10 November 2008

Embrace consumer trends for survival

The desire for social and environmental responsibility, social interaction, authentic travel experiences and fair trade practices.

These are the consumer trends the travel industry is being urged to consider during the economic downturn in the World Travel Market Global Trends Report 2008 complied by Euromonitor.

ââ¬ÅâœDuring the downturn, travel and tourism companies that adapt and integrate such business practices into their product and service offer will be best placed for survival,ââ¬~ the report says.

ââ¬ÅâœThey will gain a valuable point of differentiation in the face of declining consumer purchasing power.ââ¬~

The report also adds: ââ¬ÅâœConsumers are willing to trade up for sustainability, thus operators should let ââ¬Ëœconscientious consumptionââ¬â¢ now drive the travel and tourism industry through these uncertain times.ââ¬~

The UK section of the report identifies 'free' is the new 'f-word'.

It urges the majority of players in the travel and tourism industry to become more aware of the impact on profitability by taking account of variations in demand, careful market segmentation and, above all, willingness to pay.

ââ¬ÅâœAs well as the standard model of posting a price and then waiting for people to pay it, more and more potential customers will become accustomed to naming their own price or expecting a major portion of the product or service for free,ââ¬~ the report predicts

ââ¬ÅâœAs the level of economic activity is likely to slow until 2010, innovative means of saving money will become more attractive.

ââ¬ÅâœIndustry players will need to work harder to attract consumers and nothing grabs the attention better than the word ââ¬ÅâœFREEââ¬~.

"Free flightsââ¬~ appeal to the largest section of the target market, the report adds.

It has no quality of service disadvantage over the ââ¬Åâœfull fareââ¬~ version, price being the only difference.

ââ¬ÅâœThere is no element of bargaining or auction, a style of purchasing which is not yet widespread in the travel and tourism sector, seeing as Priceline.com in the UK is a relatively low volume operation,ââ¬~ according to the report.

ââ¬ÅâœThe travel accommodation sector in particular, which undertakes more sophisticated market segmentation than low cost airlines, is a sector whose innovative products and services could appeal to younger age brackets.

ââ¬ÅâœFor example, the demographic for [social networking site] couchsurfing.com is overwhelming young with 75% of their members under the age of 30 and almost half represent the Y Generation under the age of 25.

ââ¬ÅâœThis is unsurprising, as the experience is appealing to single leisure travellers and the backpacking market.

ââ¬ÅâœOperators wishing to engage with Generation Y should watch couchsurfing.com very closely to see how it engages with its key demographic.ââ¬~

by Phil Davies 

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• Plain English please!
  
  

  A polite request to the people who wrote this - I don't know if it is the baffling amount of management jargon, or the almost total lack of evidence to back up the highly dubious conclusions, but I could not see what point the article was trying to make. Take this one: "Free flights' appeal to the largest section of the target market, the report adds. It has no quality of service disadvantage over the 'full fare' version, price being the only difference. ??????

  By Andy Jarosz, Tuesday, November 11, 2008
• Innovative free flights?
  
  

  It's amazing people get paid for creating such garbage research. Granted I am only reading the selected quotes but in what way is offering free flights innovative (those with long memories might remember the Hoover fiasco) And how would giving away flights square with the drive towards conscientious consumption and sustainability referred to earlier in the piece? Baffling stuff.

  By mark taylor, Monday, November 10, 2008