Travel industry futures report unveiled

The new kinship economy: From travel experiences to meaningful travel relationships says IHG report

To mark its 10 year anniversary as a global, standalone hospitality company, IHG commissioned the Futures Company to identify the main trends set to shape travel over the next ten years.   "The new kinship economy: From travel experiences to travel relationships" analyses consumer trends to understand their impact on the changing face of hospitality. 

The report signals an emerging new era for the hospitality industry globally – moving on from the ‘experience economy’ of the last decade.  The ‘kinship economy’ is about meaningful relationships, whether it is between guests and their circles of influence, the local community or the hotel. 

The report identifies four emerging types of traveller:

The new global explorers:  Asian travellers will account for one third of travel spending by 2020, and over the next decade new travellers will come from high-growth countries such a Columbia, Indonesia, Vietnam, Egypt, Turkey and Africa.  These travellers will elevate their social status by visiting the must-see sights, and will want to retreat to a hotel that feels ‘home away from home’. IHG has introduced HUALUXE Hotels & Resorts, the first hotel brand designed by Chinese for the Chinese.

New ‘family’ groups: Across the globe the traditional family unit is being remodelled.  In Asia, women are marrying later and putting their careers first.  Extended families are holidaying together, challenging standard hotel layouts.  In the InterContinental Samui Baan Taling Nggam Resort, it is common for a multi-generational family to rent several villas that share a pool. The growth of single person households is also driving the need for stimulating independent travel.  The hospitality industry will need to be able to simultaneously meet the needs of all new groups.

Younger ‘laptop and latte’ workers: ‘Millennial ‘ business travellers have no set location or hours and prefer creative environments where they can enjoy the company of fellow travellers whilst getting work done.  Coffeehouse style lounges may accommodate business travellers who dislike the quiet of the traditional hotel’s business centre or their rooms. 

Expansive mid-lifers – the world’s over 50s population is the fastest growing age group, and more affluent than ever before.  With healthier lifestyles and revolutions in medical research, this group does not want to be labelled as older, or buy into age-related products and services but still require relevant offers and experiences. 

A decade ago travellers relied on travel agents to plan all elements of their holidays. Now in mature markets, online bookings account for nearly half of bookings.

However the hold of travel agents and importance of human interaction is strong in emerging markets: in China only 12-15% of tickets and rooms are booked online.   The development of social networking and photo sharing has added a new stage, ‘the dreaming stage’ to the pre-trip, trip and post-trip stages of travel. 

People want more than good experiences and they want authenticity and transparency from brands.  Travellers in the future will seek organisations and venues that connect with the local area, attracting both local people and distant travellers. Local sourcing is a key point of differentiation, local also means supporting the local workforce and the broader community. In January 2013, IHG celebrated the opening of its 150th Academy in China. It creates partnerships with community organisations and education providers in local markets to offer skills development and improve and increase the employment prospects of the local population.

In the marketplace of the kinship economy, the social currency guests gain from their hotel stay is as important as the experience. This means creating experiences that people can share.

Valere Tjolle

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