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Chebib.....senior analyst, Euromonitor International

Smart technologies reshape regional tourism landscape

DUBAI, May 7, 2015

Big data analytics, peer-to-peer services and in-destination services are currently the fastest growing trends in online travel and wearable electronics is set to become the next big thing for travellers, according to recent report.

The latest tourism Global Trends report released by Euromonitor International, at the Arabian Travel Market (ATM) pointed out that a number of travel companies and technology developers are already addressing the trend with Expedia releasing a traveller notification app for the Samsung Galaxy Gear smartwatch, and working on one for Google Glass.

Starwood has created its own Google Glass app that allows bookings and provides hotel directions, as well as plans to use the Apple Watch as a room key in future; and Iberia, Vueling and Air Berlin have announced that their passengers will be able to download boarding passes directly onto their wearable devices.

Nadege Noblet-Segers, exhibition manager, ATM, said: “Gulf residents and those in certain other parts of the Middle East have a growing proclivity for, and financial accessibility to, the latest hi-tech gadgets, so with wearable technology predicted to be an instant winner in the region when it becomes mainstream sometime in 2016.

“This means that the industry will need to up its game in terms of understanding the functionality of working with multi-platform devices as well as the need for instantaneous response to clients/travellers expecting 24/7 connectivity.

Kinda Chebib, senior analyst, Euromotional International said: “This is expected to be a key area of competition in the travel industry over the next few years, with companies increasingly focusing on the period after the booking and during the whole trip.”

The Euromonitor data has predicted that wearable internet-connected devices are expected to rise from nine million units sold globally in 2013 to a forecasted 180 million in 2016 led by demand for the Apple Watch.

The report provided up-to-date insight into Mena economic trends and specific emphasis on the future impact of smart technologies and opportunities for business tourism growth in the region.

The report findings, which cover seven regions: the Americas, the UK, Europe, Middle East, Africa, Asia and India, were presented by Chebib at a Visa Seminar Theatre session.

“Destination services, personalisation, mobile bookings and peer-to-peer are expected to be the main disruptive forces in the travel industry over the next five years, but what is particularly worth noting is the rise in mobile technology as a transformational channel for the tourism landscape in terms of bookings, customer service and consumer behaviour,” noted Chebib.

Looking at the Middle East specifically, Euromonitor key performance indicators (KPIs) for 2013-15 show growth in air transport value set to rise from 6.1 per cent to 12 per cent, hotel value rising from 7.4 per cent to 9.1 per cent and travel retail value predicted to jump from 7.1 per cent to 9.7 per cent.

The incoming tourist receipts will also grow by as much as 10.4 per cent this year, driven by infrastructure developments, with the GCC countries the primary beneficiaries.

The report also highlighted new areas of tourism development opportunity with the design industry a potential catalyst for growth as well as the forthcoming Dubai Expo 2020.

“The Middle East is positioning itself as a design hub, from Beirut, which has the talent and production capabilities, to Dubai, which has the financial resources to create the environment. In recent years, events such as Design Days Dubai and Beirut Design Week have attracted international design professionals and helped design a new face of the Middle East,” said Chebib.

This is promoting a new dimension in tourism with events such as Design Days attracting 12,150 visitors in 2014, 40% of which were regional and international tourists, and showcasing a different facet to Dubai’s cultural proposition, she said.

“Business tourism currently accounts for 20 per cent of all tourism receipts in Dubai and UAE MICE sector business generates $653 million per year; so with the goal of doubling the number of visitors to the UAE to 20 million per annum, this is an exciting time for the industry,” said Noblet-Segers.

“While Asia Pacific is expected to drive global growth in online travel, with its online travel sales set to double from $90 billion in 2013 to $180 billion in 2018, it is a growing global trend. Mobile devices are increasingly key in the travel industry in terms of both customer service and bookings with mobile bookings are expected to reach 35% of online travel bookings by 2018,” Chebib added. - TradeArabia News Service




Tags: Electronics | Smart | Technologies | Wearable |

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