Airbnb have recently announced and launched a complete overhaul of its brand identity.
Airbnb is a community marketplace for people to list, discover and book unique spaces around the world through mobile phones or the internet. Airbnb connects people to unique travel experiences at any price point, with over 800,000 listings in 34,000 cities and 190 countries. It has found accommodation solutions for over 15 million customers.
The launch is not without controversy with a number of industry commentators poking fun at the suggestive nature of the logo in addition to claims of plagiarism.
We like it….and have taken an extract from their blog written by Brian Chesky one of the co-founders that provides insights to the thinking behind the new brand identity.
“In the end, nothing can express our identity more profoundly than the stories of people who make up this community. When we started Airbnb, I had no idea about the people we would meet, or the friendships I would make. Then I met Amol, one of the first guests, who later invited me to his wedding in India. I met Sebastian, who was trapped in his house in the middle of the London Riots in 2011. Before his own mother had a chance to check that he was okay, seven of his former guests did. And I met Shell, who saw the devastation wrought by Hurricane Sandy, and listed her home for free to those who were displaced. These people, along with millions of others, have their own unique backgrounds and life experiences. We all come from vastly different cultures and places. And yet, no matter how many miles may separate us, we are united by the universal, powerful, human desire to connect, to understand, and to belong. So together, with this new identity, I look forward to starting the next chapter of this improbable journey with the idea that first set it in motion—the belief that belonging can take us anywhere”. — Brian Chesky
Read more on the drivers behind the new brand positioning at:
In 1996, when Microsoft was still ahead of the big technology trends, it launched a small brand called Expedia Travel Services. It hoped to persuade customers to book holidays online. It was not an immediate success. Few households had an internet connection then and, just as importantly, most people thought the idea of buying a holiday through the ether not to mention typing their credit-card details into a web browser plain foolish.
Few think the idea crazy now. Expedia, which Microsoft sold in 2001, has become the world’s biggest travel agent see chart. Last year, through brands such as Trivago, Hotels.com and Hotwire, as well as its eponymous operation, its gross bookings were $39.4 billion. The third-largest travel agent is also an online firm: Priceline, whose brands include Booking.com, made reservations worth $39.2 billion in 2013. Last year online travel agents OTAs had combined bookings of $278 billion, according to Euromonitor, a market-research firm.
Indeed, when it comes to reserving flights, hotel rooms and rented cars for holidaymakers, the online-travel market looks quite mature in many rich countries. PhoCusWright, another research firm, reckons that online booking now accounts for 43% of total travel sales in America and 45% in Europe. Since much of the rest is accounted for by business trips handled by specialist corporate-travel agents such as Carlson Wagonlit, scope for the OTAs’ market to grow seems limited. That explains Priceline’s purchase, announced on June 13th, of OpenTable, a restaurant-reservation website, for $2.6 billion: it sees this as a way to earn commission on another chunk of tourists’ spending. There are some big markets where online bookings have yet to take off. Germans still typically arrange their holidays through traditional travel agents. Although the Chinese now spend more on travel in aggregate than any other country’s population, in 2012 they booked only 15% of their trips by value online, says PhoCusWright. It thinks this will rise to 24% by 2015, making the Chinese online-travel market worth around $30 billion. Much of the expansion will be driven by ambitious local firms. Ctrip, the biggest, makes most of its money from air tickets and package tours to Greater China. But as Chinese tourists become more intrepid—ranging farther afield and no longer shuffling around in big tour groups—online hotel bookings are becoming more important. Ctrip’s hotels division has grown at an average of 25% a year for the past five years, according to Trefis, a stockmarket-analysis firm, and had revenues of $366m in 2013. It will not be long before it eyes Western markets more keenly.
To stay ahead, the big OTAs are having to follow their customers as they switch from desktop computers to smartphones and tablets. By 2017 over 30% of online travel bookings by value will be made on mobile devices, thinks Euromonitor. In part this will be the result of OTAs making their apps more appealing by, for example, adding location services that help travellers find the nearest rooms and restaurants. But it is also because the way people plan trips is changing. It generally takes a family more than three weeks to book a holiday, from deciding to travel to clicking the “pay now” button, in which time they may visit seven websites, says Faisal Galaria of Alvarez & Marsal, a consultant. In future, travellers are likely to become more impetuous, he says, and smartphones appeal to those making last-minute bookings.
For those still surfing for holidays on their PCs, other technological advances are on the horizon. Amadeus, which supplies the software behind many OTAs’ booking systems, is developing new ways to entice customers to the agents’ websites. One is to use browser-tracking technology to aim personalised ads at consumers, showing them the latest prices for trips in which they had previously shown an interest. Such targeted advertising has been common among non-travel retailers for some time. However, until now it has proved trickier for the travel business as it involves collating frequently changing data from many airlines and hotels.
Even with help from such marketing tricks, the smaller OTAs will find it increasingly hard to compete with the big two. Online travel is an industry in which size counts. The scale of Expedia and Priceline means they can sign up more hotels, and negotiate better prices, than their smaller rivals. This is a business that requires heavy spending on marketing, which hands another advantage to the big two. OTAs will spend more than $4 billion this year on digital advertising, according to eMarketer, also a research firm; and Priceline and Expedia will account for over half of this. Some smaller rivals may find profitable niches, but in general it will be hard for them to grow. Whenever they open a door, “there are already two 800lb gorillas fighting it out in the room,” says Mr Galaria.
Not only gorillas. The observant may also spot an elephant in the room. In 2010 Google bought ITA, a maker of flight-search software, and the next year it launched a flight-comparison website. The giant search company has also improved its hotel listings by including photographs and virtual tours, as well as price information. It has the clout to disrupt Expedia and Priceline if it so wishes. It has not done so yet. Google, many believe, would be loth to cannibalise such a large chunk of its main business: analysts think the big two will account for as much as 5% of its advertising revenue this year.
So besides Ctrip, perhaps the biggest threat to the big two OTAs is TripAdvisor, a popular travel-reviews site spun off by Expedia in 2011. This month it said travellers would be able to book hotels directly through its smartphone app. Weeks before Priceline’s deal with OpenTable, TripAdvisor announced it was buying La Fourchette, another online restaurant-booking service. The online-travel market is consolidating fast, but so far holidaymakers need not worry about a lack of options
Early Movers Can Cement Significant Advantage by Personalizing the Travel Journey
According to a New Report by BCG and Facebook BOSTON, June 19, 2014—
Although it was one of the first industries to be disrupted by digital commerce, travel and tourism has been slow to embrace the opportunities offered by mobile technology, according to Travel Goes Mobile, a new report by The Boston Consulting Group and Facebook. This reticence has left the playing field wide open for early movers. Those that miss the shift will find catching up increasingly difficult once consumers patterns of behavior and relationships with mobile apps and the companies behind them solidify.
“Early movers in travel, especially those companies that design successful mobile apps, have the opportunity to establish lasting advantage,” said Jason Guggenheim a BCG partner and coauthor of the report. “For many travel suppliers, this means an opportunity to strengthen or reestablish customer relationships that have been eroded by online intermediaries. For intermediaries, it means rethinking their offerings to protect the positions they have established on the PC. Winners will need to understand their customers’ mobile-usage trends, tailor their marketing, and even adapt their operating models accordingly.”
Estimates of the number of apps installed on the average smartphone vary, depending on who is doing the counting, but they range from about 25 to about 40. So far, only a few travel-company apps are used regularly by a significant share of consumers. Most travel companies have converted fewer than 20 percent of their PC customers to mobile-app usage, and no travel app has established itself as the go-to resource on more than 2 percent of smartphones.
The report argues that the biggest opportunity for travel companies is to cement relationships with customers—especially a company’s best, high-value customers—by offering them truly personalized service and experience. Mobile apps generate information related to usage, searching, time of use, location of use, spending, preferences, friends and followers, and countless other kinds of data. The more a travel company engages customers through mobile devices, the more information it can synthesize to personalize messages and the in-app customer experience. This information can also be used to segment the company’s best customers on the basis of frequency of use and expenditure, among other criteria, including their current location, time of day, and status.
“The tools and capabilities available to travel companies continue to expand as digital and mobile technologies improve,” Lee McCabe, global head of travel strategy at Facebook and a report coauthor, said. “This paper reveals the extraordinary role mobile technology can and will continue to play in travel and the tremendous value it can add to travel companies and travelers’ experiences. Sophisticated apps, combined with rich data and targeting capabilities, allow for personalized marketing at scale. The ability to perfectly time and tailor messages on the basis of rich data is very powerful from a business standpoint—for both brand- and direct-response-related objectives.”
The single log-in functionality offered by Facebook, for example, enables seamless movement among apps, eliminating the need to log in for each visit. Innovations such as app install ads, conversion ads, and deep links further simplify moving among multiple apps, which is great for the user and generates tremendous data for marketers.
The report points out that mobile “gatekeepers” have the power and sophistication to vastly augment travel companies’ own data-collection and analysis efforts with the vast amount of consumer information they manage. The biggest gatekeepers today are the device manufacturers and the companies behind the main mobile-operating systems and app stores, app-to-app marketers, and social networks and messaging app operators. The top three—Facebook, Google, and Apple—currently account for half of total app usage.
The report argues that, in terms of apps, travel companies want their customers to do three things: discover and download their apps, engage with them at multiple stages of the travel journey, and find the experience so simple, satisfying, and useful that they want to come back and use the apps again—to the exclusion of other available travel apps.
This means that travel companies need to design apps with functionality that customers—especially high-value customers—prize and that other travel companies cannot match, market the app effectively for both ease of installation and engagement, experiment and bring out new functionality quickly to keep the app fresh and make it more useful, and make the experience more personal over time.
To download a copy of the report, please go to www.bcgperspectives.com.
It has been an absolute privilege today to take part as the moderator in the launch of a landmark study and event organised by Amadeus. Their new report on the Future of Travel in the GCC is undoubtedly one of the best ever and most important travel industry related reports conducted in the region.
Drawing on the expertise of industry leaders across 22 travel brands and insights from over 1,000 end travellers this report describes the key effects that will shape the future of travel for this exciting and important part of the world.
The headline “Big Effect” is that rapidly changing demographics will fuel a major shift in GCC travel over next 15 years. The coming-of-age of the GCC’s youthful population will reshape the travel industry in the region over the next fifteen years, as digital natives instinctively turn to mobile technologies and social media to plan, book and manage travel.
Today, nearly 25% of the GCC population is under 15 years of age, and as this demographic becomes tomorrow’s decision makers, it will shake up traditional behaviours to become increasingly self-directed. As outlined in the Amadeus-commissioned new report, Shaping the Future of Travel in the Gulf Cooperation Council (GCC): Big Travel Effects, additional unfolding demographic forces such as a steady inflow of expatriate workers, robust natural population growth and a growing middle class, will combine to drive a new and divergent set of travel behaviours and needs in the region.
The report, written by Frost & Sullivan and Insights and commissioned by Amadeus, examines and contextualises the various ways a new travel landscape will develop in the Gulf region over the next fifteen years.
“The Gulf region is poised for a new era of travel as investment in infrastructure, new tourism sectors, and governmental initiatives to ease intra- and extra-regional movement make the GCC more attractive to leisure and business travellers,” said Antoine Medawar, Vice President, MENA, Amadeus. He added, “The travel providers who address the nuanced needs of the region’s population stand to thrive in the coming decades. At Amadeus our people, our technology and our innovation are dedicated to helping our customers and partners to shape the future of travel in this region.”
Further key findings include:
Economies in the GCC are diversifying beyond oil, and specialist tourism sectors such as cruise, meetings and conferences and medical tourism play a prominent role in this diversification. As a result, GCC countries have maintained an average GDP growth of over 5% in the past decade, with a greater increase expected in the future.
Tourism will have a trickle-down effect into other sectors, furthering economic growth and diversification. Hospitality and construction in particular will benefit as the number of travellers entering or passing through the region increases -Qatar expects 3.7 million tourists in 2022 due to the FIFA World Cup and is investing $20 billion on tourism infrastructure and $140 billion on transport.
The GCC is working to make travel easier, both within the region and outbound. The difficulty of obtaining a visa has been the main reason for 33% of travellers surveyed not taking trips as often as they would like. By improving accessibility within the region and abroad, the number of intra-regional travellers is expected to increase four-fold by 2030.
“Travel in the Gulf region is changing. Economic diversification and a move from oil is an important driver, but there are many more subtle factors also at play. Changes in population and geopolitical pressure to open borders and make movement easier are also impacting the future of travel here,” observed Mona Faraj, Managing Partner, Insights.
The report was informed by a survey of some 1,000 travellers from the region as well as interviews with thought leaders in the travel industry. It highlights the technologically savvy and growing population of the GCC and predicts a travel landscape will develop in the region that is highly connected, personalised, and sustainable.
To download a free copy of the report “Shaping the future of Travel in the GCC: Big Travel Effects” please visit:
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Facebook has ambitious plans to connect the two-thirds of the world that has no net access, using drones, satellites and lasers.
The move was announced on the social media platform by founder Mark Zuckerberg.
It will put it in direct competition with Google, which is planning to deliver net access via balloons.
Both of the net giants want to extend their audiences, especially in the developing world.
Details about Facebook’s plan were scant but it will include a fleet of solar-powered drones as well as low-earth orbit and geosynchronous satellites. Invisible, infrared laser beams could also be used to boost the speed of the net connections.
Last year Facebook and other technology companies launched internet.org to help bring net access to the huge swathes of the globe that are still not connected.
The social network has already teamed up with telecoms operators in the Philippines and Paraguay to double the number of people using the internet in that region.
“We’re going to continue building these partnerships, but connecting the whole world will require inventing new technology too,” Mr Zuckerberg said in his post.
To bring the project to fruition, Facebook has set up a Connectivity Lab that will include experts in aerospace and communication technology, from Nasa’s jet propulsion lab and its Ames research centre.
It has also hired a five-member team that worked at British firm Ascenta, whose founders developed the Zephyr, which holds the record for the longest-flying solar-powered unmanned aircraft.
Earlier this month there were rumours that the social network was interested in buying drone-maker Titan but there was no mention of this in the announcement.
The plans form part of Facebook’s ambitions to extend its reach beyond its 1.2 billion audience, thinks Ovum analyst Mark Little.
“Zuckerberg is pushing this as an altruistic way of connecting more people in the world – the net as a basic human right – but by increasing the total of net connections it also increases Facebook’s members and the amount of sharing done, which in turn creates more space for advertising and drives its revenues in a massive way.”
Last year Google announced similar plans to develop solar-powered balloons to deliver net access to remote areas of the world.
Code-named Project Loon, 30 of the super-pressure balloons were launched in New Zealand in June.
“It is perhaps aptly named,” said Mr Little.
“It is going to have a lot of political hoops to jump through. Some governments won’t put up with having that fleet over their airspace.”
Mr Little thinks that for both Facebook and Google, the technology in their projects may prove to be “the easy bit” and that the real challenge will lie in persuading governments around the world that its alternative networks are viable.
International tourist numbers surged to nearly 1.1 billion in 2013 with growth in the Asia-Pacific region leading the industry to a strong year despite global economic troubles, the World Tourism Organisation says.The number of international tourist arrivals grew by five per cent from the previous year to 1.09 billion in 2013, said the Madrid-based UN body.That figure is expected to grow again by 4.0-4.5 per cent in 2014, the organisation said in a report.Tourist arrivals rose at the fastest rate in the Asia-Pacific, where numbers were up by six per cent to 248 million, it said.Europe, however, remained the biggest destination, with international tourist arrivals up five per cent to 563 million.Among countries of origin, Chinese tourists – already leading the way with expenditure of $US102 billion $A116.59 billion in 2012 – pushed up total spending by 28 per cent in the first nine months of 2013, the UN body said.Tourists from Russia, the fifth largest country of origin of international tourists, drove up spending by 26 per cent in the same period, it said.
Tui Travel is to launch its biggest ever turn-of-year advertising campaign for Thomson and First Choice, with TV ads set to air pre and post-Christmas.
The First Choice ad goes live on December 23 while the Thomson ads start on December 27 in a deliberate bid to differentiate the brands.
At two minutes, the Thomson ad is its longest ever and is, in effect, a mini film using special effects seen in Hollywood blockbuster Pirates of the Caribbean.
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