The new reality and the new needs of those who need agility and security without sacrificing care.
Over the last decade, much of our daily decisions and routines have been driven by a set of apps and algorithms installed on our cell phones, tablets, and computers. This high-tech world of apps, which allows us to shop, access the bank, choose meals, get around, watch TV shows – all without leaving the couch – has undoubtedly made our lives more practical and agile. But it has also left out one essential factor in our decision-making process: human care, the interaction between people, the high touch.
In the post-pandemic world, with unpredictable scenarios, human interaction once again plays a crucial role in a world that had been dominated by algorithms. The corporate travel industry – a sector I’m part of – is a good example of this.
Algorithms are excellent tools for maximizing efficiency in a task. In purchasing decisions, this is often tied to getting the best value for money within your predetermined criteria. But for now, these systems cannot capture the many nuances that only human interaction can provide.
The dichotomy between the two terms (high tech and high touch) was first introduced in the early 1980s by American futurist John Naisbitt. Essentially, he talks about the importance of technology as a potential amplifier of human capabilities, not as a replacement for them. In the past, the travel agent and agencies played a key role in choosing flights, accommodations, and other corporate services. The advent of apps and portals led to most purchasing decisions being made by 100% automated systems.
In the pre-pandemic scenario, with price dictating the rules of choosing airline tickets and accommodations, apps brought us just a few seconds away from finding the best possible combination of an itinerary for the desired date. With a few more taps, payment was authorized, and the ticket was issued. The integrated online agenda showed corporate commitments. Location-based service apps helped choose the best restaurants and attractions in the area. It became possible to travel for business almost without planning and without any human contact.
In general, the market was moving towards the trend of self-service, which was accelerating every year with the rapid evolution of new technologies. When not in the customer’s hand, these innovations ended up replacing much of the human tasks inside corporate agencies in search of cost reduction and efficiency gains.
The New Reality Imposes New Needs in the Customer Journey
Recent studies and reports, however, shine a light on what we had already observed as a gradual shift in the quarantined world, and especially, what our customers expect for the post-pandemic world.
It is true that many work commitments, especially meetings and operational alignments, have been well replaced by virtual meetings. But in many cases, traveling remains and will remain necessary. The factor of price or cost-effectiveness, once the top priority for algorithms, has given way to other decision-making factors such as safety, predictability, and the ability to adapt in a world that will take years to return to normal. These are characteristics that even the most advanced systems today cannot solve.
With travel becoming increasingly strategic, executives need to be certain they will travel from point A to point B in the best possible way. The first step is choosing the mode of transport: will it be a commercial flight? Is the option private aviation? Then, they need to know the status of the pandemic in the destination and be aware that this information changes constantly. They must also ensure that the accommodation takes all necessary precautions to guarantee the health and safety of the traveler. And lastly, and just as importantly, they need support to find and schedule meeting and relationship venues that also comply with international protocols.
Impact on Business and the Future of Corporate Travel
In April 2021, WSJ Intelligence surveyed 200 top executives from large global companies and revealed that travel restrictions harmed the businesses of 97% of companies. International business development and product launches were cited by 37% of respondents as the most affected areas. A third of companies had lost opportunities (34%) and reported fewer closed deals (33%). The main reasons, each with 34%, were the lack of visits to partners and suppliers and participation in industry events and conferences. In other words, the absence of human presence.
As many countries increase vaccination rates and lift quarantine measures, there is growing anticipation for travel as restrictions ease. According to the study, six out of ten respondents expect more in-person meetings in the future compared to a typical year before the pandemic. Among those who are intensive users of private aviation, making eight or more private flights a year, 60% plan to significantly increase in-person meetings. Furthermore, 81% said business travel is more important than ever to drive success.
The study, however, reinforces the vision of the challenge facing the corporate travel industry and how human presence will be key. Among respondents, as a condition to return to traveling, 42% want up-to-date COVID-19 data and regulations for their destinations, and 36% want support if regulations change during a trip. The fear – not of COVID-19, but of being stranded due to sudden changes or restrictions – is a major concern for those who want to travel again to resume business at full capacity.
Conclusion
The high-tech world has transformed corporate travel into a practical choice where much of the process is handled by machines and algorithms. The pandemic has forever changed this segment and imposed new priorities that influence the decision to travel or not. Safety, predictability, and the ability to adapt in a world that will take years to return to “normal” are crucial aspects in this new scenario. In this sense, high touch, which creates more constant human touchpoints with the customer, becomes fundamental.
