TRAVEL LAW FORUM 2018“Panel III Shared economy platforms – future trends”Marios Trivizas, 16 March 2018THL director, Deloitte Business Solutions SA
This document is part of an oral presentation not a complete record of the discussion
© 2018 Deloitte Touche Tohmatsu Limited
Slide 2 of 17
Introduction
Shared economy platforms
Sharing goods and services among individuals is not a new concept.
However technological advancement and the creation of online platforms has enabled sharing to be made in real time and easier than ever.
Although a major one, shared economy platforms is not the only tech disruption we have identified in tourism
Traditional players in the travel industry such as travel agents, tour operators, hotels, ground transportation providers, are seeing their business model challenged at its core.
Digital platforms have allowed individuals sharing their house or car easier than ever. New players are taking advantage of these technologies to build their own business model. Digital platforms themselves are growing massively capturing a huge market share eroding the typical barrier to entry, which is asset ownership.
Supporters of sharing economy argue that quality of rendered services is increased and/or prices reduced. New jobs are created and individuals are able to capture part of the incumbents market share allowing a better distribution of income.
Critics on the other hand argue that the sharing economy provides unfair competition and raise issues in terms of taxes paid, safety, job security and compliance.
Other technologies are also disrupting the traditional model used for travel: Internet of Things, Artificial intelligence, Voice technology, automation, even blockchain technology may change the future of travel.
One element though remains constant at the core of the travel industry which companies should never neglect: human interaction.
Marios TrivizasStrategy & Operations THL director
Introduction
Shared economy platforms
Tech trends from a THL perspective
© 2018 Deloitte Touche Tohmatsu Limited
Slide 3 of 17
How many do you recognize?
Examples of sharing economy
Introduction
Shared economy platforms
Tech trends from a THL perspective
© 2018 Deloitte Touche Tohmatsu Limited
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Introduction
Shared economy platforms
Tech trends from a THL perspective
© 2018 Deloitte Touche Tohmatsu Limited
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Our very own, SNCF
Introduction
Shared economy platforms
Tech trends from a THL perspective
© 2018 Deloitte Touche Tohmatsu Limited
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Introduction
Shared economy platforms
Tech trends from a THL perspective
© 2018 Deloitte Touche Tohmatsu Limited
Slide 7 of 17
(https://www.youtube.com/watch?v=KTQLulPUowE)
Ben’s journeys – The future of mobility
Introduction
Shared economy platforms
Tech trends from a THL perspective
© 2018 Deloitte Touche Tohmatsu Limited
Slide 8 of 17
Tech trends
From a Travel, Hospitality and Leisure (THL) industry perspective Introduction
Shared economy platforms
Tech trends from a THL perspective
© 2018 Deloitte Touche Tohmatsu Limited
Slide 9 of 17
Artificial Intelligence
Touted as the new electricity, artificialintelligence (AI) is the power behind many emerging technology platforms—from building smarter virtual assistants to techniques around big data.
Travel websites are “learning” to deliver more personalized results for travel planners. Chat platforms are helping suppliers provide better service. Machine learning is helping travel players make sense of volumes of unstructured data connected to their businesses—includingphotos, video, social network data, and natural language.
Near future:AI still has a long way to go. More may happen behind the scenes in2018 compared to what travelers may actually experience. Travelproviders and technology players continue to develop the technology and work out the links.
Digital disruption in tourism: Artificial intelligence
THL implementations:• Vehicle routing• Travel disruption management• Customer 360 view• Pattern recognition• Travel concierge• Fraud management
Introduction
Shared economy platforms
Tech trends from a THL perspective
© 2018 Deloitte Touche Tohmatsu Limited
Slide 10 of 17
Digital disruption in tourism: Internet of Things
THL implementations:
• Predictive maintenance• In room tech control (Kubic in ATH)• Smart cities/harbors• Increased productivity
Internet of Things
Imagine a connected airline seat that measuresa traveler’s anxiety, body temperature, and hydration level to provide better service, or a hotel room that automatically adjusts temperature to personal preference. Connected sensors, devices, and machines create a new form of dialogue with the physical world, enabling brands to “up” the experience.
While IoT brings huge implications for airlines,connected hotel rooms outfitted with smart home technology will continue to provide some of the biggest improvements to the travel experience in 2018.
Near future:
While dropping quickly, cost is still a big challenge, as are issues around cybersecurity. Risingregulatory climates around cybersecurity and IoT may present risks for IoT early adopters.
Introduction
Shared economy platforms
Tech trends from a THL perspective
PEOPLE ANALYTICS
Internet of Things (IoT)
The Internet of Everything combines things, processes and people with relevant
data
THINGSPROCESS
© 2018 Deloitte Touche Tohmatsu Limited
Slide 11 of 17
Digital disruption in tourism: Voice technology
THL implementations:
• In room voice assistants• Virtual travel agents• Virtual tour guides• New shopping experience
Voice technology
A close cousin of AI, voice interactions are already replacing screen time as adoption of digital home assistants rises. Traveler search-shop-buy behaviors may shift as consumers rely more on conversational exchanges to plan travel and interact with travel providers during their trips. 2018 was the first year a major hotel chain installed AI assistants in every room. Voice still has a lot of growing up to do.
Travel is complicated and natural language processing isn’t easy. But heavy investment may power huge leaps forward in 2018.
Near future:
Voice is likely to disrupt business travel distribution before leisure. Travel’s road warriors know whatthey want, and don’t need much information to book. It’s a good market for early iterations of voice-based travel booking.
Introduction
Shared economy platforms
Tech trends from a THL perspective
© 2018 Deloitte Touche Tohmatsu Limited
Slide 12 of 17
Digital disruption in tourism: Automation
THL implementations:
• Driverless transportation service across destinations
• Automated hotel processes• Media time
Automation
A mix of software and hardware platforms thatdigitize tasks and workflows based on pre-programmed rules, automation essentially takes humans out of the equation.
Robotics and process automation have severalfront and back-of-house use cases across the travel sectors—but ground transportation is poised to feel the greatest impact. Tenmillion driverless cars are estimated to be on the road by 2020, culminating in one of the greatest changes to the ground transportationindustry in recent history.
Near future:
Workforce automation is a rising issue in an industry that employs roughly 1 in 10 in the global workforce.There is opportunity for travel brands to approach automation from a reinvestment of talentperspective, rather than one of replacement.
Introduction
Shared economy platforms
Tech trends from a THL perspective
© 2018 Deloitte Touche Tohmatsu Limited
Slide 13 of 17
Digital disruption in tourism: Blockchain
THL implementations:
• Transaction platforms • Blockchain enabled loyalty
management platforms• Distributed cloud storage and
archival services• Smart contracts
Blockchain
The tech behind cryptocurrency is becomingmore than a buzzword in travel. Big players andstartups alike are looking to blockchain for solutions to industry pain points, including streamlining online distribution and reimagined loyalty programs. The technology also has implications around travel payments, settlement, and fraud.
While heavily impacting some industries such as banking, there is still some lingering speculation about the degree of disruptionblockchain will spur in travel.
Travelledger: aspiring to become bsp for non-air travel services based on Etherium blockchain tech
Near future:
Blockchain sits in the middle of being overhyped and revolutionary.
The technology may not put travel brands out of business, but may force some to adjust their business models.
Introduction
Shared economy platforms
Tech trends from a THL perspective
© 2018 Deloitte Touche Tohmatsu Limited
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Technologies alone will not give brands the tolls they need to succeed. In fact for travel suppliers in particular, too much focus on technology has the potential to create cold and robotic experiences and environments.
At its heart, travel is still very much a people-to-people experience. Technology must be leveraged to produce elevated, authentic experiences without losing sight of the human connection.
The future of the travel experience must be a seamless blend of talent and technology, where machines are tasked to do more of the machine work, freeing and empowering, humans to provide better service experiences, and more meaningful connections.
44% of guests
41%
26%
Top 3 reasons for
a positive stay
Friendly employees
Clean Rooms
Good Value
60%
80%
65%
Are friendly and attentive…
Proactively communicate…
Offer personalized experiences…
Satisfaction
Guests believe hotel teams are…
Despite all technological
advancements, human
engagement remains critical for
hotels. The future will not be either
people or technology – it will be
people + technology enabled by
insights.
Technology advancements are truly incredible but the human element will still ‘make or break’ the customers experience in tourism
Human Element
Introduction
Shared economy platforms
Tech trends from a THL perspective
© 2018 Deloitte Touche Tohmatsu Limited
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What appears to be happening
Time
Technology change
Rate
of
ch
an
ge
Business productivity
Gap in business
performance
potential
Introduction
Shared economy platforms
Tech trends from a THL perspective
© 2018 Deloitte Touche Tohmatsu Limited
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What is really happening
1970s Today
Technology
Individuals
Businesses
Public policy
Rate
of
ch
an
ge
Introduction
Shared economy platforms
Tech trends from a THL perspective
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