McKinsey’s take on the future of XR in travel
McKinsey and Co, in an extensive new report, has posed the question, ‘Can travel go virtual’, can the travel industry grab a US$20 billion opportunity offered by the metaverse.
The answer? Yes, no and maybe.
McKinsey suggests it’s time for the travel sector to take a serious look at the “complex opportunities” and to figure out what best drives traction in the new XR (Extended Reality) that is “still taking shape and many struggle to define”.
McKinsey suggests one way to grapple with this complexity is to adopt a traveller-first mindset. By putting themselves in the shoes (or bedroom slippers) of their target tourist, travel companies can identify opportunities to embed relevant virtual elements.
There are touchpoints where the disruption potential of the metaverse is still debatable, or where opportunities may take longer to mature, the report notes.
For travel agents, the news is not too bad.
Customers are already comfortable with online booking, so a shift to XR interactions with virtual travel agents could be seamless, according to McKinsey.
“However, this is a relatively small business opportunity, with uncertain added value: the new technology is not expected to change or boost the functionality of current booking processes in any fundamental way,” the global management consultants say.
The report indicates there is currently limited interest in adding virtual elements to aspects of travel that are necessarily physical, such as mobility, accommodation, the logistics of arrival and departure, and food and drink (F&B).
“Instead, we’ll most likely see a proliferation of hybrid offerings, with virtual events, edutainment, and inspiration combined with physical destinations.”
Where XR will shine, the report notes, will be virtual spaces—which can be used to showcase hotel amenities, airline classes, or an entire landmark—”spark the desire to travel, give a holistic idea of a destination, help in traveller decision-making, showcase broader offerings, and raise awareness of unfamiliar locations.”
A taste of VR chocolate from a Michelin-starred restaurant
The Catalonia stand at the IMEX trade show in Frankfurt this month will host a unique experience to help understand the impact of technology in the way people communicate, interact, and perceive reality.
IMEX visitors will be able to taste chocolate bonbons created by the three-Michelin-starred Roca Brothers in a scenario that fuses digital and physical reality – or phygital – a rather unlovely word.
The Catalunya Convention Bureau will offer visitors a chocolate bonbon with acid flavour (lime ganache and passion fruit) in a setting where digital and physical reality converges.
Virtual reality glasses that combine AR and VR will take visitors on a digital journey, led by the master chocolatier of Celler de Can Roca, the restaurant in Girona opened in 1986 by the Roca brothers, Joan, Josep and Jordi
In total, 1,000 chocolates will be produced for this experience.
Air NZ bags a winner
The battle to become the world’s leading digital airline is warming with Air New Zealand expanding a trial of a programme that allows customers to view the last recorded status of their bags in the Air NZ app while they are travelling.
After completing bag drop, ‘Check status’ will appear on the baggage card on the flight details screen in the app.
Passengers can track the progress of their luggage throughout their journey – from check in, on board, to when it arrives at their destination.
Air New Zealand chief digital officer Nikhil Ravishankar says Air New Zealand is dedicated to becoming the world’s leading digital airline and baggage tracking shows its commitment to delivering customer-focussed innovations.
“Updates to our app last year mean we are now able to be more adaptable when it comes to creating and adding digital solutions that solve pain points for customers. Baggage tracking is a perfect example of this.
Air NZ is testing the feature to 25% of app users travelling domestically and releasing the feature to five percent of app users travelling on an international short haul flight.
Hommy checks in with Artotel
Artotel Group, the Indonesian-based hospitality company, has acquired the franchise of Kyriad, Dafam Hotel Management and Milestone Pacific Hotel Group (MPHG) and has established an integrated ecosystem to power its distribution.
Called Hommy, it builds a bridge between different systems. Hotels joining the group are integrated into the ecosystem and can reap the benefit of a streamlined distribution.
D-EDGE’s Central Reservations System (CRS) was selected as a key component of Hommy. It supports Artotel’s rate strategy and allows a holistic reporting to precisely monitor hotels’ performance and make informed decisions.
It includes the D-EDGE Smart Booking Engine and Smart Channel Manager, connected to Artotel PMS and preferred payment gateway.
“Our vision as a hotel group is to become a digital leader in the hospitality industry by leveraging the latest technologies to enhance the guest experience,” said Eduard R. Pangkerego, COO, Artotel Group.
