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IDC FutureScape: Worldwide Hospitality and Travel 2019 Predictions

IDC FutureScape: Worldwide Hospitality and Travel 2019 Predictions

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."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.

Please Note: Extended description available upon request.


IDC FutureScape Figure
Executive Summary
Summary of External Drivers
Predictions: Impact on Technology Buyers
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.
Associated Drivers
IT Impact
Guidance
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%.
Associated Drivers
IT Impact
Guidance
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.
Associated Drivers
IT Impact
Guidance
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.
Associated Drivers
IT Impact
Guidance
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.
Associated Drivers
IT Impact
Guidance
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.
Associated Drivers
IT Impact
Guidance
Prediction 7: Through 2019, 50% of large hotel chains will have mobile robotic deployments with modular components to facilitate multiple use cases and will thus have achieved increases in productivity of 25%.
Associated Drivers
IT Impact
Guidance
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.
Associated Drivers
IT Impact
Guidance
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.
Associated Drivers
IT Impact
Guidance
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%.
Associated Drivers
IT Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
Next Chapter of DX — Technology-Driven Transformation Altering Business and Society
The Race to Innovate — Speed of Change, Delivery, and Operations Separates Thrivers and Survivors
Sense, Compute, Actuate — Turning Data into Value
New Nature of Risk — Innovation Requires New Thinking in Security and Risk Management
Cyber Insecurity — Theft, Cyberattack, and Negligence Create a Crisis of Digital Trust
Rising Customer Expectations — More Convenience, Customization, and Control
The Future of Work — Bridging the Digital Talent Gap
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