NYU and Phocuswright Survey: Travel Executives Evaluate Emerging Technologies

Travel companies seek enhanced distribution technology- Data mining is number one current, future technology Travel companies are embracing technologies that help them to achieve seamless connectivity and optimize customer interactions, according to a new survey conducted by New York University's Tisch Center for Hospitality, Tourism, and Sports Management and Phocuswright Inc.

Nearly one third of survey respondents cited seamlessness between the customer and organization as the number one challenge with their company's distribution channels. Respondents indicated a need for improved systems integration, adoption of industry standards, and further development of emerging distribution channels and technologies. In addition, 29% of respondents predicted that the GDS new entrants (GNEs) would be the distribution channel technology that would be most beneficial to their business over the next five years.

The 95 survey participants represent a mixed group of CEOs, CFOs, CIOs, directors, managers, vice presidents and other travel, tourism and hospitality professionals. The joint survey was conducted in Fall 2005.

Other technologies favored by respondents included those that enhance the ability to optimize storage, analysis and interpretation of information throughout the distribution chain. When asked which technologies were important to their organization, 71% chose data mining, 63% data warehousing and 58% said business management applications. Also in the top four was search engine optimization (SEO), chosen by 61% of respondents.

The study also found:

• Data mining, metasearch technology and AJAX (software tools that make browser-based applications behave more like software that is running on a PC) were most often selected as the technologies expected to have the most impact on the travel, tourism and hospitality industry over the next five years.
• Blogs, WebTV and podcasting were most often selected as the technologies that will have the least impact on the industry.
• Data mining, data warehousing and dashboard marketing mix models were the most popular technologies expected to improve marketing strategy over the next five years.
• Eighty-five percent of survey respondents reported that they purchase or invest in new technologies in order to improve competitive position, 76% cited a need to control cost and improve customer satisfaction, and 73% invest in new technology to streamline function operations.
• Technology effectiveness is most often evaluated based on return on investment (84%), followed by reduced cost per transaction (63%).

A complimentary copy of The Effects of Emerging Technologies on the Travel, Tourism and Hospitality Marketplace is available at The Phocuswright GDX Web site, gdx.phocuswright.com. The Phocuswright GDX is a new annual subscription service that features ongoing research exposing the most important technology innovations and applications for the travel, tourism and hospitality marketplace.

The Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management is a part of NYU's School of Continuing and Professional Studies, which has been for over 70 years a recognized leader in the education of adult learners, offering a broad array of professional and industry-oriented degree and non-degree academic programs. For further information, contact Ellen Evaristo NYU SCPS at +1 212 992-9103.