But perhaps one of the biggest transformations that technology has ushered in is the era of information. Not just in the travel and hospitality industry, but across all sectors. At the click of a button, customers have access to choices that were previously unavailable, allowing them to make informed decisions.
According to a Euromonitor report, customers visit at least 14 different sites when doing their pre-travel research. Vacationers view different hotels, price range and amenities before settling on their most preferred hotel. This has catapulted travel review websites such as TripAdvisor as a trusted source of information for vacation seekers.
In the same breadth, booking and paying has been simplified cutting down time taken previously on face to face meetings, phone calls and consultations. Now, OTAs like Jumia Travel, allow travelers to book via email, app, Whatsapp or social media. Flexible mobile payments like mobile money, card and cash on check in has brought down the barriers.
New frontiers
Meanwhile, as the industry contends on how to respond to the dynamic tech development, other forms of challenges are cropping up in the form of new business models.
Take Airbnb for instance. The tech startup has turned the hospitality industry on its head by connecting private homes to travelers on short term stays through its platform. Airbnb has grown from serving 47,000 guests globally in 2010 to 17 million in 2015. Within a relatively short time, the tech startup has become the biggest hospitality chain in terms of rooms, yet it does not own a single property. 2.2 million
Within a relatively short time, the tech startup has become the biggest hospitality chain in terms of rooms, yet it does not own a single property. 2.2 million home-owners in 34,000 cities have listed on the site that is visited by 90 million users.
This kind of disruption was unfathomable 7 years ago. And while the hospitality establishment, as we know it, is unlikely to go under anytime soon. Forward thinking hotels are already adopting strategies that will make them relevant to an increasingly young demographic.
Some hotels are creating boutique offshoots to cater for the needs of millennials who are looking to enrich their experience with facilities like high-speed (free) Wi-Fi and functional yet creative communal spaces. For example, Radisson Red (the hotel’s millennial-focused hotel brand) has an app that allows guests to order drinks from the bar and check in online.
For example, Radisson Red (the hotel’s millennial-focused hotel brand) has an app that allows guests to order drinks from the bar and check in online.
But for most players in the travel and hospitality industry, the competition is not a zero sum game. The market is big enough for to accommodate different needs based on incomes and age.
“People less price sensitive and looking for a completely hands-off experience would request for the help of a tour operator to plan everything for them. People who are more price sensitive and who want to choose among a variety of options will use online platforms to book their holiday,” sums up Verdier.
