The End Of The Travel Industry?

avatar

Earlier in the day I was thinking about the travel industry. Obviously, this was decimated due to the lockdowns from COVID-19.

At this moment, those in the airline, hotel, and restaurant industries are suffering. While their numbers are up from the lows, they are still struggling.

We also see the conference/seminar industry being hit hard, which further puts strain on the hotels which often how these events.

How soon until the industry recovers?

Could the answer be never?


Source

It is becoming obvious that this will take a number of years before things have a prayer of bouncing back. Even if the vaccines are disbursed, will people still feel comfortable traveling? With discussions about vaccine passports, some might opt out of the travel game for a long while.

Of course, there is the economic factor of things. With tens of millions in the United States alone out of work, obviously affording travel is not on the agenda.

The challenge with something taking a few years to recover is that it starts to get into the technological curve that we are witnessing. This will put added pressure on those firms in that industry.

Naturally, the industry will not disappear altogether. However, it could be radically downsized before there is any chance of recovering.

As I was pondering this, I can across an article that aptly destroyed the technological shift that might take place.

Many feel that Virtual Reality will affect travel in the future. Unfortunately, for this outlook, it is not a futuristic event. It is already happening.

The lockdowns forced people to look for alternatives since travel was out of the question. Already, Virtual Reality is picking up some steam in this area.

We are in the early phases of the technology yet application developers are working hard to get more "trips" for people to enjoy.

Alcove Vr is one company that is rushing to get products out to users.

"It has been skyrocketing," said Cezara Windrem, creator of the Alcove VR platform at AARP Innovation Labs. "We're getting more adoption every month."

Alcove enables users to visit exotic locales such as Australia's coral reef or the island of Malta, while adding a "shared" experience which enables people to interact and even "lead" a family member without the technical skills to navigate in a VR headset.

"We've heard from a lot of people who discovered Alcove and decided buy a headset for their elderly family members," Windrem said.

The advantage is that people can enjoy many parts of the world without leaving their living room. As the technology advances, this will only get more realistic. The goal is to provide us with fully immersive experiences. We are going to have to see progress in a few different aspects such as haptic technology for this end to be realized.

Nevertheless, we are seeing the interest growing.

Opponents of this concept, usually those who are tied to the travel industry, claim that VR is no substitute for the real thing. Certainly, this is true and nobody will state otherwise, especially at these early stages. Of course, VR will not allow one to enjoy the culture and food.

The flip side is that one does not have to get on planes, stand in line in airports, or spend sums on money to spend a week or 10 days in a particular area.

A lot of this has appeal in a world where there is still uncertainty regarding COVID or other strains.

In short, the fear of the virus will outlast the virus itself.

If this persists, we could see it cross the point where technology starts to take over.

With the tourism industry largely obliterated by the coronavirus outbreak, virtual reality has emerged as both a substitute for real-world travel and a complement to help people plan their next trip.

App developers have created a range of travel experiences: touring the pyramids of Egypt, the Taj Mahal, the savannahs of Kenya or the Antarctic from a kayak. These come from commercial operators or organizations such as National Geographic or World Wildlife Fund.

Source

Forecasts are that we could see VR entering mainstream by the middle of this decade. Some are expecting the travel industry to take roughly 3 years to recover. That would see both timelines converging upon each other.

A breakthrough in VR technology could speed up this process, causing an even greater overlap.

How this affects the travel industry remains to be seen. However, if people are already finding VR as a substitute, this will only grow as the VR technology improves. One of the first areas we are could see this is with business travel. This segment of the market was already disrupted (with COVID's help) by video conferencing.

Imagine what happens when companies have access to more advanced VR than it available today. They might forego the cost of airline tickets, hotels, and the time it takes to send employees all over the world.

Could all this amount to a 25% reduction in the travel industry? 33%? 50%?

We can only watch what is taking place at this place. However, it might be prudent to consider some of these questions at it pertains to this industry. There could be a great shakeup which will affect the companies in these industries.


If you found this article informative, please give an upvote and rehive.

gif by @doze

screen_vision2025_1.png

logo by @st8z

Posted Using LeoFinance Beta



0
0
0.000
36 comments
avatar

pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 49 of my contest just started...you can now check the winners of the previous week!
8

0
0
0.000
avatar

Anecdotal evidence, but for what it’s worth, my wife who’s a senior telecom analyst for a major hotel chain says that their call centers have recently been overwhelmed with calls for bookings. Granted, they trimmed staffing levels during the pandemic, but she says the volume has increased to the point where they’re going to have to start rehiring furloughed call agents.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Certainly this was an increase since they dropped so low.

But it does not sound like you are asserting they are at pre-pandemic levels?

Posted Using LeoFinance Beta

0
0
0.000
avatar

Not yet. And the demand that they’re seeing is from people wanting to travel for personal reasons, rather than from business travel.

0
0
0.000
avatar

a lot of people I know are traveling. I might not agree with it / am jealous. People cannot seem to live without it. It's more the government regulations keeping people from traveling imo.

0
0
0.000
avatar

a lot of people I know are traveling.

That could be true but the industry numbers tell us the travel industry is still far below where it was pre-pandemic.

How long until it gets back to that level, if ever, is the question.

Posted Using LeoFinance Beta

0
0
0.000
avatar

It will be interesting to see what will come out of the travel industry. I think some of our present behaviors will remain even after COVID is behind us. Add that with the mass adoption of VR and it could indeed mean a huge hit on the industry.

Personally, I think it's still gonna be some good years before that happens, but I'm definitely curious to see how the current and future events are going to shape our conception of travel.

Posted Using LeoFinance Beta

0
0
0.000
avatar

While booking some hotels for a road trip - the supply is super limited and prices are sky high. I don't think I have any plans to stop traveling, there is too much to see, touch and breath in my one life to do it in VR. Redwoods, The south west - the feeling of energy - the connection to a place.

But - business travel - companies are seeing how much more money they can make - and their people don't have to travel to work/meet/sell. Most of that travel is done in areas not typically considered a destination and may never fully recover.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Perhaps the issue is not limited to the closure and the Corona pandemic only
Rather, the situation has become more economical. People do not have a lot of money to travel, but what they have has money to meet basic needs. Even those who have extra money keep them for fear of a new quarantine.

0
0
0.000
avatar

We certainly cannot overlook the economic piece of the puzzle. Those who were laid off and are struggling financially are not likely to be booking too many trips.

So that is a consideration and will they ever get back to where they were?

Posted Using LeoFinance Beta

0
0
0.000
avatar

I firmly believe the lockdowns speed a lot of things up and also gave people a seriously big reality check on priorities in their lives. A vacation is nice but it is really worth the thousands of dollars when you could do it much cheaper?

Heck I'll be honest with you I've visited some of these high profile places and thought to myself everything kind of starts looking the same and I can just google this. Take it one step further and you can now VR it and it's right as if you were there. VR is seen a massive increase in adoption because of these lockdowns and now you can experience so much more for a drastically lower cost.

I honestly feel that vacationing wont be the same and will never fully recover from it's highs. What will keep them afloat however are events once they are able to do it again. Events where mainly always their biggest money earners and some places such as Disney I feel will recover well. Your basic vacation spots I feel are doomed however.

Posted Using LeoFinance Beta

0
0
0.000
avatar

VR is seen a massive increase in adoption because of these lockdowns and now you can experience so much more for a drastically lower cost.

Once they get haptic technology to an advanced stage, that will take the entire experience to another level.

So yeah, the peak in travel might have been hit.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I thought so too but in Orlando we are getting new air routes coming in and the hotels are filling up. I expect some consolidation in business travel but recreational travel will come back faster than expected. Somehow, people have money to spend on completely unnecessary things lol.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Sign me up. I'm still going places in country to play golf and enjoy beaches, but as for more exotic trips? I will be all over this. Scuba diving the Great Barrier Reef with my 11 yr old without all the danger? How great would that be?!

Posted Using LeoFinance Beta

0
0
0.000
avatar

Funny how things happen Jon and two other guests on Crypto Monday tonight talked about how it might be to travel , people will have to have a Covid19 shot record. Anyway something to that affect. I was told at my DMC license office that I would have to go get my marriage certificate to prove that I had been married and then they would put some special emblem on my Drivers license that allows me to fly, now I will also have to have proof that I had my Covid shots. Not worth it for me to fly. I think for people that can't or won't travel that VR technology would be a benefit.

0
0
0.000
avatar

I was told at my DMC license office that I would have to go get my marriage certificate to prove that I had been married and then they would put some special emblem on my Drivers license that allows me to fly,

That is a new one on me. Where was that?

Posted Using LeoFinance Beta

0
0
0.000
avatar

This is nice. I think being able to visit somewhere faster and cheaper for the same experience is better. However I still see a future for travel industry for now and it is also a concern for my AVA holdings. I see it doing a good job and its making good progress.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Travel will certainly not go away. The question is where is the future of the industry and how much consolidation is required?

Posted Using LeoFinance Beta

0
0
0.000
avatar

I just want to travel (of course, according to the budgets I can afford) and I don't think anything will reduce this desire.
Certainly the tourism industry will be affected, but I think it also has the chance to change and improve.
The VR technology can be, in my opinion, a very good vehicle for promoting and increasing the desire to travel in the real world.

0
0
0.000
avatar

The VR technology can be, in my opinion, a very good vehicle for promoting and increasing the desire to travel in the real world.

I am sure the forward thinking companies are going to get on the VR craze and position themselves there.

How they leverage that into their everyday, physical model will be interesting to see.

Posted Using LeoFinance Beta

0
0
0.000
avatar

We have aging population who are no longer in a physical condition that allows for long-distance travel. An ambulance flight home from across the world can set one back $200,000. Very few people can afford that and while travel insurance can cover acute problems, those stemming from pre-existing conditions are often not. Given such risks, I see VR travel as potentially growing in popularity.

But maybe given a high-quality VR taster will make people want to travel even more. Who knows.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I am not sure that this article was referring to ambulance flights in particular.

While I guess we can call that travel, it is a specialized kind that I think few are opting to sign up for.

In fact, I think we all would like to see that number go down if possible.

Posted Using LeoFinance Beta

0
0
0.000
avatar

It wasn't referring to ambulance flights. I just happen to know that an ambulance flight between continents can easily cost that much. My point is that old people may not be advisable for old people to travel too far. Old people are one potential group to market products in this category to.

0
0
0.000
avatar

That is a great point about conferences and seminars. I know that those tend to bring in a huge amount of money for some of the more popular resorts. I have an annual conference that I haven't been to in the past two years and if they decided to have it in person this year I am probably going to be one of the first ones there. I don't think I can handle one more virtual conference! At the end of our conference every year they have a general meeting of the group and they always talk about the financial and how much they have to lay out for the conference. It is a huge sum and we are a fairly small orgainization.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I don't think I can handle one more virtual conference!

That is today.

What about using VR technology 5 or 7 years from now? That might be a completely different experience.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I don't think I would like that either. One of the things I really like about conferences is the social aspect. I am not too much of a social person, but at conferences I tend to let loose a little more. I don't see myself doing that if it is via VR. I tried to attend Hivefest this past year and it was just awkward.

Posted Using LeoFinance Beta

0
0
0.000
avatar

First, about business trips.
We just admit that some things are resolved in informal communication, which is not possible in just an official video link.
Tourism too. He suffers, but he will hold out. People travel 1,000 miles for more than just seeing. They are going to change the place and environment.

Posted Using LeoFinance Beta

0
0
0.000
avatar

VR is the ultimate way to entertain people with their traveling needs but when a person is at actual place, that has the satisfaction and the actual entertainment.
I agree that the traveling industry has suffered but following the covid sop’s is the only way traveling can be resumed again.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Congratulations @taskmaster4450le! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

You got more than 15500 replies.
Your next target is to reach 16000 replies.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

Check out the last post from @hivebuzz:

Hive Power Up Day - April 1st 2021 - Hive Power Delegation
Happy Birthday to the Hive Community
0
0
0.000
avatar

Trumpman has downvoted this post You should know by now that the travel industry is gonna come back stronger than ever and travala will make us all rich :P

Posted Using LeoFinance Beta

0
0
0.000
avatar

Until you can't tell the difference between VR and physically being somewhere, nothing will replace travelling. We're still at a point where 8k 360 degree VR video looks like 240p to my eyes.

I bought an oculus quest to keep myself occupied but as soon as it's allowed I'm back to travelling.

Posted Using LeoFinance Beta

0
0
0.000
avatar

With discussions about vaccine passports

I saw some mockups of the potential candidates for vaccine passports in EU. The way they are designed now, they are practically unusable in my country, even if one wants to, and I have a strong feeling enough won't.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I fear that the tourism industry might return to what it was before 20th Century - the domain of wealthy elite that could afford transportation and accommodation which is increasingly becoming beyond the means of average citizens due to lockdowns and rampant unemployment.

Posted Using LeoFinance Beta

0
0
0.000