Keys to WTM London 2022

08-11-22

World Travel Market London (WTM) has officially opened (November 7 to 9), with the hope of closing a record number of deals this year, thanks to the arrival of new and returning exhibitors at one of the world's most important travel trade shows.

Both new and familiar faces are present in all areas of the fairgrounds. There are more than 3,000 exhibitors, of which more than 70 are making their debut at WTM London.

Some of the most prominent new entrants are to be found in the show's International Hub area, with global representatives from hotel giants such as Hilton and Wyndham Hotels & Resorts.

The International Hub will welcome for the first time bed bank Yalago (part of the Emirates Group), transport rental company OK Mobility and destination management company Intrepid.

Public, private and hybrid destination management companies, as well as tourist boards, are making their presence felt at this year's event. The organizers are particularly pleased to welcome the Brazilian tourism office Embratur, joined by other representatives from destinations as diverse as Kyrgyzstan and Rwanda.

First-time exhibitors at the fair include the Uganda Tour Operators Association and representatives of the Azadi International Tourism Organization, who will present hotels, eco-safaris, villages and climbing tours available in Iran.

Otherwise, this year there is an increased presence of the more established leisure destinations, such as the Caribbean, Spain and Portugal. The UK & Ireland stand is double the size of last year, hosting over 50 partners and reflecting the continued interest in the UK & Ireland as a staycation destination and its attractiveness to inbound visitors.

This year's technology pavilion for the first time includes Sojern, one of the world's leading travel-specific marketing platforms. U.K.-based Vamp, which helps travel companies work with influencers, and U.S.-based car rental aggregator Sofiac are among the dozen tech companies also trying their luck at WTM London 2022.

Recovery could take longer than expected

Nearly one in three industry executives do not expect the travel sector to return to 2019 levels before 2024 at the earliest, according to the WTM London industry report released today.

A global sample of some 250 respondents revealed that most expect 2019 levels to return sometime in 2023, with 53% expecting recovery sometime this year. The majority of this group sees January-March and June-September as the periods when parity with 2019 will be reached. A single-digit percentage of respondents expect 2019 levels to be reached in this quarter.

However, 24% of the sample expect current trade to remain below 2019 levels for the remainder of 2022 and all of 2023, expecting full recovery to come sometime in 2024. Just under one in ten (9%) suggested a recovery timetable extending beyond 2024.

By region, companies in continental Europe were among the most concerned, with 40% not expecting to see 2019 levels until 2024. Looking even further ahead, UK respondents are the most likely to look beyond 2024 for recovery.

Overall, 60% of respondents acknowledge that their business has recovered since the pandemic without reaching 2019 levels, while 40% are still struggling. Many of the current headwinds will carry over into next year.

When asked to specify an area of concern for 2023, the cost of living crisis emerged as the most worrisome by some distance, identified by 45% of the sample. The cost of gasoline (15%) and the war in Ukraine (11%) emerged as potential issues threatening recovery in 2023.

The impact of the ongoing war in Ukraine is already beginning to affect companies for which Russian and Ukrainian outbound travelers were an important outbound market. Across the global origin sample, 40% admitted that the war was affecting their business.

Cost of living dents travel plans for 2023.

The rising cost of living around the world is by far the biggest threat to travel companies in 2023, according to a study by WTM London.

A survey of travel professionals asked, "Which of the following is most likely to negatively affect your business in 2023?" and nearly half (44.8%) cited "the cost of living in general."

Petrol prices were cited by 13.4%, while energy prices were a concern for one in ten respondents (9.6%).

Taken together, the cost of living plus petrol and energy prices, these responses accounted for more than two-thirds of respondents (67.8%).

The war in Ukraine was cited by just over one in ten (11.9%), while other problems were mentioned by smaller proportions of respondents: rising Covid charges (5.4%); 2022 chaos at airports (4.2%); climate change (2.3%); Brexit (1.9%); and increased border controls (1.1%).

The survey reflects warnings from the World Travel & Tourism Council that the sector is at risk of global recovery due to headwinds.

In September, the WTTC highlighted the challenges facing G20 tourism ministers, stating that public-private partnerships are needed more than ever.

The WTM London trade survey involved 210 travel trade professionals from around the world. The consumer survey included 2,000 respondents.