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.