News and Insights

AI, Frictionless Travel and Agility, Oh My! Insights from Phocuswright

December 4, 2024

In late November, the travel industry gathered in Arizona for the annual Phocuswright Conference. As expected, AI and related tech topics took center stage throughout the event. The buzz was electric as attendees discussed how this new wave of tech is poised to both move the industry forward and completely transform it from the bottom up.

One of the most engaging panels discussed “travel tech trends around the world.” Participants were asked to describe the future of travel tech in one word, and gave responses including frictionless, agility, intelligence, transformative, and virgin territory. While these words paint an aspirational picture, it’s clear we are at the tip of the iceberg in exploring what it will take to reach this vision over the next decade.

The audience also had a chance to share their perspective on the most exciting applications in the new age of travel tech. They ranked GenAI for recommendations, agentic AI task automation, and backend developer tools as the top three.

When asked to pick travel tech’s biggest promise, “more free time” stole the show, followed by “cost savings/productivity” and “more reliable products,” which tied for second. Interestingly, “saving the planet” received the fewest votes, despite the industry’s consensus that sustainable travel will be key to its long-term growth.

Next up our client, Steve Singh, chairman of Direct Travel spoke with PhocusWire executive editor, Linda Fox, in a session titled “Upending Corporate Travel (Again).” Steve emphasized that the right type of Travel Management Company (TMC) has a very strong future, however, the TMC model as a whole must evolve. To succeed, Steve believes TMCs need to leverage AI-enabled services to be a driving force and deliver even greater value.

What can travel tech communicators take away from these insights?

Actively participate in conversations. Share lessons learned, challenges, and the benefits of modernization to position your company and execs as thought leaders.
Be transparent on how your company is using AI. Customers want the advantages of AI, AND they need to know that it is being implemented ethically and responsibly.
Showcase how the marriage of tech and people delivers the best results. While AI is a game-changer, it can’t fully replace the human touch which will remain essential in creating the very best travel experiences.

One of my favorite comments came from Mike McGearty, co-founder and CEO of Meili Travel Technology, who said, “true disruption needs more than a facelift.” Looking ahead, undoubtedly, the travel tech industry is focused on making significant strides in implementing AI and other advanced technologies. This will not only increase productivity and cost savings, but ultimately, it will better serve travelers with new products, personalization and more.

POSTED BY: Karli Barokas