Technology in the
Travel & Tourism
Industry
Current
situation
“Hot Topics”
Vision for 2020

TRAVEL & TOURISM INDUSTRY
Current situation

Good
News!

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

Africa, Middle East and APAC
dominate this growth

New type of consumer

“Millennials” generation
Higher mobility
More facility and
Interest for travel

Active ageing
Higher buying power
More time for travel

E m e r g i n g
MHigahrkere GtsD P per capita
More people travelling

29 %
Age +50
+60 % early adopters Age 18-30

General Statements 58 Age18-30
Privacy +Versus Convenience % share
confidential info
30 %
Age +50
Photo
credits:
istockphoto.com

Normal?
Normal or Nuts ?
The yoOunrg gNenuerattsion? h as
more difficulty to unplug
© 2011 PhoCusWright Inc. All Rights Reserved.
Photo
credits:
istockphoto.com

Changes in the industry
Completely
agree
82%
Attitude’
Disagree change
6%
12% Partly agree
“I can find everything I need
to plan and book my vacations
on the Internet.”

Social Media
is no longer a trend

© 2011 PhoCusWright Inc. All Rights Reserved.
Até as Avós
36
Even Grandma
Is on Facebook
estão no Facebook

Social Media
Always present and more and more used
Dream
Shop
Share
Book
Travel

Social media

Low Cost Airline Companies
The most important trend in the next decade
is the further expansion of LCC market share
“ by Amadeus / Oxford University
”

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)

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.

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

TRAVEL & TOURISM INDUSTRY
Technology – “Hot Topics”

Mobile

Mobile
This year the number of
mobile devices
will be superior
to the number of people.
7.7 vs
7.1 Mil milhões Mil milhões

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

Mobile
The use of mobile devices during the “Travel Life Cycle”
“The dreaming,
planning and
booking have been
extended through
Mobile Technology.”
Dream
Plan
Explore
Book
Share
Opportunity

Metasearch

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

Metasearch
basis
“ Expedia CEO (2013)
Priceline
bought Kayak
for $1.8 billion
Rised in
2012/2013
2012 2013 2014
Expedia
invested in
Room77 and
$632 million to
take a 62% stake
in Trivago
TripAdvisor
launched its
own metasearch
Google
integrated
flights with
Google Maps
…?
” Metasearch absolutely exploded on a year-to-year

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…

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)
oportunity
Concierge
Apps
Build a digital bridge
with your customers
and engage with
them before, during
and after.

Peer to Peer / Sharing Economy

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

Peer to Peer
Rental
Accommodation
Tours and Guide
Services
• 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
Car Sharing
Services

12
10
8
6
4
2
0
2008 2009 2010 2011 2012 2013
Million Guests
Peer to Peer
opportunity
+150%
2013 vs 2012
guests in 2013 10M
+550m
properties
worldwide
outnumber
IHG & Hilton
hotel rooms
in 2014

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

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

Big Data
Transactional Data
Typical transactional
data including invoices,
payment orders,
storage records and
deliveries.
Where does data come from?
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.

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?
Which are
and what do my
clients like?
Customized alerts
Opportunity

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?”

TRAVEL & TOURISM INDUSTRY
Technology – Vision for 2020

Forecast Global Sales Volume of Internet Access Devices by Type
1600
1400
1200
1000
800
600
400
200
0
2012 2013 2014 2015 2016 2017
Smartphones
Tablets
Netbooks
Laptops
Desktops
2012 - 2017
Source: Euromonitor International
Million Units
Mobile will be King!

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?
Localization
Mobile
sweetspot
Context
Relevance

Social Media

Social Media will continue to be part of our
1% 5% 13% 81%
Decrease No plans to
utilize
Stay the
same
Increase
lives…

The future of business is Sharing
Peer to Peer

Peer to Peer will boom
in the next decade

Content aggregators

Massified Customization
© 2012 PhoCusWright Inc. All Rights Reserved.
62
The Truly Private
“Private Sale”

Virtual Assistants

Biometry

Conclusion

We
started
in
2011
with
the
mission:
EMPOWER
PEOPLE
About TTS
“SOLVE
THE
UNSOLVED”
.AUTOMATE
|
Enhancing
service
level
.SIMPLIFY
|
Transforming
complicated
processes
in
intuiGve
workflows
.OPTIMIZE
|
Bringing
cost
effecGveness
to
the
business

For whom
Consolidators Travel agencies Airline
Companies
Companies
TTS
acts
in
the
industry
of
travel
and
tourism
and
develops
soluGons
for:

Global Presence
+
3.150
clients
1002
781
428
129
Offices
in
Lisbon,
Barcelona
and
Miami
584
76
158
Last
update:
October
2014
:
TTS
Lab

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