The month of May unofficially kicks off the all important summer travel season and the industry has some bright spots as well as some negative factors to contend with. A recent UN Travel report indicated that international travel reached 97% of pre-pandemic levels in the first quarter of 2024 which is a very encouraging sign as the market hopes to see actual growth to close out the year. That important milestone may prove to be a little more difficult as anticipated. Air Canada, a major international airline, warned early in the month that lock-down inspired ‘revenge travel’ may be waning as posted profits fell at that carrier. Capacity may be another issue as the exceptionally busy US Memorial Day Weekend caused over 6000 flight delays and 200 cancellations. In spite of dicey economic fundamentals and ongoing operational issues, travel companies continue to invest in technology and acquisitions that will optimize operations and drive business.
Travelsoft Scoops 3 Travel Tech Companies Increasing Services Portfolio
Travelsoft, an SaaS company servicing the travel industry, acquired 3 travel technology providers, increasing their solution offerings in business travel, travel marketing and backend technology for travel agencies and providers.
- TravelgateX, a B2B accommodations connectivity provider, will increase Travelsoft’s presence in the highly lucrative business travel market
- Atcore is digital marketing company that delivers services across different marketing vehicles and concepts
- Travel Connection Technology offers back end solutions for bookings, inventory management and business insight generation
Christian Sabbagh, CEO of Travelsoft said of the deals, “These three acquisitions represent a quantum leap for us as we take a giant step forward in our mission to become the global leader in travel SaaS.” Technology aimed specifically at revenue generation can create advantages for agencies and providers in what is becoming a fiercely competitive marketplace. Optimism and a powerful recovery in business and corporate travel has created more opportunities to offer technological solutions that can streamline businesses and save companies time and money.
SITA Expands Scope With Recent Acquisition
The airport operations market is slated to grow (CAGR) 21.9% through 2023 as airlines and transport facilities continue focusing on optimizing operations, creating efficiency and controlling costs. SITA is a leader in airport communications and information technology and just expanded its services portfolio with the recent acquisition of Materna IPS, the German software developer that specializes in air passenger handling technology. The company’s innovative passenger check and bag drop technology will elevate SITA’s offerings to an industry with a constant appetite for efficiency. Air traffic volumes are slated to return to pre-pandemic levels in 2024 but this is a double edged sword as operational costs continue to rise. Facilities and air transport service providers are enthusiastic to adopt technology that keeps lines and equipment moving smoothly and efficiently.
HomeToGo Pushes Towards an AI Driven Marketplace
Vacation home platform HomeToGo recently updated the industry on their in-house Sunny travel assistant. AI Sunny is set to be a complete concierge and virtual assistant that can guide users through the entire booking process. Their AI powered platform can offer users value added services and features such as:
- Offering destination and accommodation recommendations based on user inputs
- Completing and confirming booking and payment processes
- Recommending and confirming accessory services and experiences
Language sets are the backbone for accurate and effective AI platforms but HomeToGo is not an AI company according to Patrick Andra, co-founder and CEO of HomeToGo. “We are a travel company that wants to create a fully AI-powered marketplace. So we want to utilize and leverage AI, but we need to make sure that we invest into AI at the right point, so that we’re not creating something that is already incorporated into the models. This is a moving target obviously.” he continues (Courtesy PhocusWire).
Travel Technology Supports the Market
The travel market has had an impressive rebound in the years after COVID-19 and lock-downs. Volumes are now approaching pre-pandemic levels and there is renewed optimism in the marketplace. Travel technology plays a key role in the travel business by improving both operational aspects and outward marketing and revenue generation parts of the business. continue, in spite of shaky economic fundamentals and potential slowdown in the leisure sector of the market. Startups, acquisitions and innovations continue unabated as the travel industry increases adoption of technology in every facet of the business. Rapid expansion of AI based applications are set to revolutionize the consumer facing marketplace. May’s traffic and volume will set the stage for this crucial summer travel market as 2024 is set to be the year the market returns to pre-pandemic levels. Technology may further come into play as providers and brands fight for market share.
Sources
https://www.unwto.org/news/international-tourism-reached-97-of-pre-pandemic-levels-in-the-first-quarter-of-2024
https://globalnews.ca/news/10465011/air-canada-travel-demand-q1-earnings-may-2024/
https://www.phocuswire.com/hometogo-ai-updates-sunny
https://www.marketresearchfuture.com/reports/airport-operations-market-11076
https://www.phocuswire.com/travelsoft-travelgatex-atcore-travel-connection-technology