As travel and hospitality companies navigate the evolving landscape, they must embrace innovation across various fronts. A recent study by HFS Research, in partnership with WNS, involving 315 global leaders, establishes how businesses are strategically investing in digitalization, organizational integration and collaborative partnerships to drive growth and sustainability.
The Different Stages of Transformation
Transformation in the travel and hospitality sector unfolds through progressive stages. Initially, companies focus on laying the groundwork for digitalization, emphasizing efficiency and cost containment. Subsequently, efforts pivot toward breaking down organizational silos and fostering integration across departments. Finally, firms embark on collaborative ventures, engaging with external partners to drive innovation and unlock new sources of value.
Figure 1: Different Stages of Organizational Transformation
Source: HFS Research, 2024
Analysis reveals a concerted effort among travel and hospitality firms to invest across all stages of transformation. While the emphasis currently lies on functional digitalization, there is a noticeable shift toward fostering collaborative partnerships. This underscores the industry's recognition of the pivotal role of collaboration in driving sustained growth and innovation.
“Travel and hospitality firms are optimistic that they will be able to enhance their focus from functional transformation to a more powerful ecosystem-driven strategy over the next two years.”
Source: HFS Research, 2024
The Role of Strategic Partnerships
Partnerships emerge as a cornerstone of transformative efforts within the industry. By strategically engaging with external partners, companies gain access to specialized expertise and advanced technologies without requiring extensive in-house development. This collaborative approach facilitates innovation and accelerates the pace of transformation, positioning firms for long-term success in a dynamic marketplace.
40 percent of travel and hospitality enterprises are focused primarily on a ‘partner’ strategy to enhance their digital presence.
Source: HFS Research, 2024
Sustainability is a pressing priority for travel and hospitality firms, driven by regulatory requirements and a growing commitment to environmental stewardship. Leveraging collaborative partnerships, enterprises work with service providers to develop robust sustainability strategies and practices. Consulting and technology capabilities are central in this endeavor, enabling firms to align their operations with broader sustainability goals.
In a landscape defined by change and uncertainty, the journey toward transformation is both complex and continuous. By investing in travel digitalization process, integration and collaborative partnerships, travel and hospitality firms can unlock new opportunities for growth and sustainability.
Read the full report by HFS Research, in partnership with WNS, for exclusive insights on how travel and hospitality firms are driving innovation and sustainability.
FAQs
1. How is digitalization transforming the travel industry?
Digitalization is shifting the travel industry from isolated, functional digital adoption toward integrated and ecosystem-driven transformation. As highlighted in the blog, companies are now forming partnerships, breaking operational silos and adopting shared digital platforms to deliver seamless customer experiences and improve operational efficiency. WNS enables this shift by providing analytics, automation, and domain expertise that accelerate and operationalize digital transformation across the travel ecosystem.
2. What role does artificial intelligence play in enhancing customer experience in travel?
AI enhances travel customer experience through personalization, intelligent servicing, predictive analytics and automation. Although the blog focuses on ecosystem transformation, it recognizes AI as a crucial enabler in helping travel providers meet rising consumer expectations. WNS integrates AI and Generative AI into its travel solutions to deliver personalized interactions, real-time recommendations and seamless customer support across channels.
3. How can travel companies achieve cost efficiency through digital transformation?
Cost efficiency is achieved by digitizing core processes, adopting shared platforms, reducing redundancy, and driving interoperability across partners. The blog notes that over 50% of companies prioritize cost optimization as a key transformation goal. WNS supports this through workflow automation, analytics-led optimization, and ecosystem-led models that reduce operational costs and eliminate non-value-adding activities.
4. What are the major challenges of digitalization in the travel and hospitality sector?
The industry faces several challenges: legacy systems, fragmented functions, slow digital maturity, rising customer expectations and the complexity of establishing external partnerships. Research cited in the blog shows that 73% of firms are not fully digitally mature. WNS helps organizations overcome these barriers through consulting, capability assessment, digital engineering, and ecosystem orchestration services that enable seamless transformation.
5. How does digital technology support sustainable growth in the travel industry?
Digital technology supports sustainability by enabling paperless processes, optimizing travel operations, reducing waste and helping companies track and reduce environmental impact through data-led insights. The blog emphasizes sustainability as a core part of future ecosystems. WNS helps clients embed ESG-focused metrics, analytics and automation into operations, ensuring that digital transformation aligns with long-term sustainability objectives.
6. How does WNS help travel and hospitality companies build future-ready digital ecosystems?
WNS helps organizations move from isolated digital projects to fully connected digital ecosystems by integrating data, processes, platforms and partner networks. Through co-creation, product innovation, analytics and intelligent automation, WNS supports airlines, hotels and travel intermediaries in building scalable and modular digital frameworks that future-proof their business.
7. What digital capabilities does WNS provide to support travel companies in their transformation journey?
WNS offers capabilities across analytics, AI/ML, intelligent automation, CX transformation, platform solutions and process re-engineering. These capabilities help solve critical industry issues such as siloed operations, legacy technology, cost pressures and inconsistent customer experience. WNS’s digital frameworks enable interoperability, scalability and fast decision-making.
8. Why is WNS a strategic partner for travel companies navigating digital and ecosystem transformation?
WNS brings deep travel industry specialization, strong partnerships, proven transformation experience and a comprehensive digital solutions portfolio. It acts as an ecosystem enabler—helping clients design roadmaps, integrate technology partners, modernize operations and deploy scalable digital solutions that drive cost savings, superior CX and continuous innovation.