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ITB Berlin, in collaboration with Ostfalia Hochschule, has introduced the Travel & Tourism Radar, a pioneering initiative designed to evaluate the current and future business landscape of the travel industry. This extensive survey reveals that external factors, more than economic ones, are pivotal in driving digitalization and sustainability initiatives among global travel companies.
Optimistic Economic Outlook and Consistent Digitalization Investments
Surveying around 330 travel companies worldwide, the Travel & Tourism Radar highlights a positive economic outlook. Respondents reported a better business climate in the second quarter of the year compared to the previous three months, with expectations of continued improvement in the upcoming quarter. The survey underscores stable investment plans, especially in the realm of digitalization.
Primary Investment Focus Areas
A significant portion of investment is directed toward enhancing online presence and digital marketing, accounting for approximately 44% of the responses. Training programs were the next most cited investment area at nearly 29%, followed by collaboration and stakeholder engagement at just over 28%. Investments in IT/software and customer relationship management also received notable mentions, whereas new infrastructure and digital hardware purchases were less prioritized.
Competitive Dynamics and the Role of Digitalization
In terms of competitive factors, most companies pointed to intra-market and intra-country competition. They perceived digitalization as having a neutral impact on their competitiveness. Additionally, companies expressed confidence in their achievements regarding equality and diversity goals.
Impact of External Factors on the Industry
The survey highlights the political and economic environment, including inflation, as the most influential external factor, cited by about 62% of respondents. Digital marketing and product development followed at 54%, while AI and digitalization were mentioned by 51%. Sustainability and climate change were also frequently cited.
Legislation and Ethical Standards as Sustainability Drivers
The Travel & Tourism Radar reveals that companies view sustainability across environmental, economic, and social domains as equally vital. Their sustainability initiatives are mainly driven by legislative mandates and ethical HR standards. Over half of the companies consider protecting nature and the environment as crucial, while around one-third focus on customer satisfaction in their sustainability efforts. Only 15% integrate sustainability with business success or see it as a business opportunity.
Regional Partnerships and Decision-Making Influences
Approximately 40% of the companies identified regional partnerships as an area needing enhancement. Generally, legislative requirements and customer expectations significantly influence decision-making, more so than internal motivations. Digitalization is seen as the most critical area for improvement, driven largely by necessity.
In summary, ITB Berlin’s Travel & Tourism Radar offers crucial insights into the current and future state of the travel industry. The findings highlight the dominant role of external factors in shaping digitalization and sustainability efforts, with companies striving to comply with legislative requirements and meet customer expectations.
“During Covid, debate in our industry often focused on the long-term need to become crisis-proof“, says Deborah Rothe, Director of ITB Berlin. The present study shows that sustainability efforts are often driven more by necessity than by economic motivation – for us, a signal to address and explore this theme in the upcoming edition of ITB Berlin.”
All the results of the first ITB Travel & Tourism Radar and information on the methods used can be downloaded online. Part two of the survey is planned for mid-October. In it, ITB Berlin and Ostfalia Hochschule für angewandte Wissenschaften will focus more on digitalisation. “We want to take a look at the specific needs of the travel industry in order to customise the convention programme”, says Prof. Dr. Heinz-Dieter Quack, who heads the survey. A third online poll among industry actors will follow around the turn of the year.
The findings of all three surveys will be incorporated into planning the programme of the ITB Berlin Convention 2025, which will take place from 4 to 6 March parallel with ITB Berlin. The aim is to examine how the industry can in future view digitalisation and sustainability efforts as being more than a requirement dictated by legislation and customer needs.
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