Something is different this year. It’s true that The Phocuswright Conference typically addresses the forces that impact and reshape the travel industry; for a sector as dynamic as travel, it’s natural that we would take this approach. But this time around, it’s more than that. New agents of change abound as a new age of travel beckons. Travel distribution is being totally upended, as new players and paradigms exert their influence, and the tussle for control over content, the customer and their allegiance reaches a new level of intensity. And much of it is being fueled by technology that will have morphed into something appreciably more powerful by the time you’re done reading this. Here’s how we see it:
- A new age. Where Google once dominated at the top of the funnel, social platforms like TikTok and Instagram are now in the mix. Disruptive, AI-powered conversational search now serves up smarter, more personalized travel inspiration and recommendations. Meanwhile, airlines are embracing NDC to differentiate content across channels aiming to personalize offers, as legacy systems and the once-dominant GDSs are increasingly being squeezed in this new distribution dynamic. Hotels often follow the airlines’ lead. Can they be far behind in their quest to regain some control over distribution? Brands outside the traditional travel ecosystem – including big-box retailers, financial institutions and loyalty clubs – are firmly in the game, redefining what it means to be an online travel agency. With myriad influencers, content sources and new pathways now leading to the purchase, travel businesses must know where they stand and make some bold choices to keep up.
- Customers in control. Notwithstanding the fervent efforts of the biggest suppliers and intermediaries to “own” the customer, their profiles and data, in this New Age only the customer owns the customer. Self-sovereign identity, personal data vaults, secure digital wallets and other empowering tech let consumers pull the strings. In the soon-to-be cookie-less world, the traveler will decide how, when and with whom to share their details and personal information, protecting their privacy and removing a layer of friction from travel shopping. With the tables turned, how can the industry’s titans and trailblazers continue to acquire customers and, more importantly, gain their trust and loyalty to the point where they will open their profiles and purses?
- Emerging agents. Despite the massive hype and handwringing, we are some years away from fully autonomous agents executing sophisticated plans and completing complex tasks for travelers and businesses with little or no direction. Complete upheaval of travel shopping and buying has not yet occurred. But make no mistake: Emerging agents and transformative tools are already in play and increasingly augment the core tasks that travelers engage in as they seek inspiration, plan, purchase and organize their trips. From intelligent trip-planning to personalized curation and analysis, these tools open new realms of efficiency, quality and cost-savings for travelers and industry stakeholders. Those that relegate this new reality to some far-off future proceed at their own peril.
- Enduring agents? Proclamations of the traditional travel agent’s demise have come and gone… will personal and autonomous agents deal a final blow to even the most tenacious travel advisors? With empowered travelers taking the reins more than ever, and new tools taking the grunt work out of gathering options and itineraries, what becomes of the traditional travel agent? Savvy advisors may find a winning combination by deploying these same high-tech tools to operate more effectively, while also going deeper to deliver customers the expertise and value that AI cannot (and never will?).
THE NEW AGE(NTS) - The theme for The Phocuswright Conference 2024
A New Age in travel is indeed upon us, along with its accompanying Agents. Join us at The Phocuswright Conference in November as we dissect, debate and (yes!) define what travel will look like in the years ahead.