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The future of travel distribution · best of online and offline environments. Remember this? Our...
Transcript of The future of travel distribution · best of online and offline environments. Remember this? Our...
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The future of travel distribution
Simon Ferguson
VP & Managing Director Northern Europe
Travelport
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1902, the US patent office
recommended it be shut down…
An opening thought…..
...Because it didn’t believe there was anything left to invent!
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None of these companies existed 12 years ago
Nothing left to invent…
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By 2017
The need to travelcontinues to
Global leisure
travel
3% growth
airlines predict nearly
annually
Global business
travel
6% growth
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During the next 20 years, nearly half of the
world’s air traffic growth will be driven by
travel to, from or within Asia
Changing horizons
Over 25% of global air tickets on
a low cost carrier
Global hotel growth
driven by emerging markets
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During the next 20 years, nearly
half of the world’s air traffic
growth will be driven by travel
to, from or within Asia
Changing horizons
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Source: CAPA, Travelport Internal Model
European fleet expansion driven by
LCCs
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Hotel landscape continues to fragment
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Growth of private rentals
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Travellers want a unique experience…
Demand grows for adventurous and personalized travel, attuned to local culture driving niche travel
72% would rather spend money on experiences,
than on things
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Digital is the top source of travel inspiration
65% of leisure travellers are inspired by online
sources, most via social, video sites and search
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…and a hyper-PERSONAL service
56% are comfortable with companies using their
data if it makes shopping easier
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Social media ranks second to friends and
family as source of travel ideas
Facebook/Deloitte
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76% of social media users have a dream trip list, but only 8% have been everywhere on the list Source: Facebook /Deloitte
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65% of over 65s have participated in social media
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Generational shift
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“The generation that likes to be alone…..together”
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Travel experiences built around a new
generation of travellers
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Mobile-enabled travel experience
Travellers are increasingly multi-
device users and expect seamless
integration between platforms
55% of US business travellers
shop via smartphones
Mobile to overtake
desktop usage in
Europe 2016
Source: PhocuswrightTravel Technology and US Business Traveller
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Inauguration of Pope
Benedict XVI…..21
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Inauguration of
Pope FrancisProduced By Market Strategy22
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Travel bookings on mobile
device by 201720%
of mobile hotel bookings
happen within 24 hours
of a stay60%
of travelers use smartphones
and tablets when traveling75%
Mobile is now a key element of the entire
customer experience
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Messaging Apps
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Conversational commerce
WeChat- over 450 million users, 70 million outside China
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“Uber accounts for 50% of all
taxi expenses submitted.”
Certify
Consumerisation of business travel
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– 27
1. Safety & security
2. Cost control
3. Traveller satisfaction and experience
4. Growing online adoption
5. End-to-end travel
6. Compliance to travel policy
7. Mobile strategy
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Personalisation- Hotel multi-brand strategy
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73% of airlines intend to have a customer relationship app by 2017
64% intend to personalize the trip via mobile app
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$13.93 per passenger
estimated ancillary
revenues earned in 2015
Ancillaries a key driver for airline/hotel financials
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Online travel booking SLOWING
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Agents and Tour operators bookings
still outweigh Supplier direct
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The future of retail
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New-breed travel retail
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Next- generation travel retailers will combine the
best of online and offline environments
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Remember this?
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Our Vision
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Redefining the air
experience – from black
and white to colour
Travelport Merchandising Platform
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A new way of displaying air content
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Fully interactive seat maps
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Rich Content & Branding – live today with LufthansaRich Content & Branding – live today with Lufthansa
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f
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Approximate room nights sold, million 2014
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Chain hotels
Independent
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Parking, attractions & transfers
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Next generation interfaces
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dataLO55pr3v3n7ion7rav3LPOR7
Next generation interfaces
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dataLO55pr3v3n7ion7rav3LPOR7Next generation interfaces
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Open Platform
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Full majority ownership
of eNett
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Incubator programme
Creating the next
generation of
disruptive
innovation
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Schone neue (Digitale) Welt?
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Schone neue OMNI-CHANNEL Welt!
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Leading Airline Merchandising
Next generation selling interfaces
Unrivalled travel content
Leading Mobile Commerce & Payment capability
Investment in AUSTRIA
Investment in leading Global Travel Commerce
Platform
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The best way to predict the future is to INVENT it……(William Gibson)
Let’s RE-INVENT the future together…..
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