innovation in travel sector

• Discovery Platform
• Innovation Scouting
• Startup Scouting
• Technology Scouting
• Tech Supplier Scouting
• Startup Program
• Trend Intelligence
• Business Intelligence
• All Industries
• Industry 4.0
• Manufacturing
• Case Studies
• Research & Development
• Corporate Strategy
• Corporate Innovation
• Open Innovation
• New Business Development
• Product Development
• Agriculture
• Construction
• Sustainability
• All Startups
• Circularity
• All Innovation
• Business Trends
• Emerging Tech
• Innovation Intelligence
• New Companies
• Scouting Trends
• Startup Programs
• Supplier Scouting
• Tech Scouting
• Top AI Tools
• Trend Tracking
• All Reports [PDF]
• Circular Economy
• Engineering
• Oil & Gas

Share this:

• Click to share on Facebook (Opens in new window)
• Click to share on Twitter (Opens in new window)
• Click to share on LinkedIn (Opens in new window)

Top 9 Travel Trends & Innovations in 2024

How are the latest trends in the travel industry reshaping trip planning and enhancing tourist experiences in 2024? Explore our in-depth industry research on the top 9 travel trends based on our analysis of 3500+ companies worldwide. These trends include AI, immersive tourism, IoT, contactless travel & more!

Technological advancements in the travel industry meet the growing demand for personalized experiences, safety, and sustainability. Post the COVID-19 pandemic, emerging travel trends mark a shift towards contactless travel through digital payments, self-check-ins, and more. Additionally, artificial intelligence (AI), the Internet of Things (IoT), and blockchain are automating various hospitality and travel-related operations.

For instance, smart hotels make use of internet-connected devices to remotely control rooms. Further, businesses offer virtual tours by adopting extended reality (XR) technologies like virtual reality (VR) and augmented reality (AR). Travel companies also leverage data analytics to personalize marketing. At the same time, traveler assisting solutions like chatbots and voice technology aid them in booking accommodation and optimizing journeys. These travel trends improve the overall profitability of the tourism industry and enable it to make operations more sustainable and safe.

This article was published in July 2022 and updated in February 2024.

Innovation Map outlines the Top 9 Travel Trends & 18 Promising Startups

For this in-depth research on the Top 9 Trends & Startups, we analyzed a sample of 18 global startups and scaleups. The result of this research is data-driven innovation intelligence that improves strategic decision-making by giving you an overview of emerging technologies & startups in the travel industry. These insights are derived by working with our Big Data & Artificial Intelligence-powered StartUs Insights Discovery Platform , covering 2 500 000+ startups & scaleups globally. As the world’s largest resource for data on emerging companies, the SaaS platform enables you to identify relevant startups, emerging technologies & future industry trends quickly & exhaustively.

In the Innovation Map below, you get an overview of the Top 9 Travel Trends & Innovations that impact travel & tourism companies worldwide. Moreover, the Travel Innovation Map reveals 3 500+ hand-picked startups, all working on emerging technologies that advance their field.

Top 9 Travel Trends

• Artificial Intelligence
• Immersive Tourism
• Internet of Things
• Contactless Travel
• Big Data & Analytics
• Post-Pandemic Tourism
• Tour Premiumization

Click to download

Tree Map reveals the Impact of the Top 9 Travel Trends

Based on the Travel Innovation Map, the Tree Map below illustrates the impact of the Top 9 Travel Industry Trends in 2024. Startups and scaleups are enabling contactless travel using technologies like biometrics, radio-frequency identification (RFID), and near-field communication (NFC). This is due to increasing health and hygiene concerns post the pandemic. The use of AI in tourism ensures hassle-free trip planning while AR and VR allow tourists to virtually visit various locations and excursions. IoT increases visibility into tourism industry operations and allows passengers to track their luggage more efficiently. Further, the demand for personalized and luxurious travel is rising. Several startups enable recreational space travel as well as offer sustainable travel options to passengers.

Global Startup Heat Map covers 3 635 Travel Startups & Scaleups

The Global Startup Heat Map below highlights the global distribution of the 3 635 exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals that the US, Europe, and India see the most activity.

Below, you get to meet 18 out of these 3 635 promising startups & scaleups as well as the solutions they develop. These 18 startups are hand-picked based on criteria such as founding year, location, funding raised, and more. Depending on your specific needs, your top picks might look entirely different.

Interested in exploring all 3500+ travel startups & scaleups?

Top 9 Travel Trends in 2024

1. artificial intelligence.

Hotels employ intelligent chatbots, powered by AI, to provide quick and personalized responses to traveler inquiries. These chatbots simplify the booking process and gather customer reviews, aiding potential travelers in making informed decisions. Moreover, AI-based robots enhance the customer experience by automating hotel disinfection and delivering room service.

At airports, these robots guide travelers and assist with luggage handling. Facial recognition technology, driven by AI, expedites identity verification at airports, enhancing security and offering a swift alternative to traditional methods. Startups are developing AI-powered trip planning solutions, optimizing journeys, and personalizing travel experiences.

Travel Professor develops a Travel Chatbot

UK-based startup Travel Professor offers an AI-enabled chatbot for travelers. The startup’s chat widget software monitors multiple flight deals and notifies users when their preferences match. It also provides travel destination recommendations and flight price alerts. This allows travelers to book economical flights and have a budget-friendly tourism experience.

Pneuma Travel facilitates Travel Planning

US startup Pneuma Travel develops a voice-assisted digital agent, Sarah , to streamline the process of travel planning. This assistant, powered by AI, excels in arranging flight and accommodation bookings and assists travelers in discovering a variety of activities. Sarah , available round the clock, provides continuous support for all travel-related inquiries.

Moreover, Sarah customizes travel options according to individual preferences and budgetary constraints. The agent further enhances the travel experience by providing insights into local attractions in unfamiliar cities. Importantly, Sarah enables real-time modifications to travel plans, in compliance with specific airline policies, thereby minimizing waiting times for users.

2. Immersive Tourism

Immersive tourism caters to the growing demand for meaningful experiences among travelers, leveraging AR, VR, and mixed reality (MR). VR simulates original locations through a computer-generated environment, allowing tourists to virtually explore destinations. It provides travelers with a comprehensive 360-degree tour of points of interest.

AR enhances the travel experience with interactive elements such as navigation maps and ads. Travel companies employ AR and VR-based gamification to heighten tourist attractions. Moreover, these technologies enable hotels and resorts to present amenities and rooms in an engaging, interactive manner.

VR Travel Expo offers VR-based Travel Plans

US startup VR Travel Expo develops a VR travel application to transform the way people research and book travel. The application enables users to plan their vacations more efficiently. It provides an engaging platform for users to explore and expand their knowledge of the world. Moreover, it employs 3D geospatial technology that creates real-time digital twins of the world. This further enhances the travel planning experience.

AR Tour makes AR Glasses

Italian startup AR Tour offers AR-powered tours. The startup’s AR glasses superimpose reconstructed images of archaeological ruins to show how the site originally was. Its tour informs the tourists about the site’s history and significance via an audio-visual package. Moreover, the startup designs lightweight AR glasses to prevent motion sickness among tourists, improving convenience.

3. Internet of Things

IoT generates ample data that tourism companies leverage to personalize services in their subsequent visits. Hotels use IoT sensors to enable smart rooms that automate room lighting, temperature, and ambiance control, enhancing guest comfort. These sensors adjust appliances in vacant rooms, conserving energy and reducing the building’s carbon footprint.

Startups harness IoT to deliver location-specific information to customers, including real-time luggage tracking via IoT tags, minimizing lost items. Airlines also incorporate IoT-based solutions into seats, monitoring passenger temperature and heart rate for proactive health management.

Altitude enables Smart Hotels

New Zealand-based startup Altitude creates an IoT-based hotel software and hardware to develop smart hotels. The startup makes self-service kiosks to automate reservations, room up-gradation, payments, as well as check-in and check-out. Its hotel management platform further enables contactless engagement with guests. Additionally, Altitude’s mobile keys allow guests to open doors using mobile phones, providing convenience and saving time for travelers.

Smart Tour provides Smart Itineraries

Brazilian startup Smart Tour offers smart itineraries using IoT and quick response (QR) codes. The startup recommends travel routes and destinations based on the user’s preference in real-time. This facilitates a seamless experience for travelers. Besides, the user-generated data enables tourism managers to better understand consumer behavior and indulge in proximity marketing. The startup also offers a contact tracing solution to monitor COVID-19 infected travelers and ensure public safety.

4. Contactless Travel

Travelers benefit from contactless recognition technologies like retina scanning, which replace traditional travel documents, speeding up passenger identification and reducing airport queues. QR codes offered by travel companies allow tourists to access relevant information on their mobile devices, enhancing engagement.

Hotels have introduced contactless self-check-ins, enabling visitors to arrange services before arrival. Additionally, contactless payment modes are available in hotels and restaurants for swift and secure transactions. Moreover, wearable devices are transforming the travel experience by providing real-time notifications and touch-free access to services and information.

Loxe designs Smart Hotel Keys

US-based startup Loxe makes smart mobile keys for hotels. The startup’s smartphone app replaces key cards with contactless mobile keys that allow users to unlock doors using smartphones. It also reduces operational costs incurred in the manufacturing of conventional keys or plastic cards. Moreover, the startup designs a Bluetooth retrofit module that converts normal door locks into mobile-ready door locks. This allows hotel owners to easily convert their existing locks into smart ones without additional expenses while improving guest safety and convenience.

Avendi provides Contactless Payment

Singaporean startup Avendi offers contactless and cashless payments for travelers. The startup allows tourists to accumulate expenses throughout their trip and pay at the end of the journey. Avendi’s app utilizes QR codes to add all the billed expenses and shown through its dashboard. The user settles the tab amount in the preferred currency, preventing the inconvenience of cash withdrawal or credit card payments.

5. Big Data & Analytics

Big data empowers travel companies with customer trends for strategic marketing. Analyzing traveler behavior, they offer tailored recommendations for hotel bookings, cab hires, flight reservations, and ticket purchases.

Predicting future demand is another advantage of big data and analytics, helping hotels and airlines identify peak periods to optimize revenue. Advanced analysis of transactional data aids in detecting cyber fraud, and safeguarding sensitive customer information such as credit card details and biometric data.

CheckandPack creates a Travel Platform

Dutch startup CheckandPack offers a big data travel platform. It runs marketing campaigns to gather traveler data and understand tourism trends. Based on these insights, the platform enables businesses to approach travelers with a customized appeal. It also provides travelers with holiday planning.

3Victors provides Travel Data Analytics

US-based startup 3Victors offers travel data analytics. The startup’s product, PriceEye Suite , proactively monitors the prices of numerous airlines to provide insights into competitor prices. It creates a dashboard to display travelers’ location of interest, allowing travel airlines to better manage their revenue and pricing strategy.

6. Post-Pandemic Tourism

Post-pandemic tourism focuses on safe, sustainable, and flexible travel options, responding to evolving traveler preferences and health guidelines. Enhanced health and safety protocols, including regular sanitization and contactless services, become standard in airlines and hotels, ensuring traveler confidence.

Destinations and operators emphasize outdoor and less crowded experiences, catering to a heightened demand for nature-based and wellness travel. Flexible booking policies and trip insurance gain prominence, offering peace of mind amid uncertainties. Sustainable travel gains traction, with tourists and businesses prioritizing environmental impact and community well-being.

GOPASS Global enables Pre-travel Risk Management

Singaporean startup GOPASS Global provides a travel risk analytics platform against COVID-19. It analyzes the biosecurity risk elements involved in a trip, such as border restrictions, quarantine requirements, airport type, and airline transit points or seating in real-time. This allows travelers to assess risk factors and plan their trips accordingly.

Moreover, the startup creates world maps displaying information regarding COVID-prone areas, testing areas, and vaccine coverage. This provides travelers with a preview of the current situation, allowing them to ensure safety during business and leisure travel.

Workcations enables Work from Anywhere

Indian startup Workcations provides properties at tourist destinations for remote-working individuals. It offers amenities like internet connectivity, food, and a quiet ambiance, allowing tourists to work in a peaceful environment without hindrance. This increases employee productivity, motivation, and retention.

7. Tour Premiumization

Hyper-personalization in travel experiences is on the rise, with tourists eager to immerse themselves in diverse cultures. Luxury travelers enjoy tailored experiences and intuitive services through tour premiumization. Health and wellness packages offered by travel startups help tourists unwind.

These retreats enhance health and offer detoxifying food options. Space tourism is another exciting development, offering leisure or research trips to space. Lastly, travel startups are fostering customer loyalty and building strong relationships through membership or subscription models.

STOKE provides Space Tour

US-based startup STOKE facilitates space travel using everyday-operable rockets. The startup’s rockets are reusable and deliver satellites to any desired orbit. This enables on-demand access to space, paving way for space tours for exploration, recreation, and research. The startup also emphasizes the economical and rapid development of its hardware for feasible spacecraft launches, advancing space tourism.

Origin offers Travel Personalization

Dutch startup Origin provides premium travel personalization to tourists. The startup utilizes machine learning and travel curators to plan creative vacations. It also arranges flights and accommodation for travelers. Further, the startup measures the carbon output of itineraries and offers sustainable tourism options.

8. Ecotourism

Traveling responsibly minimizes tourism’s environmental impact and supports local communities’ well-being. Ecotourists strive to reduce their carbon footprint during their journeys. Startups contribute by developing sustainable transport, ecolodges, and solar-powered resorts.

Airline passengers have the option to offset carbon emissions during flight bookings. Local tourism stimulates small businesses economically and creates job opportunities. It also emphasizes minimum littering, which lowers pollution and the time spent on cleanups.

Jet-Set Offset simplifies Flight Carbon Offset

US-based startup Jet-Set Offset creates a carbon-offsetting platform for air travel. The startup partners with non-profit organizations working against climate change and connects them with travelers. Each time travelers book flight tickets via the startup’s platform, Jet-Set Offset contributes a certain amount per mile for their journey to environmental organizations. This way, the passenger’s journey promotes mileage-based donations to offset carbon emissions.

The Green Stamp facilitates Ethical Wildlife Tour

Dutch startup The Green Stamp provides a platform to book ethical wildlife tours. It curates tours based on the tourists’ inclinations toward certain locations or wildlife. Exploration of these projects allows travelers to indirectly contribute to their cause as these wildlife projects donate to the welfare of local communities and the environment.

9. Blockchain

Blockchain provides the travel industry with operational transparency and security. Traceable payments, particularly for international travel, are a key application, that fosters trust among parties involved in transactions.

Automation and enforcement of agreements in travel insurance and supplier contracts are achieved through smart contracts. This strengthens reliability and cuts administrative costs. Travel firms establish customer loyalty programs where points are exchanged for cryptocurrency. Lastly, blockchain increases data storage security, reducing the risk of information leaks.

Upswing facilitates Guest Profiling

Indian startup Upswing creates AURA , a blockchain-powered platform for guest profiling. It provides a holistic view of guests, their preferences, and purchase patterns. The platform associates a score with each guest and suggests improvements in their service. This facilitates hotels to provide a personalized experience to their guests and, in turn, increase sales.

UIQ Travel develops a Solo Traveling App

US-based startup UIQ Travel develops a blockchain-based app to connect solo travelers. It discovers people with shared interests and suggests tours or attractions. Such hyper-personalized recommendations assist in experience discovery and also increase traveler engagement.

Discover all Travel Trends, Technologies & Startups

Tourism, although severely impacted by the pandemic, now continues to rapidly grow across the globe. Post-pandemic trends indicate an increasing emphasis on hygiene and safety during travel. The industry is witnessing the widespread adoption of disruptive technologies like AI, XR, IoT, and blockchain. The travel industry utilizes big data to understand traveler trends for targeted marketing. The transition to ecotourism is accelerating as businesses integrate zero-emission transit and carbon offset programs to reduce their carbon footprint.

The Travel Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation and startup scouting process. Among others, personalization, decarbonization, and travel safety will transform the sector as we know it today. Identifying new opportunities and emerging technologies to implement into your business goes a long way in gaining a competitive advantage. Get in touch to easily and exhaustively scout startups, technologies & trends that matter to you!

Your Name Business Email Company

Get our free newsletter on technology and startups.

Protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Discover our Free Travel Report

Book a call today!

Mobility 22 pages report

Railway 22 pages report, cleantech 19 pages report.

Leverage our unparalleled data advantage to quickly and easily find hidden gems among 4.7M+ startups, scaleups. Access the world's most comprehensive innovation intelligence and stay ahead with AI-powered precision.

Get started

Your Name Business Email Company How can we support you?   (optional)

Business Email

Protected by reCAPTCHA and the Google  Privacy Policy  and  Terms of Service  apply.

11 Travel Technology Trends Emerging in the Tourism Industry in 2024

With widely available vaccines and lower numbers of Covid-19 cases, travel is slowly returning to its pre-pandemic levels , although travel risks and disruptions are still present. Extreme weather conditions, political instabilities, and hardware malfunctions. With the emergence of artificial intelligence and mobile devices, customers expect a much greater level of personalization than ever before. These are the main reasons why the travel industry is consistently striving to find new and innovative ways of integrating breakthrough technologies into its operations.

What is travel technology?

Impact of technology on the travel industry, why is technology important in the tourism and travel industry, key statistics and forecasts for travel technology in 2024, what are the latest technology trends used in the travel industry, 1. advanced travel search engines, 2. ai dynamic pricing engines, 3. dynamic scheduling systems.

• 4. Internet of Things
• 5. Augmented Reality and Virtual Reality

6. Contactless payments

• 7. AI chatbots

8. Big Data

9. 5g and fast wi-fi networks, 10. recognition technology, 11. cybersecurity practices, future of travel technology, building a travel application or extending your development team.

🚀 We're here to assist you in accelerating and scaling your business. Send us your inquiry, and we'll schedule a free estimation call .

Travel technology is an umbrella term to describe the multitude of different uses of modern technology such as artificial intelligence, augmented reality and mobile technology within the fields of tourism, travel, and hospitality industry.

Technology solutions can be deployed at virtually every point of travel in one form or another, significantly influencing the overall customer experience.

Do you remember buying an airline ticket from a real human being?

Neither do we.

We all got used to the presence of modern technological advancements in the travel industry.

There are many more ways in which modern digital technology influences and improves the travel industry.

The ultimate motivation behind implementing these technologies is pretty straightforward. It as always boils down to increasing profits and expanding business, which in turn has a positive impact on customer experience.

First and foremost, it leads to improved efficiency and decreased operating costs.

In fact, it is a win-win situation for online travel agencies, airlines, as well as the travelers.

For companies, digital transformation in travel industry means better margins and healthier cash flows. For customers, in turn, it means many more attractive tourist destinations and lower prices.

[Read also: What’s the Future of Digital Transformation and Its Trends? An Expert’s Point of View ]

These days, almost everyone has a smartphone or other mobile device, granting access to an immense choice of online services.

It is thus crucial for travel companies to allow their customers to book their trips, check-in for their flights, and find information about their destinations online.

Even though we are taking all of these modern utilities for granted, they are still a key factor for improving user experience in the travel industry. As a result, they have to be improved and optimized consistently.

Latest travel technology trends refer to the innovations and digital solutions that are transforming the travel and tourism industry. Some of the trends include online travel booking, virtual tourism, mobile travel apps, chatbots and artificial intelligence. Here are some of the latest quantitative statistics and forecasts on travel technology trends:

• Generative AI tools like ChatGPT will become more popular for trip planning, as half of travelers surveyed are interested in using them to find the perfect stay.
• Destination “dupes” and “set-jetting” will continue to be in vogue as travelers seek affordable alternatives to crowded or expensive places, or follow the locations featured in their favorite shows or movies¹.
• Global travel app revenues will grow by 17 percent in 2024, reaching nearly $400 million.
• The share of digital ad spending in the travel and leisure industry will reach 14.5 percent in the United States and 13.9 percent in the United Kingdom in 2024.
• The world’s leading online travel agencies (OTAs) will spend $2.3 billion on Google advertising in 2024.
• The global travel and tourism market will shift from 66 percent offline sales channels to 54 percent online sales channels from 2017 to 2027.
• The global travel technology market will grow by approximately 45 percent from 2020 to 2026, reaching $12.5 billion.
• The Asia-Pacific region’s recovery will be evident as travelers flock to destinations such as Taiwan, Thailand, and Australia, which have successfully contained the pandemic and reopened their borders.
• Travelers will need to be more creative and flexible in their destination choices, as travel restrictions and regulations may change frequently due to the ongoing health crisis.
• Travelers will opt for carry-on only luggage with a twist: they will use smart luggage that can track their location, charge their devices, and weigh themselves.
• Travelers will rely more on their travel advisors, who can offer more than just flights and hotels, but also personalized experiences, insider tips, and access to exclusive benefits.

Sources: Statista , Travel + Leisure , Smart Flyer .

There are plenty of different technology trends that are shaping the future of the travel industry.

Below, we’ve listed 11 of the most important travel industry trends.

Let’s compare here travel search engines to the Google search engine.

On the surface it is a pretty simple concept. A user introduce certain keywords of their interest and the search engine matches the most relevant results.

But what if you are looking for a hotel room in a specific location with certain room facilities? A simple Google search won’t be able to compute so many details.

This is where metasearch engines enter.

Metasearch engines are the tools that send search queries to many sources and organize results in a comprehensive list.

The main objective of such sites is to aggregate results in a unified way, so that the client can access the maximum number of available options on the market. It allows users to have a reliable source of objective information and to compare offers with one another.

Results presented by metasearch engines are obtained with less amount of exertion on the end user side.

Instead of searching one single search engine to find a specific website or browsing through different services, the right amount of data can be obtained by a metasearch engine.

It definitely improves the user experience. Ans save their precious time.

In the tourism industry, metasearch engines are used to search through and compare travel agencies’ offers to provide clients with as many suitable options as possible.

Nowadays, these services have grown quite robust. Many provide smart price alerts or tempting last-minute deals.

When developing a metasearch engine for an online travel agency , lodging reservation service, hotel booking engine , or a hotel inventory management software key factors are performance and scalability .

A team of Stratoflow Java developers when tasked with improving the travel search engine for a major hotel bookings aggregator decided to extract the availability search into a separate cache layer based on an in-memory data grid (IMDG) platform. It allowed for a major decrease in SQL database usage, as well as improved efficiency.

Interestingly, our client saw almost an immediate commercial effect right after the initial implementation.

Higher overall throughput of the travel search engine allowed the existing customer base to query the platform more frequently, generating higher revenues in the process.

[Read also: Introduction to a hotel channel manager ]

Airlines such as Ryanair or Southwest are known for their extremely low price model.

You can hop anytime you want on a plane from Warsaw to London for less than 30 dollars.

You may have been wondering – how are airlenes able to break even, and run a successful business model with such low prices?

The answer is artificial intelligence.

These days, the pricing of airline tickets is completely automated and run by advanced systems that aim to fill a plane with passengers at the most optimal prices.

These systems take into consideration different types of clients. Those can be either business travelers who value convenience and comfort the most or leisure travelers who are more cost-conscious regardless of long layovers.

All of these factors are summed up by the pricing system. The goal is to fill as many seats on each plane as possible. But at the same time to avoid situations of complete tickets’ unavailability for potential clients in a very complex balancing act.

Airlines’ pricing systems have to process an immense amount of customer data as well as travel trends about local destinations.

It is worth mentioning that during the COVID-19 pandemic pricing systems of many popular airlines were pretty severely disrupted. This led to a rather peculiar situation when we could book flights from Europe to the US for less than 200 dollars.

How was that possible? The dynamic pricing engines weren’t prepared for such an exceptional situation.

Nevertheless, as pandemic restrictions loosen, and airlines worldwide resume their normal routes and operations, dynamic pricing systems continue to play a vital role in their business model .

[Read also: Benefits of Digital Transformation for Your Business ]

Airlines are characterized by their large involved capital and incredibly slim average profit margins hovering around 5% (ignoring COVID-19 disruptions).

What does it mean for travel technology trends?

It’s simple. For an airline to make money, it has to adapt fast and consistently search for profitable routing opportunities.

This task has to be handled by automatic scheduling systems .

Aside from the cost, the major factor for customers determining which flight they will choose is the overall travel time.

Airlines, therefore, put an enormous effort into assembling the most optimal schedule that they can offer in the shortest travel time possible.

Modern dynamic scheduling systems have to take into account these three factors pointed by Nawal Taneja :

• Scheduling optimization system – An automated solution created by a team of experienced developers that process operational data and identify the set of possible routing and scheduling changes. These have to be both profitable and operationally feasible.Such a system works based on all the possible arrangements of feasible schedule changes. Then it sorts them by their profitability.
• Access to reliable market data – A dynamic scheduling system uses only reliable and accurate data on the routes popularity and its profitability.Considering a fairly short time horizon of flight scheduling operation, the best source for booking and revenue data is an internal Revenue Management system .
• Knowledge about potential operational constraints – Many factors dictate whether a certain route is feasible operationally or not.These include maintenance costs at airports, gate availability, and miscellaneous aircraft-specific constraints.Only understanding all of them can ensure that a dynamic scheduling system can return positive results.

In terms of profitability, it is estimated that dynamic scheduling can result in a 1-3% increase in revenue , depending on its utilization rate.

It constitutes a substantial amount when it comes to the airline industry.

Stratoflow developers have a great deal of experience in this particular field.

They were tasked by a global flight information company to improve their existing system.

Stratoflow proposed a replacement of major calculation logic with an open-source, high-performance framework that dramatically lowered TCO when compared with the existing code.

4. Internet of Things (IoT)

Another emerging technology that is slowly being adopted by the tourism industry is the Internet of Things (IoT)

This concept refers to the network of physical devices —“things”—that are equipped with various sensors in order to connect and exchange data with other systems within the network over the internet.

Depending on the use case, these “things” can range from ordinary household devices to sophisticated industrial machinery.

When it comes to its role in the tourism industry, we’ve already seen some practical implementations beginning to appear.

Some airports, using IoT devices, tag passengers’ bags to alert them of their luggage’s current whereabouts and send them a notification when it arrives at the carousel.

Hotels are also starting to leverage some IoT-enabled sensors and voice control devices to adjust things like air conditioning. Using an in-room tablet, hotel guests can seamlessly control the temperature, music, lighting, and curtains, changing the atmosphere of the room and personalizing their experience to a whole new level.

5. Augmented Reality (AR) and Virtual Reality (VR)

Virtual reality (VR) has recently once again come into the spotlight when Facebook rebranded itself and announced Metaverse. It’s a conceptual virtual universe that will be a future replacement for well-established social networks.

These visions seem exciting and a little eerie at times. But can virtual and augmented reality also influence the tourism industry in the future? As it turns out, the answer is “yes”.

Virtual Reality allows people to explore new places without leaving the comfort of their homes.

Virtual tours will enable people to have a glimpse of a certain exotic place before their visit in person. What’s more, popular travel platforms like Booking.com can set up virtual hotel room previews in order to better manage customer expectations.

Contactless payment methods take pride of place among recent tourism technology trends.

As the pandemic forced people to shy away from physical coins and banknotes, contactless payment options like GooglePay and Apple Pay have gained a lot of popularity.

When using them, the user’s device with a payment app communicates with the reader using RFID technology.

To see how it works in practice let’s take a look at the contactless payment method designed by The Walt Disney Company.

Disney offers Disney World guests custom wristbands, known as MagicBands. Visitors can link their credit card to their MagicBand to make purchases with a simple and effortless swipe of a wrist.

From a business standpoint, this solution offers Disney an unmatched opportunity to track customer behavior in order to optimize its operations even further. It is a trend that is undoubtedly gaining traction in various sectors of the travel industry.

7. AI Integration and AI chatbots

AI is expected to be increasingly used in the hotel and travel industry, creating more seamless travel experiences and supporting new innovations to meet higher guest expectations.

Recently a story has surfaced that, allegedly, an advanced AI chatbot developed by Google has become self-aware.

AI chatbot technology has gone a long way in the last couple of years. It can also play a significant role in the development of the travel and tourism industry.

AI Chatbots stimulates human conversation, mostly using text interactions on various websites and services. Their main objective is to alleviate some congestion in call centers by proving at least basic help for customers 24/7.

When it comes to their usage in the travel and tourism industry, AirAsia is a good example of the use of a successful chatbot. Their advanced chatbot, AVA is able to do a multitude of things from helping travelers to choose seats and book flights to answering more difficult questions about current COVID-19 restrictions.

Data is a company’s most valuable asset.

This is also one of the main reasons why companies in the travel and hospitality industry are investing more and more funds into Big Data solutions.

Put simply, Big Data is a term that refers to large and unstructured data sets obtained from various data sources. These data sets are so voluminous that traditional data processing would have a hard time processing them into useful information.

Modern hotels and travel agents are using big data solutions to more effectively track customer behavior and preferences. This information is later used to improve the guest experience.

Big data measure precisely business performance.

Thanks to receiving data from previously untapped sources, the system allow for better yield management and demand prognosis.

[Read also: Fintech Trends That Shape Financial Future ]

As travel tech trends grow more robust with every passing year, connectivity develops at the same rapid pace.

A couple of years ago, 5G made its debut in some of the largest cities around the world, offering up to 20 times faster download speeds than before.

Even though that might not be such a big deal for an ordinary person, the connection between smart devices can now be more efficient than ever allowing more advanced IoT networks.

We have also seen an emergence of other breakthrough communication technologies, such as the Starlink internet.

Thanks to thousands of satellites in low earth orbit, people in virtually every corner of the world can enjoy internet speeds in excess of 100mbit/s and low latency unmatched by any other satellite internet provider.

A poor WiFi or Internet service in a hotel room can lead to bad online reviews for the hospitality and travel industry. With Starlink, even hotels in the most remote places can have a stable and fast internet connection.

[Read also: What is a GDS? ]

Facial recognition is the software that classifies a single face according to its gender, age, emotion, or other characteristics in an attempt to confirm a person’s identity.

It is currently one of the most powerful surveillance tools ever made.

While many people are happy to use it to effortlessly unlock their phones, companies and governments are beginning to use it to a much greater extent.

Facial recognition devices are beginning to appear in various airports across the world as an advanced security measure and potential deterrence.

According to a recent report from the Department of Homeland Security, “U.S. Customs and Border Protection (CBP) plans to dramatically expand its Biometric Exit program to cover 97 percent of outbound air passengers within four years.”

To verify accounts on virtually every major travel and tourism offer aggregator, you would have to provide a photo of your ID card and other sensitive personal data.

It’s natural to feel a bit uneasy to share so much personal information, regardless of the service’s squeaky clean reputation and impressive market share.

Tourism companies and travel businesses understand that. That’s why they dedicate a substantial amount of resources to developing reliable and safe cybersecurity practices.

As virtual reality and augmented reality technologies are becoming more and more advanced, some people speculate that they will negatively influence the tourism industry, but we beg to differ.

We predict that future tech advancements will push the travel industry towards better travel experiences and even more personalized experience.

Travel technology trends – summary

The travel and tourism industry is the one where proper interactions with the consumer are essential. As new technological breakthroughs enter the market, they are letting corporations understand their customers a bit better, and provide them with improved services and experiences.

Related Posts

• How To Build Travel Meta Search Engine: A Step-By-Step Guide
• Best Travel Management Solutions You Must Know
• Yield Management: What It Is and The Best Strategies
• Hotel Inventory Management 101: An Introduction
• How to Choose the Best Travel Agency Software to Maximize Your Revenue

We are Stratoflow, a custom travel software development company . We firmly believe that software craftsmanship, collaboration and effective communication is key in delivering complex software projects. This allows us to build advanced high-performance Java applications capable of processing vast amounts of data in a short time. We also provide our clients with an option to outsource and hire Java developers to extend their teams with experienced professionals. As a result, our Java software development services contribute to our clients’ business growth. We specialize in building bespoke travel solutions like fast search engines, metasearch engines, booking engine services or channel manager integrations.

Testimonials

They have a very good company culture of their own, which gives them a real edge compared to other providers.

Leading UK system integrator

They're very skilled technically and are also able to see the bigger picture.

Managing Partner

Scalable SaaS for healthcare IoT built on Salesforce platform

They've been consistently able to deliver work on time and within budget.

High performance SaaS for financial insitutions

We are seriously impressed by the quality and broader picture of anything they do for us.

Gold trading platform

National Geographic content straight to your inbox—sign up for our popular newsletters here

5 pandemic tech innovations that will change travel forever

These digital innovations will make your next trip safer and more efficient. But will they invade your privacy?

In the 20 months since the COVID-19 pandemic began, technological innovations have gone from futuristic to familiar. These days it’s hard to be out in the world without encountering QR-coded menus or supplying digital vaccine passports.

As the tourism industry—which logged a billion fewer international arrivals in 2020 than 2019—sputters back to life, masks may begin to disappear, but many pandemic-era tech tools will continue to factor into your trips.

“Consumers will come to expect technologies that make them more confident about travel,” says Steve Shur, the president of the Travel Technology Association. “Some of these changes are here to stay.”

In fact, a 2021 Pew Research survey of 915 policy leaders, science researchers, and other experts predicts that, by 2025, our daily lives could be even more influenced by algorithms, remote work, and what some call “tele-everything.”  

While novel interventions such as real-time translation devices and facial recognition passport control may make travel safer and more efficient, there are downsides, including concerns about privacy , data security, and biased technology. Here are some of the innovations that travelers will continue to see and use.

Virtual and augmented reality

When the pandemic shut down travel, museums and tourist destinations turned to augmented reality (AR) and virtual reality (VR) to create online exhibits and experiences. While some of these experiences are best seen with a VR headset, most can be enjoyed with just a computer or smartphone.

The Xplore Petra app launched in June 2020, allowing users to “visit” Jordan ’s most iconic archaeological site by projecting a scaled-down version of the ruins. Lights over Lapland, an Arctic travel company, launched a VR experience to show off the Northern Lights using VR headsets or computer screens.

( How virtual reality might change your next trip, even after COVID-19. )

Post-pandemic, VR and AR may enhance actual trips by adding experiences such as a simulated climb up the Matterhorn at Lucerne’s Swiss Museum of Transport . The Hunt Museum in Limerick, Ireland, has a VR attraction in which visitors immerse themselves in “ The Garden of Earthly Delights ,” a 500-year-old painting by Hieronymus Bosch.

The Museum of Natural History in Paris has an AR exhibit that brings visitors face to face with extinct animals in digital form. The National Museum of Singapore has an installation called “Story of the Forest,” where sightseers explore a virtual landscape comprised of almost 70 nature drawings from the museum collection. The Smithsonian Institution’s National Museum of Natural History , in Washington, D.C., has an app that uses AR to show what some of its animal skeletons would look like with skin and muscle over the bones, offering a new view of a collection dating back to the 1880s.

“VR is not going to replace travel and tourism. It is just going to enhance tourism,” says Anu Pillai, who runs the Digital Center of Excellence at Wipro, a technology company.

Crowd control

To help enforce social distancing, cities, airports, and museums tested or rolled out crowd-control technology including Singapore’s roaming, vaguely terrifying robots that announce people are too close together and signs indicating how large crowds are at airport gates . As throngs of travelers return to popular destinations, similar methods and devices may be implemented to prevent overtourism.

In Italy during the pandemic, Venice began tracking visitors using cameras designed to catch criminals. Post-pandemic, it plans to harness them to keep tourist numbers at manageable levels, perhaps in concert with the mayor’s proposal to add electronic gates at major entry points (cruise ship docks, train stations) that can be closed if the city gets overcrowded.

(These tech changes could make your next flight safer.)

“We know minute by minute how many people are passing and where they are going,” Simone Venturini, Venice’s top tourism official, told the New York Times . “We have total control of the city.”

Amsterdam , which also struggles with overtourism, tracks how visitors use Amsterdam’s City Card, a flat-fee pass to museums and public transport. Beach Check UK launched this summer with real-time information on how busy dozens of beaches are along the English coast, guiding travelers away from packed areas.

“Technology can be used to collect data in order to both make better decisions and communicate those decisions,” says Christopher Imbsen, director of sustainability at World Travel & Tourism Council.

UV-C cleaning

Hospitals have used UV-C light to disinfect and kill viruses for more than two decades. Now, indoor public spaces including airports, gyms, and movie theaters are adding UV-C to halt viral spread.

“UV-C is having its heyday right now,” says Peter Veloz, CEO of UltraViolet Devices, which makes UV disinfecting technology.

UV-C has germicidal properties that combat COVID-19 and other nasties, both in the air or on surfaces. Depending on the location, new UV-C installations go into HVACs, on escalator handrails, or through airports and planes via light-equipped robots that disinfect as they go.

If installed and operated correctly, a UV-C system can kill all sorts of bacteria and germs. Even seasonal flu bugs might be zapped before they spread. “COVID-19 could come and go, but what won't disappear are normal pathogens,” Veloz says.

QR codes at restaurants

In the early days of the pandemic, when transmission of the COVID-19 wasn’t yet well understood, restaurants hurried to provide QR codes. The little black boxes of pixelated dots and dashes could be scanned with a smart phone to bring up a menu, let you order from it, and then allow you to pay your bill, all with limited virus-spreading interactions with servers.

While earlier fears that people could catch the virus via menus and other surfaces have been disproven, the codes have proven convenient and will probably stick around, especially with late-pandemic worker shortages.

Such convenience might mean a trade off with privacy, however, since the little codes can potentially gather a large amount of information from users. Some QR programs just take a food order, but others mine data like a patron’s dining history, age, and gender. The restaurant could use that info to send them coupons or event invitations—or sell it to third parties.

“It’s an example of companies exploiting COVID-19 to extend tracking,” says Jay Stanley, a senior policy analyst at the ACLU. “Moving everything to mobile opens people to new ways of tracking and control.”

Travelers should know that QR codes can be hacked; you might scan one, place a dinner order, and wind up compromising your credit card instead. Stanley recommends treating QR codes just as you do links in unknown emails. Either use your phone to look up the restaurant’s menu on the internet or install a protective app like Kaspersky QR Scanner , which will give users a warning if the code isn’t safe.

Contact-tracing tools

Public health groups used contact tracing methods to identify and track down people who were potentially exposed to infectious diseases such as Zika and HIV, and offer counseling, screening, and treatment. These traditional tools were usually based on phone calls to ask individuals about who they were in contact with and to continue researching exposure. The pandemic pushed officials to scale up such efforts and implement new, higher-tech ones to track viral spread and provide information.  

For instance, Apple and Google added contact-tracing functions to new smartphone software, allowing users to opt in and get alerts if they come into close contact with an infected person.

(If you must travel during a pandemic, here’s how to protect your health.)

“There’s been a strong recognition about the value of and the important role of contact tracing for infectious disease prevention and control,” says Elizabeth Ruebush, a senior analyst for infectious disease and immunization policy at the Association of State and Territorial Health Officials. “But we’ve never seen it implemented at the scale of COVID-19.”

Other technologies, such as automated texts, viral heat maps and even CCTV with facial recognition could help track other infectious illnesses or make us ready for the next pandemic.

Even with fancy new apps, however, phone calls and personal outreach will still be at the center of public health. “These tools are aimed to enhance, but not replace, traditional contact tracing,” Ruebush says.

COVID-19 has sped up our adoption of technology . The downside is that this may make it even harder to turn off smartphones while on vacation. Then again, wanderlust is now stronger than ever—and getting lost in the moment still hasn’t been harnessed by a digital code.

Jackie Snow is a Washington, D.C.-based writer specializing in travel and technology. Follow her on Instagram .

Related Topics

• INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS
• SCIENCE AND TECHNOLOGY

You May Also Like

Digital mapmaking innovations are revolutionizing travel

New tools offer peace of mind for pandemic travel

Free bonus issue.

The uncanny valley, explained: Why you might find AI creepy

How is your location data really tracked? You’d be surprised.

It’s harder than ever to identify a manipulated photo. Here’s where to start.

Jet lag doesn’t have to ruin your trip. Here’s what you can do

What life in medieval Europe was really like

• History & Culture
• Environment
• Paid Content

History & Culture

• History Magazine
• Mind, Body, Wonder
• Terms of Use
• Privacy Policy
• Your US State Privacy Rights
• Children's Online Privacy Policy
• Interest-Based Ads
• About Nielsen Measurement
• Do Not Sell or Share My Personal Information
• Nat Geo Home
• Attend a Live Event
• Book a Trip
• Inspire Your Kids
• Shop Nat Geo
• Visit the D.C. Museum
• Learn About Our Impact
• Support Our Mission
• Advertise With Us
• Customer Service
• Renew Subscription
• Manage Your Subscription
• Work at Nat Geo
• Sign Up for Our Newsletters
• Contribute to Protect the Planet

Copyright © 1996-2015 National Geographic Society Copyright © 2015-2024 National Geographic Partners, LLC. All rights reserved

6 Travel Innovations We’ve Covered: Did They Live Up to the Promise?

Rashaad Jorden , Skift

March 16th, 2023 at 8:00 AM EDT

While some of the tech advances Skift featured over the years may not have lived up to expectations yet, others are poised to play an even bigger role in the travel industry in years to come. Check out this list.

Rashaad Jorden

Skift has covered throughout the years dozens of innovations poised to fundamentally alter travel — several of which we featured in a newsletter regularly published in 2017 and 2018 named the Skift Corporate Travel Innovation Report.

Although the report primarily focused on business travel’s changing landscape as well as its future, it included trends and tech advances affecting the travel industry as whole — including airlines, hotels and online travel agencies.

So have those innovations truly been groundbreaking? We take a look at six of them we showcased in the report and examine through our coverage how they’ve impacted the travel industry.

Virtual Reality

Skift repeatedly addressed the impact of virtual reality would have in the travel industry in the Innovation Report, noting that the technology had finally gone mainstream in 2017 . The use of virtual reality was already prevalent in the events industry. Meet L.A. , part of the Los Angeles Tourism & Convention Board, had launched the  Virtual Discovery L.A. in 2016, which enabled conference planners to explore event venues throughout the city in virtual reality .

However, virtual reality’s expected boom had been slowed by factors such as costly headsets and lack of content . Even Meta, the parent company of Facebook and Instagram, found that many of its employees didn’t have virtual reality headsets, making them reluctant to use its Horizon Workrooms app that allows users represented by avatars to gather around a conference table.

But some travel companies have increased their investment in virtual reality coming out of the pandemic, including KLM . The flag carrier of the Netherlands began pilot training in November 2020 using virtual reality platforms it built in-house. Meanwhile, New Orleans utilized virtual reality to film an ad from its latest campaign, which Walter Leger III, president and CEO of New Orleans & Company, was part of its strategy to showcase the innovation taking place in the city .

Skift touched on the increased use of biometrics at airports in September 2017 , which business travelers believed could help speed up lines at airports despite concerns about the security of information and its potential use .

Although those issues haven’t died down , biometrics are poised to become even more prominent at airports, with the pandemic helping drive interest in technology that would reduce touchpoints for travelers. Travel tech firm Pangiam bought biometric facial recognition system  VeriScan  with the belief the platform could reshape travel coming out of the pandemic. Meanwhile, Star Alliance, the world’s largest airline alliance, is calling on half of its 26 members to use biometrics technology by 2025.

Skift listed the use of airport biometrics as a travel tech trend worth watching in 2023 .

Enhanced Baggage Tracking

Skift highlighted American Airlines efforts in July 2017 to improve its baggage tracking infrastructure through the launch of a set of notifications on its mobile app. The technology known as Customer Baggage Notification alerts travelers through the app when checked baggage arrived early or late to the carousel, giving travelers a better idea about the location of their belongings.

Other carriers have enabled travelers to track their luggage’s delivery via their apps. Airlines including Air France, Delta and Qantas have powered the process with radio frequency identification baggage labeling tags, which transmit radio signals with a bag’s identifying number to sensors at airports that track the luggage.

Skift envisioned that robots would automate more procedures in the travel industry by 2025 in a 2021 Megatrend. Chinese hotel groups Huazhu and Homeinns had already invested in ExcelLand, a manufacturer that makes the robots they used to deliver food by room service.

And more hotel companies are poised to deploy robots. Relay Robotics , a company that provides delivery robots to hotel groups including Marriott, Hilton and Radisson, raised $10 million in Series A financing in spring 2022. Eight California hotels owned by Seaview Investors have already hired robot ambassadors that deliver toiletries and dental necessities to guests in five minutes or less.

However, researchers from the Durham University Business School urged hotels not to promote themselves as robot hotels due to the possibility it could create unrealistic expectations. A study they conducted found that while 60 percent of customers experienced joy when dealing with robots in a customer service role, 28 said they felt fear.

Artificial Intelligence

Skift noted in January 2017 that artificial intelligence is turning into a big travel buzzword . Its impact on travel on travel has continued to grow, even potentially reshaping how consumers book hotels . Some call centers turning to an artificial intelligence program to solve consumer complaints about the large number of flight disruptions last year.

Meanwhile, the use of generative AI — a form of technology that includes the creation of images, audio, video and text — is projected to surge, and a growing number of online travel agencies are exploring how to use it. Skift examined how generative AI is poised to impact travel marketing in a 2023 Megatrend. Separately, author David Mattin, an expert on artificial intelligence, said in a special edition of the Skift Podcast that travel brands can use generative AI to create compelling travel marketing copy for TV commercials and Twitter campaigns in seconds.

Singapore-based online travel agency Trip.com has already added a generative AI chatbot to its platform . However, Expedia Group said it would take a cautious approach to using ChatGPT , the generative AI chatbot by OpenAI, while Booking.com is doing likewise regarding its future plans for generative AI.

Mobile Travel Bookings

Skift projected that mobile travel bookings would represent 40 percent of online sales in 2017 , possibly even overtaking traditional computer bookings in the U.S. Then-Booking.com CEO Gillian Tans had said the previous year that mobile bookings on the site would cross the 50 percent threshold by 2018 .

Although mobile bookings have grown among members of Gen X in addition to many millennials — including in Latin America — embracing mobile devices as their primary method for using the Internet, Skift Research found that mobile travel bookings hadn’t yet surpassed desktop bookings in 2022 .

Augmented Reality

Skift projected in October 2017 that augmented reality , which combines GPS and smartphone camera technology to project images and data into the real world, could fundamentally alter the events industry. Although it may not have lived up to its hype , some travel brands have already incorporated augmented reality in their operations. Dubai Tourism has created augmented reality lenses that enables users to photograph themselves against the city’s landmarks, including Burj Khalifa. In addition, Dutch carrier KLM started using augmented reality to help facilitate training for employees coming out of the pandemic.

And augmented reality could help destinations increase visitation at major historical landmarks. Singapore Tourism Board CEO Keith Tan said at the recent ITB Berlin conference that it aims to use the technology to increase its “wow factor ,” including showing travelers the events of World War II at one Singaporean fort.

Skift AI Travel Newsletter

AI coverage across travel sectors that’s focused on separating trendy moves from good ideas – in your inbox every Friday.

Have a confidential tip for Skift? Get in touch

Tags: artificial intelligence , augmented reality , biometrics , generative ai , hotels , luggage , mobile bookings , robots , virtual reality

Photo credit: The use of virtual reality has expanded in the travel industry in recent years. Bradley Hook / Pexels

Related Travel Research

Travel innovation and technology trends 2024.

Free for Open Access Subscribers

Please note: when purchasing the Travel Innovation and Technology Trends 2024 series, you will have immediate access to this Summary report, as well as the six in-depth, trend articles publishing over the coming five months.

If 2023 was the year that generative artificial intelligence (AI) grabbed all the headlines, 2024 will be the year that companies start operationalizing it. Seemingly overnight, the technology has gone from mysterious, sci-fi fodder to a ubiquitous tool, quietly working in the background. And while generative AI seems to dominate tech-related headlines, there are many other things happening in travel and technology that will influence travel businesses operations in the coming years.

Each year, Phocuswright's expert analysts identify the technology and innovation trends that will influence travel significantly in the coming year and beyond. In 2024, we’re giving generative AI the attention it deserves. But we’re also bubbling up underappreciated technologies, preparing for a future of digital identities and currencies, and keeping the focus on sustainability.

Purchase this report for complete access to the full articles that will be published from now through June 2024, covering the following six key travel technology trends: 

• At a Crossroads: Underappreciated Tech in Travel
• Who Owns the Customer Profile? How About the Customer?!
• How Cutting Emissions Cuts Into Corporate Travel
• From Buzzword to Bottom Line: Keeping Pace With Gen AI in Travel
• Autonomous Agents in Travel Are Coming
• Get Ready to Accept the Digital Euro, Rupee and Yuan

And for additional insight,  check out this free Phocuswright webinar  that previewed each of these hot topics. Please stay tuned for each full trend analysis, and for details on a July 2024 webinar in which we’ll discuss these trends live.

What is Open Access

An Open Access subscription provides company-wide access to the whole library of Phocuswright’s travel research and data visualization.

Curious? Contact our team to learn more:

What is open access+.

With Open Access+, your company gets access to Phocuswright's full travel research library and data visualization PLUS Special Project deliverables.

Provide your information and we'll contact you:

Curious contact our team to learn more:.

Perspective

Traveling between worlds in the metaverse

5-MINUTE READ

• The next wave of technology disruption driving the future is here, bringing new technologies and worlds of experiences.
• Over the next decade, ambitious travel players will shape new physical and digital realities and transform their businesses. 
• Travel companies need to prepare now to understand how these emerging technologies are critical for future growth and competitiveness. 
• How can travel companies successfully navigate uncertainty about the future, with blurred boundaries between humans and machines? 

Welcome to the “Metaverse Continuum”

The metaverse is evolving the next generation of the internet technologies and creating boundaryless opportunities. Think of it as a continuum, spanning the spectrum of digitally enhanced worlds, realities and business models.   

Expect to see it touch all facets of every business, from consumer to worker and across the enterprise; from reality to virtual and back; from 2D to 3D; and from cloud and AI to extended reality, blockchain, digital twins, edge technologies and beyond. In 2022, this way of life seems surreal, but the Metaverse Continuum is on its way and companies need to prepare now.  

Next-generation traveler experience

The Metaverse Continuum enables people to immerse themselves within a universal shared experience that connects our real world to a fully virtual one—and everything in between.   

The Metaverse Continuum is already transforming travel companies in five ways, changing...

• How travel companies interact with customers 
• How work is done 
• Which services travel companies offer 
• How they make and distribute them 
• How they operate their organizations 

Travel Technology Vision 2022 trends

In the Travel Technology Vision 2022 report, we explore how today’s technology innovations are becoming the building blocks of our collective future. These four trends investigate the entire continuum, from the virtual to the physical, across humans and machines alike, identifying where ambitious travel companies can find rich opportunities by uprooting themselves from today and planting themselves firmly in the future. 

WebMe: The internet is being reimagined as metaverse, and Web3 efforts transform the underpinning and operation of the virtual world.

The Programmable World: Control, customization and automation are being immersed into the world around us, making the physical as programmable as the digital.

The Unreal: As AI-generated data and synthetic content convincingly mimic what is “real,” authenticity is the new north star.

Computing the Impossible: A new generation of computers is solving some of the world’s most intractable problems leading to one of the biggest technological disruptions of our time.

RELATED: Why the metaverse (really) matters for travel. 

Now is the time to shape the future of travel technology

We are at a crossroads. Not only because there are new technologies to master, but rather that competition in the next decade will require much more than technical skills and innovative strength. Travel companies will need a truly competitive vision. A clear vision of what the future worlds will be like and a vision of where the travel business needs to go to thrive. Technology is pointing us in the right direction. Everything else is in your hands.  

The metaverse continuum is waiting for you. 

RELATED: Future borders 2030: From vision to reality

​​Related insights​

• Building a data-driven travel company
• The Guide: Travel industry magazine
• Tech Vision 2022: Meet me in the Metaverse

Sergiy Nevstruyev

Managing Director – Enterprise Architecture & Digital Transformation Lead

Anshul Gupta

Managing Director – Accenture Technology

Luis Aparicio Garcia

Associate Director – Accenture Strategy & Consulting, Travel

5 innovations transforming the travel industry

.chakra .wef-1c7l3mo{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;}.chakra .wef-1c7l3mo:hover,.chakra .wef-1c7l3mo[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-1c7l3mo:focus,.chakra .wef-1c7l3mo[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);} Tiffany Misrahi

.chakra .wef-9dduvl{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-9dduvl{font-size:1.125rem;}} Explore and monitor how .chakra .wef-15eoq1r{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;color:#F7DB5E;}@media screen and (min-width:56.5rem){.chakra .wef-15eoq1r{font-size:1.125rem;}} Supply Chain and Transport is affecting economies, industries and global issues

.chakra .wef-1nk5u5d{margin-top:16px;margin-bottom:16px;line-height:1.388;color:#2846F8;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-1nk5u5d{font-size:1.125rem;}} Get involved with our crowdsourced digital platform to deliver impact at scale

Stay up to date:, supply chain and transport.

The 21 st century consumer is very different from previous generations. We are tech savvy and not only do we expect service quality, we want an experience to go with it. Given our unlimited access to information, we know what the gold standard is, and more importantly, we are open to sharing our experiences on social media and review platforms.

Although the travel industry is booming, with over 1.1 billion international global travelers in 2014, I haven’t met one person who has not complained about an experience they have had while traveling. So how can the industry make the experience more pain-free? There are obviously factors that are beyond the control of the industry, such as the weather, but like most other industries, there is room for innovation.

While many people are aware of some of the interesting innovations that are changing the way we experience travel, many are still under the radar:

• To share or not to share: The most obvious change in the last few years in hospitality is the sharing economy. The face of this movement is Airbnb, which is now valued at $25 billion, but there are many other companies that are playing the game, such as Couchsurfing, Feastly, Knok, Vayable or even Wimdu. While there are some regulatory issues around this new consumer model, it is providing accommodation to travelers who may not otherwise be able to afford it.
• Keep track of your bag: My biggest concern when I travel is losing my suitcase, and being left stranded for a business meeting whilst in sweatpants. But new innovations are changing this. Why, if we have smartphones, can’t we have smart suitcases? Well now we can. Different players are looking at different solutions. While airports like Las Vegas’ McCarran Terminal 3 are starting to attach a radio frequency identification chip to suitcases to ensure they don’t get lost, Bluesmart has created a carry on suitcase which can be controlled and tracked using an app on your phone.
• Let’s stay connected: We live in a hyperconnected world, where in-flight Wi-Fi was bound to happen – and it did. Although a number of airlines offer internet to passengers, it is not a perfect science and it is most definitely not free. But we have a choice which we didn’t have a few years ago. Airlines are also adding power outlets so that passengers can charge their devices throughout their flights and not arrive at their destination with a “dead” phone.
• Do it yourself: Today, I barely talk to anyone when I go through the airport. With the available technology, I am able to book my flight online, have my boarding pass on my phone, check in with machines, go through automated clearance gates and even validate my boarding pass to board the plane. These innovations have made navigating airports much more efficient – if you are tech savvy. Still, given that security is front of our minds, gate and security agents are present to make sure travelers can have a seamless experience.
• Guiding your experience: Guidebooks like Lonely Planet used to be the traveler’s bible – but have now become irrelevant in a world of websites and crowdsourcing sites which provide us with advice and reviews on hotels, tours and restaurants. Traditional online Travel Agencies like Expedia and Priceline have provided alternatives. But new players are on the market too: Peek puts a tour guide in your phone, while HotelTonight is a last minute hotel booking tool. Other players are also thinking differently about the issue, such as AnyRoad, which helps us connect to incredible guides and avoid travel agencies.

While these innovations are now the new norm, ten years ago, they would have been unheard of. As we look forward into the next decade, what innovations might continue to transform the way we travel?

The Annual Meeting of the New Champions 2015 is taking place in Dalian, China, from 9-11 September.

Have you read? The future of Chinese travel How to attract the tourists of tomorrow

Author: Tiffany Misrahi, Community Lead, Travel & Tourism Industries , World Economic Forum

Image: A mobile phone is connected to Wi-Fi network on board of the Norwegian Airways Boening 737-800 at Berlin Schoenefeld Airport April 2, 2015. REUTERS/Pawel Kopczynski

Share this:

• Share on Facebook (Opens in new window)
• Click to share on Twitter (Opens in new window)
• Click to share on LinkedIn (Opens in new window)
• Click to share on WhatsApp (Opens in new window)

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

The Agenda .chakra .wef-n7bacu{margin-top:16px;margin-bottom:16px;line-height:1.388;font-weight:400;} Weekly

A weekly update of the most important issues driving the global agenda

.chakra .wef-1dtnjt5{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-flex-wrap:wrap;-ms-flex-wrap:wrap;flex-wrap:wrap;} More on Supply Chain and Transport .chakra .wef-17xejub{-webkit-flex:1;-ms-flex:1;flex:1;justify-self:stretch;-webkit-align-self:stretch;-ms-flex-item-align:stretch;align-self:stretch;} .chakra .wef-nr1rr4{display:-webkit-inline-box;display:-webkit-inline-flex;display:-ms-inline-flexbox;display:inline-flex;white-space:normal;vertical-align:middle;text-transform:uppercase;font-size:0.75rem;border-radius:0.25rem;font-weight:700;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;line-height:1.2;-webkit-letter-spacing:1.25px;-moz-letter-spacing:1.25px;-ms-letter-spacing:1.25px;letter-spacing:1.25px;background:none;padding:0px;color:#B3B3B3;-webkit-box-decoration-break:clone;box-decoration-break:clone;-webkit-box-decoration-break:clone;}@media screen and (min-width:37.5rem){.chakra .wef-nr1rr4{font-size:0.875rem;}}@media screen and (min-width:56.5rem){.chakra .wef-nr1rr4{font-size:1rem;}} See all

EU governments back human rights and environmental due diligence law for supply chains

Kimberley Botwright and Spencer Feingold

March 27, 2024

What is 'slow steaming' and why is the Red Sea crisis affecting shipping emissions?

Andrea Willige

March 19, 2024

4 ways geopolitical tensions are increasing carbon emissions

Laia Barbarà and Claudia Galea

March 12, 2024

Charting the course: How the shipping industry is adapting to tensions in the Red Sea

Zera Zheng, Rico van Leuken and Lars Karlsson

February 23, 2024

How Japan is creating a sustainable and resilient future for the logistics industry

Naoko Tochibayashi and Naoko Kutty

February 20, 2024

These are the world's most vital waterways for global trade

Spencer Feingold and Andrea Willige

February 15, 2024

Innovation That Matters

• Library Access

Sign in to view member only content

Username or Email Address

Remember Me

Innovation Snapshot

Top 7 Travel and Tourism Innovations From 2020

Travel has been limited this year, but the creative travel innovations continue. check out our top seven from 2020..

For much of 2020, the COVID-19 pandemic forbade us from visiting other households, let alone travelling to a different location or holidaying abroad. This had a devastating effect on the travel and tourism industry, with its global revenue dropping by a massive 42.1 per cent from 2019.

The impact of this has been manifold, touching communities who rely on tourism for survival, as well as multiple travel companies who have had to shut down. However, the upside of this has been the positive environment impact of travellers and tourists staying put.

Here, we have collected seven of our most creative travel and tourism innovations of the past year. Some seek to help those communities who rely on tourism by providing virtual experiences; some aim to make travelling in the future COVID-proof; and some hope to maintain the positive environmental impact of this year, by helping travel to become more sustainable.

1. A VIRTUAL TOUR OF THE FAROE ISLANDS WITH REMOTE-CONTROLLED GUIDES

Going a bit stir crazy from the lockdown? Missing your travel fix? The Faroe Islands, a Denmark territory, have come up with a way to allow people around the world to go on a self-guided tour of the archipelago. Camera-wearing locals respond to sight-seeing commands from people at home, allowing virtual tourists to control their own route.

Virtual visitors control their tour guide using a free app and have two minutes of control over the guide, who also provides a commentary. After their two minutes are up it is someone else’s turn, although virtual tourists can rejoin the queue for another two minutes any number of times. The tours are available for an hour twice each day, at 2 pm and 5 pm (BST). Guides may be in kayaks, on horseback or hiking around the mountain villages.

The remote North Atlantic islands depend heavily on tourism to augment traditional trades such as fishing and sheep-herding, and this year the Faroe Islands had planned to ramp up tourism with two new 200-room hotels in the capital, Tórshavn. Although the coronavirus pandemic has ended that ambition for this year, the Faroese hope the virtual tourism app will encourage people to come to visit in the future.

Read more about the virtual tour.

2. HOTEL BOOKING PLATFORM OFFSETS 100 PER CENT OF CARBON EMISSIONS FROM HOTEL STAYS

The Denmark-based, hotel booking platform Goodwings offers subscription-based access to more than one million hotels worldwide at wholesale rates. However, Goodwings is more than the average booking site; the company is a B Corp–certified member aiming to turn the hotel industry into a catalyst for sustainable change. With Goodwings, all hotel stays are 100 per cent carbon compensated, supporting people and the planet for free.

Its business model is built on partnerships, with a global network of 100 nonprofit partners in over 40 countries acting as their ambassadors and marketing channels. The money saved on advertising then gets redirected towards projects and people who are actively working towards the SDGs.

Lara Mulady, Head of Communications at Goodwings, told Springwise that “We wanted to take the focus away from radical innovations and instead look at how we could change existing services to make it easier for people to have an impact every day”. 

Read more about Goodwings.

3. HOTEL INTRODUCES CONTACTLESS STAYS VIA FREE APP

As part of the company’s coronavirus-related adaptations of services, guests can now enjoy contactless stays at all citizenM Hotel worldwide locations. Free to download, the citizenM app allows visitors to choose a comfortable level of social interaction. All locations within the business’ portfolio are now cashless, and guests use the app to select a room before arrival.

Check-in and check out is completed in-app, and all entertainment and ambient systems in the rooms are controlled via the guest’s smartphone. Additional safety measures installed within the hotels include hourly cleaning of high traffic areas including elevators and the removal of carpets in all guest rooms. Room cleaning service is now opt-in, so visitors can avoid having anyone enter their room during their stay. The app also provides a walking distance search filter and local discounts that highlight nearby attractions.

Read more about the citizenM app.

4. ENERGY-POSITIVE HOTEL TO BE BUILT IN NORWAY

The new hotel, “Svart”, (named after the Svartisen glacier) will be the first hotel to be built after the energy positive “Powerhouse” standard in a Northern climate, producing more energy than it uses. Moreover, it will have a demand for energy that is 85 per cent lower than a typical modern hotel. 

Designed by the leading Norwegian sustainable design studio Snøhetta, Svart will be built at the foot of the Svartisen glacier in the unspoiled municipality of Meløy in northern Norway. The hotel was commissioned by Arctic Adventures of Norway, a company operating in the eco-sustainable and naturalistic tourism sector, and plans to be completed by 2023. 

The hotel will stand on a stilt construction built with weather-resistant wooden poles that extend several metres below the surface of the fjord. Thanks to its many large windows, the circular-shaped hotel will offer panoramic views of the fjord, providing direct contact with nature. The ring-like shape is inspired by the local architecture of the “fiskehjell” (a wooden structure used to dry fish) and the “rorbue” (a traditional type of seasonal house used by fishermen). 

Read more bout the Svart hotel.

5. ‘ORIGAMI’ AEROPLANE SEAT DESIGN COULD HELP MAKE FLYING SAFE FROM COVID-19

French cabin equipment supplier Safran Aerosystems has partnered with British seating designer Universal Movement to create an “Origami” seat that makes partitions around economy-class seats.

The design – which is officially called Interspace Comfort System – features two wings within the seat-back that can be unfolded to offer lateral support and prevent movement, leaving the middle seat of three vacant and creating a privacy barrier between seats.

The concave padded shells, which are the same height as the seat, can be installed on 90 per cent of economy seats, says Safran. Safran Seats executive vice-president strategy and innovation Quentin Munier said he hopes to have the product on the market in the next few months, and the premium-economy concept later in the year. 

Read more about the Interspace Comfort System.

6. AN APP FOR MAKING SUSTAINABLE CHOICES WHEN TRAVELLING

It can be difficult to maintain a focus on sustainability when travelling, especially in an unfamiliar place. The French startup Tookki has a solution – a free mobile app that allows users to find environmentally-friendly restaurants, hotels, transport and more.

Tookki vets establishments and activities for their commitment to sustainability before listing them on its site. In addition, users can share places and experiences on the platform by acting as “ambassadors”. Once suggestions are validated by Tookki, the ambassador earns points, which unlocks discounts and other perks in Tookki partner brands’ e-shops.

The Tookki app allows users to search the nearby area for sustainable establishments and includes a map. Details such as opening times and phone numbers are also included. In addition to the app, Tookki also offers ‘green’ experiences, such as zero waste workshops and 100 per cent organic meals. These are intended for companies to use for away days and perks.

Read more about Tookki.

7. NURSING HOME PATIENTS USE VR TO ‘TRAVEL’ AND BOLSTER SPIRITS

Kenta Toshima, a researcher at the University of Tokyo’s Research Center for Advanced Science and Technology Inami-Hiyama Laboratory, has developed VR technology that allows elderly and nursing home patients to travel to places in the world they once visited or wish to see.

The experiment started when, working in a nursing home, Toshima was inspired to take panoramic images and videos with the 360-degree camera, which could be viewed through a VR headset by the care home resident. This idea grew in popularity.  

The aim,  according to Toshima , is to help and inspire elderly patients who are prevented from travelling due to physical or mental impairments, or who wish to reminisce on past experiences from the safety of their care home.

“The VR experience makes them feel like they are out of the nursing home and can help ease their anxiety and loneliness,”  he said in a conversation with Insta360.com,  whose camera he used to shoot the panoramas. The process of creating the shots also involved Toshima adding narration and names, to put the viewer at their ease.

Read more about the VR experience.

Written By: Holly Hamilton

20th November 2020

Related Expertise: Transportation and Logistics , Airline Industry , Travel and Tourism

Innovation in Travel Must Put the Traveler First

May 21, 2019  By  Nicolas Boutin ,  Jason Guggenheim ,  Jervin Justin ,  Pranay Jhunjhunwala , and  Tom McCaleb

To understand the state of innovation in travel, it’s important to study both the industry’s startups and its incumbents. In our review of the past three years, we found that in general, innovation has slowed, and—especially for incumbents—that innovation should focus more strongly on the customer experience.

Investment activity is a strong proxy for the level of innovation among startups. In 2018, overall venture funding for travel startups dipped to a four-year low, while the underlying “pulse” of funding—excluding a small set of “unicorns,” startups valued at $1 billion or more—has been creeping up much more slowly than in the first half of this decade. (See Exhibit 1.) At the same time, the focus of those investments has shifted from North America to Asia, so travelers in Europe and the US are less likely to experience any innovations that those investments generate in the short run.

Meanwhile, among incumbents, recent innovation has focused on efficiency and unbundling services—in other words, imposing charges for services that had been included in the base price—rather than on features that improve the travel experience for customers. With the growing presence of machine learning, these companies have unparalleled opportunities to personalize customer journeys and protect their control of the customer relationship. For this reason, we are cautiously bullish about travel innovation. We formed this view after interviewing 25 experts from travel and tech companies, travel industry startups, corporate venture funds, and incubators.

We are cautiously bullish about travel innovation.

Copy Shareable Link

The expectations of our expert panel members were lower in 2019 than the extreme bullishness expressed in Travel Innovated: Who Will Own the Customer? . But the message is remarkably similar. Traditional travel companies—airlines, hotel chains, and cruise lines—have a choice. They can actively shape the experience of their customers—through both internal development and participation in the broader open innovation ecosystem—or cede that role to, for example, the large tech companies. Inaction is a tacit invitation to tech companies to burnish their reputations as customer-friendly innovators while travel companies are reduced to commodity providers of hotel rooms and airplane seats.

Follow the Money

Overall funding for travel startups declined from $31 billion in 2017 to $13 billion in 2018. But to present a clear picture of the state of innovation, we prefer to exclude unicorns, such as the now public Uber and Lyft. Their inclusion can skew the view of entrepreneurial activity because, in some cases, they, like Lyft, take on massive late-stage funding prior to going public. Excluding these companies, funding rose by nearly 10% from 2015 to 2018, far less than in the years prior to 2015. The growth in investments into younger, smaller companies suggests that investors still have an appetite for travel investments.

Two other noteworthy trends are the rise of corporate participation in the startup market and a shift of the center of gravity to Asia.

Corporate Buy-In. Corporations are contributing a greater share of overall travel startup funding than just a few years ago. In 2018, for example, corporations participated in 21% of travel startup financings, compared with 14% in 2013. The share of corporate financing—24%—was even higher in 2017, but the multiyear trend is upward, while the share of venture funding has been slipping over the past decade. Coupled with travel companies’ experimentation with inhouse incubators and digital factories, these trends suggest that travel companies are continuing to view innovation as a priority.

Corporations are also investing in earlier financing rounds. In 2018, for example, 56% of corporate financings were in seed, Series A, and Series B rounds. Those three rounds made up just 30% of corporate travel-financing activity in 2013. Nearly half, or 48%, of all corporate startup investments in 2013 were for acquisitions. In 2018, only 9% of these investments were for acquisitions. (See Exhibit 2.)

These trends suggest that incumbents are willing to look outside their organizations for innovation and fresh ideas. For their open-innovation efforts to pay off, effective partnering and integration are critical.

The Asian Surge. In the case of Asia, investors are following the miles. The Chinese airline travel market grew from 440 million passengers in 2013 to more than 600 million in 2018. By 2022, China will likely be—in terms of numbers of passengers—a larger air travel market than the US. It’s no wonder then that the share of travel startup investments in Asia rose from less than 20% ten years ago to 36% today. Asian investors are responsible for about 85% of these investments, which is about the same percentage of North American travel startups funded by North American investors.

Many of these startups are offering Asia-specific solutions that address holes in the continent’s travel infrastructure. For example, China does not have a long history of credit card networks, privately owned travel companies, or intermediaries. Accordingly, most of the Asian innovations are unlikely to translate into a change in the travel customer experience in North America or Europe anytime soon.

Recent Innovation: Efficiency Versus Experience

Over the past decade, the innovation efforts of travel companies—excluding digital natives such as Airbnb—have focused on unbundling and identifying ways to extract more money from customers, who do not consider having to pay for meals, checked bags, early check-in, inflight entertainment, or extra legroom beneficial forms of innovation.

These moves are, of course, necessary for preserving the companies’ financial health. At US-based Spirit Airlines, the world leader in generating ancillary revenues, add-ons generate about $55 per customer per flight. A revenue management team dynamically prices checked and carry-on bags and the cost of each seat, taking into account demand, flight duration, and customer profiles.

At the same time, however, passengers and guests are being exposed to much more enriching “customer journeys” when they, for example, engage in online shopping. Consequently, they expect comparable care and attention in their travels. Airlines’ mobile apps now allow customers to change flights, view upgrade and standby lists, track flights, and order rental cars, while hotel apps facilitate checking in and out, upgrades, messaging with the front desk, and keyless room entry. Many of these innovations, however, were driven less by a desire to improve the customer experience than to reduce operating costs. Many customers like these apps, but others find them impersonal and burdensome.

Travel companies face at least two obstacles in their pursuit of innovation. First, they operate with thin margins, so the cost of replacing or updating legacy IT systems can be prohibitive. Second, many travel companies are simply risk averse and reluctant to place long-term bets. Several travel companies, for example, have launched and shuttered in-house incubators because the payoff was too slow.

Opening the Door for Tech Companies. Aversion to risk and a focus on efficiency create room for others to offer innovations that customers actually want. In general, tech companies—with their reams of customer data, talented programmers, and willingness to experiment and take risks—are leading the way. For instance, Google—through its search, customer review, mapping, calendar integration, and real-time alert capabilities—has done far more recently than any other company to improve the customer experience in travel.

Avoiding the Commodity Trap. Superior customer experience is a positive not only for the customer. It can lead to price premiums and higher loyalty and advocacy for companies that do it well—all the more reason that travel companies should not cede the innovation landscape to the tech companies.

Changing the Game for Startups. Although they can be agile and flexible, startups do not have access to the consumer data and resources of large tech companies. Accordingly, many startups have pivoted away from serving consumers to working directly with established travel companies.

This shift has not been easy. Incumbents have been willing to work with startups on peripheral functions, but they are understandably reluctant to let them work on core functions such as reservations, revenue management, and hotel operations. Furthermore, they already have in-house systems in these areas or are working with established vendors such as Amadeus and Oracle.

Future Innovation: The Power of Machines to Improve Customer Journeys and Operations

Artificial intelligence (AI) was on the minds of the travel experts we interviewed. Three years ago, in a prior version of this publication, we described the power of data to help provide a smooth and personalized travel experience, but the experts did not even mention AI. The situation has changed. In our discussions with the experts, AI was the innovation topic that—after personalization and self-service and automation—they mentioned most often. (See Exhibit 3.)

Personalization. AI and personalization are complementary. Travel companies have large amounts of information—especially indicators of customer behavior collected through loyalty programs—that they do not fully exploit. On the basis of customers’ previous interactions, AI can help travel companies by noting which services customers have accessed in other trips or would likely enjoy.

AI can also make the hotel or cruise ship experience more seamless and personalized. Using facial-recognition technology, for example, Royal Caribbean promises passengers that they will be able to get “from car to bar in 10 minutes.” And with AI, hotel guests can be automatically assigned to the types of room that they have enjoyed in the past.

Travel companies have rich opportunities for reaching their customers in new ways with AI. Companies can draw on a wide variety of customer data to suggest trip ideas that are likely to be of greatest interest, and travelers can respond, quickly booking trips through a choice of platforms, including mobile devices, chatbots, and voice assistants such as Alexa and Siri. If a trip is a recurring offering, the company can automate bookings on the basis of information in each customer’s calendar.

Travel companies have rich opportunities for reaching their customers in new ways with AI.

Operational Improvements. Travel companies should not abandon their AI and other innovation efforts in operations. In fact, improved operations and customer experience go hand in hand. Customers often interact with several travel companies at different stages of their journeys. Many of these situations, involving, for example, weather-related delays or unforeseen mechanical breakdowns, are emotionally charged and beyond the companies’ control. Nonetheless, it’s not at all unusual for customers to hold the companies responsible. AI can help companies anticipate and prepare responses to such lapses even when they are not at fault.

AI can help airlines avoid disruptions. For example, Dutch airline KLM and BCG are working together to develop AI-enabled decision support tools that can help predict delays, optimize aircraft and crew scheduling, and improve the passenger experience. With these tools, an airline can quickly analyze many scenarios, taking into account crew positions and availability, aircraft locations, and maintenance programs. Armed with such analyses, frontline staff can make integrated decisions that boost operational performance. Qantas has developed AI routing models that reduce the risk of delays and turbulence while minimizing fuel, crew, and costs.

Many of these data-based innovations will require connecting data across systems and companies. Several experts said that the International Air Transport Association’s efforts to provide a common data standard (through New Distribution Capability), a single record (through ONE Order), and open software (through Open API) will help enable that connectivity. Others emphasized the need to make sure that customers receive value in exchange for agreeing to share their personal information and to comply with privacy regulations such as the EU’s General Data Protection Regulation.

Seemingly far-off innovations such as electric vertical takeoff and landing (eVTOL) and fully autonomous planes and cars may be available much sooner than many realize, but they are still several years away. (See the sidebar “Innovation in Flight.”)

Innovation in Flight

Recent innovation in travel has been modest, but several breakthrough technologies are nearing commercialization. In short-haul air travel, electric vertical takeoff and landing (eVTOL) air taxis and small fixed-wing electric aircraft are on the horizon. An on-demand eVTOL taxi will pick travelers up at their homes or offices and fly them directly to destinations within 500 miles. In January 2019, Boeing NeXt successfully tested an eVTOL aircraft: it took off, hovered, and landed on its own.

For trips of up to 700 miles, more cost-conscious travelers might opt for a hybrid jet or turboprop. These planes will offer lower-cost and more environmentally sustainable travel, even if the batteries are not yet economical for purely electric air travel. Boeing HorizonX and JetBlue Technology Ventures are backing Zunum Aero in its development of electric aircraft. With cruising speeds as high as 340 miles per hour and a cost-per-average seat mile of $.08, these aircraft could compete with traditional aircraft and open new routes. Zunum Aero aircraft can optionally be piloted remotely, helping address the pilot shortage. The company expects the first flight of its 12-seat aircraft in 2020. Subsequent models will be designed for up to 50 passengers.

Travel Companies Can Avoid the Commodity Trap by Working with Startups

Three years ago, we asked, How can travel suppliers protect their place in the value chain? The question remains relevant today, even if the context has changed. At the time, startups appeared to be a larger threat. Today, the tech companies are playing a more passive role than we had anticipated, funneling traffic to direct channels rather than competing directly against travel incumbents.

Even so, travel companies should be concerned about the risk of ending up as commodity providers while big tech companies own the customer relationships. Travel companies should be sharpening their focus on customer-centric innovations and improving the customer relationship—even at the risk of disrupting their own businesses. They certainly need to be willing to work with startups simply to gain access to their talent and creativity. These collaborations and partnerships will require changes in context in at least three areas.

Travel companies should be concerned about the risk of ending up as commodity providers while big tech companies own the customer relationships.

Alignment.  Travel companies’ executives and middle managers need to be willing to work with startups and incorporate their innovations. To move beyond the not-invented-here mindset, travel companies will need to rethink their KPIs and incentives. For example, JetBlue tied the compensation and KPIs of senior executives to the success of its JetBlue Technology Ventures incubator. With the proper incentives in place, JetBlue executives now willingly work directly with the management teams of companies funded by the incubator.

Agility.  Travel companies need to be able to create hassle-free partnerships with startups. And they need mechanisms for seamlessly connecting their IT systems with those of their partners. JetBlue Technology Ventures, for example, has built fast-track procedures that accelerate collaboration between portfolio companies and divisions of the airline.

In interviews, travel startup executives complained about the multiyear processes and high legal expenses they incur in partnering with travel companies, which too often try to push startup partnership development through extended procurement and legal processes designed for billion-dollar aircraft orders. Even if an initiative survives that gauntlet, complete implementation can sometimes take years.

Attitude.  Travel companies need to take a more venture-capital-oriented approach to innovation. Travel executives seem to forget that nine out of ten startups—and internal innovation projects—fail. Even successes are unlikely to generate profits for a long time. It’s not unreasonable to expect a large travel company to manage a diversified portfolio of 30 to 50 internal projects and external partnerships.

Travel companies should view their partners as equals rather than subordinates. In too many cases, the travel company dictates contract terms—insisting, for example, on exclusivity—that turn off the startups with the best ideas. In fact, they should be willing to, like JetBlue Technology Ventures, introduce the startups to other companies in the travel industry.

To increase the odds that they benefit from rather than face the consequences of disruption, incumbents should welcome and engage with potential disruptors. JetBlue Technology Ventures’ involvement with Joby Aviation, an eVTOL startup, and Zunum Aero, a hybrid-electric-aircraft startup, exemplifies willingness to make long-term investments even at the risk of business model disruption.

Change in Context.  With data a key element of many innovation trends, travel companies need to recapture the advantage that they have ceded to Google and others. It may make sense for industry participants to band together or for individual companies to work with their cobranded credit card partners to strengthen their understanding of their customers’ needs. At the same time, they should take steps to assure their customers that they will receive benefits in exchange for allowing the use of their data. This is ground that travel companies must recapture if they want to provide their customers with a seamless, friction-free, and relevant experience.

By developing a more open approach to innovation—especially when it benefits the customer experience—established travel companies can remain relevant in the face of competition from the large technology companies. Innovation is one way these companies can avoid being viewed— and ultimately valued—as providers of a commodity.

Managing Director & Senior Partner, Travel & Tourism Global Leader

Managing Director & Senior Partner

Managing Director & Partner

ABOUT BOSTON CONSULTING GROUP

Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

© Boston Consulting Group 2024. All rights reserved.

For information or permission to reprint, please contact BCG at [email protected] . To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcg.com . Follow Boston Consulting Group on Facebook and X (formerly Twitter) .

Subscribe to receive the latest insights on Consumer Products Industry.

Related content.

Competing on the Rate of Learning

New technologies operate at superhuman speed. Social, political, and economic forces move much more slowly. To use learning as a competitive advantage, companies must be able to learn on both timescales.

The Emerging Art of Ecosystem Management

Many companies are building or joining collaborative networks. The challenge is how to effectively set up and manage these ecosystems and use them strategically to maximize value—and gain a competitive edge.

Building a Resilient Business Inspired by Biology

Unprecedented levels of uncertainty threaten the architecture of many global firms. Six principles of biological systems can help companies address the unknown and the unknowable.

The Big Leap Toward AI at Scale

Companies are encountering the “AI paradox”: it is deceptively easy to launch projects with AI but fiendishly hard to reach scale.

• Business Management

12 most innovative sustainable travel and hospitality start-ups

May 20, 2021 •

5 min reading

In response to consumer concerns over sustainability and to give industry players an edge in an increasingly competitive market, hotels, airlines, booking agents and tour operators —among others— have been developing a host of innovative sustainable travel start-ups.

In fact, sustainable innovation has become so sought-after that in July, in the midst of the pandemic, the World Tourism Organization (UNWTO)— the UN agency responsible for promoting sustainable, accessible and inclusive tourism—launched a startup competition to identify particularly promising new businesses. The competition attracted more than 10,000 participants from 138 countries; winners were announced in February . As UNWTO Secretary-General Zurab Pololikashvili said, “The winners show the power of new ideas for transforming our sector.” Winning startups will receive support to develop their ideas further through guided mentorship programs with Amadeus, Google, IE University and FarCo.

EHL's Innovation Village

EHL has been at the forefront of innovation in the hospitality sector for years and in 2009, launched an incubator for the development of new concepts. The initiative was so successful, that nine years later, EHL’s own Innovation Village was launched with the goal of supporting entrepreneurship and disrupting the hospitality industry, with a particular emphasis on sustainability. Over the years, the Village has evolved into a dynamic learning and experimentation center for students and a source of research and talent for companies.

Showcasing the sustainable travel and hospitality start-ups launched at EHL 

One-StepUp , an initiative founded by Jeanne Guerlais to encourage businesses to rethink packaging and reduce the use of plastic that is polluting oceans, soils and compromising the health of future generations. The firm works only with European companies to find alternative packaging solutions including, for example, bags made from compostable cellulose and homecompostable certified hot beverage cups. R-PET is the direction that the food industry is taking to go further. Today the start-up with a team of 3 is providing big company names in Switzerland such as Manor.

I am not saying that this is the end of plastic, but our wish is to find a strategy for a sustainable management of plastics in the sense of a circular economy. - Jeanne Guerlais, One-StepUp

• With a team of 12, Swiss start-up KITRO uses AI provide food waste data collection and analysis to companies. By providing an automated overview of their waste stream, KITRO enables businesses us to make targeted changes to increase efficiency and reduce waste and cost.
• Initially supported by EHL during a pilot program that started in 2012, Beelong was founded in 2014 to bring greater transparency, traceability and sustainability to the food industry. Today, the firm works with food companies and caterers concerned about the future of our planet and who want to gain greater insight into the environmental impact of the foods they’re sourcing.

Providing simple environmental information is key to helping our society move towards a greener future, and the current lack of transparency on food products is what drives me to raise awareness on the major environmental issues of our actual diets. The EHL incubator provides us the perfect environment to carry out our mission. - Charlotte de La Baume, Beelong

Sustainable travel and hospitality start-ups

Meeting a growing demand for authentic travel experiences.

Sustainable innovation reaches far beyond the boundaries of EHL, with exciting new start-ups launching all the time. Among the hottest areas in sustainable innovation is experiential tourism. While the pandemic has created pent-up demand to travel, the social isolation that people have endured during the past year means they’re looking forward to not just touring cities and relaxing on beaches but connecting with people. And a growing number of startups are responding to that desire for authentic connection. Here are a few examples; there are dozens more.

• French start-up Partasam recently launched  com , a collaborative platform that allows travelers to get in touch with locals for tips and advice. Within six months, the multilingual platform already registered members from more than 25 countries.
• Tastemakers Africa brings together artists, chefs, musicians and creative entrepreneurs to host tours and activities that go beyond stereotypical safaris and allow visitors to discover music, arts and cuisine.
• The B-Certified, Barcelona-based online startup Authenticitys designs local experiences that drive social change.
• I Like Local runs tours in 19 countries across Asia and Africa with the goal of creating a source of sustainable income for guides and hosts while providing travelers with off-the-beaten track experiences including family homestays with indigenous communities, cycling, crafts and cooking.
• And Fair Voyage is on a mission to make sustainable travel easyby connecting travellers with verified local companies

While the pandemic has given operators plenty of time to rethink their business objectives and reinvent themselves, a number of them are responding to travelers’ desire to stay close to home and avoid air travel. For example, a new British operator founded  Byway specializing custom journeys by train, boat and bike to off-the-beaten corners of Europe.

And banking on people’s desire to share their experiences with their social networks, the Portuguese company Live Electric Tours provides self-drive experiences in electric vehicles equipped with internet and camera, which allows travelers to keep friends and family up to date if not bring them along on a virtual tour.

Start-ups helping airlines to reduce and offset carbon emissions

In response to the increased pressure on airlines to reduce and offset their carbon emissions, most airlines have adopted zero-net emissions targets and are working to develop alternative biofuels. A number of start-ups are facilitating that transition.

• Since 2006, Toulouse-based OpenAirlines has been supporting reduced fuel consumption for airlines by using big data from flight recorders to optimize flight paths.
• Bulgarian startup  CO2 Cards offers a carbon-offsetting solution enabling online travel agencies, car and delivery services, for example, to calculate the carbon footprint of their clients’ orders and integrate offsetting options into their ticketing systems.

Contributing Beyond Education

Keep reading

Exploring cultural diversity and sensitivity in luxury markets

Mar 28, 2024

Strategic leadership: Essential skills for executives - What matters?

Mar 27, 2024

Skills-based talent management in hospitality and tourism

Mar 20, 2024

This is a title

This is a text

• Bachelor Degree in Hospitality
• Pre-University Courses
• Master’s Degrees & MBA Programs
• Executive Education
• Online Courses
• Swiss Professional Diplomas
• Culinary Certificates & Courses
• Fees & Scholarships
• Bachelor in Hospitality Admissions
• EHL Campus Lausanne
• EHL Campus (Singapore)
• EHL Campus Passugg
• Host an Event at EHL
• Contact our program advisors
• Join our Open Days
• Meet EHL Representatives Worldwide
• Chat with our students
• Why Study Hospitality?
• Careers in Hospitality
• Awards & Rankings
• EHL Network of Excellence
• Career Development Resources
• EHL Hospitality Business School
• Route de Berne 301 1000   Lausanne 25 Switzerland
• Accreditations & Memberships
• Privacy Policy
• Legal Terms

© 2024 EHL Holding SA, Switzerland. All rights reserved.

Jennifer Swanson Says Innovation Exchange Lab Advances Army-Industry Collaboration on Digital Transformation

Jennifer Swanson, deputy assistant secretary of the U.S. Army for data, engineering and software, said the service branch’s newly established Innovation Exchange Lab — dubbed IXL — will enable faster digital technology adoption by providing a cloud-based environment for facilitating industry collaboration.

The IXL enables industry and software developers to test and evaluate their software tools’ interoperability with the Army’s Unified Data Reference Architecture 1.0, a.k.a. UDRA 1.0, which was co-developed by the deputy assistant secretary of the Army for data, engineering and software and the chief information officer, Swanson wrote in a blog post published Thursday.

UDRA 1.0 is the first tool made available to both Army and industry software developers through the IXL to encourage ongoing collaboration while developing new data-based warfighting technologies.

According to Swanson, UDRA utilizes the U.S. government’s modular open systems approach to prevent “vendor lock,” where large platforms become dependent on proprietary designs and systems.

“It is the Army’s first of a series of reference architectures, fully coordinated internally and with industry, to enable us to seamlessly integrate all of our products together regardless of which program manager or industry partner develops them,” Swanson said.

Swanson is set to speak at the Potomac Officers Club’s 5th Annual CIO Summit on April 17. Register here to save your seat and hear about the latest modernization strategies from government and industry CIOs.

• c5isr center
• digital transformation
• innovation exchange lab
• Jennifer Swanson
• unified data reference architecture

5 Federal Agencies Join Pledge to Address Discriminatory Outcomes Related to AI Use; Kristen Clarke Quoted

Fermilab, xLight Partner to Improve Semiconductor Manufacturing in US

Dave Luber Named NSA Cybersecurity Director

Travel startups: Disruption from within?

Startups play an essential role in spearheading innovation that benefits consumers, businesses, and industries. But travel startups have been underfunded when compared to startups in other sectors. Looking back over the past 15 years, the travel and tourism industry received around 1 percent of funding for startups across all industries. 1 McKinsey analysis based on PitchBook Data, Inc.. This relatively low level of investment stands out in contrast to the industry’s size: Travel and tourism contributed to over 10 percent of global GDP in 2019. 2 “Travel & Tourism: Economic impact 2022,” World Travel & Tourism Council, June 14, 2022. These factors suggest that it’s a tough industry in which to raise money.

Despite these funding challenges, and unprecedented industry uncertainties, over $27 billion worth of investments were poured into travel companies from 2020 to 2022. In fact, in 2021, investment set a new record of just under $11 billion—indicating that investor appetite has not only returned to pre-COVID-19 levels, but even surpassed it.

About this research

Analysis is based on information obtained from the Phocuswright startup database. Funding was analyzed from 2005 to 2022 YTD (including November 2022), based on a sample of 3,865 startups. This included 6,395 funding rounds, accounting for $76 billion in funding (exhibit).

Given this context, a new report Travel startups: Disruption from within–or not? presents an overview of the travel startup environment, and how the funding landscape has evolved across geographies, and across the different types of travel startups. Analysis is based on information obtained from the Phocuswright startup database and draws on insights from industry executives (see sidebar, “About this research”).

The report examines the kinds of investors that are funding these startups—and the types of businesses they choose for investment. It also puts forward possible future scenarios that would have implications for travel companies and stakeholders in the startup space. This article presents some of the key findings.

Fewer travel startups are attracting funding, but when they do, they secure a substantial amount

Even though funding may be hard to come by, compared to other sectors, investors are interested in travel and tourism. Investment in travel startups has returned to pre-pandemic levels and has even surpassed record-breaking years in the past, such as 2015 and 2019. These peaks were achieved through significant acquisitions that may have consolidated the market. For instance the online travel agency Expedia acquired HomeAway for $3.9 billion in 2015. 3 “Expedia to acquire HomeAway, Inc.,” Expedia media statement, PR Newswire, November 4, 2015.

Furthermore, funding per round has increased over the past decade from an average of around $4 million in 2010 to $20 million in 2022, with the steepest increase seen during the pandemic (Exhibit 1). This indicates that fewer travel startups could be attracting funding, but when they do, they secure a substantial amount. In essence, the relatively small amount of funding that exists is shifting toward fewer startups.

Funding has shifted toward more mature startups

Q&a with johannes reck, ceo of getyourguide.

Johannes Reck is CEO of GetYourGuide, a Berlin-based online travel agency and online marketplace for tours, attractions, and excursions. The company’s website and app connects travelers with activity providers around the world, offering thousands of products in more than 20 languages, and 40 currencies. He shares his views on the investment landscape for travel startups:

What patterns have you noticed regarding investment in travel startups?

At a high level I would say that too little VC money flows into travel altogether, probably due to the market cap that has been realized, and that startups in the scaling phase still have to demonstrate profitability to attract funding. It’s also important not to generalize the way we think about startups—they range in size and maturity from two employees to major disruptors. Essentially, if innovation is not yet proven, then there is little or no money coming in, and this is especially true in Europe.

Are certain types of startups attracting more investor interest than others?

There are category leaders emerging in many areas, such as flights, accommodation, and experiences. I think investors have no appetite to pour money into a number three or four in any given category. And because of the global network effect in travel, it’s really difficult to design a new category. For instance, the chance that a new company could fundamentally disrupt an established concept such as Airbnb, or Booking.com, is limited because of the network effect that locks in global supply and demand—and that’s what makes category leaders so defensible.

Furthermore, there is a perception that as large firms are so big, they can do everything, and that may scare away a lot of investors from betting on a smaller innovative company. The presence of large incumbents may stifle innovation—but startups have a central role to play in this regard and can benefit the entire industry.

What role do you think travel companies could play in the startup landscape?

I think travel companies have to invest in innovation now, otherwise they could be worse positioned in a future crisis. Essentially, travel companies could look at how investing in startups could strengthen all areas of their value chain. They could also focus on the value that innovation will bring to the industry, instead of investing only with profit in mind.

That said, there may be room for travel companies to look at M&A. There is much less competition, compared to pre-COVID-19, and acquisition is now much more efficient. This means that companies could be in a position to grow—much faster and with less effort.

Across industries, later-stage funding (i.e., Series B, C, D) has made up the majority of startup investment (Exhibit 2). Between 2020 and 2022, more acquisitions (e.g., Getaroom.com and On Location Experiences) and public financing rounds (e.g., Sonder and Vacasa) took place than in previous years. This could be symptomatic of a trend: Investors may want to back category leaders that have reached scale (See sidebar, “Q&A with Johannes Reck, CEO of GetYourGuide”).

Hospitality startups remain the leading category for investment

Most recent funding has been channeled to hospitality startups, making up 49 percent of investment between 2015 and 2019, and 41 percent between 2020 and 2022. This is likely due to the rising popularity of short-term rentals. Startups providing services for short-term rentals, such as Airbnb or AvantStay, accounted for 55 percent of hospitality startup funding in 2021.

Business travel startups doubled their share of investment during the pandemic, and within this category, startups in the corporate segment, such as the expense-management software provider Divvy, secured 98 percent of funding between 2020 and 2022. The MICE segment received the remaining 2 percent, likely due to the decrease in events during the pandemic.

Would you like to learn more about our Travel, Logistics & Infrastrucure Practice ?

In the same period, booking and transport startups lost some share of funding as investor priorities may have shifted during the crisis. In the booking category, online travel agency businesses secured 90 percent of funding.

Overall, the pre-trip category remains the least funded, having attracted 1 percent of total funding in the past seven years. Within this category, startups in insurance attracted 84 percent of funding in 2021 (Exhibit 3).

Travel companies account for a relatively small percentage of travel startup funding

Since 2015, five categories of investors have funded travel startups:

• Angel and private investors: These investors oversaw 138 rounds of capital raising totaling $3.6 billion between 2015 and 2021.
• Banks and the public sector: These institutions oversaw 125 funding rounds, totaling $6.4 billion. Much of this funding took place in 2021, likely due to pandemic-related bailouts and large rounds of debt funding.
• Venture capital (VC) and VC-orientated private equity (PE) firms: This group raised 2,090 rounds of funding, totaling $72 billion.
• Travel companies: These are frequently in-house incubators or joint ventures that provide potential businesses with direct support. Travel companies raised $7.8 billion in investment through 389 rounds.
• Non-travel companies: Despite not being in the tourism sector, these companies raised more money ($12.5 billion) in 264 rounds than their travel-industry counterparts.

Overall, VCs have been the leading investor category, and spent nine times more than travel companies in 2021. Since 2015, travel companies accounted for a relatively small percentage of startup funding, and this has decreased in recent years, dropping from 18 percent in 2020 to 5 percent in 2021.

Between 2015 and 2019, VCs and PEs invested at least twice as much per funding round compared to travel companies. Average funding size was roughly $37 million for VCs and PEs, compared to $17 million for travel companies. This leveled out between 2020 and 2022 where both groups invested approximately $30 million on average per funding round.

In 2021, banks greatly increased their investment share and matched VC investments, likely driven by increases in debt funding (Exhibit 4).

The travel industry could benefit from supporting startups

To date, travel companies have played a very small role in investing in the industry. As startups generally spearhead innovation, travel companies could take up opportunities to support startups—and reap the benefits. Furthermore, by not supporting, or finding ways to engage other players in the industry, travel companies may be missing an opportunity to shape the next generation of travel businesses. And as the investment landscape becomes tougher, travel companies are well placed to ensure that the innovation pipeline continues to flourish, even if VCs and larger players withdraw.

Travel companies could become more involved in investing in the industry and bring their expertise to bear on innovation and the sorts of capabilities and technologies that may be needed. And they stand to gain from leveraging startup capabilities in-house. Research into collaboration between corporates and startups in other industries shows that both parties stand to benefit. Startups can benefit from corporate funding, resources, and customer access, while corporates may need the innovation that startups offer to stay ahead of competitors and disruption, and also to access new technology. 4 “Collaborations between corporates and startups,” McKinsey, May 2020.

Three possible future scenarios could materialize in light of the trends in travel startup funding.

• Incumbent-driven consolidation: In this scenario, sustained emphasis on short-term profitability due to inflation and increasing cost of capital would make it difficult for travel startups to attract funding and gain ground in the industry. Funding rounds would be smaller due to early exits, closures, bankruptcies, or consolidation by established and scaled technology-driven firms. Established players would focus more on developing products and services that can be scaled globally and less on optimizing backend processes where rapid scale-up is potentially more challenging, such as manual check-in processes in hotels. This situation would lead to less innovation across the industry. In the long run, reduced innovation due to less startup diversity may require more in-house innovation for optimizing backend processes and technology.
• Emergence of multiple niche startups: Early-stage startups would see sustained and potentially increased funding, while funding for startups in the later stages would plummet. This could lead to an exit wave across later-stage startups due to bankruptcies. At the same time, a wave of new, more diversified, startups could emerge that aim to tackle a variety of niche problems in the industry, such as core technology elements. The result could be an even broader but more fragmented ecosystem of new industry players, leading to higher levels of innovation throughout the industry. Travel companies could acquire distressed startups, at lower valuations, which would boost in-house innovation and allow incumbents to provide new offerings.
• Travel startups golden 20s: In this scenario, travel startups across all growth stages and categories would see continuous increases in funding and growth. There would also be an increase in larger investments aimed at developing technology and core industry processes such as AI-enabled fulfillment, and disruption management. Innovation could flourish across the industry. In this fast-growing landscape, competition for funding would intensify and investors’ expectations around performance could increase. At the same time, collaboration would become more complex due to the diversified landscape of partners and suppliers. Established businesses would need to build in-house innovation capabilities organically or acquire them. Differentiation would become more difficult and several leading incumbents may be replaced by new challengers in the market.

However the future pans out, support for startups can boost innovation and strengthen the travel and tourism value chain, for all participants.

Giuseppe Genovese is a consultant in McKinsey’s Dallas office, Evgeni Kochman is an associate partner in the Frankfurt office, Vik Krishnan is a partner in the San Francisco office, and Nina Wittkamp is a partner in the Munich office.

The authors wish to thank Karel Dörner, Markus Berger-de León, Patrick Naef, and Christian Dominka, for their contributions to this report.

The authors also wish to thank Hollis Thomases, a senior research analyst at Phocuswright, Chetan Kapoor, a research analyst Asia Pacific at Phocuswright, and Johannes Reck, CEO of GetYourGuide.

Explore a career with us

Related articles.

Accelerating the transition to net-zero travel

Tourism in the metaverse: Can travel go virtual?

Industry Summit 2024:

Partners for a Resilient Future

Participation in this event is free, but registration is required, and space is limited!

Sign up today to reserve your spot. Please limit your company’s participation to 5 people or fewer.

Photography and Digital Media Notice: By attending this event, you consent to be photographed, filmed, or recorded and to the release, publication, exhibition, or reproduction of any and all recorded media of your appearance, voice, or name without compensation, in perpetuity in connection with BARDA, ASPR, HHS, and their initiatives. This includes but is not limited to use on websites, publications, social media, and advertising.

Eight of 2024's scariest air-travel moments so far

Here are eight flight incidents passengers faced in early 2024, from the tragic crash in Japan to plane engines catching on fire.

More from News

• Main content

Governor Shapiro Secures Jobs and Innovation in Pennsylvania's Energy Sector

HARRISBURG, PA — Governor Josh Shapiro recently expressed his gratitude towards the U.S. Department of Energy (DOE) and Secretary Jennifer Granholm for revising energy efficiency standards that impact key components of the electrical grid. This adjustment directly benefits the Cleveland-Cliffs Butler Works plant in Butler County, safeguarding over a thousand union jobs and ensuring the continuation of a critical manufacturing process.

The issue at hand involved the DOE’s initial proposal to rapidly transition away from traditional steel designs used in distribution transformers within a mere three years. Such a move posed a direct threat to the Butler Works Plant, the nation’s sole producer of grain-oriented electrical steel. This material is vital for manufacturing transformers that distribute electricity across America’s infrastructure projects. The potential fallout from the DOE’s original rule could have led to the loss of approximately 1,100 jobs and the closure of an essential manufacturing facility during a time of growing demand for electrical infrastructure.

Governor Shapiro, recognizing the gravity of the situation, intervened by sending a detailed letter to the White House Office of Management and Budget in March. He outlined the potential consequences of the DOE’s proposed rule on Pennsylvania’s workforce and the broader energy sector. His advocacy underscored the need for a balanced approach that would not only preserve existing manufacturing capabilities but also encourage innovation and environmental sustainability.

The DOE’s revised ruling reflects a compromise that aligns with Pennsylvania’s interests. It extends the timeframe for compliance, allowing the Butler Works Plant and others in the industry to adapt without jeopardizing jobs. Furthermore, it includes a $75 million grant aimed at assisting manufacturers like Cleveland-Cliffs in reducing their energy consumption and carbon emissions. This initiative represents a strategic investment in the future of energy-efficient manufacturing and environmental stewardship.

Governor Shapiro hailed the decision as a victory for Pennsylvania’s workers and its status as a national energy leader. “This outcome demonstrates our commitment to protecting the livelihoods of Pennsylvanians while fostering a culture of innovation and sustainability within our key industries,” Shapiro remarked. He also acknowledged the critical role of the Biden Administration in reaching a solution that balances economic and environmental priorities.

The response from Cleveland-Cliffs Butler Works has been optimistic, with expectations of increased demand for grain-oriented electrical steel. This not only secures the current workforce but also opens avenues for potential expansion, reinforcing the plant’s significance in the national energy supply chain.

Governor Shapiro’s successful negotiation with the DOE exemplifies how targeted government intervention can protect jobs, promote technological advancement, and enhance environmental outcomes. It serves as a model for how states can navigate the complex interplay between industrial growth and sustainability in the modern economy.