12 NEWS ITB Business Travel Forum: Valuable Knowledge for Travel Managers The latest trends and developments in business travel – Focus on the impact of digitalisation and globalisation Under the heading of “Business travel 4.0: dynamic, digital, disruptive”, this year’s ITB Business Travel Forum will be taking place on 8 March 2018 in Hall 7.1a, Room New York 2. Visitors can get first-hand knowledge and practical information on the latest business travel trends here. This year’s exclusive partner is the German Business Travel Association (VDR). Admission to the forum is free for visitors to ITBBerlin. Digitalisation and globalisation are triggering ever-shorter innovation cycles, which is a challenge that the business travel market must actively confront. Thus, the VDR Business Travel Forum at the ITBBerlin Convention will be giving visitors an insight into tomorrow’s work environment and the next generation’s travel behaviour. Under the heading of Business Travel: Completely Digital! Florian Storp, vice president, Central Europe at American Express Global Business Travel, will demonstrate what the industry can learn from young people’s travel and consumer behaviour and how digitalisation must positively affect business travel. Taking concrete examples, he will illustrate how travel management companies and customers are confronting the challenges. Afterwards, Ludger Bals of The Travel Consulting Group and Dr. Engelbert Wimmer, founder and CEO of e&Co. AG will be talking to Christopher Bergau, head of Strategic Partnerships DACH, airbnb about disruptive business models and digital “attackers” who are increasingly taking aim at the travel industry. In theory, the travel manager of the future must forfeit his role as a static departmental salesman and become a pro-active innovation scout and manager of digital ecosystems. “His word shall be heard”: together with the audience Marcus Scholz, management executive at Europcar Deutschland, will enter a new world in the Internet of Things. He will show that Alexa Echo and Alexa Show can already be used to manage services with one’s own Alexa can also book a rental car for you voice. Thus, travellers can already use voice control to hire a car, change their booking dates or cancel reservations VDR ORGANISES NETWORKING LOUNGE FOR 6 TH TIME The Networking Lounge Home of Business Travel by ITB & VDR is organised by Messe Berlin and the German Business Travel Association (VDR). It allows visitors to dwell on the day’s topics in talks. Available from 7 to 9 March and covering a total area of 270 square metres, this is the sixth time that the Networking Lounge will be a part of the show. The combined stand in Hall 7.1a offers travel and transport managers as well as buyers and newcomers a valuable platform for discussing ways to improve business and make contact with leading representatives of the business travel sector. Co-exhibitors will be showcasing a variety of solutions for professional management as well as for during and after business trips. All visitors interested in business travel topics should make a note to attend the Networking Lunches. The informal lounge atmosphere lets visitors enjoy a relaxing lunch and provides an opportunity to network at their leisure. The lunch event will take place on all trade visitor days from 12 noon to 2 p.m. at the Home of Business Travel by ITB & VDR ITB BERLIN NEWS • Thursday 1 st March 2018 www.itb-berlin-news.com
NEWS 13 Evolution of Online Bookings PhocusWright releases thirteenth ddition of European Online Travel Overview Buoyed by positive economic indicators and generally strong consumer confidence, the European travel market is projected to climb to an all time high in 2017. Online bookings, anchored by travel suppliers’ own websites and apps, lead the way. Conversely, offline bookings continue to decline, though traditional travel agencies and other offline channels remain vital in some markets. In spite of the continued growth, the industry faces some challenges. Brexit and the threat of terrorism, along with political and economic uncertainty in some markets, are key challenges that could impact individual travel markets or the overall region in the coming years. KEY TRENDS AND DEVELOPMENTS On the heels of a 1% decline in gross bookings in 2016, the European travel market was projected to grow 3% in 2017 to €273 billion, with most segments showing modest gains. Total gross bookings are expected to increase 3% annually through 2021. Online bookings continue to outpace the broader market, although now that the online channel has reached maturity, online growth rates have begun to more closely resemble the total industry. In 2017, online bookings were projected to total €138 billion, representing 51% of the total market. Mobile channels supplier and online travel agency (OTA) apps and mobile websites are driving most of the growth. Mobile travel bookings are projected to climb 21%, and will represent nearly one fourth of all online bookings in 2017. In the battle for online bookings, travel suppliers continue to have a clear edge. Online supplierdirect channels will capture two thirds of online bookings in 2017, compared to just one third for the supplier OTA channel. Suppliers in all segments are stepping up their efforts to promote their own websites and mobile apps by leveraging strong branding, loyalty programs and special perks for direct bookers. These initiatives will pay off, and supplier direct bookings will represent 70% of the online market by 2021. While the number of terrorist attacks in the region declined in 2017, the threat of terrorism continues to impact multiple European markets. The tour operator segment has suffered the most, as travellers weigh the safety of long popular “sun and sand” destinations. Hotel bookings in some European capitals and other large cities have been impacted as well. Political turmoil is creating some uncertainty in the European travel market. The UK’s planned exit from the European Union could have significant consequences, and its effects are already evident in the weakened British pound. Inconclusive elections in Germany and a fierce separatist movement in Spain’s Catalonia region could also have implications for those markets. Traditional airlines in Europe are under increasing pressure from nimble LCCs such as Ryanair and easyJet, as well as from full service Middle Eastern carriers including Emirates, Etihad and Qatar Airways. Meanwhile, the bankruptcies and financial insolvency of Air Berlin, Alitalia and others are consolidating the market and creating some new opportunities. The hotel category is the only segment where OTAs have a strong lead over suppliers in attracting online bookings. But large chains are expected to reduce their dependency on the two dominant OTAs Booking.com and Expedia as they focus on promoting their own online booking channels. Recent legal rulings that ban hotel rate parity clauses also favour online direct hotel bookings DIRECT CONNECT IN EUROPE For nearly two years, the Lufthansa Group was alone in Europe in its efforts to establish direct connect as a new standard in airline distribution. With fresh and strong support from the IAG Group as well as some significant changes within the corporate sector, the New Distribution Capability (NDC) finally seems poised to become a real standard in airline distribution. Direct connect in Europe seems ready for take-off, and travel sellers of all types should determine whether they are ready to board. This analysis focuses on the status of airline distribution within Europe and the outlook for airlines, online travel agencies (OTAs), travel management companies (TMCs), corporations, global distribution systems (GDSs) and technology providers. PhocusWright has published a new report on Direct Connect in Europe. Available at ITBBerlin: Hall 7.1 / Stand 101 EUROPEAN TOTAL AND ONLINE TRAVEL MARKETS, GROSS BOOKINGS (€B) AND ONLINE PENETRATION (%), 2015-2021 ONLINE TRAVEL PENETRATION BY REGION, 2015-2021 ITB BERLIN NEWS • Thursday 1 st March 2018
