“EMERGING TECHNOLOGY IN TRAVEL INDUSTRY”

Submitted for the Partial Fulfillment towards the awards of the Degree in

Master of Business Administration (MBA)

of

Dr. A.P.J. Abdul Kalam Technical University, Lucknow

By

Astha Rawat
2201920700084

Under the guidance of

Ms. Chitra Jha

Assistant Professor

at

GL Bajaj Institute of Technology and Management

Greater Noida
August, 2023
 G. L. BAJAJ
INSTITUTE OF TECHNOLOGY & MANAGEMENT
Approved by A.I.C.T.E. & affiliated to Dr. A.P.J. Abdul Kalam Technical University

Date:

CERTIFICATE

This is to certify that Astha Rawat has undertaken this Mini Project-2 titled “EMERGING

TECHNOLOGY IN TRAVEL INDUSTRY” for the partial fulfillment of the award of Master

of Business Administration degree from Dr. A P J Abdul Kalam Technical University,

Lucknow (U. P.), India.

I wish him/ her all the best for his/her bright future ahead.

Project Supervisor Head of Department

Department of Management Studies Department of Management Studies

 DECLARATION

The mini project report on the “EMERGING TECHNOLOGY IN TRAVEL INDUSTRY” has
been undertaken as a Mini Project-2 for the partial fulfillment of the award of Master of Business
Administration degree from Dr. A P J Abdul Kalam Technical University, Lucknow.

I hereby declare that this Project is my original work and the analysis and findings are for
academic purposes only. This project has not been submitted by the any students earlier to any
other institution/university.
 ACKNOWLEDGEMENT

A project of this length, one has to depend upon many people & for the completion of their projects
needed significant cooperation.

It is my immense pleasure to express my sincere gratitude to Ms. Chitra Jha. under whose supervision
I took this project. It was for their support, advice & guidance with a constant acknowledgement, I was
able to complete this project. Also I am very thankful to our Head of Dept. Sir for his immense
cooperation.

I am also very thankful to our parents and friends who supported us enormously while making this
project both mentally & physically.

Once again a great thanks to all of you whole heartedly.

Astha Rawat
Date: 21-08-2023
 Content Page

S.no. Topics Pg.No.

1. Industry choice and its overview 1

2. Market size of the industry in India 3

3. Business Model/s 4

4. Major competitors 5

5. Impact of technology and its application 7

6. Emerging technology impact 9

7. Estimated market size and market shares 10

8. Conclusion 12

9. Bibliography 13
 1. Industry choice and its overview
Travel Industry

In simple terms, the travel industry is concerned with providing services related to travel from one
location to another. This includes services that are directly related to the travel itself, such as
transportation, but also includes services related to catering for travelers needs and wants after
they have arrived at their destination.
It is often associated with the tourism industry but there is significant cross-over between the
two, especially in terms of the businesses that fall under their respective umbrellas.

Sectors within the travel industry

• Transportation
• Accommodation
• Food and beverage
• Entertainment
• Connected industries like financial industry, travel agents, tour operators
Out of these sectors, we are considering transportation and accommodation sector.

1. Transportation
For many people, when they think of the travel industry, they immediately think about
transportation and the companies that offer transport services. In reality, this is only one sector of
the travel industry, but it is perhaps the single most important, as it centers around actually
facilitating travel from one location to another. Included within this are road, rail, air and water
transportation services, as outlined below:

i) Airline Industry
The airline industry provides various forms of air travel, including commercial and chartered
flights. These flights can be overseas or domestic and can cater for relatively short distances,
right through to trips to the other side of the world. Different airlines tend to serve specific regions
and airports.

ii) Car Rental

Car rental plays a key role in the travel industry, dealing with the provision of temporary access to
cars and other similar vehicles. For travelers, the main benefit of this is the freedom that is provided

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via access to a car, as it means the process of getting around is not reliant on scheduled public
transport services.

iii) Coach Services

In many cases, travelers opt to use coach services to travel to their chosen location and this is often
more cost-effective than the main alternatives. Coaches also facilitate day trips, while local bus
services provide a means for getting around once travelers have arrived at their destination.

iv) Railway
Railways are one of the main ways that people travel domestically, while many rail services also
facilitate long-distance international travel too. Moreover, underground or subway-style train
services tend to provide a convenient way for travelers to get around large cities once they have
arrived.

2. Accommodation
Another vital sector within the travel industry is the accommodation sector. After all, most long-
distance travelers will require somewhere to stay overnight. With that being said, people’s
accommodation requirements can vary quite significantly, depending on the length of their stay,
the purpose of their journey, the budget they are operating on, the experience they wish to gain,
and their own personal preferences.

v) Hotels
The hotel industry and the travel industry are closely linked, with hotels being the most popular
form of accommodation for those travelling to a different location and staying overnight. Hotels
are establishments that provide access to beds within private rooms. These rooms usually have
en suite bathrooms and additional facilities.

vi) Shared Accommodation

Shared accommodation has emerged as an increasingly popular option for travelers, thanks to the
success of services like Airbnb. Through these platforms, guests can find homestay offerings. This
may mean having access to a private room in an occupied house or may mean having access to a
room that is shared with other guests.

vii) Camping
Considered a form of outdoor accommodation, camping involves staying overnight in basic
shelters, such as a tent. Travelers may opt to spend their time in a commercial campsite, which
will usually provide additional amenities, or they may instead camp in publicly accessible
conservation areas, such as national parks.
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Bed and Breakfast
A bed and breakfast is similar to a hotel, in the sense that guests are provided with a private room
for overnight stays. However, B&Bs tend to be converted family homes, often with the owners
still living there. As the name suggests, breakfast is provided, while a B&B will usually have a
fairly small number of rooms.

2. Market size of the industry in India

Value of travel market in India FY 2018-2027

(Published by Sandhya Keelery, May 20, 2022)

The value of travel market in India was estimated at 74 billion U.S. dollars in financial year 2020.
The travel market was estimated to grow around 127 billion U.S. dollars by financial year 2027.
Hotels and airlines made up the chunk of the market. Even though the industry was hit by the
COVID pandemic significantly, a path to recovery was expected according to experts from 2022.

Source. www.statista.com

Industry Scenario
$512 bn contributions to India's GDP by 2028 and 53 million jobs by 2029
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In 2020, the travel & tourism industry’s contribution to the GDP was US$ 121.9 billion; this is
expected to reach US$ 512 billion by 2028. In India, the industry’s direct contribution to the
GDP is expected to record an annual growth rate of 10.35% between 2019 and 2028.
By 2028, Indian tourism and hospitality is expected to earn US$ 50.9 billion as visitor exports
compared with US$ 28.9 billion in 2018. International tourist arrivals are expected to reach 30.5
million by 2028.

The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$
75 billion in FY20.

In FY20, tourism sector in India accounted for 39 million jobs, which was 8.0% of the total
employment in the country. By 2029, it is expected to account for about 53 million jobs.

The hotel & tourism sector received cumulative FDI inflow of US$ 15.89 billion between April
2000 and June 2021

3. Business model

Business model describes how an organization creates, delivers, and captures value. In
economic, social, cultural or other contexts. The process of business model construction and
modification is also called business model innovation and forms a part of business strategy

• B2C – Business to consumer. B2C businesses sell to their end-user. ...

• B2B – Business to business. In a B2B business model, a business sells its product or
service to another business.

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Source https://bmtoolbox.net/stories/airbnb/

4. Major competitor in the industry

Market cap of leading online travel companies worldwide as of December 2021

Source https://www.statista.com/statistics/

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 We can’t state the rankings of India’s online travel players definitively. Transaction data
isn’t available in an apples-to-apples form. But experts with views of representative slices of online
booking volumes, plus some figures revealed by major executives, enable us to infersome.

MakeMyTrip Group has about half of online travel agency sales of hotels, the industry’s product
with the richest commissions.

In the domestic hotel market, MakeMyTrip and Goibibo process about double the number of
transactions a year as Booking Holdings brands Booking.com and Agoda do. Expedia and its sister
brand Hotels.com rank significantly behind, experts estimated.

For outbound international hotel bookings, Booking.com is believed to be neck-and-neck with

MakeMyTrip, while Expedia is some distance behind, experts estimated.

What about with foreign visitors to India? Booking.com probably leads over MakeMyTrip.

For the hotel market, three out of four of its hotel bookings are domestic, while approximately 60
percent of its vacation package revenue comes from domestic travel, experts said.

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Source : https://skift.com/

“In terms of inbound market share for hotels, Booking.com has recently stolen a lot of Expedia’s
market share,” said Dhruv Shringi, CEO of Yatra.

“In the coming year, the lodging offerings from Airbnb.com, Booking.com, and Oyo, and the
flight and rail sales from Paytm will combine with pressure from rising new players like Musafir
and they’ll together present a major challenge for MakeMyTrip,” said Shekhar Anand, an analyst
for Euromonitor International.

5. Impact of technology and its application in the industry

Information Technology has played an important role in the hospitality and tourism industry
over the last decade. Technology has helped reduce costs, enhance operational efficiency, and
improve services and customer experience. Both customers and businesses can benefit from
improved communication, reservations, and guest service systems. Technology has helped tourism
and hospitality industries replace expensive human labor with technological labor. This helps
reduce labor costs, but also helps avoid customer service issues.

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Here are some examples of the ways that IT continues to improve the hospitality and tourism
industry.

i. Internet and Marketing

The internet has a powerful impact on hospitality and tourism. A customer’s first experience with
your business is a visit to your website. This includes looking at pictures and reviews from past
guests. It is vital for a business to effectively utilize online advertising, social media, blogs, and
online purchasing to help convenience their customers, especially when your competitors aredoing
the same thing.

ii. Computer Systems

Computer systems allow communication between larger hotel chains with multiple locations to
connect easier. They also help keep staff on the same page and make it easier to access information,
making your guests experience much better. Guest requests, housekeeping information, and
reservations can all be found on one system.

iii. Mobile Communication

Mobile tablets and smartphones have replaced large desktop computers, making them virtually
extinct. This is helpful, because many travelers take some type of mobile device with them on a
trip. This helps hospitality businesses keep customers advised of changes and delays to their
reservations, offer deals, and advertise by using GPS tracking.

iv. Smartphone as a Travel Buddy

Using your smartphone, you can plan a trip completely hassle-free. More importantly, your mobile
device can be your tour guide wherever you are.
You can use it to get real-time updates regarding your flight, check in and out of a hotel, and find
your way around your travel destination. It can be your map and compass, instantly locating nearby
cafes, restaurants, museums, and anything else you need.
Thanks to voice search and virtual assistants like Siri, Alexa, Google Assistant, and Cortana,your
journey can be even more convenient and exciting.

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 i. AI and Chat bots

More and more online travel agencies and hotels are leveraging AI-powered solutions to automate
bookings and provide personalized service.
One example is chatbots. Not only can they provide 24/7 customer support, but they can also make
bookings, provide instant answers to FAQs, process payments, and carry intelligent,human-like
conversations. They can be an ideal travel companion.
Thanks to machine learning, AI tools also provide insights into consumer behavior, interests, and
preferences regarding travel destinations, hotels, amenities, airlines, car rental companies, pricing,
and more.
Armed with such insights, OTAs and hotels can display or send relevant offers to customers.

Source https://www.cheekymonkeymedia.ca/

ii. AR and VR

VR (virtual reality) in travel enables you to transport yourself to another location virtually. You
can take a virtual tour of a hotel before booking a room or a restaurant before making a dinner
reservation.
You can “teleport” yourself into the Louvre, stand on Times Square, cross the Grand Canyon, or
marvel at the breathtaking views from Mount Everest. You could watch a hundred videos on
YouTube, but VR will make you feel as if you were there.
With AR (augmented reality), you can also take room tours and engage in various hotel facilities.

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You can take a peek inside an airplane, make sure your carry-on luggage is the right size, access
public transportation schedules, overcome language barriers, and much more.

6. Emerging technology impact- how it is changing or has

thepotential to change the business landscape

People’s need to travel faster, safer, and more efficiently has fueled the invention of great
technological solutions. During the last decades, the impact of technology on travel has become
even more significant thanks to the application of new IT services, leading to the rise of the online
travel market and the increasing digitalization of the travel industry. An important achievement
behind the online travel experience dates back to the 1960s when the first global distribution
system (GDS) was introduced. GDSs are online networks connecting suppliers - such as airlines,
hotels, or cruise lines - to providers, like travel agencies and online travel agencies. Having access
to the suppliers’ inventory, like the number of seats or hotel rooms available, GDSs allow providers
to access such information, helping customers to book multiple travel services at once. In 2019,
the distribution systems business segment of Amadeus, one of the most renowned GDSs
worldwide, generated revenues of roughly 3.5 billion U.S. dollars. However, due to the impact of
the coronavirus pandemic, the revenue of Amadeus worldwide in this segment sharply decreased
in 2020.

The use of technology in the travel and tourism industry

Among the technology trends shaping travel and tourism is cloud computing, which is used to
access, manage, and store data online. According to a 2020 study, over half of European travel
agencies and tour operators bought cloud computing services used over the internet, whereas
only 29 percent did the same in 2016. Meanwhile, a December 2020 survey focusing on the
usage of chatbots among travel and hospitality companies worldwide suggested that this type of
software could also play a big role in the future, with roughly 46 percent of respondents claiming
to be working on implementing chatbots to enable guests to make general inquiries or bookings.
Virtual agents and chatbots were also predicted to be among the main AI services implemented
or planned by airports by 2022.

Travelers’ opinions on the use of technology

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 As the coronavirus (COVID-19) pandemic disrupted normal travel, interest in the use of
technology to relaunch travel and tourism has increased since 2020, as shown by the idea of
introducing digital COVID-19 travel passports. Global research from 2020 found that travelers
from Thailand were the most convinced that technology would be important in minimizing human
interactions during the COVID-19 pandemic, while Germans were far more skeptical in this
respect. In terms of technologies that would increase confidence in travel, mobile applications that
provide on-trip notifications and alerts, as well as contactless payments, were among the favorite,
according to a September 2020 poll.

7. Estimated market size and market share

Based on service, the food & lodging segment is expected to be the fastest-growing segment,
growing at a CAGR of 14.2% during the forecast period. In 2020, the food and lodging segment
was also the most dominant, accounting for roughly 50.3 percent of the market. The rise of the
food and lodging industry is being aided by the increasing penetration of hotel booking services
such as Airbnb and Oravel Stays.

According to the industry, the corporate segment was the most dominant, and it is also expected
to be the fastest-growing category due to the global expansion of commercial activities. In 2020,
the corporate segment had a market share of roughly 65.6 percent, and it is predicted to increase
at a CAGR of 14.1 percent over the forecast period.

Source: https://www.businesswire.com/

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Based on travelers, Group was the largest and fastest-growing sector, accounting for 59.5 percent
of market share in 2020 and expected to increase at a substantial CAGR of 14.3 percent in the next
few years. The group segment is thriving since the costs of group tourism are lower. Furthermore,
for group travel, the service providers offer lower rates on lodging and transport.

Source: https://www.techsciresearch.com/

Due to rapidly increasing infrastructure, good circumstances for establishing enterprises, and
government policies aimed at encouraging foreign investment, Asia-Pacific is the largest and
fastest-growing market for business travel. In 2020, Asia-Pacific had a 43.5 percent market share,
followed by North America and Europe, which had 26.3 percent and 24.3 percent market shares,
respectively. Due to expanding economic activity, growing government initiatives seeking FDIs
(foreign direct investments), and continual infrastructural development in theregion, LAMEA is
likely to see significant growth.

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8. Conclusion

Travelers continue to seek authentic experiences. The tools they use to research and book
these experiences are constantly changing due to innovations in technology. Destinations
are also challenged by limited financial resources and strong competition for tourist dollars
from other iconic and even lesser known locations. The personalization of travel suggests
that independent travel will have a stronger presence than group travel; however, we must
always consider the type of traveler. The travel services sector is being forced to innovate
at a startling rate.

In the past, face to face consultations with a travel agent was paramount for booking both
leisure and business travel. Technology and global circumstances, such as pandemics,
financial collapses, and terrorism, have put pressure on tourism and travel services. With
the development of OTAs and emerging and disruptive technologies, the travel services
landscape is constantly changing.

So far we have discussed the elements of the five sectors of tourism: transportation,
accommodation, food and beverage, recreation and entertainment, and travel services.
With this foundation in place, let’s delve deeper into the industry by learning more about
how these sectors are promoted to customers

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 9. Bibliography

• https://www.revfine.com/travel-industry/

• https://www.statista.com/statistics/750856/india-travel-market-
size/#:~:text=The%20value%20of%20travel%20market,dollar20by%20financia
l%20year%20027

• https://www.investindia.gov.in/sector/tourism-hospitality

• https://www.techsciresearch.com/

• https://www.businesswire.com/

• https://www.cheekymonkeymedia.ca/

• https://skift.com/

• https://www.statista.com/statistics/

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