Six Travel Trends that will shape our marketing

SIX TRAVEL TRENDS TO shape our marketing for 2014 and beyond

Six travel trends that are going to shape our marketing in 2014 beyond...

The influence of the ‘millenials’

The Millennials are those born since 2000.  These 18- to 30-year-olds of growing importance to the travel industry and have some key characteristics and will shape the future of travel propositions for the industry. Specifically, the millenials are more ethnically diverse, more interested in urban than resort destinations, more likely to travel to follow interests or activities and more likely to travel with friends in organized groups.

The continuing growth of the Silver market

The Silver market is estimated to comprise 1.3 billion to 1.6 billion people worldwide by 2015. Of crucial importance to this group is customer service. The senior group travels primarily for rest and relaxation on either short or longer stay trips and prefer quieter and less congested destinations. Not only is the senior market the world’s wealthiest group – it is also the most demanding and show very little tolerance to poor or average levels of customer service.


An increase in conspicuous leisure

The ubiquitous use of social media and with it the widespread sharing of photos with friends, families and colleagues – has fostered a trend in conspicuous leisure.  Experiences  will become a ‘social currency’ signalling social status through unique experiences rather than through consumer goods.  These experiences will most likely include owning a holiday home, having the freedom to work from home, taking holidays to exotic destinations and enjoying active experiences

The rise of ‘creative tourism’

Creative tourism is travel that provides an engaged and authentic experience and that can make a connection with those who live and work in the tourism destination.  The ‘creative’ tourist differs from a ‘cultural’ tourist in that he or she is active and interacts with the locals.


The strength of luxury travel

Luxury travel continues to be a robust segment of the travel industry and has remained recession-proof over the last five years as other sectors have struggled.  There are now literally millions of millionaires and the number of affluent households are projected to double between 2012 and 2020. Despite the growth of the Asian (and particularly the Chinese) market, it is still projected that U.S., Japanese and European travellers will dominate the luxury travel market until 2020

The emergence of  multi-generational travel

The older the original baby-boomers get, the more family travel they are doing with a lot of that travel planned around milestone events. The multi-generational market is about trading memories, with convenience and value.

Most destinations have struggled when it comes to providing services and amenities that appeal to six and 60 year-olds alike, but some cruise lines have already taken a leadership position in catering to the multigenerational travel market.

India - Powerhouse Economy for Growth

This is one of the World Travel Market breakout sessions on powerhouse economies, in this case, India.

The session was run by the European Tour Operators Association (ETOA) and this panel  discusses outbound tourism, more specifically the huge potential for outbound tourism and the problems facing Europe in trying to attract some of that business.   

And, of course, it's that old nutshell again...visas.

New Exhibitors for WTM 2012

The World Travel Market is welcoming 157 new exhibitors at the event for WTM 2012 with some new interesting names (but sadly not Molvania just yet....)

Europe leads the way in new exhibitors with 41 exhibitors appearing for the first time as Main Stand Holders. They include tourism boards and offices as far apart as San Marino, Lille and Belarus as well as the Republic of Komi, in North Western Russia.

The Technology and Online Travel region has 36 technology companies taking their own stands from a wide range of disciplines including names such as Travel Republic and Online Travel Training. 

Software firms are represented by Hotelogix and Intuitive, while the rise of social media and mobile is reflected in the appearance of specialists in this area such as Revinate and Voiamo Group. Other suppliers exhibiting for the first time include Worldpay and technology services company Wizie.

The Global Village region sees 18 new exhibitors from all parts of the industry including the K+K hotels chain, wholesaler Adonis, Autorent Car Rental and Chic Outlet Shopping in Europe.

Asia has 13 first-time exhibitors (reflecting the growth in China’s travel industry) including China Southern Airlines and newer destinations such as Vietnam, Uzbekistan and Kyrgyzstan, represented by Victoria Vietnam Group, Saigontourist, Uzbektourism and the Kyrgyz Association of Tour Operators.

India has its own dedicated stand-alone region with 12 new exhibitors including Brys Hotels, Inbound Tour Operator Council (ITOC), West Bengal, hotel company ITC Limited and Odisha Tourism.

The UK has 12 new exhibitors including English Heritage (for the first time??) and the National Trust, plus London attractions The View From the Shard and Ripley’s Believe It Or Not.

A further ten new exhibitors will attend the show in the Africa region highlighting a continued development  in African tourism, as Africa emerges from last year’s Arab Spring. Notably these include the Libyan Export Promotion Center and Airkenya Express.

The BRICs or should that be the SKOCTs?

Over the past few years, the most talked-about trend in the global economy has been the so-called rise of the BRICs: Brazil, Russia, India, and China. The world was witnessing a paradigm shift  in which the major players in the developing world were catching up to or even surpassing  the developed world.  But is this really the case?

These were ‘straight-line’ projections that took the developing world's high growth rates from the middle of the last decade and extended them straight into the future, setting them against sluggish growth in the US and other advanced industrial countries. These projections showed, for example, that China was on the verge of overtaking the United States as the world's largest economy (even though the U.S. economy is still more than twice as large and with a per capita income seven times as high)

However, with the world economy heading for its worst year since 2009, Chinese growth is slowing sharply, from double digits down to seven percent (even less) and the rest of the BRICs are tumbling, too - Since 2008, Brazil's annual growth has dropped from 4.5 percent to two percent; Russia's, from seven percent to 3.5 percent; and India's, from nine percent to six percent.

None of this is really surprising, because it is hard to sustain rapid growth for more than a decade but the circumstances of the last decade made it look easy - coming out of the  crisis-ridden 1990s and supported by an abundant supply of credit, the emerging markets took off and by 2007, when only three countries in the world suffered negative growth, recessions had all but disappeared from the international scene.  But now, there is a lot less foreign money flowing into emerging markets and the global economy is returning to its normal state.

EMERGING MARKETS

The notion of a convergence between the developing and the developed world is a myth - of the roughly 180 countries in the world tracked by the International Monetary Fund, only 35 are developed. The markets of the rest are emerging-and most of them have been emerging for many decades and will continue to do so for many more. As of 2011, the difference in per capita incomes between the rich and the developing nations is the same as it was in the 1950s.

BRICs (or should that be BICS or VIPs)

Other than being the largest economies in their respective regions, the big four emerging markets have little in common. They generate growth in different and often competing ways-Brazil and Russia, for example, are major energy producers that benefit from high energy prices, whereas India, as a major energy consumer, suffers from them. Except in highly unusual circumstances (such as those of the last decade) they are unlikely to grow in unison. They have limited trade ties with one another, and they have few political or foreign policy interests in common.

Russia remains a member of the BRICs only because the term sounds better with an R. In recent years, Russia's economy and stock market have been among the weakest of the emerging markets, dominated by an oil-rich class of billionaires whose assets equal 20 percent of GDP

In fact, the longest period over which one can find clear patterns in the global economic cycle is around a decade. The typical business cycle lasts about five years, from the bottom of one downturn to the bottom of the next, and most practical investors limit their perspectives to one or two business cycles. Beyond that, forecasts are often rendered obsolete by the unanticipated appearance of new competitors, new political environments, or new technologies.

THE NEW ECONOMIC ORDER

In the next ten years, the United States, Europe, and Japan are likely to grow slowly as will China as the economy matures. As growth slows in China and in the advanced industrial world, these countries will buy less from their export-driven counterparts, such as Brazil, Malaysia, Mexico, Russia, and Taiwan.

The economic role models of recent times will give way to new models as growth occurs elsewhere. In the past, Asian states tended to look to Japan as a model, nations from the Balkans looked to the European Union, and nearly all countries to some extent looked to the United States. But the crisis of 2008 has undermined the credibility of all these role models. Tokyo's recent mistakes have made South Korea, which is still rising as a manufacturing powerhouse, a much more appealing Asian model than Japan. Countries that once were eager to enter the eurozone, such as the Czech Republic, Poland, and Turkey, now wonder if they want to join a club with so many members on the verge of bankruptcy. And the US call for poor countries to restrain their spending and liberalize their economies is difficult to accept when  Washington can't agree to cut its own huge deficit.

Among countries with per capita incomes in the $20,000 to $25,000 range, only two have a good chance of matching or exceeding 3% growth over the next decade: the Czech Republic and South Korea. Among the large group with average incomes in the $10,000 to $15,000 range, only one country -- Turkey -- has a good shot at matching or exceeding four to five percent growth and  in the $5,000 to $10,000 income class, Thailand seems to be the only country with a real shot at outperforming significantly.

To the extent that there will be a new crop of emerging-market stars in the coming years, therefore, it is likely to feature countries whose per capita incomes are under $5,000, such as Indonesia, Nigeria, the Philippines, Sri Lanka, and various contenders in East Africa.

Although the world can expect more breakout nations to emerge from the bottom income tier, at the top and the middle, the new global economic order will probably look pretty much like the old one . 

The Spice is Right..

Congratulations to SpiceJet, the low-cost carrier for the Indian domestic market, which has just secured recognition at the World Travel Market for it's growth and multi-channel approach to distribution.

World Travel Market Chairman Fiona Jeffery presented an award to the carrier’s CEO Sanjay Aggarwal, at today’s WTM 30th Anniversary VIP Opening & Reception Ceremony.

SpiceJet currently connects 18 domestic destinations with 125 daily departures. The depth of its network provides customers a variety of options for interconnecting flights, giving them access to second tier destinations via connections at major hubs.

It has been growing recently, despite the economic pressures. SpiceJet increased its daily departures from 98 in October 2008 to 125 by May 2009. Its market has increased from 7.9% in September 2008 to 12.8% in June 2009, making it the fastest growing airline in India during this period. During the first seven months of the current year, SpiceJet’s passenger traffic has grown 14% compared to a 5% decline in the overall Indian domestic traffic.

Unlike many other low-cost airlines, it has a multi-channel approach to sales - 24% of bookings come directly from consumers booking at www.spicejet.com, 14% book through its call centers, online travel agents account for 30% with offline travel agents its largest sales channel with 32%.

It differs from other low-cost carriers by having a cargo business, which covers 13 stations. It has carried more than 19000 tones of cargo since May 2008. This side of the business currently contributes more than 3% of its total revenue.

Overall, it deserves credit for having made a profit while growing during an economic slowdown In the first three months of the year it made a profit of INR 26.3 crores (£3.6m) after two quarters of near breakeven numbers.