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LOOKINGBACK 2017Copyright 2018 Accenture. All rights reserved.TRAVELTRENDSTRAVEL TRENDS 2018 2

For the third year in a row, AccentureInteractive for Travel looks to shed some lighton the factors shaping the travel industry andcall out the game changers our experts believewill break through in 2018.METH ODOLOGYUnder the umbrella of design thinking, the experts beginby looking ahead to explore the topics that will be relevantseveral years from now. Tapping into a wealth of creativityand their extensive knowledge of the industry, they analyzethe main themes that will be trends in the world of travel as2018 unfolds.The research conducted in this field, coupled withthe innovation and creativity of the team, provides theideal combination for delving into an industry that isimmersed in so many changes and identifying some of themovements taking place within it.Copyright 2018 Accenture. All rights reserved.TRAVEL TRENDS 2018 3

TRAVELTRENDS2018Copyright 2018 Accenture. All rights reserved.TRAVEL TRENDS 2018 4

TRAVELMEETSMODULARThe design of any journey usingseparate modules, such as the hotelroom and the airport lounge, that canbe interconnected to form a new andhighly personalized experience for thetraveler.Copyright 2018 Accenture. All rights reserved.#01 TRAVEL MEETS MODULAR TRAVEL TRENDS 2018 5

MODULAREXPERIENCEThe new trend in travel design is based on the intelligencebehind the composition of these modules, and how theycombine and connect to improve the experience of thetraveler.COMPOSITIONThe modules are flexible andadapt to the traveler, and theoverall structure can be adaptedto their needs.Copyright 2018 Accenture. All rights reserved.COMBINATION ANDCONNECTIONThe intelligence behind theorchestration of these moduleswill ensure the best combinationof services and products, tooffer a customized experiencepackage.#01 TRAVEL MEETS MODULAR TRAVEL TRENDS 2018 6

COMPOSITIONCOMBINATIONCONNECTIONThe new customer expectationsThe new approachThe assistant paradigmTravelers expect unprecedentedlevels of flexibility. They are looking forcustomized modules that meet theirinterests. Brands must respond to thesenew expectations by combining themost appropriate ones, and offering thebest possible trip.Through these modules, developedwith substantial flexibility andadaptability, brands will offer travelerscombinations that align with theirtravel expectations, giving rise to newstructures that align with their needs.Moving from a linear and unidirectionaltrip, to a modular experience configuredby intelligence, will be possible thanksto conversational assistants, a new userinterface that offers an omnichanneland multiservice experience.To make this happen, companiesin the industry have a great ally, thedigital world, which will enable themto create brand intimacy, based ongreater knowledge of the customerand the provision of more personalizedservices.Conversational interfaces will be thenew user interface and will providean omnichannel and multiserviceexperience.The new compositions includeconcepts such as luxe, which itself hasevolved considerably, since everyoneperceives it differently. It is no longer aunique concept; instead, it is a personalexpectation, one that brands must tendto.In the same way, there are times whenbeing unplugged from the digitalworld takes on a special meaning.So, if travelers can access contentand services that enhance theirtravel experience, the result will bevery satisfying. Why not select “travelmode”?Copyright 2018 Accenture. All rights reserved.New technologies, such as biometrics,can analyze travelers’ sentiments. Smartrooms, for example, detect the guests’mood to provide the service they needin real time, not based on past data.And with virtual reality, a person cantravel without leaving their room.“The assistant will be more importantthan the web & mobile in 2 years”Adam CheyerSiri, VivLab#01 TRAVEL MEETS MODULAR TRAVEL TRENDS 2018 7

THEMAGNETICBATTLE FIELDTravel, a highly competitive realminvolving actors from different industries,has become a kind of battlefield wherebrands either attract or repel each other.They must identify which position theyhold, so they can define a strategy andsurvive the battle.Copyright 2018 Accenture. All rights reserved.#02 THE MAGNETIC BATTLE FIELD TRAVEL TRENDS 2018 8

WIN YOUROWN WARThree driving forces—customer expectations, consolidationof the superbrands and configuration of trips according to themodular architecture—are shaping a new ecosystem in the tourismindustry, which has become a magnetic field where brands needto understand their current position in order to define theirstrategies.There is an urgent need for companies to come together to meetthe growing demands of travelers, by generating new trips and newservices designed around their needs.IT’S NOT AN EVOLUTION.IT’S AN AUTHENTIC REVOLUTION.Copyright 2018 Accenture. All rights reserved.#02 THE MAGNETIC BATTLE FIELD TRAVEL TRENDS 2018 9

THE PARTNERSHIP ERATHE CLONE WARWhen a strategy can be based on attraction, onjoining forces, brands have two options.Of course, if no partnerships can be forged,attack becomes the best defense. Once againthere are two possibilities.BE THE GIANT: the acquisitions andalliances that arise between organizations,establishing cross-border collaborations,and the eventual blurring of existing borderswill turn companies into giants, capable ofintegrating the modular experience for thetraveler.DANCING WITH GIANTS: is to becomea satellite, i.e., a company that providesa specific service to the giants, so thatcompanies can offer their customersservices and travel offerings that are notpart of their core business.AlibabaAlibabaUnderstand which strategies are successful, inorder to take them on and integrate them in thebusiness.Identify the potential of similar servicesdeveloped in the market which can be copiedand improved, becoming part of the DNA of thebusiness.Instagram arriottCopyright 2018 Accenture. All rights reserved.Snapchat LufthansaLufthansaAirbnbMarriottAccentureThe possibilities of direct relationships, aidedby the development of technologies suchas blockchain, will be a game changer in theindustry. For customers, it will provide moreeconomic access to the services of theirchoosing. And for companies, new opportunitiesfor increased profitability, through softpartnerships with new start-ups.SnapchatAccentureAccentureThere is a clear change in the distributionlandscape of the travel industry, related to thepossibilities offered by disintermediation.The New Distribution Capability is therefore anagent of change, creating new opportunities toshare the vision of a new distribution landscape.InstagramAlibabaTHE NEW 02 THE MAGNETIC BATTLE FIELD TRAVEL TRENDS 2018 10

REDEFINEDDESTINATIONSThe world is going crazy. And travel isfeeling it. This situation is leading to anew way of measuring destinations, theTraveler Risk Tolerance Index.Copyright 2018 Accenture. All rights reserved.#03 REDEFINED DESTINATIONS TRAVEL TRENDS 2018 11

LOOKING FORTHE BALANCEA series of events are taking place around us that arechanging the premises under which travelers choose theirdestinations.Tourists consider an endless number of issues when picking adestination, such as: the problems derived from the rise in terrorismor the spikes in tourism-phobia perceived in certain capital cities,stemming from the overcrowding suffered due to the location beingespecially attractive.However, there is an opportunity for new destinations to be redefinedand for brands to become destination management companies,finding a way to ensure trust, and attract and retain travelers.Copyright 2018 Accenture. All rights reserved.#03 REDEFINED DESTINATIONS TRAVEL TRENDS 2018 12

TRAVELER RISK TOLERANCE INDEXNew factors are coming into play when travellers make decisions about the destination for their next trip:CONSCIOUS TRAVELERSTOURISMPHOBIAANTI-MAINSTREAMTRAVELER ANXIETYThe sense of urgency that fuelsthe attractiveness of destinations,for example Cuba before itbecomes fully open to trade, orbefore a destination disappearsdue to the climate change.The problem of overcrowdingleads many tourists to exploreother places on the map thathave remained more unspoiledand authentic.There are increasingly moretravelers who escape seasonalityand try to go against the grain.The rise in terrorism, the rateof sexual abuse, governmentstability or other specific needs,such as accessibility provideadditional criteria for travelers toconsider All these factors lead to a new way of measuring destinations: the TRAVELER RISK TOLERANCE INDEX.FUNNELMANAGEMENTUnder these premises, countriesand destinations gain identity andpower. They become enterprises inand of themselves.Copyright 2018 Accenture. All rights reserved.New travel experiences will emergefrom this reflection, which bothcountries and companies in theindustry will be called on to engagein. They would essentially becomedestination managementcompanies (DMC), responding totourists’ new need to become familiarwith a variety of options, allowing themto make the best destination choice.THE PURSUITOF TRUSTBrands must be able to interpretthe external factors that concerncustomers, in order to identifycriteria and indices that truly offertravelers a solution.This will be the only way to achievethe main objective, which is simplyto earn their trust, in an environmentwhere security management will beparamount when it comes to offeringthe best value proposition, which ishow they will differentiate themselves.#03 REDEFINED DESTINATIONS TRAVEL TRENDS 2018 13

THE QUANTIFIEDTRAVELERData transactions have become themain focus of a more dynamic andinteractive journey between brands andtravelers. This leads to the beginning ofdehumanized experiences and the rise oftravelers’ anxiety.Copyright 2018 Accenture. All rights reserved.#04 THE QUANTIFIED TRAVELER TRAVEL TRENDS 2018 14

CUSTOMER ASA NUMBERComing from the obsession to measure everything, brandsare transforming customers into numbers.However, traveler expectations point in a different direction andsuggest that human essence and the search for transparency betweencompanies and customers are two factors shaping the present and thefuture.Copyright 2018 Accenture. All rights reserved.#04 THE QUANTIFIED TRAVELER TRAVEL TRENDS 2018 15

THE BRAND TRAVELER MATRIXBrands are quantifying travelers.With all this information, they canbuild automated processes, in whichtravelers become slaves of algorithms.This leads to a situation where brandscan predict their customers’ futureplans. Thus, brands have become timemachines, and the customers are thenumbers that travel in those machines.However, travelers also have the powerto quantify brands and alter their dataecosystem.THE POWERAND DUTY OFMEASUREMENTThe knowledge that brands acquirefrom travelers comes from thecomplete measurement of the newmodular journey. Thanks to the abilityto track the complete experienceThis interactive journey betweenbrands and customers means higherexpectations than ever before.Thus, travel brands carry on with theresponsibility of fulfilling them to avoidanxiety and frustration for travelers.MAKE ITWORTH ITWe, as travelers, still demand love, evenif interactions happen via technology.Create tech with soul.Measurement obsession plus travelerquantification could tear apartcustomer privacy and human essence.Travel brands are not only expectedto respond at the right time, but inthe right way as well. Time—such afleeting and valuable resource—is morevaluable than ever and travelers don’twant to waste it.Since privacy no longer exists,customers can only trust in a brand’stransparency. Blockchain will lead to anew form of trust.Copyright 2018 Accenture. All rights reserved.through online and offline interactions, itconsolidates the phygital paradigm.#04 THE QUANTIFIED TRAVELER TRAVEL TRENDS 2018 16

MAINTAKEAWAYSCopyright 2018 Accenture. All rights reserved.TRAVEL TRENDS 2018 17