responsibility. Even if automation could take the place of human decision-making, the regulatory regime would not allow it.” He insisted: “We’re an awfully long way from this changing. Over time, technologies will converge – the driverless car, the remotely piloted flying taxi, the drone delivery network. But we’re years away from any of these things happening. Every driverless car is capable of autonomous driving now, but there is no regulatory approval for them. The critical point is what is an acceptable rate of failure? We’re miles away from acceptance of computers failing.” Deployment of these technologies also


poses challenges. He said: “There are more drones now than commercial aircraft. How do you blend these airspace users into a system of safe management? It’s a level of complexity the industry has never seen.”


FIGURE 57: UK ONLINE TRAVEL PURCHASING, 2012-19 % adults purchased


%


10 20 30 40 50


0


% point change on 2017


%


10 20 30 40 50


0 45% 31%


Travel arrangements Holiday accommodation


32% 33% 36% 37%


42% 44% 42% 43% 43%


33% 32% 37% 36% 38% 40% 39%


10 20 30 40 50


2012 2013 2014 2015 2016 2017 2018 2019 By age, 2019 +7 -3


+5 -6


+8 +7 +5 -3 59%


56%


52% 51% 52% 54%


41% 38%


28% 24%


-3 -6 0 FIGURE 58: +4 +5 60


10 20 30 40 50


0 16-24 25-34 35-44 45-54 55-64 65+ Source: ONS


change YoY +2 +4 -5 +2 -2 %


20 40 60 80


0 62% 27% 13%


Online: desktop or laptop


Online: smart- phone


travel agency


In


phone call


7% 4% By


Other/ don’t know


Responses exceed 100%


OF BOOKING NEXT OVERSEAS HOLIDAY % point


LIKELY METHOD %


20 40 60 80


0


16-24 25-34 35-44 45-54 55+ ABC1 C2DE North Midlands South Source: Kantar/Service Science


Travel Weekly Insight Report 2019-20 37 FIGURE 59:


ONLINE BOOKING OF NEXT HOLIDAY By age, social class, region


Desktop/laptop Smartphone/tablet Travel agency


The critical point is what is an acceptable rate of failure? We’re miles away from acceptance of computers failing


AIRLINE DISTRIBUTION When it comes to consumer-facing technology, Gauld said: “We’ve not seen a lot of movement or airlines looking at new ways to interact with customers over the last 12 months.” Part of the reason is “budgetary concern”. He said: “There has been a lot of nervousness around Brexit, and not just among UK airlines. Everyone has been taking stock.” Gauld added: “There is still the fight


over [who owns] the consumer, but nothing has really turned up the dial in the last 12 months.” He suggested this extends to airline


THE PROPORTION of UK adults purchasing travel and


accommodation online has grown, according to ONS figures, but not steeply (Figure 57). Yet growth in smartphone bookings and a fall


in face-to-face bookings in travel agencies appears clear from consumer research for this report


(Figure 58). The sharpest change on 2018 appears regional, with those intending to book with an agent in the North (16%) down six points


year on year and in the Midlands (12%) down 10 points (Figure 59)


development of Iata’s New Distribution Capability (NDC), which aims to enable online retailing, including personalised fare offers, through intermediaries. Airline association Iata has said 21 airlines will be taking 20% of their bookings via NDC channels by the end of 2020, although there is a degree of scepticism about this target in the corporate travel sector. Gauld said: “NDC is losing momentum


in my view. There has been a bigger uptick on it in Europe and lower in the US, but I can see a technology player offering a viable alternative to NDC. It would be a compelling proposition to tap into that data.” He believes it’s only a matter of time


before “one of the big tech giants comes into the [travel and aviation] space”. Gauld said: “One or two airlines have


60% 7% 11% 17% 14% 11% 15% 11% 24% 16% 16% 12% 11% 30% 29% 23% 27% 66% 56% 57% 65% 65% 34% 59% 42% 31% 30% 63% 58% 67%


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