Sustaining Relevance: Travel Innovation

This post is part of a Sustaining Relevance series, covering different industries, pinpointing areas of focus for companies to maintain their relevance while withstanding the advent of disruptive innovation.

The art of travel has become significantly simplified over the years. Travel lost the luxury, glamor and excitement associated with it in the past but key players are working hard bring it back. The travel industry is witnessing significant disruptive innovation, some sought after and some arising as solution to problems faced by travelers.

Product innovators have launched the pickpocket-proof backpack, the smart carry-on with integrated charging ports for smart devices and even a motorized suitcase that can be driven around airports. Airlines are constantly innovating their product, designing new hard products in aircrafts that offer showers, double beds and in-flights bars. Hotels are also reinventing themselves, adopting sustainability and technology to provide customers with a unique combination of digital and tangible hotel experiences.

Technology and access have enabled travelers to craft authentic travel experiences that are unique to their needs and preferences. The main question is: How are companies taking advantage of new technology? I’ve touched upon a few examples below, but there is no limit to how technology can change the travel industry.

AI & Chatbots

Meeting customer expectations of instant gratification and real time engagement is no easy feat. Artificial intelligence and chatbots have released the power of a digital travel concierge, giving customers personalized suggestions in their natural language.

With 40% of online travel sales coming from mobile devices, the travel industry can be well positioned to capitalize on this shift.  Customers identify, choose and purchase holiday destinations from their devices while conversing with a chatbot who providing a near-human experience. The customer is spoilt for choices and will no longer gravitate towards the service provider, making it necessary for them to be present where their customer spends a large portion of their day. With rising manpower costs, travel providers need to consider cost effective solutions that do not hinder customer experience and service.

KLM took the step to integrate human and automated customer support for its social media presence, enhancing response time and customer satisfaction at times when support channels were under pressure.

Going beyond the sale, AI delivers the opportunity for companies to play a more involved role in the customer’s travel plans. Destination and preference-centric recommendations combined with automated translation services can address some of the most common problems faced by travelers.

Integrating AI voice search capabilities into home hubs and other devices delivers unprecedented access to the customer. Voice assistants empower smarter searches resulting in better conversions along each stage of the journey in the conversational commerce space.

AI is the perfect combination of technology and data, increasing customer interaction to unlock vast amounts of data to connect the dots towards a completely customized travel experience.

Mobile Devices

The proliferation of the mobile device into the world is only increasing day by the day. Travel companies, airlines and hotels need to take advantage for the increasing role mobile devices play in their customer’s lives. Aside from an increasing amount of travel sales completed on mobile devices, digital innovation on devices can modernize travel and hospitality, transforming it into a truly seamless event.

Hilton and Marriott enabled guests to check into and open their hotel rooms using only their mobile phones, bypassing the long lines at check-in counters. Guests can also choose rooms of their choice, right from the app, providing a significant value-add and differentiation to the customer. Customers can also communicate with hotel staff, from front desk to room services, directly from the hotel app on their phone.

Airlines are also not far behind, with mobile check-in and boarding passes making travel easier than ever. Some airlines are doing away with In-Flight Entertainment systems and beaming content straight to customer devices via their mobile apps. In-flight meal ordering via mobile devices can also go a long way in the minds of the customer.

Lufthansa has introduced electronic baggage tags that digitally display baggage information when paired with the airline’s app after a customer completes their mobile check-in. Customers can also track the status of their luggage using the Lufthansa app on their phone.

Continuously utilizing disruptive technology to deliver superior customer experiences over mobile devices will help companies match global customer and market expectations.

VR & AR

The emergence of VR and AR technology opens a whole new arena for travel innovation. While some airlines are considering the use of VR headsets for in-flight entertainment systems, airports are utilizing AR to streamline the movement of passengers within airports and between terminals. Travelers are also looking at app developers to enrich experiences, with specific apps transporting users through historical events at key tourist destinations and memorials.

These two technologies are already being used by luxury hotel chains to showcase their resorts to high-net worth individuals, resulting in an 'experience before you buy' mindset. On a lighter note, Pokemon GO perhaps helped city locals see a lot more of their city during their quest for Pokestops. AR can be used to helps visitors navigate tourist destinations while VR can help spruce up exhibits that have witnessed dwindling footfalls over the years. 

As these technologies become increasingly affordable, VR and AR will change how people research travel and experience their travel. However, developing content and solutions for these platforms are not cheap and brands need to be cautious in how they implement their strategies. 

Digital disruption is resulting in much needed innovation in the travel industry, creating a revolutionized experience in travel. The truly exciting part is that this disruption is just beginning.