p2 Contents Oct9 7/10/09 22:07 Page 2
Intelligence needed
to adapt to public’s
news
new buying habits
“GROSS AFFLUENZA” was the condition Tui UK &
Ireland boss Dermot Blastland said all consumers
had some years ago.
The symptoms were that people spent money
without really thinking about the value they were
getting – but those days are long gone and a new
psychology now prevails.
The public is short of cash. And delegates at Abta’s
this week
Travel Convention were this week warned that this
has made them learn how to “buy smart” – whether
it’s groceries, clothes or indeed travel.
Of course, the no-frills carriers introduced the
concept several years ago, but flights are a
commodity product, not a purchase as big or
emotional as the two-week annual summer holiday.
And experts say the shift in mentality is far more
profound than customers simply opting for a shorter
or closer-to-home holiday for a couple of years while
the downturn prevails. Rather, they suggest it is
Travel Convention 2009
a major structural shift in buying habits that will ■ Photi says Abta should target retailers, not bed banks p4
become engrained in consumer behaviour. ■ Buyers’ habits have changed for good, warns PwC boss p6
For travel providers, this means customers will ■ TTG’s exclusive launch for Travel Intelligence Report p7
be even more clued up than before and will buy ■ Video coverage of Carnival boss Micky Arison on ttglive
predominantly from those offering good quality at ■ Full reports from all the business sessions on ttglive
low prices. And that means the cost reduction journey
being taken by most companies is far from over. Revenue & Customs. letters a week” from indie agents
Even BA boss Willie Walsh said on a video clip that Tax team targets travel p5 hoping to sell their businesses
he believes all full-service carriers will have to look A team of tax avoidance specialists
at unbundling more elements and charging for them has been set up by Revenue & City.
– although not, he was careful to add, on the same Customs to probe travel companies Interview: Craig Cherry p16
scale as the no-frills carriers have done. The Monarch procurement chief
The trick, according to the heads of some of the Cambodia. explains airline’s drive to trim
country’s biggest fashion stores, supermarkets Amex agent helps relief p9 supplier total from 1,200 to 900
and hotel chains, is to cut things that do not An Amex consultant on sabbatical
compromise the customer experience. in Cambodia has been helping Cruise.
Ditching things they won’t notice and with relief efforts after typhoon Royal Caribbean on tips p20
keeping those they really want can be done Cruise giant has hinted that Brits’
only by truly understanding your customers Youtravel VIPs. distaste for onboard gratuities
and the market conditions, which may well Abta rule change ‘flawed’ p10 could spur tipping policy review
may be why we have had such an over- Abta and the CAA are accused of
whelming response to our inaugural shying away from their consumer Operators.
TTG Travel Intelligence Report, protection responsibilities and Recession ‘unites trade’ p32
published this week. making themselves “outdated” The downturn has brought the
There is a real thirst for both independent sector closer together,
tangible statistics and insightful Air. says Caribtours boss Paul Cleary
analysis to ensure current challenges Report: BA’s City-NY link p12
are met and businesses flourish in Business travellers could have REGULARS.
the year ahead. Here at TTG we are problems justifying the cost of City & finance p16
committed to giving you both. tickets for BA’s new New York link Cruise p20
Air p24
Agents. Hotels & resorts p26
Lucy Huxley Editor Indies ‘want to sell up’ p14 Operators p34
Co-op boss is receiving “five or six Letters p36
02 09.10.2009
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