The Travel Market Digest February 2015

The Travel Marketing Digest 11th February 2015 – Volume V, issue 2

Welcome to the latest edition of The Travel Marketing Digest and some of the top travel marketing stories over the last few weeks.

In this edition….

  • ReboundTAG’s innovative microchip baggage tracking solution: and a cool corporate giveaway…
  • Marriott’s GoPro marketing campaign
  • Hotelplan to buy Kuoni Switzerland?
  • City visitor rankings report by Euromonitor
  • How Google Now is improving travelUNWTO reports a 4.7% growth in travellers, 1,138 million arrivals in 2014
  • The survival of travel agents
  • World Marketing Group to promote Destination Asia in North America
  • Expedia acquires Travelocity
  • Marketing travel to US Affluent
  • iBeacon technology and travel marketing

The Travel Marketing Digest

Nobox Leads the Creation of Marriott’s Innovative Marketing Program with GoPro | Business Wire

marriott(BUSINESS WIRE)–Nobox, a leading social marketing agency, is the creative force behind the innovative marketing program between Marriott Hotels, Marriott International’s flagship brand, and GoPro. “Our creative goal is to engage Marriott’s guests and empower them to share richer, more immersive content,” said Jayson Fittipaldi, Chief Creative Officer of Nobox. “Ultimately, the surprise and delight that guests who participate experience and the amazing content that they are sharing with the world continues to elevate the Marriott Hotels brand among Millennial travelers. The alchemy of putting GoPro’s in the hands of eager guests have resulted in social marketing gold for Marriott.”

“Nobox’s continuous contribution to our success has transcended the scope of a social marketing agency to become Marriott’s creative agency for the region.”

This match made in “marketing heaven”, invites Marriott Hotels guests to take GoPro HERO4 cameras for a “test-drive” and capture their travel experiences in a richer, more immersive way. Guests are encouraged to share on social media using the hashtags #GoPro, #TravelBrilliantly, and #ViajeGenial for a chance to be featured on http://www.travelbrilliantly.com/gopro, Marriott’s social media profiles, and even on a dedicated TV channel in the in-room entertainment system of participating hotels. To celebrate the launch of the program, the most inspiring content submitted by guests will be selected to win prizes such as vacation stays, Marriott Rewards points and GoPro cameras.

“Travelers tend to be more active in social media during and after their trips because it elevates their profile. That said, smartphones will not capture our most adventurous travel experiences like parasailing, diving, etc. Combining Marriott and GoPro creates a perfect setting for Human-to-Human marketing; transforming happy customers into a brand ambassador,” said Carlos Garcia, CEO of Nobox.

“This program is a perfect example of how Marriott continues to innovate and attract the next generation of travelers,” said Craig S. Smith, President of the Caribbean and Latin America at Marriott International. “Nobox’s continuous contribution to our success has transcended the scope of a social marketing agency to become Marriott’s creative agency for the region.” The execution of this program spans across many touch-points beyond digital and social. Most notably, the program is embedded in the hotel experience and has dedicated Marriott associates at every participating hotel. Nobox even created a program management tool for Marriott associates to keep track of GoPro cameras and engage participating guests at the property level.

Watch the video: http://youtu.be/3IJd0OS6wE4

Visit the website: http://www.travelbrilliantly.com/gopro

Marriott press release: http://news.marriott.com/2015/01/gopro-marriott.html

via Nobox Leads the Creation of Marriott’s Innovative Marketing Program with GoPro | Business Wire.

New City Destination Ranking Released by Euromonitor International

EuromonitorMarket Research Company Euromonitor International released today a new ranking of the top 100 city destinations in terms of international tourist arrivals for 2013.

The top three cities on the list remained unchanged from 2012: Hong Kong, Singapore and Bangkok. These Asian mega-cities benefited from their locations in heavily populated areas, large economies and proximity to China.

While outbound travel from China is heavily influential for many of the cities listed, inbound tourism to China remains sluggish. China does remain the leading country for the number of cities featured in the top 100 with a total of eight. However, with the exceptions of Suzhou and Guilin, these cities experienced a decline in arrivals for 2013 due to an uncertain economic outlook, pollution concerns and tensions with Japan—a key source market.

Looking forward, city destinations may want to turn to the US market, the second largest source for outbound travel in 2013. The US has been a relatively mature market with outbound travel peaking in 2007, followed by yearly declines until recovery began in 2012. But a better economic environment, a stronger dollar and lower gas prices will likely boost outbound travel from the US.

“Cities in neighbouring countries to the US such as Central America, Mexico and the Caribbean will most likely see growth in US travellers,” according to Euromonitor’s Head of Travel and Tourism, Caroline Bremner. “Western European cities will likely benefit too, thanks to strong cultural positioning and historical ties to the US.”

Top Five Cities Destination Rankings Listed Below:

  • Hong Kong, Hong Kong (25,587.3 arrivals)
  • Singapore, Singapore (22,455.4 arrivals)
  • Bangkok, Thailand (17,467.8 arrivals)
  • London, United Kingdom (16,784.1 arrivals)
  • Paris, France (15,200.0 arrivals)

via New City Destination Ranking Released by Euromonitor International.

Asian cities account for a third of the most visited cities

Over a third of all destinations are located in the Asian Pacific region, illustrating strong regional travel trends within Asia, as well as the growing connections throughout the region. Within the top 10, six of the leading cities are from Asia, with the top three remaining unchanged from last year – Hong Kong, Singapore and Bangkok. These three Asian mega-cities serve as some of the top destinations for Chinese travellers as well as being air network hubs. Bangkok showed the strongest growth among the top 10 cities, up 10.4% from 2012 to reach 17.4 million arrivals, despite political unrest breaking out at the end of the year. Chinese visitors are key to Thailand’s booming arrivals, with close links between the countries as well as efficient and short transport connections. A new Asian arrival on the list is the South Korean city of Jeju with 1.77 million visitors, growing 46.3% in 2013.

Chinese visitors replaced Japanese arrivals as the most important source market for South Korea in 2013. About 70% of international visitors to Jeju Island are Chinese, aided by the no-visa policy as well as improved cruise facilities, direct flights from the Chinese mainland, and a plethora of duty-free shopping opportunities. While outbound Chinese tourism is hugely influential in many of the cities listed, inbound tourism remains sluggish. China does remain the leading country for the number of cities featured in the top 100, with a total of eight cities. However, with the exceptions of Suzhou and Guilin, all these cities experienced a decline in arrivals for 2013. Beijing in particular continues to be affected by the slowdown in the Chinese economy as well as pollution.

India’s leading cities, Delhi and Mumbai, though, experienced growth of 27% and 22%, respectively, in 2013, with both of them receiving around 3.6 million visitors.  The depreciation of the rupee against the US dollar made it much cheaper to travel to India in comparison to previous years, aiding inbound tourism.

GCC countries are the shining stars of the Middle East

The GCC counties are well represented by four countries, Bahrain, Qatar, Saudi Arabia and the United Arab Emirates, all having cities in the top 100. The latter is home to Dubai, the region’s starTweet-This city for arrivals with a total of 10.5 million visitors, up 7% on the previous year. The United Arab Emirates government has worked hard in recent years promoting the country as a safe family tourism destination, which has benefitted Dubai, and also neighbouring emirates Abu Dhabi and Sharjah, which also feature in the top 100. These cities have also picked up a lot of arrivals who previously would have opted for destinations such as Egypt before its recent instability.

Saudi Arabia features three cities in the top 100: Mecca, East Province and Riyadh. 2013 was a strong year for inbound tourists visiting Mecca for religious pilgrimage, with arrivals reaching 7.5 million due to massive expansions at the holy mosques as well as a growing number of hotels. This is in spite of concerns about the MERS virus, which was first reported in Saudi Arabia in 2012.

Doha, in Qatar, was the Middle Eastern city showing the best growth in 2013, reaching 3.8 million arrivals, up by 21.2%. Business tourism is the mainstay of arrivals, due to Qatar’s substantial oil and gas industry, but leisure tourism is growing slowly with the country focusing largely on cultural and sporting attractions to entice visitors.

Europe courting Russian and Chinese visitors

London and Paris remain Western Europe’s leading cities for arrivals with 16.8 million and 15.2 million, respectively, in 2013. Turkey features strongly in the list, with Antalya, Istanbul and Artvin all showing good growth for the year. Russian arrivals were key to this growth, with Antalya hosting 75% of all visitors from Russia to Turkey. Visas are not required for Russians staying less than 60 days in Turkey, and Antalya provides beach locations such as Kemer, Alanya, Belek, Kas, and Side, which are popular with Russian tourists. Zurich in Switzerland has one of the highest growth rates for arrivals in Europe, at 23.6%, and it welcomed 2.26 million arrivals in 2013. Increasing numbers of tourists from China and Russia are visiting the city, aided by the fact that Switzerland is within the Schengen visa zone, and offers excellent transportation links and air connections.

A reshuffling of future source markets

The long-heralded rise of the Chinese outbound traveller is set to continue with China overtaking Germany as the number one source of outbound international travel in 2017. Nearby Asian cities, especially those located in countries with relaxed or no visa requirements, will benefit immensely. However, Chinese travellers are becoming more adventurous – travelling farther afield and exploring on their own as opposed to in a tour group. It is important for cities to understand the changing Chinese travellers’ desires and build a strong marketing message to court them.

The outlook for Russian travellers was equally bright just a year ago, but the deteriorating economic situation and the rapid decline of the rouble now call into question how strong a source market Russia will be, especially for city destinations in important sun destinations such as Turkey, Egypt and Thailand.

However, city destinations may want to turn their eyes to the US market, which was the second largest source market in 2013. The US has been a relatively mature market, with outbound travel peaking in 2007, followed by yearly declines until a recovery began in 2012. But a better economic environment, a stronger dollar and lower gas prices will likely boost outbound travel from the US. According to the Office of Travel and Tourism Industries, outbound travel from the US was up by Tweet-This9.6% year-to-date in October 2014 – a significant increase for a mature market. The benefit, though, may mostly accrue in cities in neighbouring countries in Central America (including Mexico) and the Caribbean, but Western European cities will likely benefit too thanks to strong cultural positioning and historical ties.

Uncertainty is the only certainty

The shift towards a more connected world is both a positive and a negative for international travel. The opportunities to attract visitors from new source markets are vast, but can quickly turn into challenges, whether it is due to geopolitical unrest, economic decline or natural disasters. It is important for city destinations to be prepared to quickly respond to the constantly evolving global landscape to have their tourism industries thrive.

 

The travel agent is not dying

Travel AgenciesA recent research shows that what is known as “The Internet killed the travel agent” is not true. The travel agent is not dying as well. In 2014, 18 percent of American travelers used traditional travel agents compared to 12 percent in 2013.

Tech savvy millennials could easily use online travel aggregators, such as Expedia or Priceline, to book a leisure trip, but they’re choosing to use travel agents instead. In 2014, 28 percent of millennials used a traditional travel agent, compared to only 13 percent of Baby Boomers (ages 50 to 65) and 15 percent of Generation X (ages 36 to 49).

Baby Boomers, on the other hand, are not leery of using on-line travel tools because they’re repeating past travel experiences, such as returning to the same hotel or a place they’ve previously visited. They’re a more seasoned traveler and don’t need a travel agent to guide them through decisions.

These are the results of a recent study by MMGY Global, a Kansas City-based travel and hospitality marketing firm.

Clayton Reid, CEO of MMGY Global, said, “One of the most counter intuitive facts that comes out of our research is that millennials are actually using traditional travel agents at a higher rate than a lot of age groups.”

MMGY doesn’t see the trend toward travel agents ending anytime soon. In fact, the resurgence of travel agents made MMGY’s top 10 list of travel trends for 2015. One reason is travel agencies have perfected what they do best.

In the 1990s when online travel aggregators gained traction, a number of travel agencies either went out of business or began focusing on a niche, such as focusing solely on the cruise industry or trips to Europe. Travel agencies became specialists in the industry, which made them stronger, Reid said.

“They essentially became more valuable to the people who might use them because they were forced to become better at what they do,” he said.

MMGY’s research found that those who booked a leisure trip through a travel agent within the last year were more satisfied with their overall trip than those who booked through online third parties, such as Orbitz. In addition, three out of four leisure travelers said travel agents are in the best position to make recommendations for their travel.

“We’re seeing very high satisfaction levels with using a travel agent, which helps build momentum,” Reid said. “People have said they’ll go back and use a travel agent again because it’s making their trip better.”

Source: Kansas City Business Journal

via The travel agent is not dying.

World Marketing Group to lead business development for Destination Asia in North America

Destination_AsiaDestination Asia announces, effective 1 February 2015, World Marketing Group will lead its North American incentive travel and event business development for the Asian region. The new alliance offers customers access to highly skilled Asian operations, backed by in-market sales and marketing support and expertise.

“We are honored to have World Marketing Group represent the growing incentives and events business to Asia from North America, their specialty for over three decades,” stated Jim Reed, CEO Destination Asia Group. “Our dedicated meetings and events divisions are at the heart of the Destination Asia Group, aligning our services with the growing demand of business group travel to Asia. Our shared legacy of market knowledge and customer service in incentive travel and event management elevates our offering to effectively meet the growing customer expectations of this region.”

“Our 35 years of working with North American clients on their Asian programs aligns with Destination Asia’s superbly delivered customer experience,” said Jane Schuldt, CIS, CITE, President, World Marketing Group. “We believe Destination Asia’s laser focus on Asia-only operations positions them to deliver unparalleled value to customers seeking unique experiences. We look forward to putting the force of our expertise behind their initiatives.”

via World Marketing Group to lead business development for Destination Asia in North America.

Expedia Acquires Travelocity From Sabre for $280 million

By: MARTIN BLANC

Sabre & TravelocityPublished: Jan 23, 2015 at 3:40 pm EST

The online tourism market was shaken today with the news of Expedia Inc. (NASDAQ:EXPE) acquiring the online travel agency, Travelocity, from Sabre Corp. (NASDAQ:SABR) for $280 million in cash. The deal is the continuation of a strategic marketing agreement between Expedia, Inc. and Travelocity, which enables the former to power the technology platforms for the latter’s websites in US and Canada. This agreement allows access to Expedia, Inc.’s supply as well its customer service and support program.

Expedia is one of the pioneers of online travel industry, which, over the years, has cemented its position and made an extensive brand portfolio, covering many aspects of the tourism and travel market. It provides travel information, and hotel and flight bookings, as well as localized websites in 31 countries to cater to local audiences, amid other services.

Expedia, Inc.’s President and CEO, Dara Khosrowshahi, commented on this development saying: “Travelocity is one of the most recognized travel brands in North America, offering thousands of travel destinations to more than 20 million travelers per month, The strategic marketing agreement we’ve had in place has been a marriage of Travelocity’s strong brand with our best-in-class booking platform, supply base, and customer service. Evolving this relationship strengthens the Expedia Inc. family’s ability to continue to innovate and deliver the very best travel experiences to the widest set of travelers, all over the world.”

Sabre is a leader in the global travel industry and provides technology, data, software, and distribution solutions. The company’s services are utilized by many players in the tourism and travel industry, from airlines to hotel management, in ensuring the success of operations such as reservations, revenue tracking, and flight and crew management. The President and CEO of the company, Tom Klein, acknowledged that Sabre and Expedia have had a successful partnership in boosting Travelocity’s business, and called today’s decision to be in the interest of the company.

Expedia, Inc. stock is up 2.16% today trading at $88.56, while Sabre stock is up 1.29% trading at $20.75 as of 3:25 PM EST.

via Expedia (EXPE) Acquires Travelocity From Sabre (SABR) For $280 million.

Marketing watch: Digital marketing trends for 2015 [INFOGRAPHIC] – TNOOZ

signal-2015-predictions-infographic11The new year begins well-intentioned on the marketing front. Marketing plans, heavily crafted and finessed late in 2014, begin to be implemented – only to discover that the landscape has already shifted, making said plan obsolete.

The cross-channel marketers at Signal have put their marketing tools to the grindstone of reality, with the result being some of the most important digital marketing trends of the year.

From beacons to data cooperatives that allow a consistent higher-level understanding of the customer, these trends continue to push marketers to become technologists. So rather than simply creating strategies to leverage OPP (Other People’s Platforms), the successful marketer must become a voice for marketing technology organization-wide.

via Marketing watch: Digital marketing trends for 2015 [INFOGRAPHIC].

2014 in review

The WordPress.com stats helper monkeys prepared a 2014 annual report for this blog.

Here’s an excerpt:

A New York City subway train holds 1,200 people. This blog was viewed about 6,300 times in 2014. If it were a NYC subway train, it would take about 5 trips to carry that many people.

Click here to see the complete report.

Expedia: Key Partnerships and Acquisitions in 2014 – Trefis

Expedia logoExpedia has experienced a healthy 2014.  The world’s second largest online travel services provider (in terms of gross booking volume of $39.2 billion) displayed a 22% year-on-year increase in revenues for the first nine months of 2014, to $4.4 billion. The key factors propelling this growth were the healthy performance of the hotel room nights and air tickets segments. The top line growth, combined with the disciplined investments in selling and marketing, led to a solid bottom line. Net Income for the first nine months of 2014 increased by 141% year-on-year to $332 million.

In this article, Trefis discuss the major acquisitions and partnerships undertaken by Expedia in 2014. They describe the strategic significance of the deals, and how these will lead to further growth in the future.

Extended Partnership With HomeAway: Expedia Forays Further Into The Vacation Rental Space

In September 2014, Expedia declared that it will continue its partnership (initiated in October 2013) with HomeAway, the world’s largest vacation rental website. HomeAway services account for approximately 15% of the U.S. and European vacation rental bookings market. [1] HomeAway’s website has more than one million live listings in 190 countries. [2]

Expedia would now be able to list 115,000 HomeAway vacation rental properties on its U.S. website. Vacation rentals are privately owned residential properties that property owners and managers rent to travelers on a nightly, weekly, or monthly basis. According to a study by PhoCusWright, the market for vacation rentals in the U.S. stood at $23 billion in 2012, lower than its levels prior to the recession. However, the share of online sales in vacation rentals doubled from 12% in 2007 to 24% in 2012, and this is expected to increase to 30% by 2014. [3]

Expedia believes that the vacation rentals listing will complement its existing business and will not undermine its hotel bookings, which currently accounts for more than 70% of its revenue. While the partnership will give HomeAway vacation rental owners and property managers exposure to more than 13.4 million monthly visitors on Expedia, Expedia users will get the benefit of being able to bundle home rentals with flights, cars and other travel bookings offered through the website.

Expedia’s Wotif Acquisition: Ensuring Market Dominance In Australia And New Zealand

In November 2014, Expedia completed its acquisition of Australia-based Wotif Group for $612 million. Wotif Group is a prominent player in the Asia Pacific market with a host of travel brands under its umbrella, including Wotif.com, lastminute.com.au, travel.com.au, Asia Web Direct, LateStays.com, GoDo.com.au and Arnold Travel Technology. Wotif’s portfolio focuses on hotel and air, offering consumers more than 29,000 bookable properties across the globe. The group currently operates from Australia, China, Indonesia, Malaysia, New Zealand, Singapore, Thailand, UK and Vietnam. [4]

Wotif was Expedia’s major rival in Australia and New Zealand. With 1.3 million hotel reviews on its platform, Wotif had a market leadership in hotel reviews in the Australia New Zealand (ANZ) market. According to September 2013 data from Experian Hitwise, among top travel websites in Australia, Wotif held the second position and Expedia, the third position. Also, among top New Zealand travel websites, Expedia enjoyed the first position and Wotif, the second. [5]

According to a report by PhoCusWright, the Asia Pacific (APAC) market overtook Europe to become the global leader in regional travel in 2012. The Australia-New Zealand market accounted for 17% of APAC’s online travel market and earned $13.7 billion in online gross bookings. For 2015, the market size is estimated to be around $126.6 billion. [6]

Hence, both now and in the future, Asia Pacific will be a strategically important sector for online travel companies. The ANZ market is the third largest market in the APAC region, and Wotif is a prominent player in the ANZ market. Hence, we expect the acquisition to propel Expedia’s growth in the ANZ market and this in turn would be a contributing factor in establishing Expedia’s dominance in the APAC market.

Expedia’s Auto Escape Acquisition: Boosting The Car Rental Service Segment

Expedia acquired French car rental company, Auto Escape, in June 2014. The acquisition increased its exposure to the $36.9 billion global car rental industry, which is expected to grow at a compounded rate of 13.6% to reach $79.5 billion by 2019, according to Transparency Market Research. [7]

Auto Escape offers car rental services from over 300 car rental suppliers in 125 countries, and has a fleet of over 800,000 vehicles. It is estimated that Auto Escape’s revenues increased fivefold in the last five years to €120 million ($160 million). [8] Auto Escape became a part of the CarRentals.com brand, a business unit managed by Expedia’s Hotwire Group.

Although the contribution of car rentals and cruises to the valuation of Expedia is in low single-digits, we believe that the Auto Escape acquisition will help it sell more vacation packages and destination services since car rental is an integral part of such offerings.

via Expedia: Key Partnerships and Acquisitions in 2014 — Trefis.

Press Release: Over 30 travel marketing experts to provide insights at The Travel Marketing Forum, Dubai 24th Sept

PRESS RELEASE 

Middle East’s Premier Travel Marketing Event to convene in Dubai on 24th September

Insights from over 30 leading travel marketing experts

Dubai Tourism, Expedia, Yahoo, SkyTech and IBEX Global added to the conference content

Travel Marketing leaders to gather in Dubai to discuss a diverse yet interrelated set of topics

 

Press Release: Dubai – 18th September 2014 

In just under a week the Middle East’s premier Travel Marketing event will take place in Dubai.

Some of the world’s leading travel brands and marketing services providers will gather for a day of knowledge sharing and business development.

 

Amadeus, a leading travel technology company, will present a report on Middle East booking trends, internet penetration, smart phone usage, booking and  payment patterns, booking channels and social media trends in the travel sector.

Illusions Online, a Dubai based travel business technology provider for the leisure sector, will talk to their new generation cloud based leisure packaging capability and their strategy to create a global online travel exchange.    

 

Other speakers come from leading brands such as Facebook, Google, TripAdvisor, Jumeirah and Emirates.

The programme also includes interviews with the Head of Strategy for dnata travel and the CEO of The Entertainer.  Technology companies such as SkyTECH Solutions and Comarch will share their views on Big Data and Customer Relationship Management in the travel sector.

In a key panel on destination marketing, Dubai Tourism will highlight the power of local advocacy.

Yahoo will present a case study on how they have assisted travel companies with their online exposure and IBEX Global will highlight their recent regional launch of their Customer Experience Management Technology.

Mohamed Al Rais, Deputy CEO of Al Rais Travel, will be joined by representatives from Expedia, destinia.com and e-Tourism Frontiers on a panel debate on the development of the online travel market.

Porton Group will reveal a revolutionary technology that can be used by the travel sector to screen travellers for potentially contagious diseases without significant disruption to the airline check-in process.

Duncan Alexander, Director at The Travel Marketing Store stated “We have been delighted by the response that we have received from the travel marketing community to the concept of our event. The content is truly exceptional and we look forward to what will be an enlightening day”.

Over 40 companies will be represented at this year’s event which will also hold “The Global Travel Marketing Awards” and “The Market Place for Travel Marketing Services” where buyers and suppliers meet to discuss new services.

via Press Release: Over 30 travel marketing experts to provide insights at The Travel Marketing Forum, Dubai 24th Sept.