Domestic tourism, digital advancements, and emphasis on sustainability ruled the roost for MICE travel in India this year. Corporate travellers too followed suit demonstrating resilience, adaptability and innovation.
Janice Alyosius
The global travel and hospitality industry has undergone a monumental transformation over the last 12 months. From unparalleled challenges to newfound opportunities, the sector has adapted to a new era marked by innovation, resilience, and an evolving landscape. M!CEtalk reached out to industry leaders for their perspective on the benefits, challenges, strategies, and emerging trends that have shaped the industry’s trajectory.
According to P S Chandra Mohan, Sr. Manager – Facilities & Travel, Tessolve Semiconductor, the past year has brought significant benefits to the travel industry. “This year, the travel industry has experienced significant benefits. Many people have begun to travel again, which is good news for airlines and hospitality sector, both of which had struggled for the past 2 to 3 years. However, the sudden surge in travel has led to increased costs for the airline and hotel industries, affecting companies’ budgets and causing overruns,” he highlighted.
Shashikiran Parameshwaran, Global Front Office Lead T&E, ABB, delved into the multifaceted changes within the industry. He emphasized, “The last 12 months have been a transformative period for the travel and hospitality industry. Despite challenges, this sector has showcased its adaptability to evolving landscapes. The initial shock of the COVID-19 pandemic prompted an unprecedented shift, presenting both challenges and unique opportunities.”
He highlighted one noticeable benefit has been the surge in domestic tourism. “Travellers redirected their focus to local destinations, rediscovering the charm and cultural richness within their countries’ borders. This shift not only supported local economies but also redefined travel preferences, likely to persist even as international travel resumes,” he said.
He also stressed on the rapid shift towards digital advancements, and the growing focus on sustainability and eco-friendly travel. “The travel industry swiftly adopted digital transformation, relying on online platforms, travel apps, and virtual tours,” he said.
Rajdev Bhattacharya, Global Head-Travel & Hospitality, Wipro, highlighted both the benefits and challenges faced by the industry in the past year. “There was a noticeable gradual recovery within the industry, marked by an uptick in leisure segment bookings and intermittent increases in international business travel,” he said. However, these positive trends were accompanied by a set of challenges stemming from the aftermath of the pandemic.
These challenges encompassed uncertainties such as international travel restrictions enforced by companies, notable skill shortages in the industry—exemplified by strikes in Europe and the USA—escalating operational costs, leading to global fare and hotel rate hikes, and geopolitical tensions impacting business decisions. Bhattacharya also expressed concerns regarding potential repercussions of a USA recession, which could potentially decelerate the industry’s pace.
Outlook of business travel
When discussing the current status of business travel compared to pre-COVID levels, Mohan observed a surge in personal/tourism travel during holidays and long weekends. “Most corporates have successfully managed assignments to be executed remotely. Corporations are planning cost-cutting measures and are authorizing only essential travel,” he said.
Parameshwaran noted a significant rebound in business travel from 2020 lows but acknowledged lingering effects such as health concerns and remote work adoption, influencing a cautious travel approach.
According to Bhattacharya, business travel hasn’t yet reached the heights seen in 2019. It is lingering at about 45-65% of its former activity and business.
Industry dynamics in 2023 and future projections
Regarding the evolution of the travel and hospitality industry in 2023, Mohan highlighted the absence of a revenue slump despite increased travel and hotel costs, signifying a positive comeback post-pandemic. Bhattacharya projected a continued focus on sustainability, digitalization, traveller experience enhancement, health, safety, and increased technology investment.
Parameshwaran predicted a sustained shift towards hybrid or remote work options, increased emphasis on sustainable travel practices, and a reshaped travel policy landscape which can prioritize employee health and mental well-being.
Technology and apps in travel
In terms of technology, Mohan commended the advent of new applications that have simplified travel necessities, enabling them to be effortlessly met with just a few clicks. Bhattacharya highlighted platforms like TravelPerk, Egencia, SAP Concur, and TravelBank, emphasizing on their role in enhancing travel experiences.
Highlighting the convenience of travel apps, Parameshwaran said, “Travel apps have made it easier for travellers to plan and book their trips. With just a few taps on a smartphone, users can book flights, accommodations, car rentals, and activities, which has streamlined the booking process and made it more convenient.”
He added, “Many travel apps use data and algorithms to offer personalized recommendations for hotels, restaurants, and activities based on a user’s preferences and previous travel behaviour. This can enhance the travel experience and help travellers discover new places and experiences.”
With the resurgence of leisure travel, various applications have become increasingly popular, offering services such as language translation, mobile check-in, travel budgeting, and booking through platforms like booking.com, Airbnb, CheapOair, Skyscanner, Turo (a car-sharing app), kiwi.com (which enables travellers to book multiple airlines), and Hopper (providing fare predictions for optimal booking times).
Shift to tech-driven TMC platforms
Mohan underscored the benefits of tech-driven Travel Management Company (TMC) platforms. “TMC platforms provide an opportunity to comprehend the entire scenario regarding costs and expenditures. They offer real-time data that allows us to manage the entirety of travel. This opportunity prompts traditional travel agents to seek improvements,” he said.
Highlighting the advantages of tech-driven TMC platforms, Bhattacharya said, “Shifting to tech-driven TMC platforms is the current trend, offering several benefits, such as cost-effectiveness, real-time data, faster response times, personalized traveller experiences, and improved transparency in audit trails.”
Parameshwaran elaborated on the efficiency, cost savings, transparency, personalization, accessibility, safety, compliance, integration, and data analytics offered by TMC platforms.
Sustainability initiatives
Sustainability adoption in the travel and hospitality segment is gradually becoming a pivotal focus for corporations. Mohan said, “This technological advancement not only streamlines the financial aspects but also lays a foundation for better monitoring and potentially reducing the environmental impact of travel.”
Bhattacharya emphasized on the significance of sustainable practices, and said, “A pleasant surprise has been that travellers are increasingly seeking eco-conscious choices, which align with corporate sustainability efforts. This revision adds the phrase ‘which aligns with corporate sustainability efforts’ to clarify how travellers seeking eco-conscious choices connect to corporate sustainability efforts.”
In Parameshwaran’s perspective, the adoption of sustainability within the travel and hospitality sector has been increasingly evident through several impactful initiatives. He highlighted initiatives undertaken by corporates and shared, “Green Initiatives have been a significant focus for many establishments, encompassing energy-efficient technologies, waste reduction, water conservation, and embracing renewable energy sources.” He underscored the importance of certifications such as LEED, illustrating how they symbolize a firm’s dedication to sustainability and environmental accountability.
He also emphasized on the growing traction of sustainable tourism practices that prioritize preserving natural and cultural heritage while supporting local communities and minimizing adverse impacts of tourism. Efforts were being made to curb single-use plastics, with hotels and airlines phasing out items like plastic straws and bottles. He shed light on initiatives like carbon offset programs introduced by some travel companies, allowing travellers to counterbalance their carbon emissions by investing in environmental projects.
Regarding educating travellers, Parameshwaran highlighted corporate strategies such as employee training programs focusing on sustainable travel practices, incentives for choosing eco-friendly options, and clear communication about sustainability expectations. These efforts aimed to empower employees to make responsible choices during business trips, aligning with the broader mission of sustainability in travel and hospitality.
“There was a noticeable gradual recovery within the industry, marked by an uptick in leisure segment bookings”
Rajdev Bhattacharya, Global Head-Travel & Hospitality, Wipro Limited
“The last 12 months have been a transformative period for the Travel and Hospitality industry”
Shashikiran Parameshwaran, Global Front Office Lead T&E, ABB
“Many people have begun to travel again after the pandemic, which is good news for airlines and the hospitality sector”
P S Chandra Mohan, Sr. Manager – Facilities & Travel, Tessolve Semiconductor
