14 forecasts defining new age travel in 2014

14 forecasts defining new age travel

in 2014

*Source: IDC Forecast, 2014

1

287 billion apps

download predicted

worldwide by 2016

The fast penetration of smartphones across all strata of the society has completely altered the way

individuals communicate and use the internet. People are looking for apps across all sectors of society

for diversified functions. The apps have radically changed the travel industry with applications

around mobile concierge apps, itinerary building apps to geo targeted maps available to help people

get around from origin to destination. .

*Source: Gartner Forecast, Sep 2013


2

52% of smartphone

users want to use

their fingerprints

instead of passwords

Sites are demanding longer passwords

with a mixture of numbers, letters and

symbols which makes them almost

impossible to remember. This has led

to the industry to search for alternatives

like biometric recognitions. In travel

industry, this would mean that

passengers would want to use their

body parts such as fingerprints to be

considered as their tickets.

*Source: : Ericsson ConsumerLab Analytical Platform 2013


3

Peer to Peer travel

has grown to be USD

3.5 billion industry

Sites like AirBnB have now been

around for over five years and have

made it big in public space.

Collaborative economy has been going

mainstream with sites such as

Tripadvisor and yelp making big

strides to bypass the traditional

channels to become the main channel

of communication for voicing concerns

and feedback. New technologies have

made it very easy for people to deal

directly with other people, and

propagate peer-to-peer network (P2P).

It is safe to say that collaborative

economy would be a disruptor in the

travel industry in this new year.

*Source: Forbes Estimates


4

40 zettabytes would be

added to the digital

footprints by 2020

We are experiencing sensors in

everyday places from thermostats,

alarm systems, traffic lights and

even our phones, each contain

sensors that detect changes in the

environment such as light, sound,

movement and location. This has

enabled data to be present

everywhere and thus providing us

an opportunity to harness this

potential.

By the end of 2016, around 60% of

smartphone owners believe that

sensors will be used in everything

from healthcare and public

transport, to cars, homes and

places of work In travel landscape,

this would mean that an enhanced

user experience in terms of offering

a more engaging and immersive

experience.

*Source: IDC Forecast


5

$3.7 trillion to $10.8 trillion a year

impact due to mobile Internet

According to Mckinsey insights, the mobile Internet is

still in its infancy despite its rapid growth. With only 1

or 2 billion of the planet's 7 billion inhabitants already

connected to the Internet, there's still "a tremendous

amount of head room" for the mobile Internet to have

even more impact than it has already had. "The vast

majority of those who have not been connected to the

Internet will be connected through mobile devices," the

report says. "Any global business should be thinking

about the possibilities of having the mobile Internet

applied to this vast majority of people around the

planet who have not yet had access to the mobile

Internet."

*Source: McKinsey Global Institute


6

Forrester makes the point that “A great digital

experience is no longer a nice-to-have; it‟s a make-or-

break point for your business as we more fully enter

the digital age.” The report points to a growing number

of firms falling flat because “systems of record cannot

keep up with engagement needs.” To a greater extent,

customers‟ impressions of a business are established

through digital engagement forcing businesses to

recognize that “software is the brand.” In short, digital

experience delivery would make or break the firms.

Digital experience failed for

many companies due to

systems unable to keep up

with engagement needs

*Source: Forrester Reports


7

Most big airlines are already offering Wi-Fi at least

domestically, and JetBlue and Southwest just recently

rolled out their Wi-Fi access too. But now that the FAA

has approved gate-to-gate use of portable electronic

devices, one can expect to see airlines competing to

offer the same broadband experience you get on the

ground. Wifi would be ubiquitously used for in- car

travel and throughout the hotel journey of the guest.

52% of guests cite Wi-Fi as

important and even a deal

breaker when booking hotels

*Source: IHG Research


8

BPM focusing more on process

optimization to enhance

customer experience

*Source: Gartner Forecast, Sep 2013


9

Travelers are hit

with 20+ sites

before they make

a booking

decision

Today we are witnessing an

explosion of meta search travel

sites and features, facilitated by

advancements in digital

technology and advertisers‟

perceptions of these sites as

“unbiased” online media players

compared to the OTAs. The idea

is to keep the customer in a

single place, where all the

information can be found, rather

than searching multiple online

travel agency sites. This also

potentially means higher

conversion rates, which is good

for hoteliers, restaurants and

other attractions

*Source: NetIAffinity Trends


10

Automated SMSes, emails and

calls to enable frictionless travel

Travel processes automation holds tremendous potential to make passengers‟ lives so much easier.

Receiving an automated email for the flight allowing passengers to register for pre-boarding,

ensuring proper seating and avoiding getting bumped due to over-booking has become a norm.

From email, to SMS and e-passport, it will be interesting to see how fast travel companies embrace

this sea of change for an enhanced traveler experience.

*Source: Frederic Gonzalo Travel Marketing Trends


11

Several factors continue to work

together to shift outsourcing activity back

to the U.S. and its nearshore neighbors.

As many routine IT tasks becomes

automated, and the incremental benefits

from labor arbitrage are diminishing, the

global labor pool for IT outsourcing will

continue to shrink. As the talent pool

becomes smaller and more expensive,

and routine tasks are undertaken by

machines instead of people, the demand

for more highly skilled individuals rises.

This further diminishes the prospect of

outsourcing these tasks to significantly

lower-cost labor markets.

Outsourcing of IT

services overseas

may drop by at least

15% through to 2016

*Source: SAP Blogs


12

34% of companies

investing in the

work at home area

100,000 home-based agents will be

working in the US by the end of 2013;

92 per cent of home-agents will be in the

US and that is because they have

different laws there. But according to

Forrester 34 per cent of companies are

investing in the work at home area.

Alaska airlines began the work-at-home

program in 2006 and is on pace to have

80 percent of its agents working from

home by the end of this year

*Source: Forrester Report


13

London to create airport of the

future with Internet of Things

The IoT refers to the explosion of embedded sensors and intelligent devices that are flooding our

everyday lives. Sensors are being embedded in all sorts of „things‟ from fitness monitors, to cars, to

water main valves. London Airport has received a grant to implement preliminary trial of cross-

technology networking also known as Internet of Things. Some of these features include tracking

passengers through a mix of face recognition and crowd-sourcing software.

*Source: MIT Conference


14

Today, companies are increasingly capitalizing on digital ecosystems and

are leveraging Social Networks, Mobile Computing, Analytics and Cloud

Computing (collectively known as SMAC). This confluence of technology

has created an environment for production at a faster rate, together with

customer interaction. With the consumer technology model penetrating and

transforming the corporation in significant ways, the creation of hyper-

intelligent software programs that are able to tackle a number of issues has

transformed business models across the world.

Adoption of

SMAC is seen

as next highest

priority by over

50% of global

CIOs

*Source: Deliotte CIO survey, 2013

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14 forecasts defining new age travel in 2014

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