Technology could attract new customers

1024 576
Technology could attract new customers
Source: WTM
November 15, 2022

To achieve this, the study ensures that consumer demand for technology and sustainability must be addressed

Addressing consumer demand for technology and sustainability could make the travel business better able to survive the economic downturn, a session heard at London's World Travel Market (WTM). 

Caroline Bremner, head of travel research at Euromonitor International, said the current key travel challenges were inflation stemming from the war in Ukraine, along with post-pandemic labor shortages and the loss of China and Russia. as source markets. 

However, the company's recent research shows that the technology is expected to quickly become a more important way of tapping into consumer demand.

Data and analytics remain the technology priority for travel businesses, with more than 65% of the 700 travel professionals surveyed believing this will affect travel businesses in the next five years, with artificial intelligence and virtual or augmented reality the next in importance. 

Despite its financial problems, the Metaverse is seen as an area with long-term potential. 50% of millennial consumers surveyed by Euromonitor planned to attend virtual experiences such as concerts or sporting events, while also looking at virtual reality vacation destinations.

Among European travel companies surveyed, 69% believed that big data and analytics would affect them in the next five years, 52% expected AI to be important and 42% expected augmented or virtual reality. 

Euromonitor believes this will be driven primarily by a desire to improve the customer experience, followed by a desire to improve cyber security, a concern likely accelerated by the war in Ukraine.

In the Americas, Latin America showed increased interest in virtual reality with more than 50% of respondents there interested in exploring travel destinations with headsets compared to 35% in the US.

In the Asia Pacific region, 52% of travel companies said integrating new technology would be a key priority in the next three to five years. Meanwhile, 48% of consumers said they would use a virtual reality headset to view vacation destinations before deciding to book. 

Euromonitor highlighted how Millenium Hotels launched M Social, the first hotel in the Metaverse, which allows consumer avatars to win prizes in the Decentralized virtual world that could be redeemed in the real world.

Bremner advised companies not to turn the cost-of-living crisis into a "race to the bottom," but instead protect margins by investing in technology and being transparent about marketing sustainability, another growing customer demand. 

“We have to remain cautiously optimistic because there are some very big challenges ahead. We already know that in Europe and the United States there could be a recession next year,” Bremner said. 

He added that customers were willing to give up other luxuries, such as home improvements, to travel, but that flexible booking terms, such as offering payment in installments, would likely help. 


Did you like the news? Share it!

to continue reading ...