State of travel-sales & trends in DenmarkBARD presentation 24JAN13

Agenda 24JAN13

Incoming Denmark 2013 Sales and trends

Outgoing Denmark Sales 2012 – 2013 Trends

IATAs NDC-project Any other business?

Foreigner visitors To Denmark…:

Annual bednights: 44,7 mio.(2011) of which 21,9 million are foreign bednights.

Annual # of tourists: 53,2 mill. Ånnual expenditure: 74,6 bill. DKK, of

which 29,6 come from foreign visitors. 5 largest markets: Germany, Norway,

Sweden, Holland, UK.

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Foreigner visitors TO Danmark: What can Denmark do to increase # of

visitors? Co-operation between suppliers MUST improve

Product development and marketing must improve!!!!!!

Tourism to Denmark must become more of a political priority.

More ressources to Visit Denmark (NTO) for marketing of Denmark aborad.

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Foreigner visitors To Denmark: Marketing Denmark abroad.

We need to change ”our old introvert image”.

We’re a forward thinking, high-technology oriented nation with friendly people.

We focus on providing tourism experiences of a lifetime.

Foreigner visitors To Denmark: The ”visa-to-Denmark discussion” – JAN12

Inbound trends Denmark 2013

Scandinavia still an exotic, but expensive, destination!!!!! Positive market development in:

Up market customers Budget travellers, esp. Group travel. MICE.

Losing out on the large mid-segment (e.g. Croatia is the same, but with a better climate)!

Product trends: ”Slow Travel” People to people ”Behind the (Scandinavian) scenes

Danes travelling abroad: Annual sales of travel 2007-2011 – gross sales (travel

agents and T/O’s).

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Danes travelling abroad – where do we go?

Top 5 overall: Germany (1,24 mio) Sweden (1,28 mio

bednights) Spain (921.000) Norway (867.000

bednights) UK (614.000)

France, Italy and Turkey are the next countries on the list.

Top 5 intercont.:

USA (274.000)

Thailand (156.000)

Egypt (93.000)

China (50.000)

Canada (38.000)

Dubai is next on the list…

BSP sales DK 2006 - 2012

Oubound trends Denmark 2013

Leisure: + 2-3% incl. Almost unchanged charter market. VFR on the increase (+3-4%) Group travel increases (+50 years) Virtually unchanged destinations (!)

Business: +1-2% MICE: +5%

IATA NDC – January 2013

Shopping for air travel todayWhat does it look like?

Search by city-pair and date

Compare on price or time

Limited product information

Shopping for hotel todayWhat does it look like?

Search by ratings and deals

Compare on value to consumer

Rich product information

Shopping for air travel tomorrow with NDCIs it possible?

Yes. Airlines already offer today much richer content than what consumers can find on travel agent websites which use GDS data.

Shopping for air travel tomorrow with NDCWhat will it look like? (IATA mock-up)

Search by affinity and value

Compare on value to consumer

Rich product information

Transparency and choice

NDC value proposition

ConsumersTransparency (all-inclusive), choice (full-service & LCC), personalization

AirlinesDifferentiation, innovation, customization, time to market

Travel agentsMore content, better customer information, in one place

AggregatorsMore content, incentive to innovate

Schedule

Airline

Fare Filing

Availability

Airline Distribution TodayPush content via 3rd parties to GDS

Builds content

Agent

3rdParties

GDS

Cu

sto

mer

Airline Distribution TomorrowDynamic Airline Shopping

Airline

Product

Price and Availability

Engine

DynamicAirline

Shopping

Interface

Agent

Cu

sto

mer

Aggregator

Agent

Risks

Learning

Reso787

Mock-up 1.0

2012 2013 2014-2016

Ref. Imp. v1.0 Ref. Imp. v2.0

Request for Pilot Participation

Pilots Review

XML Standards

Mock-up 2.0

Industry Pilots

Pilots Launch

Business adoption

Pilots Review

The NDC Roadmap

NDC collaborative approachWho are we reaching out to?

Airlines (scope = 400+)Full service carriers, LCC

Travel agents and meta-search (scope = 60,000+)Travel Management Companies: AmEx, CWT, HRG, BCD…Online Travel Agents: Expedia, Priceline…Meta-search: Kayak…

IT companies (scope = 20+)Google, HP, Farelogix, Datalex, Concur, Travelsky…

GDS (scope = 3)Sabre, Travelport, Amadeus

AssociationsWTAAA, ASTA, ECTAA, ETTSA, GBTA, ACTE…

Prize: a joint WTAAA-IATA value proposition for NDC

One-stop access to rich content, including ancillaries and low cost

Personalized offers based on preferences

Increased relevance of travel agent in comparing complex product offers

Transparency on fees and charges

What else?

What Forum to discuss Airlines & Travel agents concerns?

What are the concerns raised by travel agents worldwide? Are the concerns related to NDC or to the business in general?Are the concerns legitimate or driven by lack of awareness or vested interests in status quo?Can the concerns be clarified now or only experience will tell?

Some concerns raised by Travel agents so far:

Source: ECTAA, ASTA. 1. Risk of bypassing the agent or the GDS?2. NDC is designed by airlines for airlines?3. Cost of implementation of NDC solution?4. Compatibility with back-office systems?5. Overall NDC cost to the industry and consumers?6. Ability to find a low fare or best value in NDC?7. Risk of customer or agent discrimination in NDC?8. Impact of NDC on the agent / GDS business model?9. Role of the aggregator in the selection of offers?10.Availability of NDC for self-booking tools?11.Access to PNR and data ownership in NDC?12.Risk of higher fares for en-route changes?

Areas of collaboration discussed by WTAAA and IATA 14JAN13.

1. Development of a joint value proposition for NDC2. Engagement of travel trade partners in IATA

activities (standard-setting and pilots)3. Forum / task force addressing concerns4. Mutual invitations to respective external events (e.g.

WPS) 5. Joint communication statements on the above topics

Any questions?