NEWS TRAVEL WEEKLY BUSINESS CONTINUED FROM THE BACK
Facebook rise to prominence. Christoph Klenner, secretary-
general of the European Technology and Travel Services Association, said a lot of time had been wasted that could have been addressed by some “quick fixes” suggested by the association. “We’ve made some very
pragmatic proposals to remedy the situation [Google’s dominance]. We think they’re fair. They give Google the space to innovate. But they redraw the level playing field,” Klenner said. “We are pushing very hard to get a decision because it’s been going on too long and, quite frankly, Google has been pulling the wool over the eyes of many politicians and officials.”
Lastminute.com group deputy chief executive Andrea Bertoli said in a few years’ time it won’t be Google that’s the problem but Facebook. Attempts by hotel groups to
force regulation of hospitality site Airbnb were like “farting against thunder”, Breakwell said, adding: “Hotels are doing what they can to differentiate their product but it ain’t working.” He praised Airbnb which, he said, had rapidly developed a brand that already resonated more with consumers than many major hotel chains. “Where [Airbnb] can take
that and how powerful it can become is just immense,” he said. “Ultimately, it’s because the product is just so compelling; it’s fantastic.” Breakwell did not agree that
Airbnb was losing focus by extending its offer to product such as attractions and flights. “You have to experiment and I am sure there are things that will fail or not be as successful as they think,” he added. “They are growing like a
rocket. Do not think they won’t be absolutely gigantic.”
Phocuswright Europe 2017: The online sector will continue to grow,
European travel market ‘to grow by 14% by 2020’
The prospects for growth in travel are good and the online sector will continue to take market share, Phocuswright delegates were told.
New chief executive Simon Lehmann forecast the annual value of the travel market in Europe to grow from £273 billion today to £310 billion by 2020. “The outlook for travel and
tourism remains robust, despite economic fragility and political volatility,” he said “Stronger growth in 2017 has been underpinned by the global economy, and the lowest fuel prices in a decade has boosted demand.” Lehmann said while political uncertainty and issues such as migration could have an impact on travel, the online sector was set to outpace overall growth. Online bookings account for just under 50% ($135 billion) of travel bookings, but that is projected to rise to $180 billion (60%) by 2020. “Who said travel products are
Travellers ‘still opt to book on desktop rather than mobile’
European travel buyers are resisting switching to mobiles to book, although they are using devices for research, according to Phocuswright research. European travellers are
embracing digital channels faster than in any other region of the world, the conference heard. In 2016, 49% of travel commerce
in Europe was conducted online. Brandie Wright, a Phocuswright analyst, said about mobile: “There
78
travelweekly.co.uk 1 June 2017
distributed in an old-fashioned way?” asked Lehmann. “Fragmentation in the European
hotel sector and the highest penetration of online in the world are big opportunities.” Lehmann said that by 2030, mobile bookings would account for 33% of online bookings, up from 20% today, and that it remained to be seen who would secure the biggest share of that business. “How will small suppliers and
intermediaries compete? It will not get more friendly out there.”
is a lot of searching but not so much purchasing taking place because travellers are still turning to a desktop to book.” Phocuswright research indicates
85% of travellers book using a desktop computer or laptop. The study found 55% of smartphone users have at least one travel app on their phone, with OTAs the most popular type of app. Travellers aged 18-24 were
found to be 50% more likely to have a travel app on their phone than those aged 55-plus. Wright said apps were preferred
to the mobile web due to their ease of use, and for brands they offered “stickiness” and loyalty.
WRIGHT: Apps offer ‘stickiness’ “It’s not wise for travel brands
to overlook the power mobile has,” said Wright.
LEHMANN: ‘The outlook for travel and tourism remains robust’
Strides being made by OTAs
and hoteliers to drive more direct online bookings was dubbed the ‘new power distribution’ – the theme of the two-day conference. Lehmann predicted artificial
intelligence and voice would have a huge impact. “We have not seen such a revolution since the rise of the low-cost carriers,” he said. “Human capital remains key in the data-driven world. What remains clear is innovation fuels change and new things are incredibly powerful.”
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90
