trends and factors
The Travel and Tourism industry is constantly changing and must respond to the factors and trends that affect the industry. Here I will review three trends and three factors that are currently affecting the travel and tourism sector. Then I will explain to you, the reader, how developments, trends and factors are currently having a significant effect on the travel and tourism sector. Finally you will be able to read my analysis of how travel and tourism organisations are responding to changing trends and factors.
HOW THE TERRORISM AND CIVIL UNREST EFFECTS EGYPT'S TOURISM-
There are many trends and factors which effect the tourism industry and people's choice of where they decide to visit. They can either effect the country positively or negatively. These factors are: natural disasters, health warnings, epidemics and pandemics, terrorism, environmental issues, cost of travel and world recession. The factor which has effected Egypt most is terrorism.
Egypt has long been a popular destination for British holidaymakers - its Red Sea resorts offer sandy beaches, a warm climate and diving opportunities. Since the uprising of 2011 that ousted its long-time leader, Egypt has been rocked by political turmoil and terror attacks. This has had a dramatic negative impact on the country's tourist numbers. According to the Travel and Tourism Council, in 2010, Egypt saw 650,000 UK visitors which decreased in 2011 to 500,000. In 2012, the number of visitors increased to 400,000 and then decreased again in 2014 to 300,000. There are many reasons for this decrease in visitors over the past four years for example, civil unrest and various terrorist attacks throughout the country. These statistics show that over the past five years there has been a great decrease in tourist arrivals to Egypt. During this period is when there have been many terrorist attacks and civil unrest. Tourists want to feel safe so this is a huge factor when choosing their holiday destinations. If a destination is not safe then tourists will go elsewhere. Even though the statistics for 2015 haven't yet been released, I predict that the number of visitors have decreased due to the high threat of tourism throughout this year and the previous years.
(Source 37: www.wttc.org, 2015)
(Picture 22: www.bbc.co.uk, 2015)
Egypt has long been a popular destination for British holidaymakers - its Red Sea resorts offer sandy beaches, a warm climate and diving opportunities. Since the uprising of 2011 that ousted its long-time leader, Egypt has been rocked by political turmoil and terror attacks. This has had a dramatic negative impact on the country's tourist numbers. According to the Travel and Tourism Council, in 2010, Egypt saw 650,000 UK visitors which decreased in 2011 to 500,000. In 2012, the number of visitors increased to 400,000 and then decreased again in 2014 to 300,000. There are many reasons for this decrease in visitors over the past four years for example, civil unrest and various terrorist attacks throughout the country. These statistics show that over the past five years there has been a great decrease in tourist arrivals to Egypt. During this period is when there have been many terrorist attacks and civil unrest. Tourists want to feel safe so this is a huge factor when choosing their holiday destinations. If a destination is not safe then tourists will go elsewhere. Even though the statistics for 2015 haven't yet been released, I predict that the number of visitors have decreased due to the high threat of tourism throughout this year and the previous years.
(Source 37: www.wttc.org, 2015)
(Picture 22: www.bbc.co.uk, 2015)
The Foreign and Commonwealth Office (FCO) advise against all travel to: the Governorate of North Sinai due to the significant increase in criminal activity and continued terrorist attacks on police and security forces that have resulted in deaths. Over 900,000 British nationals visit Egypt every year. Most visits are trouble-free. On 31 October 2015, a flight from Sharm el Sheikh to St Petersburg crashed in North Sinai. According to reports, it is thought that there was a bomb implanted in the plane which caused the plane to explode in mid air and crash into the Egyptian desert. Along with this, in June 2015, 2 Egyptian police men were killed in the Pyramids terror attack by an Egyptian terrorist group. As Parliamentary elections are scheduled to take place from 18 October to 23 November, there may be rallies around the country in the run up to the elections. Tourists are advised to avoid all rallies and demonstrations. In previous elections British nationals have been arrested close to polling stations. Since 2013, attacks have mainly targeted the security forces, their facilities and other government buildings. There have been threats to western nationals, institutions, and businesses posted on websites and social media. Foreigners could be targeted in tourist resorts or other places. Attacks could be indiscriminate and may occur without prior warning. There is a threat of kidnapping, particularly in remote desert areas. On 22 July 2015, a foreign national was kidnapped in the western desert. He was murdered in August 2015. A terrorist group has claimed responsibility for his murder. Enhanced security measures are in place to protect the Sharm el Sheikh and Hurghada resort areas. Security forces are situated at the international airports, at check points around the perimeter of the towns and throughout the Governorates. Routine security checks are being performed on entry into the airport and the police are carrying out vehicle checks in the towns. Protests, marches and demonstrations can occur across Egypt, often on Fridays, but also at other times and with little prior notice. British and foreign nationals have been arrested during demonstrations. The atmosphere at demonstrations can change quickly and without warning. Police may use water cannon, tear gas, birdshot or live ammunition for crowd control.
(Source 35: www.gov.uk, 2015)
(Picture 23: www.gov.uk, 2015)
(Source 35: www.gov.uk, 2015)
(Picture 23: www.gov.uk, 2015)
In 2011, Cruise liners and tour operators continued to tweak itineraries as the unrest in Egypt escalated, leaving travelers on edge during what is the peak season for Nile River cruises.These protests were occurring just weeks after similar outbreaks took place in Tunisia, causing cruise lines to cancel calls there. In response to the protests aimed at the Egyptian government, the U.S. State Department posted a travel warning, advising that "U.S. citizens avoid travel to Egypt due to ongoing political and social unrest." Meanwhile, the U.K. Foreign Office has a notice on its site, advising against "all but essential travel" to the area.
(Source 39: www.nbcnews.com, 2015)
(Picture 35: www.nile-cruise-egypt.com, 2015)
(Source 39: www.nbcnews.com, 2015)
(Picture 35: www.nile-cruise-egypt.com, 2015)
Tourism minister Hisham Zaazou says the hope and challenge is to report a major return to profitability in the first part of the year. But some observers say this may prove difficult. They say the industry depends on
international public opinion of Egypt’s safety in a time of continued unrest. Egypt needs more economic diversity, and to reduce its dependence on travellers. Tourism is a very important but volatile sector. So Egypt cannot pin their
economic strategy on a sector that one or two bombings or one or two assassinations may impact adversely. For Egypt to escape widespread crushing poverty, the country needs to invest in industry and export goods. Three years of political upset have led two Egyptian governments to collapse. And, economists say
even if the government succeeds in getting tourists to return, it will still need to depend heavily on foreign aid.
(Source 38: learningenglish.voanews.com, 2015)
international public opinion of Egypt’s safety in a time of continued unrest. Egypt needs more economic diversity, and to reduce its dependence on travellers. Tourism is a very important but volatile sector. So Egypt cannot pin their
economic strategy on a sector that one or two bombings or one or two assassinations may impact adversely. For Egypt to escape widespread crushing poverty, the country needs to invest in industry and export goods. Three years of political upset have led two Egyptian governments to collapse. And, economists say
even if the government succeeds in getting tourists to return, it will still need to depend heavily on foreign aid.
(Source 38: learningenglish.voanews.com, 2015)
The Foreign Office says it is working to resume flights between the UK and Sharm el-Sheikh in Egypt, after they were suspended amid security fears. All flights were grounded, stranding thousands of Britons, after intelligence suggested a bomb may have caused a Russian jet to crash killing all 224 people on board. The UK is helping with security and it is hoped flights will resume on Friday. About 20,000 Britons are said to be in the resort, including 1,000 residents. The decision to suspend flights came as the Egyptian President, Abdel Fattah al-Sisi, arrived in the UK for talks with Prime Minister David Cameron. Thomas Cook cancelled its flight and holiday programme to Sharm el-Sheikh until 12 November. Thomson Airways along with First Choice, cancelled all outbound flights to Sharm el-Sheikh up to and including 12 November. British Airways postponed its Thursday flights to and from Sharm el-Sheikh until Friday. EasyJet cancelled all flights to and from the resort on Thursday and is keeping future flights "under review". Monarch cancelled all flights in and out of Sharm el-Sheikh on Thursday. The Irish Aviation Authority said it had directed Irish airlines not to fly to or from the area until further notice. Thomas Cook is offering customers due to travel to Sharm el Sheikh up to and including Thursday 12 November the opportunity to cancel or re-book their holiday free of charge, offering a £25 discount per person on the alternative holiday booked. As Egypt is the 8th most popular holiday destination for UK holiday makers, the travel agents and tour operators must find alternative destinations for their customers to visit. Other destinations may include: Spain, France, Turkey, Italy, Morocco, Greece and Croatia.
(Source 40: www.bbc.co.uk, 2015)
(Source 41: www.101holidays.co.uk, 2015)
(Source 42: www.thomascook.com, 2015)
(Picture 36: twitter.com, 2015)
(Source 40: www.bbc.co.uk, 2015)
(Source 41: www.101holidays.co.uk, 2015)
(Source 42: www.thomascook.com, 2015)
(Picture 36: twitter.com, 2015)
How technological developments effect the T&T industry-
In the past few years we’ve seen profound traction in the ways technology can enhance and amplify travel experiences. There have been many trends seen to enhance the travel and tourism industry this year. For example, mobile apps have continued to simplify every aspect of travel. Some of the feature and usability improvements that we’ve seen on travel apps such as Expedia and Alaska Airlines already have made it easier to plan, manage, and share our travel experiences. OneNote, our go-to travel planning solution became available for Mac and iOS users. We also anticipate that by the end of 2015, many travelers will be using their mobile devices to check-in to hotels and even unlock hotel room doors. Wearables will play a big part in this, too. Some of these innovations already are reality at select Starwood Hotels properties. The impact of mobile technology on consumer behaviour is undeniable and ever-present. Google reports that travellers spend an average of 55 minutes to book a hotel and flights; they visit 17 websites and click four different search ads per travel search and 90% of these travellers use more than one device during the booking process. 2014 saw the highest number of online travel bookings ever, reaching 148.3 million, with 65% of same day hotel reservations made via a smartphone. This growth is enabled by confidence in mobile technology, mainstreaming high-spec devices and real time pricing capabilities.
(Picture 24: viewfinder.expedia.com, 2015)
(Picture 24: viewfinder.expedia.com, 2015)
There have been expedited passport control kiosks for "trusted travelers," for a while. Aspects of this technology have allowed us to breeze through security when arriving home from international destinations. Now many of these aspects are being rolled out to the general public. In 2015, Passport Express showed up at more airports. This is the new automated passport control system that recently debuted at Miami International Airport. Ultimately, the technology should enable U.S. and Canadian citizens to have their passports processed at self-service kiosks in less than two minutes. Other improvements will come in the area of flight check-in. Alaska Airlines is leveraging technology to simplify that part of the process by allowing flyers to print claim tickets for checked baggage at home or via kiosks at the airport. Companies such as WEMO(R) have delivered on the promise of an automated home. Gatwick Airport plans to become ‘the world’s most efficient two runway airport’ by cutting down passenger transit time and getting rid of queues. Improved IT infrastructure and mobile technology provide the foundation for innovation. Aviation technology provider SITA’s 2014 Airport IT Trends Survey reports that more than 80% of the world’s airports are planning projects in the self-service and mobile areas over the next 3 years, and nearly three-quarters of airports expect most of their passengers will use self-service check-in by 2017. Multi-service kiosks, self-bag drop and self-boarding services are the big drivers of self-service in aviation, and will see a lot of investment over the next 2-3 years.However, with budgets for these developments already allocated, some airports are already seeking the next tech opportunity to help gain competitive advantage.
(Picture 25: www.futuretravelexperience.com, 2015)
(Picture 25: www.futuretravelexperience.com, 2015)
Skype Translator automatically translates your voice conversation into another language. This happens in near real-time. With this tool, you easily can connect with individuals who don’t speak your language, and make those calls from pretty much anywhere in the world. Technology has played a key role in travel for quite some time, but we are just now seeing some of the most exciting advancements yet.
(Source 44: viewfinder.expedia.com, 2015)
(Source 45: www.e3.co.uk, 2015)
(Picture 26: www.youtube.com, 2015)
(Source 44: viewfinder.expedia.com, 2015)
(Source 45: www.e3.co.uk, 2015)
(Picture 26: www.youtube.com, 2015)
greater FLEXIBILITY in booking-
With the increasing use of the Internet over mobile phones, travel companies say mobile bookings might soon overtake those done through other devices. According to a report by the Internet and Mobile Association of India (IAMAI) and IMRB International, the number of mobile Internet users has witnessed a steady rise to 159 million in October. This is estimated to reach 173 million by the end of December. There were 119 million users in urban India accessing the Internet on mobile devices in October. Rural India is not that far behind, with a base of 40 million mobile Internet users in October 2013. With e-ticketing one of the largest segments in Indian e-commerce, mobile booking is expected to see a surge in 2015. MakeMyTrip, one of the country's largest online travel companies, says more than a third of its unique visitors come via mobile, which represents 24 per cent of all online transactions. Mobile bookings will soon overtake bookings through other devices. SMS booking services are taking off in China, and perhaps a developer or entrepreneur will find a way to create a market for this in India. Mobile technologies will propel e-commerce and the travel buying experience. Indian Railways, which has the largest share in online bookings, is witnessing surge of mobile bookings as well. According to sources at IRCTC, its mobile ticket booking app receives 8,000-9,000 bookings a day through mobiles. The numbers are low compared with the 600,000 tickets booked online every day, but officials say they expect this segment to grow. MakeMyTrip's mobile platform is also the preferred channel for booking hotels. Almost 52 per cent of domestic hotel bookings done through mobile are made a day before travel (compared to 27 per cent on the web).
(Source 46: www.business-standard.com, 2015)
(Picture 27: www.hotelogix.com, 2015)
- Almost 40% of all tour and activity bookings are being made online
- Items booked on the internet before a trip: organised tours (5.1%) and entertainment activities/events (39.7%) were booked online, with the latter having doubled since the previous year
- 59% of Asian leisure travelers want to book travel products “whenever they can” and “wherever they can”
- 60% of leisure and 41% of business travelers are making their own travel arrangements, generally via Internet
- More than 148.3 million people use the Internet to make reservations for their accommodations, tours and activities. That’s more than 57% of all travel reservations each year!
- Internet travel booking revenue has grown by more than 73% over the past 5 years
- 97% of people now prefer to find business online
- 20% of Google searches being for local information
- Over 50% of today’s travelers will rush to the keyboard, rather than the phone to make their travel bookings
- 65% of tourist book hotels reservations for the same day on a mobile device
- Surveys find more than half of the traveler’s book travel products through the mobile sites and apps of travel agents.
- Travelers are likely to spend more on sightseeing than on shopping, souvenirs and nightlife combined. The 5 most common things travelers are willing to spend more on as a treat: Sightseeing (53%), special dining experiences (41%), accommodation (41%), activities (35%) and shopping (24%)
- 8% of travelers book their trip on a mobile device
- 49% of Canadian tourists orientate themselves on on General travel sites such as Expedia, Travelocity and Orbitz
travel agents response to technological changes-
Mobile technology has changed the way people plan, research and book their travel arrangements which is creating a new way for travel agents to capture customers. A recent study conducted by Nielson shows that almost half of mobile travel searches carried out in the UK end up in a booking or reservation with almost 1 in 3 doing so through their mobile devices. Travel agents can design a mobile friendly website and / or app to tailor services towards people using mobile devices, creating an edge over competitors who are failing to respond. A key factor for any successful travel company is to deliver an excellent customer service and develop strong relationships with customers. Apps are providing a valuable way for travel agents to achieve this goal. You will find many apps which help customers find travel options and book via a mobile device, but there are also specific apps for travel agents such as allowing travel agents to retrieve and change any bookings whilst out and about. This ensures they are able to maintain an excellent customer service, by offering round the clock care. Apps can also be used to improve the customer experience when on holiday. For example, travel agencies are able to provide guides to help customers find attractions, good restaurants and night life or how to get around whilst in the country. Mobile technology can also open doors for repeat business. Travel companies can now send tailored promotions directly to a customer's mobile, increasing the chances the message will be read and helping drive demand during quiet periods. By tailoring promotions, travel agencies are able to interact in a more personal way with customers and send more relevant promotions.
(Source 48: www.hslmobile.com, 2015)
(Picture 37: www.tnooz.com, 2015)
The impact of technology on travel agencies is being felt in a number of ways. Services to clients are increasingly focused and travel is becoming more experiential-based than destination-driven.
(Source 48: www.hslmobile.com, 2015)
(Picture 37: www.tnooz.com, 2015)
The impact of technology on travel agencies is being felt in a number of ways. Services to clients are increasingly focused and travel is becoming more experiential-based than destination-driven.
- Technology is providing the data needed to help agency managers streamline their operations, reduce costs, and improve revenues.
- GDSs, high traffic portal travel sites, and start-up agencies can access similar flight and hotel booking systems. This helps agents quickly filter travel options for their clients; it also enables travellers to do self service booking independently of an agency.
- Customer service is becoming easier, faster, and more cost-effective. Social media is one technology tool that enables a small staff to handle large numbers of inquiries, forward automated alerts to update travellers on delays and wait times and share interesting industry information.
- Even luggage tags have become part of the increased efficiency/data tracking system. Technology-based luggage tags have tracking systems that track the traveller’s luggage and can send real-time data via text message, email, or special app.
- Gamification is not just a newer cost-management incentive program. Gamification is another way technology is meeting travellers’ demands for more enriched travel experiences .
- Another interesting “experiential” technology is augmented reality (AR). AR combines the “physical world and virtual information” to change and expand how travellers experience their travels.
- As one industry writer noted, online data gathering is pervasive and a bit creepy, yet it also is useful in that it enables the travel agent to more effectively customize travel to the client’s interests, comfort, and well-being.
- (Source 49: tts.com, 2015)
jet 2's response to technological development-
The airline Jet2 have adapted in many ways to the changes in technology.The Jet2 app is the ideal place to search and book 1000s of ATOL protected package holidays and city breaks on your mobile or tablet. You can secure your next holiday for just £60pp deposit with their easy-to-use app. You can also save your preferences for your favourite airport and room for faster searching. In addition, you can save holidays on the menu so you can compare and book later. Filter by budget, room type and more to find exactly what you want. The app also allows you to see flight times, in-depth hotel guides and handy transfer times. You can even view photos of each hotel so you know what to expect and locate your hotel on the map view to check out the local area. Online check in also allows customers to check in 28 days before departure up until 5 hours prior to their departure. You're able to print off boarding passes online to enable to to pass through the airport quickly and with ease. If Jet2 wasn't to adapt to technological changes and changes in consumer behavior then they wouldn't be able to be a successful company.
(Source 50: www.jet2holidays.com, 2015)
(Picture 28: www.bitterwallet.com, 2015)
(Source 50: www.jet2holidays.com, 2015)
(Picture 28: www.bitterwallet.com, 2015)
Cost of travel, Environmental concern and technological development-
Cost remains the most important factor determining the choice of holiday and flight for almost a quarter of people.
More than 21% of consumers across most ages, social grades and regions cited price as the most important factor in their choice of holiday. Convenience of airport was ranked second followed by flight timing, in-flight comfort and services. The findings come from an Airports report by market intelligence firm Key Note. It found that 45.5% of the adult population had travelled by air in the last 12 months, up from 43% in 2004 and 39.4% in 2001. This suggests that about 21.8 million out of the UK adult population of 48 million took at least one flight in the past year, according to Key Note. The report says this underlines the popularity of budget airlines and their importance to UK airports. Revenues generated by airports in the UK rose by 6% to £2.82 billion in 2005, a rise of more than 15% since 2001. Passenger numbers were up by 5.8% to 228.2 million and air transport movements rose by 5.7% to 2.3 million, the report said.
(Source 51: www.travelmole.com, 2015)
(Picture 29: www.theguardian.com, 2015)
More than 21% of consumers across most ages, social grades and regions cited price as the most important factor in their choice of holiday. Convenience of airport was ranked second followed by flight timing, in-flight comfort and services. The findings come from an Airports report by market intelligence firm Key Note. It found that 45.5% of the adult population had travelled by air in the last 12 months, up from 43% in 2004 and 39.4% in 2001. This suggests that about 21.8 million out of the UK adult population of 48 million took at least one flight in the past year, according to Key Note. The report says this underlines the popularity of budget airlines and their importance to UK airports. Revenues generated by airports in the UK rose by 6% to £2.82 billion in 2005, a rise of more than 15% since 2001. Passenger numbers were up by 5.8% to 228.2 million and air transport movements rose by 5.7% to 2.3 million, the report said.
(Source 51: www.travelmole.com, 2015)
(Picture 29: www.theguardian.com, 2015)
More and more people are people are booking their holidays independently with the use of technology. However, if you book elements of your holiday independently, booking different arrangements such as flights, hotels and car hire direct with different suppliers your holiday will not be protected under the ATOL Scheme. To protect the money you have paid for your holiday and provide cover for additional expenses if your holiday supplier became insolvent whilst you were abroad you should make sure that your travel insurance includes cover for insolvency.
(Source 52: www.explainingtravelinsurance.com, 2015)
(Source 52: www.explainingtravelinsurance.com, 2015)
There are many tips and advice to help tourists to keep the cost of their holidays at a minimum. For example, it is advised that you should change up your spending money into the local currency before you go and search for the best exchange rate. Take more money than you need, as you can always change what you haven't spent once you've returned. If you don't want to be taking loads of cash with you avoid using your credit card as most providers add on a hefty fee for use abroad. Instead, look into a prepaid card. You can load it up before you go and it is not linked to your bank account. Also, if you're travelling in Europe, the European Health Insurance Card (EHIC) is a must to protect you against illness or accidents – and best of all it's free. However, it doesn't protect you from other holiday mishaps. You can also make sure that if you haven't hired a car before you leave instead, get to know the area in which you're staying before hiring one at the airport for a greater price. Hotels can normally recommend a trustworthy car rental at a lower price. In addition, it's often best to book a transfer with your flight or look for a cheap deal online, as there will be plenty about. More and more operators are offering all inclusive boards for a variety of destinations – it may seem like a hefty price upfront but it can be a saviour if you have kids who are constantly asking for an ice-cream or a drink. Just take enough spending money to cover the extras. The EU has taken steps to prevent holiday makers from receiving extortionate bills for calling, texting and roaming while abroad in Europe. But this only goes so far in solving the problem. You should invest in a ‘pay as you go' international Sim card before you travel. It's easy to do and you'll receive better rates for calling, texting and data. Unlike domestic operators, some providers even make it free to receive calls and text messages when abroad saving you additional money. Being ‘pay as you go', you can control exactly how much you're spending, topping up what you need, when you need it. Shop around online before you travel – look for family package deals and money off coupons. Online prices always tend to be cheaper, just make sure the website offering you money off is reputable. You can't always rely on your holiday provider to offer the best price possible.
(Source 53: www.moneywise.co.uk, 2015)
(Picture 30: www.e111.org.uk/, 2015)
(Source 53: www.moneywise.co.uk, 2015)
(Picture 30: www.e111.org.uk/, 2015)
growth of independent travellers-
Due to the cost of travel, environmental issues and technological developments, the number of independent travellers have increased. Independent travellers tend to be environmentally aware, with the desire to experience new ways of life and usually are enthusiastic, off-the-beaten-track explorers with a thirst for experiencing the “real thing.” They enjoy good food, architecture, and the heritage of local cultures. Also, they are an important and growing sector in the travel market. Governments, regional tourist boards and other public sectors responsible for tourism development try to attract them for the basic principle of economics. Independent travellers spread their money around in a more efficient fashion, buying from multiple locations driven by their own particular itinerary and tastes and by the intention of enjoying the local way of life. In contrast, tour groups concentrate in a few providers, which tend to spread money in a less than optimal manner. How independent travellers garner information for their trips is of vital importance. Not surprisingly, a wide variety of sources and/or tips from social websites are key.Sites such as Lonely Planet’s Thorn Tree forum or GoNOMAD.com are both examples and represent the fundamental difference between the independent and other types of traveller. Many independent travellers are even using Facebook, Twitter, Foursquare and other social networking sites to get information about trips. After all, independent travel is about the sharing and passing on of ideas and knowledge. The independent vacation is a custom-built menu fed by suggestions from friends, forums, specialty providers or others. The rise of low-cost airlines in the US and Europe has also increased the supply of alternative and lower cost short haul destinations fueling demand for these newly available markets. The internet is fundamental to the rise of the independent travelling, and as such, many traditional Travel Operators interested in tapping into this new, growing market are starting to offer fully customized travel options through their websites to create almost an oxymoron: Independent Travel Operators.
(Source 54: gadling.com, 2015)
(Picture 31: gadling.com, 2015
(Source 54: gadling.com, 2015)
(Picture 31: gadling.com, 2015
Growing numbers of British holidaymakers to Spain are choosing to travel independently rather than take a package, according to figures released by the Spanish Tourist Office. There were nearly 30 per cent more go-it-alone travellers last year, while the number of packages sold fell by almost four per cent. With package sales slow, 2004 is set to be the first year that a majority of British holidaymakers to Spain will go independently. The trend has been largely fuelled by the growth of budget flights. Last year no-frills airlines carried six million passengers to Spain - an increase of 44 per cent on the number for 2002. Adding destinations such as Murcia (offered by BmiBaby, Ryanair and MyTraveLite) and Girona (offered by Ryanair) has contributed to the growth of independent travellers. The number of visitors to Murcia alone rose by 70 per cent last year. Holidaymakers may soon face even greater choice: Ryanair is believed to be in talks with several airports in northern Spain and Thomsonfly, TUI's no-frills airline, this summer plans to start flights to the Catalonian town of Reus (already served by Ryanair). Sales for summer package holidays to Spain are down 10 per cent on last year, and this has meant better deals for the consumer. Thomas Cook is currently offering £150 off all its Spanish holidays, plus free insurance. Cosmos has discounted family deals to six of its Spanish destinations. The rising euro has prompted some holidaymakers to look beyond Spain and the eurozone countries, according to operators. "Spain is suffering a little because of the exchange rate. The eurozone countries look expensive and hotel prices are slightly more than elsewhere," said a spokeswoman for Thomson. Despite the fall in package tourists, the rise in the number of independent travellers to Spain last year meant that it consolidated its position as the most popular holiday destination for Britons, with 16.2 million visitors - a 10 per cent rise on 2002. The Canary Islands attracted more than four million British tourists last year. The Balearic Islands had 3.8 million visitors, followed by Andulusia, with just under three million.
(Source 55: skift.com, 2015)
(Picture 32: www.map-of-spain.co.uk, 2015)
Fully independent outbound tourism is growing even faster than foreign travel in general, and the market is still in its infancy. The CNTA said that in 2011, 20.37 million Chinese tourists visited countries other than Hong Kong and Macau, the two semiautonomous special administrative regions (SARs) within China. Of those, 7.7 million, or 37%, left without a group tour. Global Blue, a company that analyses taxfree shopping, estimates that up to 40%4 of Chinese travelers are independent. Qunar. com, China’s most popular website for comparing and ordering travel products, sees the overall market for independent outbound travel as 20% to 30% of the total outbound market. Still, 35% of Qunar’s customers, all of whom are self-organizers, said that they prefer group tours for outbound travel, according to its own market research. This compares to 56% of all internet users, who still prefer the comfort of a group tour when they go abroad. The vast majority of independent outbound tourists, even excluding those that go to China’s SARs, choose to visit Asian destinations. In “The Characteristics of Independent Chinese Outbound Tourists,” Yixian Xiang of Ningbo University’s Sino-European Institute of Tourism and Culture found that 56.3% visit Asia. Europe was second with 27.4%. Thailand is the most popular destination country on any continent. According to her questionnaire, Thailand attracted 9.1% of independent tourists. Thailand’s Tourism and Sports Ministry counted 2.79 million arrivals from China last year, up 62% from 2011. Of those, 1.01 million came independently, a 57.7% yearover-year increase. Thailand is particularly attractive for the ease of obtaining an independent tourist visa, low cost, proximity and mix of urban shopping and natural beauty. The growth of independent tourism can also be seen in sharp relief in Taiwan, where non-group travel from the Mainland only began in 20116 . In the first five months of 2013, 1.19 million Chinese arrived in Taiwan, a 12.38% increase from the same period in 2012. Only 780,000 came as part of a group, a decline of 1.6%. At the same time, independent tourism rose 244%7 . Individual travel is still very constrained by the countries’ agreement, but the governments are easing restrictions. In April, the cities that Mainland travelers were allowed to visit expanded to 13. The cap on the daily number of Chinese tourists allowed to enter Taiwan was raised from 5,000 to 7,000, of which 2,000 are permitted to come independent of a tour group.
(Source 56: skift.com, 2015)
(Picture 33: koogle.tv, 2015)
(Source 56: skift.com, 2015)
(Picture 33: koogle.tv, 2015)
How thomas cook responds to the growth of independent travellers-
Thomas Cook, has announced it expects its future growth to depend on a key new area: independent travel. The holiday giant, which has 97 aircraft, nearly 3,000 shops, 33,000 employees, and takes more than 19 million people on holiday each year, currently makes 80 per cent of its income from 'mainstream' holidays, usually one- or two-week packages to sunshine destinations. However, at a briefing to investors earlier this month, senior managers revealed they are expecting this percentage to fall while income from independent travel rapidly increases. The firm will attempt to sell flights, hotel rooms, car hire and train tickets separately to tourists who have rapidly become both more confident about creating their own holidays and doing without reps and organised transfer buses, and less willing to be shoe-horned into inflexible packages. A separate study released last week showed the popularity of 14-night holidays will fall below that of one-week trips for the first time next year, and that only holidays of six days or under are actually becoming more common. The move will further blur the once familiar boundaries between the big name high-street travel companies and specialist independent firms. Thomas Cook's main rival, the TUI group, which merged with First Choice in September, has also tried to diversify from traditional packages by snapping up small independent tour operators and letting them operate under their own brand names. Many well-known companies specialising in trekking, cultural and adventure tours, including Trips Worldwide, Sunsail, Flexiski, Waymark and Exodus, are now divisions of TUI, although this fact is given only the briefest of mentions on websites and in brochures.
(Source 57: www.theguardian.com, 2015)
(Picture 34: www.telegraph.co.uk, 2015)
(Source 57: www.theguardian.com, 2015)
(Picture 34: www.telegraph.co.uk, 2015)
Thomas Cook has set its sights on the fastest-growing tourism market in the world, forming a joint venture to tap into China’s appetite for holidays at home and overseas. The British travel operator and its Chinese partner, the diversified conglomerate Fosun, are putting £1.5m into the venture, which will be 51 per cent owned by Fosun. China’s domestic tourism has grown at more than 12 per cent a year since 2007. Inbound tourism to China was at 128 million visitors last year, up 10 per cent on 2013. Peter Fankhauser, Thomas Cook’s chief executive, said: “Today marks a significant milestone in our strategic partnership with Fosun. We are excited at the prospects of entering the largest and fastest-growing tourism market in the world with such an experienced partner.” Chinese travel habits are changing, from predominantly sightseeing trips to all-inclusive resorts with lots of activities and day trips. Thomas Cook’s shares have been dragged lower in recent weeks amid a scandal over the deaths of two young children on a Thomas Cook holiday in Corfu in 2006. An inquest found that Thomas Cook had “breached its duty of care”. However, the shares firmed 0.8p to 139.7p on yesterday’s announcement, reflecting the spike back in March when Fosun bought a 5 per cent stake in the 174-year-old travel group, indicating that it was part of a wider strategic partnership. The joint venture is expected to look at developing European resort-style hotels in China, as well as targeting the fast-growing outbound market for Chinese travellers. The venture will be headed by Reto Wilhelm, who is currently running Thomas Cook’s Europe businesses. China’s travel spending is projected to rise 16 per cent a year and to be worth 3.9 trillion renminbi (£404bn) by 2020.
(Source 58: www.independent.co.uk, 2015)
(Source 58: www.independent.co.uk, 2015)
Thomas Cook is doubling investment in its New Year marketing strategy and intends to drive business from both its package holidays and also holidaymakers who prefer to package up their own trips via its hotels4u brand. The holiday company, which has been pursuing a turnaround strategy focused on “high tech, high touch” since the appointment of Harriet Green as CEO, is investing £10m in the crucial holiday booking period. One ad will focus on the Sentido hotel offer and the live chat facility that allows customers to talk directly to Thomas Cook consultants; one will promote the Smartline service and the tour operator’s inclusion of independent holiday reviews on its sites and one will highlight the exclusivity of its hotel properties including Sunwing. The new ads will be the first to incorporate Thomas Cook’s “sunny heart” branding, introduced earlier this year. The ads will heavily promote online booking with the strapline “Let’s Go! “To Thomascook.com”. The company aims to move 50 per cent of its bookings online by 2015. Elements of the campaign will be extended across CRM, direct marketing and online and incorporated into the high street retail stores. There will be a promotional element to the New Year campaign with the message of up to £300 off early summer bookings. Sales, marketing and ecommerce director Mike Hoban says: “We are absolutely determined that we are going to win the battle for customers in this important trading period.” The campaign has been created by Publicis with media handled by Carat. Hoban explains that the Hotels4U business was unearthed as a brand with potential by Thomas Cook’s strategy review earlier this year. He says that it is a proposition that can be built on and compete with online travel agent offerings. The brand recently had its identity and website refreshed and its TV campaign breaks on 1 January, featuring fictional characters called Danny and Poppy. The company recently divested several niche brands including the ski brand Nielson. Rival tour operator TUI has just revealed its ad campaign for the Thomson brand based on the concept of a dad called “Simon The Ogre”.
(Source 59: www.marketingweek.com, 2015)
(Source 59: www.marketingweek.com, 2015)