Does Virtual Reality Have a Place in Travel?
EyeforTravel's latest whitepaper looks at where VR is, and how brands are currently using it
The travel industry is driven by inspiration - an industry that leverages curiosity, realizes experiences and opens us up to the world. If experiences are the currency of the travel sector, and inspiration is the key to loyalty, the use of virtual reality (VR) technology would seem like the perfect match.
Virtual reality could change the way people consumer travel content but are consumers ready to embrace this new technology and is it worth travel brands investing today? EyeforTravel's latest whitepaper titled 'Does Virtual Reality Have a Place in Travel?' takes a closer look at the budding area of VR to see if the next revolution was around the corner.
Gfk Consumer Research in the UK found that half of British consumers find the idea of owning a VR device appealing, with most (31%) finding the idea very appealing, while Greenlight VR's research highlights a very high interest in using VR for travel and tourism.
Despite this interest in VR and a recognition of functionality, sales in 2016 were disappointing when compared to forecasts made before the year began. For example, CCS Insight adjusted its forecast to reflect a slower start. Previously it expected 2 million units of dedicated VR headsets (such as the Oculus Rift or PlayStation VR, as opposed to smartphone units) to be sold in 2016 – it now estimates 1.2 million were sold. Similarly, Digi-Capital expected a combined USD4.4 billion of VR/AR revenue in 2016 but revised that estimate down tobUSD2.7 billion (Digi-Capital, 2017).
When it comes to more complex dedicated systems, the numbers are far smaller. SuperData Research estimates that by the end of 2016 the following had been sold among the major VR headset players going for more expensive and complex offerings:
With shipments per year of VR devices in major markets expected to grow by more than 400% from 2017 to 2021, the user base will also expand into a viable market over the next few years. SuperData estimates that the number of average monthly unique users of VR was 16 million in 2016. It expects this to rise by 80% in 2017 to more than 28.8 million, and then up to 81.5 million by 2019 (SuperData, 2017). If this trend were to broadly continue to 2021 then this would mean approximately 120 million monthly unique VR users – a growth of more than 300% from 2017 to 2021.
The full whitepaper goes into detail about the business case for VR, case studies from leading travel brands currently using VR and much more. You can download the full whitepaper here.
About Reuters Events
Reuters Events is a community where the world’s top online travel brands – from hotels to airlines, online travel agents, cruise, car hire firms and more – come to meet to drive forward growth and innovation in the industry.
We know that working in the turbulent online travel industry is as exciting as it is challenging. In this constantly evolving market place, we appreciate that keeping up with the pace of change can be tough, not to mention time consuming. You need the right information, contacts and strategic insight to succeed.
Established in 1997, by Tim Gunstone, we offer a diverse product portfolio including industry analysis, insights, research, webinars, reports and conferences to suit the needs of our clients.
Our clients read as a who’s who of online travel. From major hotel brands to new startups, we help our 80,000 strong customer base make better decisions, build better brands, close the most lucrative deals and ultimately sell more of their product. After all, increasing travel brand profit margins in the cutthroat travel industry is the name of the game!
No other online travel intelligence provider has been charting the growth of online travel as long as we have. We were here at the inception of online travel and we know the industry inside out. What’s more, we’re a small, friendly team. Forget impersonal hierarchies, we like to get to know our customers and work towards their exact needs.
