How to stay one step ahead of overtourism
3 risks and 3 opportunities that travel operators, hotels and DMCs can act on right now.
Crowds are reshaping the economics of travel. In our previous article, we explored how as the visitor experience worsens, demand for off the beaten path is hitting record highs. This article explores what that means practically for your travel business, and what you can do about it.
With an increasing number of destinations under strain, visitor satisfaction on decline, travellers are beginning to look for alternatives.
Here are the 3 risks and 3 opportunities that I think operators, hotels and DMCs can act on right now.
The Risks
Risk #1: Crowds can be a liability to your business
A growth in the number of tourists used to be unambiguously good news for everyone. That’s no longer true.
During a portfolio review of several thousand itineraries for a client, Equator found that crowds were driving down year-on-year reviews, as once-authentic experiences were turned into tourist traps. So much so, that several attractions were acting as a drag on the entire itinerary. This presented a commercial risk for the company – they couldn’t swap out destinations as their contracts with hotels and DMCs had years to run.
The benefits that come with long-term contracts – guaranteed access to a site, better rates, and commercial security – are no longer assured. There are new risks and liabilities to consider when signing a long-term deal: the extent to which crowds may negatively impact the visitor experience, worsen the quality of life for residents, and result in an array of new, and often-times inconsistent regulations.
We’re already seeing some of these risks come into effect. Barcelona, for instance, has announced that from 2028, short-term vacation rentals will be prohibited. In 2022, the Town of Bar Harbor, Maine announced a cruise cap that will reduce cruise visitors by as much as 80%, Bhutan has set a daily tourist tax of $100, and Rome announced a fee for tourists wanting to see Trevi Fountain.
My recommendations:
