Introduction
By Mike Coletta, Manager of Research and Innovation
“Uncertainty” may be the one word that best captures the continued disruption we’ve experienced over the past few years, from the pandemic to extreme weather events, inflation, high interest rates and geopolitical tensions. In unsettled times, a deeper understanding of important trends becomes all the more critical. While uncertainty in the world may be increasing, it’s clear that several things in travel are certain:
- Travel demand is resilient, having shown that it can and will bounce back from even the direst circumstances.
- More than ever, travel businesses that don’t embrace emerging technologies are on a path toward obsolescence.
If 2023 was the year that generative artificial intelligence (AI) grabbed all the headlines, 2024 will be the year that companies start operationalizing it. AI has transformed from something esoteric into something nearly everyone has heard of, and every company needs to embrace. And while generative AI may have seemed like the only tech story of late, there are plenty of other developments in travel and technology that will influence how travel businesses operate in the coming years.
Each year, Phocuswright’s expert analysts identify the technology and innovation trends that will significantly influence travel distribution and the wider industry in the coming year and beyond. In 2024, of course 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.
Coming soon: Individual reports on each of the six trends featured in this overview. Check phocuswright.com for updates.
This year’s World Economic Forum conference in Davos, Switzerland convened under the theme of “Rebuilding Trust”, citing the need to address “increasing division and uncertainty that continue to destabilize the world.” While this theme may refer primarily to the political and macroeconomic environment, trust is a crucial theme of ever-increasing importance in travel. Consider these questions:
- Should travel companies trust generative AI to help inform their business decisions?
- Can generative AI companies and platforms be trusted with proprietary business data?
- With rapid advances in digital currency, can travel businesses trust that their financial and payment solutions will continue to be secure, efficient and reliable?
- Do travelers trust the recommendations that generative AI gives them?
- Are travelers willing to hand over their personally identifiable information in exchange for trip personalization?
- Given that what’s good for the environment is not always good for business, can travelers trust the industry to do the right thing when it comes to sustainability?
- Do travelers trust the authenticity of the reviews and other content that suppliers and intermediaries feature on their websites?
Travel can be a powerful force for good, and we can all do our part to rebuild trust where needed, whether between companies and customers, between nations, or between humans and computers. Generative AI has its share of problems that engender a lack of trust, from bias to hallucinations and copyright infringement. Indeed, all nascent technologies struggle with trust-related issues as they make the journey from marginal to mainstream. Keeping abreast of the latest innovations is the bedrock upon which we can understand how to effectively leverage new technologies while establishing and enhancing trust within our ecosystems.
The full report features brief introductions to the six Travel Innovation and Technology Trends that Phocuswright will cover in detail in 2024:
And stay tuned for individual reports on each of the six trends featured in this preview.
