MBLM FLTR Travel

TRAVEL

Travel, like many industries today, has been transformed by technology. The travel psyche is now different, with a self-empowered focus and a desire to share. Travel agents have largely been replaced, travel books generally made obsolete. How we share our experiences is now redefined.

FLTRTRAVEL

PLANNING APPING BOASTING

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This document outlines MBLM’s FLTR on Travel, and what we’ve observed, investigated and detailed in this always-evolving industry.

We’ve divided FLTR by the way we travel: Planning, which now seems centered on convenience and access; During a Trip, seemingly about enablement; and Post-Trip, which has become about sharing and fulfillment.

PLANNING GOES MOBILE

Mobile use was responsible for US

$2.6 billion in travel booking value

in 2011. That number is projected to

exceed $8 billion by 2013. 2

Google projects that in 2012 8 percent

of mobile users will be booking travel

from their smartphones. 3

According to a Nielsen study of

U.S. travelers, today 40 percent of

guests book a room using their

mobile devices after performing a

mobile search. 4

Nearly a quarter of all U.S. hotels

now offer mobile apps, according

to a survey by the American Hotel

& Lodging Association. 5

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MLANNING (M-LAN-ING), NOUN

THE ACT OR PROCESS OF USING MOBILE

TOOLS TO PLAN AND/OR BOOK TRAVEL

B O O K T R AV E L H E R E !

AMERICANS36MILLION

USESMARTPHONES

TO RESEARCH TRAVEL, AND THAT NUMBER

WILL DOUBLE BY 2016.1

Nickel-and-Diming

Airlines have angered many by reducing or removing services.

Now blankets, snacks, luggage (even carry-ons), seat

assignments and reservations can be subject to additional

charges. There are threats of additional charges for families

sitting together or for selecting window or aisle seats.

Ryanair once proposed pay toilets on its planes. 6, 7

The following observations demonstrate different trends impacting travel planning: the frustration caused by airline pricing, the need for customer reviews and the desire for the different.

Niche

Travelers are looking to visit exotic and unusual destinations

they haven’t already visited. Notes Mary Ann Ramsey,

president of Betty MacLean Travel, “Small and exotic are the

lifeblood of the industry.” In addition, “voluntourism” is on

the rise, where tourists combine travel and volunteering.

G Adventures in Toronto, Canada, has doubled its number

of voluntourism trips in the past year. 9, 10, 11, 12

Transparency

Hotels are starting to include customer ratings and reviews on

their own websites. This has been dictated by recent studies

suggesting that reviews are imperative. Forrester found that

nearly 50 percent of consumers would not book a hotel that

doesn’t have online reviews. PhoCusWright noted that people

who read online hotel reviews are 59 percent more likely to

book. Starwood and Marriott Insider both post reviews on

their websites, and Wyndham Rewards provides a stream of

recent TripAdvisor reviews. 8

PLANNING

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APPING DURING A TRIP

There are approximately 130,000

travel apps in the Apple App Store. 13

When considering all apps downloaded,

12 percent of people have downloaded

an app related to travel. 14

Across all travel apps and websites

in June 2012, U.S. Android and iOS

users spent 95 percent of their

time in apps versus 5 percent on

the Mobile Web. 15

Three of four active travelers use

their mobile device and apps while

on the move. 16

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APPLIFICATION (AP-PLUH-FI-KAY-SHUHN), NOUN

THE ACT OR STATE OF BEING APPLIFIED;

THE INCREASED OR EXPANDED USE OF

APPS WHILE TRAVELING

TOP FIVE USES OF APPS WHILE TRAVELING: PHOTOS, MAPS, SEARCH, RESTAURANTS, SEARCH ACTIVITIES, CHECK INTO FLIGHT

APPING

From increasing spending and being left alone to switching travel experiences, travelers are being catered to with more luxury shopping, more technological advancements and more innovative hotel options.

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Hey, Big Spender

A 2012 study reports that global luxury sales in airport

duty-free stores will grow 25 percent in the next two

years, reaching $44.5 billion. According to recent surveys,

passengers are often in a different mind-set when they

travel: more open to discovery, self-indulgence and gifting.

As a result, they are more demanding and expect a genuine

shopping experience. 17

Game Changers

Onefinestay, a start-up, describes itself as “the world’s first

unhotel.” The “Zip Car of hotels” allows people who are

going out of town to rent their home to travelers. It has been

launched in London and will be launched in NY later this year.

Similarly, Freehand, a high-end hostel developed by the Sydell

Group (owners of the Ace Hotel and NoMad Hotel), is aiming to

offer guests conversations and friendships with each other. 19, 20

Leave Me Alone ...

New, innovative technology is expediting the airport

experience—and helping other people avoid people and

delays. At Las Vegas’ McCarran International Airport, a new

terminal features 150 kiosks and 14 gates equipped with

self-tagging and self-boarding technology for the carriers

operating there. 18

46 percent of travelers post hotel

reviews after a trip. 22

40 percent of travelers post

activity/attraction reviews. 23

40 percent of travelers post

restaurant reviews. 24

55 percent “liked” Facebook pages

to a specific destination. 25

BOASTING AFTER A TRIP

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RESTAURANT REVIEW

VACAT I O N R E V I E WS

SMOASTING (SMOHST-ING), VERB

TO BOAST OR BRAG VIA SOCIAL MEDIA21

CRITIQUE RAVE

LIKE

SHARE

THE TRAVELER

Twitter and Facebook are providing effective outlets for customer complaints, forcing travel brands to rethink how they behave. For the jaded traveler, virtual reality and outer space are becoming new ways to explore new adventures.

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Social Venting

Once seemingly bureaucratic labyrinths, airlines have become

remarkably accessible, thanks to social media, especially in

the real-time world of Twitter. Passengers are slamming social

media sites with complaints about air travel experiences. This

raises questions about whether service has really changed or

passengers simply have more outlets for venting.

The Final Frontier

Just back home and looking for your next adventure? Time

to consider a journey beyond. Virgin Galactic may be

operating as soon as next year, just one among several firms

vying to take jaded travelers or thrill seekers to the upper

reaches of the atmosphere—and beyond. Options range from

a few moments of weightless delight (most for six figures)

to weekslong Apollo mission-style adventures. 28

If You Can’t Take It, Fake It

Virtual reality apps are becoming more commonplace,

enabling travelers to visit destinations virtually. The Mexico

Tourism Board recently created an augmented reality

postcard. Lonely Planet offers Compass City Guides on

Android screens, complete with GPS-enabled maps and

augmented camera reality views. 26, 27

BOASTING

9

ACKNOWLEDGMENTS & SOURCES

PLANNING GOES MOBILE 1 Overcoming the Mobile-Research Booking Gap. eMarketer. August 10, 2012. http://www.emarketer.com/ Article.aspx?R=1009254

2 Mobile Marketing Statistics 2012. Snaphop. 2012. http:// snaphop.com/2012-mobile-marketing-statistics/

3 Fields, Matthew. Infographic – How Mobile Technology Is Changing the Travel Industry. Social Media Chimps. May 8, 2012. https://socialmediachimps.com/2012/05/infographic- how-mobile-technology-is-changing-the-travel-industry/

4 Dennis, Brandon. Travel Plans – Mobile Search or Apps? Technorati. September 4, 2012. http://technorati.com/ technology/article/travel-plans-mobile-search-or-apps/

5 McCarthy, Cathleen. Mobile and Facebook Hotel Bookings on the Rise. Fodor’s. August 27, 2012. http://www.fodors.com/ news/mobile-and-facebook-hotel-bookings-on-the-rise- 5911.html

PLANNING 6 Steffy, Loren. What Will Airlines Charge Fees for Next? Chron. July 25, 2012. http://blog.chron.com/lorensteffy/2012/07/ what-will-airlines-charge-fees-for-next/

7 Hobica, George. Top 10 Most Obnoxious Airline Fees. Airfarewatchdog. September 21, 2007. http://www. airfarewatchdog.com/blog/3800552/top-ten-most- obnoxious-hidden-airline-fees/

8 Farley, Amy. How Hotels Are Embracing the Online Customer Review. Travel + Leisure. June 2012. http://www.traveland leisure.com/articles/how-hotels-are-embracing-the- online-customer-review/

9 Terrero, Ruth. Luxury Trend: Small and Exotic Travel. Luxury Travel Advisor. August 27, 2012. http://www.luxurytravela dvisor.com/editors-letter/luxury-trend-small-and-exotic-travel

10 Fitzsimmons, Annie. 8 Luxury Travel Trends for Summer 2012. Forbes. April 25, 2012. http://www.forbes.com/sites/ anniefitzsimmons/2012/04/25/8-luxury-travel-trends-for- summer-2012/

11 National Volunteer Week Marks the Rise of Voluntourism. The African Business Journal. May 31, 2012. http://www.tabj. co.za/african_business_news/nationalvolunteerweek.html

12 Foxman,Stuart. Adventure Travel: What’s Hot, What’s Not. Reader’s Digest. http://selection.readersdigest.ca/ node/12804

APPING DURING A TRIP 13 Fields, Matthew. Infographic – How Mobile Technology Is Changing the Travel Industry. Social Media Chimps. May 8, 2012. https://socialmediachimps.com/2012/05/infographic- how-mobile-technology-is-changing-the-travel-industry/


15 Dennis, Brandon. Travel Plans – Mobile Search or Apps? Technorati. September 4, 2012. http://technorati.com/ technology/article/travel-plans-mobile-search-or-apps/


APPING 17 Chinese Tourists Help Fuel Luxury Boom in Airports. Red Luxury. August 23, 2012. http://red-luxury.com/2012/08/23/ chinese-tourists-help-fuel-luxury-boom-in-airports/

18 Nicas, Jack and Daniel Michaels. The Self-Service Airport. The Wall Street Journal. August 27, 2012. http://online.wsj. com/article/SB1000087239639044354550457756750142 0272414.html

19 Ha, Anthony. Onefinestay Is Like a Super-Fancy Airbnb, and It Just Raised $12M. TechCrunch. June 19, 2012. http://techcrunch.com/2012/06/19/onefinestay-series-b/

20 Suqi, Rima. First Look | The Freehand Miami Beach. T-Magazine. August 20, 2012. http://tmagazine.blogs. nytimes.com/2012/08/20/first-look-the-freehand- miami-beach/

BOASTING AFTER A TRIP 21 Harrison, Tara. Smoasting: The Latest Travel Trend. Travel Weekly. August 29, 2012. http://www.travelweekly.com.au/ frontline/take-a-break/keep-on-smoasting

22 Laird, Sam. How Tech and Social Media Are Changing Travel [INFOGRAPHIC]. Mashable. March 24, 2012. http:// mashable.com/2012/03/24/how-tech-is-changing- travel-infographic/




BOASTING 26 Fox, Linda. Brings Brochures to Life via Virtual Reality App. tnooz.com. Jan 5, 2012. http://www.tnooz.com/2012 /01/05/news/saga-travel-brings-brochures-to-life-via- virtual-reality-app/#u9odVS1sRPwzTPxk.99

27 So, Winnie. 10 Top Augmented Reality Apps. CNN Travel. March 8, 2011. http://articles.cnn.com/2011-03-08/travel/ cnngo.augmented.reality.travel.apps_1_world-heritage-list- apps-android-market?_s=PM:TRAVEL

28 McKinley, Jesse. Space Tourism Is Here, Wealthy Adventurers Wanted. September 7, 2012. http://travel. nytimes.com/2012/09/09/travel/space-tourism-is-here- wealthy-adventurers-wanted.html?ref=travel

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Special thanks to the entire team

at MBLM for their contributions,

observations, insights and input—

their FLTR work on Travel made this

report possible.

FLTR is a monthly collection of shared

insights, ideas and observations

gathered from our work and the world

around us. Check out our recent FLTR

Olympics issue.

COPYRIGHT MBLM © 2012 All rights reserved.

EXECUTIVE EDITORS

Mario Natarelli

Rina Plapler

EDITORIAL AND DESIGN TEAM

Carrie Ruby

Daryl Drabinsky

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