14 forecasts defining new age travel in 2014

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The past year was a roller coaster ride for the travel industry witnessing some major overhauls in the airline industry like the US airways and American Airlines merger to offering enhanced customer experience to travelers (social media bookings, free Wifi on planes etc.). With the advent of New Year, travel companies are looking for ways to re-invent the wheel making travel an exceptional experience for travelers.

We have analyzed various research reports like IDC, Forrester, Gartner to bring together 14 forecasts for 2014 that would serve as market driver for travel and hospitality companies.

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14 forecasts defining new age travel in 2014

  1. 1. 14 forecasts defining new age travel in 2014
  2. 2. 1 287 billion apps download predicted worldwide by 2016 The fast penetration of smartphones across all strata of the society has completely altered the way individuals communicate and use the internet. People are looking for apps across all sectors of society for diversified functions. The apps have radically changed the travel industry with applications around mobile concierge apps, itinerary building apps to geo targeted maps available to help people get around from origin to destination. . *Source: Gartner Forecast, Sep 2013
  3. 3. 2 52% of smartphone users want to use their fingerprints instead of passwords Sites are demanding longer passwords with a mixture of numbers, letters and symbols which makes them almost impossible to remember. This has led to the industry to search for alternatives like biometric recognitions. In travel industry, this would mean that passengers would want to use their body parts such as fingerprints to be considered as their tickets. *Source: : Ericsson ConsumerLab Analytical Platform 2013
  4. 4. 3 Peer to Peer travel has grown to be USD 3.5 billion industry Sites like AirBnB have now been around for over five years and have made it big in public space. Collaborative economy has been going mainstream with sites such as Tripadvisor and yelp making big strides to bypass the traditional channels to become the main channel of communication for voicing concerns and feedback. New technologies have made it very easy for people to deal directly with other people, and propagate peer-to-peer network (P2P). It is safe to say that collaborative economy would be a disruptor in the travel industry in this new year. *Source: Forbes Estimates
  5. 5. 4 40 zettabytes would be added to the digital footprints by 2020 We are experiencing sensors in everyday places from thermostats, alarm systems, traffic lights and even our phones, each contain sensors that detect changes in the environment such as light, sound, movement and location. This has enabled data to be present everywhere and thus providing us an opportunity to harness this potential. By the end of 2016, around 60% of smartphone owners believe that sensors will be used in everything from healthcare and public transport, to cars, homes and places of work In travel landscape, this would mean that an enhanced user experience in terms of offering a more engaging and immersive experience. *Source: IDC Forecast
  6. 6. 5 $3.7 trillion to $10.8 trillion a year impact due to mobile Internet According to Mckinsey insights, the mobile Internet is still in its infancy despite its rapid growth. With only 1 or 2 billion of the planet's 7 billion inhabitants already connected to the Internet, there's still "a tremendous amount of head room" for the mobile Internet to have even more impact than it has already had. "The vast majority of those who have not been connected to the Internet will be connected through mobile devices," the report says. "Any global business should be thinking about the possibilities of having the mobile Internet applied to this vast majority of people around the planet who have not yet had access to the mobile Internet." *Source: McKinsey Global Institute
  7. 7. 6 Forrester makes the point that “A great digital experience is no longer a nice-to-have; it‟s a make-orbreak point for your business as we more fully enter the digital age.” The report points to a growing number of firms falling flat because “systems of record cannot keep up with engagement needs.” To a greater extent, customers‟ impressions of a business are established through digital engagement forcing businesses to recognize that “software is the brand.” In short, digital experience delivery would make or break the firms. Digital experience failed for many companies due to systems unable to keep up with engagement needs *Source: Forrester Reports
  8. 8. 7 52% of guests cite Wi-Fi as important and even a deal breaker when booking hotels Most big airlines are already offering Wi-Fi at least domestically, and JetBlue and Southwest just recently rolled out their Wi-Fi access too. But now that the FAA has approved gate-to-gate use of portable electronic devices, one can expect to see airlines competing to offer the same broadband experience you get on the ground. Wifi would be ubiquitously used for in- car travel and throughout the hotel journey of the guest. *Source: IHG Research
  9. 9. 8 BPM focusing more on process optimization to enhance customer experience *Source: Gartner Forecast, Sep 2013
  10. 10. 9 Travelers are hit with 20+ sites before they make a booking decision Today we are witnessing an explosion of meta search travel sites and features, facilitated by advancements in digital technology and advertisers‟ perceptions of these sites as “unbiased” online media players compared to the OTAs. The idea is to keep the customer in a single place, where all the information can be found, rather than searching multiple online travel agency sites. This also potentially means higher conversion rates, which is good for hoteliers, restaurants and other attractions *Source: NetIAffinity Trends
  11. 11. 10 Automated SMSes, emails and calls to enable frictionless travel Travel processes automation holds tremendous potential to make passengers‟ lives so much easier. Receiving an automated email for the flight allowing passengers to register for pre-boarding, ensuring proper seating and avoiding getting bumped due to over-booking has become a norm. From email, to SMS and e-passport, it will be interesting to see how fast travel companies embrace this sea of change for an enhanced traveler experience. *Source: Frederic Gonzalo Travel Marketing Trends
  12. 12. 11 Several factors continue to work together to shift outsourcing activity back to the U.S. and its nearshore neighbors. As many routine IT tasks becomes automated, and the incremental benefits from labor arbitrage are diminishing, the global labor pool for IT outsourcing will continue to shrink. As the talent pool becomes smaller and more expensive, and routine tasks are undertaken by machines instead of people, the demand for more highly skilled individuals rises. This further diminishes the prospect of outsourcing these tasks to significantly lower-cost labor markets. Outsourcing of IT services overseas may drop by at least 15% through to 2016 *Source: SAP Blogs
  13. 13. 12 34% of companies investing in the work at home area 100,000 home-based agents will be working in the US by the end of 2013; 92 per cent of home-agents will be in the US and that is because they have different laws there. But according to Forrester 34 per cent of companies are investing in the work at home area. Alaska airlines began the work-at-home program in 2006 and is on pace to have 80 percent of its agents working from home by the end of this year *Source: Forrester Report
  14. 14. 13 London to create airport of the future with Internet of Things The IoT refers to the explosion of embedded sensors and intelligent devices that are flooding our everyday lives. Sensors are being embedded in all sorts of „things‟ from fitness monitors, to cars, to water main valves. London Airport has received a grant to implement preliminary trial of crosstechnology networking also known as Internet of Things. Some of these features include tracking passengers through a mix of face recognition and crowd-sourcing software. *Source: MIT Conference
  15. 15. 14 Today, companies are increasingly capitalizing on digital ecosystems and are leveraging Social Networks, Mobile Computing, Analytics and Cloud Computing (collectively known as SMAC). This confluence of technology has created an environment for production at a faster rate, together with customer interaction. With the consumer technology model penetrating and transforming the corporation in significant ways, the creation of hyperintelligent software programs that are able to tackle a number of issues has transformed business models across the world. Adoption of SMAC is seen as next highest priority by over 50% of global CIOs *Source: Deliotte CIO survey, 2013
  16. 16. InterGlobe Technologies Pvt. Ltd. InfoTech Centre, 2nd Floor 14/2, Old Delhi-Gurgaon Road Dundahera, Gurgaon – 122016 Haryana, India T +91 (0)124 458 7000 F +91 (0)124 458 7198 www.igt.in

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