Travel companies are regaining growth due to high demand, a rebound in international travelers and in the domestic leisure market. Yet, they must focus on reinventing and modernizing in a post-pandemic world to face economic volatility and new expectations.
A NEW TRAVEL LANDSCAPE
WHAT TRAVELERS WANT
USING DATA TO FUEL GROWTH
THE AI ACHIEVER
TRAVELING INTO THE METAVERSE
The travel industry is no stranger to disruption, today a highly volatile landscape is the rule, creating the need to respond to three new distinct forces. A new kind of traveler looking for health and wellness, living locally and making sustainable choices; a dissatisfied and depleted workforce; and finally, a call to improve their technological readiness and digital maturity.
In our report, we explore the actions travel companies can take to make fundamental changes in five key areas.
First, the opportunity to add value across a cohesive traveler experience with personalization at scale; second, becoming shockproof by enabling data-powered operations to flex their product according to customer demand. They will also need to understand the key technological trends shaping competitiveness and growth; take a zero-based approach to cost with an emphasis on sustainable growth and reinvent their workforce's day-to-day experiences.
The travel industry has some of the oldest and largest loyalty programs – primarily designed around business travelers as high-volume customers. But the pandemic changed everything, with a 61% drop in business travel spending in 2020 and global leisure travel spending outpacing it in 2021 with 80% of total spending.
The time has come to break the mold on loyalty programs designed for yesterday's travelers and design for the new. But who are these travelers? How do they travel? And most importantly, what do they want from travel companies?
We conducted qualitative traveler research to help travel companies rethink loyalty programs for the new traveler. Find out the three main expectations of today’s travelers from loyalty programs.
Data has the power to fuel post-pandemic recovery and future growth for the travel industry, but its potential is still untapped. Poorly integrated legacy systems, business silos and a lack of leadership support leave many data projects stalling before creating any value.
The need to reset and reinvigorate their approach to data couldn't be clearer: only 17% of executives felt confident they had the necessary information and insights to make informed business decisions during the pandemic.
So, what does a data-powered travel company look like? To achieve this status three key steps are necessary: action to put data at the heart of the business culture, the right technology infrastructure and the governance and leadership accountability that will drive its use. Explore our research and we’ll help put it all into action.
While the travel industry is in a much better position than it was two years ago, they still need to adapt to a fast-evolving reality. From baggage screening and wayfinding apps in airports to hotel concierge services and booking engines, artificial intelligence (AI) is set to dominate.
Many business fundamentals, such as understanding travelers' needs, capturing demand, managing revenue, and streamlining operations, hinge on capturing real-time moments and trends. But according to our survey, only 13% of travel companies have the AI maturity today to unlock that potential. We call them AI Achievers.
Our research shows how to become an Achiever by following these five critical success factors: promote AI as a strategic priority, invest heavily in talent, create an AI core, design AI responsibly and prioritize short and long-term investments.
Over the next decade, travel companies will have the opportunity to bring new technologies and worlds of experiences. The metaverse will touch all facets of business, from consumer to worker and across the enterprise, from reality to virtual and back and from cloud to AI to extended reality.
But how can travel companies seize these opportunities for future growth and competitiveness?
Our latest Accenture Technology Vision taps into four major trends shaping the future of the travel industry. First is WebMe, to challenge Travel businesses to rethink their online presence. Then, a Programmable World to improve customer service by providing immersive experiences for guests and employees. The next trend is called The Unreal, for hospitality and travel enterprises looking to grow their use of AI; and finally, Computing the Impossible, to tap into the power of high-performance computers to solve operational problems once considered unfixable.
As travel companies pursue growth in this post-pandemic era, they are grappling with an evolving travel landscape where uncertainty is the rule, not the exception.
Over the last several years, disruption has been relentless. As travel continues its growth journey in the endemic phase of the virus, travel companies will need to adopt an approach of creative pragmatism to outwit their circumstance and set them up for sustained success.
Innovation can help travel companies adapt to an ever-changing travel landscape and tap into bold opportunities.
You can’t control the forces shaping the travel industry, but you can increase your readiness factor for agility and resilience. Our experts work with the world’s leading travel companies to build creative and pragmatic solutions for their business.
Elevate the traveler experience by improving retail interactions and developing end-to-end solutions that diversify revenue and build loyalty. Learn more.
Data-led travel operations
Enhance performance, reduce costs, and increase real-time decisions by tapping into cross-organizational data and insights. Learn more.
Embark on a transformation journey to modernize the technology landscape, bringing forth agility, innovation, and resilience, underpinned by cloud. Learn more.
Recovery strategy & sustainable growth
Grow your business by building a sustainable revenue model that adds profitability and creates resilient revenue streams for the future. Learn more.
Empowering workforce excellence
Respond to changes in your workforce by building a cost-efficient organization fit for purpose while improving the employee experience. Learn more.