Top Predictions for the Travel Industry in 2012 | EyeforTravel

IN-DEPTH: Glenn D. Fogel, Head of Worldwide Strategy and Planning, and Executive Vice President - Corporate Development, The Priceline Group, says looking at the big macro picture, on a worldwide basis the shift from offline travel booking to online and mobile booking will continue. Fogel also lists his top 5 travel trends for 2012.

By Ritesh Gupta

One of the current highlights of the travel industry is the way geographical and technological balances are shifting.

Established online travel companies, despite the sheer size of their businesses, have been combating external factors mainly pertaining to the uncertain macro-economic environment and have been operating efficiently. Economic pressures around the world offered leisure and business travellers plenty of reasons to look for maximum value in their travel spending. Accordingly, online intermediaries, too, have been battling to deliver superior value to their customers.

An organisation of The Priceline Group’s stature believes its brands have significant opportunity ahead through innovation and new market penetration and the group intends to use its reach and resources to exploit that opportunity to better serve its customers. The Priceline Group, consisting of Booking.com, Priceline.com, Agoda and Travel Jigsaw, exhibited strong performances for the three quarters it has reported so far for 2011.

EyeforTravel’s Ritesh Gupta spoke to Glenn D. Fogel, Head of Worldwide Strategy and Planning, and Executive Vice President - Corporate Development, The Priceline Group, about 2011 and how the travel distribution business is expected to shape up in 2012. Excerpts:

How do you think the travel sector shaped up in 2011? What do you think stood out in travel distribution and also in the manner in which travel technology evolved this year?

Glenn D. Fogel:

I don’t think any one thing stood out in 2011.

The year was marked by several external challenges to tourism and the travel industry, including turmoil in North Africa and the Middle East, flooding in Asia, the earthquake and tsunami in Japan, and of course the economic instability that still grips many European countries. Even with all of the negative events of 2011, worldwide tourism continued to grow.

The Priceline Group, consisting of Booking.com, Priceline.com, Agoda and Travel Jigsaw, exhibited strong performances for the three quarters it has reported so far for 2011. Throughout the world, more people have used the Internet to book travel and more people have used mobile devices to book travel. And when we look at the big macro picture, we expect that on a worldwide basis the shift from offline travel booking to online and mobile booking will continue.

How do you foresee travel distribution to shape up in 2012?

Glenn D. Fogel:

There are some issues that might influence the travel industry in 2012 (these items have been listed in no particular order):

a. The financial stability of the Euro zone;

b. Anything that could impact the flow of oil and consequently its price (referring specifically to the continued political unrest in the Middle East and the issues related to the stand-off with Iran);

c. An economic hard-landing in China, India and Brazil (all of these countries have recently shown decelerating economic growth) on the one hand or a reacceleration of growth on the other;

d. A successful way to take advantage of social media’s capabilities vis-à-vis travel transactions; and

e. Whether the US economy continues to heal or stalls and slips back into recession.

How the travel industry shapes up in 2012 depends, in large part, on how these issues play out. And that’s something no one knows for sure. However, the successful companies in the travel space will watch these issues and adjust accordingly.

What according to you are going to be the main travel trends in the industry in 2012?

Glenn D. Fogel:

Here are some of what I think could be travel trends to watch in the New Year.

1. Mobile gaining importance;

2. More distributors trying to push more “deals” (though consumer “deal fatigue” might set in and lower the importance of deals as a channel);

3. Some people will continue to stress how important social media is for travel transactions while others will loudly dismiss it as not proven yet (thereby producing interesting debates in the travel blogs but this will not influence the business of travel);

4. Chinese and other travellers from emerging countries continuing to become a larger share of the overall international travel market which might benefit global distributors more than purely local distributors;

5. Small, incremental changes that make travel less burdensome such as more hotels having door locks that can be unlocked using your smart phone obviating the need for a key, more use of smart phones as true NFC (near field communication) boarding passes (not simply scanning a picture on the screen of the mobile phone), expansion of kiosks for immigration checks such as Global Entry in the US, FLUX in the Netherlands and IRIS in the UK, and other similar changes that are not revolutionary but do improve the travel system.

Faasai Resort and Spa Puts Chanthaburi on the Map as a New Eco-tourism Destination, After Twice Winning Best Small Hotel in Thailand in the TAT (UK) Green Awards

Just as tourist numbers are set to dramatically increase around the globe, there is growing interest in green travel and authenticity. One new destination that is catering to this trend is Chanthaburi, on Thailand's eastern border with Cambodia. Despite being only three hours' drive from the Bangkok capital, it boasts beaches, coral reefs, marine parks and towering waterfalls, as well as the highest mountain peak in the East of Thailand - Kao Soi Dao.

Chanthaburi, Thailand (PRWEB) December 27, 2011

Chanthaburi province, which is mainly famous for its tropical fruit and gemstone markets, is attracting increasing interest from eco-savvy travelers, such as the Wianecki family, who recently spent a few days in Chanthaburi, after trekking in the rainforest national park of Khao Sok in the South of Thailand. They stayed at Faasai Resort and Spa, which has won Best Small Hotel in Thailand in the TAT (UK) Green Awards, two out of the past three times.

They were surprised by the rich bird-life of the region, spotting many different varieties of birds during their two day visit, including kingfishers, drongos, bee-eaters, fantails, lapwings, sunbirds, kites, egrets and bulbuls.

"People often don't realize what rich ecosystems we have here in the dry tropical forests of Southeast Asia," said the owner of Faasai Resort and Spa, Bronwen Evans. "They often see and hear more birdlife here than in other parts of the country which are more famous for trekking."

The forests and forest remnants of Chanthaburi are part of the Cardamom ranges complex on the border of Thailand and Cambodia and national development plans in Thailand have earmarked Chanthaburi as a special green province. This is expected to attract visitors interested in adventure tourism, eco-tourism, agri-tourism and marine eco-tourism.

Already the province has impressive credentials. The Kung Kraben Bay Royal Development Study Centre is a marine sanctuary under the patronage of His Majesty the King, which is fringed with mangroves and sometimes visited by the endangered sea mammal, the dugongs. It is regarded as a model of restoring a degraded marine environment and integrating marine conservation with support of local fisherman.

To help promote the province's green credentials, in July 2011, the Governor of Chanthaburi held the inaugural green awards to recognize local operators committed to eco-friendly practices.

Faasai Resort and Spa won special recognition for its herb gardens in the resort and at its nearby nature sanctuary. The owners of the resort have planted more than 2500 trees including timber trees such as rosewood and ebony, aquilaria used for the production of krissana oil and Thai healing herbs such as neem, lemongrass, tamarind and zedoary. The trees and plants provide unique ingredients, which are used in the resort's restaurant and spa. Faasai is also developing a spice garden, with trees which are indigenous to Chanthaburi and were part of the ancient spice trade such as cloves, camphor and cinnamon.

The resort offers nature based tourism including exploration of the unique coastal and forest ecosystem of Kung Wiman, a small fishing village surrounded by orchards, shrimp farms and rubber plantations. Visitors to Kung Kraben can take a boardwalk through the mangroves, go kayaking amongst the mangrove trees or in the bay (between October and March) and visit an aquarium which has a diversity of marine life including seahorses, stingrays, sharks, clown and puffer fish as well as a marine breeding center in the bay with leopard sharks, giant groper and turtles.
Awards won by Faasai Resort and Spa:

• Best Small Hotel Thailand Green Awards 2011
• Green award and special award for cultivation and use of herbs and spices from the Governor of Chanthaburi 2011
• Outstanding service to the environment and nature in the Eastern region - Thailand Boutique Awards 2010
• Best Small Hotel Thailand Green Awards 2009.
• Runner-up in the budget category in the 2008 Wild Asia Responsible Tourism Awards.

Times of Oman / Funding boosts hospitality, technology education plan

MUSCAT: In the two accords signed with the Ministry of Manpower today, Oman LNG has earmarked almost half a million rials for the Oman Tourism College (OTC) Muscat and College of
Technology, Ibri in Ad Dhahirah Governorate.

For the Tourism College, a sum of RO 156,464 will go towards setting up two new high-tech laboratories and equipping the institution’s Hotel Management Training Centre.

The College caters to between 650 and 850 students annually. It teaches subjects required in the hospitality industry and also broadly suited to the service sector.

Among the priorities of the funding programme are two essential computer software — Sabre and Galileo — developed specifically for the travel and tourism sectors to serve customers in “searching, pricing and booking for services provided by airlines, hotels, car rental companies, rail providers and tour operators”.

As many as 160 multimedia computers will be provided with accompanying chairs and tables, printers, scanners, projectors and white boards, all of which will further students’ learning experience at the school.

The funds will also provide for Symposium Live multimedia facilities that support the delivery of high quality audio, video and PowerPoint presentations from any location around the world.

“The infrastructure funding provided by Oman LNG’s funding will further our college’s ability to train its students effectively, enabling them master many important skills required of operators in today’s dynamic hospitality industry,” said Bernhard Klefasz, Oman Tourism College’s International Advisor.

At the College of Technology, Ibri, RO283,513 has been earmarked for equipping laboratories and workshops at the school’s Engineering Department.

The main items to be funded under the plan include 44 electrostatic discharge (ESD) workstations for students, 38 side workstations, 99 laboratory desks and over a 100 flat screen and computer holders.

“Today’s agreements tie-up reflects with Oman LNG’s ultimate goal of contributing to the country’s development, especially in the push to provide our youths with quality education and modern skills that make them employable and ready to support the country’s growth and aspirations,” said Amor Al Matani, Oman LNG’s deputy general manager after signing the agreement.

The company has signed a string of agreements with relevant government agencies and private bodies to support a broad-scope of development initiatives in child care, women’s development, irrigation and water conservation, as part of its comprehensive Social Investment Programme (SIP).

The Oman Tourism College was established in 2011 in cooperation with an Austrian education consortium that consist the International College of Tourism and Management (ITC), the University of Applied Sciences, Austria among others. The Ibri College of Technology for its part is only one of seven Colleges of Technology under the supervision of the Ministry.

Preview 2012: Technology -

From the possibility of a renewed American Airlines push for Direct Connect to agency desktop changes and the specter of Google Flight Search, 2012 is shaping up as a year of challenge and opportunity for agents on the technology front.

Last summer's anticipated showdown between American Airlines and the GDSs -- with agents caught in the middle -- was put off for another day as contracts were extended, lawsuits were filed and a Department of Justice antitrust investigation ensued.

With American Airlines/GDS negotiations now extended until court actions have been resolved, it appears things should heat up again in late spring and summer. That's when edicts are expected in fast-tracked antitrust lawsuits filed by American Airlines in state and federal courts against Sabre and Travelport, although AMR Corp.'s Chapter 11 filing in November has cast much doubt on how the airline's battle to lower its distribution costs will play out.

Sabre has filed a motion in the bankruptcy proceeding to enable it to make counterclaims against American in the antitrust suits. The petition is necessary because a Chapter 11 filing usually stays such actions. Sabre says American backs its move to let the antitrust claims proceed.

Summer showdown

So the questions weighing on agents are, first, will they again find themselves facing booking surcharges from American by next fall if they don't implement the airline's Direct Connect solution and, second, will the airline's content be available to agents in GDSs or be biased into oblivion?

Given the court cases, the possibility of negotiated settlements, the bankruptcy filing and the under-the-covers DOJ antitrust investigation, no one can say for sure.

American says that Direct Connect remains a viable option. But it's unclear whether a reorganized airline would emerge stronger and emboldened, seeing Direct Connect as a clear priority, or become distracted by more pressing financial matters.

Other airlines, which are working on XML connectivity standards in the Open AXIS Group, are assuredly watching and will take their cues based on what happens with American's Direct Connect initiative. For example, Delta has expressed direct-connect ambitions, although it is taking an approach that is much less aggressive than American's.

Desktops and ancillaries

On the agency desktop front, Travelport is proceeding, albeit somewhat slowly, with the global rollout of its Agencia desktop, and Sabre has been busy updating the features of its Sabre Red Workspace, which debuted midway through 2010.

Both desktops offer graphical features, add nontraditional content and are positioned as tools for improving agency productivity.

Both GDSs will have something to prove about their desktop initiatives in 2012.

Travelport will introduce its new desktop in Australia, New Zealand, South Africa and the U.K. A foundation of the new technology is Travelport's Universal API, a system that enables low-cost carriers, rail providers and other nontraditional suppliers to connect to the agency desktop.

As Travelport continues its rollout, it remains to be seen how much traction the new API will get with large agencies and suppliers.

Sabre, too, has embarked on an interesting tech experiment related to the Sabre Red Workspace.

With app development all the rage for Apple iOS, Android and other mobile devices, Sabre is gambling that travel agencies, too, will want to get in on some of the developer action. It is thus opening the Sabre Red App Centre, an initiative designed to get developers to create and market apps to Sabre-connected travel agencies through the Sabre Red Workspace.

The idea is for developers to create apps that in theory could facilitate anything from restaurant reservations to hotel reviews and integrate them tightly into agents' workflow as they use the desktop.

Sabre is vetting developers and giving them the opportunity to sell these apps geared specifically for the Sabre agency desktop, with code-writers earning a 70/30 split on app sales.

Even before the introduction of the app center, Sabre had developer agreements with about 130 companies. Now, with the Sabre Red Workspace rolled out to some 165,000 installations in 116 countries, it is hoping the market opportunity is large enough to attract a significant amount of app-development activity.

One thing that is crystal clear about 2012 is that agents will increasingly have access to airlines' ancillary services, although the pace and scope are to be determined.

For years, airlines offered bag fees and premium seats, as a rule, on their websites only. When GDS vendors managed to strike agreements to access those fees for travel agents, it was accomplished through one-off technologies and workarounds.

The research firm IdeaWorks estimates that global airlines were on pace to attract $32.5 billion in ancillary revenue in 2011, and the recent introduction of an IATA standard for Electronic Miscellaneous Documents will hasten the distribution of these services to the travel agency channel.

These still are early days for the implementation of EMDs, however.

"Three airlines [Finnair, Iberia and Japan Airlines] have used EMDs for travel agency transactions, and 25 airlines have developed the capability to use their first EMD," IdeaWorks reported.

The DOT, meanwhile, is considering new rules that would require airlines to make their ancillary services available to agencies through the GDSs.

Google Flight Search

In 2012, travel agents should get a much better handle on any threats from Google's recently launched Flight Search, an airfare search solution powered by the search giant's recent acquisition of ITA Software.

For now, Google Flight Search is a very limited product, offering a less-than-complete roster of domestic fares and from airline sites only. Google Flight Search is notable for its exclusion of online travel agency and travel metasearch sites in the core search results, and it allows them only a minor presence in tiny advertisements on the bottom of the results page.

Extremely fast in spitting out flight results, Flight Search today is very limited in scope, but Google will certainly broaden its domestic coverage and has already announced that it intends to introduce international fares early in the new year.

Given Google's power with consumers, coupled with the launch of Google Hotel Finder, a hotel meta-search product, there is always the threat that the search giant will make further inroads and take share away from travel agents.

Agent 3.0

Tom Cates, chief commercial officer of Amadeus North America, believes such marketplace developments, including the advent of social media and mobile apps, will require the evolution of a "next-generation agent," which Amadeus dubs Agent 3.0.

"Agent 3.0 embraces the traditional tools, role and value of the travel agent," Cates said. But he added that this new breed of agent is "also adapting to new traveler preferences, new tools and new ways of doing business. Agent 3.0 provides superior guidance on the best destinations and expertly handles travel arrangements for their clients as agents always have. But they are also active in new channels, such as social and mobile, to best serve their customers while also expanding their business opportunities."

Dennis Schaal is North America editor of Tnooz.

Sabre wins billion dollar contract

Etihad Airways has signed a “ground-breaking” ten-year deal with Sabre Airline Solutions.

The agreement will see Sabre provide integrated reservations, inventory, marketing, planning e-commerce and departure control software.

Valued at more than $1 billion, the deal also includes a “multi-year” full-content distribution agreement, the length of which has not been revealed.

According to James Hogn, Etihad's CEO, the deal will mean “significantly” reduced technology costs for the airline.

He said: “This groundbreaking deal will play a pivotal role in providing Etihad Airways with the tools necessary to achieve its next phase of growth and profitability targets in an innovative, sustainable and cost effective manner.

“It will be the single largest technology-enabled business change that Etihad Airways will undertake in a decade.”

By taking an integrated approach to its technology needs, Etihad is able to create “efficiencies of scale”, added Hogan.

“We are fortunate to be in a position, unlike legacy carriers, to be able to implement this software across the board.”

Sam Gilliland, Sabre's CEO, said the technology included in the deal will provide Etihad with “the flexibility to adapt to the constantly changing travel marketplace”.

He said: “We very much look forward to working with Etihad Airways as it grows over the next ten years to become one of the largest airlines in the world.

“The technology we will provide will facilitate this growth considerably.”

Liechtenstein is now part of the Schengen area

As of this week, Liechtenstein is the latest country to become a Member of the Schengen area, the zone without controls at internal borders.

Over 400 million Europeans from 26 European countries now enjoy passport-free travel across the Schengen area.

“The Schengen Area has grown rapidly, allowing for increasing numbers of European citizens and third country visitors to enjoy free movement across more and more countries. With Liechtenstein joining today, we are further developing one of the most cherished achievements of the EU”, said Cecilia Malmström, Commissioner for Home Affairs.

From now on, checks on persons will be abolished at the borders with Liechtenstein, which will fully implement the Schengen rules.

Edition: 1144

Corkboard: our weekly travel news round-up

Our weekly look at the new and fun in the world of travel, including a cool pop-up beach camp in Mexico, a 3,000km-plus trek in New Zealand and a hairy trip to Cairo

Tweet us @guardiantravel or email us about your travels

• • reddit this

• The Guardian, Friday 2 December 2011
• Article history

The Papaya Playa Project in Tulum, Mexico

Escapism

In Tulum, Mexico – just over an hour's drive from Cancun – a stylish pop-up camp by Design Hotels, called Papaya Playa Project, opens next week. There are 99 cabanas (from basic to luxurious), a beach-shack bar, raw food bar, lounge, live DJs, full-moon parties, and "Mayan-influenced" spa treatments.
• From $25-$675 per night, open until April (papayaplayaproject.com)

Where's hot now?

Mali (33C)
From November to March is the dry season in Mali, one of the most interesting places to travel in west Africa. See the fishing communities of the Niger river and the Tuareg of the Sahara, and enjoy amazing music.
• Royal Air Maroc (020-8432 3421, royal-airmaroc.co.uk) currently has flights to Bamako from London for around £588 in early January

Cheap date

Mallorca Farmhouses is offering 20% off self-catering properties for next spring and autumn if booked by 31 December. Cal Rei Petit, for example, sleeps six in Pollenca from £504 per week, which works out at £84pp.
• 0845 800 8080, mallorca.co.uk

What's new?

New Zealand's 3,300km Te Araroa trail. Photograph: Andy Belcher

Trekking
Fancy a stroll? New Zealand's 3,300km Te Araroa opens today as one of the world's longest walking routes. Linking Cape Reinga, at the northern tip of the North Island, and Bluff, on the South Island's southernmost coast, mainly by pre‑existing trails and back-country roads, it would take months to complete. A highlight is the Tongariro Crossing, across a volcanic landscape (pictured). Around 100 people a year are expected to complete the full walk.
• Download maps at teararoa.org.nz

Accommodation
New accommodation rarely opens on the Scilly Isles, but next May will see the addition of four one-bedroom, sea-view suites and seven luxury cottages to the Island Hotel's Sea Garden Cottages on Tresco. Seven nights costs from £1,295 for two, half-board.
• 01720 422849, tresco.co.uk

Teenage trip
If your teenager has been inspired by Alan Sugar's Young Apprentice, they can develop skills to thrive in the business world on a Young Entrepreneur summer camp in the French ski resort of Alpe d'Huez with Peak Horizon. Aimed at 15- to 17-year-olds, they include workshops and talks, and cost €2,499 for two weeks all inclusive, in July or August.
• 01273 244695, peakhorizon.com

Five-step city break to Madrid

1. Fly Manchester to Madrid, for the weekend of 9-12 Dec, £160pp return, or 16-18 Dec, £80 (ryanair.com)
2. Stay at Chic&Basic Colors hotel, rooms from €62 (chicandbasic.com)
3. Eat at La Broche (labroche.com)
4. Shop at 500-year-old El Rastro market, or Feria Mercado Artesanía craft fair in Plaza de España, 17 December-5 January
5. Party in the hip Malasaña district

Travel trash

What happens in Vegas, stays in Vegas, right? Well not so much anymore, according to the Las Vegas Convention and Visitors Authority, which is campaigning to stop people "over-sharing" on Facebook and other social media. Sin City's "atmosphere of adult freedom" is threatened by the posting of pictures and comments that others would prefer kept private, it says.
• visitlasvegas.com/knowthecode

Tweet ur trip

Worst travel companion
Did Lands End to John O'Groats in 2002 (in six days) with a 60+ YO Kiwi who hadn't even bought a map. Odd, but great character
@niceguysean

Travelling in Colombia with a girl from California, who lived in a tree when she was at home.
@alibaverstock

• Next week: worst hotels

Travel warning! Caution in Cairo

In the initial aftermath of the Egyptian revolution, the Egyptian State Tourist Office and several tour operators pushed Cairo as a fascinating post-revolution travel destination. Tahrir Square, the base camp for Egypt's newfound freedom, was promoted as the latest tourist attraction. However, political unrest continues and visitors should be aware of the chaos at tourist sites.

I visited Cairo last week during protests before Monday's elections. Tourist numbers were visibly down, and there was an air of lawlessness in some areas. In downtown Cairo, I witnessed three bag snatchings in one afternoon. At traffic lights on the way to the Great Pyramid of Giza, hawkers (long known for their aggressive sales tactics) leapt on to my taxi and hit our driver through his window, shouting for him to let us out so they could sell us camel rides and trinkets. They stayed on top of the car, hitting the roof and windows as we drove closer to the pyramids. I stayed 10 minutes and didn't even go inside. The police looked on powerless and bemused.

The Foreign & Commonwealth Office is currently telling travellers, especially women, to be cautious, to avoid Tahrir Square and to adhere to local customs, but is not actually advising against travelling to Egypt. However some tour operators, such as Red Sea Holidays, have temporarily suspended Cairo excursions.

Khaled Ramy, the Egyptian State Tourist Office's UK director, said: "The Egyptian Museum is open, all tourist sites are open – it's business as usual." This may be the case from afar, but for me, the hawkers' menacing faces pushed up against the back windscreen will be the enduring memory of my trip.
Shahesta Shaitly

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