Philipp Pointner, chief of digital identity at verification company Jumio, stresses the need for continued digital evolution in the sector
The travel industry has defied a global economic slowdown, experiencing record bookings and profits as pent-up demand following the pandemic fuelled spending on air tickets and hotels. Demand is expected to remain strong through the autumn too, according to PwC.
However, it’s not been completely plain sailing. Most recently, the UK saw chaos caused by a technical glitch that brought flights to a grinding halt. To add to this, Aer Lingus was caught up in a cyberattack that hit organisations around the world, and whilst only employee data was affected, it will inevitably bring into question the broader security of customer data.
Understandably, an industry so vast will never be immune to every possible glitch, but instances such as these serve as a clear reminder that improved processes can help minimise future occurrences and build better customer experiences that leave positive lasting impressions. It’s no surprise that a continued digital evolution is where the travel industry should be looking.
Consumer appetite for digital options
A recent analysis by the Civil Aviation Authority found that there “is still a way to go” for the industry in providing smooth digital experiences for all passengers. While this focuses heavily on making digital experiences accessible for those with impairments, it shines a light on the need for the travel industry to take a serious look at its digital offerings more holistically.
Our research found that the appetite for digitally led interactions is there. Specifically, UK consumers are eager to embrace digital identities – a reusable, electronic proof of identity that enables a person to prove their identity online, like an e-passport – at different points when travelling. Over a third (37%) expressed interest in using a digital identity when passing through key airport checkpoints, like baggage drop and border security. A quarter would like to use one when booking a flight, and the same number of 18-to-34-year-olds would also like to do so for checking into a hotel.
Sun, sea, and seamless check-ins
There is a slow but steady growing trend for using digital check-in methods at airports, supported by the fact there is consumer demand for the use of digital identities to play a role. It’s no wonder, considering traditional methods at airports can still be labour-intensive and time-consuming, for staff as well as travellers. If more airline operators were to look at implementing digital technologies at all touch points – like with fingerprints or facial recognition – the whole process could be expedited. We’ve already seen the likes of Singapore’s Changi and Atlanta’s Hartsfield-Jackson doing this with great results.
And it’s not just the direct companies and consumers that would feel the effect. For travel agents, the benefits of this kind of digital evolution would be welcomed too: a quicker check-in process expands the feasibility of offering services like late bookings or tight connection schedules, which were previously considered high-risk.
A warmer welcome
There is much to be gained by applying new technologies to hotels as well as airports. For example, guests are often still expected to wait in line and hand over sensitive documents to physically prove their identity. Again, embracing more digitally led check-in processes could eliminate the friction at this stage, kicking off a stay much more efficiently.
Travel agencies can then in turn highlight the hassle-free nature of a hotel or holiday option to customers as a selling point and to further pique the interest of consumers looking to book a trip.
Mitigating any turbulence
However, as we see the online travel agent market growing – it’s expected to reach $865.5 billion globally in 2023 – the industry needs to be aware of the emerging risks. For example, fraudsters can buy airline tickets with stolen credit cards and sell them to third parties, or they can take over a user’s online account and either buy a ticket with their air miles or transfer the miles to the highest bidder on the dark web. As such, while digital evolution is a positive for the industry and will go a long way in providing a more enjoyable customer experience in many ways, businesses need to ensure they are putting in place solid security processes fit for a digital world.
For every player in the travel industry, continuing on a digital journey presents opportunities to not only help mitigate some of the negative instances we’ve seen lately but also create far more positive and memorable customer experiences. Whether it’s allowing travel agents to offer more logistically complex yet exciting trips, to reducing the time spent by staff at check-in points, digital advancements provide more efficient, integrated, and secure services that will get the travel industry to a far better destination.