Travolution European Summit 2019: More than 350 delegates from the digit Continued from page 72


transaction does not proceed. Air Europa is a member of


the SkyTeam alliance of IAG rivals Air France-KLM and Delta. Te acquisition comes aſter IAG’s previous atempt to expand in Latin America through a joint venture with Latam and American Airlines was vetoed by Chile’s Supreme Court in May. Delta then bought a 20% stake in Latam in September for $1.9 billion. IAG hailed the deal as one


that would “transform IAG’s Madrid hub into a true rival to Amsterdam, Frankfurt, Heathrow and Paris Charles De Gaulle” and “re-establish IAG as a leader in the Europe to Latin America and Caribbean market”. Chief executive Willie Walsh


said: “Acquiring Air Europa would result in IAG achieving South Atlantic leadership.” He told investors the deal


would offer “cost synergies [savings] across selling, general and administrative expenses, procurement, handling and distribution costs”. One early consequence is


likely to be the addition of GDS fees to Air Europa bookings. BA and Iberia imposed fees on GDS bookings two years ago and the current charge adds £18 (€22) to a return flight booking. IAG confirmed it would be


“aligning commercial policies and integrating sales forces”. Air Europa operates 66


aircraſt, including 13 Boeing 787s, and flies to 69 destinations. It carried 11.8 million passengers last year, reporting €2.1 billion in turnover and €100 million in operating profit. IAG reported a 7% fall in


operating profit for July to September last week, blaming a BA pilots’ strike in September.


Prior spells out priorities for firms in tough market


Geting your business culture right is a prerequisite for finding growth in a challenging market, Mathew Prior told the Travolution Summit. Along with Brexit, the former


managing director of Travelopia and Tui’s Specialist Holidays Group said global economic uncertainty, currency fluctuations, trade wars and changing consumer behaviour were big challenges facing the industry. “We also know the industry is


prety good at doing damage to itself,” he added. “Tere is general oversupply, which puts power into the hands of consumers in terms of pricing, and intermediaries such as Google who take full advantage.” Despite these challenges, all


businesses looking for growth should “start with their culture”, said Prior, who urged companies to “increase the weapons in their armoury to cope with uncertainty”. He said businesses need to do


four things to drive growth: focus on data to beter understand their customers; re-set their plan; execute that plan at speed; and invest


‘Firms with good tech are the ones that stand out’


Technological innovation can differentiate brands to make them successful in “tough times”, according to a panel of leading travel technology specialists. Nigel Beighton, group chief


information officer at Atcore, said: “Travel companies that get innovation right are differentiating


70 7 NOVEMBER 2019


Mathew Prior


It’s a really important first step to understand what’s going on with your customer behaviour


management information tends to be too focused on what’s easy to measure but there is a “rich seam” of data waiting to be discovered. Travel firms should focus on


in ways to improve cashflow. “It’s a really important first step


to understand what’s going on with your customer behaviour,” Prior said. “What’s motivating customers to come to you and what’s stopping non-customers? “It’s a sanity check about your


value proposition. Are you a bit homogenous? Are rivals catching up with you? Is there a lack of clarity about why people should go with you rather than someone else?” Prior said conventional


themselves massively. Te ones with technology in good shape are standing out in a tight market.” Paul Nixon, managing director


of Intuitive, said: “From a technology perspective, the travel industry is constantly changing, and we need to meet that change.” Ben Moss, vice-president of


research for distribution platforms and technology at T2RL, said: “An interesting thing to note is dynamic packaging. It was thin on the ground five years ago but now 87% of T2RL’s portfolio is doing it.” Olly Wenn, owner of web design


firm Zolv, advised travel companies to use specialists rather than try to develop technology in-house. He said: “[In a] long-term relationship, you need to deliver value for money.”


travelweekly.co.uk


what customers do once they have transacted, he said. “Repeat business is wonderful, but my favourite type of business is referral business. It means the consumer has not only had the confidence to transact with you, but are also willing to put their neck on the line and say to their friends ‘you must use this business’.” Once a company has a clear idea


of its plan, it must then reorganise itself to deliver at speed, something Prior said is best done with “delivery squads” made up of experts from different parts of the business.


Nigel Beighton


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