F JWT Travel Changing-Course 04.29.131

TRAVEL
CHANGING COURSE
April 2013
Image credit: Jeanette Kramer
WHAT WELL TABLE OF CONTENTS COVER (contd.)

Executive Summary.................................................................................................................... 3 Peer-Powered Travel................................................................................................................... 4 Hyper-Personalized Travel.......................................................................................................... 17 Millennials on the Road ............................................................................................................. 23 Things to Watch....................................................................................................................... 25 Appendix............................................................................................................................... 31 More About Our Experts/Influencers........................................................................................... 31 Additional Charts.................................................................................................................. 33
A note to readers: To make the report easy to navigate, weve added hyperlinks to this page, so you can jump immediately to the items that most interest you (or, alternatively, you can read the material straight through). This is a report from JWTIntelligence. Go to JWTIntelligence.com to download this and other trend research.
WHAT WELL EXECUTIVE SUMMARY COVER (contd.)

The world is on the move: 2012 saw a record-breaking 1 billion international travelers, according to the U.N. World Tourism Organization. But while international travel continues to grow at a steady pacewith 4% growth worldwide last year and a slightly lower forecast for this yearthe category is in flux. One disruptive force will be the peer-to-peer marketplace. While P2P companies may be expanding the market for travel, services like Airbnb are also putting the squeeze on traditional service providers. For an overview of this new sector, we spotlight 20-plus services focused on P2P hospitality, experiences and transportation. And with the peer-powered economy about to reach critical mass, we look at how established brands can maintain their ground or even find new opportunities. Another macro trend starting to reshape the travel sector is the rise of hyper-personalization: Todays travelers expect highly personalized experiences and customer servicethanks in part to the rise of customization and personalized suggestions onlineand the industry is starting to deliver on this expectation, armed with Big Data and insights gleaned from social media. We look at some ways in which brands are fine-tuning offerings around individual customers, and what this development means for marketers. We also take a look at Millennial travelers, whose adventurous and social approach to travel is already influencing the travel industry in a number of ways. Plus: a wide-ranging rundown of Things to Watch in travel, from Holographic Concierges to Transient Hotels. Note: This report builds on our Rebooting Travel report from 2011, which focuses on the tech-enabled traveler. That report examines how the smartphone is coming to replace guidebooks and maps, serving as a one-stop shop that connects travelers with their surroundings, each other and travel brands; how todays hyper-connected and mobile-enabled vacationers are sharing in real time, which amplifies the experience and enables easy bragging; and how vacationers are increasingly seeking to de-tech, putting aside technology as part of their break from day-to-day life. Find it via the trend reports page at JWTIntelligence.com. Methodology This report is the result of quantitative, qualitative and desk research conducted by JWTIntelligence throughout the year. It includes data from a survey we conducted in the U.S. and the U.K. from Nov. 919, 2012, in which we polled 1,016 adults aged 18-plus (519 Americans and 497 Britons). Data are weighted by age and gender (in some cases, calculation of averages based off reported frequencies may not add up due to this weighting). It also includes input from three experts and influencers in the travel, investment and marketing sectors. EXPERTS AND INFLUENCERS* CHRIS FRALIC, partner, First Round Capital VIPIN GOYAL, co-founder and CEO, SideTour
LISA GANSKY, author, The Mesh: Why the Future of Business Is Sharing, and chief instigator, Mesh Labs
*See Appendix to learn more about these experts and influencers.
PEER-POWERED TRAVEL
As the peer-to-peer marketplace expands in size and scopemoving beyond goods to a wide range of servicesit will increasingly upend the hospitality, tourism and transportation industries.
Image credit: Vladimir Yaitskiy
WHAT WELL COVER PEER-POWERED TRAVEL (contd.)

DRIVERS
Cooperative Consumption: A trend we highlighted in our 2008 forecast, in which we wrote: Thanks to the rise of online social networking, people are sharing just about everything, from carpooling duties to their living rooms. This informal social mediafueled sharing economy has readied us for more formalized peer-to-peer marketplaces. Social media: With 1 billion-plus active users on Facebook, more than 200 million on Twitter, 100 million on Instagram and millions more on Pinterest and others, social media platforms have become a global exchange of ideas, recommendations and more. Increasingly, theyll fuel a P2P marketplace for goods and services. In addition, the one-upmanship that social media encourages is driving travelers to seek out the unique stories and experiences that P2P travel often provides.
The Trust Economy: Before the advent of eBay, Etsy and the like, the idea of staying in a strangers home or CHRIS FRALIC, partner, First Round Capital getting a home-cooked meal from a stranger would likely have seemed far too risky and off-putting. But todays consumers, primed to trust peers for the buying and selling of goods, are more open to engaging peers for services as well. In addition, taking a cue from forerunners like eBay, many P2P services have put mechanisms in place to determine whether participants are trustworthy, qualified, etc., based on a variety of factors (e.g., track record, reviews and social circle). And third-party services such as Repify.com are stepping in to assign unbiased trust ratings. With consumers already warmed up to the idea of doing business with strangers, this increasingly elaborate system FIGURE 1A: of checks and balances is helping them get over the bump. Economics: Given the continued economic uncertainty, people are looking for new ways to save and/or make money. Often, peer-to-peer marketplaces offer cheaper alternatives compared with established services, or at least more bang for the buck. Their business models are often more efficient than traditional ones, as they tend to cut out distribution, real estate and other overhead expenses; find new ways to match supply with demand; and leverage idle assets (e.g., cars not being used, empty rooms, etc.). As a result, many of these upstarts offer quality, appealing services at equally appealing price points. On the flip side, economically strained consumers are drawn to become micro entrepreneurs, as Fast Company put it, finding new sources of income by renting out rooms or cars, sharing their skills, etc. Just over 1 in 5 American and British respondents to a survey we conducted last November said theyve recently used online P2P services to save money; this was more likely for Americans (26%), men (29%) and Millennials (33%). Nearly a quarter of our survey population said they recently found new sources of income by selling a service or skill on a peer-to-peer platform; this was truer for men (28%) and Millennials (39%). (See Figure 1A; for country breakdowns, see Appendix, Figures 1D-E.)
Back in 99, we [at Half.com] were trying to start up an easier way for people to buy and sell used books, music, movies and games to each other. No one thought it would ever work. Whats different now is that there are billions of people online, and theyre organizing and connecting and engaging through social media, and that changes everything. And it unleashes a lot of opportunity and a lot of companies.
P2P engagement
Millennials (18-34)
Percentage of American and British adults who agree

Gen Xers (35-47) Boomers (48-67)
Recently, I have used online peer-to-peer services to save money
33 30 11 39 28 11 40 33 11 54 39 20
22%
Recently, I have found new sources of income by selling a service or skill on a peerto-peer platform Ive learned a new skill or received a service from strangers on peerto-peer platforms I would be the first of my friends to try new things like peer-to-peer services
23%
47
26%
34%

DRIVERS (contd.)
Millennials: Having grown up using social media tools from a young age, these digital natives tend not to question peer-to-peer transactions, nor transactions made online or via mobile. Less brand loyal than past generations, this cohort is more open to disruptive solutions that challenge the status quo. According to our survey, Millennials over-index when it comes to positive attitudes and behaviors tied to the P2P economy. For instance:
FIGURE 1B:
Likelihood of using P2P services

Percentage of American and British adults who would be likely to use the following services if they were available and within their price range
Millennials (18-34) A service that allows you to rent a space (an apartment, a home, a room in a home) A carpooling service that connects you with drivers who have extra space in their cars who can pick you up and get you to your destination Gen Xers (35-47) Boomers (48-67)
46 38 17 39 32 18
31%
While 26% of our American and British adults told us they have
learned a new skill or received a service from strangers via P2P platforms, 40% of Millennials have done so.
28%
While 34% of the general population told us they would be the

first of their friends to try new things like peer-to-peer services, 54% of Millennials said as much. (See Figure 1A; for country breakdowns, see Appendix, Figures 1D-E.)
47
FIGURE 1C:
When asked about their likelihood of using different types

of P2P services (in hospitality, transportation, education and other sectors), Millennials expressed the most openness across categories. (See Figure 1B; for country breakdowns, see Appendix, Figures 1F-G.) Distrust in institutions: Today, people have less faith than ever in big institutions, having seen longstanding financial brands collapse, corporate scandals and bailouts, and a great deal of disillusionment with political leaders. While consumers once regarded established brands as more trustworthy, reliable, highquality and/or safer than the rest, thats no longer a given. As a result, people are becoming just as apt to put their faith in peers and more open to new ideas (about how to get lodging, for instance) versus sticking with the tried and true.
P2P vs. traditional businesses

Percentage of American and British adults who agree
Millennials (18-34) I think its great that people can avoid traditional businesses through peer-to-peer platforms to get things done together Gen Xers (35-47) Boomers (48-67)
68 61 46 52 48 26 59 53 54
56%
I trust individual people offering services on peer-topeer platforms
40%
Id put my trust in an individual over a big corporation any day
47
55%
Fifty-six percent of our American and British survey respondents said they think its great that people can avoid traditional businesses through peer-to-peer platforms to get things done together; 40% said they trust individual people offering services on peer-to-peer platforms; and 55% said theyd put their trust in an individual over a big corporation any day. (See Figure 1C; for country breakdowns, see Appendix, Figures 1H-I.)

DRIVERS (contd.)
Craving authenticity: Doing business with peers often feels like a more authentic experience to consumers. Whether interacting with people of similar ages or with similar passions, or with people one would never normally come across, the world of peer-to-peer commerce offers genuine communal interaction in addition to the commercial transaction. It might take more work to seek out and participate in experiences that feel more authentic, but this is often part of the appeal. Says Vipin Goyal, co-founder and CEO of P2P experience company SideTour: P2P travel is not for people who want to lean back, its a lean-forward experience.
This movement is being driven by an interest in supporting local communities and artisans, and knowing more about the people behind the things we buy. Its a shift away from the mass-market efficiency, ease and low-cost mindset that has dominated the past couple of decades. Life came in a more packaged formeverything from food to your vacation. Increasingly, people want to experience the unique gems [while traveling].
VIPIN GOYAL, co-founder and CEO, SideTour
MANIFESTATIONS
P2P hospitality: Peer-to-peer lodging companies are challenging traditional hotels by offering a wider variety of accommodationsfrom a couch to a room to full homesat generally lower prices. Couchsurfing, initially run as a nonprofit, launched the idea of strangers hosting travelers nearly a decade ago. Today, P2P accommodation services may be making the market for travel bigger, says Chris Fralic, a partner at First Round Capital, a venture capital firm that has made multiple bets on peer-powered companies. [They] may be adding a whole new category that didnt exist before. Some communities are now tapping in to this model to attract visitors. Villagers in Ghalegaun, Nepal, which is coming to be known as the homestay village, spruced up their homes so they could rent out rooms to travelers; the towns unofficial motto: Come as guests, go as friends.
COMPANY
WHEN
Launched in 2011
WHAT
Claims to be the European leader in private short-term rentals, having recently acquired Airbnb rival iStopOver. Connects travelers looking for accommodations with people who have rooms, apartments or homes (and houseboats and treehouses) to rent.
WHERE
Based in Berlin. Listings cover about 100 countries.
HOW MANY
More than 50,000 members and 25,000 places listed as of May 2012. 300,000-plus listings; over 10 million guest nights booked.
NEWS OF NOTE
With iStopOver acquisition, gained a Toronto hub and raised inventory.
Launched in 2008
Based in San Francisco. Listings cover more than 30,000 municipalities in 192 countries.
Growth has zoomed. Airbnb booked 5 million guest nights in the months between late January and June 2012 equivalent to the number it booked in the years between its launch in August 2008 and January 2012.

MANIFESTATIONS (contd.)
P2P hospitality (contd.)
COMPANY
WHEN
Launched in 2011
WHAT
Enables people to rent their backyards as what it calls micro-campsites.
WHERE
Based in the U.K. About half the listings are in the U.K. and half international.
HOW MANY
600-plus listings as of August 2012.
NEWS OF NOTE
Provided muchneeded affordable lodging during the 2012 London Olympics. Still in the promotional stage and not yet collecting fees from hosts. Became a Benefit Corporation in 2011. Raised a $7.6 million round of financing in 2011, and another $15 million in 2012.
Founded in 2004
The Craigslist of travel connects hosts with travelers looking for a free bed or couch. Members can opt in to an identity-verification service, and doing so leads to higher placement in the sites search results. In addition, members are asked to leave references on each other after any kind of in-person meeting, and a vouching feature allows members to publicly declare trust in each other. Marketplace for vacation home rentals, connecting travelers with homeowners and property management companies.
Based in San Francisco. Listings cover 200-plus countries.
More than 5 million members.
Founded in 2005
Based in Austin, Texas. Listings in 171 countries.
700,000-plus homes listed.
Recently formed a partnership with Travelmob, a leading P2P lodging site in the Asia Pacific region. A partnership between gay travel sites mygaytrip.com and sejourning.com. Connects property renters with local businesses that offer relevant services, such as culinary tours or a maid service. After merging with Lofty in 2012, received $2.1 million in funding.
Founded in 2013
A gay-friendly version of Airbnb, for hosts who are gay or welcoming of gay visitors.
NA
NA
Founded in 2009
Caters to mid- to high-end business travelers looking for alternatives to traditional hotels. Properties are professionally managed.
Has offices in Singapore, New York and the Philippines. Listings in 3,600 locations.
60,000 listings.

P2P hospitality (contd.)
COMPANY
WHEN
Founded in 2011
WHAT
An Airbnb imitator and one of the largest European players in this space.
WHERE
Based in Berlin. Listings cover 100 countries.
HOW MANY
100,000 registered users. 150,000 accommodations listed.
NEWS OF NOTE
Raised $90 million in venture capital funding in 2011. During the first three months of 2012, Wimdus global revenue quadrupled, to more than 5 million per month.
P2P experiences: A crop of startups promise travelers a locals-eye-view of a city or an otherwise unique experience. Says Gidsy: Our goal is to make it as easy as possible for you to find stuff to do, whether you are looking for a private guide to show you around local art spaces or take you mushroom picking in the forest. The success of these services is driving some P2P lodging companies to provide their own offerings. Onefinestay, which focuses on high-end properties, provides an iPhone filled with the homeowners local recommendations. Plus One Berlin is a loft rental that comes with a network of 35 locals ready to meet guests and show them around Berlin or simply meet for a conversation.
Theres a lot of people who think, Im going to New York, Im an art lover, Im going to visit the Met or the MoMA. You can walk in yourself; you can hire a docent to take you through it. Or you could go to SideTour and have a New York artist who has spent the last 30 years exploring the Met walk you through the museum from his perspective, through his aesthetic lens. It just changes the nature of the experience.
VIPIN GOYAL, co-founder and CEO, SideTour
COMPANY
WHEN
Founded in 2011
WHAT
Focuses on experiences offered by real people, who are encouraged to monetize their expertise for a reasonable fee and advertise their activities through social networks. Offerings have included a hot-air balloon ride over Luxor and a workshop on creating upcycled accessories. Takes a 10% cut from each organizer.
WHERE
Based in Berlin. In August 2012, expanded from 13 cities (including New York, Berlin and Amsterdam) to a global presence.
HOW MANY
NA
NEWS OF NOTE
Received a $1.2 million investment in early 2012 from venture capital firms and Ashton Kutcher.

P2P experiences (contd.)
COMPANY
WHEN
Founded in 2010
WHAT
Relies on a network of Soul Mates to advise travelers on the best places to visit, eat, drink, etc. After travelers select a Soul Mate, based on who seems most compatible with their tastes, they receive a physical guidebook filled with customized recommendations. Founded by a Japan-born entrepreneur (the name means to be a guide in Japanese), Shiroube connects anyone interested in acting as a travel guide with travelers looking for personalized tours. Promises amazing experiences that cant be found anywhere else: e.g., hire a former CIA disguise technician for a crash course in creating disguises or sit in on a professional break dancing practice session. Hosts set their own prices, and SideTour takes a 20% cut.
WHERE
Based in Austria. Operates in 11 cities, including New York, Barcelona, Zurich, Paris and Tel Aviv.
HOW MANY
NA
NEWS OF NOTE
NA
Launched in 2011
Based in Paris and Tokyo. Operates in more than 3,000 international cities.
NA
Shiroube is self-funded by its co-founders.
Founded in 2011
Based in New York; operates in New York, Washington, D.C., Chicago and Philadelphia.
NA
Was part of the summer 2011 TechStars startup accelerator program. Has received $1.5 million in venture capital funding.
Launched in 2011
Offers offbeat experiences around the world: e.g., members have booked stays on Alcatraz Island in San Francisco and tours of the citys Tenderloin neighborhood guided by a homeless man; a fishing trip in Fiji with a local king; and a cupcake crawl in Washington, D.C. Takes a 3% fee from the traveler and a 15% fee from the tour guide.
Based in San Francisco.
Offers 2,500plus travel experiences to users in 600 cities.
Was a summer 2012 participant in the Y Combinator business incubator program. Reports revenue growth of 30% a week since May 2012.
10

P2P transportation: Shared transport covers everything from cars to boats and planes. In some cases companies are focused on filling empty seats (in cars, on planes), while in other cases the vehicle or boat itself is shared. While some ride-share-service drivers are professionals, many are simply seeking to earn extra cash, help the environment or meet new people.
COMPANY
WHEN
Launched as a side project under a different name in 2006. First employee hired in 2009. Launching in 2013
WHAT
A people-powered transport network that matches paying passengers with seats in cars; pitched as a new, affordable way to tour Europe. Members can post how social they want to be, from Bla to BlaBla to BlaBlaBla. One of several boat-sharing P2P services, Boatbound is accepting requests for early invitations. Differentiates itself by offering $1 million in Lloyds insurance coverage. Says the average boat owner uses the vessel only 14 days a year.
WHERE
Based in Paris. Operates in nine European countries.
HOW MANY
2.8 million members, with 800,000-plus drivers. Around 550,000 passengers travel each month.
NEWS OF NOTE
NA
NA
NA
Founder Aaron Hall hired Airbnbs first employee, Nick Grandy, as an adviser. Aims to change perceptions of boating as a rich white mans sport by borrowing quirky ideas from carsharing services such as Lyft. Founded by former Harvard, Princeton and MIT students.
Launched in 2013
Allows travelers who leave a vehicle at airport parking to rent it to incoming travelers. Renters are screened, and all cars insured up to $1 million.
Based in San Mateo, Calif., with cars available at San Francisco International Airport. Based in San Francisco. Operates in the Bay Area, San Diego, Austin, Portland, Ore., and Chicago.
NA
Launched in 2011
A P2P version of Zipcar. Members can rent other members cars via iPhone or the Web. For iPhone users, the car doors automatically unlock when the designated phone is near the car (a device is installed in vehicles for this purpose). Those who rent via the Web must meet the owner to get the keys. The cars are also insured. Getaround claims the average car sits idle 22 hours per day.
More than 10,000 cars available for rent as of August 2012.
Raised $13.9 million in additional financing in August 2012. Yahoo president and CEO Marissa Mayer is an investor.
11

P2P transportation (contd.)
COMPANY
WHEN
Launched in 2013
WHAT
Connects flyers with private jet owners, operators and charters looking to fill unused seats. In contrast to other jet-sharing networks, does not charge a membership fee. People looking to join are vetted by customer service reps and checked against Homeland Securitys No Fly List. A P2P ride-sharing service whose business model is similar to SideCars (see below). Accepts donations (average amount: $10) rather than fares from riders; takes a 20% fee from these donations. Cars are decorated with giant mustaches when on Lyft duty.
WHERE
Based in Massachusetts.
HOW MANY
NA
NEWS OF NOTE
Founded by Justin Sullivan, who has experience in the charter flight business through his service Private Flite. Plans to launch an iPhone app soon, followed by an Android app.
Launched in 2012
Based in San Francisco. Operates in San Francisco, Los Angeles and Seattle. Aims to expand internationally.
As of October 2012, four months after launch, 250plus drivers were providing hundreds of rides a day.
Parent company Zimride raised $7.5 million from venture funds. After a feud with the California Public Utilities Commission, Lyft reached an interim agreement that enables its continued legal operation and set a precedent for upcoming legislation. Raised $10 million in Series A financing from Google Ventures and Lightspeed Venture Partners. Has faced regulatory disputes in California and Texas, yet continues to expand to new cities. Went offline for a few months in early 2013 when the founders decided to explore other interests. In April, one of the seed funders, Brazilian entrepreneur Marcelo Loureiro, took over with plans to revamp the service, making it more social, and to build a mobile app.
Launched in 2012
This community-based, real-time ridesharing marketplace relies on a mobile app to match people seeking rides with those who have extra space in their cars. Performs background checks on drivers and says drivers have decent cars.
Based in San Francisco and operates in nine U.S. cities.
500 drivers in San Francisco.
Founded in 2011
Spinlister, which briefly changed its name to Liquid, connects riders with bikes for rent, whether from individuals or existing bike rental shops. Members can post photos of their bikes and offer them for rent or seek spare wheels.
Launched in San Francisco and New York, and recently rolled out around the U.S. Aims to expand internationally.
500-plus bikes available for rent.
12

P2P social connections: Websites like Meetup.com have established the idea of using online tools to connect like-minded people in real life. Now, a niche set of travelers is using P2P apps, sites and services to make connections on the go. KLM made news in late 2011 with Meet & Seat, a program that enables customers of the Dutch airline to check out the social media profiles of other opted-in passengers and select a seatmate they find interesting, attractive or good for networking. As of November 2012, about 10,000 flyers had used the service, per a company spokesman.
COMPANY
WHEN
Launched in 2010
WHAT
Helps users find travel partners for long-haul or adventure trips. Travelers list trip details and rank the excursion on a 1-5 scale in terms of difficulty, culture shock, remoteness and risk. Enables women traveling alone to meet other women (travelers or locals) for dinner so they dont have to venture into restaurants alone.
WHERE
Based near Sydney.
HOW MANY
3,000-plus usercreated trips are listed (many of which have been completed).
NEWS OF NOTE
NA
Launched in 2012
Based in Gloucestershire, England.
NA
NA
Launched in 2011
Designed for users to share a drink with an attractive stranger in the totally safe environment of a public airport. Member profiles resemble dating-site profiles, but the site says members might also meet for companionship or simply to pass the time. Similar to KLMs Meet & Seat: Lets flyers upload itineraries via TripIt, then connects users to people within their Facebook or LinkedIn networks who are on the same flights.
Based in Miami.
60,000 members as of March 2013.
NA
Founded in 2011
Based in Copenhagen.
More than 1,500 meet-ups as of May 2012.
NA
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WHAT IT MEANS
A culmination of a number of developments weve spotlighted in our Things to Watch over the yearsfrom Couchsurfing in 2008 to Crowdfunding in 2009 to Micro-Businesses like Airbnb in 2011 to P2P Experiences in 2012the peer-powered economy is about to reach critical mass. Forbes estimates the share economy will generate $3.5 billion in revenue in 2013. As P2P companies begin to disrupt major industries, many established players will turn to existing laws and regulations to limit their growth. But there are alternative (or parallel) paths that big brands can take that are less knee-jerk and more forward-thinking. For one, they can use the emergence of this new competitive set as an opportunity to rethink how they operate or position their B2C businesses in this growing P2P economy. And they can examine what kinds of new behaviors and expectations the P2P model is creating among consumers and start delivering against those. History suggests that fighting peer-to-peer models is a flawed approach. Look no further than the music industry: A decade-long war on music-sharing sites mounted by the Recording Industry Association of Americain which the industry lobbying group sued college students and teenage infringersonly helped turn music fans against the industry, and P2P music sites thrived. The silver lining for some brands is that P2P services may help to grow a market: Venture capitalist Chris Fralic notes that Airbnb may be widening the market for travel, with its cheaper, more varied accommodations. Getting more people passionate about travel is ultimately good for many businesses. Plus, as SideTours Vipin Goyal points out, the P2P element in itself is not whats drawing customers, who dont make the distinction, but rather its the nature of the experience and the quality of the experience that matters. Consumers are looking for something more interesting and more uniqueand any company that can meet this challenge will gain an edge. Embrace the P2P era: Rather than fear or fight the encroachment of this new competition, established brands can embrace this development in a variety of ways. Perhaps the easiest is to partner with peer-powered businesses in the same or related categories. Travel guide publisher Lonely Planet, for instance, partnered with Airbnb to create dual discount offers. Taking it one step further, brands can add a P2P element to their business or launch a business line that addresses a newly created demand or challenge to their industry. For instance, hotels could partner with P2P experience or dining companies to offer guests unique activities or meals. To make the most of underutilized space, Marriott is partnering with LiquidSpace, a P2P work space-sharing platform, offering conference rooms as well as public spaces in select properties around the U.S. In partnering with these upstarts or launching their own version of a P2P service, established brands can infuse freshness or modernity into their persona, broaden their appeal and/or get an existing consumer segment to look at them in an interesting new light. Initiatives such as this also provide the opportunity to learn more about the audience, inner workings, and strengths and weaknesses of P2P enterprises.
Image credit: Marriott
14

WHAT IT MEANS (contd.)
Take inspiration from the P2P model: Whether or not brands partner with P2P services or add P2P elements, the P2P model can suggest new, more innovative approaches: Are there ways to take inspiration from the things consumers like most about P2P services? And are there ways to leverage digital technologies designed to match supply with demand, consumers rising trust of strangers and proclivity for sharing, micro-entrepreneurs and so forth in order to better cater to consumers or market existing services? For instance, P2P companies thrive on utilizing idle assets, a supply (of cars, rooms, downtime, etc.) that can be activated at a low marginal cost and generate significant marginal revenue. Traditional businesses can employ P2P technology to optimize existing capacity and become more efficient. P2P services also strip out the middlemen and/or various overhead costs, often providing more for less. So traditional businesses will need to find ways to either do likewise or provide lower-cost options that do away with some amenities or restrict the offering in some way. Many businesses are built around models formulated in a pre-digital era when consumers had very different mindsetsmodels that will need to be tweaked, if not shaken up altogether. The success of Airbnb, for example, just shows that the way we thought of and built and booked and ran hotels has to change, says venture capitalist Chris Fralic. Whether its a good thing or a bad thing, its so hard to tell. Build in more authentic experiences: One of the strengths of the P2P economy lies in its ability to deliver authenticity, local flavor and idiosyncrasyattributes that appeal to a growing subset of consumers, especially Millennials, who seek out one-of-a-kind, share-worthy experiences and shy away from anything that comes across as prepackaged, cookie-cutter or too standardized. Big brands need to look for unique ways to Airbnb and similar services allow for their build these attributes into their services, without it feeling own native experiences, where youre in forced or too inauthentic.
the fabric of the city in a way that youre not when youre in a hotel. Its kind of like the difference between taking a plane and taking a train: The train brings you right into the heart of the city, and the plane puts you into the ugliest part of the city, just because they had to put an airport there.
Hotels have been experimenting with ways to do this. For its properties in Asia and the Middle East, in 2012 Mvenpick Hotels & Resorts announced a Local Flair Getaway concept, which connects travellers with unique local experiences that are light years away from traditional tourist attractions. Examples cited include an Arabic cooking experience or visiting a local vineyard in Jordan. And in February 2012, Hilton Worldwide LISA GANSKY, author, The Mesh: Why the Future of Business Is Sharing announced that Authentically Local packages in the Caribbean and Latin America would be available through the end of the year; in addition to various experiences, Hilton provided a language immersion pin for guests who wanted employees to speak to them in the local tongue. Facilitate the impulse to connect and share: Consumers increasingly are open to trading goods and services with strangers, from lodging to meals. Brands will need to tailor their selling strategies to accommodate this high-tech bartering culture. Hall St., for instance, enables hotel guests to trade reservations, bypassing the hotel itself in the process (Hall St. takes care of the changes). Hotel brands could re-insert themselves into the process and facilitate behaviors that are already taking place, potentially winning brand loyalty.
Image credit: Hall St.
15

Millennials will drive adoption, but dont overlook their elders: As our survey showed, Millennials are most open to and enthusiastic about the P2P marketplace. But the market will draw in consumers across all segments. Some may be driven by the affordability, others by the novelty aspect, others by practical concerns. In imagining beyond the P2P early-adopter crowd, brands (both P2P and B2C) can find untapped opportunities. Play to your strengths: For all their appeal, P2P markets have their inherent weaknesses, including inconsistent service or quality, cloudy value propositions and the need to deal with strangers, an issue that will continue to discomfort a significant segment of consumers. Beyond the matter of trust, some people will inevitably feel awkward doing business with peers: Theres always tension between the person who is the employer and the person who is the employee that could turn users off, noted Altimeter Group analyst Susan Etlinger in The New York Times, talking about P2P services. Established brands can leverage these negatives by emphasizing that working with a more traditional, trusted business can be easier, more convenient, less awkward and even more affordable than choosing a peer-provided service.
THOUGHT STARTERS
Are there benefits to partnering with P2P hospitality
platforms such as Airbnb?
Can you incorporate P2P technology into your model, as

either an alternative or add-on to your current business?
Is there a service you can launch that addresses needs

currently being fulfilled by P2P challengers in travel?
Is there a consumer who would benefit from a P2P

service but is currently being overlooked by the market?
Are there ways to take inspiration from the things

consumers like most about P2P travel services?
What strengths can you play up to differentiate your B2C

brand in a positive way? If P2P companies are directly challenging your business, what can you offer that is not available or guaranteed through these new channels? Can you highlight existing offerings that help distinguish your business from P2P services?
Since some consumers buy into P2P services for their

local flavor and authenticity, how can you play up those attributes in your brand experience?
16
HYPER-PERSONALIZED TRAVEL
Consumers are coming to expect highly personalized services, and the travel industry is starting to respond by fine-tuning offerings around individual customers.
Image credit: Porto Bay Trade
17
WHAT WELL COVER (contd.) HYPER-PERSONALIZED TRAVEL

DRIVERS
Predictive Personalization: One of our 10 Trends for 2013, this is the idea that brands of all stripes will increasingly be able to predict customer behavior, needs or wantsand tailor offers and communications very precisely. Companies will leverage the massive amount of data now available to them, from sources including app usage, loyalty cards, Web-browsing trails and especially social media. Analysts are beginning to tackle unstructured data streamsFacebook posts, videos, etc. adding ever more information about the habits and preferences of consumers. Organizations can now explore questions that were previously too costly, urgent or complicated to extract from patterns within large data streams. They are learning a great deal more about consumers than was ever possible through traditional market research and focus groups. Consumers living publicly: Todays wealth of social media postings result not only in massive quantities of data that companies can analyze but a quality of personal data that was unthinkable just a decade ago. Many consumers have grown accustomed to living their lives publicly, readily sharing likes or aversions, favorite activities and personal photos with increasingly broad circles. Information like thissay, a passion for chocolate or a regular yoga habitenables hotels to easily cater to guests desires. Me-centric consumers: With information at their fingertips and an array of social media platforms where they can broadcast complaints, todays consumers are at the center of their worldthey call the shots, and their expectations are sky-high. Consumers have grown accustomed to customization: seeing personalized suggestions on Netflix, hearing the music they like on Pandora. To some extent, this expectation has long existed in the travel category e.g., hotel loyalty program members might expect to be automatically provided with their customary pillow choice but its rapidly expanding and heightening.
For hotel companies, social media has essentially become a sanctioned form of eavesdropping. ... In todays socialmediated paradigm, wherein everyone lives in public, all guests can be treated like celebrities.
What Your Hotel Knows About You, Travel + Leisure, February 2013
Impatience with Web tools: It seemed that the Web would make travel planning easier, but many of todays travelers have grown weary of scrolling through dozens of user reviews, consulting myriad sources for suggestions and otherwise seeing time slip away as they research what to do and where to go next. Travel category gets tougher: Travel industry companies are being forced to fight harder for customer loyalty because theyre working against several enduring challenges, notably the ongoing post-recession battle to get consumers spending, the rising price of commodities such as oil, far more empowered consumers and stiffer competition (projects that were on hold during the height of the recession have reached completion, and travel inventory is high and rising). Companies shift from reactive to proactive information gathering: Increasingly, even first-time customers will be known entities as travel companies shift from reactive information gathering (guest preference forms, noting guests comments to hotel staff) to proactively researching customers before they arrive. Notes a recent Travel + Leisure article, Prying is the new pampering.
Image credit: Jonno Witts
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MANIFESTATIONS
Hyper-personalized customer service/interaction: Whether through basic research via Google and Facebook or via sophisticated data mining software, travel brands are going the extra mile to cater to customers on an individual basis.
British Airways, Know Me:

British Airways spent several years gathering passenger data from many sources into one database before launching its personalizedservice program aimed at VIP and frequent fliers in 2012. As examples, crew might pay extra attention to a first-time businessclass customer (demonstrating how to use the seat, for instance) or fuss over a frequent business traveler who is on a personal trip. BA conducts Google image searches of these VIPs, enabling airport ground staff and flight attendants to readily spot them (a move that stirred some controversy). Since 2011, staff have been equipped with iPads so they can easily log and share new customer data, allowing for hyper-personalized service from start to finish.
We put this program together so we can demonstrate to frequent customers that we do know them and can anticipate their needs and deliver the service they expect.
SIMON TALLING-SMITH, EVP of the Americas, British Airways, British Airways gets more personal, USA Today, July 8, 2012
Disneys MyMagic+: The Walt Disney

World Resort in Orlando is rolling out MagicBands, wristbands equipped with RFID chips. Guests using the wristbands will be able to personalize their experience by first inputting their information into a website or app. Then, for instance, Cinderella might say to a child, Hi, Angie. I hear its your birthday. And as guests queue up for the new Little Mermaid ride, a robotic Scuttle, the seagull character, may chat directly with MagicBand wearers. The wristbands will also enable ride reservations, payments and act as keys for guests staying at Disney hotels. The program is part of a costly effort to make visiting Disney parks less daunting and more amenable to modern consumer behavior, according to The New York Times.
Fine-tuned dining: With the help of software and Internet companies such as OpenTable
and Urbanspoon, restaurants are logging detailed data on customer preferenceseverything from food allergies to an affinity for crushed or cubed ice. Patrons can then have their needs catered to without having to ask; diners may even visit a restaurant for the first time yet be treated like a regular, since establishments under the same ownership generally share data.
Image credits: British Airways; Disney; Urbanspoon
19

Luxury hotels researching every guest like a VIP: Its long been an open secret in luxury travel that hotels research VIP
guests online to help staff recognize them and to use relevant personal details to create opportunities to surprise and delight, as high-end hoteliers are fond of saying. For instance, staff at Accor hotel properties (which include Sofitel and Novotel hotels) check public social media profiles of loyalty club members before they arrive, then present customized gifts when they check in, such as a behind-the-scenes tour of Tru in Chicago for a foodie guest or VIP hockey tickets for a sports fan. Increasingly, luxury hotels are performing such research on every guestand bragging to the media about it. Some examples from a February 2013 Travel + Leisure article: - Online research revealed that a guest at a high-end Beverly Hills hotel had a dog named Bo. When she arrived, she found a doggy gift and note reading Bo misses you in her room. - One&Only Resorts looks at guests Twitter feeds, work-related sites and blogs to compile detailed profiles with photos for managers to review. Similarly, St. Regis Bora Bora Googles every guest two weeks before arrival and writes up a short profile thats shared with department heads at their next-day arrivals meetings. - When restaurateur Danny Meyer stayed at the Little Nell in Aspen, hotel staff found a photo of his family online, then printed and framed it, and placed it in his room on Fathers Day. It was about customizationone-size-fits-one. Thats true hospitality, he told Travel + Leisure.
Libra OnDemand: This company provides customer relationship

management for hospitality companies, trawling social media data to create a complete 360-degree view of each customer. This service provides hotels with intuitive information for all clients, not just the VIPs previously profiled via manual searches. High-end hotels like the Surrey in New York and the Viceroy Group have adopted the service, as well as convention hotels and even Red Roof Inns and Holiday Innsno longer is this practice the exclusive province of luxury properties with high staff-to-guest ratios. Personalized itineraries: Trip planning, once the primary domain of travel agents, has become arduous for travelers, who find themselves sorting through myriad recommendations across different sites, some even creating spreadsheets to manage it all. A number of companies are focused on helping travelers create itineraries tailored to their interests by aggregating data from a pool of varied sources.
Citybot: Citybot collects data from various travel

review sites, such as TripAdvisor, Lonely Planet and Yelp, and factors in Facebook likes and Instagram streams to build itineraries. Users can choose from existing itineraries or create their own by employing filters such as trip start time, start and end points, means of transportation and desired activities (museums or outdoor, for instance). Its available for Austin, San Diego and San Francisco, and New Orleans is in the works.
Image credits: Libra OnDemand; Citybot
20

Utrip: Focused on the European market, Utrip allows users to select the duration of their trip and a trip profile (The
Student, The Luxury Traveler, etc.), and indicate the importance of 13 types of activities on a scale from most to least important; Utrip then builds a day-by-day travel guide.
Ness: A convenient tool for travelers and locals alike, this iPhone app
serves up personalized recommendations for nearby restaurants after trolling through social data from sites such as Facebook, Twitter and Foursquare. As TechCrunch explains, Thanks to its data-driven technology, the app serves results on restaurants that you would probably like (based on social signals and your input), as well as provides an element of serendipity with personalized results.
WHAT IT MEANS
Todays traveler, accustomed to a hyper-personalized digital experience, is coming to expect the same in real life and during their travels. While some brands have been hyper-personalizing service for the most loyal customers for a while, the advent of Big Data tools will help enable this to a far more extensive degree. While Big Data has the potential to transform all industries, some analysts believe the travel sector could feel the greatest impact, and sooner than others. Travel companies are already armed with an array of data about their users, from VIP and loyalty programs. Yet many travel brands are just starting to put this information to good use. Given the rise of the me-centric traveler, companies will need to connect all the dots to create individualized experiences. The challenge will be to identify not only broad patterns of behavior but individual ones as well. Once armed with these insights, marketers can then tailor offers, messaging, customer service and more. Savvy brands will be able to address needs as they arise, perhaps even before travelers seek solutions. This brings an unprecedented level of personal service and attention to travelers, something they increasingly expectbut theres a line beyond which most will feel spooked. Marketers will need to assuage privacy concerns and show how their use of data benefits the consumer. Make transactions more personal: As more of our world becomes digitized, anonymous, automated and virtual, consumers are craving a more human touch. For the travel sector, it will be a matter of balancing technology-based solutions that help save time when it comes to checkout, ordering, ticketing and the like with the hands-on service that make guests feel pampered and catered to. Paradoxically, consumers are more apt to find this onlinewith personalized suggestions on sites such as Netflix and Amazonthan in the real world. Most travelers get the same generic experience as everyone else, even members of loyalty programs. By amalgamating various data streams, travel brands can start offering the tailored recommendations and attention that consumers take for granted online. Using data to build consumer profiles can take the anonymity out of interactions with a brand, improving customer service. New tool sets will help marketers expand personalized treatment beyond loyal customers of one locale or brandas were seeing with restaurants under common ownership that pool data to offer tailored dining experiences.
Image credits: Utrip; Ness
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Tread carefully around privacy concerns: While travelers will come to expect more individualized attentionespecially the youngest cohort, who already consider personalization the normthey will nonetheless take some time to adjust to the idea that marketers know a great deal about their lives and can predict their needs. After British Airways announced its Know Me program, for instance, a slew of consumer critics called it an invasion of privacy, objecting especially to the companys hunting for online information about users. In our November survey of American and British consumers, around two-thirds of respondents said the idea of customized offerings gleaned through data collection feels like Big Brother is watching, and that the idea of companies predicting their needs or customizing offers based on personal habits and preferences is anxiety-provoking. (See Figure 2A; for country breakdowns, see Appendix, Figures 2B-C.) Millennials, who are coming of age in an era of open sharing, are least likely to feel anxious or violated by the idea of having their data tracked. Wary of the idea that their actions are being tracked and analyzed, some consumers have started demanding the right to be ignored (not to have their data tracked at all), the right to be forgotten (after their data has been collected) and the right to know how their information is being used. Meanwhile, governments are enacting tighter controls. And as the privacy and transparency debate heats up, some of the tech giants are ramping up their self-regulation. Transparency will become increasingly important for companies that leverage consumer data. They will need to explain what digital data they collect and why, then assure consumers theyre to be trusted with the information.
FIGURE 2A:
Attitudes toward personal data collection

Percentage of American and British adults who agree with the following after learning that, through data analysis, companies can predict what theyll want or need and create customized offers for them as individuals
Millennials (18-34) Gen Xers (35-47) Boomers (48-67)
It feels like Big Brother is watching me
57 67 69 58 67 65 48
65%
The idea of being tracked and analyzed makes me anxious
64%
This makes me feel violated
54 50 62
51%
I think this will help simplify my life
51 37 70
48%
Its OK with me as long as I save money
71 56 74 68 50
64%
Its OK with me as long as I get relevant offers
62%
THOUGHT STARTERS
How can you use public information about your
customers to create hyper-personalized experiences?
Are there ways to better personalize the online

experience?
How can you earn travelers trust so they are open

to opting in to loyalty programs and other means of collecting behavioral data?
What are some unique ways your brand can put data
to use to make the offline experience better for your guests?
22
WHAT WELL COVER MILLENNIALS ON THE (contd.) ROAD
Millennial travelers, who have grown up in a globally connected world, are eager to explore the globe. Known for their boundless optimism, todays 18- to 34-year-olds are exceptionally open to new adventures and unique, immersive experiences, including those that may challenge their often-limited budgets. They view hotels and restaurants as social destinations, places to meet new people and partners. Millennials look for personalized travel options, especially those enabled by technology, which allow them to find deals, make fast travel decisions with a short planning cycle and share the results in real time via social media. While many cant afford as much leisure travel as theyd like, Millennials display remarkable ingenuity in getting what they want by using online deal sites, recommendations from social networks, travel apps and crowdsourced review sites. Amenities-laden hotels, at a value price, appeal to their idea of enjoying the best of everythingpreferably tailored to their preferences. They assess their experiences with an especially critical eye, ready to share opinions with social networks and review sites. When these travelers have a complaint, theyre more apt to post it on Twitter before, or instead of, telling the hotel manager. (Starwood Hotels and Resorts Worldwide, among others, now employs a team of people to monitor and post responses to such criticisms.) In turn, they look to social networks and review sites for guidance. More than 57% of Internet users aged 18 to 34 are motivated to purchase travel by their friends and followers recommendations, according to eMarketer.
Internet users aged 18 to 34 are motivated to purchase travel by their friends and followers recommendations
6 IN 10
Close to
Millennials dont travel as much for business as older travelers, but they will represent about 50% of spending on business flights by 2020, according to The Boston Consulting Group. When flying for business, Millennials want to be comfortable and connected, enabling them to be productive or entertained while en route. They also put a premium on being in control and are 60% more likely to upgrade airplane seats for more legroom and much more inclined to pay for in-flight entertainment than other groups, BCG reports. As a result, Millennial business flyers typically pay 13% more than average per ticket.
Image credit: Lauren Manning
23
WHAT WELL COVER MILLENNIALS ON THE (contd.) ROAD

The decision-making process: Innovation is a big draw for young travelers, and that begins with deciding where, when and how to travel. Not surprisingly, Millennials are more apt than older generations to use mobile apps to make travel arrangements, according to BCG. They are also more likely to use online travel agents and aggregator sites to plug into Travelzoo, Kayak, TripAdvisor, Expedia and traditional carrier websites. These tools help them book travel on their own terms, in a way that fits seamlessly into their schedules. Millennials rely more heavily on user comments and online content when booking travel than older counterparts. Bad reviews from friends can quickly come to light thanks to the social graph laid across the Web, and this virtually guarantees Millennials will look elsewhere. Millennials also have a stronger tendency to plan leisure travel in groups, with friends or family. What Millennials are looking for: All-inclusive package deals that provide an upscale experience without leaving travelers feeling nickel-and-dimed for every little extra speak to Millennials sense of value and fairness. An offbeat place to stay found on Airbnb or unusual activities booked through P2P services like Vayable appeal to Millennials desire to avoid impersonal service and the standard experience. The story of the unusual trip is a prize unto itself. Travel brands that are addressing their needs: Brands are starting to provide ever more options, catering to the Millennial desire for a more customized experience. Going beyond the now-established idea of a pillow menu, Hilton Worldwides luxury Conrad chain now offers three different brands of toiletries and lets guests choose which they prefer. Guests at the Hyatt Century City in Los Angeles can select their own flowers from a cart in the lobby to brighten their room. Evidence of Millennials power in the travel marketplace lies in the growing number of new concepts being marketed specifically to younger travelers. New hotel brands such as Moxy, a partnership between Marriott and Ikea, and Starwoods trendsetting hotel chain Aloft offer style and a scene at an affordable price. W Hotels W Happenings concert and event series is a way for the luxury chain to become a social destination as much as a place to stay, encouraging single travelers to book a hotel room instead of bunking with local friends or family. Capitalizing on young travelers retro-cool tastes, Virgin Atlantic has introduced freshly prepared, premium mixed drinks on the ground, at its premier Clubhouse at Londons Heathrow Airport, and in the air, where the in-flight bar is bedecked with Swarovski crystals. Other airlines concocting hip cocktails include British Airways, Cathay Pacific and Singapore Airlines.
Image credits: TripAdvisor; Conrad Hotels; Moxy Hotels; Virgin Atlantic
24
WHAT WELL THINGS TO WATCH COVER
(contd.)
Over the following pages, these 20-plus Things to Watch offer a quick rundown of a wide range of developments in travel, from innovative tech tools and services to new categories of hotels to the next hot vacation theme. Airports As Destinations With longer waits for security checks and more flight delays, travelers are spending more time in airports, and airports are providing money-generating ways to spend that time. USA Today reports that Vancouver is planning a 400,000-square-foot luxury outlet mall for its airport, while Dallas/Fort Worth Internationals Terminal A just expanded its retail and concession space by 50%. Hong Kongs airport now has an IMAX movie theater. Dusseldorf International Airport, popular with business travelers, includes a pharmacy, dentist, hairdresser and postal services at the info desk. More than a dozen North American airports now offer spa services. Los Angeles International Airport has restaurants run by celebrity chef Masaharu Morimoto as well as a golf course next door that stays open until 10 p.m. And last year, Ikea installed a temporary familyfriendly lounge in Frances Roissy-Charles de Gaulle Airport with comfy sofas and even beds to nap on. BYOD (Bring Your Own Device) With the mobile device now an Everything Hub and content accessible through the cloud, businesses must adapt to BYOD culture. Airlines including Virgin America, American Airlines and Lufthansa are offering audio and video via Wi-Fi for those who eschew the seat-back screen in favor of their own. Likewise, some hotels are enabling guests to watch pay-per-view movies on their own devices as well as the rooms TV; network bandwidth that can handle guests streaming video is becoming increasingly important. Cheap Chic Hotels and Hostels Hotel chains are taking a page from Ikea, Target and H&M and delivering contemporary design at a cost-sensitive price. Starwoods Aloft hotels helped define the trend with open, club-like lobbies that feature lighting changes throughout the day, free bottled water and fast Wi-Fi. At citizenM hotels in Amsterdam, Glasgow and London, guests check in at self-serve kiosks, which saves on front-desk staff, engaging the wandering ambassador if they have problems. The Superbude hotel-hostel in Hamburg incorporates reused materials in its rooms, such as wallpaper made from newspapers and beer crates as stools. Ian Schragers no frills Public hotels are furnished with replicas and flea-market finds. Hostels are getting hip too: Grupo Habitas Downtown Beds in Mexico City combines communal rooms with en suite rain showers, according to The New York Times, and Kex hostel in Reykjavik features an old-fashioned barbershop, gastropub, and an event space for concerts, open mic nights, comedy routines and other lively happenings as the hostels site explains. Conscious-Luxe Eco-hotel once suggested huts on the beach in Costa Rica with no running water or electricity. Now guests might stay at an eco-hotel without knowing it. Take the LEED Platinum-certified Leela Palace hotel in New Delhibuilt at a reported cost of nearly $400 million and fit for a maharajaor the upcoming Singita Mara River Tented Camp in Tanzania, built largely of natural and recycled materials and completely off the grid, yet is complete with a swimming pool, other amenities and a customdesigned solar system for power. Meanwhile, more hotels and tour operators are doubling down on philanthropy, making a serious effort to support local communities and focus on the triple bottom line.
Image credits: Ikea; Virgin America; citizenM
25
(contd.)
Digital-Into-Physical Postcards Various services allow vacationers and others to turn digital snapshots into snail-mailed postcards. Tools like Sincerelys Postagram app and Postcard on the Run (Technology delivered the old-fashioned way) satisfy todays rising appreciation for physical objects and slower forms of communication. The Documentary Traveler As more travelers chart their trips on social sites, travel companies are starting to make tweeting, Instagramming and posting easier and more automatic. Sydneys Luna Park was a forerunner, launching My Experience in 2011. Visitors who buy an Unlimited Rides Pass receive wristbandswhich they register online using a smartphone or computerthat they scan at ride exits to launch a Facebook status update (choosing from several options) or use to post ride photographs in real time. At days end, guests get an emailed summary of their experience thats also posted to Facebook. Spains Ushuaa Ibiza Beach Hotel lets guests share their clubbing experience on Facebook by scanning RFID-enabled wristbands at kiosks throughout the venue; the hotel is planning an upgrade that will rely on fingerprint recognition. For the 2013 U.S. presidential inauguration, the Loews Madison Hotel in Washington, D.C., got a lot of buzz for offering a package that included a social media butler to keep guests online profiles updated (although the package failed to sell, according to Politico). More broadly, hotels and theme parks are selling sessions with professional photographers. The Wall Street Journal recently reported that Jumby Bay, a Rosewood Resort in Antigua, offers a two-hour photo session for couples. Vail Resorts gives guests digital copies of ski photos expressly for social media (while still charging for high-quality prints), and a chip embedded in lift tickets lets skiers automatically upload photos to social networks. Holographic Concierges Aiming to offer memorable (and socially shareable) novelty, high-tech design and attentive customer service with no manpower cost, travel providers are creating digital avatars to serve as human assistants. Starwoods hip, affordable Aloft-branded hotels introduced holographic greeters/ concierges in late 2011 to orient guests on hotel features and nearby shopping and dining. Several airports have added holographic assistants, and Iberia has two holographic virtual agents at its hub in Madrid to provide information about using check-in kiosks and boarding procedures. Hopper This buzzed-about booking site aims to be a one-stop-shop for all travel planning needs. In development since 2007, Hopper has raised a total of $22 million in funding and counts a number of travel industry heavyweights on its executive team, including a former employee from TripAdvisor and ex-Expedia engineers. Built on big data and sophisticated algorithms, the forthcoming service aims to aggregate and catalog fragmented travel information from across the Web to create a discovery and recommendation engine. Users will be able to search for all the information they need based only on a vague idea like Mediterranean cruise, according to the site.
Image credits: Postcard on the Run; Ushuaa Ibiza Beach Hotel; Iberia; Hopper
26
(contd.)
Hospitality Industry Works to Stay Fit The hospitality industry is rolling out new and more varied options for fitness on the go. The prime example is Even Hotels, a middle-market fitness-oriented franchise that InterContinental Hotels Group plans to debut in New York City in 2014. Amenities will include a large gym, guest rooms outfitted with fitness walls and/or exercise balls, and quickturnaround laundry service for gym clothes, according to USA Today. Yoga is becoming a popular amenity: Several hotel chainsincluding Singapore-based COMO Hotels and Resorts, Kimpton Hotels and Affinia Hotelsoffer yoga equipment, instructional videos or classes, and more are joining them. Last year Hilton tested the idea of adding a dedicated yoga room, and Westin created more space for yoga in its fitness centers. San Francisco International Airport built a yoga room for travelers. Todays consumers are trying to cram a bit of everything into their busy lives, and theyre also blurring work and personal time attending to business emails while on vacation but also taking some me time on business trips. With new research showing the downside of sitting for long periods and the benefits of even brief workouts, watch for hospitality providers to compete more keenly when it comes to variety and depth of fitness options. Hotels in Africa Driven largely by an explosion in business travel to Africa, international hotel brands are racing to expand their portfolios. Marriott plans to open a property in Kigali, Rwandas capital, in July, and aims to grow its African properties sixfold by 2020. French hotel group Accor is planning to add almost 5,000 rooms in 30 hotels by 2016, and Starwood intends to open 10 African hotels in the next three years. According to W Hospitality Group, planned hotels in Africa have increased by 17% year-over-year. Insta-cations Staycations have been popular since the 2008 recession, but many of todays consumersever more budget-conscious and overworkedwill opt for quick, affordable bursts of fun in lieu of longer excursions or breaks. People looking to inject fun into their lives will seek the type of unusual one-off experiences and minivacations theyve been finding on some deal sites, the more novel and adventurous the better. Live-Streaming Life Memories will be live-streamed in real time. The newest supercompact video camera from GoPro is 30% smaller and 25% lighter than its predecessorsa big selling point for the skiers, divers and other extreme sports enthusiasts who love to document their exploitsand includes built-in Wi-Fi, enabling live-streaming of footage. Users can also control the camera remotely using a smartphone app.
Image credits: Even Hotels; Marriott; GoPro
27
(contd.)
Nature As Antidote With urbanization rising steadilytoday more than half the worlds population lives in cities, compared to less than 40% in 1990more people will retreat to nature to escape the pressures, noise, pollution, traffic and other stressors of the city. Well also see this urge manifest in other ways too, from an embrace of natural, organic elements in dcor to ever more naturethemed entertainment programming. Political Vacations Affluent travelers are seeking new kinds of status trips, as embodied by Political Tours of the U.K., which offers clients current affairs at first hand. This includes a tour of Northern Ireland led by BBC correspondents and trips to hot spots including Georgia, North Korea, Libya and Kosovomany curated by political experts with insights into the region. Real-Time Translation App creators are looking for new ways to break through language barriers with software that translates two-way conversations in nearreal time. Examples include Jibbigo, which translates typed and spoken words; Vocre, which can handle 36 languages; Sakhr, which translates Arabic; and Word Lens, which translates typed words into English from Spanish, French, Italian and German or vice versa. Samsungs Galaxy S4 comes with the S Translator, which can translate nine languages from speech to text or text to speech, as well as email and text messages. River Cruising River cruising is slated to make a splash in the travel industry. In 2012, for instance, British cruise brands Voyages of Discovery and Hebridean Island Cruises both introduced river cruises. Viking River Cruises expects to have 100 ships on rivers around the world by 2020. Other companies are adding river cruise itineraries worldwide, as well as new ships. Set Jetting New Zealand has seen a 50% spike in tourist visits since The Lord of the Rings debuted in 2001, and The Hobbit is expected to bring even more travelers to the nation. Long popular among film fanatics, set jetting will become more mainstream, especially as more sites start to tout their Hollywood connections. As part of the promotion for 50 years of James Bond films, the stars made appearances at set locations around the U.K. in 2012. This year, Life of Pi (filmed in India) and The Lone Ranger (the American West) are expected to help draw visitors to filming locales. Shopping Hotels In Middle Eastern countries including the U.A.E., Lebanon, Saudi Arabia, Egypt and Bahrain, megamalls with hotels in them are fueling a tourism recovery after the Arab Spring of 2011 took a toll. In March, a Sheraton opened in Dubais Mall of the Emirates, and the upcoming Yas Mall in Abu Dhabi will house seven hotels.
Image credits: Political Tours; Gizmodo; Hobbiton Movie Set Tours; Pullman
28
(contd.)
Smarter Check-Ins Hotels, airlines and airports are using RFID and NFC, combined with customer phones, to smooth and speed up the check-in. Frances Toulouse-Blagnac airport is aiming to use NFC to enable travelers to pass seamlessly through the airport using just their mobile phones. Qantas frequent flyers get a RFID-enabled card that functions as a boarding pass; they use it to check in at a kiosk upon arrival, then flight details are sent to their phone. (Qantas also offers RFID-enabled baggage tags, linking luggage with the fliers flight info to ensure proper handling.) Similarly, hotels including Starwoods Aloft and Hyatt now issue loyalty cards that can double as room keys. Hotels are also enabling guests to use NFC-equipped smartphones as room keys. And Hotel Skypark Central in Seoul provides guests with smartphones that act as keys and remote controls for the room. Transient Hotels These days, its hotels that are on the move, not the guests. Transient, or pop-up, hotels offer affordable rooms in prime spots or posh lodging near seasonal events such as music festivals. Sleeping Around, a Belgian company, transforms 20-foot shipping containers into luxury rooms and transports them to cities around Europe. The Pop-Up Hotel, a British firm, will supply luxury safari tents at Junes Glastonbury Music Festival, as well as a full restaurant and exclusive use of luxury brand new tented shower and toilet blocks, no doubt a valuable festival perk. Podpads will also offer rooms at Glastonbury, but theirs look like small plywood cottages. Another business using shipping-like containers as rooms, Snoozebox, operated at the London Olympics, reportedly achieving 85% occupancy, and became a surprise financial success. With travelers increasingly interested in one-of-a-kind adventures, these hotels help provide an experience that few friends will be able to replicate. Travel Becomes More Inclusive All-inclusive resorts where everything is pre-paidactivities, meals, tips, etc.have existed for decades. But now the concept is expanding to a wider variety of travel options. The guiding idea is transparency: What you see is what you get, and its all included. Cruise lines, known for their pricey extras, are starting to include airfare and before- and after-cruise hotel stays in their prices, with Regent Seven Seas and Seabourn leading the charge. The rate at the new Ovolo hotel in Melbourne, for example, includes minibar items, Wi-Fi, local calls and breakfast. And packages with Orenda, an Adirondacks retreat, include headlamps, hydration packs, gators and trekking poles, as well as fireside meals plus swimming, fishing, hiking and other classes. These providers are all attempting to create a feeling of effortless living (as Ovolos website puts it), alleviating that spike of anxiety every time travelers open their wallet. A U.K. survey by Jet2.com predicts a 10% increase in all-inclusive travel bookings for 2013 vs. 2012.
Image credits: Qantas; Sleeping Around; Ovolo Group
29
(contd.)
VIP Treatment As the middle market shrinks in the developed world, more brands will find ways to provide special service to customers with the means or the motivation to spend. VIP treatment is becoming common at amusement parks, for example, with special access passes allowing purchasers to skip long lines. Independent airport lounges provide a little extra comfort to travelers with an extra $15 to $50 to spend. Women-Only Hotel Floors With more women traveling solo, many for business, hotels from Vancouver and Copenhagen to Singapore and London are reviving women-only floors, an old concept once dismissed as sexist by the feminist movement. These offer more securitysome hotels even require a key card to access the floorand add room amenities like fashion magazines, hair tools (curling irons, flat irons) and additional hangers. Some hotels also provide female room attendants and offer networking events.
Image credit: Naumi Hotel
30
APPENDIX:
MORE ABOUT OUR EXPERTS/INFLUENCERS
WHAT WELL APPENDIX: MORE COVER ABOUT (contd.) OUR EXPERTS/INFLUENCERS

CHRIS FRALIC, partner, First Round Capital Fralic joined First Round Capital in 2006 and is based in its New York office. He has focused on a number of the firms investments in areas such as advertising technology, including Invite Media (acquired by Google) and Demdex (acquired by Adobe); social media, including CoTweet (acquired by ExactTarget) and myYearbook (acquired by MeetMe, formerly Quepasa); e-commerce, gaming, mobile and more. Fralic has 25 years of technology industry experience, with significant Internet business development roles since 1996. He was VP of business development at social bookmarking and tagging company Delicious through the Yahoo acquisition. Fralic was also one of the early employees and VP of business development at Half.com starting in 1999, and after the eBay acquisition spent six years with eBay in a variety of entertainment, business development and media roles. Fralic earned a BS in finance from Villanova University and an MBA from St. Josephs University. LISA GANSKY, author, The Mesh: Why the Future of Business Is Sharing, and chief instigator, Mesh Labs Gansky focuses on the design of new products, services, partnerships and business models in which access to goods, services and talent triumphs over the ownership of them. She also invests, advises, speaks and writes on topics related to the Sharing Economy, including the hidden value in waste, cities as platforms, shareable business models and the rise of local manufacturing. Her passion and interest is to create and test new models and partnerships that will engender creativity and vitality in our daily life and economy. Gansky is a director and investor in ventures including Feastly, Honest Buildings, Spinlister, mPact, Munchery, Pixelpipe, RelayRides, RidePal, SideCar, Scoot Networks, Squidoo, TaskRabbit, Vayable and Yerdle. VIPIN GOYAL, co-founder and CEO, SideTour Goyal was previously VP of business development at Joost, the online video company started by the founders of Skype, and director of strategy and business development at MTV Networks International. He began his career as a business analyst at McKinsey & Co. in Chicago and Mumbai. Goyal holds a BA in economics from Harvard University and an MBA from Harvard Business School. In fall 2009, Goyal and his wife decided to leave their jobs and travel around the world. Their itinerary took them from Africa to the Middle East, India, China, Southeast Asia, Australia and New Zealand. They blogged about their experiences at twonomads.org. The idea for SideTour was born out of that trip.
32
APPENDIX:
ADDITIONAL CHARTS
APPENDIX: ADDITIONAL CHARTS

FIGURE 1D:
P2P engagement (U.S.)

Percentage of American adults who agree
32 36 15 40 31 16 41 37 16 65 44 26
26%
Recently, I have found new sources of income by selling a service or skill on a peer-topeer platform
27%
Ive learned a new skill or received a service from strangers on peer-topeer platforms
47
29%
I would be the first of my friends to try new things like peer-topeer services
42%
FIGURE 1E:
P2P engagement (U.K.)

Percentage of British adults who agree
34 22 7 38 23 6 40 28 7 44 32 14
18%
Recently, I have found new sources of income by selling a service or skill on a peer-topeer platform
19%
Ive learned a new skill or received a service from strangers on peer-topeer platforms
47
22%
I would be the first of my friends to try new things like peer-topeer services
27%
34

FIGURE 1F:
Likelihood of using P2P services (U.S.)

Percentage of American adults who would be likely to use the following services if they were available and within their price range
54 39 23 43 33 22
36%
31%
47
FIGURE 1G:
Likelihood of using P2P services (U.K.)

Percentage of British adults who would be likely to use the following services if they were available and within their price range
40 37 11 36 32 14
26%
25%
47
35

FIGURE 1H:
P2P vs. traditional businesses (U.S.)

Percentage of American adults who agree
75 64 50 58 50 28 63 52 51
61%
43%
47
54%
FIGURE 1I:
P2P vs. traditional businesses (U.K.)

Percentage of British adults who agree
61 58 43 47 45 25 55 54 56
52%
36%
47
55%
36

FIGURE 2B:
Attitudes toward personal data collection (U.S.)

Percentage of American adults who agree with the following after learning that, through data analysis, companies can predict what theyll want or need and create customized offers for them as individuals
52 63 70 55 68 67 48
63%
64%
54 57
54%
69
50 39 73
50%
71 59 81 65 49
66%
62%
37

FIGURE 2C:
Attitudes toward personal data collection (U.K.)

Percentage of British adults who agree with the following after learning that, through data analysis, companies can predict what theyll want or need and create customized offers for them as individuals
62 71 68 61 66 64 48
67%
64%
55 45 56
48%
54 35
46%
68
71 53 68 72 51
62%
61%
38
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Travel: Changing Course

Written by Director of trendspotting Jessica Vaughn Ann M. Mack Marian Berelowitz Will Palley Nicholas Ayala Ann Abel Alec Foege Mark Truss Peter Mullaney
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TRAVEL

WHAT WELL TABLE OF CONTENTS COVER (contd.)

WHAT WELL EXECUTIVE SUMMARY COVER (contd.)

*See Appendix to learn more about these experts and influencers.

Image credit: Vladimir Yaitskiy

WHAT WELL COVER PEER-POWERED TRAVEL (contd.)

Percentage of American and British adults who agree

Recently, I have used online peer-to-peer services to save money

WHAT WELL COVER PEER-POWERED TRAVEL (contd.)

Likelihood of using P2P services

While 34% of the general population told us they would be the

When asked about their likelihood of using different types

P2P vs. traditional businesses

I trust individual people offering services on peer-topeer platforms

Id put my trust in an individual over a big corporation any day

WHAT WELL COVER PEER-POWERED TRAVEL (contd.)

WHAT WELL COVER PEER-POWERED TRAVEL (contd.)

Based in San Francisco. Listings cover 200-plus countries.

More than 5 million members.

Based in Austin, Texas. Listings in 171 countries.

700,000-plus homes listed.

WHAT WELL COVER PEER-POWERED TRAVEL (contd.)

WHAT WELL COVER PEER-POWERED TRAVEL (contd.)

Shiroube is self-funded by its co-founders.

Based in San Francisco.

Offers 2,500plus travel experiences to users in 600 cities.

WHAT WELL COVER PEER-POWERED TRAVEL (contd.)

More than 10,000 cars available for rent as of August 2012.

WHAT WELL COVER PEER-POWERED TRAVEL (contd.)

Based in San Francisco and operates in nine U.S. cities.

500 drivers in San Francisco.

500-plus bikes available for rent.

WHAT WELL COVER PEER-POWERED TRAVEL (contd.)

Based in Gloucestershire, England.

60,000 members as of March 2013.

More than 1,500 meet-ups as of May 2012.

WHAT WELL COVER PEER-POWERED TRAVEL (contd.)

Image credit: Marriott

WHAT WELL COVER PEER-POWERED TRAVEL (contd.)

WHAT WELL COVER PEER-POWERED TRAVEL (contd.)

Can you incorporate P2P technology into your model, as

Is there a service you can launch that addresses needs

Is there a consumer who would benefit from a P2P

Are there ways to take inspiration from the things

What strengths can you play up to differentiate your B2C

Since some consumers buy into P2P services for their

Image credit: Porto Bay Trade

WHAT WELL COVER (contd.) HYPER-PERSONALIZED TRAVEL

Image credit: Jonno Witts

WHAT WELL COVER (contd.) HYPER-PERSONALIZED TRAVEL

British Airways, Know Me:

Disneys MyMagic+: The Walt Disney

Image credits: British Airways; Disney; Urbanspoon

WHAT WELL COVER (contd.) HYPER-PERSONALIZED TRAVEL

Libra OnDemand: This company provides customer relationship

Citybot: Citybot collects data from various travel

Image credits: Libra OnDemand; Citybot

WHAT WELL COVER (contd.) HYPER-PERSONALIZED TRAVEL

Image credits: Utrip; Ness

WHAT WELL COVER (contd.) HYPER-PERSONALIZED TRAVEL

Attitudes toward personal data collection

It feels like Big Brother is watching me

The idea of being tracked and analyzed makes me anxious