More growth to Travel Revenue in 2011

Great news for travel industry!!! According to the Asian Travel News the hotel industry continued to recover in January 2011 with strong growth in both global hotel revenue and bookings, according to data from Pegasus Solutions’ The Pegasus View.
Driven by demand and assisted by rate growth, business travel revenue rose by more than +40% over January of last year, while leisure revenue jumped nearly +15% over the same period in 2010.
The report also forecast growth in business and leisure bookings through mid-year based on business on the books. Forward-looking data for bookings made through the mostly corporate global distribution systems (GDS), show an average monthly growth rate potential of more than +20% through the second quarter. Average daily rate (ADR) for the channel will continue at the same or an even stronger pace than that realized in Q4 2010, while length of stay (LOS) will also expand.
“The travel industry’s rebound is a direct result of a healing economy and increased corporate travel,” said Mike Kistner, chief executive officer of Pegasus Solutions. “As corporate profits and competition return, companies are sending executives and sales teams back on the road. The accompanying growth in length of stay and booking lead times suggest more of these trips are made of group travel, conferences and meetings, which are a boon for hotels.”
The outlook for the leisure market also reflects positively for hotels. Bookings to-date made via online channels, or the alternative distribution systems (ADS), show increases of more than +10% over 2010 through spring and into summer. ADR in this channel will continue a slow and steady climb as well, while LOS will remain static. Look-to-book ratios, a product of online consumer comparisons and transaction processing inefficiency, continue to grow by over +40%, and will remain an issue for the industry.
“Consumers will travel as much or more in the coming year. A strong, but slightly smaller majority will also spend as much or more on travel in 2011 than in 2010 – they plan to spend, but spend wisely by shortening trips or aggressively shopping rates,” added Kistner. “Hotels would do well to examine their revenue management strategies to make sure they don’t risk losing the business or revenue to be had with inapt rates that are too high to sell rooms, or too low to make a profit.”
 Data reported in The Pegasus View comes from billions of transactions processed monthly by Pegasus Solutions, one of the world’s largest global processors of hotel transactions. It reflects data drawn from both GDS and ADS transactions, representing the business and leisure markets respectively for approximately 90,000 hotels worldwide.

Travel Industry is conquering Internet

“The growth trajectory for those who intend to purchase travel products via their mobile device is extremely strong, and is projected to nearly double in 2011”.

Internet without any doubt has shifted the marketplace and has influenced everyday consumer’s behaviour and lifestyle. The social networks and mobile devices are the two major trends which are leading consumer’s behaviour and choices. Here are the  two newest reports, PhoCusWright explores how these sweeping trends—mobile and social networks—are changing how consumers shop for, purchase and share their travel experiences. Based on a comprehensive survey of online travellers, PhoCusWright’s Traveler Technology Survey 2010:

PhoCusWright’s Traveler Technology Survey 2010: Mobile reveals some significant trends in device ownership, and explores the types of activities that travellers perform (and plan to perform) on mobile devices. Among the report highlights:

Keeping in touch
Among online travellers who carry smart phones, more carry touch screen devices than non-touch screen devices. However, only a third of those touch screen smart phones are iPhones, suggesting that some travel companies should broaden their mobile strategy.

See what is on tap
“The growth trajectory for those who intend to purchase travel products via their mobile device is extremely strong, and is projected to nearly double in 2011”.

PhoCusWright’s Traveler Technology Survey 2010: Social Networks. In particular, the report focuses on travel-related communications and activities on social networks, and how this activity impacts the travel planning and sharing processes. Research highlights include:

Posting is the new postcard
While posting about general subjects is far more common than travel-related posts, nearly four in 10 social media users have posted something about travel, underscoring the importance of having a coherent social media strategy.

“Fans” or not, travellers connect with companies online
Relatively few social network users are “fans” of travel companies online; however, more than one third of online travelers have interacted with a travel company through an online social network via a computer.

These targeted reports on mobile and social networks are each based on PhoCusWright’s Traveler Technology Survey 2010, which examines consumer behaviour and attitudes toward a broad array of innovations in travel technology, including new tools, functions, and platforms. The way today’s travellers use technology to plan, shop, and buy their travel is constantly changing; these reports help travel companies understand the fundamental trends and stay in the game.

Top destinations in Europe

As we are in the mid of February there are a lot planning or have already planned their holidays!!This is exciting itself. Three European countries seem to be more appealing for the vacation holders according to the British Travel AwardsTop 100 Travel Companies magazine.

SPAIN & THE GREEK ISLANDS - as the pound strengthens against the Euro and tour operators can respond to competition from Turkey and Egypt. Therefore, 2011 is set to see the return of some excellent deals to old favoruites such as Spain and Greece. Seville continues to represent exceptional value for tourists from the UK - the city is well serviced by low-cost airlines and you can bag a weekend break for as little as £70 with some of the bidget airlines. With the Greek Islands the nations favourite beach holiday destination, Rhodes is a big tip - after heavy investment in recent years has led to a flurry of quality new five star hotels opening recently.

CROATIA - Thomas Cook has reintroduced Croatia as a package-holiday destination for 2011, with its all-inclusive and boutique hotels a real draw in the exclusive resorts of Rovinij and Makarska. Dubrovnik on the Adriatic Sea remains a a popular choice, with the 45-day annual Dubrovnik Summer Festival, featuring live plays, concerts, and games not to be missed.

What's the next Travel Trend?

The International SPA Association has produced comprehensive research about the industry with the release of the ISPA 2010 U.S. Spa Industry Study. Produced in cooperation with PricewaterhouseCoopers, the study covers six categories of economic indicators within the spa industry.

INDUSTRY SIZE AND THE IMPACT OF THE RECESSION

Spas, like every other industry, were impacted by the worst economic downturn since the 1930s. However, even with the decline, the "big five" indicators (revenue, spa visits, locations, employees and square footage) remain at their second-highest level since ISPA’s first study in 2000. Spas managed the recession by reshaping their workforces and creatively identifying new ways to remain competitive. "After many years of very rapid growth, all five of the key measurement statistics for the spa industry show a decline after 2008," said PwC Global Research Director Colin McIlheney. "However, many in the industry who took part in the ISPA survey report that they have been proactive in taking measures to combat the impact of the recession. Respondents are indeed cautiously optimistic about the future while also recognizing there are still challenges to face."

INDUSTRY PROFILE

Composition of spa types remained similar to previous years. Day spas comprise an overwhelming majority of establishments (79 percent); resort/hotel spas comprise the second largest segment (8.8 percent), with medical spas a close third (8.7 percent). Other spa types include Club, Mineral Springs and Destination spas. The largest concentration of spas are in the Northeast (24 percent) and Southwest (23 percent).

FACILITIES

Spa establishments account for 76 million square feet of indoor space, made up of dedicated treatment rooms, as well as a retail element. Two in three spas contain massage-only treatment rooms; 71 percent contain skin-care only rooms. Four in 10 spas contain hair styling stations, one in two contain make-up stations. Manicure/pedicure stations are found in 85 percent of resort/hotel spas and 65 percent of day spas.

SERVICES AND PRODUCTS

Spas received an estimated 143 million client visits in 2009. The primary treatments provided by spas are body or skin care services, including facials, scrubs and wraps (94 percent); massage services (86 percent), and salon services (68 percent). Wellness programs, including weight management and healthy eating, are offered by 17 percent of spas; and one in 10 spas offer fitness or sports services.

PRICES AND COMPOSITION OF REVENUE

Four main spa treatment and service categories — massage and bodywork, skin care, hair and nail — account for 78 percent of total spa revenue, though average treatment numbers vary considerably by spa type. Retail accounts for 12 percent of spa revenue, with skin and hair care products accounting for the majority of spending in most spas.

PEOPLE

The spa industry employed over 330,000 people during the spring of 2010; 89% of spas provide a range of benefits to employees. Spas still serve a predominantly female clientele, though they are actively seeking to diversify the client base, with 45% of spas using packages targeted toward men. Other client groups targeted by spas include: wedding parties; couples; pregnant women; teens (13 to 19 years of age); athletes; families; and others. As a way of managing the effects of the recession, most spas have reengineered their menus. 75% have introduced shorter treatments (30 minutes or less) to provide a less expensive option for clients with busy schedules.

(source ISPA)

Recession doesn't discourage travellers

At the time that everybody is concerning where the global economy is going, the figures regarding Travel Industry could be socking. According to the new figures published to Asia Travel Tips, IATA is expecting a massive growth of travellers. 800 million new travellers will add up in this massive 8 trillion industry raising the total number to 3.3 Billion travellers up to 2014. This is rising a question. "Are the vacations a luxury? or a need"? As the stress levels are rising up, seems that more people need a good break. 
Who is going t Travel more?
China will be the biggest contributor of new travelers, according to Asia Travel Tips. Among  the 800 million new travelers expected in 2014, 360 million (45%) will travel on Asia Pacific routes and of those 214 million will be associated with China (181 million domestic and 33 million international). The United States will remain the largest single country market for domestic passengers (671 million) and international passengers (215 million).


Top 5
By 2014, the top five countries for international travel measured by number of passengers will be the United States (at 215 million, an increase of 45 million), the United Kingdom (at 198 million with an increase of 33 million), Germany (at 163 million with an increase of 29 million), Spain (123 million with an increase of 21 million), and France (111 million with an increase of 21 million).