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Similaire à Dare to differentiate
Similaire à Dare to differentiate (20)
Dare to differentiate
- 2. DARE
TO
DIFFERENTIATE
Summer
2010
Edition
“Not
So
White”
Paper
Series
Library
of
Congress
Cataloging-‐in-‐Publication
Data
Fitzgerald,
Chicke
J.
Dare
to
Differentiate,
Tapping
the
Drive
Traveler
–
The
Forgotten
Mass
Market
ISBN
0-‐9721398-‐3-‐4
Copyright
@
2010,
Solutionz
Group
International,
Inc.
All
rights
reserved
under
the
Pan-‐American
and
International
Copyright
Conventions.
No
part
of
this
book,
in
whole
or
in
part,
may
be
reproduced,
stored
in
a
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or
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in
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otherwise,
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the
prior
written
permission
from
Solutionz
Group
International,
Inc.
Dare
to
Differentiate
Tapping
the
Drive
Traveler
|
The
Forgotten
Mass
Market
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Rights
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Page
|
i
- 3. DARE
TO
DIFFERENTIATE
Summer
2010
Edition
“Not
So
White”
Paper
Series
Dare
to
Differentiate
Tapping
the
Drive
Traveler
|
The
Forgotten
Mass
Market
By
Chicke
Fitzgerald
Summer
2010
Edition
“Not
So
White
Paper™”
series
©
2010,
Solutionz
Group
International,
Inc.
All
Rights
Reserved.
Page
|
ii
- 4. DARE
TO
DIFFERENTIATE
Summer
2010
Edition
“Not
So
White”
Paper
Series
THE
FACTS
• 85%
of
all
overnight
trips
in
the
US
are
taken
by
car
• 78%
of
all
spending
on
travel
in
the
US
is
done
by
people
traveling
by
car
• 6
out
of
the
top
10
search
terms
in
the
travel
category
include
mapping
and
driving
directions
Do
you
intentionally
market
to
the
drive
traveler?
1
Source:
U.S.
Travel
Association
and
Hitwise
PREFACE
For
over
50
years
airlines
have
been
the
biggest
guns
in
the
travel
industry;
it
is
therefore
no
surprise
that
the
air
traveler
sits
at
the
heart
of
the
multi-‐billion
dollar
travel
industry.
As
an
industry,
we
cater
to
[aka
intentionally
market
to]
the
air
traveler
at
every
turn
–
providing
tools
for
them
to
plan
their
business
and
leisure
trips,
as
well
as
giving
options
for
their
vacations
and
weekend
getaways.
We
quite
naturally
sell
them
airline
tickets.
We
also
sell
them
hotel
rooms,
timeshare
ownership
and
vacation
home
rentals,
we
rent
them
cars,
motorcycles
and
RVs,
we
sell
tours
and
cruises
to
them
and
we
entice
them
to
come
to
our
destinations
and
attractions.
Even
our
technology
is
geared
around
their
needs
and
their
behaviors.
Yet,
air
travelers
are
a
surprisingly
small
part
of
the
total
travel
picture.
2.
The
U.S.
Travel
Association
reports
that
there
are
ten
trips
by
car
for
every
air
trip
Whether
or
not
this
is
a
surprise
to
you,
wouldn’t
it
be
irrational
to
focus
on
just
the
one,
versus
the
ten?
But
it
is
both
a
fact
and
the
topic
of
this
paper
and
the
reason
that
I
urge
you
to
consider
this
opportunity
for
differentiation.
The
obsession
that
we
have
with
the
air
traveler
is
superficially
logical.
The
foundational
technology
for
the
retail
side
of
our
industry
was
built
by
the
airlines.
And
the
air
traveler
spends
more
per
trip;
stays
away
longer
and
quite
frankly,
the
mechanics
behind
planning
a
point-‐to-‐point
trip
are
much
easier
than
one
taken
by
car.
However,
with
air
travelers
representing
just
15%
of
all
overnight
trips
in
this
country
and
just
22%
of
all
travel-‐related
spending,
if
you
are
looking
for
a
competitive
edge
and
if
you
need
to
grow,
you
owe
it
to
yourself
to
evaluate
the
drive
market
opportunity.
I
do
not
suggest
that
you
should
turn
away
from
the
air
traveler,
which
may
still
be
lucrative
for
you.
1
U.S.
Travel
Association
Domestic
Travel
Market
Report
–
2007
Edition
and
June
Hitwise
Top
Search
Terms
as
of
June
26,
2010
2
A
trip
is
defined
as
being
more
than
50
miles
from
home
or
at
least
one
night
spent
away
from
home
©
2010,
Solutionz
Group
International,
Inc.
All
Rights
Reserved.
Page
|
iii
- 5. DARE
TO
DIFFERENTIATE
Summer
2010
Edition
“Not
So
White”
Paper
Series
However,
I
do
want
to
point
out
the
fact
that
growth
may
be
as
simple
as
expanding
your
focus
to
the
“other
85%”
of
travel
in
this
country,
which
for
the
purpose
of
this
report
I
have
dubbed
the
“Forgotten
Mass
Market”.
3
A
few
years
ago,
I
wrote
a
guest
article
that
was
published
in
ProMedia’s
The
Beat™
subscription
newsletter.
It
was
entitled
“The
Irresistible
Pull
of
Irrational
Behavior
–
Travel
Industry
Style”,
with
the
title
borrowed
from
4
the
sub-‐title
of
the
book
Sway,
by
Ori
and
Rom
Brafman.
The
subject
of
that
article
was
distribution
channel
choice
and
more
specifically,
the
use
of
travel
agents
and
the
GDSs
by
travel
suppliers,
a
subject
on
which
I
am
extremely
passionate
–
and
very
vocal.
I
have
included
excerpts
of
the
text
of
that
article
here
because
it
also
applies
as
strongly
to
the
industry’s
love/hate
relationship
with
the
airlines
and
our
natural
obsession
with
the
air
traveler,
as
it
does
to
travel
distribution
channel
choices.
I
just
started
reading
a
book
titled
Sway
last
night.
The
parallels
of
the
stories
told
by
authors
Ori
and
Rom
Brafman
about
various
situations
where
intelligent,
normally
logical
individuals
make
decisions
that
make
absolutely
no
sense
immediately
struck
me.
For
anyone
that
follows
my
musings
about
distribution
on
a
regular
basis,
you
know
that
I
have
written
columns
for
The
Beat
that
poke
a
bit
of
fun
at
our
industry
and
discuss
how
the
issues
of
distribution
fall
into
that
category
of
"irrational
behavior."
While
told
tongue-‐in-‐cheek,
they
ring
all
too
true
and
are
a
stark
example
of
how
our
decision-‐making
in
this
industry
gets
derailed
by
looking
at
what
is
going
on
around
us.
The
key
points
of
the
book
focus
on
the
things
that
"derail
our
decision-‐making":
• Loss
aversion
-‐
tendency
to
go
to
great
lengths
to
avoid
perceived
losses
• Diagnosis
bias
-‐
original
diagnosis
blocks
our
ability
to
see
subsequent
results
clearly
• Chameleon
effect
-‐
tendency
to
take
on
characteristics
that
have
been
arbitrarily
assigned
to
us
This
paper
is
about
differentiation.
The
basic
premise
behind
my
thesis
is
that
when
you
market
and
sell
your
products
and
services,
if
you
remain
focused
on
the
status
quo
(marketing
to
the
air
traveler),
you
may
be
missing
a
huge
opportunity.
We
hope
that
this
paper
prompts
you
to
determine
which
of
these
derailing
drivers
are
keeping
you
from
exploring
how
to
differentiate
and
grow
your
business
by
extending
your
marketing
to
the
“other
85%”.
1. What
do
you
think
you
might
gain
if
you
added
a
focus
on
the
drive
market?
2. If
you
were
starting
at
‘ground
zero’
how
would
you
think
about
this
opportunity?
3. Are
you
thinking
independently
and
being
objective
about
evaluating
the
potential
of
this
market?
When
you
finish
reading,
if
you
find
that
you
have
been
focusing
solely
or
primarily
on
the
air
traveler
and
see
merit
in
exploring
the
drive
market
in
greater
detail,
then
by
all
means,
stand
out
from
the
crowd
and
go
for
the
incremental
profits!
At
the
end
of
the
day,
you
will
need
to
make
your
own
decisions
that
make
sense
for
you
and
your
business.
And
perhaps
you,
too,
can
be
an
iconoclast
and
help
the
industry
"sway"
the
other
direction!
Dare
to
differentiate
your
marketing,
your
services
and
your
business
models.
Chicke Fitzgerald
CEO
Solutionz
Group
|
www.solutionz.com
|
1-‐813-‐925-‐0789
|
www.twitter.com/chickefitz
3
www.promedia.travel
4
©2008
by
Ori
Brafman
and
Rom
Brafman,
Sway.
All
rights
reserved,
Doubleday.
©
2010,
Solutionz
Group
International,
Inc.
All
Rights
Reserved.
Page
|
iv
- 6. DARE
TO
DIFFERENTIATE
Summer
2010
Edition
“Not
So
White”
Paper
Series
EDITORIAL
NOTES
WHY
IS
THIS
REPORT
FOR
ME?
AM
I
REALLY
OBSESSED
WITH
THE
AIR
TRAVELER?
Individuals
who
should
read
this
report
include
C-‐level
executives
(and
investors)
that
set
strategy
and
influence
technology
investment
in
the
following
sectors:
Travel
suppliers
(air,
car,
If
your
selling
process
begins
with
where
your
product
picks
up
and
hotel,
rail,
cruise)
leaves
off,
then
you
are
an
air-‐traveler
centric
supplier.
And
if
you
are
a
hotelier
and
you
are
not
asking
the
starting
point,
you
are
missing
out
on
the
potential
of
securing
the
enroute
bookings,
as
well
as
those
on
the
way
home.
Travel
retailers
(online
If
your
dialogue
with
a
traveler
begins
with
where
do
you
want
to
go
and
and
offline
agencies)
when,
and
you
never
ask
them
their
starting
point
or
mode
of
transportation,
you
are
an
air-‐traveler
centric
retailer.
Corporate
Travel
Agencies
If
you
are
not
providing
a
service
for
the
52%
of
corporate
travelers
that
drive
(other
than
expense
report
processing),
you
may
be
missing
a
huge
opportunity
to
aggregate
the
purchasing
power
for
and
make
commissions
on
the
hotel
nights
consumed
by
this
group.
Travel
packagers
If
you
package
together
travel
at
a
destination,
then
you
are
an
air-‐
traveler
centric
packager.
Destination
marketing
If
you
don’t
help
travelers
get
from
where
they
are
to
you
and
your
organizations/convention
planning
process
is
all
about
your
destination,
then
you
are
an
air-‐
and
visitors
bureau
traveler
centric
DMO/CVB.
Travel
technology
If
your
technology
dialogue
with
retailers
or
the
consumer
starts
with
companies
and
Global
when
and
where,
and
you
never
ask
them
their
mode
of
transportation,
Distribution
System
you
are
an
air-‐centric
company
(even
if
your
technology
is
for
hotels,
car
companies
rental
companies,
and
cruise
lines).
Attractions
and
If
you
don’t
help
travelers
get
from
where
they
are
to
you
and
your
destination
resorts
planning
process
is
all
about
your
attraction
or
resort,
then
you
are
air-‐
traveler
centric.
Industry
associations
and
If
your
meeting
and
conference
agendas
and
your
research
and
lobbying
government
agencies
efforts
do
not
include
the
drive
market
as
a
key
topic/focus,
then
you
are
air-‐centric
and
not
helping
your
constituents
tap
into
the
85%
of
travelers
that
drive.
Location-‐based
services
If
your
product
simply
does
point-‐to-‐point
mapping
and
navigation
and
companies,
including
GPS
doesn’t
take
into
account
that
people
using
your
product
need
to
plan
and
navigation
firms
and
their
entire
journey,
have
different
preferences
when
they
are
with
mapping
technology
different
people
and
travel
under
different
circumstances,
then
you
are
companies
not
tapping
into
the
drive
traveler
market.
Investors
If
your
questions
about
travel
trends
start
with
what
is
happening
with
vacation
travel
(8%
of
total),
corporate
travel
(25%
of
total),
or
air
travel
volume,
or
what
will
happen
in
the
next
round
of
GDS
negotiations,
then
you
are
air-‐centric
and
missing
a
huge
upside
opportunity
for
the
companies
in
which
you
have
invested
(or
are
about
to
invest).
©
2010,
Solutionz
Group
International,
Inc.
All
Rights
Reserved.
Page
|
v
- 7. DARE
TO
DIFFERENTIATE
Summer
2010
Edition
“Not
So
White”
Paper
Series
NAVIGATING
THIS
REPORT
We
recognize
that
everyone
who
reads
this
paper
will
come
from
a
different
place
of
knowledge
and
understanding
of
the
travel
industry,
of
the
history
behind
the
industry’s
focus
on
the
air
traveler
and
of
the
drive
market.
Some
may
need
to
“stop”
and
think
about
your
current
approach,
or
at
minimum
“yield”
to
the
possibility
that
there
is
an
opportunity
that
is
yet
untapped.
Here
are
some
tips
of
how
to
get
the
most
out
of
this
report:
• If
you
are
not
at
all
familiar
with
the
travel
industry,
we
recommend
that
you
read
the
report
in
its
entirety.
• If
you
don’t
need
the
history
and
background
on
the
air
focus
and
want
to
just
“cut
to
the
chase”
about
the
drive
market
opportunity,
then
you
should
begin
with
The
Forgotten
Mass
Market.
ABOUT
THE
NOT
SO
WHITE
PAPER™
SERIES
Our
reports
are
topical
and
timely
and
we
focus
on
analyzing
emerging
trends.
Because
they
are
published
in
real
time,
we
constantly
update
the
content.
This
report
is
an
update
to
a
paper
on
the
Drive
Market
titled
“Are
You
Reaching
the
Forgotten
Mass
Market?”
originally
published
in
2008.
Our
authors
are
considered
experts
in
the
selected
subject
and
they
are
backed
up
with
respected
industry
5
research .
The
papers
include
anecdotal
insights
and
analogy
to
stress
the
points
of
the
paper.
They
are
written
in
a
slightly
irreverent,
frank
style.
Items
of
particular
importance
are
noted
with
a
light
bulb.
Throughout
this
report
the
use
of
“I”
denotes
my
personal
perspective
and
“we”
generally
refers
to
the
“global
we”
where
I
speak
as
a
member
of
the
travel
industry,
unless
used
in
a
personal
story.
If
you
are
fond
of
reports
with
a
heavy
statistical
or
analytical
bent
or
those
written
in
the
detached
third
person,
the
Not
So
White
Paper™
series
may
not
be
for
you.
However,
if
you
consider
yourself
intellectually
curious
and
are
willing
to
look
outside
of
our
industry
and,
more
importantly,
outside
of
your
own
experience,
then
you’ve
come
to
the
right
place.
ABOUT
THE
AUTHOR
Chicke
Fitzgerald
is
the
CEO
of
Solutionz
Group
International,
Inc.,
a
Tampa-‐
based
global
consultancy
specializing
in
marrying
travel
buyers
and
sellers
via
multiple
channels.
Chicke
has
over
thirty
years
experience
in
the
electronic
distribution
and
marketing
fields,
with
a
focus
on
the
travel,
transportation,
and
mobile
industries.
She
is
a
strategist,
author,
keynote
speaker
and
was
an
early
investor
in
a
groundbreaking
technology
firm
serving
the
travel,
mapping,
navigation,
and
media
industries.
That
company
is
currently
sitting
in
hibernation,
waiting
for
the
inevitable
financial
thaw
and
for
the
“believers”
in
the
drive
market
opportunity,
who
are
surely
out
there.
Her
specialty
is
developing
strategy,
crafting
profitable
business
models,
and
creating
executable
plans
to
achieve
her
client’s
vision.
Her
passions
include
incubating
early
stage
businesses,
fostering
joint
ventures,
and
mergers
and
acquisitions.
5
See
Appendix
A
for
information
about
the
resources
used
for
this
paper
©
2010,
Solutionz
Group
International,
Inc.
All
Rights
Reserved.
Page
|
vi
- 8. DARE
TO
DIFFERENTIATE
Summer
2010
Edition
“Not
So
White”
Paper
Series
The
firm
has
expertise
in
all
sectors
of
the
travel
distribution
value
chain,
including
offline/online
agencies,
corporate
travel,
travel
suppliers,
GDS
companies,
destinations,
travel
technology,
service
providers,
content
companies,
and
social
media.
Prior
to
forming
her
own
consulting
firm,
Ms.
Fitzgerald
held
senior
positions
with
Equant,
SITA,
Worldspan,
and
Sabre.
In
addition
to
the
Not
So
White
Paper™
series,
she
has
published
three
books
on
travel
distribution,
known
as
the
Travel
Distribution
Library.
She
also
was
the
executive
editor
on
a
series
of
white
papers
completed
for
the
Hotel
Electronic
Distribution
Network
Association
(HEDNA).
Her
iconoclast
style
is
also
featured
in
regular
articles
on
The
Beat™
subscription
newsletter
and
in
their
blog
<http://www.thebeat.travel/blog/>.
The
investment
community
recognizes
Chicke
as
an
expert
on
the
travel
industry.
She
has
achieved
top
5%
status
in
the
Gerson
Lehman
Group
Council
of
Expert
Advisors,
<http://www.glgroup.com>,
in
a
field
of
more
than
250,000
advisors
across
all
industries.
Chicke
and
her
husband,
Michael,
presently
reside
with
their
son
and
daughter
in
Tampa,
Florida.
For
more
information,
see
www.solutionz.com,
or
contact
Chicke
by
email
at
chicke@solutionz.com
or
phone
(+1-‐813-‐925-‐0789).
©
2010,
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International,
Inc.
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Rights
Reserved.
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|
vii
- 9. DARE
TO
DIFFERENTIATE
Summer
2010
Edition
“Not
So
White”
Paper
Series
TABLE
OF
CONTENTS
EXECUTIVE
SUMMARY................................................................................................... 1
Breaking
Down
the
Limiting
Myths ....................................................................................................1
Turbulent
Times
Demand
Creative
Solutions .....................................................................................2
How
is
Planning
Done
Today? ............................................................................................................3
The
Purpose
of
this
Report.................................................................................................................4
WHY
DIFFERENTIATE? .......................................................................................... 5
eCommerce
Pioneers .........................................................................................................................6
Differentiation
or
Accelerated
Commoditization? .............................................................................6
Disintermediation
as
a
strategy..........................................................................................................7
What
now? .........................................................................................................................................8
THE
FORGOTTEN
MASS
MARKET ............................................................................ 9
The
Terminology.................................................................................................................................9
Non-‐Air
Traveler..............................................................................................................................9
Drive
Market ...................................................................................................................................9
Mass
Market ...................................................................................................................................9
Life
Travel......................................................................................................................................10
The
Logic...........................................................................................................................................10
Better
said
“Why
should
I
care?” ..................................................................................................10
Measuring
the
Impact...................................................................................................................10
The
Decision
to
Drive ....................................................................................................................11
Sizing
the
Market..............................................................................................................................12
Total
Trips
by
Mode
of
Transportation .........................................................................................13
Overnight
Trips
by
Mode
of
Transportation
–
2006
to
2009.........................................................14
Top
Misconceptions
of
the
Road
Traveler.....................................................................................14
Fallacy
#1
–
Low
Income
Demographic ...................................................................................................................... 15
Fallacy
#2
–
This
is
the
Economy
Traveler .................................................................................................................. 15
Fallacy
#3
–
We
already
serve
the
road
traveler ........................................................................................................ 16
The
Electronic
Distribution
Picture................................................................................................17
Air
Disintermediates
Hotels..............................................................................................................17
Investment
Community
Focus..........................................................................................................18
Further
Reductions
in
Air
Travel.......................................................................................................19
THE
HEART
OF
THE
MATTER
–
A
PRIMER
ON
THE
DRIVE
MARKET ............................ 20
Road
Trip
2010
Style.........................................................................................................................21
Why
Do
I
Need
a
Primer
on
Marketing
to
the
Drive
Market? ..........................................................22
Distribution
Value
Chain
Penetration ...........................................................................................22
Getting
Perspective.......................................................................................................................23
Why
Does
Mode
of
Transportation
Matter?.................................................................................24
Changing
your
mindset .................................................................................................................24
Road
Traveler
Needs ........................................................................................................................26
The
Online
Planning
Process ............................................................................................................26
The
Journey
Planning
Tools ..............................................................................................................27
The
Model .....................................................................................................................................28
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viii
- 10. DARE
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DIFFERENTIATE
Summer
2010
Edition
“Not
So
White”
Paper
Series
Demographics
-‐
It’s
not
just
the
Economy
traveler .......................................................................28
The
Bottom
Line ...............................................................................................................................29
LOOKING
OUTSIDE
OUR
INDUSTRY ...................................................................... 30
The
Transformation
of
the
Restaurant
Industry
–
A
Story
of
Product
Centricity .............................30
The
Television
Industry
–
A
Story
of
Customer
Centric
Design ........................................................32
The
Shipping
Industry
-‐
Becoming
Multi-‐Modal...............................................................................33
From
Hamburgers
to
Televisions
to
Shipping...................................................................................33
HIGHER
ORDER
MARKETING™ ............................................................................. 34
Product .............................................................................................................................................34
Action ...............................................................................................................................................34
Intent ................................................................................................................................................34
The
Higher
Order
Marketing
Equation .............................................................................................35
MOVING
FORWARD ........................................................................................... 36
There
is
Hope ...................................................................................................................................36
The
Profitability
Challenge ...............................................................................................................36
Cost
Cutting
is
Not
a
Strategy...........................................................................................................37
Mode
of
Transportation
Matters .....................................................................................................37
Are
You
Customer
or
Product
Centric? ............................................................................................38
TAKING
ACTION................................................................................................. 39
Your
To
Do
List..................................................................................................................................40
The
Role
of
the
Travel
Agent ............................................................................................................41
Geographical
Focus ..........................................................................................................................42
Sector
by
Sector
Action
Plan ............................................................................................................42
Gathering
Data
and
Creating
A
Marketing
Plan ...........................................................................42
Travel
Suppliers .......................................................................................................................................................... 42
Travel
Technology
Companies.................................................................................................................................... 43
Destination
Marketing
Organizations ........................................................................................................................ 43
Industry
Associations
and
Government
Agencies
and
Research
Companies............................................................. 43
BACK
TO
THE
“IRRESISTIBLE
PULL
OF
IRRATIONAL
BEHAVIOR” ................................ 44
Loss
aversion ....................................................................................................................................44
Diagnosis
bias ...................................................................................................................................44
Chameleon
effect .............................................................................................................................44
CONCLUSION..................................................................................................... 45
NOTES .............................................................................................................. 46
CONTACT
INFORMATION .................................................................................... 47
APPENDIX
A
-‐
RESOURCES .................................................................................. 48
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ix
- 11. DARE
TO
DIFFERENTIATE
Summer
2010
Edition
“Not
So
White”
Paper
Series
EXECUTIVE
SUMMARY
As
you
look
at
the
cover
of
this
report,
you
will
see
a
lone
airplane
and
on
the
roads
below,
scores
of
cars,
along
with
SUVs,
motorcycles,
trucks
and
RVs.
Every
day
on
every
road
in
the
U.S.
the
story
is
the
same.
Excluding
commuters,
each
vehicle
is
on
a
journey
of
varying
lengths
and
different
levels
of
complexity
–
taking
trips
around
town,
day
trips
and
weekend
getaways
in
the
region,
all
the
way
up
to
and
including
the
Great
American
Road
Trip.
Some
have
pre-‐planned
their
outings.
Still
others
are
more
spontaneous,
planning
as
they
go.
According
to
research
conducted
on
this
market
in
2007
by
the
U.S.
Travel
Association,
there
are
over
2
billion
trips
taken
annually,
with
over
85%
by
car,
representing
78%
of
all
spending.
Over
50%
of
those
vehicles
⎯
1
yes,
that
is
one
billion
⎯
are
going
more
than
50
miles
from
home
and
will
require
a
hotel
room .
And
6
according
to
our
own
research,
over
85%
of
those
⎯
850
million
⎯
will
stay
in
3,
4
and
5
star
motels/hotels .
Most
all
of
these
road
travelers
will
need
driving
directions
for
at
least
a
portion
of
their
trip,
suggestions
of
where
to
eat,
things
to
do,
places
to
shop
and
some
will
want
to
know
about
events.
However,
today
as
a
rule,
the
travel
industry
leaves
all
this
work
to
the
consumer.
And
by
and
large,
as
an
industry,
we
maintain
our
singular,
transaction-‐focused
model,
making
money
from
the
sale
of
our
products
(or
the
booking
fees
or
commissions
from
those
sales).
Most
industry
players
have
not
given
serious
consideration
to
the
possibility
that
they
can
augment
this
tried
and
true
model
with
a
new
revenue
stream
by
knitting
these
tools
together.
7
Hitwise
reports
that
6
out
of
10
of
the
top
search
terms
in
the
travel
category
include
mapping
and
driving
directions.
It
is
no
surprise
that
the
bulk
of
the
revenues
from
this
lucrative
market
go
to
MapQuest
and
Google,
CitySearch
[and
the
like],
while
the
travel
industry
happily
serve
the
other
15%
of
overnight
travelers
that
fly
to
their
destination.
BREAKING
DOWN
THE
LIMITING
MYTHS
The
purpose
of
this
Not
So
White
Paper™
is
to
break
down
the
myths
that
hold
us
in
our
present
conundrum,
focusing
on
the
addressable
air
traveler
market,
which
is
declining
before
our
very
eyes.
Those
myths
are:
MYTH
FACT
Air
travel
is
the
Air
travelers
only
represent
15%
of
all
travel
in
the
US
and
just
22%
of
all
spending
in
8
mass
market
the
travel
category .
The
real
mass
market
is
the
drive
market.
We
know
our
We
may
know
their
preferred
airlines
or
hotel
brands,
but
we
do
not
understand
customers
and
their
their
behavior
under
different
situations
and
how
it
changes
based
on
whom
they
behaviors
and
intent
are
traveling
with
or
why
they
are
traveling.
The
current
Travel
technologies
(including
those
selling
hotel,
cruise
or
those
supporting
travel
technologies
meet
planning
to
destinations)
are
highly
air-‐centric.
They
begin
the
dialogue
with
the
the
needs
of
the
traveler
asking
them
WHERE
they
want
to
go
and
WHEN,
with
an
orientation
on
top
mass
market
destinations.
They
don't
include
the
customer’s
starting
point
(other
than
an
airport),
the
details
of
the
journey,
mapping
and
driving
directions,
which
are
key
needs
of
the
drive
market.
6
LeisureLogix
Drive
Market
Study
2006
–
LeisureLogix
was
co-‐founded
by
Chicke
Fitzgerald
7 th
Hitwise
Top
10
Travel
Search
Terms
As
of
June
26 ,
2010
8
US
Travel
Association
2007
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- 12. DARE
TO
DIFFERENTIATE
Summer
2010
Edition
“Not
So
White”
Paper
Series
TURBULENT
TIMES
DEMAND
CREATIVE
SOLUTIONS
“If
people
say
that
Sept.
11
was
a
perfect
storm,
I
believe
now
that
that
was
just
partly
cloudy
with
a
chance
of
showers.”
Roger
Dow,
president
and
CEO
of
the
U.S.
Travel
Association.
9
In
2008
and
2009,
the
U.S.
saw
double-‐digit
cutbacks
in
airline
capacity
and
frequency
as
a
direct
result
of
the
10
fuel
crisis .
The
Air
Transport
Association
reports
that
from
2000-‐2009,
over
700
planes
were
retired
and
parked
in
the
desert
or
sold
to
third
world
nations,
never
to
return
to
service
here
in
the
U.S.
Domestic
air
ticket
sales
though
the
travel
agency
community
(online
and
offline)
for
2008
and
2009
declined
11%
and
5%
respectively.
International
air
ticket
sales
through
the
travel
agency
channel
for
the
same
period
11
declined
14%
and
9%
respectively .
In
2010,
if
approved,
the
United
and
Continental
merger
promises
to
yield
another
10%
decline
in
their
combined
capacity
and
frequency.
These
declines
have
impacted
every
sector
of
the
travel
industry
and
have
been
compounded
by
the
extreme
economic
challenges
we
have
faced
over
the
last
24
months.
And
while
airlines
will
invest
in
new
aircraft
when
the
economy
recovers,
channel
shift
will
persist
as
they
continue
dogged
pursuit
of
direct
distribution
through
their
websites.
This
strategy
of
disintermediation,
albeit
misguided
in
my
opinion,
is
here
to
stay.
As
a
group,
the
travel
agency
community
faces
continually
shrinking
(and
even
vanishing)
supplier
commissions
and
the
pressures
of
suppliers
selling
direct
to
consumers
and
corporations.
The
industry
has
gone
from
a
high
of
47,000
agencies
in
1996
to
just
under
16,000
in
2010.
Last
year,
with
system-‐wide
air
12
sales
of
$186.1
billion,
just
$65.8
billion
(35%)
was
sold
through
the
agency
channel .
As
the
air
business
through
the
agency
community
declines,
so
goes
the
primary
revenue
stream
to
the
GDS
companies,
which
are
based
on
booking
fees
from
the
airlines.
And
every
other
type
of
supplier
and
every
destination
that
depends
on
air
travelers
for
business
are
likely
seeing
similar
rates
of
decline
in
business.
Following
the
lead
of
the
airlines,
other
travel
suppliers
continue
their
pursuit
of
direct
distribution
to
the
consumer,
cutting
out
as
many
middlemen
as
possible.
Statistics
show
that
this
strategy
may
save
on
the
cost
side
of
the
equation,
but
the
net
yield
on
transactions
is
substantially
less
due
to
the
focus
on
price
that
is
rampant
online.
The
profit
gap
cannot
be
made
up
in
volume.
It
is
certainly
a
turbulent
time
for
the
travel
industry.
Welcome
to
the
new
norm.
It
will
be
up
to
you
to
determine
how
you
will
respond
to
continued
pressure
on
the
current
model,
particularly
if
you
rely
heavily
on
air
travelers
for
your
revenues.
The
question
isn’t
whether
we
need
a
new
business
model
moving
forward
⎯
it
is
“When
will
we
agree
on
a
model
that
will
result
in
growth
for
the
majority
of
constituents
in
the
travel
value
chain?”.
The
challenge
we
pose
through
this
paper
is
whether
there
is
opportunity
that
has
been
missed
due
to
the
singular
focus
that
most
of
the
travel
industry
has
on
the
air
traveler.
Imagine
if
you
will,
being
able
to
sell
the
same
products
and
services,
but
appealing
to
a
much
larger
audience
than
you
do
today,
simply
by
making
some
changes
in
the
tools
that
are
used
to
market
to
and
service
your
customers.
9
Air
Transport
Association
(ATA)
2010
Industry
Review
10
ATA 2010 Industry Review reports that in 2008 alone, U.S. airlines paid $16 billion more in fuel than in 2007.
11
Airline
Reporting
Corporation
(ARC),
Sales
by
Agency
Type
12
ATA
System
wide
Sales
versus
ARC
Agency
Sales
for
2009
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DIFFERENTIATE
Summer
2010
Edition
“Not
So
White”
Paper
Series
Before
you
can
move
forward,
sometimes
you
have
to
think
back
and
see
how
history
has
played
out.
And
sometimes
you
have
to
look
outside
of
your
own
world
and
see
what
has
happened
in
other
industries.
This
paper
will
take
a
look
at
both
the
restaurant
and
television
industries,
contrasting
the
adjustments
that
they
made
as
their
consumer
changed
before
their
eyes.
In
both
cases,
the
tools
and
delivery
mechanism
changed,
but
the
products
(e.g.
hamburgers
and
TV
programming)
remained
the
same.
We
will
also
look
at
the
shipping
industry
and
their
need
to
consider
the
investment
required
to
meet
multi-‐modal
shipping
opportunities.
I
believe
there
is
a
strong
correlation
to
marketing
your
existing
products
and
services
specifically
to
the
drive
market
and
adopting
that
same
multi-‐modal
approach
to
your
customers.
HOW
IS
PLANNING
DONE
TODAY?
Planning
a
trip
by
car,
SUV,
RV,
motorcycle
or
truck
is
more
complex
than
planning
a
trip
by
air.
The
consumer
who
is
driving
instead
of
flying
generally
has
a
number
of
different
needs
in
planning
their
trip:
• Picking
their
destination
(often
impacted
by
who
they
are
traveling
with
and
what
they
want
to
accomplish)
and
options
for
the
return
trip
or
trip
extensions
to
other
nearby
destinations
• Choosing
a
tool
to
plan
their
route,
including
determine
where
the
stopping
point
is
each
day
(based
on
route
preferences,
driving
style
and
speed
limits)
• Finding
someone
to
book
their
lodging
(offline
agency,
online
agency
or
supplier
direct)
• Locating
what
is
in
proximity
to
where
they
are
going
(places
to
stay,
things
to
do,
things
to
see,
places
to
eat,
places
to
shop,
events
to
attend)
• Exploring
what
is
along
their
route
(things
to
do,
etc.)
and
knowing
how
long
it
will
take
to
stop
and
get
back
on
their
way
• Seeing
who
else
is
going
to
the
same
place
that
they
are
going
• Getting
input
from
others
on
the
choice
of
destination
or
things
to
do
and
see
along
the
way
and
at
the
destination
While
there
are
some
very
interesting
trip
planning
and
social
media
tools
in
the
marketplace,
in
general
we
still
have
a
chasm
that
exists
between
the
travel,
the
mapping/navigation
and
the
location-‐based
content
industries.
We
lack
an
integrated
solution.
The
travel
industry
generally
focuses
on
the
destination
or
the
product
itself
(e.g.
the
hotel,
the
attraction,
the
cruise)
and
has
a
bias
toward
top
destinations.
The
mapping
and
navigation
industries
focus
on
getting
from
point
to
point
and
providing
location
based
content
information
(e.g.
points
of
interest),
but
do
not
do
a
good
job
on
the
planning
of
multiple
day
journeys.
Both
camps
have
their
hands
in
the
content
game,
but
neither
one
has
the
ability
to
tailor
content
to
match
the
travelers’
unique
needs
based
on
the
purpose
of
trip
or
who
is
traveling
together.
These
variables
are
not
easily
handled
by
single
dimensional
travel
profiles.
I
liken
this
to
the
way
that
we
used
to
do
our
shopping
before
the
launch
of
superstores,
such
as
Super
Wal-‐
Mart,
BJ’s
or
Super
Target.
We
went
to
one
store
for
our
food
staples,
another
for
our
beer/wine,
for
paper
goods,
for
home
and
garden,
for
clothes,
for
toys
and
yet
another
for
pharmacy
items.
You
get
the
picture.
There
were
some
stores
that
stocked
several
categories,
reducing
the
number
of
steps
to
fulfill
our
list,
but
nevertheless,
the
onus
was
on
us
to
make
our
list,
determine
the
best
places
to
go
and
then
plot
out
the
most
efficient
way
to
get
everything
that
we
need.
Consider
for
a
moment,
what
it
would
take
to
plan
a
road
trip
from
Tampa
to
New
York
City.
You
are
going
to
an
industry
conference,
but
decide
to
take
your
family
along.
On
the
way
up,
you
want
to
take
the
most
direct
route,
with
a
minimum
number
of
stops.
On
the
way
back,
it
doesn’t
matter
how
long
it
takes
and
you
want
to
visit
the
Jersey
shore,
several
battlefields,
visit
friends
in
Murfreesboro,
TN
and
visit
Dollywood.
It
would
be
fun
to
go
through
Atlanta
on
the
way
back
and
see
the
Coca
Cola
museum
and
catch
an
Atlanta
Braves
game.
You
have
your
favorite
hotel
chain,
or
perhaps
you
want
to
stay
at
historic
bed
and
breakfast
inns.
And
of
course,
you
want
to
know
where
all
the
Starbucks
are
along
the
way.
Where
would
you
start?
How
many
players/tools
would
be
involved
in
the
process?
Give
it
some
thought,
and
let’s
move
on.
©
2010,
Solutionz
Group
International,
Inc.
All
Rights
Reserved.
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