Travel firms are optimistic about prospects for 2018 and expect ancillary revenues to boost earnings, according to a survey by Rentalcars Connect.
The B2B arm of OTA giant Booking.com’s car rental division gauged sentiment among industry leaders in its Q1 Travel Pulse survey.
It found that 88% felt were optimistic about the year ahead in travel while 70% expected the number of ancillary revenue streams that they offer to increase over the coming year.
Rentalcars Connect said respondents included bosses of airlines, travel agents, hotels as well as other travel companies.
Fraser Ellacott, managing director at Rentalcars Connect, said: “The travel industry is thriving, and ancillary revenue streams have become a key enabler of this success.
“Offering additional services during the booking process is becoming more popular, as it provides a seamless transition between online and offline activity, whether that’s before, during, or after a trip.”
The results also suggested advances in technology are, at least in part, a factor in respondents’ optimistic outlook.
The Travel Pulse found 58% of respondents expect driverless vehicles to bring opportunities to their business.
The majority also said personalisation and mobile optimisation would be one of the most important contributing factors to the success of their digital platforms.
Ellacott added: “The results of our Travel Pulse show travel businesses striving to provide a service that is as comprehensive as possible, with a ‘one-stop shop’ culture bringing the entire travel experience under one roof in many cases.
“Businesses in this industry have a clear understanding that customers are increasingly looking for convenience and personalisation, and are utilising innovative technology to meet this demand.”
The Q1 Travel Pulse survey took place in February 2018, Fifty travel industry leaders were asked the below questions.
1.How do you think driverless vehicles will affect your business?
2.What do you expect to happen to the number of ancillary revenue streams you offer in the coming 12 months?
3.What is your general level of business confidence for the travel industry in 2018?
4.What do you think will be the most important factor contributing to the success of your digital platforms in the next year?
5.What difference would a no-deal Brexit likely have on your business?