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Opportunity for alternative payment methods in travel sector: survey

Demand for online cash payments is on the rise in the UK as people are using their credit cards less this year compared to 2008, says a nationwide survey conducted by NEMS market research on behalf of Prepaid Services Company Ltd.

The survey shows that 28 percent of the 500 people asked say that they are using their credit card much less or not at all in 2009 compared to last year – as opposed to just seven percent who say that they use their credit card more often. One in three of all the people asked (34 percent) said that they would use cash online if it were as easy as doing so over the counter. 

A contributing factor in shaping such trend is the current economic situation and the fact that people are becoming increasingly cautious with their money. 

“Obviously some changes have taken place in the past months,” he said, “and if people are wary about using cards online for whatever reason, be it safety from fraud or simply because they want to monitor their online spending, they should have other options.” 

The survey also revealed that women appear to have become far more reluctant to use their cards in contrast to men. 31 percent of women have either reduced their credit cards spending or stopped it entirely as opposed to 24 percent of men who have done the same. 

The results also indicate the industries in which customers would prefer to spend their money when shopping online. In total, 68 percent of those who have access to the Internet said they’d buy flights and 71 percent would use it for travel, suggesting that these industries in particular have a lot of room for alternative payment methods. 

“The figures show that the number of people looking to benefit from bargains only offered on the Internet, such as buying air tickets from low cost airlines, is increasing,” said David Hunter, CEO of Prepaid Services Company Ltd. “We choose to operate in travel and other retail industries simply because it’s where people want to shop. Allowing people to pay in cash for the things they want to purchase online means everybody benefits, the retailer and the customer.” 

Cash-Ticket is the latest offering from Prepaid Services Company Ltd. The prepaid voucher allows consumers to purchase flights, ticket orders and online shopping without having to provide personal bank details. 

Read more: alternative payment method

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Implementing new CRM technology

It’s never been more important for today’s hotel organisations to be on top of every lead, every opportunity, and every customer interaction.

An effective customer relationship management (CRM) philosophy and discipline can go a long way in achieving this, while enabling your company to establish and maintain a relationship with each and every customer. 

The first step towards an effective CRM practice is to clearly define your company’s business objectives and requirements, as well as the desired functionality of your CRM system.  Start by obtaining a list of the needs and wants from everyone within your organisation who will “touch” the CRM system. This includes operations, sales, marketing, accounting, service and IT organisations, as well as members of the executive management team. I can’t stress enough that the likelihood of your CRM project failing is very high if you do not involve your key stakeholders early enough in the process. 

Your requirements list should include the following: 

1.    Vendor Requirements
2.    Functional Requirements
3.    Usage Scenarios/Work Flow
4.    Technical Requirements
5.    Integration Requirements
6.    Cost and Budget Requirements
7.    Implementation Requirements
8.    Training and Support Requirements 

Second, you should identify measurable goals such as return on investment and desired productivity improvement. The benefits that can be achieved with a CRM solution are clear – enhanced productivity, reduced costs, increased revenues, along with improved customer acquisition, service, satisfaction, and retention. Yet, for many small and mid-sized hospitality organisations, the large initial investment needed, combined with the long, expensive implementations required, make most on-site licensed CRM packages too cost prohibitive. Additionally, few companies can devote their limited IT resources to installing and configuring hardware and software, testing the application, and supporting ongoing maintenance and upgrades. 

Hosted CRM, also known as on-demand CRM, provides a simpler, faster, and more affordable way for businesses to take advantage of powerful technology tools that streamline and automate the way customer interactions are managed across touch points. With on-demand CRM, all hardware and software components are purchased, installed, tested, and maintained by a third-party hosting provider at a remote site. The hosting service provider also stores and manages all customer-related data. Companies need nothing more than a standard Web browser to access and utilise the CRM application and its features.  

On-demand CRM makes the process of customer relationship management easier and more cost effective for businesses with IT and budget constraints. It provides all the standard functionality of licensed CRM solutions, as well as the security, reliability, and performance companies need to ensure smooth customer operations, without the time and expense associated with in-house systems. 

Most on-demand CRM solutions employ a pay-as-you-go pricing model that eliminates upfront costs or initial fees. You pay only for the services you use, making this approach ideal if you want to avoid wasting money on unused licenses or advanced features and capabilities you simply don’t need. With on-demand CRM, financial impact is minimised and ROI is dramatically accelerated. 

Additionally, there is no software or hardware required with on-demand CRM. So, there are no complex, labor-intensive implementations and no ongoing maintenance and support. Time-to-deployment is shortened, and your application will be up-and-running quickly. And, because little burden will be placed on your IT department, your technical staff will be free to devote more time to other important projects. And, on-demand CRM can minimise your training requirements. Because the application and its functions are accessed via an intuitive Web interface, ease-of-use is enhanced, and your staff can work in an environment they are already familiar with.  

Opting for an on-demand CRM solution instead of a licensed on-site one means that you will have to relinquish a certain amount of control over your data. Therefore, when choosing a provider to host your CRM application, the integrity of your mission-critical, confidential customer data is of the utmost importance. You don’t want to lose this vital information, or have it fall into the hands of your competitors. Your hosted CRM provider must have stringent measures in place to protect your data from security breaches. Additionally, they must have procedures to prevent loss of vital data and ensure uptime and information availability during outages and system failures.  

Today, on-demand CRM solutions provide all the standard features of in-house licensed customer relationship management packages, including components and modules for sales force, marketing, customer service, and help desk automation. Many applications available through hosting service providers also include comprehensive business intelligence capabilities for forecasting, reporting, and trend analysis. 

Implementing and maintaining a comprehensive, effective, and affordable CRM solution for your hospitality organisation is easier than you might think. 

By L. Gregory Hopkins, Libra OnDemand CEO 

Read more: CRM

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Amadeus shows resilience

Amadeus’ global revenue in 2008 grew by 2.2 percent compared with 2007, to €2,861.4m.

Total travel bookings fell by 2.1 percent year-on-year to 526.6m but travel agency air bookings grew slightly, by 0.6 percent, to 364.2m.  

This was achieved in a declining market largely thanks to a 1.7 percentage point gain in market share; Amadeus retains the number one position in travel agency air bookings made through a GDS in 2008 with a market share of 35.6 percent. 

In 2008, 193 million passengers boarded airlines using Amadeus’ flagship IT solution, an increase of 55.9 percent over 2007, when 123.8 million passengers boarded. 

David V. Jones, president and CEO, said, “Amadeus’ business showed a reassuring degree of resilience against the extraordinary financial and trading environment of the second half of last year.” 

“In our global travel distribution services business, we gained 1.7 percentage points in market share which gave some protection against the drop in demand. Looking at how 2009 is developing, travel agencies made 9.1 percent fewer air bookings through Amadeus in the first quarter of 2009 than Q1 2008. This is slightly better than the GDS market as a whole which, we estimate, fell by 13.2 percent over the same period.” 

From now on Amadeus will report the number of passengers carried by airlines using at least two modules of Amadeus’ Altéa Customer Management Solution (CMS).

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European hotel industry posts mixed results in April

The European hotel industry reported mixed year-over-year results for April 2009, according to data compiled by STR Global.

Figures for occupancy, average daily rate and revenue per available room ranged from double-digit losses to single-digit gains, depending on the market and the currency used for comparison. 

“Across Europe, RevPAR for the month fell by double digits as a result of the Easter holidays. But because we did not see a year-over-year rebound in March (Easter occurred in March last year), we expected the numbers to be worse,” said James Chappell, managing director of STR Global. 

“Italy and Spain reported similar RevPAR declines as in March, which is a good sign of possible stabilization. Other countries like Belgium, Germany, the Netherlands and the U.K., however, reports higher declines this month as expected.” 

Key year-over-year market performers for April include (all currency figures are in euros): 

• Edinburgh, Scotland, reported the largest increase in occupancy among the key markets, rising 7.3 percent to 76.8 percent.
• Three key markets reported occupancy decreases of more than 30 percent: Geneva, Switzerland (-33.1 percent to 50.7 percent); Düsseldorf, Germany (-31.8 percent to 47.6 percent); and Tel Aviv, Israel (-30.7 percent to 58.2 percent).
• Salzburg, Austria, reported the largest increase in ADR, which was up 28.9 percent to €126.49. Tel Aviv also reported a double-digit increase in ADR, which rose 23.0 percent to €193.51.
• Düsseldorf reported the largest decrease in ADR, which was down 46.5 percent to €79.85. Moscow, Russia, followed with a 38.0-percent decrease in ADR to €168.70.
• Salzburg was the only key market to increase in RevPAR. It was up 28.1 percent to €66.05.
• Seven markets reported RevPAR decreases of more than 40 percent: Düsseldorf (-63.5 percent to €38.05); Geneva, Switzerland (-46.8 percent to €100.47); Moscow (-45.6 percent to €106.76); Frankfurt, Germany (-43.6 percent to €50.81); Oslo, Norway (-41.0 percent to €53.39); Gothenburg, Sweden (-40.9 percent to €42.56); and Stockholm, Sweden (-40.9 percent to €53.16).

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Thomson to release new ad campaign

Thomson is set to launch a summer marketing campaign targeting holiday makers looking to find cheap last minute deals.

The TV, print, online and direct marketing activity, billed by Thomson as its “biggest ever” campaign, will break next month and aims to push the TUI Travel-owned brand’s customer service credentials and late deals.  

The holiday operator has amended its ‘Holidays Built With You in Mind’ TV spot, created by Beattie, McGuinness and Bungay, to include details of the late deals it has to offer. As per the information available, the TV execution from earlier this year, featuring Thomson staff creating a beach scene in a studio, will re-run in tandem with a new version showing the same beach at night. 

Print and radio ads will follow a more product-led strategy, advertising specific destinations and deals in partnership with local tourist boards.

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Kingfisher Airlines introduces mobile ticketing solution

Kingfisher Airlines has launched King Mobile, a mobile ticketing solution.

King Mobile will be available exclusively on mobile commerce service ngpay. The service would enable airline’s customers to book air travel ticket after securing ‘ngpay’ application on their GPRS-enabled mobile handsets. 

With the introduction of Mobile King, the travellers can now book, pay and generate e-tickets on their phones as well as check mails and book Kingfisher Holidays. 

To to avail the service, users would have to download the ngpay application on their GPRS-enabled mobile handsets by sending an SMS. Once the application is installed, after one-time registration, guests can book tickets , Kingfisher Holiday packages and also check their King Miles, it added. 

E-tickets generated will be automatically emailed to the guests’ preferred email address which can be printed and used to gain entry inside the airport as well as for check-in using valid photo identification. On completion of the booking, e-ticket details will be stored automatically on the phone in the ngpay application for future access. The guest will also receive the booking details on his phone via SMS.

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Will Mobile change the way your customers search for, buy and enjoy your travel product?

This September over 100 online travel experts will meet to research the mobile channel…here’s why:

In 2009 more of your customers will be researching your products and services via their mobile phone. In the 3 months leading up to Christmas 2008, in the midst of a global recession, new EyeforTravel research shows the average number of Americans who browsed the internet via their mobile phones grew by 61.5% from the same period in 2007. This growth is incredible. US adoption outstrips any other part of the world.

Your competitors have recognized this and are busy experimenting. Big players in the travel industry are at last seeing ROI on mobile initiatives. Most major travel organizations from airlines to hotels to intermediaries are experimenting. This is a fascinating and exciting area. No one knows for sure how mobile will develop and what the “killer app” will be but with over 1/3 of web savvy travel companies investing in mobile in 2009 (source: EyeforTravel) you need to start making plans or you will be left behind.

Understand the threats. You need to provide mobile services or you will lose customers. With 4.6 billion global mobile users by 2011 and a 61.5% growth in mobile browsing, a very high percentage of your now online distributed product will be sold through a new channel. The impact on CRM and driving ancillary and non room revenue will be just as important. Ask the Ma and Pa travel agents of the 1990s what happens if you don’t provide a service in a way your customers want it.

You need to exploit the potential that the adoption of any disruptive technology offers. You need to use this period to grab market share. Know one knows what mobile “killer app” will make the travel industry a heap of money. But it’s probably being developed and trialed right now. You need to invest but no one knows for sure where. Interesting and potentially amazingly profitable (or if you get it wrong costly) times!

This September 16-17, over 100 travel companies will be meeting in Chicago to debate and build partnerships and strategies to exploit the mobile channel.

Right now opinions abound and innovation is raging. It is clear travel distribution is about to evolve again. I started EyeforTravel in 1997 at the dawn of the online travel market. Travel led the e-commerce revolution and I predict it will lead with m-commerce as well. Market share and mobile travel brands can be built relatively cheaply right now. They will be extremely valuable in the future.

Register for the Mobile Strategies in Travel Conference now and learn from:

Gareth Morgan, Director of Product Management, Intercontinental Hotels Group
Sameer Poonja, Vice President Online Distribution & E-Commerce, Kiwi Collection
Chris La Rose, Director Website Strategy & Testing, Hilton Hotels Corporation
Bill Bernahl, VP e-Commerce, Hyatt Hotels Corporation
Amy Scarth, Head of Research, EyeforTravel
Tom O’Neil, Account Executive, Google
Jeff Plaisted, National Sales Manager, Microsoft Mobile Advertising, Microsoft Corporation
Michael Dalesandro, CEO, Where I've Been
Josh Steinitz, CEO, NileGuide
Deanne Dale, VP, Sales and Account Management, Travelocity Business
Mike Daly, Vice President, Travel Services, Rearden Commerce
Fraser Campbell, CEO, Wcities
Jared Miller, Sr. Director, Customer Self-Service, Continental Airlines
Koen Bavinck, Sales Manager, Sound of Data
Kristen Manion, Director, Direct Marketing and CRM, Delta Airlines
Speaker TBC, American Airlines
Michael Perhaes, Assistant Vice President, Marketing, MGM Grand Hotel
Ken Bostock, Managing Director, Airport Strategy and Continuous Improvement, United Airlines
April Bridgeman, Senior Vice President, BCD Travel

Go to https://secure.firstconf.com/travel/tdsusa/mobile-travel/register-logix.asp to register online or email me, Tim Gunstone on tim@eyefortravel.com and I will be in touch with more information.

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STR hopeful of “some relief” this summer

Even as the US hotel industry continues to struggle from an occupancy rate perspective, some positive news, too, has emerged going by the data for the last month.

According to STR, the transient weekend travel was positive for the month, which means the weekend leisure travelers are at least beginning to entertain the idea of coming back into the marketplace. 

Mark Lomanno, president of STR, said, “I still remain hopeful that the industry will see some relief this summer.” 

The U.S. hotel industry posted declines in all three key performance measurements during April, according to data from STR. 

In year-over-year measurements, the industry’s occupancy fell 11.1 percent to end the month at 56.4 percent. Average daily rate dropped 9.4 percent to finish the month at US$98.37. Revenue per available room for the month decreased 19.5 percent to finish at US$55.48. 

Highlights were as follows: 

• Detroit, Michigan, which reported flat ADR growth of 0.1 percent to US$89.57 for the month, was the only market to avoid a decrease in any of the key performance metrics.

• Norfolk-Virginia Beach, Virginia, reported the smallest decrease in occupancy, which was down 0.8 percent to 57.9 percent. Three other markets also reported occupancy decreases of less than 5 percent: New

• York, New York (-4.7 percent to 79.7 percent); Orlando, Florida (-4.3 percent to 69.9 percent); and Oahu Island, Hawaii (-1.8 percent to 70.6 percent).

• Chicago, Illinois, reported the largest decrease in occupancy, which was down 20.0 percent to 55.3 percent.

• New York (-25.5 percent to US$203.58) and Chicago (-18.2 percent to US$115.29) reported the largest ADR decreases.

• Norfolk-Virginia Beach was the only market to report a single-digit decrease in RevPAR, which was down 6.2 percent to US$45.49.

• Six markets reported RevPAR decreases of more than 25 percent: Chicago (-34.5 percent to US$63.75); New York (-29.0 percent to US$162.17); Phoenix, Arizona (-28.0 percent to US$70.64); San Diego (-27.2 percent to US$79.51); Boston, Massachusetts (-25.5 percent to US$85.34); and Los Angeles-Long Beach, California (-25.5 percent to US$71.05).

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Expedia drops fees for booking flights online

Expedia.com has made changes to its service policies, eliminating change fees and cancel fees on all hotel, car rental and cruise reservations and on virtually all flight reservations. In addition, Expedia.com no longer charges online air booking fees.

The decision to eliminate its air booking fees for flights booked online follows a promotion-based trial which began in March.

Eliminating the fees, which usually run between $7 and $12 a ticket, allows the online agencies to list the same prices that can be found on airlines’ own websites. The agencies hope the move will encourage more people to book with them directly, rather than using the sites to do price comparisons and then going to the airline sites to book.

As per the information available, flights that are part of certain package deals will still be subject to a fee when reservations are changed or cancelled. Expedia.com said it will resume charging $20 to make a flight booking over the phone, a fee that was halted during the promotion. 

The removal of Expedia.com change fees and cancel fees on all hotel, car rental and cruise reservations and on nearly all flight reservations is new for Expedia.com. 

Role of online intermediaries 

Online intermediaries continue to play a vital role in the travel supply chain and in 2008 they generated an estimated US$45,141 million in revenue from US airline consumers or 34 percent of the online airline market, according to EyeforTravel Research’s North America Online Travel Report 2009.  

“By 2012, we expect this share to decline marginally but maintain about a third of US online airline expenditure. It is therefore important to plan mixed distribution strategies for this market,” said Amy Scarth, Head of Research at EyeforTravel. 

The report has revealed that online intermediaries have a higher penetration of the online market for outbound travel. For example, in 2008 about 30 percent of online domestic travel expenditure was via online intermediaries and 40 percent of online outbound travel expenditure. 

Overall, the online penetration of the US airline market reached an estimated 54 percent in 2008. Airline suppliers and intermediaries have successfully pushed the use of online channels year on year. “In 2009 it is expected that just over 60 percent of the US airline market will be online and this is also expected to grow further to reach almost 70 percent by 2012,” said Scarth.  

EyeforTravel Research’s North America Online Travel Report 2009

For more info, contact:
Amy Scarth
+44(0)207 3757545
or info@eyefortravelresearch.com

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Mexico marks $90m for new ad campaign

Mexico has launched a $90 million campaign to revive its tourism industry.

The nation is trying to give a boost to its tourism industry, which has suffered as a result of the A-H1N1 swine flu outbreak. 

The national campaign is called “Vive Mexico”, and the goal is to enlist Mexicans in revitalising the tourism industry and counteracting the negative publicity from the epidemic. 

International stars, including Spanish tenor Placido Domingo, Mexican film actor Diego Luna and soccer player Rafael Marquez, from FC Barcelona, are featuring in adverts for the campaign launched by President Felipe Calderon. 

Calderon said the new campaign involved an unprecedented investment in the country’s tourism industry. 

“It’s more than a promotional campaign, it’s a national movement which requires the participation of all Mexicans, especially those who are most well-known,” Calderon said. 

Tour companies would launch a wide range of promotions to lure back tourists from alternative destinations, Calderon added. 

Advertising will be handled by the Mexico Tourism Board’s international creative agency, Publicis Groupe’s Olabuenaga Chemistri in Mexico City.  

A spokeswoman for the Mexico Tourism Board reportedly said different international ad campaigns will be created later.

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