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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. …

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

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  • 1. Travel of the Future and the Future of Travel Dr Patrick Dixon Chairman Global Change Ltd
  • 2. ALL      BIG      TRENDS      ARE      RELATED
  • 3. But strategies often overtaken by events World can change faster than you can hold a board meeting
  • 4. 8
  • 5. • Click  to  edit  Master  text  styles 11
  • 6. WGP  1980-­‐2013  (%,constant  prices)  
  • 7. US  GDP  1980-­‐2013   (%,constant  prices)  
  • 8. EU  GDP  1980-­‐2013   (%,constant  prices)  
  • 9. Vietnam  GDP  1985-­‐2011  
  • 10. Russia  GDP  1998-­‐2012  
  • 11. >40% WDP by 2015 — IMF - adjusted for Purchasing Power Parity
  • 12. China  travel  bookings  >$100bn  2013 $15bn  online  -­‐  500%  growth  2008-­‐13
  • 13. •Cli •Cli 21
  • 14. Travel  is  about  ............
  • 15. Travel  is  about  EMOTION
  • 16. •Cli •Cli 24
  • 17. •Cli •Cli 25
  • 18. •Cli •Cli 26
  • 19. Video-conferencing - Tele-presence 20% growth a year $2.7 billion in 2011
  • 20. Expect further rapid Video-conferencing growth BUT often low or negative emotional engagement
  • 21. Personal Apps / SMS eg Hotel Tonight / TripIt / Taxi Magic / ZipCar Gap between home and work experience
  • 22. Business  AND  Leisure   • 33% of tourism spending in London is by business travellers • Want freedom
  • 23. 33%  in  UK  don’t  watch  live  TV
  • 24. 95%  EU  bandwidth  soon  video
  • 25. 36
  • 26. 80%  lost  in  <10  seconds 70%  in  Russia  are  online  -­‐  99%  own  a  mobile
  • 27. Russia  online  travel  grows  20%  /year        93bn  Rub  sales  2013
  • 28. Where  can  I  stay  ?
  • 29. Online  travel  revolu^on Hotels,  conference  centres  and  travel  agents   need  to  respond  instantly  to  e-­‐mail
  • 30.               What  c  an  she  see   online  ?
  • 31. Huge growth aggregators
  • 32. Price Transparency
  • 34. COST CUTTING Can be demoralising
  • 35. 46
  • 36. 47
  • 37. Budget  Air  Travel   48
  • 38. BUDGET BOOM: $24 billion on 234 Airbus planes 49
  • 39. 50
  • 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. Easier  to  work  on  High  Speed  Trains   COST CUTTING Can be demoralising
  • 42. HOTELS Business customers are changing
  • 43. Room Key
  • 44. Hotel  booked on  arrival   in  city
  • 45. Would recommend you to a friend ?
  • 46. 80%  under  35  year  olds  in  US  use  social  media  while  travelling  
  • 47. 1  trillion pages  a  month
  • 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. •Home •Work •Online •Offline •Sales •Entertain •Phone •Mobile •Chat •Mobile KNOW YOUR CUSTOMER Travel and Room Preferences
  • 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. Life  is  Short     Do things you believe in Total life-cost of travel
  • 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. Travel of the Future means doing it together Dr Patrick Dixon slides and videos: -13 million users