Technology and innovation drive evolution in ground transportation at TIS

The Travel Innovation Summit (TIS) held in Seville from October 23-25, 2024, underscored the transformative role of ground transportation in enhancing travel experiences and driving industry growth. During a key panel session titled “Transforming Transfers: The Impact of Technology on the Transport Segment,”, Johan Van Vulpen, CEO of Transferz, Karol Kuhl, Director of Pricing, Analytics & BI at Sixt Ride, and Layth Bunni, Sales Enablement Manager at Blacklane, joined Servantrip’s CEO Manuel Núñez, and moderated by Roman Townsend, Managing Director of the B2B TravelTech PR agency, Belvera Partners.

The highly skilled panel discussed technological advancements and current challenges in ground transportation, from greener transportation options with electric cars to a future of autonomous vehicles.

When discussing the role of technology in ground transportation, panelists noted that, “Technology can significantly enhance service efficiency, allowing to deliver a more streamlined and reliable experience for the passengers. While technology allows the handling of a high volume of daily requests, companies must not lose sight of the fact that ground transportation remains a people-centered service at its core.”

As the panel explored the impact of real-time availability and instant booking. Participants agreed “Embracing ground transportation as a standard element in companies offerings has been crucial. Technology has advanced significantly from a global perspective, allowing enhancements in service delivery. Instant confirmation is essential for improving the booking process. It dramatically reduces the stress associated with traveling, especially for business travelers who often work with tight schedules. Flexibility is also key to allow travelers to book in advance with a short window.”

Examining how dynamic pricing impacts customer experience, the participants noted that “Inflation has played a significant role in shaping our dynamic pricing strategies, making it essential to adapt quickly. Travellers are increasingly accustomed to dynamic pricing models. This shift necessitates that corporate clients become more proactive in managing their business travel expenditures, ensuring they can adapt to the fluctuations in pricing. Importantly, maintaining a well-supported network requires a careful approach to dynamic pricing to balance efficiency and customer satisfaction.”

The panel delved into how technology has evolved to address service gaps and delays, ensuring smoother and more reliable ground transportation for travellers. It was highlighted the importance of real-time tracking and geolocation, “If travelers do not show up on time, they cannot expect the driver to be there. It’s essential to introduce technology that accounts for potential delays, such as implementing buffer times for customs. Indeed, is important to use predictive forecasting to identify when a traveler is ready for pickup, acknowledging that no one enjoys waiting. the significance of on-ride and pre-ride tracking as vital innovations that enhance the overall travel experience. This is about responsibility and respect for both the driver and the traveler.”

Addressing sustainability, regarding the challenges of integrating electric vehicles (EVs) into the airport transfer market. While EVs are vital for sustainable transportation, “costs and implementation time required for charging infrastructure need to be considered, knowledge, attitude, and behavior-based decisions are critical; once people understand the benefits, everyone will likely choose electric options. Governments also play a significant role. Also, it has been pointed out that “electric distances allow for full operation up to 300 km, making EVs a viable option for many rides, but not all.”

The panel also addressed customer perceptions of electric vehicles and their impact on adoption rates. “Customers have higher expectations and challenges when it comes to electric mobility; they seek both superior service and a commitment to sustainability.”

The future of autonomous vehicles and their role in the industry also sparked considerable interest. Notably, only one person in the session had experienced a ride in an autonomous car but “the experience was amazing,” highlighting the potential for positive perceptions.  “For every revolution, it takes time to gain widespread acceptance.”

The discussion also touched on how autonomous vehicles might influence transfer pricing models and their adoption by service providers. “Costs per ride would likely decrease since there would be no driver expenses, but EU regulations may pose obstacles to smooth implementation. It’s not a question of if autonomous vehicles will increase efficiency, but rather when. On the other side, attending to practical considerations, who will help travelers with their luggage, and how will the meet and greet service adapt in an autonomous future?”