As travel bookings in North America are projected to hit $570 billion by 2027, travelers' expectations continue to rise, and technology is stepping in to meet these demands. To help travel agencies remain competitive, we’re exploring four critical travel tech trends that are transforming the industry and unlocking new revenue opportunities.
A Guide to Staying Competitive
The travel industry is rapidly evolving, and while growth is positive, it often brings change. From fragmented content to new distribution models, the pressure on travel agencies is mounting. To keep pace, agencies must embrace tech-driven solutions to remain competitive. As the industry transforms, agencies are increasingly turning to travel tech providers like Airbooking to help them adapt.
Having worked in the corporate travel sector for over 20 years, I’ve witnessed massive shifts—long before streaming and rideshare apps became common. Today, travelers expect seamless, personalized experiences, and 80% demand more tailored travel services. To meet these expectations, innovation is essential. Below, we’ll explore four emerging travel tech trends that are reshaping the industry.
1. Tackling Content Fragmentation
One of the biggest challenges for travel agencies today is managing content fragmentation. As airlines adopt different strategies, NDC (New Distribution Capability) gains momentum, low-cost carriers expand, and new tech players emerge, the burden of content aggregation intensifies. This fragmentation makes it difficult for agencies to focus on business growth when they’re busy managing multiple content sources.
At Airbooking, we recognize this challenge. That’s why we continuously invest in multi-source content aggregation, integrating diverse air and non-air content into our platform. Our aim is to simplify the process, allowing agencies to access comprehensive content while maintaining operational efficiency. By adopting advanced AI and automation, we turn content fragmentation into a growth opportunity, enabling agencies to scale and deliver exceptional travel experiences.
2. NDC Is Changing the Game
NDC has become a key player in the travel industry. In June 2024, 21.5% of ARC’s monthly transaction volume was processed via NDC, marking a significant 14.4% year-over-year increase. As more travel agencies adopt NDC, they gain access to richer content and enhanced services from airlines, enabling them to offer superior travel options to customers.
At Airbooking, we simplify the integration of NDC into agency workflows, merging traditional EDIFACT content with NDC offerings to create a hybrid distribution model. This allows agencies to seamlessly manage both types of content, ensuring they can continue providing excellent service to their customers, regardless of the content source.
3. Embracing Post-Booking Automation
Automation is no longer optional—it’s a game-changer for travel agencies. Manual tasks like managing bookings, handling schedule changes, and processing travel documentation take up valuable time that could be better spent on revenue-generating activities. Post-booking automation streamlines these processes, improving operational efficiency and freeing up resources.
By automating repetitive tasks, agencies can scale their business without increasing overhead, ultimately reducing costs and improving the customer experience. In a fast-paced industry, embracing automation is essential to staying ahead of the competition.
4. AI and Machine Learning are Driving Travel Innovation
Artificial intelligence (AI) and machine learning (ML) are reshaping the travel landscape. By 2024, AI is expected to influence 32% of all travel industry revenue, making it a critical component for any travel agency looking to thrive. AI helps agencies unlock new revenue streams by delivering personalized services and streamlining operations.
At Airbooking, we’re leading the charge in AI-driven travel tech. Through our partnership with Google, we’ve developed AI-powered solutions like Lodging AI, which provides personalized accommodation options, and an email analyzer tool that can convert inbound emails into itineraries. These tools help agencies improve efficiency and offer customized services that enhance the overall travel experience.
The Future of Travel is Tech-Driven
As the travel industry evolves, adopting innovations like NDC, automation, and AI is essential for agencies to stay competitive. Airbooking is committed to providing travel agencies with the technology they need to shop, book, and service multi-source content more efficiently. By embracing these trends, agencies can meet the ever-changing demands of modern travelers and thrive in the future travel landscape.
