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THE YEAR IN CORPORATE TRAVEL TECHNOLOGY

THE YEAR IN CORPORATE TRAVEL TECHNOLOGY

In an era when many travel management companies call themselves “technology companies,” virtually every travel software provider calls itself a “platform” and tech startups enter corporate travel at a breakneck pace, it is hard to overstate the impact technology is having on distribution, the traveler experience, supplier sourcing, data management and operations.

THE YEAR IN CORPORATE TRAVEL TECHNOLOGY

In an era when many travel management companies call themselves “technology companies,” virtually every travel software provider calls itself a “platform” and tech startups enter corporate travel at a breakneck pace, it is hard to overstate the impact technology is having on distribution, the traveler experience, supplier sourcing, data management and operations.

THE YEAR IN CORPORATE TRAVEL TECHNOLOGY

In an era when many travel management companies call themselves “technology companies,” virtually every travel software provider calls itself a “platform” and tech startups enter corporate travel at a breakneck pace, it is hard to overstate the impact technology is having on distribution, the traveler experience, supplier sourcing, data management and operations.

 
To assess major tech concepts and examine how they are applied within the corporate travel ecosystem, The Beat handpicked a few dozen experts attuned to trends in technology and travel to rate the coming relevance of seven computer science and tech fields. The impact on corporate travel during the next 12 months of each of those subjects—the API economy, blockchain, the internet of things, machine learning, natural language processing, robotic process automation and virtual reality—were rated by the experts on a scale from 0 (not at all impactful) to 100 (highly impactful).
 
The 36 experts include executives from TMCs, corporate travel tech operators, startups, venture capital and investment outfits and travel suppliers as well as travel buyers, consultants and others.
 
Among the findings: In corporate travel’s API economy, GDP is soaring. The industry is learning to love machine learning and other branches of artificial intelligence, including natural language processing and understanding. The robots have been here for a while, and they’re getting better, faster, smarter at mundane tasks. The internet of things is a thing, but how big a thing in corporate travel is debatable. Blockchain is buzzy and still budding. And virtual reality is a virtual bust—for now.
 
While each of these technology areas are assessed in discrete sections in this report, they do not exist in a vacuum in real-world applications. Take Amazon’s Echo device, through which several corporate travel providers have extended services: It is an internet-enabled speaker device (the internet of things); it relies on voice interactions via Alexa (natural language processing enhanced by machine learning); and it enables outside entities to build applications, or skills, within its ecosystem (the API economy).

THE API Economy

THE API Economy

An economy of sharing, transacting, repackaging and/or consuming digital services between software applications via application programming interfaces that typically are owned or operated by separate entities.

Application programming interfaces are everywhere, it seems, and corporate travel is no exception. “APIs are absolutely fundamental in the flow of information and services between travel suppliers and travelers, which at the end of the day is the business we are all in,” one mega TMC technology and product leader wrote in response to The Beat’s survey.

MACHINE LEARNING

MACHINE LEARNING

A field of artificial intelligence that uses statistical techniques to give computer systems the ability to “learn” (i.e., progressively improve performance on a specific task) from data, without being explicitly programmed.

Corporate travel and technology experts responding to The Beat’s survey are bullish on the application of machine learning in corporate travel. “There are a host of areas where the combination of machine learning and data science can facilitate advances,” wrote one respondent. “Recommendation engines, airfare and hotel price forecasting, intelligent travel assistants, optimized disruption management, customer support, tailored offers, UX personalization, sentiment analysis in social media, dynamic pricing and targeted offers.”

A field of artificial intelligence that uses statistical techniques to give computer systems the ability to “learn” (i.e., progressively improve performance on a specific task) from data, without being explicitly programmed.

robotic process automation

robotic process automation

A form of business process automation technology based on the notion of software robots or artificially intelligent workers.

"Automation is a trend that has been around for a while,” Sabre principal applications architect Dan Cohn said at the Global Business Travel Association convention in August. “We’ve been using robotics and software scripts for a long time.”

 
Many respondents to The Beat’s survey agreed. In corporate travel, TMCs in particular adeptly have applied RPA in their environments for a while, principally through applications in mid-office software from the likes of Cornerstone Information Systems and SAP Concur’s Compleat.

natural language processing

natural language processing

A subfield of computer science, information engineering and artificial intelligence concerned with interactions between computers and human languages, in particular how to program computers to process and analyze large amounts of natural language data.

Whether extended through voice channels like Amazon’s Alexa or text-based modes like SMS, Web chat or messaging platforms, bots that interact in natural language were all the talk this year.

 
On the traveler-facing side, several TMCs and tech providers have unleashed chatbots that enable natural language interactions to help travelers inquire about trips, ask about travel policy and even transact bookings.

A subfield of computer science, information engineering and artificial intelligence concerned with interactions between computers and human languages, in particular how to program computers to process and analyze large amounts of natural language data.

internet of things

internet of things

The interconnection via the internet of computing devices embedded in everyday objects, enabling them to send and receive data.

We already live in a world of connected things,” wrote one respondent. “Most of us have a phone and a computer, for example. But wearables, smart buildings, sensors in vehicles and communication between vehicles and travelers and brands: These are examples of broader ‘things’ connecting than we see today.”

 
IoT is most applicable to the traveler experience, according to several respondents. Smart luggage can help with bag tracking. Sensors and beacons at airports can deliver real-time wait times for security checkpoint lines. In the hospitality industry, IoT already lets guests use mobile devices to unlock room doors and control thermostats.

blockchain

blockchain

A blockchain is a growing list of records, called blocks, which are linked using cryptography. This decentralized and distributed digital ledger is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.

No other category assessed in this study elicited as much division as blockchain. Its impact score of 35 averages some very high scores from true believers and low scores from doubters.

 
Even if many respondents don’t see blockchain as being impactful on corporate travel in the next 12 months, the idea of a decentralized, immutable, virtually hacker-proof, permanent and distributed ledger has clear potential, several noted. They see utility in supplier inventory management, distribution, smart contracts that govern terms between suppliers and buyers, financial settlement, fulfillment, identity management and corporate payment.

A blockchain is a growing list of records, called blocks, which are linked using cryptography. This decentralized and distributed digital ledger is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.

virtual reality / augmented reality

virtual reality / augmented reality

An interactive computer-generated experience taking place within a simulated environment that incorporates auditory and visual feedback. While virtual reality is regarded as more immersive, augmented reality layers virtual information over a live camera feed.

Nope.” That was the entirety of one respondent’s view on the impact virtual and augmented reality will have on corporate travel in the next 12 months. This category netted the lowest aggregate impact score of all assessed. “For now, it’s a gimmick,” wrote one respondent.

 
That’s not to say it’s a total bust. There have been use cases and experimentation in travel. Some travel brands, including airlines and hotels, have used virtual reality to give clients and prospects, including travel buyers, an immersive view of, say, guest rooms or airplane seats. Virtual reality also has found a niche in consumer travel marketing, especially destination marketing. “VR/AR appears to be best for the aspirational elements of travel, which are largely reserved for leisure,” wrote one respondent.

METHODOLOGY

METHODOLOGY

The Beat in October and November 2018 invited a few dozen experts attuned to trends in technology and managed travel to complete an online survey. The Beat presented and defined seven major tech categories examined and asked respondents to rate each on a scale from 0 (not at all impactful) to 100 (highly impactful), based on the expected impact each would have on corporate travel in the next 12 months.

Survey respondents were asked to consider the potential impact of these tech fields on corporate travel distribution, including shopping, booking and settlement; sourcing and procurement; traveler experience; data management; and/or supplier and intermediary operations. The Impact Score is the average of all respondent ratings in each category.

The 36 respondents include travel e-commerce veterans, startup founders and CEOs, travel and tech consultants, system builders and engineers, data scientists, corporate travel technologists, venture capitalists, chief technology and/or information officers at travel management companies, airline digital and/or distribution execs as well as research, development and product leaders at travel technology and distribution companies.

The definitions presented to respondents and republished in this study for each category were adapted and/or lightly modified from such Creative Commons sources as Wikipedia.

PRODUCED BY
JAY BOEHMER
Editor-in-Chief
jboehmer@thebtngroup.com
LOUIS MAGLIARO
Senior Vice President/Group Publisher
lmagliaro@thebtngroup.com
ANTHONY CARNEVALE
Publisher
acarnevale@thebtngroup.com
MARIZA MOREIRA
Group Design Manager
COPYRIGHT © 2018 NORTHSTAR TRAVEL GROUP LLC

About The Beat

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