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In recent times, Online Travel Agencies (OTAs) and digital travel players have undergone a transformative journey. As the travel industry rebounds, it is crucial for these players to adopt a more efficient and bolder approach in targeting their business and customers.
The American Express 2023 Global Travel Trends Report reveals that 85% of respondents plan to embark on two or more leisure trips this year, indicating a willingness among travellers to splurge on travel. Furthermore, Booking.com’s 2023 APAC Travel Confidence Index (TCI) highlights India as the country with the second most confident travellers among the 11 APAC markets surveyed.
These statistics underscore the potential growth of the travel industry in the coming months, while raising expectations for a seamless travel experience. To meet these evolving demands and seize the opportunity, OTAs and digital travel players must invest in technology to reinvent their operations.
The challenges faced by these players today differ significantly from those of the past. While providing the best content and deals to travellers remains important, it is no longer sufficient to tackle issues such as low conversion rates, high servicing and marketing costs, unforeseen trends, and customer support friction.
In this era of digital transformation, travel businesses are embracing the boundless potential of data to gain actionable insights into customer behavior, preferences, and market patterns. Armed with this knowledge, they are rewriting the rules of the game, propelling the industry into an era of unprecedented innovation and redefining the way we explore the world.
The travel landscape has been revolutionised with the emergence of OTAs, meta search engines and more recently, super apps. These entities are at the forefront of innovation, driving the development of new technologies that enhance the traveller experience. Earlier, the key was to provide the best deals to travellers. While this still holds true, it is no longer enough and it is equally important to cover the varied challenges of low conversion rates, high servicing and marketing costs, unanticipated trends, and friction in customer support. With the advent of OTAs, meta searches, and more recently super-apps, travel is now transformed.
To achieve substantial growth and meet the rising demands of today’s travellers, OTAs and digital travel players must focus on the six pillars given below:
Search: Search technology has become the cornerstone of travel. However, a one-size-fits-all approach no longer suffices. While speed and accuracy are paramount, personalized, and contextualised results remain crucial. This is particularly important in countries like India, where travel queries are predicted to surge.
New Distribution Capability (NDC): Travel retailing serves a broader purpose that requires collaboration across the travel ecosystem to unlock new industry opportunities. NDC enables a more personalized and enhanced traveler experience at its core.
Automation and Digitisation: Automation and digitisation are essential to ensure a smooth experience across the globe, and the travel industry is no exception. Digital travel players must focus on digitising on-trip traveller assistance, freeing up resources to focus on revenue-generating activities.
Payments: Fintech products offer tremendous opportunities in the travel industry such as ‘buy now, pay later’ or foreign exchange options, which make the payment experience seamless for travellers. Additionally, modern payment solutions using virtual cards can assist customers in selecting the most suitable B2B payment method.
According to a new report from job search platform Flexa, the share of job seekers expressing a preference for companies that offer some kind of “work from anywhere” program rose from to 88 per cent in June from 80 per cent in April — the highest since the company began tracking last year.
Data & Analytics: Data is a crucial driver of innovation, and when utilised effectively, OTAs and digital travel players can analyse traveller behaviour and adapt swiftly to evolving trends.
Innovation: Infusing innovation into the travel experiences simplifies processes and generates more interest in the industry. This could include immersive advertising, digital fitting rooms, and social booking. Although these innovations may not be widespread currently, embracing them sooner than later will lead to streamlined operations and increased engagement in the travel industry.
By embracing these pillars, OTAs and digital travel players can prepare themselves for significant growth over the next two decades. Addressing the rise in travel demands requires a proactive approach that leverages technology and customer-centric strategies. As the industry evolves, these players must adapt and innovate to stay ahead in an increasingly competitive landscape.
The author is Head of Traveler Ecosystem Data India/Senior Director of Engineering, Amadeus Labs Bengaluru
DISCLAIMER: The views expressed are solely of the author and ETTravelWorld.com does not necessarily subscribe to it. ETTravelWorld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.
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