The Future of Travel

The travel consumer and
the hyper-connected world

1. A little bit of background about technology and associated
behaviours
2. The impact of technology on the travel sector
3. Content applications of technology on the traveller
4. Travel experience applications for the traveller
5. The rise of the gatekeepers
6. Wrap-up

1. A little bit of background about technology and associated behaviours
2. The impact of technology on the travel sector
3. Content applications of technology on the traveller
4. Travel experience applications for the traveller
5. The rise of the gatekeepers
6. Wrap-up

https://www.statista.com/statistics/209334/total-number-of-international-tourist-arrivals/
Number of international tourist arrivals worldwide from 1996
to 2016 (in millions)

By 2030, most of the growth in international travel will come from Africa, Asia and the
Middle East, which will enable further growth and job opportunities in these regions. While
markets in Europe and the Americas will continue to grow, the rate is incomparable to
other regions.
http://reports.weforum.org/travel-and-tourism-competitiveness-report-2017/industry-trends/

By 2020, an estimated 4 billion people
will be connected to the internet

https://www.statista.com/statistics/209334/total-number-of-international-tourist-arrivals/Euromonitor 2017: INTRODUCING THE 2017 DIGITAL CONSUMER INDEX
The internet has been one of the most transformative innovations of the modern era. This infrastructure of the digital era
ushered in new scale and speed to real-time communication for consumers and businesses.

We Are Social
share your world

It’s not just about the amount of people
that are connected, but the amount of
things that are connected

Wearables
Analytics
Mobility
Artificial Intelligence
Augmented Reality
Virtual Reality

https://www.statista.com/statistics/471264/iot-number-of-connected-devices-worldwide/
Internet of Things (IoT) connected devices installed base
worldwide from 2015 to 2025 (in billions)

The growth in connectivity fuels new
businesses which in turn create liquid
expectations

Euromonitor identifies 6 key
themes defining the Connected
Consumer
Euromonitor 2017: INTRODUCING THE 2017 DIGITAL CONSUMER INDEX

Digital Democratisation
The number of internet users has more than
doubled over the last decade, giving way to a
mass-participation technology. In general,
developed nations lead in connectivity, with
many establishing this connectivity through
fixed-broadband connections in the home.
In emerging markets, this
connectivity has been largely driven
by mobile connectivity.
The World Economic Forum notes that the
majority of the middle-class growth will come
from emerging markets, and with it a growth in
tourism from emerging markets (especially
China)

Lifestyle
The rapid increase in connections has ushered in
speed, convenience and instant access across life.
Connected consumers can summon a taxi, book a
flight, browse products, order food, listen to music,
play a game, watch a film, or chat with others using
internet connectivity.
Thanks to the smartphone, connected
consumers can now execute these
actions at anytime and from anywhere.
In only 10 years since the iPhone was unveiled,
Connected Consumers report mobile devices are
often not out of reach. Global mobile users leveraged
them for an average of six distinct activities per day in
2016.

Consumer Power
Widespread connectivity has had a fundamental and
profound shift with regards to the consumer’s position in
traditional power structures. In particular, there has been a
significant dispersal of authority to social groups now
connected by the internet.
Connected Consumers are more likely to
trust someone like themselves.
For example, these consumers are more influenced by
personal recommendations and independent consumer
reviews as compared with mass marketing, according to
the 2016 Global Consumer Trends Survey. Even with
regard to newer channels such as social media,
consumers are most influenced by posts from friends.

Consumer Centricity
Brands no longer dominate the conversation nor dictate
future trends. Connected Consumers have access to
the products and services when, where and at the price
they want to pay, thanks in part to digital connectivity.
As a result of these shifts, commerce players
must shift from a “Push Model” - where the
company or brand assumes they know what
the consumer wants - to a “Pull Model” - where
the consumer makes the call.
Society is in the midst of a shift from being about the
masses to a story of one. Consumers expect the
experience to be personalised to them and available
across the multitude of screens in their lives. Brands
will need technologies to do so.

Internet of Everything
The first wave of connectivity was driven by the arrival
of computers into the home; the second was
characterised by the arrival of the smartphone.
More recent breakthroughs in the cost of
sensors, processing power and greater
bandwidth, with which to connect more
internet-enabled devices, are creating
ubiquitous connections.
This next stage of connectivity has been dubbed the
Internet of Things (IoT) and will be a giant leap in
terms of breadth. To give perspective, according to
Berkeley University until 2009 the sum of data
produced by humanity throughout its history, was
around one zettabyte. By 2020, this figure will grow to
35 zettabytes.

Passive Consumption
Consumption is on the cusp of leaving the current
mass customisation trend to become more predictive
in nature. Already, artificial intelligence is enabling
brands to move beyond recommendation and into
anticipating consumer needs, something only
achievable due to the hyper connectivity movement.
The relationship between the Connected
Consumer and brands will change as
brands move more toward anticipating the
consumer’s needs and doing so without
conscious action.
For example, connected devices and appliances could
automate seemingly mundane product replenishment
decisions.

New ways to connect amplify existing
behaviours and can even create
completely new ones

The internet has been one
of the most transformative
innovations of the modern
era.
This infrastructure of the
digital era ushered in new
scale and speed to real-
time communication for
consumers and
businesses.

Forrester 2017: The Future Of Digital Experiences
More and more
things are
connected to the
internet, opening
up more and more
possibilities for
personalisation

Mobile
transforms
public places
into human
health
ecosystems

Mobile
personalizes the
shopping
experience to help
you find the items
you want at the
most convenient
locations and the
best prices.

1. More people are connected
2. More people have more options
3. More people have an impactful voice
4. More people are empowered
5. More things are connected
6. More things are filtered for us

the impact of
technology will be felt
in travel

Over the next decade (2016 to 2025), digitalization in aviation, travel and tourism is
expected to:
• Create up to $305 billion of valuefor the industry through
increased profitability
• Migrate $100 billion of value from traditional players to new competitors

Over the next decade (2016 to 2025), digitalization in aviation, travel and tourism is
expected to:
• Generate benefits valued at $700 billion for customers and wider
society through a reduced environmental footprint, improved safety and security, and
cost and time savings for consumers
• Result in a net displacement of current jobs in the industry, which is expected to be
partially offset by the creation of next-generation skilled jobs inside and outside the
travel ecosystem

Source: World Economic Forum/Accenture analysis
Living travel
experience
Enabling the travel
ecosystem
Digital enterprise
Safety and security

http://reports.weforum.org/digital-transformation/wp-content/blogs.dir/94/mp/files/pages/files/wef-dti-aviation-travel-and-tourism-white-paper.pdf

Value at stake
Source: World Economic Forum/Accenture analysis

how will the connected
consumer themes translate into
travel?

Technology fundamentally blurs the lines
between the physical and digital spheres.

It enables us to address the 6
behavioural themes through
richer experiences and
increased service and utility

AR
VR
AI
Big Data
Social Media

• Share your world
• Peace of mind
• Pre-explore your trip
• Instant connection
• Invisible sharing
• Accessibility
• Rich information

In the next five to 10 years, millennials will become the industry’s
core customer base. Millennials’ spending on business flights is
expected to account for 50% of global travel by 2020 and to
maintain that share for the subsequent 15 years
http://reports.weforum.org/travel-and-tourism-competitiveness-report-2017/industry-trends/#view/fn-22

Travellers today often look for
experiences, whether it be an
authentic local experience, an
adventure or even and the
opportunity to make a
difference at the destination.
http://reports.weforum.org/travel-and-tourism-competitiveness-report-2017/industry-trends/#view/fn-22

Social media are by far the
dominant way these
respondents learn about things
online. Search engines are
ranked near the top but fall
below Facebook and Twitter for
general content discovery.
https://marketingland.com/survey-best-way-reach-millennials-social-media-91241

Most popular social platforms for Millennials
https://www.statista.com/statistics/199242/social-media-and-networking-sites-used-by-us-teenagers/

A recent study by Expedia found
that 85 percent of Australians are
choosing their holiday destinations
based on what their travel snaps
will look like online.
Another UK study found that A
recent study has revealed that two-
fifths (40.1%) of millennials choose
a travel spot based on its
‘Instagrammability’ — above things
like food, sightseeing, and the
opportunity for personal
development.

But it’s not just Millennials who live on social media
https://pure.au.dk/ws/files/100483708/Social_trust_and_tourism_Jensen_Svendsen_2016_.pdf

These platforms have surged in popularity, in parallel with the incredible growth of mobile
phone technology.
The sites are optimized for mobile use, meaning that in many developing
countries, people’s first experience with the internet has been on one of
these social platforms. Facebook’s initiative, internet.org, means that many people
equate the social network with the internet.

Global growth of social media users

Biggest global social platforms 2017

Social network usage by
consumers is highly diverse
Platforms such as Facebook or Google+
are highly focused on exchanges
between friends and family and are
constantly pushing interaction through
features like photo or status sharing and
social games.
Other social networks like Tumblr or
Twitter are all about rapid communication
and are aptly termed microblogs. Some
social networks focus on community;
others highlight and display user-
generated content.

When targeting potential travellers
through the myriad marketing
channels available today,
fragmentation becomes one of the
biggest challenges and will only
intensify in the coming years.
Snapchat, Instagram, WeChat,
Twitter, Facebook, Google, and text
chat are all areas that travel brands
need to get used to as traveler
behavior shifts in the digital space.

https://marketingland.com/survey-best-way-reach-millennials-social-media-91241

What this tells us is that people aren’t good at knowing what to look
for, or even knowing what they’d really like. They need to be shown
what that could be.
This behaviour, amongst the ocean of content and advances in
search and aggregation outlines the role Tourism can play for the
future traveller
What does this mean for Tourism?

Real-time data is one of the primary
drivers of the new technologies for
Expedia, which leans on the incoming
stream of data to provide immediate
actionable insights for customers and
partners.
The instant reviews work by pinging
guests after they check-in for a live
review, asking about specifics such as
the check-in experience and room
quality. The guest can thus offer live
feedback on the experience, rather than
waiting until later to complain or identify
issues.
The hotelier then has the new
opportunity to address any negatives
and enhance any positives while the
guest is still on-property.
Share your world now
share your NOW: Expedia

Social trust increases the level of self-regulation and the enforcement
of appropriate norms that further enhance the feeling of safety and
thereby attract even more tourists. In this way, it may be possible to
improve on safety without signaling problems through more visible
police force in the public space.
https://pure.au.dk/ws/files/100483708/Social_trust_and_tourism_Jensen_Svendsen_2016_.pdf

VR/AR installed base (Millions)
https://techcrunch.com/2017/01/11/the-reality-of-vrar-growth/

Dreams of Dali
http://www.dreamsofdali.net/

With advances and widespread adoption in new content technologies
more ways are opening up to tell the story of the country. Even
though technology is amazing, the story and experience should
remain front and center.

AR is developing to be far broader and deeper, adding layers of
digital content to every part of the real world.
https://www.sabre.com/insights/augmented-reality-digital-immersion-in-physical-space/

We recently saw the launch of four foundational AR efforts:
• Microsoft HoloLens,
• Google Tango,
• Pokemon Go, and
• Apple ARKit
a group of radically different projects, each demonstrating a different element
of AR’s potential. It also saw the proliferation of real-time video filters and
interactive selfie animations added to Snapchat and Facebook

Taken together, these products provide a framework for
understanding what’s happening now and what we can expect
over the next few years.

PROXIMATE AR
AR depends on having some awareness of
a user’s location. Proximate AR knows
rough location, but lacks the sensors to
accurately map a physical space in 3D, so
nearby objects may jump around, but can
still exist in an approximate location.
Proximate AR is sufficient for many kinds of
tasks and is cheap and easy to implement
into everyday devices such as
smartphones and tablets

PRECISE AR
Precise AR involves sensors that can
accurately map a 3D environment and
seamlessly integrate virtual objects into that
physical space. With precise AR, virtual
objects can have a sense of permanence—
existing and behaving as if they were real.

WORLDS OF TOMORROW
Apple’s ARKit is the X-factor in the current
AR landscape— from the information
released to date, it appears to achieve some
advantages of precise AR without the need
for the spatial sensors.
ARKit allows programmers to create iOS 11
apps with integrated AR functionality using
the standard iPhone/iPad camera as the
only visual sensor.

Experience + rich information

With continued investment into AR from the biggest technology
players, not only can we tell the story of the country in more
engaging ways, but actually enhance the experience in country.

http://www.amadeus.com/documents/reports/accessible-travel-report-voyage-of-discovery.pdf

In every region, populations are ageing,
with senior citizens representing the fastest
growing demographic globally. By 2025,
seniors will account for 11% of the world’s
population.
The improvements in internet connectivity
globally continue to play an important role
in adding peace of mind by simplifying trip
planning, while improved transportation
infrastructure makes the trip itself more
enjoyable.
But innovative companies are using digital
platforms to further enhance the travel
experience.
http://reports.weforum.org/travel-and-tourism-competitiveness-report-2017/boomers-to-the-rescue/

The ideal travel environment will be one where they won’t need to
“declare” their disability because the travel experience will be as
easily navigable for those with accessibility needs as it is for anyone
else.
So what does a seamless accessible trip look like?

Experience + accessibility

• Effective communication
• Responsive service
• Standardised content and services
• Personalised offer
The four characteristics of the ideal accessible trip

Share your world indirectly

In an American Express study, 83% of millennials said
they would allow travel brands to track their habits in
exchange for a better, more individual experience.
Meanwhile, 85% of respondents across all age groups
said that customized itineraries are far more appealing
than one-size fits all solutions. As analytics become
more sophisticated, travel companies are targeting
different customer demographics personally in email
and social media messages.
https://www.smartinsights.com/digital-marketing-platforms/big-data-digital-marketing-platforms/2017-travel-marketing-trends/

43% of travel companies named “targeting and
personalisation” as the top priorities in their
digital strategy. Twenty-five per cent of
companies are focused on mobile optimization
of their online properties.
https://www.smartinsights.com/digital-marketing-platforms/big-data-digital-marketing-platforms/2017-travel-marketing-trends/

Consumer data – and the ability to convert it into rich,
meaningful experiences – will be a key source of
differentiation.
Travel distribution - The end of the world as we know it?

Although the promise of data and insights is immense, even with full
implementation, current technology still faces limitations and we must
remind mindful to not discard the human element.
Nevertheless, operationalising real-time data and insights capabilities
should remain a top priority.

Personalisation of service and
utility

• Task personalisation
• Interaction personalisation
• Sales personalisation
• Seamlessly personalised trip

Evolution of Living Travel Experience
Digital Transformation Initiative: Aviation, Travel and Tourism Industry

Today, companies throughout the
value chain (e.g. travel agencies,
airlines, airports, hotels) use
digital to engage with their own
clients (e.g. through loyalty
programmes).
Personalization through
separate companies
collecting and analysing customer
habits and preferences will remain
a priority for most of them now
and in the short term

Created through collaboration
between travel companies,
seamless customer journeys
will be the next development.
The first examples are already
emerging from companies in
different parts of the value chain
pioneering a high-quality customer
travel experience.
In the medium term (between two
and five years), this will become
standard practice, and collaboration
will bring more value to the
customer, industry and society.

In the long term (five years and
beyond), travellers can look
forward to highly personalized,
frictionless, flexible travel
experience.
Companies will work together and
real-time AI will proactively manage
the traveller experience. Collaboration
will be key to delivering end-to-end
propositions to travellers.

IoT
Big Data
Machine Learning
Voice recognition

Traveller Centricity Task
personalisation on Expedia

Traveller Centricity: Task personalisation on Expedia

Traveller Centricity
Interaction personalisation
through AI

Traveller Centricity: Interaction personalisation through AI

Seamless Customer Journey
Sales personalisation through
Retail and AI

Seamless Customer Journey: Sales personalisation through Retail and AI

End-to-End Propositions
Frictionless Travel through
Connected Systems

End-to-End Propositions: Frictionless Travel through Connected Systems

End-to-End Propositions
All-in Frictionless Travel

End-to-End Propositions: Frictionless all-encompassing Travel

With the introduction of a seamless travel journey, how can we help
our trade partners to deliver the right content at the right time to their
customers?

Although connected devices and
technology is booming, the online
landscape has fundamentally
consolidated

Google
Facebook
Amazon
Apple
Tencent

Experiences Will Evolve from Fragmentation to Consolidation

Experiences Will Evolve from Fragmentation to Consolidation
Today, consumers orchestrate
their own digital experiences
Tomorrow, mobile will be a
digital experience
choreographer to address
mobile moments.
Blended experiences will
include anything that an
individual can connect to —
wearables, things, cars,
homes, and gaming platforms.

Mobile operating systems and
third-party platforms define the
bulk of consumer-brand activity.
Platforms like Cortana, Google
Now, and WeChat now provide
the information necessary to
address mobile moments.
Mobile platform experiences

Consumers ask mobile and physical
standalone devices open-ended
questions and are presented with a
set of “solutions” that comprise a
curated set of apps, sites, and
platform experiences.
They expect third parties to
anticipate their needs and know
their preferences, and they expect
to manage that access simply and
naturally — not app by app or
function by function.
Virtual agent experiences

Consumers use a smartphone as the
choreographer of their local
ecosystem. Instead of making an
open-ended request to a single
device, people expect all local devices
to anticipate their needs and provide
appropriate responses within the
ecosystem.
The “virtual agent” of stage 3 now
anticipates user demands and
responds with a complete solution.
Blended ecosystem experiences

Facebook is also getting ahead of most the major trends media
and marketing analysts see as shaping the future of content.
Facebook already dominates the messaging app marketplace
with Messenger and WhatsApp. Same goes for digital video,
which has exploded on Facebook’s native video player (though
not without controversy).
With Facebook M, the company is a major player in the AI arms
race. Facebook also announced plans for a platform where
developers can build bots for Messenger. The last part of that
dominance is augmented reality and virtual reality. Facebook
has the Oculus Rift; Gear; and these unnamed AR Glasses,
which essentially look like Google Glass.
https://contently.com/strategist/2016/04/12/facebook-plans-dominate-digital-communication-next-10-years/

Gatekeepers – tech giants such as Google, Facebook, Microsoft, Amazon and Apple -
control the acquisition of billions of consumers, interfacing with millions of people every
day.
They have already begun to disrupt travel distribution through their advertising models.

Google in context – the company’s
travel revenues are already
estimated to be bigger than the
other major online travel players
such as Priceline, Expedia and
TripAdvisor. “They are the biggest
company in travel and digital travel
today,” he said. “They’ve been in
the travel space for a while without
even intending to be.

Eli Pariser, author of The Filter Bubble,
argues that Google and Facebook are
creating separate versions of the
internet for each of us, filtering out
things algorithms think we aren’t
interested in.
EyeForTravel SF Summit 2017

Pathway 1.
The development of virtual assistants will
enhance the customer experience by reducing
search times and personalising purchases. At
the same time, the search control of
gatekeepers will grow, consolidating their traffic
acquisition power, giving them greater access
to consumer data and enabling more precise
consumer targeting.

Pathway 2.
Travel booking is likely to be integrated
increasingly into social media and
messaging, with advertising and referrals
tailored to social network discussions and
searching.
The rise of virtual reality will lead to more
inspiration marketing and traffic acquisition.

The gatekeepers will become an even more important channel in our
marketing mix. Figuring out how to work with the gatekeepers to
make sure our content breaks through the algorithm will be a key
concern moving forward.

How do we respond to
changing consumer
expectations?
New technologies, new platforms, new ways
of sharing, new businesses, new
expectations.

How do we tap into the
data economy?
What is our goals with data, what do we need
to operationalise it>

How do we respond the
the rise of the
gatekeepers?
As the power of gatekeepers to acquire
billions of consumers continues to grow,
industry players will need to consider how to
collaborate with them as their power grows.

The Future of Travel

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