Highlights from Day 2 (afternoon) of Phocuswright Europe

 June 12, 2024 – Digital identity revolution: Frictionless travel on the horizon

 

The future of travel, streamlined and secure, was unveiled at Phocuswright Europe 2024’s “Executive Panel: Digital Identity is (Nearly) Here.”  Moderated by Mitra Sorrells, Editor in Chief at PhocusWire, the session brought together Vikas Bhola (CEO, Neoke), Francois Blanc (Managing Director, Amadeus Traveler ID, Amadeus IT Group SA), and Annet Steenbergen (Advisor, EU Digital Identity Wallet Consortium) to discuss the transformative potential of digital identity technology.

 

The conversation centered on the imminent arrival of a frictionless travel experience. Annet Steenbergen, representing the EU Digital Identity Wallet Consortium, provided a groundbreaking update: 

 

“As of last month, the EU has implemented new regulations mandating a digital identity wallet for all European citizens and residents by 2026.  This decentralized wallet will revolutionize online and offline identification, eliminating the need for repetitive data entry. It’s GDPR in action, empowering individuals and simplifying verification processes for organizations.” Francois Blanc of Amadeus IT Group SA echoed this enthusiasm, envisioning a future where “digital ID encompasses the entire travel journey, from booking and shopping to border crossings.  Imagine sharing your details seamlessly with airports and hotels in advance, eliminating queues and streamlining the entire experience. The possibilities with this technology are vast.”

 

Vikas Bhola, CEO of Neoke, highlighted the game-changing potential of digital identity: “The use cases for this technology are profound. Imagine a world where countless travel hassles are eliminated with a secure digital ID.  While infrastructure challenges exist, solutions like our on-the-fly web wallet creation are paving the way for border control and other official travel applications.”

 

The panelists explored the potential for personalization within the digital identity framework. Blanc cited Expedia’s One Key loyalty program as a prime example: 

 

“Imagine seamlessly sharing your loyalty tier status and program details across travel providers with a single click.” Steenbergen emphasized the data ownership aspect: “This system empowers users. You control the data in your wallet and grant consent, fostering trust within the ecosystem.”

 

The discussion concluded with a call to collective action. Sorrells summarized the key takeaway:

 

“For this vision to become reality, everyone needs to be on board – governments, travel providers, airlines, hotels, and payment processors.  Collaboration is key to ushering in a frictionless travel future powered by digital identity.”

 

Beyond the Bed: Lodging Companies craft unforgettable guest experiences

 

In today’s travel landscape, travelers crave more than just a comfortable room.  They seek unique experiences that create lasting memories. The “Executive Panel: Beyond the Bed – An Experience You’ll Never Forget” at Phocuswright Europe 2024 explored how leading lodging companies are innovating to meet these evolving demands. Moderated by Lorraine Sileo, Founder, Phocuswright Research and Senior Analyst at Phocuswright Inc., the session featured Maud Bailly (CEO Sofitel Legend, Sofitel, MGallery, Emblems, Accor), Nils Korsvoll (VP Customer Journey & Product Development, Strawberry), and Juan Carlos Sanjuan (Founder & President, Casual Hotels).

 

The panelists emphasized the importance of fostering a distinct brand identity that extends beyond the physical hotel room.  Bailly highlighted the crucial role of exceptional service:

 

“Hotels are built on two pillars: product and service. While providing a beautiful room ensures a good night’s sleep, it’s the service culture that truly creates lasting memories. It’s about emotional intelligence, personalizing the experience, and making guests feel special. They may not remember their exact sleep quality, but they will remember how you made them feel.”

 

Korsvoll described his company’s unique approach to building staff culture:

 

“We’ve externalized our internal party culture for our guests. We don’t do traditional recruitment; instead, we hold large-scale auditions in each city. While these candidates may not have prior hospitality experience, they possess the right personality and energy. We then invest in extensive training to equip them with the necessary skills.”

 

Sanjuan underscored the growing focus on creating a happiness-driven ecosystem:

 

“We’re moving beyond a purely transactional model and aiming to cultivate a culture of happiness within our hotels.”

 

The panelists also discussed the shift towards leisure travel.  Bailly noted that Accor is now experiencing a 65% leisure travel mix compared to a pre-pandemic 50/50 split.  “Leisure travelers today have new demands,” she explained. “They seek larger spaces, villas, and a higher level of service, including amenities like in-room cooking options. We’re building brands that cater to these evolving needs.”

 

Wellbeing experiences are another key trend. Bailly highlighted the importance of holistic wellness programs: 

 

“Travelers are no longer solely focused on aesthetics; they want to feel good overall. Our Purist program, built on four pillars of wellness, has been a big success.”

 

Sustainability also emerged as a crucial factor for today’s travelers.  Bailly pointed out that 46% of Accor’s hotels are now eco-certified, reflecting a growing demand for responsible tourism practices.  Korsvoll shared an example of how his company incorporates sustainability into their conference offerings: 

 

“Nordic hotels have carbon budgets for their conferences, so menus may feature more vegetarian options instead of beef. While some delegates might initially miss steak options, we explain that these choices align with their company’s carbon goals.”

 

The session concluded with a call for ongoing education.  Bailly emphasized the need to educate guests about sustainable practices:

 

“There’s a level of explanation required when explaining why we might not be offering plastic water bottles. It’s a journey that requires ongoing communication and education.”

 

Sanjuan echoed the focus on creating a personalized experience: “We strive to make our guests feel like they’re staying in a friend’s home. Each of our rooms is unique, offering a distinct experience for every guest.”

 

The Great GenAI Debate: Friend or Foe for the Future of Travel?

 

The evolving role of Generative AI (GenAI) in the travel industry was the heart of a lively debate at Phocuswright Europe 2024’s “Executive Panel: The Great GenAI Debate.”  Moderated by Mike Coletta, Senior Manager, Research and Innovation at Phocuswright Inc., featuring Matthew Barker (Founder, Horizon Guides) and Christian Watts (CEO, Magpie)

 

Barker advocated for a nuanced approach: “There’s a significant role for GenAI in the travel industry, but human expertise remains essential. Different sectors will find their own balance in terms of how they integrate this technology.”

 

Watts, on the other hand, expressed enthusiastic optimism: “GenAI is a game-changer that’s been around for 18 months, and it’s astonishing how quickly it’s become integrated. This is powerful technology with real intelligence behind it. Everything is going to change as we move forward.”

 

The debate centered on the impact of GenAI across the travel journey, from planning to experience. Barker used the example of a customer with vertigo seeking a Himalayan trek:

 

 “Our human agent, who himself had experienced vertigo while trekking in the Himalayas, could provide qualified advice and tips for managing the condition. When I posed the same question to ChatGPT, it simply offered a list of low-altitude hikes. This highlights the limitations of AI in addressing complex travel needs.”

 

Watts acknowledged the limitations of AI but emphasized its potential: “These tools aren’t a magic solution, but they can solve many problems. Companies that resist or cling to outdated methods risk being left behind. Instead of dwelling on what AI can’t do, we should focus on leveraging its strengths. Imagine the efficiency gains – I could complete three days’ worth of meetings in seconds! While we might feel threatened by the capabilities of these tools, they can be powerful allies.”

 

The discussion concluded with a nod to the human element. While acknowledging the efficiency and capabilities of GenAI, Barker stressed the enduring importance of human connection and empathy:

 

“There’s a reason people still crave human interaction. The human touch will always be a vital part of the travel experience.”

 

In conclusion, the “Great GenAI Debate” underscored the complex and evolving relationship between humans and AI in the travel industry. As GenAI technology continues to develop, travel companies will need to navigate this new landscape, embracing the efficiency and capabilities of AI while recognizing the irreplaceable value of human expertise and empathy.