I spent the last few days thinking about what to write for this Summer issue of the Elephant In The Room. The recent rocket launches (all successful!) brought me back to “2001: A Space Odyssey,” the 1968 sci-fi movie that provided a glimpse into the future 33 years ahead of its time. I was fascinated by “HAL” (Heuristically Programmed Algorithmic Computer), the artificial intelligence computer that not only piloted the space ship, but also made the decisions for the crew and could even override the captain’s orders.
It was more than a glimpse as the film was not only significantly accurate in the portrayal of space flight, but director Stanley Kubrick and his production team introduced what was soon recognized as “Cutting Edge Technologies.”
I wouldn’t dream of trying to predict where our travel industry will be in the year 2057, not only because no one can confidently predict technology or social changes that far out, but also because I would not be around to know if I was right on any count (unless cryogenics is in my near-term future). However, I’m ready to take this risk on predicting some of the dramatic changes in our corporate travel industry as soon as next year.
What’s Past is Prologue
The past has shown dramatic improvements in corporate travel including how and who made the booking. When I started at TWA, ours was the first reservations agent class to use a computer (PARS). Look at where we are today. Back then travel was booked by travel agencies or the traveler by phone, and in larger cities, paper tickets were picked up at City Ticket Offices.
The majority of corporate travelers made their own booking, but senior management (and lower) often had a “Secretary” handle the travel booking details for them. I’ve been lucky to have some of the best in the business over the years and still stay in touch with them.
From “Secretary” to “Administrative Assistant”
It took a few decades to sunset the stereotype of Secretary and in recognition of his/her skill set, we saw the use of Administrative Assistant become the standard as the duties and responsibilities of the “Admin” increased over time, mainly in parallel with technology improvements. In many ways, the Admin had business skills that their manager didn’t possess, especially as their desktop tool changed from an electric typewriter to a computer.
The advent of the PDA: “Personal Digital Assistant”
In the mid-90s and the early 2000s we saw the accelerated evolution of cellphones from a mere communication device (audio-only) to brands like Apple Newton, Palm Pilot, Treo and Blackberry (I’ve owned three of them in the past). The branding of the device needed to demonstrate that it was much more than a phone, and so it was commonly accepted that we would call those gadget PDAs or Personal Digital Assistants. You are about to see where I am going with this if it hasn’t already become obvious to my industry colleagues.
The DIY Era of Managed Travel: “Do It Yourself”
Today, we are at a point where the primary corporate booking method is using an Online Booking Tool (OBT) which of course is much more efficient than e-mail or phone calls. No coincidence that it is also less expensive for the corporation as travel management company fees for online bookings are more than 50 percent cheaper than offline (phone or e-mail). The other reason for the growth of online bookings is the combination of the next-generation traveler who like to do everything with one hand (or thumb), and of course their propensity to think they are smarter than a travel agent. We know that the primary challenge is that GDS technology is decades behind mobile phone technology both in content and variety of channel options. I’ve already opined on channel and content challenges, so let’s move forward to my predictions.
What does “HAL” see as our future in corporate travel
a year from now?
These last few years have seen the evolution of several technologies and new players in the managed travel space that some consider to be “disruptors,” but I (and others) see them as innovators who have improved the status quo. Among the biggest innovators are companies that have introduced blockchain into managed travel as well as artificial intelligence. We’ve seen reports in BTE on how blockchain can save distribution costs (GDS,TMC, credit card) for participating airlines and in turn improve corporate discount terms and share the savings with the client company.
AI has been described as the “new electricity.” I don’t go as far back as Thomas Edison but it’s easy to see how the improvements to society back then were hugely dramatic. Similarly, we are seeing a significant increase in the use of AI in our industry by all players, from TMCs to airlines and hotels.
I’m going to try to tie this all together with a prediction that AI will be the new “Digital Assistant” for Corporate Travel. My nickname for it is AIA – “AI Assistant.” Here’s an example of what, among other things, you can do with it. Let’s say you dictate into your phone “I want to go to London on Tuesday night and get a hotel near the office and come back on a flight Friday morning.”
• The AI technology has your profile and knows your preferred airline, frequent flier number, seat preference, hotel membership number and the last room number you stayed in.
• AIA will show you what it “thinks” you want booked and all you have to do is hit the OK button.
• If your arriving flight in London is significantly late, AIA will know that traffic will be heavy and direct you to the Heathrow Express, notify the hotel that you will be late, and suggest a nearby place for coffee.
• 24 hours before your return flight, AIA will check you in, try to upgrade your seat, book your ride to the airport and notify your family member when to expect you back home.
• It might even remind you that it’s your kid’s birthday and suggest a gift shop at LHR or perhaps next door to your hotel.
The way we travel for business will dramatically change next year, starting with how we make bookings (content will be King/Queen). Also, the Experiential Odyssey will include planning trip meetings (TEAMS) and other items I book on my own (e.g., Open Table), all in a single “platform” interconnected to the solar system of travel suppliers, treating my profile as the center of my universe.
