8 Trends in Travel and Hospitality Industry Worldwide 2022

The pandemic has changed the way companies across industries and regions do business. We are now months, years ahead. Companies have accelerated the digitization of their interactions with customers, their supply chain and internal operations. The role of technology and, more specifically, of digital transformation, has grown exponentially. Companies that quickly adapted to the sudden changes and invested in technology, have reported growth and the ability to cope with the market in a competitive way. New strategies and practices were and are necessary for that to happen, as well as the use of more advanced technologies, speed of experimentation and innovation. Travel & Hospitality is an example of this scenario, one of the industries that most needs to undergo a digital transformation in order to adjust to its market niche. As an example, we have highlighted some of the main trends and digital transformations that major players in the Travel & Hospitality sector are carrying out.

1. Artificial Intelligence customizes the customer's travel experience

We expect travel booking websites and apps to implement Artificial Intelligence (AI) technologies, which will help customers before, during and after their booking process, either through chatbots or virtual assistants, for example. The AI can come up with suggestions based on past travel decisions, making it easier for customers to find a suitable travel package. In order to further assist customers in their choices, Hipmunk launched a virtual travel agent called Hello Hipmunk, available on Facebook and Slack. The app is powered with two features: Hello Email, with which users can email inquiries about their flights or hotels; and Hello Calendar, in which users' calendars are to be checked by the AI and it will give them flight, hotel and car rental options.

2. A Customized Travel Experience

Several customers feel discouraged by the endless options they are offered when it comes to destinations and packages, but agencies have the power to reverse this situation. Once they analyze past destinations chosen by travelers, agencies can offer them customized travel recommendations that might be the perfect fit for their needs. Although segmentation is nothing new to the industry, customization is the next step towards greater loyalty and getting closer to customers. Despite the importance of having previous data from their trips, customers' online behavior is also becoming more and more relevant, as users go online and end up writing virtual destinations wishlists. If companies can decipher and understand these virtual lists, they will be able to offer custom made travel packages and get in touch with customers in a personalized way, thus increasing their engagement.

3. Social Media inspiration

Social media channels have been playing an important role throughout the entire travel process. Social media users search for potential destinations or actively search for online recommendations. When on holidays/vacation, many people post photos and share their experiences through apps or review sites, turning that into authentic content, used by other internet users who are looking for more information. The influence of online content, introduced by friends and family, on real travel decisions is especially strong with millennials, where 89% say they plan their vacation based on photos posted on apps and 97% share photos or videos while traveling. However, there are some drawbacks to this decision making method: small places are suddenly overcrowded with tourists who have seen pictures online of such places and decided to visit them too, making life hard for those municipalities and their residents.

4. Virtual reality

Virtual Reality-VR technologies, incorporated into travel portals, is certainly a trend. Travel agencies will encourage customers to have a VR travel experience, as it can help travelers throughout the entire booking process: from choosing a destination and a hotel to booking a flight. Hotels use VR on their premises as motivation for travelers to book rooms, spa treatments and event spaces. "Virtual tours” provide guests with an idea of what the hotel feels like, and it allows travelers to explore hotel accommodations, including suites, gyms, bars and other facility highlights. Some airlines use virtual reality to highlight their first-class amenities. VR experiences showcase first-class check-in processes, lounges or cabins, and that may encourage customers to add amenities to their flight bookings. VR is also a great tool for airstrip training, as companies have limited space availability at their hands-on training facilities.

5. Improving staff management efficiency

The pandemic has also damaged the economy and companies were forced to tighten their belts and reduce costs, due to travel and displacement restrictions. That is why companies are making some important structural changes to improve workforce efficiency, for example: reduction of staff at airports, online check-in services and ticket purchase, etc. Now, when it comes to maintenance, they are optimizing their planning and allocation of personnel. Travel agencies have seen an increase in their use of digital technology, DX customer service, a reduction in brick and mortar stores, and video calls with customers.

6. More demands and resources investment in online tours

In the very near future, people will choose their tourist destinations only after experiencing it through Virtual Reality. Travel agencies are preparing more virtual tour programs and experiences for customers in order to make their decisions and choices easier. For example, virtual visits to countries and areas, which the vast majority do not have access to or are not allowed to visit due to the pandemic.

7. Customer management and supply chain automation

When the pandemic hit, companies had to speed up their digitization processes and customer interactions in about three to four years. Supply chain and internal operations have also been quickly updated. Room service robots are an example of that. Recently, two Chinese hotel giants invested in ExcelLand, a manufacturer that has 3,000 robots in operation already. Another example is the increased use of chatbots, improving CX, by hotels, airlines, booking sites and others. Travelers can chat with vendors during every step of their journey and don't always realize they're talking to a robot, thanks to advances in AI that have made this type of communication trouble-free. According to some studies, searches carried out by "chatbot" have increased by 121% in the last 5 years.

8. Sustainability

In a recent Skift report, we have a brief statement about sustainable travel in the future: “This is a less flashy way of both seeing and traveling the world, with an emphasis on safety, sustainability and deep experiences when going from the point A to B without destroying the local climate and quality of life in the process.”
In terms of security, facial recognition at airports is becoming a reality. More and more airlines and airports are implementing this system. Corporations and government entities promote this technology as a travel safety benefit. However, many privacy advocates warn that this kind of surveillance can easily become dystopian.

Lessons learned in crisis

The pandemic has impacted tourism and, consequently, the hospitality industry like no other event has in history. Overnight, all travel was suspended and the industry saw its occupancy rates nosedive. In a scenario of total desolation and uncertainty, management was a great challenge, but the impact was enormous, with substantial losses. No one came out of this situation unscathed and those in the tourism industry who weathered this unprecedented crisis learned and are still learning their lessons while using those learnings to restructure their operations. We understand the recovery is slow and strenuous. In any case, experts are optimistic about the market reorganization and the development potential for the tourism industry.

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