The big challenges facing travel industry
A new report from A.T. Kearney, ‘What if? Imagining the future of the travel industry’, has identified trends of personalisation and seamless travel as key drivers of success in the next five to seven years.
According to the report, the travel industry must be better prepared for economic and political disruption if it’s going to make the most of future economic growth.
Whilst the sharing economy, virtual reality and the internet are all improving the traveller experience, international geo-political, social and economic developments are disrupting and polarising the world as we know it, limiting the industry’s potential for future prosperity unless companies act now, the report says.
So what’s this mean in everyday language? (Yes, we struggled).
A.T. Kearney has highlighted two key trends that are changing the travel industry landscape, and agents and the industry at large need to take note:
- Personalised travel experiences versus mass market
Technology enables the collection and making sense of consumer data and the use of Artificial Intelligence to learn about traveller behaviour.
In addition, it may help to meet individual needs, instead of a more traditional one-size-fits-all approach.
- Seamless travel versus fragmentation
Truly seamless travel will require governmental co-operation and data sharing between businesses: from airports and airlines to destination services such as hotels, restaurants, and ground transportation.
Based on these two key trends, Amadeus and A.T. Kearney have identified four future-looking world scenarios that travel companies need to prepare for today, if they are to maximise future growth and success tomorrow.
They’re a bit abstract – Picasso and Warhol made it into the report somehow – but relevant nonetheless.
PICASSO
The Picasso scenario comes from looking at a world that’s separated and isolated, surrounded by security risks and concerns. As a result of this outlook, more travel destinations become deemed off-limits.
But most parts of the world are still experiencing economic growth. Companies are investing more in innovation to reach more customers through mobile channels, and this interaction enables businesses to provide more sophisticated personalised offers.
DALI
The Dali scenario assumes that relaxed and open social attitudes and economic success can help create a better environment for the sharing of data.
As a result, we get more relaxed privacy laws and lighter regulation, which allows for greater personalisation of travel.
Living in the Dali scenario, travel becomes faster, cheaper, and safer. People benefit from less security controls at borders and have real-time information about unexpected events such as flight delays.
BOSCH
In the Bosch scenario, business costs rise across the industry as companies struggle to comply with a huge collection of different legal, tax, labour and data protection laws.
We’re faced with a fragmented world that is built on distrust, as we’ve seen with recent terror attacks around the world. Facing Bosch’s political environment, travellers seek comfort in trusted brands and book directly with well-known travel providers.
WARHOL
The Warhol scenario is characterised by seamless and not personalised travel, that considers the implications of strong economic growth in Asia, giving rise to a large middle class with more disposable income for travel and leisure.
Travellers would rather go for low cost, mass-market travel instead of having personalised options even in a world free of barriers.
“Technology has never held more promise for the travel industry”, said Alex Luzarraga, Vice President Corporate Strategy of Amadeus IT Group.
“But the status quo is being turned on its head. There is widespread mistrust and populism. Things we used to take for granted, such as the right to travel across Europe without passports, for example, may be less likely in the future.
“It is important to evaluate and understand, in partnership with A.T. Kearney, those issues that will continue to confront and disrupt the industry in the coming five to seven years, so we can as an industry be better prepared to deal with those issues, and also stimulate economic growth and success as a result”.
“The report is based on the perspectives of a broad range of stakeholders from across the travel and technology worlds,” added Yelena Ageyeva-Furman, Principal, London, at A.T. Kearney.
“It illustrates a broad view of the future, which allows companies to uncover their organisational blind spots. Moreover, the study tests existing plans against industry outlooks, and helps us understand ‘no regret’ moves and imperatives in company strategy.
“This paper will provide an interesting perspective to the businesses that wish to prosper in the travel industry in the coming years.”
Latest News
Australia fails to make top 10 destination list for American travellers
Australia's top cities have failed to make the grade with American travellers this northern summer, with no local city in the top.
APT Launches 2025 Asia Adventures
APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]
ANZAC Battlefield travel on the 2025 bucketlist
As Anzac Day dawns, agents prepare for a surge in bookings for the 110th anniversary of the Anzac Cove landings.
Former Channel 9 Getaway host and founder of TRIBE Jules Lund to speak at Travel DAZE
From blond-tipped travel reporter to Travel DAZE speaker, Jules Lund cuts through the BS.
HX’s Roald Amundsen finds aliens in the Antarctic
Forget whales, HX's MS Roald Amundsen captures aliens in the Antarctic - and they're not pretty.
Mayhem in France as 70% of flights face cancellation
I mean it wouldn't be France if there wasn't at least one strike.
Etihad Airways launches double-decker service with world’s only in-air three-room suite
We imagine falling asleep in the three-room suite is superior to falling asleep on your neighbour's shoulder.
Norwegian Cruise Line launches 2024 Europe travel season
Europe certainly has a lot of ports. Its time for Australia to up its game.
“The power of travel for positive change” – Intrepid’s Jenny Gray hails controversial all-women Saudi Arabia trip
There is an awful lot to love about this tour from Intrepid. Where do we sign up?
Princess names the Sun, unveils Sanctuary Collection + Star Princess to Alaska in ’26
A huge bottle of Veuve was smashed into the side of the ship to make things official. So no, we couldn't snag a glass.
Collette special offers across peak northern summer season
If you are craving a trip to Europe then grab this deal with both of your grubby hands.
Air India and All Nippon codeshare between the two countries
Here at TW we agreed that the photo would have worked better if they had swapped planes.
A&K offers minimum 18 weeks paid parental leave
Contrary to what the photo suggests this benefit is only applicable for humans. Back to work Mrs Jumbo.
NH Hotel Group rebrands as Minor Hotels Europe & Americas
Hang around the bends of the hotels. We imagine they will be full of a lot of branded content.
Scenic Eclipse II – the business of creating unforgettable life-changing memories
These cruise brothers from another mother offer a view of cruising on Scenic Eclipse II that is poles apart.
MSC builds new hospital ship with Mercy Ships
If you want to read a story that puts a smile on your face then this is the one for you.
“I peed on myself watching this” – Social media users squirm at Royal Caribbean’s Harmony of The Seas 55ft dive video
TW is not responsible for any involuntary actions your body might have after watching this video.
FLIGHT REVIEW: Qantas Boeing 787 Dreamliner business class
The real bonus is you're unlikely to be around screaming children. Hoorah!
Traveltek offers travel agents new rapid deploy cruise website
As always, if you have any issue with the platform, just turn it off and on again.
Experience whale watching & classical music at the Australian Festival of Chamber Music in Townsville
Disappointedly, the whales do not start singing in tune with the orchestra. Opportunity missed.
Fond, very Fond. London hotel famed for James Bond link adds ‘Classic Comforts’ lunch menu
James Bond author Ian Fleming was so fond if this hotel, it inspired the legendary phrase ‘shaken, not stirred’.
What sets Eclipse Travel apart with Africa expert Hilary Dubyk: Travel Weekly TV
If you want to know more about Africa, then Hilary Dubyk is your person.
Surge in Australians visiting Japan
Feel like all of your friends have just returned from Europe? Now it's Japan.
Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit
Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]
Sydney named 17th best place to work remotely
If you struggle to get a seat within Sydney's coffee shops, you now know why.
W Melbourne grows sales team
We appreciate the thought that has gone into this team photo.
Cunard welcomes new ship Queen Anne
This might be the most impressive ship handover in ship handover history.
Intrepid Travel appoints Yvette Thompson as general manager sales & marketing ANZ
It isn't end-of-day Monday and Yvette Thompson has already nabbed herself an impressive promotion.
Anna Fawcett re-joins Global Touring in newly-created APAC role
With such an impressive CV, Global Touring is no doubt thrilled to have Fawcett back.
“We know our response has been far from perfect” – Emirates’ open letter following Dubai flooding
If you also need to write an apology letter, then this is a pretty good template.
Malolo Island Resort opens brand new Spa
Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]
Virgin Australia’s HILARIOUS second instalment of the ‘Bring on Wonderful’ campaign
We don't use the word 'hilarious' lightly, but this is worthy of the title.
Visit Sunshine Coast reveals new brand identity
If you were looking for another reason to visit the Sunshine Coast then this is it.
Sofitel launches brand campaign starring Sex Education’s Gillian Anderson
We can confirm the content of this video is less spicy than Sex Education.
Holland America Line gives agents the chance to visit Alaska on 11-day Famil
If you've ever wanted to see a Polar Bear (and who doesn't?), now is your time.
More than 65 luxury agents gather in Sydney for Best of the Best dinner
This looks like a fabulous do. We imagine there may be a few (or maybe 65) sore heads this morning!