Disruptions are the mother of reinvention

World Travel and Tourism Council (WTTC) president and CEO David Scowsill had some inspiring words to say at the organisation’s Global Summit in Madrid, Spain last month.

'The random power of disruption is no stranger to our own sector as it thrives on disruption,' he said. 'We expect it and we have learned to deal with it. The world’s most successful travel and tourism companies are those which will embrace disruption and focus on the benefits of reinvention and innovation.'

The theme of this year’s summit was Disruption and Reinvention, which was discussed by 50 leading politicians, celebrities, businesspeople and travel and tourism officials.

Speakers included José Manuel Barroso, the former president of the European Commission (2004-2014); Ana Botín, executive chairman, Banco de Santander; Petra Nemcova, founder and chair, Happy Hearts Fund; and Richard Leakey, politician, palaeo-anthropologist, conservationist, university professor and founder, Turkana Basin Institute.

Reinvention is key

Scowsill told the 1,100 delegates that disruption and reinvention of the sectors was a positive process driven by the consumer.

'Reinventing the customer experience is key, because at the heart of this era of almost unparalleled disruption, are the shifting trends and expectations of the consumer. We must never lose sight of that,' he said. 'It is the consumer who drives all this change, and it is the consumer that leaps quickly to new brands that satisfy their demands.

'Observers over the years have prematurely announced the demise of charter airlines, tour operators, leisure travel agents, and global distribution systems – all of which have not only survived but thrived. Indeed, the dismantling of existing business models, fuelled by today’s enabling digital technologies, is cutting a disruptive swathe through so much or our industry, from hotels to cruising to car rental to airlines.

'The fast growth of mobile applications is rapidly changing consumer habits. It is becoming a serious game-changer for our industry. Social media has come of age as a powerful two-way communications channel. Everywhere we look, the traditional is being contested and disrupted by the shock of the new. In response, established industry players continue to reinvent the way that they do business.'

GTAC agenda

At the summit, the Global Travel Association Coalition (GTAC) launched a commitment for aligned advocacy and action.

The initiative titled Powering Travel & Tourism into the Next Decade: An Agenda for Growth and Development sets forth key areas of action necessary to ensure that travel and tourism aid global economic recovery, increase resource efficiency and create jobs.

The agenda’s objectives will be addressed through:

• Research-based evidence on the value and impact of travel and tourism and the impact of policies shifts;

• Speaking as one to promote the agenda’s implementation and ensure that tourism can be an effective driver of economic growth and sustainable development; and

• Calling on governments to agree to national tourism policies that bring together all relevant government agencies while creating or strengthening public/private sector cooperation and public/public coordination of tourism planning and development at all levels.

On travel facilitation, the GTAC called for policies to facilitate international travel and tourism, a more transparent visa processes, visa waiver programmes, regional visa agreements and trusted traveller programmes, as well as seamless travel at borders.

On infrastructure development, it urged the advancement of air, rail, sea and road connectivity, government and private sector co-operation for improving and accelerating inter-modal and infrastructure development; and setting and strengthening public/private partnerships to assure legislative and funding needs for expansion of infrastructure.

The GTAC also called for inter-agency co-ordination to protect the environment while fostering the sector’s growth, higher levels of accountability and greater investments to ensure the sustainability of the sector and minimise adverse environmental and social impacts.

Scowsill commented: 'It is people who will shape the future of our industry – our consumers, the world’s citizens and governments, the entrepreneurs of tomorrow, and our own employees. We need to engage and listen.

'World events continue to throw new scenarios, new challenges and fresh opportunities at us. In recent days, we have witnessed the historic and public thawing of relations between US and Cuba. It heralds an era of collaboration with the enormous potential for commercial reinvention between the two nations.

'Within our business, consolidation and reinvention is happening everywhere. Airlines, cruise lines, hotels, travel agencies and technology providers have all evolved as they have merged or acquired, seeking to withstand the constant curve of change. What we have learned is that this sector has a constant ability to reinvent itself.'

Meeting of minds ... Dubai Airports CEO Paul Griffiths; JTB Corp chairman Hiromi Tagawa , Howard Eng, president and CEO, Greater Toronto Airports Authority; Desirée Bollier, CEO, Value Retail; and Roger Dow, president and CEO, US Travel Association