Technology in the Travel Industry - Insights

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Current situation “Hot Topics” Vision for 2020 Technology in the Travel & Tourism Industry
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Presentation delivered in the University of Azores. The class about Travel Technology is an initiative by TTS in collaboration with its R&D company, TTS Lab. More about the course you can find at http://protraveltech.tts.com/

Transcript of Technology in the Travel Industry - Insights

Page 1: Technology in the Travel Industry - Insights

Current

situation

“Hot Topics”

Vision for 2020

Technology in the Travel & Tourism

Industry

Page 2: Technology in the Travel Industry - Insights

TRAVEL & TOURISM INDUSTRY Current situation

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Good News!

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© 2012 PhoCusWright Inc. All Rights Reserved.

35

+ 5,4% growth (vs 3,8% GDP and 5,8% global trade)

Next decade

Photo  credits:  istockphoto.com  

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Africa, Middle East and APAC dominate this growth

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New type of consumer

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“Millennials” generation Higher mobility

More facility and

Interest for travel

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Active ageing Higher buying power

More time for travel

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E m e r g i n g Markets Higher GDP per capita

More people travelling

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29 %

Age +50

% early adopters +60 Age 18-30

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© 2011 PhoCusWright Inc. All Rights Reserved.

11

General Statements Privacy Versus Convenience +58 % share

confidential info

Age18-30

30 %

Age +50 Photo  credits:  istockphoto.com  

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© 2011 PhoCusWright Inc. All Rights Reserved.

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Normal? Or Nuts? The young generation has

more difficulty to unplug

Normal or Nuts ?

Photo  credits:  istockphoto.com  

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Changes in the industry

Completely agree

82%

6%

12% Partly agree

Disagree Attitude’ change

“I can find everything I need  

to plan and book my vacations  

on the Internet.”

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Social Media is no longer a trend

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© 2011 PhoCusWright Inc. All Rights Reserved.

36

Even Grandma Is on Facebook

Até as Avós estão no Facebook

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Social Media

Dream  

Shop  

Book  

Travel  

Share  

Always present and more and more used

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Social media

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Low Cost Airline Companies

The most important trend in the next decade is the further expansion of LCC market share

“ by Amadeus / Oxford University

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New Distribution Models

Direct Selling (Online)

IATA NDC (New Distribution

Capabilities)

New GDS’s (Booking.com,

Yelp, etc.)

Content Aggregators

(Viator)

OTA’s (Expedia, Priceline)

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New Players

The industry’s forecasted growth, together with the new distribution models and available capital, enabled the rise of new players that are already leaders

in their sector.

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Never has the travel industry been so connected to and so dependent on Technology...

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TRAVEL & TOURISM INDUSTRY Technology – “Hot Topics”

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Mobile

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Mobile

This year the number of

mobile devices will be superior

to the number of people. 7.7 Mil milhões

7.1 Mil milhões

vs

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Mobile travel bookings projected to comprise over 25% of the US online travel market in 2015 up from 2% in 2011” - Phocuswright, 2013

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Mobile

“The dreaming, planning and booking have been extended through Mobile Technology.”

Dream  

Plan  

Book  Explore  

Share  

The use of mobile devices during the “Travel Life Cycle”

Opportunity

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Metasearch

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Metasearch

“A metasearch engine is a search tool that sends user requests to several other search engines and/or databases and aggregates the results into a single list or displays them according to their source. Metasearch engines enable users to enter search criteria once and access several search engines simultaneously.” - Wikipedia

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Metasearch

Priceline bought Kayak for $1.8 billion

Expedia invested in Room77 and $632 million to take a 62% stake in Trivago

Google integrated flights with Google Maps

TripAdvisor launched its own metasearch

2012 2013 2014

…?

Metasearch absolutely exploded on a year-to-year basis “ Expedia CEO (2013)

Rised in 2012/2013

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But Google is taking over the travel world…

13

The integration of Flight Finder and Hotel Finder into Google Maps means they can own the entire customer journey.

Metasearch

With the integration of Flight Finder and of Hotel Finder, Google prepares to assume the control…

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Metasearch + Mobile

Day Use Hotels

Daytime only rentals “For work, rest and

rendez-vous...”

Hotel Tonight

65% of people who book a hotel room within 24 hours

of checking in do so from a mobile device.

(Expedia, 2013)

Concierge Apps

Build a digital bridge with your customers

and engage with them before, during

and after.

oportunity

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Peer to Peer / Sharing Economy

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Peer-to-Peer “Sharing Economy”

The sharing economy (sometimes also referred to as the peer-to-peer economy, mesh, collaborative economy, collaborative consumption) is a socio-economic system built around the sharing of human and physical resources. It includes the shared creation, production, distribution, trade and consumption of goods and services by different people and organisations. - Wikipedia

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Peer to Peer

•  Avis bought Zipcar for US$500 million in 2013

•  OTAs are now listing properties from Airbnb, HouseTrip and HomeAway

•  TripAdvisor now has more than 500,000 vacation rental properties listed, in addition to its 758,000 hotels and B&Bs

Rental Accommodation

Tours and Guide Services

Car Sharing Services

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0

2

4

6

8

10

12

2008 2009 2010 2011 2012 2013

Mill

ion

Gue

sts

Peer to Peer

outnumber IHG & Hilton hotel rooms

in 2014

opportunity

guests in 2013 10M    

properties +550m  worldwide

+150%  2013 vs 2012

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Big Data

"It is a term used to describe a massive volume of both structured and unstructured data that is so large that it's difficult to process using traditional database and software techniques.” - Webopedia

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In 2013 the world generated around 2.8 trillions GB of data with less than 1% being analised - IDC

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Big Data

Transactional Data Typical transactional data including invoices, payment orders, storage records and deliveries.

Social Data This can include data from social media services and functionality such as Facebook Likes, Tweets and YouTube Views.

Machine Data This data can consist of information gathered from industrial equipment, real-time data from sensors ad web logs that track user behavior online.

Where does data come from?

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Big Data What are the opportunities for the industry?

What have your friends done recently?

How can I improve my processes and increase my sales?

Customized alerts

Which are and what do my

clients like?

Opportunity

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Big Data | Industry examples

Based on Location “We see you have just

arrived in Frankfurt and your final destination is

Heidelberg. Did you know there is a Deutsche Bahn

train that can get you there in 45 minutes?

Based on Social Media relationships: “Four of your Facebook friends have recently visited Bermuda, so we’re offering 20% off to try it for yourself”

Based on schedule disruptions “We are sorry to see that you missed your fligt departure. Would you like a seat in First Class for the 15:15 flight?”

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TRAVEL & TOURISM INDUSTRY Technology – Vision for 2020

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0

200

400

600

800

1000

1200

1400

1600

2012 2013 2014 2015 2016 2017

Smartphones

Tablets

Netbooks

Laptops

Desktops

Forecast Global Sales Volume of Internet Access Devices by Type 2012 - 2017

Source: Euromonitor International

Mill

ion

Uni

ts

Mobile will be King!

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Mobile will be King!

How do I get to my hotel from

here?

What attractions are

near to my hotel?

How do I get to my business

meeting from here?

Where is a good restaurant for a

business meeting within walking

distance?

Context

Localization

Relevance

Mobile sweetspot

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Social Media

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1% 5% 13% 81%

Decrease No plans to utilize

Stay the same

Increase

Social Media will continue to be part of our lives…

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The future of business is Sharing

Peer to Peer

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Peer to Peer will boom in the next decade

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Content aggregators

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© 2012 PhoCusWright Inc. All Rights Reserved.

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The Truly Private “Private  Sale”

Massified Customization

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Virtual Assistants

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Biometry

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Conclusion

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EMPOWER  PEOPLE  

About TTS

EMPOWER  PEOPLE  

“SOLVE  THE  UNSOLVED”  

We  started  in  2011  with  the  mission:  

.AUTOMATE  |  Enhancing  service  level    

.SIMPLIFY  |  Transforming  complicated  processes  in  intuiGve  workflows  

.OPTIMIZE  |  Bringing  cost  effecGveness  to  the  business    

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For whom

Consolidators Travel agencies Airline Companies

Companies

TTS  acts  in  the  industry  of  travel  and  tourism  and  develops  soluGons  for:  

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Global Presence

Offices  in  Lisbon,  Barcelona  and  Miami  +  3.150  clients  

1002   781  

428  

129  

584  

76  

158  

Last    update:  October  2014�  

TTS  Lab  

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