0
Travel of the Future
and the Future of Travel

Dr Patrick Dixon Chairman Global Change Ltd
ALL	
  	
  	
  BIG	
  	
  	
  TRENDS	
  	
  	
  ARE	
  	
  	
  RELATED
But strategies often
overtaken by events
World can change faster
than you can hold a board meeting
8
• Click	
  to	
  edit	
  Master	
  text	
  styles

11
WGP	
  1980-­‐2013	
  (%,constant	
  prices)	
  
US	
  GDP	
  1980-­‐2013	
  
(%,constant	
  prices)	
  
EU	
  GDP	
  1980-­‐2013	
  
(%,constant	
  prices)	
  
Vietnam	
  GDP	
  1985-­‐2011	
  
Russia	
  GDP	
  1998-­‐2012	
  
>40% WDP by 2015
— IMF - adjusted for Purchasing Power Parity
China	
  travel	
  bookings	
  >$100bn	
  2013
$15bn	
  online	
  -­‐	
  500%	
  growth	
  2008-­‐13
•Cli

•Cli
21
Travel	
  is	
  about	
  ............
Travel	
  is	
  about	
  EMOTION
•Cli

•Cli
24
•Cli

•Cli
25
•Cli

•Cli
26
Video-conferencing - Tele-presence
20% growth a year $2.7 billion in 2011
Expect further rapid Video-conferencing growth
BUT often low or negative emotional engagement
Personal Apps / SMS eg Hotel Tonight /
TripIt / Taxi Magic / ZipCar

Gap between
home and work
experience
Business	
  AND	
  Leisure	
  
• 33% of tourism spending in
London is by business travellers
• Want freedom
33%	
  in	
  UK	
  don’t	
  watch	
  live	
  TV
95%	
  EU	
  bandwidth	
  soon	
  video
36
80%	
  lost	
  in	
  <10	
  seconds
70%	
  in	
  Russia	
  are	
  online	
  -­‐	
  99%	
  own	
  a	
  mobile
Russia	
  online	
  travel	
  grows	
  20%	
  /year

	
  	
  	
  	
  93bn	
  Rub	
  sales	
  2013
Where	
  can	
  I	
  stay	
  ?
Online	
  travel	
  revolu^on

Hotels,	
  conference	
  centres	
  and	
  travel	
  agents	
  
need	
  to	
  respond	
  in...
 	
   	
  	
  	
  	
  	
  
What	
  c	
  an	
  she	
  see	
  
online	
  ?
Huge growth aggregators
Price
Transparency
MANAGE
TEAM
TRAVEL
COST CUTTING
Can be demoralising
46
47
Budget	
  Air	
  Travel	
  

48
BUDGET BOOM: $24 billion on 234 Airbus planes

49
50
Night Flight or Day Flight
Going out or coming home? – work, food, drink, chat, party, unwind,
dark, quiet, sleep, leave

...
Easier	
  to	
  work	
  on	
  High	
  Speed	
  Trains	
  
COST CUTTING
Can be demoralising
HOTELS
Business customers
are changing
Room
Key
Hotel	
  booked
on	
  arrival	
  
in	
  city
Would recommend
you to a friend ?
80%	
  under	
  35	
  year	
  olds	
  in	
  US	
  use	
  social	
  media	
  while	
  travelling	
  
1	
  trillion
pages	
  a	
  month
74	
  million	
  users	
  a	
  month
33%	
  business	
  travellers	
  
post	
  comments
"Perfection!, Wonderful hotel. Goo...
•Home
•Work
•Online
•Offline
•Sales
•Entertain
•Phone
•Mobile
•Chat
•Mobile

KNOW YOUR
CUSTOMER
Travel and Room
Preference...
LOCATION
LINKED
MESSAGING
• Zettabyte

= 1024 Exabytes
Exabyte = 1024 Petabytes
Petabyte = 1024 Terabytes
Terabytes = 1024 Gigabytes That's a data
e...
Life	
  is	
  Short	
  	
  

Do things you believe in
Total life-cost of travel
Work faster and efficiently
Flexible, agile, stay ahead
Problems sorted rapidly
Safe, on time, trusted
+ Control costs + C...
Travel of the Future
means doing it together

Dr Patrick Dixon
slides and videos: globalchange.com -13 million users
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel
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Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel

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Keynote on future travel industry trends for American Express / TAP in Moscow, by Patrick Dixon, conference speaker. Future of hotels, airlines and travel agents – innovation in the travel industry. Future of business travel and leisure travel. Travel industry continues to be vulnerable to major shocks – politically, global economy, environment or other factors ranging from volcanic eruptions to the Arab Spring. Strategies of travel companies and global corporations are being overtaken by events. Impact of energy prices on future of aviation and global travel.

Expect spectacular growth of aviation and rail travel in emerging economies such as China and India. The irresistible human desire to travel, explore, and gain new experiences will underpin consistent global growth in travel and tourism, despite new carbon and aviation taxes. Globalisation will also continue to force executives to sacrifice home life for travel, despite growth of teleworking and virtual teams.

Business travel will grow every year over the next 20-30 years, powered by growth in emerging markets, while travel within the EU and the US will remain relatively static. Russia internal and international air travel will also grow rapidly. Asia will represent more than 40% of the global economy in Purchasing Power Parity by 2015.

China travel bookings are already worth more than $100bn a year of which $15bn was booked online in 2012 – up 500% on 2008 figures. Expect huge changes in how people are organizing their own travel.

What is travel really about? Business travel is dominated by one word – not economics or saving money, but by the same issue which is driving leisure travel. One single word is influencing all of human history. That word is emotion: related to passions, desires to breathe the same air as the people we work with or talk to. That is why audiences don’t like listening to keynote conference speakers on a video relay. Travel is about building trust with business colleagues. Emotion is about understanding local cultural context, about relating to customers in a deep way. It is true that videoconferencing is growing 20% a year but not enough to curtail business travel. Most people do not enjoy video conferencing and prefer to talk on the phone – unless video is between family members. In the workplace, most people are relatively uncomfortable to perform in front of a camera. Expect that to change, but the fundamental need for human relationships will drive travel. It is ironic that most people have better technology at home and faster bandwidth, than they do at work. They also have better experiences online with things like travel tools – using personal Apps like Tripit which reports with SMS, diary updates and so on with live updates of flight delays, alternative routing suggestions. Virtual travel assistants are a big growth

Published in: Business, Travel

Transcript of "Future of Travel Industry, Tourism, Hotels, Hospitality and Business Travel"

  1. 1. Travel of the Future and the Future of Travel Dr Patrick Dixon Chairman Global Change Ltd
  2. 2. ALL      BIG      TRENDS      ARE      RELATED
  3. 3. But strategies often overtaken by events World can change faster than you can hold a board meeting
  4. 4. 8
  5. 5. • Click  to  edit  Master  text  styles 11
  6. 6. WGP  1980-­‐2013  (%,constant  prices)  
  7. 7. US  GDP  1980-­‐2013   (%,constant  prices)  
  8. 8. EU  GDP  1980-­‐2013   (%,constant  prices)  
  9. 9. Vietnam  GDP  1985-­‐2011  
  10. 10. Russia  GDP  1998-­‐2012  
  11. 11. >40% WDP by 2015 — IMF - adjusted for Purchasing Power Parity
  12. 12. China  travel  bookings  >$100bn  2013 $15bn  online  -­‐  500%  growth  2008-­‐13
  13. 13. •Cli •Cli 21
  14. 14. Travel  is  about  ............
  15. 15. Travel  is  about  EMOTION
  16. 16. •Cli •Cli 24
  17. 17. •Cli •Cli 25
  18. 18. •Cli •Cli 26
  19. 19. Video-conferencing - Tele-presence 20% growth a year $2.7 billion in 2011
  20. 20. Expect further rapid Video-conferencing growth BUT often low or negative emotional engagement
  21. 21. Personal Apps / SMS eg Hotel Tonight / TripIt / Taxi Magic / ZipCar Gap between home and work experience
  22. 22. Business  AND  Leisure   • 33% of tourism spending in London is by business travellers • Want freedom
  23. 23. 33%  in  UK  don’t  watch  live  TV
  24. 24. 95%  EU  bandwidth  soon  video
  25. 25. 36
  26. 26. 80%  lost  in  <10  seconds 70%  in  Russia  are  online  -­‐  99%  own  a  mobile
  27. 27. Russia  online  travel  grows  20%  /year        93bn  Rub  sales  2013
  28. 28. Where  can  I  stay  ?
  29. 29. Online  travel  revolu^on Hotels,  conference  centres  and  travel  agents   need  to  respond  instantly  to  e-­‐mail
  30. 30.               What  c  an  she  see   online  ?
  31. 31. Huge growth aggregators
  32. 32. Price Transparency
  33. 33. MANAGE TEAM TRAVEL
  34. 34. COST CUTTING Can be demoralising
  35. 35. 46
  36. 36. 47
  37. 37. Budget  Air  Travel   48
  38. 38. BUDGET BOOM: $24 billion on 234 Airbus planes 49
  39. 39. 50
  40. 40. Night Flight or Day Flight Going out or coming home? – work, food, drink, chat, party, unwind, dark, quiet, sleep, leave Best  for  Business  ? Out  /  Back  
  41. 41. Easier  to  work  on  High  Speed  Trains   COST CUTTING Can be demoralising
  42. 42. HOTELS Business customers are changing
  43. 43. Room Key
  44. 44. Hotel  booked on  arrival   in  city
  45. 45. Would recommend you to a friend ?
  46. 46. 80%  under  35  year  olds  in  US  use  social  media  while  travelling  
  47. 47. 1  trillion pages  a  month
  48. 48. 74  million  users  a  month 33%  business  travellers   post  comments "Perfection!, Wonderful hotel. Good value, beautiful views.“ This was the most beautiful hotel. Clean, friendly and good value. “Worst hotel I have ever been in. Should be closed down.“ NEVER stay in this terrible place. Rats, insects, dirty. Many guests got sick.
  49. 49. •Home •Work •Online •Offline •Sales •Entertain •Phone •Mobile •Chat •Mobile KNOW YOUR CUSTOMER Travel and Room Preferences
  50. 50. LOCATION LINKED MESSAGING
  51. 51. • Zettabyte = 1024 Exabytes Exabyte = 1024 Petabytes Petabyte = 1024 Terabytes Terabytes = 1024 Gigabytes That's a data explosion of 44x in approximately 10 years. BIG Data Who  travelling  where, how,  when,  why,  NOW?  
  52. 52. Life  is  Short     Do things you believe in Total life-cost of travel
  53. 53. Work faster and efficiently Flexible, agile, stay ahead Problems sorted rapidly Safe, on time, trusted + Control costs + Compliance / reports + Economies of scale + Duty of care
  54. 54. Travel of the Future means doing it together Dr Patrick Dixon slides and videos: globalchange.com -13 million users
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