State of the travel tech nation in 2040
We live in a fascinating – if uncertain – period for travel tech, as intermediaries, suppliers and, indeed, consumers evolve at an unstoppable rate.
As the number of people travelling is expected to double in the next 25 years, alongside the volume of travellers, here's what are likely to change:
1. Customers will split in two
Two distinct groups of holidaymakers have begun to emerge: those who value low-cost holidays above all else and those who require bespoke, tailor-made experiences.
Over the next 25 years, this gap will continue to grow. As tour operators diversify their offerings to meet the different needs of their respective markets, a clear winner may come out on top.
2. There will be a decline in dynamic packaging
For decades travel agents have offered dynamic packaging as a way of providing flexibility, ease of use and value for money.
However, OTAs and dynamic packaging tour operators will need to add considerable value to what they offer if they are going to survive.
3. The demise of the GDS
An increasing number of airlines and other suppliers are now offering direct access to their stock via an API and, as reservation technology suppliers take advantage of this, there is less demand for the GDS offerings from tour operators.
4. The Survivors
Ski companies will survive as most major tour operators offering transfers to resorts still only cover about 20% of the European ski market.
While low-cost airlines continue to prosper, it makes little sense for them to cover long-haul as the marketplace is too large and volumes too small to truly compete.
Long-haul operators will also continue to survive as the “DIY trip” trend is unlikely to affect them as much.
5. Understanding customers
Over the next 25 years, as demand for more comprehensive data continues to increase, the software industry will produce off-the-shelf technology to suit the needs of individual suppliers and provide more efficient solutions for data analysis and reporting.
While the adoption of advanced analytics tools is not yet mainstream, key trends show the industry focus is turning away from complex data processing systems.
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