AI & tech
are now more interested in making memories through the creation of experiences and, because of this, the experience economy has been able to thrive. By naturally being able to offer something above and beyond material objects, travel and tourism companies are in one of the best positions to benefit from this theme. Airlines and accommodation providers can offer added value to their customers through ancillary offerings and personalised services. Cruise and tour operators are other important players as they are not only taking tourists from place to place – they provide a multifaceted experience. Additionally, companies that operate events such as festivals and sports tournaments are also important to this theme as the success of their offering completely relies on experience. Every global conflict, leadership clash and global issue connects to one common strand – travel. This affects the freedom of movement that lies at the centre of every geopolitical crisis. Pandemics, trade wars, nuclear weapons, land disputes, cyberattacks, military tensions, domestic disputes and migration are all trends that contribute to a geopolitical crisis, jeopardising the travel and tourism sector along the way. Travel is often immediately impacted following a
geopolitical incident and some locations are impacted more than others. Destinations have virtually zero control over the likelihood a geopolitical incident will occur. All travel and tourism players could be impacted by this theme. Often it is the destination that is the first to feel the impact, so it is important to recognise that inside the destination there are businesses/service providers related to travel and tourism that will be affected. Airlines, airports, lodging providers, transportation services and other players are among the sub-sectors that will be impacted by a decline in visitation due to a rise in geopolitical conflict.
What will be the most significant themes in the future and why? AI has seen a large rise in relevance for the travel and tourism industry. AI is not a new theme but has been incorporated into devices, business applications and productivity tools for some time. The advent of ChatGPT, the language model launched in November 2022 by OpenAI, paved the way for the current hype surrounding this technology. Companies are keen to take advantage of these new capabilities, particularly in areas such as sales, marketing and customer support. Airlines, airports and travel intermediaries would benefit from investing in the human-AI interaction layer to improve operational efficiency. The lodging and cruises sectors would benefit from computer vision technologies for check-in and boarding processes, while attraction operators could use them for occupancy monitoring. Pattern recognition, planning
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and forecasting capabilities are extremely useful across all travel industry segments. Travel executives have increasingly realised that
building more relevant and personalised customer experiences is critical because it helps differentiate their brands in an increasingly competitive market. From hotels to booking sites to social media, executives and CEOs are thinking about the ways personalisation can help them reach and sell to customers more effectively. With more choices open to consumers, travel brands face significant pressure to attract and retain customers. This means even more importance is placed on driving success from the company’s website and marketing channels. The customer experience is becoming more personalised and the only way to do it is to know enough about each customer. The road to personalisation is paved with data.
Customer knowledge comes from the collection and analysis of customer data, which is why data is so important to personalisation. The data collected enables companies to better understand their customers’ needs and expectations, make faster and more informed decisions and provide customers with the personalised experiences they crave. Environmental, social and governance – or ESG – is moving into a different era, which we call ESG 2.0. In this second phase, there will be a greater focus on the ‘E’ component, with a shift from a voluntary regime to a mandatory one, driven by government mandates rather than consumer pressure. A host of new environmental laws are in the pipeline, relating to mandatory reporting, carbon pricing and carbon import tariffs, as well as more state support and investment in clean energy technologies. Companies unprepared for ESG 2.0 face higher costs
and lost sales. Corporate interest in ESG issues began to gain momentum in the years following the 2015 adoption of the Paris Agreement, an international treaty on climate change mitigation, adaptation and finance. ESG 2.0 will be driven primarily by government policy rather than voluntary corporate action. Major regions are taking different approaches to the implementation of ESG-related policy.
How will the current key themes shape the industry today and in the future? The integration of AI into the travel and tourism industry is revolutionising various aspects, from customer service to predictive analytics. AI-powered chatbots and virtual assistants streamline customer interactions, providing personalised recommendations and assistance 24/7. Moreover, AI algorithms analyse vast amounts of data to forecast travel trends, optimise pricing strategies and enhance operational efficiency. As AI continues to advance, its role in automating routine tasks and personalising experiences will be
Hotel Management International /
www.hmi-online.com
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