Virtual Reality (VR) is a new consumer technology and
remains in early adopter mode currently, so when should travel brands expect the
technology to really take off? EyeforTravel’s
Does Virtual Reality Have a Place in Travel? White paper believes that we
are a few years off but there is plenty of potential.
In 2016, Google Cardboard and Samsung Gear were the leading
VR devices by shipments, both of which are designed for smartphones. Both
shipped around 5 million units according to their parent companies. Although
this is a relatively small number it puts them way ahead of more complex,
dedicated sets, such as the much-publicized Oculus Rift, the parent company of
which is now owned by Facebook.
Indeed overall, 2016 was not the break-out year that
analysts had initially expected, with actual shipments disappointing initial
forecasts. As yet it remains a relatively new technology and only a small
number of leading-edge consumers have acquired headsets. However, the report
notes that consumers are extremely open to the possibilities of using VR for
travel content even at this early stage of the technology’s adoption. Interest
ranges from just over a third of UK consumers who feel VR could be useful for
travel planning up to nearly three quarters of US consumers who are interested
in the applications of VR for travel and tourism. The report also expects 2017
to see strong growth that will continue out to 2021 with the US being the
leading market in terms of shipments and market value.
Alex Hadwick, Head of Research at EyeforTravel
believes that, “In 2017 the market will still be quite small overall and only
just beginning to mature from a consumer perspective. A dedicated set with a PC
could easily see a consumer set back by more than USD1,000. Likewise, content
is quite limited at this stage, although growing rapidly and investments by big
companies in the area have also not yet been fully realized. Therefore, going
all-in as a travel brand seems premature at this stage.
However, big changes
are afoot, with new offerings pushing prices down.”
“Travel-focused businesses must also keep an open mind
to the broad range of uses that this technology might bring in the future,”
said Andrew Newton, Head of Corporate Travel, Colpitts World Travel. “I think
we are currently limited in our view of VR as we think of it as something that
requires goggles to view an alternative, and often intense, experience. While
it may be a long way from the minds of the average travel service provider
today, this is something that might be common to us all in ten years’ time.”
Hadwick also advises that “travel brands should also
keep an eye on AR in the future and how this interacts with VR. Already, the
vast majority of VR device shipments in the medium term are expected to be
smartphone systems, which is also where practically all AR applications will be
hosted. Given that everyone already owns an AR device, albeit one with a few
limits, the possibilities are enormous and there is room for conflict with VR
in getting the consumer’s attention as well as co-existence. Perhaps we can
expect VR to take a major role in the inspiration phase and AR to be a major
aid to the traveler once they begin their physical journey in the future.”
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.
