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Growing environmental pressures are forcing rapid change in the travel industry, and a new Deloitte report offers insights into how companies can adapt or risk extinction in an increasingly environmentally conscious market.
Deloitte
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Addressing the impacts of climate change will be one of the travel industry’s greatest challenges over the next decade. Tightening environmental regulations, growing consumer and business demands for sustainability, and increased vulnerability of destinations to extreme weather events all call for greater strategic consideration of environmental impacts.
For an industry on the brink of major change, climate-related pressures are one of three major concerns leaders must address, according to a new Deloitte report, which also highlights the potential of artificial intelligence along with major shifts in traveller demographics.
Younger, tech-savvy, and socially conscious generations are set to surpass Baby Boomers in terms of spending and influence within the industry. While Baby Boomers remain a profitable demographic, they are beginning to move beyond the age of frequent travelers. As Millennials and Gen Z become major consumer groups, interest in sustainable travel is on the rise. More young travelers are seeking flights and hotels with sustainability certifications and lower emissions. They are looking for precise, actionable commitments to sustainability, not just promises, to guide their travel decisions. Compared to older generations, Gen Z and Millennials are more likely to reward brands that have earned their trust with their approach to sustainability.
Regulatory pressures are adding further complexity. Several notable pieces of legislation have been enacted or proposed to address the travel industry’s carbon footprint. Public support for these regulations is expected to grow, creating disruptions to travel companies’ day-to-day operations.
Additionally, the physical realities of climate change directly impact the viability of some travel destinations: Weather events such as heat waves and hurricanes are becoming more frequent and severe, forcing the travel industry to rethink traditional travel seasons and the prioritization of traditionally popular destinations.
As these factors conspire, travel companies are being forced to innovate and develop resilient strategies to withstand these pressures and secure a competitive advantage in an evolving marketplace.
A new report from Deloitte offers important insights into how travel companies can navigate this new reality. As the situation evolves, the ability to pivot to sustainable tourism models will determine the industry’s future success and relevance in an increasingly conscientious market.
This report from Deloitte provides a comprehensive analysis of the evolving landscape of the travel industry and offers actionable insights for industry leaders to navigate climate-related pressures to ensure long-term sustainability, customer loyalty, and competitive advantage. The report also explores how exponential technologies such as AI and demographic shifts are shaping new opportunities.
This report covers the following:
- An analysis of the environmental issues facing the travel industry.
- Insights into growing regulatory pressures and their impact on industry practices.
- We explore travellers’ changing priorities and the role of brand trust in capturing the younger travel market.
- How climate change is affecting the viability and attractiveness of travel destinations, with rising temperatures, extreme weather events and shorter seasons changing travel patterns.
- Strategies for travel brands to respond to climate change and actionable insights for adopting long-term solutions.
- Other major changes impacting the travel industry, such as technological advancements and demographic shifts.
This content is Deloitte and Skift’s branded content studio. Skift X.
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