How Technology Is Transforming Travel Procurement
Digital transformation was a hot button issue in travel procurement even before the COVID-19 crisis flipped over all the tables and made a mess of everything. However, now we are emerging into the post-pandemic world, the process of digital transformation is accelerating significantly.
Thanks to the pandemic, people have become increasingly comfortable and confident using digital technology to manage many of their interactions and this naturally extends to the manner in which they access travel services, book trips, and the customer experience throughout the entire process – including, exploring, booking, travelling, returning, and post-vacation.
There is therefore an enormous amount of technology emerging which is helping business and leisure travelers facilitate these journeys and procure incredible experiences at home or abroad. These are just a few of our favorites you’ll likely be seeing in a procurement process near you.
Predictive Technologies
We are seeing a meteoric rise in the number of technologies which are able to leverage algorithms and big data to give procurement teams new insights into the entire travel buying process.
"Disruptive, ‘predictive’ technologies are currently on the rise,” writes Booking.com in its new eBook on the topic. "These are software solutions that will give procurement teams unprecedented oversight and control over their companies’ travel spending. Among the advantages will be a whole new level of user-friendliness, as technologies help business travelers manage their travel plans and steer them towards better choices. Most excitingly, these technologies will open up new roles for procurement managers, allowing them to move into a more strategic, consultative position within their organizations.”
Cybersecurity and Privacy
As more of the travel procurement process moves into digital spaces, there exists an increased opportunity for cybercriminals to illegitimately access data and leverage breaches for ransom or other nefarious purposes. To meet this new arena of crime, we are seeing data protection and privacy regulations becoming increasingly draconian and bringing with them the potential for profound consequences to those organizations which fail to protect customer information.
Collaboration with IT departments and the deploying of innovative technologies designed to fight these breaches will therefore become critical to those travel brands which are looking to serve procurement teams through digital means.
This is especially salient for the travel business as travelers moving through different countries, with varying regulatory environments, and an increased reliance on potential unsecure WiFi hotspots makes customers in this sector particularly vulnerable to attacks for which the consequences can be many and varied.
Digital Ledger Technology
As our reliance on data continues to increase, the need to be able to create an immutable ledger which maps the lineage of that data also grows in kind.
Blockchain’s decentralized public ledger system is obviously the most widely discussed of these technologies. However, the relatively few successful use cases associated with blockchain means there are many alternatives which are capable of producing better results, more reliably, and with lower costs. These include cloud storage, centralized ledgers and databases, decentralized storage and databases, and other distributed ledger technologies.
"Despite the promise, blockchain adoption beyond proof of concept has been slow,” reports TechTarget. "One big issue has been the relatively slow performance of early blockchain technologies. The first blockchain networks were limited to a few transactions per second and could take up to an hour to guarantee the authenticity of transactions. Several alternatives to blockchain that provide better performance have emerged. Businesses may also want to consider them to reduce costs, simplify development and reduce integration challenges.”
Smartphone Apps
When it comes to managing the finer details of any travel experience, we are seeing an increasing number of brands using smartphone technology to simplify the process. Gone are many of the manual forms, documents, and itineraries we are used to seeing in the hands of travelers, with many now being managed in a single, portable, digital solution.
With permanently online connected devices holding all the necessary paperwork for a trip, customer don’t simply have all the documentation they will need in the palm of their hand, but procurement teams can instantly update information if and when it becomes available. If a plane or train is delayed for any reason, smartphone technology can instantly update every step of the journey going forward taking the new timeframe into account – removing much of the stress from unforeseen travel disruptions.
Final Thoughts
Digital technology has a key role to play in the future of travel procurement. From predictive spend management and cybersecurity to digital ledger data lineage and smartphone powered customer experience improvements, these technologies are making the business of purchasing travel more streamlined and effective than ever.
Technological disruption in the travel procurement process is sure to be a hot topic at ProcureCon Travel 2023, being held in April at the Hyatt Regency Indian Wells, Palm Springs, CA.
Download the agenda today for more information and insights.