{"id":72774,"date":"2017-12-08T00:00:00","date_gmt":"2017-12-08T00:00:00","guid":{"rendered":"https:\/\/mybusinessfuture.com\/isg-reveals-why-airlines-and-hotels-must-modernize-their-services\/"},"modified":"2026-04-01T18:05:17","modified_gmt":"2026-04-01T18:05:17","slug":"isg-reveals-why-airlines-and-hotels-must-modernize-their-services","status":"publish","type":"post","link":"https:\/\/mybusinessfuture.com\/en\/isg-reveals-why-airlines-and-hotels-must-modernize-their-services\/","title":{"rendered":"ISG reveals: Why airlines and hotels must modernize their services"},"content":{"rendered":"

[vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” text_align=”left” background_animation=”none”][vc_column css=”.vc_custom_1458119880711{padding-right: 30px !important;}”][vc_row_inner row_type=”row” type=”full_width” use_row_as_full_screen_section_slide=”no” text_align=”left” css_animation=””][vc_column_inner][vc_column_text]The travel industry experiences a constant upstream. In 2016, 3.8 billion people travelled by plane, and 2017 will reach an even higher number. This proves what should already be clear: Traveling is no longer exclusive for privileged people. Read in this article how airlines and hotels have to adjust to the new target groups.<\/strong>[\/vc_column_text][vc_empty_space height=”30″][vc_column_text]While traveling seems to be mainly independent from digitalization at a first glance, various trends connected with digitalization such as the ubiquity of smartphones in customers’ daily lives and the emergence of new services such as ride-sharing change how customers interact and spend money in the travel and hospitality industry.[\/vc_column_text][vc_empty_space height=”25″][vc_column_text]<\/p>\n

More and more travel-related startups
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[\/vc_column_text][vc_empty_space height=”20″][vc_column_text]Moreover, the suppliers’ side is also undergoing major changes. This change is mainly represented by a radical increase of travel-startups’ fundings: The amount of funding they received over the past 18 months corresponds to the amount they received in the prior eleven years. This reflects a stronger presence of startups in today\u2019s travel and hospitality industry, what can constitute a competitive threat to established companies.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner row_type=”row” type=”full_width” use_row_as_full_screen_section_slide=”no” text_align=”left” padding_bottom=”30″ css_animation=””][vc_column_inner][vc_empty_space height=”25″][vc_column_text]<\/p>\n

These three challenges call for moderinzation
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[\/vc_column_text][vc_empty_space height=”20″][vc_column_text]The combined changes on customer and supply side, leave a traditional company in the T&H industry with three major challenges:<\/p>\n

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  1. Acquiring new guests and customers who might differ from the previous customer base.<\/li>\n
  2. Maintaining the relationships with existing customers during increased consumption.<\/li>\n
  3. Creating a sustainable competitive advantage to succeed against disruptive entrants and startups.<\/li>\n<\/ol>\n

    [\/vc_column_text][vc_empty_space height=”25″][\/vc_column_inner][\/vc_row_inner][vc_row_inner row_type=”row” type=”full_width” use_row_as_full_screen_section_slide=”no” text_align=”left” padding_bottom=”30″ css_animation=””][vc_column_inner][vc_column_text]<\/p>\n

    Reaching customers through technology
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    [\/vc_column_text][vc_empty_space height=”20″][vc_column_text]One major key in overcoming these challenges is technology. The main difficulty for those enterprises is to find and incorporate the right technology mix – including Internet of Things (IoT) solutions and analytics – in their service offerings.[\/vc_column_text][vc_empty_space height=”25″][vc_single_image image=”65544″ img_size=”600×390″ alignment=”center” qode_css_animation=””][vc_empty_space height=”5″][vc_column_text]<\/p>\n

    There are various digital interfaces also for travelling. (Image source: YouTube \/ Aruba)<\/span><\/p>\n

    [\/vc_column_text][vc_empty_space height=”25″][vc_column_text]First attempts regarding the modernization of T&H service offerings already exist, supporting their practical relevance. The ski area at the Stubaier glacier offers WIFI within their gondolas. The iHotel in Taywan, Taoyuan City tries to attract customers by offering hotel rooms equipped with high performance gaming computers, which should offer entertainment at otherwise lazy evenings in the hotel.<\/p>\n

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    The airline Emirates<\/a>\u00a0<\/span>has been targeting these young customers for some time. Their latest service offer: A private room in first class with virtual windows.[\/vc_column_text][vc_empty_space height=”25″][vc_column_text]<\/p>\n

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    Inside Emirates’ new first class suites with virtual windows and NASA-inspired seats pic.twitter.com\/wEbAj4hwwn<\/a><\/p>\n

    – Business Insider (@businessinsider) December 8, 2017<\/a><\/p><\/blockquote>\n