What is the demand for outbound tourism on the European market?

The tourism industry has seen a slow recovery since the increase of vaccination rates and the decrease in measures to contain COVID-19. Interest in nature-based, off-season and sustainable travel has grown, offering new opportunities to attract European tourists. However, a full rebound in long-haul travel behaviour is not expected until 2025. Many younger travellers feel inspired to travel to their bucket list destination. In the light of the pandemic, giving back to local communities is important for European travellers, especially among Western European countries.

1. What makes Europe an interesting market to target?

The relevance of the European travel market

Europe offers the world’s largest source market for outbound tourism, generating 618 million international tourist arrivals, which was almost 50% of the world’s total before the coronavirus. Asia and the pacific account for 26% of the world’s total number of international tourist arrivals, followed by North and South America with almost 18%.

Out of all 618 million trips by European citizens, 521 million travelled within Europe, 35 million travelled to Asia and the Pacific, 32 million travelled to North and South America, 18 million travelled to Africa and 12 million travelled to the Middle East.

In 2019, total European tourism (air, land and sea) out of Europe counted 496 million trips. It generated 35% of the world’s international tourism expenditure. Of these trips, 14% (70.6 million trips) had a developing country destination, and 86% had a different destination outside the EU. Intra-European travel has not been taken into account. Trips to developing country destinations have been growing with 3% yearly since 2015.

Within Europe, Germany is the largest source market, with 13 million trips to developing country destinations, followed by the United Kingdom (11 million trips) and France (9 million trips).

Recovery of the European outbound travel market

Due to the spread of the COVID-19 virus, 2020 became a disastrous year for European outbound tourism. When the first infection was detected in Europe in January 2020, it had a major effect. By the end of March, Europe was considered the active centre of the pandemic by the World Health Organization (WHO), as its total new infections surpassed those of China. In response, every country in Europe resorted to total lockdowns. This was catastrophic for the outbound tourism market, and numbers plummeted.

The number of trips by aircraft out of Europe reached an all-time low in April and May 2020. While the summer and autumn of 2020 have seen a small recovery in the number of trips, travellers were still very restricted. This was expected to change in 2021. However, travel rates at the start of 2021 were the same as in most of 2020 because of new outbreaks and a slow vaccination rate in most European countries.

Developing country destinations most visited by Europeans

While domestic and intra-European travel is becoming more popular, this chapter mainly focuses on Europeans going on long-haul travel to Africa and the Middle East, Asia and Latin America. Furthermore, the top 6 developing country destinations (Turkey, Morocco, Egypt, Thailand, Ukraine and China) make up over 50% of the trips to developing country destinations.

Turkey was by far the most popular developing country destination among Europeans until 2019. Because of political instability in 2016 and 2017, Turkey has seen a dip in incoming European tourists. However, there was a resurgence in arrivals in 2018 and 2019. The recovery of the tourism market in Turkey for 2021 was positive, but due to wildfires that took place during the summer, this forecast has been heavily dented.

Morocco has seen a stable number of European tourist arrivals over the past years. Many tourists that visit Morocco are people that were born in Morocco but now live abroad. Many tourists are also French. This is likely because of their colonial history and the many people that speak French in Morocco. Egypt has seen a steady increase in tourist arrivals over the years. The number of tourist arrivals since lockdown has also increased during 2021. Many Europeans are looking to spend their holidays along the Mediterranean Sea when they go to Egypt. The interest in Egypt as a destination has increased after the decrease in terrorist attacks.

Africa and the Middle East

After the threat of Islamic State (IS) had decreased, Africa and the Middle East recovered as important destinations for European tourists. Up until 2020, Africa and the Middle East received the most tourists from Europe in comparison to other parts of the world. In 2018, they saw the largest increase in European arrivals, with a 25.8% growth rate. Turkey, Morocco and Egypt are the top 3 developing country destinations that Europeans like to travel to.

Some destinations in Africa and the Middle East received many more European tourists than in previous years. Tunisia, for example, had an increase in tourist arrivals of 55% in 2018 and 18% in 2019. After 2 deadly jihadist attacks on a Sousse beach and Bardo National Museum in Tunis aimed at tourists in 2015, tourism to Tunisia decreased tremendously. It recovered in 2018, with tourist arrivals surpassing 2014, before the attacks took place.

Niger and Comoros have seen an increase in European tourist arrivals between 2018 and 2019, with a growth rate of 22% and 23% respectively. Niger increased its focus on assets that are appealing to tourists, such as local culture. The Comoro Islands have promoted themselves as an appealing destination for tourists interested in culture, wildlife and nature tourism.

Africa’s tourism market will have a hard time recovering from COVID-19. This is because the amount of domestic and regional travel is lower compared to other world regions, and people from Europe are looking for more security by staying closer to home. Overall, Africa will see major losses in the tourism industry in 2021. A 78% drop in tourism expenditure is expected in North Africa and a 69% drop in South Africa. The quickest resurgence in the African tourism market is expected to be within the wildlife and nature tourism market.

Figure 3: Wildlife watching offers 1 of the largest niche markets in Africa

The decline in tourist arrivals will be especially hard for Cabo Verde, where tourism was responsible for 71% of the total export and 93% of international guests. Mauritius is facing hard times because 10% of its GDP comes from tourism and 34% of its export products are within the tourism industry. In the Middle East, it is going to be especially tough for Jordan, where tourism makes up 12% of its GDP, 36% of its exports and 72% of international arrivals.

Asia

Thailand, China, India, Indonesia and Vietnam saw a steady increase in tourist arrivals in the years leading up to 2020. Asia witnessed the first cases of COVID-19 and was therefore also the first region to commence lockdown. In June 2021, many Asian countries suffered high infection rates again, and 70% of Asia’s borders have been closed for non-essential travel. Quarantine upon arrival is necessary in almost all countries. This is devastating for the tourism market in Asia. Until domestic vaccination rates and vaccination rates from incoming tourists rise, the tourism industry will continue to suffer majorly in Asia. Tourism arrivals were down 75% in the first half of 2020 in comparison to 2019.

The Philippines was the most sensitive to the decrease in arrivals, as tourism accounts for 9% of its GDP and 10% of its exports. Thailand will have a hard time as well, as 7% of its GDP and 20% of its exports consist of tourism products and services.

Thailand’s Phuket province reopened its borders on 1 July for people who are fully vaccinated. Thailand is looking to reopen its national borders entirely in mid-October for vaccinated people.

Asian countries are cheap to visit for Europeans. The continent’s rich nature, cultural heritage and opportunities for luxury travel make it an interesting destination when restrictions have decreased. While cities in Asia used to be high in demand, it is likely that nature-based activities will see an increase in demand when the measures allow it.

Latin America

International tourist arrivals in Latin America saw steady growth up until 2019.

Mexico is by far the most popular travel destination in Latin America among Europeans. Tourist arrivals in 2020 decreased with almost 60%, which is lower than the world average. Mexico did not see a total lockdown, which let it maintain some parts of the tourism industry. Meanwhile, the country has seen an 80-100% recovery rate in the tourism industry in 2021, which is unique in the world.

Figure 6: The Day of the Dead festivity in Mexico offers culture and spirituality and attracts many tourists

Source: Photo by Dina Julayeva on Shutterstock

Latin America is expected to see the largest resurgence in sustainable travel, especially because sustainable awareness has increased during COVID-19. Conserving biodiversity, protecting local communities and indigenous people have attracted tourists’ interests. El Salvador saw a tremendous increase of 29% in European tourist arrivals between 2018 and 2019. Traditional and colonial culture and nature travel are the main reasons for people to travel to El Salvador. Tourist favourites include the majestic volcanoes, craters, birdwatching opportunities and black-sand beaches.

Nicaragua had the largest decrease in European tourist arrivals, with 26% fewer tourists in 2019 compared to 2018. This decline was partly caused by the protests against social security reforms.

For many islands in Latin America, like Saint Lucia, Dominica and Antigua & Barbuda, the coming period will be tough, as tourism is a large part of their total exports. Panama is going into hard times as well, as 9% of its GDP and 28% of its total exports consist of tourism. Another country that is getting it tough is Jamaica, since 54% of its exports and 9% of its GDP come from tourism.

2. Which European markets offer the most opportunities for tourism suppliers in developing countries?

Germany, the United Kingdom and France are the most important source countries for developing country destinations, followed at some distance by Spain, Italy and the Netherlands. Besides offering the most trips to developing countries, these source markets also have a relatively high budget and an above-average interest in sustainable travel.

Germany

With almost 13 million trips to developing countries in 2019 (12% of all German outbound trips), Germany is the largest European source country.

Just like for most Europeans, Turkey is a popular destination among Germans. Turkey is expecting 2.5 to 3 million German tourists in the second half of 2021 if the pandemic allows it. This is close to the number of tourist arrivals before the pandemic. Turkey’s nice climate, beautiful nature, interesting cuisine and culture, great beaches and cheap flights from European source countries make it an appealing holiday destination. Germany alone provided 27% of the trips to Turkey in 2018. The high ratio of German visitors can be explained by the large number of Turkish migrants living in Germany.

To see how many Germans travelled to your country in 2019, hover your mouse cursor or pointer over the countries in blue in Figure 8.

United Kingdom

With over 11 million trips to developing countries in 2019 (19% of all British outbound trips), the United Kingdom offers the second-largest European source market. In 2019, 88% of people in the United Kingdom took at least 1 trip, with the average person taking almost 4 trips per year. Families with children over 5 years old enjoy most trips.

To see how many British people travelled to your country in 2019, hover your mouse cursor or pointer over the countries in blue in Figure 9.

Just like for Germany, the most popular developing country destination for British people is Turkey, with 6% of people travelling there in 2018-2019. Asia is also an increasingly popular destination, along with North and South America. Compared to other age groups, 18-24-year-olds are increasingly interested in travelling to Africa. The most popular African destinations are Morocco, South Africa and Egypt.

Beach holidays and city trips are popular among British travellers. Adventure holidays are also seeing an increase compared to the years before: 10% took a lake or mountain trip and 7% took a camping trip, the latter being especially popular amongst the age group 55-64.     Adventure tourism trips are increasingly popular among 18-24-year-olds. Wellness travel has also been rising in popularity. Many couples enjoy a romantic getaway.

The average budget for the next main trip was €2,155 in 2020, which is more or less the same as in 2019. Their stable holiday budget is an exception in Europe, probably caused by the high vaccination coverage at a very early stage.

Online bookings are by far the most popular, with 83% booking their trips this way. Consulting travel company websites and professionals have seen a rise, while social media are used less for travel information. British travellers have become more aware of fake news and fake reviews on social media, which makes them wary of using it for travel recommendations.

Holiday bookings through phone calls have seen a slight rise from 15% in 2018 to 17% in 2019. These bookings are mostly made by elderly people above 75 years old. In-store bookings have decreased from 15% to 12% between 2018 and 2019. High-end accommodation is the norm for British travellers. Package holidays, especially all-inclusive, are popular. However, booking transportation and accommodation separately is equally popular. These 2 forms of travel have not seen major changes in the past years.

Among the British, 50% have either been on a cruise and are likely to go again or have not been on a cruise but are interested in going on 1. Most people are interested in ocean cruises, followed by adult-only, river and land-based cruises.

British people care about sustainability. They find it important that the money spent on holidays contributes to the local community. Next to that, they find it important that plastic pollution is minimised and that the local animals are treated with respect. Half of British travellers find travel companies’ green credentials important.

Some of the leading certification programmes are:

• Travelife, offering a certification programme for tour operators, travel agents, hotels and accommodations;
• Earthcheck, offering a science-based approach to increase efficiency, maximise the guest experience and minimise the environmental footprint;
• Green Globe, a global certification with a focus on hotels, resorts, attractions and conference centres.

It is important to realise that opting for certification has a big influence on your company. It usually requires hard work to obtain, but it can be of great support in increasing the sustainability of your business and marketing your company.

British people on average spend 8 days at their destination. Most British travellers stay at a hotel, while few of them stay with family or friends, a resort or an alternative accommodation. Most of the money spent goes to hotels, followed by flight expenses.

Compared to the French and Germans, British people tend to consider deals and low costs more as a determining factor for their travel decisions. However, they value the activities at the destinations and the cultural experience the most.

British travellers usually book their trip within 1 week or take 1 to 3 weeks to do so. Next to money deals, British people find reviews and information important decision-making factors. British people are mostly influenced by reviews on travel review websites, followed by search engines and online travel agencies. They usually also book their travels through online or offline travel agencies. Therefore, most British travel agents adopt a multichannel approach, offering their services both online and offline. Large travel agents offering online services are Hays Travel, Travel Counsellors and Tui.

A little over 45% of British people are willing to take more off-season trips, while 42% are willing to pay more to avoid crowded destinations. Almost 60% are willing to stay at 1 destination per trip instead of travelling to multiple destinations.

The United Kingdom is the second-largest economy in Europe, with a GDP of 2.3 trillion euros in 2020. While the GDP decreased with 9.8% in 2020, it is expected to grow significantly in 2021 and 2022, with 7.2% and 5.5% respectively.

France

With over 9 million trips to developing countries in 2019 (20% of all French outbound trips), France offers the third-largest European source market. Former French colonies such as Morocco and Tunisia are favourite French destinations, as they offer no language barrier and many French people have roots in these countries. To see how many French people travelled to your country in 2019, hover your mouse cursor or pointer over the countries in blue in Figure 10.

After a partial recovery in December 2020 and January 2021, air travel out of Europe declined again in early spring 2021. In June 2021, the number of passengers went up again, to about one-sixth of the pre-COVID-19 passenger flow.

Table 2: The number of French people travelling outside of Europe by air

Month	2019	2020	2021
January	5,218,945	5,337,094	1,176,735
February	4,877,132	5,000,877	624,387
March	5,803,598	2,578,930	683,337
April	6,323,895	79,550	643,098
May	5,827,685	98,871	712,102
June	6,653,316	229,345	1,255,420
July	7,532,238	921,994
August	7,762,743	1,365,332
September	6,437,195	884,201
October	6,225,661	930,451
November	5,086,229	558,072
December	5,483,487	1,093,945

Source: Eurostat

The average budget for the next main trip was €1,522 in 2020, which decreased from €2,201 in 2019, although this amount will be higher for long-haul destinations.

French people usually speak little English compared to other European citizens, which makes it important to address them in French. The French share some cultural aspects with the Germans. For example, both are very straightforward in their communication (you may also consider it rude). The French, however, are open for more spontaneity during their holidays compared to Germans.

French people take almost 4 trips on average per year. French people mostly enjoy relaxing and sight-seeing holidays, followed by family visits. Just like the British and Germans, romantic getaways are also well liked among the French. French people spend around 10 days at the holiday destination on average.

The French are also the most open to alternative accommodation compared to other countries, although around 50% of the travellers prefer to stay in hotels. They are the most likely to stay with family or friends during their trip compared to other European countries, and 48% of French tourists claim that family/friends is/are the most important reason for their travel. This is relatively high compared to the average EU citizen (38%). Especially former colonies, like Morocco and Tunisia, receive these visitors.

Natural features/nature (58%) and cultural and historical attractions (36%) are mentioned most often as reasons to return to the same destination for a holiday in a poll by Eurobarometer (compared to 45% and 31% for the EU in total). Therefore, nature and cultural trips offer the most opportunities when targeting the French market. The French have a very high preference for beach holidays as well.

Figure 11: Many French people prefer nature combined with beautiful beaches

Source: Photo by Pe Seth on Unsplash

The size of the budget is crucial for 77% of French travellers to how they spend their holidays. However, they also consider the destinations’ activities to be 1 of the most important factors in choosing their destination. Other determining factors are the feeling of having a ’once in a lifetime’ experience, cultural experiences and outdoor activities. French travellers usually book their trip within 3 weeks.

French tourists have very specific needs and find those very important. They value freedom during their trip and therefore prefer to travel independently and not join group tours. Furthermore, they also care more for family entertainment compared to German and British people. Activities for the whole family are thus important to them. Lastly, they do not like crowded places, as they would rather get a fresh view on something unique.

Before French people go on holidays, they like to look up reviews and information on the destination online and search for deals before making their final decision. Most French travellers use search engines such as Google to decide on their holiday. They also make use of travel agencies and airline websites. When looking for French sustainable tourism companies, a good starting point is the Agir pour un Tourisme Responsible (ATR). The largest French airline, also focussing on long-haul destinations, is Air France-KLM.

Almost half of French travellers are willing to travel off-season, with 28% willing to pay more to avoid crowded destinations. Also, 51% are willing to stay in a single destination instead of multiple destinations. Almost 40% of French people are willing to pay more to support the local community.

France is the third-largest economy in Europe, with a GDP of 2.3 trillion euros in 2020. The GDP decreased with 7.9% in 2020 but is expected to grow with 6% and 4.2% in 2021 and 2022 respectively. France has a population of 67 million.

Italy

With 4.3 million trips to developing countries in 2019 (16% of all outbound trips), Italy offers the fourth-largest European source market. Italy is known as 1 of the first places in Europe where COVID-19 occurred, and it has seen a serious impact with a relatively high death rate and high economic consequences. The Italian vaccination rate is comparable to Western European countries, with 78% of the adult population having been fully vaccinated as of October 2021. As of May 2021, the Italian outbound travel market has failed to recover.

Table 3: The number of Italians travelling outside of Europe by air

Month	2019	2020	2021
January	3,132,218	3,288,478	279,691
February	2,872,340	2,802,820	242,365
March	3,492,567	581,336	245,867
April	4,108,789	33,801	272,551
May	4,312,445	39,904	320,850
June	4,793,995	111,470
July	5,235,232	581,650
August	5,504,025	56,553
September	4,913,096	814,938
October	4,436,775	544,673
November	3,225,225	218,718
December	3,373,373	291,905

The most important developing country destinations were Albania, Egypt, Morocco and Turkey. The main African destinations (besides Egypt and Morocco) are South Africa, Tanzania, Madagascar, Mauritius and Ethiopia. To see how many Italians travelled to your country in 2019, hover your mouse cursor or pointer over the countries in blue in Figure 12.

The overall holiday budget of Italians has dropped from €1,757 in 2019 to €1,377 in 2020 and is lower than the budgets of German, British and French tourists.

Italian tourists still prefer travel agencies over online bookings, as only 39% of Italians are booking online compared to the 49% average in Europe. Many Italians also tend to travel in larger groups, often with large (multi-generational) families and prefer an Italian-speaking guide. Margins for tour operators and travel agents are generally lower for larger groups. However, their large group sizes offer some economies of scale.

Italians feel a need for a more personalised booking service because they prioritise the authenticity of their holiday. The preferred accommodation types for Italian travellers are hotels and tourist villages. The popularity of such accommodation also increased in 2018 by 6.7%. Italians have the highest preference of all Europeans for beach tourism.

Almost 40% of Italians are willing to take more off-season trips, while 28% are willing to pay more to avoid crowded destinations. Also, 56% are willing to stay at 1 destination per trip instead of travelling to multiple destinations.

Italy is the fourth-largest economy in Europe, with a GDP of 1.7 trillion euros. The GDP decreased with 8.9% in 2020 but is expected to grow with 5.0% and 4.2% in 2021 and 2022 respectively. Italy has a population of 60 million.

Spain

With 3.7 million trips to developing country destinations (17% of all outbound trips) in 2019, Spain is the fifth European source market. Just like Italy, Spain has been hit very hard by the pandemic. The overall holiday budget of Spaniards has dropped from €1,798 in 2019 to €1,347 in 2020, which is comparable to the budget of the Italians but lower than the budgets of German, British and French tourists. The Spanish vaccination rate is relatively high, however: 83% of the adult population was fully vaccinated by October 2021. Mainly because of that, the number of trips out of Europe was also higher than in Italy during the first months of 2021.

Table 4: The number of Spanish people travelling outside of Europe by air

Month	2019	2020	2021
January	4,383,085	4,394,426	443,270
February	4,242,094	4,339,972	297,916
March	5,129,133	2,327,467	385,693
April	6,376,033	20,117	372,514
May	7,098,008	41,236	474,549
June	8,151,476	87,345	892,364
July	8,802,776	982,599
August	8,950,989	885,164
September	8,039,387	566,052
October	7,080,990	510,976
November	4,699,075	418,386
December	4,743,033	633,791

Morocco in particular is an important destination. Due to strong historical ties, tourism for the purpose of visiting family, friends and relatives offers opportunities for Moroccan suppliers. Other important destinations are Mexico, Thailand, Turkey and China. Many Spanish-speaking countries, including the Dominican Republic, Peru, Ecuador and Cuba, are also in the top 10 destinations. To see how many Spanish people travelled to your country in 2019, hover your mouse cursor or pointer over the countries in blue in Figure 13.

Almost 40% of Spanish people are willing to take more off-season trips, while 26% are willing to pay more to avoid crowded destinations. Also, 67.6% are willing to stay at 1 destination per trip instead of travelling to multiple destinations.

Spain had a GDP of 1.1 trillion euros in 2020. The GDP decreased with 10.8% in 2020 but is expected to grow with 6.2% and 6.3% in 2021 and 2022 respectively. Spain has a population of almost 47 million.

The Netherlands

With 3.5 million trips to developing country destinations (17% of all outbound trips) in 2019, the Netherlands is the sixth-largest European source market. Although the Dutch market is recovering, most trips are domestic or within the EU. Table 5 shows an insight in the development of travel outside of Europe during and before the crisis. Comparable to Germany, Dutch passenger flows out of Europe recovered up to about one-third of pre-COVID-19 levels by July 2021.

Table 5: The number of Dutch people travelling outside of Europe by air

Month	2019	2020	2021
January	3,049,553	3,062,466	479,671
February	2,882,633	2,782,264	253,771
March	3,303,335	1,543,341	343,299
April	3,496,555	84,354	409,091
May	3,588,542	120,621	505,398
June	3,638,333	242,817	731,381
July	3,847,435	531,976	1,283,552
August	3,921,758	699,591	1,578,151
September	3,640,163	538,515
October	3,681,255	520,768
November	3,145,228	482,190
December	3,257,107	661,193

The most important aspects of choosing a destination for Dutch tourists are the variety of possible activities in the destination and a sunny destination. Turkey is by far the most important developing country destination. The main African destinations are Morocco, Egypt, South Africa, Gambia and Tunisia.

To see how many Dutch people travelled to your country in 2019, hover your mouse cursor or pointer over the countries in blue in Figure 14.

Dutch people tend to be price-conscious holiday bookers who aim for good value for their money. The largest age groups of Dutch tourists are 65+ and the age group 45-64. The age group 45-64 spends the most on holidays, with an average of €1,687. Online bookings are the most popular among the Dutch, as 80% of all bookings are made online. The largest travel agents active in the Netherlands are TUI Netherlands, BCD Group, D-rt Group, Corendon and Sunweb Group.

The Dutch are in general very direct in their communication. Dutch tourists are often good English speakers, and some speak German and French as well.

Almost 47% of Dutch people are willing to take more off-season trips, while 30% are willing to pay more to avoid crowded destinations. Also, 64% are willing to stay at 1 destination per trip instead of travelling to multiple destinations.

The Dutch vaccination rate is relatively high, however: 79% of the adult population was fully vaccinated by October 2021.

The Netherlands has a GDP of 798 billion euros. The GDP decreased with 3.7% in 2020 but is expected to grow with 3.3% and 3.3% in 2021 and 2022 respectively. The Netherlands has a population of 17 million.

The Dutch GDP per capita is higher compared to other important European source markets, which means that the Dutch have a relatively high income and have more money to spend on holidays.

Eastern Europe

Before the coronavirus, Eastern Europe was an ever-growing market and had the highest growth rates of trips to developing countries from Europe. People from Poland took 28% more trips to developing countries in 2018 than in 2017. In some other countries, this growth rate was even higher. Bulgarian citizens travelled 27% more to developing countries, the Czech Republic had a growth rate of 36% and Lithuania even had a growth rate of 56%.

Countries from Eastern Europe take relatively many trips to developing countries compared to other European countries. Polish travellers take 24% of their trips to developing countries, Bulgarian tourists take 26% of their trips to developing countries, Hungarian citizens 29% and Greek travellers 34%. Most travellers in these countries are first-generation travellers. They generally focus on standardised holidays like sun & beach holidays and round trips.

It is important to realise that tourists from these countries focus on a few developing country destinations. Most of their destinations are neighbouring destinations. Out of all Hungarian trips to developing countries, 82% were to Ukraine. Bulgarian tourists visiting a developing country also have a very specific focus – about 90% visit Turkey. While Greek tourists also show much willingness to visit Turkey (48%), many Greek tourists travel to the neighbouring Albania (38%). Polish developing country travellers mostly visit Ukraine (47%), followed by Belarus (18%) and Turkey (12%).

3. Which tourism products (or services) from developing countries are most in demand in European markets?

When attracting European tourists, it is very important to know which markets offer the most opportunities. Therefore, we have provided a top 6 of the most interesting markets.

Several niche markets in the segment of nature tourism, such as (1) wildlife watching and bird watching, (2) walking, (3) adventure tourism trips and (4) ecotourism, offer the most opportunities. These niche markets are high in demand, especially right after border restrictions are lifted, because these niche markets include activities in spacious, off-the-beaten-track destinations and therefore cause less concern for coronavirus infection. Despite the high demand, we do not consider sun & beach tourism as the market offering the most opportunities, because it is mainly dominated by large suppliers offering fixed packages. Within the sun & beach tourism market, Generations Y and Z in particular offer opportunities for small-scale suppliers of sustainable trips.

(5) Tangible (built) heritage and intangible culture tourism also offer opportunities, but mainly for when the fear of COVID-19 infections has reduced. This is because of the urban setting in which this tourism often takes place, and right now, many people will avoid crowded cities to avoid infection. (6) Wellness activities and fitness are likely to be in high demand in the short run. Europeans want to take care of their mental wellbeing after stress has taken a toll during lockdown.

In this chapter, we will further discuss the niche markets offering the most opportunities, structured by the market segments these niches belong to.

Nature tourism

Compared to other segments, nature tourism is expected to recover fastest, because rural destinations are expected to gain popularity. In 2021, 56% of travellers are looking to spend their holidays in rural destinations and doing simple outdoor activities such as hiking.

Almost all (96%) European tour operators offer services related to 1 or more niche markets within nature tourism. Nature tourism is often part of a longer, more diverse trip. For example, people like to combine a city trip with an escape to more rural destinations. Therefore, it is important to offer a diversity of products and services to attract Europeans.

Nature tourism covers many niche markets. Table 6 offers an overview of the niche markets within nature tourism and the percentage of European tour operators active in this niche.

Table 6: Percentage of European tour operators active in a primary nature tourism niche market

Niche market	Definition	Percentage of European tour operators active in this niche
Sun & beach tourism	Sun & beach tourism refers to holidays taken for the purpose of staying at or near beaches.	65.6%
Wildlife watching	Wildlife watching involves viewing wildlife in their natural habitat. It includes different types of safari such as 4x4, walking, fly-in, river/canoe and horseback safaris. The niche also includes trips to view marine life.	57.7%
Walking	Walking tourism refers to trips in which walking in the natural environment forms a significant part of the trip. It includes hiking and trekking, long-distance walking and specialist techniques such as Nordic walking.	49.8%
Ecotourism	Ecotourism refers to an environmentally based tourism experience that is sustainable, has low impact on the natural environment and helps to preserve the long-term nature of the community/project/site.	42.3%
Bird watching	Bird watching is defined as tourist travel for the specific purpose of observing birds in their natural habitat. The niche is sometimes referred to as birding or avitourism.	37.3%
Fishing	Fishing tourism involves travel with the primary purpose of fishing. This can be in either freshwater or saltwater. Fishing is sometimes referred to as angling.	13.6%
Cycling	Cycling tourism refers to recreational travel involving leisure cycling as a fundamental and significant part of the trip. It includes cycling types such as road cycling, mountain biking and cycle touring.	9.3%

Source: Molgo / ETFI

Table 6 gives you a general idea of what Europeans like when on vacation, as well as an indication of how European tour operators cater to European tourists. However, you need to realise that the competition in these markets is also large. This means you need to find ways to distinguish yourself from your competitors.

What you can do with Table 6 really depends on the niche market your company is in. If you operate in a very popular niche market, you could target almost all European tour operators with an appealing offer, if they are active in your country. However, you need to really focus on your unique value proposition (to find out what that is, read our report on how to determine your unique value proposition).

When operating in a more specific niche market, you really need to find those tour operators that fit with your product. These might be:

• Tour operators that offer your product in your market already. In this case, a decent offer might be very interesting if it is comparable to or better than that of your competitors;
• Tour operators that offer your product in another destination. You might be able to convince tour operators to add your destination to their current offering;
• Tour operators that offer similar products for your destination. If you are operating in sailing tourism, for instance, you could target tour operators that sell activities in other water sports or even have a diverse offering in sun and beach tourism.

Wildlife watching and bird watching

Wildlife watching is the second-largest niche market and is the largest in most sub-Saharan African countries. Within wildlife watching, there are different target groups. Most European travellers enjoy seeing animals such as the Big 5. However, lesser-known animals are also interesting for wildlife travellers, especially wildlife enthusiasts. Wildlife enthusiasts usually have specific interests and are keen on learning a lot about local wildlife. Expertise and knowledge are therefore very important when attracting wildlife enthusiasts.

Specialist niches within birdwatching are hardcore birding, enthusiastic birding and casual birding. Hardcore birders have very different demands compared to enthusiastic and casual birders. While hardcore birders travel for the sole purpose of birding, enthusiastic and casual birders are also interested in other activities. This niche market requires a lot of expertise and knowledge about local birds and birdwatching.

Provide nesting sites, feeders and hides and make sure there are fresh water sources that attract birds. This will optimise the likelihood of spotting birds. Avoid disturbing the birds, as it will frighten them off and will put off birdwatchers, as they find it very important to treat wildlife well.

The United Kingdom and Germany offer the main source markets for wildlife watching and bird watching.

Walking tourism

Walking tourism is the third most offered niche market by tour operators and can be divided into several specialist niches: Nordic walking, long-distance walking and hiking/trekking. Specific passion groups are walking charity events, coastal walking and walking on volcanos. For most target groups, walking could be an interesting add-on to your current services. You could also offer a specific hike for a specialist target group.

Some examples:

• Offer a few days’ hike along local villages including a homestay for a Generation Y or Z target group interested in community-based tourism.
• Organise a 1-hour trip with a guide for a multigenerational target group to add an activity suitable for everybody.
• Organise a coastal walk to diversify your sun and beach offering.

Ecotourism

Ecotourism refers to an environmentally based tourism experience. These trips have low impact on the natural environment and help preserve the local environment or benefit the local community and economy. Specialist niche markets within this niche are agritourism, rural tourism, dark sky tourism and camping.

Europeans tend to be aware of their possible impact on the climate and the environment. Europe is therefore the largest market for sustainable tourism and is even expected to have a 51% market share in the segment. Among European retailers, 85% have reported increased sales on sustainable products in the past 5 years. Especially French and Dutch retailers report that they have seen increased popularity concerning sustainability.

COVID-19 has increased sustainable awareness. People are looking to give back to local communities and decrease their environmental footprint. This brings many opportunities for the ecotourism market. Immersion in the local culture and participating in outdoor activities is very appealing to many Europeans.

Adventure tourism

Adventure tourists are adventurous people and are eager to undertake unique and extreme activities. These tourists are likely to be among the first tourists to discover or rediscover remote and long-haul destinations. Moreover, adventure tourists are usually more loyal to their tour operator. This is because they trust their tour operators more compared to other tourist segments. If a tour operator considers a destination safe and border restrictions allow it, these tourists will go.

The adventure tourism market is expected to recover at a faster pace than other tourism markets. It is even estimated that travel spending on this segment in 2021 will be close to the pre-COVID-19 level, with only 7% less than in 2019. Most adventure tourism activities are outdoors and at a safe social distance. This makes it desirable for people to undertake this kind of holiday post-lockdown. Especially 18-to-24-year-olds are eager to go on adventure holidays, especially after COVID-19 travel restrictions. These holidays usually include a once-in-a-lifetime or bucket list experience.

Most European tour operators offer services related to 1 or more niche markets within adventure tourism. This includes niche markets that have a crossover with segments of nature tourism or cultural tourism, like wildlife watching, walking and many more.

Table 7: Percentage of European tour operators active in a primary adventure tourism niche market

Niche market	Definition	Percentage of European tour operators active in this niche
Adventure tourism trip	Adventure tourism holidays are characterised by adventure activities, the natural environment and cultural experiences.	32.3%
Adrenaline (hard adventure)	Adrenaline activities refer to hard adventure activities which require a high level of expertise to take part in and usually involve an element of personal risk.	10.4%
SAVE	SAVE tourism includes 4 major travel profiles: Scientific, Academic, Volunteering and Educational. The sector is characterised by the acquisition of knowledge for personal or professional reasons, and volunteering is the most common link between all 4 profiles.	5.4%

Adventure tourism trip

The most popular niche market within the adventure tourism segment is the adventure tourism trip. Adventure tourism trips are characterised by adventure activities, the natural environment and cultural experiences. Adventure tourism trips are distinguished by their diverse offering, can include activities such as walking and cycling and mostly offer a combination of nature and culture. An adventure tourism trip could include visiting a city on the day of arrival, cycling through nature and spending the following night in a homestay in a small village, from where activities are initiated such as wildlife watching, fishing and getting in contact with locals.

The United Kingdom and Germany offer the largest markets for adventure tourism trips, followed by France, Italy and Spain. Within those countries, your ideal target market depends on your offering. Generation Y and Z tourists offer opportunities, because they are the most eager to explore, the most open to new activities and the most eager to join physical activities. They will be the most open to very active holidays, especially if they are without children. Generation X will have more money to spend, and European baby boomers are still very active despite their old age.

Cultural tourism

Cultural tourism refers to travel where tourists want to learn about the destination’s culture. The trip will include tangible and intangible features of a country’s history, heritage, culture, lifestyle, art, architecture or religion.

Table 8: Percentage of European tour operators active in a primary cultural tourism niche market

Niche market	Definition	Percentage of European tour operators active in this niche
Intangible culture	Intangible cultural heritage refers to experiencing the living culture of local people, such as attending music festivals.	51.6%
Tangible (Built) heritage	Tangible (built) heritage refers to visits to cultural attractions that involve built heritage, such as a museum, or a man-made architectural structure, such as the pyramids.	50.5%
City breaks	City breaks refer to short break travel in town/city destinations and involve cultural activities around tangible, intangible and food and drink activities, both during the day and at night.	30.5%
Food & wine	Food tourism refers to people that like to experience culture through its cuisine. It is sometimes referred to as culinary tourism or gastronomy tourism. Wine and other beverages are often included.	25.1%
CBT	Community-based tourism (CBT) refers to tourism experiences hosted and managed by local communities. This directly benefits the local community and its economy. The trips are sustainable and responsible.	21.1%
Religious/spiritual	Religious and spiritual tourism refers to travel for religious or spiritual purposes, such as undertaking a pilgrimage and visiting sacred sites.	5.4%

Tangible (built) heritage and intangible cultural heritage

Tangible (built) heritage refers to visits to cultural attractions that involve built heritage. Museums and man-made architectural structures such as pyramids are examples of tangible heritage. Interesting specialist niche markets are museums, art galleries, historic properties, places of worship, architectural tourism and other visitor attractions.

Intangible cultural heritage refers to experiencing the living culture of local people. Attending music festivals is an example of intangible cultural heritage. This niche market can be divided into the specialist niches music festivals and events, films, DNA/genealogy, battlefield tourism, dark tourism and other festivals/events.

Creating attractive descriptions of all tangible and intangible cultural sites in the area is an easy way to create content for your website. This also increases the likelihood of people finding your website via search engines, and it makes your accommodation or organised trip more attractive as well.

The tangible and intangible culture niche markets both mostly take place in urban settings and are expected to recover at a slower rate. People want to avoid overcrowded places in the near future because of the threat of COVID-19 infection. Therefore, tangible and intangible tourism mainly offer opportunities in the long run. It is important to pay extra attention to COVID-19 measures and apply them. For example, make sure there is enough space and hand sanitiser and make sure social distancing can be adhered to.

Figure 15: The Indian Holi festival, intangible culture offering great appeal but also high risk of COVID-19 infection

Source: Photo by Lakov Filimonov on Shutterstock

Wellness tourism

The overall wellness of Europeans has decreased because of the impact of COVID-19. This can only partially be explained by economic reasons such as loss of income and decreased job security. Many Europeans feel less satisfied with their health and their relationships with others, leading to feelings of loneliness, stress and depression. Therefore, many Europeans want to focus on their mental and physical wellness during their holiday. Wellness tourism is expected to grow with an annual growth rate of 7%, to $1.1 trillion globally by 2028.

Examples of wellness holidays are:

• Yoga or meditation retreats, fully focussing on mental wellness;
• Luxurious sun and beach trips, focussing on relaxation, combined with culinary activities, beauty treatment and massages;
• Escape to nature trips, combining a digital detox with exploration and enjoying nature;
• Sports trips, combining physical activities and working on your health with healthy food and the opportunity of meeting new people.

Figure 16: Combining nature with spirituality is often seen as a great way of dealing with stress at home

Source: Photo by Mor Shani on Unsplash

This study has been carried out on behalf of CBI by Molgo and ETFI.

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