A white paper on travel technology trends – Online Travel 2020: Evolve, Expand or Expire – released by Amadeus, world’s leading travel technology provider for the travel sector, recently cautioned Online Travel Companies against ‘Black Swans’ who could disrupt the industry with innovative “consumer facing” technology in coming years. New trends are emerging in the online travel space and online travel companies have to adapt their products and business models based on anticipated changes and potential disruptions of the ecosystem, the white paper says.
Revealing the white paper, Sebastien Gibergues, Head of Leisure & Online Travel, Amadeus IT Group said that “a brave new world” is emerging fast and many disruptions are bound to happen in the online travel space between now and year 2020. Online Travel volume which was US$8.9 billion in 2015 is expected to nearly double to touch US$17.3 billion in 2020 in India. Out of the total online travel business, almost 50% is expected to happen through mobile in 2020, he said. Therefore, it is quite critical online travel companies to polish their consumer facing technology more robust and efficient.
Online Travel 2020
Amadeus white paper has identified evolution of four different scenarios that can unfold and play out any geography in the world. These scenarios are:
The rise of Mega Online Travel Retailers – the consolidation between OTA and metasearch business models, as well as the rise of online advertising, could lead to a new kind of online travel retailer.
Traditional tour operators transforming themselves into Digital Tour Operators – Traditional Tour Operators and OTAs may merge to become the ultimate travel seller. From handling complex trips to servicing with new -generation travel stores, Digital Travel Operators could provide a happy mix of digital and human interaction to create a personalised travel experience.
The rise of more sophisticated Mobile Travel Retailers – Imagine an addictive mobile travel agency app that accompanies the traveller along the entire journey. Rather than being a complementary distribution channel, mobile could become the only means of distribution and the only app a traveller needs – or wants.
Emergence of new Travel Marketplace by e-commerce giants – With more and more leading IT players and e-Commerce giants creating demand for new and innovative platforms, the players of the travel industry could come together and build their own Travel Marketplace platform for OTAs, airlines, hotels, and other travel-related companies to sell their products and services.
As a B2B technology company, Amadeus will continue to watch the unfolding online travel scenario, play an enabler’s role to help its industry customers “transform themselves as one of the industry leading online player,” he said. “Our message to the trade is fairly simple. They have to focus their investments on consumer facing channels. Behind the scene, as a B2B company we will continue to invest in building the core component to enable trade in the new business model. We believe that some of these components can be built as shared component or Cloud service, then our consumers can build their value propositions on top of it,” Gibergues stated.
Source: http://www.travelbizmonitor.com, 18 March 2017 & http://amadeusafricablog.com
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