Six biggest trends in travel innovation and technology

Phocuswright, the leading authority on travel industry research and events, has revealed the top six technology trends that will impact the travel industry in 2024. This comes ahead of the Phocuswright Europe 2024 Conference, which will revolve around what what recent powerful advances in technology could mean for the future of the industry, and how travel companies must adapt to remain relevant.

"Uncertainty may be the word that best captures the continued disruption we have experienced in recent years, from the pandemic to extreme weather events, inflation, high interest rates and geopolitical tensions," comments Mike Coletta, Director of Research and Phocuswright Innovation. "In troubled times, a deeper understanding of important trends becomes even more critical. While uncertainty in the world may be increasing, two things in travel are happening: Travel demand is resilient, proving that it can and will be "It will recover from even the most adverse circumstances. And, more than ever, travel companies that do not embrace emerging technologies are on the path to obsolescence."

"If 2023 was the year generative artificial intelligence (AI) grabbed headlines, 2024 will be the year companies start making it operational. And while generative AI may have seemed like the only tech story of recent times, "There are many other developments in the travel and technology sector that will influence how travel companies operate in the coming years."

According to Phocuswright, the six biggest trends in travel innovation and technology for 2024 are:

Underuse of new technologies in travel due to financing problems: The main factors limiting the adoption of technology arise from concerns about the costs of integrating new technology, fear of wasting time with fads and not wanting to compromise the essential human touch of travel. AI aside, the relative lack of funding points to an undervaluation of new tourism technology, leading to underutilization in the sector and ultimately a disappointing experience for the traveler.

Customer profile ownership and digital identity: The idea of ​​decoupling identity from individual profiles driven by providers by adopting a self-sufficient digital identity (SSI) that is owned and controlled by the individual is gaining momentum. Digital identity could play a crucial role in generating more meaningful and personalized quotes from suppliers. It can also present an opportunity for forward-thinking companies to capture market share from their competitors.

Reducing emissions means cutting corporate travel: The exact impact of sustainability actions on corporate travel is difficult to predict, but it runs into billions of dollars if nearly half of companies plan to cut it. Having the commitment of the largest companies in the world, what is good for the environment may not be so good for tourism companies. By understanding how large companies plan to achieve sustainability goals, we can better predict the recovery of corporate travel.

From buzzword to bottom line, keeping pace with Gen AI in travel: As the industry overcomes the initial hype, 2024 will look to leverage what we've learned so far to focus on the most advanced use cases. beneficial and avoid wasting resources on those that do not have a clear return on investment. In 2024, tourism companies are expected to accelerate investment in generative AI applications. But separating the winning use cases from the losing ones will be an ongoing process of trial and error.

Autonomous agents in travel are coming: Generative AI increasingly enables the autonomous creation of complex types of content in text, audio and even video formats. But how will it affect the sector in the long term? The concept of autonomous agents promises to truly automate the travel planning and booking process, but what will that interface look like?

Prepare to accept digital euro, rupee and yuan: Something that may be going unnoticed by some in the sector is the fact that central banks around the world have started issuing digital currencies. These central bank digital currencies (CBDCs) have many similar features to cryptocurrencies, but are promoted and controlled by existing central banks rather than decentralized companies or organizations. The goals of CBDCs are to increase privacy, transferability, convenience, accessibility, and security, but the centralized control of CBDCs has raised significant concerns about these same issues.

"Travel can be a powerful force for good, and we can all do our part to rebuild trust wherever it is needed, whether between companies and customers, between nations or between humans and computers," Colletta continued. "Generative AI has its share of issues that lead to a lack of trust, from bias and copyright infringement. In fact, all nascent technologies struggle with issues related to trust as they make the journey from the marginal "Staying up to date with these latest innovations is the foundation on which we can understand how to effectively leverage new technologies, while establishing and improving trust within our ecosystems."