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Data-Based Innovation to Disrupt, Restructure Travel Industry
Start-Ups and Tech Giants Have a Big Edge Over Travel Suppliers in Developing Comprehensive, Personalized Solutions to Customer Pain Points During the Travel Journey, According to a New BCG Report
Marketwired The Boston Consulting Group 8 hours ago
BOSTON, MA--(Marketwired - Jan 14, 2016) - Innovation is restructuring the travel industry, and new solutions that solve today's customer pain points will be developed by companies that collect data, manage it effectively, and break down data silos to develop the most comprehensive -- and personalized -- picture possible of the travel customer. As matters stand today, these innovations are far more likely to be driven by tech companies and venture-backed start-ups than by travel providers. These are just some of the key findings of a new report by The Boston Consulting Group (BCG) in collaboration with BCG Digital Ventures and B Capital Group. The report, titled Travel Innovated: Who Will Own the Customer?, is being released today.
According to Travel Innovated, three areas are ripe for innovation and disruption over the next several years: travel inspiration (the first vital phase of the travel journey), booking transparency, and unmanaged business travel. The speed and extent of change in each area will be determined in part by how and how much traditional travel companies, technology companies, and start-ups interact in areas such as sharing data and co-investing in shared infrastructure.
BCG bases its conclusions on an analysis of venture-capital investment trends in the industry, interviews with more than 30 visionary thinkers (including travel company CEOs and CIOs, start-up CEOs, and others) in North America, Europe, and Asia, and the firm's own experience with a wide range of global airlines, hotel companies, and other travel suppliers.
"The key question for travel companies is, how can they leverage their strengths to take part in this innovation so they can maintain and strengthen their position in the consumer's travel experience?" said Raj Ganguly, a partner of B Capital Group and a coauthor of the report. "Will they be active in creating the exchange platforms that will be necessary to facilitate trading and sharing of consumer and operational data in a controlled environment? Or will they let big technology companies and start-ups fulfill that function? Unless travel suppliers are developing the solutions themselves, or partnering with others that are doing so, they risk losing their place in the value chain."
Two-thirds of the experts BCG interviewed think that within ten years, consumers will be able to source their travel inspiration using tools that provide far more integrated and personalized experiences. Some experts expect that the new tools will be developed by start-ups, but these companies need to capture a significant share of travel search and booking in order to make money, and this model has yet to be proven. The strong advantages of the big tech companies give them a big edge in this area.
More than half of the experts believe that other new tools will be in place in the next ten years, giving consumers far more transparency in the booking process with respect to both price and nonprice attributes. Some predict that venture capital-backed start-ups will lead this innovation, while others think that technology companies will leverage their strengths to lead in the development of new tools. The ultimate goal in that case is to be able to perform some functions of a travel agent and use predictive analytics to optimize the timing of bookings and offer greater flexibility to change or cancel tickets sold as nonrefundable.
Start-ups, which do not have legacy businesses or platforms to protect, are more likely to seek inventive ways to break down and combine data silos. That said, once they mature, start-ups are likely to be acquired by larger technology companies. This represents a significant potential threat to traditional travel suppliers -- unless travel companies decide that they, too, want to play in this game and then back that decision with serious financial investment.
"Despite the investment attention that the travel sector attracts -- and the number of start-ups it spawns -- there is still plenty of opportunity for innovation," said Sean Collins, a partner of BCG Digital Ventures and a coauthor of the report. "One is the personalization of travel -- providing the ability for customers to customize travel itineraries more easily. We expect that new inspiration and booking sites will marry data with predictive analytics to tailor recommendations and provide concierge-style packages. Another area is better integration across the travel journey. Back-end technology tools will improve integration across modes and providers, creating a more integrated experience for the consumer along every step of the travel journey."
One-third of the experts interviewed felt that new tools will reshape business travel just as profoundly as they will leisure travel in the next ten years. While start-ups are developing new tools that enable business travelers to tailor their travel experiences within price limitations, the advantage generated for established technology companies by being deeply embedded with enterprises and business travelers today will be hard for others to overcome.
"The key for travel companies is to make sure that they are integral parts of the industry's evolution in these areas, however it plays out," said Nicolas Boutin, a BCG partner and report coauthor. "This almost certainly means changing the way they look at the marketplace and approach the consumer. It will require playing offense as well as defense, developing new capabilities, and learning to leverage their strengths to innovate or to work with others. Most of all, it means putting consumers first."
A copy of the report can be downloaded at www.bcgperspectives.com.
To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or gregoire.eric@bcg.com.
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 82 offices in 46 countries. For more information, please visit bcg.com.
About bcgperspectives.com
Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content -- including videos, podcasts, commentaries, and reports -- can be accessed by PC, mobile, iPad, Facebook, Twitter, and LinkedIn.
Contact:
The Boston Consulting Group
Eric Gregoire
Global Media Relations Manager
Tel +1 617 850 3783
Fax +1 617 850 3701
gregoire.eric@bcg.com
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Yahoo FinanceData-Based Innovation to Disrupt, Restructure Travel IndustryStart-Ups and Tech Giants Have a Big Edge Over Travel Suppliers in Developing Comprehensive, Personalized Solutions to Customer Pain Points During the Travel Journey, According to a New BCG ReportMarketwired The Boston Consulting Group 8 hours agoBOSTON, MA--(Marketwired - Jan 14, 2016) - Innovation is restructuring the travel industry, and new solutions that solve today's customer pain points will be developed by companies that collect data, manage it effectively, and break down data silos to develop the most comprehensive -- and personalized -- picture possible of the travel customer. As matters stand today, these innovations are far more likely to be driven by tech companies and venture-backed start-ups than by travel providers. These are just some of the key findings of a new report by The Boston Consulting Group (BCG) in collaboration with BCG Digital Ventures and B Capital Group. The report, titled Travel Innovated: Who Will Own the Customer?, is being released today.According to Travel Innovated, three areas are ripe for innovation and disruption over the next several years: travel inspiration (the first vital phase of the travel journey), booking transparency, and unmanaged business travel. The speed and extent of change in each area will be determined in part by how and how much traditional travel companies, technology companies, and start-ups interact in areas such as sharing data and co-investing in shared infrastructure.BCG bases its conclusions on an analysis of venture-capital investment trends in the industry, interviews with more than 30 visionary thinkers (including travel company CEOs and CIOs, start-up CEOs, and others) in North America, Europe, and Asia, and the firm's own experience with a wide range of global airlines, hotel companies, and other travel suppliers."The key question for travel companies is, how can they leverage their strengths to take part in this innovation so they can maintain and strengthen their position in the consumer's travel experience?" said Raj Ganguly, a partner of B Capital Group and a coauthor of the report. "Will they be active in creating the exchange platforms that will be necessary to facilitate trading and sharing of consumer and operational data in a controlled environment? Or will they let big technology companies and start-ups fulfill that function? Unless travel suppliers are developing the solutions themselves, or partnering with others that are doing so, they risk losing their place in the value chain."Two-thirds of the experts BCG interviewed think that within ten years, consumers will be able to source their travel inspiration using tools that provide far more integrated and personalized experiences. Some experts expect that the new tools will be developed by start-ups, but these companies need to capture a significant share of travel search and booking in order to make money, and this model has yet to be proven. The strong advantages of the big tech companies give them a big edge in this area.More than half of the experts believe that other new tools will be in place in the next ten years, giving consumers far more transparency in the booking process with respect to both price and nonprice attributes. Some predict that venture capital-backed start-ups will lead this innovation, while others think that technology companies will leverage their strengths to lead in the development of new tools. The ultimate goal in that case is to be able to perform some functions of a travel agent and use predictive analytics to optimize the timing of bookings and offer greater flexibility to change or cancel tickets sold as nonrefundable.Start-ups, which do not have legacy businesses or platforms to protect, are more likely to seek inventive ways to break down and combine data silos. That said, once they mature, start-ups are likely to be acquired by larger technology companies. This represents a significant potential threat to traditional travel suppliers -- unless travel companies decide that they, too, want to play in this game and then back that decision with serious financial investment."แม้ มีความสนใจการลงทุนที่ภาคการท่องเที่ยว - และจำนวนตอัพมัน spawns - ยังมีโอกาสสำหรับนวัตกรรม กล่าวว่า คอลลินส์ฌอน คู่ค้าของกิจการดิจิตอล BCG และ coauthor ของรายงาน "หนึ่งได้ตั้งการเดินทาง - ให้ความสามารถสำหรับลูกค้ากำหนดเดินทางได้ง่ายขึ้น เราคาดหวังว่า แรงบันดาลใจใหม่ ๆ และจองไซต์จะแต่งงานกับข้อมูลวิเคราะห์งานเพื่อจัดทำคำแนะนำ และให้บริการแบบแพคเกจ พื้นที่อื่นได้ดีรวมทั้งการเดินทางท่องเที่ยว ส่วนเทคโนโลยีเครื่องมือจะปรับปรุงรวมทั้งวิธีและผู้ให้บริการ การสร้างประสบการณ์แบบบูรณาการเพิ่มเติมสำหรับผู้บริโภคตามทุกขั้นตอนของการเดินทางท่องเที่ยว"หนึ่งในสามของผู้เชี่ยวชาญสัมภาษณ์สักหลาดที่มือใหม่จะเปลี่ยนธุรกิจท่องเที่ยวเพียงเป็นซึ้งที่พวกเขาจะเดินทางในสิบปีถัดไป ขณะตอัพจะพัฒนาเครื่องมือใหม่ ๆ ที่ช่วยให้นักธุรกิจที่ปรับแต่งประสบการณ์การเดินทางภายในข้อจำกัดด้านราคา สิ่งที่สร้างขึ้นสำหรับบริษัทเทคโนโลยีจัดตั้งขึ้น โดยอยู่ลึกฝังอยู่กับองค์กร และนักธุรกิจวันนี้จะยากที่จะเอาชนะผู้อื่น"The key for travel companies is to make sure that they are integral parts of the industry's evolution in these areas, however it plays out," said Nicolas Boutin, a BCG partner and report coauthor. "This almost certainly means changing the way they look at the marketplace and approach the consumer. It will require playing offense as well as defense, developing new capabilities, and learning to leverage their strengths to innovate or to work with others. Most of all, it means putting consumers first."A copy of the report can be downloaded at www.bcgperspectives.com.To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or gregoire.eric@bcg.com.About The Boston Consulting GroupThe Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 82 offices in 46 countries. For more information, please visit bcg.com.
About bcgperspectives.com
Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content -- including videos, podcasts, commentaries, and reports -- can be accessed by PC, mobile, iPad, Facebook, Twitter, and LinkedIn.
Contact:
The Boston Consulting Group
Eric Gregoire
Global Media Relations Manager
Tel +1 617 850 3783
Fax +1 617 850 3701
gregoire.eric@bcg.com
View Comments (0)
Share this story
Share this story
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