Targeting High-Value Traveller Segments for Sustainable Growth Opportunities

September 2024

Travel is entering a new growth era defined by value, based on high-quality products, high-spending traveller segments and personalised offers thanks to Generative AI. Identifying high-value traveller segments enables brands to tap into travellers’ passions and interests, which consumers are willing to trade up for. Understanding traveller segments’ attitudes and behaviours is key to creating sustainable success and delivering benefits to destinations and communities.

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Delivery

This report comes in PPT.

Key findings

Premiumise through traveller segments

Over-tourism is back with a vengeance in some of the world’s most popular destinations. Targeting passions-driven traveller segments helps to deliver higher value, high-quality tourism which delivers better outcomes with less negative impact for communities and destinations.

Shared values for value creation

Destinations and travel brands that align better with different traveller segments and their respective goals, values and priorities will enjoy higher levels of spending. Passions- and interests-based travellers beyond the mass market are more engaged, will travel for longer, travel off season and be more immersed in the local community.

Up close and personal with Gen AI

Gen AI can deliver greater levels of personalisation, with improved matching of products and services with traveller segments’ aspirations and expectations, helping to drive higher value and tailored experiences that traveller segments will pay more for. Gen AI may help in the cause to decommoditise travel to elevate local, authentic and enriching travel experiences.

Leisure Seeker 2.0

The Leisure Seeker of old is a dying breed. Relaxation and value for money are important, but increasingly Leisure Seekers want to enjoy unique and personalised offers, such as they do in the rest of their lives, from banking or e-commerce to social media. It is time to break with the stereotypes of old, demystify what travellers really want, how and where they can enjoy this.

Paradigm shift

Traveller segments hold the key to delivering the value paradigm shift required to ensure cost-benefits are in check, delivering net positive impacts across the entire travel ecosystem. Failure to diversify away from the mass market will lead to a more uphill struggle to transform. Co-creating with traveller segments directly with communities will deliver sustainable results. 

Why read this report?
Key findings
Big opportunities to create sustainable value for travellers, brands, communities and places
Sizing the prize: International tourism far outperforms domestic in value creation
Passions- and interests-inspired travel helps shift from commodity to quality
Travel and tourism demand on the verge of breaking point in top destinations
Europe at the forefront of over-tourism – over-reliance on sun and sea package holidays
Spain: Over-tourism backlash as communities rally against negative impacts of mass tourism
Regulation to get the industry back on track to a sustainable pathway is not a panacea
Infrastructural challenges require faster shift to low-impact strategies
Key takeaways on travel transformation to avoid breaching tipping points
Combat pricing pressures through diversification to higher value traveller segments
Where brand and consumer values align, greater value creation can be achieved
Look beyond peak season to shoulder and off-season for quality-driven visitation
Sustainable features and attributes to be showcased and supported by claims
SIRO Hotels: Mixing business and integrated wellness for delivering holistic lifestyle benefits
Focus on truly local and immersive travel experiences with multiplier effects
Key takeaways on the need to diversify to target high value traveller segments
Think you know the mass market Leisure Seeker, think again
Take another look at Gen Z traveller segmentation for bucking the trend
Domestic leisure travel refresh – enduring appeal worth paying more for, closer to home
Ask Layla: Taking traveller personalisation to a new level with Gen AI
Key takeaways to demystify traveller segments to identify opportunities
Recommendations/opportunities for growth
New value growth paradigm requires a holistic approach
Evolution of traveller segmentation
Questions we are asking
Traveller segmentation definitions
Euromonitor’s research spans 210 countries and 99.9% of the world’s consumers

Travel

Travel encompasses several categories including tourism flows, lodging, travel modes, in-destination spending and booking.

See All of Our Definitions
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