PhoCusWright's FYI

Package, Tour or FIT: Defining the Packaged Travel Market

PhoCusWright — Tue, 30 Jun 2009 00:00:00 +0000

Package? Tour? Or FIT? Just What Is Packaged Travel? June 30, 2009 At $18.3 billion in 2008, packaged travel represents a substantial piece of the total U.S. travel market, but it is also one of the more complex and fragmented segments as well. In its simplest form, packaging represents the bundling of travel products and reselling them as a combined single product, called a package or tour. A consumer (or travel agent) generally books the package in a single transaction. There are several different types of packages, as well as several different types of companies that create them. There is also a great deal of overlap and gray area among different types of packages and travel packagers. Tour operators such as Apple Vacations and Southwest Vacations are well known. But online travel agencies (OTAs) such as Expedia, Orbitz, Priceline and Travelocity could also be considered as travel packagers. As the...

DMOs—Do You Know What Your Visitors Are Looking For?

PhoCusWright — Tue, 23 Jun 2009 00:00:00 +0000

DMOs—Do You Know What Your Visitors Are Looking For? June 23, 2009 Most destination marketing organizations serve multiple masters, from local governmental bodies to competing in-destination travel suppliers. But arguably no master should be greater than the visitor himself, the all-important customer bringing his dollars into the destination’s tourism economy. Destination Web sites play no small role in the travel planning and shopping process. But what drives travelers to visit destination Web sites? What are they looking for? While many DMOs place much emphasis on accommodations, travelers are also clearly looking for local insight into activities, events and attractions to enhance their experience when they get there. Visitors of DMO Web sites cited information on activities, events and local dining as important—or more important—than information on accommodations, according to the new report PhoCusWright’s Destination Marketing: Understanding the Role and Impact of Destination Marketers. Travelers are looking to destination Web sites...

PhoCusWright Debunks Major Vacation Rental Myth: SNAD

PhoCusWright — Fri, 19 Jun 2009 00:00:00 +0000

PhoCusWright Debunks Major Vacation Rental Myth: SNAD June 19, 2009 It is the vacation rental industry's dirty four-letter word: SNAD. It stands for "significantly not as described" and refers to a seemingly widely held perception that, all too often, travelers arrive at a home or condo they rented for their vacation to find it is, well, significantly not as it was advertised to them. But despite the consumer travel media coverage of those negative experiences with vacation rentals (see these articles in USA Today and The New York Times), PhoCusWright research clearly indicates that such occurrences are outliers. In fact, vacation rental guests are extremely satisfied. According to PhoCusWright's Vacation Rental Marketplace: Poised for Change, a landmark study of the industry, nine in 10 vacation rental guests intend to rent again within three years and would recommend to a family member or friend. PhoCusWright also asked previous vacation rental guests...

Tour Operators and Packaged Travel Represent an $18.3 Billion Market

PhoCusWright — Thu, 18 Jun 2009 00:00:00 +0000

Tour Operators and Packaged Travel Represent an $18.3 Billion Market New Study From PhoCusWright Provides In-Depth Analysis of the U.S. Tour Operator and Packaged Travel Landscape June 18, 2009 The packaged travel market in the U.S. is large, complex and—until now—significantly understudied. With more than 700 tour operators and online packages representing over US$18.3 billion in gross travel sales in 2008, companies from across the travel industry should take note. Commissioned by the American Society of Travel Agents (ASTA) and researched and produced by PhoCusWright, The U.S. Packaged Travel Landscape: 2006-2010 is the first definitive and comprehensive study of the tour operator and packaged travel market in the U.S. This landmark report provides in-depth analysis of a complex and fragmented market, covering market size, growth trends, distribution patterns and important product developments. The study also delivers critical analysis of the major trends, opportunities and challenges facing both providers and sellers...

Booking Fees and the Bottom Line

PhoCusWright — Wed, 17 Jun 2009 00:00:00 +0000

Booking Fees and the Bottom Line PhoCusWright Launches Financial Edition With a Competitive Analysis of Online Travel Agencies June 17, 2009 The booking fee promotional war among online travel agencies (OTAs) stole headlines earlier this spring and PhoCusWright, the travel industry research authority, had to wonder who would be left standing by year's end. After all, booking fees have been an important source of income for the Big 3 OTAs—Expedia, Travelocity and Orbitz—and now that they have dropped airline ticket fees and cut hotel fees, what could possibly replace that revenue stream? Especially now as travel demand is collapsing. Does the Model Work Without Fees? Exploring the Financial Impact of the Fee Cuts on Online Travel Agencies analyzes the financial performance and the viability of each of the major OTAs. This report is the first in the newly launched PhoCusWright Research Subscription: Financial Edition and is available as a free...

Philip Wolf Invites You to The PhoCusWright Conference

PhoCusWright — Tue, 16 Jun 2009 00:00:00 +0000

Philip Wolf Invites You to The PhoCusWright Conference June 16, 2009 Dear Colleagues: It is that time of year again—the 16th year to be exact—when travel, tourism, hospitality and media professionals are making plans to attend The PhoCusWright Conference. Over the years, The PhoCusWright Conference has attracted an awesome accumulation of attendees seeking to engage, debate and define the ever-evolving reality of travel commerce, e-commerce and m-commerce, making it the travel industry's "go to" event year after year. This conference embodies how all types of travel, tourism and hospitality companies—young and old, large and small, east and west—can differentiate themselves. Last year's inaugural Travel Innovation Summit@The PhoCusWright Conference proved highly successful. Showcasing the travel industry's best technology-driven innovations among start-up, emerging and established companies, the event created an excellent platform for product launches and enhancement announcements. This special day and exciting format are ideal for corporate development and senior strategy...

Travel Economics: How did we get here and when do we get out?

PhoCusWright — Fri, 12 Jun 2009 00:00:00 +0000

How did we get here and when do we get out? June 12, 2009 Current U.S. travel industry economics aren’t a pretty picture—investment has ground to a halt, demand is declining to the worst levels in decades, and prospects for near-term improvement are at best, uncertain, and at worst, distant. But the tough times won’t last forever. Certain cyclical and secular (i.e., noncyclical) economic realities will ultimately drive the industry through the recession to recovery and eventually a rebound. The long-term prospects for travel demand and investment are promising. PhoCusWright analyst and Cornell professor, Dr. Bill Carroll describes the current state of travel in the article Travel Industry Economics: Dismal but Not Desperate. Dr. Carroll adeptly describes economic realities of the travel industry and projects recovery scenarios for air, lodging, car rental, cruise and OTAs. While focusing on current challenges, travel industry managers should not neglect planning for the future....

PhoCusWright Connect Will Unite Travel Leaders for Interactive Discussion and Debate

PhoCusWright — Tue, 02 Jun 2009 00:00:00 +0000

PhoCusWright Connect Will Unite Travel Leaders for Interactive Discussion and Debate June 2, 2009 PhoCusWright Connect, the new forum for global travel leaders to actively engage and debate the latest industry trends and issues, was launched today by PhoCusWright. The social community serves as an extension of www.phocuswright.com and offers news, commentary, video and social networking features. Bruce Rosard, vice president of sales and marketing at PhoCusWright explains "PhoCusWright Connect is a live online community that allows executives and researchers to discuss, debate and define the future of how consumers search, shop and buy travel." PhoCusWright Connect features blog posts from PhoCusWright analysts and other select bloggers, video interviews with leading travel industry executives, photo streams from a variety of conferences, PhoCusWright's Twitter feed, Google's Friend Connect, a Wall for community member comments, a section featuring alumni from The Travel Innovation Summit, and the Disqus commenting tool providing interactivity between...

DMOs are Centrally Positioned to Influence Travelers

PhoCusWright — Fri, 29 May 2009 00:00:00 +0000

DMOs are Centrally Positioned to Influence Travelers May 29, 2009 With a national, state or local mandate to stimulate and influence tourism and visitor spending, destination marketers stand apart from the traditional for-profit travel intermediary. DMOs, CVBs and NTOs must partner with, empower and compete against online travel agencies, tour operators and suppliers when it comes to travel marketing. Destination marketers face a range of challenges including tough competition with other destinations, implementing new technologies, justifying their value amidst shrinking budgets and balancing the needs of their diverse constituencies of hotels, attractions and other in-destination services. PhoCusWright’s Destination Marketing: Understanding the Role and Impact of Destination Marketers reviews the current state of destination marketers (DMOs, CVBs, NTOs) and their importance to consumers and industry partners. This soon to be released report addresses important topics such as: Factors influencing consumers' destination selection and travel purchasing decisions Percentage of overall travel influenced...

Seattle Town Hall Breakfast

PhoCusWright — Tue, 19 May 2009 00:00:00 +0000

Join Philip Wolf June 3 in Seattle for Town Hall-Style Discussion and Breakfast May 19, 2009 Join PhoCusWright's president and CEO, Philip Wolf, for a Town Hall Breakfast in Seattle, WA on Wednesday, June 3. Come dine in an intimate setting and find out what is on Philip's mind regarding current marketplace trends for the global travel industry. Network and enjoy the company of your industry colleagues. This is a great opportunity to ask questions, generate discussion and interact with your peers. Please register by Wednesday, May 27—the US$99 registration fee includes your meal. Event: Breakfast, great conversation and open Q&A Guests: Pacific Northwest travel leaders and Philip Wolf, president and CEO of PhoCusWright Location: Campagne Restaurant, Seattle, WA Date: Wednesday, June 3, 9:00 am – 11:00 am (Arrive at 8:30 am for check in and networking) Connect with travel leaders from across the Pacific Northwest at this event to...

Top U.S. Consumer Travel Trends

PhoCusWright — Mon, 18 May 2009 00:00:00 +0000

PhoCusWright's Consumer Travel Report reveals the most important consumer trends shaping today's marketplace May 18, 2009 Recessionary markets provide extraordinary opportunities to observe shifts in consumer behaviors and attitudes. PhoCusWright projects that the total U.S. travel market will decline 11% in 2009, returning the industry to pre-2006 levels. This decline reflects a dramatic shift in consumer demand levels, and new research from PhoCusWright's Consumer Travel Report provides valuable insight into the changing behavior of today's traveler. Top U.S. Traveler Trends Move over boomers—Generation Y has come of age Twenty-five to 34 year olds are spending the most per household on travel and 18-34 year olds are significantly more likely than older age groups to indicate that they plan to travel more this year. While boomers are commonly described as the wealthiest generation, the 45-64 age group is spending the least per household on travel and is also the most likely...

Indian Online Travel: Still Miles to Go

PhoCusWright — Fri, 08 May 2009 00:00:00 +0000

India: How Far it Has Come…Still Miles to Go May 8, 2009 Ram Badrinathan, PhoCusWright's general manager, Asia Pacific, describes the potential of the Indian online travel market in the article below. It was recently published in the Travolution magazine. At first glance, the Indian online travel scenario might come across as a market "still waiting to happen." Indeed, a number of factors have conspired to limit growth, including: an inadequate supply of hotel rooms, low Internet and credit card penetration, and a significantly smaller aviation market than China, its neighbor to the north. Yet despite these very real challenges and limitations, India still has perhaps the most dynamic and innovative online travel market in the entire Asia Pacific (APAC) region. India's deceptively robust online travel market can be attributed to several conditions. For starters, the country boasts the largest travel Web site in the entire APAC region in terms...

Move Over Boomers, Y Has Come of Age

PhoCusWright — Mon, 27 Apr 2009 00:00:00 +0000

Move Over Boomers, Y Has Come of Age April 27, 2009 For years, the travel industry has been inundated with the message, "the boomers are coming, the boomers are coming." Painted as a marketer's dream, the importance of today's biggest and wealthiest generation has been placed front and center by demographers and analysts across industries. Companies hoping to tap into their sensationalized spending power have long been setting their focus—and marketing dollars—on the "graying wave." New and impactful research from PhoCusWright's Consumer Travel Report shows that this strategy and this segment may not live up to expectations. Bailing Boomers The report reveals that trailing-edge baby boomers (45-54 years old) actually spent the least of any age group per household on travel. They are also the most likely to reduce their travel spending in 2009, with 27% planning reductions in travel frequency and spending. Stuck in a middle-aged slump, trailing edge...

Online Travel Will Decline for the First Time in 2009

PhoCusWright — Fri, 24 Apr 2009 00:00:00 +0000

PhoCusWright Unveils Revised Forecasts for the U.S. Total and Online Leisure/Unmanaged Business Travel Market Through 2010 April 24, 2009 PhoCusWright revealed updated market numbers from PhoCusWright's U.S. Online Travel Overview: Update 2009-2010 in a Webinar held yesterday. A sign that online travel has come of age, the online leisure/unmanaged business travel market is projected to decline 3% to US$93 billion in 2009. This marks the first time since PhoCusWright began tracking the marketplace in 1998 that online travel has fallen year-over-year. Representing more than one third of the total travel marketplace, the online leisure/unmanaged business travel market is now more or less mature and far more susceptible to broader swings in the economy and the total travel marketplace. While online travel will decline in 2009, it will still far outperform the broader travel market and return to positive growth much sooner. With the recession in full swing and leisure and...

It Is Finally Time for Mobile

PhoCusWright — Wed, 22 Apr 2009 00:00:00 +0000

Applying Mobile Technology to Travel Commerce April 22, 2009 After years of waiting for mobile technology to have an influence on travel, consumers worldwide are finally adopting advanced devices in large numbers. While existing mobile travel applications largely treat mobile devices as simply an additional access point for existing content, the next generation of mobile applications, currently under development, will begin to serve the real-time needs of the mobile traveler. According to PhoCusWright's Mobile: the Next Platform for Travel, travel transactions conducted by mobile devices are expected to reach 160 million in 2010. If today's major travel players are not at the heart of innovation, new players will emerge to take their place in the mobile travel space. Carroll Rheem, PhoCusWright's director, research, explains the importance for travel companies to take a proactive stance toward mobile applications. This new medium requires a new strategy and message—it is not just Web...