Report on 8 major changes of tourism industry in the coming months From 2020 aviation plan

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The following is the Report on 8 major changes of tourism industry in the coming months From 2020 aviation plan recommended by recordtrend.com. And this article belongs to the classification: Travel booking, research report.

By analyzing the impact of the epidemic on tourism, the report forecasts eight possible trends in the industry in the future. The forecast points of the report include: the price competition of tourism products is intensifying, the surrounding tourism is temporarily dominating the leisure market, some business travel demands are digested by online solutions, the aviation withdrawal and reform rules usher in a change, and Google’s threat to the tourism industry is weakened.

1. The collapse of enterprises will reduce the air transport capacity and tourism inventory

According to the analysis of the International Air Transport Association (IATA) in mid April, air passenger revenue in 2020 is likely to plummet by 314 billion US dollars, down 55% year-on-year. According to previous data from IATA, the total revenue of aviation markets with strict travel restrictions accounts for 98% of the total global air passenger revenue. The Asia Pacific region is expected to be the world’s largest aviation industry losses this year, followed by Europe and North America.

With the reduction of global air travel, hotel, holiday rental, car rental and sightseeing businesses will also suffer a heavy blow. According to the report, all the above business lines will have tourism enterprises going bankrupt.

2. The surrounding tourism temporarily dominates the leisure tourism market

In the short term, leisure tourists will prefer short distance travel closer to home, and their travel habits may change.

In mid March this year, the World Health Organization officially designated the new coronavirus as a “global pandemic”. According to IATA data, after the outbreak of SARS in 2003, the tourism industry gradually recovered within three to four months. According to this trend, the recovery period of tourism industry will be between June and July this year.

However, given the extent of the epidemic, this assumption is not realistic. In order to seize the tail of the northern hemisphere summer, the hotel industry may take measures to promote room bookings in August. According to the U.S. Department of transportation, it took the industry two to three years to get out of the shadow of 9 / 11.

The report predicts that the popularity of regional tourism in the United States, Europe and Asia will increase, and the interest of leisure tourists in long-distance outbound travel will decrease.

Self driving tour, train and short route travel will be the earliest to resume. There is a huge potential demand for hotels, holiday rentals, car rentals and sightseeing activities in these markets.

3. The protective measures were continuously strengthened

In the process of using public facilities, passengers will pay more attention to personal hygiene, such as not easily touching the small table board in the cabin, hotel TV remote control, etc. But as time goes on, previous habits may return.

Delta Airlines has made a brand commitment to provide passengers with safer sanitary facilities, disinfecting high contact points such as small tables, seat back entertainment screens, armrests and seat back pockets. In addition, the flight crew may delay the departure time of the flight and ask the cleaning personnel to return for additional cleaning.

Airlines also need to optimize the purchase of on-board meals. According to the personal experience of Jay Sorensen, the author of the report, he ordered a hamburger during the flight, but the flight attendants gave him sandwiches, seasonings and napkins wrapped in foil. During the whole process, there are no plates, plastic knives for spreading sauce, and no hand cleaning tools after meals. The design of this service lacks empathy. In the future, consumers will give such services low marks.

4. Affordable services are more popular with consumers and will bring more traffic

Most consumers will cut their budgets during and after the outbreak. The first reason affecting consumer spending is falling demand, but suppliers are still trying to get customers, which will make low prices a common means of promotion. Second, consumers are used to expecting more favorable prices in the economic downturn, so suppliers can only increase the discount.

To sum up, the sales of a la carte will face challenges after the end of the epidemic. At the first mock exam, regulators, media reporters and consumers will be more sensitive to the way in which the airline intends to use this model to raise prices and revenues. If the airline department raises the cost of luggage check-in after receiving government assistance, it will become a hot topic of public discussion, and the aviation industry needs to try to avoid this storm.

5. The aviation industry receiving government assistance will be more supervised by the public

As one of the industries hardest hit by the epidemic, aviation industry has become the focus of public attention, and has become the main object of government assistance. Aid measures, such as direct operating subsidies, loans and delayed collection of airport fees, have kept the industry from bankruptcy.

In this case, consumers will also pay more attention to the aviation industry, which has been widely discussed due to pricing strategies, flight delays and passenger handling errors. Other areas of tourism that receive government assistance will also receive more attention. From 2020 to 2021, the news that senior executives of the U.S. tourism industry receive dividends in the form of stock options will arouse public dissatisfaction. The recovery of airlines depends on consumers, employees, managers and the government at the same time. The management team of the enterprise must carefully measure the budget plan in response to public supervision.

6. The reform of fee refund and fee change system

In the field of aviation, refund fees and non refundable tickets set by airlines are relatively new pricing policies. In 1985, American Airlines once launched ultra-low ticket prices, with a discount of up to 70%. However, the news of price reduction of air tickets caused the stock of airlines to plummet. At that time, American Airlines introduced low-cost tickets to recapture passengers from rapidly expanding low-cost airlines, but it also put forward strict regulations on the refund and reform of ultra-low-cost tickets.

According to the Chicago Tribune, it was the first time in the industry that passengers would be punished for changing their itinerary. After the passenger purchases the ultra low price ticket, the refund will charge 25% service charge. The resulting consumer resistance, in fact, is the punishment of air ticket agents and airport customer service personnel.

After 35 years, the policy of deduction for refund and reform still exists, and the relevant airlines will gradually lose the favor of passengers. Southwest Airlines is one of the most profitable airlines in the world, but it has never charged passengers with refund fees. According to the report, the case of Southwest Airlines at least proves that the airline company can still achieve high profits without charging the refund and reform fees.

Southwest Airlines also sells non refundable tickets, but passengers can complete the change free of charge at the latest 10 minutes before departure. The refund will be made by the deposit in the travel account and will be valid for one year from the date of original purchase. During the epidemic period, Southwest Airlines further extended the validity of account refund.

Affected by the epidemic situation, the global airlines Department handled free refund for passengers and refunded the booking fee in the form of cash or account deposit. So are hotels, holiday rentals and car rental platforms. Because of the uncertainty, it is very friendly for consumers to exempt the refund and reform fees. When tourism enterprises are forced by financial pressure to re charge the fee, the market is expected to hear more negative voices.

On the other hand, wizz air has launched an attractive policy to encourage users to apply for vouchers instead of refunds. For the flights of viz Airlines actively grounded, the airline company will automatically give the voucher equivalent to 120% of the original ticket price to the users who book directly through the official website and app of the airline company, but passengers can also choose 100% refund to return to the original account. This innovation guide undoubtedly attracted many passengers, but also reserved more cash for the airline. Singapore cool air scoot has adopted a similar refund policy.

7. Some travel needs are met by online solutions

During the outbreak, many offline business talks were met by technological solutions such as video conferencing. The core of leisure tourism is to enjoy life, while the core of business travel may be an hour’s meeting. Ben baldanza, former CEO of spirit airlines, predicts that in the long run, demand for business travel meetings will decrease by 5% to 10%. He said short-term meetings between the two could easily be replaced by online video conferencing, but sales visits and factory visits still need to be done offline.

According to a survey of 995 local travelers conducted by national car rental in November last year, 81% of the respondents believed that “business travel helps them to establish new business contacts, which cannot be formed without travel activities”. In addition, 81% of respondents will combine business and leisure activities in their journey.

8. Google’s interest in the tourism industry has declined

The travel industry has been worried that Google will use flights and maps to dominate its travel booking business. After searching for travel products through Google, travelers may not need to visit airlines, hotels, holiday rental and car rental companies, or even OTA booking platforms. Gmail may also help Google get more customers to book travel.

But according to the report, with the outbreak of the epidemic, Google may explore more direct opportunities in other industries, so the possibility of Google dominating the tourism industry is reduced.

Google cooperates with public health departments of various countries to use the massive data collected by Google to track the flow of people during the epidemic, mainly from the location information of residents’ mobile phones. Google has released travel routes for residents in more than 130 countries, covering grocery stores and pharmacies, parks, residences, retail entertainment, transit stations and workplaces to help public health officials determine the safety of residents. Google’s achievements will attract more potential customers in the future.

In contrast, Google has more limited leverage in the tourism industry, according to the report. The opportunities for rapid profit-making in the tourism industry are no longer what they used to be. And travel sales need direct customer service support, which is not Google’s strong point. In the next five years, there will be huge investment in online education and public security, and the tourism industry has been opened a huge gap. By contrast, the report argues that Google has no incentive to conquer tourism.

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