A LOOK AT THE FUTURE OF TRAVELER...

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INSIGHTS DECK MOBILE AND THE NEXT WAVE OF DIGITAL DISRUPTION: A LOOK AT THE FUTURE OF TRAVELER EXPERIENCE Sponsored by:

Transcript of A LOOK AT THE FUTURE OF TRAVELER...

INSIGHTS DECK

MOBILE AND THE NEXT WAVE OF DIGITAL DISRUPTION:

A LOOK AT THE FUTURE OF TRAVELER EXPERIENCE

Sponsored by:

Mobile and the Next Wave of Digital Disruption: A Look at the Future of Traveler Experience SKIFT REPORT 2017 2

The rise of mobile has changed the face of consumer industries forever, and travel is no exception. It is transforming how travelers interact with the companies that serve them. It provides unprecedented opportunities for brands to engage and succeed as well as unprecedented risks of being left behind.

Customer expectations are also higher than ever before and travel companies are facing threats and competition from beyond the industry. The gap between non-travel and travel retail is closing, and if you don’t “own” your customer, someone else will.

Travel brands that capture this ground will continue to grow and expand through better technology and smarter platforms while less ambitious brands will decline. Travel brands will succeed if they adapt and adjust to the changing digital environment and learn from the tech brands that are leading this digital revolution.

The digital landscape is evolving at an incredible speed with a constant flow of new technologies that are changing the way travelers engage with travel brands. Smart devices, frictionless payment, voice recognition, virtual reality, augmented reality, bots and artificial intelligence are all shaping how consumers and travelers expect to engage with brands.

The bad news for travel brands is that a “one-size-fits-all” approach won’t work anymore. The good news is that these new digital platforms can help travel brands build personalized, authentic relationships with their customers. Travel companies have an opportunity to gain competitive advantage by meeting the growing needs of millennial travelers, as well as business and leisure consumers around the world.

There are some amazing travel brands that are doing all of this already, and they are the ones winning right now. They are already meeting customers’ needs for outstanding engagement and simplified compelling experiences. They have added touch points across the entire customer journey so that their customers have the widest range of personalized options available across flights, hotels, cars, cruises, rail and tours.

While this report aims to help travel brands grow in this exciting period, it’s important to note that this is not about a potential future, it is the here and now. We are already working with airlines, hotels, agencies and travel management companies making strong inroads into leading this digital disruption. It is paying major dividends for them resulting in hundreds of millions in revenue via their mobile channels.

At Travelport, we are empowering travel experiences by helping travel brands deliver the kind of engagement that supports conversion, encourages loyalty and ensures a consistently positive experience. We are leveraging new and emerging technologies to enable the next wave of performance and scale required to meet the ever-growing demand.

I hope you find the following report regarding the mobile and digital landscape useful. We’d welcome future engagement and getting your thoughts on this exciting topic.

Executive Letter

Stephen ShurrockChief Commercial Officer, Travelport

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Mobile and the Next Wave of Digital Disruption:A Look at the Future of Traveler Experience

Mobile has radically reshaped how customers research, book, and plan travel, as well as how brands connect with and add value to consumers’ lives. Airline and hotel mobile bookings now account for one in four online travel bookings worldwide, according to Criteo. Meanwhile, Expedia found that 84 percent of travelers worldwide want to be able to access information from anywhere while they travel.

And while mobile has already disrupted the travel industry, emerging technologies rooted in mobile, such as artificial intelligence, augmented reality, virtual reality, voice search, and bots, are set to alter the relationship between travelers and travel brands even further.

These technological developments will influence every aspect of the travel industry, from airlines, to hospitality companies, to travel agencies and destinations. Understanding how these changes are shifting traveler behavior and the ways brands are reaching travelers, no matter what channel they’re using, will be key to forging the enhanced relationships and experiences that customers now expect.

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Retailers of any category have to go where their customers are, no matter what channel they’re using––because if they don’t, another competitor will.”

— Steven Ratcliffe, VP Product, Travelport Digital

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Table of Contents

ABOUT SKIFT

Skift is the largest industry intelligence platform, providing Media, Insights & Marketing to key sectors of travel.

SkiftX is Skift’s in-house content marketing studio, working collaboratively with partners on integrated projects including webinars, video, research, and live events.

Visit skiftx.com to learn more or email at [email protected].

MASTHEAD

Writer / Alison McCarthyProject Manager / Amy Thorkilsen VP of Ad Sales / Anthony DeRicoDesigner / Yuanxi Liu

A Snapshot of Mobile Usage

Mobile Serves As a Lifeline for Travelers

The Millennial Factor

Looking Ahead to Gen Z

Why Mobile Matters in Emerging Markets

Mobile’s Playing a Growing Role in Travel Booking and Transactions…

… But Engaging the Customer is Now Top Priority

The Shifting Focus From Transactions to Engagement

Mobile and the Engagement Economy

Limited Engagement > Multiple Touchpoints for Engagement (graphic)

Personalization is at the Heart of the Engagement Economy

The Latest in Emerging Tech: Voice Search, Bots, App-Powered IFE, Wearables, AR and VR

Voice-Based Search

Bots

In-Flight Entertainment Companion Apps

Wearable Technology

Augmented Reality

Virtual Reality

Conclusion

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Customer expectations have never been higher. Travel providers need to stop comparing themselves to each other, and instead focus on the leading tech brands, as this is where customers draw their experiences and benchmarks.”

— James Millett, Director of Marketing, Digital & Brand, easyJet

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A snapshot of mobile usage We all know that mobile usage continues to soar among consumers. Despite the obvious, it can still be somewhat staggering to learn just how much our world now revolves around our mobile devices.

More than two-thirds of the world’s population now has a mobile phone, with more than half owning a smartphone, according to We Are Social and Hootsuite’s “Digital in 2017 Global Overview.” Meanwhile, Zenith’s Media Consumption Forecast found that people around the world spent an average of 86 minutes a day going online with their mobile phones, compared to 36 minutes on a desktop, in 2016. The amount of time people use their smartphones varies from country to country, but no matter where you are in the world, consumers are increasing the amount of time they spend on them, while spending less time on their desktops.

For example, the average American spent two hours and 25 minutes on their mobile phone, and 52 minutes on their desktop in 2016. In the UK, consumers spent about one hour and 46 minutes each on mobile and desktop per day, but time spent with mobile is soon expected to surpass desktop. Meanwhile, in China, consumers spent an average of 1 hour 18 minutes with their smartphones in 2016, with very little time spent on desktop.

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Our relationships with our smartphones are very intimate––our entire lives are inside of them. They’re the last thing many people see at night and the first thing they see in the morning. You have to understand travel in that context.”

— Steven Ratcliffe, VP Product, Travelport Digital

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87% of people always have their smartphone at their side, night and day

On average, people check their phones more than

150 times per day

Source: Mitek and Zogby Analytics ; Kleiner Perkins Caufield & Byers

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Mobile serves as a lifeline for travelersTravelers are picking up their mobile devices at every stage of the customer journey, whether they’re researching a trip, booking a trip, searching for activities during the trip, or sharing their experiences with their friends and family after the trip.

84% of travelers want to access information from anywhere while they travel.

63% sleep with the device beside their bed while on vacation.

60% of travelers agree they never truly ‘’unplug’’ on leisure trips.

60% of travelers say they would be unwilling to go on vacation without a mobile device.

35% claim to use their mobile device more on vacation than they do at home.

28% carry a rechargeable pack or spare battery.

Source: Expedia/Egencia Mobile Index, 2016

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Millennials, who are quickly becoming the largest and most valuable segment of global travelers, have long led the way in mobile adoption. Due to growing up in the digital age, they expect personalized, user-friendly experiences, crave authenticity, and are fueling the sharing economy, much more so than older audiences. They’re also driving travel spending, which is why grabbing the attention of millennials by not only meeting, but surpassing their technology-driven expectations now, is key to garnering the loyalty of travelers in the future.

The millennial factor

Millennials currently spend more than $200 billion annually on travel and are forecast to account for close to 50 percent of all business travel spending by 2020. (FutureCast, Boston Consulting Group)

Millennials are much more likely than adults in general to say they interact more with their smartphones than they do with their significant others, parents, friends, children, or co-workers. (Bank of America)

Millennials are more likely than average to shop for a flight or hotel on a smartphone and are more comfortable than the general population to plan travel on a smartphone. (Think with Google)

Millennials are more likely than travelers overall to be in favor of brands that use data about past travel purchases to deliver a more personalized travel experience. (American Express)

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Looking ahead to Gen Z

While there is no official birth year that defines members of Gen Z, most agree that members of this generation are born in the mid-90s and are “digital natives,” having grown up with smartphones, social networks, user-generated content, apps, and on-demand services. Like millennials, but perhaps on an even greater level, they demand experiences to be personalized and user-friendly, and expect authenticity and transparency.

Members of Gen Z are estimated to make up 40 percent of U.S. consumers and partake in 300 million international trips per year by 2020. (World Youth Student and Educational Travel Confederation)

Members of Gen Z have an attention span of only eight seconds. In 2000, the average for this age group was 12 seconds. (Microsoft Corp.)

Gen Zs watch twice as many videos on mobile as other generations and receive an average of 3,000+ text messages a month. (Upfront Analytics)

They’re more likely than older generations to have at least one of the mainstream messaging apps installed on their smartphone. (Skift)

Consumer interest in virtual reality is highest among Gen Z. (Greenlight VR)

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65%

59%

59%

53%

47%

44%

China

Brazil

Indonesia

Malaysia

India

Russia

Source: Tripadvisor’s TripBarometer Study, 2015

Why mobile matters in emerging marketsTravelers who have used their smartphone to plan or book travel are especially pronounced in emerging markets, likely due to their general dependence on smartphones as their main device for internet usage.

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The brands that are winning in this economy offer a seamless, mobile-first experience that clearly plot out the critical moments of the customer journey. They engage with the consumer, and provide highly relevant, personalized information and services they need at the right time.”

— Fergal Kelly, Chief Commercial Officer, Travelport Digital

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Mobile is playing a growing role in travel booking and transactions...

While desktop once reigned in the travel space, as people spend more time on their smartphones, the usage of mobile payment methods such as Apple Pay grows in popularity, and travel providers improve their mobile experiences, the digital travel audience is becoming increasingly mobile.

Source: Criteo, 2016

Airline and hotel mobile bookings now account for one in four online travel bookings worldwide.

Total mobile bookings grew 13% between Q2 2015 and Q2 2016.

Smartphone bookings alone were up 33% during that time period.

Smartphone bookings are most common in the hotel sector, where 20% of online bookings were made via smartphone in Q2 2016, followed by packages (18%) and air (12%).

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But engaging the customer is now top priority

Today, a travel provider’s mobile app isn’t necessarily analogous to their website. While the research and booking steps of the journey are of course an important part of the mobile experience, travel providers are realizing that their mobile apps can help deepen their relationships with their customers. Whether providing on-demand customer service assistance with a flight delay, a mobile coupon to a nearby restaurant, a weather forecast on arrival, or notifications about ground transportation options, travel providers are using their branded mobile apps to seamlessly integrate into the complete travel journey––not just when travelers are researching and booking trips.

Our clients were previously interested in replicating their websites on mobile devices, offering bookings, check-ins, and other transactional items. These offerings are obviously still available via mobile, but mobile can now illustrate what the brand can do for the customer, from scaling up customer service capabilities, to supporting travelers when things go wrong.”

— Steven Ratcliffe, VP Product, Travelport Digital

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Mobile opens up the entire journey for an interaction. It becomes about how we support, engage, and inspire the traveler throughout the journey from planning through to their return.”

— Niklas Andreen, SVP and Managing Director, Hospitality and

Digital, Travelport

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The shifting focus from transactions to engagement

ThenTransaction

Technology

You Find Us

Book

Downloads

NowEngagement

User Experience

We’ll Be There For You

Interact

Lifetime Value

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Mobile and the engagement economy

The growing dominance of mobile, combined with the fact that customers now expect brands to serve them authentic, personalized experiences, has fueled the “Engagement Economy.”

The brands that are leading the way in this new Engagement Economy are the ones adding value, removing friction, and offering customers seamless, automated, and relevant solutions. In order to succeed in this new world, the right information needs to be delivered at the right time to the right device.

In travel, this means that brands need to understand all touchpoints across the customer’s journey, including pre, during and post trip activity, while taking customer feedback, social inputs, location, context, and user profiles into account to personalize the experience.

In this new Engagement Economy, loyalty is hard to come by––especially in the travel space. However, the travel brands that work to truly understand their customer’s needs and then offer solutions throughout the various stages of their travel journey are the ones that will have the best chance of winning customer loyalty and be better equipped for the developments that emerging technologies will bring in the not-so-distant future.

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Travel management companies, leisure travel agencies, OTAs, and airlines can do more to go beyond the transactional side of things to build a relationship with the customer. The data is there to use. They should be representing their brand, supporting their travelers and creating a better experience throughout the journey.”

— Steven Ratcliffe, VP Product, Travelport Digital

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Bringing you from limited engagement

Pre-trip

Trip Research

Trip Booking

Information Desk

Information Desk

EmailSupport

At the airport At destination

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To multiple touchpoints for engagement

Pre-trip In- flight

Post- trip

48 hrs before

At the airport Destination

PROMPT Plan Your Trip

Search Best Fares & Books

Mobile Check-in

Proceed To Security

Mobile Itinerary Updates

Check Hotel Location

Personalized Trip / Feedback

PROMPTPurchase in-flight

Entertainment

Book Hotel

Organize Airport

Transport

Upgrade Your Seat Or Add

Luggage

Adjust Flight Return Date/

Times

Mobile Boarding

PROMPT Flight Cancelled

PROMPT Go To Baggage

Belt 10

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I see mobile as a set of booking tools, a set of service capabilities and increasingly, a set of messaging features where travelers can chat and interact with an agent.”

— Will Pinnell, Vice President, Digital & Product Strategy, BCD Travel

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Personalization is at the heart of the engagement economy

64% of travelers agree that when visiting a new/unfamiliar travel destination, they rely on websites or mobile apps to find activities, events, restaurants, etc., that align with their personal interests and preferences.

90% of travelers appreciate when a travel service company strives to customize their experience based on their preferences.

76% of travelers agree they would travel more if they received more personalized service during travel.

76% of travelers agree that the level of personalized customer service they receive while traveling can really make or break their trip.

Source: American Express, 2016

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easyJet’s Mobile Host, delivered using Travelport Digital technology, is one example of how a travel provider can use mobile to provide a seamless, user-friendly, and individualized travel experience that fills a personal need and enhances traveler engagement.

Initially available for passengers traveling through London’s Gatwick Airport, easyJet’s largest base, Mobile Host guides passengers through the airport departure and arrival processes. The app sends the appropriate alerts and updates via live data from Gatwick.

For example, when a passenger arrives at London Gatwick, he will receive an alert welcoming him to the airport. At the airport, Mobile Host will notify the passenger with flight information and a map to the bag drop and departure areas. Once in the departure area, the passenger will receive an alert with his gate number and map, as well as be provided with live flight updates. Once at the arrival location, the passenger will receive a push notification with baggage retrieval information.

Following launch at LGW, Mobile Host functionality (gate and baggage belt notifications) were rolled at at almost 40 airports. easyJet understands that airline travel can be a stressful process, and has equipped its passengers with tailored tools to alleviate that stress.

Case study: easyJet’s Mobile Host

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Many travel management companies are going beyond the traditional profile limits, such as preference for a window seat or an early morning flight. Instead, they’re building more sophisticated profile tools that take expressed and implied preferences into account to present travelers with the right options at the right time.”

— Will Pinnell, Vice President, Digital & Product Strategy, BCD Travel

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The Next Wave of Digital Disruption:Voice search, bots, wearables, in-flight entertainment companion apps,augmented reality and virtual reality

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Voice search, bots, in-flight entertainment companion apps, wearables, AR and VR

While mobile has given way to a new perspective on how travel providers can engage with their customers, emerging technologies such as voice-based search, bots, in-flight entertainment companion apps, wearables, augmented reality, and virtual reality are providing more ways for brands to think about how they can deepen those relationships. Tools such as voice-based search and bots have already begun to take off with users and brands alike, but others, such as augmented reality and virtual reality, are still in the early adoption stages in travel. Here, we look at a few examples of how travel brands are utilizing these newer technologies to enhance their customer experiences.

We’re at the point where the travel industry needs to move beyond operations, to instead grow to be truly excellent at meeting market and customer needs, especially in today’s economy where travelers have more control and choice. It isn’t a question of technical barriers––it’s a question of willingness to evolve.”

— Fergal Kelly, Chief Commercial Officer,

Travelport Digital

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Voice-based Search

Voice-based search is growing in popularity, as consumers increasingly use Alexa, Amazon’s voice-activated personal assistant on the Amazon Echo, Echo Dot, and Echo Show devices, along with Siri, Cortana, Google Assistant, and Bixby, to search for information. A June 2017 study of smartphone owners worldwide from J. Walter Thompson and Mindshare Futures found that nearly one in three respondents use voice-enabled technology on a weekly basis. In 2016, Google CEO Sundar Pichai announced that 20 percent of queries on its mobile app and on Android devices were conducted via voice search.

Voice-based search is being slowly introduced by a number of travel brands. easyJet now lets its passengers get the latest arrival and departure information through its skill for Amazon Alexa, while Expedia customers can now use Amazon’s Alexa to ask for flight updates and rent a car, and SkyScanner users who have its Alexa skill enabled can find out the cheapest flight options based on their chosen route and dates. Voice-based commands have not yet revolutionized the travel industry, but they are expected to become more common as artificial intelligence technologies advance.

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easyJet’s skill for Amazon Alexa––the first of any European airline––allows passengers to conveniently check flight information by using their voice to speak to an Amazon Echo and Amazon Echo Dot. Once Alexa users enable the easyJet skill, consumers can use voice commands to retrieve any existing reservations booked through easyJet, find details of their upcoming flight, and inquire about flight status details. easyJet’s integration with Amazon Alexa is likely to help customers have a more seamless experience to make their flight as stress-free as possible.

Case study: easyJet’s Skill for Amazon Alexa

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Bots

Today, bots primarily exist in apps, such as Facebook Messenger, WhatsApp, WeChat, and Skype. However, brands are increasingly designing their own branded bots to automate, speed up and create a shorter, more accurate loop around how customers engage with content and questions. A 2016 survey from customer experience company [24]7 found that one in four US internet users named online chat as their preferred method of contact with digital retailers.

The travel sector has already begun to make a push for using bots, which are powered by data and artificial intelligence, to predict simple, repetitive queries. For example, a chatbot may come in handy for travelers looking to find out the cost of checking a bag, find an airport terminal for a particular airline, or find out how long the security wait is at a specific airport. Travelers are also increasingly turning to branded bots in the travel space to find restaurant recommendations and local activities in a particular destination. Beyond offering convenience for travelers, there are advantages for travel providers themselves as well. Bots that are effectively engineered and have defined use cases can potentially handle customer service inquiries that were traditionally only able to be answered by customer service representatives, meaning that organizations can save on production costs and overhead.

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Vueling Airlines recently launched EVA, a smartphone virtual assistant bot, to help improve the flight experience of their customers. Travelers can interact with EVA to help them resolve queries and guide them throughout the air travel process, through steps such as check-in, boarding, or baggage reclaim. The tool also provides a timeline that stores all documentation related to a customer’s flight. According to Vueling, EVA will “send the passenger direct access to the most useful information regarding their flight, from a reminder the day before to last-minute flight management, data regarding hand luggage, boarding gate information, and even a welcome message when they arrive at their destination with information about what belt their bags are on for collection.”

Case study: EVA, Vueling’s Virtual Assistant

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In-flightEntertainmentCompanion apps

In-flight entertainment is one feature of the flying experience that passengers tend to look forward to once they’re en route. As new trends in technology emerge, airlines are slowly shifting the way they deliver their in-flight entertainment.

Nearly all passengers now fly with their iPhones, iPads, laptops, and Android devices in hand. This, combined with the growing presence of in-flight Wi-Fi, as well as the high costs that go into maintaining traditional seat-back monitors and the weight that they add up to, is driving some airlines to deliver their in-flight entertainment via branded apps that are able to be downloaded onto a passenger’s personal device, instead of through the typical seat-back monitor. Once a passenger has downloaded the app, they’re able to stream TV, movies, and other content at their leisure.

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Singapore Airlines is one such airline that has put a focus on its in-flight entertainment app experience. In 2016, the airline introduced their “Companion App,” an industry first via a Singapore Airlines, Panasonic and Travelport integration, available on iOS and Android smartphones and tablets. The app allows guests to manage and personalize their in-flight entertainment preferences on their own mobile device, not only on the aircraft, but before boarding as well. Passengers using the app can browse, save, and control playback of content, as well as view real-time flight information and the current flight path and location. Singapore Airlines’ focus on personalization, functionality, and greater control via the Companion App further enhances the flying experience and engagement of the airline’s passengers.

Case Study: Singapore Airlines’ Companion app

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Wearable Technology

Wearable devices such as Fitbits and Apple Watches haven’t fully caught on with the mainstream, but that doesn’t mean that this device category should be ruled out by travel providers––wearable technology in the travel sector goes way beyond the typical Fitbits and Apple Watches. Companies in the travel space have introduced a number of platforms in the wearable tech category, ranging from branded airline apps for smartwatches that provide notifications during departure, to easyJet’s “smart shoe technology”—sneakers that are powered by GPS data and communicate directions to users through vibrations––to Carnival’s Ocean Medallion technology, a digital concierge that streamlines and personalizes a passenger’s cruise experience. Wearables are increasingly being introduced to travelers for a range of applications, and it’s likely that this category will continue to innovate how providers can connect with their customers.

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Aircraft software company Arconics recently upgraded PaxApp, its passenger management app for cabin crew, to include smartwatch compatibility. Smartwatch-wearing flight attendants who are tapped into Arconics’ PaxApp will be able to more seamlessly manage and respond to passenger requests in a timely manner, helping to alleviate points of friction throughout the in-flight experience. Instead of having a passenger use the call button to get the attention of a flight attendant, passengers will be able to request service from their own personal devices via the aircraft Wi-Fi network. The attendant will then be notified through the PaxApp smartwatch app. Through improving the efficiency of these service requests with the help of wearables, there’s potential for increasing ancillary revenues, enhancing safety procedures, and overall, bettering the passenger’s in-flight experience.

Case study: Arconics’ smartwatch-enabled PaxApp

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Augmented Reality

Augmented reality works by blending digital content with the physical world and having the two interact in real time, to create an enhanced, immersive experience for the user. Because AR is still in such a nascent stage, it’s still too early to tell how travel brands will utilize it. However, research shows that travelers are open to it. A study conducted by research company Opinium for payments company Worldpay found that 84 percent of consumers globally said they would be interested in using AR or VR for travel experiences.

By overlaying virtual imagery and presenting additional content layers in a physical space through an augmented reality interface, travel brands have the opportunity to add value to information they offer travelers. Through AR, travelers can become more informed about their whereabouts and more efficiently interact with and navigate their environments––going beyond the push notifications and real-time messaging based elements we’re seeing today.

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London’s Gatwick Airport is undergoing a multi-year transformation program to update its travel experience. As part of this undertaking, the airport will enable “augmented reality wayfinding” within its two terminals––an indoor navigation system powered by more than 2,000 battery-operated beacons. Travelers who wander around the airport while using a map on their smartphone will receive a highly accurate blue dot mapping out their location. The augmented reality wayfinding tool will also help guide users to specific locations with arrows that appear on their smartphone screens. The beacon system will be integrated into Gatwick’s own apps, and will likely be incorporated into airlines’ apps and services to help notify and communicate with travelers via push notifications.

Case study: Gatwick Airport

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Virtual reality enables users to be transported to a totally separate, “self-contained” digital world beyond the immediate physical world they’re actually located in. VR is still in its early stages and has yet to come to fruition in the mainstream travel space, and in general, the size of the consumer market for VR is still small compared to other emerging technologies. Greenlight Insights forecasts global virtual reality revenues to reach $7.17 billion by the end of 2017. And according to research firm Super Data, the VR industry shipped 6.3 million devices in 2016.

Despite the slow uptake among general consumers, a range of agents, hotel chains and airlines are experimenting with the technology to inspire and persuade potential customers in the planning and booking stages. Travel providers tend to be most interested in VR’s ability to combine sight, sound, and touch into a single, interactive, storytelling medium and immerse users in new destinations and environments. Brands such as Lufthansa, Marriott, Thomas Cook, and Carnival Cruises have each developed early VR programs for their customers, but the real impact of VR on the travel industry has yet to come.

Virtual Reality

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Lufthansa was one of the first airlines to embrace consumer-facing VR technologies. Its Lufthansa VR app, available to iOS and Android users using a VR headset, offers 360-degree views of Lufthansa’s cabin classes, airplanes, and potential travel destinations such as San Francisco, New York, Miami, Tokyo, Hong Kong, and Beijing. While the app can be used anywhere, Lufthansa also began experimenting with VR technology at the departure gate. In February 2017, Lufthansa passengers departing from Frankfurt Airport were invited to put on a pair of VR goggles to experience 360-degree views of Lufthansa’s Premium Economy class and were given the option to upgrade for a special price. By allowing customers to try before buying at the point of sale, the airline was successful in enticing customers to upgrade and increase their ancillary spending.

Case study: Lufthansa VR app

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Conclusion

The dominance of mobile and the rise of emerging technologies are fueling the new Engagement Economy we now live and partake in.

The travel providers that are leading the way in this new Engagement Economy are the ones adding value, removing friction, and offering customers seamless, automated, and relevant solutions through every step of the end-to-end travel journey, no matter what channel or device their customer is using. Travel providers that work to deliver the right information at the right time to the right device, and emphasize personalization, convenience, and customer delight, will be the ones that truly deepen their relationships with their customers and succeed in this new world.

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About TravelportTravelport (NYSE:TVPT) operates a travel commerce platform providing distribution, technology, payment, digital and other solutions for the global travel and tourism industry. The company facilitates travel commerce by connecting the world’s leading travel providers with online and offline travel buyers in a proprietary business-to-business (B2B) travel marketplace and has a leadership position in airline merchandising, hotel content and rate distribution, mobile commerce and B2B payment solutions. Travelport also provides critical IT services to airlines, such as shopping, ticketing, departure control and other solutions. With net revenue of over $2.3 billion in 2016, Travelport is headquartered in Langley, UK, has approximately 4,000 staff and is represented in 180 countries and territories globally.

Our Travel Commerce Platform is leading the transformation of the travel industry. It allows us all to connect, interact, share, create and sell better experiences for today’s travellers and it creates new value for the future global travel economy. The platform lets us create more consumer-centric experiences like travel apps to stay in touch with the connected traveller, building brand loyalty before, during and after every trip.

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Carolyn KreminsPresident, [email protected]