Travel and Tourism Segmentation: traveler diversity, trip types, and the digital journey

By Jahy Carvalho

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In the previous article, the Travel and Tourism industry proved its strength and importance in the global and Brazilian economic landscape. Understanding the size of the "ocean" of opportunities from a macroeconomic perspective is essential.

By now, combining official data from the Ministry of Tourism (Mtur), Embratur, and IBGE, as well as insights from market references, the first part of an overview of Travel and Tourism industry segmentation will be presented. Embracing an analysis of main trip types, traveler profiles, different kinds of tourism, and their respective market shares. In addition, the traveler's digital journey diagram in the current scenario will be presented, extracted from a Deloitte study on The Future of Travel and Tourism.

Starting with the analysis of trip types, three main categories were identified: leisure, business, and purpose-driven travel (such as volunteering and studies). It is important to highlight that these segments may overlap, as an individual may combine different motivations in a single journey. However, despite these intersections, traveler profiles exhibit distinct characteristics, influenced by factors such as financial status, interests, and travel goals.

Leisure travel is highly diversified, encompassing families with or without children, couples seeking romance, groups of friends, solo travelers, adventurers, and backpackers. Other notable segments include LGBT tourism, accessible tourism for people with disabilities (PwDs), senior tourism, and technology-driven tourism, featuring travelers who utilize digital tools to plan their experiences (tech-savvy travelers). There is also a growing segment of remote workers who combine work and leisure in their travels (laptop luggers, bleisure travelers).

Business travel encompasses corporate travelers adhering to company travel policies, incentive program participants receiving unique experiences as rewards, executives attending meetings and conferences, and employees traveling for training and professional development.

Bleisure: defined as the perfect union of work and pleasure, transforming corporate travel into comprehensive experiences. Combining business with leisure, bleisure enables travelers to extend a business trip to explore new destinations.

Purpose-driven travel: trips undertaken with a specific personal, social, or cultural goal.

In the following sequence, the primary types of tourism will be delved into, including sun and beach, business travel, ecotourism, adventure tourism, religious tourism, tourism for people with disabilities (PwD), LGBTQ+ tourism, Afro-tourism, rural tourism, and study abroad and exchange programs. The definitions will adhere to the standards set by the Ministry of Tourism (MTur) and the Brazilian Tourism Board (Embratur), as well as insights from reliable institutions.

Sun and Beach - according to MTur, sun and beach tourism comprises tourist activities related to recreation, entertainment, or relaxation on beaches due to the combined presence of water, sun, and heat. Brazilian coastal beaches, although sharing the common characteristic of a sandy strip, present diverse particularities such as sand color and type, relief, waves, and slope profile. In many cases, crystal-clear waters, abundant marine life, and shades of blue and green in the sea complete the paradisiacal scenery.

Data from the 2020 Statistical Yearbook of Tourism, released by the Brazilian MTur, highlights the significance of this segment for Brazil. In 2019, 64.8% of the over 6 million international tourists who visited the country came for leisure and were motivated by sun and beach experiences. Moreover, Embratur's research on the "Visit Brazil. A Wow Experience" 2022 campaign positioned Brazil as the second most sought-after sun and beach destination among North Americans, second only to Mexico.

The global sun and beach market is promising. According to Allied Market Research, in 2022, it generated USD 214.3 billion and is projected to reach USD 357 billion by 2032, growing at a rate of 5.3% per year. In Brazil alone, international tourists spent USD 6.9 billion (BRL 34.5 billion) in 2023.

Furthermore, digital platforms such as Instagram, YouTube, and TikTok have been crucial in promoting sun and beach tourism. Digital influencers, through their content, inspire and recommend destinations, directly impacting the travel decisions of millions of people (see figure below):

How AI Shapes the Traveler's Digital Experience

Business Travel - the business travel and events (MICE) sector, according to data released by “Panrotas”, moved BRL 118.7 billion in 2023, an 11.4% increase compared to 2022. This segment involves corporate mobility services for companies of various sizes, both national and multinational, and relies on the work of specialized travel management companies (TMCs), hired to manage corporate travel programs; OTAs (online travel agencies), more suitable for companies with more autonomous travel policies and a preference for professionals who carry their laptops (laptop luggers); and companies specialized in organizing MICE events.

The main demands of companies that contract these services are safety, integrity, sustainability, and competitive pricing.

Globally, according to the GBTA (Global Business Travel Association), the sector moved US$ 1.43 trillion in 2023, representing 93% of the pre-pandemic volume. The projection for 2024 is US$ 1.48 trillion.

Ecotourism and adventure tourism are distinct segments of nature tourism, each with its unique characteristics. Ecotourism seeks sustainable interaction with the environment, promoting local development and the well-being of host communities, making them protagonists in the tourism scenario. According to the “Adventure Travel Trade Association” and the “World Tourism Organization”, Adventure tourism combines at least two of the following characteristics: physical activity, connection with nature, and immersive cultural experience.

Brazil boasts six biomes: I - the Amazon, the largest in the country, is home to over 2,500 species of trees and 30,000 plant species; II - the Caatinga, which covers 10 Brazilian states, is home to 1,487 animal species and over 27 million people; III - the Cerrado, which holds 5% of the world's biodiversity, recognized as the richest savanna on the planet; IV - the Atlantic Forest, which covers about 15% of the national territory and is considered a national heritage; V - the Pampa, with varied landscapes, from mountains and plains to rocky hills; VI - the Pantanal, one of the largest continuous wetlands on the planet.

The global ecotourism industry presents great growth potential. Forbes Magazine ranks Brazil as the top country for ecotourism practices. According to Statista, the global ecotourism market moved USD 172.4 billion in 2022 and is expected to reach USD 374.2 billion in 2028. Brazil, with its vast offer of natural destinations and its growing concern for sustainability, is well-positioned to take advantage of this growth. Brazil is ranking as the first country for ecotourism practices says FORBES Magazine

Adventure tourism also stands out in the country, having been elected the best adventure destination in the world by US News & World Report. The combination of stunning landscapes, challenging activities, and Brazilian hospitality make the country a paradise for adventurers.

Religious Tourism - Religious tourism is a type of purposeful travel motivated by religious reasons, involving visits to sacred sites, participation in rituals, and the pursuit of spiritual experiences. In Brazil, this modality is associated with the country's institutionalized religions, such as those of Oriental, Afro-Brazilian, Spiritist, Protestant, Catholic, and Indigenous origin, each with its own doctrines, hierarchies, temples, and rituals.

According to 2023 data released by MTur, religious tourism moved BRL 15 billion in Brazil, generating approximately 18 million trips with religious motivation, including Brazilians and foreigners. It is estimated that annually, approximately 50,000 trips by foreigners to Brazil are for this purpose.

The potential of religious tourism is evident on a global scale. According to Grand View Research, in 2023, the sector moved around USD 254.3 billion, with a projected annual growth of 15.3% until 2030."

People with Disabilities (PwD) represent a significant portion of the world's population. According to the WHO, approximately 16% of the global population, or 1.3 billion people, live with some form of disability. In Brazil, the IBGE estimates that this number is approximately 18.6 million people.

It is important to highlight that, in developed economies, about two-thirds of the PwD population has the financial means to travel. However, the lack of accessibility in many tourist destinations is still a barrier for many. Despite the existence of a high-quality study conducted by Mtur on a map of tourists with disabilities, the inclusion of people with disabilities in tourism is a challenge that requires the adaptation of infrastructures, services, and tourism products.

The LGBTQIAPN+ community represents a growing and economically powerful market. In Brazil, according to the 2022 IBGE census, 2.9 million adults self-identify as LGBTQIAPN+. This demographic data shows a higher purchasing power, travels more frequently, and seeks safe and inclusive destinations, especially those with Queer Destinations or Travel Proud Certified seals. Brazil leads the global ranking of countries with the highest proportion of self-identified LGBTQIAPN+ adults, with 15% of the population, according to an Ipsos study conducted in 30 countries. In comparison, the global average is 9%, according to the Global Advisor - LGBT+ Pride 2023 Survey.

The potential of LGBTQIAPN+ consumption is significant. In Brazil, according to the Jornal Estado de Minas, the spending power of the LGBTQIAPN+ population exceeds BRL 400 billion per year, representing approximately 7% of the national GDP. The São Paulo LGBT Pride Parade, which attracted over 2 million participants, is an example of the purchasing power of this audience, injecting more than BRL 600 million into the city's economy.

On a global scale, the International LGBTQ+ Travel Association (IGLA) estimates that the global consumption of the LGBT population moved around USD 3.9 trillion in 2019, evidencing the importance of this segment for the world economy.

Afro-tourism is a tourism approach that values the culture, history, and heritage of people of African descent, seeking to promote racial equity and the economic empowerment of Black communities. This type of tourism fosters entrepreneurship among the black community and promotes tourism in destinations with African ancestry, such as quilombolas communities. This definition is a freely adapted version based on the August 2023 Encontro de Consolidação e Promoção do Afroturismo document.

Brazil has great potential for Afro-tourism development, considering that the black and brown population represents more than 54% of the total population, according to the 2022 IBGE Census. Additionally, global research indicates that Black travelers seek authentic and meaningful experiences that value Afro-descendant culture and history.

An MMGY Global study revealed that travelers prefer destinations that offer authentic cultural experiences, safety, and comfort. The research, conducted in countries such as the United States, Canada, France, Germany, and the United Kingdom, indicates that these travelers are willing to pay more for trips that reflect cultural diversity and offer opportunities to connect with the Black community.

The study also revealed that in 2019, Black travelers in the US alone spent USD 109 billion on domestic trips. When international trips are added, the amount reaches USD 129 billion.

Additionally, another study released in oct/2024 by Tripadvisor in partnership with Group Black, identified four key factors, or four “Cs” that influence a traveler's decision to choose a destination:

·        Culture-Driven: experiences that align with their heritage, customs, and personal interests;

·        Comfortable: safety continues to be a top priority, with the desire to explore the world freely and confidentially.

·        Curated: planning, saving, and orchestrating a trip is just as important as the trip itself. (see figure).

·        Communal: social experiences, bringing along friends and family to share in the joy.

These characteristics and vocation make Afro-tourism a promising segment with great potential for growth and development, especially in Brazil."

Rural Tourism, defined by the World Tourism Organization (UNWTO) as a tourism activity linked to nature, agriculture, and rural culture, has grown significantly in recent years. Travelers seeking rural tourism are primarily families, groups of friends, and couples looking for relaxation, contact with nature, and authentic experiences.

These tourists value the quality of food, the diversity of activities, the quality of space and service, and tend to choose their destinations based on recommendations from friends and family. The main research and booking channels are the social networks (see figure) of the establishments, direct contact, booking websites, and travel agencies.

In Brazil, initiatives such as the Mtur's "Experiências do Brasil Rural" project, have been driving the development of rural tourism, connecting tourists to local producers and promoting the appreciation of regional culture and gastronomy. According to Future Market Insights, the global agritourism market shows great growth potential, projected to reach USD 160.9 billion by 2033.

Study abroad and exchange programs, according to MTur, encompass tourist movements generated by learning activities and experiences aimed at qualification, knowledge expansion, and personal and professional development.

Also according to the “Associação Brasileira de Agências de Intercâmbio (Belta)” a Brazilian Association of Exchange Agencies, the exchange market experienced significant growth in 2023, with a 21.68% increase compared to the previous year, moving around BRL 4.6 billion. For 2024, the expectation is for growth between 5% and 10%.

Belta's research identifies the three main motivations of exchange students: the opportunity to experience new cultures and countries, invest in languages, and acquire international experiences that combine study, work, and tourism. Many students also seek to develop their careers and acquire knowledge relevant to the job market. According to the ICEF Monitor, more than 100,000 Brazilians are currently studying abroad.

The global market for traveling students is also growing exponentially. According to Verified Market Research, the value of this market was estimated at USD 94.2 billion in 2024 and is projected to reach USD 148.2 billion by 2031, with a compound annual growth rate of 18.4%.

By this final topic, we explored the segmentation of the tourism market, analyzing some different types of travel and tourism, traveler profiles, and economic and social contributions. The data presented highlights the diversity of opportunities in this market, which is rapidly transformed by the digital revolution in travel, as illustrated by the traveler's digital journey diagram.

In the next article, the focus of segmentation will be on providers of products and services directly or indirectly related to the travel and tourism industry. This analysis is essential to understand the relationships between the different actors in the sector and to build cooperation projects that strengthen tourism as a whole.