Travolution European Summit:T Continued from page 48


sector, Hotels, is forecast to recover all 35% of its 2020 retraction this year, lifting its proportion of travel’s total spending to 25% from 21%. Accounting for 11% of


total IT spend in 2020, the Tour Operators sub-sector is forecast to follow up 2020’s 35% reduction with an 18% increase this year. The £156 million predicted


for 2021 would be the third- highest outlay for the sector since 2008 as operators recover ground on the rest of the industry lost in recent years. Water Passenger Transport’s


21% spend reduction in 2020 was the smallest of all five travel sub-sectors, but the sector accounts for just 8% of all spend. Commenting on what travel


firms need to focus limited technology resources on, Decius Valmorbida, president of travel at report partner Amadeus, said: “Compared to other industries it’s remarkable how little value is attached to the travel product, despite most people agreeing that travel enriches their lives. “Coffee shops are experts at


merchandising, so much so that it’s now accepted that a cup of coffee can cost as much as £5. “The question for the


travel industry is: how can we help travellers place a higher value on our product so that as travel returns it is on a more sustainable long-term footing? “Here the industry needs


to look hard at the experience on offer. Was the experience of travelling in 2019 really that compelling, and where can we


create additional value?” i Download the T


ravolution


Innovation Report 2021 for free at tinyurl.com/travoreport2021


‘Transparency and trust are key to rebuilding sector’


The industry has to rebuild consumer trust following Covid and accept tougher financial assessments by regulators, the Travolution European Summit was told. Will Plummer, chief executive of


financial protection provider Trust My Travel, argued “the industry wasn’t prepared” for Covid and said: “Now we need to rebuild trust. Transparency and trust are key – transparency around terms


ravolution brings together leading figures from the


and conditions and around where money is going.” Thomas Cook chief executive


Alan French agreed, telling the summit: “The customer is starting to get their head around the impact of booking a flight and hotel separately. If the flight is cancelled you won’t get your hotel money back. The EU Package Travel Directive is starting to have an impact across Europe. “There is a more formal risk


assessment of businesses than before and that is happening across Europe. There is going to be more formality around how travel companies are set up, their cash position and ensuring customers are refunded.”


Will Plummer Travelzoo UK general manager


James Clarke said a Travelzoo customer survey found 47% of respondents believed travel companies had been damaged by their handling of refunds, with younger adults aged 25-44 more likely to say trust had been damaged.


Thomas Cook promises top service at OTA costs


The reborn Thomas Cook aims to combine the customer service of a tour operator with the cost base of an online travel agent (OTA). That is according to Thomas


Cook chief executive Alan French, who told the Travolution European Summit: “Resurrecting a brand like Thomas Cook comes with baggage but also opportunities.” He suggested the Covid pandemic


“lessened” the baggage of the former Thomas Cook Group’s liquidation in September 2019, arguing: “By the time the new Thomas Cook sold its first holiday, the rest of the travel industry had been through a trauma that left a lot of disappointed customers. “So we’ve seen a shift in customer


perception. It was very negative [towards Thomas Cook] at the end of 2019. It was a good deal less negative a year ago and now it’s a good deal less negative again.”


46 7 OCTOBER 2021 French suggested: “If you want


to take advantage of new trends, the biggest problem is a legacy operating system. You still have to leverage the investment in legacy systems and people. It’s a lot harder than building from scratch. “We want to use tech to bridge


the gap between the tour operator promise and an OTA. With Covid, there is a need for a little more hand- holding. There is a gap in the market and we’re well placed to fill that.” Comparing operating online to a


vertically integrated business with a tour operation and travel agencies, he said: “People went to a shop to talk to someone. I want to get people to talk to someone digitally. “The importance of reps in resort


is overstated. They’re there more to sell than to help. We want to build a company that has the customer- centric focus of a tour operator with the cost base of an OTA.”


Alan French


He said: “We’re all interested


in the differences between OTAs and tour operators, but a customer who buys a holiday once a year just wants to trust you. The distinction between an operator and OTA in the customer’s eyes is arbitrary. “We want to give you the hotel and


flight you want, but wrap it up with a customer care package and someone you can talk to who can tell you how far the beach is from the hotel.”


travelweekly.co.uk


PICTURES: Steve Dunlop


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