Develop greater capacity for adaptation and customization in response to changing market demands

Category
TRAVEL AGENCY AND ORGANIZATIONAL SERVICES

Lesson Learned

While most tourism SMEs are aware of the evolving demands in the tourism sector, many are not fully prepared to respond to these changes or take the necessary actions for long-term sustainability. If provided with targeted training, assistance, and tools, these SMEs could better adapt to shifting tourist demands and market dynamics, contributing to the sector’s long-term sustainability.

A notable example of successfully adapting to changing tourism needs is Milagro Travel, a local travel agency based in Salerno. The agency diversified its offerings to meet the growing demand for comprehensive and customized travel experiences, particularly following the Covid-19 pandemic. By focusing on personalization, Milagro Travel developed specialized packages for different target groups, including families, youth travelers, corporate clients, and event organizers, thereby enhancing the overall customer experience.

A key lesson from this case is the importance of business adaptability in the tourism sector, particularly when responding to the increasing demand for sustainable and customized experiences. Public-private collaboration is essential for supporting this transition. Effective partnerships between government, employers, workers’ organizations, and other key stakeholders along the tourism value chain can help implement recovery plans and promote sustainable tourism models. This aligns with recommendations from the UNWTO, which emphasize the need for inclusive and participatory approaches to recovery and resilience in the tourism sector.

Moreover, the creation of networks for knowledge-sharing and best practice exchange—especially among cities recognized for their achievements in smart tourism, sustainability, and innovation—can be highly beneficial. Such networks can provide a platform for tourism SMEs to access information, collaborate on sustainable tourism models, and share insights on market trends. Several EU-funded projects, such as Interreg MED’s initiative to promote alternative tourism models and Erasmus+ projects focused on strengthening vocational education in cultural and green tourism, have underscored the importance of these collaborative efforts.

In conclusion, the lessons learnt emphasize the need for SMEs in experiential tourism to develop greater capacity for adaptation and customization in response to changing market demands. Moreover, the role of BSOs and tourism associations in delivering training, workshops, and timely market information is critical. Multi-stakeholder cooperation between tourism entrepreneurs and public tourism offices is also essential to ensure that the tourism sector evolves in a sustainable and resilient manner, meeting the growing demand for innovative and sustainable travel experiences.

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