Travel spending will generate a record 10% of gross domestic product (GDP) this year.
That’s according to a report Monday (Sept. 3) by Reuters, citing data from World Travel and Tourism Council (WTTC), a non-profit membership group.
The WTTC estimates show the travel industry contributing $11.1 trillion to the worldwide GDP for 2024, up 12.1% last year, and 7.5% higher than the record set in 2019.
“Despite some concerns last year about us going into a global recession and high inflation, this year we are looking at travel and tourism being a real economic powerhouse globally,” said Julia Simpson, the council’s CEO.
According to the report, most of this spending will come from the U.S., China and Germany, with the travel sector supporting almost 348 million jobs, or 13.6 million jobs more than in 2019.
The sector is still hiring, the report adds, with 1 million hospitality and leisure jobs open in the U.S., according to the U.S. Travel Association. Some 27 million people worked in the sector in the U.S. last year, the WTTC said.
As PYMNTS wrote last month, the record spending in the sector has made staffing for travel companies a greater priority than ever before.
“Outdated payment systems, however, have long posed significant challenges for travel and hospitality businesses, leading to slow payouts, delayed disbursements and reduced employee satisfaction and retention due to workers’ inability to access digital tips promptly,” that report said. “A recent survey revealed that 66% of travel firms believe their current payment systems negatively impact their profit margins, primarily because of difficulties in retaining top talent.”
The use of digital instant payment systems could greatly help offset these issues. For example, nearly 80% of workers said they would choose to receive instant tip payouts if available, yet their employers don’t provide them with this option. This gap represents a considerable opportunity for travel and hospitality companies.
More recently, PYMNTS examined the “gradual pace of digital adoption in the travel sector,” noting that it offers a mix of challenges and opportunities. The industry needs to persuade a large portion of consumers to switch to online tools, but it also stands to benefit from a growing market of tech-savvy travelers.
“By developing intuitive platforms, offering tailored recommendations and ensuring smooth booking processes, travel companies can expedite their digital transformation and meet the demands of today’s travelers,” PYMNTS wrote. “Still, incorporating advanced technologies such as artificial intelligence and virtual reality could further refine the digital travel experience and attract new clientele.”
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