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1. Market Analysis
Travel
Nikita Kosholkin, Empatika
February 22, 2013

2. About this analysis
• This analysis contains core statistics and
trends on Travel category worldwide
• The goal of this presentation is to nudge us to
think about possible ways of development
• P.S. there are links to the resources on each
slide in «speaker’s notes».

3. Trends

4. UNWTO: one of the key reasons why tourism
will be a strategic pillar of any truly sustainable
economic future.
«Today, nearly half of the one billion
international tourist arrivals in the world are to
emerging and developing economies, where those
arrivals create and maintain jobs and
income for those most in need», - UNWTO
Secretary General Dr. Taleb Rifai,
http://skift.com/2013/01/24/the-future-of-tourism-in-the-new-new-economy/

5. IATA Airline Industry Forecast 2012-2016
• International passenger numbers are
expected to grow from 1.11 billion in 2011 to 1.45
billion passengers in 2016
• Five of the 10 fastest growing markets for
international passenger traffic are among the
Commonwealth of Independent States or were part
of the former Soviet Union with the others in Latin
America, Africa and the Asia-Pacific region
• By 2016, the top five countries for
international travel measured by number of
passengers will be the United States, the United
Kingdom, Germany, Spain and France
http://www.iata.org/pressroom/pr/pages/2012-12-06-01.aspx

6. Skift: 11 of 13 trends
1. Everyone wants a chinese tourist (from 16,6 mln in 2002 up to 86 mln
people/year in 2012. In 2020 - 200 mln. Growth in their spending abroad 30% y/y
2. Ancillary fees (Airlines) are the new normal. Passengers want to see
all new fees being added on.
3. Last-minute mobile hotel booking (expect more single-function
startups)
4. The rise of price transparency (i.e. if price goes down - re-book it
automatically, e.g. tingo.com)
5. Food tourism
6. Airports as destinations («new holiday shopping mall»?)
7. Destination branding through movies («did you know - excursion»)
8. Digital maps are one of travel’s key battlegrounds
9. Personal in-flight entertainment through mobile devices
10. Blurring of business and leisure travel
11. Lure of the last Unknown: the rise of Myanmar
http://skift.com/files/reports/SkiftTrends-2013.pdf
http://www.nytimes.com/2012/12/11/business/holiday-shopping-takes-hold-at-airports.html
http://www.ibtimes.com/12-biggest-travel-stories-2012-their-impact-926897

7. Carlson Wagonlit: business travel trends
There are some intersections with Skift
trends, but these are interesting ones:
• Brazil, India, China - will drive business
travel growth
• Reviews aggregators.
http://www.tnooz.com/2012/11/30/news/a-z-of-business-travel-trends-in-2013-expect-more-of-the-same/

8. Sharing economy
• Airbnb
• Parking space (Parking Panda - US)
• Obstacle: legal issues
http://www.slate.com/articles/business/small_business/2012/12/parking_panda_rent_your_unused_parking_space.html

9. SITA and Moovweb
• 61% of passengers want more
«pesonalizations» in airports
• 70% of airlines executives believe, that mobile app
will be one of dominant sale channel
• 9 out of 10 passengers want flight status info on
their mobiles
• 55% of passengers say NO to sharing personal data
• By 2015 year 750 mln users will either have a
ticket delivered to their mobile phone of buy a ticket
with their phone (compared to 230 mln today)
http://www.sita.aero/content/flying-future-2015-passenger-experience
http://blog.moovweb.com/2013/02/the-post-pc-revolution-is-here-dont-panic/

10. comScore:
U.S. total Online Travel Spending Up 9 Percent to
$103 Billion
http://www.comscore.com/Insights/Press_Releases/2013/2/U.S._Consumer_Online_Travel_Spending_Surpasses_100_Billion_for_First_Time_in_2012?
utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+comscore+%28comScore+News%29

11. Google: glass
What it can do? What it (probably) can do for travel?
• For travel
• Search Hotels/flights
• Maps • Real-time city guide
• Augmented reality- • Geo-based discounts
powered search
• Flight related updates
• Rest:
• Take a picture
• Record a video
• Online video chat
http://www.google.com/glass/start/

12. Mobile Payments
Mobile payments are likely to expand to $17 billion in 2013.
http://readwrite.com/2013/02/12/how-mobile-payments-will-transform-the-shopping-experience?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:
+readwriteweb+(ReadWriteWeb)

13. Mobile Payments
• Chetan Sharma Consulting voted mobile payments
the top mobile applications and services category for 2013
• Visa Europe: in 2013, there will be 40 issuers offering
mobile contactless payment services to consumers, and by
the end of 2013 around 80 types of smartphones will be
certified to carry out contactless payments.
• Shop.org and Forrester: mobile payments will be
essential if retailers wish to remain competitive
• China is set to follow U.S. and Asia-Pacific countries to
embrace a cashless society
http://readwrite.com/2013/02/12/how-mobile-payments-will-transform-the-shopping-experience?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:
+readwriteweb+(ReadWriteWeb)

14. Asia-Pacific

15. Where to go
Where to live
What to do
Whats interesting
Where to eat
Where to go, lets
see...
http://www.emarketer.com/Article/Asia-Pacific-Social-Media-Inspires-Travelers/1009605

16. Amadeus research:
the big 4 travel effects in Asia
• Me effect (more people want to travel alone thus many
niche occures: visiting friends and relatives (VFR), female
and small business traveller, Gen S or Senior travellers)
• The Red Tape Effect (people can travel more with
better visa regulations. Look closer to India, China and
Indonesia)
• The leapfrog effect (new technology will define
people’s behaviour)
• The Barbell effect (growth in the low end of economic
spectrum will nudge them to look for more low-cost
airlines and accomodations while upper end will look for
more expensive ways to see the world)
http://www.tnooz.com/2013/02/04/news/four-big-future-travel-trends-in-asia-pacific/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Tnooz
+%28Tnooz%29
http://skift.com/2013/02/02/five-emerging-traveler-types-that-will-define-the-future-of-the-industry/

17. Fragmentation of travel market users:
Japan, Korea, China, India, Singapore, Indonesia, and Australia
• The Visit friends and relative (VFR) traveler. 20% of Asia travelers.
They prefer not to use hotels but lodging with friends or
relatives.
• The independent traveler. 46% of Asia travelers use the Internet
to plan and book trips (thus, avoid travel agents)
• The Generation ‘S’ (Senior) traveler. In Asia life expectancies
increase so much more senior travelers occur. In 2011 - 9 mln
up to 30 mln in 2030
• The small business traveller (travel without a company base).
• The female business traveller. Female now accounting about 25%
of all business travellers. In 2011 there were approximately 4.5
million international business trips by women. By 2030 this will
have increased by 400%.
http://skift.com/2013/02/02/five-emerging-traveler-types-that-will-define-the-future-of-the-industry/
http://www.amadeusapac.com/cmcapac/APACWhitepapers/downloads/Shaping_the_future_of_travel_in_APAC.pdf

18. Asia some additional data
• International Air Transport Association (IATA): Asia
will accounting for 33% (1.2 billion) of global
passengers in 2016
• Asia’s discount carriers have plan to add about 750
new airplanes over the next decade to meet future
passengers traffic.
The bad news: «If you think about the number of people that want
to travel in Asia Pacific, there will be bottlenecks at the airports
because of the infrastructure,» said Maunu von Lueders, regional vice
president at IATA.
http://skift.com/2013/02/04/asia-discount-carriers-growing-so-fast-airports-cant-keep-up/

19. Skift. About visa regulations
We are going to more countries has «visa on arrival»
http://skift.com/2013/02/12/visa-on-arrival-the-new-currency-in-global-travel-2/

20. Skift. About visa regulations
• China: 3 day visa-free transit
• India: 25% jump in visitors over 2011 with «visa
on arrival»
• UNWTO: there would be 2 billion travelers per
year.
• «Visa on arrival» is going to become the new
lingo in the worlds of travel (also it should give a
big boost to the busness travel)
http://skift.com/2013/02/12/visa-on-arrival-the-new-currency-in-global-travel-2/
http://skift.com/2012/12/05/china-to-allow-3-day-visa-free-transit-trips-in-effort-to-boost-beijing-tourism/

21. Business travelers

22. Business Travelers... compare with you
(regular traveler)
• 1,5x likely to have > $100,000 year income
• 9x likely - work in finance industry
• 5x likely - work in ad industry
• 66% likely to book a hotel with a 5-star
rating
• 69% likely to book a hotel (flight) less
than 3 days before traveling
http://www.tnooz.com/2013/01/23/news/lifestyle-comparison-how-do-you-stack-up-against-the-average-business-traveler-infographic/

23. Business travelers: profile
Scarborough Research
• Business travelers defined as adults who have
taken a domestic, round-trip flight during the past
year for work, make up 10 percent of the adult
population in the U.S. (around 25 million)
• Golf and tennis are the two most popular
exercise activities among business travelers.
• Business travelers are 68 percent more likely
than the average U.S. adult to have gone jogging
during the past year.
• Business travelers are 78 percent more likely to
belong to a gym.
http://skift.com/2013/02/09/business-travelers-are-more-health-conscious-tech-savvy-and-likely-to-shop-online-than-the-rest-of-america/

24. Business travelers: profile
Scarborough Research
http://skift.com/2013/02/09/business-travelers-are-more-health-conscious-tech-savvy-and-likely-to-shop-online-than-the-rest-of-america/

25. Business Travellers... where do they travel internationally?
• Top cities • Top countries
• Florecne (62%)
• Switzerland (62%)
• Hong Kong (62%)
• Greece (61%)
• Mexico City (60%)
• Singapore (61%)
• Sydney (57%)
• Dublin (56%) • China (59%)
• Amsterdam (55%) • Netherlands (55%)
• Madrid (55%) • UK (52%)
• Dubai (55%) • France (52%)
• Bangkok (54%)
• Egypt (51%)
• Madrid (55%)
http://www.tnooz.com/2013/01/23/news/lifestyle-comparison-how-do-you-stack-up-against-the-average-business-traveler-infographic/

26. Other
• Hotel as a part of airport experience (esp. for people with
long layover)
• Google Places now provides Zagat reviews to app developers
• The rise of metasearch (Room 77, Trivago)
• Rio: global tourist deastination in the next four years
• Federal Trade Commission: apps and travel startups shoud do
more on privacy
• The more business travelers prefer to take a taxi rather
than to rent a car
• Google announced an update to its Flight Search tool. We are
moving to predictive era.
http://airport-world.com/publications/all-online-articles/item/2181-bed-and-board?utm_source=twitterfeed&utm_medium=twitter
http://readwrite.com/2013/01/18/google-places-reviews-in-api?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+readwriteweb+(ReadWriteWeb)
http://skift.com/2013/01/03/expedia-concur-team-in-30-3-million-funding-round-for-room-77/
http://skift.com/2013/01/29/the-next-four-years-will-make-or-break-rio-as-global-tourist-destination/
http://skift.com/2013/02/02/apps-including-travel-need-to-do-lot-more-on-privacy-or-more-fines-coming-ftc-says/
http://www.usatoday.com/story/travel/2013/02/05/rental-rates-taxis-business-travelers/1892059/
http://www.tnooz.com/2013/01/31/news/where-google-travel-is-heading-according-to-one-of-its-employees/?
utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Tnooz+%28Tnooz%29

27. US government: why travel is good for you, for your
business and economy as a whole?
http://traveleffect.com

28. Summary
• Look closer at Asia-Pacific
• Visa regulations
• There is some shift in passenger’s mind about
pricing, airport and mobile role in their life and etc.
• Augmented reality
• Mobile Payments

29. Like this keynote?
Like App in the Air :)
http://facebook.com/appintheair
For more info contact me at:
nikita.kosholkin@empatika.com