Today’s travellers are no longer satisfied with the status quo. From exhilarating kayaking adventures to delightful wine tastings and immersive walking tours, the modern traveller desires more than just a destination – they crave unique, enriching experiences and discovery.
So, how can travel organisations adapt to meet these evolving expectations while providing a seamless user experience that starts with one booking, and ends with a repeat?
The answer lies in strong digital leadership.
Beyond improving booking capabilities, travel operators are increasingly exploring new ways to create unique travel experiences and itineraries, engaging directly with consumers through digital channels – an approach that opens up new opportunities to generate ancillary revenue streams. With innovative platforms like Viator and GetYourGuide leading the charge, businesses need to invest significantly in their digital presence to capture the growing demand for unique experiences.
To achieve this, attracting the right digital, data, and technology talent is crucial. Effective technology leadership is essential for navigating the complexities of digital transformations while maintaining a strong customer-centric focus.
The evolving travel industry
The global pandemic catalysed a digital revolution across almost every industry, with the travel sector emerging as a prime space for technological innovation. From igniting wanderlust to planning the final moments of a journey, technology is redefining the travel landscape, reshaping every touchpoint.
The luxury travel segment, in particular, has been compelled to innovate to meet the evolving expectations of travellers. To deliver truly exceptional experiences, creating personalised journeys that deliver the high-end service that luxury travellers expect, is key. Achieving this requires a seamless end-to-end experience that blends high-touch service with cutting-edge technology.
Synergies with adjacent industries
While the travel industry has made significant strides, with several airlines investing in consumer digital applications and integrating dynamic pricing models, there are opportunities to learn from adjacent sectors such as Quick Service Restaurant (QSR) operators that have invested heavily in digital, data and artificial intelligence (AI) in recent years.
The introduction of self-service kiosks into QSR premises has led to a ~20% increase in individual order values. While customer data and analytics triggered the use of “suggestive selling” techniques, the integration of AI is taking this innovation even further. With its ability to learn and identify patterns beyond human awareness, AI is now being tested with self-service kiosks to provide personalised recommendations. Just by scanning an individual QR code, kiosks instantly transform into applications, delivering real-time, tailored recommendations.
Just imagine the potential for tour operators, cruise lines and airlines alike if travellers could use AI-powered mobile applications to elevate their experiences by selecting personalised, real-time add-ons from the comfort of their own homes, even months before their trips…!
And while travel and hospitality may seem distinct, they share a common focus on customer interaction, repeat business, and exceptional service. Guest satisfaction and loyalty is key, and the hospitality sector has made significant advancements in this area by investing in data analytics, property management systems (PMS), contactless technology, and also self-service kiosks. Travel companies can learn valuable lessons from hospitality practices to enhance customer engagement and retention, leveraging technology to support their efforts.
By adopting best practices and leveraging emerging technologies, the travel sector can redefine the standards of excellence and deliver unforgettable experiences, while at the same time, significantly increasing revenue. Exceptional technology leaders play a crucial role in this, elevating the travel experience to new heights.
Enhancing technological expertise
In a world where virtually every business is a digital business, leaders must prioritise hiring tech-savvy professionals who not only understand digital platforms but can also align them with broader business objectives. The ideal tech leader should bridge the gap between technical innovation and strategic goals, working closely with the executive committee to ensure that technology investments align with the overall business strategy.
As we witness the resurgence of the travel sector, with McKinsey forecasting a return to pre-pandemic norms where domestic travel dominates 75% of spending, the industry faces both unprecedented opportunities and challenges. This rebound highlights the need for leaders who are equipped to navigate complex markets, optimising digital strategies and capitalising on emerging opportunities.
Despite the integration of digital and technology into our everyday lives, the travel sector is still behind the curve on the digital transformation journey. While travellers have largely shifted from paper to online brochures for their travel inspiration, searching for those individual experiences that piece together into the perfect creation, the discovery and booking process is still too often frustrating and tiresome. Consequently, digital transformation must extend beyond improving websites; there’s an opportunity to create an engaging discovery and seamless booking experience that consolidates all options for flights, hotels, cruises and experiences into one, streamlined platform. Technology leaders need to navigate the complexities of this digital revolution but also assemble and empower teams with the necessary skills. By doing so, they can enable digital specialists to develop seamless, user-friendly, engaging platforms that attract and retain customers.
Embrace digital transformation
In today’s rapidly evolving travel landscape, businesses must prioritise digital transformation. We share three key considerations for the industry to remain competitive:
Invest in personalisation and loyalty programmes
While recent trends in “revenge travel” have sparked an international travel movement, domestic travel still accounts for 75% of global travel spending and is projected to grow by 3% annually. To truly understand the frequently changing behaviours and booking patterns of your customers, leaders should prioritise investments in data analytics. This data-driven approach enables informed and agile decision-making, optimising marketing strategies and allowing for the development of products and services tailored to individual preferences. Personalisation becomes a key advantage, creating unique experiences that encourages loyalty and repeat business.
Direct booking channels are gaining traction as organisations seek to reclaim customer relationships, thereby reducing intermediary fees and gathering more data about their guests. The rapid growth in the Asian luxury travel and hospitality segment further emphasises the shift towards data-informed, high-touch, bespoke services, and individualised loyalty programs that are powered by customer analytics. Developing loyalty programmes are key to creating brand allegiance and enhancing guest experiences.
Collaboration with trade partners and travel agents
The travel ecosystem is built on strong collaboration and partnerships, particularly with trade partners and travel agents. These intermediaries are essential for the education of new customers, distribution of travel products, and providing valuable market insights. Technology leaders should facilitate the integration between their systems and those used by agents to enhance efficiency, improve service delivery, and expand their reach.
This collaboration is particularly vital in capturing the growing intra-regional travel market, which represents a significant opportunity following domestic travel. Regions like Europe and Asia are experiencing strong growth, and travel companies can leverage their relationships with agents to capture this opportunity.
Developing joint marketing initiatives and sharing of data and insights enables travel businesses to amplify their brand presence, create a cohesive customer experience, and better adapt to evolving consumer preferences – ultimately driving growth in a competitive landscape.
Collaboration across other functions
In addition to building effective technology teams, enhancing cross-functional relationships is equally important. The transition from traditional CTOs to digitally-focused leaders requires integrating marketing and engagement strategies into digital platforms, personalising user experiences, and optimising revenue streams through upselling and cross-selling opportunities.
Royal Caribbean’s launch of their new, group-wide and cross-brand loyalty program is a great example of this. While consumers may not be aware of the company’s various brands, linking their loyalty programmes can incentivise engagement across the entire portfolio. However, to ensure the success of a group-wide initiative such as this requires strong cross-collaboration and connection across the core functional areas – digital, marketing and consumer engagement. This collaboration facilitates a better understanding of the business at both the group and individual brand levels, allowing for a deeper insight into customer needs and informed decision making that drives effective growth strategies.
Technology leaders need to grasp the complexities of the business, including its functional objectives and how they align with overall business goals. Maintaining close ties with the entire leadership team, especially marketing and engagement teams, is essential for achieving this alignment.
The future of the travel industry hinges on strategic leadership that embraces digital innovation, prioritises customer-centricity, and fosters collaboration across functions. By investing in technology-savvy leaders, enhancing digital capabilities, and nurturing customer loyalty through personalised experiences, travel businesses can position themselves for sustainable growth. As the industry rebounds, effective leadership that adapts and innovates will be the driving force behind success in this increasingly complex and competitive landscape.
As a leading executive search, interim, and leadership advisory firm specialising in the travel industry, we understand the unique challenges and opportunities facing C-suite executives and their teams.
Our deep understanding of the industry and leadership roles enables us to help you in attracting and retaining top talent.
