India Travel and Hospitality Technology Landscape 2016

A KNOWLEDGE PAPER

This report from RezNext and FICCI on India's technology landscape for travel and hospitality, provides a quick look at the current pace of technology automation, consumer trends, impact of mobile technology and trends with online hotel distribution. Please fill the form to request a copy of the report.

Below are some excerpts from the report.

With the evolution of technology and the onset of internet, the pace of business across industries has changed. There is a constant need to innovate and connect better with consumer segments to stay ahead of competition. However, people found it increasingly difficult to do so as they were constrained by manual processes. That's how the need for technology automation emerged. It evolved along the years to refine the processes within industries to help businesses streamline their operations, improve productivity, adopt an agile system and overall enhance customer service.

What is the current adoption of technology automation in the travel and hospitality industry? Is it restricted to certain segments only? Do all categories of hotel have access to technology tools that can automate their processes? What are the barriers to adoption if any? What is the current technology landscape and how will it shape up in the immediate future?

Key highlights:

  • Technology automation gives hoteliers across categories and size the infrastructure to scale up operations and a competitive edge in the market
  • User friendly real-time applications and robust cloud offerings have demystified technology concepts
  • Baggage space will see transformation with the ability to track the luggage’s journey
  • In-room automation will see a larger than screen role for the TV

Hotel operations can be significantly improved and existing costs can be reduced leveraging big data. In the operations department, hotels can leverage analytics to predict peak check-in and check-out trends for a week or by a month and ensure adequate resources are aligned to these functions to ensure a smooth experience for the guest. Similarly, hotels can optimise their F&B operations with data analytics. By measuring the sales for each item on the menu, they can decide to create a menu that sells best based on the patters for that week/day. This helps to keep the costs in checks. For large hotel chains with centralised systems, an IT breakdown would be disastrous. With predictive intelligence, hotels can now pre-empt any failures and accordingly act on such issues.

Key highlights:

  • Big data allows a proactive approach to operational efficiency
  • Provides an integrated picture of the truth with convergence of data from across functions
  • Big data analytics is transforming the customer lifecycle management function
  • Connected systems and seamless flow of information is core to big data analytics
  • See increased ROI in revenue management, marketing and distribution functions with big data analytics

As of April 2015, 27.2% of global online transactions were through mobile devices according to Adyen, a global payments technology company. This is set to increase with the number of people who will use mobile phones expected to grow to 4.8 billion in 2016 (Forrester Research). International Data Corporation (IDC) predicts worldwide mobile payments to account for $1 trillion in value in 2017. Driven by a high number of initiatives and diverse m-commerce maturity level, Asia Pacific is expected to lead the world in mobile payment.

Key highlights:

Now is the most conducive time for a hotelier to do business online. High internet penetration has made it possible for hotels of all sizes to engage with their prospects from across the globe. Users who book hotels online is poised to grow 2.5 times from 3.5 million in 2014 to 8.4 million in 2016. Yet with growing competition, driving business for a hotel is a challenge because today’s consumers want not just rooms, but also an experience and the best value for their money.

Key highlights:

  • Online hotel booking revenues in India will hit $1.8 billion in 2016
  • Business travel spend is increasing and is expected to reach $45 billion by 2019
  • Dynamic distribution model is need-of-the-hour
  • Hotels in India yet to leverage website as their most profitable channel of sale
  • Online hotel bookings is lucrative source of business

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