One ring to rule them all

The next digital disruption of leisure travel

Leisure travel is about to encounter another wave of digital disruption, more powerful than the original advent of online travel agents in the 1990s. Our view is that it will significantly impact even the best run travel and leisure companies.

At the source of this disruption will be the emergence of significantly more capable travel intermediaries who will solve many ubiquitous customer and supplier ‘hassles’. We believe this business model – that we term ‘the Ring’ – will fundamentally shift the landscape of how customers interact with travel companies and how travel companies make money.

‘Digital predators’ such as Google have invested >$1 BN in leisure travel since 2011. As a result, they and a small number of other companies are now very close to being able to develop this disruptive business model.

This paper outlines a view of this next wave of digital disruption, describes what we think the winner(s) might look like, and what travel businesses need to do to prepare – whether in seeking to build a game changing business model, or in adapting their existing business model to prosper.

One ring to rule them all