Industry Trends – Travel & Hospitality

Travel & Hospitality – Trends

  • Intense competition from low cost carriers and international airlines -> driving down fares
  • Airplane infrastructure upgrades to meet customers expectations: Wi-Fi service onboard, power for devices, etc.
  • AI -> more personalised results offered by the travel websites
    Chat bots provide customers with better service
    1) Cosmopolitan, Las Vegas -> Rose robot 24/7, a customer can text it 24/7 and it’ll try to find complete one’s request

2) Marriott ->AI powered chat bots at 5,000 hotels

  • Personalised moments – businesses willing to provide customers with tailored experiences and services (e.g. temperature in the hotel room) -> can help link the right promotions to the right customers
  • Internet of Things -> airlines, hotel rooms connected -> improved travel experience
  • Voice technology -> 2018 first hotel chain introduced voice assistant in every room
  • Food delivery apps
  • Health and wellness programming in the hospitality space
  • Driverless cars
  • Customer Relationship Management systems in restaurants
  • Ride-hailing and car sharing
  • Customers sharing their experience on social media -> encourages businesses to maximise customer satisfaction
  • Virtual reality
  • Cloudbeds

Challenges:

  • Vulnerability of the industry (weather conditions, political unrest, etc.)
  • Brands who fail to innovate risk losing market share
  • Virtual reality may encourage travellers to choose VR over reality which would threaten hospitality industry
  • Big data safety
  • Overtourism -> stress on the local infrastructure, traffic, environmental impact
  • Regulation of the sharing economy

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