Study Sees Shrinking Profits on Package Sales

Study Sees Shrinking Profits on Package Sales.

The facts are that The U.S. packaged travel marketplace was flat in 2012 and is expected to achieve less than 3% annual growth from 2013 to 2015.

While Traditional travel agencies remain the largest distribution channel for packages (67%) despite growth in online packaging and supplier direct sales, Hotel own websites coninue to grow, as they “update their websites and expand in-destination ancillary bookings”.

Only some of the largest vacation packager brands have meaningful amounts of website bookings; online direct sales account for only 7% of all traditional vacation package bookings.

Traditional Travel agency share is expected to be virtually flat from 2013 through 2015. OTAs’ share of the packaged travel market fell from 32% in 2011 to 31% in 2012, and it will remain at that level for the next few years.

n general, traditional vacation packages are stagnating as more travelers have begun to seek Internet options to create their own vacations, the study said.

According to PCW, the segment is having particular difficulty in appealing to younger consumers.

Digital Intelligence & Automation for Hospitality & Travel

Digital Intelligence for Hospitality and Travel: The technology landscape. – The Analytic Hospitality Executive.

We are already in the digital age but it is still just the beginning of the beginning, as Churchill would say not event the end of the beginning. Its a good time to start thinking about how your hotel and tourism marketing is automated. Automation is a must, we cannot keep up with event the latest Google changes let alone the entire world of change.

What we tend to get wrong in understanding technology that does things for us, is that its real value is not just that it does it, it is much more about what it knows. Automation systems are knowledge systems that should be updated with the latest big data experience and know-how. The new robots of the digital age are massive intelligent systems that we will need to work with to stay on target with our industry and our customers.

We simple cannot keep up if we try to do it all ourselves, mostly because we will not know what to do!

10 Travel Technology & Distribution Trends | PhoCusWright

10 travel technology and distribution trends.

The overriding trends is diversification in marketing: That actually is my take on it and somewhat consistent with the HotelNewsNow report which draws on the PhoCusWright summary folloing WTM in 2013.

HotelNewsNow starts with how new content patterns are challenging distribution and again this is about diversification in content providers. As i say in my book, we are all publishers now and this is having a growing impact on distribution as we as suppliers start to use the media to interact with guests and potential guests. We call it the Ubiquitous footprint – see video on You as Publisher.

“Ubiquitous online communications allow even small hotel companies to connect with customers in real-time, allowing them to shop and book without delay. Those same companies, as well as the individuals they serve, also are better able to collect and integrate itinerary data from multiple sources without a GDS:Says Cees Bosselaar of PhoCusWright.

The report draws on Phocusrights “Travel innovation & technology trends: 2013 and beyond” report during the World Travel Market in London. It goes on to illustrate 10 trends that we should be watching now.

▶ Tourism Marketing: The TravelShopping Footprint & your Website

▶ Tourism Marketing: The TravelShopping Footprint & your Website

▶ Tourism Marketing: The TravelShopping Footprint and your Website – YouTube.

This video is one of many free videos by http://TourismMarketingMachines.com. All videos are tutorials and case studies on marketing hotels and tourism. The Video talks about how you can build differentiation and position your hotel and your self as an expert in your destination. Just plain old common sense which we overlook a lot.

With Travelers shopping on 28 sites on average before they book, its vital that hospitality owners and managers do all they can to attract attention and get customers to return. Much more will be convert and at more depth in upcoming videos at Tourism Marketing Machines.