truth, myth and pith: phocuswright's 2011 travel industry trends

Truth, Myth, and Pith:PhoCusWright’s 2011 Travel Industry Trends

February 16, 2011 A PhoCusWright Online Event

Moderated By

Lorraine SileoVice President,

Research

Douglas QuinbySenior Director,

Research

Cathy SchetzinaDirector,

Communications and Senior Research

Analyst

Carroll RheemDirector, Research

Ram BadrinathanMarket Analyst,

Asia Pacific

Sponsored by:The PhoCusWright

Subscriptions

• Global Edition• Innovation Edition• European Edition• Financial Edition

For more information:[email protected]

Agenda

A Look Back A Look Ahead

2010 Travel Trends Recap

2010 Travel Trends: How did we do?

1. A Restrained Recovery

2. Online Travel Agencies Maintain Momentum

3. Airline Optional Services – Ancillary No More

4. Mobile Travel Bookings Become Reality

5. Social Media Tops Agendas

6. Getting Local: Mobile, Social and Search Converge

7. Growing Pains Prompt Meta-morphosis

8. Trip Planning Gets Personal

9. Emerging Markets on the Radar

10. Mapping Makes its Mark (reader-submitted)

© 2011 PhoCusWright Inc. All Rights Reserved.

Polling Question #1PhoCusWright’s Travel Trends for 2010 Were…

a. Spot on – you guys must be psychic!b. Mostly on target – a few that were off.c. 50/50.d. Meh. There were a lot of things that were more

important.e. Completely off base.

2011 Travel Trends


2009: We Can’t


2010: We Shouldn’t


2011: We’re Outta Here!

2011 Travel Trends

1. Vacations (Finally) Make a Comeback

2.


Emerging Markets: No Computer…No Problem

2011 Travel Trends


2. Emerging Markets: No Computer, No Problem

3.


Déjà vu?


GDS

GDS Distribution: Following the Money

Source: PhoCusWright Inc.

Customer Intermediary Supplier

Travel Agency

$300 ticket2.5

Segments


GDS

GDS Distribution: Following the Technology

Source: PhoCusWright Inc.

Customer Intermediary Supplier

Travel Agency

$300 ticket2.5

Segments


Airlines Want to Move From Selling This


In Retail Displays Like This


This

and This

To More Like This,


And Maybe Even One Day, Like This…

Air Distribution: As Clear as Mud

2011 Travel Trends



3. Air Distribution: As Clear as Mud

4.


Too Much Power?


Irrelevant In

formation

Overload

2011 Travel Trends




4. Google-ITA: If Not Plan A, then Onto Plan B

5.

“Mobile” is not a trend.


Travel Industry

Mobile

2011 Travel Trends





5. “Mobile” is Not a Trend

6.


Mobile 1.0


Suppliers get smart about smart devices


Suppliers Get Smart About Smart Devices


The Opportunity to Transform Service Delivery

2011 Travel Trends






6. Suppliers Get Smart about Smart Technologies

7.


Suppliers Claw Their Way Back

2011 Travel Trends







7. Suppliers Claw Their Way Back

8.


Emerging Markets: Which Ones Are Real?

Note: Bubbles are for representation only; they don’t represent the actual size of market.Source: PhoCusWright Inc.

China

Hong Kong

Argentina

Chile India

Indonesia

Brazil

Singapore

Mexico

Market Size

High

Medium LargeSmall

Low

Onl

ine

Pene

trati

on

2011 Travel Trends








8. Emerging Markets: Which Ones Are Real Opportunities?

9.


Flash Sales Are Hot Hot Hot!


Are Flash Sales Burning Out?









9. Private Sale: Flash of Brilliance or Flash in the Pan

10.

2011 Travel Trends


Tablet Wars Spark a Travel Revolution


Tablets Travel









9. Private Sale: Flash of Brilliance or Flash in the Pan

10. Tablet Wars Spark a Travel Revolution

2011 Travel Trends


Polling Question #2Which 2011 Travel Trend(s) will be most impactful? Select up to 3 options.a. Vacations (finally) Make a Comebackb. Emerging Markets: No Internet, No Problemc. Air Distribution: As Clear as Mudd. Google-ITA: If Not Plan A, the Onto Plan Be. “Mobile” is Not a Trendf. Suppliers Get Smart about Smart Technologiesg. Suppliers Claw Their Way Backh. Emerging Markets: Which Ones Are Real?i. Private Sale: Flash of Brilliance or Flash in the Panj. Tablet Wars Spark a Travel Revolution

Questions?Follow us on

#phocuswright

Moderated By

Lorraine SileoVice President,

Research

Douglas QuinbySenior Director,

Research

Cathy SchetzinaDirector,

Communications and Senior Research

Analyst

Carroll RheemDirector, Research

Ram BadrinathanMarket Analyst,

Asia Pacific


Polling Question #2 ResultsWhich 2011 Travel Trend(s) will be most impactful? Select up to 3 options.a. Vacations (finally) Make a Comebackb. Emerging Markets: No Internet, No Problemc. Air Distribution: As Clear as Mudd. Google-ITA: If Not Plan A, the Onto Plan Be. “Mobile” is Not a Trendf. Suppliers Get Smart about Smart Technologiesg. Suppliers Claw Their Way Backh. Emerging Markets: Which Ones Are Real?i. Private Sale: Flash of Brilliance or Flash in the Panj. Tablet Wars Spark a Travel Revolution

Sponsored by:The PhoCusWright

Subscriptions

• Global Edition• Innovation Edition• European Edition• Financial Edition

For more information:[email protected]

Coming soon:

Go to www.phocuswright.com for more information!

Upcoming Online Event When They Get There (and Why They Go):

PhoCusWright’s In-Destination Activities, Attractions, Events & Tours

Wednesday, March 16, 12pm EST

Presenter:Douglas QuinbySenior Director,

Research

Moderator: Cathy Schetzina

Director, Communications

and Senior Research Analyst

Thank You!

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truth, myth and pith: phocuswright's 2011 travel industry trends

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