1. Technological e-Trends in the
Travel and Tourism Sectors
November 23, 2011

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3. Agenda
European Travel Trends
Travel Unleashed
Mobile Trends
Summary
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4. Europe
• Expected to overtake the U.S. as the
world’s largest online travel market
• Online growth varies widely: “surging”
vs. strong
• Main online growth area will be OTAs
• LCCs are key to driving online travel
• With hotels fragmented and growing,
OTAs lick their chops
• Tour operator growth to remain weak
• In the longer term, rail will be a sector
to watch
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5. OTA Growth by Region, 2009-2012
• Online travel agencies are the fastest-growing distribution channel around the
world
• Aggregate global OTA gross bookings stood at US$93.7 billion in 2010, or 11% of
the total worldwide travel market
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7. The End of On/Off
• Travelers connect all the time, and every place
• Shrinking screens – smartphones, tablets, e-readers and GPS systems
• Travelers today connect instantly
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9. Look Who’s Talking
• Leveled the playing field by raising their voices
• Everybody has something to say, and ample
means to say it
• Citizen journalists
• A new breed of thought leaders
• Demanding consumers don’t hesitate to air
grievances
Are you listening?
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10. The Role of Reviews in Online Hotels
• Traveler reviews are a critical influence in the hotel-buying process
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12. The Speed of Smart
• The accelerated pace of innovation and technology is constantly raising
the bar
• Every device knows where we are and what we like
• Delivering relevant content, personalized deals and flash offers is
essential
• New technologies
• Collaborative consumption
• Augmented reality
• Sentient devices
• Virtual conferencing
• Near field communications
• QR codes
• RFID and more
Keep up, speed up or step aside
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14. To Boldly Go
• Travelers have more choices than ever
• Digital demystification - people from everywhere are going everywhere,
often to places they’ve never considered before
• Must engage with more knowledgeable, culturally-aware customers on
the go
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16. Capital Comeback
• Despite continued economic uncertainty, every kind of capital is being
raised, all around the world
• Deal flow has strengthened, and public offerings are reminiscent of the
bubble
• Money drives change
• Nimble newcomers battle the establishment for a piece of the action
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18. The New PNR (Point of No Return)
• Suppliers are seeking greater control over their product, lower costs and
more direct control of the customer
• Transparency is threatened with ancillary fees being withheld from all
distribution channels
• The new distribution landscape must provide a level playing field for all
parts of the value chain
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19. Mobile Trends

20. Mobile Timeline
Mobile Timeline
1980s 1990s Early June
2000s 2007 2008-2009 2010 2011+
1G 2G & 2.5G 3G 4G
• Devices are becoming more powerful, with tablets increasing in
popularity worldwide
• Lower-cost tablets from Amazon and India will significantly raise
the penetration of these devices
• Networks increase broadband
• Smartphones become better able to sense the environment
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21. LEISURE TRAVEL LIFE CYCLE
Mobile Travel Applications for Leisure Travel
Explore destinations,
view sample
Share experiences
Dream itineraries
while traveling
Share Plan Plan day-by-day
activities
Navigate location and
explore surroundings.
Book alternatives during
Explore cultures and
service disruptions, and
historical sites based on
ancillary services such as
your preferences
Explore Book hotels, restaurants and
ground transportation
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22. Mobile Search: Reverse Funnel Approach
Traditional Web Search: Mobile Search:
Return general results Return specific results
and then refine and then expand
• Review mobile search engine results for your company
• Optimize mobile website for mobile search engines
• Prepare for context-aware mobile search results
• Consider the reverse funnel concept for both mobile search and travel search specifically
Source: PhoCusWright Inc.
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23. Local Social Mobile MOJO
• Mobile search is about providing the right product to the right person in the right
place at the right time
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24. Are We at the Beginning of the Tablet Revolution?
• Global tablet sales will
exceed 250 million
worldwide by 2015, with
major growth in Asia
Pacific and EMEA
• Tablets are about high consumption and immersive environments
• Travel companies must develop a specific strategy for the emerging tablet market,
as frequent travelers are early adopters of these devices
Source: Yankee Group
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25. Summary
• European online travel will surpass U.S. travel in volume
• Travelers are now always connected, and thus expect services to be
delivered 24/7 and tailored to their needs
• Social media has permanently impacted the way travelers plan and
experience their trips
• New devices and technologies continue to reshape the travel process
• Travelers are exploring new destinations and ways to experience travel
• Mobile technology is transforming all aspects of the travel experience
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26. Thank You!
nrose@phocuswright.com
www.phocuswright.com