by Mia Taylor
Last updated: 4:47 PM ET, Fri May 4, 2018
What will the travel industry leadership requirements be in 2025?
A new report released by the Hospitality & Leadership practiceat Spencer Stuart, the global executive recruiting firm, seeks to address that question.
The report, titled Travel 2025: How Digital Transformation and Global Growth are Redefining Leadership Roles, concludes that the next generation of travel leaders must be more data-and technology-savvy.
In addition, they must have more diverse international experience in order to transform their business and compete effectively amid the growth of technology-driven business models and shifts in customer and workforce demographics.
In order to develop its report, Spencer Stuart spoke with leaders from the airline, hospitality, ground transportation and travel and tour sectors to identify the top trends that will impact the travel industry over the next decade.
These travel leaders discussed the implications of various industry trends on their businesses and outlined the capabilities that will be required of the next generation of travel leaders. Future travel leaders will need to be capable of the following:
-Transforming their businesses by leveraging emerging technologies and innovative business models and by defining new business models
-Leading an increasingly multicultural workforce and serve diverse multicultural guests in all markets
-Tearing down divisional silos, integrate business units and promote cross-functional collaboration
-Empowering teams, particularly those in direct contact with customers, with the data and resources needed to make real-time decisions
-Establishing new partnerships both inside and outside of the travel ecosystem to provide an "experience continuum" for customers
-Building company culture that encourages new ways of thinking, takes risks and isn't afraid to "fail fast" and move on
"During the course of our conversations with leaders in the travel industry, it became clear that tomorrow's leaders need to be immersed in current business demands, but also be able to look around the corner to see what's next when it comes to new business opportunities," said Jerry Noonan, co-founder of Spencer Stuart's global Hospitality & Leadership Practice and leader of the study. "These leaders need to be strategic thinking, and outward facing with a creative mindset that looks beyond the conventional."
In addition to identifying broader trends in the travel industry, "Travel 2025" looked at trends within specific travel sectors. The big takeaways here touched upon airlines, ground transportation, hotels and tour operators.
Airlines
-Recent consolidation and improving fuel prices have enabled airlines to invest in infrastructure and technology
-U.S.- based carriers, in particular, are using technology to enhance a seamless customer experience
Ground Transportation
-Driverless vehicles will transform the industry and the most-forward thinking companies are preparing to change business models to meet customer demands
-Technology is being used to reduce and/or retrain workforces all with the idea to bring up efficiency and drive down costs
Hotels
-To compete with sector disruptors, more decision-making is being made by those dealing directly with the customer
-Digital technology is one of the greatest assets to aid the decision-making process
Travel and Tour Operators
-Travel companies will use technology and a wealth of customer data to "tailor the offering to the exact needs of the customer - even when the customer doesn't know yet what he needs," said one travel company leader.
-Companies are investing in new technology, forging partnerships with digital players and others to increase offerings, and developing branded properties appealing to modern travelers' sensibilities
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