State of travel-sales & trends in DenmarkBARD presentation 24JAN13
Agenda 24JAN13
Incoming Denmark 2013 Sales and trends
Outgoing Denmark Sales 2012 – 2013 Trends
IATAs NDC-project Any other business?
Foreigner visitors To Denmark…:
Annual bednights: 44,7 mio.(2011) of which 21,9 million are foreign bednights.
Annual # of tourists: 53,2 mill. Ånnual expenditure: 74,6 bill. DKK, of
which 29,6 come from foreign visitors. 5 largest markets: Germany, Norway,
Sweden, Holland, UK.
Click to edit the outline text format
Second Outline Level
Third Outline Level Fourth
Outline LevelFifth
Outline Level
Sixth Outline Level
Seventh Outline Level
Eighth Outline Level
Ninth Outline LevelClick to edit Master text styles Second level
Third level Fourth level
» Fifth level
Foreigner visitors TO Danmark: What can Denmark do to increase # of
visitors? Co-operation between suppliers MUST improve
Product development and marketing must improve!!!!!!
Tourism to Denmark must become more of a political priority.
More ressources to Visit Denmark (NTO) for marketing of Denmark aborad.
Click to edit the outline text format
Second Outline Level
Third Outline Level Fourth
Outline LevelFifth
Outline Level
Sixth Outline Level
Seventh Outline Level
Eighth Outline Level
Ninth Outline LevelClick to edit Master text styles Second level
Third level Fourth level
» Fifth level
Foreigner visitors To Denmark: Marketing Denmark abroad.
We need to change ”our old introvert image”.
We’re a forward thinking, high-technology oriented nation with friendly people.
We focus on providing tourism experiences of a lifetime.
Foreigner visitors To Denmark: The ”visa-to-Denmark discussion” – JAN12
Inbound trends Denmark 2013
Scandinavia still an exotic, but expensive, destination!!!!! Positive market development in:
Up market customers Budget travellers, esp. Group travel. MICE.
Losing out on the large mid-segment (e.g. Croatia is the same, but with a better climate)!
Product trends: ”Slow Travel” People to people ”Behind the (Scandinavian) scenes
Danes travelling abroad: Annual sales of travel 2007-2011 – gross sales (travel
agents and T/O’s).
Click to edit the outline text format
Second Outline Level
Third Outline Level Fourth
Outline LevelFifth
Outline Level
Sixth Outline Level
Seventh Outline Level
Eighth Outline Level
Ninth Outline LevelClick to edit Master text styles Second level
Third level Fourth level
» Fifth level
Danes travelling abroad – where do we go?
Top 5 overall: Germany (1,24 mio) Sweden (1,28 mio
bednights) Spain (921.000) Norway (867.000
bednights) UK (614.000)
France, Italy and Turkey are the next countries on the list.
Top 5 intercont.:
USA (274.000)
Thailand (156.000)
Egypt (93.000)
China (50.000)
Canada (38.000)
Dubai is next on the list…
BSP sales DK 2006 - 2012
Oubound trends Denmark 2013
Leisure: + 2-3% incl. Almost unchanged charter market. VFR on the increase (+3-4%) Group travel increases (+50 years) Virtually unchanged destinations (!)
Business: +1-2% MICE: +5%
IATA NDC – January 2013
Shopping for air travel todayWhat does it look like?
Search by city-pair and date
Compare on price or time
Limited product information
Shopping for hotel todayWhat does it look like?
Search by ratings and deals
Compare on value to consumer
Rich product information
Shopping for air travel tomorrow with NDCIs it possible?
Yes. Airlines already offer today much richer content than what consumers can find on travel agent websites which use GDS data.
Shopping for air travel tomorrow with NDCWhat will it look like? (IATA mock-up)
Search by affinity and value
Compare on value to consumer
Rich product information
Transparency and choice
NDC value proposition
ConsumersTransparency (all-inclusive), choice (full-service & LCC), personalization
AirlinesDifferentiation, innovation, customization, time to market
Travel agentsMore content, better customer information, in one place
AggregatorsMore content, incentive to innovate
Schedule
Airline
Fare Filing
Availability
Airline Distribution TodayPush content via 3rd parties to GDS
Builds content
Agent
3rdParties
GDS
Cu
sto
mer
Airline Distribution TomorrowDynamic Airline Shopping
Airline
Product
Price and Availability
Engine
DynamicAirline
Shopping
Interface
Agent
Cu
sto
mer
Aggregator
Agent
Risks
Learning
Reso787
Mock-up 1.0
2012 2013 2014-2016
Ref. Imp. v1.0 Ref. Imp. v2.0
Request for Pilot Participation
Pilots Review
XML Standards
Mock-up 2.0
Industry Pilots
Pilots Launch
Business adoption
Pilots Review
The NDC Roadmap
NDC collaborative approachWho are we reaching out to?
Airlines (scope = 400+)Full service carriers, LCC
Travel agents and meta-search (scope = 60,000+)Travel Management Companies: AmEx, CWT, HRG, BCD…Online Travel Agents: Expedia, Priceline…Meta-search: Kayak…
IT companies (scope = 20+)Google, HP, Farelogix, Datalex, Concur, Travelsky…
GDS (scope = 3)Sabre, Travelport, Amadeus
AssociationsWTAAA, ASTA, ECTAA, ETTSA, GBTA, ACTE…
Prize: a joint WTAAA-IATA value proposition for NDC
One-stop access to rich content, including ancillaries and low cost
Personalized offers based on preferences
Increased relevance of travel agent in comparing complex product offers
Transparency on fees and charges
What else?
What Forum to discuss Airlines & Travel agents concerns?
What are the concerns raised by travel agents worldwide? Are the concerns related to NDC or to the business in general?Are the concerns legitimate or driven by lack of awareness or vested interests in status quo?Can the concerns be clarified now or only experience will tell?
Some concerns raised by Travel agents so far:
Source: ECTAA, ASTA. 1. Risk of bypassing the agent or the GDS?2. NDC is designed by airlines for airlines?3. Cost of implementation of NDC solution?4. Compatibility with back-office systems?5. Overall NDC cost to the industry and consumers?6. Ability to find a low fare or best value in NDC?7. Risk of customer or agent discrimination in NDC?8. Impact of NDC on the agent / GDS business model?9. Role of the aggregator in the selection of offers?10.Availability of NDC for self-booking tools?11.Access to PNR and data ownership in NDC?12.Risk of higher fares for en-route changes?
Areas of collaboration discussed by WTAAA and IATA 14JAN13.
1. Development of a joint value proposition for NDC2. Engagement of travel trade partners in IATA
activities (standard-setting and pilots)3. Forum / task force addressing concerns4. Mutual invitations to respective external events (e.g.
WPS) 5. Joint communication statements on the above topics
Any questions?