Future-Proofing Your Travel Business

Harish ShahStratserv Consultancy

Future-ProofingThe Basics

The Future• Uncertain• Ambiguous• Non-linear• Shaped by the Broadest Spectrum of Factors• Businesses still need to be ready for it• We work today, for the results of tomorrow• Our efforts today worthwhile?

• Cannot be known, but can be studied

How the Future Happens• Nothing happens in a Silo• The Future is a result of Convergences• Multiple Developments• Across Multiple Domains, Fields, Industries and Spaces

• Shaped by Inter-related Synergies and Cross-Impacts• A story of Domino Effects• Butterfly Effect

Future-Proofing• Intertwining the Focus on the Future with the Organisation’s Human

Resource Activities/Efforts; Future-Oriented HR Strategy• Developing/Redeveloping Organisational Plans & Strategies with a

long-term view; Around Strategic Foresight• Permeating a Culture of Systems Thinking Application across the

Organisation; Starting with the end in Mind• Adopting Foresight Based Decision-Making Models & Processes• What can happen?• What will likely happen?• Best possibilities (And worst)

A Future-Proof Organisation• The most important resource (Human Resource) is;• Adequate & Appropriate to meet Future Needs• Empowered & Enabled to meet Future Challenges• Well Managed to Adapt in, Endure through and Foresee Future Changes &

Disruptions• The organisation is able to operate Proactively as opposed to

Reactively• The Organisation minimises situations of having to “catch-up” or “keep-up”

with elements in the external environment• By staying ahead

• By developing the necessary internal resources

A Future-Proof Organisation• Less at Risk;• Reduced possibility of being caught “Off-guard”• Threats are mitigated in advance or pre-empted• Management/Staff prepared for various possibilities through Scenario

Planning• Opportunities are Foreseen and Capitalised upon before they pass• Possible threats to continuity are Factored/Mitigated in Strategies and Plans

before they arise

A Future-Proof Organisation• Has high endurance• Adaptable to constantly changing conditions and environments• Flexible• Will be relevant for a long time ahead (yet)• Decades if not centuries

• Evolutionary• Business Model• Product Lines

Measures• Regular Scenario & Contingency Planning• Strategic Foresight (Ongoing)• Regular Revaluations and Reviews• Constant Vigilance• Environmental Scanning• Monitoring

• Long-term Competency Building (Organisational)• All HR needs to be geared to this end

• Innovation Culture• Systems Thinking Culture

Systems Thinking

System

Systems Thinking

Understanding the process of each system interacting with other

systems within a larger system

Travel IndustryThe Critical

Numbers• 1.035 Billion International Tourists in 2012

(Jump of 52 million from previous year)• 983 Million International Tourists in 2011

(Jump of 43 million from previous year)• 940 Million International Tourists in 2010• The 10 most visited countries in the world saw 492 million tourist

arrivals in 2014• 7 of the 10 most visited countries in the world at present are in Europe• France is the top destination by tourist arrivals

Growth Areas• Space Tourism• Sports Tourism• Allocated Sporting Tickets sold in Packages with Flights, Hotels, Excursions and

Other Activities

• Doom Tourism• Tourism to places that are environmentally or otherwise threatened

• Experiential Tourism• Cultural Tourism

Growth Areas• Agritourism• i.e., Farm Stay

• Culinary Tourism• Nautical Tourism• Wellness Tourism• The fastest Growth Area

• Destination Weddings• Medical Tourism

What is Happening?Examples

TripIt• SAP Created Application• Now available for Apple Smart Watches• Allows users to keep their travel itineraries on their wrists• Allows users instant access

Apple’s “Time Travel” Feature• watchOS 2• Users view scheduled Calendar Events + Weather Forecasts• Forecast if planned event or meeting will be disrupted by Weather

Complications

• Can be used to forecast Weather when Flight Lands• Uses Rotating Digital Crown

Function Space Revenue Management• Launched by IDeaS• Allows Hotels to capitalise on non-room revenue streams• Increase group and Function Space profits

• Forecasts and Validates Expected Demand• Day by Day parts• Uses advanced analytics• Enables Hoteliers to make Demand-Based Changes

• Strategic Pricing Decisions

Zuji.com• Game Changer in the Travel Industry• Set a new precedent

• Broad and Diverse Options to Travellers• Destinations• Accommodation• Flights• Favourable Rates• Dates• Combinations

Threats or OpportunitiesExamples

Virtual Reality• 360 Degree Cameras• Civilian Drones• 3D, 4D, 5D relay Technology• HMDs• Oculus Rift Headsets• Teleporter Stations (You feel the experience)

• Marriot Case Study

• Holographic Projection• Enhanced with Augmented Reality Technology

Fuel• Prices• Greater Energy Efficiency World Wide• Lower Demand = Lower Price?

• Emergence of Green Aviation• Long-term hope of Solar Powered Aircraft• Significant Oil Sources are in Middle-East/Africa• Plagued by Conflict• ME-West Politics

Terrorism• Islamic State• Al Qaeda• Taliban• Al Shabaab• Jemaaiyah Islamiah • Boko Haram• Abu Sayyaf• Moro Islamic Liberation Front

Changing World of Work• Virtual Offices / Virtual Work Environments• Work-from-Anywhere• Online Work• Tele-conferencing Technology (More accessible than ever)• Work Possible on Mobile Smart Devices• Leaner Organisations (Less Employees / Increasing Job Cuts)• Unemployment?

• No Job = No Money for Travel

• Increasing Automation

Generational Changes – The Millennials• More Informed• Hungrier for Content• More Connected – Relationships Across Borders• More Vocal• Not Loyal Customers• More Demands• Fast• Easy• Hassle-free

Changing Economic Landscape• Poorer West• Wealthier East• Next Growth Frontiers• Africa• Southeast Asia• South America

• Rise of BRICS:• Brazil, Russia, India, China and South Africa

• Transition from Worker Society to Entrepreneur Society

Let’s TalkCall +65 94510637 or email harish_shah@stratservconsultancy.com to enquiry for a detailed presentation or in-house talk.