How will the travel and tourism industry react to the challenges and opportunities that 2025 might bring?
In this post, we will assess the risks for the travel and tourism industry as we go into 2025. We will also explore some ways your business can prepare for these risks, to ensure you stay resilient no matter what happens in the next 12 months.
Growing Risks for Travellers in 2025
Global Guardian recently published a 2025 global risk map. This map assesses country-specific risk factors and indicators, such as:
- Crime
- Terrorism
- Natural disasters
- Political stability
- Civil unrest
- Health
Every country in the world gets a risk rating that ranges from low, to extreme. Looking at the map, it is striking how many global travel destinations have medium, high, or extreme risk ratings. This has led some commentators to wonder: Is the world more dangerous than ever for travellers?
We recently assessed how a changing climate might affect the global travel industry. One thing that seems clear is that, more so than ever before, travellers need to be prepared for a number of risks wherever they go in the world.
If you are a travel agent or tour operator, you can help travellers manage these risks through providing more tailored and comprehensive insurance. Find out how we can help you give your customers the cover they need.
Cyber Security Risks Growing with the Use of AI
We recently published a guide to cyber security for travel and tour operators. For a number of reasons, cybercriminals may actively target businesses in the travel and tourism industry. You handle huge amounts of valuable customer data, and cybercriminals know that many businesses in the sector lack the resources to protect themselves against data breaches.
The risk of cybercrime is not going away, and cybercriminals are getting smarter, and more dangerous, with every passing year.
For example, agencies have warned of the growing threat of cybercriminals using AI tools to target and attack businesses. With AI, cybercriminals can craft phishing emails that are convincing enough to trick anyone. They can also automate their attacks, enabling them to act on a significantly larger scale than ever before.
If your travel or tourism business does not already take cybersecurity seriously, in 2025 you may find out the hard way how devastating a cyberattack can be.
At James Hallam, we can provide you with comprehensive cyber insurance cover as part of a wider travel and tourism insurance package.
Find out more about our cyber insurance for businesses as well as our dedicated insurance policies for travel agents and tour operators.
Ongoing Cost of Living Crisis Affecting Travel Budgets and Business Costs
Geopolitical instability does not just make travel riskier. It can also make travel more expensive. Volatile markets, and the resultant inflation, can have a direct impact on customer spending and travel budgets.
ABTA’s forecasting is optimistic, suggesting a rise in long-haul flights and five star breaks. But many potential customers will be feeling the pinch, which means that many travel agents and tour operators may need to adapt to evolving customer preferences and priorities.
Plus, if you are forced to raise your prices, you will have to seek new ways to provide value to your customers. If you expect your customers to pay more, they may in turn expect to get more for their money. This may result in a rise in personalised and experiential travel options.
Tailored Support for Travel Agents and Tour Operators
At James Hallam, we have provided dedicated insurance services for travel agents and tour operators for over 20 years. Our tailored services can help your business stay resilient and competitive, no matter what challenges 2025 might bring.
Find out more about our specialist insurance services for travel agents and tour operators.