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Online Travel Agencies continue to adapt to meet changing traveler expectations. Consumers today expect to do more, with less effort and in less time when it comes to booking a trip. Online Travel Agencies can help, offering a wide range of options to travelers, as well as the flexibility to search and compare options.
When it comes to investment priorities designed to meet these evolving expectations, a range of drivers
were illustrated by this study, all with relatively equal weighting.
The technologies expected to make the biggest impact for Online Travel Agencies in the next 12 months are:
Data analytics
Machine learning
Generative AI
Digital payments
Self-service technology
Looking further ahead, over a five-year horizon, the picture changes. Data analytics (29%) and digital payments (31%) drop out of the top five, to be replaced by extended reality and robotics.
The technologies expected to make the biggest impact for Online Travel Agencies in the next five years are:
Machine learning
Generative AI
Self-service technology
Extended reality
Robotic Process Automation
Over the next year, Online Travel Agencies are looking to capture the power of data, through increased investment in analytics, while also deploying new tools – including machine learning and Generative AI – to create new opportunities for travelers.
For example, leisure travelers will increasingly expect to ask ChatGPT and other similar tools – such as Amadeus Hey! – for travel information or trip-related suggestions, before being referred to the relevant company for booking options. Online Travel Agencies are acutely aware of this development with the majority of the main Online Travel Agencies having publicly announced initial Generative AI projects.
“It’s not surprising to see Online Travel Agencies highlight Generative AI as a disruptive technology.”
Nicki Gaynor
VP Commercial Americas
Amadeus
These trends are accentuated over the five-year time frame, with machine learning and Generative AI still the top priorities.
Interestingly, the importance of self-service technology is expected to increase over time, perhaps highlighting the reliance most Online Travel Agencies still have on extensive contact center infrastructure. Even basic servicing tasks, like changing air tickets, still cannot be achieved through digital channels, with travelers forced to phone an agent. In fact, this study confirms that only 42% of Online Travel Agencies allow self-serve ticket changes today.
The potential of the extended reality and robotics is expected to be realized toward the end of the decade, offering Online Travel Agencies a host of new solutions to improve both internal processes and customer-facing offerings.
Specifically, improving the customer experience and productivity are short-term technology objectives when it comes to distribution.
The top technology and distribution priorities for Online Travel Agencies over the coming 12 months are:
Enhance the customer experience
Improve productivity
Personalizing the offer
Traffic acquisition
Improving search functionality
When it comes to specific solutions, Online Travel Agencies are seeking to enhance accessible content through APIs.
Effectively utilized, these solutions give agents access to content, data and processes that accelerate innovation, opening access to a wider range of content.
At the same time, agents are also seeking to drive the efficiency of mid- and back-office systems, potentially through the integration of robotics. Over a longer time frame, of more than a year, low-cost carrier (LCC) content comes into focus, while self-service ticketing and NDC are also investment priorities.
There is, however, work to be done articulating the full value of these solutions.
Today, only 42% of Online Travel Agencies allow customers to self-serve ticket changes, while only half have LCC search, booking and servicing in place. At the same time, 41% of Online Travel Agencies say they have implemented NDC.
The race is on for Online Travel Agencies to offer a complete end-to-end trip planning and servicing experience.
Travelers today expect to be able to search and compare options in one place. If Online Travel Agencies are going to deliver on this need, incorporating LCC content, search, booking and servicing is very important. So is making it easy to compare NDC content alongside EDIFACT. The findings suggest Online Travel Agencies recognize this challenge, with API connectivity the top focus over the coming 12 months.”
Rajiv Rajian
EVP and Chief Commercial Officer, Americas, Amadeus
Which capabilities are Online Travel Agencies focused on implementing in the short term?
Next 12 months:
%
APIs to connect to multiple content sources more easily
%
Improvement to mid- and back-office systems
%
API aggregation
%
Conversational search
%
Robotics for back-office efficiency
Which capabilities are Online Travel Agencies focused on implementing in the longer-term?
More than 12 months:
%
Robotics for back-office efficiency
%
NDC
%
Self-serve ticket change
%
LCC servicing
%
LCC search
