A recent study conducted by technology giant Amadeus, titled ‘Travel Technology Investment Trends‘, forecasts a significant acceleration in the pace of transformation within the travel industry, with a notable 14 per cent increase in technology investment planned for the year 2024. The research, launched today, marks a pioneering effort in comprehensively analysing investment intentions and technology priorities across eight sectors of the travel industry, spanning ten global markets.
The study reveals a robust appetite for investment across the sector, with a staggering 91 per cent of surveyed travel companies expressing expectations of “moderate to aggressive” increases in investment within their organisations in 2024. Notably, airports, corporate travel managers, and hotels emerge as the frontrunners in this technological evolution, leading the charge in plans to bolster technology spend.
Key areas of focus for investment include machine learning, data analytics, digital payments, and extended reality, reflecting the industry’s commitment to driving digital efficiency and enhancing customer experiences. Noteworthy findings from the research underscore the industry’s inclination towards smarter retailing and personalization strategies to cater to evolving consumer preferences.
A significant highlight of the study is the overwhelming adoption of biometrics at airport services, with 98 per cent of airlines having already implemented or planning to implement biometric solutions to streamline airport processes.
Among the various sectors, airports lead with an average projected increase in technology spend of 17 per cent, followed closely by corporations (15 per cent) and hotels (14 per cent). Airlines, travel sellers, and travel payment departments also anticipate substantial increases, with average growth rates ranging from 12 per cent to 13 per cent.
Anticipated technological investments across key sectors
In anticipation of the year 2024, industry leaders are prioritizing smarter retailing, personalized experiences, and digital efficiency as their top technological objectives. Notable insights from respondents include:
Full-service airlines project an 18 per cent boost in revenue by transitioning to modern retailing, with an optimistic outlook on achieving the ‘Offer & Order’ transition within the next four years.
60 per cent of airports plan to implement biometrics throughout the entire airport journey within the next five years, encompassing processes such as check-in, bag-drop, lounge access, and boarding.
85 per cent of respondents from the hospitality sector foresee leveraging personalization to drive more than 5 per cent growth in incremental revenue.
NDC emerges as the leading technology for implementation among leisure travel agents over the next 12 months, cited by 40 per cent of the agents surveyed.
Corporate travel managers reveal intentions to digitize their end-to-end expense management process within the coming year.
Similarly, a third of travel payments leaders express plans to enhance global payments flows through the implementation of payments orchestration within the next 12 months.
Top priority technologies for 2024 and by 2029
Looking ahead, the research outlines the top priority technologies for both 2024 and 2029, with machine learning, data analytics, and cloud computing emerging as perennial favorites across all sectors. The findings emphasize a collective industry vision towards harnessing the power of technology to drive innovation and efficiency in the years to come.
As part of its commitment to providing comprehensive insights, Amadeus plans to release in-depth reports examining each sector explored in the research throughout the first half of 2024. These reports will delve into the specific investment intentions and technology priorities of full-service and low-cost carriers, hotels, airports, corporate travel managers, and payments, as well as travel sellers.
The study, conducted in Q4 2023 in collaboration with independent market research agency Opinium, surveyed 1,253 leading travel technology decision-makers worldwide. Representing a global perspective, the insights gleaned from decision-makers across ten key markets, including India, highlight the industry’s collective aspirations towards embracing technology-driven transformation.
Responding to ETTravelWorld’s query on investment plans in the Indian markets across travel tech, payments, and airport sector, Decius Valmorbida, President, Travel, Amadeus, commented on the investment landscape in Indian markets, noting the significant economic growth and burgeoning middle-class as driving forces behind technological advancements in the travel sector.
“With projects like the Greenfield airport in Noida and collaborations with leading airlines like IndiGo and Air India Group, India presents a fertile ground for the deployment of cutting-edge technologies such as machine learning, AI, biometrics, and retail transformation,” he said during the virtual launch event for media.
During the launch event, Francisco Pérez-Lozao Rüter, President, Hospitality, Amadeus, observed, “We know that the right technology is the key to connecting and unlocking the value of our travel ecosystem. Hoteliers, airlines and the whole sector are right to be ambitious about the next generation of technology that we are building together. Travel providers can see huge potential for a better customer experience as well as significant growth and control if they get their investment strategies right now. We can see clear ambition and commitment to evolution from this research and are excited to be at the forefront of this journey with our customers.”
During the first half of this year 2024, Amadeus will release in-depth reports examining each sector explored in the research – full-service and low-cost carriers, hotels, airports, corporate travel managers and payments, as well as travel sellers, including business travel agents, leisure travel agents and online travel agents.
This strategic move is poised to enhance the payment experience within the travel ecosystem and aligns with Amadeus’ commitment to delivering seamless travel experiences. By integrating Voxel’s solutions into its portfolio, Amadeus aims to provide a broader range of payment services for travel sellers while streamlining invoice management processes for tour operators, travel management companies (TMCs), hotel aggregators, and hotels.
[ad_2]
Source link
Odisha Tourism‘s annual flagship camping event, Eco Retreat, is set to kick off on November 1. According to the official sources, domestic tourists are expected to make up the majority, comprising 60 per cent of the total.
While the domestic visitor traffic forms the lion’s share, the international visitors are anticipated to account for 30 per cent. This projection aligns with the promotional efforts made in June, which included roadshows targeting South East Asian countries to boost awareness of the Eco Retreat experience.
Additionally, the commencement of direct flights between Bhubaneswar and international destinations like Dubai, Singapore and Bangkok also enhances the prospects of attracting more foreign tourists to the retreats.
Spanning three months and marking its fifth edition, these eco retreats will be covered across seven scenic locations. The inauguration of the first phase, commencing on November 1, will be done by Chief Minister Naveen Patnaik in a virtual ceremony. Visitors can look forward to the first wave of openings featuring Eco Retreats at Putsil, Daringbadi, Hirakud, and Satkosia.
Following this, Bhitarkanika and Sonpur Beach (Ganjam) will be officially unveiled on December 1, while Eco Retreat in Konark is slated for opening on December 15.
“This glamourous camping has been path-breaking in nature, providing temporary but high-quality facilities and services to cater to the tourists. It essentially features luxury cottages along with local food, adventure & water sports activities, nature trails and a wholesome day itinerary, cultural evenings, and a lot more,” a tourism department official stated.
Singapore and the Southeast Asia region are of paramount importance for India, especially for Buddhist tourism, owing to the connectivity between the two regions, with approximately 150 flights operating per week. India’s presence at ITB Asia put focus on its positioning in key international markets.
The camping event has become synonymous with Odisha‘s commitment to sustainable tourism and is a testament to the state’s efforts towards promoting sustainable accommodations while providing travellers with luxury. It serves as a model for sustainable tourism for the state, demonstrating that indulgence need not come at the cost of the environment. Notably, the Eco Retreats in Odisha are committed to being a zero-waste discharge tourism initiative, ensuring that the environment remains unharmed. These retreats are strategically positioned in ecologically sensitive areas, and Odisha Tourism has taken measures to ensure that the tourism activities in these destinations have a minimal impact on the natural environment. As per the tourism department, these retreats adhere strictly to the guidelines and standard operating procedures established by the Ministry of Health and Family Welfare of the Government of India.
The Eco Retreat will remain open for a duration of 90 days, and reservations for stays can be made through the official Eco Retreat website.
[ad_2]
Source link
In a development with far-reaching consequences for Indian travellers planning trips to Canada, the Canadian government has announced a reduction in visa and consular services in India. This move comes amid an ngoing diplomatic standoff between India and Canada. The Immigration, Refugees and Citizenship Canada (IRCC) has declared that visa and consular services in several key Indian cities will be affected due to a significant number of Canadian diplomats departing the country. This departure is a result of the Indian government’s call for parity in Canadian diplomatic presence in India. As a consequence, Indian travellers seeking Canadian visas may experience substantial delays in their applications and processing. The reduced diplomatic staff, now numbering only 21 diplomats after the recalibration, has led the Canadian government to impose a temporary halt on all in-person services at Canadian Consulates across India until further notice.
This pause will affect the overall visa processing, response to inquiries, and the issuance of visas and passports due to the diminished diplomatic workforce. Nonetheless, Canada will continue to accept and process visa applications from India.
VFS Global, the entity responsible for handling Canadian visa applications in India, has confirmed that Canada Visa Application Centres in ten Indian cities will continue to operate as per IRCC’s instructions. They assured that Canadian visa applicants can still receive administrative support and submit their biometrics at these centres.
The IRCC has stated that five of its staff members will remain in India to focus on tasks requiring an in-country presence. These include urgent processing, visa printing, risk assessment, and the supervision of key partners such as visa application centres, panel physicians, and clinics conducting immigration medical exams. Other tasks and staff members will be reallocated across the IRCC’s global processing network.
Widespread panic among Indian travellers ensued when certain media reports suggested that Canada was suspending visa and consular services at Canadian Consulates in Mumbai, Bengaluru, and Chandigarh. However, it is crucial to note that only in-person operations are impacted, and visa applications will continue to be processed.
The High Commission of Canada in India has also confirmed this situation and clarified that “The Consulates General of Canada in Bengaluru, Chandigarh, and Mumbai are temporarily suspending in-person operations. You can obtain consular assistance and further information from the High Commission of Canada in New Delhi. Consular services in person remain available at the High Commission of Canada in New Delhi.”
The strategy to bag economical fares has backfired on passengers planning to fly from Canada to India this winter. Passengers who have booked international flights between Canada and India in advance are now facing issues due to the non-issuance of visas by both countries. Passengers with airline tickets but no valid visa or travel document cannot travel on the given date.
IRCC has revealed that 41 Canadian diplomats and their dependents were at risk of having their immunities revoked post-October 20. This is why the Canadian government facilitated their safe departure from India. Notably, India had requested Canada to reduce its diplomatic presence in the country last month.
IRCC expressed its view that India’s call for diplomatic parity is “completely unreasonable and escalatory” and considered it a violation of the Vienna Convention. In response, Canada updated its travel advisory for India on October 19, urging its citizens to exercise increased caution while in the country.
Conversely, the Indian government strongly rejected allegations against it and refuted attempts to portray the implementation of parity as a violation of international norms. The Ministry of External Affairs asserted that the state of bilateral relations, the notably higher number of Canadian diplomats in India, and their continued involvement in India’s internal affairs justified a parity in mutual diplomatic presence in New Delhi and Ottawa.
In terms of visa applications, Canada witnessed a substantial surge of 55 per cent in comparison to 2019. Of particular note is the fact that Indians topped the list in all categories of Canadian visas, including those for students, tourists, business, work permits, and permanent residency applications. This suggests the robust demand among Indian travellers for Canadian visas, despite the current diplomatic challenges.
[ad_2]
Source link
The latest forecasts from American Express Global Business Travel (Amex GBT), consulting suggest that hotel rates are poised to continue their upward trajectory in 2024 across most global destinations. This trend is anticipated even as leisure travel demand is expected to soften.
The Hotel Monitor 2024 report, based on a comprehensive analysis of millions of hotel transactions and International Monetary Fund (IMF) economic data, predicts that several cities may see substantial rate increases of up to 17.5 per cent due to a combination of tight supply and local conditions driving room costs higher.
Most cities are expected to witness rate increases in line with local inflation. This follows substantial price hikes in 2022 and 2023, primarily driven by the surge in “revenge tourism.” The report anticipates that the softening demand for leisure travel will be offset by a continued rise in business travel and meetings and events.
There’s a noticeable increase in weekend corporate travel, and travellers are opting for fewer but longer business trips, indicating a growing trend of combining business travel with leisure activities.
In response to this shift, global hotel chains are expanding their extended stay offerings. Vacation rental companies are also observing increased requests for amenities like high-speed WiFi and late check-out times to accommodate remote work, suggesting that business travelers are seeking alternatives to traditional hotel accommodation.
Hotel rate rise in India?
According to Amex GBT report, India is expected to witness significant hotel rate increases in major cities, highlighting its position as a vital business travel market. As travel patterns continue to evolve, businesses and travellers alike will need to adapt to these changing dynamics in the hospitality sector.
In 2024, Mumbai is expected to have the highest growth rate in hotel rates among major Indian cities, with an increase of 15 per cent. Chennai follows closely behind with an expected hotel rate growth of 14.6 per cent. Meanwhile, Delhi is predicted to experience a hotel rate increase of approximately 12 per cent, and Bengaluru is expected to see significant growth in hotel rates at 11.1 per cent. Hyderabad is also anticipated to have a robust hotel rate increase of around 10.8 per cent.
The influence of inflation
While global inflation is showing signs of slowing down, it continues to impact room rates, particularly due to rising costs affecting hotel operating margins. Staff costs, notably hotel wages in the United States, have reached record levels in 2023.
This escalating cost base is disrupting the traditional relationship between supply and demand in the hotel industry. Hotel operators are increasingly limiting inventory to address staffing shortages, reduce overheads, and protect rates. Consequently, traveling during off-peak periods may no longer result in the same level of savings, as the correlation between rates and occupancy weakens.
JLL anticipates that this positive momentum in the hospitality sector will continue into the second half of 2023, with an estimated transaction volume of around USD 88 million (INR 722 crore), extending into 2024. This optimistic outlook is underpinned by the industry’s robust performance, driven by strong macroeconomic fundamentals, a thriving commercial market, and improved air connectivity.
Building effective hotel program
After absorbing significant rate increases in 2023, travel buyers are under pressure to manage costs. Additionally, there is a growing emphasis on meeting sustainability commitments, adding another layer of complexity to program development.
To adapt to these changes, travel buyers should reassess existing arrangements and prioritize negotiating better rates, improved terms, and additional amenities in frequently visited hotels and cities. Concentrating spending on a smaller number of providers can help secure favorable rates, enhanced terms, and other benefits, even for smaller businesses.
Simon Fishman, Vice President, Global Hotel at Amex GBT, commented on the report, stating, “With the softening of leisure travel demand, we and our corporate customers have an improved position at the negotiating table, meaning we can make even more rates available to travelers.”
He added, “It’s also the right time to make sure a hotel program is fit for the future. More than ever, it’s about presenting travelers with relevant and personalised options. One might want the best rate, while another will prioritise amenities and experience.”
[ad_2]
Source link