Tuesday 25 June 2024

Ido Hertz

What will ‘Traveler 2030’ look like?

DUBAI, May 16, 2023

By Ido Hertz

As we witness the 2020’s being driven by technological advancements, the world of travel is poised for significant changes. As consumer behaviour evolves in tandem, by  the end of the decade the ‘2030 traveler’ will be a more connected, informed, and environmentally conscious individual, seeking unique experiences and customized travel options. With the rise of automation, artificial intelligence, and sustainable travel practices, our future traveller will have access to a range of new and exciting opportunities, transforming the way we explore the world.

Increased connectivity
One of the biggest changes we’ll see for travel over the next five years is the increase in connectivity. With the proliferation of 5G networks, wearable technology, and the Internet of Things, travellers are able to access information and communicate with others seamlessly, no matter where they are in the world.

Real-time translation tools are starting to break down language barriers, making it easier for travellers to communicate with locals and immerse themselves in new cultures. Wearable technology such as smartwatches and fitness trackers also allow travellers to monitor their health and wellness on the go, while tracking their travel itinerary and providing personalized recommendations. We are starting to see a monumental change where travelers will be able to stay connected with loved ones back home, share their experiences in real-time, and access digital tools that enhance their travel experience.

According to a 2021 survey conducted by Booking.com, 63% of global travelers said that being able to stay connected while traveling was "essential". The survey also found that 70% of travelers use technology to explore their destination and plan their trip, and 57% said that they prefer to book travel arrangements using an app or website. These statistics highlight the increasing importance of connectivity and technology in travel, as travelers rely on digital tools and services to stay informed, connected, and engaged while on the go.

Customisation and personalisation  
Customisation and personalisation will also be a key driver of the travel industry in the next five years. The use of AI and machine learning algorithms are enabling travel companies and insurance brokers to collect and analyse vast amounts of data on individual travellers, from their past travel history to their personal preferences and interests. This allows them to offer personalized recommendations for insurance, destinations, accommodations, and activities based on our traveler's unique profile.

Enter embedded and parametric insurance, rising through the ranks in the next five years to be a must have for the future traveler. According to Forbes, the number of travelers planning to purchase travel insurance in 2023 will outpace the previous seven-year average. Embedded insurance integrates into the purchase of a product or service, such as travel insurance that is automatically included when a traveler books a flight or hotel.

Parametric insurance, on the other hand, is a type of insurance that pays out based on predefined parameters rather than actual losses. A traveller may purchase parametric insurance that pays out a set amount if their flight is delayed by more than a certain amount of time, regardless of the reason for the delay. This type of insurance is often used to protect against specific risks or events that are outside of the traveller's control, providing a simple and straightforward way to manage risk.

The recent integration of insurance technology into every aspect of the travel experience is making it easier to plan and book trips, enhancing our traveler’s overall travel experience and making it more seamless, convenient, and personalized.

Sustainable travel practices
Sustainable travel practices are already starting to be on the mind of the younger generation, in fact 69% of travelers want to travel sustainably. The next five years we will see a significant shift towards sustainable travel practices as travelers become more environmentally conscious.

In response to this, the travel industry is already starting to adopt more sustainable practices, from the use of electric and hybrid vehicles to the implementation of renewable energy sources in hotels and resorts. Travelers are prioritizing eco-friendly accommodations and transportation options that minimise their carbon footprint, such as bike-sharing schemes and public transportation.

Sustainable tourism also focuses on supporting local communities, economies, and cultures, promoting responsible and ethical travel practices. As awareness of the impact of travel on the environment grows, the future traveler will seek out experiences that are sustainable and responsible, ensuring that their travels have a positive impact on the planet and local communities.

Changes in travel demographics
As the world becomes more connected, seamless travel becomes more of a reality.  According to Skift research, people from a wider range of age groups will have the opportunity to explore new destinations in the next few years. Baby boomers will be retiring or retired and with the rise of the digital nomad culture, the travelers will include a more diverse range of age groups, from Gen Z’s working remotely while they travel to senior citizens on a retirement cruise. This is creating a more dynamic and diverse travel industry, with different age groups seeking out unique experiences that cater to their interests and needs.

The global middle class is also continuing to grow, meaning more people from emerging economies are having the means to travel, opening up new markets for the travel industry. In the next five years travelers will be more globally aware and culturally sensitive, seeking out authentic and immersive experiences that allow them to connect with local communities and cultures.

Significant changes are happening to the travel industry today, driven by advancements in technology, changing demographics, and a growing focus on sustainability and connectivity. Travelers are seeking out experiences that cater to their unique interests and needs while also minimizing their impact on the planet. With virtual and augmented reality technology, AI and machine learning algorithms, and autonomous transportation, the travel industry is transforming the way we explore the world, making it more convenient, efficient, and seamless.

About the Author
Ido Hertz is Vice President of Products for Pattern Insurance in Tel Aviv, leading their rapid growth in the global embedded insurance market. He is shaping the company's product vision, strategy, and execution. Ido has more than 20 years of experience in the tech industry to most recently, Ido was based in Asia as the Head of International Travel Recovery Products for Agoda, where he spearheaded company-wide initiatives and addressed the changing needs of travelers during the pandemic.


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