The 2021’s economic development expectations

The 2021’s economic development expectations

The tourist industry is one of the most affected sectors in the economic crisis during the pandemic.

Famous consulting firms, such as Deloitte, OECD, etc. have come to the conclusion of three main scenarios for economic development this year.

1. Fast economic recovery

All eyes are on the vaccine, waiting to do its magic, and looking forward to recovering the economy.

Along with the economy, the supply chains, travel, and services are going to create

and optimism that will encourage people to invest in the country. The banking system will be supported by the European Union, along with the economic support systems.

2. Slow economic recovery

African and South American economies will recover slower than any other, as a result of the large-scale vaccination process. The European, Asian and American economies will recover faster than the above, but yet very slow, slower than any previous crisis. This negative impact on the economy is going to continue for a long time since the recovery is gradual. By understanding this hard time that the tourism sector is having, we can’t predict future behaviors. During this delicate period, we have to adapt in order to go through this situation and recover as soon as possible. Domestic tourism will also help operators among the markets and will favor their fast recovery

3. Changing trend

The ups of this scenario go along with its downs, there will be moments that the economic activities will be declined since the pandemic war is not over yet. Household budgets and

distribution chains will be impacted during this slow recovery of the economy.

Aggregate expected probability distributions for inflation in 2020, 2021 and 2022

(x-axis: HICP inflation expectations, annual percentage changes; y-axis: probability, percentages)

Source: www.ecb.europa.eu

5 Tips for the new trends in tourism in 2021

The tourism sector will be facing a dynamic period during 2021, along with the slow recovery, possibly the positive events with the arrival of the vaccine that will definitely affect every sector, especially tourism. In this recovery process, we have a list of recommendations that might help the development:

1. Encourage contact with your customers

In this competition of 2021, it will be vital to maintain contact with the customers. All the

activities of social media or email marketing and other online alternatives should be used to inform the customers and create a bond with the workers. These online touch-points are a step ahead.

2. Domestic tourism influence

Developing offers for domestic tourism is a strong advantage.  Comparing to the largest operators in this market, less fast and flexible, the offer of new experiences for this tourism will be a big step ahead, including here different marketing activities.

3. Increasing perceived value by altering prices

All the travel platforms should work on their transparency on revocation policies, travel insurance, and reimbursement options. Not by decreasing prices but by increasing the perceived value of the experience of any traveler, so they can feel safe in any case.

4. Creating a safe and fun balance

Professionals should find innovative solutions for virus measurement so that customers feel safe and have fun at the same time. 2021 will necessarily include some measures but every operator should maintain efficient work by encouraging customers to travel, and entertain them with the guides.

5. Being careful with your direct presence, efficiency, and selectivity.

Aiming for better offers and travel plans, OTA (efficiency and selectivity, a group of online agencies) is trying to lower the price of their products in a very careful and thorough way, also as an experienced source. Working locally gives to the operators more room for movement and also more tourism products that are customized. This is the best way to build a solid distribution capacity.

 

The digitization of moving the businesses from the online to the experiences of the marketing will continue also in 2021 because of the pandemic. If we want to be ahead in this competition, we will be working on distribution channels.