Travel is one of the largest industries in the world. According to the World Travel & Tourism Council, “Travel & Tourism’s total contribution to the global economy in 2014 was US$7.6 trillion (2014 prices), which equates to 9.8% of total economy GDP in 2014.” To get a grip on how large of a number 7.6 trillion is, let’s put it in the perspective of time. If you wanted to time how long a MILLION seconds took to tick by, you would be waiting for 11.6 days. Likewise, thirty-two years is equivalent to a BILLION seconds, but a TRILLION seconds is equivalent to 32,000 years! And that’s just ONE trillion. The Global travel industry is $7.6 trillion. 7.6 trillion seconds is equivalent to 240,835 years. That is a huge number. Normally we can’t wrap our heads around how much a billion or trillion dollars is, so I hope this comparison helps. In other words, travel is huge!
Also according to the WTTC, “Travel & Tourism out-performed growth in the majority of leading sectors in 2014, including automotive, public services, retail, ICT, financial services, aerospace and extraction. Its performance was only bettered by a small selection of booming sectors like consumer electronics and machine tools.” This statement effectively makes TRAVEL one of the largest industries in our GLOBAL economy.
Finally, this picture shows the predicted growth of the travel industry:
This WTTC chart illustrates that by 2025 the global TRAVEL industry will be just under $12 Trillion. Thus, travel and tourism aren’t going anywhere soon and will continue to thrive and to grow for the next 10 years, at least. Personally, I believe it will grow as long as there are humans that want to see different places on Earth.
In the US, the boom in travel is due to two generations: Baby Boomers and Millennials. Baby Boomers are people born between 1946 and 1964. This generation has driven every industry it has touched. Like a baseball moving through a garden hose, these people significantly increase activity in every area of commerce as they progress through time. There are many examples that illustrate this fact.
For one, baby food (Gerber) as a consumer product was essentially put on the map due to the demand generated by the birth of the Baby Boomers in the late 1940s. In the 1960s, Lee Iacocca saw that the Baby Boom Generation wanted fast cars. He created the Ford Mustang and began the Muscle Car Revolution, which is still going strong. In the 1980s, Lee Iacocca observed that many of the Boomers were having kids or grandkids and needed to transport them, so he came up with the Ford Minivan, which is still popular among families today. The changing habits of this group of people in the 1960’s fostered the Fast Food Revolution, which took with McDonald’s, but is now considered a staple of American culture.
Which industry is the Boomer generation affecting these days? To answer that question, we have to look at what stage of life they’re in. According to the Pew Research Center, “Roughly 10,000 Boomers will turn 65 today and about 10,000 more will cross that threshold every day for the next 19 years.” The retirement age in the US is right around 65 for most Americans. So this means that every day for the next 19 years, 10,000 baby boomers will retire. Many have been working hard their entire lives and now they will have to work no more. WHAT DO YOU THINK THEY WANT TO DO WITH ALL THEIR SPARE TIME?? Heck, stop reading this blog right now and ask a Baby Boomer (maybe your parent, grandparent, or yourself), “What do you want to do when you retire?” More than likely the answer will be TRAVEL. So it’s safe to say that the US Travel Industry will be growing even more in the coming years.
Let’s look at another generation, Millennials, those born between 1981 and 1997. This generation is huge and it has ushered in the Social Media Revolution and the Technology Revolution. According to an article by the New York Times, Millennials outnumber Baby Boomers. Many of these Millennials have grandparents or parents (Baby Boomers) whom are unfortunately unable to retire because the 40-40-40 plan (explained in a later blog) doesn’t work. In a reaction against their predecessor’s career track, these young people move from job to job to attain the experiences and skills they need to start their own businesses, realizing that’s the true path to financial freedom. By running their own businesses, they are able to structure their own time. They can therefore check experiences off their bucket list earlier in life, as opposed to Baby Boomers, who have had to wait for their appointed retirement age to arrive. Furthermore, Millennials want to travel and have a good time.
In combination, these two demographics are driving the US tourism market to the point that the world travel market is expected to increase widely in the next 10 years. Perhaps it’s time you start profiting off this growing trend. If YOU want to travel the world for a better value and make money doing it, send me an email and I will show you how to accomplish both — how to get your own Old Spice Life! 🙂