Megatrends Defining Travel in 2018
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MEGATRENDS DEFINING TRAVEL IN 2018 Customer-FirstCustomer-First InnovationInnovation && ApproachApproach TechnologyTechnology Award-winningAward-winning experiencesexperiences thatthat makemake youyou looklook InvestingInvesting inin thethe digitaldigital spacespace toto boostboost youryour salessales goodgood inin thethe eyeseyes ofof youryour customers—expectcustomers—expect withwith moremore personalizedpersonalized experiences—expectexperiences—expect moremore fromfrom youryour traveltravel insuranceinsurance partner.partner. moremore fromfrom youryour traveltravel insuranceinsurance partner.partner. DownloadDownload ourour whitewhite paper,paper, 5 Practices to Stay Connected 5 Practices to Stay Connected DownloadDownload ourour whitewhite paper,paper, Humanizing Technology to Humanizing Technology to toto YourYour Customers’Customers’ NeedsNeeds.. Enhance Travel Protection, Present & FutureEnhance Travel Protection, Present & Future.. TheAllianzAdvantage.com/CXTheAllianzAdvantage.com/CX AllianzAdvantage.com/TechAllianzAdvantage.com/Tech 400001603_110917400001603_110917 400001763_110917400001763_110917 Masthead Skift Magazine / Issue: 08 Founders Founder & CEO / Rafat Ali Co-Founder & General Manager Skift Table / Jason Clampet Table of Contents President Carolyn Kremins Editorial Team 8 A Note From the CEO Executive Editor / Dennis Schaal 10 Travel Brands Want to Be Experience Platforms News Editor / Hannah Sampson Hospitality Editor / Deanna Ting 14 How Hilton Garden Inn Is Going Beyond the Guestroom Travel Tech Editor / Sean O’Neill Senior Editor, Restaurants / Kristen Hawley 16 Brands Embrace Diversity and Inclusion Message Aviation Editor / Brian Sumers Amid Rising Neo-Nationalism Business Travel Editor / Andrew Sheivachman European Editor / Patrick Whyte 20 Travel Mergers and Acquisitions Become More Focused on Strategic Innovation Tourism Reporter / Dan Peltier 24 The Hotel of the Future Needs to Be Everything to Everyone Assistant Editor / Sarah Enelow Contributing Writers / Raini Hamdi, Richard Holmes and Steven Schwankert 28 The Big Vision for Augmented Hospitality Design 30 Personal Fulfillment Is the New Ultimate Luxury Senior Designer / Ping Chan 32 Blockchain Will Spark a New Type of Technology Race in Travel Junior Designer / Andrea Yang-Yanez Contributing Illustrators / Vanessa Branchi, Patricia Mafra, Bett Norris, Melissa McFeeters and Bing Qing Ye 36 European Travelers Return to Once-Disrupted Destinations Advertising & Sales 38 Airlines Race to Become Storefronts Beyond the Seat VP of Ad Sales / Anthony DeRico Director, Business Development / Lisa Weier Parilla 42 New Leaders of Online Travel Agencies Are Already Sales Director / Danielle Wagstaff Reshaping Their Companies Executive Sales Director / Deborah Knudsen Sales Director Europe / Kate Irwin 46 Cities Are Better Navigating the Collision of Their Visitor and Local Economies Sales Manager Skift Table / Jeremy Vargas 48 Extreme Weather Is Creating Travel Upheaval SkiftX 52 SkiftX Trend: Mobile Devices Move Beyond Customer Service to Predict Executive Editor / Greg Oates Branded Content Director / Katherine Townsend Travelers’ Needs and Solve Problems in Real Time Branded Content Strategist / Matt Heidkamp 54 Startups Go Direct to Consumers in Battle for Business Travelers Branded Content Associate / Alison McCarthy Campaign Manager / Dawn Rzeznikiewicz 56 Google's Product-Led Vision Is Bearing Fruit Research Editor / Jeremy Kressmann 60 Back-End Travel Tech Gets a Design Renaissance Skift Research Research Director / Luke Bujarski Senior Research Analyst / Rebecca Stone REGIONAL SPOTLIGHT Senior Research Analyst / Seth Borko Research Associate / Meghan Carty 62 Africa Discovers It Needs to Woo Millennials Both at Home and Abroad Director, Enterprise Sales, Research / Daniel Calabrese Research Sales Associate / Anne Duffy 64 Ctrip Branches Out But Many Chinese Travel Companies Marketing Will Be Domestically Focused Senior Director of Marketing / Natalie Bonacasa 66 Asian Upscale Travelers Are Creating a Luxury Tipping Point Digital Marketing Manager / Brianne Kennedy Digital Marketing Manager, Subscription Services / Caitland Conley 68 Latin America Will Take Nation Branding to New Extremes Techology Developer / Mike Linden 72 SkiftX Trend: The Rise of Customer Centricity Is Delivering Personalization at Scale Developer / Rachel Bronstein Operations Chief Financial Officer / Michael Cunniff 75 SKIFT TABLE MEGATRENDS Director of Strategic Operations / Syia Lewis-Doryumu Next-Generation Restaurants Fight the Delivery Boom Conference and Events Planner / Melissa Jimenez With Immersive Experiences Events Editorial Director / Elizabeth Osder Events Editorial Producer / Joanne Laipson Project Manager / Amy Thorkilsen Office Manager / Ali McGhee Staff Accountant / Ernest Capasso © 2018 Skift Inc. All Rights Reserved 6 Skift ISBN 978-0-9986958-1-5 Skift 7 The year 2018 follows two years of extreme uncer- The larger issues of immigration — and restrictions tainty and instability that upended the travel placed on it in various countries and especially in industry in many ways. the United States — also have a direct impact on the travel economy, and in 2017 it became clear Back in September 2016, I wrote a long manifesto as to how and why, as well. That has been the about how travel was now the geopolitical center biggest rallying issue for the travel companies, of the world. But little did I realize what was to who in many ways depend on immigrant labor come a few weeks later with the U.S. presidential for their daily operations. Any restrictions also election, and the year that followed would make have a chilling effect on overall travel, and we that manifesto's contention even more true than have seen early evidence of that happening in it ever has been in the past. the U.S. all through 2017. The trend likely will continue this year as well. My manifesto was an aspirational call to the travel industry, to elevate ourselves in an age of Travel is the most progressive expression of human constant global and regional turmoil: curiosity. It behooves us to take on more activist roles on behalf of our right to travel and the future “A wholesale change in mindset is needed on how of the travel industry. 2017 was the year the travel travel is structured and marketed, enmeshed and industry began to take on a more activist role, embedded in all the glorious imperfections of the a new role it is awkwardly embracing. It's also a planet. The geopolitical realities of our world are new role worth celebrating. worth embracing by the travel industry, instead of ignoring them or, worse still, wishing them Please let me know if you have any feedback for away. And even more so, travelers will reward our work here, or if you would like for us to help Illustrator: Melissa McFeeters the industry for it by traveling more, by being you and your company understand the larger more aware of the world and travel’s key place in megatrends affecting your business. Email me it, rather than staying in isolationist bubbles for at [email protected]. people to indulge in when they need an escape 2017: THE YEAR TRAVEL FOUND ITS once in awhile.” LARGER PURPOSE IN THE WORLD The year 2017 has been a seminal year where the travel industry — especially in North America and Europe — found its voice and its larger purpose Our Skift Megatrends annual package is the largest annual editorial in the world, in a year of upheaval on all possible effort from the Skift reporting team. These megatrends reflect our work fronts. on connecting the dots through Skift's intensive daily and long-term research coverage of various parts of the travel industry, our hundreds It has been the year where Skift’s clarion call for and hundreds of hours of talking directly to the leaders and operators many years — “Travel is the world’s largest industry; in the travel industry, and our surveys, interviews, and focus groups let’s start acting like it” — may have finally become with travelers throughout the year. a reality for the sector. Destination marketing organizations, mayors, state governors, hotel The 2018 Megatrends that Skift is watching in the coming year will be CEOs, tour operators, online travel leaders, and Regards, about travel’s continued rise and evolution despite extreme manmade and many others have realized that sitting out the natural events. Across new frontiers in technology, brands are focusing political and geopolitical issues of the world is Rafat Ali on strategic expansion beyond traditional boundaries; travel’s purpose no longer an option when it comes to attracting is growing with an emphasis on diversity and inclusion; improvements Founder and CEO and retaining travelers. The only sector which has in back-end tech are driving the business of travel; operators are finding been relatively silent has been the airline sector, new ways of bundling in travel while new unbundling continues to though the reasons for U.S. airlines are clearer: change how travel gets sold; and innovators are taking new approaches lobbying against more competition from Gulf to creating immersive experiences in hospitality in the face of increased carriers with a “friendly” government. digitization, among others. 8 Skift Skift 9 It used to be that airlines simply got you from The online travel agencies, which disrupted point A to point B. Hotels offered you a place to traditional travel agencies, were the first to rest your weary head at night. Tour companies empower consumers to take more control over TRAVEL herded tourists