Article | June 20, 2023
“I believe that augmented reality will be the biggest technological revolution that happens in our lifetimes.”
– Tim Sweeney, Founder and CEO of Epic Games
Augmented reality (AR) has proved to be a significant concept in tourism and hospitality management in the past few years. It allows us to enhance the physical environment and enhance the experience of exploring the surrounding area.
According to Grand View Research, the global market for augmented reality was worth USD 25.33 billion in 2021. From 2022 to 2030, the market is expected to grow at a compound annual growth rate (CAGR) of 40.9%.
As things keep pace with digitalization and this generation seeks quick and efficient yet reliable methods, every sector widely uses the application of augmented reality.
According to Hospitality Tech, the market size of augmented reality will reach $198 billion by 2025, and the hotel business will be one of the key contributors to this income target. Effectively, Starwood, Marriott and Holiday Inn are already making a difference in the travel and hospitality industry by leveraging this technology. An investment in AR brings a lot of change in business revenue for both small hoteliers and prominent hotel tycoons.
AR Improve Customer Experience for Travel and Hospitality
Redefine the customer experience with augmented reality in the tourism industry. AR-based travel apps help businesses enhance their services and offer personalized experiences to their customers. By adding interactive hotel features that make the space more fun, you can get people to visit nearby attractions.
Utilizing CX to maintain and expand a client base produces a terrific asset that positively affects ROI. CX effectively boosts customer lifetime value (LTV), which can become self-perpetuating.
Companies that excel at CX and customer-centricity are 60% more profitable and generate 5.7% more revenue than those that don't.
Ideas for Implementing AR in the Tourism and Hotel Industry
AR is utilized chiefly via smartphones and offers many options concerning interactive experiences.
AR in Excursions & Travel Attractions
AR technology may be a terrific marketing tool for guiding first-time guests through the hotel and a great way to retain customers and provide more engaging experiences.
With the application of augmented reality software, a standard tourist map comes to life. Moreover, AR technology enables clients to examine points of interest, restaurants, and other businesses. Your hotel restaurant may even use augmented reality to let customers explore the menu and ingredients in a new way by showing them 3D versions of the meals on their phones.
If you have a travel mobile app with AR, you can point out the transportation objects to get the best possible directions, travel route, next destination, and places to travel to. Pokemon Go shows one such example of how you can use modern digital technologies to make the travel experience even better. It became the first popular augmented reality game. This AR app brought players out into the street and made them move and travel a lot.
Scadi is one such AR app in travel for visitors of Alpine ski resorts. It uses advanced algorithms to create the most comfortable, safe and exciting routes for skiers and snowboarders.
Integrates with other technology
Using augmented reality in conjunction with other technologies such as beacon technology allows your hotel to more efficiently promote to visitors and upsell through push notifications. For example, through push notifications, hotels may give partner companies special offers or discounts, and vice versa, partner businesses can advertise the hotel.
Hospitality Industry Must Make Room for AR for Better ROI
In a post-pandemic context, the travel and hotel industries embrace technological advancements that enhance visitor experiences, eventually boosting corporate income and reducing operating expenses. Utilizing interactive technologies like AR, VR, and other interactive technologies increases operational efficiency, productivity, and ROI.
By using augmented reality with CMMS (Computerized Maintenance Management System) or EAM, you gain more understanding (Enterprise Asset Management). Augmented reality can assist facility managers in boosting the efficiency of their engineers and reducing the expense of ensuring their safety.
AR will assist them in increasing their revenue by reducing their maintenance expenses. Using AR-based product models, the hospitality industry is gaining a significant competitive edge, resulting in faster sales cycles.
During the Olympic and Paralympic Games in London in 2012, Holiday Inn introduced one of the first uses of Augmented Reality in a hotel setting.
The experiences used picture recognition and chroma video. The program identified hotel locations and activated athlete video footage, merging real and virtual components. This Holiday Inn use case shows how hotels may leverage AR to develop unique guest experiences around local events. In addition, the campaign helped promote the hotel and bolster its status as the official hotel for the London 2012 Olympic and Paralympic Games.
The Hub Hotel from Premier Inn, the largest hotel chain in the United Kingdom, is one of the few places to have adopted the AR technology back in 2016. The hotel provided a wall map of the local region in each room. Tourists could use their smartphones to read information about local areas of interest by pointing them at a wall.
The benefits of augmented reality in the travel and hospitality industries are immense. AR is a potent tool for increasing company potential and returns on investment. Utilizing innovative technology boosts your hotel's exposure and brand awareness while propelling it into the digital age. Augmented reality in the tourism industry truly sets you apart from the competition.
How is augmented reality changing the travel & tourism industry?
Augmented reality helps hotels enhance the physical locations they are attempting to attract visitors to, such as hotel rooms and local attractions.
What is digital transformation in the hospitality industry?
Digital transformation refers to how companies restructure themselves to adapt and modify their corporate culture to empower innovations that utilize technology and propel their enterprises to new levels of growth.
What are the benefits of augmented reality?
Creates unique customer experiences
Reduces cognitive overload
Article | July 24, 2023
In 2020, the number of suspected online travel fraud attempts in the U.S. jumped by 136.6%. Two years later, the online travel fraud “industry” is still going strong, making online travel agencies and tourism businesses lose their money and reputation.
"Traveling has always been when people are more vulnerable. A few hundred years ago, the perpetrators were pirates or highwaymen. Now those criminals are still out there, but they've changed their methods to focus on digital attacks instead."
-Caleb Barlow, ex-Vice President of X-Force Threat Intelligence at IBM Security.
Mitigating fraud risk is important in any industry, but it is especially important in industries like travel where competition is fierce and margins are shrinking. The high resale value of its digital goods makes the travel industry vulnerable to fraud.
Fortunately, advanced solutions that prevent fraud have shown great results in the airline and travel industries. Machine learning and artificial intelligence tools are improving in efficiency. With their help and a variety of other methods, a good travel fraud prevention team can curb fraud in the travel industry, increase profit margins, and cut down on the costs and time taken for manual reviews of transactions to prevent financial losses.
How are Online Travel Agencies Mitigating Fraud Risks and Safeguarding Revenue?
Online travel agencies need to be on their toes to preserve their revenue and reputation, and the integrity of their operations to grow and sustain their businesses. Modern online fraud prevention methods can protect you from fraud without jeopardizing the customer experience. Let us look at these methods:
Implementing Machine Learning-based Solutions
Machine learning-based models can be the backbone of your fraud protection strategy. These models can recognize patterns and predict outcomes. They help you identify anomalies in customer behavior in real time, flag an account-takeover attempt, analyze transaction riskiness, and block them before they result in a chargeback. ML-based fraud detection software like Signifyd and Riskified detects illegitimate activities related to payments, account creation, purchases, and chargebacks. They monitor websites, networks, and applications for fraud and prevent digital payment fraud.
It is important to remember that you need to strike a good balance between these preventive measures and your customer experience, so you do not lose business by focusing on only one aspect.
This method focuses on the credit card used for booking. Using an intelligence tool, check if there is a mismatch between the user’s IP address and their billing information and if the same user is making too many bookings from the same account or same card. Combine these insights with user verification and fraud scoring tools so you can reject suspicious transactions automatically. Also, keep an eye on changes to bookings to avoid problems, and follow the Payment Card Industry Data Security Standard (PCI DS S) to make sure card payments are as safe as possible.
Gather important customer data like email addresses, credit card information, loyalty points, and social networking handles. Behavioral data on what the customer does on your website or your mobile app, the devices through which the customer connects to the website, and their email address or location can help prevent fraud. Additionally, online travel agencies can verify users in the following ways:
Use an address verification service (AVS) and a card security code (CVV or CVC). Verify scanned ID documents using SaaS products to add another layer of security to every transaction.
Create a blacklist to block specific users if you notice any suspicious attempts.
Use device fingerprinting to block devices previously associated with fraudulent activities.
To prevent account takeover attempts, deploy two-factor authentication for travel agents, and 3D secure PIN codes for end customers. Biometric technology and mobile payment wallet apps like Google Pay, and Apple Pay can curb swindlers from getting into a customer’s account without secure pins or fingerprints.
Set up a process for verifying every supplier before making any payments. Check their business license, business reviews on Google, and check their Google Street View to confirm if a hotel actually exists at the mentioned address. Ensure that there is no correlation between a steep increase in hotel prices and booking activity because it could be a hotel price spike scam.
Block Bot Attacks
Any kind of abnormal spike in web or app traffic can be an indication of a bot attack. Real-time protection against bots can be a great way to handle illegitimate traffic. Compare every website request against the in-memory pattern database using ML and AI to check and block bots swiftly. Implement networking that can safeguard your domains within milliseconds upon detecting a bad bot.
Control Friendly Fraud
Chargeback abuses are hard to prevent. The only way to fight back is to document compelling evidence to prove that the said transaction was legitimate. Document order forms, tracking numbers, online travel agency customer communication logs, any kind of travel product redemption evidence, and confirmation for items delivered to an address that matches with the address verification service (AVS).
Air France Sped Up Manual Reviews By 70%
Air France wanted an easy way to access reliable information on potentially risky transactions. So they chose SEON’s Intelligence Tool.
“The time spent by Air France analysts on manual reviews is down by an impressive 70%.”
- Eric Facquet, Deputy Manager of Fraud Prevention at Air France
Summing It Up
Tackle online travel fraud head-on while keeping in mind your end customer. You must protect your customers from fraud in a way that is strong, practical, and well-balanced. This way should cover the customer's entire journey with you, both literally and figuratively.
Which software tools can help with fraud detection?
Fraud detection software tools such as SEON, ClickGUARD, Riskified and Oracle Adaptive Access Manager can help detect fraud.
How can you improve fraud detection?
Use machine learning models to automate processes for fraud investigation, and regularly update rules for detection and how to handle alerts.
What does fraud detection software do?
Fraud detection software regulates accounts, payments, purchases, and events in real-time to detect any fraudulent activities. It also protects sensitive company and customer data.
Article | June 29, 2023
If a kid comes to me nowadays and tells me about his passion for working in the hotel industry, he goes back home with a dream to become a pilot. I am not saying that the hotel industry is the worst kind of industry currently existing in today’s environment, but I am also not denying that.
Now, no offence to the hoteliers. You guys rock! It is no joke to work on a New Year Eve and see other people celebrating it while you guys make it happen. You have my respect! But I am probably not that tough. It took me a whole trial and error approach to declare this industry a nightmare for me. But I have so many of my friends still working in hotels and loving every second of their life. (At least that’s what they tell me.)
So why were our experiences so different? Why do I know that so many people are not really made for this industry? And what does it take to be a hotelier? I will try to answer these questions through my experience and observations.
Why Hotel Management?
It is that one question that is the most common and important one. Before taking any big decision, one should be asking a similar question. But what was my why?
Allow me to rewind my journey. I was in my 12th with commerce stream, and I was going through that self-enquiry phase. What after this? There was no 13th, nor did I enjoy accountancy too much to do it until I die.
So I used to surf the internet and explore different career options almost every day. That was one of my significant hobbies during that time. I used to evaluate my choices, and very soon I understood that I had limited options in the commerce field. So it was arts then? But what was the median salary in that sector?
After a lot of research, I realised the median salary in the arts sector was ‘disappointing’.
But still, if not that, then what? What was I going to do with my life? It was then that I saw the picture of a cruise ship and remembered 'Titanic'. It was then that I imagined the luxury of a 5-star hotel. It was that moment where I was about to make one of the stupidest decisions of my life.
I had never stepped into a kitchen nor showed the slightest interest in making any dish. I never really fancied cleaning glasses, nor did I like managing people under me. I also didn’t know absolutely anything about what was this industry all about.
But I dared to share it with my sister, and she was like, wow! It sounds so different! I told this to my friends, and they were like, wow! We always knew you would be doing something different! I told this to my father, and he told me students have to clean toilets during the internship, and I shouted, ‘But that’s not a big deal! Anyone can do that!’ Dad said, ‘Do whatever you want to do then, my son.’
Well, so what did I want apart from freedom in my life at that point? Maybe maturity? Oh! Screw that!
So I gave the entrance exam and got a decent rank. I desired to stand in the lobby of a 5-star-hotel and meet salacious women. I was pretty sure that many women would choose that industry apart from me. That was enough motivation! So yes, my reasons to choose the hotel industry was very logical and thoughtful, suffice to say.
What Happens in a Hotel?
The hotel industry is one of the most glamorous industries out there. Everything is so clean, eloquent, expensive, and pretty. People come to a 5-star hotel, are warmly welcomed, served drinks; they are provided comfortable beds to sleep in, and they enjoy their stay and endless services. Then they simply check out.
My only mistake while considering this option was that I wouldn’t be treated like one of those ‘People’ there. In our very first lecture, the term ‘Guest’ was taught to us and how we are not them. We are the ones who would serve them. We would be the waiters, the cooks, the greeters, the bartenders, etc. We wouldn’t be drinking with them but watching them while they would be cavorting.
That was a shocker! So many things happen in a hotel, and hoteliers make those things happen. They do all the hard work. The Bakery Chef would spend hours decorating the cake, which the guests would smash on each other's faces. The housekeeper would clean the bathtub while the guest would take five more baths after that.
The front desk agent would be greeting the guest during check-in, and the guest would throw tantrums because of his arduous journey. Suddenly my bubble broke, and I realised what I really signed for. I signed for an everyday vacation in hell.
I think adulthood is about that realisation when you get to know that bread isn’t free. And what buys that bread isn’t that easy to get. And how much that thing matters to you is going to decide how happy you are going to be in your life.
If I was that guy who had grown up watching Masterchef and experimenting in the Kitchen all my life, then a Gordon Ramsey could have come out of me.
If I were a fastidious guy who wanted everything to be clean and perfect, then an entrepreneur or a manager could have come out of me who would have tried to do that during his job.
If I were a guy who loved making people smile, then interacting with guests while serving the food or taking their check-ins would have been the best things out there for me.
You get my point! There are so many things that could have made hotel management an ideal career choice for me. It really is a glamorous industry, and it can provide satisfaction as a career option to some people out there. But that wasn’t the case with me. Sadly that wasn’t the case with many of my batchmates and colleagues of mine as well.
After completing my three-year graduation, four-month industrial training, and one-year job as a Front Desk Agent, I quit. Nor could the managers inspire me, nor any other incentives that the industry had to offer. My future looked as grim as the life of an insect (No offence to you if you are an insect.)
So yes, be wise before choosing this industry because this industry demands a lot! It is one of the most selfless jobs out there, and you have to be prepared for the nasty feedbacks after all your hard work. So do some self-inspection (Unlike me) if you are stuck in this industry or are planning to do so.
And if you love where you are right now, then as I said, you have my respect.
Article | December 3, 2020
The travel industry is getting back to business, and demand has skyrocketed for travel technologies that make interactions possible between companies and corporate travelers. A recent Gartner survey reveals how 2020 affected CFOs with their corporate travel and expense management tasks globally.
How will finance teams report and forecast expenses? How can corporate travel costs be managed? How to manage travel expense management processes effortlessly? Does this sound familiar to you? These were a few valid questions that kept companies engaged in finding answers during the pandemic.
Many finance leaders want to implement proper corporate travel and expense management services and find solutions to bring consistency and clarity to their financial processes. While switching from manual processes to automated management systems can be difficult post-pandemic, with an efficient travel and expense management tool or software, your company can gain optimum benefits and stay productive in the future. This article will show you how it evolved through the coronavirus phase efficiently.
Adoption of T&E Management Process for Seamless Work Experience
An American Express survey found that 55% of the chief executives and senior financial managers ranked rising travel and expense costs as a top concern during the peak pandemic phase.
Digital transformation of your processes is a critical strategy for spend management, and it ensures that employees are using the right product to get the best value. By adopting an efficient travel and expense management tool, your company can gain stellar benefits for your finance team to cater varied requirements, and keep a rigorous control over corporate travel spend.
Before looking into how travel expense management processes are evolving post-pandemic, here are the benefits and value travel and expense management solutions offer. Also, this will further facilitate your finance team to manage the current corporate travel scenario effectively.
Benefits of Travel and Expense Management Solutions
The travel and expense management didn’t disappear during the pandemic. Instead, it accelerated its core value. The idea of integrating travel and expense management services with the help of big data in the travel industry is to leverage best practices for travel expense management that can help analyze and extract key information to diverse corporate travel finance functions.
Travel industry leaders who are integrating effective travel expense management services in their corporate travel system have experienced the following benefits:
Automatic processes of expenditure
Data-driven decisions are smarter
Ability to forecast more accurately
Delivers better user experience
Quick access to integrated data from expenditures
Gain deep data visibility
Higher rate of compliance with corporate policies in finance
These significant upticks will benefit your company and will simultaneously improve your corporate travel policies. Understanding these benefits will help you identify how travel technology can help your company manage complex financial tasks that arose during the pandemic.
According to a Gartner survey, a travel expense management system is essential as a key solution to manage the corporate travel economy. Any company, big or small, needs to control its expenditure to recover during the pandemic.
Complex Forms of T&E Management Are Gone
Legacy processes may get a job done, but they are more time consuming, error-prone, and do not provide visibility into travel spend. And when your travel and expense management process is slow and cumbersome, it can slow down the growth trajectory of your business.
Corporate travel and expense management automation and its associated features like corporate travel policy, quick and easy booking, automated expense and reimbursement solutions, live credit card feeds, backup analytics capabilities, and more have taken precedence post-pandemic. These services offer more visibility into the travel spend of your employees. With top travel and expense management solutions, your finance teams can monitor and control costs and expenses in the long run.
While many corporate travelers have started researching and organizing trips online, you need to add value to financial services by adopting automated travel and expense management solutions that work effortlessly.
Core Focus Areas of Travel and Expense Management
The post-pandemic era has seen a lot of companies embracing new and updated travel and expense management solutions to drive cost savings, and enable finance teams to have a better control over their road warriors. Here are some:
Contactless Data Record Is the next Big Thing
Travel and expense management systems allow employees to record all corporate travel bills and receipts through mobile apps and create expense reports immediately. Big data in the travel industry has played a significant role during the pandemic. Technology leaders have already experienced the benefits of travel and expense management.
For example, TripActions’ travel and expense management platform uses data to learn about business travelers’ preferences, and predicts within 30 seconds what travelers are going to book with 90% accuracy. The advantage of big data to travel and expense management has already organized several effortless finance processes for corporate travelers to experience seamless budgets.
Automation Is Crucial
Integrating travel and expense management solutions could easily add to the unimaginable overheads that companies are experiencing. Automation is one of these solutions. Its integration in the travel and expense management system will give rise to a paperless world that will facilitate finance functions to build an audit trail. With this, it also ensures total compliance to keep the organization and its process fast.
Agile Technology Is the Enabler
Critically for the travel industry, agile technology has allowed multiple methodologies for incremental development in corporate travels, which has transformed the processes from rigid to flexible. The agile process in corporate travel and expense management allows analyzing tangible results on expense. The approach also provides the potential to change plans according to the requirements.
For example, Lola.com, the agile travel management company is helping corporate travelers book, re-book, and take the task of expense reports off the table easily. Finance teams arrange travel policies in minutes and equally manage, control, and view expenditure effortlessly. In short, agile technology is making it much easier for travelers and companies all round.
To address the use of agile technology in travel and expense management, Jeanne Hopkins, former CMO at Lola.com, the agile travel management company shares
“Finance teams at Lola.com have tried managing, controlling, and got visibility into expenditures efficiently by implementing travel and expense management. Small and mid-sized businesses have to be fast and dynamic in the changing scenario of travel, so that actions like booking, re-booking, and managing corporate travel could be performed with efficiency and results in high productivity.”
A Hassle-free Expense Management System
Expense has been one common challenge with corporate travel programs. Integrating travel and expense management in your company can eventually introduce you to a hassle-free work solution. As the process involves collecting receipts from multiple sources, either from hotels, flights, or car rentals, travel and expense management solutions make it easier for a manager to look at all corporate travel costs at once. Also, in terms of future travel spend and potential savings, the capability of this management remains exceptional. Modern travel and expense management solutions also include self-service, real time, and easy navigation.
For example, for travelers, Lola.com has a large inventory of flights and hotels that allow users to avoid going to various sites to compare fares, and save preferences, loyalty programs, and provides payment options in one place. Traveler profiles are automatically stored so that users can book with one click. The 24/7 support team then ensures easy booking and re-booking for its users without any delay.
End-to-End Integration Is the New Order of Workforce
End-to-end integrated systems in your company will help your finance team implement best practices for travel expense management. This will make it easier for your employees to initiate, approve, and pay each transaction out of hundreds within minutes, thereby creating a seamless task without any manual involvement.
Travel and Expense Management Trends
When you automate your travel and expense process, it will not only maximize your returns but, at the same time, it will minimize your spending. This will save you both time and money. Below are the reasons you will want to consider making a switch to automate from a manual process.
Remove Guess Work from Expense Process
For finance personnel in your company, the new travel and expense management system can be set up in five minutes. One of the travel and expense management tools, like Expensify, helps with easy expense tracking and reporting. Similar to this, SpendCatcher – a mobile application of MobileXpense.com that is infused with AI and deep machine learning extracts payment information with just one tap.
Companies whose employees use a corporate travel and expense management system can receive reports according to department, employee, direct travel supplier, hotel, or car rental company. This information helps managers analyze spending patterns by actively monitoring it with up-to-date information in one flow from various travel suppliers.
In this case, Concur TripLink connects to corporate travelers for direct bookings across the borders. It gives visibility of bookings no matter where it is booked.
True Visibility into Spending
The corporate travel and expense report management system automatically flags and creates analyses of dashboards highlight hidden expenditure. This can be helpful to know:
How much expenditure is going in personal corporate travel cards, and why
Find expense categories easily
Find out why expense is falling short and ask for details
In this context, MasterCard International is rapidly approaching towards a smart, web-based expense management system to control spending, generate comprehensive spending reports, and accurately integrate purchase data. Thus, delivering business efficiently, quickly, and easily.
Rise of Bleisure Travel
Corporate travel and expense management also includes ‘bleisure travel’ for corporate travelers, those looking to combine business travel with leisure time. With agile travel and expense management tools, you can make quick changes in plans to keep your employees and finance team happy and productive while mapping the budget. In this case, Lola.com has made travel and expense management real by providing an effortless way to manage, book, and report on business plus leisure travel, by encouraging its employers to save most of their time and money.
Travel technology offers a deserving platform with travel and expense management to companies for added efficiency and visibility over travel spend. As corporate travel businesses are returning rapidly towards their regular work scenarios, the travel industry will see a rise in revenue. Travel and expense management system will be one of the powerful remedies to the travel industry and will increase its scope to drive growth post-pandemic.
According to the new Skift report, 88% of corporate travelers will drive travel technology company growth. 86% of corporate travel managers believe it. Put an end to complex budget management and legacy processes; it is time to know how to manage travel expenses in corporate.
Frequently Asked Questions
What is travel and expense process?
The aim of the travel and expense process is the complete administration of travel expenses, including the recording of expenses, posting in Financial Accounting (FI), and allocation in Controlling (CO) and Funds Management (FI-FM). The process also involves the valuation of costs associated with business-related activities.
Why is expense management important?
Expense management is important for businesses because it helps employees to keep an accurate track of expenses. This caters to them to plan financial aspects for the future with more clarity and confidence. Capital flow is a daily process in any business, so to manage some significant amounts could get efficiently done through expense management and generate a profit.
What is travel and expense management?
Travel and expense management is a process that includes finance management by the employee when on a business trip or any expense is made for business goals. Each travel and expense management consists of detailed records of costs, expenditure, budgeting, and report submission.