04th September 2024: Here are some of the stories that caught our attention over the week.
1 – Has global corporate travel consolidation hit a buffer? : According to the Travel Weekly, it looks like the UK Competition and Markets Authority (CMA) is pretty worried about Amex GBT’s plan to take over CWT. The CMA’s summary highlights that there’s quite a bit of concern and pushback regarding this merger, not just from competing travel management companies (TMCs), but also from global clients of both Amex GBT and CWT. They’ve been gathering inputs from major airlines, hotel chains, and others who work closely with the companies.
Here is a bit more colour from the CMA “The CMA is concerned that the merger could lead to worsened quality of service, higher prices and/or reduced innovation efforts for global multinational (GMN) business travel customers, as a result of combining the current largest and third largest company operating in this market. Following the merger, there would be a very small pool of providers capable of catering to the business travel needs of GMN customers.”
2 – It’s the End of Search Advertising as We Know It : Perplexity’s decision to introduce advertising in its app, opting for a cost-per-mille (CPM) model rather than the more traditional CPC approach, caught my attention the other day. This shift may be indicative of broader trends in the industry: is this the beginning of the end for click-based advertising models, at least for search engines?
3 – Good News for Deal-Seekers This Fall: Travel Demand Has Softened: According to this NY times article the days of “revenge travel” are well and truly over. Here are a few takeaways in case of a paywall:
- Data shows a plateau in post-pandemic travel spending growth that began in 2021.
- High-income travellers continue to book luxury experiences, but others are cutting back.
- Bargains are emerging as demand softens, leading to lower airfare and hotel perks.
- Hotels are offering incentives like room upgrades to attract travellers.
- Last-minute bookings for both hotels and short-term rentals have increased.
- Air travel demand has surged, matching 2019 levels, but bookings for future months have slowed.
- Ticket prices are lower this year, with high cabin capacity.
- International airfare from the US this fall is down about 3% compared to last year.
- Cruise demand remains strong, with passengers seeking affordable all-inclusive packages.
- Cruise capacity is expected to increase, with record demand reported in the industry.
4 – The Big Question: Is the ‘S’ word starting to put customers off?: “It’s a crucial issue, but how can travel communicate its sustainability message effectively to consumers without risking overkill or apathy?”
5 – Decisions guided by trust: Social media conversion in travel: “In travel, social media plays a pivotal role in influencing trip decisions. But converting social media engagement into actual bookings can be a challenge. Who are the converters that look to creators and brands to make travel decisions?“
