"Personalization" has been a key buzzword and
promise in corporate travel for years, but a frank assessment would show that
progress has been slow compared with other industries.
"Other sectors are leaps and bounds ahead of where
travel is," DataArt Solutions head of travel, transportation and
hospitality Greg Abbott said at the Phocuswright conference last November.
"We've got a ways to go before we get to personalization."
The lag in part is due to the nature of the industry. While
people generally shop for groceries at least once per week—and shopping on
Amazon is a daily habit for some—more than 80 percent of travelers take one
trip per year, Travelport chief product and technology officer Tom Kershaw said
in the same session. As such, past behavior alone generally does not produce
enough data to truly personalize travel search and purchasing, making it
necessary to use lookalike modeling and other forms of AI to fill in the gaps.
A concept known as the "self-sovereign identity"
is being touted as one key to unlocking this challenge. In a broad sense, the
concept is that every individual should have control of their own identity,
having the ability to share whatever part of that data they wish as needed but
not to have third parties storing that data in silos. That could be based in
blockchain or other data structures.
Nick Price, who chairs the Hospitality and Travel Special
Interest Group of the Decentralized Identity Foundation—which is working on
developing the ecosystem for SSI—calls it "the most consequential
technology of a generation." It provides "not only an identity for an
individual, but for businesses or even things. This is foundational; it enables
businesses to increase the fidelity of the information for their better
customers."
Price has spoken a lot on what SSI could mean on the side of
travel loyalty and services. One example is that if a traveler let a hotel see
their data on stays beyond just those at their own hotel. They could see, for
example, even if it was the guest's first time in a hotel that they had stayed
in 50 other hotels that year and that they would be a valuable customer to
court.
The implications could go much wider across the industry, in
terms of the way personal identity and health information are presented when
traveling internationally, for example.
Some of the elements of SSI can be seen in the EU's ongoing development
of a digital identity wallet program, a mobile app in which users could store
personal data of their own selection, such as personal identification
documents, medical data and financial information. In December, the program
announced a multi-country consortium working on delivering a cross-border
payments pilot.
"This will give you the capability to start collecting
travel credentials, storing them in the digital wallet and using them,"
Price said. "In fact, travel is one of the foundational vertical use cases
for this digital ID through Europe, so that's potentially up to 450 million
travelers that will have this capability."
Price also noted that numerous other projects related to
digital decentralized identification are underway around the world and that he
expects a "rapid pickup" from this year through the end of the
decade.
Both Kershaw and Abbott also noted that the key for SSI to
be successful will be making it seamless for the user. After all, the concept
itself is not unique, but the ledger technology is what unlocks new
possibilities, Abbott said. But the history already is there that if it
requires a lot of work or a complicated process on the user side, it will limit
participation.
"Users don't care; they don't opt into
things," Kershaw said. "It's one of the fundamental flaws. Machines
have to do that, because the user wants you to figure it out for them."