Amazon develops extensive tourism technology in order to get a foot into the travel market
Amazon tourism technology: The (re) conquest of travel industry
The story:
After the bitter failure of its Amazon Destinations hotel reservation platform in 2015, Amazon is changing the course and is moving towards the development of tourism technology solutions such as AI. Its technological advances appeal to several major travel companies, who see great potential for online booking. Skyscanner or YES.sncf include voice search and reservation functionality at Amazon Echo. Global player Amazon wants to invest in the development of technology solutions and expands it strategic partnerships with leading online travel agencies to strengthen its footprint in the tourism industry. As the most powerful brand in the world, Amazon wants to be successful in the tourism industry by covering everything from data storage (such as alexa in hotel rooms) to the payment system (Amazon Pay is now used by the OTA Lastminute.com which has 40 million users monthly in the UK, France, Germany, Italy and Spain). By that Amazon will ensure an optimal purchasing journey and a full customer journey.
Dimension of Innovation:
What is new?
It is a Market Innovation, as the whole tourism market can/will be shaped by the interference of Amazon. The E-Commerce Giant is in huge competition with Google and Apple and has lots of valuable data for the tourism industry. Also, we can see that Amazon's technology is not only used in the Hospitality sector (Alexa), but now offers cooperations with Booking.com (Prime members get discounts for their bookings at the plattform) and offers payment solutions for several travel agencies such as Cleartrip.
For whom is it new? How new is it?
It is neither new in the market, nor in the company, as Amazon has already tried to settle down in the tourism industry back in 2015. If we do not regard this, I would say it is new for both, the market because Amazon has not been a part of the tourism market until now and for the company as well because they take on a new segment.
Because Amazon is such a powerful brand and thus has great potential to shape and change the way people pay/consume/get informed about touristic products, we would say it is a radical change.
What type of innovation?
Mostly Innovations in IT and Innovations in Transactions, but a huge focus is also put on information gathering as Amazon tries to attract leading brands using other advertising and sales channels such as Google and Instagram which would then be a (Marketing) Management Innovation.
What can you find about the background of the innovation?
Simply to stay in competition with the big tech companies. For some, all these developments and acquisitions have only one purpose, to compete with rival Google. According to them, Amazon tends to become a metasearch on which the user can search for information and buy directly from its platform, rather than go to Google.
Who was the innovator?
Could not be found.
How has it been generated?
Currently, Amazon, in collaboration with a research laboratory, is working on the development of a bracelet capable of analyzing the emotions conveyed by our voice. With this technology, Amazon hopes to better target advertising and product recommendation. It is conceivable that companies active in transportation find an interest in this device to offer flights or destinations.
Possible learnings about the innovation process (what does it need to develop an innovation like this?)
Even if you fail, you can try again!
The story:
After the bitter failure of its Amazon Destinations hotel reservation platform in 2015, Amazon is changing the course and is moving towards the development of tourism technology solutions such as AI. Its technological advances appeal to several major travel companies, who see great potential for online booking. Skyscanner or YES.sncf include voice search and reservation functionality at Amazon Echo. Global player Amazon wants to invest in the development of technology solutions and expands it strategic partnerships with leading online travel agencies to strengthen its footprint in the tourism industry. As the most powerful brand in the world, Amazon wants to be successful in the tourism industry by covering everything from data storage (such as alexa in hotel rooms) to the payment system (Amazon Pay is now used by the OTA Lastminute.com which has 40 million users monthly in the UK, France, Germany, Italy and Spain). By that Amazon will ensure an optimal purchasing journey and a full customer journey.
Dimension of Innovation:
What is new?
It is a Market Innovation, as the whole tourism market can/will be shaped by the interference of Amazon. The E-Commerce Giant is in huge competition with Google and Apple and has lots of valuable data for the tourism industry. Also, we can see that Amazon's technology is not only used in the Hospitality sector (Alexa), but now offers cooperations with Booking.com (Prime members get discounts for their bookings at the plattform) and offers payment solutions for several travel agencies such as Cleartrip.
For whom is it new? How new is it?
It is neither new in the market, nor in the company, as Amazon has already tried to settle down in the tourism industry back in 2015. If we do not regard this, I would say it is new for both, the market because Amazon has not been a part of the tourism market until now and for the company as well because they take on a new segment.
Because Amazon is such a powerful brand and thus has great potential to shape and change the way people pay/consume/get informed about touristic products, we would say it is a radical change.
What type of innovation?
Mostly Innovations in IT and Innovations in Transactions, but a huge focus is also put on information gathering as Amazon tries to attract leading brands using other advertising and sales channels such as Google and Instagram which would then be a (Marketing) Management Innovation.
What can you find about the background of the innovation?
Simply to stay in competition with the big tech companies. For some, all these developments and acquisitions have only one purpose, to compete with rival Google. According to them, Amazon tends to become a metasearch on which the user can search for information and buy directly from its platform, rather than go to Google.
Who was the innovator?
Could not be found.
How has it been generated?
Currently, Amazon, in collaboration with a research laboratory, is working on the development of a bracelet capable of analyzing the emotions conveyed by our voice. With this technology, Amazon hopes to better target advertising and product recommendation. It is conceivable that companies active in transportation find an interest in this device to offer flights or destinations.
Possible learnings about the innovation process (what does it need to develop an innovation like this?)
Even if you fail, you can try again!
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