As travellers increasingly seek more authentic experiences, as well as opting to book their own global travel, the future of tourism is changing in line with globalisation, technology and automation.
The travel industry therefore needs to be at the forefront of these changes in order to plan according and claim a piece of the shrinking pie.
This is the opinion of Yugen Pillay, Director and National Leader of Business Consulting and Tourism Champion for SNG Grant Thornton, responding to a query from Tourism Update as to whether the shocking demise of Thomas Cook was a ‘sign of the times’ and whether it would drive change in the industry.
Global analyst, Publicis Sapient’s Executive Vice President and Global Head of Travel and Hospitality, Sooho Choi, agreed with Pillay, highlighting that the demise of Thomas Cook should serve as a warning that the travel sector is not immune to digital disruption.
“Thomas Cook faced the formidable challenge of competing as a high street retailer, hotelier, European airline and digital business at a time when consumers became increasingly empowered – through online – to package their own holidays.” He added that the closure of the travel giant should serve as a warning that the travel sector was not immune to digital disruption.
“We have seen this story play out across many other industries. In many cases, the incumbents didn’t react to their new digital-native competition until it was too late,” said Choi.
Pillay added that the closure of large conglomerates such as Thomas Cook provided opportunities for small operators to fill this void. “If the demand remains the same, the knock-on effect could encourage more small operators to enter the market or increase their market share,” he said.
