From the impact of Mobility-as-a-Service on traditional car ownership and rental, to the complete redesign of entertainment centres once autonomous vehicles become more prevalent, the future of mobility is set to have a significant impact on the Travel & Leisure sectors.
Click on each of the sections below to understand how emerging mobility trends could impact the Travel and Leisure sectors in the near, medium and long-term future.
Multi-modal travel subscriptions for cities: New multi-modal travel and ticketing apps are emerging that could transform how we move around cities. In several cities, we are seeing the rise of travel subscription services that replace the traditional car with open access to public services, taxis, car rental and other modes of transport, with ambitions to deploy across the globe.
Impact of Mobility-as-a-Service (MaaS) on traditional car rental: The rise of local urban mobility services could be a source of competition for traditional car rental businesses, which rely heavily on both tourism and business use. Already, we are seeing many of the major day rental players diversifying into new mobility arenas as a way of leveraging existing capabilities and offering future revenue alternatives.
Shared services for food, drink and retail deliveries: Already we are seeing a number of mobility service organisations leveraging their fleets to also move into the rapid delivery of restaurant food and goods. This has become an important distribution channel for new food businesses and is also an opportunity for the mobility service providers to diversify their revenue base.
Electrification of the rail network: Electrification of the rail network will be primarily driven Network Rail's ability to deploy infrastructure. Anticipated investment requirements for Network Rail are sizable due to the complexity of retrofitting rail infrastructure. However, electrification programme reductions (due to projected costs) and overall uncertainty over the direction of government policy regarding electrification is likely to delay progress.
Global roaming for MaaS and multi-modal services: A logical extension of existing multi-modal ticketing apps and mobility services is the development of a global roaming proposition, allowing consumers to use their home travel subscription effortlessly while abroad. This could be of particular value to business travellers and frequent tourists.
Sidewalk delivery robots: A number of organisations are trialling autonomous delivery robots that can pick up and deliver small packages in urban environments along sidewalks. This could be a potential future delivery mode for restaurant services.
Intercity Autonomous Vehicle (AV) ride-hailing services (either individual or pooled): Intercity autonomous vehicle services could partially erode market share for rail if priced competitively, particularly if AV transport offers better work conditions for the business passenger segment. A future question is whether these volumes would have an impact on mass-transit rail services and the congestion of inter-city roads.
Redesigning entertainment centres: As AVs become more prevalent, future retail sites may need to be redesigned.
Traditional entertainment and retail locations may need to adjust their shopfronts to account for visitors being dropped off by AVs, AV delivery/collection points and charging locations for electric vehicles. Parking spaces could be converted to retail space if AVs can self-park in cheaper out-of-town locations.
Electric flying taxis: A number of organisations are developing battery-powered 'flying taxis' for short-distance journeys. This could begin to replace short-haul flights and drives along specific routes - whether for business or tourism, and has implications for both connecting tourism and leisure services as well as the aviation regulators governing them.