Sounding Off: Like it or not, Big Tech is in the driver's seat

Each Friday, PhocusWire dissects and debates an industry trend or new development covered by PhocusWire that week.

One of the cruel ironies of the COVID-19 crisis is that while every sector of travel has been bruised – and in many cases battered – by this pandemic, the giants collectively known as “Big Tech” are actually getting more powerful, potentially making it even more difficult for travel brands to extricate themselves from their grip.

Those tech giants – notably Google, Amazon, Facebook and Apple – are benefitting from the rapid acceleration of e-commerce, as stay-at-home orders around the globe have forced consumers to go online to order things such as food, clothing, electronics and home décor.

According to consulting firm McKinsey, in the span of 90 days early in the crisis, COVID pushed e-commerce penetration in the United States ahead 10 years. 

With each search, click and purchase online, the tech giants are building their repository of data, enabling them to get smarter and better at meeting the needs of customers. 

And as we come out of this crisis and travel volumes tick up, those consumers that are now more comfortable with shopping online will also be turning to their laptops and phones for travel research and bookings.

So it’s no surprise some of those tech giants – notably Google and just this week, Amazon – are investing in developing their travel products.

In recent weeks Google has bolstered its travel search results by adding hotel and flight availability data and the ability to filter flights based on those that offer free cancellation – giving consumers the content they are craving.

And this week Amazon launched “Amazon Explore,” for now an invitation-only beta mode test of virtual tours and activities.

What are travel brands to do? As Gavira says, the airline industry, and in fact every other sector as well, “will be forced to accelerate its speed of digital transformation.”

That’s a big task at a time when many travel brands are dealing with budgets and staff that have been decimated by the crisis.

But, more and more, it seems it may not be optional. 

As Gavira says, customers are “hyper-connected,” the tech giants are ready and eager to meet their needs and travel companies have to follow their lead.

Time will tell which ones are up to the challenge.