Small Business Labs

Academic Paper Defines Digital Nomadism and the Five Types of Digital Nomads

An excellent academic paper - What is a digital nomad? Definition and taxonomy in the era of mainstream remote work - was recently published by the World Leisure Journal. 

Based on extensive research, the paper provides a detailed definition of digital nomadism. Key quote:

Digital nomads use digital technologies to work remotely, they have the ability to work and travel simultaneously, have autonomy over frequency and choice of location, and visit at least three locations a year that are not their own or a friend's or family home.

We like this definition because it provides more specificity than other definitions, including the one we use. In particular, we think "have autonomy over frequency and choice of location" is an important addition to the definition of digital nomads.

Clarity around trend definitions is an underappreciated issue. Since we study emerging trends, we regularly see the problems associated with the lack of consistent trend definitions. 

For example, the lack of a clear, consistently used definition of the "gig economy" continues to cause problems - especially confusion among policymakers.  

The paper also defines five types of digital nomads, illustrated in the paper's chart below (click to enlarge).

Like most academic journal articles, the paper extensively reviews academic research (with links) on digital nomads. 

Literature reviews are often one of the most beneficial parts of academic papers. We often find new sources of useful information in these reviews. 

We were interviewed by the author, anthropologist Dave Cook, and some of our work on digital nomads is cited.  

Digital Nomads are Life Goal Champions

Independent workers (freelancers, independent contractors, gig workers, etc.) who are also digital nomads score significantly higher than independent workers in general and workers with traditional jobs in achieving their life goals.

The chart below (click to enlarge) is from the MBO Partners research brief Life Goals: Explore the Great Realization In Depth.

It shows that Independent digital nomads score the highest in 7 of 8 life goal categories. They tie for the highest score in the 8th goal, spending enough time with family.

Digital nomads score exceptionally high on getting the most out of life (79% report achieving this life goal), continued personal growth (74%), and ensuring their life has a purpose (71%).

In addition to scoring high on life goals, independent digital nomads have among the highest work satisfaction rates of all workers. Ninety-two percent of independent digital nomads report being highly satisfied (81%) or satisfied (11%) with their work and lifestyle.

No doubt, visiting new places, being exposed to new cultures, and meeting new people all play a role in these high scores.

Another factor is that most digital nomads report high work/life flexibility, autonomy, and control levels. Our research shows that independent workers who report having work/life flexibility, autonomy and control also report high levels of work satisfaction and happiness. 

See the research brief for more details.

Emergent Research (that's us) worked with MBO Partners on this study.

Skift's Travel Industry Megatrends

Skift is a travel industry analyst firm and one of our favorite sources on travel trends. Much of their content is behind a paywall, but they also produce free content (we subscribe to several of their newsletters).  

We follow travel trends because of our interest in remote work and digital nomads. We're also active travelers, so we like travel trends.  

They recently released their 2023 Travel Megatrends report. It covers 22 travel and travel industry trends.

Two trends jumped out at us. 

Blended Travel Comes of Age covers the growth of travel that includes work and leisure. Key quote:

"The pandemic has led to a permanent change in how we live our lives between work and the personal. No longer just a trite category called "bleisure," the idea of blended traveling is front and center for every major travel company now. How new strategies focused on the blended traveler will emerge more clearly in 2023, as the industry recognizes the whole traveler holistically." 

As the Skift chart below shows (click to enlarge), the share of business travel that includes a weekend has increased substantially since the start of the pandemic.

Because of the growth of blended travel, the entire travel industry is trying to figure out how to serve this market segment better.

The other trend that caught our eye is The Anywhere Traveler Puts New Destinations on the Map. Key quote:

"Millennials now surpass Boomers as the largest sector of the U.S. population, giving rise to a new class of "anywhere travelers." This group has a strong passion for experiences that take them to less obvious destinations. These habits, in their own way a new form of balancing overtourism, will put new destinations in focus."

We like this trend for several reasons.  

First, It illustrates one set of impacts due to the aging of baby boomers. Aging boomers will have many economic and societal impacts, and these, in our opinion, are being underestimated.

And second, the Anywhere Traveler will increasingly be a remote worker or digital nomad.  

The other 20 trends are also interesting, and the report is well worth reading for anyone interested in shifts and trends.

Digital Nomad Programs for Families

Digital nomads traveling with children are not unheard of. But because of the challenges of traveling long-term with kids, there are relatively few digital nomad families.  

That's why we found The Florentine's Digital nomad community Boundless Life expands to Tuscany. It covers the firm Boundless Life, which describes itself as "Your family's complete solution to living around the world."

This includes, according to Boundless Life, "Forward-thinking education, furnished homes, coworking space and a wonderful community of like-minded families."

Their education program jumped out at us.  

As far as we know, they're the only organization that provides schooling for kids (ages 1-12) as part of their remote work/digital nomad service offering.  

Boundless Life offers 3-month summer and 6-month programs in Portugal, Greece, and Italy. The picture below (click to enlarge) is from their website. It provides more details on their locations.

The schools are taught in English, with the programs based on the Finnish curriculum, which Boundless Life describes as "world-renowned." Not knowing anything about Finnish schools, we checked with several local school officials. They confirmed that Finnish schools are highly regarded.  

Boundless Life is another example of the rapidly growing array of programs and services targeted at digital nomads.  

These services aim to reduce the challenges associated with being a digital nomad. This makes it easier to become a digital nomad - which is what Boundless Life does for nomads with kids.

The growth of these services is one of the reasons we are forecasting the number of digital nomads to continue to grow over the next 2-3 years.  

See our Digital Nomad section for more on this topic.  

Why Firms are Adding Digital Nomad Policies

According to the 2022 MBO Partners Digital Nomad Study, the number of digital nomads in the American workforce surged 131%, to 16.9 million people between 2019 and 2022.

And as the study chart below shows (click to enlarge), the biggest surge in digital nomads came from traditional job holders.

The shift to remote work unleashed employees from their offices and desks, allowing many to become nomadic.

Unlike regular remote workers, who tend to stay in one place or shuttle back and forth between their home and a vacation retreat or a relative's house, digital nomads travel and explore while working.

This, unfortunately, can lead to legal issues, cybersecurity challenges, and tax problems.

And these issues can be expensive for firms and their employees.  

Fortune's 'Stealth workers' lying to their bosses about where they work are costing companies tons of money provides multiple examples of how firms can get into trouble by allowing their employees to work anywhere they want.

The biggest issue is that digital nomads can easily and accidentally create a new "permanent establishment" for their employer in the state or country where they're working.

That exposes the employer and the employee to the new jurisdiction's tax, regulatory, and employee compliance rules and laws.

In addition, since many digital nomads travel without their firm's knowledge, their employers may wind up breaking employment laws and regulations without any awareness that they are doing so.

The answer to these issues is to create a digital nomad policy. And all firms with digital nomads - which is most larger firms - should have such a policy.  

The Wall Street Journal's Work From Anywhere! (Well, Not Really) covers several companies that have added digital nomad policies. Key quote on Airbnb:

"Airbnb, which has as much skin in the free-range game as anyone, touts employees' license to "live and work anywhere." In practice, company policies keep roughly two dozen countries off limits. Stays in foreign countries can last no more than three months, and employees still need permanent addresses. So, not anywhere."

The Staffing Stream's Implement a Successful Digital Nomad Policy with These Best Practices provides a good starting point for creating a digital nomad policy.

And our Harvard Business Review article Your Company Needs a Digital Nomad Program goes into more detail on why they are important.  

The digital nomad trend will likely continue to grow. 

Because of this, firms of all sizes need to be aware of the risks associated with digital nomads - and have policies to mitigate these risks.

Ford Targets VanLifers With Their New Transit Trail Van

Ford recently announced the Transit Trail, a variation of their popular Transit commercial van targeted at VanLifers and others wanting a camper van.

The Ford Transit Trail's design makes it easy to customize and add things like shelving, cabinetry, and beds. 

Car and Driver magazine describes the Transit Trail as:

Essentially a factory-built camper van base, the Transit Trail comes with key elements that vanning aficionados want, such as swiveling front seats, an onboard AC inverter, an over-cab storage compartment, dual alternators, and a fuse panel, all backed by Ford's warranty.

The Transit Trail is also off-road ready with four wheel drive, an uplifted body, and large tires.  

Buyers can customize the Van themselves or get custom conversions via the Ford Pro network of upfitters and interior installers.

The Transit Trail starts at around $65,000, but Ford claims that due to the design and features of the Van, customization is much easier and cheaper than other options.  

As their video below shows, Ford is targeting VanLifers- digital nomads that travel, live and work in RVs, vans, or other vehicles converted into roaming residences.

This is a large and growing market segment.

According to the 2022 MBO Partners study, The Aspirations and Reality for Digital Nomads, there are 3.1 million VanLifers in the U.S.  

This is up from 2.6 million in 2021 and 1.9 million in 2020.

We expect the VanLife segment to continue to grow.  And one reason is the growing support ecosystem for VanLifers, including companies like Ford releasing products making it easier to be a VanLifer.  

See our Digital Nomad section for more on this topic.

Emergent Research (that's us) worked with MBO Partners on the abovementioned study.

There are Millions of Aspiring Digital Nomads

The digital nomad trend has long attracted lots of press and a strong social media following.

Popular digital nomad and #VanLife blogs, videos, and Instagram accounts have created a spectator sport inspired by idyllic pictures and videos of happy digital nomads in exotic locations. 

This media coverage, combined with the shift to remote work, and the desire by many to travel, has resulted in millions aspiring to become digital nomads.

Each year, as part of the MBO Partners digital nomad study series, we ask adult Americans who aren’t digital nomads if they plan on becoming digital nomads over the next 2-3 years.

In 2022 the results project to 25 million saying they will and 48 million saying maybe.

This is a 12% increase compared to 2021 in the number of Americans saying they will or may become digital nomads over the next 2-3 years - and a 33% increase compared to 2019.  

We call this group "armchair digital nomads."  

The reason is our studies indicate only about 8% to 11% of those saying yes or maybe will follow through and become nomadic.

The vast majority will continue to follow the exploits of other digital nomads instead of becoming one themselves. 

However, this data shows how extensive the interest is in this lifestyle.

It also shows how the shift to remote work, especially for traditional jobholders, is making the idea of becoming a digital nomad even more popular.

Which is one reason why we are forecasting continued growth in the number of digital nomads.  See The Aspirations and Realities for Digital Nomads for more on the digital nomad trend.

Emergent Research (that's us) worked with MBO Partners on this study.   

The Number of American Digital Nomads Increased 131% Since 2019

The 2022 MBO Partners digital nomad report - The Aspirations and Realities for Digital Nomads - reports that 16.9 million Americans describe themselves as digital nomads.

This is an increase of 9% in 2022 and a 131% increase from 2019 (click on the study charts below to enlarge).

The shift to remote work is the primary driver of this growth. This has unleashed traditional jobholders from their offices, more than tripling their numbers since 2019 and reaching 11.1 million in 2022.

In addition to the pandemic-induced shift to remote work, several other factors are driving the growth of digital nomadism:

• Many organizations are allowing their employees to become digital nomads: Corporations have been hesitant to allow their employees to become nomadic. This is changing, and many companies have announced plans and policies that enable employees to become digital nomads. And, as this study's data shows, many are doing it.
• Countries and cities worldwide are vying for digital nomads: Towns and countries have discovered that digital nomads provide more economic benefits than traditional tourists. Because of this, many are creating incentive programs and special visas to attract digital nomads. 
•  A growing support industry is making it easier to be a digital nomad: The size of the digital nomad market has reached the size and scale that a wide variety of products and services are tailored to their needs. Digital nomads also benefit from products and services targeted at remote workers.
• Remote work technology and methods continue to improve: The shift to remote work has resulted in massive investments in remote work tools and technology. Firms are also learning to productively utilize remote workers and effectively include them in their teams. Digital nomads - intensive users of remote work technology - benefit greatly from these advances.

Despite the considerable increase in the number of digital nomads since 2019, growth slowed in 2022 to 9%. 

This was not surprising.

With the pandemic easing, life and work started to return to normal, and more workers were expected to show up at the office - at least a few days a week.

Also, the number of American digital nomads has reached a size where the growth rates of 2020 and 2021 were no longer sustainable.

But the outlook for continued growth is excellent.

People want to travel, awareness and interest in digital nomadism are growing, and the shift to remote work will continue to be a powerful enabler.

See the report for more information, including digital nomad attitudes and motivations, challenges and demographics.

Emergent Research (that's us) worked with MBO Partners on this study.

The Rise of Blended Travel

The global lodging giant IHG's Crowne Plaza hotel chain recently released The Future of Blended Travel. Key quote on blended travel:

"The convergence of business and leisure behaviors was once remarkable. Not anymore ... as post-pandemic travelers increasingly adopt seamless blended travel behaviors and attitudes."

The key data is illustrated by the report chart below.  It shows the majority of respondents to the study's survey plan combine business and leisure travel over the next year.

The report lists 4 key trends as driving the growth of blended travel:

1. Reworking Work: Travel to a hotel or resort in a warm, exotic overseas location or an exciting city as a base for remote flexible working has boomed over the past two years.

2. Hybrid Living: Increasing number of business travelers are planning to extend their work travel with leisure days to get the most from their trips. Key to this is the flexibility and ability to work while traveling – whether it is a long-haul trip or a weekend visiting family – that's enabled by new working practices.

3. Upskilling and Side Hustles: Upskillers and Side Hustlers are using the power of travel to fuel inspiration, feed curiosity and enable networking and connections.

4. New Care Economy: More than ever before, families want to travel with children and grandparents. Multi-generational travelers seek out destinations that cater to all ages.

A key reason we like this study is we vastly prefer the term "blended travel" over "bleisure travel", which we first reported on in 2015. 

No one seemed to like the term bleisure travel - Skift even called it "that awful moniker".  But it's been commonly used.  Hopefully, blended travel will replace it as the term of choice.

We consider the blending of travel and work an important social and business trend.  It's a driver behind the growth of remote work, the growing number of digital nomads, and even the shifting patterns of where people live.  

It's a trend worth following and the Crowne Plaza report is well worth reviewing.  

Airbnb's Guild on How Communities Can Benefit From Digital Nomads and Remote Workers

Airbnb says its Guide to Live and Work Anywhere "provides industry-first analysis of global remote work initiatives."

This isn't even close to accurate- there have been many studies on this topic. 

But marketing hyperbole aside, the Guide provides an interesting look at how cities benefit by offering incentives to attract remote workers.

They also show the incentives cities are using. Below is the Guide chart on Tucson's remote worker incentive package.

The growing competition among cities and countries to entice digital nomads is one of the most interesting remote work trends.

Whether it's the creation of digital nomad villages, providing specialized remote work visas - or, as Airbnb's Guide points out - providing direct financial assistance, countries and cities are increasingly engaged in an arms race to attract remote workers.