Across the world, the travel industry is in the throes of a massive transformation. Amidst a volatile macro-economic scenario, traveller preferences are rapidly changing. In addition, the industry currently faces inflationary costs, an acute shortage of skilled talent and is increasingly under scrutiny to adopt more sustainable and green ways of operating.
Even as these challenges persist, the industry, which includes aviation, hospitality, and travel services, can take heart in the fact that traveler sentiment remains upbeat. Months of being cooped up indoors during the pandemic has had a profound impact on consumers, reminding them that travel is more than just the trip. Instead, it is about forming human connection. An Industry Consumer Pulse Survey 2023, which surveyed over 10,000 individuals from 16 countries found that 71 per cent of consumers plan to sustain or increase their spending on leisure travel even as they consider limiting spending across most other discretionary categories.
We believe that travel businesses must build a strong digital core to not just stay relevant but also thrive in this scenario and prepare themselves for the next wave of disruption. A robust digital core is imperative to building resilient business operations, boosting employee productivity, tapping new revenue streams, and most importantly, creating memorable experiences for travellers.
There is no ‘one size fits all’ digital approach
As per industry estimates, global airline passenger traffic is estimated to touch 9.4 billion passengers in 2024. Every year, some of the world’s largest hotel chains offer over a million rooms to guests each, and some car rental companies operate a fleet size of over a million cars each. Given the large scale and complexity of operations, and the diversity of operating models, processes and traveler needs, there is no ‘one size fits all’ approach to building a strong digital core.
Let’s look at this in the context of hotel chains. While all hotels want to deliver great guest experiences, select-service brands prioritize efficiency, have minimal workforce, and rely heavily on standardised processes. As a result, they need a Software as a Service (SaaS)-based lightweight workforce management platform and strong operational insights to maximise efficiency. On the other hand, upscale luxury hotel brands tend to prioritize full-service offerings, well-trained staff, and personalized services. They would typically need a best-in-class workforce management platform along with strong data-led personalisation capabilities integrated into a comprehensive CRM solution.Hence, travel businesses must design and develop their digital core and technology strategy in line with their unique requirements. Interoperable platforms and modular systems, cloud-native operating models, a strong data foundation, artificial intelligence capabilities, and security embedded in everything are all essential elements of this strategy.
Cloud capabilities are vital
Travel companies need to build a solid foundation for change, using the cloud to drive resilience and future growth. The Cloud’s inherent on-demand variability and uninterrupted global connectivity enables businesses to handle surges in business demand. A case in point is how Taylor Swift’s ‘The Eras Tour’ catapulted the demand for airline tickets and hotels in cities on the tour circuit. In situations like this, pricing systems need to be agile, capitalize on the demand, and swiftly distribute new rates across the sales channels. Similar nimbleness is also required during phenomenon like the volcanic ash clouds that can completely upend flight schedules at a very large scale. These situations need enhanced compute power and low-latency connectivity that the cloud offers.
Data-led and AI-powered travel operations
Travel businesses are no stranger to AI adoption – they have been applying AI to growth, experience, and productivity related use cases for some years now. It has been proven that leveraging AI at scale can help create personalised experiences, anticipate travelers’ needs, provide real-time assistance, and help travel companies streamline their operations, empower their employees, and reduce costs. The addition of generative AI to the mix has only given a fillip to AI adoption. Generative AI can help travelers curate a perfect family holiday itinerary, enable an airport manager draw up numerous ‘what-if’ scenarios for gate assignments during heavy snow, and assist with optimal staff allocation.
To tackle the unsustainable aspects of tourism, all stakeholders in the ecosystem must collaborate. Travellers can adopt mindful consumption habits. Local authorities have the power to incentivise eco-friendly businesses, while tour operators can educate tourists on the environmental impact of travel choices. Creating comprehensive environmental planning and waste management for eco-sensitive tourist destinations goes beyond strategy.
A recent industry research found that AI-influenced revenue for travel companies more than doubled between 2018 and 2021 and is projected to triple by 2024. However, only 13 per cent of surveyed travel companies used AI to reinvent core parts of the business, which indicates the tremendous potential for AI adoption.
In order to capitalise on this opportunity, travel companies must put in place the right data and AI strategy, infrastructure and platforms that govern how data is captured, managed, processed, and how insights are visualized and consumed. Robust data governance, responsible AI practices and in-grained security are vital. Equally key are building data, digital and cloud skills in the workforce supplemented by new operating models, and data-driven ways of working.
Elevate the Purchase Experience
To appeal to today’s traveller, their omnichannel experience – be it through the web, mobile app or call center – during browsing and booking must be seamless, intuitive, stimulating and personalised. Organisations must focus on transforming their sales channels and offering differentiated product and experiences that deliver value across the customer journey.
While the travel industry has faced many a curve ball over the years, it has successfully reinvented itself time and again. Reinvention, however, is a continuous process, and having a strong digital core is vital to building resilient and future-ready travel businesses and creating outstanding experiences for travellers.
The author is the Managing Director and Lead for Travel industry, Advanced Technology Centers in India, Accenture.
DISCLAIMER: The views expressed are solely of the author and ETTravelWorld.com does not necessarily subscribe to it. ETTravelWorld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.
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The Uttar Pradesh Tourism Department has signed an agreement with the American firm M/s Anjali Investment LLC for the construction of a 100-room resort in Ayodhya.
State Tourism and Culture Minister Jaiveer Singh said after the consecration ceremony of Ram Lalla, Ayodhya is witnessing an unexpected increase in the number of devotees and tourists.
The state government is working to facilitate the visit of tourists, and to provide them lodging in the temple town, he said.
The owner of the American real estate company, Ramesh Nanguranuri, who is originally from Hyderabad but into real estate business in America, has signed an agreement with UP Tourism department to construct a resort in Ayodhya.
Ayodhya’s transformation extends beyond transportation infrastructure to the overall development of the city. In a recent visit, the Prime Minister inaugurated four newly redeveloped, widened, and beautified roads—Rampath, Bhaktipath, Dharampath, and Shri Ram Janmabhoomi Path—enhancing accessibility for pilgrims and tourists. Besides, the city has also got its International Airport along with Amrit Bharat Express and Ayodhya-Anand Vihar Terminal Vande Bharat Express.
He said land has also been identified for establishing the resort, adding that the investment policy of the tourism department is favourable for investors.Singh said constant efforts are being made to achieve this feat with the increased flow of foreign tourists too.
After the inauguration of Ram Temple, the state government is encouraging investment in hotels and resorts, so that the tourists coming in get better facilities, he said.
Tourism director Prakhar Mishra said the construction of hotels and resorts will improve the experience of tourists and devotees coming to visit Shri Ram Temple in Ayodhya.
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The Pacific Asia Travel Association (PATA) has recently solidified its partnership with the International Congress and Convention Association (ICCA) through the signing of a Memorandum of Understanding (MoU). This agreement was formalised during the 62nd ICCA Congress held in Bangkok, hosted by the Thailand Convention and Exhibition Bureau (TCEB). The collaboration, emphasising responsible and sustainable growth in the travel and tourism sector, aims to create meaningful connections between the two organisations on a global scale.
Under the terms of the MoU, PATA and ICCA plan to develop joint program content focused on nurturing the ‘Business Travel’ sector in the Asia Pacific region. Emphasis will be placed on sustainability in future activities and events, and both organisations will engage in cross-participation in flagship events.
“This partnership holds great promise for the expansion of business opportunities in the region as there is important synergy between the travel and tourism industry and business events, as both relate to travel and economic impact for destination and industry players. We eagerly look forward to sharing valuable insights and best practices with them,” said PATA CEO Noor Ahmad Hamid.
“ICCA is proud to sign this important MoU agreement with PATA which reinforces how closely linked our organisations are. We both share values around sustainability, education, legacy, and advocating for the global significance of international collaboration and partnership. Asia Pacific is an amazing place, culturally diverse and endlessly fascinating. It offers so much to the world in terms of travel and business. Yet it is the people here that are key to developing new opportunities, and ICCA salutes the collective energy, efficiency, and boundless desire to create unique event experiences for all,” said ICCA CEO Senthil Gopinath.
The newly elected Executive Committee and office bearers will work towards promoting sustainable and responsible tourism in the region, fostering cooperation, and supporting the growth of the travel and tourism industry in India. PATA India Chapter expresses gratitude for the unconditional support of its association and looks forward to contributing to the development of the industry in the coming years, said PATA India in its statement.
The MoU was signed by Gopinath on November 12, witnessed by officials from TCEB, PATA, and ICCA during the ICCA Congress in Bangkok. This is the second time Thailand played host to the ICCA Congress, with the first time in 2007 in Pattaya. In addition to this collaboration, PATA announced that the PATA Annual Summit 2024 will be hosted by the Macao Government Tourism Office. The event, supported by SJM Resorts, S.A., is scheduled to take place from May 15 to 17, 2024, at the Grand Lisboa Palace Resort Macau.
The summit will bring together international thought leaders, industry influencers, and decision-makers engaged in driving tourism within the Asia Pacific region. The program will include plenary sessions, breakout sessions, and meetings, providing a platform for discussions on challenges, opportunities, and the responsible and sustainable growth of tourism in the region.
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