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Insight into travel & transportation

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Insight into travel & transportation

  1. Perpetual Motion Why Travel & Transportation will never be the same Fjord Strategy August 2012Slide 1 © Fjord 2012 | Confidential
  2. What we‟ll cover1. Setting the scene The landscape and how it’s changed2. The new frontier Key themes for understanding the new landscape3. What do we do now? Principles for travelling4. Opportunity spaces Areas to apply these frameworks and principlesSlide 2 © Fjord 2012 | Confidential
  3. 1. Setting the sceneSlide 3 © Fjord 2012 | Confidential
  4. We get around At home (or in a familiar base) Mobility is core to the On my On my way human condition – we somewhere way back have evolved based on our motion. At the heart of this is a very simple cycle. Somewhere elseSlide 4 © Fjord 2012 | Confidential
  5. Simple concept, vast ecosystemSlide 5 © Fjord 2012 | Confidential
  6. People are ruining everything(for traditional businesses)Peer-to-peer services are cutting into territory formerly owned by industry giants• Hotel chains• Guide books• Specialised Tour Operators• Navigation & Traffic….and are branching out into public transportation and Car Rental too…Businesses will need to drastically upgrade their value propositions if they are to survive.Slide 6 © Fjord 2012 | Confidential
  7. And there‟s no place like home anymore(these people may be rare, but they‟re influential)Colocation for the non-wealthy.• As globalisation and the availability of low-cost intercity travel sends more and more business travellers around the world for work, a growing number of these road warriors maintain multiple residences in the places they visit most often (or like the best). They challenge notions about what it means to be „at home‟ – which home?The 2000k commute.• The same low travel costs make it possible for people to live wherever they want to, sometimes commuting a few hours by plane rather than by car or public transport – for example, the CEO of a London-based startup might live in the Alps to be close to his favourite hobbies and give his children the kind of upbringing he thinks best, and commute to London every week*. These people take the demand for commuting efficiency in air and long-distance rail travel to a whole new level.Global Nomads are a real, and growing, segment.• “Global Nomads,” professionals who have no fixed address at all, have very sophisticated preferences and advanced knowledge of the travel industries – what‟s more, they have become hubs of travel knowledge and advice for their social networks.* This is a true scenario involving a person known to Fjord.Slide 7 © Fjord 2012 | Confidential
  8. These aren‟t the right questions Business or Leisure? Long or Short? Budget or Luxury? ? City Break or Adventure? Family, Romantic or Solo? Guided or Independent?Old-school travel categories aren‟t fluid enough to address the needs of today‟stravellers, and create dangerous levels of fragmentation in a digital service environment.Different things are important to different people, and these questions don‟t adequatelycapture context. So what does?Slide 8 © Fjord 2012 | Confidential
  9. The critical question for travelIs it ROUTINE? Or is it an EXCEPTION?• Twice a day between Bethnal • Somewhere I‟ve never been Green and Oxford Circus • Somewhere I usually visit alone• Once a month from Berlin to or for business, this time going London with family or friends• Once a year from London to • A mode of transport I rarely use Thailand (e.g. road trip in a rented car)Slide 9 © Fjord 2012 | Confidential
  10. This shapes fundamental priorities ROUTINE VS. EXCEPTION Delays Directions Friends Places/Sights Distraction Focus Efficiency DiscoverySlide 10 © Fjord 2012 | Confidential
  11. Routine ExceptionSlide 11 © Fjord 2012 | Confidential
  12. Routine ExceptionSlide 12 © Fjord 2012 | Confidential
  13. Routine ExceptionSlide 13 © Fjord 2012 | Confidential
  14. Routine ExceptionSlide 14 © Fjord 2012 | Confidential
  15. Personal context is the next layerRoutine vs. Exception is the foundation of context for travel and transportation. The nextlayer is personal preferences – including financial comfort, hobbies and interests,destination preferences, accommodation priorities, etc.Slide 15 © Fjord 2012 | Confidential
  16. I am who I am,wherever I amPeople like to run, or enjoy art, or greatcoffee. These preferences travel with themwherever they go.Slide 16 © Fjord 2012 | Confidential
  17. Social factors complete the pictureThe topmost layer is the individual‟s social graph – family, friends, trust networks andcollective preferences.Slide 17 © Fjord 2012 | Confidential
  18. My people are an extension of me Family, friends, partners – loved ones are an important part of how we travel, whetherSlide 18 © Fjord 2012 | Confidential they are with us or elsewhere.
  19. A framework for opportunityTaken together, these layers of context create a framework for evaluating servicepropositions and uncovering new opportunities for business and customer relationships.Slide 19 © Fjord 2012 | Confidential
  20. 2. This is a new frontierSlide 20 © Fjord 2012 | Confidential
  21. Three keys to navigating the landscape1. The Experience is as important as the destination. Car manufacturers have understood this for years. Whether the customer‟s expectation is a quick and effortless journey, or the journey is the focus, an experience that extends beyond traditional boundaries can have massive value and impact.2. Peer-to-Peer services are here to stay. No longer a supplement to traditional business, or a money-saver for students and budget travellers – P2P services now offer quality and professionalism equal to or greater than the industry leaders.3. Everyone (and everything) is everywhere. Even when we‟re not physically present, we‟re virtually there. Aggregate data from the masses supports the needs of the individual. Mobile content sharing means we can take everyone on holiday with us. Review sites provide the means for instant global broadcasting of every delight – and every complaint.Slide 21 © Fjord 2012 | Confidential
  22. Theme: The experience is as important as the destination Whether it‟s efficiency or exploration, experiences need to match with expectations.Slide 22 © Fjord 2012 | Confidential
  23. KLM now offers a service that allows customers to select seatmates based on Facebook or LinkedIn profiles, giving passengers unprecedented control over their on-board experience.Flying high Virgin Atlantic has taken their experience well beyond the simple flight – in addition to award-winning seats and a swank on-board bar, their lounge, spa and chauffeur service extends the overall „rockstar‟ promise.Slide 23 © Fjord 2012 | Confidential
  24. The open roadSome people love to drive. Whether they‟re focussed on getting there as quickly as possible, or ondiscovering something new along the way, in-car interfaces need to give drivers the freedom toconfigure the experience that suits them on that day – scenery or traffic, official or peer-to-peer.Slide 24 © Fjord 2012 | Confidential
  25. Freedom of movement At the opposite end of the scale is the self-driving car, which Google has been testing and could be on the streets in less than a decade. As drivers relax into only part-time (or less) responsibility, they‟ll have more attention for content – email or documents on the way to and from work; games for old and young alike.Slide 25 © Fjord 2012 | Confidential
  26. Precious momentsDelivering the right experience means understanding theunique needs of any journey –P2P services offer hugeflexibility in terms of lodging, tours, activities, socialopportunities. Big chain hotels with a „one size fits all‟mentality are finding it increasingly difficult to compete. Boutique and design hotels, meanwhile, have gained ground because they offer another kind of value – free high-tech amenities like WiFi and iPod docks, sometimes even iPads, combine with beautiful design and personal service that travellers remember, value and recommend.Slide 26 © Fjord 2012 | Confidential
  27. Don‟t make me think! With the proliferation of review and price comparison sites, many travellers – especially those with less experience – are feeling overwhelmed. This has led to a sharp increase in the use of travel agents over the past 12-18 months (including niche agencies such as Black Tomato, shown here), and also explains the rise of curated collections like Tablet Hotels and Design Hotels. These businesses provide a service that assures travellers the experience of their journey will meet their desires and expectations, without them having to do the legwork.Slide 27 © Fjord 2012 | Confidential
  28. A vehicle for everyjourneyAutomobile manufacturers no longerstop at cars – in an effort to capture aconsumer market more concerned withenvironmentally friendly, healthiertransport, many manufacturers (VW,BMW, Mercedes, Maserati, etc.) arenow making bicycles as well.Some have also engaged with theshort-term car hire market throughprograms like BMW‟s DriveNow.Slide 28 © Fjord 2012 | Confidential
  29. Theme: P2P is here to stay We are only at the beginning of the Peer-to-Peer revolution.Slide 29 © Fjord 2012 | Confidential
  30. Pro-sumer evolvesinto pro-merchantFlat sharing, once relegated to bare-bones listingssites like Craigslist, has become a legitimate business– and it‟s not just about flats anymore. People are nowsharing all sorts of things – houses, bicycles, flats,boats, unoccupied land.P2P services stay competitive by taking a smaller cutthan traditional agents, but equally importantly theyobserve the behaviours of their users and adjust theexperience accordingly. Gidsy and AirBNB bothprovide a framework that‟s strong enough to enableand encourage both merchants and buyers to engage,yet open enough to flexibly accommodate users‟unforeseen ideas.Slide 30 © Fjord 2012 | Confidential
  31. P2P technology catches upThanks to NFC technologies and marketplaces like the Apple and Android app stores,high-end security infrastructure is no longer the exclusive domain of the manufacturer ormajor auto rental agency. The P2P service Getaround offers its customers proprietarytechnology similar to that used by DriveNow or Zipcar.Equivalent security from a neighbour and a megachain? This completely alters theterrain, capitalising on the basic human desire to connect with others. Provided theservice and technology are up to par, many will choose P2P over corporate for emotionalreasons alone.Slide 31 © Fjord 2012 | Confidential
  32. The personal touchWhat sounds better: a one-size-fits-all touraround town, led by a bored and underpaidguide, or a customised and intimate walkfocused on what *you‟re* interested in, led bysomeone who‟s passionate about it, in yournative language?. Humans will almost always choose the more personalised, intimate, tailor-made engagements. This is why services like Gidsy are so successful – they faciliate the connections between those willing to offer experiences and those who want to partake in them. No large corporation could offer a comparable breadth of choice.Slide 32 © Fjord 2012 | Confidential
  33. Something for every budget Because P2P service platforms are inherently flexible, they tend to contain a much broader range of cost options. Renting a flat that sleeps 10 on AirBNB could cost less than a double room at a high-end hotel; borrowing a car from the guy down the street will almost certainly be cheaper than agency rates.Slide 33 © Fjord 2012 | Confidential
  34. Theme: Everyone (& everything) is everywhere We take more than luggage with us when we travel.Slide 34 © Fjord 2012 | Confidential
  35. Everybody‟s holiday Gone are the days of the awkward post- holiday slidshow. Nowadays, thanks to Twitter, Facebook, Instagram, EyeEm, iCloud etc., we can take our friends and family with us when we travel. While many people still create photo books (physical or digital) when they get home, increasingly people share their travels on the fly and let their whole social network participate in the journey. The other side of this is that we can take anything with us on the road – whether that‟s work to catch up on, or our entire library of beachside fiction.Slide 35 © Fjord 2012 | Confidential
  36. Safety in numbersThe flipside of P2P services areaggregate data services. Large-scalereview sites like TripAdvisor, Yelp andQype have been helping people foryears, but newer services are takingthings further.Waze uses data from millions of users togenerate realtime traffic alerts andnavigation, as well as show driversuseful tips like speed camera and speedtrap locations, accidents, and who offersthe best fuel prices.Slide 36 © Fjord 2012 | Confidential
  37. Mash it up!Banjo, Sonar and Circle use aggregate datafrom multiple social platforms to provideconnections and suggestions.These services provide value by translatingmasses of data into useful, actionableinformation - without the need to read dozens ofreviews and suggestions.Slide 37 © Fjord 2012 | Confidential
  38. How are youfeeling?A new bumper crop of objects arecoming onto the market to helpsoften the effects of distance.These appeal to road warriorswith partners and children athome, as well as to parentswhose adult children andgrandchildren live far away.Visceral and simple, theseobjects evoke a sense oftogetherness that traditionaltechnological services – texts,emails, even photos – cannot.Slide 38 © Fjord 2012 | Confidential
  39. 3. What do wedo now?Principles for travelling throughthe new landscapeSlide 39 © Fjord 2012 | Confidential
  40. Let people be the inspiration We‟ve already established that the traditional categories of travel and transportation are not relevant anymore. The only way to successfully negotiate this changing landscape is to put people first. Observing human behaviour – and there are ample opportunities at every airport, hotel lobby and train station to do so – is the surest way to uncover opportunities to improve existing services and invent new ones.Slide 40 © Fjord 2012 | Confidential
  41. Make it pleasant, not seamlessClever services make the transition from one step to the next feel pleasant andunderstandable – but not invisible. Particularly when moving around, we need tounderstand where we are and what‟s going to happen next.Research has shown that something as simple as notifications of delays to a flightsignificantly increase customer satisfaction and trust – and these SMS are not seen as anintrusion, because they provide relevant information.Different destinations have different immigration and security requirements – servicesthat help travellers know what to expect can gain a lot of goodwill, and businesses thatstrike a balance between making things run smoothly and managing customerexpectations will continue to win in the travel landscape.Slide 41 © Fjord 2012 | Confidential
  42. Match complexity to contextTravel can be hugely complex –every transit station, airport androad system has its ownpeculiarities, and this can bestressful for seasoned travellers andoccasional holidaymakers alike.Then again, frequent travellers areeasily irritated by superfluousinformation about places andsystems they already know.Taking note of which journeys areroutine and which are exceptional,and adjusting the default informationsettings accordingly, will go a longway to improving the experience oftravel.Slide 42 © Fjord 2012 | Confidential
  43. Balance the measures of success Single point of focus Focus on many areas at once Know „what‟ but not „why‟ Confusion The trick is to choose a framework of KPIs that work together to show you not just what your customers are doing, but why they might be doing it; not just how your business is performing, but where the opportunities lie to improve.Slide 43 © Fjord 2012 | Confidential
  44. Look at the whole ecosystem People engage with many hubs of the travel ecosystem on every journey – think if it as a series of interconnected parts that can work together.Slide 44 © Fjord 2012 | Confidential
  45. When you put people first, great thingscan happen for business.Slide 45 © Fjord 2012 | Confidential
  46. 4. Opportunity Spaces Places to apply our thinkingSlide 46 © Fjord 2012 | Confidential
  47. Think laterallyOne of the most prominentpatterns in all this change is theblending of concepts that usedto be kept separate. Gidsy, forexample, is a combination of anumber of existing ideas; it‟sthe combination that‟sinnovative. Social Localisat ion Grap h P2P Event Com m erce PlanningLooking acoss contexts of use Sp ecialist Nicheto find new value in existing Know led g e Int erest sinformation opens up greatopportunities for service basedrelationships.Slide 47 © Fjord 2012 | Confidential
  48. Everywhere ishomeConnected objects and the app ecosystem openup the possibility to make anywhere – any car, anyairplane seat, any hotel room – feel a bit more likehome.Auto manufacturers have already begin to embedpersonal preferences in an NFC or SIM basedkeyfob. What if my entertainment, food andsleeping position preferences could be saved andapplied to every airplane seat I travel in?Or what if every hotel room I stayed in had a lampthat connected to my daughter‟s night-table athome?Personal touches like this are precious to people,and offer an opportunity for larger players – hotelchains, airlines, railways – to establish deepervalue in their passenger relationships.Slide 48 © Fjord 2012 | Confidential
  49. No more „us vs. them‟All this P2P trading has made many traditional businesses nervous, but it doesn‟t have to be such apitched battle.What if the big players helped to facilitate P2P interactions? What if cities funded and facilitated localexperts and tour guides? Or auto manufacturers facilitated shared-ownership schemes? What if ahotel chain co-branded with like-minded flat owners to create a hybrid service that brought the best ofboth worlds to the consumer?Opportunities exist to break down boundaries and establish new business models that allowbusinesses to do what they do best – and people to do what they do best.Slide 49 © Fjord 2012 | Confidential
  50. The portable selfOne of the most common causes for stressamongst travellers is remembering all the thingswe‟ll need for the journey. These are remarkablysimilar from person to person, and indeed hotelchains have long provided toiletry kits for anadditional fee.What if a service could learn what I need forwhich kinds of journeys and transmit thatinformation to anyone who could use it?What if a hotel (or an AirBNB host) provided notonly basic toiletries and WiFi, but also chargers,and perhaps even a card for the local PublicTransit System?Something as simple as chargers for laptop,phones and cameras saves up to a kg or more inpacking weight, and lightens the mental load aswell. And anticipating a customer‟s needs canfeel, to them, like magic.Slide 50 © Fjord 2012 | Confidential
  51. Interpreters needed As new mash-up services begin to resolve the crisis of choice and travellers become more comfortable with P2P options, the market for travel agents and package operators will contract again. But people will still need guidance – whether that‟s someone to help them plan their entire journey or simply someone to show them around once they get there. P2P services that offer end-to-end planning could be the next big thing, and businesses that help to facilitate this could establish themselves for a long-term win.Slide 51 © Fjord 2012 | Confidential
  52. Personal data brokerageAs customers become more savvy about their data, new opportunities open for merchants to barter discounts orfreebies in exchange for access to personal information. This means opportunity for deeper, more meaningfulrelationships with customers.Slide 52 © Fjord 2012 | Confidential
  53. Remember: It‟s the system, not the part.Slide 53 © Fjord 2012 | Confidential
  54. The end.Slide 54 © Fjord 2012 | Confidential
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