A POST-DIGITAL TRIP OF A LIFETIME TECHNOLOGY VISION 2019 Travel companies have embarked on a bold and somewhat mystifying trip to a new world. It’s a world where passengers and guests communicate their demands instantly and expect gratification in real-time.

2 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 Where interactions Digital technologies have taken travel companies halfway there. Now, to meet are highly personalized people where they are, at moments of and ultra-convenient. their choosing, travel companies need Where travel experiences to embrace “post-digital” technologies. Distributed ledgers, Artificial Intelligence are not isolated events, (AI), Extended Reality and even Quantum but part of a connected Computing (DARQ) will travel journey, delivered by companies to their new destination. a hyper-connected Here’s how. ecosystem of providers.

3 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 STUMBLING IN THE DARQ

Many travel companies now consider themselves to be post-digital.

4 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 In fact, 92 percent of industry executives It’s easy to understand why passengers claim their organizations are already and guests are not convinced that experimenting with one or more of the travel companies are fully embracing DARQ technologies. But experimentation new technologies. The travel experience will not distinguish a post-digital remains largely unchanged. Offerings company. Scalable solutions that benefit are complex and difficult to navigate customers will. And in this regard, via retail-like channels they now favor. many travel companies still fall short. Waiting in lines is still the norm, not the exception. The same information is requested over and over.

Travel companies that stand out in the 65% coming years will be those that adopt new technologies to transform operations of travel executives believe the and experiences and create entirely combination of DARQ technologies new travel realities. will have a huge impact on their businesses in the next three years. For many, this is wishful thinking.

5 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 OPERATIONS RE-ENGINEERED

Some travel companies AI, along with machine learning • Enable multiple players—from , algorithms, can help airlines optimize online travel platforms and card are adopting a pragmatic crew schedules, routes and fuel providers to , government stance and looking to consumption.1 AI-based prediction agencies, , car rental agencies use new technologies models, coupled with real-time telematics and more—to accelerate the complex data, can enable rental car companies data reconciliation process that to strengthen their to efficiently manage utilization and happens behind the scenes of core businesses. maintenance across their fleets.2 every touch point of every trip. Distributed ledger technologies also play • Improve passenger safety by ensuring a critical role. They, for example, can: that parts procured for maintenance of ships and airplanes are legitimate. • Help hospitality companies create An immutable record that traces the smart contracts that automatically history of every part can take the execute steps in an event-planning practice of maintenance, safety process and authenticate everything and security to new levels. from banquet suppliers to wedding cake ingredients.

6 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 CONVENIENCE RE-DEFINED

Driving operational • Carnival Cruise Lines uses wearable These companies look at DARQ technologies, tech-enabled opportunities from the perspective of performance and efficiency and 3-D wayfinding kiosks to improve the customer. When they make their is certainly important for on-ship experiences.3 technology-investment decisions, they any travel organization. do so with an eye toward improving the • Munich recently collaborated customer experience and strengthening with Lufthansa to test a humanoid But it barely scratches the surface the customer relationship, which robot that provides passengers with of what DARQ technologies can enable. translates into greater lifetime value. information pertaining to their gates Some companies already recognize and amenities in Terminal 2.4 that they won’t achieve the full value potential of DARQ-enabled solutions • InterContinental Hotels Group uses AI- if customers don’t benefit from them. enabled voice-control technologies to create “smart rooms” that allow guests to create the environment they want, based on their mood or time of day.5

7 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 TRAVEL RE-IMAGINED

It’s not too early for travel companies to think beyond DARQ-enabled convenience.

8 TRAVEL TO THE POST-DIGITAL FUTURE STARTS HERE TRAVEL TECHNOLOGY VISION 2019 New technologies—particularly extended Marriott, through its VRoom Service reality—will one day turn the industry program, enables guests to indulge on its head. Consider the delivery of in immersive experiences in different 22% virtual experiences that are as good as, areas of the world—without having to if not better than, the real thing. Virtual leave their room.8 Other hotels of travel executives believe XR is closer than many realize. are experimenting with virtualized solutions will have the greatest In fact, technology companies are event-planning solutions, which share impact on their organizations. Only 18% of executives from already selling virtual and lifelike tours customized event spaces with meeting other industries feel the same. of the Grand Canyon, Mt. Everest… organizers or wedding parties.9 There’s no even the frontiers of space.6 reason airlines can’t join the virtual party. Rather than shuttling business travelers Traditional travel companies are making to physical meetings, they can use XR their moves, too. Royal Caribbean technologies to bring virtual meeting has launched its first “smart ship” that experiences to their customers. In this offers, among other things, robotic scenario, lounges at airports 7 bartenders and virtual balconies. might become virtual meeting hubs.

9 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 “As people’s lives become more and CUSTOMERS more personalized through technology, RE-CONSIDERED creating a world with a multiverse of realities and moments, companies must reinvent their organizations to capture those opportunities as they come. That means viewing each moment as if it is an individual market—a momentary market. Miss the moment, and there is no second chance.”

Accenture Technology Vision 2019 Trend: MyMarkets

10 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 To successfully capture momentary The use of technology is now so markets, travel companies must pervasive and integrated into customers’ understand their customers—their everyday lives that they, knowingly 83% preferences, behaviors, expectations or not, leave “fingerprints” after and even influencers—as never before. each digital interaction. Three in four of travel executives believe The digital technologies of the past (77 percent) travel executives believe digital identities will give them decade, including social media and digital demographics will help them a new and powerful way to identify market opportunities analytics, certainly provided valuable better understand the next generation for unmet customer needs. insights. Moving forward, customers’ of travelers and guests. Even more digital demographics will provide the (79 percent) believe digital demographics next wave of customer understanding. will change how they deliver products and services. Best Western has used digital demographics to customize its messages to Android and Apple users, leading to a 143 percent increase in app downloads.10

11 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 WHERE WILL THE FUTURE OF TRAVEL TAKE YOU?

With digital and post- There is no single path for all travel companies to follow. But there is a digital technologies, travel right path for each. That path is shaped companies have the chance by what each company wants to achieve to not only change their and the difference it wants to make in the industry. We believe three business and operating opportunities hold particular potential. models, but also transform what travel means in a post-digital world.

12 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 Currently, the travel process— OPPORTUNITY 1 from booking to arrival—is rife with BREAKING inefficiencies. It doesn’t have to be this way. New technologies can streamline BARRIERS travel and make passenger and guest experiences more convenient.

13 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 • United Airlines enables hands-free For passengers, the service speeds up The solution is centered around the check-in with a new Amazon Alexa skill.11 the check-in process and also makes travelers, enabling them to be active the time they spend at the airport less partners in security efforts—while retaining • NH Hotel Group has introduced stressful.16 control over what, when and with whom a FASTPASS portal and mobile app they share their information (see sidebar). that enables guests to check in, choose • Hyatt Hotels, in partnership their room and check out in seconds.12 with Google, is piloting a real-time While initially focused on the aviation translation technology to enable industry, there is no reason KTDI could • Delta Airlines is applying facial- communications between hotel not be extended to other industry partners recognition technologies to accelerate staff and guests in 27 languages.17 that are present within the travel continuum, 13 self-service bag-drops at select airports. including hotels, rental companies and There are even bigger opportunities other service providers. • British Airways is using biometrics to on the horizon, consider the Known speed boarding at a growing number Traveller Digital Identity (KTDI), a global 14 of airports. Royal Caribbean Cruises collaboration between public and private is deploying similar facial recognition sector organizations that trailblazes technologies to reduce the time needed a future-oriented approach to travel.18 15 29% to board a ship from 90 minutes to 10. The KTDI is based on decentralized digital identity, which uses cryptography, of airports are planning to implement • Japan Airlines is using AI applications, blockchain and emerging international some form of passenger identity including voice recognition, to help 19 standards to enable individuals to management programs by 2020. agents at international check-in self-manage their identities in order counters answer passenger questions. to cross international borders.

14 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 ON THE GO WITH DIGITAL IDENTITIES

KTDI allows travelers to manage all components For Border Management Agencies, the advanced of their identity in a digital format. They are sharing of information enables positive identification able to receive attestations (issued by trusted and control of passengers, as well as biometric entities, such as government agencies crossing at border checkpoints, which supports or border authorities), which are then stored risk-based border management. to their devices and selectively disclosed, For Airlines, KTDI enables the identification and with informed consent, to other organizations control of passengers, resulting in more effective in order to move more seamlessly through processes, as well as biometric boarding. the travel continuum. For Airports, enrollment based on digital identity For Travelers, KTDI provides an improved prior to arrival in the airport streamlines the flow experience by removing points of friction of passengers while reducing the infrastructure within the airport and eliminating the need to footprint within the airport. present physical documents at checkpoints.

15 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 “With every business embracing the OPPORTUNITY 2 importance of digital transformation, TAMING companies need to look toward their next opportunity for differentiation. UNCERTAINTY Internally, this means preparing the organization to be a truly agile company.”

Accenture Technology Vision 2019 Trend: MyMarkets

16 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 Travel companies operate Advances in AI and big data management Air Canada, for example, is using AI and analytics—along with the emergence to make better sense of flight data to in an environment of of 5G cellular mobile communications, predict the maintenance requirements perpetual uncertainty. which promise to reduce latency, boost of components before a repair is needed. system capacity and enable data transfers It can then schedule the repair when the There is the unpredictability of consumer from a massive number of connected plane is less active, thereby minimizing behaviors and preferences, as well devices—are poised to help travel unexpected downtime—and costs as uncertainties related to fuel costs, companies gain an upper hand. Forward- associated with maintenance-related flight regulations, geo-political volatility and thinking travel companies are already delays and cancellations.20 Accenture weather—all of which can disrupt travel unlocking the power of historical data, has teamed with Salesforce® to create an operations significantly. Clearly, travel applying AI and machine learning to interactive, AI and voice solution to enable companies that can tame uncertainty, predict future events or behaviors, and real-time personalization for the hospitality predict change accurately, and manage building the ecosystems and architectures industry. The solution draws data from a disruption effectively would achieve to respond to those signals and insights in variety of sources to predict preferences a competitive advantage. real-time and faster than the competition. and create experiences that keep guests coming back for more.21

17 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 As people’s lives become more OPPORTUNITY 3 enmeshed with technology, unique CREATING opportunities are arising for companies to deliver a new product or service GLOBAL —not just customized for specific MARKETPLACES customers, but for their needs OF ONE at a specific point in time.

18 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 DARQ Technologies Increasingly, they will move away from Finally, it will require travel companies delivering a set of bespoke products and to transition from a global distribution make it possible for travel services to building platform marketplaces system to a system that provides a more companies to establish through which they and their partners traditional retail experience—enabling these momentary markets. can deliver more to travelers than any passengers and hotel guests to pay one of them can on their own. for services they find valuable. AI enables real-time travel experiences This will not be easy. Creating a platform- that put travelers at the center. IoT- driven business model for new products enabled distributed ledgers and advanced and services will require a coherent analytics pave the way to trust-based 87% platform strategy, as well as a plan relationships. And technology platforms for generating (and sharing) revenue. of travel executives already see and APIs allow multiple parties to It will require a special focus on ecosystem security as vital to their connect and deliver a comprehensive ecosystem security—something that long-term resilience. set of services. This is important since 87 percent of travel executives already most companies won’t be able to capture see as vital to their long-term resilience. momentary markets by themselves.

19 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 The transition to interoperable order This is especially true in the current Nearly 90% of travel management systems or marketplaces environment of increasing industry executives believe is now possible, thanks to distributed consolidation. Airlines, for example, will ledgers, which eliminate the need for find it much easier to merge operations the combination of intermediaries. But it will take time— with other carriers if such an interoperable customization and possibly 10 years or longer for them to marketplace platform is in place. real-time delivery be fully established. That lengthy time represents the next horizon should not diminish the urgency big wave of competitive with which travel companies need to act. It is likely that a number of players— advantage. Already, current intermediaries, airlines, online 41% are prioritizing travel agents, new market entrants and both equally. others—will soon be looking to establish marketplace platforms that others want to join. The winner of the platform wars stands to gain a tremendous advantage.

20 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 A PLATFORM FOR AGILITY AND GROWTH

Accenture led on a program to enhance services offered to interline travelers, including a new digital platform to which the individual member carriers can connect. This will allow passengers to benefit from connected digital and mobile services like seat reservations, flight amenities and tracking, no matter which member airline they are flying on. The platform helps Star Alliance achieve its strategic goal: to deepen operational integration and collaboration among member carriers, and redefine its role as a digital integration enabler for them.22

21 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 Travel companies will have plenty of THE POST-DIGITAL opportunity in the next few years to TRANSITION apply new technologies to improve the operational performance in core areas STARTS NOW of their business, extend existing services to new customers and markets, or even launch new business models to tap new revenue streams.

22 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 Regardless of the strategy they At the same time, they are carefully pursue, forward-thinking companies are assessing the competitive landscape. preparing now for the transformations They recognize that their peers are also that lie ahead. They are: making moves to compete and win in the post-digital world. Further, they are Checking in mindful that the companies that may Travel companies are surveying the disrupt their business may emerge technology landscape, identifying the from ancillary sectors or even outside new tools and applications that have the the industry entirely. It’s not too early potential to change their business, and to engage these potential competitors experimenting with proofs of concepts to as collaborators working together further develop their understanding of the to create better, seamless and more technology’s future value and limitations. relevant experiences.

23 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 Getting their sea legs Preparing for takeoff But centers of excellence and training programs won’t, on their own, take travel In a post-digital world, travel companies Travel companies are among the most companies to their final destination. will need new skills and new roles to innovative in the world. Many have What’s needed is an ability to scale new navigate the way forward. Data scientists already established innovation centers ideas and value propositions. Winning will be in high demand. But so will futurists, or incubators for new ideas. Etihad companies will create an end-to-end storytellers, and “hypotheticalists” from Airways, for example, has recently strategy that is designed by purpose outside industries or talent pools. These established an in-house AI Academy and efficiently moves innovations from individuals will not only be skilled in to provide all employees access to AI ideation to pilot to minimum viable interpreting the data and insights that new training and establish a culture of AI product to scale. technologies make available, but also be literacy across the organization.23 Marriott able to quickly develop what-if scenarios Hotels teamed with Accenture to develop and prepare the organization for any an innovation lab and a travel experience future use of technology. A culture of incubator, which aims to identify and 49% experimentation and a fast-fail mindset support new startups that are poised to will be key to achieving the competitive deliver game-changing innovations for of travel executives believe the agility that the post-digital age requires. the industry.24 Companies like Etihad majority of their workforces will and Marriott are ahead of the curve. move into new roles because of new technologies in the next three years.

24 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 AND WE’RE OFF!

New technologies are ushering in a new world of travel. It’s a world where travel barriers are minimized, customer conveniences are optimized, and global marketplaces are formed to deliver passengers and guests a new range of personalized, on-demand experiences. Winners are setting their course to this new reality today. Where will you go?

25 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 REFERENCES

1. “7 Ways Airlines Use Artificial Intelligence 9. Accenture experience. 18. “The known traveler: Unlocking the and Data Science to Improve Operations,” potential of digital identity for secure and Altexsoft, July 10, 2018. 10. Nikki Gilliland, “How six travel & hospitality brands seamless travel,” World Economic Forum (in use personalisation to enhance the customer collaboration with Accenture), January 2018. 2. Israel Duanis, “5 Ways AI Is Revolutionizing experience,” econsultancy, June 26, 2017. the Car Rental Industry,” Auto Rental News, 19. “The Airport Automated Biometric Facilitation March 11, 2019. 11. Kumba Sennaar, “How the 4 Largest Airlines Report: From Curb to ,” Acuity Market Use Artificial Intelligence,” Emerj Artificial Intelligence, 2018. 3. Accenture and Carnival: Redefining the Intelligence Research, May 17, 2019. Cruise Experience: https://www.youtube. 20. “Air Canada introduces Artificial Intelligence com/watch?v=hjZCmQxophQ 12. https://www.nh-hotels.com/experience/fast-pass Labs to improve operations and customer 13. Sennaar, 2019. experience,” Future Travel Experience, 4. “Munich Airport and Lufthansa to test May 2019. humanoid robot,” Airport Technology, February 16, 2018. 14. Sean O’Kane, “British Airways brings its biometric identification gates to three more 21. Accenture experience. 5. Michal Christine Escobar, ”InterContinental US airports,” The Verge, March 9, 2018. 22. Ibid. Hotels & launches AI Smart Rooms in Greater China,” Hospitality Technology, 15. Bernard Marr, “AI On Cruise Ships: The 23. “Etihad partners with Microsoft to launch July 12, 2018. Fascinating Ways Royal Caribbean Uses Facial first AI Academy,” Future Travel Experience, Recognition And Machine Vision,” Forbes, February 2019. 6. Andy O’Donnell, “8 Virtual Reality Travel May 10, 2019. Experiences That Will Blow Your Mind,” 24. Isabella Alimonti, “Interview: Inside Marriott’s Lifewire, June 16, 2019. 16. Accenture (Press Release), “JAL Works with Hotel Innovation Strategy,” PSFK, undated. Accenture to Pilot Artificial Intelligence- Enhanced Airport Service,” March 12, 2019. 7. Peter High, “Royal Caribbean CIO Sets Sail For Note Digital Innovation,” Forbes, February 14, 2017. 17. Hyatt Hotels Corporation (Press Release), Unless otherwise stated, the statistics in this point of 8. “How Virtual Reality Is Revolutionizing the “Hyatt Announces Participation in Google view represents Travel and Hospitality respondents Hotel Industry,” Micrometrics, 2019. Assistant Pilot,” January 8, 2019. in the survey report “Accenture Tech Vision 2019.”

26 A POST-DIGITAL TRIP OF A LIFETIME TRAVEL TECHNOLOGY VISION 2019 Contact the authors About Accenture About the research Robert Zippel Accenture is a leading global professional services Each year, the Accenture Technology Vision team Managing Director – Technology Consulting company, providing a broad range of services and partners with Accenture Research to pinpoint Global Technology Lead for Airline, solutions in strategy, consulting, digital, technology the emerging IT developments that will have the Hospitality & Travel and operations. Combining unmatched experience greatest impact on organizations in the coming [email protected] and specialized skills across more than 40 industries years. In 2019, the process included a global and all business functions—underpinned by the survey of 6,672 business and IT leaders—including Michael J. Robinson world’s largest delivery network—Accenture works 166 travel executives in 13 countries. This report’s Managing Director – Technology Consulting at the intersection of business and technology to findings are based on analyses of their responses. [email protected] help clients improve their performance and create sustainable value for their stakeholders. With 482,000 This document makes descriptive reference to trademarks Anshul Gupta that may be owned by others. The use of such trademarks Senior Manager – Technology people serving clients in more than 120 countries, herein is not an assertion of ownership of such trademarks Accenture drives innovation to improve the way the by Accenture and is not intended to represent or imply the Industry Lead for Airline, Hospitality & Travel existence of an association between Accenture and the lawful [email protected] world works and lives. Visit us at www.accenture.com. owners of such trademarks. Information regarding third- party products, services and organizations was obtained from publicly available sources, and Accenture cannot confirm Theo Forbath Stay connected the accuracy or reliability of such sources or information. Its Managing Director - Technology Advisory inclusion does not imply an endorsement by or of any third @AccentureConslt party. The views and opinions in this article should not be Products Lead viewed as professional advice with respect to your business. [email protected] @AccentureTravel

Accenture Consulting Contributor Accenture Travel Sreejith Sreedharan Senior Principal – Thought Leadership Research [email protected]

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