@Halal January/February 2024 | Page 35

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January-February . 2024

Outlook 2024

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Tripfez Travel & Tours
INCREASED DEMAND FOR TAKAFUL-BASED TRAVEL INSURANCE

TRIPFEZ Travel & Tours Sdn Bhd Managing Director Faeez Fadhlillah said the business travel industry had rebounded at a much faster rate than projected and was expected to surpass the pre-pandemic level by mid- 2024 and reach US $ 1.4 trillion by the end of 2024 .

“ The Muslim corporate travel market sees similar trends and is expecting to reach US $ 420 mil in total spending by 2024 . This represents a staggering increase of 32 per cent in 2023 and 47 per cent in 2022 . The rapid growth of business travel is backed by strong consumer demand and rapid economic growth in 2023 .
“ In Malaysia , Muslim corporate travel showed similar growth trends , with many corporate companies resuming their travel spend and ceasing work from the work-from-home policy .
Faeez Fadhlillah
“ 2023 also saw increased competition in supply with many airlines resuming and increasing routes and many new hotels popping up after three years of stagnant growth due to the movement control order restrictions .”
Faeez noted one trend observed in 2022 was the increased demand for takaful-based travel insurance in line with many corporate companies ’ increased focus on Islamic finance , especially amongst GLCs and MNCS in Malaysia .
“ Thirty-one per cent of corporate companies are currently using Takaful-based travel insurance for their employees ’ corporate travel , with 37 per cent indicating the desire to switch from conventional-based travel insurance to takaful-based travel insurance . This trend is expected to give rise to the growth of takaful travel insurance volume in 2024 .”
Tripfez is the leading travel management company specialising in leisure , umrah , and corporate travel .
Pacific Asia Travel Association

PACIFIC Asia Travel Association ( PATA ) CEO Noor Ahmad Hamid said : “ As more and more destinations get back to pre-pandemic levels , it is important to remember that since 2019 , the travel and tourism landscape has evolved , influenced by geopolitical events , technological advancements , and changing consumer preferences .”

He highlighted three major trends shaping the future of the travel and tourism industry : Sustainable and responsible travel , technological advancements , digitalisation , artificial intelligence ( AI ), and experiential travel .
SUSTAINABLE AND RESPONSIBLE TRAVEL
a . Carbon-Neutral Travel : Airlines and travel companies are investing in carbon offset programmes to neutralise the environmental impact of travel . This includes the development of more fuel-efficient aircraft , using sustainable aviation fuels , and offsetting carbon emissions through reforestation and renewable energy projects . For example , the Association of Asia-Pacific Airlines ( AAPA ) members , including Singapore Airlines , have pledged to strive towards a target of five per cent sustainable aviation fuel use by 2030 .
b . Green Accommodations : Eco-friendly accommodations are on the rise , implementing sustainable practices such as waste reduction , energy conservation , and using locally sourced materials . Certification programmes like LEED and EarthCheck are becoming standard benchmarks for environmentally conscious travellers . c . Community-based Tourism : Travellers are increasingly seeking authentic , community-based experiences that engage with local communities , support local businesses , and participate in responsible tourism practices , thereby contributing positively to local economies .
TECHNOLOGICAL ADVANCEMENTS , DIGITALISATION AND ARTIFICIAL INTELLIGENCE ( AI )
a . Virtual Travel Experiences : VR will enable travellers to explore destinations and attractions from their homes , aiding in trip planning and allowing individuals to make more informed decisions about the destinations they plan to visit . b . Augmented Reality Navigation : AR can enhance on-the-ground experiences by providing real-time information and interactive overlays on
historical sites , landmarks , and points of interest . AR apps can guide travellers through unfamiliar locations , offering insights and enhancing the overall cultural experience . c . Remote Work and Travel Integration : With the rise of remote work , travel and tourism will intertwine with work experiences . Digital nomads and remote workers will seek destinations that offer both a conducive work environment and enriching cultural experiences . As a result , over 19 Asia Pacific destinations have issued visas specifically designed for digital nomads , and the numbers are rising to accommodate the demand . d . AI-Powered Personalisation : AI will play a pivotal role in personalising travel experiences , from suggesting customised itineraries based on preferences to providing real-time recommendations for dining , activities , and attractions . According to a global survey of 20,000 respondents across 14 countries conducted by Expedia Group in 2023 , nearly 40 per cent of respondents would now be likely to use generative AI to help find a hotel or vacation rental , a third would use it to compare flight options or get inspiration on where to go , and 35 per cent would use it to find activities and things to do . e . Contactless Technology Adoption : Touchless check-ins , digital key access , and cashless transactions will become standard in the travel industry . Mobile apps will serve as comprehensive tools , allowing travellers to manage bookings , access information , and make payments seamlessly .
EXPERIENTIAL TRAVEL
a . Authentic Cultural Immersion : Travellers increasingly seek more than just superficial experiences ; they want to engage with the local culture on a deeper level . This involves participating in cultural activities , interacting
with locals , and gaining insights into the traditions and customs of the destination . b . Hands-On Activities : Travellers are now actively participating in activities that allow them to learn new skills or better understand local practices . This can include cooking classes , artisan workshops , or outdoor adventures that provide a genuine connection to the destination . c . Bespoke and Niche Experiences : Travellers are seeking tailor-made itineraries that align with their interests and preferences , whether it ’ s exploring a specific aspect of a destination ’ s history , indulging in unique culinary experiences , or engaging in adventure sports . d . Off-the-Beaten-Path Exploration : The desire for unique and off-the-beaten-path experiences is on the rise . Travellers are venturing beyond popular tourist spots , exploring hidden gems , and discovering less crowded destinations that offer rich and authentic experiences . e . Wellness and Mindful Travel : Wellness-focused travel experiences are gaining popularity , emphasising activities that promote relaxation , mental well-being , and physical health . This includes wellness retreats , spa experiences , and opportunities for mindfulness in serene natural settings .
“ As we enter 2024 , the travel industry undergoes transformative evolution , shaped by sustainability , technology , and changing preferences . Embracing these trends contributes to a more sustainable and connected global tourism landscape ,” Noor concluded .
The Pacific Asia Travel Association ( PATA ) is a not-for-profit membershipbased association that acts as a catalyst for the responsible development of travel and tourism to , from and within the Asia Pacific region .