Opinions: 

Travel Tech

A new study by airline technology provider Worldpay shed light on the future of airline distribution. The study paints the picture that airlines' focus will increasingly shift towards mobile and social media as major distribution channels. Over eight in 10 companies in the sector believe that implementing new payment solutions represents a major business priority. The study quotes ‘gaining competitive advantages’ as one of the main reasons for this shift towards innovation in payment solution (Travolution). Airlines aim to extend existing mobile services over the next two years to offer ancillary purchases, such as seat upgrades, booking management, onward travel and inflight sales via mobile phones.

AIRLINES AS LEADING INNOVATORS IN TOURISM

Airlines have long been considered as being the leader of technology innovation and adaptation in the travel and tourism industry. In this regard it is no surprise that airlines focus now heavily on mobile as both a distribution channel and a means of payment. In total 71% of the survey’s respondents the future of airline payments lie in mobile. However, the question remains wether these findings are not too overly optimistic.

THE CHALLENGES ARE NON-TECHNICAL

Although a general shift towards mobile in travel can be observed, and the advantages for the service providers are clear (improvement of internal processes, such as data handling and submission); adoption rates, especially for payment and booking solutions, remain low. On the one hand, this is due to the different browsing experiences on mobile devices. On the other hand, consumer lack trust in mobile as a secure payment channel. Thus, airline in particular, but also tourism businesses in general, will face the challenge of gaining consumers’ trust and confidence, when implementing mobile payment solutions.

SOCIAL SALES

While many airlines already have very active presences on social media channels, in particular Facebook an Twitter, they are planning to increase the usage. In total 40% plan to be active on Google+ this year. Social media is now also seen as a high potential sales channel, with nearly a third of airlines planning to enable sales via social media in the next 12 months. This development gives an insight into where the travel industry will be moving over the next few years in general, as airlines are ahed of other travel sectors in terms of technology adoption.

 

 

More from #DTTT

  • In February we present:
    Shaping Vienna – A New Visitor Economy Strategy for the Vienna Tourist Board

    Sustainable tourism growth is at the forefront of destination strategy today, proposing new visions and objectives for the future of the visitor economy. The Vienna Tourist Board presents its Visitor Economy Strategy 2025, Shaping Vienna, reflecting a new era of tourism that targets sustainable development with an emphasis on adding value for the city, its […]

    #Visitor Economy Strategy #sustainable tourism #add value #Vienna Tourist Board
  • In February we present:
    Travel Oregon – Rethinking Content Styles

    For Travel Oregon, content has taken several changes in direction over the years, with a timeline of multiple successful campaigns under its name. This is a great example of a DMO that has adapted its content style over time to align with the ever-changing travel landscape, highlighting the role of sustainability and its impact, and […]

    #rethinking content style #brand dna #sustainability #travel oregon #brand-values #differentiation
  • In January we present:
    #ClientStories Visit Brussels | Full Digital Transformation

    The Digital Tourism Think Tank conducted a full Digital Transformation assessment and organisational audit of Visit Brussels, looking at every single aspect of the organisation and its digital activities.  Using our carefully curated 12-step approach, we reviewed the organisation from a completely holistic perspective, analysing everything from the organisational structure to the visitor cycle and […]

    #digital content strategy #brand transformation #Visit Brussels #digital transformation #design-thinking #Knowledge Exchange
  • In January we present:
    Visit California – The Pivotal Brand Touchpoint

    Visit California is a DMO that is really leading the way when it comes to leveraging the destination brand story, and has long been a destination that we here at the #DTTT consider to be a best practice when it comes to delivering compelling content, all year round.   Visit California understands the importance of […]

    #brand desire #brand story #visit California #touchpoints #brand-identity #content strategy
  • In January we present:
    Digitising a Destination with Tourisme Bretagne

    Today, the travel industry finds itself in an unprecedented position. The competition has never been so high and with the issue of sustainability rife within the industry and world as a whole, DMOs are striving to implement initiatives that support sustainable growth for the destination, tourists and all stakeholders involved.  The Federation of Breton Tourist […]

    #Tourisme Bretagne #sustainable tourism #customer journey #DTTT-global #digital strategy #digitalisation
  • In January we present:
    How Destination Canada evolved from a Destination Brand to a Passion Brand

    For destination marketers today, the biggest challenge is to keep up with the speed of change and the ever-changing traveller. So how best to stand out from the competition? Is it through technology? Offers? Experiences? Brand?  Here is an extract of Destination Canada’s talk about brand transformation.  We have highlighted the key messages.  The full […]

    #brand journey #transformational travel #passion brand #Brand evolution #destination canada #strategy
Show more
© 2017 Digital Tourism Think Tank

Digital Tourism Think Tank logo imge