Travel is booming, with a strong recovery in Asian markets and destinations expected to underpin the global tourism market by the end of 2024, according to industry group United Nations (United Nations) Tourism Office. The number of corporate travel travelers is also expected to exceed 2019 levels during 2024 and increase by a further 29% over the next two years. It's a fun season to travel.
And as the market grows, ever more sophisticated technology becomes available, contributing to the continuous improvement of the industry. experience of travel. But we know that doesn't apply to everyone. With different travel providers focusing on different regions and at different speeds, it's important to listen carefully to the industry and align with what it wants from us.
This is what sparked an industry-wide study of travel technology investment trends. Through this research, he collected the opinions of over 1,200 technology leaders from travel companies in 10 key markets and 8 different sectors.
This study captures the aspirations, pressures, and strategies of 450 online travel agencies (OTAs), leisure travel agencies (LTA), and business travel agencies (BTA) around the world, and how they plan for technology in 2024. This graph shows what you have in mind when you think. I would like to share some of the highlights.
Investment and top technology
The survey found that two-thirds of agents worldwide plan to co-invest in technology over the next 12 months, and plan to increase their technology investments by approximately 13% over the next 12 months. I did. This is important.
Collectively, all agents indicated that data analytics, artificial intelligence (AI), and digital payments will be the most important technology priorities for their businesses in the year ahead. However, this changes a bit when he expands his horizons to 5 years. We heard from agents that generative AI (Gen AI) and the metaverse will also play a central role as top priorities.
As an industry, we have been working hard on New Distribution Capability (NDC) and are proud to see progress in this area accelerating. There is no doubt that the next few years have the potential to be transformative for all types of agencies. And we are starting to see momentum. His 40% of leisure agents cite acquiring his NDC capability as one of their top priorities over the next 12 months. Despite the inevitable initial challenges that usually come with new ways of doing things, NDC volumes have increased fivefold compared to 2022, and the industry is seeing the benefits of this more evolved way of selling travel. You can see that I am starting to feel this.
Online travel agency focuses on search and building a comprehensive one-stop shop
In a world where consumers can access everything they want online, OTAs (online travel agents) have value when they can quickly and effectively piece together affordable travel and offer more options than people can imagine. born. For OTAs, competition is fierce and loyalty is difficult to achieve. They said they recognize that providing access to the best content through contextual and intuitive search gives them a competitive edge. Because of this, OTAs are prioritizing user experience and innovation over improving margins, with 72% of OTAs currently investing in enhanced search and a further 22% planning to invest in the near future.
In addition to this, 35% of OTAs are keen on offering creative one-stop shops to better serve travelers. Today's travelers expect to be able to search and compare options in one place. This means that LCC (Low Cost Carrier), NDC, and EDIFACT content must be easily available to each other. OTAs identify this API connectivity challenge as a top priority over the next 12 months with half of all OTAs.
Leisure agents turn to robotics to streamline work methods
Leisure agencies have endured most of the many challenges of the past few years, hit by staff shortages due to significant fluctuations in demand, but have adapted to the challenges and come out stronger and leaner than ever. . Still, there are advances that can be made through smart use of technology. It's no wonder, then, that more than half of leisure agents told us they're turning to robots to streamline and, where possible, automate manual processes to free up agents' time. You will be able to provide better service to your customers.
For small and medium-sized leisure travel companies, trust from travelers is key. Improving the customer experience is our top priority, and with access to our unique NDC fares, we also increase the ability to personalize offers and create bespoke itineraries that meet and exceed traveler expectations. It is important. Smart retail and the ability to differentiate and “wow” customers is more important than ever. Leisure agencies also seek the best possible access to aviation, hotels, insurance, mobility, and destination experiences while striving to provide creative end-to-end travel for their customers. Masu. As always, well-integrated content is key.
Business travel agents prioritize automation and digital payments
As the demand for business travel continues to increase, corporate travel agencies are focusing on delivering personalized travel that is simpler and easier to manage for travelers to improve governance and productivity. .
Using a single card to pay for end-to-end services is considered one of the top areas for improving productivity by 67% of agents, making virtual cards high on the agenda for BTA. This reduces the need to reconcile individual payments.
Self-service is also gaining traction, with nearly half of the leaders surveyed saying their travel agents don't yet offer full options for travelers to change their tickets on their own. The potential for this type of technology to help streamline business travel is very high. The same goes for agents and travelers.
I'm looking forward to
With the travel boom, many agencies are feeling renewed momentum, and understandably, they're always looking for better ways to serve their customers and run their businesses. Technology offers many answers as innovation continues to push the boundaries of what is possible.
Amadeus is at the center of the travel ecosystem and we're excited to help travel retailers achieve their goals, address concerns, and maximize future opportunities. From delivering the broadest range of content available to enabling end-to-end smart retail capabilities for all customers, regardless of size or location, we work together to improve travel operations.
If you'd like to learn more about how different sectors of the travel seller community are thinking about travel technology, here's a link to the full report.
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Elena Avila, Executive Vice President of Travel Distribution, Amadeus.connect with Elena On LinkedIn.
