Innovations in travel and technology have resulted in new firms changing the way business travel is planned and purchased.
FREMONT, CA: Business travel will be a highly competitive segment for the tour operators and travel agents because of its attractive margins. The global business travel has changed rapidly. Millennials are now making up the majority of the world's workforce, and these digital citizens are also the organizers behind a new breed of business travel solutions. Digital travel management platforms are a reaction against the traditional tour operator and expensive, slow, and analog travel agencies with poor customer service.
OTAs will continue to be one of the most important sources of business. OTAs bring in several benefits, consists of handling payments and customer service on their behalf. Tour operators will need to observe their business models and make sure they are future-proof.
If the business is aimed at a younger market, it's worth bearing in mind that two-thirds of all mobile bookings are made by Millennials.
These strategies reflect the ongoing growth in smartphone use for booking travel and the importance of social media presence. For the tour operators, other new-generation digital services can help their business model to stay resilient and increase the market share.
In most cases, customers who use their smartphone to make a booking will use online payment methods such as eBay or Alipay. They will need to keep track of developments in digital payment, as this is an area that is continually evolving.
The most successful travel companies are increasingly harnessing the power of big data, deep tech, and artificial intelligence. Inspired by the algorithmic trading of capital markets, some of the hospitality firms offer profit optimization software that unlocks hidden profits from hotel bookings already made on your platform.
Finally, new technology, changes in what young travelers want from their trips, and the rise of online booking and OTAs are compelling tour companies to change what they offer and how they offer it.