niche and mass tourism products

Niche Tourism: Exploring Unique and Specialized Travel Experiences

Niche tourism is a growing trend in the travel industry, catering to specialized segments of the market. It is the antithesis of mass tourism, focusing on the needs and interests of a smaller group of travellers rather than targeting mainstream attractions and amenities. As the global middle class expands and becomes better educated, especially in developing and densely populated regions, the demand for niche tourism experiences has increased.

This type of tourism can be characterized more by the activities and experiences sought by the tourists than by their numbers in a particular destination. Examples of niche tourism include eco-tourism, culinary tourism, adventure travel, and wellness retreats. These specialized experiences allow travellers to delve deeper into a region’s culture, natural environment, or unique attractions while benefiting local communities and economies more sustainably.

The rise of niche tourism has also spurred innovation and adaptations within the industry. As a result, destinations, tour operators , and travel service providers need to rethink their approach to cater to these discerning travellers’ specific needs and interests, ensuring that their offerings resonate with the niche market and enhance their customers’ overall travel experiences.

Table of Contents

What is niche tourism.

Niche tourism refers to specialized travel experiences catering to specific interests, activities, or demographic groups . Unlike mass tourism, which targets a broad audience with generalized interests such as sightseeing, beach vacations, or cultural exploration, niche tourism focuses on delivering highly personalized experiences that meet the particular needs or desires of a smaller segment of travellers.

Whether it’s adventure tourism for thrill-seekers, ecotourism for environmentally conscious individuals, or medical tourism for those seeking affordable healthcare options abroad, niche tourism aims to offer something unique that appeals to a specific type of traveller. It often provides more in-depth, specialized, and meaningful experiences, as it takes into account the specific preferences and expectations of its target audience.

Types of Niche Tourism

Indeed, niche tourism focuses on specialized and personalized travel experiences that cater to specific interests, hobbies, or needs. The following are the various types of niche tourism:

Adventure Tourism

Adventure tourism is focused on travellers seeking an adrenaline rush. This can include activities like skydiving, paragliding, scuba diving, or mountaineering. The key here is the thrill and the experience of something challenging. The destinations are often exotic or difficult to get to, and there might be a focus on natural landscapes.

Ecotourism aims to be as non-intrusive and beneficial as possible for the environment and local communities. This type of tourism might involve trips to natural reserves, rainforests, or other important ecological sites. It often includes educational components to inform travellers about the environment, local communities, and ways to protect natural resources.

Culinary Tourism

Culinary tourism revolves around food and drink experiences. This could range from high-end dining in major cities to foraging expeditions in the countryside. Food festivals, cooking classes, visits to farms, or exploring local markets could also be part of the package. Wine, beer, and spirits tasting tours are also popular.

Wellness Tourism

Wellness tourism focuses on mental and physical well-being. This could involve travel to spas, holistic health centres, or places known for natural beauty and tranquillity. Activities may include yoga retreats, detox programs, or spiritual teachings.

Dark Tourism

Dark tourism involves travel to places historically associated with tragedy, death, or disaster. Examples include concentration camps, battlefields, memorials, and sites of natural or industrial disasters. The aim is often educational and memorial rather than voyeuristic, although this can be a matter of debate and ethical consideration.

Medical Tourism

Medical tourism travels abroad to receive medical, dental, or surgical care. The reasons can vary but generally involve cost efficiency, quality of care, or availability of specialized treatments. Countries like Thailand, India, and Mexico often attract medical tourists due to the cost-effectiveness and quality of medical services.

Cultural or Heritage Tourism

This type of tourism is aimed at experiencing the culture and history of a destination. This can involve anything from visiting museums and historical sites to attending local festivals and ceremonies. Some tourists may even seek out locations that explore their ancestry.

Wildlife Tourism

Focused on wildlife and its natural habitats, this can range from safaris in Africa to bird-watching in South America. Ethical considerations are essential to ensure that wildlife and their habitats are respected and preserved.

Sport Tourism

Sports tourism encompasses a variety of activities, including participating in a sports camp, attending a major sporting event like the Olympics or World Cup, or simply touring a famous stadium. Golf tourism is a subset that deserves mention, as many travellers organize trips centred around playing at renowned golf courses.

Religious Tourism

Religious tourism involves visits to sacred sites for pilgrimage, missionary, or leisure purposes. Mecca, Vatican City, and the Ganges River are destinations that draw massive numbers of religious tourists each year.

LGBTQ Tourism

LGBTQ tourism caters to the needs and interests of the lesbian, gay, bisexual, transgender, and queer/questioning community. This can range from gay-friendly hotels and beaches to events like Pride parades and LGBTQ film festivals.

Educational Tourism

Educational tourism focuses on learning experiences. This could involve studying a language abroad, participating in an archaeological dig, or taking a master’s class in photography while visiting iconic sites.

Film or TV Tourism

Some destinations attract visitors solely based on their appearance in movies or TV shows. For example, New Zealand has seen a tourism boom due to its portrayal as Middle-earth in the “Lord of the Rings” series, and fans of Korean dramas often visit filming locations in South Korea.

Wine Tourism

Wine tourism involves visiting vineyards and wineries to taste and purchase products directly from the source. It often includes guided tours explaining the wine-making process.

Activity-Based Tourism

Activity-based tourism is tailored around specific activities the tourist is interested in, such as scuba diving, fishing, or skiing.

Space Tourism

A very new and emerging type, space tourism aims to offer commercial trips outside of Earth. This is still mainly in the experimental stage but is becoming increasingly feasible.

Agri-Tourism

Agri-tourism involves participating in farm-based activities and gaining a closer look at the rural lifestyle. This can include activities like milking cows, picking fruits, and tractor rides.

Each niche tourism type has unique appeal, challenges, and ethical considerations. Understanding these can help travellers and providers create a more enriching and responsible experience.

Advantages of Niche Tourism

Niche tourism serves specialized segments within the tourism industry, catering to specific interests, demographics, or travel styles. There are several advantages that make niche tourism increasingly popular among travellers.

Firstly, niche tourism allows for a deeper, more authentic experience for travellers . Visitors can engage in activities and explore destinations that align with their passions or hobbies, such as culinary experiences, eco-tourism, or adventure sports. This personal connection can lead to a more satisfying and memorable travel experience.

Secondly, niche tourism benefits local communities by providing sustainable economic opportunities. Specialized markets often rely on small businesses and skilled artisans, which can spur job creation and economic growth.

Additionally, niche tourism helps to preserve local cultures and traditions as visitors seek to experience the authentic life and customs of the places they visit. This, in turn, encourages communities to maintain and promote their unique offerings.

Moreover, niche tourism can contribute to developing and promoting less explored destinations. By focusing on specific experiences and attractions, these destinations can differentiate their offerings from more mainstream tourist hotspots. This can lead to increased tourism revenue and economic development for lesser-known regions.

Niche tourism can also demonstrate a commitment to environmental and social responsibility. For example, eco-tourism and volunteer travel promote sustainable practices, such as resource conservation, wildlife protection, and community development initiatives. These tourism segments attract responsible, conscious travellers, reflect positively on the destinations they visit.

In summary, niche tourism offers significant advantages for travellers, local communities, and destinations. By catering to specialized markets, niche tourism enhances the overall travel experience, bolsters economies, encourages cultural preservation, fosters sustainable practices, and helps to promote lesser-known regions.

Disadvantages of Niche Tourism

Niche tourism, despite its advantages, does have certain drawbacks as well. One of the primary disadvantages of niche tourism is the  lack of economies of scale . This means that an operation with a lower production volume may face higher unit costs. Niche tourism activities tend to cater to smaller groups of tourists, leading to limited capacity for revenue generation.

Another challenge faced in niche tourism is the  lack of alternative revenue streams . Since these specialized tourism services cater to specific needs and interests, they may not easily adapt to market changes or diversify their offerings. This inflexibility can make niche tourism operations more vulnerable to economic fluctuations and industry trends.

Niche tourism can also lead to  over-reliance on a specific target market . Businesses focusing solely on niche markets may struggle to attract other types of tourists outside their specialization. This dependence on a limited market segment increases the risk of reduced revenues if the niche market experiences a downturn.

Additionally, because niche tourism focuses on specialized activities and experiences, there may be  limited access to resources, infrastructure, and expertise . This can make it challenging for niche tourism operators to maintain high levels of quality and safety, fulfil regulatory requirements, or stay up-to-date with advancements in technology and industry best practices.

Lastly, niche tourism can sometimes be at odds with  environmental sustainability . While many niche tourism products promote sustainable practices and experiences, some can have negative impacts on fragile ecosystems and local communities. For instance, certain adventure tourism activities may contribute to the degradation of natural environments by encouraging tourists to visit remote and pristine locations that may not be equipped to handle an influx of visitors.

In summary, disadvantages of niche tourism may include higher unit costs, lack of alternative revenue streams, over-reliance on a specific market, limited resources and expertise, and potential environmental impacts. While these challenges can make niche tourism less attractive for some businesses, it is essential to acknowledge these potential issues when pursuing specialized tourism operations.

Characteristics of Niche Tourism

Niche tourism is a fascinating facet of the travel industry, addressing individual tourists’ specific interests and needs rather than a generalized mass market. The defining characteristics of niche tourism include:

• Specialized Focus : Niche tourism concentrates on specific areas of interest or activities, whether wine tasting, bird watching, yoga retreats, or historical battlefield tours.
• Tailored Experiences : Unlike the one-size-fits-all approach of mass tourism, niche tourism is about providing tailored experiences that cater to its target audience’s specific desires and needs.
• Smaller Scale : Generally, niche tourism attracts fewer numbers compared to mass tourism. However, the emphasis is on depth and quality of experience rather than volume.
• Engaged Audience : Tourists drawn to niche activities are usually highly engaged and passionate about their chosen area of interest. They are often willing to invest time, effort, and money into gaining a deeper understanding or more enriching experience.
• Sustainable and Responsible Practices : Many niche tourism sectors prioritize sustainability and responsibility, particularly eco-tourism, agri-tourism, or community-based tourism. They often strive for a balance that benefits the local environment, economy, and society.
• Higher Per-capita Spending : Since niche tourism offers specialized experiences, travellers are often willing to pay a premium. This can lead to higher per-capita spending compared to traditional mass tourism.
• Deep Interaction : Niche tourism often promotes a deeper interaction between the traveller and the destination. For instance, cultural tourism might involve staying with local families, attending traditional ceremonies, or learning a local craft.
• Authenticity : One of the draws of niche tourism is the pursuit of authentic experiences. Travelers seek genuine interactions and experiences that are true to the locale, culture, or activity.
• Dynamic and Evolving : As societal interests change and evolve, so do the niches within tourism. For instance, wellness tourism has surged with the growing global focus on health and well-being.
• Less Seasonal Dependence : While mass tourism might concentrate on peak seasons (like summer vacations or winter holidays), niche tourism can often transcend seasonality. For example, bird-watching might attract tourists during migration seasons, while wellness retreats can be year-round attractions.

Niche tourism is characterized by its focus on specialization, depth of experience, and often a commitment to sustainability and authenticity. It offers unique opportunities for destinations to diversify their tourist offerings and for travellers to pursue their passions in depth.

Why is Niche Tourism Growing?

Niche tourism is experiencing significant growth due to a variety of interconnected factors. One key driver is the modern traveller’s increasing desire for personalized, tailored experiences that align with specific interests- adventure, culture, or wellness. Gone are the days when one-size-fits-all vacation packages appealed to the masses. Today, travellers seek unique, specialized experiences that cater to their tastes and preferences.

The rise of the internet and social media platforms has also played a crucial role in niche tourism’s growth. These platforms have democratized information, making it easier for travellers to discover and access specialized experiences. For niche tourism operators, digital platforms offer a cost-effective way to market unique offerings to a global audience, enlarging their customer base.

The quest for authenticity is another contributing factor. Today’s travellers are increasingly seeking “real,” meaningful experiences that allow for a deeper engagement with a destination’s culture, history, or natural environment. Niche tourism typically offers these kinds of in-depth, authentic experiences, whether participating in a traditional tea ceremony in Japan or trekking through a rainforest in Costa Rica.

Sustainability concerns have also given niche tourism a significant boost. With a growing global awareness of environmental issues, many travellers are seeking sustainable forms of tourism . Types of niche tourism like ecotourism, which focuses on environmental conservation and responsible travel, have seen a surge in popularity as a result.

Changes in demographics and lifestyle are also playing a role. As populations in many parts of the world age, and as people become more health-conscious, sectors like wellness and medical tourism are booming. Moreover, the economic benefits of niche tourism make it attractive for destinations. Specialized tourism often attracts a type of traveller willing to spend more on specialized experiences, helping to diversify a destination’s tourist income and making it less dependent on mass tourism.

Word-of-mouth recommendations and social media sharing of unique and specialized experiences effectively serve as free marketing for niche tourism. These shared experiences inspire and encourage more people to opt for specialized, off-the-beaten-path experiences.

The growth in niche tourism can be attributed to a combination of technological, social, and economic factors that have converged to make specialized travel more desirable and accessible.

The Impacts of Niche Tourism

Niche tourism can positively and negatively impact local communities, economies, and environments. Understanding these effects is crucial for sustainable development and responsible travel. Here’s a look at both sides of the coin:

Positive Impacts

• Economic Diversification : Unlike mass tourism, niche tourism allows destinations to diversify their sources of income. Tourists with specialized interests are often willing to spend more for specific experiences.
• Community Engagement : Like cultural and rural tourism , Niche tourism often involves deeper interaction with local communities, fostering mutual respect and cultural exchange.
• Conservation and Awareness : Ecotourism and wildlife tourism often funnel funds directly into conservation efforts, and they can also heighten awareness of environmental issues among travellers.
• Educational Value : Many niche tourism sectors have a strong educational component. Whether learning about a unique culture, ecosystem, or historical period, the educational aspect can enrich the traveller’s experience and broaden their horizons.
• Job Creation : Specialized types of tourism can lead to the creation of specialized jobs, potentially offering higher wages and skill development for local communities.
• Psychological Benefits : Wellness and medical tourism can provide direct psychological and health benefits to participants, offering therapies, treatments, or experiences that may not be available in their home country.

Negative Impacts

• Environmental Stress : Even ecotourism, if not managed properly, can put undue stress on local ecosystems. The influx of tourists can disturb wildlife, lead to pollution, and degrade natural habitats.
• Cultural Commodification : Specialized interest in local cultures can sometimes lead to the commodification of traditions and practices, where elements of culture are altered or staged for tourist consumption.
• Economic Dependence : Over-reliance on a particular form of niche tourism can make a destination vulnerable to economic fluctuations in that market.
• Accessibility Issues : Because niche tourism often caters to more affluent travellers willing to pay for specialized experiences, it could exclude less affluent local people from certain activities or areas.
• Resource Strain : Niche tourists often seek untouched or less-explored destinations, which might not have the infrastructure to support increased tourist activity. This can lead to resource strains on small communities.
• Exclusivity : Some types of niche tourism can inadvertently create an atmosphere of exclusivity, alienating local populations who may not be part of the target demographic (e.g., LGBTQ tourism, luxury tourism).

Understanding these impacts can help in the development of policies and strategies to maximize the benefits and minimize the downsides of niche tourism. This makes it crucial for stakeholders, from government bodies to tour operators , to engage in responsible planning and management.

Niche Tourism vs. Mass Tourism

Niche and mass tourism are two distinct approaches to travel and tourism, each with unique characteristics, benefits, and challenges. Here’s a breakdown comparing the two:

Niche Tourism:

Definition : Niche tourism focuses on specialized and targeted travel experiences that cater to specific interests, activities, or demographic groups.

Characteristics :

• Tailored Experiences : Offers specialized experiences for a select group of travellers with particular interests, such as ecotourism, medical tourism , or culinary tourism.
• Smaller Scale : Typically attracts fewer numbers than mass tourism, aiming for depth of experience over volume.
• Higher Per-capita Spending : Travelers are often willing to spend more for personalized experiences.
• Sustainable Practices : Many niche tourism sectors emphasize sustainable and responsible practices, especially ecotourism or community-based tourism.
• Economic Diversification : Allows regions to diversify their tourism revenue sources.
• Less Environmental Impact : With fewer visitors, there’s generally less strain on resources and infrastructure.
• Cultural Exchange : Promotes deeper interaction and understanding between tourists and local communities.

Challenges :

• Dependence : Over-reliance on a single niche market can be risky.
• Management : Requires specific strategies and policies to ensure authentic and sustainable experiences.

Mass Tourism:

Definition : Mass tourism caters to large numbers of tourists who typically visit popular destinations and attractions.

• Broad Appeal : Focuses on universally appealing destinations or attractions, like famous landmarks, beach resorts, or popular cities.
• High Volume : Attracts a large number of visitors, especially during peak seasons.
• Standardized Offerings : Packages and experiences are often standardized to cater to the majority.
• Economic Boost : This can provide significant cash injection into a region due to the sheer number of visitors.
• Job Creation : Creates numerous jobs in the service, transportation, and hospitality sectors.
• Environmental Strain : The large influx can strain local resources, lead to pollution, and degrade natural and cultural sites.
• Overcrowding : Popular destinations can become over-touristed, diminishing the experience for visitors and locals.
• Economic Dependence : If a destination relies too heavily on mass tourism , it can become vulnerable to economic fluctuations.

Key Differences:

• Scale and Focus : Niche tourism is about depth and specificity, while mass tourism is about volume and breadth.
• Impact on Destination : Niche tourism often has a smaller footprint and may invest more in sustainable practices, while mass tourism can bring economic benefits but also significant strains on a destination.
• Target Audience : Niche tourism targets specific segments or interest groups, while mass tourism aims for the broadest appeal.
• Economic Model : Niche tourism often results in higher per-capita spending but on a smaller scale, while mass tourism focuses on high volumes, often with lower per-capita spending.

In conclusion, while both forms of tourism have their merits and challenges, the choice between them often hinges on travellers’ individual preferences, as well as the goals and resources of the destination.

Niche tourism offers more personalized, focused experiences at the cost of potential exclusivity and specialized demands, while mass tourism generates significant revenue and accessibility but may lead to cultural and environmental degradation. Both forms have their merits and drawbacks, and destinations often aim for a balanced portfolio that includes both types.

Popular Niche Tourism Destinations

Niche tourism destinations are tailored to specific interests, from the serenity of wellness retreats to the thrill of adventure sports. Here are some popular niche tourism destinations that cater to various specialized interests:

• Costa Rica : Known for its rich biodiversity, Costa Rica is a hotspot for ecotourism, offering a variety of activities such as bird-watching, jungle treks, and conservation programs.
• Galápagos Islands, Ecuador : Famous for its unique wildlife and natural beauty, the Galápagos offer a quintessential ecotourism experience.
• Queenstown, New Zealand : Often dubbed the “Adventure Capital of the World,” it offers bungee jumping, skydiving, and whitewater rafting.
• Swiss Alps : Popular for skiing, snowboarding, and mountaineering.

Cultural Tourism

• Kyoto, Japan : With its ancient temples, traditional tea ceremonies, and geisha culture, Kyoto is a haven for cultural tourism .
• Rome, Italy : A paradise for lovers of history and architecture, offering ancient ruins like the Colosseum and Roman Forum.
• Bali, Indonesia : Known for its wellness retreats that offer yoga, meditation, and natural health remedies.
• Switzerland : Home to some of the world’s most luxurious wellness retreats, often set in stunning alpine locations.
• Bangkok, Thailand : Known for high-quality healthcare at affordable prices.
• India : Particularly popular for specialized surgeries and alternative treatments like Ayurveda.
• San Francisco, USA : Known for its vibrant LGBTQ community and events like the Pride Parade.
• Amsterdam, Netherlands : One of the most LGBTQ-friendly cities in the world, home to the first-ever gay marriage.

Rural Tourism

• Tuscany, Italy : Offers rustic experiences like vineyard tours and cooking classes.
• Himalayan Villages, India : Provides an escape from city life amidst snow-capped mountains and lush green valleys.

Activity-based Tourism

• Safari in Maasai Mara, Kenya : Offers wildlife spotting opportunities, including the Great Migration.
• Scuba Diving in the Maldives : Known for its stunning underwater life and coral reefs.
• Napa Valley, USA : Famous for its world-class wineries and vineyard tours.
• Bordeaux, France : Renowned globally for its wine culture.
• Spaceport America, New Mexico, USA : Virgin Galactic aims to offer sub-orbital trips to space tourists.
• Kazakhstan : The Baikonur Cosmodrome offers orbital space tourism, though at a very high price tag and less frequently.

Whether it’s the quest for adventure, relaxation, or deeper cultural experiences, these destinations offer something special for every niche traveller.

What is niche tourism and why is it so popular?

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Niche tourism is a term that I hear a lot these days. But what is niche tourism? Well, the truth is that it isn’t any one tourism type, rather it is a collective term used to group a number of types of tourism. It is an umbrella term .

Confused? Don’t be! It’s actually very simple, and in this article I will explain why….

What does the term ‘niche’ mean?

What is niche tourism, macro and micro niche tourism, niche tourism definitions, why has niche tourism become popular, advantages of niche tourism, disadvantages of niche tourism, examples of niche tourism, further reading.

Before we can understand what niche tourism is, we first need to understand what is meant by the word ‘niche’.

Niche (pronounced NEE-SH in the UK and NITCH in the US), refers to an area or position that is suitable for a small group of people.

As an adjective, niche can refer to a number of things, including:

In the context of tourism, niche is referring to products, services or interests that are shared by a small group of people.

Niche tourism is the umbrella term covering a range of types of tourism . Niche tourism products and services serve a specialised segment of the tourism industry.

Niche tourism is the antithesis of mass tourism . It is the opposite of large group tours, all-inclusive holiday resorts and overtourism .

Other terms that identify similar, small market segments include alternative tourism and special interest tourism .

Essentially, niche tourism identifies forms of micro (small) tourism.

As demonstrated in the diagram below, niche tourism itself can be categorised as a macro (i.e. big) type of tourism. Within this, a number of smaller tourism types can be identified. These are micro forms of tourism.

The list of micro tourism forms listed here is not exhaustive. For a more comprehensive list, take a look at my article on the different types of tourism .

The term niche tourism hasn’t been around that long. In fact, before the 1990s niche was most commonly used to describe marketing (Robinson & Novelli, 2005).

Definitions have evolved from the concept of niche marketing, so I think that it is useful to look first at how the term niche marketing is defined.

According to Toften and Hammervoll (2009), niche marketing can be understood as a focus on a limited market, which is generally considered to be appropriate for small or specialised businesses.

Stanton, Etzel, and Walker (1991) define niche marketing as ‘a method that meets customer needs by developing products and services especially suited to small markets’.

And Kotler (2003) describes niche marketing as a focus on clients who demonstrate a specific set of needs, available to pay a higher price to companies best suited to supply their demand for goods and services.

The most comprehensive text on the niche tourism phenomena was published in 2007 by Robinson and Novelli (2007). This book introduced us to the concept, outlining the notions of macro and micro tourism that I outlined earlier. In their book Robinson and Novelli outline a variety of different examples of niche tourism. Whilst, more than twenty years have passed since this publication, it still remains largely valid and useful, although there are now a wider range of tourism forms than there were at the time of writing.

More recently, in 2005, Novelli described niche tourists as independent travellers choose specialised activities to engage with social life and to become cosmopolitans.

Taking all of this into consideration, niche tourism can be defined as ‘an umbrella tourism form, which identifies macro and micro tourism segments appealing to a specific group of travellers’.

Niche tourism has grown in popularity a lot in recent years.

This growth is owed to the way that we have changed as consumers. People have become more sophisticated in their wants and needs. We know what we want and that’s what we want. The ‘one size fits all’ traditional package tourism model no longer suits.

Around the globe people have become more globalised and more educated. We want more than a nice pool and some evening cocktails from our holidays.

People want education and culture and adventure. And we can access these things through niche tourism provision….

I would love to share some figures with you to demonstrate this, but studies tend to focus on the macro or micro tourism forms, as opposed to niche tourism as a group. But hopefully you’ll take my word on that one!

Niche tourism is often viewed as being a more positive form of tourism than mass tourism. This is because it generally involves smaller numbers of tourists who (usually) leave less of a footprint. In fact, it is often associated by sustainable tourism and responsible tourism (rightly or wrongly).

Some of the advantages of niche tourism are:

• It is less damaging on the environment
• Tourists come in smaller numbers
• Tourists tend to be more courteous and respectful
• Niche tourists often pay more than mass tourists
• There is a genuine interest in the local area and people

Of course, these advantages are not a given. It is impossible to generalise such a broad group of tourism types!

There are also disadvantages of niche tourism. The main issue is the small size of businesses and an inherent over reliance on tourism.

Some of the main problems commonly noted are:

• A lack of alternative revenue streams
• Too many visitors are attracted
• Niche businesses take business away from elsewhere
• Some niches are not environmentally friendly, such as golf tourism.
• Small visitor numbers means that the economic benefits are limited
• Niche tourism activities can come in and out of ‘fashion’ and popularity

Ultimately, it is careful tourism planning and sustainable tourism management that will reduce any negative impacts of tourism. Therefore, it is actually a misconception that niche tourism is better than mass tourism. This statement is unfounded and is totally depends on the type of tourism that is in question.

There are many examples of niche tourism around the world.

Below I have listed some of the most common types of niche tourism. I’ve written in depth articles about many of these- click on the links to learn more!

• Adventure tourism
• Ancestry tourism
• Couchsurfing
• Cruise tourism
• Cultural tourism
• Dark tourism
• Disaster tourism
• Educational tourism
• Enclave tourism
• Food tourism
• Health tourism
• Homestay tourism
• Insta tourism
• Pro-poor tourism
• Rural tourism
• Sex tourism
• Slow tourism
• Smart tourism
• Space tourism
• Sustainable tourism
• Volunteer tourism
• Virtual tourism
• Bike-packing

If you are interested in learning more about this important industry, I recommend the two texts outlined below.

Niche Tourism: Contemporary Issues, Trends and Cases- provides an integrated picture of speciality/niche tourism as a whole looking at both the ‘macro’ and ‘micro’ niche area. It has a comprehensive theoretical framework, and discusses initiatives, policies and strategies adopted internationally. With an emphasis on linking theory to practice, it is underpinned by up-to-date international case studies from around the world.

The Long Tail of Tourism: Holiday Niches and their Impact on Mainstream – The ‘long tail’ of holiday offerings implies dramatic shifts in the sector’s concentration levels and its competitive dynamics. In order to examine the applicability and validity of this scenario, a number of key holiday niches are examined in terms of their demand development, supplier landscapes, operational challenges and future potential.

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The Emerging Trend of Niche Tourism: Impact Analysis

Journal of marketing research and case studies.

Corina Larisa BUNGHEZ

Bucharest university of economic studies, bucharest, romania, academic editor: alexandra cristina dinu, cite this article as: corina larisa bunghez (2021), “ the emerging trend of niche tourism: impact analysis", journal of marketing research and case studies, vol. 2021 (2021), article id 134710, doi : 10.5171/2021.134710, copyright © 2021. corina larisa bunghez. distributed under creative commons attribution 4.0 international cc-by 4.0.

This research paper addresses the current tourism global market shift towards a niche tourism approach and focuses on some of the most significant tourism forms in this growing sector, analyzing both the current development and future evolution of these tourism trends, also taking into account the current global pandemic situation. The enormous versatility and potential of the selected niches are assessed, and the impact that these activities will have on mainstream tourism is highlighted, both economically and socially, as this trend continues to expand and integrate itself in the tourism global marketplace. The niche sectors analyzed in this research paper will fundamentally transform the tourism industry in the near future and, inevitably, alter the consumer experience by bringing more services and experiences into the mainstream tourism sector.

Introduction

Mass tourism is an important part of our daily lives; niche tourism is also growing at a rapid pace. Started as an expensive and elitist concept, targeting sophisticated travelers, who were enthusiastically interested in pursuing a diverse range of activities, niche tourism is now readily accessible to most people, being one of the fastest growing sectors within the domain of tourism.

The term niche tourism has been borrowed mostly from the term niche marketing, which has adopted the concept from a newer discipline, ecology. Hutchinson is considered to be the first who used the term niche, referring to a region in a vast area that is characterized by environmental factors which disturb the welfare of species (Hutchinson, 1957). In this sense, niche tourism can be linked to the particular natural and anthropogenic resources of a region, to the characteristic lifestyle of the tourists that engage in this type of activity and to their social status and their financial resources, etc. The niche tourism market, which is characterized by its name, targets a small number of consumers when compared to mass tourism, but, at the same time, it is a constant tourism market. Niche tourism is more identified with what tourists are doing than their number in a particular destination, at a particular time.

Any discussion of niche tourism needs to be considered against the other extreme of mass tourism. The rise of mass tourism, fueled by the growth in the aviation sector in the 1950s and 1960s, also gave rise to the backpacker tourist who later became the highly specialized and sophisticated middle-class traveler of the developed world (Lew, 2008).

Over time, the transition from mass tourism to niche tourism has been a slow and cumbersome process that necessitated a large amount of material and human resources in order to develop the much needed new and specialized infrastructure. The development of this infrastructure in the past decades has allowed people to reach destinations all over the world in record time. Keeping with the accelerated technological advancement, tourism will continue to expand its digitalization process. There are more and more applications for niche services nowadays, that are extremely personalized. These special applications perfectly know their target consumers and offer them suggestions based on their budget, their family structure and their traveling and browsing habits. On the other hand, for destination managers and traveling planners, who want to use tourism as a mechanism for economic growth, focusing on niche tourism offers greater opportunities because this attracts consumers that are willing to spend more money.

In order to position niche tourism products, Novelli considers the notion of an increasingly experienced group of tourists demanding specialist holidays to meet their specific desires (Novelli, 2005). The presence of activities, tourist attractions, settlements, food services and other facilities make up the fundamental components of niche tourism regarding mixed destinations, being aware of consumer needs and wants. The focal point of the niche tourism market is the focus on the demands and the expectations of the customers. The relation between supply and demand is well taken into consideration because tourists are in a never-ending search for a more satisfying experience during their holidays (C.T., 2010). In a world in which monotony is becoming more pronounced due to globalization, niche tourism is defined by its diversity and by new ways in which it can differentiate itself from the competition. Niche tourism doesn’t have the negative implications that mass tourism has gotten along with its expansion, namely the negative impact on the environment and the degradation of socio-cultural relations.

If mass tourism is a standardized product aimed at a large segment of the market, niche tourism is situated at the opposite end of the tourism spectrum, being heterogeneous by nature and based on a larger demand for a more exclusive, unique and distinctive product.

The consumer is actively involved in the formation of a specific niche through its own consumerist practices. Because of this, in order to escape from the competition of mass tourism, the producer is no longer the sole identifier of adequate niche markets, because these niches are formed and developed by both producers and consumers, who act in a symbiotic mode in order to mutually benefit by it (Richards, 2011).

Over time, the different types of niche tourism have been presented in specialty literature in a random fashion. There are, however, some authors that have categorized them based on different criteria.

In order to better analyze the impact that certain types of niche tourism have over mass tourism, the classification made by Alex Papathanassis in his book, The Long Tail of Tourism, will be utilized (Paapathanassis, 2011). Tourism niches are built on persisting social trends such as:

• Sustainability (e.g. Eco-, Inclusive-, Agro-tourism)
• Experience-economy (e.g. Space-, Sport- & Extreme-, Military-, Film-, Dive-tourism)
• Self-development & individuality (e.g. Cultural-, Educational-tourism)
• Hedonism & voyeurism (e.g. Armchair-, Drug-, Sex-, Dark-tourism)
• Consumerism (e.g. Shopping-tourism)
• Conscious living (e.g. Health- & Medical, Religious-, Wellness-tourism)

Consumer experience in tourism is defined as a conglomerate of personal reactions and emotions associated with tourism activities (Sugathan & Ranjan, 2019). The creation of memorable experiences is necessary in order to attract new consumers and to keep the ones you already have loyal. All of the aforementioned tourism forms satisfy this requirement.

The impact of these forms of tourism is presented and analyzed in the following sections of the article, focusing on one form of tourism in each of the categories presented.

Ecotourism is considered to be a niche segment that targets a small category of tourists, when compared to mass tourism. Nevertheless, ecotourism is the sector with the biggest growth in all the niche tourism markets.

The consequence of broadly defining the borders of what constitutes to be ecotourism is the cause behind the difficulty of properly measuring and assessing the market share and the size of this segment. Even so, estimates tell us that ecotourism makes up for roughly 20% of the tourism global market.

The eco tourist is the individual who visits the less developed areas with an appreciative, participatory and selfless attitude. This type of tourist interacts in a noninvasive way with local flora and fauna and uses natural resources in a conscious, reserved manner, while contributing through voluntary work or funds that are directed to the preservation of the area and the economic welfare of the local community (Ziffer, 1989).

Ecotourism has two specific components: specialized operations and non-specialized operations. The non-specialized ones include all common elements characteristic to all forms of tourism: tourist guides, adequate clothing, tourism agencies, hotels and transportation. The specialized ones are those which refer to the specific activities of ecotourism: eco cabins and hotels in urban or more secluded areas (resorts), protected areas, eco thematic attractions, services in other inaccessible areas by interesting means and local tour operators (natives).

There are independent groups successfully promoted as ecotourism products: aboriginal/indigenous tourism (related to cultural tourism), ornithology, celestial ecotourism (aurora borealis, astronomical observations, astrophotography), hiking and nature observation, landscapes photographing, outdoor education and research, etc. (Weaver, 2008).        

Ecotourism attractions are primarily based on biodiversity and natural habitats that are, for the most part, unaffected by human activities. Thus, taking place in relatively isolated places, the current pandemic crisis will not impact this sector as severely as others. On the contrary, people will tend to visit more isolated places and ecotourism could benefit by this crisis. These zones require a specific conduct, in order to properly preserve and protect the tourism destinations so that they may keep their natural qualities and their sense of wilderness.

Ecotourism could indirectly compete with two tourist segments in terms of content and characteristics of the tourism product. These are cultural tourism and adventure tourism and they form, together with the ecotourism, what we call alternative tourism (Papathanassis, 2011).

It is estimated that the future development of ecotourism in terms of application will depend on several factors, such as: revenue growth; increasing the education level; increased leisure time; population growth; easier, cheaper, faster and safer access to ecotourism destinations; greater care for the natural environment and people’s feeling of alienation from it because of increasing urbanization and the development of technological elements.

Beyond all these elements, there is a necessity for properly trained people to educate the general tourists regarding the importance of nature conservation. Also, practicing ecotourism in these areas brings significant financial benefits that can be directed to further develop and maintain the natural parks and protected areas within the zone. Thus, ecotourism is a viable alternative for sustainable economic growth in these communities.

Space Tourism

Space tourism is an industry with extraordinary potential, but at present is limited by the conditions in which it can be done, because the prices are huge. Until the year 2019, the cost of a trip to the International Space Station aboard the Russian Soyuz spacecraft was 30 million dollars/flight. At present, the collaboration between NASA and SpaceX will inevitably lead to a commercial development. Axiom Space has already started the selling of tickets aboard the SpaceX capsule, at the price of 55 million dollars/ticket. The trip will last 10 days and will be directed to a privately funded orbital space station. Further technological advancement will massively lower the prices for space travel, starting with the amount of $200,000 that Virgin Galactic assigned in the beginning. Space travel will become more accessible to a greater number of people, especially in relation to the results of a market analysis, which has found that potential consumers are very price sensitive (Goehlich, 2005). A study shows that at least 10 million people from around the world would be willing to spend a year’s salary for space travel (Smith, 2001).

It is expected that the number of space travelers will grow somewhere to a million per year when the price of a ticket will be under $ 10,000. According to research, rich and adventurous young people seem to form the most suitable target market due to their care-free rebellious character and the low comfort level that they are willing to accept in order to be among the first passengers in space (Crouch, et al., 2008). A study made by Futron Corporation in 2002 made the prediction that by 2021, the suborbital flight market will reach 15.000 passengers/annually, bringing in revenue of about 700 million dollars (Futron, 2002). We are in 2021 and this approximation is totally unattainable in the current global context. But it can be safely assumed that the number is not unachievable and we may see this happen in a few years. Another study made in 2006, in which 783 high income Australian respondents participated, showed that those who were mostly interested in space travel were thrill-seeking young men (Devinney, et al., 2006).

The economic potential of the development of space tourism is extraordinary. This type of tourism will bring massive economic and social benefits in the future, because it can be estimated that it will undoubtedly surpass aviation on Earth.

The progress of the space tourism sector would generate, alongside the indirect technological and scientific advancements, an important direct economic component that will lead to the exponential growth of this sector.  Because space tourism has the potential of becoming its own branch in the tourism industry, the effects of this economic development will be significant, both for the companies and industries involved in the process, and for the evolution of our society as a whole. In this type of endeavor, the investor’s primary concern is the return of the investment and the generation of profit. In order to do so, every process involved will be thoroughly made as efficient as possible. Space activities will therefore become a massive economic generator and the launch costs will dramatically plummet, which will lead to an acceleration in the further development of this industry.

Space tourism will become an activity that will include a very large number of people (both operators, and beneficiaries) and will generate important commercial profits in the next few decades. It is imperative that we recognize and realize the fact that, in the near future, space tourism may become as common as other forms of tourism. However, since the reality of space tourism is still quite far away, it may be safely assumed that the current Covid pandemic will not influence this branch of niche tourism. Because of the sensational experiences offered to the consumer, space tourism will become a major sector of the entire tourism industry, transforming this niche branch of tourism into one of the most important tourism activities of humanity.

Cultural Tourism

Cultural tourism is the most dynamic contemporary form of tourism, being interested in the lifestyle and traditions of particular communities or regions, built or natural heritage, artistic performances and products, cultural hubs and landscapes.

The first appearance of cultural tourism as a research topic has its origins at the beginnings of the 20 th century, but only in 2002 did the International Council on Monuments and Sites publish a formal definition regarding this form of tourism: cultural and cognitive-cultural tourism is the form of tourism that is focused on the cultural environment and that includes historical and cultural landmarks within a destination, and the values, arts, crafts, traditions, habits and lifestyle of the local populace.

Cultural tourism is defined by the World Tourism Organization (WTO 2012 Report) as “journeys whose primary or secondary purpose is the visiting of sites and the participation in events that represent a cultural and historical component which is part of a communities’ cultural heritage”. There are serious cultural and heritage/historical tourists who are motivated by the inherent characteristics of cultural sites and, at the other end of the spectrum, there are people who accidentally visit such venues but are not truly interested in the sites’ inherent cultural and heritage assets (Morrison, 2013).

Cultural tourism includes, besides visiting historical sites, the opportunity to learn more about past human achievements. As a part of domestic tourism, these visits are a great source of admiration, national pride and learning about ancestors.

The complexity of cultural tourism is further generated by customer motivation diversity, induced by differences in education levels, tourism experience, quality of life and quality of the tourism products being offered (Davidson, 1993). Also, cultural tourism has been identified as one of the most rapidly growing areas of global tourism demand (Richards, 2005).

Cultural tourism is an important instrument for economic growth, generated by attracting visitors from outside the local host destinations. These visitors are partially or generally motivated by an interest in historical, artistic and scientific components, or by information regarding the lifestyle, the realities and the traditions of a particular community, region, group or institution. This kind of voyage focuses on the study of the cultural landscape, and this includes visual and theatrical arts, values, traditions, events and lifestyle. Cultural tourism is especially interesting for suppliers because, as a rule of thumb, people that focus strongly on cultural attractions spend more money than regular tourists. Also, they show a tendency toward staying longer at the destinations, which, in turn, brings even more revenue (Richards, 2007).

Because cultural tourism isprimarily focused on the visiting of cultural venues or museums and experiencing artistic products and performances, the current global pandemic has affected, to some extent, this important tourism sector. But people will always be interested in the lifestyles and traditions of different cultures, and as soon as the Covid pandemic loses momentum, we will definitely see a resurgence in cultural tourism demand.

Armchair Tourism

The one thing that history has taught us is that people are most innovative in difficult times. This also applies to the travel industry, where professionals and brands are doing their best to keep the interest in traveling at a high level, despite the current global Covid pandemic situation. This has resulted in the surprisingly successful overnight growth of armchair tourism. This adaptation happened because tourism is going through one of its darkest periods in a long time, and tourism specialists find themselves in the impossibility to change this situation. Indeed, this isn’t the greatest of times for classic travels, but, in the meantime, we can opt for virtual travel. If, until more recently, the trend of virtual tourism was relatively ignored, because people preferred real experiences, more and more people are now glad that the technology that enables this type of tourism has advanced so much that it can now facilitate easy and comfortable access for many willing tourists.

Because lately, due to the current global pandemic, tourism has been mostly relegated to rescheduling holiday plans or postponing them, the phenomena of armchair tourism is currently growing at a rapid pace, enabling us to travel all over the world, virtually. 

If tourism is not seen as a physical change of the hereabouts but rather as a change of ones’ psychological state of recreation, education, adventure, or other purposes associated with tourism, armchair-tourism can also be included (Mazanec, et al., 2002).

Armchair-tourism has three main parts: books, television and the internet. Until the emergence of the internet, books were the armchair-tourism media because they were the best information source for life there. Nevertheless, new media has slowly overtaken the time spent on reading. Armchair-tourism such as travel magazines or cultural documentations are more focused on consumers aged 40 and older. Nevertheless, the younger generation should not be neglected since new developments will enhance the experience of watching TV, increasingly attracting younger viewers (Papathanassis, 2011).

Many tourist boards are nowadays using more and more virtual content in order to attract customers and to encourage future visits. These can come in the form of digital events, which provide enriching cultural content and livestreaming video talks using live content from experts, partners and notable individuals. Tourist boards will also use dedicated web pages on which they will promote virtual experiences. Museums, safaris, or other interesting venues can therefore be experienced while enjoying the comfort of your own home.

There are destinations and travel brands which can keep the magic and inspiration of traveling alive even if it is virtually, from the armchair. Many travel brands and destinations are working on the premise that if the travel consumer can’t come to us, we will go to the travel consumer. There are digital platforms where a plethora of extraordinary destinations can be accessed and visited by virtual means. Over 2500 museums all over the world are providing virtual tours for those who are interested. During these tours, tourists can enjoy rooms, shows and events, in which they can participate virtually.

Also, the exponential evolution of technology has another benefit. Even if virtual reality is, at present, only capable of recreating, to a limited degree, the destination that is being visited, we now have another tool at our disposal: augmented reality. This changes the way in which a visitor can explore a destination in real time. Augmented reality is the technology that gives the visitor information that can be superimposed over the real time landscapes or streets, using a digital device. This technology is being used in order to animate history and to bring back life into exhibits found in the most important museums and venues of the world. Having all these means at our disposal, we can therefore travel anywhere, anytime and we are no longer dependent on the caprices of weather or the uncertainty found in difficult times, such as the one we are experiencing nowadays.

Shopping Tourism

As studies have shown, shopping is one of the most sought out activities no matter where tourists go (Timothy, 2003). This activity gained traction with the development of theme parks, of malls and designer shops. Visiting a theme park or going shopping in another country and even inside the borders of your own country has become, for many tourists, a purpose in itself. Bill Bryson, an American travel and humor book author said that in the past, people used to build civilizations, but now they build shopping malls. Another American author, Erma Bombeck, affirms that the chances of entering into a store to buy a loaf of bread and exiting with just a loaf of bread are three billion to one. These aspects emphasize the worldwide consensus that, in our society, humans are unable to function without constantly going shopping.

When trying to define this special tourism sector, only one facet can be defined clearly, namely that this kind of tourism includes the purchase of goods, the most typical being clothes, shoes, leather goods and luxury foodstuff (Friedrich, 2006).

The main advantage a tour operator could enjoy is the fact that shopping tourism has a positive economic impact on the destinations and limited negative environmental and socio-cultural effects. Meaning local life, natural environment and cultural sites are not going to be disturbed nor destroyed since many traditional malls, factory outlets, and markets do already exist. To be more precise, economically, this implies: more secure jobs, as the malls will have a continuous number of visitors; tax income will increase due to the value-added tax (VAT) of more sales; shopping tourism does not seem as seasonal as other tourism products; in addition, foreign tourists will increase the balance of payments (Papathanassis, 2011). Also, the environmental impact is almost non-existent, this not being the usual norm with tourism activities. This happens because, neither accidentally nor by design, wildlife killing or vegetation being destroyed by tourists do not occur. There is also a socio-cultural impact: a shopping mall is visited by locals as well as national or international tourists, and as such, it is seen as a positive attraction since access is not limited to neither of the two groups (Swarbrooke, 2002).

The Covid situation has temporarily shifted this type of tourism to a more domestic focused approach. People are now more inclined to go shopping in local tourism destinations. But shopping has become a life-dictating activity for many people, and even in the current difficult pandemic context, everybody goes shopping and we have become dependent on it.

Wellness Tourism

In our fast-paced society, we tend to often forget about ourselves. Because of this, health issues can arise due to stress, exhaustion and living a sedentary life. All these problems can be fixed by escaping into wellness centers. For more and more people, wellness is no longer a trend or a necessity, but has become a lifestyle.

The wellness industry has grown substantially in the last years, at a global level. The numbers are continually growing and the market value of the wellness industry has reached 580 billion Euros. Lots of hotels, airports and corporations have understood the importance of wellness, and thus provide some kind of wellness services to both guests and staff.

The wellness world is a global economy made out of multiple components: beauty and care, fitness, nutrition and alternative medicine. A popular perception regarding the importance of healthy diets, fitness and other health practices has been developed into whole new business sectors. As the healthy lifestyle movement gains more and more traction, auxiliary markets, ranging from food and beverage to hospitality, start offering more products that reflect the values of the health-conscious consumers. This is another example of the multiplier effect of tourism. Additionally, the Covid situation is the perfect incentive for healthier lifestyle choices. Thus, people are becoming more aware of the importance of overall health management and are more readily willing to pay for these kinds of services.

Wellness tourism is defined in the specialty literature as traveling associated with the practice of maintaining or improving personal states of being.

From 2015 until 2017, the wellness tourism market has grown annually by a margin of 6,5 %. Until 2022, GWI anticipates that this market value will reach 919 billion dollars – representing 18% of global tourism – with over a billion wellness-oriented travels all over the globe (GWI, 2018).

Today, wellness tourism is much more than just the destination or the activities – it is an extension of the traveler’s lifestyle and values. The wellness tourism sector is a large spectrum one, and offers are divided between many categories: fitness, healthy nutrition, therapeutic treatments (massages, beauty procedures). But every one of them is centered around enhancing the tourist state of being and state of mind.

Further opportunities are given to current trends, such as the alternative forms of medical therapies from Asia. However, these trends have to be recognized early enough and then must be implemented through serious, high-quality products. Beside the competitive criteria, such as price, or the kind and quality of services provided, the importance of the attractiveness of the surrounding area as a choice criterion should not be underestimated (Papathanassis, 2011).

Specialists estimate that, if the consumers’ appetite for wellness services maintains its rate of growth, the wellness global tourism industry will reach one trillion dollars in the shortest of time.

Conclusions

There is enormous potential with all of the emerging niche tourism products presented in this paper. All of them arguably represent what one may designate as a megatrend, either at present or in the near future. Additionally, each of the selected products has incredible versatility because they don’t target a particular “special” group of consumers, but instead, they appeal to a larger proportion of the population. In other words, the niches examined are not mutually exclusive in terms of their target market. The phenomena of tourism globalization by developing infrastructure and thus new destinations, and the technological advances in human transportation, with the usage of the mega-ship or the implementation of large-scale commercial space travel, will transform these megatrends into tourism behemoths, and will result in the creation of new specialized holiday niches that will generate huge profits and further expansion. The examples presented show a promising outlook for each of the niches examined, as the current global pandemic cannot but temporarily slow the inevitable growth of these tourism sectors.

There are three main aspects of the tourism industry that can be synthesized from this paper. Firstly, the tourism sector is in a constant, ever-growing direction, with more and more people willing to spend money in tourism activities. Secondly, the mainstream holiday package isn’t as stable as it used to be, and it can be said that the current crisis in the world is a major influencing factor. Thirdly, there are some tourism niches that have great appeal and show incredible potential for the near future.

However, there are three more tour operating aspects that have to be taken into consideration when making assertions: the capacity risk, the consumers’ perceived risk and the unknown reaction of the large tourism groups.

Higher profits can be generated when entering and developing niche markets. Because of this, there are many mainstream companies that have already entered into a number of niche markets. The technological advancement can thus be utilized by specialists in order to benefit, in a sustainable way, from each particular niche selected. Moreover, tourists are more pleased because the holiday experiences are tailored to their needs and wants, making the product more individualized and consumer-oriented. For the tourism industry as a whole, the growing of niche markets can be seen as a “holiday” from the usual negative practices regularly associated with mainstream tourism, such as environmental irresponsibility and questionable ethics. This means that when niche tourism fully matures and inevitably integrates itself into mass tourism, becoming mainstream, it will carry its benefits into the new tourism industry.

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Niche Tourism is now recognized across the entire industry with many companies looking to differentiate their brand from others. Niche tourism has many synergies with the experience economy because niche tourists are constantly searching for engaging and unique experiences which match their interests.

In recent years, mainstream holiday providers have identified niche tourism as a potential growth area. Subsequently, niche tourism is no longer confined to small independent companies. Many large conglomerates such as Expedia, TUI and Booking Holdings have globalized the niche tourism industry through mergers and acquisitions and brand extensions, globalizing the sector.

However, the globalization of niche tourism has arguably reduced its authenticity. Many large travel intermediaries now market to mass tourists. Cruise operators are a prime example of this, where they can often carry thousands of tourists on an all-inclusive basis, serving food and drink which meets the demands of the typical mass tourist. All the while, many are advertising 'authentic' experiences such as walking tours, wine tasting, cookery classes and festivals - all of which are considered types of niche tourism.

COVID-19 has altered traveler demands which has created an opportunity for tourism businesses to innovate and develop their product. Many people have been confined to homeworking, lockdowns, and social distancing intermittently for the past two years, creating a desire to enjoy wider, 'greener' spaces while engaging with others.

As a result, there is a significant opportunity for niche tourism companies involved in rural and adventure tourism to grow their product. Research from the the publisher Ads database suggests that operators targeting these types of tourists will receive strong support from DMO's (Destination Marketing Organizations) as many are actively targeting this market.

Key Highlights

• Niche tourism within the travel industry can no longer be considered 'small'. With a growing global middle class and better-educated population, particularly in developing and densely populated countries in the APAC region, more tourists seek more wholesome, immersive, and fulfilling touristic experiences. The experience economy also plays a large part, with many travel products now commoditized due to the online travel boom and the emergence of price comparison sites. The future of travel is providing a more fulfilling experience. With many core travel and tourism companies such as hotels and airlines aiming to create more brand loyalty, changes to the 'traditional' travel product are likely.
• In recent years, the maturing tourism market has shifted tourists away from the annual 'sun and beach' getaway to develop an experience more aligned with holidaymakers' specific hobbies, interests, curiosities and needs. As the publisher shift to a world with increasingly more leisure time, there is a greater desire to maximize each experience. Leisure tourism is now a broad term for traveler motivations as niche tourism is a critical element to consider as consumer attitudes shift towards more special interest travel. Although this consumer behavior ripples across all age groups in tourism, it has become particularly relevant among younger adults such as Millennials and GenZ.
• The tastes of Gen Z and Millennials are helping to drive some forms of niche tourism to the next level. Over the past three years (2018 to 2021), the publisher has surveyed adults regarding their typical holiday across several generations. The publisher has discovered that a higher proportion of younger adults typically book niche holiday types such as adventure, sport, gastronomy, and LGBTQ within these surveys.
• Ecotourism saw the most significant increase of respondents within the the publisher consumer surveys, growing by 5% between 2018 and 2021 (14% to 19%). Sustainable travel has become a significant issue within the travel industry, and there is a growth in the 'responsible tourist'. Key public figures in popular culture such as David Attenborough have highlighted the impacts of human consumption on global warming. At the same time, activists such as Greta Thunberg have become a significant global influence, particularly on younger generations who are increasingly concerned about their future on the planet.
• This thematic report provides an overview of niche tourisms role within the travel sector today and how it will continue its involvement.
• The key trends within this theme are split between enterprise trends and tourist trends that are recognizable today.
• Several case studies are included to analyze the multiple ways travel companies such as tour operators, travel agencies, DMO's and cruise lines have tried to capitalize on niche tourism.
• Our unique thematic analysis then looks at recommendations for travel and tourism organizations and a deep dive into the leaders and laggards within the niche tourism spectrum, complete with industry examples and analysis.

Key Topics Covered:

• Executive Summary
• Thematic Briefing
• Consumer trends
• Enterprise trends
• Industry trends
• Industry Analysis
• Holidays are becoming more varied
• Case studies
• Impacts of niche tourism
• Tourists are searching for more immersive experiences
• Overtourism
• Social impacts on local communities
• Recommendations
• Mergers and acquisitions
• Value Chain
• Third-party suppliers
• Direct suppliers
• Ancillary suppliers
• Public companies
• Private companies

Companies Mentioned

• Alux Caverna Lounge
• Booking Holdings
• British Airways
• Carnival Corporation
• Celebrity Cruises
• Chernobyl Tour
• Comcast Corp
• Despagar.com Group
• Expedia Group
• Friendly Planet Travel
• GAdventures
• Genting Malaysia
• Gourmet on Tour
• Hays Travel
• Hemingway's Lounge
• Intrepid Travel
• Kimpton Hotels
• Merlin Entertainments
• Las Vegas Sands
• MGM Resorts International
• Miral Asset Group
• Norwegian Cruise Lines
• Makemytrip.com
• On the Beach
• Rainforest Cafe
• Responsible Travel
• Seaworld Parks and Entertainment
• SIM Holdings
• Soviet Tours
• The Northern Lights Bar
• Virgin Atlantic
• United Airlines
• Universal Studios
• Walt Disney
• Wynn Resorts
• Young Pioneer Tours

For more information about this report visit https://www.researchandmarkets.com/r/mgjit2

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Edinburgh Napier University

05 April 2010

Publication Status:

Unpublished

Library of Congress:

HF Commerce

Dewey Decimal Classification:

338.4791 Tourist industry

Ali-Knight, J. The role of niche tourism products in destination development. (Thesis). Edinburgh Napier University. Retrieved from http://researchrepository.napier.ac.uk/id/eprint/5376

Prof Jane Ali-Knight 

Professor Business School

 0131 455 4392

  [email protected]

   

Niche Tourism; niche products; destination marketing; destination development;

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Development, Political, and Economic Difficulties in the Caribbean pp 149–166 Cite as

Niche Focused Tourism Development in Small Island Developing States: The Case of Trinidad

• Acolla Lewis-Cameron 2 &
• Narendra Ramgulam 3  
• First Online: 24 January 2019

241 Accesses

The sustainability of small island developing states depends in part on the extent to which these islands can diversify their product offerings in the midst of an increasingly competitive global tourism marketplace. Several approaches to niche focused tourism development have been identified. The focus of this chapter is an analysis of the stakeholder-informed approach adopted by Trinidad in determining its niche tourism products for development. This approach allowed for the inclusion of diverse perspectives and generated a high degree of consensus among the stakeholders. However, there was insufficient focus on external factors that influence niche product development. A more balanced approach is required that considers both the internal and external environments. Further, it is recommended that a balance scorecard model be adopted to rank identified niches as it provides a quantitative dimension to a qualitative process of niche selection.

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Lewis-Cameron, A., Ramgulam, N. (2019). Niche Focused Tourism Development in Small Island Developing States: The Case of Trinidad. In: Bissessar, A. (eds) Development, Political, and Economic Difficulties in the Caribbean. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-02994-4_8

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