Big data with a personal touch

July 7, 2017

In the age of Internet of Things, is data the holy grail for travel companies to win the personalisation war? Find out where the industry stands in using data, its struggles and what the future might hold

With rapid advancement in digital and mobile technology, more travel companies are awakening to the massive potential of using data to unlock possibilities in providing seamless, personalised customer experience.

Those who are able to leverage millions of travel data points will possess a “huge competitive advantage”, Hotelbeds’ managing director Carlos Muñoz told TTG Asia in a one-on-one interview during its MarketHub Asia event in Bangkok in May. Having access to such information will allow companies to manipulate the “emotional” aspects of travellers by shaping their customer behaviour and maximising their spending potential, he noted.

Earlier at the WTTC Global Summit in Bangkok in April, AirAsia CEO Tony Fernandes also played up the importance of data in the travel and tourism sector.

“The data explosion will decrease cost and increase revenue, and gives fantastic opportunities for airlines. That excites me tremendously,” he enthused.

But for travel to be personalised down to the individual level, data insights have to go beyond their current use and adaptation.

Even for Hotelbeds, a global bedbank with more than 136,000 hotels worldwide, Muñoz still sees significant gaps in harnessing the sheer volume of data available.

“Our clients have given us huge amount of data,” he shared. “We are using only five per cent of this data so there is a lot of improvement.”

Albert Pozo, president, Amadeus Asia-Pacific, added: “Data on its own will mean very little. We’ll also need systems that are clever and agile enough to integrate them and make sense of them – turning them into immediate, actionable insights… I think we’re only at the early stages of what could be a fully interconnected industry.”

The ability of data to transform the travel industry cannot be understated, although Pozo stressed that “it is not data itself that is the holy grail – but the analytical capabilities and technology we layer on top of it, and how well it is integrated into business processes. The possibilities are endless”.

It is not data itself that is the holy grail – but the analytical capabilities and technology we layer on top of it, and how well it is integrated into business processes. The possibilities are endless.
Albert Pozo, President, Amadeus Asia-Pacific

Swimming in a sea of data
Bangkok-based DMC Asian Trails has also caught up in the data riptide, having taken advantage of information on the behaviour of clients and consumers to form its marketing and business strategies.

E-commerce and marketing manager Niels Steeman told TTG Asia: “Asian Trails regularly uses analytic sources on our digital marketing channels, Google Analytics and other online applications to seek out trends and our success rate online. I believe that the availability of such data becomes an even more crucial part of the travel business.”

He added: “Looking back barely a decade ago when statistics were hardly available, we are now able to see the response of those showing interest in our products and how they read this. This mainly has been a positive feat with the shift from off to online marketing channels and the ongoing development in the analytics part.”

The digital revolution, however, also brings with it an explosive surge in the variety and quantity of data available, so much so that Steeman dubbed data analysis “a time-consuming and a speciality field”.

He elaborated: “The amount of data available is simply overwhelming and one cannot go and invest into additional resources unless you have a clear image of what you’re after.”

Trying to make sense of data is hardly unique to Asian Trails; even large OTA players like Rakuten Travel, one of the biggest hotel reservation websites in Japan, also see hurdles in effective data utilisation.

Said Hirofumi Haraguchi, vice manager, business strategy group at the OTA’s international sales department: “Data is very important for Rakuten, as we have a huge e-commerce marketplace in Japan with over 80 businesses in our portfolio. However, customer demands are very diversified today so we need to use data better. We’re not maximising the use of data yet, and finding skilled personnel to manipulate data into meaningful insights is a challenge.”

Noel Swain, COO of Ezeego1, deemed data analytics a “learning process” for the India-based OTA, which has put in place associates across various departments instead of a specific team to build a more complete insights picture.

But “the overload of data is quite real” and the challenge lies in figuring which of the immense data Ezeego receives to use, added Swain, but he foresees the company will get better at parsing information into useful insights in future.

Some industry players also share that current data insights are better catered to the B2C travel market, as B2B players still grapple with gleaning meaning from the vast sea of information available.

For B2B OTA Aviation Services Mongolia, currently in the early stages of developing a data analytics strategy, the uphill task lies in getting information from its agents about their end-consumers, according to CEO Margad Byambajav.

If unstructured sources of customer data could be better leveraged for his portal, he foresees being able to help agents narrow down hotel choices in a destination to offer more targeted and personalised recommendations for their clients.

It’s a similar story for Asian Trails, as Steeman sees data analytics “remaining very much focused on B2C/B2B2C channels than B2B channels”. Learning how to interpret available data and actively turn them into actionable insights and strategies may the biggest challenges for DMCs, he opined.

Not big but smart data
No one will be able to capture and analyse data from the future, but predictive analytics – i.e. applying the right statistical models to gain insights and find patterns in a vast amount of data – is getting the attention of more big data specialists and travel businesses alike.

Hotelbeds’ sales director Sam Turner spotlighted the accelerating pace of change in the digital world today. “By 2020 the world will produce 40 zettabytes, up from 0.1 zettabytes in 2001, a 400 times difference. It’s not the size (of data) but what you do with it,” he said, adding that the effective data analytics can improve profitability for companies. “The analytics journey in the new world is going to be the prescriptive way, instead of descriptive.”

Echoing Turner’s view, Hotelbeds’ marketing & communications director Gareth Matthews added that predictive analytics has many potential applications in the travel industry, such as making airport delay predictions by combining weather, flight and traveller information.

But the current biggest hurdle to personalised service for companies lies in the lack of resources connecting different data sets, say, between a user’s frequent flyer programme and social media profile, pointed out Ming Foong, managing director Greater China & online business group, Asia-Pacific at Travelport.

Looking ahead, merging predictive analytics with artificial intelligence (AI) and matching learning capabilities appear to excite many trade players and industry watchers.

Amadeus’ Pozo elaborated: “Combined with AI, travel companies can use data analytics to create highly-tailored offers based on customers’ needs and preferences. Past behaviours can obviously feed AI computers to predict future purchase actions. But deep learning algorithms can help travel companies make the most out of their customer’s online activities…AI will also bring customised suggestions during the trip based on a traveller’s profile, location, time, and many other parameters and data that algorithms will process. This will take us into the future of ultra-personalisation.”

At the same time, Pozo insisted on maintaining a careful balance against rising privacy concerns in the pursuit of getting more information from travellers.

“Some boundaries must be maintained and at all times we must respect and protect personal data and the need for privacy. If we take this for granted we risk losing the trust of customers. And above and beyond adhering to legislation, travel players must also be able to articulate ‘what’s the value?’ for getting travellers to share their data,” he cautioned.

But Steve Saxon, partner, McKinsey & Company, reminded the industry not to lose sight of people – the critical factor that determines the success of data utilisation. “We need to think not just about data but how to embed data within the company culture,” he said.

“The power of the people is more important than the power of data,” Saxon concluded.

This article was first published in TTG Asia July 2017 issue. To read more, please view our digital edition or click here to subscribe.

Marketing US as a friendly place

By Raini Hamdi

July 7, 2017

A new president throws a spanner in the works for Brand USA, which has been hard at work promoting the US as a welcoming and friendly destination to outsiders. The task has become even more important. Raini Hamdi talks to Chris Thompson, Brand USA president & CEO, about it*

Given that this is the first administration change since Brand USA started operations in 2011, how is it good and bad for you?
(President Trump) having convinced enough people in the country to elect him as president, then going into office against the established ways the government has run in the past, makes this election a little bit unique. As well, every president contemplates changes in policies. This president is focusing on policies that in many ways could have an impact on travel & tourism but what we’re dealing with is a perception issue vs the reality.

How so?
There has been a lot of conversations by the president and the members of his administration on proposed changes. But the reality is everything that has made the US an aspirational destination all these years – nothing of that has changed. As a matter of fact, the brands that deliver the product – the hotels, retail attractions and experiences – are finding new ways to innovate themselves; the people who deliver the experiences, i.e. the US citizens, open their arms to visitors. None of that has changed.

As you and I are talking today, nothing legally has changed about how anybody in the world has to acquire visas to visit the US. The only thing that has changed as it relates to entry policy, legally, is the electronics that you can carry onboard, i.e. the laptop travel policy which affects 10 countries in the Middle East. While the number of visitors from those countries is small, the countries are gateways for many visitors, from Asia or (elsewhere), to the US, and we do know that there has been an impact. But that’s the only thing that has legally changed.

What is the impact?
Based on indicators such as paid search, travel to the US has softened (since the election and new administration). Advanced bookings in some situations are down. Actual (figures) from the Department of Commerce are five to six months behind so until those actual numbers come in, what we have is anecdotal.

My colleagues and the industry were at ITB Berlin and many of the conversations they had with the leading operators and the travel trade in Germany showed that they were holding par to the prior year or were having a record year. Now that’s just one market, one indication. We also hear from partners. Arne (Sorenson, CEO of Marriott International), who is on our board, said they have not yet seen actual effect.

But no matter how any market is reacting to the political sentiments, the thing that has most affected our ability to attract year over year numbers from a lot of markets is currency exchange. The strong dollar has had a major impact on many of our major markets – Canada, Mexico and some of the European markets.

What can you do?
We’re planning to affect leisure travel as we’re at the front of the summer season which for many of our major destinations is a significant time for travel. Our newest campaign has been launched in 11 markets – Canada, Mexico, Brazil, Germany, France, the UK, Japan, South Korea, India, China and Australia.

When wallets are challenged, we need to show the value proposition.

How?
The campaign shows value proposition through 3Ps: possibilities, persona and proximity.

The first is about the US having awesome possibilities for our visitors. I’d say even with our mature markets, there is much they do not know than they do know.

Then we’re segmenting the market by persona, in three ways. One is through excitement, things that get your blood flowing, participatory or as a spectator. The second is living like a local; when I travel to a destination, I want to get to know the people, what makes them live there, what keeps them there. Then comes escape, that the US has the alternatives for whatever it is that you want to escape from, say, the day-to-day routine of your job.

The beauty of the US is the diversity, not just geographically, but in the experiences that you can enjoy. People can find alternative ways to enjoy the US and, historically, this has allowed us to overcome the strong dollar. This is why a big portion of the campaign is about proximity, showcasing what’s available within five hours of the gateway visitors arrive at, which in many cases many are not even familiar with.

Our campaign is social first, mostly digital, i.e. through online videos, paid search, etc, and it’s social centric – for instance, we’re inviting our friends from around the world to photograph themselves in the middle of their US experiences and share that.

Is this one of your bigger campaigns, to address the perception vs reality issue?
It was already in the works prior to election, not designed at all to address the election, rather it’s our attempt to promote the nature of the destination, i.e. its diversity, the people who deliver the experiences and the US people as a whole. The whole foundation is a welcoming message, which does help to offset some of the uncertainties people may have on whether or not they are welcomed.

That, and what we’re doing in corporate communications, which is communicating accurate and timely policy changes to visa and entry policies, making sure people understand what has actually changed vs what has been talked about or contemplated, are both going to help us.

Is there a role for travel agent?
Absolutely. The way we market is direct to consumer, such as this campaign. The second way is through the relationships we have with the travel trade. Even in mature markets like Japan, there’s still a very active travel trade network that helps us facilitate travel to the US. We’ve been enjoying many visitors from Japan for years. A lot of those traditional visitors learn about the US through the travel trade and even though the Internet has enabled them to get first-hand information on their fingertips, a lot of them still use the travel trade.

The younger generation is probably slanting towards the Internet but many of them still use travel agents particularly if it’s the first time they are visiting the US, to guarantee the quality of the visit. They might do their own research but call the agents to facilitate the travel.

So the travel trade still plays a critical role. We have 13 offices worldwide and it is those offices on the ground that help us facilitate the relationships with the trade.

You talked about the friendly message. But the first impression people tend to get, i.e. at customs, is unfriendliness.

Hospitality and security aren’t mutually exclusive. How do you introduce hospitality into a process-oriented (patrol)? We’ve had those conversations. I’d say though it’s gotten better than five, 10 years ago.

A wish for president Trump?
Keep travel & tourism as a high priority, based on its contribution both economically and diplomatically. We know security is a real threat and the decisions they make are the ones we have to trust. And when policy is changed to protect our borders, it also makes for a more secure place for our visitors. But while we are against terrorism, we are all for legitimate travel too.

“It is important to note that the budget any administration presents is a statement of priorities – not a budget that is presented to Congress to vote on. The administration’s proposal serves as a way to outline the priorities of the administration, but it is ultimately up to the Congress to formalise and vote on a final budget,” Thompson said in an email to TTG Asia (http://bit.ly/2tQotey).

Brand USA was approved by Congress in 2010 and began operation in 2011.

* Editor’s Note:This interview was conducted in April during the WTTC Global Summit in Bangkok and before president Trump’s proposed fiscal budget for 2018 was issued. The budget called for the elimination of Brand USA, with its revenue made available to the US Customs and Border Protection. The matter is still uncertain.

This article was first published in TTG Asia July 2017 issue. To read more, please view our digital edition or click here to subscribe.

Data’s the new black for travel

By Xinyi Liang-Pholsena

July 7, 2017

It has been 15 years since Minority Report hit the big screens and while some of the dystopian ideas put forth in the 2002 Tom Cruise movie could possibly exist in the future, the practical use of big data, predictive analytics and artificial intelligence (AI) are already in play today, albeit in less insidious but equally interesting forms.

Just look at Netflix, a successful example of a data-driven company and how analytics helps it to revolutionise the TV and film industry. By leveraging extensive data to track the habits of its 100 million (and counting) users, the popular streaming site can see what you’re watching and what you like; it also knows what you’ll watch in future; its sophisticated algorithms and big data analysis also enable it to become an original content creator with highly acclaimed shows like House of Cards and Orange Is The New Black.

Netflix is a good illustration that data is a potent ingredient in the quest for competitive differentiation and personalisation – and the application of data in the travel industry can be just as immense and powerful.

But big data also begets a big question: how can travel organisations tap the current data bonanza to power their strategy?

The plethora of data and its effective use still present considerable obstacles for travel companies, many of which admit that they lack the expertise or resources to successfully extract this vast, largely untapped resource and turn it into critical insights.

The key lies not in the volume of data but how it is harnessed, industry watchers pointed out.

Data needs to be combined with the human touch to deliver the best of the man-machine symbiosis…

However, many organisations are still steeped in the descriptive stage in analytics, i.e. using data to reveal the past. But the next stage of analytics evolution promises to change that, as AI and machine learning come together to “learn” how to deliver more nuanced and personalised insights for business through proactive – instead of retroactive – use of data.

With the right technology and skills, aided by constant refinement and context placement of data, travel players will be better equipped to maximise the valuable resource that is data in order to become more insightful, efficient and productive.

We’ve entered an age of analytics. Like how automation and the Internet have not displaced travel agents, data needs to be combined with the human touch to deliver the best of the man-machine symbiosis, unlock new revenue opportunities for travel players, and create compelling travel experiences that connect emotionally with the consumer.

Will the availability of more accurate data see more travel marketeers undergo a creative renaissance and introduce powerful campaigns? Will travel business, like Netflix, use data to guide all its strategies and decisions?

Watch this space.

This article was first published in TTG Asia July 2017 issue. To read more, please view our digital edition or click here to subscribe.

Emirates, Turkish Airlines get off US laptop ban

By TTG Asia

July 6, 2017

Following the lifting of the laptop ban on Etihad Airways’ flights from Abu Dhabi International Airport earlier this week, Emirates and Turkish Airlines have now joined the list.

Emirates said it worked with the US authorities to meet the requirements for lifting the ban on its flights, while Turkish Airlines is now allowing passengers on US-bound flights to take their laptops and electronic devices with them.

The latest announcement leaves Qatar, Morocco, Jordan, Egypt, Saudi Arabia and Kuwait waiting to have the ban lifted.

Update: Qatar Airways was removed from the list of airlines subject to the ban shortly after press time

Thai outbound growth drives launch of CNTA’s Bangkok office

By Siriarpa Kamjan

July 6, 2017

The China National Tourism Administration (CNTA) has opened an office in Bangkok, its second outpost in South-east Asia after Singapore.

A main driver for the decision is the growth potential of Thailand as a source market, Zhang Xinhong, director of China National Tourist Office, Bangkok, told TTG Asia.

In 2016, Thai arrivals into China increased to 800,000 from 640,000 in 2015. Zhang expects there will be continued growth now with greater tourism promotion in Thailand from China’s provincial bureaus and CNTA.

“The Bangkok office will promote our bilateral tourism exchange, build up China’s popularity as a destination and serve Chinese tourists in Thailand,” said CNTA vice chairman Wang Xiaofeng at the opening ceremony last month, reiterating that the two countries will continue to deepen tourism cooperation under the Belt and Road Initiative.

In particular, the Bangkok office will network with the local travel trade, media and airlines as well as facilitate cooperation with Thai governmental offices and travel associations, Zhang said.

She added: “Our office is collaborating with travel agent associations to (conduct) workshops on China tourism or fam trips. We shall target travel agents in big cities of Thailand.”

CNTA has 22 overseas offices, two of which are in South-east Asia. It first established a base in the region through its Singapore office to cover Thailand, Myanmar, Laos, Cambodia and Vietnam.

Hopes for Cambodia tourism soar on new flights from Dubai

By Marissa Carruthers

July 6, 2017

Phnom-Penh-inaugural-flight-Emirates — Traditional dancers greet passengers arriving on the inaugural flight

Tourism bosses are optimistic that Emirates’ inaugural daily services between Dubai and Phnom Penh via Yangon, which commenced on July 1, could bring new opportunities for Cambodia’s inbound and outbound tourism.

Cambodia’s secretary of state for Civil Aviation Mao Havanall commented that the new route “increases Cambodia’s connectivity with the world’s main hubs of Europe and the US and brings a wealth of opportunities”.

Traditional dancers greet passengers arriving on the inaugural flight

The new route offers more choices to passengers travelling between Phnom Penh to Dubai and beyond. Pierre-Andre Romano, general manager of Exo Travel Cambodia, expects the flight to lure more longhaul travellers from the Middle East, Africa and South America, specifically Brazil and Argentina.

Visitors from southern France can now fly directly from Nice to Dubai, instead of connecting in Paris, he added.

The service also opens opportunities to market the destination and its products, according to Emirates’ senior vice president of commercial operations for the Far East, Badr Abbas.

“Even in destinations where Cambodia is not popular, we will carry out a lot of marketing and actively sell this as a new destination,” said Abbas.

Socheata Ham, manager of Global Adventures, predicts the move will also contribute to Cambodia’s growing outbound market – which increased by 20 per cent in 2016 to 1.4 million – with France, the US and Canada likely to be popular choices.

Operated on a Boeing 777 aircraft, EK388 departs daily from Dubai International Airport at 09.15, arriving in Yangon at 17.25. It then departs Yangon at 18.55 to arrive at Phnom Penh International Airport at 21.25.

The return flight EK389 departs Phnom Penh at 23.10 and arrives in Yangon at 00.40. It will then set off to Dubai‎ at 02.10, arriving at 05.40.

Chinese deities ride above clouds in business class

By TTG Asia

July 6, 2017

mazu-xiamen-air — Photo credit: Persatuan Hainan Selangor & W.P

Three statues of Chinese deities travelled in business class on a Xiamen Airways flight to Malaysia last Saturday.

The idols of heavenly goddess Mazu (the historical form of Fujianese shamaness Lin Mo), accompanied by her guardians Qianliyan (Thousand-Mile Eye) and Shunfeng’er (Wind-Following Ear), had made the journey from a sea temple in Fujian province as part of the China-Malaysia Mazu Cultural Exchange programme.

Photo credit: Persatuan Hainan Selangor & W.P

Organiser Thean Hou Temple in Kuala Lumpur was said to have paid RMB2,091 (US$307) per ticket for their sacred VIPs.

According to reports, the three deities joined a procession in Kuala Lumpur on Sunday. They then made stops in Malacca and Singapore before heading back to China, which leaves us wondering: did they return home as luxuriously as they arrived?

Mantra to manage suburban property in Melbourne’s north

By TTG Asia

July 6, 2017

Australia’s Mantra Group will operate a new-build hotel in Melbourne’s booming northern suburbs, slated for opening in mid-2019.

Epping, in the City of Whittlesea, one of the largest municipalities in metropolitan Melbourne, will be the location of the four-star, two-wing development valued at A$70 million (US$53 million).

Mantra Epping Hotel

Mantra Epping Hotel will feature 214 rooms and apartments, a café/restaurant, brewhouse, conference and meeting facilities, gymnasium, and an open car park containing 143 marked bays and secure bicycle storage.

The hotel will open within the Northpoint Enterprise Park – said to be Melbourne’s fastest growing expansion corridor – and be surrounded by retail shops, showrooms, business and industrial premises, as well as a hospital and the newly-relocated Melbourne Market.

Mantra Group CEO, Bob East, said: “This acquisition comes at an opportune time in the Australian hotel market, with hotels in Melbourne and surrounds experiencing substantial uplift in demand in recent years.

“This strong performance is set to continue with further domestic and international visitation uplift forecasted for the greater Melbourne market.”

Aviation roundup: Virgin Australia, SriLankan Airlines and more

By TTG Asia

July 6, 2017

Here’s our weekly roundup of new air routes.

Virgin Australia expands footprint into Greater China
Virgin Australia has commenced five-times weekly flights between Melbourne and Hong Kong, utilising an Airbus A330-200 with 255 economy seats in a 2-4-2 configuration.

On Tuesdays, Thursdays and Saturdays, flights will depart Melbourne at 00.35 and arrive in Hong Kong at 08.15. Flights on Monday and Wednesday will depart Melbourne at 10.25 and 09.40 respectively, and arrive in Hong Kong at 18.05 and 17.20.

The return leg on Mondays, Tuesdays, Wednesdays, Thursdays and Saturdays will see the aircraft depart Hong Kong at 19.50, and arrive back in Melbourne at 07.20 the following day.

Sri Lanka’s national carrier begins flights to Hong Kong
SriLankan Airlines will begin five-times weekly flights between Hong Kong and Colombo on July 15.

On Thursdays and Saturdays, there are two flights daily. The first flight will depart Hong Kong at 02.00 and arrive in Colombo at 04.50, while the second flight will depart at 18.15 and arrive in Colombo at 21.05. On Mondays, only the second flight will be in operation.

AirAsia adds Nha Trang to network
Beginning September 14, AirAsia will commence daily flights to Nha Trang from Kuala Lumpur, the airline’s fourth route to Vietnam.

AK204 will depart Kuala Lumpur at 10.30 and arrive in Nha Trang at 11.35. The return flight will depart Nha Trang at 12.00 and land in Kuala Lumpur at 15.15.

Emirates flies direct to Hanoi
Emirates has launched daily direct flights from Dubai to Hanoi, shaving about 2.5 hours of travel time as it no longer stops in Yangon.

Flights will depart Dubai at 03.30 and arrive in Hanoi at 13.05, while the return flight will depart Hanoi at 01.30 and arrive in Dubai at 05.05. The new service is operated with a two-class Boeing 777-300ER, which offers 42 seats in business and 386 seats in economy.

Cebu Pacific commences night flights to Boracay
Cebu Pacific has begun evening flights between Manila and Caticlan with an ATR aircraft, adding two additional daily flights between the two cities.

Currently, the last flight between Manila to Caticlan leaves at 15.30 with the return flight 17.10. With the new night operations, the last flight will leave Manila at 18.55 and will return from Caticlan at 20.45.

Campbell returns to Outrigger Resorts, this time as area DOSM

By TTG Asia

July 6, 2017

Outrigger Enterprises Group has appointed Rory Campbell as the area director of sales and marketing.

The Australian national is responsible for two Thailand properties – Outrigger Laguna Phuket Beach Resort and Outrigger Koh Samui Beach Resort. He will report to the general managers of each resort, respectively Tony Pedroni and Marc Landgraf, and to Andrew Gee, the company’s regional director of sales and marketing for Australia and New Zealand.

This appointment is Campbell’s second stint with Outrigger. He was previously with the company as director of sales and marketing for Outrigger Laguna Phuket Beach Resort (2013-2015), and general manager of Outrigger Koh Samui Beach Resort (2015-2016).

Prior to joining Outrigger in 2013, Campbell had worked in senior sales and marketing roles for Hilton in Spain, Anantara Hotels and Resorts in Thailand, and the Eaton Hotel in Hong Kong.