By Jose Allan Tan
Booming economies mean more people are traveling. Whether for business or pleasure the entire industry is taking advantage of this.
Consider the upward spiral of hotel prices in Singapore, Hong Kong and Beijing. With prices up across the board, you'd think there is a conspiracy within the travel industry to milk the cow for what its' worth. Then again blame it all on the law of supply and demand.
According to the Barclaycard Business Travel Survey 2005/06, almost 45 percent of business travelers said they traveled more for business in 2005/2006 than they did in 2004/2005. One third of these are due to business expansion overseas.
The report, "Traveler Tribes 2020" (published by the Henley Centre HeadlightVision -- a global strategic futures & marketing consultancy) notes that both cosmopolitan commuters (domestic travelers) and international commuters are on the rise. A personnelzone.com survey suggests that the growth in international commuting will be facilitated by a decline in fixed hour jobs.
Time efficiency and flexibility will become increasingly important to commuters. These travelers will select to use suppliers who facilitate smooth and fast travel. "They will not want to waste unnecessary time traveling. Therefore the ease of booking, speed of check-in and security, along with the convenience of a travel hub location will influence their travel choices significantly," says David Brett, president of Amadeus Asia-Pacific.
The second type of business traveler is the Global Executive who travels in premium or business class. According to the report, by 2015, the number of business travelers using business class services will rise from 17 percent (in 2005/6) to around 33 percent in 2015, driven by the demand for improved service and better working conditions. Travel providers will need to think about technology and premium services that fit in with their needs.
Airline operators will also see an uptake in business-class travel as Global Executives take to the sky in style and comfort. For these executives, it is not so much the perk of comfort and luxury, as it is the ability to work on board the aircraft and continue working uninterrupted after the executive has disembarked the plane and headed for the office.
The trouble with traveling
To be fair, there are problems on the horizon. Security remains one of the biggest hurdles to frequent travel. Political and economic instability arising from insurgencies and bombings continue to escalate with no immediate resolution in the near-term. This may lead to the need for additional security measures, visa regulations and entry controls, which could restrict travel. Fear of the spread of global pandemics (bird flu, SARS) may also impact international travel.
This also impacts the cost of fuel which remains uncertain in the mid-term. A paradox to this is the apparent resilience business travelers have developed over the last 18 months.
While new technologies do offer an alternative method of communication for meetings, it is still maintained that this channel will be no substitute for face-to-face interaction and personal contact will be preferable as long as it remains economically viable.
Awareness of environmental issues such as global warming may lead some businesses to restrict travel in an effort to do their part to reduce carbon emissions. However, research today reveals that consumers will continue to travel as needed to meet work commitments and may only choose other more ethical options when they are comparable in price and quality.
Technology not to the rescue
Advances in video conferencing and VoIP promise to reduce the need for business travel, this has not translated into a reduction in travel particularly in Asia where businesses are often conducted face-to-face, allowing for executives to share insights into different cultures.
Airports and airline operators are not sitting idly in the stands. Working with industry bodies such as IATA, many are looking at various technologies to see what would contribute to the continued positive business atmosphere even in the face of threats beyond their control.
"Airports are also turning to technology to help solve the challenges associated with the changing security requirements while minimizing passenger inconvenience. One area where we are beginning to see convergence is between security and self-service. New applications and peripherals will allow this convergence to take place without compromising security and transaction or processing time, keeping it simple for the passengers," says Russ Lewis, Regional Vice President of Airport and Desktop Services, Asia Pacific at SITA.
Technology is not taking a backseat to development. Brett believes that "key trends in technology that will impact the profitability of the industry are integrated information systems that offer more convenience for customers and new ways for travel providers to reach them. Over the next few years, we will see travel bought and sold as a commodity via non-traditional retail outlets, and the offerings will be personalized according to customer profiles."
Integrated sales systems will allow travel providers to cross-sell additional products and services, and the ability to sell to customers via mobile telephony.
Coming process innovation
"Traveler Tribes 2020" offers one caveat -- it does not mandate nor predict with certainty what the future will be. "We see the report as supposed to start a conversation within the travel industry and stimulate debate about what the future of travel holds and the implications for travel service providers such as airlines," notes Brett.
Executives are increasingly demanding more technologies to make their travel easier and more efficient. In the future, humanization of technology will mean more personalized services to meet the needs of business travelers, and information that is readily available to support their business activities.
This means that travel providers can deliver exceptional and engaging customer experience that makes travel hassle-free. For example, a business traveler who is going to miss his flight would appreciate the ability to quickly and easily reschedule another flight.
The continuing evolution of processing power will support technological developments, and it is expected that mobile communication devices will become even more advanced. Open systems architecture and web-based applications will further enable travel providers to meet the needs of customers.
The Traveler Tribe report outlines a number of technologies that are expected to be developed over the next few years. These include:
1. Digital personal identities (detailed customer information held digitally and therefore easily and quickly accessible), to enable a far more personalized service.
2. Integrated Information systems that combine information from a variety of sources.
3. Real-time information delivered to individuals based on need and location.
4. Increased customer interaction through social computing.
5. Visual information technologies becoming cheaper and more sophisticated.
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