Etude du marché du travel retail

00 Executive Summary
• International travel departures have more than doubled from roughly 600 million to 1.3 billion
over the last two decades(1). Asia has become the epicenter of growth for business travel.
• The standards of the industry are rather low and open the door to a rampant disruption.
• The conjunction of three phenomena : Asia progression in the market, a new breed of travelers
and new travelers’ mindset engendered by digital habits, pleads in favor of a fresh “people-first”
perspective on business travel, one that puts the overall wellbeing and satisfaction of the
employee ahead of policy and program considerations.
• Re-shaping travel tools and policies to better balance cost and compliance controls with
employee flexibility and freedom can also help reduce the friction of business travel.
• Re-thinking its marketing communication approach is an opportunity for Uvet to equally
challenge its current strategy
(1) World Bank, 2019

01 Market Analysis
02 SWOT
03 Objectives
04 Marketing Strategy
05 Action Plan
06 P&L
07 Monitoring System
08 Annexes
09 Confidentiality
10 Contact
Key Figures
Main Facts
Major Trends
Customers
Product Offer
Competition
Implications
Home Work

01 Market Analysis / Key Figures
A Booming Market
• Business travel spending will reach $1.7
trillion worldwide by 2022, up from $1.33
trillion in 2017 (1)
• China and the U.S. were the top markets in
terms of business travel spend, followed by
Germany, Japan, and the U.K
Driven By Three Engines
1. Asia accounts for more than a third of the
world’s $1 trillion business-travel sector, and
the region’s growth is accelerating. It is
expected to expand four times as quickly as
the North American market and more than
twice as fast as the European market (2)
2. Millennials spending will reach nearly 50%
of total spending on business flights (3)
3. The meetings and events sector, is another
driver of growth and optimism (4)
(1) Forecats, Global Business Travel Association , 2019
(2) Asian Business Travellers, McKinsey, 2019
(3) Travelling With Millennials, BCG, 2016
(4) Global Business Travel, GFK/GBT, 2019

01 Market Analysis / Main Facts
A Pivoting Industry Due To A Power Shifting
• More people are venturing around the globe in pursuit of commercial ambitions than ever before. The
bill for the industry dynamism is an unprecedented pressure on prices.
• Integration is limited along the customer journey. Then, an increasingly technology-driven generation of
road warriors, expecting higher standards challenge the industry to focus more intensely on the user.
• New travel options and digital technologies are emerging to help keep business travel productive and
enjoyable. So, Titans of the industry are now investing in improving their own platforms, incubating
startups while some travel providers innovate.

Drivers - A Call For Change
On offer side:
• The business travel platform TripActions, joined the global unicorn club with a valuation in excess of $1
billion; a recent funding round took that valuation to a staggering $4 billion.
• Companies like TravelPerk emerge to make the booking process easier, spend management platforms like
Spendesk have made paying for travel simple.
On demand side:
• Employees are demanding more flexible business travel policies, and better tools.
• More companies are looking for new ways to not only boost employee productivity, but to use business
trips to help inspire their employees’ creativity and help them come up with the next big innovative idea.

Inibitors - Venerable Sounds With Vulnerable
• Business travel is a conservative industry (outdated technology, in sharp contrast to consumer travel,
siloed, out past technology).
– Business travel programs are largely outdated, frustrating employers and employees alike.
– Current online systems or apps are not easy to use.
• All managers agreed that, by operating in silos, key industry players limit the value they can deliver to
customers. Rather than sharing information about passengers and coordinating to provide them with the
most compelling offerings in the most appealing environment possible, travel retail players continue to go
it alone in a fragmented market.
• Yet the sector is fragmented and complex, and it remains largely undisrupted yet. And, the current
economic model isn’t profitable enough to fund the kind of innovation needed to transform the
experience
(1) BCG / TFWA, 2018

01 Market Analysis / Major Trends
Market – Business Travel Slowly Evolves To Become People-First
• With the increased awareness of risks related to tax and immigration compliance, cost, and security, all
types of work-related activities performed cross-border and even cross-state within a country are under
scrutiny.
• Airlines are also adopting technology that will enable personalized, so-called “dynamic” pricing calculated
in real time based on a wide range of factors. Besides cabin class and ticket-purchase timing, the
personalized tech may take into account your corporate agreements, elite-tier loyalty benefits, and other
discounts.
• Business travel startups are transforming the industry, like Lilliputians surrounding giants, introducing
new uses.

Corporate – Travel Becomes A More Strategic And People Oriented Topic
• The standards required by corporate clients on service quality, data security and storage, as well as GDPR
compliance are very high .
• CFOs play a greater role in business traveler happiness
• A new breed of corporate traveler. impact the decision making of these stakeholders in the coming year.
• Innovational travel in the meetings sector is rising.
• Corporate travel policies are now seen as a “significant” or “growing” factor in retention. Worker
frustration in turn can dampen morale, performance and productivity.

Travelers – The New Voice
• The sharing economy moves into the C-suite : services like Airbnb and Lyft have earned growing
acceptance among business travelers (See: Annexe A) (1)
• Business travelers demand an end-to-end experience : the travel experience is the sum total of many
service touch points, all which must be executed successfully and frictionless to produce a happy
business traveler, from airlines, hotels, ground transport companies to travel agencies and duty-of-care
providers
• Mixing business and leisure, AKA bleisure, is here to stay and will grow
• Digital, personalized interactions will predominate, with smartphones used not just for tracking and
managing flight information but also for buying ancillary services such as hotel rooms and ground
transportation.
(1) Business Travel Ridesharing Survey, Skift, 2019

01 Market Analysis
02 SWOT
03 Objectives
05 Action Plan
06 P&L
08 Annexes
09 Confidentiality
10 Contact
Key Figures
Main Facts
Major Trends
Customers
Product Offer
Do Not Miss
Competition
Implications
Home Work
• Busines Traveler Profile
• New Expectations
• Close Up on USA
• Deep Dive in Asia
• Attitudes & Behaviors
• Empathic Travel
Customers

01 Market Analysis / Customer
Business Taveller Profile
• Travels nine times a year on average, and for 62% of the respondents,
business trip frequency is between one and five times a year (1)
• Business trips are reported to last 6 days on average, with an average
minimum of two and a maximum of 28 days.
• Business travelers are most likely to be between 35 and 55 years old
and male rather than females
• Choice is an increasing factor in their satisfaction
• Their likes and dislikes are well known
(1) International Business Travel Survey, Mercer , 2019
(2) Business Travel Satisfaction Survey, ChromeRiver , 2018

01 Market Analysis / Customer / Profile
Business Travelers Want To Choose
• Business Travelers want to
choose nearly everything
• Airlines, accommodation
and taxis are on the top of
the list
• It highly impact their
satisfaction rate

Business Travelers Like To Be Humain
• The main reasons why business travelers
like to travel are mainly personal, human
and emotional
• Differences appear for millennials and
between medium and frequent fluers

Business Travelers Dislike Spending Time Away From The Family
• Spending time away from the family and
unconcort (jet lag, etc.) are the top reasons
of business travelers disastisfaction
• Others pain points are unvonvenient flight
• More generally, the unexpected is the comon
ennemy of business travelers

Rogue Is Busines Travelers’ Favorite Sport
• Some basic needs
remain unsatisfied
• Reasons for rogue
are business
oriented

01 Market Analysis / Customer / New Expectations
New Expectations : Five New Must Have Emerge
• Premium Service - Amazon, Google, Apple, Baidu and Alibaba have raised customer experience and
expectations to an entirely new level. At the same time, most executives experience the exact opposite
when they travel; business travel is a disjointed, disconnected mess.
• Frictionless Freedom - Increasingly accustomed to the freedom of mobile apps and sharing economy
services like Lyft from their consumer lives, they want the same for their business travel experiences.
• Human Experience- In the past, the primary driver of loyalty in the business travel sector was points
earned for flights, hotel stays or car rentals. Today’s business travelers are increasingly looking for human
experiences that make their trips more convenient and tailored to fit their preferences.
• Privacy on-demand – Capability to choose who, when, how and why I should accept if my employers can
localize me, contact me… or not.
• Self Service Approach – Autonomy and ability to choose is a key request from business travelers

01 Market Analysis / Customer / Close UP ON USA
Convenience, Freedom At All Cost And Privacy

01 Market Analysis / Customer / Deep Dive In Asia
Asia Toward Employee’s Greater Autonomy
• 56% view travel as a perk of their job
• 2X more likely than Europeans to extend business trips to include weekends
• 69% have freedom to choose their airline or hotel (from a pre-approved list, or with no policy restrictions
at all)
• 41% willing to fly low-cost carriers for business
• 70% familiar with sharing economy accommodation with 40% consider it for business travel
• 3 demand on mobile booking platforms for 1 supply
• Asia’s business travelers are gaining greater autonomy in their travel decisions, making it critical to
address their preferences, not just those of their employers.

Asia Freedom Regarding Company Travel Policy

Asian Travelers Top 3 Priorities

Asian Travelers 4 Archetypes
• Pragmatism
• Social recognition
• Hedonism

01 Market Analysis / Customer / Attitudes & Behaviors
Attitudes
• When it comes to establishing and growing the relationships that drive businesses forward, there’s simply
no substitute for connecting in person. Ultimately, the importance of these face-to-face connections is
the very reason business travel exists (want o meet not want to travel)
• Travelers value employers who support business travel and traveler flexibility, both of which can impact
employee satisfaction and work-life balance as well as attraction and retention.
• Travelers believe that it is important for their employers to invest in technology to support them in times
of emergency or travel disruption. But they are conflicted about location-detecting technologies that they
feel might infringe on their privacy.

Behaviors
• Travelers tend to model their behavior around booking and expenses after those who are approving
them.
• About travel policy, business travelers say that flexibility they have, or don’t have, when it comes to
business travel is dependent upon who is approving it.
• Most travelers report not following the rules all the time (see Annexe B). There are many reasons
travelers report booking travel outside of their company policy. A top reason across all countries is to be
closer to their meeting or event location. The US and France also say they book out of policy to stay in a
safer location. Book out of policy to minimize any negative impact to their health and well-being. See
Annexe C).
• Travelers responded favorably to things like having a percentage of the money they saved by booking
within policy put into their paycheck and receiving bonus vacation days or paid time off.

Preferences
• Travelers are more swayed by comfort than loyalty – those whose companies allow for business class
flights are approximately 20% more likely to be very satisfied with their overall travel program than those
who are allowed to select their preferred travel provider.
• Flexibility is also an important factor in maintaining traveler satisfaction. While travelers certainly aren’t
nearly as “very satisfied” with their policy if they are allowed to pay the difference, they still tend to have
high levels of satisfaction.
• Travelers’ ability to select their preferred car rental provider is just as important for their level of
satisfaction as hotel provider or airline.
• Choice is a key feature of very satisfied travelers. They are 94% more likely to be able to choose their
preferred airline, 72% more likely to be able to choose their preferred hotel chain and more than twice
as likely to be able to choose their preferred car rental firm than very unsatisfied travelers

01 Market Analysis
02 SWOT
03 Objectives
05 Action Plan
06 P&L
08 Annexes
09 Confidentiality
10 Contact
Key Figures
Main Facts
Major Trends
Customers
Product Offer
Competition
Implications
Home Work
• The Attack
• The Reaction
• The SME as Stake
Product Offer

01 Market Analysis / Product Offer / The Attack
01. Niche apps catch a part of the journey
• Lumo predicts delays before you fly, then
offers alternative itineraries.
• Railguard helps businesses claim for train
delays.
• Rocketrip rewards employees for saving on
business trips.
• Your Parking Space is an online marketplace
for parking
02. Faster boarding and security check
• Biometric technologies such as facial
recognition may be used to speed boarding,
check-in and other processes that today are
still painfully slow and manual—like waiting
in line at the gate to board (see Annexe D).
03. Solution for employees expenses
• Divvy and Expensify, two forward-thinking
platforms for employee expense reporting.

04. More efficient and productive processes
• Corporate card company Brex
• Corporate Uber account
• Access to video conference calling via
UberConference
• Virtual access to HR benefits
• Wage Works for commuter benefits via
TriNet
• Timekeeping app Function Fox.
05. Improved services
• Since 2010, Delta Airlines has focused on
improving on-time performance and has
since jumped from 15th to 3rd on that metric
among national carriers (see Annexe E).
• The airline now uses this record to
differentiate itself from its main competitors.
• Most notably, the airline recently launched
an on-time performance pledge to its
corporate clients, promising travel credits
if Delta’s on-time arrival and flight
completion rates fall behind its main rivals.

06. Aggregator approach
• Flio integrates more than 300 individual
airport apps into one.
• For each airport, it provides a vast array of
operational information, from airport maps
to flight time- tables to lists of shops and
services; a one-click connection to airport
Wi-Fi; the ability to make in-app purchases
for further travel; as well as lounge access
and selected promotions from featured
retailers.
07. Innovative communication
• Kimpton Hotels + Restaurants has recognized
the need of people first approach with its
overarching Stay Human brand campaign
(see Annexe F)
• Room 301, a social experiment in which
successive guests staying in the same room
are prompted to contribute to in-room
activities for the next guest to discover.

08. Data and AI are entering the game
• Epteca is a prime illustration of data technology. The company partners with travel companies and
suppliers of goods and services, and uses profile data and predictive algorithms that match context and
intent to send targeted offers to travelers throughout their journey.
• Another example of using data to personalize offers is demonstrated by Optiontown, an online
travel solutions portal, which collaborates with airlines to offer travelers class upgrades and other
travel perks for a discounted price, thereby optimizing value both to travelers and travel providers.
For example, the “empty seat” option with AirAsia X is gaining attention as a novel way to create
a business class-like atmosphere in economy, by allowing travelers to purchase empty seats next to them
at a dynamic price.

01 Market Analysis / Product Offer / The Reaction
Technologie and data to flexibly respond to the unexpected
One clear opportunity for improvement is when things go wrong. Flight delays, the resulting confusion–and
lack of alignment between different sources of information (airport, gate agent, airline mobile app)–are
among the foremost frustrations for business travelers. When delays happen, access to timely, accurate
information is imperative and business travelers
want it at their fingertips.
• Some airlines are satisfying this demand by enabling real-time flight tracking on mobile devices. For
example, the FlightView feature on the United Airlines mobile application, allows passengers to see real-
time maps of flight paths and weather conditions thereby empowering travelers to make their own
decisions over arrival times and potential delays rather than relying on official estimated arrival times.
• Amadeus has launched Amadeus Common Use Service. It allows airport staff to check in passengers from
any location using a handheld device and to respond flexibly and quickly to any irregularities.
• Concur has developed mobile applications for smartphones that enable business travelers to track and
share their travel plans, manage expense reports, and book and change travel itineraries.

01 Market Analysis / Product Offer / The SME as Stake
Both Incubents And Assaillants are Targeting SME
• Hyatt Hotels Corp. is paying more attention to SMEs. Under its new Hyatt Leverage corporate
travel program, small businesses can save up to 15 percent off the lowest available room rate when
booking participating Hyatt properties. Hyatt Leverage also includes traveler tracking and spend
management tools, which can help SMEs save money on their travel expenditures.
• Best Western Hotels & Resorts’ has launched a new BW Groups RFP Tool. Created in partnership with
online hotel sales and booking provider HotelPlanner, the tool enables online requests for proposal
management, email notifications, auto-response, and reporting and analytics tools to simplify the group
booking process.
• Taptrip is free-to-use online booking tool for small to medium sized enterprises (SMEs) allows customers
to search and book travel, track employees and record expenses using just one platform
• TripActions, offering a customized booking experience for business travelers which uses machine learning
technology to reduce the time to book each trip from hours to a few minutes.

01 Market Analysis
02 SWOT
03 Objectives
05 Action Plan
06 P&L
08 Annexes
09 Confidentiality
10 Contact
Key Figures
Main Facts
Major Trends
Customers
Product Offer
Competition
Implications
Home Work
• Landscape
• Do Not Miss
• Radar
Competition

01 Market Analysis / Competition / Landscape
Players We can, they can’t We can’t, they Can
Giants
Amex, Carlson, Egencia, BDC
– Partner with China
– Claim Ministry of Foreign Affairs as client
– Serve big accounts
Me Too
Amplitude Business Travel,
Voyagexpert
Disruption Champions
Taptrip, TripActions,
TravelPerk, Spendesk…
Lilliputiens
Start-up, niche apps… (see
Annexe G)
– Offer an end-to-end experience
– Provide high end travelers support
Fake Friends
Hyatt, Best Western…
Alliance Makers
Amadeus…

01 Market Analysis / Competition / Do Not Miss
TripActions’ mission is to power the in-
person connections that move people,
ideas and businesses forward.
TripActions, a technology-enabled
corporate travel management platform,
believes that meeting the demands of both
employees and employers is possible through
systems that can deliver on the
aforementioned people-first attitude.
TripActions, offering a customized booking
experience for business travelers which uses
machine learning technology to reduce the time to book each trip from hours to a few minutes.
Companies deserve a travel solution that takes the pain out of work trips so that their travelers can
focus on being there, not getting there. With a vast selection of inventory, a personalized, intuitive
user interface, and 24/7 proactive customer support, we make booking travel fast and easy.
Companies enjoy complete travel program visibility and seamless integrations with their HR
and expense systems.
To support its customers no matter where they are in the world, TripActions have physical footprints
in Palo Alto, San Francisco, Dallas, New York City, Sydney, Amsterdam and London.

Taptrip – Taptrip is free-to-use online booking
tool for small to medium sized enterprises
(SMEs) allows customers to search and book
travel, track employees and record expenses
using just one platform.
Taptrip does business travel and expenses
differently. Founders Neil Ruth (Skyscanner,
IHG and mentor to WeWork Labs), Thomas Young
(Booking.com and serial entrepreneur) and
Jack Timblin (Sky Betting & Gaming) set up
TapTrip in 2018 to make business travel
frictionless for SMEs.
Integrations with Kiwi, Skyscanner, Uber, Booking.com and Omio mean that travel bookings
centralize into one, easy to use, omni-channel platform, reducing booking time for journeys from 43
minutes to three minutes, whilst saving a business on average of £1,200, per employee per year.
Taptrip are disrupting business travel tech by bringing the personalization and user experience of a
service such as Spotify or Netflix, to the business traveler, whilst building in control for businesses,
this has garnered industry accolades including Business Travel Disrupt Award winner 2019 at
Business Travel Show and the best UK Startup at the HNT Awards.

Start-up Description What To Monitor
Klook Klook is Asia's largest in-destination travel services booking
platform. It has raised a total of $296.5M in funding over 5 rounds.
• Number of travelers sent in Europe
• Partners
Traveloka Traveloka is reinforcing the Thai market with three strategies as
part of plans to become a leading online travel agency (OTA) in
Southeast Asia.
• Partners
Adara Adara works with the world’s largest airlines, hotels and rental car
companies to fuel their personalized messaging and relevant offers
by stitching together millions of unique traveler profiles and
proprietary travel data globally.
• Airlines starting or stopping working
with them
• Data uses
TapTrip Taptrip is free-to-use online booking tool for small to medium sized
enterprises (SMEs) allows customers to search and book travel,
track employees and record expenses using just one platform
• Partners
• Growth
• New features / services
TripActions TripActions is a corporate travel management company which
recently raised $154 million in VC funding at a $1 billion valuation.
• Customer
• Target markets

Start-up Description What To Monitor
GoEuro GoEuro is a multi-mode search tool that enables travelers to
compares and book rail, air and bus to anywhere in Europe with
one simple search, in one place on mobile, app or desktop. They
just raised a new $150 million funding round.
• Mobile app
TravelPerk: TravelPerk helps businesses manage travel for free. They have
raised over $70 million in VC funding.
• Customer
• Notation system
Evaneos Evaneos is a web platform helping travelers design, estimate the
cost, and book personalized multi-day trips by connecting them
with local agents. This French startup recently closed a $80 million
round.
• Customers
Hooper Hopper is a mobile-only travel app which uses AI to analyze billions
of prices daily to predict how prices will change and tells you
whether to buy or wait. It recently raised $100 million in funding
and is valued at $780 million.
• Mobile app
• Geographical coverage
OYO India’s largest hospitality startup which operates a network of
budget hotels. The company was founded in 2013 by 18-year-old
Ritesh Agarwal and has now raised more than $1.5 billion from the
likes of Sequoia Capital and Softbank.
• Customers

01 Market Analysis / Competition / Radar

01 Market Analysis / Competition / Radar
Flio
Your Parking Space
Expensify
Divvy
WageWorks
Flight View
Airbnb
TripActions
TapTrips
Carlson
Egencia
BDC
Amex
Amadeus Common
Use Service
Klook Rochetrip
Epteca
SpendDesk
OptionTown
GoEuro
Evaneos
Hooper
Railguard
Lyft
Travel Perk
Olset

01 Market Analysis / Implications
A Necessary Upgrade 1/2
1. Travel companies can no longer solely rely on their traditional corporate contracting functions. They
must also attract and engage business travelers directly
2. Reviewing and updating company policies around travel and the flexibility associated with it can be a
way to make employees feel more productive on the road and not as exhausted when they return
home.
3. Educating your travelers on policy and the options and benefits that are included for them when they
book through the company booking channels can help them become more knowledgeable. This also
may lead to incentivizing travelers to book their next trip within policy.
4. Travelers largely report taking cues on travel policy compliance from whomever approves their
trips/expense reports. What can companies do to leverage this influence approvers seem to wield? One
way might be to include policy refreshers in manager trainings.

01 Market Analysis / Implications
A Necessary Upgrade 2/2
5. Travelers are largely in favor of employers using technology to support their well-being on the road, but
they aren’t comfortable with employers knowing their every move. Companies may have to do a
balancing act to be sure travelers understand the importance of managing their travel through the
company tools and providing the most up-to-date contact information so they can be contacted while
on the road without feeling that “big brother” is watching them.
6. New customers with new expectations, facing a wide range of relevant offers, need to be addressed in
new ways
7. The decision making relating to travel will become more ambidextrous including both CFOs and CHRs

STRENGTHS
• Serve high demanding segments
• Proprietary tool
• Loyal customers
• Relation with Asia throughout headquarter
• Well / Not well balances portfolio of customers
• Well / Not well balances portfolio of products
• Prepared for bleisure
• Able to integrate new partners
WEAKNESSES
• Deficit of notoriety
• Technology limitations
• Siloed organization
• Misaligned capabilities with upcoming expectations
• No bet nor experiments on data, AI, chatbots…
OPPORTUNITIES
• Market growth and dynamism
• Strong need for user experience improvement
• Increasing request for business travel tools that can link
together the fragmented pieces of the puzzle
• Timeframe for re-shaping travel policy
THREATS
• Unprecedented pressure on prices
• Suppliers becoming competitors
• Disruptors offensive
• Competition intensification on SME segment
• Digital phantasm
• Increasing business travelers autonomy
02 SWOT
SWOT

Etude du marché du travel retail

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Etude du marché du travel retail

Similar to Etude du marché du travel retail (20)

More from Les Brigades du Marketing - www.lesbrigadesdumarketing.com

More from Les Brigades du Marketing - www.lesbrigadesdumarketing.com (20)

Recently uploaded

Recently uploaded (20)

Etude du marché du travel retail