2019 Predictions IDC FutureScape - Worldwide Predictions

Top 10 Worldwide Hospitality and Travel 2019 Predictions

IDC Worldwide Hospitality 2019 Predictions

This IDC FutureScape provides IT executives in hospitality organizations across the globe with actionable insights for likely future technology and business scenarios. The intended readers of this IDC FutureScape include, but are not limited to, members of the executive, business, and IT leadership of hospitality organizations worldwide. These FutureScape predictions suggest that the next five years will continue to focus on the adoption of disruptive and innovative technologies, which will drive digital transformation (DX) forward at a rapid pace through several key themes, including:

  • Technology-driven transformation altering business and society
  • Speed of change, delivery, and operations separating thrivers and survivors
  • Data and intelligence representing a unique opportunity for creating unimaginable value
  • How the industry is learning to utilize artificial intelligence (AI)
  • Protecting the security and privacy of digital assets and creating trusted transfers of value
  • Consumers expecting more convenience, customization, and control
  • How to retrofit old systems into the DX world

This IDC study explores how different drivers are collectively impacting technology in the hospitality industry and offers guidance on actions to consider. Hospitality organizations are hard-pressed in the new digital era to respond to a wide range of political, economic, social, cultural, technological, legal, and experiential forces. These forces, alongside the ever-expanding data assets, increasing market pressures, sweeping regulations, and changes in the global populace and in consumer expectations for experiential hospitality, call for the industry to act in innovative ways that meet rising expectations, improve outcomes, and deliver value.

Our worldwide hospitality and travel industry 2019 predictions are:

  • Prediction 1: By 2024, 70% of hospitality organizations will have moved to the managed stage of DX maturity, reaping revenue gains of up to 25%, with the remaining 30% facing acquisition or complete failure.
  • Prediction 2: By 2020, 50% of hotels will use purpose-built cloud solutions for booking and customer relationship management, thus reducing costs by 10% and increasing occupancy rates by 15%.
  • Prediction 3: By 2023, 20% of major airlines will have introduced virtual reality capabilities for in-flight entertainment, destination info, and shopping, thus increasing airline revenues while decreasing costs.
  • Prediction 4: By 2024, 25% of major airlines will have incorporated blockchain technology for identity, loyalty, and payments, thus increasing data security and improving profits and customer satisfaction.
  • Prediction 5: By 2023, 35% of large transit authorities will have integrated with transportation network companies to improve and expand passenger services and reduce transit agency inefficiencies and service gaps.
  • Prediction 6: By the end of 2020, due to 80% increase in the use of wearables by employees, security-related issues concerning wearables will become a top discussed agenda item for CIOs in hospitality organizations.
  • Prediction 7: Through 2019, 50% of large hotel chains will have mobile robotic deployments with modular components to facilitate multiple guest experience–related use cases and will thus have achieved increases in productivity of 25%.
  • Prediction 8: By 2021, 5G will have enabled innovative IoT use cases, resulting in hospitality organizations allocating 25% of their IT budgets to deploying connected devices and connectivity management solutions.
  • Prediction 9: By 2022, 50% of major railways and airlines will use big data and analytics to nudge passenger behavior in terminals and airports to improve revenues, customer satisfaction, and operating efficiency.
  • Prediction 10: By the end of 2019, digital assistants, underpinned by AI and speech, will have enhanced workplace collaboration and improved knowledge-worker productivity in hospitality organizations by 50%.

“Hospitality organizations have been late to enter the race of digital transformation. This delay has already significantly impacted the industry. There is a fair degree of awareness today among executives in hospitality organizations worldwide that the transformation imperative cannot be ignored. The 2019 worldwide hospitality industry predictions provide a glimpse into how the hospitality industry will unfold and evolve in the years to the come as transformation becomes the central theme in the new digital era,” says Jaideep Thyagarajan, senior market analyst, IDC Retail Insights.

For context around these predictions, including the IT impact and guidance on how to integrate each prediction in the digital strategy of the enterprise, view the IDC FutureScape: Worldwide Hospitality and Travel 2019 Predictions web conference on-demand.

Co-author:

Robert Parker, Group Vice President, IDC Retail, Energy, Manufacturing and Financial Insights

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