TRAVEL LAW FORUM 2018 Panel III Shared economy platforms future trends Marios Trivizas, 16 March 2018 THL director, Deloitte Business Solutions SA

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1 TRAVEL LAW FORUM 2018 Panel III future trends Marios Trivizas, 16 March 2018 THL director, Deloitte Business Solutions SA This document is part of an oral presentation not a complete record of the discussion

2 Sharing goods and services among individuals is not a new concept. However technological advancement and the creation of online has enabled sharing to be made in real time and easier than ever. Although a major one, shared economy is not the only tech disruption we have identified in tourism Traditional players in the travel industry such as travel agents, tour operators, hotels, ground transportation providers, are seeing their business model challenged at its core. Digital have allowed individuals sharing their house or car easier than ever. New players are taking advantage of these technologies to build their own business model. Digital themselves are growing massively capturing a huge market share eroding the typical barrier to entry, which is asset ownership. Supporters of sharing economy argue that quality of rendered services is increased and/or prices reduced. New jobs are created and individuals are able to capture part of the incumbents market share allowing a better distribution of income. Critics on the other hand argue that the sharing economy provides unfair competition and raise issues in terms of taxes paid, safety, job security and compliance. Other technologies are also disrupting the traditional model used for travel: Internet of Things, Artificial intelligence, Voice technology, automation, even blockchain technology may change the future of travel. One element though remains constant at the core of the travel industry which companies should never neglect: human interaction. Marios Trivizas Strategy & Operations THL director Slide 2 of 17

3 Examples of sharing economy How many do you recognize? Slide 3 of 17

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5 Our very own, SNCF Slide 5 of 17

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7 Ben s journeys The future of mobility ( Slide 7 of 17

8 Tech trends From a Travel, Hospitality and Leisure (THL) industry Slide 8 of 17

9 Digital disruption in tourism: Artificial intelligence Artificial Intelligence Touted as the new electricity, artificial intelligence (AI) is the power behind many emerging technology from building smarter virtual assistants to techniques around big data. Travel websites are learning to deliver more personalized results for travel planners. Chat are helping suppliers provide better service. Machine learning is helping travel players make sense of volumes of unstructured data connected to their businesses including photos, video, social network data, and natural language. Near future: AI still has a long way to go. More may happen behind the scenes in 2018 compared to what travelers may actually experience. Travel providers and technology players continue to develop the technology and work out the links. THL implementations: Vehicle routing Travel disruption management Customer 360 view Pattern recognition Travel concierge Fraud management Slide 9 of 17

10 Digital disruption in tourism: Internet of Things Internet of Things Imagine a connected airline seat that measures a traveler s anxiety, body temperature, and hydration level to provide better service, or a hotel room that automatically adjusts temperature to personal preference. Connected sensors, devices, and machines create a new form of dialogue with the physical world, enabling brands to up the experience. While IoT brings huge implications for airlines, connected hotel rooms outfitted with smart home technology will continue to provide some of the biggest improvements to the travel experience in Near future: While dropping quickly, cost is still a big challenge, as are issues around cybersecurity. Rising regulatory climates around cybersecurity and IoT may present risks for IoT early adopters. THINGS PROCESS THL implementations: PEOPLE Internet of Things (IoT) The Internet of Everything combines things, processes and people with relevant data ANALYTICS Predictive maintenance In room tech control (Kubic in ATH) Smart cities/harbors Increased productivity Slide 10 of 17

11 Digital disruption in tourism: Voice technology Voice technology A close cousin of AI, voice interactions are already replacing screen time as adoption of digital home assistants rises. Traveler searchshop-buy behaviors may shift as consumers rely more on conversational exchanges to plan travel and interact with travel providers during their trips was the first year a major hotel chain installed AI assistants in every room. Voice still has a lot of growing up to do. Travel is complicated and natural language processing isn t easy. But heavy investment may power huge leaps forward in Near future: Voice is likely to disrupt business travel distribution before leisure. Travel s road warriors know what they want, and don t need much information to book. It s a good market for early iterations of voice-based travel booking. THL implementations: In room voice assistants Virtual travel agents Virtual tour guides New shopping experience Slide 11 of 17

12 Digital disruption in tourism: Automation Automation A mix of software and hardware that digitize tasks and workflows based on preprogrammed rules, automation essentially takes humans out of the equation. Robotics and process automation have several front and back-of-house use cases across the travel sectors but ground transportation is poised to feel the greatest impact. Ten million driverless cars are estimated to be on the road by 2020, culminating in one of the greatest changes to the ground transportation industry in recent history. Near future: Workforce automation is a rising issue in an industry that employs roughly 1 in 10 in the global workforce. There is opportunity for travel brands to approach automation from a reinvestment of talent, rather than one of replacement. THL implementations: Driverless transportation service across destinations Automated hotel processes Media time Slide 12 of 17

13 Digital disruption in tourism: Blockchain Blockchain The tech behind cryptocurrency is becoming more than a buzzword in travel. Big players and startups alike are looking to blockchain for solutions to industry pain points, including streamlining online distribution and reimagined loyalty programs. The technology also has implications around travel payments, settlement, and fraud. While heavily impacting some industries such as banking, there is still some lingering speculation about the degree of disruption blockchain will spur in travel. Travelledger: aspiring to become bsp for non-air travel services based on Etherium blockchain tech Near future: Blockchain sits in the middle of being overhyped and revolutionary. The technology may not put travel brands out of business, but may force some to adjust their business models. THL implementations: Transaction Blockchain enabled loyalty management Distributed cloud storage and archival services Smart contracts Slide 13 of 17

14 Human Element Technology advancements are truly incredible but the human element will still make or break the customers experience in tourism Technologies alone will not give brands the tolls they need to succeed. In fact for travel suppliers in particular, too much focus on technology has the potential to create cold and robotic experiences and environments. Top 3 reasons for a positive stay Friendly employees Clean Rooms Good Value 44% of guests 41% 26% At its heart, travel is still very much a people-topeople experience. Technology must be leveraged to produce elevated, authentic experiences without losing sight of the human connection. Guests believe hotel teams are Are friendly and attentive Proactively communicate Satisfaction 80% 60% The future of the travel experience must be a seamless blend of talent and technology, where machines are tasked to do more of the machine work, freeing and empowering, humans to provide better service experiences, and more meaningful connections. Offer personalized experiences 65% Despite all technological advancements, human engagement remains critical for hotels. The future will not be either people or technology it will be people + technology enabled by insights. Slide 14 of 17

15 Rate of change What appears to be happening Technology change Gap in business performance potential Business productivity Time Slide 15 of 17

16 Rate of change What is really happening Technology Individuals Businesses Public policy 1970s Today Slide 16 of 17

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