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Firmenich
Technology Redefining The Travel Industry
You realise from the question its paradoxical nature since we can easily say that this is an industry which has been led by technology and not the other way around. The travel industry has become such a fast-moving landscape that it has become a mission for industry experts to stay abreast of the changes affecting them in the near future.
As IT geeks start properly targeting business travel, where their aims were leisure travel before, we will see more and more disruptors in this 1.2 trillion dollar market. Traditionally, the money that goes into leisure travel has been higher than corporate travel which comes with extra complexities and requirements. Hence, the advancement has been less captivating for IT companies. As IT companies realise that business travel offers a niche ground for development since it is far behind and also offers steady revenue stream, they are more and more focused on it. We also have to bear in mind the millennial effect where they will in the near future, if not yet in some companies, dictate how business travel will be bought.
Disruptors are out there to get a piece of the business! Sometime ago, we (business travel professionals) weren’t ready to talk about disruptors like Uber and Airbnb but are now compelled to, by the sheer number of travelers using them already.
However, Blockchain remains the next big thing in my opinion. It is known for the advancement it brought by cryptocurrency but it is going to open so many windows & opportunities for the travel industry for vendors and buyers alike. Imagine seamlessly having all the content you need the way you need it in one stroke of a button and a secure hackles process. Access to inventory would be much easier and content would be far richer. It would also be cost-effective as cost of distribution would also be much less.
So, what do you do? All these technological developments are shaping the industry today and in the future. Buyers must be vigilant of them if they want to stay in the game. The pace of change is so fast that you really need to find ways to be updated. You also need to make sure your strategy is updated regularly with a clear roadmap of what you need to fulfill your objectives as a travel buyer. You might also want to revisit your strategy more regularly than ever, as the new technologies are makings things that were impossible, possible, and you don’t want to miss out.
Many times, travel buyer’s reliance is heavy on TMCs as vendors must lead the way for buyers. They must keep up to date and be key ambassadors of the changes by tying up with right technologies and presenting their augmented services, seamlessly. As a vendor, you are expected to be at the forefront of the change and have a good investment and strategy behind IT development.
Communication is another key area of development that is being reinvented by developments in technology. Communication is becoming more targeted, more deliberate and more effective than ever. As a result, travelers acquire knowledge much faster than before. As I head the travel division in my company, I was surprised one day to have been informed by one of my regular travelers that the best time to buy a ticket is Tuesday afternoon after airlines release new inventory following reconciliation of their weekend sales!
This is an opportunity as well as a challenge for travel professionals who have to be at the forefront of what is happening in the industry and find newer ways of being informed. At the same time, if they are well informed, they will find newer and better ways to manage business travel.
