Transat’s External Environment – December 22, 2016 Newsletter – Trends and Reports

Trends

  • The US. government and the industry are collaborating on a program that seeks to replace the second human pilot in two-person flight crews with a robot co-pilot. The program called ALIAS is more sophisticated than all other computers flying planesIcone_Tendances already used. The robot can do everything a human can do and carries in them the DNA of every flight hour in that aircraft system. CBCnews
  • According to Future Travel Experience, with Airbnb Trips, the company is moving beyond accommodation and extending its reach to other key areas of the travel process. Initially, the focus will be on Experiences, Places and Homes, but the longer term strategy also extends to Flights and Services. Future travel Experience
  • A growing number of online travel agents and airlines have partnered with third-party data providers TripAdvisor and Routehappy to help customers learn more about the quality of their flight. Airlinetrends.com
  • According to IATA, the global airline industry expects to earn USD 35.6 billion during 2016, a record profit thought it is slightly less than the original expectation. Transreporter
  • IATA has announced that it expects the global airline industry to make a net profit in 2017 of $29.8 billion. On forecast total revenues of $736 billion, that represents a 4.1% net profit margin. IATA press release
  • According to a Facebook travel survey, 38% of the 500 million Instagram’s users worldwide got ideas for their most recent trips from the platform. Some 80 million photos are shared every day, 13% of U.S. users use Instagram daily and 51% of Instagram’s users are now over age 35 as the platform itself has become more mature. Skift
  • According to Google, Smartphone users of travel apps don’t have many apps downloaded at a time, but are willing to try an app based on recommendations from family and friends. The average user only has 2.8 mobile travel apps installed on its smartphone, and 12% use a travel app daily. Skift
  • Beyond adventure travel, solo female travelers are taking to the skies in larger numbers, and bringing spending power with them – representing upwards of 85% of consumer buying decisions. Apex
  • Wynn and Amazon has together announced that soon, all 4,748 hotel rooms at the Wynn Las Vegas will be equipped with the Amazon Echo. This technology will enable guests to control the lighting, temperature, draperies, and TV in their rooms by asking Alexa, the artificial intelligence behind the speaker. Skift
  • According to the American Society Of Travel Agents, home-based agency is the most popular model of travel agency in the United States : 44% of American travel agents work at home. L’Echo Touristique
  • According to Capterra, 41% of Millennials say they would be ‘truly satisfied’ to use chat as the primary means of connecting with the business and services they use. Chat-based applications could reshape the way we approach travel to make it a much more personalized and connected experience. Amadeus
  • According to a Facebook travel survey, Disney Parks and Resorts are taking the top spot for the world’s most shared destination on Instagram. Central Park in New York City was the most shared single destination this year since Disney’s ranking considers all of its theme parks and resorts around the world. Skift
  • According to KAYAK, sun destinations represent the majority of the 10 favorite destinations of Canadians for the New Year. Florida is very popular with Fort Lauderdale, Orlando and Miami occupying 3 of the top 10 places, while non-traditional destinations such as Dubai, Guatemala, Reykjavik, Seoul and Madrid attract twice as much interest as last year. Vancouver and Toronto remain prime destinations for Canadians. PAX Nouvelles

 

Sustainability initiatives

  • For 90 minutes in the skies over Canada, hundreds of children living with severe illnesses, and their families, were treated to an unforgettable experience, when they were greeted by Santa Claus on special flights organized by The Children’s Wish Foundation of Canada and Air Transat. Transat press release
  • Transat thanked all the travel agents who participated in its recent familiarization trip to Cayo Santa Maria, Cuba for their donations of school supplies for young children. Transat press release

Industry reports

Understanding & Marketing to the North American Traveler, Sojern’s Spring & Summer Travel Insights

This Spring & Summer Travel Insights examine seasonal travel trends while offering expert advice on what you can do to ensure your marketing campaigns are ready to capture warm weather travelers.

Starting early in the spring, 65.1 million Americans look to travel for Spring Break. In the summer, travel continues to climb: 21% of US travelers report that they take trips for vacation or sightseeing. During the rest of the year, that number drops to a mere 12%. And, planning for spring and summer travel starts earlier than you might think: 39% of Q1 searches are for Spring and Summer travel.

Online Travel 2020 Evolve, Expand or Expire, Amadeus

For this paper, Amadeus has used scenario planning to map trends and to devise likely sequences of events that paint a picture of what the future may hold for our Online Travel Agency (OTA) customers. Their main objective with this project was to help us answer the question: “What should travel players be doing today to prepare for the different scenarios unfolding before us?”. They have identified the evolution of four different scenarios : the rise of Mega Online Travel Retailers, the introducing Digital Tour Operators, the rise of more sophisticated Mobile Travel Retailers and the new Travel Marketplace.

2017 Cruise industry Outlook, Cruise Lines International Association, December 2016

This paper reveals that global cruise travel is continuing to grow with an estimated 25.3 million passengers expected to sail in 2017. Cruise industry expenditures generated $117 billion in total output worldwide, supporting 956,597 full-time equivalent employees who earned $38 billion in income in 2015. The outlook provides a snapshot of the global cruise industry while also forecasting trends that will impact cruise travel and the industry. CLIA has forecasted the top eight cruise travel trends that will have the most impact on the cruise industry this year:

  • New generation takes to the water;
  • Travel agent use increases;
  • River cruise demand increases;
  • More private islands on cruise itineraries;
  • New cruisers will take to the sea;
  • Drivable port locations in favour;
  • Lure of celeb chefs;
  • Demand for expedition cruises.

Cruise Industry Outlook 2016, Cruise Lines International Association, December 2016

CLIA has released its fourth and final Travel Agent Cruise Industry Outlook Report of 2016, revealing key cruise travel trends and insight into the current state of the travel agent industry. Key findings from the latest Travel Agent Cruise Industry Outlook Report of 2016 include:

  • Cruise Growth: Increase Over Last Year;
  • Increased Sales & Spending: Strong Interest in Cruise Travel This Winter;
  • Advance Travel Booking: Last-Minute Cruise Deal Hunters On the Decline.