Travel companies are increasingly challenged by the digital transformation underway in the industry. Companies inside and outside the travel industry must move quickly to capitalize on new digital strategies, technology and business models.
Amid this transformation is the fact that growing demand for travel is challenging current capacity while consumer behaviour continues to dramatically shift in today’s digital world, with liquid expectations across the ecosystem.
Consumers are making more informed choices. Sixty-five percent of travelers are using online channels—not for the lowest price, but primarily for convenience, speed, quality of information and access to a broader range of choices.DOWNLOAD THE INFOGRAPHIC [PDF]
Emerging digital platforms are disrupting the industry and creating new opportunity, while platform-based business models are defining the new rules of business in the digital economy.
94 percent of airline executives say adopting a platform-based business model and engaging in digital partner ecosystems are critical to success.
95 percent of those same executives believe the industry is experiencing ecosystem disruption, with digital business transformation establishing new platforms.
83 percent agree that airlines are being increasingly pressed to reinvent themselves and evolve their business before they are disrupted from the outside or by their competitors.
As $100 billion migrates from established players to new entrants in the Aviation, Travel and Tourism industries, the industry is in major flux.
Add to that equation a growing customer base in emerging markets, as well as the rise of online travel aggregators and meta-search engines, and the industry could look completely different in just 12 months. Leaders are acting now to make digital transformation happen at speed, asking their teams tough questions such as:
In a world where physical assets are fast becoming digital, how do company and industry operating models need to change?
To what degree can personal data be securely and ethically used, and made interoperable across public and private stakeholders?
Who will ultimately own the customer relationship, as ecosystem roles blur and stakeholders throughout the customer journey vie to own it?
To learn more about the digital implications your company should be considering now, check out the report Accenture produced for the World Economic Forum on Digital Transformation in the Aviation, Travel and Tourism industries.READ THE REPORT
Airlines lag exponentially behind other industries in getting the customer basics right. As profits decline and negative media abounds, they search for a cure to what ails them.
Digitalization carries the potential to ease pain for airlines and their passengers. Whether properly booking flights or anticipating customer needs, digital technologies enable airlines to treat passengers less like a captive audience—and more like customers.
Digitalizing aviation, travel and tourism could unlock more than $1 trillion in value for the industry over the next decade. Success lies in applying digital across airlines’ entire operations, not just the front office.
A new digital model enables a frictionless travel experience, drives more efficient operations and creates value from new business models as companies:
Craft Seamless Experiences. Seamless travel journeys are end to end, enabled by physical-digital touchpoints and real-time 360-degree information.
Break down Siloes. Partnerships in the travel ecosystem are required to offer an end-to-end travel experience across organizations. Collaboration is the new source of competitive advantage.
Digitize Operations. Smart assets embedded with connectivity and intelligence are critical to maximize effectiveness and efficiency in operations as well as the next level of seamless experience.
Enable the Workforce. Transforming the workforce into a digitally-enabled and digitally-savvy one that works along with technology is key to the transformation and to generate the best outcomes.