Despite the possibility that society is slowly returning to normal, remote work is here to stay, proving to be more and more popular for many companies. With the advent of remote work, comes the possibility of enjoying a vacation whilst working simultaneously, hence, “workation” was born. An amalgamation of “work” and “vacation” that somehow works for some people, blurring the line between fun and professionality a lot further than any other work style.  

While not exactly a novel concept, this practice is becoming more and more popular around the world, as COVID-19 brought forth the possibility of remote working.  The main idea that entices people towards this innovative work concept is that you get to take a break somewhere far away from your workplace, but you can continue to work as you wish, with all the mental benefits that a vacation might bring. 

In 2020, Booking.com surveyed a total of 20,000 travelers in 28 countries around the world on whether they have considered booking a vacation spot where they could stay to do a “workation”. The result was that 37% of these travelers have considered it, proving the popularity of this new form of workstyle. 

Despite the level of convenience, it also means that the line between work and personal life becomes blurred. This is more of a personal problem that can be acceptable or unacceptable depending on the person. However, workation opens up a slew of possibilities for many people, giving them the chance to design their own life. 

Many countries now have packages, offers, and policies that cater towards workation workers. For example, Dubai has a remote visa program that allows workers from all over the world to come to UAE and enjoy an exceptional remote-working experience, which has attracted over 16.000 workers in the span of two months, from December 2020 to January 2021. 

Types of workation

Currently, three main types of workation differ by their lengths, from short-term (a few days), medium-term (a few weeks) to long-term (a few months or more), which is what many people are talking about the most. 

But not just that, the workation market also has two main types of customers, one is the customers who first came to a destination for business purposes such as conference, meeting or sales trip, but decided to extend it into a vacation or incorporate vacation into their work-life. The second type is now becoming increasingly popular, and is the main market for this kind of travel style – digital nomads, people who utilize the company’s work-from-home policy to live a nomadic lifestyle and work from anywhere. This particular market has grown exponentially in recent years due to remote work becoming more and more popular. And because digital nomads often have very high spending power, many hotels are now working on ways to benefit from this new market.

What are workationers interested in?

One important thing to note is that even though workation in a foreign country is possible, a large part of the markets is domestic travel, due to the needs for business travels as well as all of the hassles that may come with acquiring a work visa. As such, hotels should be concentrating on the domestic market if they want to expand themselves to workationers. 

Amenities that can support workationers with their work are a priority that all hotels should consider. Things like spacious work desks, ergonomic chairs, and high-speed wifi are some of the basics of a workation-friendly hotel. Because workationers aim to feel rested and refreshed for work, high-quality beddings and a large supply of complimentary tea or coffee can also win over the heart of these customers.

Recently, some hotels around the world have also started to integrate co-working spaces for people who can only focus on others’ presence, as well as giving digital nomads the chance to meet others like them for networking purposes. An example of this is Hotel Schani Wien in Austria, which offers individual workstations as well as shared workspaces.

Because a large part of this customer base comes from the tech industry, more so than any other business like healthcare, sales, education,… digital nomads are very tech-savvy and are often highly appreciative of hotels that utilize smart technologies in their services and amenities like remote guest registrations, online check-ins, and smart appliances that can be controlled by a flick of the phone. Smart appliances also allow guests to personalize their lodging experience, couple this with a frequent-visitors program, and digital nomads will be more inclined to either stay longer or come back for another workation the next time they’re in the area. 

In a study conducted by Expedia, when digital nomads are asked about what they enjoyed the most when they were on a workation, most of them prefer things like food and restaurants, beaches, natural sightseeing locations, weather, sightseeing, culture, and outdoor recreation. As such, hotels should also highlight nearby tourist attractions in their marketing strategy, and not just focus on the “work” aspect of workation. Another method is to introduce local activities, either as a part of the workation packages or as add-ons that can be reserved during the booking process.

Workation in Vietnam

Currently, many young Vietnamese has started to try out workation as a form of relaxation, and the trend has started to catch on to a lot of people. However, because Vietnam’s internet speed is still very slow in many areas, even in highly developed cities like Ho Chi Minh, Ha Noi, and Da Nang, workation as a trend is still very small.

On the other hand, for international workationers, Vietnam is one of the more popular places in Asia for digital nomads, with popular spots being Ho Chi Minh, Hanoi, Da Nang, and Hoi An. Best known for their rich coffee culture, all of these cities have a lot of coffee shops and coworking spaces, as well as a low cost of living for many foreigners, which has proven to be very popular for digital nomadism. Despite this level of popularity, there is still no special visa program for people who are interested in workation in Vietnam, so digital nomads can apply for a visa the traditional way, which can allow for a 14, 30, or 90-day stay depending on the nationalities. 

Source: Destination Review

The soaring hills with majestic and mysterious beauty have long been an attraction for tourists, especially those who love nature, love to explore, adventure, and learn about the mountain community. Mountain tourism is one of the potential types of tourism thanks to meeting the new needs of tourists post-pandemic.

According to UNWTO, mountain tourism is activities in mountainous areas with distinctive attributes of landscape, topography, climate, biodiversity and local communities.

Like many other types of tourism, mountain tourism can contribute to the growth of local socio-economics. Because mountainous areas are often in remote places, mountain tourism activities are related to nature, rural tourism, community-based tourism, and add value to local products, create jobs and improve people’s lives.

Besides, with topographical and natural attributes, mountain tourism can bring tourists a variety of experiences and activities, especially adventure experiences and sports activities that few places can, such as cycling, trekking, zip-lining, climbing, caving, skiing, kayaking,… or exploration activities such as experiencing mountain scenery, flora and fauna, local cultural heritage.

In many destinations, mountain tourism is closely linked with rural tourism, or community-based tourism, because local communities in these areas often have unique cultures, customs and traditions. This will be a feature that attracts tourists who love to learn about culture, heritage and tradition by visiting craft villages, heritage sites, and discovering local cuisine.

Given these characteristics, the mountain tourism experience is more sustainable and often attractive to the adventurous rather than mass tourists. Especially, after the pandemic, mountainous tourism is considered as one of the potential types of tourism because it meets many new needs of tourists.

Although most people are now fully vaccinated against Covid-19, the risk of infection remains. Therefore, mountain tourism may be safer than other types of tourism for many tourists because it’s outdoor and not crowded, therefore reducing the risk of disease transmission.

As a type of tourism based on nature, mountain tourism offers tourists the experience of living with nature more than other places. It is also the environment that many tourists seek to balance their life and emotions after a stressful pandemic. Moreover, the mountain is also a favorable condition for tourists who care about wellbeing and related interests. In addition to fitness activities such as mountain biking, trekking that tourists can independently experience. There are also many wellness destinations located in mountainous areas, offering travelers spas and wellness treatment with natural therapies.

Capture and develop mountain tourism after the pandemic

In the context that sustainable development and climate change are two of the current issues, mountain tourism development post-pandemic needs to pay attention to them to minimize negative impacts on the environment and society.

Due to the unique natural characteristics of each region, mountain tourism is often seasonal because travelers want to participate in specific experiences such as skiing, visiting seasonal flora, or simply having favorable weather for the mountainous activities. Therefore, in order to avoid crowding during the tourist season, destinations can consider diversifying tourism products throughout the year so that tourists have a variety of options and travel at any time. For example, some mountainous destinations in Europe and North America are often very crowded in the winter because tourists want to participate in winter sports activities. Due to the effects of climate change, the snow season in many places is shorter and the snow is thinner, affecting the tourist experience. Some destinations have changed, attracting travelers to visit in other seasons of the year, by offering new experiences such as cycling, horseback riding, or cultural experiences.

Investing in “green practices” is also one of the ways that mountain destinations can consider developing more sustainable products post-pandemic, such as using local products instead of plastic, using energy more efficiently, encouraging tourists to use low-carbon forms of transportation by incentives, etc.

One of the advantages that only mountainous destinations have is the green space. Destinations that can take advantage of this to design a comprehensive green experience journey for travelers will have the advantage to attract responsible tourists.

Recently, Ha Giang province also has a plan to develop sustainable tourism in Tan Lap commune with the goal of building Tan Lap tourist area in the direction of green tourism. This plan will focus on preserving cultural heritage, developing community-based tourism products, and solving environmental problems well.

Source: Destination Review

Business travel is about tourists traveling for work and business purposes. During the pandemic, business travelers had to change from in-person meetings to online meetings and seminars via digital technology applications. Currently, in the new normal, business travelers can go back to travel, but there are also some new and notable trends in business travel that are forecasted to appear.

In terms of human management

Flexible in sending employees on business trips

Many companies are reviewing the value of sending employees on business trips. Employees value business travel because besides finishing work, they also easily build relationships with partners, colleagues or customers in other localities, simultaneously can combine traveling and visiting new destinations. Nevertheless, post-pandemic, with the convenience of technology applications, plans on business trips need to be considered and adjusted accordingly, balancing in-person and online meetings.

Adjust working policy

In this era, it is very important to limit presence in crowded places or common areas. The possibility of infection is higher when we work in a large building and contact with many people we do not know. Gone are the times of rigid employment policies for office-based workers. New worker expectations demand businesses to innovate their policy.

The transition to remote activities is rapidly changing the way people work and travel. Companies should adjust policies to the needs of their employees, allowing them to work flexibly anywhere, or adopt a hybrid work model, which means working both at home and at the office on certain days.

Of course, they can still get work done while enjoying a trip far away. Grasping this trend, many destinations are also offering attractive programs for “workation” tourists such as Dubai, Thailand, Spain, etc.

People risk management

An increase in remote and hybrid working demands companies extend their duty of care to employees whenever they are away from the office, and not just when they’re on a business trip. Forward-thinking companies are moving towards people risk management instead of travel risk management. After all, people are still the core force to the survival of a business.

The risks travel managers and travelers can mention such as extreme weather events, terrorism, economic risks and cybersecurity. That’s why companies must evaluate their travel risk management program to ensure their employees’ safety and security on the business trip.

In terms of cybersecurity and technology

Cybersecurity

Today, under the strong impact of the pandemic, online activities are happening more and more often. At the same time, cyber threats, as well as their potential impact, continue to grow. Many travel managers already recognize the importance of cybersecurity. They need to protect their company and travelers from cyberthreats. Business travelers should receive training in cybersecurity and follow the right precautions when traveling on business to avoid data risk to their company.

Fintech (Financial technology)

BCD Group’s travel buyer survey revealed payment and expense to be among some of the biggest pain points when managing business travel end-to-end. Adopting fintech-based solutions can help simplify, digitize and automate corporate travel payment, reconciliation and invoice management.

Fintech is the application of technology to the financial sector to help consumers easily access services. Travelers, companies, travel managers and finance teams can all enjoy the benefits from this solution.

In terms of the environment

The environment is one of the top concerns, not only in business tourism but also in all other sectors in the world. The 2021 COP26 UN Climate Change Conference put climate change and sustainability firmly in the global spotlight. More and more countries and non-governmental organizations, such as IATA (International Air Transport Association), are making commitments toward a net-zero carbon future.

Companies are engaging with sustainability, while travel managers are finding ways to reduce their program’s carbon footprint. Some calculation methodology can help companies accurately report on business travel emissions across air, hotel, car and rail. Thereby, they can adjust the balance towards the goal of zero carbon in the environment.

In short, human resources are the soul of a company, so companies need to come up with appropriate policies, especially when things have changed a lot after the epidemic. In the new era, employees need health safety assurance as well as flexibility in traveling and workplace. Next, the data of each company is very important and needs to be secured, so cybersecurity must also be a top priority. Therefore, business travelers should be trained in cybersecurity and apply financial technology to simplify business expense payment procedures. Finally, the environment is a common problem in all industries and fields. Not only business travel, the tourism industry and the whole world are moving towards sustainability and net-zero carbon emissions.

Source: Destination Review

With 2021 ending, many are wondering what to expect of the New Year as the Omicron variant breaks news headlines around the world. The team of analysts at ForwardKeys, step back to examine some of the key learnings as they review 2021 from the perspective of a travel professional and highlight the top trends.

1. US Leisure travel drives recovery

A comparison of the world’s top destination cities, before the pandemic in 2019, and throughout 2021, illustrates the strong trend towards leisure travel leading to the recovery. Several major cities have been pushed down or out of the top 20 rankings, whereas major leisure destinations, particularly for US holidaymakers, have climbed high.

While Dubai remains at the top of the list (it is a major leisure destination as well as a substantial travel and commerce hub), the most notable rises include, Miami, from 18th to 5th, Madrid from 16th to 10th and new into the list. The two highest risers, Cancun, and Miami are both major leisure destinations popular with US holidaymakers. Most of the new entrants lower down the list are also leading leisure destinations, popular with European holidaymakers.

2. Mexico, Central America, the Caribbean, and Africa are the most resilient

A review of worldwide travel in 2021, broken down by region, reveals the extent to which international travel was paralysed. Overall, international air travel was just over a quarter (26%) of its pre-pandemic level. The Asia Pacific region reached just 8%; whereas Europe achieved 30%, Africa & the Middle East 36% and the Americas 40%.

A comparison of travel between the first and second halves of the year (H1 and H2) shows that global international travel more than doubled from 16% of pre-pandemic levels to 36%. However, the recovery was extremely uneven.

Within the regions, some countries were much more resilient to the impact of COVID-19 on travel than others. The stand-out destinations which best maintained their visitor numbers were Central America, particularly El Salvador and Belize, and the Caribbean – all holiday hotspots for US tourists. Many of them managed to record visitation rates above 60% of 2019 levels throughout the year. The same degree of travel resilience was true of around two dozen countries in Africa. However, their level of resilience is a little less noteworthy because many of them have economies that are much less dependent on tourism.

3. The Middle East starts to revive

Travel to various Middle East destinations and also exceeded the 60% benchmark in H2. Most notably, travel to Turkey climbed from 33% in H1 to 67% in H2 of pre-pandemic levels and travel to Egypt grew from 37% to 72%. Dubai held its position as the top city destination, and Doha overtook Dubai as an air transit hub.

4. Domestic travel has been dominant, particularly in large-sized countries

While many countries have been able to impose severe restrictions on international travel, citing the need to keep their populations safe, imposing equally stiff constraints on one’s populations is politically more challenging. Consequently, there has been a relative rise in domestic travel, particularly in geographically large countries such as Brazil, China, Russia, and the USA, where it is possible to fly for a few hours without crossing the border.

In China, domestic travel volumes returned to pre-pandemic levels as early as September 2020; however, they fell back in January and again in August, owing to a resurgence in cases of COVID19. In Brazil, Russia, the US and China, domestic travel rose respectively to 148%, 128%, 87% and 76% of pre-pandemic levels in the second half of 2021, compared to 50%, 28%, 39% and 1% for international travel.

5. Major European airlines struggle disproportionately

Largely due to the trend towards domestic travel in large countries, airlines in those markets have managed to weather the COVID-19 storm better than carriers whose business has been more oriented towards short-haul international travel. This is illustrated by an analysis of the top 20 airlines in 2021 compared to 2019. The major European carriers have all fallen or are out of the ranking; and they have been replaced by airlines that have substantial business in China and the US, which have been better able to maintain capacity.

For example, Ryanair and EasyJet, the two largest European carriers, have fallen from 5th and 8th position respectively, to 7th and 16th. Lufthansa, British Airways and Air France, Europe’s largest legacy carriers, have fallen out of the top 20 list, as have Emirates and Air Canada. They have been replaced by Shenzhen, JetBlue, Spirit, Hainan, and Xiamen.

6. The decline in long-haul travel

A comparison of international travel within the major world regions, intra-regional travel, and between world regions, extra-regional (or long-haul) travel, reveals that there has been a shift away from long-haul travel during the pandemic. In 2019 the ratio of intra-regional to extra-regional travel was 56%:44%; but in 2021, that had changed to 62%:38%. The pattern has also changed, with a greater proportion of people within Europe and the Americas travelling intra-regionally rather than the long haul.

The trend can be explained by a combination of several factors, including the effective closure of one region of the world, Asia Pacific, the increased cost, and difficulty of travelling long haul during the pandemic and frequently changing pandemic travel regulations, which deter people from booking long-haul travel, as it is typically booked and planned with much longer lead times.

7. Doha and Amsterdam advance in the battle of the hubs

In the battle of the hubs, Doha overtook Dubai to become the preeminent hub airport in the Middle East, connecting air traffic between South Asia, the Middle East, North America, and Sub-Saharan Africa. In Europe, Amsterdam closed the gap on Frankfurt for intra-European transits and connections with North America.

Pre-pandemic, the top ten list of global hub airports was headed by Dubai with a 7.7% market share of intercontinental flight connections. It was followed by Frankfurt, Amsterdam, Doha, Istanbul, Paris, Hong Kong, Munich, London, and Abu Dhabi. In 2021, it was headed by Amsterdam, with an 8.3% share of intercontinental flight connections. Analysis of monthly traffic in 2021 shows that Amsterdam briefly overtook Frankfurt in September and October, but it fell back in November. In the same month, Dubai recovered its lead over Doha for the first time since February.

8. New variants pose a potent threat

A chart plotting the recovery in air travel shows relatively steady growth from the first quarter of 2021 when traffic was less than 20% of 2019 levels to the fourth quarter when it had climbed to over 50%. However, there were two setbacks: the first began during the week of 12 March, when the growth in weekly bookings turned from +11% to -10%, as the Delta variant began to sweep around the world. The second began in the last week of October when weekly bookings reached their highest point, 64% of the same week in 2019. Bookings have been slowing down ever since; and in late November, they were down to 54% of 2019 levels, which was closely correlated with a fresh rise in COVID-19 cases since late October.

Source: ForwardKeys