Future of distribution Entering a hybrid world
that every customer has an offer in front of them that is appropriate.” Valmorbida argues: “About 90% of passengers buy only one ticket with one airline per year. If a corporate traveller takes an [airline] offer that was intended for a leisure traveller, the airline is missing out. “As a platform and as an industry we need to become a ‘live travel space’ – open and flexible. We feel all three parties [airlines, agencies, GDSs] will go through a change, create value for the industry and ensure customers are more satisfied. “The question is how can we grow as an
industry by capturing more of the wallet of customers by offering more value? “If we just do it to make more money, people will feel cheated. No one wants to pay more for the same. “The evolution will be rapid despite what
THE UK shows the highest rate of online travel and accommodation purchasing of Europe’s major
markets, with 55% of adults having bought both accommodation and
travel (this includes rail travel) online (figure 31). Age is again no barrier –
rates of purchase are highest among those aged 25-64 (Figure 32).
FIGURE 31: ONLINE PURCHASE OF TRAVEL
AND/OR ACCOMMODATION: 2017 All adults
%
10 20 30 40 50 60
0 52% 47% 43% 38% 38% 30% 22%23% 8%
Online purchase of travel
25% 32% 25% 9%
Online purchase of accommodation
12%
Online purchase of travel &
accommodation %
10 20 30 40 50 60 70 80
0 31% 55% 49% 59% EU
Germany France UK Italy Norway
Netherlands Denmark
Source: Eurostat
any given player is doing. Customers are making their decision. It does not matter what the airlines or Amadeus think is the future. If industry players don’t invest, there are plenty of players outside travel looking at the industry who think they could solve this if we don’t. All our agency customers are talking about how to do this. All the airlines are talking about how to become travel companies. “We’re making this evolution. An analogy I use is of a consumer who buys milk at one shop, bread at another, tea at another. Travellers don’t want to buy everything separately. Why not go to a supermarket and make one payment? We are going to be managing a basket of services. “In terms of the agency market, we’ll see
EU
more consolidation and more niche players offering experiences. “The difference to supermarkets is that
Italy
the travel pie is growing at 6% a year. There is enough for everyone. It is not about players fighting for share in a stagnating market, it is a growing pie. “We’re excited about the transformation.
Highest: Norway
ONLINE PUR EU
We believe we’re going to deliver value for all industry players.”
France UK
FIGURE 32: ONLINE PURCHASE OF TRAVEL & HOLIDAY ACCOMMODATION: 2017 By age
Italy Highest: Netherlands 49% 63% 46% 40% 28% 24% 14% Age 16-24 25-34 18% 15% 35-44 24 | Travel Weekly Europe Report 2018 45-54 11% 55-64 52% 50% 41% 37% 49% 62% 45% 61% 55% 42% 41% 33% 31%32% 25% 8% 16%
ONLINE PURCHASE OF TRAVEL & AC EU
EU
France UK
21% 20% Italy
Highest: 3%
65-74
Denmark 59% Source: Eurostat
Source: Eurostat Base: All a
Germany 38% 38%
Germany France
UK Italy
Germany 32% �
Germany 23% France UK
TW EURO CHART 4D
BAR CHART – 3 x 6 bars, rep ‘Highest’
ONLIN
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
