EyeforTravel Blog
Blockchain: the end of the sociopath CEO and the rise of consensus?
In today’s homepage story we publish the first in a two-part Q&A with Winding Tree founder and CEO Max Izmaylov. In conversation with him this week, he recommended a fascinating new video from technologist, serial entrepreneur and bitcoin expert Andreas Antonopolous.
If you watch one video this week, we recommend thisone!
Aside from explaining why today’s hierarchical organisations, which are increasingly corrupted by power and often led by ‘sociopath CEOs’, no longer work for the information age, he also clarifies something that is often stated as fact: That blockchain is the technology that underpins bitcoin.
“Blockchain isn’t the tech behind bitcoin, it is one of the technologies - it is actually the database, the artefact, the ledger that is produced. But here is the really interesting thing: how is it produced. And the way it is produced in bitcoin and thousands of other cryptocurrencies and blockchains, that use a similar recipe, is on a completely flat, peer-to-peer non-hierarchical network where nobody knows or trusts anybody else.
"Where we are able to engineer an emergence of an artefact, a ledger that records transactions that everybody can trust, that no one has the power to change, to modify after the fact, that removes the trust from the person to a mathematical construct that is neutral. That process is called consensus. It is the fundamental invention behind bitcoin and all the other digital currencies as a way to achieve trust at massive scale on a completely flat network. It allows us to achieve such a level of trust that we can conduct transactions worth billions of dollars…”
Phew! Something to think about!
It’s not too late to join us in Amsterdam next week for some fascinating blockchain insights
If you watch one video this week, we recommend thisone!
Aside from explaining why today’s hierarchical organisations, which are increasingly corrupted by power and often led by ‘sociopath CEOs’, no longer work for the information age, he also clarifies something that is often stated as fact: That blockchain is the technology that underpins bitcoin.
“Blockchain isn’t the tech behind bitcoin, it is one of the technologies - it is actually the database, the artefact, the ledger that is produced. But here is the really interesting thing: how is it produced. And the way it is produced in bitcoin and thousands of other cryptocurrencies and blockchains, that use a similar recipe, is on a completely flat, peer-to-peer non-hierarchical network where nobody knows or trusts anybody else.
"Where we are able to engineer an emergence of an artefact, a ledger that records transactions that everybody can trust, that no one has the power to change, to modify after the fact, that removes the trust from the person to a mathematical construct that is neutral. That process is called consensus. It is the fundamental invention behind bitcoin and all the other digital currencies as a way to achieve trust at massive scale on a completely flat network. It allows us to achieve such a level of trust that we can conduct transactions worth billions of dollars…”
Phew! Something to think about!
It’s not too late to join us in Amsterdam next week for some fascinating blockchain insights
Senior Executives from Hilton, IBM and Mozio discuss Personalization in Travel
On Nov 15 (11AM EST), senior executives from Hilton, IBM and Mozio will be coming together on an EyeforTravel webinar titled ‘Personalization in Travel – Moving Beyond the Buzzword’.
While the concept of personalization has been around forever, the advances in mobile, data science and technology now allows a far greater ability to be able to recognise where the customer is in the travel cycle, provide the right content at the right time while simplifying the process.
In this webinar, EyeforTravel will go beyond the buzzword to see how big brands approach personalization
Speakers sharing their expert insights include:
Note: The webinar recording will be sent to all those who register. If you cannot make it to the live webinar but would like to be emailed the recording, please sign up.
If you have any questions, please get in touch with Nikhil (nikhil@eyefortravel.com).
Nikhil Vijayan
Head of Digital & Content
EyeforTravel
nikhil@eyefortravel.com
While the concept of personalization has been around forever, the advances in mobile, data science and technology now allows a far greater ability to be able to recognise where the customer is in the travel cycle, provide the right content at the right time while simplifying the process.
In this webinar, EyeforTravel will go beyond the buzzword to see how big brands approach personalization
Speakers sharing their expert insights include:
- Phillipe Garnier, VP Distribution and Partnerships, Hilton
- Steven Punchuk, WW Lead Customer intelligence & Revenue Management at IBM
- Emre Mangir, COO and Co-Founder, Mozio
- What are the elements of the ecosystem that ensure success for personalization initiatives?
- Leverage your data to compile a truly customer-centric database - utilise effective and relevant messaging to your customers, and successfully bridge that personalization gap
- Create a technology landscape to enable effective personalization
- Connect the data dots to build and create personalized interactions - how can you personalize at scale and what information can you gather to deliver a seamless customer experience?
Note: The webinar recording will be sent to all those who register. If you cannot make it to the live webinar but would like to be emailed the recording, please sign up.
If you have any questions, please get in touch with Nikhil (nikhil@eyefortravel.com).
Nikhil Vijayan
Head of Digital & Content
EyeforTravel
nikhil@eyefortravel.com
China’s travel apps on a growth path
Already more than 60% of Chinese consumers primarily use their smartphone to research their vacation and the only way is up for smartphone and app usage says EyeforTravel’s new Chinese Travel Consumer Report 2017-2018
Chinese consumers are far more smartphone and app-focused as they research and book their travel than their Western counterparts, with 60.3% using their smartphone as their main research device, versus 30.4% who mainly use a desktop or laptop finds the research.
As Chinese travellers move on to the booking phase, smartphones become less dominant than in the research phase but still leads desktop. When making a flight booking, 41.3% choose to use their smartphone, compared to 35.2% who prefer to use a desktop/laptop. Only 8.3% book using a tablet and 6.2% buy their flight face-to-face with a travel agent. Similarly, with accommodation 41.8% of respondents prefer a smartphone, 34.2% a desktop/laptop, and 8.7% of consumers use a tablet.
Within this, apps are comprehensively beating browsers for Chinese users’ time and spending. Across all flight bookings in EyeforTravel’s survey 34.4% used a smartphone app versus 6.9% who made their booking using a web browser. Once again, there is a similar pattern for accommodation bookings, underlining the unique dynamic of the market.
Furthermore, smartphone usage for travel planning is set to grow as younger generations are more smartphone-focused. Among 18-35 year olds 65.5% primarily use their smartphone to research travel but just 22.9% use desktops or laptops. For those aged above 56 47.7% prefer a smartphone and a substantially higher 43.7% go through a desktop/laptop.
Not only this but younger generations put more emphasis on travel, spending proportionally more of their annual income on tourism. They are also benefiting from improving education standards and economic conditions in China, further increasing their discretionary spending power. These conditions will make the smartphone the dominant device of the future when trying to reach the Chinese travel consumer.
Become a member of EyeforTravel On Demand now and access the full report, which includes:
Chinese consumers are far more smartphone and app-focused as they research and book their travel than their Western counterparts, with 60.3% using their smartphone as their main research device, versus 30.4% who mainly use a desktop or laptop finds the research.
As Chinese travellers move on to the booking phase, smartphones become less dominant than in the research phase but still leads desktop. When making a flight booking, 41.3% choose to use their smartphone, compared to 35.2% who prefer to use a desktop/laptop. Only 8.3% book using a tablet and 6.2% buy their flight face-to-face with a travel agent. Similarly, with accommodation 41.8% of respondents prefer a smartphone, 34.2% a desktop/laptop, and 8.7% of consumers use a tablet.
Within this, apps are comprehensively beating browsers for Chinese users’ time and spending. Across all flight bookings in EyeforTravel’s survey 34.4% used a smartphone app versus 6.9% who made their booking using a web browser. Once again, there is a similar pattern for accommodation bookings, underlining the unique dynamic of the market.
Furthermore, smartphone usage for travel planning is set to grow as younger generations are more smartphone-focused. Among 18-35 year olds 65.5% primarily use their smartphone to research travel but just 22.9% use desktops or laptops. For those aged above 56 47.7% prefer a smartphone and a substantially higher 43.7% go through a desktop/laptop.
Not only this but younger generations put more emphasis on travel, spending proportionally more of their annual income on tourism. They are also benefiting from improving education standards and economic conditions in China, further increasing their discretionary spending power. These conditions will make the smartphone the dominant device of the future when trying to reach the Chinese travel consumer.
Become a member of EyeforTravel On Demand now and access the full report, which includes:
- A survey of more than 2,000 Chinese travel consumers.
- Economic analysis and projections for the Chinese economy.
- Summaries and outlooks for Chinese domestic and outbound travel.
- Consumer booking, research, and trip spending behaviours.
- Lead times for flight, accommodation and tours and activities.
- Geographic and demographic breakdowns.
- More than 50 figures, tables and charts profiling the Chinese travel consumer.
OTAs dominate the Chinese travel market
Book direct looks to be on life support in the Chinese market as more than 70% of Chinese digital bookings are made through OTAs according to EyeforTravel’s new Chinese Travel Consumer Report 2017-2018.
Although the Chinese government has put pressure on China’s big airlines to drive more direct bookings, pushing back against the tide will be a mammoth task as EyeforTravel’s research finds that the sector has an Online Travel Agency (OTA) penetration of 77.5% for website bookings and 81.2% for bookings made through an app. In contrast, 17.6% of website users reported to EyeforTravel that they booked direct and a slightly lower 12.9% also went direct through an airline app.
This is a marked contrast between Chinese and Western markets, where airlines have been able to hold their market share or in some cases grow it and illustrates the unique dynamics of this market, where smartphones and apps play a much larger role in the travel booking process than in the West.
The report found a similar pattern for accommodation bookings, with seven out of 10 Chinese travel consumers booking through OTAs, compared to around one in 10 using a hotel’s website or apps.
The struggle to take back market share will be made more complex by the concentration of the OTA market in China, with only a handful of players, and price sensitivity key for Chinese travellers says the report. Among China’s OTAs, Ctrip, Qunar and Meituan-Dianping are the dominant forces, with the first two particularly strong in app usage, which will continue grow as China’s younger travel consumers, who favour smartphone and app booking, become a larger segment of the market. With more than nine in ten Chinese consumers visiting price comparison sites during research, they have also been able to strengthen their market proposition by becoming integral players in metasearch, further entrenching their competitive advantage.
The report also notes that Tujia is primed for growth as the biggest player in the Chinese home rental market, with around 450,000 properties nationwide. It has been strengthened by its acquisition of the home sharing businesses of both Qunar and Ctrip and agreements with HomeAway and Japan’s homeshare portal Rakuten Lifull Stay to offer more overseas listings.
Become a member of EyeforTravel On Demand now and access the full report, which includes:
Although the Chinese government has put pressure on China’s big airlines to drive more direct bookings, pushing back against the tide will be a mammoth task as EyeforTravel’s research finds that the sector has an Online Travel Agency (OTA) penetration of 77.5% for website bookings and 81.2% for bookings made through an app. In contrast, 17.6% of website users reported to EyeforTravel that they booked direct and a slightly lower 12.9% also went direct through an airline app.
This is a marked contrast between Chinese and Western markets, where airlines have been able to hold their market share or in some cases grow it and illustrates the unique dynamics of this market, where smartphones and apps play a much larger role in the travel booking process than in the West.
The report found a similar pattern for accommodation bookings, with seven out of 10 Chinese travel consumers booking through OTAs, compared to around one in 10 using a hotel’s website or apps.
The struggle to take back market share will be made more complex by the concentration of the OTA market in China, with only a handful of players, and price sensitivity key for Chinese travellers says the report. Among China’s OTAs, Ctrip, Qunar and Meituan-Dianping are the dominant forces, with the first two particularly strong in app usage, which will continue grow as China’s younger travel consumers, who favour smartphone and app booking, become a larger segment of the market. With more than nine in ten Chinese consumers visiting price comparison sites during research, they have also been able to strengthen their market proposition by becoming integral players in metasearch, further entrenching their competitive advantage.
The report also notes that Tujia is primed for growth as the biggest player in the Chinese home rental market, with around 450,000 properties nationwide. It has been strengthened by its acquisition of the home sharing businesses of both Qunar and Ctrip and agreements with HomeAway and Japan’s homeshare portal Rakuten Lifull Stay to offer more overseas listings.
Become a member of EyeforTravel On Demand now and access the full report, which includes:
- A survey of more than 2,000 Chinese travel consumers.
- Economic analysis and projections for the Chinese economy.
- Summaries and outlooks for Chinese domestic and outbound travel.
- Consumer booking, research, and trip spending behaviours.
- Lead times for flight, accommodation and tours and activities.
- Geographic and demographic breakdowns.
- More than 50 figures, tables and charts profiling the Chinese travel consumer.
EyeforTravel's Chinese Travel Consumer Report 2017-2018
The following is the introduction EyeforTravel's Chinese Travel Consumer Report 2017-2018, which is available for EyeforTravel On Demand users now ...
In 2016, the Chinese international travel consumer finally looked vulnerable. In line with expectations from the start of that year outbound growth fell, with the rate of growth plunging from 13.8% Year-on-Year (YoY) from 2014 to 2015, down to an estimated 2.7%. A jumpy stock market, diminishing growth, a falling yuan, and a government focus on corruption all helped to dampen the market. However, 2017 is seeing the travel consumer return with a roar. Destinations from Europe to Japan to Vietnam to the polar regions are reporting big jumps in the number of arrivals and the desire to spend has returned as consumer confidence bounces back from falls in 2015 and the first half of 2016.
The story of prolific spending is changing, however. No longer is the Chinese outbound traveler primarily a shopping machine. Traditional shopping destination South Korea plunged in 2017 and across 2016 and 2017 the emphasis has shifted towards the experience. Tours and activities, accommodation and new, more adventurous destinations are benefitting from this trend.
The story isn’t just outside China as well, domestically the travel market continues to thrive and be just as mind-blowingly vast as the rest of China’s statistical repertoire. Our survey found that more than two thirds of respondents reported their last trip was made in China and the China National Tourism Administration that 4.44 billion domestic tourism trips were taken in China during 2016 (China Travel News, 2017a). Spending estimates for 2017 Chinese domestic travel run from around RMB4 trillion up to RMB 6 trillion. In just the Spring Festival holiday alone, 344 million domestic trips occurred.
Capturing this consumer’s booking can be challenging, however, particularly from the perspective of travel suppliers and Western companies.
We found the Chinese consumer is smartphone driven and app-happy, as opposed to the still desktop-driven West. The smartphone comfortably beats out desktop and laptops for research, with 60.3% using it as their primary research device, rising to 65.5% of 18-35s. Although smartphones are slightly less important for booking, they still beat out desktops and laptops, with apps the number one channel. At its most extreme, for the vacation rentals market we found that a 100% of our sample used an app. Part of this is down to the WeChat phenomenon, with the Tencent’s juggernaut beating even Facebook for time spent and monetization.
Whatever the device though, Online Travel Agencies (OTAs) are winning out. Both on the web and in apps and for accommodation and flights, they take more than 70% of digital bookings. At the forefront with popular apps are Qunar and Ctrip. This trend has even pushed the Chinese government to pressure the big airlines to try and capture more direct bookings.
For travel brands looking to attract the international Chinse consumer they need to move with this digital ecosystem, creating localized apps, tapping into Chinese social media, and building payment methods that can work with Alipay and WeChat Pay.
It is a unique market, reversing many of the norms and changing our entire industry. So, please read on and I hope that this report helps you to navigate this already formidable and rapidly expanding market.
Alex Hadwick
Head of Research, EyeforTravel Ltd
In 2016, the Chinese international travel consumer finally looked vulnerable. In line with expectations from the start of that year outbound growth fell, with the rate of growth plunging from 13.8% Year-on-Year (YoY) from 2014 to 2015, down to an estimated 2.7%. A jumpy stock market, diminishing growth, a falling yuan, and a government focus on corruption all helped to dampen the market. However, 2017 is seeing the travel consumer return with a roar. Destinations from Europe to Japan to Vietnam to the polar regions are reporting big jumps in the number of arrivals and the desire to spend has returned as consumer confidence bounces back from falls in 2015 and the first half of 2016.
The story of prolific spending is changing, however. No longer is the Chinese outbound traveler primarily a shopping machine. Traditional shopping destination South Korea plunged in 2017 and across 2016 and 2017 the emphasis has shifted towards the experience. Tours and activities, accommodation and new, more adventurous destinations are benefitting from this trend.
The story isn’t just outside China as well, domestically the travel market continues to thrive and be just as mind-blowingly vast as the rest of China’s statistical repertoire. Our survey found that more than two thirds of respondents reported their last trip was made in China and the China National Tourism Administration that 4.44 billion domestic tourism trips were taken in China during 2016 (China Travel News, 2017a). Spending estimates for 2017 Chinese domestic travel run from around RMB4 trillion up to RMB 6 trillion. In just the Spring Festival holiday alone, 344 million domestic trips occurred.
Capturing this consumer’s booking can be challenging, however, particularly from the perspective of travel suppliers and Western companies.
We found the Chinese consumer is smartphone driven and app-happy, as opposed to the still desktop-driven West. The smartphone comfortably beats out desktop and laptops for research, with 60.3% using it as their primary research device, rising to 65.5% of 18-35s. Although smartphones are slightly less important for booking, they still beat out desktops and laptops, with apps the number one channel. At its most extreme, for the vacation rentals market we found that a 100% of our sample used an app. Part of this is down to the WeChat phenomenon, with the Tencent’s juggernaut beating even Facebook for time spent and monetization.
Whatever the device though, Online Travel Agencies (OTAs) are winning out. Both on the web and in apps and for accommodation and flights, they take more than 70% of digital bookings. At the forefront with popular apps are Qunar and Ctrip. This trend has even pushed the Chinese government to pressure the big airlines to try and capture more direct bookings.
For travel brands looking to attract the international Chinse consumer they need to move with this digital ecosystem, creating localized apps, tapping into Chinese social media, and building payment methods that can work with Alipay and WeChat Pay.
It is a unique market, reversing many of the norms and changing our entire industry. So, please read on and I hope that this report helps you to navigate this already formidable and rapidly expanding market.
Alex Hadwick
Head of Research, EyeforTravel Ltd
Luxury tours and activities set to boom
When it comes to luxury travel, real capital is being converted into cultural capital as luxury travellers buy into the experience economy through unique tours and activities finds EyeforTravel’s The Global Luxury Travel Consumer report.
The tours and activities sector will be one of key beneficiaries from a booming luxury travel market as big-spending consumers put more of their disposable income into finding unique experiences according to the research.
At the very top of the market this is developing into ever more outlandish experiences, with Chinese luxury consumers developing an interest in polar exploration and space tourism becoming a real possibility.
The report notes that the demand for luxury experiences is driving luxury brands to create new products that fit into their clientele’s desire for unique experiences. Ritz-Carlton announced that it is building a series of three luxury cruise liners that are due to launch from 2019 and several hotels, such as the Wellesley London, the Four Seasons in the Maldives, and the Borgo Santo Pietro Tuscany, operate superyachts for their clientele and charge in the tens of thousands of dollars. Tour operator Abercrombie & Kent and hotel group Four Seasons have fitted out Boeing 757s for chartered flights and hotels have branched out into cruise travel.
The desire to create lasting experiences is pushing luxury consumers to more complex itineraries and so pushing them towards booking their tours and activities further out from the date of departure than the average traveller. Just 14% of luxury travellers surveyed in the report booking their vacation activities while on vacation compared to 35.8% among the rest of the survey. Instead, 54.8% of high-end consumers prefer to make bookings between one and four weeks before they depart versus 31.5% of non-luxury travellers. The kind of experience that is becoming the hallmark of the luxury traveller stands above the average traveller’s mass cultural activity and is therefore far more likely to be something that needs to be booked in advance.
However, the report notes that there is significant geographic variation in terms of the types of experiences luxury travellers are looking for. Whilst Chinese luxury consumers are looking towards more exoticism and adventure, in the case of Japan wealth and leisure time are overwhelmingly in the hands of older consumers. In this market adventure is less important and comfort and service are more emphasized, with domestic trips and cruises experiencing big growth in the country’s luxury travel market.
This detailed report looks at the state of the overall market currently and breaks down individual country markets, luxury consumer behaviors and spending patterns, and gives you the major trends to look out for.
Become a member of EyeforTravel On Demand now and access the full report, which includes:
The tours and activities sector will be one of key beneficiaries from a booming luxury travel market as big-spending consumers put more of their disposable income into finding unique experiences according to the research.
At the very top of the market this is developing into ever more outlandish experiences, with Chinese luxury consumers developing an interest in polar exploration and space tourism becoming a real possibility.
The report notes that the demand for luxury experiences is driving luxury brands to create new products that fit into their clientele’s desire for unique experiences. Ritz-Carlton announced that it is building a series of three luxury cruise liners that are due to launch from 2019 and several hotels, such as the Wellesley London, the Four Seasons in the Maldives, and the Borgo Santo Pietro Tuscany, operate superyachts for their clientele and charge in the tens of thousands of dollars. Tour operator Abercrombie & Kent and hotel group Four Seasons have fitted out Boeing 757s for chartered flights and hotels have branched out into cruise travel.
The desire to create lasting experiences is pushing luxury consumers to more complex itineraries and so pushing them towards booking their tours and activities further out from the date of departure than the average traveller. Just 14% of luxury travellers surveyed in the report booking their vacation activities while on vacation compared to 35.8% among the rest of the survey. Instead, 54.8% of high-end consumers prefer to make bookings between one and four weeks before they depart versus 31.5% of non-luxury travellers. The kind of experience that is becoming the hallmark of the luxury traveller stands above the average traveller’s mass cultural activity and is therefore far more likely to be something that needs to be booked in advance.
However, the report notes that there is significant geographic variation in terms of the types of experiences luxury travellers are looking for. Whilst Chinese luxury consumers are looking towards more exoticism and adventure, in the case of Japan wealth and leisure time are overwhelmingly in the hands of older consumers. In this market adventure is less important and comfort and service are more emphasized, with domestic trips and cruises experiencing big growth in the country’s luxury travel market.
This detailed report looks at the state of the overall market currently and breaks down individual country markets, luxury consumer behaviors and spending patterns, and gives you the major trends to look out for.
Become a member of EyeforTravel On Demand now and access the full report, which includes:
- Country analysis of the major luxury travel markets in Europe, North America, Asia-Pacific, and the Middle East, covering both developed and emerging economies.
- Unique proprietary data based on more than 2,000 luxury travel consumers.
- Behavioral analysis of luxury travellers, including lead times, device usage, booking patterns, and spending habits.
- Major trends and developments in the luxury travel market.
- Data taken and analysed from nearly 100 different sources.
Luxury travel market returns to high growth trend in 2017
Following a poor 2016 where global luxury travel spending growth slumped below recent trends, the sector is back on course in 2017 as wealth generation benefits from strong growth in key economies finds EyeforTravel’s The Global Luxury Travel Consumerreport.
The global luxury travel sector is back to strong growth in 2017, helped by stronger performances in key economies and soaring equities, following a disappointing 2016. Previously underperforming markets in Brazil, Canada and Russia have seen their luxury travel markets turn a corner in the last 12 months finds the report, whilst other major source markets of wealthy individuals have continued to expand.
The growth is global, with strong performances from key markets in North America, Europe and Asia-Pacific. Within this, the US and Japan, the two countries with the largest populations of dollar millionaires, are experiencing strong GDP, wealth and luxury travel spending growth, befitting both domestic and international travel. For the latter country, this has seen a long-term trend of declining outbound travel turn around in 2016 and 2017, with outbound trip growth accelerating out to +6.3% in the first half of 2017.
For luxury US travellers Western Europe is proving to be a big destination in 2017, with the UK experiencing a 25% growth in arrivals from the US. A similar theme can be found amongst luxury Chinese consumers, who still want to experience the cultural highlights of countries such as Frnace, Italy, Germany, Spain and the UK. The report notes that the Western European market is a star performer overall, as high arrivals growth from outside the region meets rapidly strengthening internal demand. The economies of France and Germany are growing at their strongest rates since 2011, Italy since 2010, and the Netherlands since 2007, and GDP growth is coinciding with soaring consumer confidence.
“We have seen several positive trends over 2017 for luxury travel, with broad-based economic growth globally, a weakening in the dollar, and the core luxury travel markets improving in outlook,” says Alex Hadwick, Head of Research at EyeforTravel. “For example, China underperformed in 2016, with capital outflows, government scrutiny of spending and instability in equities but 2017 has seen much better performance, with European and some Asian destinations seeing fantastic arrivals growth from the country. Another positive trend we are seeing is a diminishing concern from travellers in general and also luxury travellers about terrorism, with only very short term falls in arrivals following attacks in European destinations. Indeed the London luxury market barely seems to have taken a hit at all from these adverse events.”
Other underperforming markets in 2016 that are now in better shape in 2017 include Brazil, Canada and Russia. For both Brazil and Russia, difficult conditions helped domestic travel as their economies contracted but in late 2016 and out into 2017 outbound travel in both appears to have returned. Destinations recording growth in Russian premium bookings include the Caucasus, China, Thailand and Western Europe. For Brazil both ForwardKeys and the Brazilian Central Bank recorded returns to outbound growth in H1 2017.
The report notes that although equities have performed extremely well and boosted luxury consumer wealth and consequently travel demand in 2017, there are medium term risks from over-valuation. For example, US stocks are at valuations that have only been exceeded twice in 1929 and 1999.
This detailed report looks at the state of the overall market currently and breaks down individual country markets, luxury consumer behaviors and spending patterns, and gives you the major trends to look out for.
Become a member of EyeforTravel On Demand now and access the full report, which includes:
The global luxury travel sector is back to strong growth in 2017, helped by stronger performances in key economies and soaring equities, following a disappointing 2016. Previously underperforming markets in Brazil, Canada and Russia have seen their luxury travel markets turn a corner in the last 12 months finds the report, whilst other major source markets of wealthy individuals have continued to expand.
The growth is global, with strong performances from key markets in North America, Europe and Asia-Pacific. Within this, the US and Japan, the two countries with the largest populations of dollar millionaires, are experiencing strong GDP, wealth and luxury travel spending growth, befitting both domestic and international travel. For the latter country, this has seen a long-term trend of declining outbound travel turn around in 2016 and 2017, with outbound trip growth accelerating out to +6.3% in the first half of 2017.
For luxury US travellers Western Europe is proving to be a big destination in 2017, with the UK experiencing a 25% growth in arrivals from the US. A similar theme can be found amongst luxury Chinese consumers, who still want to experience the cultural highlights of countries such as Frnace, Italy, Germany, Spain and the UK. The report notes that the Western European market is a star performer overall, as high arrivals growth from outside the region meets rapidly strengthening internal demand. The economies of France and Germany are growing at their strongest rates since 2011, Italy since 2010, and the Netherlands since 2007, and GDP growth is coinciding with soaring consumer confidence.
“We have seen several positive trends over 2017 for luxury travel, with broad-based economic growth globally, a weakening in the dollar, and the core luxury travel markets improving in outlook,” says Alex Hadwick, Head of Research at EyeforTravel. “For example, China underperformed in 2016, with capital outflows, government scrutiny of spending and instability in equities but 2017 has seen much better performance, with European and some Asian destinations seeing fantastic arrivals growth from the country. Another positive trend we are seeing is a diminishing concern from travellers in general and also luxury travellers about terrorism, with only very short term falls in arrivals following attacks in European destinations. Indeed the London luxury market barely seems to have taken a hit at all from these adverse events.”
Other underperforming markets in 2016 that are now in better shape in 2017 include Brazil, Canada and Russia. For both Brazil and Russia, difficult conditions helped domestic travel as their economies contracted but in late 2016 and out into 2017 outbound travel in both appears to have returned. Destinations recording growth in Russian premium bookings include the Caucasus, China, Thailand and Western Europe. For Brazil both ForwardKeys and the Brazilian Central Bank recorded returns to outbound growth in H1 2017.
The report notes that although equities have performed extremely well and boosted luxury consumer wealth and consequently travel demand in 2017, there are medium term risks from over-valuation. For example, US stocks are at valuations that have only been exceeded twice in 1929 and 1999.
This detailed report looks at the state of the overall market currently and breaks down individual country markets, luxury consumer behaviors and spending patterns, and gives you the major trends to look out for.
Become a member of EyeforTravel On Demand now and access the full report, which includes:
- Country analysis of the major luxury travel markets in Europe, North America, Asia-Pacific, and the Middle East, covering both developed and emerging economies.
- Unique proprietary data based on more than 2,000 luxury travel consumers.
- Behavioral analysis of luxury travellers, including lead times, device usage, booking patterns, and spending habits.
- Major trends and developments in the luxury travel market.
- Data taken and analysed from nearly 100 different sources.
EyeforTravel Amsterdam have an attendee list for the digital and data travel elite that you need to see!
EyeforTravel have just released their attendee list for the EyeforTravel Data and Digital Summit in Amsterdam 2017 (November 29-30). Don’t miss your chance to join Europe’s largest digital and data travel conference.
The focus of this event is mobile, social media, data analytics, personalisation and tech innovation. With more travelers turning to the internet and mobile to get ideas, inspiration, and options for their trips. Mobile has made the journey more spontaneous with ‘on the go’ research tools.
Research shows that 85% of leisure travelers decide on activities only after having arrived at their destination. Making it crucial for travel brands to be able to connect and create bespoke offerings to their customers via social media platforms like Facebook and Instagram and more direct communications using customer profiles.
EyeforTravel are excited about this shift and have positioned their EyeForTravel Amsterdam (November 29-30) to focus on the digital and data big bang in travel. These event’s will bring together 250+ the best brands in travel to focus on how to develop data analytics, artificial intelligence, product development, revenue analytics, to drive loyalty and more personalized experiences. They are even offering a sneak peak of their attendee list 2 months before the event.
To shed light on who will be at the event, Leo Langford the lead researcher for the event said “We’re really excited to be welcoming back executives from Accor Hotels, NH Hotels, Eurail, The Travel Corporation, Heathrow Airport, Marriott, Lastminute.com, IBM, Vueling, Wyndham, Kiwi.com, Icelandic Air, Expedia, Finnair, Momondo, KAYAK and a lot more”
He went onto to say “We don’t usually release our delegate list this early but with over 2 months to go, we have over 170 people in, and thought we should share it, and give others a chance to book too!”
Click here to get the most up to date attendee list sent straight to you: http://events.eyefortravel.com/digital-strategies-travel-europe/attendees.php
Here are some of the key topics we will cover:
Learn more about who is attending our leading data and digital event for the travel space here: (Nov 29-30):
With exciting branding, exhibition and sponsorship opportunities still available, jump on now and network with travels best data and digital experts. Click here to learn more: http://events.eyefortravel.com/digital-strategies-travel-europe/sponsor-opportunities.php
Contact the team directly at – shreya@eyefortravel.com EyeforTravel 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 aim to provide you with industry focused news, events, reports, updates and information. EyeforTravel Limited is a registered company. The Company Registration number is 06286442. It is also registered in England & Wales. Registered office is 7-9 Fashion Street, London E1 6PX, United Kingdom.
The focus of this event is mobile, social media, data analytics, personalisation and tech innovation. With more travelers turning to the internet and mobile to get ideas, inspiration, and options for their trips. Mobile has made the journey more spontaneous with ‘on the go’ research tools.
Research shows that 85% of leisure travelers decide on activities only after having arrived at their destination. Making it crucial for travel brands to be able to connect and create bespoke offerings to their customers via social media platforms like Facebook and Instagram and more direct communications using customer profiles.
EyeforTravel are excited about this shift and have positioned their EyeForTravel Amsterdam (November 29-30) to focus on the digital and data big bang in travel. These event’s will bring together 250+ the best brands in travel to focus on how to develop data analytics, artificial intelligence, product development, revenue analytics, to drive loyalty and more personalized experiences. They are even offering a sneak peak of their attendee list 2 months before the event.
To shed light on who will be at the event, Leo Langford the lead researcher for the event said “We’re really excited to be welcoming back executives from Accor Hotels, NH Hotels, Eurail, The Travel Corporation, Heathrow Airport, Marriott, Lastminute.com, IBM, Vueling, Wyndham, Kiwi.com, Icelandic Air, Expedia, Finnair, Momondo, KAYAK and a lot more”
He went onto to say “We don’t usually release our delegate list this early but with over 2 months to go, we have over 170 people in, and thought we should share it, and give others a chance to book too!”
Click here to get the most up to date attendee list sent straight to you: http://events.eyefortravel.com/digital-strategies-travel-europe/attendees.php
Here are some of the key topics we will cover:
- · The Holistic Approach to Digital Strategy Drive Direct in a Mobile First World
- · Data Visualisation that makes your Revenues Boom
- · The Quest for Clean Data
- · Become the Modern Revenue Manager to Drive Lifetime Loyalty
- · Awaken your Brand DNA with Data and Digital Innovation
- · Democratising AI - Awaken the coder in everyone
Learn more about who is attending our leading data and digital event for the travel space here: (Nov 29-30):
With exciting branding, exhibition and sponsorship opportunities still available, jump on now and network with travels best data and digital experts. Click here to learn more: http://events.eyefortravel.com/digital-strategies-travel-europe/sponsor-opportunities.php
Contact the team directly at – shreya@eyefortravel.com EyeforTravel 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 aim to provide you with industry focused news, events, reports, updates and information. EyeforTravel Limited is a registered company. The Company Registration number is 06286442. It is also registered in England & Wales. Registered office is 7-9 Fashion Street, London E1 6PX, United Kingdom.
Luxury travel consumers love their smartphones
Luxury travel consumers are far more comfortable using their smartphones to book their flights and accommodation than ordinary travellers according to EyeforTravel’s The Global Luxury Travel Consumer report.
Luxury travellers are leading edge consumers when it comes to technology, making them more than twice as likely to book their accommodation through a smartphone finds EyeforTravel’s new report. The research, which took in more than 2,000 luxury consumers across three countries, uncovered that whilst desktops and laptops still remain the main booking route, with 46% of luxury consumers using these devices, 31.1% of luxury consumers booked their accommodation using a smartphone, versus 13.9% of ordinary travellers. A similar, but slightly less pronounced, pattern occurred in flight bookings, with 30.2% of luxury bookings heading through smartphones against 18.2% of the rest of the sample.
The trend marks out a difference in cross device behaviour between the two groups, as during the research phase both luxury and ordinary travellers use their smartphones as their primary research device at nearly the same rate – 35.8% to 32%. These findings suggest that luxury consumers are happier to continue their entire travel journey using a single device rather than switching across multiple devices as the journey progresses.
The report also finds that ordinary travellers are substantially more likely to use non-digital booking routes and also to use their own means of transport and stay with friends or relatives. 13.1% of the non-luxury respondents in the survey report booking their flights through a face-to-face travel agency, against 5.4% of luxury consumers.
“We are seeing a picture of technological sophistication,” says Alex Hadwick, Head of Research at EyeforTravel. “Luxury consumers can afford top of the range smartphones, which will help to make the booking process easier but these are also consumers who are regularly on the move and therefore need the convenience of a smartphone. We found in our research that luxury consumers travel at twice the rate of non-luxury travellers and have shorter lead times for booking accommodation and transport. This seems to fit with a more smartphone-centric outlook for their travel booking.”
This detailed report looks at the state of the overall market currently and breaks down individual country markets, luxury consumer behaviors and spending patterns, and gives you the major trends to look out for.
Become a member of EyeforTravel On Demand now and access the full report, which includes:
Luxury travellers are leading edge consumers when it comes to technology, making them more than twice as likely to book their accommodation through a smartphone finds EyeforTravel’s new report. The research, which took in more than 2,000 luxury consumers across three countries, uncovered that whilst desktops and laptops still remain the main booking route, with 46% of luxury consumers using these devices, 31.1% of luxury consumers booked their accommodation using a smartphone, versus 13.9% of ordinary travellers. A similar, but slightly less pronounced, pattern occurred in flight bookings, with 30.2% of luxury bookings heading through smartphones against 18.2% of the rest of the sample.
The trend marks out a difference in cross device behaviour between the two groups, as during the research phase both luxury and ordinary travellers use their smartphones as their primary research device at nearly the same rate – 35.8% to 32%. These findings suggest that luxury consumers are happier to continue their entire travel journey using a single device rather than switching across multiple devices as the journey progresses.
The report also finds that ordinary travellers are substantially more likely to use non-digital booking routes and also to use their own means of transport and stay with friends or relatives. 13.1% of the non-luxury respondents in the survey report booking their flights through a face-to-face travel agency, against 5.4% of luxury consumers.
“We are seeing a picture of technological sophistication,” says Alex Hadwick, Head of Research at EyeforTravel. “Luxury consumers can afford top of the range smartphones, which will help to make the booking process easier but these are also consumers who are regularly on the move and therefore need the convenience of a smartphone. We found in our research that luxury consumers travel at twice the rate of non-luxury travellers and have shorter lead times for booking accommodation and transport. This seems to fit with a more smartphone-centric outlook for their travel booking.”
This detailed report looks at the state of the overall market currently and breaks down individual country markets, luxury consumer behaviors and spending patterns, and gives you the major trends to look out for.
Become a member of EyeforTravel On Demand now and access the full report, which includes:
- Country analysis of the major luxury travel markets in Europe, North America, Asia-Pacific, and the Middle East, covering both developed and emerging economies.
- Unique proprietary data based on more than 2,000 luxury travel consumers.
- Behavioral analysis of luxury travellers, including lead times, device usage, booking patterns, and spending habits.
- Major trends and developments in the luxury travel market.
- Data taken and analysed from nearly 100 different sources.
Luxury travellers outspend the rest by over 600% and the gap is growing
Over the course of a year, luxury consumers spend over six times as much on travel than the average consumer and the trend is for the disparity to get even bigger finds EyeforTravel’s The Global Luxury Travel Consumer report.
Whilst the average traveller spends $1,690 per trip, luxury consumers on average lavish $5,365 per trip according to the report. The different levels of spending become even bigger over the course of a year as luxury consumers take double the trips per year at just over 5.6, meaning a per annum outlay of over $30,000, or six times the average traveller’s spend.
This gap is more likely to widen than diminish says the research, as wealth continues to accrue at the upper end of the income spectrum and luxury consumers prioritise experiential spending and put less emphasis on personal goods. The number of High Net Worth Individuals (HNWIs) globally is expected to comfortably grow by double digits each year well into the 2020s, adding millions of luxury consumers into the market.
The report found that luxury consumers in the report’s survey were also planning to take twice as many vacations on average, illustrating the continuation of current trends. A huge 16% of luxury travellers report planning 10 or more trips per year, compared to just 2.5% of the other consumers in the survey. A further quarter of the luxury travel sample plan to take between five and nine trips in the 12 months after the survey was taken, far above the 6.3% reported by lower income consumers.
These consumers are switching more of their discretionary spending into leisure travel, with developed economies leading this trend but transition occurring rapidly in emerging economies as wealth becomes more widespread. The change will affect luxury consumer behaviours as they book and once they travel. For example, the report notes that Chinese luxury consumers are shifting their spending away from shopping and towards activities and accommodation, with adventure and exploration increasing in importance as shopping falls.
Whilst high-end tours and activities should be one of the primary sectors to benefit given the importance they have to the travel experience, the changing emphasis of luxury traveller priorities means that hotels will need to think hard about how to appeal to these consumers. Luxury travellers ae now more focused on finding unique accommodation and so hotels will need to think about character and local interactions that can really add something to these consumers’ trips while still continuing to provide a high level of service.
“Our research suggests that despite the challenges, it pays to focus on the luxury traveller. For the rest of the market they are also worth keeping a close eye on not just because of their profligate spending but also because they are at the forefront of trends and leading-edge consumers that can help us figure out where the wider market will head in the future,” says Alex Hadwick, Head of Research at EyeforTravel. “The luxury traveller is at the forefront of a number of trends, including increasing the amount of disposable income they put towards experiential items and leading the charge for smartphone usage in the travel research and booking process. This, on top of their huge annual spend, means they are a critical segment to understand in the travel ecosystem.”
This detailed report looks at the state of the overall market currently and breaks down individual country markets, luxury consumer behaviors and spending patterns, and gives you the major trends to look out for.
Become a member of EyeforTravel On Demand now and access the full report, which includes:
Whilst the average traveller spends $1,690 per trip, luxury consumers on average lavish $5,365 per trip according to the report. The different levels of spending become even bigger over the course of a year as luxury consumers take double the trips per year at just over 5.6, meaning a per annum outlay of over $30,000, or six times the average traveller’s spend.
This gap is more likely to widen than diminish says the research, as wealth continues to accrue at the upper end of the income spectrum and luxury consumers prioritise experiential spending and put less emphasis on personal goods. The number of High Net Worth Individuals (HNWIs) globally is expected to comfortably grow by double digits each year well into the 2020s, adding millions of luxury consumers into the market.
The report found that luxury consumers in the report’s survey were also planning to take twice as many vacations on average, illustrating the continuation of current trends. A huge 16% of luxury travellers report planning 10 or more trips per year, compared to just 2.5% of the other consumers in the survey. A further quarter of the luxury travel sample plan to take between five and nine trips in the 12 months after the survey was taken, far above the 6.3% reported by lower income consumers.
These consumers are switching more of their discretionary spending into leisure travel, with developed economies leading this trend but transition occurring rapidly in emerging economies as wealth becomes more widespread. The change will affect luxury consumer behaviours as they book and once they travel. For example, the report notes that Chinese luxury consumers are shifting their spending away from shopping and towards activities and accommodation, with adventure and exploration increasing in importance as shopping falls.
Whilst high-end tours and activities should be one of the primary sectors to benefit given the importance they have to the travel experience, the changing emphasis of luxury traveller priorities means that hotels will need to think hard about how to appeal to these consumers. Luxury travellers ae now more focused on finding unique accommodation and so hotels will need to think about character and local interactions that can really add something to these consumers’ trips while still continuing to provide a high level of service.
“Our research suggests that despite the challenges, it pays to focus on the luxury traveller. For the rest of the market they are also worth keeping a close eye on not just because of their profligate spending but also because they are at the forefront of trends and leading-edge consumers that can help us figure out where the wider market will head in the future,” says Alex Hadwick, Head of Research at EyeforTravel. “The luxury traveller is at the forefront of a number of trends, including increasing the amount of disposable income they put towards experiential items and leading the charge for smartphone usage in the travel research and booking process. This, on top of their huge annual spend, means they are a critical segment to understand in the travel ecosystem.”
This detailed report looks at the state of the overall market currently and breaks down individual country markets, luxury consumer behaviors and spending patterns, and gives you the major trends to look out for.
Become a member of EyeforTravel On Demand now and access the full report, which includes:
- Country analysis of the major luxury travel markets in Europe, North America, Asia-Pacific, and the Middle East, covering both developed and emerging economies.
- Unique proprietary data based on more than 2,000 luxury travel consumers.
- Behavioral analysis of luxury travellers, including lead times, device usage, booking patterns, and spending habits.
- Major trends and developments in the luxury travel market.
- Data taken and analysed from nearly 100 different sources.
A call for press to attend EyeforTravel North America 2017
On October 19-20, over 350 senior travel executives from some of the biggest brands in travel will be meeting at the Mandalay Bay in Las Vegas at EyeforTravel North America 2017. EyeforTravel has released a limited number of passes exclusively for members of the press.
With attendees from brands such as Priceline, Lola, IHG, Marriott, Hilton, Expedia, Booking.com, Club Med, Carlson Wagonlit Travel, Trivago and many more – this is the perfect opportunity to find out from the decision makers themselves where the industry is headed and what the upcoming trends are before anybody else.
The event will be taking place at the Mandalay Bay over 2 days and will cover travel distribution, marketing, data, RM & Pricing as well as technology. On both days, the event will start with keynote presentations until the lunch break, after which the event will split into 2 tracks and attendees will be able to choose the sessions they would most benefit from.
Some of the keynotes at the event include:
· Prepare for the Next Wave of Disruption: What Will the Industry and Your Business Look Like In 10 Years’ Time?
· Fireside chat: The State of Travel with the Priceline Group· How is the Macroeconomic Landscape Impacting the Travel Industry? · Building Brand Loyalty in an Era of Abundant Choice· Personalisation to Drive Ancillary Sales, Customer Satisfaction and Loyalty· Creating a Complete Customer Experience Through Smart Partnerships· Fireside Presentation & Q&A - Delving into Rise of The Non-Traditional Accommodation Model· Poised for Digital Transformation: How Will AI Revolutionize Travel?· Virtual and Augmented Reality: Hype or Hit?· Connecting the Data Dots to Build and Create Personalized Interactions using Complete Customer Profiles· The All-Inclusive Hotel Experience - Creating and Enhancing an Authentic All-Inclusive Guest Experience· A Mobile-First Mindset: From Search and Inspiration to Traffic and Transactions
Some of the latest speakers announced include:
· Paul English, CEO, Lola · Todd Henrich, SVP – Corporate Development, Priceline Group · Noah Brodsky, Senior VP – Worldwide Loyalty & Engagement, Wyndham Hotels · Ben Bates, Commercial Excellence Manager, Booking.com· Michael Menis, SVP –Digital & Voice Channels, IHG · Michael Marino, Senior VP – Loyalty & Digital, Caesars Corporation · Michelle Woodley, Executive Vice President, Preferred Hotels and Resorts· Dan Christian, Chief Digital Officer, The Travel Corporation· Dr Sascha Meskendahl, Chief Revenue Officer, Blacklane · Jay Fluegel, Head of Product – Customer Care, Expedia · Parker Stanberry, Co-founder & CEO, Oasis · Cliff Johnson, Co-Founder & Chief Development Officer, Vacasa · Sam Macdonnell, Chief Technology Officer, Hotel Tonight· Michael Almeraris, Global Mobile Virtual Reality Partnerships & Strategy, Google· Kevin Froemming, EVP & Chief Marketing Officer, Playa Hotels & Resorts
To attend the event as press, please complete this form: https://goo.gl/forms/PIvDWR7Nu8VJD6eF2
For more information, please get in touch with:
Nikhil Vijayan
Marketing Manager
EyeforTravelnikhil@eyefortravel.com+44 (0) 207 375 7165
With attendees from brands such as Priceline, Lola, IHG, Marriott, Hilton, Expedia, Booking.com, Club Med, Carlson Wagonlit Travel, Trivago and many more – this is the perfect opportunity to find out from the decision makers themselves where the industry is headed and what the upcoming trends are before anybody else.
The event will be taking place at the Mandalay Bay over 2 days and will cover travel distribution, marketing, data, RM & Pricing as well as technology. On both days, the event will start with keynote presentations until the lunch break, after which the event will split into 2 tracks and attendees will be able to choose the sessions they would most benefit from.
Some of the keynotes at the event include:
· Prepare for the Next Wave of Disruption: What Will the Industry and Your Business Look Like In 10 Years’ Time?
· Fireside chat: The State of Travel with the Priceline Group· How is the Macroeconomic Landscape Impacting the Travel Industry? · Building Brand Loyalty in an Era of Abundant Choice· Personalisation to Drive Ancillary Sales, Customer Satisfaction and Loyalty· Creating a Complete Customer Experience Through Smart Partnerships· Fireside Presentation & Q&A - Delving into Rise of The Non-Traditional Accommodation Model· Poised for Digital Transformation: How Will AI Revolutionize Travel?· Virtual and Augmented Reality: Hype or Hit?· Connecting the Data Dots to Build and Create Personalized Interactions using Complete Customer Profiles· The All-Inclusive Hotel Experience - Creating and Enhancing an Authentic All-Inclusive Guest Experience· A Mobile-First Mindset: From Search and Inspiration to Traffic and Transactions
Some of the latest speakers announced include:
· Paul English, CEO, Lola · Todd Henrich, SVP – Corporate Development, Priceline Group · Noah Brodsky, Senior VP – Worldwide Loyalty & Engagement, Wyndham Hotels · Ben Bates, Commercial Excellence Manager, Booking.com· Michael Menis, SVP –Digital & Voice Channels, IHG · Michael Marino, Senior VP – Loyalty & Digital, Caesars Corporation · Michelle Woodley, Executive Vice President, Preferred Hotels and Resorts· Dan Christian, Chief Digital Officer, The Travel Corporation· Dr Sascha Meskendahl, Chief Revenue Officer, Blacklane · Jay Fluegel, Head of Product – Customer Care, Expedia · Parker Stanberry, Co-founder & CEO, Oasis · Cliff Johnson, Co-Founder & Chief Development Officer, Vacasa · Sam Macdonnell, Chief Technology Officer, Hotel Tonight· Michael Almeraris, Global Mobile Virtual Reality Partnerships & Strategy, Google· Kevin Froemming, EVP & Chief Marketing Officer, Playa Hotels & Resorts
To attend the event as press, please complete this form: https://goo.gl/forms/PIvDWR7Nu8VJD6eF2
For more information, please get in touch with:
Nikhil Vijayan
Marketing Manager
EyeforTravelnikhil@eyefortravel.com+44 (0) 207 375 7165
Turn Insight into Profit by Driving Innovation in Travel Data
Today personalized travel is the internet, machine learning and mobile devices!Data is the new oil of the information age. Organizations that can harness the power of data can enhance their customer experience, achieve a competitive advantage, improve conversion rates, segment more effectively, drive loyalty and develop unbeatable products. EyeforTravel are excited about this change and have positioned two EyeforTravel events to focus on just this. Our two summits – Smart Travel Data Europe (Amsterdam Nov 29-30) and Smart Travel Analytics North America (February 27-28, Miami) will allow you to turn new data legislations and technology into an advantage and convert your data into pure profit.Head of Research for EyeforTravel – Alex Hadwick had this to say “As travel brands tackle these issues, they do so with the aim of putting their customers first and trying to understand what makes them tick, and that trend is only going to accelerate.” He went on to say “More sophisticated systems, increasingly skilled teams, more investment and an exponentially increasing universe of data means that brands will be better placed to reach their customers with targeted products that match their expectations!”These event’s will bring together the best brands in travel to focus on how to develop data analytics, artificial intelligence, product development, revenue analytics, to drive loyalty and more personalized experiences for travellers. Take the chance to network with travel data decision makers from Accor, Airbnb, KAYAK, Hilton Hotels, Delta Airlines, Amazon, Lastminute.com Vueling Airlines, Marriot, Southwest Airlines, Wyndham Destination Networks, and more, join the events today. Pick the event that works for you!If Europe is your area of focus: http://events.eyefortravel.com/smart-travel-data-summit/(event location: Amsterdam)If USA is your area of focus: http://events.eyefortravel.com/smart-travel-data-summit-north-america/(event location: Miami)If you would like more information on attending contact Leo (Project Director) - leo@eyefortravel.comIf your company would like to take on some of the limited branding exhibition opportunities at these events, reach out to Shreya (Head of Partnerships and Sales) shreya@eyefortravel.com
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Why your next data hire should be a neural network
Neural networks are becoming more complex and powerful, creating a revolution in data analysis and making them indispensable to the travel and tourism industry according to EyeforTravel’s Does Deep Learning Hold the Answer? report.
Although Artificial intelligences (AI) are a long way from truly emulating the human brain and replacing your data analysts, they are taking their first steps and should definitely be a part of your data team. This is the conclusion of EyeforTravel’s new report into deep learning, which is free to download now.
The case for using neural network-powered deep learning techniques lies in the potential return on investment that they can provide. Not only can neural networks undertake complex analysis but they can also reduce workloads, freeing up data professionals to work on more demanding tasks. For example, the report notes that Stena Line’s deep learning program to understand price competition for its onboard products saves weeks of analyst labour, increases accuracy dramatically and all for a cost of roughly EUR15,000.
Not only can they help with some of the more mundane tasks and working through very large data sets but it is constantly growing in complexity and will soon be able to take more tasks on. “Instead of building very complex models to understand the parameters that influence revenue, you just feed the data into a system and let the system – thanks to a deep learning algorithm – learn what works,” says Marion Mesnage, Head of Innovation and Research at Amadeus IT. “There is no assumption on the model whatsoever. That’s very disruptive…but we believe it could equal or outperform what humans can achieve.”
It's not just data teams that deep learning can help, marketing teams also stand to benefit substantially from deep learning. Neural nets can learn huge amounts about what makes customers tick, such as optimal pricing points and the best creative as well as where to deploy this. The report notes that The Travel Corporation is using deep learning to track online sentiment and automatically adjust advertising to appropriate formats and destinations.
To find out more about deep learning download the free report now and see:
The report is part two of EyeforTravel’s How Will Artificial Intelligence Transform Travel? report series. You can find the first report, which studies chatbots in travel, by clicking here.
Although Artificial intelligences (AI) are a long way from truly emulating the human brain and replacing your data analysts, they are taking their first steps and should definitely be a part of your data team. This is the conclusion of EyeforTravel’s new report into deep learning, which is free to download now.
The case for using neural network-powered deep learning techniques lies in the potential return on investment that they can provide. Not only can neural networks undertake complex analysis but they can also reduce workloads, freeing up data professionals to work on more demanding tasks. For example, the report notes that Stena Line’s deep learning program to understand price competition for its onboard products saves weeks of analyst labour, increases accuracy dramatically and all for a cost of roughly EUR15,000.
Not only can they help with some of the more mundane tasks and working through very large data sets but it is constantly growing in complexity and will soon be able to take more tasks on. “Instead of building very complex models to understand the parameters that influence revenue, you just feed the data into a system and let the system – thanks to a deep learning algorithm – learn what works,” says Marion Mesnage, Head of Innovation and Research at Amadeus IT. “There is no assumption on the model whatsoever. That’s very disruptive…but we believe it could equal or outperform what humans can achieve.”
It's not just data teams that deep learning can help, marketing teams also stand to benefit substantially from deep learning. Neural nets can learn huge amounts about what makes customers tick, such as optimal pricing points and the best creative as well as where to deploy this. The report notes that The Travel Corporation is using deep learning to track online sentiment and automatically adjust advertising to appropriate formats and destinations.
To find out more about deep learning download the free report now and see:
- What brands such as Amadeus, Expedia, Stena Line, and The Travel Corporation are doing to harness deep learning.
- How neural nets have been developed and how they power deep learning.
- Where deep learning will transform the industry.
- How deep learning can save time and reduce costs.
- What the limits are to deep learning and how regulation might affect it.
The report is part two of EyeforTravel’s How Will Artificial Intelligence Transform Travel? report series. You can find the first report, which studies chatbots in travel, by clicking here.
How travel brands are using deep learning to get ahead
Artificial intelligences running deep learning programs are already helping travel brands understand pricing, improve the customer experience, reduce workloads and make marketing smarter according to EyeforTravel’s new Does Deep Learning Hold the Answer? report.
The report, which is free to download now, examines the role that deep learning can play in travel and finds that far from being a futuristic concept, the machine learning technique is already creating real-world return on investment for travel brands.
One of the most obvious areas where deep learning is being deployed is in the area of predictive pricing. The report notes several different brands that are using deep learning in the field of pricing but in different ways. Both technology company Amadeus and metasearch firm Amadeus are deploying deep learning to understand airline pricing and model it into the future. Amadeus aims to maximise prices and revenues from airline tickets, whereas Aviasales is approaching the challenge from the consumer perspective. They claim that they can predict air fares with a 5% error margin and are applying this to make recommendations to customers about when and with which airline to book.
Stena Line on the other hand has combined deep learning’s ability to recognise objects and its pricing strategy. Their challenge was to make sure they were offering the cheapest prices on board compared to what consumers could buy on land but not to undercut to such a degree they were losing revenue. To do this manually would have been exhausting and expensive as there are tens of thousands of products to monitor. Through machine learning, neural networks and image recognition software, deep learning can recognize products and their prices and present findings back to the team with a more than 90% accuracy rating.
To find out more about deep learning download the free report now and see:
The report is part two of EyeforTravel’s How Will Artificial Intelligence Transform Travel? report series. You can find the first report, which studies chatbots in travel, by clicking here.
The report, which is free to download now, examines the role that deep learning can play in travel and finds that far from being a futuristic concept, the machine learning technique is already creating real-world return on investment for travel brands.
One of the most obvious areas where deep learning is being deployed is in the area of predictive pricing. The report notes several different brands that are using deep learning in the field of pricing but in different ways. Both technology company Amadeus and metasearch firm Amadeus are deploying deep learning to understand airline pricing and model it into the future. Amadeus aims to maximise prices and revenues from airline tickets, whereas Aviasales is approaching the challenge from the consumer perspective. They claim that they can predict air fares with a 5% error margin and are applying this to make recommendations to customers about when and with which airline to book.
Stena Line on the other hand has combined deep learning’s ability to recognise objects and its pricing strategy. Their challenge was to make sure they were offering the cheapest prices on board compared to what consumers could buy on land but not to undercut to such a degree they were losing revenue. To do this manually would have been exhausting and expensive as there are tens of thousands of products to monitor. Through machine learning, neural networks and image recognition software, deep learning can recognize products and their prices and present findings back to the team with a more than 90% accuracy rating.
To find out more about deep learning download the free report now and see:
- What brands such as Amadeus, Expedia, Stena Line, and The Travel Corporation are doing to harness deep learning.
- How neural nets have been developed and how they power deep learning.
- Where deep learning will transform the industry.
- How deep learning can save time and reduce costs.
- What the limits are to deep learning and how regulation might affect it.
The report is part two of EyeforTravel’s How Will Artificial Intelligence Transform Travel? report series. You can find the first report, which studies chatbots in travel, by clicking here.
Can deep learning change travel and tourism?
As data becomes the difference between a growing brand and one in decline, EyeforTravel’s new Does Deep Learning Hold the Answers? report finds that deep learning can and is changing the travel landscape.
Travel could be one of the main beneficiaries of rapid advances in Artificial Intelligence (AI) learning techniques as struggles to utilise huge amounts of data in order to understand complex human behaviours. Key to this is deep learning according to the report, which is free to download now. This a method where neural networks organised in hierarchical layers evaluate data sets. Deep learning deliberately aims to emulate the way that human and animal brains interpret information and consequently is making huge strides.
Currently, the technology still is at an early stage and the neural nets that power deep learning are far simpler than biological counterparts, usually using layers of nodes that passes a decision onto the next layer of nodes once a value has been reached. Therefore, what it truly excels at is focusing on a single task, which is typically finding relationships and patterns in very large quantities of data.
“What we are doing now is artificial narrow intelligence, AI that’s specific to a certain task,” says Amer Mohammed, Head of Digital Innovation at Stena Line. “We need to come up with mathematical models that can actually understand the world, not just fake understand it.” In the meantime some of these tasks that deep learning is already being used for in travel include pricing, language processing, image recognition, consumer analysis, and market modelling.
In the future, AIs will be able to tackle multiple tasks and come closer to human abilities as rapid advancements are being constantly made at the bleeding-edge of machine learning. Already Google’s DeepMind division has been able to build a multi-tasking AI and the rate of advance is staggering.
However, there a major issues and bottlenecks still to conquer if neural networks genuinely want to get close to the capabilities of the human brain. One key issue is the data and power that deep learning requires. For a neural network to effectively learn it most often required and often a guiding hand when initially tackling the task. They also a greedy when it comes to IT requirements. Whereas the human brain runs on the equivalent of around 20 watts, the AI that beat the top Go player in the world required 50,000 times that. Russian metasearch company Aviasales notes in the report that “System resource is the only limit. Even our test library consumes a lot. Hence, we could be more productive by achieving [a] new level of computer performance.”
“The opportunities are enormous and already unveiling themselves,” says Alex Hadwick, Head of Research at EyeforTravel. “Almost everything in travel has a huge number of variables as trip itineraries are complex with multiple decision points, making deep learning especially suited to drawing conclusions from the masses of data. The other thing about deep learning is that we are training it to get better and better every time we add information, so in theory this could be a really powerful tool for personalization. There is the potential to conduct far larger scale and more variated testing and then to combine this information and refine at each stage through dep learning.”
“It’s definitely going to come with ethical challenges, however,” believes Hadwick. Neural networks can end up being black boxes due to their complexity and multiple layers of decision making. You can find yourself with an answer but not knowing how the AI arrived at it. This will run counter to European data regulations in the case of customer-facing decisions and data for starters. We can also end up programming in our own biases and ignore potential mistakes, so we need to understand and master this technology and ask where it best deployed. If we do though, the possibilities are vast.”
To find out more about deep learning download the free report now and see:
The report is part two of EyeforTravel’s How Will Artificial Intelligence Transform Travel? report series. You can find the first report, which studies chatbots in travel, by clicking here.
Travel could be one of the main beneficiaries of rapid advances in Artificial Intelligence (AI) learning techniques as struggles to utilise huge amounts of data in order to understand complex human behaviours. Key to this is deep learning according to the report, which is free to download now. This a method where neural networks organised in hierarchical layers evaluate data sets. Deep learning deliberately aims to emulate the way that human and animal brains interpret information and consequently is making huge strides.
Currently, the technology still is at an early stage and the neural nets that power deep learning are far simpler than biological counterparts, usually using layers of nodes that passes a decision onto the next layer of nodes once a value has been reached. Therefore, what it truly excels at is focusing on a single task, which is typically finding relationships and patterns in very large quantities of data.
“What we are doing now is artificial narrow intelligence, AI that’s specific to a certain task,” says Amer Mohammed, Head of Digital Innovation at Stena Line. “We need to come up with mathematical models that can actually understand the world, not just fake understand it.” In the meantime some of these tasks that deep learning is already being used for in travel include pricing, language processing, image recognition, consumer analysis, and market modelling.
In the future, AIs will be able to tackle multiple tasks and come closer to human abilities as rapid advancements are being constantly made at the bleeding-edge of machine learning. Already Google’s DeepMind division has been able to build a multi-tasking AI and the rate of advance is staggering.
However, there a major issues and bottlenecks still to conquer if neural networks genuinely want to get close to the capabilities of the human brain. One key issue is the data and power that deep learning requires. For a neural network to effectively learn it most often required and often a guiding hand when initially tackling the task. They also a greedy when it comes to IT requirements. Whereas the human brain runs on the equivalent of around 20 watts, the AI that beat the top Go player in the world required 50,000 times that. Russian metasearch company Aviasales notes in the report that “System resource is the only limit. Even our test library consumes a lot. Hence, we could be more productive by achieving [a] new level of computer performance.”
“The opportunities are enormous and already unveiling themselves,” says Alex Hadwick, Head of Research at EyeforTravel. “Almost everything in travel has a huge number of variables as trip itineraries are complex with multiple decision points, making deep learning especially suited to drawing conclusions from the masses of data. The other thing about deep learning is that we are training it to get better and better every time we add information, so in theory this could be a really powerful tool for personalization. There is the potential to conduct far larger scale and more variated testing and then to combine this information and refine at each stage through dep learning.”
“It’s definitely going to come with ethical challenges, however,” believes Hadwick. Neural networks can end up being black boxes due to their complexity and multiple layers of decision making. You can find yourself with an answer but not knowing how the AI arrived at it. This will run counter to European data regulations in the case of customer-facing decisions and data for starters. We can also end up programming in our own biases and ignore potential mistakes, so we need to understand and master this technology and ask where it best deployed. If we do though, the possibilities are vast.”
To find out more about deep learning download the free report now and see:
- What brands such as Amadeus, Expedia, Stena Line, and The Travel Corporation are doing to harness deep learning.
- How neural nets have been developed and how they power deep learning.
- Where deep learning will transform the industry.
- How deep learning can save time and reduce costs.
- What the limits are to deep learning and how regulation might affect it.
The report is part two of EyeforTravel’s How Will Artificial Intelligence Transform Travel? report series. You can find the first report, which studies chatbots in travel, by clicking here.
Start-ups are transforming the way people choose their vacation activities
Start-ups are jumping into the tours and activities scene and creating innovative new ways to connect consumers with inventory finds EyeforTravel’s new the Changing Face of Tours and Activities report.
A variety of start-ups have moved in to the tours and activities to capitalize on the fastest growing sector in travel, opening up new experiences for consumers and ways for them to purchase their vacation’s activities. EyeforTravel’s the Changing Face of Tours and Activities report, which is free to download now, has identified start-ups as key to understanding the development of the tours and activities market as they are innovating across the entire supply chain and broadening access to the sector.
Core to all of their businesses is the development of cheaper technology. Application Programming Interfaces (APIs) and cloud computing are allowing suppliers and vendors to sync up and distribute inventory, and start-ups are aiming to make this as easy as possible. Tours and activities suppliers can now independently upload their inventory to a variety of start-up services, such as Bokun or GetYourGuide, or they can work with other that provide them with templates to allow them sell online, such as TrekkSoft. These start-ups are then marketing tours and activities suppliers’ services across their own and thousands of third-party partners and interfacing directly with the suppliers’ reservation systems to make the process as smooth as possible.
The upshot of this is it is allowing the sector to be brought into the digital age and giving consumers access to tours and activities that just five years ago would have been impossible. Consumers can now both book far in advance online from centralised databases of inventory and also use their smartphones to make reservations as they travel. They are also far better armed with information, for example Arrivedo aims to create neighborhood guides and use these to link together tours and activities, hotels and consumers.
Erik Tengen, Co-founder, Oaky App believes one day we could see a single platform capable of handling all activity bookings. “Traditionally offline-oriented people are making the shift towards online. And because of the growth in API possibilities, we're likely to soon get a market where people book all their activities on one platform,” he says.
This is not only to the benefit of the consumer, who has more choice, more personalized packages, and ways to plan and pay, but also travel brands across all verticals. “Think about the following: without technology, a personalized tour desk could only be available in the biggest hotels. Now, with technology, virtual and personalized desks could be in the smartphone of any user when reaching any hotel lobby, despite the size of the hotel,” says Alonso Franco, CEO and Co-founder of Arrivedo. Whereas previously, huge resources would be needed to put in place a distribution system for this most diverse sector of the travel industry, now even the smallest players can jump in to tours and activities.
Not only have start-ups helped to digitalize inventory, but they are also now the power behind the throne to several of the internet’s largest online travel companies. For example, Bokun teamed up with Expedia Local Expert at the end of 2016 with the aim of streamlining the booking process for tours and activities. GetYourGuide has integrated with Booking.com and lists its tours inventory via KAYAK’s dedicated tours and activities product and has recently partnered with EasyJet to offer tours and activities direct to the airline’s customers. TourRadar has been working with Amadeus since 2015 and TrekkSoft works with Viator.
Tours and activities start-ups are therefore becoming a key piece of the travel industry and everyone should keep an eye on who becomes the next big thing.
This entirely free report from EyeforTravel can be downloaded by clicking here. The report investigates:
Also make sure to check out all of EyeforTravel’s free reports and white papers by clicking here.
A variety of start-ups have moved in to the tours and activities to capitalize on the fastest growing sector in travel, opening up new experiences for consumers and ways for them to purchase their vacation’s activities. EyeforTravel’s the Changing Face of Tours and Activities report, which is free to download now, has identified start-ups as key to understanding the development of the tours and activities market as they are innovating across the entire supply chain and broadening access to the sector.
Core to all of their businesses is the development of cheaper technology. Application Programming Interfaces (APIs) and cloud computing are allowing suppliers and vendors to sync up and distribute inventory, and start-ups are aiming to make this as easy as possible. Tours and activities suppliers can now independently upload their inventory to a variety of start-up services, such as Bokun or GetYourGuide, or they can work with other that provide them with templates to allow them sell online, such as TrekkSoft. These start-ups are then marketing tours and activities suppliers’ services across their own and thousands of third-party partners and interfacing directly with the suppliers’ reservation systems to make the process as smooth as possible.
The upshot of this is it is allowing the sector to be brought into the digital age and giving consumers access to tours and activities that just five years ago would have been impossible. Consumers can now both book far in advance online from centralised databases of inventory and also use their smartphones to make reservations as they travel. They are also far better armed with information, for example Arrivedo aims to create neighborhood guides and use these to link together tours and activities, hotels and consumers.
Erik Tengen, Co-founder, Oaky App believes one day we could see a single platform capable of handling all activity bookings. “Traditionally offline-oriented people are making the shift towards online. And because of the growth in API possibilities, we're likely to soon get a market where people book all their activities on one platform,” he says.
This is not only to the benefit of the consumer, who has more choice, more personalized packages, and ways to plan and pay, but also travel brands across all verticals. “Think about the following: without technology, a personalized tour desk could only be available in the biggest hotels. Now, with technology, virtual and personalized desks could be in the smartphone of any user when reaching any hotel lobby, despite the size of the hotel,” says Alonso Franco, CEO and Co-founder of Arrivedo. Whereas previously, huge resources would be needed to put in place a distribution system for this most diverse sector of the travel industry, now even the smallest players can jump in to tours and activities.
Not only have start-ups helped to digitalize inventory, but they are also now the power behind the throne to several of the internet’s largest online travel companies. For example, Bokun teamed up with Expedia Local Expert at the end of 2016 with the aim of streamlining the booking process for tours and activities. GetYourGuide has integrated with Booking.com and lists its tours inventory via KAYAK’s dedicated tours and activities product and has recently partnered with EasyJet to offer tours and activities direct to the airline’s customers. TourRadar has been working with Amadeus since 2015 and TrekkSoft works with Viator.
Tours and activities start-ups are therefore becoming a key piece of the travel industry and everyone should keep an eye on who becomes the next big thing.
This entirely free report from EyeforTravel can be downloaded by clicking here. The report investigates:
- The current state of the tours and activities market.
- The technical challenges of incorporating tours and activities into a digital travel product.
- New start-ups and disruptors.
- How OTAs, hotels, and airlines are including tours and activities.
- Technology and how it is shaping the future of this market.
Also make sure to check out all of EyeforTravel’s free reports and white papers by clicking here.
Why everyone in travel is getting excited about tours and activities
As the last major sector to be brought into the digital distribution ecosystem, there is now a rush to grow business in tours and activities says EyeforTravel’s new The Changing Face of Tours and Activities report.
From the big online travel players, to airlines, to hotels, to a host of start-ups, tours and activities are seeing huge interest and investment according to EyeforTravel’s report, which is free to download now. This is because advances in technology and platforms have opened up the market and all of the aforementioned players are eyeing the area as a major growth opportunity.
TripAdvisor, believes we are at a turning point in the tours and activities market. “It’s an exciting time to be in the attractions space – it’s entering a significant growth phase as it continues moving online. It’s TripAdvisor’s largest long-term growth opportunity outside of hotels,” says Laurel Greatix, Director of Communications. Indeed, the report notes that the Compound Annual Growth Rate (CAGR) for the company’s hotel revenue from 2013 to 2016 was 10% but its non-hotel revenue grew 85% a year.
Key to tapping into the growth will be mastering technologies, principally mobile and Application Programming Interfaces (APIs). Tours and activities booking engine GetYourGuide has seen a phenomenal shift towards mobile bookings. “Only four years ago, less than 5% of our customers booked tours and activities via mobile devices. This year we expect more than 50% of bookings to be mobile driven,” says Johannes Reck, the company’s CEO. Smartphone access to tours and activities is critical, as around half of consumers continue to book during the vacation itself according to EyeforTravel research, and consumers are getting better and cheaper access to data as they travel.
APIs are the second main technology transforming the space as they allow a much wider variety of brands to access inventory and offer this to their customers. In the case of tours and activities these are typically, response-request systems that allow developers to access inventory and present it to end users through incorporating HTML code. The ease of integration means many more players across the industry can sell tours and activities direct to the consumer. There are now more than 50 APIs that can be used to access torus and activities inventory, including Viator, Expedia, Musement, Trip.com, Rezdy, BeMyGuest, mTrip, Trekksoft, G Adventures, GetYourGuide and TourCMS to name just a few.
This is creating an exciting mix of new and established companies rushing into the space and expanding consumer access to tours and activities, which will push the sector to become a major growth engine in travel and tourism.
This entirely free report from EyeforTravel can be downloaded by clicking here. The report investigates:
Also make sure to check out all of EyeforTravel’s free reports and white papers by clicking here.
From the big online travel players, to airlines, to hotels, to a host of start-ups, tours and activities are seeing huge interest and investment according to EyeforTravel’s report, which is free to download now. This is because advances in technology and platforms have opened up the market and all of the aforementioned players are eyeing the area as a major growth opportunity.
TripAdvisor, believes we are at a turning point in the tours and activities market. “It’s an exciting time to be in the attractions space – it’s entering a significant growth phase as it continues moving online. It’s TripAdvisor’s largest long-term growth opportunity outside of hotels,” says Laurel Greatix, Director of Communications. Indeed, the report notes that the Compound Annual Growth Rate (CAGR) for the company’s hotel revenue from 2013 to 2016 was 10% but its non-hotel revenue grew 85% a year.
Key to tapping into the growth will be mastering technologies, principally mobile and Application Programming Interfaces (APIs). Tours and activities booking engine GetYourGuide has seen a phenomenal shift towards mobile bookings. “Only four years ago, less than 5% of our customers booked tours and activities via mobile devices. This year we expect more than 50% of bookings to be mobile driven,” says Johannes Reck, the company’s CEO. Smartphone access to tours and activities is critical, as around half of consumers continue to book during the vacation itself according to EyeforTravel research, and consumers are getting better and cheaper access to data as they travel.
APIs are the second main technology transforming the space as they allow a much wider variety of brands to access inventory and offer this to their customers. In the case of tours and activities these are typically, response-request systems that allow developers to access inventory and present it to end users through incorporating HTML code. The ease of integration means many more players across the industry can sell tours and activities direct to the consumer. There are now more than 50 APIs that can be used to access torus and activities inventory, including Viator, Expedia, Musement, Trip.com, Rezdy, BeMyGuest, mTrip, Trekksoft, G Adventures, GetYourGuide and TourCMS to name just a few.
This is creating an exciting mix of new and established companies rushing into the space and expanding consumer access to tours and activities, which will push the sector to become a major growth engine in travel and tourism.
This entirely free report from EyeforTravel can be downloaded by clicking here. The report investigates:
- The current state of the tours and activities market.
- The technical challenges of incorporating tours and activities into a digital travel product.
- New start-ups and disruptors.
- How OTAs, hotels, and airlines are including tours and activities.
- Technology and how it is shaping the future of this market.
Also make sure to check out all of EyeforTravel’s free reports and white papers by clicking here.
Tours and activities market powering ahead
The tours and activities market is experiencing a major boom, according to EyeforTravel’s new The Changing Face of Tours and Activities report.
The report, which is free to download now, finds that tours and activities providers are experiencing growth rates of between 9% and 30% as the sector benefits from a growing proportion of the consumer’s spending power, inward investment, and increasing connectivity. This likely makes it the fastest growing sector in the travel industry.
Tourico Holidays has seen a 20% increase in tours and activities bookings in 2017 compared to 2016 levels. Steve Skidgel, Executive Vice President of Operations and Head of Activities at Tourico, says the amount of spending per trip has definitely increased with consumer interest in niche services, such as Segway tours, cooking tours, zip-lining, four-wheeling to give a few examples, leading the growth. Stefano Zeni, Head of Commercial Management & Destination Services at GTA, believes the market will grow by up to 9% over the next five years and Johannes Reck, CEO and Co-founder of online booking engine GetYourGuide, estimates that the sector is expanding at a rate of 10% each year.
In particular, the market is seeing particularly strong growth at the top end as big-spending travellers look to put more of their disposable income into unique experiences. Christian Wolters, Managing Director of TourRadar, which sees an average spend of USD1,500 to USD2,000 per tour per person, is seeing growth of as much as 30% year on year.
The sector, which is already the third largest in travel after accommodation and air is set to grow in importance as a wide variety of different players across the travel space look to move in and make it more available to online travel shoppers. Currently the market is worth around $250 billion a year according to EyeforTravel and accounts for roughly of 10% of travellers’ vacation spend. Both of these figures are sure to expand dramatically over the next five years as consumers focus further on experiences and a growing number of different actors from across the travel space move into the sector.
This entirely free report from EyeforTravel can be downloaded by clicking here. The report investigates:
• The current state of the tours and activities market.
• The technical challenges of incorporating tours and activities into a digital travel product.
• New start-ups and disruptors.
• How OTAs, hotels, and airlines are including tours and activities.
• Technology and how it is shaping the future of this market.
Also make sure to check out all of EyeforTravel’s free reports and white papers by clicking here.
The report, which is free to download now, finds that tours and activities providers are experiencing growth rates of between 9% and 30% as the sector benefits from a growing proportion of the consumer’s spending power, inward investment, and increasing connectivity. This likely makes it the fastest growing sector in the travel industry.
Tourico Holidays has seen a 20% increase in tours and activities bookings in 2017 compared to 2016 levels. Steve Skidgel, Executive Vice President of Operations and Head of Activities at Tourico, says the amount of spending per trip has definitely increased with consumer interest in niche services, such as Segway tours, cooking tours, zip-lining, four-wheeling to give a few examples, leading the growth. Stefano Zeni, Head of Commercial Management & Destination Services at GTA, believes the market will grow by up to 9% over the next five years and Johannes Reck, CEO and Co-founder of online booking engine GetYourGuide, estimates that the sector is expanding at a rate of 10% each year.
In particular, the market is seeing particularly strong growth at the top end as big-spending travellers look to put more of their disposable income into unique experiences. Christian Wolters, Managing Director of TourRadar, which sees an average spend of USD1,500 to USD2,000 per tour per person, is seeing growth of as much as 30% year on year.
The sector, which is already the third largest in travel after accommodation and air is set to grow in importance as a wide variety of different players across the travel space look to move in and make it more available to online travel shoppers. Currently the market is worth around $250 billion a year according to EyeforTravel and accounts for roughly of 10% of travellers’ vacation spend. Both of these figures are sure to expand dramatically over the next five years as consumers focus further on experiences and a growing number of different actors from across the travel space move into the sector.
This entirely free report from EyeforTravel can be downloaded by clicking here. The report investigates:
• The current state of the tours and activities market.
• The technical challenges of incorporating tours and activities into a digital travel product.
• New start-ups and disruptors.
• How OTAs, hotels, and airlines are including tours and activities.
• Technology and how it is shaping the future of this market.
Also make sure to check out all of EyeforTravel’s free reports and white papers by clicking here.
Revenue management to become profit management finds report
Revenue management is changing to become a more all-encompassing discipline according to EyeforTravel’s new Aggregating DataStreams for More Effective Revenue Management report, with 71% of managers believing that the discipline should be recognized as profit management.
The report, which is free to download now, notes that a focus on profit will be key in the years to come, with the industry moving emphasis away from the traditional measures of success of Revenue Per Available Room (RevPAR) and Total Revenue Per Available Room (TRevPAR). Instead, the industry will look at guests in the round and consider the total profitability each can bring and aim to maximize this. The key metric the industry will use in the future Gross Operating Profit Per Available Room (GOPPAR) according to the report, which also notes that Cornell University found GOPPAR is now considered the most important benchmark for the future.
Therefore, revenue managers will need to consider all revenue streams and also have a better understanding and inclusion of cost factors than they have in the past. Alongside traditional operating costs of the hotel, revenue managers will need to calculate and include their distribution costs, which the report also found to be a key area of concern for revenue managers.
In order to achieve this revenue managers will need to increase their skillsets and also obtain better technology according to the report. It found that 71% of revenue managers felt that they didn’t yet have the tools to do their jobs effectively, making technology investment a major area for scrutiny in the next five years.
Many of those featured in the report noted technology and automation is needed so that they could free up time to be spent on more important tasks, moving away from data collection and setting restrictions to working on overall strategy, coordination with other departments and guest experiences. This latter element is noted as being key in the report, particularly as guest reviews can have a direct effect on the property’s profitability.
Click hereto download the research now and get the full report, including:
The report, which is free to download now, notes that a focus on profit will be key in the years to come, with the industry moving emphasis away from the traditional measures of success of Revenue Per Available Room (RevPAR) and Total Revenue Per Available Room (TRevPAR). Instead, the industry will look at guests in the round and consider the total profitability each can bring and aim to maximize this. The key metric the industry will use in the future Gross Operating Profit Per Available Room (GOPPAR) according to the report, which also notes that Cornell University found GOPPAR is now considered the most important benchmark for the future.
Therefore, revenue managers will need to consider all revenue streams and also have a better understanding and inclusion of cost factors than they have in the past. Alongside traditional operating costs of the hotel, revenue managers will need to calculate and include their distribution costs, which the report also found to be a key area of concern for revenue managers.
In order to achieve this revenue managers will need to increase their skillsets and also obtain better technology according to the report. It found that 71% of revenue managers felt that they didn’t yet have the tools to do their jobs effectively, making technology investment a major area for scrutiny in the next five years.
Many of those featured in the report noted technology and automation is needed so that they could free up time to be spent on more important tasks, moving away from data collection and setting restrictions to working on overall strategy, coordination with other departments and guest experiences. This latter element is noted as being key in the report, particularly as guest reviews can have a direct effect on the property’s profitability.
Click hereto download the research now and get the full report, including:
- The effect of competitors on pricing, how to account for them and what strategies to take to get a competitive edge.
- Understanding and constructing predictive analytics.
- Understanding the costs of a business’s channel mix and how to win direct bookings.
- The state of the industry’s approach to ancillary revenues.
- The key metrics every revenue manager should be working toward.
- The future of a revenue manager’s role and the skills they will require.
Hotels make strides measuring ancillary revenues
Measurement of ancillary revenue streams is up across the board according to the new Aggregating Data Streams for More Effective Revenue Management report from EyeforTravel, which is free to download now.
As part of the report revenue managers were asked in both 2014 and 2017 “which of the following ancillary revenues can your revenue management system account for?” The findings show that in every single ancillary stream category measurement has risen and the number who reported that their system could not account for any ancillary revenues fell from 22.8% to 16.7%.
In 2014, food and beverage was the most measured type of ancillary revenue but that has now been overtaken by room and service upgrades, at 43.8% of respondents, and Meetings, Incentives, Conferences & Exhibitions (MICE) at 45.8%. In both categories the percentage of systems measuring revenues increased by more than 10%. Even more dramatically, the measurement of tours, experiences and packages more than doubled, pointing to this revenue stream being recognized by hotel management as an important revenue stream and service for customers.
Overall, every revenue stream was now being measured by revenue management systems to a greater degree than in 2014. The percentage of managers who reported that their system could not account for any of the revenue streams we asked about also fell from 22.8% to 16.7% of respondents, demonstrating substantial progress in monitoring and quantifying ancillary revenues.
However, there was no type of ancillary reported as being measured by more than 50% of respondents, pointing to there still being some way to go.
“It is encouraging that progress is being made but we would probably have expected it to be slightly faster than what we have found,” said Alex Hadwick, Head of Research at EyeforTravel. “We also asked revenue managers whether they felt they had the tools to do the job effectively and 71% said they did not, so it seems there are still technical and investment roadblocks. Removing these will be vital to hotels achieving their full potential revenue potential."
Click here to download the research now and get the full report, including:
As part of the report revenue managers were asked in both 2014 and 2017 “which of the following ancillary revenues can your revenue management system account for?” The findings show that in every single ancillary stream category measurement has risen and the number who reported that their system could not account for any ancillary revenues fell from 22.8% to 16.7%.
In 2014, food and beverage was the most measured type of ancillary revenue but that has now been overtaken by room and service upgrades, at 43.8% of respondents, and Meetings, Incentives, Conferences & Exhibitions (MICE) at 45.8%. In both categories the percentage of systems measuring revenues increased by more than 10%. Even more dramatically, the measurement of tours, experiences and packages more than doubled, pointing to this revenue stream being recognized by hotel management as an important revenue stream and service for customers.
Overall, every revenue stream was now being measured by revenue management systems to a greater degree than in 2014. The percentage of managers who reported that their system could not account for any of the revenue streams we asked about also fell from 22.8% to 16.7% of respondents, demonstrating substantial progress in monitoring and quantifying ancillary revenues.
However, there was no type of ancillary reported as being measured by more than 50% of respondents, pointing to there still being some way to go.
“It is encouraging that progress is being made but we would probably have expected it to be slightly faster than what we have found,” said Alex Hadwick, Head of Research at EyeforTravel. “We also asked revenue managers whether they felt they had the tools to do the job effectively and 71% said they did not, so it seems there are still technical and investment roadblocks. Removing these will be vital to hotels achieving their full potential revenue potential."
Click here to download the research now and get the full report, including:
- The effect of competitors on pricing, how to account for them and what strategies to take to get a competitive edge.
- Understanding and constructing predictive analytics.
- Understanding the costs of a business’s channel mix and how to win direct bookings.
- The state of the industry’s approach to ancillary revenues.
- The key metrics every revenue manager should be working toward.
- The future of a revenue manager’s role and the skills they will require.