One change in the external environment that could turn the whole travel and tourism business on its side is further technological advancements in remote meeting software and solutions. Currently, the ability of people to meet remotely via many of the technologies we currently use in Kelley Direct has really dampened the amount of face-to-face meetings for many corporations and organizations. Despite this fact, lots of organizations see real benefit in physical meetings rather than electronic meetings. They find that teams that are built in person over several days at an off-site location tend to develop more quickly and have stronger results. If some remote meeting technology, not yet invented, is able to bridge this face-to-face meeting gap, the entire meetings travel business could be totally eliminated. With many hotels, airlines and ancillary businesses strongly tied to the ebb and flow of business travel, this could be the death knell for many if they aren't able to stay nimble and easily adapt. Many businesses would be forced to rely more heavily on leisure travel which is often not as profitable. If a technology advancement revolutionized the industry, I would forecast many businesses and companies being unable to survive.
As mentioned in one of my previous posts, the political landscape of the US and global economy moving forward is a huge wildcard in the success of travel and tourism. As politicians begin to make tough decisions on how to balance budgets and eliminate deficits, often tourism promotion on a national, state or local level is one of the easiest things to cut. No one wants to cut the military or police or social security or unemployment benefits, but it is an easier political decision to cut promotional funding for tourism. When one nation, state or locale cuts, others fill in the gap and gain market share. The state of Colorado experienced this exact scenario in the early 90s and has now become the poster child for the importance of tourism promotion. Even though funding has since been reinstated, the state has yet to recover the market share that was lost.
Here are a couple of case studies on the Colorado aftermath.
http://www.longwoods-intl.com/case-studies/what-happens-when-you-stop-marketing/
Public Tourism Promotion ROI
It seems as though Washington has made the same choice.
http://www.marketplace.org/topics/life/tough-economy-forces-states-rethink-tourism-funding
No matter how or when the economic state of the country and world turn around, managing the political landscape will always be an important external factor for travel and tourism.
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