Travel Trends Every Company Should Know

After taking a 52% hit in the first months of COVID, the business travel industry is experiencing an unprecedented surge. The Global Business Travel Association (GBTA) projects industry spending to reach 2019 levels by 2024. The corporate travel agency TripActions says it has already seen pre-pandemic levels of “hyper-growth” within the first three months of 2022.

A younger workforce, shaped by a “work from anywhere” plague, has new demands. Business as usual travel is being replaced by a more flexible, connected and sustainable experience. Think fewer 500+ person multi-day conventions and more 30-50 people gatherings with overnight stays.

Here are five trends to monitor for your upcoming team trips.

“Bleisure” travel is getting bigger

Over the last few years, more employees have mixed business and leisure in a kind of globe-hopping known as “bleisure.” Over half of international travelers plan to extend their work trips to take advantage of their destination.

As the workforce gets younger, demand for this flexibility will only increase, with 90% of millennials already incorporating leisure into their travels pre-pandemic.

Two-day business trips of the past could become a one-month sightseeing venture, complete with weekend getaways. Bleisure enthusiasts take these jaunts once every two to three months. They look for a “home” environment, workspaces with strong internet connections and local flavor.

Of note: A new survey conducted by Visit Anaheim, ahead of National Travel and Tourism Week, found that 44% of 2,000 polled bleisure travelers claimed they turned down a work trip because they wouldn’t have had time for leisure activities while at their destination.

Travel as a time to connect

In a recent Deloitte study, managers said they are “seeking events with a powerful mix of networking and content.” Flying for business as usual, which can now be conducted remotely, is being replaced by travel for bonding and training.

This can facilitate networking, skills development, and recruitment. For remote teams, purposeful in-person interaction can be a game-changer for morale.

Unconventional accommodations versus hotel chains

Companies that used to only sign contracts with large hotel chains are now giving their increasingly GenZ and Millennial workforces greater flexibility in choosing their preferred accommodations. Over 70% of millennial corporate travelers had stayed in a vacation rental during work trips.

Instead of feeling like a hotel guest, the business traveler feels closer to local experiences in a vacation rental, like a hole-in-the-wall taco joint or mid-week salsa classes. Staying further afield from city centers is also becoming more popular as travelers prioritize comfort and proximity to leisure activities.

Self-booking and flexible corporate travel policies

With an increasing demand for unconventional accommodation, business travelers need more flexible policies and the option to self-book. For this reason, 68% of employees are booking their trips outside of employer-approved channels.

Some companies are providing tools to help employees resolve issues, falling back on agents only when self-service tools fail. Companies offering a variety of travel options see higher adoption rates for their corporate travel programs. Allowing workers to make decisions based on their needs creates a culture of transparency and trust between employers and employees.

The rise in corporate travel apps

Apps like Travel Perk offer flexible booking and carbon offsets while allowing companies to track spending and ensure employees are complying with their policies. Amex’s GBT Mobile app allows employees to book their trips, create expense reports on the go, receive updates to their corporate travel program and access 24/7 support from a travel counselor.

Flipping the trip script

Enabled by technology and evolving corporate policies, business travelers are taking more extended, unconventional trips and seizing new opportunities for bleisure and in-person connection.

Employees and employers will have to work together to adapt corporate travel policies, as well as the purpose and design of trips, to meet the needs of a younger workforce demanding a new way to work and explore.

Source: Entrepreneur

Will the metaverse change the way the travel industry operates?

Covid-19 has pushed us to try out alternative ways to satisfy our urge for travel. It has also prompted organizations to accelerate technology adoption, fueled by the demand to find a substitute for travel. While there aren’t too many major solutions that have emerged in this space so far, a lot of work is going on behind the scenes. Technologies such as Augmented Reality (AR) and Virtual Reality (VR) will make it possible to provide a more immersive virtual travel experience in the future. Enter the game-changer – the ‘Metaverse’.

Owing to a quantum leap in technology advancements, the line between what is physical and digital is gradually getting blurred. Off late, there has been a lot of buzz about the metaverse and the fact that Facebook changed its parent organization’s name to ‘Meta’. It has sparked debate about the future of the metaverse and its impact on various businesses and the way we live our lives. The views on this topic are ‘diverse’, so to speak.

So, what is the metaverse? In simple terms, we would say it’s the immersive version of the internet, or a centralized virtual world, or a parallel digital universe. Something that we can all probably relate to, is Second Life – an online virtual world where one creates digital avatars of themselves, and lead digital lives, just like they would in the outside world. But the metaverse is much more than that. As a concept, it is in its infancy – there’s still long way to go before any real use cases emerge. A lot of what we are hearing right now is mere speculations and marketing hype. One thing to bear in mind though is that it may be what defines our future – just like how the internet took root in the seventies.

Currently, avatars exist within the platforms that provide the immersive experience, and they are not interchangeable. The concept of the metaverse is that avatars will be platform[1]agnostic, and we can seamlessly move around our digital assets from one platform to the other. This means that it’s interoperable and allows users to move around freely just like they would in the physical world.

So, the question is, if this parallel digital universe keeps expanding, what would its impact be on the Travel industry? Will people stop traveling altogether, and rather look to experience global destinations in virtual reality mode only? Will life as we know it transforms into a sci-fi movie? Not quite yet.

There’s no replacement for the human senses – it’s a combination of all the senses that help us experience various places. But if only one or two of those senses are being employed, then how can you really say that you’re experiencing a place? How do you substitute the feeling of droplets from a waterfall splashing on your skin, the gush of wind in your face, the smell of the earth after the rains, or the warmth of the sun caressing your face on a cold morning? Similarly, there is no replacement for human interaction – speaking to bots cannot give you the same feeling of meeting someone for the first time, building a connection, having a laugh together, or just enjoying each other’s company.

As you can see, the metaverse cannot replace travel completely. However, it will complement travel in a big way, and over time, it will be an essential part of the travel ecosystem. It could even change the way in which travelers engage in pre, post & in-trip purchases.

Here are the top 8 areas where I think the metaverse may change the Travel industry:

  1. Destination Window Shopping: Think about how it would feel if you had the ability to check out a destination before you travelled there. Imagine wandering down the streets of Rome, making plans and bookmarking the places you’d like to visit before the actual trip? It would be wonderful, wouldn’t it? The opportunities are endless – one could compare destinations before deciding where to visit, evaluate whether an attraction is worth visiting or have a look at the view before picking a hotel. This new immersive experience will be a great leap from the current modes of vacation planning that include reading blogs/magazines and watching YouTube videos. To make the experience even more immersive, an embedded AR technology can guide you through your virtual visit just like a tour guide would.
  2. Historical Travel: I want to travel to the Colosseum from 1,000 years ago, but alas, I was born a millennium too late. Can the metaverse make this dream a reality though? How cool would that be?! The metaverse can be used to recreate landmarks and buildings in all their past glory – a simulation of course, but effective, nonetheless. This will allow travelers to learn about history and experience how our ancestors lived.
  3. Hotel and Cruise Walkthrough: Before I choose a hotel room, I would like to virtually walk through the entire property and decide whether it matches my tastes, rather than just reading about it through reviews and looking at airbrushed pictures uploaded by the property. I really want to see how the room looks, and which direction it would be facing before I finalize my stay. That kind of detail is normally not available today even with 360-degree views, and many-a-times, we are in for a rude shock when we reach the room. I’m quite certain that the metaverse is going to be an integral part of the hotel booking experience soon, and hoteliers will have to have their presence in the metaverse. On the same note, cruise experiences are unique, and many different cruises have different layouts and standards of stay. Just like hotels, if customers could get a sense of the amenities onboard beforehand, it would help them avoid buyer’s remorse and enable them to plan their vacation better.
  4. Travel Bucket List: There are many places that are in my bucket list, and I realize that there are a lot of those that I probably would never be able to visit. I would rather be able to visit those places virtually, than not visit them at all. That’s another area that the metaverse experience can help generate value and generate additional revenue streams, if monetized properly. Even theme parks can have a presence in the metaverse, which can be accessed by kids and adults who can’t make the trip to experience it in person. Think about an underprivileged child enjoying the ‘Revenge of the Mummy’ ride in Universal Studios virtually – would that not be awesome?
  5. Airlines: Both Boeing and Airbus want to make metaverse work in the aviation industry and are betting big on it. Boeing is entering the metaverse to develop aircrafts, which may be ambitious and could be a strategic move, but at least they have started thinking about the future. Airlines may also start thinking about adopting the metaverse experience to boost the air travel experience – being able to check out the seats, legroom, cabin baggage fitment, infant bassinet placement etc. on the plane, for instance. This can enhance customer experience and help them shop for flights.
  6. Metaverse Tourism: Virtual experiences can be a boon for disabled and elderly people whose mobility is constrained. It can transport them to far-flung places from the comfort of their home and allow them to tick off the destinations on their list which they could never go to. It will also help reduce anxiety, loneliness, and improve their mental health. This in turn will enable rehabilitation and increase the overall quality of life. Historical travel will allow the elderly to take a trip down memory lane, quite literally!
  7. Train Stations and Airports: Once when I was at the tube station in Kings Cross in London, which had multiple levels of stations underground, I was a little overwhelmed. I found it hard to navigate around the station, and I was about to miss the train which would connect me to the airport. I remember thinking to myself, if only there was a virtual experience that would have helped me familiarize with the station beforehand. Busy places can be overwhelming at times, especially when you are with family and small kids. It is a similar case with busy airports, with multiple terminals. The metaverse experience can help travelers be comfortable with the location before they travel there.
  8. e-Commerce: What if you could shop at a metaverse store at one of your favorite travel destinations, and ship it home? That would be a perfect merger of tourism and eCommerce in a digital[1]physical handshake? Shops at these physical locations can increase their footfall by extending their presence into the metaverse. This will bring forth a new digital economy – one where users can create, buy, and sell goods with NFTs/cryptocurrencies. If a virtual shop gains popularity in the metaverse, at any destination, the opportunity arises to make a physical replica of it at the tourist spot. Sounds very futuristic, doesn’t it? Taking it even further, think about a scenario where a shop in the streets of San Francisco is owned by someone and the same shop in the metaverse may be owned by someone else. That would be quite odd, wouldn’t it?

All of this and beyond, is possible in a parallel virtual world, which will be a digital replica of the physical world. I’d like to reiterate – the opportunities are endless. The metaverse can help boost the Travel & Tourism industries, including hospitality, airlines, cruises, etc. People have opposing views of the metaverse at this time, since it’s still in its initial stage. But it is moving fast as bigger corporations including the likes of Meta (Facebook), Microsoft, Nvidia, Google and a handful of other companies have started investing in this space including, but not limited to, gaming, hardware, networking, virtual platforms, payment services, social media, etc. This augments various tools and standards, leading to a more mature, and real metaverse. The younger generations can adopt metaverse at an unimaginable pace, being digital-natives and tech-savvy travelers, so it is just a matter of time before one realizes the metaverse is here, and that it’s here to stay.

Source: Times of India

How to Get Ahead of Changes in Corporate Travel

The hybrid workforce and the pandemic have changed what business travel will mean going forward. Here’s how companies can start preparing.

Over the past two years, the scope of a corporate travel manager’s role has evolved. Now that many professionals are emerging from the crisis mode of the past two years, they’re preparing for the future of travel.

And while business travel started making a comeback in the second half of 2021, as new variants arise, companies need to account for ongoing uncertainty and evolving employee needs.

“Work and business travel are in a very different place since 2020,” said Don Moore, Senior Vice President of Global Business Sales at Enterprise Holdings, Inc. Moore’s team leverages the combined power of the Enterprise and National brands to offer customers comprehensive business rental programs.

Early in the pandemic, Moore and his team worked closely with travel managers to navigate the initial challenges that arose as travel rapidly shut down around the world. Now companies are building policies around redefined versions of business travel.

Here’s how travel managers can prepare, what they need to consider, and how the right relationships can help them navigate changes.

Get ready to provide cars as transportation

One of the greatest impacts of the past two years is that many travelers are choosing to drive instead of fly. Overall, driving activity in the corporate sector was up 30% in 2021 from the pre-pandemic average, according to a business travel trends report by Motus. Moore has seen this trend firsthand in corporate rental data and from customer feedback.

“A number of customers who used to take short flights between cities like St. Louis and Chicago are now opting to drive instead,” Moore said, adding that people have become more comfortable driving to avoid the airport.

“Customers now are getting used to driving to destinations. When they rent a car instead of flying, they have more flexibility and control over their trip,” he said. “I think this preference will continue.”

Travel managers can adapt to this shift to more regional ground travel by working with a business rental program so employees can easily pick up rental cars. Enterprise has over 9,500 locations in nearly 90 countries and territories across the globe, making it convenient and cost effective to pick up a rental anywhere – whether it’s near home, the office, the airport, or a client.

Supporting how employees want to travel

Since early 2020, one of the biggest business travel concerns has been safety. In a business travel survey by BTN Group, sponsored by Enterprise and National, 82% of corporate travel decision-makers said traveler well-being would be more of a priority in 2022.

Employers and business travelers want to know that rental car companies they work with are concerned with safety and cleanliness. Enterprise is a member of the Clorox™ Safer Today Alliance™, a coalition to help create healthy shared spaces now and into the future. In addition to thoroughly cleaning and disinfecting cars between rentals, a one-count Clorox® Disinfecting Wipe for use on high-touch, hard, non-porous surfaces is provided in every rental vehicle in the US and Canada.

Plus, picking up the car can be a low-contact, frictionless experience. Emerald Club loyalty members can bypass the rental counter altogether and pick up their reserved car directly.

In case of an emergency, account managers can also provide travel managers extra support and leverage their vast network of locations to help with anything from a flat tire to sending an extra car. Moore said that’s a benefit of working with a business rental program. 

Rethinking travel policies around employee expectations 

The definition of travel is changing, too. Flexibility in travel is now a top priority, according to the Motus study. This also translates to the workplace. Many white collar workers who have been working remotely want to continue doing so or move to a hybrid model. A study by McKinsey in July reported that over 60% of respondents want to work from home at least two days a week. 

Companies and travel managers will need to think about how this new model of work impacts what counts as corporate travel. For example, if an employee lives two hours from the office and comes in twice a week, is that a corporate travel expense? If an employee travels from home instead of from the office to a client meeting, do they use their personal car or a rental car?

Besides the desire for flexible work, employees have other expectations that impact travel policies. They expect their employer to put people first and support sustainability, according to an article about macro business travel trends. That may impact how travel decisions are made, especially if clients are involved.

There is not a one-size-fits-all answer to these changes, but a transportation company with knowledge of the latest travel trends and access to a network of mobility solutions can help. Moore added that Enterprise and National account managers can be that consultant to help travel managers make decisions and build a program that works for them.

“Our team of account managers has conversations every day with clients about the evolution of travel,” Moore said. “Transportation is one piece of the equation. We’re here to work through short and long-term solutions.”

Source: Business Insider

Digitalisation of Africa’s Airports Key to Economic Recovery

Critical airport worker and capacity shortfalls in Africa that threaten to keep flights and passengers grounded and impede the continents’ economic recovery can be rapidly and affordably addressed with the adoption of trusted, secure cloud-based solutions, according to SITA, the air transport industry IT and communications systems provider.

Recent experiences in the UK, Australia and other parts of the world exposed airports inability to cope with the surge in demand for air travel as countries are opened up and begin to put the COVID-19 pandemic behind them.

“As the recovery of Africa’s air transport market currently lags many bigger markets by a year, there is a golden opportunity for cash-strapped airports, including smaller provincial and regional facilities, to take pre-emptive steps and future-proof their operations to ensure they do not become transport and economic choke-points as they ramp-up. They can achieve this by digitalising their various passenger processing systems,” said Hani El Assaad, SITA’s President for Africa and the Middle East.

“With so many skilled and experienced people having left the industry during the pandemic, the clock is ticking for airports to ensure they are ready and able to meet the ever-increasing volumes of travellers, their luggage and cargo shipments. The solution is for all airports – from mega-hubs to small municipal and regional facilities — to digitalise and automate time-costly processes like passenger processing and baggage handling. Agile cloud technology platforms that are efficient, flexible, and scalable to fluctuating passenger volumes can help alleviate the pressure. By empowering passengers to use their mobile phones as a remote control for travel, we can reduce bottlenecks and offer a more seamless passenger journey,” El Assaad added.

Until recently, tech-infrastructure costs and support requirements deterred many smaller African airports from investing in digital systems. However, capable and scalable cloud-based technology has become significantly more affordable. It is now also well within reach of smaller, regional airports that need to meet the combined needs to be integrated into the global air transport system and to be able to instantly switch-on additional capacity.

In Africa, so much economic activity depends on airports having sufficient capacity to facilitate efficient, reliable, secure, and safe air transport services. By transforming the passenger experience and meeting their customer airlines’ demands for better efficiencies, smaller airports will be promoting themselves and the communities, industries, and markets they serve as safe, convenient, competitive, agile, and user-friendly destinations.

Over the past decades, the air transport industry has encouraged governments, regulators, and airport and airline operators to embrace digital technology. The result has been the advent of things we now take for granted, such as customer self-service check-in and self-baggage drop solutions, smart-phone boarding passes and various mobile apps, and Digital Health declarations and Trusted Travel Passes for storing and verifying boarding passes and COVID vaccination status, and more. SITA’s print is all over such technologies, and the post-pandemic recovery is a golden opportunity to accelerate and expand digitalisation and take full advantage of the benefits and opportunities it unlocks.

Source: This Day

DET launches ‘Service ambassador’ programme to enhance shopping experience

Dubai’s Department of Economy and Tourism (DET) has launched a ‘Service Ambassador’ programme with the objective of improving the customer experience in Dubai and thereby reduce consumer complaints. The programme, developed by DET’s Commercial Compliance and Consumer Protection (CCCP) Sector and Dubai College of Tourism (DCT) in cooperation with the Dubai Festivals and Retail Establishment (DFRE) features a specialised course designed to assist employees in businesses and commercial groups elevate the quality and efficiency of their customer service.

The Service Ambassador programme is part of a series of innovative initiatives being launched by CCCP to support business and enable merchants to maintain cordial relations with their customers. The course content will be offered online on DCT’s smart learning platform. Merchants can subscribe to the programme and trainees can log in and start learning from anywhere, anytime.

Mohammed Ali Rashed Lootah, CEO of Commercial Compliance and Consumer Protection sector stated that the Service Ambassador programme has been meticulously developed to address the most important aspects defining customer happiness, including service quality, warranty obligation as well as merchant-consumer relations and interaction.

“Shopping being a major factor in driving growth of tourism and retailing in Dubai, it’s important for businesses and all commercial outlets to maintain an exceptional level of customer service. The Commercial Compliance and Consumer Protection Sector and Dubai College of Tourism have jointly developed this programme drawing on our insights on the customer’s journey and expectations on shopping in Dubai,” Lootah said.

Ahmed Al Khaja, CEO, Dubai Festivals and Retail Establishment, said: “Dubai continues to grow its reputation as a top retail destination globally through an integrated shopping experience that features a broad spectrum of dining and entertainment. The new ‘Service Ambassador’ programme sheds light on the employees’ role and aims at elevating the customer experience through world class service. Excellent customer engagement does add a critical dimension to the shopping experience and is just one more compelling reason for UAE residents and global travellers to come to Dubai and also make a repeat visit to the city.”

Essa bin Hadher, General Manager, Dubai College of Tourism, said: “As Dubai aims to become the most liveable city in the world, it is crucial for those employed in customer-facing roles to deliver exceptional experiences across the board to both residents and visitors. The training programme that has been jointly developed by DCT and CCCP is structured to guide participants on ways of enhancing their customer service skills. Our College’s vast experience in developing and managing bespoke training programmes will be of immense benefit to both participants and their business establishments, as they work towards creating unique value and the best experience for customers.”

The Service Ambassador programme consists of two segments – one for customer service employees and sales staff, and another for supervisors of outlets and stores. Each programme is tailored to the role and functions of the respective target groups and their responsibilities towards consumers.

DET will supervise the programme for continuous improvements and support all subscribers and merchants to achieve the best outcomes. Ultimately, the programme seeks to support businesses and investors by increasing consumer confidence in Dubai and providing a unique shopping experience for residents and tourists.

Source: Zawya

Uganda’s tourism agency on charm offensive to boost cross border trade

Uganda Tourism Board (UTB) is seeking to partner with Kenyan tour operators to boost intra Africa tourism between the two East African countries with a focus on encouraging more tourists from Kenya to explore the natural, adventure, leisure, business and cultural attractions that Uganda has to offer.

The roadshow comes in the wake of an intensified campaign by UTB to reposition Uganda – The Pearl of Africa’ as a leading tourism destination in Africa under a new brand dubbed “Explore Uganda”. To kick off the activities, UTB has launched a roadshow at the Sarova Stanley Hotel in Nairobi, Kenya, from 23 rd to 25 th May in a bid to increase tourist arrivals from Kenya by 50% in 2023.

Kenya is a key tourism source market making up almost half of the African arrivals to the country. With Kenya’s developed travel trade sector, coupled with its connectivity to the rest of the world, Uganda Travel Trade partners will bank on the roadshow to secure partnerships that increase tourists to Uganda from Kenya. Over 278 operators from Kenya will create business linkages with 35 operators from Uganda.

Speaking at the launch ceremony, Uganda’s Deputy High Commissioner to Kenya, His Excellency Evans Aryabaha, hailed the tourism industry as a powerful catalyst that will enhance the bilateral and cultural relations between the two countries.

On her part, Ms Claire Mugabi, UTB Marketing Manager said that Kenya is the biggest source market of tourists in Uganda, and outlined future plans to increase awareness of Uganda as a destination that offers an adventure of a lifetime.

“Our refreshed destination brand identity captures the essence of the Pearl of Africa with its mesmerizing experiences catering to the needs of diverse travellers with its endemic and endangered flora and fauna, pleasant year-round weather, punctuated by unique scenery,” she added.

Kenya Association of Tour Operators Chair Mr. Fred Odek emphasized the need for joint tourism promotional activities by Kenya and Uganda tourism stakeholders.

“We see a great opportunity for outbound tourism to the East African Community (EAC) countries to get more tourists to Kenya and simultaneously send tourists from Kenya to other countries in the region. Uganda will benefit significantly owing to its geographical proximity and long history of good relations with Kenya,” said Mr. Odek.

Over 278 Kenya tourism and travel agents are expected to participate in the roadshow that is aimed at enhancing Destination Uganda’s presence in the Kenyan market. The event will also boost business-to-business opportunities while strengthening Explore Uganda brand in Kenya. The highlights of the three-day roadshow include Pearl of Africa brand launch in Kenya, direct engagements with key tourism trade partners, government representatives and travel media.

Before the pandemic, Uganda received over 1.5 million tourists in 2019 and registered over 512,000 travellers in 2020. However, the country’s tourism industry is poised for recovery with renewed emphasis on intra-African travel market as a key marketing strategy. in 2019, the Tourism sector contributed 7.7% of Uganda’s GDP and over 667,000 jobs. 58% of the Uganda tourism workforce is composed of women.

Tourism data from 2019 shows the top three Africa source markets in included Rwanda (32%), Kenya (24%) and Tanzania at 6%. President Yoweri Museveni described the new brand Explore Uganda, Pearl of Africa as a key strategy to re-imagine Uganda’s tourism sector and position the country as a competitive international travel destination.

Source: UG Standard

How travel companies can boost revenue with cloud

Eighty-two percent of travel executives say that increasing revenue is their top priority over the next two years, according to Accenture recent travel cloud survey. This view is no surprise considering the travel industry is still below 2019 revenue levels. But I think it raises two critical questions. What do customers want from travel companies? And how do travel companies deliver?

What do customers want from travel companies?

Seamless delivery.

Across almost every interaction, we (as customers) feel the strain of travel operations ramping back up. We feel the strain of staff as they cope with old and new demands, lower staffing levels, sickness and fellow travelers’ frustrations. We see the broken stitching between processes and departments across a journey that doesn’t go perfectly. And when we arrive at our destination, we’re relieved it’s over.

While we’re there, we see and feel the seams of hospitality travel technology in ways that weren’t noticeable before. Vouchers feel antiquated. Food waste is conspicuous. Queues are commonplace. Any lack of cleanliness is more noticeable—even though destinations are sparkling. When a switchboard operator asks, “To whom may I direct the call?,” it feels old-fashioned, but not delightfully quaint.

We want travel experiences to feel like other experiences, even though the experiences themselves are fragmented across so many travel service providers. First touch resolution is common across so many B2C industries that we suddenly expect it from travel companies.

And they can’t deliver (yet).

We also want travel companies to excel at upselling services—theirs and others’—that lift our experience through a retail marketplace. Many of us are open to paying for supplemental products and services from travel provider if they improve our experience. These extras could include everything from sports classes and fashion consultations to curated food boxes. Comfort, convenience and brand relevance will influence what actually sticks.

How do travel companies deliver?

In my view, travelers’ new expectations are a call for travel companies to finally break out of the strong process foundations laid at the beginning of the age of rail travel in the 1800s. These processes get in the way of delivering what customers want – new processes and technology is critical to doing this. The good news? Coming out of COVID, 51% of CXOs aspire to pivot into a tech-driven business model1, as part of their strategic priorities over the next two years.

It is certainly easy to say, “Here’s a quick fix. Migrate commercial, operational, and financial systems to the cloud and innovate from there. Today’s problems will be solved.” However, this isn’t true. The travel industry’s needs don’t have scalable quick fixes to these problems. Experience short-falls, contextual upsell problems, and rough seams between departments and providers, are a product of our existing, deeply ingrained ways of doing business in travel.

Right now, travel companies are unlocking smaller opportunities to grow ancillary revenue streams and improve differentiation, while many are avoiding addressing the larger opportunities. Ecosystem partnerships are essential. In fact, 44% of travel executives say that building ecosystem partnerships to combine complementary capabilities is a top business priority today. As digital blurs industry boundaries, there are so many possibilities to deliver multidimensional experiences.

Beyond migration to innovation

To take advantage of these possibilities and further diversify some of their revenue portfolio, travel companies need cloud. And it’s true that travel companies are migrating workloads to cloud and benefiting from cost savings and efficiency. However, those travel companies that go further and activate what we call the “Cloud Continuum” can have much greater success with ecosystem partners.

What does this “Cloud Continuum” mean? 

Cloud can already transform how ecosystem partners work together, making it easier to onboard new capabilities and service providers. It’s the foundation for simplified booking, merchandising discoverability and attribute-based selling, and integrated loyalty programs. In the Cloud Continuum, travel companies will move ever closer to interacting with travelers, combining who they are with their current transactional needs. None of this is possible unless travel companies adopt an ambition to seize cloud’s full potential.

A breakthrough approach to cloud

In our study, my colleagues found that Cloud Continuum companies make up just 12 to 15% of companies globally. Yes, cloud delivers cost savings and efficiencies for them, but their cloud investments are powering continuous reinvention. My colleagues also identified what it takes to become a Cloud Continuum company.

Know where you want to go. With so much pressure to transform experiences and serve “new travelers,” travel companies focus on acting for now instead of developing a flexible strategy over time. It’s essential to understand how cloud should factor into the ecosystem strategy with a realistic view of the gap between the current state and the desired future state.

Establish cloud practices to address your business needs. Continuum travel companies simultaneously focus on non-technology related capabilities across the workforce to smooth the transition and speed positive outcomes. In other words, the business must become infused with the vision of what improvements are possible now, using cloud technologies. Talent and skills development is hugely important because it generates the “pull” that helps improve the business processes driving agility.

Accelerate innovation to deliver exceptional experiences. Cloud Continuum companies make it a top priority to innovate with the experience. The thought shouldn’t be, “What can cloud do?” Rather, decision makers should ask, “What do travelers want from experiences? How do partners want to interact? And at a more technical level, how can cloud enable these expectations?” You can imagine this will require fundamental operating model changes in many travel companies.

Keep committing to the strategy. Cloud Continuum companies have an abundance mentality, not a scarcity mentality. Constantly thinking about costs and limiting resource use is naturally narrow because it ignores the downstream benefits from well-designed innovation and automation. The Cloud Continuum is the opposite of naturally narrow. It pushes leaders to think big and broadly—to go beyond the current state to see the possibilities down the road.

A continuum of new travel revenue opportunities

As we move into the next phase of travel’s revitalization, I expect that we’ll see many fascinating experience bundles from both aviation and hospitality players. The companies that excel here—in making the experiences seamless for the travelers and service providers they work with—will be on the Cloud Continuum, no doubt. They will find an abundance of opportunities to boost revenue.

Source: Accenture