ITB Berlin Poll: Where Travel Industry Stands United (and Divided)?

ITB Berlin Poll: Where Travel Industry Stands United (and Divided)?
ITB Berlin Poll: Where Travel Industry Stands United (and Divided)?
Written by Harry Johnson

The outcomes of the poll offered a clear overview of industry perspectives on some of the most urgent issues currently influencing travel.

The findings from a live audience poll conducted during a mainstage session at ITB Berlin have been revealed today. The session was entitled “Myth and Reality: Navigating Change in Travel and Technology,” and examined four critical statements regarding digitalization, artificial intelligence (AI), and innovation within the travel retail sector. The outcomes of the poll offered a clear overview of industry perspectives on some of the most urgent issues currently influencing travel.

Participants were invited to express their opinions on the following subjects:

The function of intermediaries in travel distribution. – A significant 72% of the audience concurred that both direct and indirect distribution channels are essential, highlighting the ongoing importance of intermediaries within the travel ecosystem. Wilson noted that the travel industry is becoming increasingly intricate. Airlines are broadening their service offerings, low-cost carriers are expanding while frequently operating outside conventional booking platforms, and travelers are seeking more than just flights—they require accommodations, activities, and additional services to complete their travel experience. Many travelers prefer to avoid this complexity, desiring simplicity, convenience, and assurance in their selections. However, the industry has yet to fulfill this expectation. A 2024 study by Expedia indicated that travelers review as many as 277 pages prior to making a booking, illustrating a significant trust deficit. Wilson stressed that the solution does not lie in compelling travelers to utilize direct-only channels but rather in providing smarter, more relevant options regardless of their preferred booking method. He emphasized that a contemporary omnichannel strategy is often crucial, allowing travelers to book in their preferred manner while ensuring consistency and quality across all platforms.

The efficacy of personalization in travel. – The audience was nearly evenly divided on this issue, with 49% agreeing that the industry continues to face challenges in delivering personalization at scale, while 51% disagreed. Wilson elaborated that although broad segmentation is effective for general targeting, it often lacks the necessary depth, failing to consider individual preferences, contextual factors, or real-time intentions. He noted that consumers are still anticipating genuinely personalized digital experiences that can adapt dynamically to their needs. Even in digitally advanced sectors such as online shopping and video streaming, which excel at presenting content based on previous user behavior, there remains a challenge in recognizing subtle shifts in user intent, frequently reinforcing filter bubbles instead of expanding options. The travel industry has a unique opportunity to excel in retailing and personalization by drawing insights from other sectors and focusing on relevance rather than sheer volume. Wilson underscored his belief that AI offers significant potential in this domain: By investing in AI-driven retail strategies now, he asserted that travel brands can transcend traditional segmentation approaches and transform personalized, predictive travel planning.

The imperative for AI adoption is becoming increasingly clear. A significant 65% of participants concurred that organizations that do not integrate AI will forfeit their competitive advantage within a three-year timeframe, highlighting the industry’s acknowledgment of AI’s expanding impact. Wilson pointed out that the pace of technology adoption is accelerating at an extraordinary rate, with AI being no exception. Historically, each successive wave of technology has been adopted more swiftly than its predecessor; for instance, it took 35 years for the telephone to achieve widespread use, while smartphones reached that milestone in merely five years. He asserted that AI is poised to follow an even more rapid growth trajectory. With the existing infrastructure of cloud computing and extensive data, businesses can implement AI solutions without the necessity of overhauling their entire technological framework. Wilson emphasized that AI is already providing value in two primary domains: visibly to consumers through digital agents and enhanced personalization, and internally by optimizing operations, logistics, and automation. The existence of pre-built AI models and APIs significantly reduces entry barriers, enabling companies to implement AI solutions more swiftly than ever. He also noted that experts anticipate the global AI market will reach $1.8 trillion by 2030, positioning it as a crucial economic driver. However, he cautioned that the swift growth of AI presents challenges, including an expected 165% surge in data center power demand by the decade’s end, necessitating a transformation in infrastructure across various sectors. Wilson concluded by stating that travel companies need not develop everything independently; collaborating with a seasoned technology provider, such as Sabre, can expedite AI adoption and help them maintain competitiveness in an increasingly intelligent market.

The disparity between sustainability expectations and actual consumer behavior is significant. A notable 90% of respondents indicated that while travelers show an interest in sustainability, they are generally reluctant to incur additional costs for it. Wilson highlighted a considerable ‘say-do’ gap regarding sustainability. Although three-quarters of travelers assert a desire to adopt more sustainable practices, their primary concern remains price. While half of the travelers acknowledge that sustainability affects their decisions, only 6 to 13% genuinely incorporate it into their booking processes. When sustainability entails extra expenses or effort, most consumers tend to prioritize convenience. Wilson stressed that the focus should not be on providing more options, but rather on offering better ones. He argued that sustainability is most effective when it is integrated into the travel experience rather than treated as an additional choice. He pointed out that altering consumer behavior is less about convincing travelers and more about crafting a journey where the sustainable option is perceived as the most natural and obvious selection. Ultimately, Wilson asserted that sustainability should not be an afterthought; it must be woven into the very fabric of retailing and distribution, ensuring that travelers encounter sustainable choices as the default and intuitive option.

The findings provide a comprehensive overview of the current state of the industry. The expert audience’s vote from the ITB underscores the essential role intermediaries play in alleviating the complexities of travel; however, there remains a significant need to enhance traveler trust. The challenge of personalization persists, as organizations find it difficult to progress from broad segmentation to delivering genuinely dynamic and relevant experiences. The integration of AI has transitioned from being an optional enhancement to a critical necessity, fundamentally influencing the competitive dynamics within the travel sector. Furthermore, the disparity between stated intentions and actual practices regarding sustainability is evident, with price continuing to be the foremost consideration for travelers. To foster genuine behavioral change, the industry must incorporate sustainability into the travel experience rather than presenting it as an ancillary option.

The results of the audience poll highlight ongoing discussions within the industry regarding the speed and effects of technological advancements in travel. As AI becomes increasingly prominent, personalization encounters obstacles, and sustainability remains a multifaceted challenge, companies must adeptly navigate these shifting trends to maintain a competitive edge.

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