Disruption in the travel industry was never so glaring as it was in 2020 when the whole world shut down because of Covid. According to the World Tourism and Travel Council’s Economic Impact Report, the travel industry suffered a whopping $4.5 trillion dollar loss in income.
Disruption in the travel industry
With Covid restrictions being lifted and the pandemic losing steam, more people are traveling. After two years of lockdowns travelers are engaging in “revenge travel”. Even with the soaring costs of gas prices, hotels, airplane tickets, etc. people are itching to go. I’ve seen it myself as I travel a lot for business. I just took my first vacation in 17 years a few weeks ago and spent 2 weeks in Ireland. So I got to see firsthand how many people are also making up for lost time.
But there is also a lot of disruption in the travel industry. One thing is flight delays and cancellations. My flight to NY was delayed by over 3 hours, meaning that 60 of us on the plane missed our European connections. Here are some thoughts about disruption in the travel industry from the experts who deal with it every day:
The price tag – Squeezed vacation funds
Airlines and travel management companies (TMCs) incur more expenses in response to a rise in the number of calls they get from both travel agents and passengers. Additional operational and time expenses are incurred by TMCs as a result of the late distribution, inefficient delivery, and non-standard conditions of travel waivers.
In addition to the higher costs associated with more phone calls, interruptions also contribute to the operational and labor expenses of airlines and airport
Because the canceled flight in one place was scheduled to provide the aircraft for the departure in another, disruption incidents can spread like a virus. The results of these “viral” delays in the system have been felt by all of us. But have travel management companies, airline operations centers, or corporate travel managers included in the unseen fees? Other, less obvious expenses stemming from interruption include:
Failure to attend important business meetings might result in lost time and money.
Unanticipated costs for things like hotels, restaurants, and vehicle rentals.
Owner of C&H Essentials
Time lag – different types of delays
Let’s examine the many types of delays and how their names might confuse us about the severity of an inconvenience. According to the statistics compiled by the United States Bureau of Transportation Statistics, “air carrier delays” account for 50% of all delays, while “severe weather” accounts for just 8%. When we dig further, however, we discover that these estimates may not be entirely reliable due to the inclusion of outliers like late-arriving planes. But why was it so late in coming? The weather likely had a role. Air traffic control weather delays are another kind; they occur when planes continue to fly but experience growing delays. As an example, San Francisco’s notorious fog often prevents flights from taking off or landing at SFO. This is an air traffic control hold due to bad weather.
Travel industry in flux
There’s no question that the travel industry is in a state of flux. With the rise of the sharing economy and the proliferation of new technologies, the way we travel is changing rapidly. And while there are plenty of challenges that come with these changes, there are also some exciting new opportunities for businesses and travelers alike.Here are some of the most significant disruptions that are currently shaking up the travel industry:
The rise of the sharing economy
The sharing economy is one of the most significant disruptions that is currently taking place in the travel industry. With the advent of companies like Airbnb and Uber, travelers are increasingly turning to the sharing economy for their travel needs. This shift is having a major impact on the traditional hotel and taxi industries, as well as on the way that travelers interact with each other. For businesses, the challenge will be to find ways to adapt to this new reality, while still providing the services and amenities that travelers have come to expect.
The proliferation of new technologies
Another major disruption that is currently underway in the travel industry is the proliferation of new technologies. From mobile apps to virtual reality, there are a number of new technologies that are changing the way we travel. For businesses, the challenge will be to find ways to use these new technologies to improve the traveler experience. For travelers, the challenge will be to keep up with all of the new options and to find the ones that best suit their needs.
The changing nature of work
The changing nature of work is another major disruption that is currently taking place in the travel industry. With the rise of the gig economy, more and more people are working remotely. This shift is having a major impact on the way that businesses operate and on the way that travelers interact with each other. For businesses, the challenge will be to find ways to accommodate the needs of remote workers. For travelers, the challenge will be to find ways to stay connected while on the road.
The rise of the millennial traveler
The rise of the millennial traveler is another major disruption that is currently taking place in the travel industry. Millennials are a different breed of traveler than their predecessors. They’re more likely to want unique experiences, they’re more likely to be digital natives, and they’re more likely to be price-sensitive. For businesses, the challenge will be to find ways to appeal to this new generation of travelers. For travelers, the challenge will be to find ways to connect with each other and to find the best deals on travel.
The changing role of travel agents
The changing role of travel agents is another major disruption that is currently taking place in the travel industry. With the rise of the internet, travelers are increasingly turning to online booking platforms to plan their trips. This shift is having a major impact on the traditional travel agent industry. For businesses, the challenge will be to find ways to adapt to this new reality. For travelers, the challenge will be to find the best deals on travel and to work with agents who understand their needs. Matt James
The travel and tourism industry has been one of the worst-hit sectors due to the outbreak of the COVID-19 pandemic. The global lockdown has forced people to cancel their travel plans, which in turn has resulted in a sharp decline in the demand for travel services. This has had a ripple effect on the entire travel and tourism ecosystem, right from airlines and hotels to tour operators and travel agents.
The COVID-19 pandemic has brought about a paradigm shift in the way we travel. With social distancing becoming the new norm, travelers are now preferring destinations that offer more space and fewer crowds. This is likely to boost the demand for rural and remote tourism destinations. Similarly, there will be a growing preference for private transportation options such as cars and motorcycles over public transport.
There is also the rise of ride-sharing services like Uber and Lyft. These services allow people to hail rides from their smartphones, making it easier and more convenient to get around cities.
Another key trend that is likely to emerge in the post-pandemic world is the rise of digital nomads. With more and more people working remotely, there will be a growing demand for travel destinations that offer good internet connectivity and infrastructure. This could lead to a boom in the popularity of countries such as Estonia, which has already been dubbed the ‘world’s most digital society.
The COVID-19 pandemic has also exposed the vulnerabilities of the traditional travel industry business model. With people now preferring to book their own travel plans online, there is a need for travel companies to rethink their approach and move towards a more digitized and personalized model.
In the post-pandemic world, the travel industry will need to redefine itself in order to survive and thrive. Those companies that are able to adapt to the new reality will be the ones that succeed in the long run.
Senior Travel Editor
Future of disruption in the travel industry
According to Heathrow airport’s CEO, the delays and issues at airports will probably be around until the end of 2023. Airlines and airports are scrambling to hire more staff, but it will take time for things to catch up. If you are planning on traveling, just know that things won’t be back to normal for a while. Allow plenty of time and money for anything that may disrupt your travel plans.