 

Julie Hoffman, Adobe鈥檚 head of industry strategy and marketing, travel & hospitality sees services and experiences as the , particularly those processes that now cause friction for travelers. range from baggage storage to dry-cleaning to spa treatments and even screening for last-minute childcare. 

Earlier this year, Guestsy鈥檚 COO Vered Schwarz told forbes.com, 鈥�These 鈥榥ew鈥� vacation rental guests are accustomed to hotel services and products, and thus will be demanding more hotel-like services from their rentals, from bathrobes to concierge-like communication.鈥�

For payment service companies, offering the right solutions for new accommodation players and their need to add on services/amenities to remain competitive will be imperative. Since some services/amenities they add will be outsourced, accommodation players will need simplified ways to pay all involved.

The evolution of travelers鈥� tastes and expectations for the short-term rental market was one of the topics covered during an interesting panel discussion held at the recent Phocuswright Conference. The group stressed that they must offer more choices because . Travel continues to be about experiences, and travelers need options to find their own perfect trip.

3. Faces will launch journeys

The use of biometrics in the travel industry is exploding. Two million passengers in the U.S. were scanned using facial recognition in April and that number Digital fingerprint matching, retinal scanning, and facial recognition offer benefits for travelers and travel companies alike. By authenticating travelers in this way, frictionless, seamless, more secure travel is closer to reality. 

For airports, biometrics can speed up check-in and boarding while ensuring safety and security. Over the past couple years, several airlines have introduced an opt-in subscription service provided by U.S. company Clear, which has 3.8 million members and .

Delta, Star Alliance, Jetblue, American Airlines, and British Airways have all expanded their use of biometrics this year to include more airports and services, including checking bags and accessing lounges. Delta has been  since late 2018 and has found .

Checking into a hotel that uses facial recognition means a faster experience for the guest and an easy way for the property to ensure frequent guests are acknowledged properly and their preferences accommodated. 

Two Marriott properties in China use facial recognition kiosks, which help guests avoid waiting in line for the next available staff member. They can easily gain access to their room, gym, and other facilities. Next on the horizon for hotels is a unique digital room key created using .   

In October, the World Travel & Tourism Council and the government of Aruba announced 鈥�,” allowing travelers to move through airports, car rental locations, and hotels using only facial recognition. A traveler鈥檚 identity will be provided one time and that will be sufficient to satisfy all the companies and government agencies involved. 

Biometrics has a role in secure payments too. MasterCard, which used fingerprints for the first biometric cards in 2017, is now testing systems that . Travelers can check out of their hotel, pay for meals, and confirm their participation in loyalty programs鈥攚ithout the risks of a plastic card being lost or duplicated.

Change for the better

Our industry has undergone tremendous change in the past few years. Trips are now becoming 鈥渃urated鈥� and 鈥渇rictionless.鈥� We have a sharing economy and technology that allows us to find a very specific type of accommodation anywhere, or open a door with a simple scan of our facial features. But, what remains constant is that travelers want a memorable experience and they want the process to be easy. It鈥檚 as simple as that. 

to see what members of the 糖心VlogTravel Team, myself included, think about these very significant 2020 Travel Trends.

If your company is looking to get a head start on 2020 by streamlining your travel payments process, email WEXCorporatePayments@wexinc.com, or learn more about our Corporate Travel Card by clicking here.

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A Highly Resilient Sector

Both global tourism and business travel are growing in spite of economic, political, and other speedbumps impacting both departures and arrivals.

David Scowsill, President & CEO, WTTC, said: 鈥淭ravel & Tourism is a tremendously resilient sector. Despite a number of terrible regional incidents throughout the year, the sector will still grow 1% faster than global GDP in 2015.鈥�

China a Leader, Other Markets to Follow

Even in the face of economic struggles, China is set to pull away as the global leader over the next five years. According to GBTA, China business travel will increase by 61 percent over the next 5 years, from $261 billion in 2014 to $420 billion in 2019. That increase is greater than the increases in business travel growth in the next 8 largest countries combined, including the U.S., Germany, India, U.K., Indonesia, France, Turkey and Japan.

In the entire travel market, China (7.7% growth) is outpaced only by India (8.1%) and Saudi Arabia (7.9%) in 2015, according to the WTTC mid-year report.

With investments from established brands and startups vying for position in China, the country鈥檚 travel market鈥攂oth outgoing and incoming鈥攊s something to watch in the next decade.

Among other markets to watch,

• India: A candidate for breakout growth, India鈥檚 developing middle class and massive population positions the country for 8.1% growth, 11.5% growth in business travel, expected to reach $45 billion in business travel in 2019
• Indonesia: 5.6% overall travel growth, listed as a country to watch in the GBTA report
• Malaysia: Joining Indonesia and much of the South Pacific, Malaysia is expected to become a top business travel player as well as a top travel and tourism market.
• Turkey: Overcoming political and geographic hurdles, Turkey lands among the GBTA top 5 for business travel, as well as seeing 3.0% travel and tourism growth overall.
• Poland: As growth stagnates in both established Western European countries and declines in Russia, Poland is forecast as a growth country, especially in business travel.
• Mexico: While much of Latin America looks bleak, Mexico is on the rise, both in terms of business travel and overall travel and tourism. Listed as a travel market of the future by GBTA, Mexican travel is growing at 5.8% overall, according to WTTC.

Travel and Tourism Investment Leading Monetary Impact

On the horizon, investment in travel and tourism is expected to grow at a 4.6% clip, outpacing visitor exports and domestic spending. The strong forecast investment growth is in line with an expected acceleration in economywide investment and is a reflection of the modest strengthening of the global economy and consequent enhanced confidence from investors, alongside the availability of capital due to low interest rates and large corporate cash stockpiles.

2025: Travel and Tourism to Make Up 10% of Economy and Employment

As highlighted in the WTTC Report, Travel and Tourism is expected to grow 3.7% each year, expected to reach US$11.7 trillion by 2025, supporting 355 million jobs and accounting for 10.5% of the global economy:

鈥淥ver the ten-year period to 2025, the recent and short-term strong growth of the Travel & Tourism sector is expected to continue, with forecast average annual Travel & Tourism GDP growth of 3.7%. As such, we expect that the growth of the sector will continue to outpace that of the wider economy. By 2025 it is anticipated that Travel & Tourism will contribute US$11.3 trillion in GDP to the world economy (2014 prices and exchange rates) and will support 355 million jobs globally, which is expected to translate to approximately 10.5% of the world economy in terms of both GDP and employment.鈥�

Please read the for more information.

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