Customized travel and journey with ‘no fissures’ will be the catalyst for success in the travel industry over the next five to seven years, according to a new study by A.T. Kearney titled ‘What if? Imagining the future of the travel industry’
According to A.T. Kearney‘s new report, the travel industry must prepare itself to cope with economic and political turmoil if it wants to make the most out of future economic growth.
The collaborative economy, the virtual reality and the ‘Internet of Things’ have improved the traveler’s experience that exists today. However, geopolitical, social and economic events in global scale are altering and dividing the world we live in, which will limit the potential for progress in the travel sector unless companies take imminent action, according to the report.
In this context, A.T. Kearney highlights two key trends that are changing the landscape of the travel industry and marking the direction for future success: customized travel and the journey with ‘no fissures’.
Technology allows the incorporation of consumption data and facilitates the use of artificial intelligence to understand the behavior of the traveler. In addition, it can be useful to meet individual needs, versus the more traditional approach to standard solutions, the report said.
On the other hand, the study explains that achieving experiences of journeys with ‘no fissures’ will require the cooperation of governments and the exchange of data between companies: from airports and airlines to services in destination, such as hotels, restaurants and inland transport.
Based on these two trends, Amadeus and A.T. Kearney have identified four possible future scenarios worldwide for which travel companies should be prepared imminently if they want to maximize growth and future success.
- The ‘Picasso scenario’ contemplates a fragmented world characterized by the rise of populism and a growing concern for security issues;
- ‘Dali scenario’, presumes that both social attitudes and economic prosperity create a more favorable environment for data exchange.
- The ‘Bosco scenario’ assumes that the commercial costs of the industry are increasing, while companies find it difficult to comply with a great amount of taxes, labor and data protection laws.
- ‘Warhol scenario’ is characterized by non-customized travel with no fissures that take into account the implications of strong economic growth in Asia.
“We believe it is essential that we evaluate and understand these aspects that will continue to challenge and revolutionize the sector in the next five to seven years, so that as an industry we are better prepared to deal with them and, at the same time, stimulate economic growth and consequent achievements, “says corporate strategy vice president Alex Luzarraga.