A few years ago, Cornerstone Information Systems CEO Mat Orrego wrote the first installment of this editorial. From his perspective, recent events have illustrated some exceptional, successful cases of the kind of problem-solving in action that he had discussed. For some, according to Orrego, it’s now about pivoting or perishing.
This pandemic has forced us to face many new realities and the significant challenges we will face in the post-Covid travel industry. From airlines to hotels to cruise ships, travel is all about the economies of scale — uniting people to transport, house, feed and entertain them — to generate profits. These modalities of service delivery are engrained, but their deficiencies in human safety compared with emerging alternatives will impact when and how people choose to leave the comfort of their homes and communities.
History has taught us that “big” ideas emerge from crisis, and these ideas become accelerants to confront difficult choices that were easy to push off during better times. Travel and its ecosystems of interdependent businesses will need to pivot operations and business models to remain relevant and generate value in the future. Work effectiveness, and the use of existing human and capital resources, are early pivot examples.
We are working smarter because of the forced mass adoption of platforms such as Slack and Zoom. As a result, our interactions and meetings are more flexible and focused. We can qualify and work opportunities from the comfort of our homes without expensive flights, meeting venues and restaurants. This way of working is starting to feel like a more effective way to run a business.
The transition by airlines from transporting people to transporting goods during this crisis was born out of necessity. But it was enabled through connected enterprises of cloud-based logistics platforms than can pivot business models and deploy resources to serve other purposes.
Travel Leaders Corporate leveraged its at-home agents to help support Covid health care services during this pandemic. What’s the point of an omnichannel platform if all it can deliver is travel services? More pivoting is required to leverage the core of what drives and employs this services-based industry.
In each of these cases, the human and technology infrastructure was already in place. The pivot is a combination of creativity and the ability of the organization to execute. The travel industry has many potential pivots that can have significant impacts on traveler safety and wellness while delivering a kinder impact on the environment and local economies.
The choice to pivot a business model is often forged from economic necessity. Now is the best moment to do something different, so we can employ the many bright and talented people who are sidelined and those who want to be part of the new travel industry. Before the new normal becomes business as usual, we should all start thinking about our pivot to deliver on a broader value proposition than just booking and buying corporate travel.
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