We’re creating a more connected travel industry, underpinned by sustainability and long-term investor relations.
Among the travel industry trends we’ve identified, the following travel technology factors may influence the future of travel in the short, medium, and long term:
Non-OECD countries accounted for 44% of global air traffic in 2013, and this is forecasted to rise to 51% in the next 10 years. This traffic is increasingly independent of mature Western markets. As an example, China may overtake the US as the largest source of outbound travel spend in the world this year. It may also surpass the US as the world’s largest domestic travel market by 2017.
Probably the most important industry trend in the next decade will be the further expansion of low-cost carriers (LCCs), which are outgrowing general traffic in every continent of the world. Although the business models of LCCs and traditional carriers have converged in recent years, they still remain distinct. The incorporation of large numbers of new middle class travellers from emerging economies in the market will pose great opportunities for LCCs. However, the more successful LCCs become, the more likely they are to outgrow their original business model and be forced to adapt.
Technology allows travel providers to disseminate global real-time information related to scheduling, availability, pricing, booking and ticketing, helping travel intermediaries and/or buyers to filter travel options and identify trip itineraries personalised to their needs. The development of internet-based and mobile technologies facilitates consumers’ direct access to a broader offering of travel products and services. Indeed, as the world’s internet and mobile users have increased, so have the applications and uses of mobiles for travel.
Greater traveller sophistication is driving increased demand for seamless, more customised, intuitive and flexible solutions meeting the traveller’s personal preferences. The continuing shift to digitisation and the increasing complexity and personalisation of the travel offer have placed further pressure on travel providers to access advanced, scalable technology solutions.
Based on the above-mentioned industry trends, we’ve identified some challenges and opportunities in our different business areas – which you can learn more about in our Global Report.