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February 2018
Travel & Retail: Exploiting
Inherent Synergies
to Collectively Boost
Performance
Digital renewal provides the travel and retail sectors with
a unique ability to collaborate to build more personal and
immersive experiences that enhance loyalty at reduced cost.
DIGITAL BUSINESS
EXECUTIVE SUMMARY
The collaborative opportunities have always been so close.
After all, the travel and hospitality sector circles the globe, with customer touchpoints at
every airline, airport, hotel and restaurant. Meanwhile, retailers fulfill consumers’ material
needs and desires daily.
Somehow the two industries are so close – and yet still so far.
Despite their natural synergies, partnership opportunities between travel and retail have
largely been limited to loyalty rewards and affinity credit cards.
Digital changes all that. It brings the two sectors even closer, with potential benefits that
prove the whole is greater than the sum of its parts. Digital opens new areas of collaboration
that build on three cross-sector mega-trends:
•	 Hyper-personalization and lifetime brand loyalty.
•	 Immersive shopping experiences.
•	 Mobile devices and wearable technologies that improve the customer experience.
Digital Business
| Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance2
The common denominator among the trends? Customer experiences and automation. This
white paper offers five lessons that retailers and travel providers can learn from one
another to deliver unique customer experiences:
1.	 Crossover works. Collaborative commerce is critical.
2.	 Revisit loyalty. 
3.	 When it comes to digital, don’t forget your staff.
4.	 Focus on customer desires – not just needs – and apply design thinking.
5.	 Be agile enough to pivot quickly.
The travel and hospitality sector circles
the globe, with customer touchpoints at
every airline, airport, hotel and restaurant.
Digital Business
3Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance |
DIGITAL THAT MATTERS BEGINS WITH THE CUSTOMER
You’ve heard it before, but it remains true: The key competitive battleground is customer experience
(CX) – specifically, the ability to influence and improve it.
In the travel industry, that kind of relentless customer focus is starting to take root. Given their prox-
imity to consumer touchpoints, travel businesses are starting to see themselves as more than
purveyors of airline seats or hotel rooms. They’re pursuing new avenues to transform into multidi-
mensional retailers, selling products beyond their core business.
For some, it’s a small step. Lufthansa partners with Nespresso1
to sell premium coffee at its terminal
gates. For others, improving CX is a much more expansive undertaking on the road to ancillary reve-
nues. The Emirates Group is a leading example. The UAE-based company has diversified to provide an
array of retail offerings that range from operating franchises such as Costa Coffee in the UAE to a fine
wine and spirits store, Le Clos, at Dubai International Airport.2
Are such ambitious cross-sector ventures just the beginning? We think so. So are partnerships that
aren’t directly interwoven but run on parallel tracks, such as Marks and Spencer catering British Air-
ways’ on-board food.3
We see an abundance of new technologies reenergizing travel’s focus on retail. Mobile, cloud comput-
ing and artificial intelligence (AI) bring products to market in more meaningful ways. How?
Mobile-centric strategies let companies push distribution to on-the-go travelers. Tech wearables fur-
ther boost opportunities to connect. Personalization gets real.
Incremental revenue is one benefit of a proactive, retail-based approach to customer engagement.
Among airlines, ancillary revenue was projected at $67.4 billion in 2016, or 9.1% of total global reve-
nues for the 178 airlines covered.4
Another benefit is customer loyalty: Travelers who feel understood and valued are more likely to be
receptive to up-selling and cross-selling – and more loyal to brands.
Travelers who feel understood and valued
are more likely to be receptive to up-
selling and cross-selling – and more loyal
to brands.
| Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance4
Digital Business
5Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance |
Digital Business
HIGHLIGHTING THE SYNERGIES
We see the synergies between travel and retail resting on three cross-sector mega-trends:
•	 Hyper-personalization and lifetime brand loyalty.
•	 Immersive shopping experiences.
•	 Use of mobile and wearable technologies to improve the customer experience.
The three trends are built on advances in data analytics and digital content platforms. Within both the
travel and retail sectors, companies are at different levels of maturity across the trends. The common
denominator among them? The drive for unique CX that creates competitive differentiation.
The benefits of synergy are two-way. Each sector can learn – and profit – from the other. From retail’s
volume of repeat purchases and growing insight into consumer needs, travel and hospitality can learn
to use data more effectively to shape unique CX. From the travel and hospitality’s network of global
touchpoints, retail can learn about scale.
What Retail Brings to the CX Table
For its part, retail has had a head start in digital. Squeezed by online pure plays, the industry was
“Amazoned”: To keep pace, smart retailers upped their game, carving out strategies that rethink CX.
They dovetailed in-store and online shopping, reexamined the role of store associates and launched
new services. Luxury retailer Burberry has led the way.5
Supermarket chain Sainsbury has also found
a winning strategy with its Argos venture.6
Retail’s push to improve CX has driven its adoption of technologies that were once little more than
buzzwords:
•	 Exploration of IoT and intelligent spaces: The Internet of Things (IoT) is upending CX and inter-
action with retail brands. Purchasing through mobile devices has gone mainstream. Voice channels
are gaining traction. Retailers are exploring how to leverage smartphones and wearable devices to
activate dynamic digital signage and location-based offers. Some of the most innovative advances
are the result of smartphones equipped with augmented and virtual reality (AR/VR). For consum-
ers, AR closes the “imagination gap”: one-third say they’re more likely to purchase big-ticket items
if they can first visualize them through AR.7
(For more on AR, read our report, “Augmenting the
From retail’s volume of repeat purchases
and growing insight into consumer needs,
travel and hospitality can learn to use data
more effectively to shape unique CX. From
the travel and hospitality’s network of global
touchpoints, retail can learn about scale.
| Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance6
Reality of Everything.”) Already, retailers and consumer-goods companies are launching immer-
sive shopping experiences. Augmenting apparel’s journey from origin to purchase is likely to be a
new battleground for fashion retailers, with AR becoming a potential point of differentiation thanks
to platforms from Apple, Google and Facebook.
•	 Pushing boundaries: chatbots, cognitive computing and conversational AI: As voice-activated
personal assistants transition to shopping platforms, retailers are also becoming adept at applying
AI to personalized services.8
London start-up Thread uses algorithms and virtual stylists to create
in-home personal-shopper experiences. In the U.S., Stitch Fix’s curated clothing service analyzes
customers’ body shapes and Pinterest pages. It also encourages customers to share personal
details in exchange for a more customized experience – resulting in a wealth of data for Stitch Fix
to analyze.9
U.S. cosmetics company Estee Lauder’s voice-activated application for personalized
skincare solutions and beauty techniques runs on Google Home devices. The company says it envi-
sions the app, called Nighttime Expert, to expand its omnichannel efforts to provide in-home,
in-the-moment experiences.10
•	 Bring on the data: predictive analysis and data sciences: To improve profit margins and their
CX, retailers are increasingly turning to the data-driven science of predictive analysis. Data mining
provides a clearer picture of customers and their spending power to enable smarter, more relevant
promotions. At the heart of data science? The collection and secure sharing of personal data. New
business models pioneered by start-ups such as Handshake and ctrlio empower consumers with
control over how their data is used and what they get in return. While local privacy regulations
govern the new data businesses, customers are seemingly happy to swap their personal data for
more relevant offers. It remains to be seen how the new European General Data Protection Regu-
lation (GDPR) will affect companies’ ability to hyper-personalize through clever profiling.11
•	 Reinventing omnichannel: Squeezed by customer expectations and the rise of progressive dig-
ital retailers, established brick-and-mortar merchants are searching for new ways to provide
seamless omnichannel experiences. They face conflicting technology priorities, however. Choos-
ing areas of focus remains challenging, as their choices and investments determine whether they
remain relevant.
•	 Putting robotics and automation to work: Retail margins are under pressure following a period
of global political uncertainty and the growth of low-overhead online start-ups. Robotics and auto-
mation make for an intriguing future. The first cashier-less Amazon Go store opened in Seattle,
WA, in January 2018.12
In the home-improvement sector, Lowe’s LoweBot helps customers find
goods and also answers customer-service questions.13
As automation impacts the retail process
from inventory to last-mile delivery and in-store replenishment, the challenge for retailers is to
deliver it with a focus on improved, not diminished, experience: Self-service checkout has been
known to be frustrating for consumers when it reduces rather than enhances convenience.14
As automation impacts the retail process from
inventory to last-mile delivery and in-store
replenishment, the challenge for retailers is
to deliver it with a focus on improved, not
diminished, experience.
7Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance |
Digital Business
Digital Initiatives in Travel
Digital’s potential for enabling the travel CX requires a mobile-first, omnichannel strategy that lets
travel brands be everywhere their customers are: offline, online and on the road. 
Key digital initiatives shaping the travel CX include:
•	 The drive for ancillary revenue: Many travel businesses struggle to maintain healthy profit mar-
gins amid high operating costs and price transparency. The result? A focus on ancillary revenue,
with travel players adopting retail best practices and learning to excel at merchandising. The hotel
and destination management sectors have been less successful in selling ancillary services due to
fragmented IT systems and lack of industry standards. Until recently, few hotel websites offered
flights, transfers or tours. But change is happening. Spanish newcomer Travel Compositor allows
hotel groups to dynamically package their services.15
Norwegian Cruise Line markets a variety of
products and services to passengers before they embark, from spa appointments to diapers.16
•	 Rethinking loyalty and CRM: With frequent blackout dates and almost unattainable status levels,
airline and hotel loyalty programs often fall flat. In the airline sector, 9.7 trillion unused journey miles
sit idle as balance-sheet liabilities.17
Travelers want flexibility. In addition to traditional airline and
hotel awards, many favor instant redemptions and perks that suit their lifestyle. Seven out of 10
respondents want to redeem points in retail outlets, according to a recent survey by Collinson Lati-
tude.18
A growing number of travel companies are implementing CRM technologies to provide
greater customer segmentation, personalization and relevant rewards and offers. They’re also inte-
grating CRM and other transactional data sources to create a higher order of customer intelligence.
•	 Preparing for the payment evolution – via blockchain?: Blockchain has the potential to break
through the tedious multistep, multiparty payment process with a more robust, secure, real-time
structure. (See Figure 1).
What’s blockchain’s advantage? It creates proof of ownership using unique digital signatures that
rely on public and private encryption keys. With its built-in trust, blockchain can enable interoper-
ability among travel companies’ programs and partners. (For more insight, please visit the
blockchain section of our website.)
Traditional Credit Card Payment vs. Blockchain Payment
Sender Validates
Wallets
Private Key
1a3AZddyy355XXa23y
Banks Exchanges
Receivers
Money transfer services
Wallets
Bitcoin miner
FLOW OF
BITCOIN AND
CASH
Blockchain
Receivers
Customer
Web payment
software
Merchant bank’s processor
Merchant’s
business
Internet
Merchant’s bank
Credit card
issuing bank
Credit card
network
1
2
3
4
5
6
THE CREDIT CARD
PAYMENT PROCESS
Figure 1
Digital Business
| Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance8
But blockchain is a long way from mainstream status. Although it’s emerging from the rise of cryp-
tocurrencies, blockchain’s widespread adoption in the travel sector remains to be seen. Blockchain
involves behavioral change and collaboration across multiple parties as well as the headache of
integration and transition from legacy systems. Moreover, concerns persist regarding security and
ownership of private data. (To see how blockchain thinking could apply in the travel and hospitality
sector, read “Retail: Opening the Doors to Blockchain.”) Passage of data-security and payment
regulations, however, is giving blockchain a boost: In Europe, the new processes and legacy-sys-
tems bypass of the Payment Services Directive 2 (PSD2) have provided unexpected motivation for
blockchain development. (For more insight, read “Blockchain in Europe: Closing the Strategy Gap.”)
•	 Getting personal: AI, predictive analytics – and coffee: In a burst of experimentation, airlines,
hotels and cruise lines are engaging travelers through proactive, intelligent robotic live chat that
relies on web analytics and machine learning algorithms. Through Facebook Messenger, Dutch airline
Transavia creates flowing conversations that guide customers through ticket selection and purchase.
(Learn more by reading our case study.) Online travel agency Fareboom19
finds cheap flights by pre-
dicting future price movements based on factors such as seasonal trends and demand growth.
Sometimes the technology payoff is a cup of coffee when you need it most: Air New Zealand passen-
gers can order barista-made coffee via a smartphone app as they enter select airline lounges.20
 
•	 CX starts in the home office: driving organizational alignment: Travel businesses are preparing
their organizations to fully embrace digital. Central to the change? An organization that’s aligned
and focused. International Airlines Group (IAG) established a digital team and tasked it with iden-
tifying innovations and forwarding ideas to the board of directors.21
Emirates Airlines recently
recruited its first-ever chief transformation officer.22
In late 2017, Ryanair opened its third digital
and IT innovation hub.23
Digital investment is also a priority for Marriott International, which oper-
ates its own studio to develop digital products for long-term brand equity. Out at sea, MSC Cruises
pairs a sensor-packed wristband for passengers with a dedicated app accessible on smartphones
and an in-cabin TV app.24
LESSONS LEARNED
Here are five lessons travel and retail can put to use to deliver unique CX:
Amazon is the master of multiple market penetration: From its acquisition of Whole Foods to its
supply-chain investment in branded cargo aircraft and delivery cars, the giant e-tailer has elevated
crossover to new levels. And while famed for its low profit margins, Amazon’s investments in new
services and entry into new industries have reaped shareholders rewards over the past decade,
including a blowout first quarter for 2018.25
How can retail and travel providers similarly find competitive advantage?
Stepped-up sharing, for one thing. New technologies enhance the organization’s ability to under-
stand and segment more lifecycles. From what we see, retailers are getting pretty good at tracking
lifecycle changes. Travel companies, in our experience … not so much.
Crossover works. Collaborative commerce is critical.1
In a burst of
experimentation,
airlines, hotels and
cruise lines are
engaging travelers
through proactive,
intelligent robotic
live chat that relies
on web analytics and
machine learning
algorithms.
Digital Business
9Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance |
Digital Business
| Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance10
Where are the most strategic points of intersection? While companies need to dig deeper in collab-
orative sharing and fulfillment, we believe simplicity is the best starting point. Sometimes logical,
relevant matching is overlooked in favor of complexity. The family that just booked a luxury cruise
will likely need tuxedoes and high-end dresses before they sail out of port. Travelers who’ve been
away from home for two weeks will need a delivery of groceries. Choosing the right affiliate part-
ner will be key. Which travel providers and segments will generate real revenue for retailers, and
vice versa?
Crossover also counts when it comes to innovation. Not every company has the financial wherewithal
to make the needed investments independently. If you have great partners, you can share. What
opportunities exist to share innovation budgets? Perhaps you can jointly sponsor research on drone
deliveries. Maybe collaboration can extend to click-and-collect purchases on the airplane seat back.
Open application program interfaces (APIs) create the extended ecosystem to support collabora-
tive commerce. AR and voice APIs are the next wave of opportunity: Imagine the hotel guest who
arrives, discovers he’s forgotten his favorite panama hat, and asks the room’s voice assistant
where he can go to buy one. Voice is the new search. Together with AR, it represents the new line
in the sand. You want to be there first.
Commoditization and transparency is upending long-held concepts of loyalty. Is your current
system still relevant? If yes, for how long? 
In today’s marketplace, no convention can be left unexamined, even the hospitality industry’s
time-honored tradition of blackout dates. They produce balance-sheet headaches and garner
Revisit loyalty.2
Sometimes logical, relevant matching is
overlooked in favor of complexity. The family
that just booked a luxury cruise will likely
need tuxedoes and high-end dresses before
they sail out of port. Travelers who’ve been
away from home for two weeks will need
a delivery of groceries. Choosing the right
affiliate partner will be key.
11Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance |
plenty of bad press.26
And you can bet that somewhere a smart, disruptive business model is being
developed that will render traditional travel loyalty programs obsolete.
Avoid obsolescence by reviewing why your company rewards loyalty. What simple connections can
your company make with retail or travel partners? How might your organization extend collabora-
tive commerce to loyalty and achieve greater returns? Airlines have deployed branded credit
cards, but have they really mined the data sets to continue to develop meaningful and timely
offers? What will add the wow factor and true levels of appreciation to retain the wallet share of
the regular spenders?
With retailers and travel providers collectively plowing billions of dollars into CX, customers are often
more digitally enabled than retail and travel staffs. At some brands, customers can connect and com-
municate better and faster than their own staff. Lifetime customer value, purchasing patterns and
next-best or likely actions are still elusive data sets for many frontline staff in retail and travel.
Automation can play a big role in helping retailers and travel providers close the gap. A fusion of
new algorithms, machine learning and digital platforms is radically changing what human talent
looks like, where to find it and how it’s put to work. Many companies are starting to junk outdated,
rigid organizational models in favor of smaller, nimbler talent clusters that serve particular mar-
kets or niches. (For more information, read the report, “Space Matters: Shaping the Workplace to
Get the Right Work Done.”)
Indeed, undertaking the work ahead requires cross-functional alignment and collaboration. True
value will be achieved if data scientists work with robot designers, omnichannel promoters and
lifetime data trust officers – new roles, and also examples of new ways of working. If your organi-
zation cannot align itself with digital change, it’s unlikely it can team with others to create
differentiated customer value. (For more information, read “21 Jobs of the Future: A Guide to Get-
ting and Staying Employed Over the Next 10 Years.”)
Retailers have become adept at addressing customer desires along the entire value chain, from
production and merchandising to customer service and logistics. Travel typically emphasizes sub-
sets of needs, with companies focusing on point-to-point travel or accommodation.
By applying design thinking to their respective broad strokes and fine detail, retail and travel can
partner on creating points of differentiation and customer value all along the travel experience.
When it comes to digital, don’t forget your staff.3
Focus on customer desires – not just needs – and apply
design thinking.4
A fusion of new algorithms, machine learning
and digital platforms is radically changing what
human talent looks like, where to find it and how it’s
put to work.
Digital Business
| Travel  Retail: Exploiting Inherent Synergies to Collectively Boost Performance12
Design thinking is a set of principles that lets organizations tackle the complexity of new value
propositions: empathy with users, physical and emotional experiences, and customer-centric
design. It engenders discipline for prototyping as well as tolerance for failure. Design thinking also
helps develop responsive, flexible organizational cultures.
The focus on consumer desires is a big shift for travel. Yet it’s a natural extension. Nearly all trav-
elers have a retail component, from forgotten toothpaste to souvenir sweatshirts to services.
Digital makes new partnerships possible along the airline and airport value chain. It fosters the
integration needed for concierge-type services such as duty-free preordering and home delivery;
door-to-door baggage delivery; and brands and packaging unique to the airport channel.
Large supermarket chains have become expert at taking the long view, mining lifestyle moments
and positioning offers and incentives accordingly. So far, few travel brands have taken a similarly
broad perspective of managing customers’ “travel careers” by anticipating key moments.
But new technologies are providing first steps. Predictive analysis and AI are beginning to identify
event-based travel (such as festivals or sports events) and enable offers of discount packages or
relevant merchandise. The hospitality sector is improving CX through digital strategies that incor-
porate voice activation and smartphone-based controls.
Speed of response is vital in the travel market, where dramatic fluctuations can quickly change
customer value. Terrorist attacks and political instability have damaged perceptions for destina-
tions such as Egypt and Turkey, among others. Last year’s hurricane season hit Caribbean tourism
economies hard.
How can airlines, hotels and tour operators spring into action to provide travel alternatives? Can
they do so with established commitments such as flight routes and fixed investments?
The solution is to be quick to recognize change – and to act. Seasonal switchovers are built into
retail businesses. Stock in the travel sector also expires, yet often unpredictably. Listening to social
networks can help travel companies monitor customer tastes and identify changes in travel trends
and brand opinions so their CX stays current. Through social media analytics – which capture emo-
tions as well as potential needs, wants and desires – automated platforms can enable the design
and implementation of up-to-the-minute travel promotions that let companies pivot quickly.
Be agile enough to pivot quickly.5
13Travel  Retail: Exploiting Inherent Synergies to Collectively Boost Performance |
Digital Business
RELATED COGNIZANT CONTENT
•	 “Hospitality in the Digital Era”
•	 “The Future of Air Travel: Eight Disruptive Waves of Change”
•	 “The Work Ahead: Mastering the Digital Economy”
FOOTNOTES
1	 www.airlinetrends.com/2017/02/12/lufthansa-nespresso-quality-coffee-at-the-gate-for-fee/.
2	 www.emirates.com/ae/english/plan_book/dubai_international_airport/emirates_terminal_3/world_class_amenities/retail_ther-
apy.aspx.
3	 www.telegraph.co.uk/travel/quality-on-board-meals/british-airways-marks-and-spencer-food/.
4	 www.ideaworkscompany.com/wp-content/uploads/2016/11/Press-Release-115-Global-Estimate.pdf.
5	 www.theguardian.com/media-network/media-network-blog/2013/jan/15/luxury-retailers-in-store-tech.
6	 www.computerweekly.com/news/4500247008/First-of-digital-Argos-stores-open-in-Sainsburys.
7	 http://digitalbridge.eu/download-our-new-report-augmented-reality-changing-the-face-of-retail/.
8	 https://blog.ingenico.com/posts/2017/07/ai-and-chatbots-transform-the-retail-industry.html.
9	 https://blog.stitchfix.com/inside-stitchfix/get-your-best-fix-2/.
10	 http://fashionandmash.com/2017/11/16/estee-lauder-voice-google-home/.
11	 www.computerweekly.com/news/252435051/100-days-to-GDPR-compliance-deadline.
12	 www.usatoday.com/story/tech/2018/01/22/amazon-go-lines-form-seattle-try-checkout-free-shopping/1053592001/.
13	 www.techemergence.com/robots-in-retail-examples/.
14	 www.telegraph.co.uk/news/2017/04/17/shoppers-vent-anger-sainsburys-new-card-tills-dont-allow-weighed/.
15	 www.mmgyglobal.com/news/news-europes-tourism-smes-are-getting-smarter.
16	 www.ncl.com/uk/en/onboard-gifts/kids.
17	 www.ncconsumer.org/news-articles/consumers-are-sitting-on-9-7-trillion-unused-rewards-miles.html.
18	 www.collinsonlatitude.com/insights/loyalty-commerce-in-a-digital-age/.
19	 www.fareboom.com/.
20	 www.scoop.co.nz/stories/BU1710/S00134/air-new-zealand-to-introduce-organic-fair-trade-coffee.htm.
21	 https://skift.com/2016/12/29/has-personalization-of-passenger-experience-entered-a-critical-stage/.
22	 Ibid.
23	 www.futuretravelexperience.com/2017/11/ryanair-opens-new-travel-lab-in-spain-as-part-of-its-always-getting-better-pro-
gramme/.
24	 www.cnet.com/news/msc-cruise-ships-wearable-tech-meraviglia-seaside/.
25	 www.cnbc.com/2018/02/01/reuters-america-update-3-amazon-posts-largest-profit-in-its-history-on-sales-tax-boost.html.
26	 www.forbes.com/sites/johnnyjet/2017/10/31/are-airline-loyalty-programs-worth-the-hassle/#4f59e0142403.
ABOUT THE AUTHORS
The authors would like to acknowledge the Cognizant Consulting Retail, Travel, Hospitality and Consumer
Goods research team – Ankit Yadav, Aman Roul and Mariam Shireen – for their invaluable contributions
to this white paper.
ACKNOWLEDGMENTS
Duncan Alexander is a Director within Cognizant Consulting’s UK Travel 
Hospitality Practice. As a consultant, his clients have included major travel brands
and travel technology start-ups. He has developed businesses and supported
customers on a global scale, with a focus on digital transformation through the
application of new business technologies. Previous to Cognizant, Duncan worked
in senior executive positions at the Emirates Group, Official Airline Guides (OAG),
SITA and Travelport. He has also worked as a management consultant with
PriceWaterhouseCoopers and Logica. Duncan served in the British Armed Forces
as an Officer in the Royal Engineers. He has a BA Hons Degree in geography from
King’s College London and is a Fellow of the Chartered Institute of Marketing
and is a Chartered Marketer. Duncan can be reached at Duncan.Alexander@
cognizant.com | Linkedin: www.linkedin.com/in/duncanalexander1/?ppe=1.
Duncan Alexander
Director, UK Travel  Hospitality
Practice, Cognizant Consulting
Arabella Bathurst is a Senior Consultant within Cognizant Consulting’s Retail,
Consumer Goods and Travel  Hospitality Practice. She has diverse experience
in strategic and operational consulting for industry-leading clients. Arabella is
currently working on an exciting project that aims to future-proof a cosmetics
major’s business in concession stores. She led the winning team for a prestigious
internal competition, Cognizant Consulting Czars, developing an innovative
proposal for a personalized subscription model to disrupt the client’s brand
portfolio. Prior to Cognizant, Arabella worked at Goldman Sachs, where she started
her career within the operations division. She has a BA Hons in Geography from
Durham University. Arabella can be reached at Arabella.Bathurst@cognizant.com |
Linkedin: www.linkedin.com/in/arabella-bathurst-b3497864/.
Arabella Bathurst
Senior Consultant, Retail,
Consumer Goods and Travel 
Hospitality Practice, Cognizant
Consulting
Digital Business
| Travel  Retail: Exploiting Inherent Synergies to Collectively Boost Performance14
Digital Business
15Travel  Retail: Exploiting Inherent Synergies to Collectively Boost Performance |
© Copyright 2017, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means,electronic,
mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice.
All other trademarks mentioned herein are the property of their respective owners.
Codex 3170
ABOUT COGNIZANT CONSULTING
With over 5,500 consultants worldwide, Cognizant Consulting offers high-value digital business and IT consulting services that improve
business performance and operational productivity while lowering operational costs. Clients leverage our deep industry experience, strat-
egy and transformation capabilities, and analytical insights to help improve productivity, drive business transformation and increase
shareholder value across the enterprise. To learn more, please visit www.cognizant.com/consulting or e-mail us at inquiry@cognizant .com.
ABOUT COGNIZANT
Cognizant (NASDAQ-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and
technology models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innova-
tive and efficient businesses. Headquartered in the U.S., Cognizant is ranked 205 on the Fortune 500 and is consistently listed among the
most admired companies in the world. Learn how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.
ABOUT RETAILMATE™
For more information on crossover between retail and travel, read about Cognizant’s prototypes of immersive retail spaces in airport
lounges using our RetailMate solution.
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Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance

  • 1. February 2018 Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance Digital renewal provides the travel and retail sectors with a unique ability to collaborate to build more personal and immersive experiences that enhance loyalty at reduced cost. DIGITAL BUSINESS
  • 2. EXECUTIVE SUMMARY The collaborative opportunities have always been so close. After all, the travel and hospitality sector circles the globe, with customer touchpoints at every airline, airport, hotel and restaurant. Meanwhile, retailers fulfill consumers’ material needs and desires daily. Somehow the two industries are so close – and yet still so far. Despite their natural synergies, partnership opportunities between travel and retail have largely been limited to loyalty rewards and affinity credit cards. Digital changes all that. It brings the two sectors even closer, with potential benefits that prove the whole is greater than the sum of its parts. Digital opens new areas of collaboration that build on three cross-sector mega-trends: • Hyper-personalization and lifetime brand loyalty. • Immersive shopping experiences. • Mobile devices and wearable technologies that improve the customer experience. Digital Business | Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance2
  • 3. The common denominator among the trends? Customer experiences and automation. This white paper offers five lessons that retailers and travel providers can learn from one another to deliver unique customer experiences: 1. Crossover works. Collaborative commerce is critical. 2. Revisit loyalty.  3. When it comes to digital, don’t forget your staff. 4. Focus on customer desires – not just needs – and apply design thinking. 5. Be agile enough to pivot quickly. The travel and hospitality sector circles the globe, with customer touchpoints at every airline, airport, hotel and restaurant. Digital Business 3Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance |
  • 4. DIGITAL THAT MATTERS BEGINS WITH THE CUSTOMER You’ve heard it before, but it remains true: The key competitive battleground is customer experience (CX) – specifically, the ability to influence and improve it. In the travel industry, that kind of relentless customer focus is starting to take root. Given their prox- imity to consumer touchpoints, travel businesses are starting to see themselves as more than purveyors of airline seats or hotel rooms. They’re pursuing new avenues to transform into multidi- mensional retailers, selling products beyond their core business. For some, it’s a small step. Lufthansa partners with Nespresso1 to sell premium coffee at its terminal gates. For others, improving CX is a much more expansive undertaking on the road to ancillary reve- nues. The Emirates Group is a leading example. The UAE-based company has diversified to provide an array of retail offerings that range from operating franchises such as Costa Coffee in the UAE to a fine wine and spirits store, Le Clos, at Dubai International Airport.2 Are such ambitious cross-sector ventures just the beginning? We think so. So are partnerships that aren’t directly interwoven but run on parallel tracks, such as Marks and Spencer catering British Air- ways’ on-board food.3 We see an abundance of new technologies reenergizing travel’s focus on retail. Mobile, cloud comput- ing and artificial intelligence (AI) bring products to market in more meaningful ways. How? Mobile-centric strategies let companies push distribution to on-the-go travelers. Tech wearables fur- ther boost opportunities to connect. Personalization gets real. Incremental revenue is one benefit of a proactive, retail-based approach to customer engagement. Among airlines, ancillary revenue was projected at $67.4 billion in 2016, or 9.1% of total global reve- nues for the 178 airlines covered.4 Another benefit is customer loyalty: Travelers who feel understood and valued are more likely to be receptive to up-selling and cross-selling – and more loyal to brands. Travelers who feel understood and valued are more likely to be receptive to up- selling and cross-selling – and more loyal to brands. | Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance4 Digital Business
  • 5. 5Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance | Digital Business HIGHLIGHTING THE SYNERGIES We see the synergies between travel and retail resting on three cross-sector mega-trends: • Hyper-personalization and lifetime brand loyalty. • Immersive shopping experiences. • Use of mobile and wearable technologies to improve the customer experience. The three trends are built on advances in data analytics and digital content platforms. Within both the travel and retail sectors, companies are at different levels of maturity across the trends. The common denominator among them? The drive for unique CX that creates competitive differentiation. The benefits of synergy are two-way. Each sector can learn – and profit – from the other. From retail’s volume of repeat purchases and growing insight into consumer needs, travel and hospitality can learn to use data more effectively to shape unique CX. From the travel and hospitality’s network of global touchpoints, retail can learn about scale. What Retail Brings to the CX Table For its part, retail has had a head start in digital. Squeezed by online pure plays, the industry was “Amazoned”: To keep pace, smart retailers upped their game, carving out strategies that rethink CX. They dovetailed in-store and online shopping, reexamined the role of store associates and launched new services. Luxury retailer Burberry has led the way.5 Supermarket chain Sainsbury has also found a winning strategy with its Argos venture.6 Retail’s push to improve CX has driven its adoption of technologies that were once little more than buzzwords: • Exploration of IoT and intelligent spaces: The Internet of Things (IoT) is upending CX and inter- action with retail brands. Purchasing through mobile devices has gone mainstream. Voice channels are gaining traction. Retailers are exploring how to leverage smartphones and wearable devices to activate dynamic digital signage and location-based offers. Some of the most innovative advances are the result of smartphones equipped with augmented and virtual reality (AR/VR). For consum- ers, AR closes the “imagination gap”: one-third say they’re more likely to purchase big-ticket items if they can first visualize them through AR.7 (For more on AR, read our report, “Augmenting the From retail’s volume of repeat purchases and growing insight into consumer needs, travel and hospitality can learn to use data more effectively to shape unique CX. From the travel and hospitality’s network of global touchpoints, retail can learn about scale.
  • 6. | Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance6 Reality of Everything.”) Already, retailers and consumer-goods companies are launching immer- sive shopping experiences. Augmenting apparel’s journey from origin to purchase is likely to be a new battleground for fashion retailers, with AR becoming a potential point of differentiation thanks to platforms from Apple, Google and Facebook. • Pushing boundaries: chatbots, cognitive computing and conversational AI: As voice-activated personal assistants transition to shopping platforms, retailers are also becoming adept at applying AI to personalized services.8 London start-up Thread uses algorithms and virtual stylists to create in-home personal-shopper experiences. In the U.S., Stitch Fix’s curated clothing service analyzes customers’ body shapes and Pinterest pages. It also encourages customers to share personal details in exchange for a more customized experience – resulting in a wealth of data for Stitch Fix to analyze.9 U.S. cosmetics company Estee Lauder’s voice-activated application for personalized skincare solutions and beauty techniques runs on Google Home devices. The company says it envi- sions the app, called Nighttime Expert, to expand its omnichannel efforts to provide in-home, in-the-moment experiences.10 • Bring on the data: predictive analysis and data sciences: To improve profit margins and their CX, retailers are increasingly turning to the data-driven science of predictive analysis. Data mining provides a clearer picture of customers and their spending power to enable smarter, more relevant promotions. At the heart of data science? The collection and secure sharing of personal data. New business models pioneered by start-ups such as Handshake and ctrlio empower consumers with control over how their data is used and what they get in return. While local privacy regulations govern the new data businesses, customers are seemingly happy to swap their personal data for more relevant offers. It remains to be seen how the new European General Data Protection Regu- lation (GDPR) will affect companies’ ability to hyper-personalize through clever profiling.11 • Reinventing omnichannel: Squeezed by customer expectations and the rise of progressive dig- ital retailers, established brick-and-mortar merchants are searching for new ways to provide seamless omnichannel experiences. They face conflicting technology priorities, however. Choos- ing areas of focus remains challenging, as their choices and investments determine whether they remain relevant. • Putting robotics and automation to work: Retail margins are under pressure following a period of global political uncertainty and the growth of low-overhead online start-ups. Robotics and auto- mation make for an intriguing future. The first cashier-less Amazon Go store opened in Seattle, WA, in January 2018.12 In the home-improvement sector, Lowe’s LoweBot helps customers find goods and also answers customer-service questions.13 As automation impacts the retail process from inventory to last-mile delivery and in-store replenishment, the challenge for retailers is to deliver it with a focus on improved, not diminished, experience: Self-service checkout has been known to be frustrating for consumers when it reduces rather than enhances convenience.14 As automation impacts the retail process from inventory to last-mile delivery and in-store replenishment, the challenge for retailers is to deliver it with a focus on improved, not diminished, experience.
  • 7. 7Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance | Digital Business Digital Initiatives in Travel Digital’s potential for enabling the travel CX requires a mobile-first, omnichannel strategy that lets travel brands be everywhere their customers are: offline, online and on the road.  Key digital initiatives shaping the travel CX include: • The drive for ancillary revenue: Many travel businesses struggle to maintain healthy profit mar- gins amid high operating costs and price transparency. The result? A focus on ancillary revenue, with travel players adopting retail best practices and learning to excel at merchandising. The hotel and destination management sectors have been less successful in selling ancillary services due to fragmented IT systems and lack of industry standards. Until recently, few hotel websites offered flights, transfers or tours. But change is happening. Spanish newcomer Travel Compositor allows hotel groups to dynamically package their services.15 Norwegian Cruise Line markets a variety of products and services to passengers before they embark, from spa appointments to diapers.16 • Rethinking loyalty and CRM: With frequent blackout dates and almost unattainable status levels, airline and hotel loyalty programs often fall flat. In the airline sector, 9.7 trillion unused journey miles sit idle as balance-sheet liabilities.17 Travelers want flexibility. In addition to traditional airline and hotel awards, many favor instant redemptions and perks that suit their lifestyle. Seven out of 10 respondents want to redeem points in retail outlets, according to a recent survey by Collinson Lati- tude.18 A growing number of travel companies are implementing CRM technologies to provide greater customer segmentation, personalization and relevant rewards and offers. They’re also inte- grating CRM and other transactional data sources to create a higher order of customer intelligence. • Preparing for the payment evolution – via blockchain?: Blockchain has the potential to break through the tedious multistep, multiparty payment process with a more robust, secure, real-time structure. (See Figure 1). What’s blockchain’s advantage? It creates proof of ownership using unique digital signatures that rely on public and private encryption keys. With its built-in trust, blockchain can enable interoper- ability among travel companies’ programs and partners. (For more insight, please visit the blockchain section of our website.) Traditional Credit Card Payment vs. Blockchain Payment Sender Validates Wallets Private Key 1a3AZddyy355XXa23y Banks Exchanges Receivers Money transfer services Wallets Bitcoin miner FLOW OF BITCOIN AND CASH Blockchain Receivers Customer Web payment software Merchant bank’s processor Merchant’s business Internet Merchant’s bank Credit card issuing bank Credit card network 1 2 3 4 5 6 THE CREDIT CARD PAYMENT PROCESS Figure 1
  • 8. Digital Business | Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance8 But blockchain is a long way from mainstream status. Although it’s emerging from the rise of cryp- tocurrencies, blockchain’s widespread adoption in the travel sector remains to be seen. Blockchain involves behavioral change and collaboration across multiple parties as well as the headache of integration and transition from legacy systems. Moreover, concerns persist regarding security and ownership of private data. (To see how blockchain thinking could apply in the travel and hospitality sector, read “Retail: Opening the Doors to Blockchain.”) Passage of data-security and payment regulations, however, is giving blockchain a boost: In Europe, the new processes and legacy-sys- tems bypass of the Payment Services Directive 2 (PSD2) have provided unexpected motivation for blockchain development. (For more insight, read “Blockchain in Europe: Closing the Strategy Gap.”) • Getting personal: AI, predictive analytics – and coffee: In a burst of experimentation, airlines, hotels and cruise lines are engaging travelers through proactive, intelligent robotic live chat that relies on web analytics and machine learning algorithms. Through Facebook Messenger, Dutch airline Transavia creates flowing conversations that guide customers through ticket selection and purchase. (Learn more by reading our case study.) Online travel agency Fareboom19 finds cheap flights by pre- dicting future price movements based on factors such as seasonal trends and demand growth. Sometimes the technology payoff is a cup of coffee when you need it most: Air New Zealand passen- gers can order barista-made coffee via a smartphone app as they enter select airline lounges.20   • CX starts in the home office: driving organizational alignment: Travel businesses are preparing their organizations to fully embrace digital. Central to the change? An organization that’s aligned and focused. International Airlines Group (IAG) established a digital team and tasked it with iden- tifying innovations and forwarding ideas to the board of directors.21 Emirates Airlines recently recruited its first-ever chief transformation officer.22 In late 2017, Ryanair opened its third digital and IT innovation hub.23 Digital investment is also a priority for Marriott International, which oper- ates its own studio to develop digital products for long-term brand equity. Out at sea, MSC Cruises pairs a sensor-packed wristband for passengers with a dedicated app accessible on smartphones and an in-cabin TV app.24 LESSONS LEARNED Here are five lessons travel and retail can put to use to deliver unique CX: Amazon is the master of multiple market penetration: From its acquisition of Whole Foods to its supply-chain investment in branded cargo aircraft and delivery cars, the giant e-tailer has elevated crossover to new levels. And while famed for its low profit margins, Amazon’s investments in new services and entry into new industries have reaped shareholders rewards over the past decade, including a blowout first quarter for 2018.25 How can retail and travel providers similarly find competitive advantage? Stepped-up sharing, for one thing. New technologies enhance the organization’s ability to under- stand and segment more lifecycles. From what we see, retailers are getting pretty good at tracking lifecycle changes. Travel companies, in our experience … not so much. Crossover works. Collaborative commerce is critical.1
  • 9. In a burst of experimentation, airlines, hotels and cruise lines are engaging travelers through proactive, intelligent robotic live chat that relies on web analytics and machine learning algorithms. Digital Business 9Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance |
  • 10. Digital Business | Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance10 Where are the most strategic points of intersection? While companies need to dig deeper in collab- orative sharing and fulfillment, we believe simplicity is the best starting point. Sometimes logical, relevant matching is overlooked in favor of complexity. The family that just booked a luxury cruise will likely need tuxedoes and high-end dresses before they sail out of port. Travelers who’ve been away from home for two weeks will need a delivery of groceries. Choosing the right affiliate part- ner will be key. Which travel providers and segments will generate real revenue for retailers, and vice versa? Crossover also counts when it comes to innovation. Not every company has the financial wherewithal to make the needed investments independently. If you have great partners, you can share. What opportunities exist to share innovation budgets? Perhaps you can jointly sponsor research on drone deliveries. Maybe collaboration can extend to click-and-collect purchases on the airplane seat back. Open application program interfaces (APIs) create the extended ecosystem to support collabora- tive commerce. AR and voice APIs are the next wave of opportunity: Imagine the hotel guest who arrives, discovers he’s forgotten his favorite panama hat, and asks the room’s voice assistant where he can go to buy one. Voice is the new search. Together with AR, it represents the new line in the sand. You want to be there first. Commoditization and transparency is upending long-held concepts of loyalty. Is your current system still relevant? If yes, for how long?  In today’s marketplace, no convention can be left unexamined, even the hospitality industry’s time-honored tradition of blackout dates. They produce balance-sheet headaches and garner Revisit loyalty.2 Sometimes logical, relevant matching is overlooked in favor of complexity. The family that just booked a luxury cruise will likely need tuxedoes and high-end dresses before they sail out of port. Travelers who’ve been away from home for two weeks will need a delivery of groceries. Choosing the right affiliate partner will be key.
  • 11. 11Travel & Retail: Exploiting Inherent Synergies to Collectively Boost Performance | plenty of bad press.26 And you can bet that somewhere a smart, disruptive business model is being developed that will render traditional travel loyalty programs obsolete. Avoid obsolescence by reviewing why your company rewards loyalty. What simple connections can your company make with retail or travel partners? How might your organization extend collabora- tive commerce to loyalty and achieve greater returns? Airlines have deployed branded credit cards, but have they really mined the data sets to continue to develop meaningful and timely offers? What will add the wow factor and true levels of appreciation to retain the wallet share of the regular spenders? With retailers and travel providers collectively plowing billions of dollars into CX, customers are often more digitally enabled than retail and travel staffs. At some brands, customers can connect and com- municate better and faster than their own staff. Lifetime customer value, purchasing patterns and next-best or likely actions are still elusive data sets for many frontline staff in retail and travel. Automation can play a big role in helping retailers and travel providers close the gap. A fusion of new algorithms, machine learning and digital platforms is radically changing what human talent looks like, where to find it and how it’s put to work. Many companies are starting to junk outdated, rigid organizational models in favor of smaller, nimbler talent clusters that serve particular mar- kets or niches. (For more information, read the report, “Space Matters: Shaping the Workplace to Get the Right Work Done.”) Indeed, undertaking the work ahead requires cross-functional alignment and collaboration. True value will be achieved if data scientists work with robot designers, omnichannel promoters and lifetime data trust officers – new roles, and also examples of new ways of working. If your organi- zation cannot align itself with digital change, it’s unlikely it can team with others to create differentiated customer value. (For more information, read “21 Jobs of the Future: A Guide to Get- ting and Staying Employed Over the Next 10 Years.”) Retailers have become adept at addressing customer desires along the entire value chain, from production and merchandising to customer service and logistics. Travel typically emphasizes sub- sets of needs, with companies focusing on point-to-point travel or accommodation. By applying design thinking to their respective broad strokes and fine detail, retail and travel can partner on creating points of differentiation and customer value all along the travel experience. When it comes to digital, don’t forget your staff.3 Focus on customer desires – not just needs – and apply design thinking.4 A fusion of new algorithms, machine learning and digital platforms is radically changing what human talent looks like, where to find it and how it’s put to work.
  • 12. Digital Business | Travel Retail: Exploiting Inherent Synergies to Collectively Boost Performance12 Design thinking is a set of principles that lets organizations tackle the complexity of new value propositions: empathy with users, physical and emotional experiences, and customer-centric design. It engenders discipline for prototyping as well as tolerance for failure. Design thinking also helps develop responsive, flexible organizational cultures. The focus on consumer desires is a big shift for travel. Yet it’s a natural extension. Nearly all trav- elers have a retail component, from forgotten toothpaste to souvenir sweatshirts to services. Digital makes new partnerships possible along the airline and airport value chain. It fosters the integration needed for concierge-type services such as duty-free preordering and home delivery; door-to-door baggage delivery; and brands and packaging unique to the airport channel. Large supermarket chains have become expert at taking the long view, mining lifestyle moments and positioning offers and incentives accordingly. So far, few travel brands have taken a similarly broad perspective of managing customers’ “travel careers” by anticipating key moments. But new technologies are providing first steps. Predictive analysis and AI are beginning to identify event-based travel (such as festivals or sports events) and enable offers of discount packages or relevant merchandise. The hospitality sector is improving CX through digital strategies that incor- porate voice activation and smartphone-based controls. Speed of response is vital in the travel market, where dramatic fluctuations can quickly change customer value. Terrorist attacks and political instability have damaged perceptions for destina- tions such as Egypt and Turkey, among others. Last year’s hurricane season hit Caribbean tourism economies hard. How can airlines, hotels and tour operators spring into action to provide travel alternatives? Can they do so with established commitments such as flight routes and fixed investments? The solution is to be quick to recognize change – and to act. Seasonal switchovers are built into retail businesses. Stock in the travel sector also expires, yet often unpredictably. Listening to social networks can help travel companies monitor customer tastes and identify changes in travel trends and brand opinions so their CX stays current. Through social media analytics – which capture emo- tions as well as potential needs, wants and desires – automated platforms can enable the design and implementation of up-to-the-minute travel promotions that let companies pivot quickly. Be agile enough to pivot quickly.5
  • 13. 13Travel Retail: Exploiting Inherent Synergies to Collectively Boost Performance | Digital Business RELATED COGNIZANT CONTENT • “Hospitality in the Digital Era” • “The Future of Air Travel: Eight Disruptive Waves of Change” • “The Work Ahead: Mastering the Digital Economy” FOOTNOTES 1 www.airlinetrends.com/2017/02/12/lufthansa-nespresso-quality-coffee-at-the-gate-for-fee/. 2 www.emirates.com/ae/english/plan_book/dubai_international_airport/emirates_terminal_3/world_class_amenities/retail_ther- apy.aspx. 3 www.telegraph.co.uk/travel/quality-on-board-meals/british-airways-marks-and-spencer-food/. 4 www.ideaworkscompany.com/wp-content/uploads/2016/11/Press-Release-115-Global-Estimate.pdf. 5 www.theguardian.com/media-network/media-network-blog/2013/jan/15/luxury-retailers-in-store-tech. 6 www.computerweekly.com/news/4500247008/First-of-digital-Argos-stores-open-in-Sainsburys. 7 http://digitalbridge.eu/download-our-new-report-augmented-reality-changing-the-face-of-retail/. 8 https://blog.ingenico.com/posts/2017/07/ai-and-chatbots-transform-the-retail-industry.html. 9 https://blog.stitchfix.com/inside-stitchfix/get-your-best-fix-2/. 10 http://fashionandmash.com/2017/11/16/estee-lauder-voice-google-home/. 11 www.computerweekly.com/news/252435051/100-days-to-GDPR-compliance-deadline. 12 www.usatoday.com/story/tech/2018/01/22/amazon-go-lines-form-seattle-try-checkout-free-shopping/1053592001/. 13 www.techemergence.com/robots-in-retail-examples/. 14 www.telegraph.co.uk/news/2017/04/17/shoppers-vent-anger-sainsburys-new-card-tills-dont-allow-weighed/. 15 www.mmgyglobal.com/news/news-europes-tourism-smes-are-getting-smarter. 16 www.ncl.com/uk/en/onboard-gifts/kids. 17 www.ncconsumer.org/news-articles/consumers-are-sitting-on-9-7-trillion-unused-rewards-miles.html. 18 www.collinsonlatitude.com/insights/loyalty-commerce-in-a-digital-age/. 19 www.fareboom.com/. 20 www.scoop.co.nz/stories/BU1710/S00134/air-new-zealand-to-introduce-organic-fair-trade-coffee.htm. 21 https://skift.com/2016/12/29/has-personalization-of-passenger-experience-entered-a-critical-stage/. 22 Ibid. 23 www.futuretravelexperience.com/2017/11/ryanair-opens-new-travel-lab-in-spain-as-part-of-its-always-getting-better-pro- gramme/. 24 www.cnet.com/news/msc-cruise-ships-wearable-tech-meraviglia-seaside/. 25 www.cnbc.com/2018/02/01/reuters-america-update-3-amazon-posts-largest-profit-in-its-history-on-sales-tax-boost.html. 26 www.forbes.com/sites/johnnyjet/2017/10/31/are-airline-loyalty-programs-worth-the-hassle/#4f59e0142403.
  • 14. ABOUT THE AUTHORS The authors would like to acknowledge the Cognizant Consulting Retail, Travel, Hospitality and Consumer Goods research team – Ankit Yadav, Aman Roul and Mariam Shireen – for their invaluable contributions to this white paper. ACKNOWLEDGMENTS Duncan Alexander is a Director within Cognizant Consulting’s UK Travel Hospitality Practice. As a consultant, his clients have included major travel brands and travel technology start-ups. He has developed businesses and supported customers on a global scale, with a focus on digital transformation through the application of new business technologies. Previous to Cognizant, Duncan worked in senior executive positions at the Emirates Group, Official Airline Guides (OAG), SITA and Travelport. He has also worked as a management consultant with PriceWaterhouseCoopers and Logica. Duncan served in the British Armed Forces as an Officer in the Royal Engineers. He has a BA Hons Degree in geography from King’s College London and is a Fellow of the Chartered Institute of Marketing and is a Chartered Marketer. Duncan can be reached at Duncan.Alexander@ cognizant.com | Linkedin: www.linkedin.com/in/duncanalexander1/?ppe=1. Duncan Alexander Director, UK Travel Hospitality Practice, Cognizant Consulting Arabella Bathurst is a Senior Consultant within Cognizant Consulting’s Retail, Consumer Goods and Travel Hospitality Practice. She has diverse experience in strategic and operational consulting for industry-leading clients. Arabella is currently working on an exciting project that aims to future-proof a cosmetics major’s business in concession stores. She led the winning team for a prestigious internal competition, Cognizant Consulting Czars, developing an innovative proposal for a personalized subscription model to disrupt the client’s brand portfolio. Prior to Cognizant, Arabella worked at Goldman Sachs, where she started her career within the operations division. She has a BA Hons in Geography from Durham University. Arabella can be reached at Arabella.Bathurst@cognizant.com | Linkedin: www.linkedin.com/in/arabella-bathurst-b3497864/. Arabella Bathurst Senior Consultant, Retail, Consumer Goods and Travel Hospitality Practice, Cognizant Consulting Digital Business | Travel Retail: Exploiting Inherent Synergies to Collectively Boost Performance14
  • 15. Digital Business 15Travel Retail: Exploiting Inherent Synergies to Collectively Boost Performance |
  • 16. © Copyright 2017, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means,electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. Codex 3170 ABOUT COGNIZANT CONSULTING With over 5,500 consultants worldwide, Cognizant Consulting offers high-value digital business and IT consulting services that improve business performance and operational productivity while lowering operational costs. Clients leverage our deep industry experience, strat- egy and transformation capabilities, and analytical insights to help improve productivity, drive business transformation and increase shareholder value across the enterprise. To learn more, please visit www.cognizant.com/consulting or e-mail us at inquiry@cognizant .com. ABOUT COGNIZANT Cognizant (NASDAQ-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and technology models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innova- tive and efficient businesses. Headquartered in the U.S., Cognizant is ranked 205 on the Fortune 500 and is consistently listed among the most admired companies in the world. Learn how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant. ABOUT RETAILMATE™ For more information on crossover between retail and travel, read about Cognizant’s prototypes of immersive retail spaces in airport lounges using our RetailMate solution. World Headquarters 500 Frank W. Burr Blvd. Teaneck, NJ 07666 USA Phone: +1 201 801 0233 Fax: +1 201 801 0243 Toll Free: +1 888 937 3277 European Headquarters 1 Kingdom Street Paddington Central London W2 6BD England Phone: +44 (0) 20 7297 7600 Fax: +44 (0) 20 7121 0102 India Operations Headquarters #5/535 Old Mahabalipuram Road Okkiyam Pettai, Thoraipakkam Chennai, 600 096 India Phone: +91 (0) 44 4209 6000 Fax: +91 (0) 44 4209 6060