Travel technology Mobile, merchandising and more
T
he rise of the internet and accompanying developments in technology have revolutionised travel distribution, ripping apart the traditional package holiday.
The disintermediation that resulted from the web empowering both suppliers
and consumers inevitably encouraged a shift to component sales and to sales direct from suppliers. Even among pure online intermediaries we have seen the rise of single- component specialists such as TripAdvisor,
Hotels.com and
Booking.com (for hotels), and Skyscanner and Kayak (for flights). But the forces of attraction which
previously bound travel components into packages remain strong, leading to a reversal in this trend as firms look to cater to a broader range of customer needs. Two key factors are driving this: squeezed margins in single-component, commoditised and highly price-transparent markets; and the resilience of the package in key European markets. In the UK, more than half of outbound
leisure trips are estimated to be packages, and packages are dominant in Germany too.
The Deloitte view
As 2014 ends, it is clear that the tech-savvy consumer is no longer a niche segment; it is a common characteristic across life-stages and levels of affluence. Travellers are hyper-connected
and have access to a wealth of rich information at their fingertips which is fundamentally changing the traditional path to purchase, loyalty and advocacy. Research has shown nine out of
10 UK travellers research and plan holidays on their mobile. Eighty per cent of consumers read online travel reviews and they hold the views of other
consumers or experts in high regard. Apps are emerging in areas such as digital assistants, self-service passbooks, mobile concierges at hotels, mobile payments and smartphone room keys. This year has also seen trials of
wearable technology to drive improved customer service and this will no doubt experience high growth in 2015. Digital disruption is set to grow even
more in 2015. Mobile will become critical and become the default expectation for certain customer segments. We anticipate businesses will react to this, with 90% of airlines expected to offer
mobile check-in by 2015 and 40% of hotels planning to implement mobile payments by the end of next year. Just offering mobile services is not
enough and may be counterproductive if not executed perfectly. A key element to mobile success will be personalisation and the user experience – which sounds simple but is not. This needs to be underpinned by robust data, predictive analytics, slick business processes and great design. Businesses will need to invest in these technologies and, just as important, the right talent to take advantage or be left behind.
Change remains endemic in the travel technology sector. Travolution editor Lee Hayhurst examines some of the latest trends
The move towards ‘merchandising’
in the airline industry represents both an attempt to rebundle components that were once bundled together and an attempt to add additional product to the basic seat.
Air fares and beach kits Airline association Iata’s New Distribution Capability promises a future in which an airline knows so much about a passenger that it will offer a package of products and services relevant to their requirements. Adding on-board Wi-Fi, extra legroom, a prepaid bottle of champagne, a special-meal request or tailored on-board entertainment package to the cost of the seat will be just the start. Attaching a hotel room, transfer, tour or excursion, even a beach kit (towel, sun cream, sunglasses delivered to the client’s hotel room) to a flight purchase is not beyond the realms of possibility. Ryanair, not normally noted for its
early adoption of the latest web trends, has recently started talking about its site evolving to become more like an online travel agent (OTA), offering transfers, hotels
Travel Weekly Insight Annual Report 2014 | 51
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68