Wednesday, April 30, 2008

Customers Really Matter or do they?

What is it about customer relationship marketing that turns people off?

If you invited a load of people to a conference on social networking the room would be packed with delegates expecting pearls of wisdom from twentysomething year olds.

Conversely, if you decide to host a CRM event you attract some really articulate top level speakers ready to impart valuable case studies on consumer retention but delegates are likely to be thin on the ground.

And, so it was at the Travel Technology Initiative's spring conference earlier this week.

The room was fortunate enough to hear from Virgin Holidays general manager of CRM Helen Litvak on customer segmentation; Avis' Xavier Vallee on the blog and Peter Matthews from Nucleus on online techniques to foster loyalty (more on all that later).

CRM might not be perceived as sexy but there's a lot of people out there in travel talking about it behind closed doors at the moment. It goes hand in hand with customisation and personalisation which are both being hotly tipped to be the next big development in online travel.

Maybe it's just those words and we should simply call it something else - 'look after your customers or you'll go out of business', - not very catchy!

How about Customers Really Matter? Anyone got any better suggestions?

Linda Fox, lead reporter, Travolution

Sneak peak at new hotel site - GuestHotels.com

There will probably be a fair bit of coverage in the coming days (official launch on Thursday 1 May) about a new high-end hotel chain in London.

The Guest Hotels group encompasses the Nest and Jones Hotel (both Bayswater), Blakes (Sth Ken), Guesthouse West (Westbourne Grove) and Chiswell Street Hotel (Barbican).

Interestingly the group has gone for a collaborative approach to some of the capital's creative arts projects. Thus why the trendy Sunday supplements will no doubt be all over the project.

Anyway, the site is up and running ahead of the launch tomorrow.



Kevin May, editor, Travolution

Dynamic sat-navs show promise for travel sector

Mobile services for travel are currently being talked about with as much frequency and gusto as dynamic packaging, circa 2005.

The mash-up of in-car sat-nav facilities with hotel information is also something which crops up from time to time.

So interesting to get an email from NDrive last week, boasting of a new sat-nav system which also uses aerial photography of key cities and locations to guide drivers to a destination.

Once again, it doesn't take an enormous leap of the imagination to see where this might go.

Destination content providers could quite easily add a feed into the system so a driver can find out more about a location and availability of services or products, such as hotels, using quality images rather than the current graphic-based and rather dull looking interfaces.


Kevin May, editor, Travolution

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A Declaration from Cheapflights

It seems the Google Trademark Issue (maybe we should trademark the phrase) is still sending the jitters throughout the industry.

The latest senior figure to wade in after recent news about a potential ollaboration behind the scenes and the amount of money some think they will lose has taken a different approach:

A public promise not to bid on its clients brand names.

The pledge comes from UK managing director for Cheapflights, Francesca Ecsery. This is an interesting move given that Cheapflights apparently splashes out a fair amount on PPC and could feasibly have spent even more once Google's policy changes in the next week or so.

We at Cheapflights would like to reassure our partners of the high ethical standards we hold towards our advertising partners.

As such, they have our guarantee that we would not do anything of detriment to their business, such as bidding on their brand names.

Brands will face stiff competition and may have to invest significantly more budget in protecting trademark terms from other players and affiliate sites with which they previously had none.

Ultimately, Google's PPC Quality Score algorithm will police the listings to ensure that only relevant ads appear.

Cheapflights’ relationship with its advertisers is its utmost priority and we would not do anything to jeopardise that. Therefore, we will continue to work closely in attracting the highest quality leads to their websites.

Cheapflights.co.uk drives the highest volume of traffic to the travel industry ranking second only to Google and welcomes businesses who are looking to diversify their industry leads.
Kevin May, editor, Travolution

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Purple Pod #3 OUT NOW

In the latest edition we talk to Xavier Allee (Avis), Trenton Moss (Webcredible) and Paul Furner of TravelRepublic, following the Travolution Awards last week.

Enjoy!


Click here to get your own player.



Remember you can subscribe to the Purple Pod by adding this feed to your RSS reader or via iTunes [NB: link opens your iTunes application].

Kevin May, editor, Travolution

Tuesday, April 29, 2008

E-brochure or an ad? You decide

PING!

Email arrives announcing the launch of an "e-brochure" courtesy of SilverJet.

Here it is.

Not sure at all about this - looks more like another glossy ad for the last remaining transatlantic business class-only airline.

If you say a brochure is a marketing vehicle for a product, then this both an e-brochure and an ad.



We can confirm that the aircraft in the picture is not from the new SilverJet fleet.

Kevin May, editor, Travolution

Consumer behaviour could push cruise further online

Bit of a delay, but here's our latest column for Travel Weekly, coinciding nicely with the last week of its dedicated Cruise Month:

Two years ago, Travolution asked whether cruise will ever follow other sectors in the travel industry and see a fundamental switch to online sales of its products.

There was plenty of talk among senior cruise executives about how the web was being used primarily as a content distribution platform ­ a place where potential customers could find out more about a ship or route.

Royal Caribbean International's Jo Rzymowska, who was sales and marketing director at the time, evangelised about its new i-brochure system; Ocean Village and Princess Cruises spoke of their live ship webcams.

The interesting point is nobody was able to estimate how much online bookings would grow.

Patrick Ryan of Island Cruises suggested first and second-time cruisers would probably want that human touch when making a booking, but the Œrepeat passenger business¹ would see more people booking via the web.

That time is approaching fast for many of the major cruiselines as customers become familiar with the complicated booking processes and ­ as shown elsewhere ­ naturally turn to the web for convenience.

This will become more likely if the cruiselines recognise this trend and push cheaper fares down the online channel, as so many of their counterparts did years ago.

A surge in intuitive web-based technology is around the corner, which will allow so much more scope for search and booking of complicated products ­ like cruise.

This will not be great news for the third parties currently enjoying the benefits of a buoyant sector happy to pay commission to agencies.

This is why good customer service at the beginning of the purchase funnel ­ reflecting the high-end facilities and care on-ship ­ is more important than ever to establish loyalty.

Kevin May, editor, Travolution

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Travolution Summit coverage

There is a fair bit of stuff kicking about on the web from the Travolution Summit and Awards last week.

From Travel Mole [needs registration]:
Kevin May, editor, Travolution

Shameless use of politics to plug products #94

London will be holding an election for the position of mayor on Thursday this week - the leading contenders being Ken Livingstone (incumbent and Labour Party) and Boris Johnson (Conservative Party).

So destination services agency Isango lept on the excitement yeaterday ahead of the poll and sent out this attempt at grabbing some attention for its own products.


Then follows the usual 'manifesto', etc, etc.

Kevin May, editor, Travolution

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Monday, April 28, 2008

Boffins enter 'online privacy' debate

A feature in this week’s print edition of New Scientist offers an intelligent and balanced look at online privacy, and has decided that the issue is important enough to be discussed in its leader column.

[New Scientist.com is a subscription based model, so we can’t deep-link]

Travel searches are used, along with luxury goods, as an example of target categories where data from ISPs could be commercialised.

Phorm and its US-based rival NebuAd are given plenty of column inches to defend their business. ‘We have built a system that is truly ground-breaking in terms of protecting the privacy of users,’ insists a spokesperson for the former.

As mentioned on this blog before, the laws about online privacy are evolving territory by territory. New Scientist says that it could boil down to whether an individual could reasonably have expected his/her communication to be private. ‘Bugging a conversation using a hidden device is illegal...but listening to someone calling from a busy train is okay,’ it suggests.

The leader column concludes: ‘It is important that we all understand these changes of roles [of the ISPs]. It is even more important that we have a debate about whether it is acceptable, and what the limits should be, before it is too late.’

Martin Cowen, chief writer, Travolution

British Airways gets the X-Factor

The British Airways boys at last week's Travolution Summit premiered a project they are working on with Microsoft.

The audible gasps from some parts of the room when the demo was shown by Carsten Willert and Chris Carmichael indicated that this is A Major Thing for BA and the industry in general.



The company is going beyond selling a single product to creating "experiences". Of course BA has an advantage because of its breadth of product and the soon-to-be-launched dynamic packaging capability.

Nevertheless, it's a big deal. And the fact that an airline has done it is nothing short of extraordinary - bar Expedia's Insprioscope, which of the UK OTAs are heading in this direction.?

But at least the floodgates will probably now open.

"If I was an OTA I'd be shi**ting myself," said one attendee.

Here are some screengrabs from the demo.




Kevin May, editor, Travolution

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Sunday, April 27, 2008

How does a swanky airline tell its customers it's going out of business [EOS style]

The relationship we have is very special. You have shown a true appreciation for the commitment and service that defines Eos Class and it has always been our pleasure to deliver Eos Class service to you. The sense of camaraderie and level of engagement we've developed together transcends the traditional airline space.
The customer service puffery on the EOS homepage is followed by something far more difficult to convey:

It goes on to say how the business class-only airline between New York JFK and London Stansted has filed for bankruptcy in the US and will fly its last scheduled service tonight (Sunday 27).

Who would be an airline right now?

Kevin May, editor, Travolution

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Friday, April 25, 2008

Stelios and the Travolution Achievement Award



Someone emailed earlier to ask us to publish the citation I gave:

The Achievement Award is an accolade Travolution gives each year to an individual whose influence has – we believe – helped shape the online travel industry into what it is today.

Last year’s recipient was Brent Hoberman, co-founder of Lastminute.com, who many of you would have heard speak earlier today.

So tonight we are pleased to honour yet another pivotal player of the last ten years in online travel.

Our individual does not come from a pureplay online company, one which was created on the web and with the web in mind.

In fact, he was in many respects just a supplier of a product similar to hundreds of others critical to the travel experience.

But there was a difference.

The distribution point for his service was initially a call centre. Nothing unusual in that, you might say.

However he saw very quickly what was happening to the travel industry and its move towards direct distribution via the web.

Within an incredibly short space of time the call centre was discarded in favour a fully-functional and easy-to-use website.

His model was quickly adopted by others in the sector and set a precedent in terms of how to market via the web, use PR to maximum affect and, most importantly, challenge how other suppliers use third parties to sell products.

Unusual for a supplier at the time, his company bypassed the Global Distribution Systems favoured by so many others. He didn’t need them. Consumers flocked to his product regardless.

Some have said his single-mindedness in this area in particular triggered much of the soul-searching by the GDSs in the late-1990s and early part of this century as to what their role would be in a sector increasingly reliant on a direct consumer relationships.

Most of them came through that period of introspection with a very different strategy.

But there is more… And we’re not here to talk about GDSs.

Within a frighteningly short space of time, our recipient’s product became one of the leading suppliers in Europe.

And where he led, others quickly followed.

Other suppliers soon realised that the consumer-direct model was worth investigating – in fact, they had to.

They have all adopted the B2C model and, as we have discovered tonight rather ironically, are doing it – in the minds of our judges – better.

It would be naïve to suggest that none of this would have happened without his desire to change the way products are sold to consumers.

The important point here is that he had the ambition, single-mindedness, guts you might say, to put it all into action.

The ability to spot an opening did not end once he had created one of the leading low-cost carriers in Europe – one which sold an overwhelming majority of its fares via the web.

Hotels, car hire, bus transfers, internet cafes, cinemas, personal finance, pizzas and, er, male toiletries have all followed.

Most recently, his low-cost model has been thrust at a sector not known for his lack of frills – cruise.

Say what you like about the products, and most people DO have an opinion about the products, but his determination to just simply try something should be applauded in a sector which was 15 years ago – some might say – rather lacking in innovation.

Some of his products have been a success, others haven’t. Some of the original models have been modified…

He doesn’t seem to mind.

So what about the man himself?

Our recipient is the only Knight of the Realm to feature in tonight’s awards. And the only person I spoken to in over two years at Travolution who signs his emails “serial entrepreneur”.

He has seemingly courted controversy almost all his career, from legal actions against the use of the word “Easy” by other brands to his decision to live in Monaco.

Nevertheless, he has always been guarded about his private life.

He has never disputed the fact that he was helped by his father when trying to get the airline off the ground.

This personal touch, however, leads most to say he is, without a shadow of a doubt, a people person.

In the very early days he would help baggage handlers in Luton if something went wrong.

Let’s ponder that one for moment shall we……

His larger than life character meant that he would dominate meetings, desperate to ensure every aspect of the EasyJet brand was absolutely perfect – especially the website.

His enthusiasm for the colour orange, we are told, had to be reigned on a number of occasions!

But Stelios Haji-Ioannou knows how to work people.

We were told that the brand exposure EasyJet received via prime time Airline programme on ITV was believed to be worth around £25 million worth of free airtime advertising.

Such is his own personal brand that he is almost universally known simply by just his first name.

But more importantly his devotion to challenging the status quo, showing leadership across a variety of sectors, and for reshaping the travel industry means he is should be recognised for his accomplishments.

I therefore, and on behalf on my colleagues at Travolution, announce that the recipient of the second Travolution Achievement Award is Stelios.

Kevin May, editor, Travolution

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Buying blogs must be in vogue

A sure-fire way to monetize an independent blog is to sell it.

US-based SFO Media has sold Jaunted.com and hotelchatter.com to CondeNet, the online publishing division of Conde Nast, for an undisclosed sum.

The plan is for the two blogs to sit alongside its concierge.com travel site, operating as standalone brands, cross-promoted where relevant on concierge.com. Jaunted and hotelchatter have nearly 1m unique users a month.

The press release added that ‘The Concierge.com sales team will sell placement on the blogs, both individually and included in packages with Concierge.com and cntraveler.com.’

Mark Johnson, founder of SFO, joins CondeNet as a senior director and will continue to run the sites.

The price paid is not disclosed, with none of the US wires covering the story suggesting a sum. What are a million blog readers worth?

TechCrunch’s coverage includes a graph, comparing visitor traffic to the three sites over the past year.

Coverage of the deal in the context of CondeNet’s digital strategy appears on paidcontent.org


Martin Cowen, chief writer, Travolution

Travolution Awards 2008 - Winners

A full list of winners and comments from the judges is now available on the Travolution website.

Pictures and exclusive video from Stelio Haji-Ioannou to be posted later today .

Kevin May, editor, Travolution

Thursday, April 24, 2008

Specially positioned, dangerously

Kuoni UK's MD Nick Hughes has admitted that his business has one foot in the middle-ground between scale and niche.

This is where businesses die in any mature market, according to lastminute.com's Ian McCaig. He admits that his opinions about scale and niche are 'even more entrenched' since he talked about them at last year's Summit.

But Kuoni is moving upmarket, offering customers the tailor-made high-service travel experiences 'that they expect from us'. This high service offer will require a multi-channel approach. He admits that while there is 'significant upside potential' to Kuoni's level of internet bookings - currently in the teens - it is finite. 'High ticket value leads to a different customer behaviours,' he suggests. 'It's essential to be multi-channel for where we want to be.'

After just over a year in the business, the thing that Jones has found most surprising is that the 'specialist players are not extracting the margins they should.' Does that mean an admission of a shortcoming in Kuoni's yield management, or an awareness that specialists need to be more specialised to get the margins.

I wonder what he'll be saying when Peter Rothwell has settled into the Kuoni CEO role?

Martin Cowen, chief writer, Travolution

Quotoid #12

Lastminute CEO Ian McCaig is still feeling a little upset despite an hour of therapy at lunchtime he tells us.

"I don't know if there is anyone from Google left in the room but it's lastminute.com from a trademark perspective. Sorry, I know that's cheap, well, certainly cheaper than protecting my trademark on Google."

Quotoid #11

Yen Lee, president, Uptake (formerly Kango)

When asked about differences between the US and Europe:

"What's surprised me is that when there are so many really strong brands in Europe, we've spent 80% of today talking about price. People don't go to Barcelona because it's cheap. They go because of what they can do there. Think more about the experience, rather than the cost."

The Search Gap

Some good insight from Gareth Williams of Skyscanner on what's wrong with search in the travel sector.

What Williams terms as the 'gap' in search appears when you enter something like a flight number and what you get back is nonsense.

It is a problem that needs solving and is something that is holding the industry back.

"Travel desperately needs a solution to getting flight information and a number of other areas . One of the reasons that search gap exists is search technology for travel is really difficult. It lags behind other sectors," said Williams.

He goes on to say that if Google solves the problem there is the incentive of huge margins and it will make for a more efficient experience for consumers.

Over the course of today's Travolution conference we have heard a lot about different sectors of the industry taking each other on - kayak attacking tripadvisor and google - and now it seems Skyscanner is gearing up to also take on Google with its answer to much improved flight information.

Meanwhile, we have Thomson Holidays considering less reliance on the search giant.

It's that recurring theme of what do we do about Google?

Linda Fox, lead reporter, Travolution

Quotoid #10

Bruce Poon Tip, CEO of G.A.P Adventures

[context - one its ships had to be evacuated late last year when it hit an iceberg in Antarctica]

"We handled the situation as it happened quite well. The negative publicity only started when customers returned home and the lawyers and insurance companies got involved."

Run, Google, run...

Steve Hafner, CEO and co-founder of kayak.com, talks to Philip Wolf, giving a level of insight into his business which would have the corporate PRs of a listed company looking nervously at their Sarbanes-Oxley compliance notes.

Kayak is on the verge of launching a travel-specific vertical ad network, giving Google a run for its money. Hafner suggested this would happen 'within 45 days'.

Kayak bought Sidestep for $175m, essentially to get the audience. But Sidestep's travelpost.com will become Kayak's user review site, giving tripadvisor a run for its money.

Kayak will get the range of European hotel inventory through agency partners, supplier partners and, interestingly, 'hooking into a GDS', giving the bedbanks a run for their money.

Kayak employs 58 people - 32 in technology, the balance in the commercial teams. Travelocity has 10,000. Hafner says: 'We're all web sites, so that's where we all should be innovating, but they haven't changed theirs much in the past ten years, despite their massive human capital.'

Metasearch will work in Europe because of online penetration levels and supplier fragmentation. While there are more metasearch in Europe than the US, Hafner 'isn't too impressed with their technology'.

Kayak is the suppliers' friend - it can offer better conversions than Google, while its ad network will be cheaper than Google.

Martin Cowen, chief writer, Travolution

Quotoid #9

Steve Hafner, co-founder and CEO of Kayak:

"The morsels that we would find tasty would be technologies, teams or audiences."

Quotoid #8

Mike Saul, corporate director, Hospitality and Leisure, Barclays Commercial Bank

"A large part of the banks' due diligence [into the Thomas Cook/MyTravel and First Choice/TUI Travel deals] was 'integration risk' - how effectively will each business' culture fit in with its new partner."

Quotoid #7

Brent Hoberman, founder lastminute.com and now founder mydeco.com on integration problems:

"Make your smartest technical guys do the most boring jobs - they will find a way to automate it!"

Quotoid #6

Brent Hoberman, executive chairman, mydeco.com.

"Return on investment is the enemy of innovation"

Searching for a new ROI metric

'Return on investment' for advertising on social networks needs to be measured differently from other media, says the second panel of the day.

Vibeagent.com's CEO Adam Healey admits that not many of us will have heard of his three-month old business, but he's holding his own next to the slightly-better-known Yahoo and Google.

He says that its Facebook application JetSetter, which tracks how many miles you've travelled, is now the 'third largest driver of traffic to the site [after Yahoo! and Google] and it's free traffic'. Quite a strong ROI then.

In response to a question from the floor, Healey suggested that the ROI for advertising on social network needs to factor in the importance of friendships. 'Leveraging the existing relationship between people is more powerful for marketers than general search,' he said.

Google's Rob Torres adds that businesses advertising on social networks 'need to be sure of what thay are majoring on'. Many travel advertisers are applying old school direct response measurements to new media campaigns.

Martin Cowen, chief writer, Travolution

That pesky trademark issue!

It seems that Google trademark issue that is creating heartache this side of the pond went down smoothly when it happened in the US four years ago.

Or, so Google's Rob Torries would have us believe!

He plays it down massively and even invites us to talk to some of the big brands in the US to see how it worked out for them.

And, yet he warns of big change for everyone.

Lastminute's chief executive Ian McCaig makes an emotional plea for some explanation of the move.

"There is an awful lot of disappointment, hurt and pain - not only in what you are doing but how it has been done."

McCaig predicts it will cost his business a seven figure sum in Euros a year!

Addressing Torres, McCaig says: "Your own trademark you defend with passion and vigour so we feel a strong compulsion to do the same."

And, Torres reponse is that he 'hopes' it won't cost as much as that and that it's all about relevancy and getting rid of the rogue ads that clutter the service.

Linda Fox, lead reporter, Travolution

Quotoid #5

Robert Torres, Google, MD of Advertising and Marketing, North American Travel Sector:

"20% of all Google searches now originate from an iGoogle page"

Quotoid #4

Yen Lee, co-founder and president, UpTake

'Consumers use the web to search for travel, but search doesn't work for social media'.

Search and social networking convergence

Search and social networking are becoming one and the same says Google's managing director, north American travel sector, Rob Torres.

More than 40% of the US population is on a social network and it seems it's an even greater volume in the UK.

It's not all teenagers either - 74% of 26 to 33 year olds use a social network each month and more than 40% of the audience on youtube is more than 35 years old.

There are already some great examples out there of travel and social networking converging such as the New Zealand 100% Pure campaign on youtube and similarly Delta Airlines flight safety video.

Torres says: "It is self perpetuating and there are so many more touch points to reach the consumer than ever before."

For the travel industry there's a huge opportunity to get involved and 'have fun with it.'

"It is one the largest free focus group you have."

Torres leaves us with this pearl: "If you're afraid to get involved with this because of your brand then you're missing the point."

Linda Fox, lead reporter, Travolution

UK tipping point in two years

PhoCusWright predicts Canada and UK will be the next two countries to reach that 50% tipping point in terms of online travel purchasing.

The UK will get there in two years with a current penetration of between 35% and 40% followed by Germany and France.

Quotoid #3

Adrian Goldthorpe, FutureBrand:

"Has anyone really invented anything new in this space. Is it enough?"

Quotoid #2

PhoCusWright's president and CEO Philip Wolf:

"In the US, over 50% of travel is now purchased seamlessly online. Similar tipping points will occur, market by market, around the world, sooner than you might think."

The Perfect Storm

After a hefty introduction - internet guru, toughest moderator in the business... PhoCusWright's Philip Wolf is holding the room with the latest observations on the market.

The European travel space is tracking similarly to the US market and bracing itself for some 'rusty nails.'

It's still growing but showing first signs of a long maturing cycle - you cannot grow exponentially forever (Philip cautions us).

In Europe, Italy and Spain are the fastest growing markets but it's other territories that are the ones to watch - India online travel market will be worth US$6 billion by 2010.

In the US more than 50% of all travel is seamlessly purchased online and a similar tipping point will occur around the world and 'sooner than you might think!'

Enough of the facts, what we want to know is what's happening now?

Philip tells us it's the Perfect Storm with no George Clooney to be seen.

"The perfect storm occurs when several events occur simultaneously - search, shop, buy - which individually would be less powerful."

What we have is search engines wielding massive power and there is still a huge amount of unmonetised search out there causing companies to devise new strategies.

The shopping experience has become a sport, the thrill of the chase and getting the best price.

And, the buy stage with intermediaries fighting over who owns the consumer more than ever while deeplink referrals are obscuring the point of sale.

And the final point swelling the storm is social networking enabling different kinds of contact between travellers.

The good news is the Perfect Storm creates the perfect opportunity as long as you do two things:

"Exploit the advances in technology and momentum. Companies give themselves permission for not advancing and hide behind their customers.

"Focus less on business model preservation and more on solving problems for customers."

The Perfect Storm or storm in a teacup?

Linda Fox, lead reporter, Travolution

Quotoid #1

PhoCusWright's president and CEO Philip Wolf is, according to David Soskin, one of the toughest conference moderators in the business.

'He's a steel fist in a steel glove.'

The Purple Day Opening Thoughts

The big boys are on stage in the form of Cheapflights David Soskin, PhoCusWright's Philip Wolf and Adrian Goldthorp of FutureBrand.

And here is the first meaty thought of the day - why do mega-corporations with the exception of Rich Barton from Microsoft find it so difficult to be innovative online?

Feedback please....

Wednesday, April 23, 2008

Travel on the money

Travelsupermarket.com ‘has delivered strong [Q1 08] results with revenues and visitors in excess of 50% ahead of the same period last year,’ according to a statement issued to the London Stock Exchange by its parent company, moneysupermarket group.

Nothing else about travel is mentioned – the statement focuses more on how the business’ money channels are doing in the UK’s current economic climate. Overall, revenues from mortgages, loans, credit card and savings channels are up 10% off the back of a 15% increase in visitors.

Loans and mortgages have been ‘challenging’ but revenues remain level with Q1 07. Credit cards and savings have grown significantly thanks ‘improved commercial terms with providers’ and more visitors.

The personal finance sector is not Travolution’s area of expertise, but there is some crossover with travel. It appears that there is still a demand for financial products (as there is for travel) and consumers are using vertical search businesses to see what products are still out there, as much as to see what the best deals are.

The statement says that ‘the performance of our business shows the benefit of a difficult market to the price comparison channels.’

And when has travel not been a difficult market?

Martin Cowen, chief writer, Travolution

+++Expedia UK boss leaves+++

This just in.

Caroline Cartellieri is no longer running Expedia in the UK. She left a few weeks ago - Expedia is being very tight-lipped about the whole issue.

More detail on our news story.

Kevin May, editor, Travolution

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Summit. Awards. Blogging. Twitting. Big Day ahead

Huge day tomorrow in Travolutionland.

We kick off with the Summit, featuring a stellar line-up of participants and a delegate list to match.


Linda Fox and Martin Cowen will be live blogging and Twittering the entire event. Our Twitter page is here.

We will then be announcing the results of the Travolution Awards in the evening.

Both events are sold out. If you want to be placed on the waiting list for the Summit, email Kelly Farley.

Kevin May, editor, Travolution

Tuesday, April 22, 2008

Web Mission doesn't like its hotel at all - user generated content in action

There is a tour this week in Silicon Valley by a group of 20 UK start-ups, under the rather grand title of banner Web Mission 08.

Peter Ward from WAYN is on it.

The idea that a group of bright young things is running amok in Techland, California, has created a fair bit of debate and an equal number of angry responses.

Anyway, a reader emailed this morning to point us in the direction of the blogs of two of the participants, Paul Carr and Paul Walsh.

This is what happens when you fill a hotel with web entrepreneurs who have no qualms about sharing their experiences of the, er, accommodation.

How I learned to stop tipping and hate The Clift.
The hostile Clift or Hotel Clift.

One doubts if The Clift Hotel in San Francisco will ever be a favoured haunt of budding start-uppers after these seemingly well connected people have spread their ire though the blogosphere.

Kevin May, editor, Travolution


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Monday, April 21, 2008

Pointless question #94

...in a bid to find a new angle on the Lonely Planet debacle last week:

The Guardian came up with this one.

Kevin May, editor, Travolution

Google is not feeling da lurve right now

So there was plenty of consternation around the industry, initially from a few digital agencies and now travel companies themselves, about Google's switch in policy over trademarks.

Our first story had one exec claiming around 25% of the company's pay-per-click budget would be needed to protect its brand name from rivals.

And last week we discovered that a number of travel companies are talking behind the scenes to agree not to bid against one another.

In the course of digging around, we came across some interersting snippets.

In the US in 2004 - when Google made a similar change in policy - marketing directors loved the excitement initially as they were given free reign to bid on terms previously out of reach - a terrifying wild abandon! Pretty quickly though, those "walking around with smiles on their faces" wised up to the fact that they were spending far too much for almost no return.

However, this "financial bloodbath" in the first few months as companies bid everywhere didn't last and most eventually came to their senses and agreed to a "bidding detente".

It is the recent experience of the changes in the US which is troubling many companies. It is not 2004, and digital marketing budgets are under pressure.

There is also a sense among many of the big players that they feel like Google has, well, been rather disloyal to those with them since the beginning.

In the words of one exec, when talking about the current situation in the UK: "It's got the potential to get very, very ugly."

Finally, it seems quite a few people can't wait to, er, talk to Google's Rob Torres at the Travolution Summit on Thursday!

Welcome to London, Rob.

Kevin May, editor, Travolution

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Saturday, April 19, 2008

Maybe Microsoft just misses running Expedia

Extremely light on the blogging front recently as we're preparing for the Travolution Summit and Awards next week.

So, alas, we've not been able to follow-up on our Farecast story from earlier in the week with any sensible analysis.

Anyway, it turns out that rumours suggesting Expedia was the buyer were a bit wide of the mark and Microsoft is new proud owner of Farecast. Maybe someone mentioned it at an Expedia-Microsoft alumni party?

How about this for an understated announcement on the Farecast Blog:

We’re excited to confirm that Farecast has been acquired by Microsoft! This acquisition creates tremendous opportunities for the Farecast team and our customers. We look forward to sharing more details in the weeks to come. On behalf of the Farecast team, thank you.
Perhaps rather sensibly, comments were not activated on the post.

The deal has, predictably, got the Silicon Valley types foaming/frothing at the mouth, with some earlier in the week excited enough to say any deal should be seen in the context of a Google-Expedia deal.

Our prediction on that: get over it. Always happy to proven wrong, of course.

The best coverage we've seen is on the Motley Fool, which suggests Farecast's fantastic prediction technology should be used by Microsoft to work out when it should bid more for Yahoo!.

Maybe Microsoft has simply just given up on Yahoo! and sees Farecast as the next best thing. Oops...

For some serious analysis of the Farecast deal, Musings typically has the best. Over to you, Mr Bainbridge.

Yen Lee on the UpTake Blog has some more.

Kevin May, editor, Travolution

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Friday, April 18, 2008

Free e-book on mobile and travel

Our thanks to mobile travel specialist Mantic Point for pointing us in the direction of a new e-book it has created, available now for free.

Developing a Mobile Strategy for Travel Companies is well worth a read.

You can download it here from the Mantic Point website or go straight to the PDF.

Kevin May, editor, Travolution

Thursday, April 17, 2008

New Holidays Uncovered, er, uncovered

After our news story a week or so back, Thomson has finally unveiled the first stage of its new-look HolidaysUncovered - a site it acquired in September 2007.

Certainly a cleaner homepage...


Some other new bits of functionaility worth checking out.

Kevin May, editor, Travolution

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Privacy on parade

Concerns over privacy issues about individuals’ online habits are being voiced with increasing regularity on both sides of the pond.

Today, NYC-based MediaPost has unearthed what it claims is the first law-suit to come out of Facebook’s already controversial Beacon programme.

A lady in Dallas County has objected to details about the DVDs she bought and hired from Blockbuster appearing on her Facebook profile. Her federal suit is against Blockbuster for sharing the details with Facebook, rather than Facebook. Apparently, there are specific laws to protect the privacy of US citizens’ video-hiring habits.

Admittedly, I’d be a bit fed up if my profile revealed I’d been buying DVDs on topics which I claimed to have no interest in, such as golf, S-Club 7, or When Household Appliances Go Bad. But I’m not sure whether being fed up would be a strong enough basis on which to launch a law-suit.

Harris Interactive issued some research earlier this month which looked at the privacy concerns of 2500+ US internet users. About 60% were uncomfortable with personalization. As we get older, our concerns increases, it appears.

Most of these law-suits come and go, but at some stage, somewhere, one will stick. And when one does, will the e-commerce industry be buying up instructional DVDs on how to rebuild the ediface?

Martin Cowen, chief writer, Travolution

Check out our new digital edition

Here.

We are using a new digital publishing provider.

Comments welcome.

Kevin May, editor, Travolution

Wednesday, April 16, 2008

This weeks bashing from the Ad Watchdog

And for once Ryanair has come through the week unscathed.

It therefore has to be the turn of rival low-cost carrier, EasyJet.

Web ad. Misleading information.

UPHELD.

Kevin May, editor, Travolution

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Travel execs say one thing - survey says another

Now it's in the best interests of travel bosses to play down any talk of an economic downturn impacting on the travel sector.

To paraphrase many a conversation over the last few months:

"The most likely area feel a squeeze first - if at all - will be luxury long haul. But the annual European holiday is pretty sacred to most people."

So their will be a fair amount of dismay today following the publication of a report by research giant Mintel, which asked a panel of 2,000 UK adults what products would be the first to get the heave-ho if the economy starts to bite.

The survey found 20% would they would delay booking a holiday, while 16% would be put off carrying out house improvements.

Kevin May, editor, Travolution

Tuesday, April 15, 2008

EasyJet and the payment issue

Much chatter in the industry these past few days after EasyJet opened up its product feed to leisure bookings.

Comtec has also annouced it will be handling a live feed from EasyJet in order for leisure clients to take bookings of EasyJet fares.

Much of this development is because EasyJet is trying to crack down on the seemingly endless scraping of its site, keeping many of the meta search engines in traffic.

What's the point of having a UK-focused flight meta search engine if you don't include EasyJet content, is an obvious question.

But the smallprint is very interesting. Reports suggest that EasyJet will charge £10 per booking every time a transaction is made using data from the feed.

The question is this: will an offline agent be able to persuade a customer to part with £10 just because they made the booking for them? Or will they see through it and simply go to EasyJet.com at home to secure the flight element of a trip?

Kevin May, editor, Travolution

Monday, April 14, 2008

When fake reviews make the headlines

Lonely Planet will be hoping for a better start to next week.

Oh dear...

Kevin May, editor, Travolution

Cyberwalk around Pompeii

Odd but rather intriguing story on the BBC about a omni-directional walkway which will be developed to simulate a virtual tour around the ancient - and destroyed - city of Pompeii.

Obviously there are huge possibilities for destination marketing or experience-led facilities in travel - you just need to use your imagination at the moment.

Kevin May, editor, Travolution

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All the fun of the Farecast...

The Seattle Post Intelligencer is reporting that Farecast has been sold for $75m (£38m at today’s exchange rate).

The buyer is currently not known. The report suggest Expedia as ‘one natural choice’. Expedia told the paper that it doesn’t comment on rumour and speculation, as we all know by now.

Farecast positions itself slightly differently from other travel2.0 businesses. It datamines historic pricing data from a number of partner sites to let customers know if the current price offered is likely to go up or down. Its air fare tool is well established, its hotel channel still in beta.

The business has an impressive line-up of VC backers, as reported by Travolution’s US correspondent last year.

Farecast’s model is an interesting one, and with intelligent search being such a buzzword at the moment it'll be interesting to see who has taken it over. $75m/£38m is an interesting price point – spare change for someone like Google, well within the range of someone like Amadeus, maybe a punt too far for someone like TUI Travel plc.

Martin Cowen, chief writer, Travolution

Saturday, April 12, 2008

Simple rules for promoting a new travel website

1) Timing is everything. Ensure ALL the elements of a new site are in place before telling the world.

2) Make sure the website matches the expectations coming from the pre-sent direct mail promotion.

3) Try not to choose a name which many of the target audience will associate with food from a fish and chip shop.

So this week's public relations FAIL comes from PukkaBeds.com, which kindly sent out some launch material to hacks around the UK to promote its fantastic new site.

The online reality:



The offline reality:


Please try harder...

Kevin May, editor, Travolution

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Friday, April 11, 2008

ABTA-FTO merger is a sign of the times

Our latest column in Travel Weekly:

The merger of ABTA and the Federation of Tour Operators says a lot more about the state of the market than many have suggested in the reams of analysis and comment produced over the past week.

We all know the official reason for the merger – and, in turn, have heard countless other suggestions as to why these two once disparate industry bodies are uniting.

Indeed, almost everyone seems to have an opinion on the finances, offices, management structure and lobbying power of the pair, and the new organisation.

What also needs to be looked at is the market context as to why this might and should be happening.

In the past, there was a requirement for two organisations to represent the needs of businesses with seemingly different goals: representing the distribution or the servicing of a product.

But much has changed as the vertically integrated businesses have taken a grip on much of the supply chain – alongside their counterparts in bed bank land – and independents have turned increasingly to bundling their own ‘packages’ together for customers.

Couple those with the concerted effort by operators to bypass the travel agent completely by selling direct via the Internet and take control of the distribution chain, and the borderline between the two types of business is blurring beyond recognition.

Indeed, the idea that a consumer really cares about the structure of a company or its apparent position within an industry is a fallacy.

The primary role of the modern travel company is that of a ‘provider’. Travel companies have to adapt to this new thinking, regardless of where they are in the food chain.

So if the industry’s representative bodies are – perhaps even innocuously – positioning themselves in a better way to take on that new role it can only be a good thing for the sector.

Kevin May, editor, Travolution

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Wednesday, April 09, 2008

Now look over your other shoulder

Hot on the heels of yesterday’s post about internet ad revenues in the UK overtaking TV in 2009, here are some global predictions for 2010, courtesy of US-based Center For Media Research's summary of a ZenithOptimedia paper.

In 2010, Asia Pacific will be a bigger advertising market than Western Europe. APAC will be worth $122.5bn compared with Western Europe’s $122.3bn.This spend covers ‘all major media’ - Newspapers, magazines, TV, radio, cinema, outdoor, Internet but not mobile – but it’s not clear how much of APAC’s spend in 2010 will be online.

Internet advertising however will overtake magazines on a global basis in the same year. It is predicted that online ad revenues in 2010 will come in at $66.9bn – 12.3% of the global spend. Magazines, whose global share continues to drop, will account for only 11.3%.TV and newspapers will still dominate in 2010, with a 37.6% and 23.9% share respectively.

But online’s increasing share of the global advertising market is food for thought for those looking at the longer term.

Martin Cowen, chief writer, Travolution.

Tuesday, April 08, 2008

Look over your shoulder and you'll see TV ad revenues

This is nothing short of astonishing in some respects. Remember, the web as an advertising force is only really ten years old - maybe less.

Guardian has a bit on the predicted increase in UK online advertising revenues in 2009, overtaking TV for the first time.

Just a few years ago - in a previous guise - I remember writing about how online revenues were on the verge of eclipsing outdoor, and then radio advertising spend. Even then, many old school were sceptical.

Kevin May, editor, Travolution

Monday, April 07, 2008

Housekeeping - and The Purple Pod #2

Busy week in Travolutionland.

We are carrying out the judging sessions for the Travolution Awards over the next few days so blogging will be light.

We have the April edition of the magazine out this week. Sign up (FOR FREE!) to our E-news subscription.

To keep you entertained, however, we have the latest Purple Pod now available.


Click here to get your own player.



Remember you can subscribe to the Purple Pod by adding this feed to your RSS reader or via iTunes [NB: opens your iTunes application].

Kevin May, editor, Travolution

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Sunday, April 06, 2008

Expedia videos look a bit dodgy

Expedia UK has a page on YouTube and is also dabbling in user-generated video content.

One of their efforts is this series of clips supposedly of random signs in hotels around the world. And it wants consumers to send in their own clips, etc, etc.

Rather amusing. But is it me or is the camera work and production just a little too polished - dare I say it, staged?



Are we being unfair?

Kevin May, editor, Travolution

Hat-tip: Hotel Review Guide

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Friday, April 04, 2008

The first of many...?

Silverjet has gone live with its mobile service and we wonder who will be next?

Other UK airlines have made noises in the same direction and recent Forrester research demonstrates the demand.

To be able to check schedules and flight status and choose your seat and meal on the go makes sense.

Many US airlines have been providing customers with a similar service for some time and bookings that side of the pond are increasing.

According Mobile Travel Technologies (Silverjet's partner in the new service) some US carriers are getting about 150,000 unique accesses a month.

MTT tells us that it's slightly easier over there because of the volume of travellers with Blackberries and similar devices.

As far as mobile internet is concerned MTT sees the world in two halves - Western Europe and the US where people 1are predominantly using it for information and to manage bookings and, Asia Pacific where residential broadband penetration is low so people use their mobiles for booking.

Silverjet tells us the service only took about six weeks to get up and running so it will be interesting to see how long the airline will retain its first mover advantage - if there's still such a thing!

MTT assures us it has a low-cost airline in the bag although it may not be as close to home as some think.

Meanwhile, Silverjet is pondering other ways to use mobile such as pushing relevant information out to travellers and enabling frequent passengers to develop a profile.

The airline tells us there is even an idea kicking about to synchronise flight schedules with Microsoft Outlook to see where potential gaps might be and then suggest things to do with that time.

So the airline would become an aggregator of information for its passengers offering services it knows they like such as restaurants and shows etc.

Yet more blurring of the lines.....

Linda Fox, lead reporter, Travolution

Mainstream media tracking blogs for gossip

It's not every day we get mentioned in the Los Angeles Times.

Especially for a non-story...

Kevin May, editor, Travolution

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Thursday, April 03, 2008

Google gossip

A number of US-based tech news sites and blogs have followed up the Expedia/Google rumours. Here are some of the more interesting ones.

The general consensus – unlikely but not impossible.

Former Expedia CEO discounts Google rumors

Google ticketing an Expedia buy

Google's Going to Do What?!

Google-Expedia deal seems very unlikely

Rumor confirmed: Google may buy my car

And this interesting analysis and gossip from Musings:

Coping without Google

Working closely together

Martin Cowen, chief writer, Travolution

Wednesday, April 02, 2008

+++ ABTA and FTO to merge - finally +++

ABTA and the Federation of Tour Operators are to unite (at last) from July 1.

This is big news for the UK travel industry, which has looked towards its traditional representative bodies for some years to find - let's face it - a more relevant position in the new world.

The move signals what many in the online space have said for years: any organisation (which apparently has the interests of the industry and, perhaps more importantly, consumers at heart) must represent both the transactional and service providers.

ABTA chief executive Mark Tanzer will retain his current role. FTO boss Andy Cooper will become ABTA head of development.

Travolution sister title Travel Weekly has more details and reaction.

Kevin May, editor, Travolution

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TripAdvisor watches more dogs

Busy day in Expedialand.

Smarter Travel Media, a subsidiary of TripAdvisor (a subsidiary of Expedia Inc), has bought the AirfareWatchdog.com brand, a US low-cost airlines listing site.

Full announcement here.

TripAdvisor loves its watchdogs, having bought the UK review giant HolidayWatchdog.com in February.

Kevin May, editor, Travolution

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Normal service has been resumed, maybe

What is the collective noun for a grouping of silly April Fool Day stories? A tedium? An indulgence? A bullshit?

Charles Dickens coined the phrase 'baa humbug' to indicate those who refused to get into the Christmas spirit. Any suggestions for a similar phrase for a journalist who refuses to get play at April Fools? As a profession we have enough credibility issues as it is without actively making things up.

On the way into the office, I saw in The Sun a story I quite liked, about Wayne Rooney having to learn Italian because Fabio Capello couldn't understand his English.

I thought as an academic exercise about what I would do if there was a directive from Travolution's parent company for all its blogs to get involved. I thought about something along the lines of the Chinese government buying Google. But I decided against it because they theoretically could. Didn’t they buy 10% of Blackstone last year?


So I get into the office and someone has beaten me to it - a reputable title is reporting that Google is buying Facebook for $25bn. Hold on, Google is also linking up with Virgin to launch a colony on Mars. Ho ho ho.

But now we find that there are reports – run by Reuters and picked up accordingly - about Google buying Expedia. This is where the fun ends. Expedia’s share price climbed 10% on the back of this and other OTAs have seen their share price increasing too.

The problem is I don’t think Google buying Expedia is that far wide of the mark. Let's face it, Expedia is almost a search engine already, has talked about monetizing the eyeballs and getting more involved in 'the media model'. Imagine how powerful a proposition PPC on Expedia would be.

There would be global revenue from the ads, as well as the revenue from the sales. Google could get involved in video search on the Expedia content, connect into tripadvisor, adopt Google Checkout for payment. We could go on.


If this note had not come out on April Fool’s Day we might be taking it more seriously. The reporters who are bylined all have recent Reuters email address; Susquehanna Financial Group, whose note to clients based on unsubstantiated rumours kickstarted everything, exists.

Is there a massive Sarbanes-Oxley issue here as well? I’m pretty sure that if UK-listed company sees its share go up by 10% in a day it has to tell the market. Does the same thing apply in the US, anyone? We’ll see when the markets open shortly.

This could be something in nothing (although I wonder whether the regulators would see it like that). Or it could be the biggest thing ever to happen in the online travel industry.

Martin Cowen, chief writer, Travolution

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