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Upcoming Travel Trends for 2011 & Beyond


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5 replies to this topic

#1 WreckWench

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Posted 14 December 2010 - 10:37 AM


Surprising predictions of what’s ahead for air travelers


Passengers in the future can expect much-maligned airline fees to be replaced by a wide variety of in-flight retail choices and in what is perhaps a surprise, travelers will have more choices to book low-cost airlines.


Those were among predictions of three air travel experts asked to peer into the future of airline travel or what passengers might expect to see.


“We expect to see much more revenue-generating activity through in-flight retail (enabled by in-cabin Wi-Fi and controlled web portals),” said Brett Proud of GuestLogix. He envisions en evolution away from fees towards more innovative airline marketing such as catalogue sales.


Airlines are moving towards “virtual onboard stores” with products and services that might include an Orlando family able to buy theme park tickets on a plane or business travelers enroute to London’s Heahrow able to buy a rail ticket while in the air.


The future of the airline industry is not more fees beause travelers will not spend hundreds of dollars for new ones but instead passengers can expect new retail moves, says Raphael Bejar of Airsavings.


“Airlines are looking for value-add services that will not only increase their profits but which improve the customer in-flight experneience,” he said. He predicts airlines acting as retailers is an evolving trend that will “become a normal part of the customer in-flight experience.”


As for the prediction that the end is near for low-cost airlines, Roger Williams of Airline Information says that is not the case.


“In fact, I would say this is only the beginning of low cost airlines,” he said. He makes the point that a distinction has to be made between a low cost airline that keeps operating costs low and budget airlines that offer low fares “thanks to a low cost structure.”


That’s the case in part because traditional old-time airlines with higher cost levels “have learnt valuable accounting lessons from low-cost airlines.”


Here are some other trends future airline passengers can expect:



---Passengers might expect airlines to continue to find new avenues for fees, but their “future lies in redefining (and in some cases, reimagining) the cutomers experience, with an emphasis on promoting sales and value, not extracting fees,” said Proud.


---The expected move towards selling various products should be successful for the airlines because they already have such metrics as destination and demographic information that “traditional retailers would kill for,” Proud said. “As with any product and service offerings, customers’ adoption is important, but with the detailed information and captive audience an airline already has, high adoption and purchase rates are very likely,”he said.


---A good news item for passengers in the future is that they will increasingly have choices of products they wish to buy or can reject and not have to pay more. If a passenger is not hungry, he or she skip food offerings, for example.


---More direct routes will make travel more convenient for future fliers.


---Fares should not go up but could go down. “I expect the downward pressure on pricing caused by healthy competition and emerging shopping technologies to continue and thus keep fares low,” Williams said.


---North America and Europe are approaching saturation points in future expansion, but “Latin America, Asia and especially Africa have vast growth potential” and should offer more airline choices,” Williams said.


---And mergers? Are more expected? “There will always be mergers, but once the current deals are inked, we should expect a lull in this area,” Williams said.


---And one more bit of good news: charging to use the bathroom is not likely any more than it would be in a restaurant because it would deter consumers.”Airlines are working on cultivating brand loyalty by imporving their entire experience, so charging for bathrooms would be completely counter-productive and very short-sighted,” Bejar said.


Companies represented in this story:


Airline Information is an established company providing commercial aviation management conferences and active in the field of publishing with over 200 airlines regularly attending its worldwide forums.


Airsavings specializes in facilitating two fundamental operational iperatives of the airline industry: cost reduction and revenue development.


GuestLogix is a global provider of onboard store technology and merchandising, helping airlines create, manage and control onboard retail environments tailored to specific needs.


By David Wilkening

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#2 Guest_PlatypusMan_*

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Posted 14 December 2010 - 07:54 PM

"Speaking at the Hudson Securities conference Wednesday, US Airways president Scott Kirby noted that US Airways this year expects to bring in $500 million in ancillary fees: bag fees, change fees, etc.

He also noted that Wall Street analysts expect US Airways to report a net profit of $450 million to $475 million.

"And so, a la carte revenues represent 100 percent of that profitability," Kirby said, calling it "a structural change that we can't overstate how important that has been to US Airways and to the industry."

Somehow, I don't see fees going away. In fact, given the above, I foresee even greater efforts on the part of the airlines to get even MORE fees out of the travelling populace.

#3 WreckWench

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Posted 14 December 2010 - 09:28 PM

I think 'fees' will be restructured as 'options'. Neither will go away.

However IF new carriers come into the market then hopefully we will see a downward pressure in pricing. Virgin Airlines started service in DFW serving the CA market. All of a sudden AA dropped prices to $300 round trip WITH taxes to CA and back.

Let's hope Virgin starts serving the Caribbean!

Contact me directly at Kamala@SingleDivers.com for your private or group travel needs or 864-557-6079 AND don't miss SD's 2018-2021 Trips! ....here! Most are once in a lifetime opportunities...don't miss the chance to go!!
SD LEGACY/OLD/MANUAL Forms & Documents.... here !

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"Imitation is the sincerest flattery." - Gandhi
"Imitation is proof that originality is rare." - ScubaHawk
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Kamala Shadduck c/o SingleDivers.com LLC
2234 North Federal Hwy, #1010 Boca Raton, FL 33431
formerly...
710 Dive Buddy Lane; Salem, SC 29676
864-557-6079 tel/celfone/office or tollfree fax 888-480-0906

#4 Guest_PlatypusMan_*

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Posted 07 January 2011 - 01:51 AM

Here's something that caught me recently--I call it the Qantas Ambush because they were the ones who sprang it on me last trip.

They are weighing carry-ons and forcing you to gate-check them if they are over an arbitrary weight (7kg in this instance). Doesn't matter if it fits in the overhead or under the seat now--it's the weight that they're looking at.

This means that the expensive stuff you've been carrying on to avoid baggage handling goes into the hold anyway, and you'll hope that it arrives unmolested at your destination with you.

It's now official: I am shipping stuff ahead wherever and whenever possible. Can't afford the risk of having my regs, dive computers and camera gear go missing whole or in part.

PPM

#5 Landlocked Dive Nut

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Posted 07 January 2011 - 07:40 AM

Here's something that caught me recently--I call it the Qantas Ambush because they were the ones who sprang it on me last trip.

They are weighing carry-ons and forcing you to gate-check them if they are over an arbitrary weight (7kg in this instance). Doesn't matter if it fits in the overhead or under the seat now--it's the weight that they're looking at.

This means that the expensive stuff you've been carrying on to avoid baggage handling goes into the hold anyway, and you'll hope that it arrives unmolested at your destination with you.

It's now official: I am shipping stuff ahead wherever and whenever possible. Can't afford the risk of having my regs, dive computers and camera gear go missing whole or in part.

PPM


Well, hell. The diving industry does NOT need anything else to keep divers from pursuing their hobby!

I think I need to pack my usual carry-on and weigh it, just to see for sure where it's at....I KNOW it's more than 15 lbs! I've only weighed my gear bag being checked, and I know within a pound or two where that bag will weigh in at.
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#6 WreckWench

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Posted 07 January 2011 - 10:31 AM

First off Quantas should know better as they service a diving rich destination however the loss of the only non-cattle boat liveaboard in the area leaving vessels that carry 24 or 36 pax, the continued batterment of the day reefs by thousands of divers and now the inability for a diver to carry more than 15 pounds of camera gear or personal items just strikes another blow towards feasibly running a trip again to this area.

Secondly you can usually argue out of this as we did on Air Pacific and Singapore Air when they were weighing the carry on. We told them we were carrying VERY expensive camera and dive gear and would not check them or put them under the plane under any circumstances and they let us go without add'l charges nor removal of our bags.

Many local carriers are used to large families traveling and carrying all their possessions with them. They are usually more lenient towards tourists. Australia may be different and if so that will only hurt them going forward. I have encountered similar situations on a number of carriers but it has never been a problem even as recently as our Indonesia trip in Nov. Kamala

Contact me directly at Kamala@SingleDivers.com for your private or group travel needs or 864-557-6079 AND don't miss SD's 2018-2021 Trips! ....here! Most are once in a lifetime opportunities...don't miss the chance to go!!
SD LEGACY/OLD/MANUAL Forms & Documents.... here !

Click here TO PAY for Merchandise, Membership, or Travel
"Imitation is the sincerest flattery." - Gandhi
"Imitation is proof that originality is rare." - ScubaHawk
SingleDivers.com...often imitated...never duplicated!

Kamala Shadduck c/o SingleDivers.com LLC
2234 North Federal Hwy, #1010 Boca Raton, FL 33431
formerly...
710 Dive Buddy Lane; Salem, SC 29676
864-557-6079 tel/celfone/office or tollfree fax 888-480-0906




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