Italian Travel Market Adapts To Changing Traveler Demands

Despite challenging conditions the Italian travel market looks set to see growth in the coming years – Phocuswright forecast that the market will grow steadily by 3-4% annually to reach €25 billion by 2020.

In its Industry Vision Travel & Hospitality report, the Italian Exhibition Group reported that the Italian tourism industry is optimistic towards the future. The report, based on a survey of more than 330 Italian companies in the industry, found that 62.5% of tour operators, 60.7% of travel agencies and 55.2% of the hospitality expect turnover to increase between 6% and 25% over the next 3 years.

How do Italian travelers book trips?

Phocuswright reported in their Italian Online Travel Overview Twelfth Edition that online gross bookings would reach €8.5 billion in 2016 – accounting for 39% of the Italian travel market. This is a lower percentage thank online bookings account for in the Europe overall where online penetration reached 49% in 2016. Italy has some 8,000 traditional travel agencies which play a key role in the market and depress online penetration rates.

The Industry Vision Travel & Hospitality report by IEG explained that while Italian travel companies are ensuring they can cater to the growing demands of Italian travelers in acquiring information and purchasing travel online, the need for traditional travel agents is still strong. As travelers demand greater authenticity in their travel experiences, the need for a more personalized face to face service is required.

Where travel is booked online it tends to be simpler trips and in the Italian market in particular use of mobile devices is particularly high. Phocuswright reported that over half of Italians use mobile devices to access the internet each week – putting the country ahead of Spain, Germany, France, Sweden and the UK – mobile looks set to account for 31% of all revenue from online travel bookings by 2020.

Italian travel companies looking to take advantage of travel market growth in coming years, both online and offline, say that bureaucracy is a major issue according to the IEG’s report. Travel companies in the Italian space, such as Alma Travel, Geo Travel Network and Impronte Viaggi, are employing technologies such as Virtual Payments that allow them to reduce administration, while improving cash flow, to ensure agility in meeting customer demands.

Where are Italian travelers visiting?

Well served by low cost carrier (LCC) flights, Italian travelers enjoy short European city breaks. Airline search data from Google’s EMEA Travel Dashboard shows that in Q3 2017 people from Italy were interested in visiting London, Amsterdam and Barcelona, as well as Italian cities. Seaside resorts in the likes of Spain, France, Greece and Croatia are also popular with Italian travelers looking for short trips.

Destinations such as Egypt, Turkey and Tunisia, have seen a downturn in visits from Italian tourists in recent years, reported Phocuswright, with this Italian tour operators have shifted their focus towards long-haul and niche trips for retirees, families and those seeking guided cultural travel.

The Industry Vision Travel & Hospitality report by IEG also suggests that Italian travelers are increasingly looking for travel that fulfils a thirst for experiences and emotions. This is leading to a growth in specialist tour operators, such as Impronte Viaggi and Petroniana Viaggi, offering religious, spiritual and cultural tours.

What about travel to Italy?

According to Phocuswright, 60% of Italians take at least one holiday a year in their own country. Data for Q3 2017 hotel searches in Italy from Google EMEA Travel Dashboard suggests that the most popular destinations amongst Italians are:

• Rome
• Milan
• Rimini
• Riccione
• Florence

The World Travel and Tourism Council reported that travel and tourism contributed €77.3 billion towards Italy’s GDP (4.6% of the total GDP) in 2016. Google hotel search data for Q3 2017 suggests the biggest source markets for visitors to Italy are – Germany, the UK, the US, France, Switzerland, Austria, Spain, the Netherlands, Belgium and Brazil.