Technology never disappoints in its progression – but it often cause issues when we actually try and use the stuff!
One example is how increases in bandwidth on both fixed line and mobile data networks are transforming commerce.
This is big data and big opportunities - but only with non-legacy thinking. And travel needs to understand the reality of the real-time web and how high bandwidth is not business as usual.
Google is making a number of strategic plays, for example - almost a year ago it announced (with Verizon) a restricted, high speed version of the web for premium services.
Now it is moving further into our lives with the acquisition of Motorola’s handset business. Furthermore, Dish Networks in the US bought a number of terrestrial and satellite assets which will bring it also into the game of providers of big data services, allied to consumer brands such as its purchase of Blockbuster.
We can surmise that big data delivery via these high bandwidth networks is going to have a profound impact on travel, perhaps more than many other business sectors.
The reason is that travel depends on a significant amount of data and processing to deliver products and services.
Travel is very complex, something that many newcomers find hard to comprehend. This complexity requires a significant amount of horsepower that is better served via central location services or today by the cloud.
Recent developments in online travel have largely focused on the changes in the consumer interface.
In reality, although people talk about Travel 2.0 and even Travel 3.0, we are still dealing with Travel 1.0, which was and is all about access to (and for) the consumer. The ability to move large amounts of data, and the ability to process data in the cloud, will change the game significantly, not just consumer user experience, but also in the back where the real magic happens.
Here are some predictions for what we might see over the course of the next few years:
- Greater bandwidth will create new implementations of existing products and service to the consumer, as well as brand new products
- Search will finally get the real attention it deserves and become real. Metasearch will become "real search".
- Trusted sources will emerge for quality data. The current so-called gatekeepers of data will lose their privileged control of data sources, perhaps replaced by new gatekeepers (and Google fully intends being the biggest).
- Entrepreneurs will develop a whole new market of services that are not dependent on the traditional restrictions, and will be largely cloud based.
- Suppliers will build better controls on their products ensuring they know where and to whom their products are delivered.
- Intermediaries will decline in number, but those who remain will be more valued.
- Big Media and Big Telecom will enter travel (again). Google buying Motorola is an example.
- Travel will become more implicit and automated for mechanical trip buying (eg. corporate travel). The user will not have to work so hard.
- Location-based services and augmented reality technologies will blur and become integrated into travel apps.
- Regulatory control will be tightened in travel as taxing the travel process will become more prevalent.
While many of these predictions are largely not new, the creaking infrastructure at the back of travel cannot keep up with these changes.
Moving travel applications to the cloud, along with the increased use of apps for the front end to the consumer, pushes the current process of concentrated processors of data to the limit, and beyond. The gatekeepers may well find themselves outclassed here.
While it is sexy to think about the front-end piece, the back-end is the hardest part. Much harder. As an industry we have to rethink our future, including the roles of the existing players.
Success will come to those who understand and build a trusted and reliable set of services for the consumer. This applies to both direct to consumer businesses and those who power services for the consumer.
While big aggregation services will continue to play a role, there is a clear place for the smaller service providers to create better and more meaningful applications for the consumer.
Structured workflows that have existed for more than 15 years are "unnatural acts" that force the user into behaviours that actually do little to provide a better service to the consumer.
These will likely die out and be replaced with more natural search, and better quality of service.
A note of caution is required here. These new capabilities require a radical change in thinking. Legacy processes and methodologies have no place in this future.
Those who own the supply and those who add value to the consumer as intermediaries will now have to work harder – much harder – to keep the interest of the consumer.
The barriers to entry will be lower, but so will be the barriers to exit.