For many, embarking on a new year includes looking back at the year that was while also anticipating the one that lies ahead. Every year in the travel industry, the winds of change end up blowing in new directions many of us never imagined.
NB This is a viewpoint by Scott Gutz, President & CEO, Amadeus North America.
But as we begin navigating the year ahead, there are a few key areas that I predict will remain constant as we shape the future together as an industry. These will continue to anchor our reality in travel and technology in 2016, with online and mobile serving as especially significant factors in the ever-changing backdrop.
1) So goes the traveler, so goes the industry
The most important figure in 2016 will continue to be “I, Traveler", the empowered traveler around whom the travel technology focus will revolve. What the traveler wants, the traveler should, and will expect to, get. A simple premise but one that can be multi-dimensional and complex to execute. Travel companies that deliver will be significantly rewarded with greater share of the traveler’s mind, heart and wallet.
Insight from Amadeus’ Future Traveler Tribes 2030 report outlines six emerging traveler segments and their distinct needs – indicative of the money-making opportunity for travel sellers. But that future is here today.
More accessible and affordable mobile devices are creating a world of more fully “networked humans”. Many travelers will demand (and pay a premium for) trip-enhancing, a la carte services such as special airplane seats and meals. “Bleisure” getaways will enable millennials to pair business trips with leisure and niche-seeking travelers will gravitate to wellness, adventure and “voluntourism” trip options.
2) Which way is up: challenging the status quo
Disruption will be a given. Collaborative consumption and the sharing economy will grow, enabling individuals to rent or borrow goods and services rather than buy or own. Advances such as taxi-hailing apps, in-home room rentals, crowdsourcing and crowdfunding will force traditional providers to step up their offerings and invest in innovation.
Established and emerging online companies will be continue to shape travel, rolling out new offerings that solve real problems and make trips more enjoyable, seamless or stress-free.
Veteran online agencies won’t rest on their laurels and new players will look to carve out their unique place among travelers and the industry. Our Amadeus for Startups program is designed to help guide these entrepreneurs through their journey as they to take aim at changing the game in travel.
3) Privacy, personalization and the end-to-end trip will characterize corporate travel
Airlines and corporate travel providers will further advance their use of business intelligence and data in 2016. Security will be a key focus as the travel industry more closely considers where traveler data resides, how it’s stored, and who has access – and re-evaluate policies and processes.
Also, look for real benefits for corporate travel as airlines deliver greater personalization enabled by new generation technology. While each airline has a unique vision, individual capabilities around the search and shopping experience will likely be the differentiator.
The end-to-end journey will get closer to reality. Today’s travelers might have six or more touch points in their trip from shopping and booking all the way to expense management.
Progress will be made in taking a more holistic approach, integrating those services and utilizing relevant data to produce new, more valuable offers and recommendations.
4) Leveraging tech to evolve business
Airlines especially will engage new technology solutions that help them advance the passenger experience, increase top line revenue while managing costs and efficiencies “below the wing.” Cloud computing, load planning, revenue management and reservation/inventory/departure control are just a few areas where airlines around the world – network, low-cost and beyond – will look to technology and innovation to make more money, improve operational efficencies and differentiate their offer and value to travelers.
5) The retailing revolution marches forward
Merchandising will become a bigger opportunity for the entire industry in 2016. Last year, ancillary services booked globally through Amadeus by online travel agencies rose 85 percent with a 40 percent year-on-year increase in the number of travel outlets (leisure and corporate) selling ancillaries.
The next big thing: the chase and race to evolve online search as a result of the growing demands of travelers and the industry that serves them.
Fast is no longer good enough. Basic city pair searches just won’t do. Ultra-fast and attribute-based search - especially tied to ancillary services - will be a requirement, not a luxury, for any travel player looking to differentiate and successfully compete.
6) Artisans of the travel experience
Travel professionals will continue to deliver value as travelers swap their DIY frustrations for the expert’s touch. Travelers will seek out counselors who anticipate their needs and who they can trust.
Successful travel professionals will be masters at crafting personalized travel experiences. Their role will become less about destinations and products – and more about being true collaborators who leverage relationships, networks and connections on behalf of their clients.
NB This is a viewpoint by Scott Gutz, President & CEO, Amadeus North America. The article was originally published on the Amadeus North America blog and appears here as part of Tnooz's sponsored content initiative.
NB2Image by Shutterstock.