HfS Blueprint Report - cognizant.com report is about business process and outsourcing services ......

The Services Research Company

MelissaO’BrienDirector,DigitalFrontOfficeandCustomerEngagementMelissa.obrien@hfsresearch.com

HfS Blueprint Report

Travel and Hospitality Customer Engagement ServicesExcerpt for CognizantSeptember 2017

©2017HfSResearchLtd.ExcerptforCognizant ConfidentialandProprietary│Page2

Table of Contents

TOPIC PAGE

ExecutiveSummary 3

MarketOverview 12

ResearchMethodology 20

ServiceProviderGrid 24

ServiceProviderProfile 27

MarketDirectionandRecommendations 30

About theAuthor 37

Executive Summary

©2017HfSResearch Ltd.Excerptfor Cognizant ConfidentialandProprietary│Page4

Introducing the HfS Travel and Hospitality Services Blueprint

HfSResearchislaunchingourfirstTravelandHospitalityServicesBlueprint,presentingacomparativeanalysisoftheinnovationandexecutioncapabilitiesofserviceprovidersinthismarket.Thisresearchwilltakealookattheevolutionofthetravelandhospitalityservicesmarkettoamoreagile,consumer-centricAs-a-ServiceEconomythatincludesincreasinglydiversetalent,analytics,andplatform-basedservices.

InthisBlueprintwewillalsousetheEightIdealsoftheAs-a-ServiceEconomyasasignificantelementofourserviceproviderassessmentmethodology.

ThescopeoftheBlueprintwillbeservicesthatsupportcustomerexperiencewithclientsinthetravelandhospitalityindustry:airlines,hotels,touroperators,travelintermediaries,carrentalcompanies,globaldistributionsystems,casinos,andcruiselines.

Thisreportisaboutbusinessprocessandoutsourcingservicesthatsupportcustomerexperience,andhowtheyfitintotheOneOfficeframework.Digitaltechnologyisanincreasinglyintegralpartoftheseservicesandconsideredinthisanalysis.StandaloneITservicesandoutsourcingarenotcoveredinthisreport.


Travel and Hospitality Value ChainThis report focuses on customer experience related front-office services and other business operations support services specific to the industries outlined below. Technologies, operating models, methodologies, and platforms are enabling elements of service delivery.

CustomerExperienceFront-OfficeServices

• Customerexperiencedesign• Reservations andsalesbookings• Rate quoting• Customerexperiencemanagement(customerservice,

sales,andmarketing,includinginboundandoutboundinteractions)

• Customeranalytics• Loyaltyprogrammanagement• Guestrelations• Frequentflierhelpdesk

EnablingTechnologies

>> Digitizationandroboticautomation>> Analytics>>Mobility>> Socialmedia>> Cognitivecomputing>> ArtificialIntelligence

OperatingModels,Methodologies,andPlatforms

>> Outsourcing>> Sharedservices>> GBS>> COEs>> BPaaS/SaaS/IaaS>> DesignThinking

Other TravelandSupportServices

• Revenueaccounting(passengerandcargo)• Revenueintegrity• Revenuemanagement• Airlineoperations(engineeringsupport,flightoperations

support,etc.)• Irregularoperationsmanagement(flight,crew, customer

recovery,mishandledbaggage)• Financeandaccounting• Fraudprevention• Refunds• Othertravel-specificprocesses

Travel andHospitalityClients

>>Travelintermediaries(onlinebookingcompanies, corporatetravel providers)>>AirlinesHotels>>Touroperators>>Carrentalcompanies>>Casinos>>Cruiselines>>Globaldistributionsystems>>Touroperators >>Airports>>Surfacetransportation


Key Highlights: State of the MarketSeveraldisruptiveforcesaretakingholdinthetravelandhospitalityindustries,forcingenterprisesandserviceprovidersaliketore-thinkthewaytheyapproachcustomerexperience.

n Competitivebarrising:Thetravelandhospitalityindustriesarerifewithcompetition,muchofwhichrestscompletelyonusingcustomerexperienceasadifferentiator.

n Businessmodeldisruption:Newbusinessmodelsinthe“sharingeconomy”areforcingtraditionaltravelandhospitalitybusinessestorethinktheirvalueproposition.Endcustomerswantingthe“Amazonexperience”arechallengingenterprisestobecomemorecustomer-centric.

n Partnershipecosystem:Thepartnerecosystemisbecomingmoreandmoreimportantastravelandhospitalitycompaniesseeopportunitiestoleverageloyalcustomerbases (e.g.,QantasandAirbnb)

n Mobilityis“driving”adifferentparadigm:Onlineactivityinthetravelspace,suchasbookingflightsorhotels,isincreasinglymobile,forcingare-designofthecustomerjourneyfromstarttofinish.

n Acquisition activity: Heavy acquisition activity, in particular in the hospitality space, generateschallenges and opportunities with issues like tech platform consolidation, and updating policies andprocedures.

n Consumer empowerment: The role of social media for sharing poor customer experiences anddoing research for travel choices is a dynamic force impacting brand perception and influencingbuying decisions. Consumer-to-consumer interaction is more direct and impactful on a travel andhospitality business than ever before.


Customer Experience Is Everything in Travel and HospitalityAsaresultofthisdisruption,travelandhospitalitycompaniesarelaserfocusedondifferentiatingthroughexperienceandmakingthemostoftheircustomerloyaltyprograms andopportunitiestoengage.ThefocusofthisreportisonhowserviceprovidersrolluptheirservicestocustomerexperienceanddeliveronvariouselementsofCXincluding:

n Supportingloyaltyprogramsthatfostermeaningfulcustomerrelationships

n Usinganalyticstoidentifyandunderstandcustomerbehaviorsandpreferences

n Maintainingservicelevelsandcustomersupportduringunpredictedandunavoidableevents(e.g.,weatherrelatedevents)

n Creatingseamlessexperiencesfortravel-specificoccurrencessuchasrebookingflights,lostluggage,etc.

n Curatingandcontrollingrichmultimediacontentacrossplatforms;makingdigitalassetsmoreaccessible

n Identifyingwaystoimprovecustomersatisfaction(CSAT)andimprovepersonalization(seenextslide)


Improving CSAT is Driving CX Strategy for TravelAnd travel companies have a greater focus on personalization than enterprises overall

0%

10%

20%

30%

40%

50%

60%

70%

80%

Implementingdigital

customerengagement

Improvingcustomersatisfaction

(CSATandNPS)

Loweringcosts Reducingchurn Sourcinginternaltalenttodeliveroncustomerexperience

Makingserviceeffortlessandconvenient

Improvingcustomerspending

Personalization Improvingcustomeracquisition

TravelRespondents,n=32 AllRespondents,n=154

Whatarethemostimportantgoalswhenitcomestoyourorganization’scustomerexperiencestrategytoday?

Source:OneOfficeCustomerExperiencesSurvey,HfSResearch,August2017


Key Highlights: State of the Market, continuedTrendsinbusinessprocessservicesandoutsourcingforthetravelandhospitalityindustry:

n Themostmatureandreadilyoutsourcedfunctionsaretraditionallyhorizontalserviceslikecustomerservice,butwithatravelfocusonreservationbookingorloyaltyprograminformationandguestrelations.Financeandaccountingbackofficeisalsoverymatureinthisspace,inparticularforconsolidationofprocessesasaresultofM&Aactivityinthehotelspace.

n Someinteresting,emergingareasofservicesincludecustomerjourneydesign,inparticularforairportexperiencesandthere-designofloyaltyprograms.Manyloyaltyprogramsarenowfocusedonidentifyingandaddressingthecustomerswhohaveagreaterpropensitytopurchasemoreinthefuture.Greatervalue-added,vertical-specificservicesincludeaviationinteractionplatformservicesthatintegratepassengerdataforcrewoperations,marketing,sales,andcustomerservices,aswellasservicesthatautomatere-bookingandcustomernotificationsforflightdisruptions.

n Theuseofautomationisrapidlymaturinginthisspace.Travelandhospitalitycompaniesareusingautomationtoincreaseefficiencyandprovideseamlesscustomerexperience.Dedicatedinnovationcentersarepoppingupgloballyinparttoaddresstheautomationtrend.

n Industryexpertiseisanimportantrequirementforserviceproviders.Notonlyaretravelclientsrequiringserviceproviderstohaveexpertiseintheirparticularindustryniche,butalsoseekingthoughtleadershipfromacrossverticalsandunderstandingwhatotherindustriesaredoingtobecomemorecompetitive.


Key Service Provider Highlightsn As-a-ServiceWinnersinthisBlueprintare

distinguishedbyinnovationandexecutioncapabilities:

• AccentureisusinginnovativedesignandconsultingtohelptransformCXinthetravelandhospitalityindustry

• Cognizantisleadingwithcustomerexperiencedesignandatalent-focusedstrategyforCXoutcomesinthetravelandhospitalityspace

• Concentrix isusingfront-officeservicesdeliveryexecutionexcellencetotransformintoastrategicpartnerfortravelandhospitalityclients

• TCS’strongtechnologyandtalentstrategyisdrivingcustomerexperiencesfortravelandhospitalityclients

• WNS’deepindustryheritageandexpertiseenablesexecutionexcellence,alongwithproprietarytechnologyforinnovation

As-a-ServiceEconomy

ProvidersincludedintheAs-a-Service Winner’sCircleutilizeoperatingmodels,enablingtechnologiesandtalenttodrivebusinessoutcomesthroughoutsourcing.Thefocusoftheseprovidersisonwhatmatterstotheendconsumer.

HfSusestheword“economy”todescribethenextphaseofoutsourcingasanewwayofengagingandmanagingresourcestodeliverservices.

TheEightIdealsoftheAs-a-ServiceEconomy:

1. Write OffLegacy2. DesignThinking3. CollaborativeEngagement4. BrokersofCapability5. IntelligentAutomation6. AccessibleandActionableData7. Holistic Security8. Plug-and-PlayDigitalServices

Source:BewareoftheSmoke:YourPlatformIsBurningbyHfSResearch,2015


Service Provider Highlightsn TheHighPerformershaveinnovativeapproachestotravelandhospitalityservices:

• Hexaware istakinganautomation-firstapproachtoitsgrowingtravelandhospitalitypractice• HCL isusingstrongtalentandDesignThinkingcapabilitiestoimprovecustomerengagementintravel

andhospitality• Intelenet isanup-and-comingproviderwithalaserfocusonthetravelindustry,supportedbyatravel-

specificproprietarytechnologysuite• Luxoft isusingdigitaluserexperiencedesigntore-imaginecustomerjourneysfortravelclients• SutherlandGlobalServicesisleadingtravelandhospitalityclientswithdesignthinkingand

sophisticatedcustomerinteractions• TechMahindraisleveraginggreatcustomerrelationships,smartpartnerships,andproprietary

technologytotackletravelclients’challenges• Teleperformance isacontactcenterpowerhousebringingdeliveryexcellenceandCXthought

leadershiptotravelclients

n TheExecutionPowerhousesstandoutfortheirstrongexecutioncapabilities,inparticular:

• Acticall Sitel Groupisacustomerexperienceexpertdevelopingaportfoliotoaddressallaspectsofcustomerengagementintravelandhospitality

• EXL isdevelopingatravelandhospitalityportfoliowithsolidcustomerrelationshipsandanalytics• Genpactexhibitsexecutionexcellence,providingsoliddeliveryfortravelandhospitalityclients• Wiprodemonstratesoperationalexcellenceandismovingupthevaluechaininthetravelspace

Market Overview


Key Trends Impacting the Travel and Hospitality Space

• Ever-increasingchannels forengagement• Mobileisthebiggestchallengeandopportunityfortravel

CustomerChannelsandTouchPoints

• EnormousopportunitytousedataintravelformorepersonalizedexperiencesPersonalization

• Businessmodelsintravelarefundamentallychanging,withnewentrantsposingcompetitionfortraditionaltravelcompanies

MarketDisruption:TheExperience

Economy


Whatarethemostchallengingaspectsofexecutingdigitalcustomerengagement?

Data and Analytics are Most Challenging to Travel Firms


0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Findingandretainingtalenttodeliveronnewcustomerexperienceexpectations

Understandingcustomerexpectationsandpreferences

Managingcustomerengagementonsocialmediaandpublicforums

Implementingself-serviceandautomatedcustomerengagement

Havingtherightdataanddevelopinganalytics

TravelRespondents,n=32 AllRespondents,n=154


Travel and Hospitality Client Needs and Challenges

n Analyticscapabilitiestounderstandcustomerdata,segmentit,andapplyittoloyaltyprograms,marketing,andcustomerservice.

n Consolidatingandmanagingprocessesacrossdisparatesystems,inparticularasaresultofM&Aactivity.Thisincludesaneedforkeypartnershipsinthetravelandhospitalitytechnologyspace,forexample,systemssuchasAmadeus,Indra,Sabre,Galileo,andWorldspan

n Automationforgreaterefficiency,particularlyinback-officeprocesses,previouslylaborintensiveareassuchasfareaudits,andself-serviceforcustomerinteraction.

n Manageinteractionvolumefluctuationsduringseasonalhighsandlowsorweathereventsandnaturaldisasters.

n Thoughtleadershiptomitigateintensemediascrutiny:needtointegratebackofficewiththefronttocreatemoreinsightful,predictive,andseamlesslifecycleinteractionwithcustomers– the“OneOffice”omnichannelexperience(seenextslides).

Dataonthepreviousslideshowsthattravelrespondentsarelesschallengedbyunderstandingcustomerneedsandpreferences,perhapsbecausetheyarelimitednowbythechallengeofgettingtherightanalyticsanddataandusingittotheirbestadvantage.

Travelandhospitalityclientsneedhelpfromtheirserviceproviderpartnershipsinareassuchas:


The Future of Operations: The Digital OneOffice™

Effectivefutureoperationswillbeorientedaroundthecustomerandstakeholderexperienceanduseanalyticsanddigitaltechnologytohavepredictiveinsightforproactiveactionandbetteroutcomes– e.g.,higherquality,speed,profitability.Inthetravelandhospitalityspace,thismeansconnectingtheunderlyingsystemstoallowpassengerandguestdatatoflowmorefreelyandre-thinkingthedesignofthatcustomerexperienceonthefrontend.


Accessible Data and Empowered Employees to Avoid PR Disasters

Under Intense Scrutiny: The Role of the Media

AnalyticsandSegmentation

Inparticularforairlines,poorcustomerserviceincidentsgettonsofmediaattention.Bothsocialandtraditionalmediaarelyinginwaittotakedownthenextairlinethatcan’tdeliveraflawlesscustomerexperience.

Thetravelindustryneedstofindawaytogivetheirfrontlinestafftheautonomyandsupporttomakeappropriatedecisionsthatwillhelpprotectthebusinessresults(e.g.customerloyaltyandpositivebrandimage)thatimpactshort- andlong-termrevenues.Italsorequiresatalentstrategyandculturetosupportit.

UsingtheDigitalOneOfficeconceptscanhelpT&Hcompaniesavoidthesedisasters,andrespondappropriatelywhenproblemsarise.


Welcome to the As-a-Service EconomyTravelandhospitalityexecutiveshaveanumberoflevers–operatingmodeldesign,talentintheworkforce,digitaltechnologies,andaburningplatformforchange– topulltohelpthembecomemorestrategicpartnersinthebusiness.

HfSusestheword“economy”toemphasizethattheemergingnextphaseofoutsourcingserviceengagementisamoreflexible,outcome-focusedwayofengagingandmanagingresourcestoimpactoutcomes.

OperatingintheAs-a-ServiceEconomymeansarchitectinguseofincreasinglymatureoperatingmodelsandenablingtechnologiesandtalenttodrivetargetedbusinessoutcomes.Thefocusisonvaluetotheconsumer.

I.#THE#OPTIMUM#OPERATING#MODEL#Outsourcing+|+Shared+Services++GBS+|+BPaaS/SaaS/IaaS+|+Crowdsourcing+

II.#EMPOWERING#TALENT#TO#MAKE#IT#POSSIBLE#

Capabili=es+over+Skills+|+Defining+Outcomes+|+

Crea=vity+|+Data+Science+

III.#A#BURNING#PLATFORM#FOR#CHANGE#

Globaliza=on+of+Labor+|++HighGgrowth+Emerging+Markets+|+Disrup=ve+Business+Models+|+

Consumeriza=on+

AS7A7SERVICE7ECONOMY#

Agility+|+Collabora=on++OneGtoGMany+|+Outcome+Focus++

PlugGandGPlay+Services+

IV.#TECHNOLOGY##TO#AUGMENT#KNOWLEDGE#LABOR#Digi=za=on+&+Robo=c+Automa=on+|+Analy=cs+|+Mobility+|+Social+Media+|+Cogni=ve+Compu=ng+

TOOLS/INFRASTRUCTURE# GOVERNANCE#


FixedAssets

2DesignThinking

3BrokersofCapability

1WriteOffLegacy

4CollaborativeEngagement

7HolisticSecurity

5IntelligentAutomation

6Accessible&Actionable

Data

8Plug-and-PlayDigitalServices

SOLUTIONIdeals

LEGACY

ECONOMY

AS-A-SERVICE

ECONOMYCHANGEMGMTIdeals

§ RealizingtheOneOffice visionmeanschangingthenatureandfocusofengagementamongenterprisebuyers,serviceproviders,andadvisorstobemoreagileandcollaborative,focusedonsharedoutcomes

§ “As-a-Service”unleashespeopletalenttodrivenewvaluethroughsmartercombinationsoftalentandtechnologyfocusedonbusinessresultsbeyondcostreduction

There are Eight Ideals to Enable the Journey to OneOffice

LeveragedAssets


Research MethodologyDataSummaryn DatawascollectedinQ22017frombuyersand

serviceprovidersinthetravelandhospitalityindustry

ParticipatingServiceProviders

§ TalesfromtheTrenches:Interviewswithbuyerswhohaveevaluatedserviceprovidersandexperiencedtheirservices.Somecontactswereprovidedbyserviceproviders,andotherswereinterviewsconductedwithHfSExecutiveCouncilmembersandparticipantsinourextensivemarketresearch.

§ Sell-SideExecutiveBriefings:Structureddiscussionswithserviceprovidersregardingtheirvision,strategy,capability,andexamplesofinnovationandexecution.

§ PubliclyAvailableInformation:Thoughtleadership,investoranalystmaterials,websiteinformation,presentationsgivenbyseniorexecutives,industryevents,etc.

ThisReportIsBasedon:


HfS Blueprint Scoring: Travel and Hospitality Services

Execution 100%

30%

30%

25%

15%

Innovation 100%

Talentstrategy 25%

VisionforOneOfficeevolutionintravel andhospitality 30%

ApproachtohelpingclientsWriteOffLegacy 15%

Roadmapforuseoftechnology tosupportbusinessprocesses 15%

Roadmapforaccessibleandactionable dataandanalytics 15%

Qualityofcustomerrelationships• Accountmanagement,incorporatingcustomerfeedback

Servicedeliveryexecution• Completenessof offerings,executionofprocess,geographic

footprintAbilitytoattractand retaintalentProgressonembeddingautomation


Execution DefinitionsExecution Howwelldoestheproviderexecuteonitscontractualagreementand

howwelldoestheprovidermanagetheclient/providerrelationship?

Qualityofcustomerrelationships Howdoclients rateaccountmanagement?Howwelldoestheserviceproviderincorporateclientfeedbackintooperations?

Servicedeliveryexecution

Howwelldoesthe serviceproviderperformitsservices(e.g.,deliveryconsistency,stability,meetingtargetedSLAs,andimpactingbusinessoutcomesthatmattertoyou)?Howcompleteistheserviceprovidersbreadthofofferings,executionofprocess,andgeographicfootprint?

Abilitytoattractand retaintalent Howwelldoestheserviceproviderattractandretainthebest talenttoenableongoingservicedeliveryofdigitaltravelandhospitalityoperations?

ProgressonembeddingautomationDoestheserviceprovideruseautomationtoimprovetheefficiencyandeffectivenessof servicesfortravelandhospitalityclients?Istheserviceproviderlookingatwaystoincreasetheintelligenceofautomation?


Innovation Definitions Innovation Innovationisthecombinationofimprovingbothservicesandbusiness

outcomes.

Talentstrategy

Doestheserviceprovider’stalentstrategytakeintoaccountthechangingtalentneedsasaresultofdigitaltechnology?Doestheserviceproviderthinkaboutwaysitcanprepareitsworkforceforitstravelandhospitalityclients’futureneeds?

VisionforOneOfficeevolutionintravelandhospitality

Doestheserviceproviderhaveideastoinvestinchangeonitsclients’behalf?Howcomplete istheserviceprovider’svisionforthefutureofthetravelandhospitalityindustry,anddoesitcomplementtheoverallcompanystrategyfordigitaltransformation?

ApproachtohelpingclientsWriteOfflegacy

Istheserviceproviderhelping clientspivottheirtraditionaloperationstothecustomer-focused,digitalOneOfficebyusingagilemethodology,DesignThinking,anddevelopingastrongpartnerecosystem?

Roadmapforuseoftechnology tosupportbusinessprocesses

Howistheserviceprovider usingplatforms,whetherproprietaryorpartnershipfocused,tosupportitstravelandhospitalityclients?Istheserviceproviderlookingatwaystoincreasetheintelligenceofautomation?

Roadmapforaccessibleandactionable dataandanalytics

Istheserviceproviderofferingorprovidinganalytics?Whataretheusecasesandexamples andplansforthefuture?

Service Provider Grid


TodistinguishserviceprovidersthatshowcompetitivedifferentiationinaparticularlineofdeliverywithprogressinrealizingtheAs-a-ServiceEconomyofbusinessoutcome-oriented,on-demandtalentandtechnologyservices,HfSawardstheseprovidersthe“As-a-ServiceWinner’sCircle”designation.

Execution Innovation

As-a-ServiceWinner’s CircleshowexcellencerecognizedbyclientsintheEightIdealsin executionandinnovation

Collaborativerelationshipswithclients,servicesexecutedwithacombinationoftalentandtechnology asappropriate,andflexiblearrangements.

Articulatevisionanda“newwayofthinking,”haverecognizableinvestmentsinfuturecapabilities,strongclientfeedback,and aredrivingnewinsights andmodels.

HighPerformersdemonstratestrongcapabilitiesbutlackaninnovativevisionormomentuminexecutionofthevision

Executesomeofthefollowingareaswithexcellence:worthwhilerelationshipswithclients,servicesexecutedwith“greenlights,”andflexibilitywhenmeetingclients’needs.

Typically, describeavisionandplanstoinvestinfuturecapabilitiesandpartnershipsforAs-a-Service,andillustratean abilitytoleveragedigitaltechnologiesand/ordevelop newinsightswithclients.

High Potentialsdemonstratevisionandstrategybuthaveyettogainmomentuminexecutionofit

Earlyresultsandproof pointsfromexamplesinnewserviceareasorinnovativeservicemodels,butlackscale,broadimpact,andmomentuminthecapabilityunderreview.

Well-plotted strategyandthoughtleadership,showcaseduseofnewertechnologiesand/orroadmap,andtalentdevelopmentplans.

ExecutionPowerhousesdemonstratesolid,reliableexecutionbuthaveyettoshowsignificantinnovationorvision

Evidence ofoperationalexcellence;however,stillmoreofadirectiveengagementbetweenaserviceprovideranditsclients.

Lack ofevidentvisionandinvestmentinfuture-orientedcapability,suchasskillsdevelopment,“intelligentoperations,”ordigitaltechnologies.

Guide to the Blueprint Grid


INNOVA

TION

EXECUTION

ExcellentatInnovationandExecutionInvestinginInnovationtoChange

BuildingAllCapabilities ExecutionIsAheadofInnovation

HfSWINNER’SCIRCLE

EXECUTIONPOWERHOUSES

HIGHPOTENTIALS

HIGHPERFORMERS

HfS Blueprint Grid: Travel and Hospitality Services

ConcentrixHCLWNS

Cognizant

Luxoft

Intelenet

Genpact

TechMahindra

Accenture

EXL

TCS

WiproHexaware

Acticall SitelGroup

Sutherland

Teleperformance

ExcerptforCognizant

Service Provider Profile


Scoring Criteria HighlightsExecution

• Qualityofcustomerrelationships (accountmanagement,incorporatingcustomerfeedback):Wipro,Accenture,TCS,andHexawarestoodoutfortheexcellentclientfeedbackonbeingasolidpartnerwithstrongrelationshipswiththeirclients.

• Servicedeliveryexecution (completenessofofferings,executionofprocess,geographicfootprint):WNS, Teleperformance,WiproandConcentrixallscoredhighforservicedeliveryexcellence.

• Abilitytoattractandretaintalent:Teleperformance andActicallSitel Group,thetwocustomerengagementexperts,havegreatexpertisearoundattractingandretainingtherighttalent.

• Progressonembeddingautomation:Most ofthestoriesweren’tyetintherealmofIntelligentAutomation,butitisdefinitelyanaspirationformanyoftheserviceproviders.Hexaware takesaboldstancearound“automationfirst,”andWNS,TCS,ConcentrixandAccentureallprovidedsolidcasestudiesforimprovingbusinessoutcomesthroughautomation.

Innovation

• Talentstrategy: CognizantandTCSbothhadstrongtalentstrategystories,withinvestmentsinhumanscienceandtravel-specifictrainingprograms.

• VisionforOneOfficeevolutionintravelandhospitality:AccentureworkedwithamajorSouthAmericanairportthroughthedevelopmentofanairportappunderitsConnectedTravelPlatform.Thenewappprovidestravelerswithinformationonflightstatus,travelalerts,navigationthroughouttheairport,retailandotherservices,aswellasaccesstofoodandbeveragepromotions,andalsofacilitatestravelerstopayforairportparkingdirectlythroughtheirmobiledevice.

• ApproachtohelpingclientsWriteOfflegacy:CognizantpartneredwithamajorMiddleEasternairlinetohelpthemdefinetheirend-to-enddigitalstrategy,frombookingfromreturninghome,andeverystepinbetween.Manyofthefeaturesideatedandtestedarenowpresentindigital,airport,andflightexperiences.

• Roadmapforuseoftechnology tosupportbusinessprocesses:WNS andIntelenetbothhaveanimpressivesuiteofproprietarytechnologiesfocusedveryspecificallyonthetravelverticalandsolvingtravelclients’uniqueissues.

• Roadmapforaccessibleandactionabledataandanalytics:WNShasastronganalyticsofferingwhichtravel clientsdependonforcustomerinsightandoperationalefficiency.Sutherland'sacquisitionofNuerova hasaddedstrengthtoitsanalyticscapability.


Cognizant

RelevantAcquisitionsandPartnerships KeyClients GlobalOperationsCenters ProprietaryTechnologiesRecentAcquisitions:• 2016: Mirabeau, IdeaCouture,

exclusivestrategicpartnershipandtheacquisitionofanownershipinterestof49%inReD Associates

Partnerships(relevanttoT&H):• Adobe• OracleHospitality(Micros)• Indra (workinprogress)• AboveProperty (inprogress)• Farelogix (inprogress)

Totalnumberoftravelandhospitalityclients:110

Partiallistoftravel andhospitalityclients:• AmericanAirlines• WyndhamHotelsGroup• MGMCasinosandResorts• TUIGroup,UK• EtihadAirlines• LargeUSEastCoastAirline• Globalonlinetravelbrand• Largeglobaldistributionsystem• UK-basedairlinegroup• UK-basedglobalhotelchain• InternationalairportinLondon• Globalprivatelyownedcarrentalcompany• World'slargestcommercialrealestateservicesfirm• World'slargesthamburgerchain

Headcount:Cognizantdoesnotdisclose

Locations:• NorthAmerica: 21%(7major

locationsatAtlanta,Denver,Chicago,Dallas,Seattle,Tri-Statearea,andFlorida)

• EMEA:11%(AbuDhabi,Dubai,Amsterdam, Berlin,Frankfurt,Geneva, Rome, Grenoble, Hamburg,Madrid, Munich, Oslo,Paris,London,Gatwick,Luton)

• India: 60%(Bangalore,Chennai,Coimbatore, Delhi, Gurgaon,Hyderabad, Kochi, Kolkata, Mumbai,Noida, Pune)

• Others: 8%(Philippines,Thailand,Australia,HongKong,Argentina)

• OrderServ OnlineFoodOrderingPlatform: Omnichannelorderingsolutiondesignedprovidesflexibilityofacustomonlineorderingapplicationandagilityofmarketreadyproducts.

• BigDecisions BusinessSolutionsPlatform:A“systemofintelligence”platformthatenablesorganizationstoturndataintoactionableinsights.BigDecisions’advanceddataingestioncapabilitiesandreadytouseSmartConnectorsmakeitpossibletorapidlyintegratevarietyofdatafromnewandexistingsources.

• RetailMate: AcustomerexperienceplatformbuilttobringIoT conceptstoscalebyoptimizingdigitalin-storeoperationsandcustomerexperienceneedsofretailers(canalso be usedinairportretailandinrestaurantchainsforcustomeridentification,inventorymanagement,andcustomerservicethroughdigitalandInternet ofThings)

• APEX: Aplatformprovidingasingleintegratedviewofenterpriseinformationmanagement, includingpredictiveanalytics.

Strengths Challenges

• Digitalcustomerexperiencedesignandjourneymapping:Cognizantdemonstratesexpertiseinthedesignofcustomerjourneysfortravelandhospitalitycompanies.Cognizantusesa“TravelRibbon”frameworktodepictthecustomerjourneytoanalyzeusecasesacrossthetravelconsumer’slifecycle.Thistypicallygoesthroughthephasesofinspirationandawareness,search,book,journey,stay,andfeedback;bycustomizingthisframeworktovariousclientscenarios,Cognizantmapscurrentbusinessprocessesandenvisionhowtheindustrycanadapttovariousvariousdisruptiveforces.Cognizant’sacquisitionhistoryhasalsoreinforceditscommitmenttoCXdesign.The2016acquisitionofMirabeau,adigitalagencywithexpertsinthefieldsofcustomerexperiencedesign,marketing,developmentandcloudservices andbroughtvarioustravelandhospitality clientstoCognizant’stravelandhospitalityportfolio,including KLM-AirFrance,Transavia,andChinaSouthern.

• FocusonCXoutcomes:Cognizant’scasestudiespresentedwerelargelyalignedtooutcomesthatimpactcustomerexperiencesuchasloyalty,minimizingcustomereffortandincreasingmeaningfulengagementwithtravelandhospitalitybrands.Cognizantisflexiblewithoutcome-basedcontractingandfocusesonengagingwithclientsusingnewpricingmodels.Cognizantalsodisplaysastronguseofdesignthinkingonthefrontendandthoughtleadershipfordigitalbusiness.

• Talentstrategy:Cognizant’scommitmenttoevolvingtalentforthefutureofworkisdemonstratedinsomerecentinvestments,suchasitspartnershipwithReD Associatesforexample;ReD specializesinusinghumansciencetounderstandconsumerbehaviorandemploysbehavioraleconomists,anthropologists,sociologists,andethnographers.

• Acquisitionintegrationandculturalshift:AcquisitionssuchasIdeaCoutureandReDAssociatesarelikelytohavedifferingculturesandvaluesfromaservicesorganization,whichcancertainlybeanasset;however,apotentialchallengewillbetoenablethoseculturestosyncandthrivewithinaserviceproviderorganization,inordertooptimizeandusethosetalentassetstotheirfulladvantageaswellasprotectfrommoraleissuesandturnover.

BlueprintLeadingHighlights

• Talentstrategy• VisionforOneOfficeevolutionin

travelandhospitality• Abilitytoattractandretaintalent

Winner’s CircleLeadingwithcustomerexperiencedesignandatalent-focusedstrategyforCXoutcomesinthetravelandhospitalityspace

ValueChainServicesCoverage:

FrontOfficeCustomerExperienceServices

OtherTravelandSupportServices

Market Direction and Recommendations


Travel and Hospitality: The Eight Ideals in 2020

Ideal As-a-ServiceIdealDefinition Non-Existent Initial Expansive Extensive All

Pervasive

WriteOffLegacyUsingplatformbasedsolutions,DevOps,andAPIecosystemsformoreagile,lessexception-orientedsystemsandprocesses 2017 2021

DesignThinkingUnderstandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds 2017 2021

Brokers ofCapability

Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps 2017 2021

CollaborativeEngagement

Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes 2017 2021

IntelligentAutomation

Using ofautomationandcognitivecomputingtoblendanalytics,talent,andtechnology 2017 2021

AccessibleandActionableData

Applyinganalyticsmodels,techniquesandinsightsfrombigdata,real-time 2017 2021

HolisticSecurityProactivelymanagingdigitaldataacrossservicechainofpeople,systems,andprocesses 2017 2021

Plug-and-PlayDigitalBusinessServices

Plugginginto“readytogo”business-outcomefocused, people,process,technologysolutionswithsecuritymeasures 2017 2021


What’s Next? Hotels and Airlines of the Future…We’llcontinuetoseebotscreepin…butnotatafeverishpace.Mosttravelandhospitalitycompanieswespoketoareinthemidstofevaluatingandadoptingmoreintelligentautomationbothforsupportfunctionsandcustomerinteraction.Thegreatestuptickincustomer-facingautomationthusfarhasbeenwithchatbotsonmessagingappsforbookingfunctions.Automationinvestmentsmovingforwardforcustomerinteractionswillbefocusedonmoreintelligentsolutionslikecognitiveandvirtualagents.SeeKLMUsesFacebookMessengertoStimulateCustomerInteractions

WhateverhappenedtothatvelociraptorrobotstaffedhotelinJapanin2015?

Whatbestdescribesyourinvestmentorinterestinchatbotsandvirtualandcognitiveagentsforcustomerinteraction?(T&Hrespondents)


0%

20%

40%

60%

80%

Currentlyusing Evaluating Nointerest

Chatbots Cognitiveandvirtualagents


What’s Next? continued

§ Integratingwearabletechnologiesandsensors:Thetravelindustryisstartingtoembraceconnecteddevices,inparticularwearables,fordeliveringcustomerexperience.Usingawristbandorpendantasawaytoorderfoodanddrinksorasaroomkeyatahotel,forexample,arebecomingmorecommonplace.Thistrendwillprovidemoreopportunitiesfordesigningfrictionlesscustomerjourneys,andgeneratemuchmoredatawhichwillbeachallenge– andanopportunity– touseincreatingpersonalizedexperiences.

§ Moreaugmentedreality:Augmentedrealityisalsobecomingmoremainstreaminthetravelindustry.Thebigopportunityhereisformarketing,wheresavvymarketerscanuseaugmentedrealityimageseitherbeforeatravelexperiencetomakeorimprovethesale,orduringtraveltoenhancetheexperienceandincreaseancillarysales.Thiswillprovideopportunitiesforexperiencedesignaswell.

§ WritingOffLegacybecomeslessabouttechnologyandmoreaboutmindset: Thereisnodoubtthatthetravelandhospitalityindustriesaremiredinlegacytechnology,butasthesecompaniesfindworkaroundsandwaystomaketheseplatformsmoreadaptableandconnectedtomorenimblesystems,therealchallengebecomesarethinkofthelegacymindset.Thismeanslookingathumanfocuseddesign– startingwiththeemployeeandultimatelyfocusingonthecustomer.Travelandhospitalitycompanieswillneedtodothisinthefutureinordertostaycompetitive.


2017 Recommendations: Travel and Hospitality Enterprise Buyers

Consideringthesetrends,it’sgoingtobeachallengetoensurethattravelandhospitalitycompaniescankeepupwithcustomerexpectationsamidthewavesofchange.

§ Findtherightblendofautomatedandhumantouchpointstomeetcustomerexpectations.Mosttravelcompanieshavebeenearlyexperimenterswithbotsandautomatedtoolsforbookingticketsandthelike.Manyoftheserviceprovidersinthismarkethaveexpertisearounddesigningtherightblendofhumanandself-serviceorautomatedinteraction– forexample,howtoknowwhentoescalatetheinteractionandpivotabottoahuman.Thiswillbeincreasinglycriticalasautomatedmessagingmatureswithchatbotsandvirtualagents.

§ Useaccessibleandactionabledatatoempowerthefrontline(andpotentiallyavoidCXdisasters):Givethe“frontline”theautonomytomakedecisionsbyhavingaccessibleandactionabledataattheirfingertipswithsomebuilt-inrulesforguidanceandstandards.

§ EmbraceDesignThinkingasanongoingmethodtopromotecustomer-centricityanddesignfrictionlesscustomerexperience. Inadditiontoreachingacrossorganizationalsiloes,servicesbuyersalsoneedtogetoutoftheircomfortzoneswhenitcomestoahuman-centricdesignthinkingapproachinternallyandwithserviceproviders.

§ Aligntheentireorganizationtocustomercentricity(OneOffice):Breakoutofthelegacymindsetsandsiloestoalignthewholeorganizationtothecustomer– andlookforserviceprovidersthatalsotakethisapproach.


Whatcapabilitiesaremostimportantinyourfutureevaluationofcustomerexperiencemanagementserviceproviders:

Service Providers Need to Play More Strategic Role

0% 10% 20% 30% 40% 50% 60% 70%

Verticalexpertise

Thoughtleadership

Designexpertise

Automationcapabilities

Customerjourneymapping

Operations

Competitiveanalysisandbenchmarking

Innovation

Technicalexpertise

Strategy

Customeranalytics

TravelRespondents,n=32 TotalRespondents,n=154



2017 Recommendations: Service Providers

Inordertobecompetitive,serviceprovidersneedto:

• Lookacrossindustriestobringinnovationtoclients.Buyersaren’tjustlookingforexpertiseinthetravelvertical,they’relookingoutsidetheirindustrytounderstandwhat’sworkingwellanddifferentiatinginotherindustries.Theywilllooktoserviceproviderswhohavestrongexpertiseinotherindustryverticalsaswellastheirown.

• Playamorestrategicrolethroughconsultingandcustomerjourneymapping,andinvestinanalyticscapabilities.Asthedataonthepreviousslideshows,travelandhospitalityclientswanttoleanontheirserviceproviderstohavemorestrategicandanalyticsfocusedcapabilities.

“I’m always looking for new tech and ways to

streamline and automate.”– SVP, BPO Governance,

Global Hotel Chain

“I love their customer focus and how they treat

people.”– VP, Rental Car Company

• Investinasolidpeopleandemployeeapproach.Buyersinthetravelspacewespoketowerereallyfocusedonensuringthattheirserviceprovidershadastrongapproachtoattractingtalent,andmakingsurethattheyaretreatedwellandempoweredtohelpthecustomer.

• Fosterthetechnologypartnerecosystemsfortechnologyinnovation.Thenatureofthetravelindustry’stechnologyecosystemnecessitatesastrongpartnershipecosystemwiththekeysoftwareandplatformprovidersfortravelandhospitality-specificfunctions.

About the Author


[email protected]

Overview§ Melissa O'Brien is Research Director, Contact Center and OneOffice Customer Experiences at HfS

Research. Her research coverage includes customer experience management services, exploring ties withmarketing operations and developing thought leadership around intelligent automation for DigitalMarketing Operations and vertical specific customer engagement business processes.

Previous Experience§ Prior to HfS, Melissa spent four and a half years at IDC as Research Analyst managing the Worldwide

Customer Experience Management Services program. Her role at IDC included analysis of evolvingcontact center business process and consumer communication trends and delivering reports,presentations and custom consulting projects including market forecasts and in depth competitiveassessments.

§ Melissa previously worked within the BPO industry as Client Services Manager at PSG Global Solutions, anoutsourced recruiting services business. Melissa held various roles at PSG Global, including new clientimplementation, program design, and training, including development and delivery of the original trainingprogram in their Manila and Cebu, Philippines offices.

Education§ Melissa graduated with honors from the University of New Hampshire with a BA in English and

Communication, and is a member of the Phi Beta Kappa honor society.

Melissa O’Brien• ResearchDirector,ContactCenterandOneOffice CustomerExperiences,

HfSResearch– Boston,MA


HfS’missionistoprovidevisionaryinsightintothemajorinnovationsimpactingbusinessoperations:automation,artificialintelligence,blockchain,digitalbusinessmodelsandsmartanalytics.Wefocusonthefutureofoperationsacrosskeyindustries.Weinfluencethestrategiesofenterprisecustomerstodevelopoperationalbackbonestostaycompetitiveandpartnerwithcapableservicesproviders,technologysuppliers,andthirdpartyadvisors.

HfSisthechangingfaceoftheanalystindustrycombiningknowledgewithimpact:

• ThinkTank modeltocollaboratewithenterprisecustomersandotherindustrystakeholders• 3000enterprisecustomerinterviewsannuallyacrosstheGlobal2000• Ahighlyexperiencedanalystteam• Unrivalledindustrysummits• ComprehensivedataproductsonthefutureofoperationsandITservicesacrossindustries• Agrowingreadershipofoveronemillionannually

The"As-a-ServiceEconomy"and"OneOffice™"arerevolutionizingtheindustry.

ReadmoreonHfSandourinitiativeshere.

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