Top level findings from the latest Euromonitor International report have been released, and include:

  • Uncertainties battering the world economy, including the US administration, Brexit and other regional tensions across the world, will continue to affect pricing in the global hospitality industry.
  • Value growth for 2017 is expected to be strong at 4.1%, decelerating to 3.1% in 2018, as uncertainty escalates and a minor economic deceleration is expected in China.
  • By 2022, China will be the world’s largest source of outbound tourism demand, with 128 million trips, overtaking the US as the country with the highest propensity for travel abroad.
  • Growth in Chinese visitors is set to be very strong, and countries outside Asia to benefit the most are likely to be the US and France, due to their China-ready approach.
  • Chinese tourism expenditure is likely to grow by 10.9% over 2017-2022, driven predominantly by GDP per capita, and the rise in middle-class households.
  • Japan saw the strongest increase in China arrivals growth over 2013-2017, thanks to simplifying the visa process and the weak yen.
  • Companies are seeking out new sources of emerging demand and new business models like low cost or short term rentals are acting as growth catalysts.
  • UK online travel sales to residents started to plateau in 2015, and are not expected to exceed 70% of the total travel market over 2017-2022, with offline securing the remaining 30%.
  • Luxury categories are benefiting from consumers trading up from mid-market brands to luxury, but consumers are expecting high standards at all price levels.
  • The largest travel brands worldwide are Ctrip and Booking.com, with Ctrip’s sales at USD60 billion, compared to Booking.com’s USD33 billion in 2017.

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