New Brands in Tourism: Rising Demand for Local Destinations

Intro

The travel industry, which a year ago was valued at $9 trillion or 10% of global GDP, has been severely impacted by the crisis. According to recent estimates, the decline in 2020 will be between 60% and 80% if the recovery continues until December. As a result, up to 120 million jobs could be at risk. The decline in tourism revenue has prompted some countries to reassess their priorities. Many companies have been forced to reconsider their brand positioning and undergo rebranding.

For example, Thailand has decided to move away from the mass market and focus on premium segments. In the 2020-2021 season, preference will be given to tourists staying in 4- and 5-star hotels. This shift is attributed to the environmental improvements seen during quarantine, which led to wildlife returning to Thai beaches and highlighted the negative impact of budget tourism on the environment.

Brand Strategy in the Era of Crisis

Airbnb founder Brian Chesky, whose platform faced the crisis alongside other travel services, noted that the pandemic has permanently altered the tourism industry. He believes that people will increasingly choose lesser-known destinations closer to home that don’t require international flights, rather than major tourist centers. He predicts that domestic tourism will recover the fastest; in fact, in July, many countries already saw an increase in bookings at local resorts. Airbnb has updated its brand strategy, now focusing more on the experiences customers can gain rather than promoting well-known destinations.

While this may offer limited benefits in the short term, countries that seize the opportunity to develop their offerings can create a multiplier effect for their economies, particularly in sectors related to tourism, such as IT, music, and theater.

At Electric Brand Consultants, we develop brands and create websites for hotels, ticket aggregators, and other companies in the hospitality industry.