Low Cost Evolution in Travel and Tourism – Strategic Intelligence

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

Low cost evolution has changed the way travelers book trips and the business model poses a threat to many different operators. GlobalData forecasts that online travel sales will reach $4.34 trillion by 2028.

Scope

This report analyzes the key theme of low cost evolution in the travel and tourism sector.

This report provides an insight into key trends, challenges, and recommendations, as well as providing concrete case studies to help the reader see examples of low cost evolution in action.

Key Highlights

Travel, especially international travel, was once confined to the wealthy. But as airfares have decreased and hotels have become more affordable, travel companies have been able to target a wider range of customers. The industry now encompasses every type of traveler, and the rise in the popularity of low-cost operators is likely to continue. As financial constraints continue to be present, consumers will increasingly look for ways to reduce their spend and low-cost evolution has opened up travel to the masses. When comparing GlobalData’s Q3 2022 Consumer Survey to its Q3 2023 Consumer Survey, the level of ‘extreme concern’ from global respondents over their personal finances only changed by one percentage point, from 30% to 31%. This minor change shows that a substantial segment of the global traveler market will continue to look for low-cost options as international travel continues to become more accessible in 2023.

Travel apps have been heavily adopted by tourism-related companies operating in the low-cost market. Low-cost companies that are not developing and investing in app technology stand to become laggards within their respective sectors. Apps shape travelers’ spending habits by sending push notifications regarding last-minute deals while allowing for personalization. Advancements in technology have seen a rise in the popularity of the sharing economy. The sector has changed the way travelers book trips and the business model poses a threat to many different operators. Airbnb and Uber have revolutionized the interaction between buyers and sellers and the asset-light business models these firms have adopted have resulted in low prices being offered to the market. Internally, apps reduce overheads by instantly solving customer queries with ‘frequently asked questions’ sections and allowing companies to create competitive advantages by displaying innovation through their app development, such as by incorporating advanced technologies like AI.

Low-cost evolution first happened within the aviation sector and has now occurred across the majority of the travel and tourism sector. There is a magnitude of different ways firms can make cuts to become low-cost. Car hire firms have removed navigation devices from vehicles and offer economy option cars. Hotels have diversified to offer basic hotel rooms offering the bare necessities in a smaller room with fewer amenities.

Reasons to Buy

Understand the impact of low cost evolution on the tourism industry, using case studies to help you understand how you can adapt and understand this theme.

Assess the strategies that companies are adopting to succeed in the low cost evolution space.

Discover companies that are leading in the space.

Analyze real-world trends created by integrating low cost evolution across the travel & tourism sector.

GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.

Accor
Airbnb
Best Western
BlaBlaCar
Booking.com
Carnival Corporation
CitizenM
CityMax Hotels
Couchsurfing
EasyHotel
easyJet
Expedia
Fareportal
Flixbus
IHG Hotels & Resorts
Jetcost
Kiwi.com
Lyft
Motel 6
OYO Rooms
Redbus
Ryanair
Safair
Southwest Airlines
Spirit Airlines
The Motel One Group
Trip.com
TUI Group
Uber
Volotea
Wizz Air
Wyndham Hotel & Resorts

Table of Contents

Executive Summary

Players

Thematic Briefing

Trends

Technology trends

Macroeconomic trends

Regulatory trends

Industry trends

Industry Analysis

Market size and growth forecasts

Impacts

Challenges

Recommendations

Case Studies

Timeline

Signals

M&A trends

Company filing trends

Value Chain

Lodging suppliers

Transportation suppliers

Intermediaries suppliers

Companies

Public companies

Private companies

Sector Scorecards

Airlines sector scorecard

Glossary

Further Reading

Our Thematic Research Methodology

Low Cost Evolution in Travel and Tourism – Strategic Intelligence thematic reports
Currency USD
$995

Can be used by individual purchaser only

$1,995

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying Download FREE Resources

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Sample Report

Low Cost Evolution in Travel and Tourism – Strategic Intelligence was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at Low Cost Evolution in Travel and Tourism – Strategic Intelligence in real time.

  • Access a live Low Cost Evolution in Travel and Tourism – Strategic Intelligence dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.