travel tech insights

It’s clear 2016 has become something of a pivotal year for travel management companies and the corporate travel world in general - and, if the first half of the year is any indication, the second half is poised to be just as impactful. At least that’s the feeling expressed by a host of travel and tourism industry experts at the annual Global Business Travel Association Conference in Denver, Colorado this past week wherein analysts concluded the corporate travel industry is still lagging behind the leisure travel sector in a number of key areas.

While conference presentations and lectures highlighted the steps travel management companies are taking to cater more closely and specifically to the needs of today’s modern business traveler, the consensus was the corporate travel industry is still in catch-up mode when it comes to a number of back office and customer-facing operations which may in fact be preventing the corporate travel industry from reaching its full growth potential - a revelation that’s particularly worrisome given the rapid growth of commerce and business in several key emerging markets.

As we reach the midway point of 2016, it’s commonplace to review the trends, developments, evolutions, and disruptions that have occurred during the first half of the year in order to attempt predictions on where the second half may be headed. While unexpected geopolitical events like the loosening of travel restrictions between the United States and Cuba and Britain's exit from the European Union certainly caught some in the travel industry by surprise, other headlines items like the sustained rise of mobile travel apps and mobile travel interfaces have functioned as more of a foregone conclusion for the travel industry as it embraces more the ability to research, book, and review destinations while travels are on the move.

Travel and tourism industry analysts have been beating the drum for mobile capabilities for some time now, but if there is one surprising element to the mobility narrative, it’s how even halfway through 2016 mobile travel apps and platforms are perhaps the most dominant force in shaping the future of business in travel and tourism. As the world becomes bigger and more emerging markets enter the discussion, mobile travel capabilities are actually making the world smaller as travelers can access more information, products, and services than ever before.

In today’s market, travel and tourism have become less expensive and more accessible for greater percentages of the population than ever before. The internet - through the proliferation of online travel agencies, discount travel websites, travel review websites, and social media - has created a space where those with strict financial constraints can still experience the world without breaking the bank. Often referred to as the budget traveler, this sect of the travel and tourism market is still a sizable portion of the traveling public, and one the travel industry would be foolish to write off even as global travel grows more and more attainable and commonplace.

But who is the budget traveler? What does this breed of tourist look like?

If travel companies would be ill-advised to ignore budget travelers, then it only make sense the industry understand the needs, wants, and desires of this customer pool to best position products and services of greatest appeal and importance.

Budget. Adventure. Experimental. Millennial. The population of today’s travel industry is fragmented into so many different niche categories or markets it can be difficult for travel agencies, tour operators, and other travel management companies to effectively position themselves as a value proposition to each of these unique, varied market segments. And now the travel and tourism industry may have to further diversify its outreach and customer relations efforts with the rise of yet another idiosyncratic breed of tourist: the culinary traveler.

During the last five or so years, the culinary traveler - and food tourism in general - has become a major player in the travel industry, driving growth and expansion in current and emerging markets as more and more travelers seek to experience different cultures through food and food and beverage-based activities.

It may seem counterintuitive that the most connected, digitally tuned-in generation in history is helping to reverse the trend in recent years away from travel agencies, but a series of reports and surveys in recent years indicate that’s exactly what’s happening. Millennials, one of the most sought-after market shares in today’s travel industry, are leading the charge in utilizing travel agents and online travel agencies to help curate their travel experiences, which is proving to be a boon for travel companies as they seek to leverage new competitive advantages for relevancy in today’s fast-paced travel landscape.

According to a new report by the American Society of Travel Agents (ASTA), about 30 percent of millennials reported using a travel agency in the last 12 months - in addition, more than 45 percent indicated they would recommend using a travel agent to friends or family.