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Travel: Changing Course (April 2013)

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Travel: Changing Course (April 2013)

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This report examines how some of our macro trends—Peer Power, Predictive Personalization and Hyper-Personalization—are influencing the travel category.

It also spotlights Millennial travelers, whose tastes are influencing the travel industry in a number of ways, and includes a wide-ranging rundown of more than 20 Things to Watch in travel, from Holographic Concierges to Transient Hotels.

“Travel: Changing Course” includes data from a survey we conducted in the U.S. and the U.K. in November 2012, as well as input from experts and influencers in the travel, investment and marketing sectors.

This report examines how some of our macro trends—Peer Power, Predictive Personalization and Hyper-Personalization—are influencing the travel category.

It also spotlights Millennial travelers, whose tastes are influencing the travel industry in a number of ways, and includes a wide-ranging rundown of more than 20 Things to Watch in travel, from Holographic Concierges to Transient Hotels.

“Travel: Changing Course” includes data from a survey we conducted in the U.S. and the U.K. in November 2012, as well as input from experts and influencers in the travel, investment and marketing sectors.

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Travel: Changing Course (April 2013)

  1. 1. TRAVEL CHANGING COURSE April 2013 Image credit: Jeanette Kramer
  2. 2. 3 Executive Summary Peer-Powered Travel Hyper-Personalized Travel Millennials on the Road Things to Watch Appendix: More About Our Experts/Influencers WHAT WE’LL COVER
  3. 3. 3 EXECUTIVE SUMMARY The world is on the move: 2012 saw a record-breaking 1 billion international travelers, according to the U.N. World Tourism Organization. But while international travel continues to grow at a steady pace—with 4% growth worldwide last year and a slightly lower forecast for this year—the category is in flux. One disruptive force will be the peer-to-peer marketplace. While P2P companies may be expanding the market for travel, services like Airbnb are also putting the squeeze on traditional service providers. For an overview of this new sector, we spotlight 20-plus services focused on P2P hospitality, experiences and transportation. And with the peer-powered economy about to reach critical mass, we look at how established brands can maintain their ground or even find new opportunities. Another macro trend starting to reshape the travel sector is the rise of hyper-personalization: Today’s travelers expect highly personalized experiences and customer service—thanks in part to the rise of customization and personalized suggestions online—and the industry is starting to deliver on this expectation, armed with Big Data and insights gleaned from social media. We look at some ways in which brands are fine-tuning offerings around individual customers, and what this development means for marketers.
  4. 4. 3 EXECUTIVE SUMMARY We also take a look at Millennial travelers, whose adventurous and social approach to travel is already influencing the travel industry in a number of ways. Plus: a wide-ranging rundown of Things to Watch in travel, from Holographic Concierges to Transient Hotels. Note: This report builds on our ―Rebooting Travel‖ report from 2011, which focuses on the tech- enabled traveler. That report examines how the smartphone is coming to replace guidebooks and maps, serving as a one-stop shop that connects travelers with their surroundings, each other and travel brands; how today’s hyper-connected and mobile-enabled vacationers are sharing in real time, which amplifies the experience and enables easy bragging; and how vacationers are increasingly seeking to de-tech, putting aside technology as part of their break from day-to-day life. Find it via the trend reports page at JWTIntelligence.com.
  5. 5. 3 METHODOLOGY This report is the result of quantitative, qualitative and desk research conducted by JWTIntelligence throughout the year. It includes data from a survey we conducted in the U.S. and the U.K. from Nov. 9–19, 2012, in which we polled 1,016 adults aged 18-plus (519 Americans and 497 Britons). Data are weighted by age and gender (in some cases, calculation of averages based off reported frequencies may not add up due to this weighting). It also includes input from three experts and influencers in the travel, investment and marketing sectors. *See Appendix to learn more about these experts and influencers.
  6. 6. Image credit: Vladimir Yaitskiy PEER-POWERED TRAVEL As the peer-to-peer marketplace expands in size and scope—moving beyond goods to a wide range of services—it will increasingly upend the hospitality, tourism and transportation industries.
  7. 7. PEER-POWERED TRAVEL 3Cooperative Consumption Social media The Trust Economy Economics Millennials Distrust in institutions Craving authenticity DRIVERS Back in ’99, we [at Half.com] were trying to start up an easier way for people to buy and sell used books, music, movies and games to each other. No one thought it would ever work. … What’s different now is that there are billions of people online, and they’re organizing and connecting and engaging through social media, and that changes everything. And it unleashes a lot of opportunity and a lot of companies.‖ —CHRIS FRALIC, partner, First Round Capital
  8. 8. PEER-POWERED TRAVEL 3Cooperative Consumption Social media The Trust Economy Economics Millennials Distrust in institutions Craving authenticity DRIVERS (cont’d.)
  9. 9. PEER-POWERED TRAVEL Cooperative Consumption Social media The Trust Economy Economics Millennials Distrust in institutions Craving authenticity DRIVERS (cont’d.)
  10. 10. PEER-POWERED TRAVEL Cooperative Consumption Social media The Trust Economy Economics Millennials Distrust in institutions Craving authenticity DRIVERS (cont’d.)
  11. 11. This movement is being driven by an interest in supporting local communities and artisans, and knowing more about the people behind the things we buy. It’s a shift away from the mass-market efficiency, ease and low-cost mindset that has dominated the past couple of decades. Life came in a more packaged form— everything from food to your vacation. Increasingly, people want to experience the unique gems [while traveling].‖ —VIPIN GOYAL, co-founder and CEO, SideTour PEER-POWERED TRAVEL Cooperative Consumption Social media The Trust Economy Economics Millennials Distrust in institutions Craving authenticity DRIVERS (cont’d.)
  12. 12. Peer-to-peer lodging companies are challenging traditional hotels by offering a wider variety of accommodations—from a couch to a room to full homes—at generally lower prices. Couchsurfing, initially run as a nonprofit, launched the idea of strangers hosting travelers nearly a decade ago. MANIFESTATIONS: P2P hospitality Claims to be the European leader in private short-term rentals, having recently acquired Airbnb rival iStopOver. Connects travelers looking for accommodations with people who have rooms, apartments or homes (and houseboats and treehouses) to rent. Enables people to rent their backyards as what it calls ―micro-campsites.‖ The Craigslist of travel connects hosts with travelers looking for a free bed or couch. An Airbnb imitator and one of the largest European players in this space. PEER-POWERED TRAVEL
  13. 13. Peer-to-peer lodging companies are challenging traditional hotels by offering a wider variety of accommodations—from a couch to a room to full homes—at generally lower prices. Couchsurfing, initially run as a nonprofit, launched the idea of strangers hosting travelers nearly a decade ago. MANIFESTATIONS: P2P hospitality (cont’d.) Marketplace for vacation home rentals, connecting travelers with homeowners and property management companies. A gay-friendly version of Airbnb, for hosts who are gay or welcoming of gay visitors. Caters to mid- to high-end business travelers looking for alternatives to traditional hotels. Properties are ―professionally managed.‖ PEER-POWERED TRAVEL
  14. 14. A crop of startups promise travelers a local’s-eye-view of a city or an otherwise unique experience. MANIFESTATIONS: P2P experiences Founded by a Japan-born entrepreneur (the name means ―to be a guide‖ in Japanese), Shiroube connects anyone interested in acting as a travel guide with travelers looking for personalized tours. Offers offbeat experiences around the world: e.g., members have booked stays on Alcatraz Island in San Francisco and a fishing trip in Fiji with a local king. Promises ―amazing experiences that can’t be found anywhere else‖: e.g., hire a former CIA disguise technician for a crash course in creating disguises or sit in on a professional break dancing practice session. PEER-POWERED TRAVEL Focuses on experiences offered by ―real people,‖ who are encouraged to monetize their expertise for a reasonable fee and advertise their activities through social networks. Relies on a network of ―Soul Mates‖ to advise travelers on the best places to visit, eat, drink, etc.
  15. 15. Shared transport covers everything from cars to boats and planes. In some cases companies are focused on filling empty seats (in cars, on planes), while in other cases the vehicle or boat itself is shared. While some ride-share-service drivers are professionals, many are simply seeking to earn extra cash, help the environment or meet new people. MANIFESTATIONS: P2P transportation PEER-POWERED TRAVEL A ―people-powered transport network‖ that matches paying passengers with seats in cars; pitched as a new, affordable way to tour Europe. Members can post how social they want to be, from Bla to BlaBla to BlaBlaBla. A P2P version of Zipcar. Members can rent other members’ cars via iPhone or the Web. A P2P ride-sharing service whose business model is similar to SideCar’s. Accepts ―donations‖ (average amount: $10) rather than fares from riders. This ―community-based, real-time ridesharing marketplace‖ relies on a mobile app to match people seeking rides with those who have extra space in their cars. Spinlister connects riders with bikes for rent, ―whether from individuals or existing bike rental shops.‖
  16. 16. Shared transport covers everything from cars to boats and planes. In some cases companies are focused on filling empty seats (in cars, on planes), while in other cases the vehicle or boat itself is shared. While some ride-share-service drivers are professionals, many are simply seeking to earn extra cash, help the environment or meet new people. MANIFESTATIONS: P2P transportation (cont’d.) PEER-POWERED TRAVEL Allows travelers who leave a vehicle at airport parking to rent it to incoming travelers. Renters are screened, and all cars insured up to $1 million. One of several boat-sharing P2P services, Boatbound is accepting requests for early invitations. Differentiates itself by offering $1 million in Lloyd’s insurance coverage. Says the average boat owner uses the vessel only 14 days a year. Connects flyers with private jet owners, operators and charters looking to fill unused seats. In contrast to other jet-sharing networks, does not charge a membership fee. People looking to join are vetted by customer service reps.
  17. 17. Websites like Meetup.com have established the idea of using online tools to connect like-minded people in real life. Now, a niche set of travelers is using P2P apps, sites and services to make connections on the go. MANIFESTATIONS: P2P social connections PEER-POWERED TRAVEL Similar to KLM’s Meet & Seat: Lets flyers upload itineraries via TripIt, then connects users to people within their Facebook or LinkedIn networks who are on the same flights. Helps users find travel partners for long-haul or adventure trips. Travelers list trip details and rank the excursion on a 1-5 scale in terms of difficulty, culture shock, remoteness and risk. Enables women traveling alone to meet other women (travelers or locals) for dinner so they don’t have to venture into restaurants alone. Designed for users to ―share a drink with an attractive stranger in the totally safe environment of a public airport.‖ Member profiles resemble dating-site profiles, but the site says members might also meet for companionship or simply to pass the time.
  18. 18. 3As P2P companies begin to disrupt major industries, many established players will turn to existing laws and regulations to limit their growth. But there are alternative (or parallel) paths that big brands can take that are less knee-jerk and more forward-thinking. For one, they can use the emergence of this new competitive set as an opportunity to rethink how they operate or position their B2C businesses in this growing P2P economy. And they can examine what kinds of new behaviors and expectations the P2P model is creating among consumers and start delivering against those. Embrace the P2P era: Rather than fear or fight the encroachment of this new competition, established brands can embrace this development in a variety of ways. Perhaps the easiest is to partner with peer-powered businesses in the same or related categories. Taking it one step further, brands can add a P2P element to their business or launch a business line that addresses a newly created demand or challenge to their industry. In partnering with these upstarts or launching their own version of a P2P service, established brands can infuse freshness or modernity into their persona, broaden their appeal and/or get an existing consumer segment to look at them in an interesting new light. Initiatives such as this also provide the opportunity to learn more about the audience, inner workings, and strengths and weaknesses of P2P enterprises. WHAT IT MEANS PEER-POWERED TRAVEL
  19. 19. 3Take inspiration from the P2P model: Whether or not brands partner with P2P services or add P2P elements, the P2P model can suggest new, more innovative approaches: Are there ways to take inspiration from the things consumers like most about P2P services? And are there ways to leverage digital technologies designed to match supply with demand, consumers’ rising trust of strangers and proclivity for sharing, micro-entrepreneurs and so forth in order to better cater to consumers or market existing services? For instance, P2P companies thrive on utilizing idle assets, a supply (of cars, rooms, downtime, etc.) that can be activated at a low marginal cost and generate significant marginal revenue. Traditional businesses can employ P2P technology to optimize existing capacity and become more efficient. P2P services also strip out the middlemen and/or various overhead costs, often providing more for less. So traditional businesses will need to find ways to either do likewise or provide lower-cost options that do away with some amenities or restrict the offering in some way. Many businesses are built around models formulated in a pre-digital era when consumers had very different mindsets—models that will need to be tweaked, if not shaken up altogether. WHAT IT MEANS (cont’d.) PEER-POWERED TRAVEL
  20. 20. 3Build in more authentic experiences: One of the strengths of the P2P economy lies in its ability to deliver authenticity, local flavor and idiosyncrasy—attributes that appeal to a growing subset of consumers, especially Millennials, who seek out one-of-a-kind, share-worthy experiences and shy away from anything that comes across as prepackaged, cookie-cutter or too standardized. Big brands need to look for unique ways to build these attributes into their services, without it feeling forced or too inauthentic. WHAT IT MEANS (cont’d.) PEER-POWERED TRAVEL Airbnb and similar services allow for their own native experiences, where you’re in the fabric of the city in a way that you’re not when you’re in a hotel. ... It’s kind of like the difference between taking a plane and taking a train: The train brings you right into the heart of the city, and the plane puts you into the ugliest part of the city, just because they had to put an airport there.‖ —LISA GANSKY, author, The Mesh: Why the Future of Business Is Sharing
  21. 21. 3Facilitate the impulse to connect and share: Consumers increasingly are open to trading goods and services with strangers, from lodging to meals. Brands will need to tailor their selling strategies to accommodate this high-tech bartering culture. Hall St., for instance, enables hotel guests to trade reservations, bypassing the hotel itself in the process (Hall St. takes care of the changes). Hotel brands could re-insert themselves into the process and facilitate behaviors that are already taking place, potentially winning brand loyalty. WHAT IT MEANS (cont’d.) PEER-POWERED TRAVEL Image credit: Hall St.
  22. 22. 3Millennials will drive adoption, but don’t overlook their elders: As our survey showed, Millennials are most open to and enthusiastic about the P2P marketplace. But the market will draw in consumers across all segments. Some may be driven by the affordability, others by the novelty aspect, others by practical concerns. In imagining beyond the P2P early-adopter crowd, brands (both P2P and B2C) can find untapped opportunities. Play to your strengths: For all their appeal, P2P markets have their inherent weaknesses, including inconsistent service or quality, cloudy value propositions and the need to deal with strangers, an issue that will continue to discomfort a significant segment of consumers. Beyond the matter of trust, some people will inevitably feel awkward doing business with peers. Established brands can leverage these negatives by emphasizing that working with a more traditional, trusted business can be easier, more convenient, less awkward and even more affordable than choosing a peer-provided service. WHAT IT MEANS (cont’d.) PEER-POWERED TRAVEL
  23. 23. 3Are there benefits to partnering with P2P hospitality platforms such as Airbnb? Is there a service you can launch that addresses needs currently being fulfilled by P2P challengers in travel? Are there ways to take inspiration from the things consumers like most about P2P travel services? Since some consumers buy into P2P services for their local flavor and authenticity, how can you play up those attributes in your brand experience? Can you incorporate P2P technology into your model, as either an alternative or add-on to your current business? THOUGHT STARTERS PEER-POWERED TRAVEL
  24. 24. 3Is there a consumer who would benefit from a P2P service but is currently being overlooked by the market? What strengths can you play up to differentiate your B2C brand in a positive way? If P2P companies are directly challenging your business, what can you offer that is not available or guaranteed through these new channels? Can you highlight existing offerings that help distinguish your business from P2P services? THOUGHT STARTERS (cont’d.) PEER-POWERED TRAVEL
  25. 25. HYPER-PERSONALIZED TRAVEL Image credit: Porto Bay Trade Consumers are coming to expect highly personalized services, and the travel industry is starting to respond by fine-tuning offerings around individual customers.
  26. 26. 3Predictive Personalization Consumers living publicly Impatience with Web tools Me-centric consumers Travel category gets tougher Companies shift from reactive to proactive information gathering DRIVERS HYPER-PERSONALIZED TRAVEL For hotel companies, social media has essentially become a sanctioned form of eavesdropping. ... In today’s social-mediated paradigm, wherein everyone lives in public, all guests can be treated like celebrities.” —―What your hotel knows about you,‖ Travel + Leisure, February 2013 Image credit: Portugal2004
  27. 27. 3Predictive Personalization Consumers living publicly Impatience with Web tools Me-centric consumers Travel category gets tougher Companies shift from reactive to proactive information gathering DRIVERS (cont’d.) HYPER-PERSONALIZED TRAVEL Image credit: Jonno Witts
  28. 28. 3Predictive Personalization Consumers living publicly Impatience with Web tools Me-centric consumers Travel category gets tougher Companies shift from reactive to proactive information gathering DRIVERS (cont’d.) HYPER-PERSONALIZED TRAVEL Image credit: Matt McGee
  29. 29. MANIFESTATIONS: Hyper-personalized customer service/interaction British Airways, “Know Me”: British Airways spent several years gathering passenger data from many sources into one database before launching its personalized-service program aimed at VIP and frequent fliers in 2012. As examples, crew might pay extra attention to a first-time business-class customer (demonstrating how to use the seat, for instance) or fuss over a frequent business traveler who is on a personal trip. —SIMON TALLING-SMITH, EVP of the Americas, British Airways “British Airways gets more personal,” USA Today, July 8, 2012 We put this program together so we can demonstrate to frequent customers that we do know them and can anticipate their needs and deliver the service they expect.” HYPER-PERSONALIZED TRAVEL Image credit: British Airways
  30. 30. Disney’s MyMagic+: The Walt Disney World Resort in Orlando is rolling out MagicBands, wristbands equipped with RFID chips. Guests using the wristbands will be able to personalize their experience by first inputting their information into a website or app. Then, for instance, Cinderella might say to a child, ―Hi, Angie. I hear it’s your birthday.‖ And as guests queue up for the new Little Mermaid ride, a robotic Scuttle, the seagull character, may chat directly with MagicBand wearers. The wristbands will also enable ride reservations, payments and act as keys for guest staying at Disney hotels. HYPER-PERSONALIZED TRAVEL MANIFESTATIONS: Hyper-personalized customer service/interaction (cont’d.) Image credit: Disney
  31. 31. Fine-tuned dining: With the help of software and Internet companies such as OpenTable and Urbanspoon, restaurants are logging detailed data on customer preferences— everything from food allergies to an affinity for crushed or cubed ice. Patrons can then have their needs catered to without having to ask; diners may even visit a restaurant for the first time yet be treated like a regular, since establishments under the same ownership generally share data. HYPER-PERSONALIZED TRAVEL MANIFESTATIONS: Hyper-personalized customer service/interaction (cont’d.) Image credit: Urbanspoon
  32. 32. HYPER-PERSONALIZED TRAVEL MANIFESTATIONS: Hyper-personalized customer service/interaction (cont’d.) Luxury hotels researching every guest like a VIP: It’s long been an open secret in luxury travel that hotels research VIP guests online to help staff recognize them and to use relevant personal details to create ―opportunities to surprise and delight,‖ as high-end hoteliers are fond of saying. For instance, staff at Accor hotel properties (which include Sofitel and Novotel hotels) check public social media profiles of loyalty club members before they arrive, then present customized gifts when they check in, such as a behind-the-scenes tour of Tru in Chicago for a foodie guest or VIP hockey tickets for a sports fan. Image credits: bizbuzzmedia; aprilandrandy
  33. 33. HYPER-PERSONALIZED TRAVEL Libra OnDemand: This company provides customer relationship management for hospitality companies, trawling social media data to create a ―complete 360- degree view of each customer.‖ This service provides hotels with ―intuitive‖ information for all clients, not just the VIPs previously profiled via manual searches. High-end hotels like the Surrey in New York and the Viceroy Group have adopted the service, as well as convention hotels and even Red Roof Inns and Holiday Inns. MANIFESTATIONS: Hyper-personalized customer service/interaction (cont’d.) Image credit: Libra OnDemand
  34. 34. HYPER-PERSONALIZED TRAVEL MANIFESTATIONS: Personalized Itineraries Image credits: Citybot; Utrip; Ness
  35. 35. WHAT IT MEANS HYPER-PERSONALIZED TRAVEL Today’s traveler, accustomed to a hyper-personalized digital experience, is coming to expect the same in real life and during their travels. While some brands have been hyper- personalizing service for the most loyal customers for a while, the advent of Big Data tools will help enable this to a far more extensive degree. While Big Data has the potential to transform all industries, some analysts believe the travel sector could feel the greatest impact, and sooner than others. Travel companies are already armed with an array of data about their users, from VIP and loyalty programs. Yet many travel brands are just starting to put this information to good use. Given the rise of the me- centric traveler, companies will need to connect all the dots to create individualized experiences. The challenge will be to identify not only broad patterns of behavior but individual ones as well. Once armed with these insights, marketers can then tailor offers, messaging, customer service and more. Savvy brands will be able to address needs as they arise, perhaps even before travelers seek solutions. This brings an unprecedented level of personal service and attention to travelers, something they increasingly expect—but there’s a line beyond which most will feel spooked. Marketers will need to assuage privacy concerns and show how their use of data benefits the consumer.
  36. 36. WHAT IT MEANS (cont’d.) HYPER-PERSONALIZED TRAVEL Make transactions more personal: As more of our world becomes digitized, anonymous, automated and virtual, consumers are craving a more human touch. For the travel sector, it will be a matter of balancing technology-based solutions that help save time when it comes to checkout, ordering, ticketing and the like with the hands-on service that make guests feel pampered and catered to. Paradoxically, consumers are more apt to find this online—with personalized suggestions on sites such as Netflix and Amazon—than in the real world. Most travelers get the same generic experience as everyone else, even members of loyalty programs. By amalgamating various data streams, travel brands can start offering the tailored recommendations and attention that consumers take for granted online. Using data to build consumer profiles can take the anonymity out of interactions with a brand, improving customer service. New tool sets will help marketers expand personalized treatment beyond loyal customers of one locale or brand—as we’re seeing with restaurants under common ownership that pool data to offer tailored dining experiences.
  37. 37. WHAT IT MEANS (cont’d.) HYPER-PERSONALIZED TRAVEL Tread carefully around privacy concerns: While travelers will come to expect more individualized attention— especially the youngest cohort, who already consider personalization the norm—they will nonetheless take some time to adjust to the idea that marketers know a great deal about their lives and can predict their needs. After British Airways announced its ―Know Me‖ program, for instance, a slew of consumer critics called it an invasion of privacy, objecting especially to the company’s hunting for online information about users.
  38. 38. THOUGHT STARTERS How can you use public information about your customers to create hyper- personalized experiences? How can you earn travelers’ trust so they are open to opting in to loyalty programs and other means of collecting behavioral data? Are there ways to better personalize the online experience? What are some unique ways your brand can put data to use to make the offline experience better for your guests? HYPER-PERSONALIZED TRAVEL
  39. 39. MILLENNIALS ON THE ROAD Image credit: Lauren Manning Millennial travelers, who have grown up in a globally connected world, are eager to explore the globe. Known for their boundless optimism, today’s 18- to 34-year-olds are exceptionally open to new adventures and unique, immersive experiences, including those that may challenge their often-limited budgets.
  40. 40. MILLENNIALS ON THE ROAD While many can’t afford as much leisure travel as they’d like, Millennials display remarkable ingenuity in getting what they want by using online deal sites, recommendations from social networks, travel apps and crowdsourced review sites. Amenities-laden hotels, at a value price, appeal to their idea of enjoying the best of everything—preferably tailored to their preferences. Image credit: SimplyLuxuryTravel
  41. 41. MILLENNIALS ON THE ROAD They assess their experiences with an especially critical eye, ready to share opinions with social networks and review sites. When these travelers have a complaint, they’re more apt to post it on Twitter before, or instead of, telling the hotel manager. (Starwood Hotels and Resorts Worldwide, among others, now employs a team of people to monitor and post responses to such criticisms.) In turn, they look to social networks and review sites for guidance.
  42. 42. MILLENNIALS ON THE ROAD When flying for business, Millennials want to be comfortable and connected, enabling them to be productive or entertained while en route. Image credits: Ullisan, Tom Mascardo 3
  43. 43. MILLENNIALS ON THE ROAD The decision-making process: Millennials are more apt than older generations to use mobile apps and online aggregator sites to make travel arrangements. These tools help them book travel on their own terms, in a way that fits seamlessly into their schedules. Millennials rely more heavily on user comments and online content when booking travel than older counterparts. Bad reviews from friends can quickly come to light thanks to the social graph laid across the Web, and this virtually guarantees Millennials will look elsewhere. Image credit: TripAdvisor
  44. 44. MILLENNIALS ON THE ROAD What Millennials are looking for: All- inclusive package deals that provide an upscale experience without leaving travelers feeling nickel-and-dimed for every little ―extra‖ speak to Millennials’ sense of value and fairness. An offbeat place to stay found on Airbnb or unusual activities booked through P2P services like Vayable appeal to Millennials’ desire to avoid impersonal service and the standard experience. The story of the unusual trip is a prize unto itself. Image credit: Vayable
  45. 45. MILLENNIALS ON THE ROAD Travel brands that are addressing their needs: Brands are starting to provide ever more options, catering to the Millennial desire for a more customized experience. Hilton’s luxury Conrad chain offers three different brands of toiletries and lets guests choose which they prefer. New hotel brands such as Moxy, a partnership between Marriott and Ikea, and Starwood’s trendsetting hotel chain Aloft offer style and a scene at an affordable price. W Hotels’ ―W Happenings‖ concert and event series is a way for the luxury chain to become a social destination as much as a place to stay. Image credits: Conrad Hotels; Moxy Hotels; Virgin Atlantic
  46. 46. THINGS TO WATCH Image credit: Paul Lowry Over the following pages, these 20-plus Things to Watch offer a quick rundown of a wide range of developments in travel, from innovative tech tools and services to new categories of hotels to the next hot vacation theme.
  47. 47. AIRPORTS AS DESTINATIONS 3 GENERATION GO DRIVERS (cont’d.) Image credit: Ikea Travelers are spending more time in airports, and airports are providing money-generating ways to spend that time. USA Today reports that Vancouver is planning a 400,000-square-foot luxury outlet mall for its airport. Hong Kong’s airport now has an IMAX movie theater. Dusseldorf International Airport, includes a pharmacy, dentist, hairdresser and postal services at the info desk. Los Angeles International Airport has restaurants run by celebrity chef Masaharu Morimoto as well as a golf course next door. And last year, Ikea installed a temporary family-friendly lounge in France’s Roissy-Charles de Gaulle Airport with comfy sofas and even beds to nap on.
  48. 48. BYOD (BRING YOUR OWN DEVICE) 3 GENERATION GO DRIVERS (cont’d.) Image credit: airfax.com With the mobile device now an Everything Hub and content accessible through the cloud, businesses must adapt to BYOD culture. Airlines including Virgin America, American Airlines and Lufthansa are offering audio and video via Wi-Fi for those who eschew the seat-back screen in favor of their own. Likewise, some hotels are enabling guests to watch pay-per-view movies on their own devices as well as the room’s TV; network bandwidth that can handle guests streaming video is becoming increasingly important.
  49. 49. CHEAP CHIC HOTELS AND HOSTELS 3 GENERATION GO DRIVERS (cont’d.) Image credit: citizenM Hotel chains are taking a page from Ikea, Target and H&M and delivering contemporary design at a cost-sensitive price. Starwood’s Aloft hotels helped define the trend with open, club-like lobbies that feature lighting changes throughout the day, free bottled water and fast Wi-Fi. At citizenM hotels in Amsterdam, Glasgow and London, guests check in at self-serve kiosks, which saves on front-desk staff, engaging the wandering ―ambassador‖ if they have problems.
  50. 50. CONSCIOUS-LUXE 3 GENERATION GO DRIVERS (cont’d.) Image credits: The-Lane-Team; mauriciopadovani ―Eco-hotel‖ once suggested huts on the beach in Costa Rica with no running water or electricity. Now guests might stay at an eco-hotel without knowing it. Take the LEED Platinum-certified Leela Palace hotel in New Delhi—built at a reported cost of nearly $400 million and fit for a maharaja—or the upcoming Singita Mara River Tented Camp in Tanzania, built largely of natural and recycled materials and completely off the grid, yet is complete with a swimming pool, other amenities and a custom-designed solar system for power.
  51. 51. DIGITAL-INTO-PHYSICAL POSTCARDS 3 GENERATION GO DRIVERS (cont’d.) Image credit: Postagram Various services allow vacationers and others to turn digital snapshots into snail- mailed postcards. Tools like Sincerely’s Postagram app and Postcard on the Run (―Technology delivered the old-fashioned way‖) satisfy today’s rising appreciation for physical objects and slower forms of communication.
  52. 52. THE DOCUMENTARY TRAVELER 3 GENERATION GO DRIVERS (cont’d.) Image credit: Ushuaïa Ibiza Beach Hotel As more travelers chart their trips on social sites, travel companies are starting to make tweeting, Instagramming and posting easier and more automatic. Spain’s Ushuaïa Ibiza Beach Hotel lets guests share their clubbing experience on Facebook by scanning RFID-enabled wristbands at kiosks throughout the venue; the hotel is planning an upgrade that will rely on fingerprint recognition.
  53. 53. HOLOGRAPHIC CONCIERGES 3 GENERATION GO DRIVERS (cont’d.) Image credit: Iberia Aiming to offer memorable (and socially shareable) novelty, high-tech design and attentive customer service with no manpower cost, travel providers are creating digital avatars to serve as human assistants. Starwood’s hip, affordable Aloft-branded hotels introduced holographic greeters/concierges in late 2011 to orient guests on hotel features and nearby shopping and dining. Several airports have added holographic assistants, and Iberia has two holographic ―virtual agents‖ at its hub in Madrid to provide information about using check-in kiosks and boarding procedures.
  54. 54. HOPPER 3 GENERATION GO DRIVERS (cont’d.) Image credit: Hopper This buzzed-about booking site aims to be a one-stop-shop for all travel planning needs. In development since 2007, Hopper has raised a total of $22 million in funding and counts a number of travel industry heavyweights on its executive team, including a former employee from TripAdvisor and ex-Expedia engineers. Built on big data and sophisticated algorithms, the forthcoming service aims to aggregate and catalog fragmented travel information from across the Web to create a discovery and recommendation engine. Users will be able to search for all the information they need based only on ―a vague idea‖ like ―Mediterranean cruise,‖ according to the site.
  55. 55. HOSPITALITY INDUSTRY WORKS TO STAY FIT 3 GENERATION GO DRIVERS (cont’d.) Image credit: Even Hotels The hospitality industry is rolling out new and more varied options for fitness on the go. The prime example is Even Hotels, a middle-market fitness-oriented franchise that InterContinental Hotels Group plans to debut in New York City in 2014. Amenities will include a large gym, guest rooms outfitted with fitness walls and/or exercise balls, and quick-turnaround laundry service for gym clothes, according to USA Today. Yoga is becoming a popular amenity: Several hotel chains—including Singapore-based COMO Hotels and Resorts, Kimpton Hotels and Affinia Hotels—offer yoga equipment, instructional videos or classes, and more are joining them.
  56. 56. HOTELS IN AFRICA 3 GENERATION GO DRIVERS (cont’d.) Image credit: Marriott Driven largely by an explosion in business travel to Africa, international hotel brands are racing to expand their portfolios. Marriott plans to open a property in Kigali, Rwanda’s capital, in 2013 and aims to grow its African properties sixfold by 2020. French hotel group Accor is planning to add almost 5,000 rooms in 30 hotels by 2016, and Starwood intends to open 10 African hotels in the next three years.
  57. 57. INSTA-CATIONS 3 GENERATION GO DRIVERS (cont’d.) Image credit: Tambako the Jaguar Staycations have been popular since the 2008 recession, but many of today’s consumers—ever more budget-conscious and overworked—will opt for quick, affordable bursts of fun in lieu of longer excursions or breaks. People looking to inject fun into their lives will seek the type of unusual one-off experiences and mini-vacations they’ve been finding on some deal sites, the more novel and adventurous the better.
  58. 58. LIVE-STREAMING LIFE 3 GENERATION GO DRIVERS (cont’d.) Image credit: GoPro Memories will be live-streamed in real time. The newest super-compact video camera from GoPro is 30% smaller and 25% lighter than its predecessors—a big selling point for the skiers, divers and other extreme sports enthusiasts who love to document their exploits—and includes built-in Wi-Fi, enabling live-streaming of footage. Users can also control the camera remotely using a smartphone app.
  59. 59. NATURE AS ANTIDOTE 3 GENERATION GO DRIVERS (cont’d.) Image credit: Marian Berelowitz With urbanization rising steadily—today more than half the world’s population lives in cities, compared to less than 40% in 1990—more people will retreat to nature to escape the pressures, noise, pollution, traffic and other stressors of the city. We’ll also see this urge manifest in other ways too, from an embrace of natural, organic elements in décor to ever more nature- themed entertainment programming.
  60. 60. POLITICAL VACATIONS 3 GENERATION GO DRIVERS (cont’d.) Image credit: Political Tours Affluent travelers are seeking new kinds of status trips, as embodied by Political Tours of the U.K., which offers clients ―current affairs at first hand.‖ This includes a tour of Northern Ireland led by BBC correspondents and trips to hot spots including Georgia, North Korea, Libya and Kosovo—many curated by political experts with insights into the region.
  61. 61. REAL-TIME TRANSLATION 3 GENERATION GO DRIVERS (cont’d.) Image credit: Gizmodo App creators are looking for new ways to break through language barriers with software that translates two-way conversations in near-real time. Examples include Jibbigo, which translates typed and spoken words; Vocre, which can handle 36 languages; Sakhr, which translates Arabic; and Word Lens, which translates typed words into English from Spanish, French, Italian and German or vice versa. Samsung’s Galaxy S4 comes with the ―S Translator,‖ which can translate nine languages from speech to text or text to speech, as well as email and text messages.
  62. 62. RIVER CRUISING 3 GENERATION GO Image credit: Voyages of Discovery River cruising is slated to make a splash in the travel industry. In 2012, for instance, British cruise brands Voyages of Discovery and Hebridean Island Cruises both introduced river cruises. Other companies are adding river cruise itineraries worldwide, as well as new ships.
  63. 63. SET JETTING 3 GENERATION GO Image credit: Hobbiton Movie Set Tours New Zealand has seen a 50% spike in tourist visits since The Lord of the Rings debuted in 2001; now The Hobbit is expected to bring even more travelers to the Pacific nation. Long popular among film fanatics, ―set jetting‖ will become more mainstream, especially as more sites start to tout their Hollywood connections. As part of the promotion for 50 years of James Bond films, the stars made appearances at set locations around the U.K. in 2012. In 2013, Life of Pi (filmed in India) and The Lone Ranger (the American West) are expected to help draw visitors to filming locales.
  64. 64. SHOPPING HOTELS 3 GENERATION GO Image credit: Pullman In Middle Eastern countries including the U.A.E., Lebanon, Saudi Arabia, Egypt and Bahrain, megamalls with hotels in them are fueling a tourism recovery after the Arab Spring of 2011 took a toll. A Sheraton will open in Dubai’s Mall of the Emirates in 2013, and the upcoming Yas Mall in Abu Dhabi will house seven hotels.
  65. 65. SMARTER CHECK-INS 3 GENERATION GO Image credit: Qantas Hotels, airlines and airports are using RFID and NFC, combined with customer phones, to smooth and speed up the check-in. France’s Toulouse-Blagnac airport is aiming to use NFC to enable travelers to ―pass seamlessly through the airport using just their mobile phones.‖ Qantas’ frequent flyers get a RFID-enabled card that functions as a boarding pass; they use it to check in at a kiosk upon arrival, then flight details are sent to their phone. (Qantas also offers RFID- enabled baggage tags, linking luggage with the flier’s flight info to ensure proper handling.)
  66. 66. TRANSIENT HOTELS 3 GENERATION GO Image credit: Sleeping Around These days, it’s hotels that are on the move, not the guests. Transient, or pop- up, hotels offer affordable rooms in prime spots or posh lodging near seasonal events such as music festivals. Sleeping Around, a Belgian company, transforms 20-foot shipping containers into luxury rooms and transports them to cities around Europe.
  67. 67. TRAVEL BECOMES MORE INCLUSIVE 3 GENERATION GO Image credit: Ovolo Group All-inclusive resorts where everything is pre-paid—activities, meals, tips, etc.— have existed for decades. But now the concept is expanding to a wider variety of travel options. The guiding idea is transparency: What you see is what you get, and it’s all included. Cruise lines, known for their pricey extras, are starting to include airfare and before- and after- cruise hotel stays in their prices, with Regent Seven Seas and Seabourn leading the charge. The rate at the new Ovolo hotel in Melbourne, for example, includes minibar items, Wi-Fi, local calls and breakfast.
  68. 68. VIP TREATMENT 3 GENERATION GO Image credit: JeffMaysh As the middle market shrinks in the developed world, more brands will find ways to provide special service to customers with the means or the motivation to spend. VIP treatment is becoming common at amusement parks, for example, with special access passes allowing purchasers to skip long lines. Independent airport lounges provide a little extra comfort to travelers with an extra $15 to $50 to spend.
  69. 69. WOMEN-ONLY HOTEL FLOORS 3 GENERATION GO Image credit: Naumi Hotel With more women traveling solo, many for business, hotels from Vancouver and Copenhagen to Singapore and London are reviving women-only floors, an old concept once dismissed as sexist by the feminist movement. These offer more security—some hotels even require a key card to access the floor—and add room amenities like fashion magazines, hair tools (curling irons, flat irons) and additional hangers. Some hotels also provide female room attendants and offer networking events.
  70. 70. APPENDIX: MORE ABOUT OUR EXPERTS/INFLUENCERS April 2013 Image credit: Jeanette Kramer
  71. 71. APPENDIX: MORE ABOUT OUR EXPERTS/INFLUENCERS
  72. 72. APPENDIX: MORE ABOUT OUR EXPERTS/INFLUENCERS
  73. 73. JWTIntelligence: JWTIntelligence is a center for provocative thinking that is a part of JWT. We make sense of the chaos in a world of hyper-abundant information and constant innovation—finding quality amid the quantity. We focus on identifying changes in the global zeitgeist so as to convert shifts into compelling opportunities for brands. We have done this on behalf of multinational clients across several categories including pharmaceuticals, cosmetics, food, and home and personal care. JWT: JWT is the world’s best-known marketing communications brand. Headquartered in New York, JWT is a true global network with more than 200 offices in over 90 countries, employing nearly 10,000 marketing professionals. JWT consistently ranks among the top agency networks in the world and continues a dominant presence in the industry by staying on the leading edge—from producing the first- ever TV commercial in 1939 to developing award-winning branded content today. JWT embraces a WORLDMADE philosophy, making things inspired by the world through blending technological innovation with international imagination. JWT has forged deep relationships with clients including Bayer, Diageo, Ford, HSBC, Johnson & Johnson, Kellogg’s, Kimberly-Clark, Macy’s, Mondelez, Nestlé, Nokia, Rolex, Royal Caribbean, Schick, Shell, Unilever, Vodafone, Vonage and many others. JWT’s parent company is WPP (NASDAQ: WPPGY). For more information, please visit www.jwt.com and follow us @JWT_Worldwide. www.jwt.com | @JWT_Worldwide www.jwtintelligence.com | @JWTIntelligence www.anxietyindex.com | @AnxietyIndex CONTACT:Travel: Changing Course Written by Director of trendspotting Editor Trends strategist Trends associate Contributors SONAR™ Design Jessica Vaughn Ann M. Mack Marian Berelowitz Will Palley Nicholas Ayala Ann Abel Alec Foege Mark Truss Peter Mullaney Ann M. Mack 212-210-7378 ann.mack@jwt.com @annmmack Jessica Vaughn 212-210-8583 jessica.vaughn@jwt.com @jess_vaughn © 2013 J. Walter Thompson Company. All Rights Reserved. THANK YOU

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