How to
think about disruptive innovation
• You need to ensure that you’re ahead of the digital curve. Disruption is inevitable in the travel sector, especially with the amount of technology now present.
• It’s important to learn from other companies and sectors, as well as your peers. Looking beyond borders and to other industries is crucial.
• Not every disruptor is going to be innovative, and not every innovation is going to suit your organisation. Research thoroughly. Understand and test ideas.
• For some, particularly the older generation who aren’t tech savvy, change can be scary, and fear can induce negativity and an assumption that the innovation may not work.
• Truly innovative travel buyers and industry players are the ones that are solving problems that they can actually do something about. Disruption is not always about flashy tech.
we want to receive, say, banking products and services,” says Ken Moore, head of Mastercard Labs. “From that perspective, we’ve seen tremendous change in the types of services and the expectations we have as consumers or as corporates. We have defi- nitely seen a shift where fintech companies and new technologies are driving change.”
The rumblings of disruptive innovation are also being felt in travel management, particularly in the distribution of travel products. IATA’s New Distribution Capabil- ity (NDC) is viewed by some as a potential upsetter of apple carts (see feature, page 76) – although the jury is still out on this. “There are a lot of conversations taking place. But we have yet to understand the value it brings. As it stands we see increased costs and no improvement,” says Amex’s Lyons. The new British Airways surcharge on the GDS, if followed through in November, could change the face of fare distribution. Anything that incurs more costs or saves travel managers money has the potential to disrupt, since margins are so fine. “More direct contact and information flow between the traveller and the sup- plier means less control for the corporate customer,” says ATPI managing director Adam Knights. “It isn’t necessarily bad at all, but the focus right now is that airlines are pushing it, the industry is asking whether TMCs are ready and what they are doing. But few travel managers are asking about the disruption this will cause to their
programmes and goals, and whether this is good or bad.”
More of us should be thinking like a disrup- tor (see panels) to pre-empt the changes that are likely to occur. One strategy that’s helping corporations forge a competitive advantage is teaming up their junior digital natives with older analogue elders. “I think we’ve set a good example en-
couraging different age groups to work together and support each other,” says Karen Lopez, strategic business manager at Corporate Travel Management. “Younger employees share their technology knowl- edge with older employees. Creating this mentor role gives them a sense of respon- sibility and empowerment, and allows travel managers to build a stronger team.” Changing company culture is a major issue, especially in larger ,traditional firms. “Businesses need to create a culture that nurtures innovation,” says Jo Dobson, senior director of business development at Carlson Wagonlit Travel. “We have an internal innovation challenge, which crowdsources ideas from across the company on certain topics to help us to get every employee engaged.” Certainly, disruptive innovation doesn’t happen in a vacuum, especially in an industry such as managed travel. Partner- ships, supply chains and whole ecosystems will need to change over time. It’s not about if; it’s when – are you ready?
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