When looking into a crystal ball, it helps to have data from hundreds of thousands of users to see trends in the market. Orbitz may not have a crystal ball but does have in-house industry experts who sift through millions of bytes of data that have helped determine three travel trend predictions for 2011.
Booking travel with mobile devices: In 2010, Orbitz announced the Orbitz app for iPhone® and Android™, as well as the next generation of the Orbitz mobile website (http://m.orbitz.com/). “With the rapid acceleration of Smartphone usage, we anticipate strong travel booking growth via mobile devices this year,” said Sam Fulton, SVP of Retailing for Orbitz Worldwide.
Obviously, Orbitz has seen growth in the past year through their mobile applications. This use of smartphones as an adjunct to the computer, or really the computer on the road, is only going to grow. Look for every travel provider to add new smartphone and ipad apps this year.
Comeback of vacation packages: With the expected rise of travel prices due to fuel costs and airline seat availability, Orbitz predicts the comeback of vacation packages as consumers look for scoring the best travel deals. “Booking travel items together, such as flight and hotel or hotel and car, instead of separately will be one of the best ways to save in 2011,” said Jeanenne Tornatore, Senior Travel Editor for Orbitz.com. “Orbitz customers can save up to $465 by booking travel packages because Orbitz has access to discounted hotel and air rates that consumers won’t get if items are purchased separately.”
Some of the biggest bargains in the travel industry come when products are combined. The profit margins from booking airline tickets are small, but they can be leveraged into hotel bookings that have much larger commissions and into rental car arrangements that can bring in more money. Plus, travel agents can combine air, hotel and transfers to offer bargains that are impossible to find when purchased individually.
The Hotspots: Each year consumers want to know where the hot and trendy places to travel will be for the year ahead. In 2011, London and Australia are two hotspots that our team of destination experts predicts will gain popularity and experience a surge of travelers.
1. London: There is expected to be a boost in tourism in April due to the royal wedding, set for April 29th. Orbitz has already seen uplift in the level of demand for the destination in late April.
2. Australia: On her season premiere in September, Oprah announced, “We’re going to Australia!” The destination is sure to be on the radar of travelers due to the increased media attention and a $5 million marketing campaign launched by Tourism Australia to drive consumers to the market. And, with increased airline competition there is a decline in airline prices making travel to the destination more affordable for consumers.
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
