A recent market impact report titled “Pivoting Toward the New Frontier in Travel and Hospitality” sheds light on the challenges and opportunities faced by the industry in 2024 and beyond. The report, a collaboration between WNS (Holdings) Limited and HFS Research, provides valuable insights based on a survey of over 300 enterprise leaders across airlines, airports, hotels, and Online Travel Agencies (OTAs).
Cost containment and efficiency remain a top priority for more than 50 percent of firms surveyed. However, a significant finding reveals that one-fifth of all firms are assigning a greater priority to becoming innovation-driven. This highlights the evolving mindset of industry leaders as they seek to balance cost savings with the need for innovation.
The report also reveals the shifting focus of digital transformation within the industry. Currently, firms primarily concentrate on functional transformation. However, there is an expected shift towards ecosystem development in the next two years. This indicates the industry’s recognition of the importance of collaboration and ecosystem building in unlocking new value sources.
Keeping up with customer expectations and navigating digital disruption are identified as the biggest challenges faced by travel and hospitality firms. However, encouragingly, 72 percent of these firms believe that they have reached a moderate to advanced level of digital maturity.
Investments in enabling technologies are a priority for the industry, with hybrid or multi-cloud solutions being the top choice for 52 percent of firms. Other significant investments include ERP systems (50 percent) and Robotic Process Automation (44 percent).
The report also highlights the increasing importance of partnerships and sustainability initiatives in driving ecosystem growth. 58 percent of firms express a need for consulting expertise, while 51 percent seek tailored tech solutions to address issues such as carbon footprint reduction. Additionally, 45 percent require assistance in measuring and benchmarking their ESG initiatives.
In conclusion, the travel and hospitality industry faces the dual challenge of cutting costs and driving innovation. The report’s findings act as a compass for industry leaders, providing guidance for building resilient, future-ready enterprises. Embracing emerging technologies and fostering strategic partnerships will be instrumental in shaping a customer-centric and sustainable future for the industry.
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