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Archives for April 2009

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Research indicates mobile could influence travel distribution as much as the Web

Right now, the online travel market is the only travel market showing positive growth. Players unheard of before the internet dominate travel sales. Not just online travel agents like Expedia and lastminute.com, but also suppliers such as Ryanair and easyJet, which quickly understood the potential, invested heavily in pushing sales through the online channel and cleaned up.

Now the mobile channel is starting to show similar disruptive tendencies. According to a recent EyeforTravel Research survey, 74% of travel companies see “Mobile” becoming an increasingly important element of their online/digital strategies. It will be interesting to see how early adopters fare this year, which companies will make serious money first, and how they’ll do it.

Expedia is already selling direct via smartphones and taking sizeable bookings. Marriott too is reporting great ROI on its mobile investments, and previously unheard of companies such as Rearden Commerce are doing amazing things with mobile that could once again throw the partnerships and methods you use to sell your product into complete turmoil.

Outside of the US, theJet Airways JetWallet application allows consumers to book, pay, check in and alter their itinerary directly from their mobiles. Both Lufthansa and Sixt have well established mobile portals allowing bookings and cancellations. Lufthansa in addition have reported over 50,000 customers a month using their mobile boarding pass service.

So how do you go about initiating a mobile strategy for your travel company? Is it all about sales? And what investment do you need to make now to ensure that you are maximising your presence in this vital new marketplace?

To help all travel companies get to grips with the issues and start formulating a strong and profitable mobile strategy, EyeforTravel Research is organising a free one day Mobile in Travel Forum to take place on 19th May at this year’s Travel Distribution Summit in London.

The event is completely free to attend for travel companies and attendees will have the opportunity to listen to experts in the field of mobile technology in travel.

To find out more and to register for free, go http://events.eyefortravel.com/school-of-mobile/register-logix.asp

All attendees will also get a free advanced copy of EyeforTravel Research’s latest Mobile in Travel Report which contains valuable insight into how your customers view the mobile channel. After the event, the report will be sold for £250, so this will be your only chance to get a free copy.

Space is limited, so to guarantee your place and your free report, register now at http://events.eyefortravel.com/school-of-mobile/register-logix.asp

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How far mobile is from becoming a mainstream activity in travel?

Travel companies are still largely looking for clarity on the role of mobile phones even as the industry is witnessing the launch of mobile travel applications, especially with the advent of viable mobile computing platforms.

EyeforTravel Research, which few months ago conducted a survey featuring 800 participants, has found that the industry is seeking answers to big questions - When? How? What?  - as far as the role of mobile phones is concerned.  

“Mobile is not just about sales. It can be about the entire cycle of the consumer as far as travel is concerned, and the best practice for each relevant touch point needs to be developed within the industry,” said Amy Scarth, Head of Research at EyeforTravel.

Some of the key findings from EyeforTravel Research’s survey are as follows: 

• The largest proportion of open ended responses to the question (29 percent): “What needs to happen for Mobile to become a mainstream sales & marketing platform?” are concentrated around the ‘devices & networks’ theme. It is evident that many people consider the potential of mobile in travel to be a result of the growth in smartphone penetration, improved functionality and usability for example. Other themes within this include the cost of data to the consumer and therefore limited use of the mobile web, as well as others with limited access to the mobile web. Networks have been criticised for lack of service in some areas and inconsistent connections to make this work. Again the issue of standardisation is raised in this category as companies battle to develop appropriate technologies necessary for different Mobile devices.

• Twenty four percent stated that ‘consumer development’ is a key area to address in order for mobile to become a mainstream sales and marketing platform. This includes the acceptance, awareness, behaviour, confidence, trust and use by consumers, an expansion in the demographics of the users, willingness to opt-in to services, and a need for education and publicity driven by travel companies. The development and protection of a new database is also considered vital.

• Around 13 percent of respondents focused on ‘industry action’. This includes creating clear value propositions and gaining internal buy in initially. It includes an organisational shift in culture and continuous training and development.

• It is also emphasised by 12 percent of respondents that ‘industry knowledge’ is required to push this forward. Companies are looking for precise information and an understanding of the opportunities. It is suggested that there is a need to create awareness, define concepts and invest in pilot projects. It is pointed out that from these concepts around ROI and case studies a crucial step can be taken going forward. 

“There are mixed interpretations about the changes that need to take place to make mobile a reality. It has been stated that “small investments today will pay off in a big way moving forward” but it is clear that without a real understanding about where to invest and solid information to base strategies upon there is a barrier to development,” said Scarth, whose team is currently focusing on The School of Mobile  initiative. 

The Mobile Zone @ EyeforTravel's Travel Distribution Summit Europe 2009

As part of its`The School of Mobile' initiative, EyeforTravel will conduct interactive seminars on Mobile in Travel in the Mobile Zone located within the Travel Distribution Summit Europe exhibition area. EyeforTravel Research will also be presenting their latest mobile research at intervals throughout the day in the Mobile in Travel Zone. 

The Summit will take place on May 19 and 20 in London this year.
For more information, click here: http://events.eyefortravel.com/school-of-mobile/ 

Or contact:

Amy Scarth
Head of Research, EyeforTravel
amy@eyefortravel.com
+44(0) 207 3757545

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Ryanair to authorise “price comparison only” websites

Ryanair will allow “price comparison only” websites to access its timetable and pricing information.

The airline will introduce a licence agreement where, for a small annual charitable donation of €100, price comparison only websites, which provide fare comparison and seat availability information to consumers will be authorised to access Ryanair’s website at www.ryanair.com. 

It will continue to ban reselling “ticket-tout” screenscraper websites which “rip-off consumers by their unauthorised reselling of Ryanair flights at inflated prices and in some cases fictitious surcharges”, stated the airline. 

Ryanair’s Michael O’Leary said: “Our new licence agreements will now allow our fares to be listed on “price comparison only” websites which will prove to more and more consumers that Ryanair’s guaranteed lowest fares can not be beaten. All licence fees will be donated by Ryanair to the charity nominated annually by our staff.” 

Read more: price comparison, screenscraper websites

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`Featured Property’ priority placement option introduced on Worldspan

Travelport GDS has launched `Featured Property’ priority placement option on the Worldspan system.

This feature was previously available on the Galileo system. 

This advertising option provides hotels and resorts with the opportunity to improve placement in search results and promote their property during the booking process as travel agents look to find hotels in specific locations. More than 1,000 properties have already enrolled during the pre-selling phase. 

The company said the offering is “very targeted to ‘eyeballs’ that are booking room nights for those who are actually traveling.” 

 “We’ve seen a 25 percent increase in sales globally on Featured Property, year over year for the month of March,” said Jérôme Moisan, general manager for the UK & Ireland, Travelport GDS. 

Read more: Travelport GDS, Galileo, Worldspan

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STR expects modest improvement in Q3

STR projects a 9.8-percent year-over-year decline in revenue per available room for 2009, and it expects a 1.5-percent increase in 2010.

A difficult environment resulted in a 17.7-percent RevPAR decline in the first quarter of 2009 and led to the company revising its forecast. 

“With the first quarter of 2009 now behind us, it is clear that declining room rates are taking a harder toll on performance than we were expecting,” said Mark Lomanno, president of STR. “It appears that many hoteliers are embracing the very same pricing and room distribution strategies implemented in the 2001/2002 downturn.” 

The U.S. hotel industry should see some relief toward the end of 2009, according to the projections released by STR. Occupancy at year-end 2009 is projected to be down 6.5 percent to 56.5 percent. At the end of first quarter 2009, the industry occupancy is down 10.9 percent to 51.4 percent. Average daily rate is projected to be down 3.6 percent to US$102.89. At end of first quarter 2009, ADR was at US$100.13, down 7.7 percent for the year. 

“On a positive note, we believe the first two quarters of 2009 will be the lodging industry’s trough in this cycle, and we will see some modest improvement in the third quarter followed by measurable gains in the fourth quarter, especially in occupancy,” Lomanno said. 

The U.S. hotel industry projections for occupancy, ADR, and RevPAR are even more optimistic for 2010. Occupancy is projected to end the year flat at 56.5 percent, and ADR is projected to increase 1.5 percent to US$104.41. 

Read more: RevPAR, Occupancy

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Maria Whiteman to lead Holidayline UK

Maria Whiteman has been appointed as CEO of Holidayline UK Ltd, a company which offers six product focused sites.

The company also shared that its co-founders, Tony Bradley and Matthew Flint, will now take the positions of Chairman and non-executive director, respectively. 

Whiteman was Managing Director of Travel2 before she took the role of Consultant Director at ‘The Holiday Team’ in January of this year. 

Holidayline UK Ltd group of travel websites include directline-hotels, directline-citybreaks, directline-skiing, directline-flights, directline-hotels & directline-cruises. 

Holidayline UK Ltd estimates that the combined revenues of their six websites will have reached £61.2 million by their financial year-end in November (up from £41.5 million in 2008).

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STA Travel Launches Brand

STA Travel is proud to announce the launch of a rebrand on its North American website at statravel.com beginning Wednesday, May 6th. The revised UK site went live at the beginning of April. The initiative focuses on the unveiling of a newly-designed website and brand logo.

The soon-to-be-launched website includes social network content from STA customers, destination content written by STA specialists and enhanced user interactivity and site navigation.

Other online features will be introduced over the coming months such as user-generated reviews allowing travelers to add and augment their own experiences. 

STA Travel appointed UK-based strategic digital agency Graphico as its long term partner in creating a new online presence for the brand. In addition, brand research finding innovative purchasing habits amongst the millennial generation was spearheaded by Anne Bahr Thompson and R&D&Co.

STA Travel VP of Marketing and Ecommerce Kristen Celko said of the rebranding initiative: “STA Travel focuses on students and young adults whose lives have been influenced tremendously by technology and collaboration trends in recent years. A primary goal of our branding efforts was to better understand our global consumers and refine our identity and services to support their travel interests and experiences.” 

“The new STA Travel brand embodies the face-to-face approach that we bring to travel. It is designed to reflect the vibrant and dynamic nature of our student and young adult travelers. Travel is not a static experience and we wanted our logo to reflect that.”

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Improving the lifetime value of the customer

Marketers need to prioritise their marketing initiatives across several dimensions.

These are – the amount of return on the marketing spend, certainty (the likelihood of the amount of return), timing (estimating when the return would be accrued) and sustainability (for how long there can be a steady stream of profit). 

According to Ted Schweitzer, VP e-commerce, La Quinta, there is another measurement, which needs to be assessed. 

“That is - the impact of the brand engagement and how that improves the lifetime value of the customer,” said Schweitzer told EyeforTravel.com’s Ritesh Gupta. 

That lifetime value, if improved, can increase the effectiveness and return on the advertising spend. 

In effect, the better the brand engagement in the process, the more effective the spend for a longer period of time. 

It is recommended that companies should understand their risk profile and strategic goals, develop marketing plans/investments accordingly and encourage a culture of testing new ideas and optimising existing programmes. 

“From our own process of review, analysis and planning that we do utilise strategy and long term planning to determine the best mix of our overall marketing plans.  We do some testing but only in areas we think have longer term potential for the brand marketing mix.  With mix modeling, direct measurement tools, wave tracking and site traffic, our data set provides a strong base from which to build,” said Schweitzer, who is scheduled to speak at the forthcoming Online Marketing Strategies for Travel USA 2009 Conference (June 3-4, Miami).

Approach 

One way of developing business is via a “bottom-up” approach, where each customer is acquired profitably in the short-term. 

La Quinta works on both broad and direct reach. 

“While today’s economy is challenging, it’s not changing our acquisition and retention plans dramatically. We feel the combined impact of both traditional media and digital media are extremely important,” said Schweitzer. 

He agrees that the successful businesses of the future still need to follow the twin brand marketing strategy i. e. with acquisition and conversion strategy throughout. 

“Fully integrated marketing with brand, conversion, retention with a solid media mix should always be the goal,” he said. 

Social media 

Schweitzer says there are a lot of different options to look at with social media and ultimately letting the customer direct the interaction with the brand. 

This breadth of channels from which to connect with brands is creating some opportunity for brands to broaden existing models (email, contact centers, reviews) “to a new more broadcast-oriented field”. 

“Adapting to these new channels will be critical and something we’ve not yet accomplished at LQ,” he said. 

Marketers acknowledged that it is essential that brands are aware of and monitor conversations that are happening about them real-time so they can understand how their customers feel and can also protect their reputation where necessary 

Multiple companies have started targeting this area for fairly reasonable fees, says Schweitzer.  

“It’s basically providing a dashboard and response mechanisms for brands, stores etc. to be able to see what “chatter” is out there,” he said. 

Responses are not always necessary but knowledge of what’s being said certainly is. 

For companies with individual properties (i.e. hotels) it’s a challenge to create the right balance of staying aware and deciding when more action is required.  The response approach is more important than ever based on social media. 

It is acknowledged that the real benefit can be derived by aligning a company’s social networking strategy with that of company’s brand and then integrating social elements into the fabric of everything you do online.  

Schweitzer considers the challenges to be similar for most of the companies right now.  

“That is funding the approach and then as usual, integration of a new and permanent channel in terms of the mix. This can be as simple as having the resources to align with the new medium, but in reality it must be pervasive, inclusive and closely monitored,” he said .  

It’s not a turn-it-on-and-forget-it engine. 

Given the immediacy of social networking, it’s imperative that the strategy and execution don’t end once it’s out. 

“The ability to quickly adapt and modify the approach is important based on that monitoring,” concluded Schweitzer.

Read more: e-commerce, social media, engagement 

Online Marketing Strategies for Travel USA

Ted Schweitzer, VP e-commerce, La Quinta is scheduled to speak at the forthcoming Online Marketing Strategies for Travel USA 2009 Conference (June 3-4, Miami). 

Fore more information, click here: http://events.eyefortravel.com/online-marketing/agenda.asp

Or Contact:

Helen Raff
VP North America
+44 (0) 207 375 7582 (UK)
helen@eyefortravel.com

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BA tops travel website usability study

The websites of some of the UK’s budget airlines are some of the worst to use, according to Webcredible’s online travel usability report.

The study, which evaluated the websites of 20 airlines and travel agents in the UK, found that Ryanair is at the bottom (with 41 points out of 100).  

British Airways topped the table with 71 percent, closely followed by Expedia and Virgin Atlantic on 70 percent. 

With only three websites scoring over 70, and with so many top Internet brands scoring between 50 and 60 points, there’s clearly significant scope for these market leaders to improve the usability of their online offering, stated the company. 

Though the average usability score has increased from 51.5 percent to 56.7 percent since last year, key guidelines that still need improvement include displaying clear progress bars, clear identification of errors and providing information on airports. 

The main differences observed between travel agents and carriers were: 

• There’s a significant disparity across some criteria between travel agents and carriers such as showing prices early on, easy refinement of searches and displaying a contact telephone number.

• Carrier sites are still generally less transparent when it comes to total pricing, choosing to add additional costs later during users’ booking journey, despite customer backlash about this practice.

• Due to the smaller volume of flights available, carrier sites have less need to offer more sophisticated features for manipulating search results by sorting and filtering.

• Travel agents are typically more transparent with call centre contact details during the searching and booking process (this could be due to differences in the types of commercial businesses and their approach to customer service). 

Read more: Website, Usability

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TripIt ties up with The Hudson Group

TripIt has announced integration of its online travel itinerary and trip planning service with technology company The Hudson Group.

Clients of The Hudson Group, including airport shuttle company GO Airport Shuttle, will now be integrated with TripIt. Travellers can now add their shuttle reservations to a free TripIt itinerary. 

“Getting to and from the airport is an important part of a traveller’s itinerary,” said Mark Ustik, CEO, Hudson Group. “And clients using our HWeb Reservation Manager can now offer a free travel itinerary service to travellers.” 

The Hudson Group used the TripIt API (www.tripit.com/developer) to enable its developers to build on TripIt’s open itinerary platform. 

Read more: TripIt

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