The Weekly Eye: Heat is on, Momondo on meta…and more
July 10 – July 16: Hot stuff, Momondo on meta-search, Big bookings via mobile, marketing moves and more…our pick of the week’s stories
Scorched!
Scorching weather across the UK is hurting companies like TUI Travel, Thomas Cook, as well as low-cost airlines easyJet and Ryanair whose business models are sensitive to late bookings. OTAs have also seen sales fall as much as 20%. The slump comes as Britons have decided to stay at home to enjoy – or complain about – an unusually hot and long spell of good weather. Companies were feeling the heat amid talk that the scorching weather across Britain could hurt late foreign holiday bookings. Steve Endacott, chief executive of On Holiday group has been quoted on Travel Weekly saying the heatwave has had as big an impact on travel as the Icelandic Ash cloud crisis of 2010.
In an exclusive guest article, Hugo Burge, an investor in and chief executive of the Momondo Group, shares insights into how the increasingly influential channel of meta-search is coming of age. In an article packed with detail, Burge takes a look at the history of meta-search and some of the challenges the industry has faced on the road to the mega-deals involving Kayak and Trivago. Finally he raises several pertinent questions. With meta becoming mainstream and an exceptional business model, for example, how do meta competitors differentiate? Read the full story on EyeforTravel.com.
Big booking via mobile
If you thought mobile users wouldn’t book a big-ticket item, think again! Private jet booking service, PrivateFly has announced its biggest value booking to date made via its iPhone app. The booking by a Saudi Arabian client was for a multi-leg business trip to Europe. At $500,000 for the booking, the Boeing Business Jet hired includes an office, boardroom, lounge, VIP bedroom, and two bathrooms. PrivateFly, the first of its kind to launch a private jet pricing app in early 2010, provides price comparison and booking services for global private jet hire. The company claims its investment in apps and other new technologies is paying off. The company’s CEO says 6% of sales are now originating from the app and this is growing fast. It has seen have seen over 100,000 downloads globally since we launched our first generation iPhone app.
Solo no more
Is this a sharing step too far? San Francisco based Easynest.com is coming to the rescue of solo travellers by giving them an opportunity to save money by splitting the cost of a room with a stranger. Users are invited to set up a website indicating their intended destinations and travel dates. They then wait for somebody who has already booked a hotel room to contact them to see if they wish to share a double. Users can check profiles and message through the website before agreeing to share a room. Once they’ve agreed, the host must be paid directly by the other traveller. Hosts wanting to attract a guest are advised to ‘build a great profile’ and reply to any messages received in a timely fashion. An upmarket version of the hostel perhaps?
Breaking new barriers in targeted advertising
By analysing how travellers are interacting across multiple sessions, sites and devices, marketers can better understand how to approach their customers, writes Ritesh Gupta on EyeforTravel.com this week. For marketing professionals timing and relevance are two key words as they look to understand and intelligently fine-tune their advertising strategy. Knowing where and when to place an advert as well as ensuring its relevance is key. In this article we hear insights from Mohamed Hussein, regional director, Internet Marketing – MEA, Fairmont Hotels & Resorts, who points out that the travel industry has been striving not only to understand the consumer during the research and decision-making process, but also to influence behaviour. We also hear from Matthew Crummack, president at lastminute.com who explains how OTAs can build their position in the areas of travel planning and booking a journey. Finally Rick Mulia, VP Media and Advertising Solutions at travel search engine Wego reveals his top do’s and don’t for executing mobile ad campaigns.
Summing up the stats
World Air Transport Statistics (WATS) may not sound like something you want to read on a summer holiday but the numbers within this 57th edition WATS yearbook of the International Air Transport Association are worth a look for the airline industry. It is clearly a developing world story with emerging markets continuing to drive global demand: 65% of the growth in passenger numbers on international services in 2012 occurred on markets linked to emerging markets. Interestingly those in Asia-Pacific region carried the most passengers (947.9 million) followed by North America (808.1 million), Europe (780.6 million), Latin America (226.5 million), Middle East (144.1 million) and Africa (69.8 million) followed. The top three city-pairs based on passengers carried on international routes were all within the Far East: Hong Kong-Taipei (5.5 million), Seoul-Tokyo (3.6 million) and Kuala Lumpur-Singapore (3.4 million). Air transport continues to be a critical component of global economy supporting 57 million jobs and $2.2 trillion in economic activity.
Travelport goes East to Africa
In recent months, there has been growing interest in doing business in Africa. Now Travelport, a distribution services and e-commerce provider for the global travel industry, has announced investment plans for east Africa. This follows recent research from Euromonitor International, which finds GDP growth in east Africa is set to peak at 7% by 2017, making it the fastest growing regional economy in Africa. Subsequent also indicates that the tourism industry in sub-Saharan Africa continues to develop fast, with a 4.7% increase in arrivals in 2012 – that’s higher than the global average of 4.3% and second only to Asia Pacific at 5.1%. By 2017, the number of tourists travelling to sub-Saharan Africa is expected to reach 42.6 million.
Abu Dhabi ups its digital game
Having reached a quarter of a million Facebook fans this month – a 170% increased compared to January 2013 - it seems Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi) is sold on the benefits of social. The body also has 60,000 Twitter followers, up 90% on the past six months. It has now added two new social media initiatives to its VisitAbuDhabi.ae online destination resource. A new Instagram account invites visitors and residents to share their best Abu Dhabi photos, while a Facebook ‘Discover Abu Dhabi’ App gives users in-depth content on the destination’s happenings.The Visit Abu Dhabi Instagram account is the destination’s first official digital channel with 100% user-generated content.