The travel market has gradually evolved into a more technologically equipped sophisticated sector. The service providers today strive to harness emerging technologies to enhance customer experience and loyalty.
The pressure to operate efficiently is driven by the dynamic growth in passengers and increased customer expectations while delivering an unparalleled user experience. Air travel has become a commodity, the market is saturated with airlines with more expected to obtain licenses to operate over the next few years.
In APAC especially, severe competition among airlines and abundant price options are making air travel more affordable to the burgeoning middle class. This provides tremendous opportunities for IT service providers.
1. Author's Advisory
- Travel is becoming cheaper and passenger affordability growing: Enterprises are investing in all-in-travel solutions to grab this opportunity
- Capability to cater to Integration, portfolio, infrastructure, platforms etc. required before entering a specific travel solution market
- Suppliers can cater to solutions based on type or end-user usage:Capturing the right niche to service is most crucial
- Aviation solutions have surged in the last 3 years; predominantly due to increase in corporate travel and middle class affordability
- Apart from travel solutions, providing a plethora of services related to travel and expense shall be a potion for growth
2. Scope & Limitations
3. Market Outlook: Travel Solutions
- Travel solution providers are focusing on customer experience and pricing transparency to increase buying influences
- Globally, travel solution providers are concentrating on the SME market by providing price and convenience orientated integrated solutions
- In BFSI and IT/ITeS firms, 20-30% of employee budgets are for travel/other expenses. Travel Solution providers need to concentrate on these
- Apart from pricing, a travel solution provider’s portfolio and credibility have been crucial factors for implementing/adopting their solution.
- Keeping cost and integration in focus, cloud is the future for travel solutions providers. In the current set of solutions, cloud has been a major offering
- High cohesion with expense and invoice management solutions: Travel Solution providers to focus on packed solutions covering these
- Gradual evolution of travel solutions market into a more technologically equipped and sophisticated sector
- The concept of a dynamic transportation solution integrating different modes under one entity to make personal transportation easy and simple
- Products and services could be offered as part of an integrated mobility solution provider
4. The Industry going Forward
- In time, a customer’s interaction channel will become commoditized; focus more on providing right price and automating process
- Enterprises need to leverage varied communication channels and technologies for traveller interaction
- Move to resolve travelers pain points vs. enterprise issues through technologies…will be more focused on B2C
5. Annexure: Our Services
- Maximize opportunities from existing products and markets; systematically explore new products, markets, including inorganic Opportunities
- Our Growth Consulting Canvas
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