2008-10-03T21:43:56Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9 Movable Type Copyright (c) 2008, Diane Clarkson 2008-10-03T21:43:56Z 2008-10-03T21:42:46Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.10254 2008-10-03T21:42:46Z

There are undoubtedly varying shades of green. We discussed this in a recent report called “Green Online Travelers Assessing the Brand Impact of Travelers' Environmental Concerns” in which we determined that, while 42 percent of online travelers agree with the statement that they are concerned about the environment, those “dark...

Diane Clarkson There are undoubtedly varying shades of green. We discussed this in a recent report called “Green Online Travelers Assessing the Brand Impact of Travelers' Environmental Concerns” in which we determined that, while 42 percent of online travelers agree with the statement that they are concerned about the environment, those “dark green travelers” who have actively consider sustainability in their travel decisions is more of a niche at 7%. Two new websites have launched aimed squarely at that 7 percent. Vroom Vroom Vroom offers car rentals offers car rental through major companies and will purchase carbon offset programs for each rental. (Ok, I admit it: I was tempted to telephone directly just to hear someone answer the phone making cartoon car noises.) Green without costing more will certainly appeal. We also saw the launch of Whole Travel this week, which lets travelers undertake open-ended destination and accommodation searches of sustainable hotels. Hotels have a “whole ranking” based on their (1) Environmental practices, (2) Economic management, (3) Social and cultural support, and (4) Customer interaction. Both sites will have to establish credibility. Vroom Vroom Vroom will need to establish credible carbon offset information (see our upcoming report on “Identifying Best Practices Promoting Carbon Offset Programs”. Whole Travel’s rankings are self-reported with plans to use local organizations for verification. At the same time, both sites offer potential benefits that can extend beyond their green offerings. Vroom Vroom Vroom’s lowest rates. Whole Travel has an inventory of unique properties that will appeal to people looking for a different accommodation experience. 2008-09-24T16:51:56Z 2008-09-24T16:47:04Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.10234 2008-09-24T16:47:04Z

Reuters reported yesterday that airlines are going to be cutting corporate discounts or pulling contracts if businesses fail to meet their air travel commitments. Preferred rates are negotiated with the expectation of a certain level of sales delivered. Aggressively pulling back on the discounts or contracts is new, but reflects...

Diane Clarkson Commerce Reuters reported yesterday that airlines are going to be cutting corporate discounts or pulling contracts if businesses fail to meet their air travel commitments. Preferred rates are negotiated with the expectation of a certain level of sales delivered. Aggressively pulling back on the discounts or contracts is new, but reflects the imperatives of today’s economic environment. For businesses, this will create a challenge. Cutting back travel will save money on travel expenses yet compromise preferred contracts. Robbing Peter to pay Paul, so to speak. Corporate travel will increasingly be viewed with more scrutiny, heightening the importance of reporting tools. At Jupiter, we are spending a lot of time talking about the impact of the economy on travel. This impact will be discussed in our upcoming US Travel Forecast. We’re also fielding the Frequent Business Traveler Survey in the next couple of weeks with the report scheduled for November. I suspect we’ll see an increase in compliance policies, both for booking with the selected provider and preferred airline. 2008-09-11T16:57:56Z 2008-09-11T16:49:47Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.10198 2008-09-11T16:49:47Z

Hotels.com has launched a new feature called Visualiser that will generate hotel suggestions based on a range of images travelers have selected on topics such as the type of trip they want, how they want to feel, what a fun evening is, etc. The system was quick, easy to use,...

Diane Clarkson Commerce Hotels.com has launched a new feature called Visualiser that will generate hotel suggestions based on a range of images travelers have selected on topics such as the type of trip they want, how they want to feel, what a fun evening is, etc. The system was quick, easy to use, and intuitive. My first attempt had some unsual recommendations: I searched for a beach holiday and was surprised to have San Francisco listed as an option. The neighborhood of North Beach was recommended (perhaps this is the logic that put San Francisco on a beach list). The hotel I was recommended was surprisingly not in located in San Francisco but instead in Redwood City. Subsequent searches garnered much more relevant searches. It is an inexplicable programming truth that an analyst or journalist will always unearth the last glitch. Overall, I like the idea of using photographs to filter. People have some emotional aspiration with their leisure travel, and it is an interesting way to use photographs to identify those aspirations. 2008-09-03T19:38:16Z 2008-09-03T19:35:54Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.10174 2008-09-03T19:35:54Z

Earlier this summer, United Airlines announced plans to stop providing meals to coach passengers on its transatlantic flights. Today, the airline emailed its customers to advise that they had changed their mind based on the feedback they’d received. United Airlines is positioning this as responding to what travelers value. You...

Diane Clarkson Commerce Earlier this summer, United Airlines announced plans to stop providing meals to coach passengers on its transatlantic flights. Today, the airline emailed its customers to advise that they had changed their mind based on the feedback they’d received. United Airlines is positioning this as responding to what travelers value. You may not be a fan a airline food. But if your flying from San Francisco to Frankfurt, a box of microwaved chicken looks a lot better than the Starbucks egg salad sandwich that has been in your carry-on for 10 hours. I don’t blame United for trying to eliminate transatlantic meals. Cost cutting is essential right now. I don't know if they had any focus groups prior to the initial announcement. But it is somehow reassuring to know that passengers out cried and United listened. 2008-09-02T23:23:30Z 2008-09-02T23:22:19Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.10171 2008-09-02T23:22:19Z

Starwood’s loyalty program, Starwood Preferred Guest, has allowed members to transfer SPG to airline loyalty programs, which has been useful if not occasionally cumbersome benefit. However, now the program has gotten even better – SPG points can be used to book flights directly on www.spg.com/flights. It gets better: there are...

Diane Clarkson Commerce Starwood’s loyalty program, Starwood Preferred Guest, has allowed members to transfer SPG to airline loyalty programs, which has been useful if not occasionally cumbersome benefit. However, now the program has gotten even better – SPG points can be used to book flights directly on www.spg.com/flights. It gets better: there are no black out dates. On my first try comparing SPG Flights to an airline site, I found SPG offered several loyalty point options while the identical route on the airline's Web site indicated there were no loyalty point flights available. And, it gets better still: While airline redemption programs impose fees on airline mile redemption flights, SPG Flights redemption includes taxes and booking fees in the price of the flight. This is great news for travelers, the savviest of whom should be signing up for Starwood American Express cards from their desks in the Sheraton. It is also interesting for the travel industry – the most competitive loyalty program to book flights is now run by a hotel. 2008-08-12T17:33:19Z 2008-08-12T17:31:22Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.10130 2008-08-12T17:31:22Z

Kayak has launched information tools to provide travelers with details on some of the greatest pain points in travel: Airline fees are extensive, vary between carriers, and change frequently. In response, Kayak has posted a Fees Chart which is particularly handy when comparison shopping includes checked bags fees. The quality...

Diane Clarkson Commerce Kayak has launched information tools to provide travelers with details on some of the greatest pain points in travel: Airline fees are extensive, vary between carriers, and change frequently. In response, Kayak has posted a Fees Chart which is particularly handy when comparison shopping includes checked bags fees. The quality of some flights is, well, let’s say “less than ideal”. Kayak has launched a “Flight Quality Warning” which serves as a filter helping travelers identify short connections, long layovers, few seats remaining, turbo prop planes and those flights with an on-time record of 75% or less. In response to record high gas prices, Kayak has launched a Miles Per Gallon (MPG) filter and Fuel Cost Calculator on the results page of its rental car search. We talk a lot about how user generated content has redistributed power to travelers. It is true: social marketing has had a massive impact on online travel planning. But sometimes, the power is simply in information. Kayak has given this to travelers by providing information tools that are timely, relevant, and easy to find. 2008-08-08T01:09:33Z 2008-08-08T01:07:04Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.10122 2008-08-08T01:07:04Z

In a report I wrote earlier this year called “Travel Blogs: Aligning Marketing Objectives with Blog Strategy”, I talked about the potential of corporate blogs as a branding opportunity and the importance of allowing readers to post comments to maintain a conversational dynamic. Today, Southwest Airlines launched an online casting...

Diane Clarkson Commerce In a report I wrote earlier this year called “Travel Blogs: Aligning Marketing Objectives with Blog Strategy”, I talked about the potential of corporate blogs as a branding opportunity and the importance of allowing readers to post comments to maintain a conversational dynamic. Today, Southwest Airlines launched an online casting call to find their next “Blog-o-spondent” for its corporate blog “Nuts About Southwest”. Readers are invited to create a one minute video explaining why they should get the position. Blog readers will vote for the top three entries who will compete at the 2008 BlogWorld Expo in Las Vegas. This is a great example of how a corporate blog can be an interactive community builder and branding tactic. Nuttiness will surely ensue… if you’re interested in demonstrating yours, check it out. 2008-08-05T19:48:57Z 2008-08-05T19:45:58Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.10111 2008-08-05T19:45:58Z

Kayak has pulled AA fares from its website. Or AA has withdrawn itself from Kayak. Depending on which headlines you read. American Airlines and Kayak disagreed about how AA fares would be displayed on Kayak – specifically if fares would be displayed via AA.com or through Orbitz or other partners....

Diane Clarkson Commerce Kayak has pulled AA fares from its website. Or AA has withdrawn itself from Kayak. Depending on which headlines you read. American Airlines and Kayak disagreed about how AA fares would be displayed on Kayak – specifically if fares would be displayed via AA.com or through Orbitz or other partners. The “CEO of a competing travel site” leaked information to TechCrunch last week suggesting that American Airlines would have to pay a double fee for its fares sold on Orbitz via Kayak. This doesn’t makes sense as far as I understand it: Orbitz would pay Kayak for the lead, and American would pay Orbitz for the sale. This is a surprisingly oft-quoted comment given it doesn’t make sense and unnamed sources from competing sites aren’t exactly unbiased credible sources. According to an American Airlines’ spokesman, the airline wants to retain control over its distribution and it requests from Kayak the same linking policy as it has with Mobissimo and Farecast. From Kayak’s perspective, they can’t offer exclusive listings to airlines and maintain relationships with online travel agencies who provide access to carriers with whom Kayak doesn’t have relationships as well as cross carrier airfares. Rock, meet Hard Place. I think the essential missing piece of information behind this dispute is how many people selected the American fare through an online travel agency that, in all likelihood, had a higher price point that included a service fee. According to Compete, Sidestep and Kayak directed 1.3 percent of traffic to AA.com. AA has launched an email campaign to passengers who have booked an American flight through Kayak or Sidestep in the last year, offering 1000 bonus AAdvantage points to return directly American next time. So the question is: what proportion of that 1.3 percent will be driven directly to AA.com by the 1000 bonus points? And, at 1 cent a mile, will American end up ahead? 2008-07-28T19:58:43Z 2008-07-28T19:56:58Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.10087 2008-07-28T19:56:58Z

After a couple of weeks away traveling for both holidays and work, I’m now back in San Francisco. Thankfully. To a large extent, I have now surrendered to the chaos of air travel. My flights were all delayed, the longest by over four hours. One delay was caused by a...

Diane Clarkson Commerce After a couple of weeks away traveling for both holidays and work, I’m now back in San Francisco. Thankfully. To a large extent, I have now surrendered to the chaos of air travel. My flights were all delayed, the longest by over four hours. One delay was caused by a labor contract requiring the pilots who’d arrived an hour late the night before now leave an hour later the next morning. My annoyed air travel reflex wondered why I received the delay alert shortly before scheduled departure when I was already at the airport instead of the night before. I suppressed that thought. And I noticed that other passengers helped me several times as in-flight crew watched me struggle with bags, stroller and a one year old. I must confess to casting an irritated glance at the flight attendant who told me she wasn’t allowed to store my son’s bottle in the fridge and gave me a bucket of ice. Joe Sharkey has written a good article in the NY Times about passenger hostility and its impact on flight crews. The pilot interviewed describes the flight crew as part of the "labor puzzle". Mr Sharkey's article follows the Miami-New York flight cancelation a couple of weeks ago after the crew arrived 75 minutes late and passengers booed (or were unruly, depending on the source). After we have run the gauntlet to get to the gate, most air travelers are nerves are frayed. Passenger frustration will not be abating any time soon. This could be a good opportunity for airlines to turn the negative around, by offering welcome smiles and a bit of extra assistance. This was a missed opportunity when I flew across the country with a bucket of ice balanced between my feet. Maybe next time. Deep sigh. 2008-07-07T19:23:47Z 2008-07-07T19:13:25Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.10015 2008-07-07T19:13:25Z

One of my colleagues received an email from Virgin American for an upcoming flight advising that delays in modifying their new planes means that the in-flight entertainment system will not be functioning on her flight. Here is a portion of that email: Due to delays in the modification of our...

Diane Clarkson Commerce One of my colleagues received an email from Virgin American for an upcoming flight advising that delays in modifying their new planes means that the in-flight entertainment system will not be functioning on her flight. Here is a portion of that email: Due to delays in the modification of our new planes, the inflight entertainment and select other in-seat services will not be available on your upcoming Virgin America flight. This includes the Red Inflight Entertainment system, which normally features satellite TV, movies, games, Google Maps and a food ordering system. In addition, the plugs at every seat for electronic gear will not be operational for the flight. Why are we sending you this message? We want you to be prepared to have your laptop or iPod fully charged, and ensure you have the latest magazines or newspapers to read while onboard your flight. Weʼll do our best to provide some reading material onboard in case you forget. The Guest Services Team Certainly Virgin America realizes its in-flight entertainment is an important brand differentiator. But this email turns a negative into a positive, simply by being upfront and considerate. Thank you Virgin America. I needed that boost in my faith that there is some care out there. 2008-07-02T18:56:00Z 2008-07-02T18:55:07Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.10000 2008-07-02T18:55:07Z

These may not be easy times for online travel agency marketers, but they are certainly creative times. Priceline announced today that they are lowering hotel booking fees and eliminating change and cancellation fees. Last month, Orbitz launched its Price Assurance program to give passengers cash back if another traveler books...

Diane Clarkson Commerce These may not be easy times for online travel agency marketers, but they are certainly creative times. Priceline announced today that they are lowering hotel booking fees and eliminating change and cancellation fees. Last month, Orbitz launched its Price Assurance program to give passengers cash back if another traveler books the same flight itinerary at a lower rate. Expedia is offering $50 in free gas to travelers booking three or more nights on its site in a MasterCard cross-promotion. According to BusinessWeek, May saw an 8% increase in visitors to online travel agencies which is consistent with price-sensitive comparison shoppers. This figure doesn’t tell where travelers purchased. At this point, it is too early to tell is dipping into their margins will pay off. But, as a marketer told me last week at the Eye For Travel Marketing conference in Chicago, “It’s not easy. But I’d rather be trying to sell travel than Fords.” 2008-06-16T22:05:46Z 2008-06-16T22:03:45Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.9963 2008-06-16T22:03:45Z

Orbitz has launched a policy called “Price Assurance” whereby they will refund customers who purchase an airline ticket and then see the price fall. Orbitz will foot the bill for amounts between $5 to $250. How popular will this be? According to Expedia, only about 6% of air travelers purchase...

Diane Clarkson Commerce Orbitz has launched a policy called “Price Assurance” whereby they will refund customers who purchase an airline ticket and then see the price fall. Orbitz will foot the bill for amounts between $5 to $250. How popular will this be? According to Expedia, only about 6% of air travelers purchase the qualifying identical itineraries. The Wall St Journal quotes an Orbitz spokesperson as saying "We expect to be sending out thousands of checks per month." The skeptic in me notes how the possibility that Expedia is underestimating while Orbitz overestimates. At first glance, one has to wonder how sending out “thousands of checks” per month can be a good idea, particularly for an online travel agency that has been struggling with market share. A couple of thoughts here: Firstly, if you accept the premise that concern ticket prices may fall is an obstacle towards early flight booking, then this program will assuage these fears – presumably resulting in a booking at Orbitz. Secondly, Orbitz’s risk is minimized by the trajectory we’ve seen in airfare prices in the last year. Other online travel agencies will have the opportunity to watch as Orbitz goes first in this experiment and judge if they want to duplicate it (not the first time that’s happened). 2008-06-13T01:38:03Z 2008-06-13T01:36:04Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.9949 2008-06-13T01:36:04Z

United Airlines announced today that they will follow American Airlines and introduce $15 baggage fees for each direction for the first checked bag. Not to be left behind, US Airways followed suit hours later. You can link here to United’s statement about rising oil prices (self-evident) and how they are...

Diane Clarkson Commerce United Airlines announced today that they will follow American Airlines and introduce $15 baggage fees for each direction for the first checked bag. Not to be left behind, US Airways followed suit hours later. You can link here to United’s statement about rising oil prices (self-evident) and how they are trying to meet what consumer value most (somewhat less evident). The airline industry is in crisis. That fact is increasingly apparent with the seemingly daily reports of reduced capacity, layoffs, fare increases, and fees fees fees. Today US Airways also announced a $2 charge for soda and non-alcoholic beverages (now we all knew the free pop couldn’t last forever). At its simplest, airlines need to raise fares dramatically. AA went first on the $15 baggage fee. But no one wants to go first on a major fare hike. Instead, the airline industry will continue to nickel and dime in the hopes of staying alive longer then their competitors, thereby surviving to a day when there will be less capacity and fares can be raised. According to IATA, the airline industry will lose $2.3 billion this year. That’s a lot of nickels and dimes. 2008-06-10T19:42:23Z 2008-06-10T19:38:50Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.9940 2008-06-10T19:38:50Z

While the online travel agency has expertly translated the transaction element of booking travel online, it has never truly been able to duplicate the brochure rack browsing in a traditional travel agency. Not all travelers begin their research process with definitive dates and destinations in mind. In fact, in a...

Diane Clarkson Commerce While the online travel agency has expertly translated the transaction element of booking travel online, it has never truly been able to duplicate the brochure rack browsing in a traditional travel agency. Not all travelers begin their research process with definitive dates and destinations in mind. In fact, in a report we published a few months ago called “Online Destination Planning: Influencing Undecided Travel Researchers”, we found that 39 percent of online travel researchers had not decided on exact dates when they begin researching travel online, and 15 percent have not decided on a specific destination. Reshaping the booking process from its predominantly destination- or date-based navigation is one of the great challenges facing the online travel agency. Yesterday, a new Web site called TravelMuse launched its public beta promising to be the travel industry’s first “inspiration finder”. While there are other travel Web sites that offer destination guidance and inspiration, I’ve not yet seen one that considers the multiple dimensions that TravelMuse looks at, including budget, travelers’ ages, maximum hours in flying time, and preferred vacation activities. The site blends this personalization with collaboration tools, travel guides, photos and original editorial content. Definitely worth checking out. 2008-06-06T18:16:13Z 2008-06-06T18:12:21Z tag:weblogs.jupiterresearch.com,2008:/analysts/clarkson//9.9917 2008-06-06T18:12:21Z

Comscore has released information indicating consumers are increasingly shifting from online travel agencies to supplier sites. According the Comscore’s data, supplier Web sites accounted for 72% of online hotel spending during Q1 of 2008. That's a three-percentage point increase in dollar share from last year. This trend is certainly...

Diane Clarkson Commerce Comscore has released information indicating consumers are increasingly shifting from online travel agencies to supplier sites. According the Comscore’s data, supplier Web sites accounted for 72% of online hotel spending during Q1 of 2008. That's a three-percentage point increase in dollar share from last year. This trend is certainly consistent with JupiterResearch’s travel forecast. We looked at this trend specifically among online leisure and unmanaged business travelers, and forecast that hotel Web sites will account for 54 percent of online leisure and unmanaged business travel revenue in 2007, a share that will grow to 57 percent by 2012. This trend is further fueled by managed business travelers who go outside their companies’ preferred booking partners and prefer supplier sites, frequent travelers who are notably more likely to book their accommodation at supplier Web sites, and the leisure travelers shifting from telephone reservations to hotel Web sites. This shift to supplier Web sites adds up to a challenging situation for the online travel agencies. After 9/11, online travel agencies were able to leverage the travel slowdown into opaque pricing and vacation packages. This will likely happen again as there are fewer heads in beds and hotels need the distribution partnerships. However, in 2001, the online travel agencies were more likely to be a first stop in travel research. They will have to fight for that position now.