Amadeus Traveller Tribes 2030 Airline It

8/20/2019 Amadeus Traveller Tribes 2030 Airline It

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amadeus.com

Future Traveller Tribes 2030Building a more rewarding journey


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The world isa book and those

who do not travelread only a page.Saint Augustine


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Who lives sees much.

But who travels sees more.

Foreword

Arab proverb

We are pleased to introduce the second phase o our Traveller Tribes 2030 research ‘Building a more rewarding journey’.In our first study, we commissioned Future Foundation to examine the uture traveller tribes set to reshape the travel industry by 2030. Theresearch asked, ‘why will we travel in the uture?’ and uncovered motivating trends including the rise o social capital seeking, desires touncover culturally authentic experiences or seek an indulgent ‘must have’ experience as a reward and escape rom busy proessional lives,amongst many others.

In this paper Frost & Sullivan builds on this important work to answer an equally critical question ‘how will purchasing habits evolve?’ and how can the airline industry respond to these emerging traveller behaviours to build a more rewarding and connected traveller journey,rom ‘inspiring to arriving?’

By mapping uture traveller behaviours to the traveller journey this second paper offers practical advice or airlines seeking to betterunderstand, prepare or, and cater to, emerging traveller segments. O course even though the paper is aimed squarely at the airline traveller journey, the findings will still be useul or players within the broader global travel ecosystem. For example, the research highlights essentialareas or greater collaboration with travel management intermediaries and suppliers to deliver a more rewarding journey or both the

traveller and the industry. Indeed, whether you are considering questions such as ‘what level o personalisation should we offer?’ or ‘howcan we improve the purchasing experience?’ we hope this paper provides a comprehensive ramework to support your strategic planning.

We at Amadeus look orward to hearing your eedback on this research so that together we can help shape the uture o travel to 2030 and beyond.

Rob Sinclair-BarnesStrategic Marketing Director, Airline IT

Amadeus IT Group


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MethodologyFor this report, Frost & Sullivan built upon a rangeo existing reports as well as undertaking new primary andsecondary research. Approaches include:

_ Building on the insights rom Future Traveller Tribes 2030:Understanding tomorrow’s traveller , a report rom FutureFoundation drawing on the firm’s proprietary nVision trendsdatabase covering over 60 major consumer trends, researchconducted with travellers in 12 global markets, in-depthinterviews with uturologists and a series o workshops.

_ Drawing on the merchandising strategy ramework showcasedin last year’s Thinking like a Retailer report based oninterviews with leading airlines rom around the world,traveller surveys and expert interviews to better understand thediscreet stages o the traveller journey and airline approachesto merchandising techniques.

_ Finally, we used a combination o secondary and primaryresearch including interviews with a range o airline digital andmarketing executives, Frost & Sullivan’s internal pool osyndicated research and the expert analysis o Frost & Sullivan’sInormation and Communications Technology andAerospace & Deence businesses.

Frost & Sullivan, the growth partnership company, works incollaboration with clients to leverage visionary innovation that

addresses the global challenges and related growth opportunitiesthat will make or break today’s market participants. For more than50 years, we have been developing growth strategies or the Global1000, emerging businesses, the public sector and the investmentcommunity. Is your organisation prepared or the next prooundwave o industry convergence, disruptive technologies, increasingcompetitive intensity, Mega Trends, breakthrough best practices,changing customer dynamics and emerging economies?

To find out more contact us at www.rost.com

Lawrence Lundy, author

Lawrence Lundy is an Inormation and Communications TechnologyConsultant with Frost & Sullivan providing market research andstrategy consulting services. Lawrence ocuses his research onemerging technologies, specifically, artificial intelligence, 3Dprinting, robotics, and virtual reality - and their disruptive impactacross industries. He provides regular expert media analysis or theBBC, Bloomberg and The Wall Street Journal. Lawrence is currentlyliving as a #DigitalNomad in Ho Chi Minh City, Vietnam.

Information and Communications Technology Consultant

About Frost & Sullivan


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Index

Section 1 Traveller Tribes 2030...........................................................................................................................................................................................6

Pen portraits o the six Traveller Tribes..........................................................................................................................................................8

Section 2 Evolution o the traveller experience................................................................................................................................................10The traveller journey................................................................................................................................................................................................10

Purchasing experiences.........................................................................................................................................................................................12

New sales channels.................................................................................................................................................................................................14

Data and personalisation.....................................................................................................................................................................................16

New types o travel experiences......................................................................................................................................................................16

Section 3 Purchasing behaviour is a key differentiator...............................................................................................................................18

Simplicity Searchers.................................................................................................................................................................................................18

Reward Hunters..........................................................................................................................................................................................................20

Social Capital Seekers.............................................................................................................................................................................................22

Cultural Purists............................................................................................................................................................................................................24

Ethical Travellers........................................................................................................................................................................................................26

Obligation Meeters...................................................................................................................................................................................................28

Shaping the uture traveller journey...........................................................................................................................................................................30

Conclusion Building a more rewarding customer journey...........................................................................................................................32

Executive summary.........................................................................................................................................................................................................................5


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Future Traveller Tribes 20304

“Travelling –

it leaves youspeechless,then turns you

into a storyteller.”Ibn Battuta


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5Future Traveller Tribes 2030

Executive summary

‘What, When, Where, Who and How’ have been the strategic cornerstones ocustomer-centric organisations. For companies in the travel industry, answering thesequestions has never been more important. The traveller landscape has always beencomplex but as new technologies emerge, travellers are aced with greater choice – and,at the same time, greater complexity. There are now such a variety o solutions andservices available that travellers risk inormation overload. However, i technologyis used correctly, it can help travellers navigate the maze o choice and selectthe right travel experience.

Last year, Amadeus and Frost & Sullivan published Thinking likea Retailer, developing a ‘merchandising strategy ramework’ thatallowed airlines to build a merchandising strategy based around sixcritical elements – customer journey, merchandising technique, saleschannel, travel services, price, and personalisation; in other words,the ‘What’, ‘When’ and ‘Where’.

Earlier this year, Future Foundation authored a report detailing‘Who’ travel providers will need to serve and market to in the nextfifeen years: Future Traveller Tribes 2030: Understanding tomorrow’straveller. Future Foundation’s research identified six Traveller Tribesthat will shape global travel in 2030: Simplicity Searchers; RewardHunters; Social Capital Seekers; Cultural Purists; Ethical Travellers;and Obligation Meeters. Rather than segment customers in a static

way by age, gender or cabin class, the Traveller Tribes are identifiedby their purchasing behaviours and motivations. As airlines andother travel providers enter the age o data abundance, this nuancedpsychographic approach to segmentation offers new opportunitiesor brands seeking to understand and remain relevant in today’srapidly changing consumer landscape.

With the ‘What’, ‘When’, ‘Where’ and ‘Who’ specified, this third reportseeks to address the all important ‘How’, providinga spotlight on air travel to propose an evolved ramework thatcan be used to better develop traveller segmentation strategies.Importantly, we seek to bring the traveller tribes and the travelexperience together to define how to sell travel services moreeffectively and meet the unique needs o the six tribes.

The ramework in this paper aims to bring clarity to the complicatedtraveller experience, giving airlines the oundation upon which tooffer products and services to delight customers. This will accelerateairlines’ shif rom pure flight providers to the more lucrative travelexperience provider market. For airlines, this translates intohigher customer satisaction, revenues, and profits.

As travellers enjoy ever-increasing access to inormation, especiallyvia social network sharing, their purchasing behaviours are changingrapidly, arguably aster than ever beore. As a result, establishedsegmentation techniques are no longer enough to ensureairlines and other travel providers are anticipating, responding to andmeeting traveller needs. In act, travellers’ needs – and the optionsavailable to them – are becoming ever more polarised. Whilst some

travellers want extremely high levels o personalisation, otherswill consider personalisation a hindrance to their experience. Sometravellers may want to be served with a tailored bundle o servicesat the booking stage o their journey, whereas others might want totake a ‘do-it-yoursel’ approach, booking services à la carte as andwhen they are inspired to throughout their journey. Some travellerswill want constant contact and luxury services, while others will wantto be lef alone with services allowing them to be closer to nature.

In a world where inormation is available at everyone’s fingertips,new advice and guidance through both online and offlinepersonalisation techniques can finally enable airlines to understandand better serve traveller needs. Ultimately, this will deliver amore rewarding global travel ecosystem or both travellersand suppliers.


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In an update to Future Traveller Tribes 2020 , FutureFoundation identified the emerging trends; habits andpurchasing behaviour that will reshape the global travelindustry by 2030. As the speed o technological changecontinues to accelerate, it is important to remember thattechnology is a tool or addressing human needs. Thesix traveller tribes are defined by the undamental motivationor their travel. Some people travel because they have to besomewhere; others travel or personal growth; others orthe social capital they gain.

Many travellers are a mixture o these tribes.

It is critical that airlines understand the individual traveller’sbehaviour in order to personalise services and delighteach traveller.

It is also true that the tribes approach is dynamic: individualswill all into different tribes depending upon their trip, whythey are travelling, who they are travelling with and otheractors. The challenge or airlines is to understand which tribethe individual alls into and when, so that they can cater totheir needs with the appropriate products or services.

Section 1 Traveller Tribes 2030

For more detail on Traveller Tribes 2030,download ull report amadeus.com/tribes2030


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Future Traveller Tribes 2030The six Traveller Tribes

Simplicity Searchersvalue ease and transparency in their travelplanning and holidaymaking above all else,

and are willing to outsource their decision-makingto trusted parties to avoid having to gothrough extensive research themselves.

Social Capital Seekersunderstand that to be well-travelled isan enviable personal quality, and their choicesare shaped by their desire to take maximalsocial reward rom their travel. They willexploit the potential o digital media to enrichand inorm their experiences and structuretheir adventures with the act o their beingwatched by online audiences ever in mind.

Reward Huntersocus on sel-indulgent travel thatwill ofen mix a ocus on luxury withsel-improvement and personal health.The seeking o ‘reward’ or hard workin other areas o their lie is whatmotivates them. They are looking orluxury experiences that are severalnotches above the everyday.

Ethical Travellersallow their conscience, in someshape or orm, to be their guide

when organising and undertaking theirtravel. They may make concessionsto environmental concerns, let their

political ideals shape their choices orhave a heightened awareness o the

ways in which their tourism spendcontributes to economies and markets.

Cultural Puristsuse their travel as an opportunity to

immerse themselves in an unamiliarculture, looking to break themselves

entirely rom their home lives and engagesincerely with a different way o living.

Obligation Meetershave their travel choices restricted by the need to meet some

bounded objective. In addition to business travel commitments,

these obligations can include personal obligations such as religiousestivals, weddings, and amily gatherings. Business travellers arethe most significant micro-group o many alling within this camp.

Although they will arrange or improvise other activity aroundtheir primary purpose, their core needs and behaviours

mainly are shaped by their need to be in a certainplace, at a certain time, without ail.


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Obligation MeetersSeonyeon, 26, South KoreanPR Manager

Seonyeon decides to meet her new client in person, wantingto create a strong relationship rom the start. She logs ontoher mobile workplace app and communicates her plans withher colleagues – who are all currently scattered around Asiaon business. She chooses to extend her trip to work in someleisure time, automatically updating her vacation allowance.When delays occur due to bad weather, she receives automaticcontingency plans and an upgraded seat.

Ethical TravellersStan, 35, AmericanTechnical Assistant for start-up

Stan rigorously monitors his eco-impact through a totallie-logging app, which plots his liestyle against eco-idealbehaviours. In his day-to-day lie, he gets paid or his ‘greenness’

with crypocurrency KindCoin, financed by a Corporate SocialResponsibility drive at his workplace. Through this, he canmonitor his positive behaviours very easily, meaning he eelsbetter about using air travel, as he knows the negative ecologicalimpact is offset elsewhere in his lie. He strives to give back tothe areas he visits, microvolunteering his IT skills tolocal communities.

Cultural PuristsKwame, 28, South AricanFreelance author

Kwame won’t travel to Mexico beore completing an immersiveSpanish course and reading as many books and articles aspossible. He books his trip with no planned accommodation, sologs into a soa-hopping network on arrival. He wears connectedeyewear around Mexico City, giving him non-obtrusive flashes oinormation on his surroundings. Finding the city too filled withtourists, he heads north to a quiet village at the last minute,

seeking the “true Mexico”.

Pen portraits o the six Traveller Tribes


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Simplicity Searchers Arjun, 40, IndianMarketing Manager

With a stressul and exhausting job and little holiday time, Arjunlikes to splurge on two week holidays that don’t involve lengthyplanning on his part. Bespoke holiday packages, which areexactly matched by his algorithm-inormed travel agent, appealmost to Arjun, as he can relax sae in the knowledge everythingdown to dinner reservations will be made or him. He keeps tracko his itinerary through an intelligent mobile application.

Reward HuntersCeline, 60, FrenchBusiness executive

Celine escapes her busy work week through trips booked byher luxury travel club, to retreats only open to a select ew.She makes time or exotic mini-breaks by sharing real-time

heartbeat data as a password, which allows her to breezethrough airport security, with her preerences or the flightalready noted. She undergoes a ull medical diagnostic examwith the onsite doctor, then decides to take a helicopter trip to anearby mountain with her personal drone, which snaps pictureso her sightseeing and relays them back to her personal cloud.

Social Capital SeekersFionnula, 20, IrishOn her second gap year

Fionnula receives heavily discounted, personalised trip offersbased on the data rom her Instagram eed. Whilst away, shesets her wearable lielogging device to 24/7 record and gainsollowers o her Italian trip by the minute. She takes care to fillher days with beautiul sights and quirky attractions that willappeal to her social network. She meets a popular vlogger in thearea and snaps some selfies, beore producing a daily

vlog hersel.


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The traveller journey

Section 2 Evolution o the traveller experience

Using the merchandising ramework defined in Thinking likea Retailer , this section explores how the components o themerchandising ramework will evolve. Firstly, it will show how thetraveller journey will extend and integrate. Secondly, it will outlinehow merchandising techniques will evolve into a more customer-centric purchasing experience, which, i managed effectively, willdrive revenues and customer satisaction. Thirdly, it will examinehow sales channels will increase in variety to become digital andmobile. Fourth, it will explain that data will become the mostimportant resource available to an airline, and how customers willcome to expect this data to be used to personalise their travel.Finally, it will demonstrate how new types o travel purchasing

experiences will be possible through the development o newtechnologies and more effective use o traveller data. Only whenwe understand how the travel experience will change, canwe begin to understand how the needs o the differenttribes can be met.

Until recently, the traveller journey was disconnected and, in essence,ended or airlines as soon as the traveller stepped off the plane attheir destination. For airlines, the shopping and booking phases werethe most important, as this was where flights and other big-ticket

items such as car rental were booked. Aside rom a ollow-up emailbeore the flight and at check-in, airlines had limited touchpoints withtheir customers. This has changed with the rise o the smartphone,which has huge implications or both customer service and revenuegeneration. At the airport, customers can share disappointmentsand complaints immediately, causing huge damage to an airline’s

reputation i not adequately managed. Airlines are quickly adaptingtheir businesses to use social data to proactively manage complaints,but they are yet to utilise the airport as an effective sales channel.

Thinking like a Retailer reinorced the idea that the traveller journeydoes not end. The moment a traveller returns rom a trip is theperect moment to reinorce the customer relationship with ‘post-trip’services such as spa days or other tailored offers. Airlines now havethe capabilities to integrate the whole journey, including both directand indirect channels. The customer expects a seamless experienceregardless o the device, channel or service provider they are using.

The traveller journey will not change undamentally becauseo technology. Technology can be a stimulus o change onconsumer behaviour, as will be the case with virtual reality. But it isalso a way or airlines to respond to changing travel expectations,as with a smartwatch boarding pass. In the uture, the traveller willbe accessible at all times throughout their journey across a range odifferent devices. The smartphone has extended mobile accessibility:with new aster mobile network standards being developedaround 5G, and a ocus rom Google and Facebook on ‘connectingthe unconnected’, by 2030 there will be very ew places withoutconnectivity. Today, the traveller is arguably lost to the airline oncethey leave the plane. Global standardised mobile connectivity willadd a new phase, ‘on-trip’, to the journey.

By 2030, the traveller journey will not end in the arrivals lounge.Successul airlines and complementary intermediaries such asagents, travel managers and concierge services will leverage eachstage o the journey to provide a personalised experience, to delightthe customer and to reinorce their brand.

“We absolutely think in terms o the whole customer journey.We have the small travel concept which is our vision to help

customers get through the airport as efficiently as possible andto remove all bottlenecks. We are working with security and

border control to help improve the whole customer experience.”Petteri Skaffari, Head of Customer Experience and Sales Applications, Finnair


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The trip cycle

Inspire: A key opportunity to position an airline’s

flight options and services, and betterinfluence customer selection at the start

o the traveller’s experience decision-making process.

Shop:An important personalisation

and discovery stage; we willsee holography, augmented

and virtual reality offermore immersive shoppingexperiences, with tailored

choices or both bundled andunbundled selection.

Book: This stage will utilise mobile

channels as the use o PCsdeclines; the target will

be “rictionless” bookingusing stored preerences,

biometrics, and naturaluser interaces.

24-48 hours afer booking: This will become less o a distinct phase, asincreased customer data means customerscan be contacted at varying times based on

what is most effective or that individual.

48-24 hours beore departure: This will be a critical stage or last minute ‘door-to-

door’ planning and an opportunity to enhance thetraveller journey, by aligning availability o upgradesand offers with customer preerences - all inormed

by sophisticated revenue management.

At airport:More efficient airportprocesses especiallyaround security andcheck-in, means lesstime needed atthe airport.

On-trip: This will be a completelynew phase acilitated byglobal roaming SIMs andwidespread connectivity.Personalised offers willbe delivered at extremelyrelevant times basedon context.

Post-trip: A currently under-utilisedstage. Airlines should engagewith travellers on their returnhome to better understandtheir needs and desires oruture travel, and to build astronger relationshipwith customers.

On way to airport/check-in: As location-based technologies improve andsmartphone and smartwatch apps become moresophisticated, customers will be more comortablemaking purchases on the way to the airport. Formany travellers, especially business travellers,this phase may be the first time they havethought about their trip. We will see a decreasingimportance o check-in as mobile comes todominate: check-in will become a process,not a destination.

BookAt airport

On-trip

24-48h afer

booking48-24h beore

departure

On wayto airport/ check-in

Post-trip

Shop

Inspire


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The discussion around ‘merchandising’ is evolving. The traditional

view o ull service carriers bundling and low-cost carriersunbundling has evolved into hybrid models, which use a betterunderstanding o customer preerences and what they value toshape how components are combined. These hybrid models areproviding the most effective and efficient merchandising offer,rewarding to both traveller and airline, as a return on investment.A widespread current approach to merchandising is: how can wesell more to customers? This will need to be more nuanced inorder to be successul in selling to uture travellers. Traditionaltechniques or differentiating services have involved bundlingproducts, customer contact techniques and ocusing on userexperience on a website. All o these techniques will become moresophisticated, but also ar more widespread in the industry,and so competitive differentiation will get even more difficult.

A more effective approach will be creating ‘purchasingexperiences’. This is a customer-centric approach that ensuresincentives are ocused on creating positive purchasing experiencesbeore revenue maximisation. The best example o this is Appleand their approach to customer service and revenue generation.Purchasing a product rom Apple is a delight: everything rom thebooking flow, to the unboxing in store, to the customer service i aproduct is aulty. Customer service is first and oremost a tool tobuild loyalty, and revenue will flow naturally rom happy customers.A ocus on merchandising and revenue maximisation has inmany cases rustrated customers and squandered loyalty.

To appeal to uture traveller tribes, airlines have to create‘purchasing experiences’ and move away rom ocusing onmerchandising solely as revenue maximisation. Building ‘purchasingexperiences’ will be a core component o brand building, allowingsuccessul airlines to avoid commoditisation.

Bundling has already become more sophisticated with the use o‘are amilies’ and ‘branded ares’, both o which offer value tocustomers and airlines. Progress in big data analytics will allowairlines to personalise bundles in real-time to the individual.Personalisation tools are already becoming more attainable andmore advanced as companies begin to move data rom businesssilos into company-wide cloud-based databases. As more data

is captured rom social media channels, location-based mobileservices, and health data rom wearables, bundling will becomeincreasingly granular. This granularity means higher conversion.

For example, in the weeks beore visiting the airline tabletapplication, a customer has tweeted that they are looking orwardto a break rom work. This inormation is combined with historicaltrip data showing that this individual has previously booked aspa day with a third-party. When this customer visits the tabletapplication, a ‘relaxing bundle’ is suraced. Such a bundle wouldbe perect or the Simplicity Searcher tribe.

Purchasing experiences

Perpetual touchpoints

Future o personal bundles

As the traveller journey extends with mobile devices and globalwireless connectivity, the number o potential touchpointsbecomes virtually unlimited. Previously, the customer contactenvironment included the airline website, email, check-in andthe in-flight cabin crew. The environment is already becomingmore complex, with push notifications, context-aware emails, andsocial media channels. Airlines are beginning to integrate thesetouchpoints in the event o a crisis or delay. However, in the uture,the quality o inormation is key and perception o the airline as atrusted source will be essential to avoid conusion and rustrationduring the journey.

The adoption o wearable devices and smart clothing on travellers,

as well as service robots with the ability to converse in naturallanguage, opens up completely new ways to engage withcustomers. While customers are available 24/7, airlines must usethe right contact technique at the right time to avoid irritation.This is where understanding the traveller tribes will provideairlines with a valuable ramework to work with.

For example, smartwatch alerts will only be or extremely time-sensitive inormation and will use light rather than more intrusivevibration. Service robots will offer reactive advice to customersand only offer services that the customer has explicitly stateda need or.

Making purchases will continue to become easier. User experiencedesign is key to this. Today, these techniques include: userinterace optimisation; promotions and third-party deals photo/video integration in the booking flow; paying with miles; and peerrecommendations. Essentially, all o these techniques make iteasier or customers to discover and purchase offers. The discoveryside o the equation will come to be dominated by video in theshort-term, and in the longer term we will see more immersiveexperiences in augmented reality, holographic environmentsand, ultimately, virtual reality. The purchasing element willgradually become rictionless and ultimately automated. Smartphone and wearable biometrics and digital wallets will makethe action o payment quicker and easier.

For the travel industry, payment transparency and seamlessrevenue management processing between all providers andintermediaries will become ever more important. Options will needto be clarified in the event o change, reunds or cancellations.

For example, in a virtual reality experience, the voice command‘I agree to purchase’ is all that is needed to complete a transaction.In the real world, a seat upgrade is purchased with a single tap othe smartwatch. As riction is reduced, conversions will increase- but only i extremely personalised.

Frictionless purchasing


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“Mobile is, and continues to be, an important channel or Southwest to engage withour customers. Southwest strives to provide dynamic, personalised, and contextual

inormation throughout the travel journey to ensure a Southwest experienceanytime, anywhere, on any device. We are excited to see our mobile channel

continue to grow and evolve as an avenue to surprise and delightour customers beore, during, and afer their travel experience.”

Randy Sloan, Senior VP and Chief Technology Officer, Southwest



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New sales channels

PC/Tablet

Tablet usage will slowly overtake PC usage, and the PC will slowlygo the way o the ax machine. In emerging markets such as Brazil,China and Indonesia, the PC broadly has been skipped. New Internetusers will never use a PC. All tablets will have fingerprint sensorsallowing one-touch transactions, which accelerates the shif ousage and purchasing rom PC to tablets. Tablet experiences willbe video-orientated, providing holographic experiences to helpinspire customers.

Inspiration channels

Smartphone

The smartphone will be the single most important digital displayor the next 10 years. Usage is moving ast rom the PC to thesmartphone, and rom the web to the app. The industry is still inthe midst o this shif, but Internet companies that are movingast, such as Facebook or Airbnb, are already seeing usage andengagement dominated by mobile. Mobile applications with theability to access location and store data offline, such as paymentdetails and travel inormation, will come to completely dominateairline purchases by 2030.

Virtual Reality headset (VR)

The level o immersion achieved by virtual reality meanscustomers will choose to visit VR spaces in comortable and staticsurroundings. VR storeronts or spaces will be as important as awebsite is today or airlines, giving potential customers a chance toexperience trips beore they buy. This ‘try-beore-you-buy’ businessmodel will be standard in the travel industry, and VR is going to bea standard eature o the in-flight entertainment system in 2030.One o the most valuable services in VR will be or travellers torecreate their trips when they return: the ‘re-experience’ market

will be one o the largest new travel markets.

Just like the traveller journey and the purchasing experience, the sales channel landscape will increase in complexity. The bestway to reduce the complexity is to think o sales channels as ‘inspiration’ versus ‘inormation’. Inormation sales channelswill need to be completely personalised, with short-orm content, and ocused on purchasing rather than discovery. Inspirationchannels on the other hand, have larger screens, are more immersive and used as a discovery tool. The customer is generallynot moving, thereore more complex service offerings can be presented.


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Inormation channels

Smartwatch

A smartwatch, such as the Apple Watch or Samsung Gear, willbecome the remote control or the physical world. They will notreplace smartphones, but will be used to complete quick, shorttasks such as hailing a taxi, or scanning a boarding pass. Airlinesare already exploring smartwatch-based boarding passes. Thedisplay is too small to offer complex services, and very distractingto push too many offers. This channel must be used sparingly andonly at extremely relevant times, based on location and need.

Augmented Reality (AR) Glasses

Despite the underwhelming sales o Google Glass, augmentedreality glasses will be an important sales channel by 2030. Furtherminiaturisation is required and issues o privacy resolved beoreAR glasses become commonplace. Augmented reality offers theability to layer digital inormation onto the physical world, providinginormation and valuable experiences. Offers and services will beoverlaid onto real locations offering natural language purchasing.

Advanced robots

Advanced robots, also called service robots, will probably replacesome existing check-in processes and kiosks. Edmonton InternationalAirport in Canada is already testing these service robots. Expect tosee more service robots in airports by 2030, as their abilities in visionand language improve. The Henn-na Hotel in Nagasaki, which openslater in 2015 will be the first hotel completely staffed by robots, andhints at a robotic uture in the travel and hospitality industry. We willsee robots staffing and navigating airports as well as recognisingand interacting with customers. These robots will have access to

real-time airline customer data, so they can provide a personalisedservice. By 2030, these robots will have exceeded human-like vision,to the point that they can understand a customer’s health andemotional state to better serve their needs.


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Data and personalisation

Big Data is a buzzword that has been around or a long time and is

already well understood. With so much data being created, airlinesand their complementary service providers must collect and usethis data to offer a better service. In theory it sounds simple, andmany airlines are already launching programmes to address theirdata needs. As the traveller journey, purchasing experiences andsales channels become ever more complex, data will be ar andaway the most important resource available to an airline:giving the competitive advantage. Those that can effectivelycollect and use data will win, and those that are unable to adapttheir businesses to do so will ail.

In the next few years, the technology industry will move beyondcollecting data to actually creating real value rom the data.A technique called ‘machine learning’ will allow airlines

to have a deeper understanding o their customers andautomate many manual-processes. Netflix already uses thesetechniques to recommend new movies to watch, and Amazon offersother products you might like. These systems will become morepersonalised as machine learning techniques such as deep learningand reinorcement learning become ever more accurate.

We are on an exponential growth curve with the advancemento personalisation and machine learning. Greater, affordablecomputing power and data storage combined with the volume ouser-generated data will allow airlines to start truly personalisingtheir products. Simply put, the more data that can be captured, themost personalised products can be. This means, as long as airlinesare clear on what data they are collecting and offer value or that

data, they should be looking to collect as much as possible.

By 2030, expect to see artificial intelligence (AI) integrated into thetravel agency channel, who would have been authorised to collectdata by the traveller rom a variety o sources including real-timelocation, emotional state, health status, live video-eed, socialupdates, and conversations. The AI will understand the traveller’sneeds and desires, and provide solutions at exactly the right time.100% conversion rates will not be uncommon. This is not a antasyworld: the technological underpinnings o this AI, such as machinevision and natural language processing, are seeing improvementson a weekly basis. This AI could be the traveller’s avourite airline,but it could also be Airbnb, Google, or HipMunk. Competition in2030 is not limited to other airlines or even travel providers;

it extends to include all ‘experience providers’.

New types o travel experiences

Airlines are slowly evolving their thinking and moving deeper into

the travel experience space with new travel services. Last yearThinking like a Retailer showed 79% o travellers preer to buytravel services directly rom recognised brands. I an airline canleverage the trust that is associated with their brand, they will beable to meet the needs o uture travellers. It is critical that airlinesmove away rom an ‘ancillary services’ mindset, which suggeststhese services are a bolt-on to the core flight product. That is truetoday, but to succeed in the uture, airlines must see the flightas just one travel experience that they offer. Not only will thisapproach deliver a more rewarding journey or customers,it will result in stronger brand loyalty, diversification o revenues,and higher profit margins.

The types o services that can be offered to travellers will be

impacted by technological advancements in artificial intelligence,robotics, 3D printing and virtual reality. But ultimately, travellerswill still have the same human needs as they have alwayshad – it is their purchasing behaviour that will vary . The bestway to approach new travel experiences is to understand customerneeds and see how technological developments can address thoseneeds, rather than how a technology can be used to fit existingproducts and business processes. Each uture tribe will havedifferent needs that can be met with different services. Each tribewill have preerences or different experiences. Some travellers willdemand luxury services, whilst others will demand services thatallow them to be productive.

New types o travel experiences may not be products or

experiences at all: there will be huge demand or a trusted traveladvisory service. As the amount o inormation available on everyhotel, destination and service grows, and as more travellerschoose to build their own holidays, travellers will seek reliableadvice. These advisors could be travel agents that have adaptedto the digital world; an extension o airlines’ concierge services intheir requent flyer programmes; or a trusted brand rom anotherindustry. Each tribe’s preerences will be explored urtherin Section 3.

“Singapore Airlines is committed to transparency and trust in the collection and use ocustomer data. The customer is always at the oreront o our minds. We believe that

there will be tremendous value in using Big Data to personalise products. We want ourcustomers to be partners in the personalisation journey, and in doing so,

have a richer and more rewarding travel experience.”

Gerald Tan, Manager Customer Research, Singapore Airlines Limited


19/36


I you apply the components o the evolving traveller experience and touch points (the traveller journey, purchasing experiences, new saleschannels, data and personalisation and new types o traveller experiences) to the six traveller tribes, it then highlights which components

are the most relevant to each o the tribes. The table below provides an ‘at a glance’ overview o this mapping,which will be detailed per tribe in Section 3.

Mapping Future Traveller Tribes to their purchasing behaviour

SimplicitySearchers

RewardHunters

CulturalPurists

EthicalTravellers

ObligationMeeters

Social CapitalSeekers

Opportunityto influence

Purchasingexperience

Touchpointdevices

Degree o personalisation

Level o contact

Types o experience

Convenience Luxury &wellness

Luxury &productivity Local Productivity

AnyInspiration-

centricInormation-

centric

Very low Low Very High Low Medium

Bundle Bundle Both À la carte Bundle

Very high High Very high Very low Very high

Any time

Inspiration-centric

High

Bundle

Medium

Ecological

AnyInormation-

centric

InspireShoppingBooking

Close to timeo use

ShoppingBooking




20/36


Purchasing behaviour: Simplicity Searchers

Inspiration sourcesThis tribe will be most open to personalised offers aligned to theirrequirements, especially rom a trusted brand or supplier whocan provide the perect package to suit their needs. Providersmust be simple, transparent, non-intrusive and understand thetravel requirements o, or example, a amily o five wantinginterconnecting rooms.

Degree o personalisationSimplicity Searchers will expect extremely high levels opersonalisation; they consider simplicity to be a reward worthgiving up data or. Airlines and travel providers should build strongrelationships with Simplicity Searchers, especially during post-tripperiods in order to build up data on the individual. This will allowpersonalised bundles to be ready during the inspiration stagewithout increasing the purchasing riction or the traveller byhaving to give more preerences at the time o booking.

Opportunity to influenceThe best time to reach this tribe is during the inspiration andshopping stages o the journey, as the interest in additionalservices will decrease afer Simplicity Searchers have bookedtheir trip. In act, individuals belonging to this tribe could beirritated by intrusive offerings afer the booking stage. They wanteverything to be planned and simple, additional offers will beseen as annoying and are likely to damage the brand perception.They will expect their needs, e.g. that they are travelling as aamily group, to be understood without having to explain.

Purchasing experiencesThis tribe is the most open to truly personalised bundles.‘Frictionless’ purchasing is critical, whilst 24/7 customer interactionshould be severely limited. Airlines and their complementaryservice providers should ocus on ull end-to-end travel packages,as Simplicity Searchers are more prepared to pay extra to removethe hassle rom their trip than others. It is with this tribe that

airlines can become a true ‘travel experience provider’ instead o just another airline. Purchasing the bundle needs to be simple, asthis tribe wants ewer choices and wants to make decisions quicklyand easily using voice or gesture interaces. Customer interactionmust be limited afer the customer has purchased the bundle: theonly customer interaction should be or helpul inormation usingnon-intrusive notifications such as a light on a wearable device.

Touchpoint devicesTravel providers will reach customers by offering immersivepurchasing experiences. This tribe wants to be shown a video orvirtual reality experience that aggregates and simplifies the entiretrip. Simplicity Searchers will not buy a service on a tablet, andthen another service using the service robots at check-in, and then

another service using their AR glasses. That is too complicated orthem. Rather, they will want a single channel to buy everything,a ‘one-stop-shop’. The amount o money being spent in onetransaction will mean this tribe will want the large displayo a tablet, television or virtual reality headset.

Understanding the different purchasing behaviours o each tribe will allow airlines

and complementary travel providers to more effectively meet their needs.

Section 3 Purchasing behaviour is a key differentiator

Simplicity Searchers - Purchasing behaviour at a glance

Close to timeo use

Inspire Shopping Booking

Bundle À la carte

Very low

Very low

Convenience

Low

Low

Local

Medium

Medium

Luxury &productivity

High

High

Very high

Very high

Productivity Ecological



Touchpointdevices


Level o contact

Types o experience

Any time

Both

Inspiration-centric Inormation-centric Any

Luxury &wellness


21/36

Types o travel experienceConvenience is the key word or this tribe. Afer 2020, autonomousvehicle pick-up and drop-off at both home and destination willremove the hassle o public transport, parking and timing anxiety.Even today, airlines could offer a service that includes a taxiservice such as Uber, GrabTaxi or Kuaidi Dache in China, to pick thetraveller up at their home and take them to the airport. Check-incan be completed using geo-encing technologies, so travellers cango straight rom the taxi to security. There is no need to even opena mobile app; this is truly rictionless travelling. Augmented realityapplications to help this tribe will include real-time translation,navigation, and discovery help.

Luggage is another pain-point or this tribe. From 2020 onwards,a valuable proposition will be the pick-up o baggage rom thetaxi by a service robot and placement into a taxi at the destination

airport. The size and shape o suitcases is likely to standardise tomake the robotic pick-up more efficient, much in the same waythat the shipping container standardised to increase efficiencies.The pain-points o carrying luggage will gradually be eliminated.For requent flyers, airlines could provide a suitcase o clothing andtoiletries at the traveller’s destination hotel, which could be usedor the duration o the stay and lef behind. By 2030, 3D-printers inthe hotel room will mean travellers will print their new clothes romvirtual design stores and even scan their own clothing at home tobe 3D printed on arrival.


“No one realises how beautiul

it is to travel until he comes homeand rests his head on his old,amiliar pillow.”Lin Yutang


22/36

Inspiration sourcesThis tribe wants to know about special experiences, locations andplaces to stay that are a notch above the rest. Styles o travelcan vary significantly, rom a relaxation retreat to an exhilaratingexperience or event. They are turned off by mass-market offers,preerring to avoid the crowds and turn to or pay or expert adviceand concierge services to select the right choice.

Degree o personalisationReward Hunters are more than willing to provide data that canbe used to personalise service offerings. However, they are verydiscerning and will only provide data to trusted sources. They will

allow a trusted concierge service or digital personal assistantto use as much personal data as they can capture. This will berom their connected home devices such as a Nest thermostat orconnected ridge, smartphone and wearable data to be collected tobetter understand their own nutrition, fitness and overall wellbeing.As long as there is a clear benefit to providing the data, this tribewill download an app and give permissions.

Opportunity to influenceThis tribe will understand better than most the value oswitching off rom intrusive technology and being at one with theenvironment and nature. Reward Hunters will value ‘being in themoment’, and will not want to be slaves to technology.This means they will be most open to service offerings andtargeted advertisements during the inspiration, shopping andbooking stages o the journey. They will be open to notifications inthe run-up to the trip, but once they are on the plane, memberso this tribe will not want to be bothered.

Purchasing experiencesPersonalised bundling will be extremely effective with this tribe.Reward Hunters are happy to provide data i the airline is able torespond by creating extremely tai lored bundles. Travel providersneed to be very careul when contacting members o this tribe anduse methods that are as non-intrusive as possible, which must bevery personalised. Wearable vibration and notification lights will beeffective. ‘Frictionless’ purchasing will be adopted extremely quicklyas this tribe just wants technology to work and get out o the way;voice purchases will be especially prevalent.

Touchpoint devices

Smartphones will be the most important sales channel or thistribe. Reward Hunters will be big users o discreet wearables andsmart abrics, and want technology to provide relevant inormationbut not get in the way. As travel search and discovery becomeeven more digital, service robots and artificially intelligent agentswill be considered ‘mass market’. There will be a role or a humanconcierge providing a human-touch to the travel experience.

Types o travel experienceTravel providers should be looking to meet this tribe’s needs withluxury and wellness products as well as memorable experiences.At the inspiration and post-trip stage, destination spa days, yogaclasses and in-demand restaurant seats would be good servicesto push. Reward Hunters would be interested in a spiritual journeyand/or location. This could include an adventure such as climbingMount Kilimanjaro in Tanzania or a spiritual journey such as visitingVaranasi in India. Members o this tribe want more than reward inthe narrow sense, they are looking or more than just pampering,and they want to be taken care o spiritually and physically.

Purchasing behaviour: Reward Hunters


Reward Hunters - Purchasing behaviour at a glance

Close to timeo use


Bundle À la carte

Very low

Very low

Convenience

Low

Low

Local

Medium

Medium


High

High

Very high

Very high




Touchpointdevices


Level o contact

Types o experience

Any time

Both


Luxury &wellness


23/36


VIP services should be pushed to this tribe. Improved VIP asttrack access, lounge and ‘straight to plane’ services will sellwell with this tribe. Over the next ew years, driven by the AppleWatch and new types o wearable devices such as smartwatches,Reward Hunters will become used to measuring their physiologicalsigns. From 2020 onwards, on-board healthy ood and drinksbased on preerences and real-time nutritional data would be acompelling proposition or airlines. They should collect historical

and real-time physiological signals such as blood pressure, heartrate, temperature, hydration and anti-oxidant status to providepersonalised and timely on board ood and drink. Members o thistribe will consider quality sleep to be a core part o their routines;smart blankets that use physiological signals to wake up theindividual at the optimal point, and 3D-printed earplugs withnoise-cancelling capabilities, moulded to the traveller’s ears,would be strong service offerings.

“Travel is theonly thing you buy

that makesyou richer.”

Unknown


24/36


Inspiration sourcesThis tribe wants to be seen as having the kinds o travel experiencestheir peers and network groups are trending and tweeting about.Social Capital Seekers will be heavily influenced by their social mediaconnections, and will gain insight and inspiration rom riends or‘celebrity’ recommendations on Instagram, Pinterest and Facebook.They will potentially list and share their top next destinations inpreparation or finding the right offer.

Degree o personalisationPersonalisation is core to this tribe’s existence. Social CapitalSeekers will want every single service they use to be personalised

as much as possible. Members o this tribe will invest in tools thatenable more o their lives to be captured and quantified or theirown benefit. They will think nothing o installing connected homedevices to better understand their energy usage or when they needto order more ood. They will be the first to invest in smart clothingthat measures physiological signals so that healthcare providerscan offer personalised healthcare. Privacy will be seen as an assetthey trade to receive better services.

Opportunity to influenceThey will be open to new services at any time during their journey,as long as the service increases their social capital. Contextualrelevant services pushed based on location, time and preerenceswill be especially valuable. The inspiration and booking stageswill be very important to offer a personalised bundle, but also theairport and on-board stages will be important. The Social CapitalSeeker will certainly be interested in priority treatment that canbe captured and shared; cabin upgrades are very much the HolyGrail or this tribe.

Purchasing experiences

Airlines will have a tremendous amount o data about thesetravellers and so they will be able to create a truly personal bundleo services or the Social Capital Seeker. Unlike the SimplicitySearchers though, this tribe is extremely open to continuedcontact. As long as offers are not completely irrelevant - andthey should never be - this tribe is less likely than others to beirritated by airline contact. They live their lives in the digital andvirtual worlds and notifications are deeply entrenched in their lives.‘Frictionless’ purchasing is as important to this tribe as any other;they will be comortable across all new techniques including voice,gesture, touch, and by 2030 some will have tried brain-computinginteraces, devices that enable actions through the powero thought.

Touchpoint devicesSocial Capital Seekers are extremely comortable using any fixed ormobile digital channel. They will be happy interacting with servicerobots as much as service avatars in virtual spaces. Augmentedreality (AR) applications will be adopted rapidly by this group. Theability to layer social data and take photos instantly using aheads-up display provides an even easier and quicker way to sharethan a smartphone. AR-based service offerings will work particularlywell with this tribe. Virtual reality stores will be used extensively tovirtually experience a travel destination and offer beore purchasing,this will become as much a part o the purchasing behaviour asusing review sites are or today’s travellers.

Purchasing behaviour: Social Capital Seekers

Social Capital Seekers - Purchasing behaviour at a glance

Close to timeo use


Bundle À la carte

Very low

Very low

Convenience

Low

Low

Local

Medium

Medium


High

High

Very high

Very high




Touchpointdevices


Level o contact

Types o experience

Any time

Both


Luxury &wellness


25/36


Types o travel experienceThe key to targeting this tribe is to offer services that willenhance social capital. Creating a sense o scarcity works todayand it will continue to work in the uture. Any product that islimited, rare or expensive will be in demand by this tribe. Cabinupdates, champagne, and helicopter rides will all be valuable.We can already see Social Capital Seekers documenting theirtravel experiences today: or example, FunForLouis is a Youtubechannel eaturing Louis Cole, a vlogger travelling the world andbroadcasting his experiences via social media to a hugeonline ollowing.

Airlines should utilise this desire to gain social capital byadvocating ‘sharable moments’ prior to take-off or on the runwaywhen the plane has landed.

Beyond the experience itsel, airlines also need to make it easyor Social Capital Seekers to share and network. Always-onconnectivity will always be extremely important, and this tribewill likely pay or super ast international network access allowingthem to live stream and record every second o their trip. TodayFacebook ‘likes’ generate social capital; tomorrow every move willbe ‘liked’ and commented on in real-time. Social Capital Seekerswill ask: ‘do you want to visit the museum or go to watch a ootballmatch?’ The traveller’s ollowers will vote and watch what happensnext. This interactive video broadcasting will be one o the mostimportant activities or this tribe on their trips. This service is ina nascent stage with companies such as Periscope and MeerKatalready enabling people to livestream their lives.

“By givingpeoplethe powerto share,we’re makingthe world moretransparent.” Mark Zuckerberg


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Inspiration sourcesThe Cultural Purist gathers stimulus rom liestyle communicationmedia such as TV documentaries; YouTube and Vimeouser-generated travel videos; ood and nature programmes andblogs; and books and films that share an insight into a diverseand authentic travel destination. They seek to be inspired by travelexperiences that will allow them to immerse themselves into anotherway o lie or the period o travel, whether this is a ew daysor a sabbatical.

Degree o personalisationCultural Purists do not want vast amounts o data used to

personalise services. In act, as a tribe concerned about theincreasing personalisation o services and advertisementspreventing true discovery, members o this tribe do not want theirpast experiences or preerences to guide their uture plans. Froman airline perspective, it will be difficult to gather and use data orthis tribe. Services will have to be varied and flexible ratherthan truly personal.

Opportunity to influenceAt the opposite end o the spectrum to the Simplicity Searchers,members o this tribe will be open to new services at everymoment o their journey. They will not book all o their travel atthe booking stage, instead they will book the minimal amount

possible, building into their trip as much reedom as they canand making plans as close to the event as possible. The airportpresents opportunities to offer services that can be redeemedimmediately such as restaurants, but the cultural purist doesn’tlike to spend much time in the airport. The on-trip phase is themost important stage or this tribe. However, ensuring relevancewill be difficult or the airline without vast amounts o data.

Purchasing experiencesProduct bundling will not work with this tribe. Cultural Purists willavoid bundles in avour o à la carte services offered at the pointo use. 24/7 customer contact is possible with this tribe, but arisky strategy with limited data. They want authentic experiencesand don’t want technology to get in the way. Airlines should reachout cautiously but only through non-attention capturing channelssuch as wearable lights or in-stream Facebook or Twitter updates.‘Frictionless’ purchasing is as important to this tribe as any other.Technology should be invisible and not interere with experiences.Voice purchasing and biometric authorisation will be valuable,reducing the time and attention needed to make purchases.

Touchpoint devicesSales channels are likely to remain similar to today. This tribe will,as much as possible, avoid robotic channels and preer the humantouch. This may extend to the ‘old school’ approach o picking upthe phone and calling hotels or service providers directly. Indirectchannels will be used extensively, human travel agents that canprovide local knowledge and off the beaten track experiencesare going to be in high-demand or this tribe. Virtual realityexperiences and augmented reality applications will be avoided.The smartphone will, o course, be widely used, but these travellersmay use it less or travel discovery, instead they will preer localguidance and spontaneity.

Purchasing behaviour: Cultural Purists

Cultural Purists - Purchasing behaviour at a glance

Close to timeo use


Bundle À la carte

Very low

Very low

Convenience

Low

Low

Local

Medium

Medium


High

High

Very high

Very high




Touchpointdevices


Level o contact

Types o experience

Any time

Both


Luxury &wellness


27/36

“The ool who travelled is better offthan the wise man who stayedat home.”Rashi


Types o travel experienceThe keywords or this traveller are flexibility and spontaneity. Travelproviders should ocus on delivering flexible options allowing orflight and service changes, as well as reducing the number odecisions the traveller has to make at the booking stage. It willbe utile to offer ‘local’ experiences rom a set menu, as thesetravellers will avoid any ‘corporate’ or ‘pre-packaged’ experiences.The airline should ocus on providing a canvas or this tribe topaint on. Discovery needs to be spontaneous, so the airline shouldprovide simple à la carte services available wheneverand wherever.

The sharing economy will play a big role in this tribe’s travel

experience. Cultural Purists will want to remove any barriers

between themselves and the local experience. They will be heavyusers o Airbnb equivalents and platorms that bring travellersand sellers o local services closer together. Motorbike tours romlocal riders such as XO motorbike tours in Ho Chi Minh City will bepreerred over large bus tours. Yelp or Trip Advisor scores will carryless weight than ood recommendations rom local Airbnb hosts.This tribe will not always want to use translation or navigationapps, they consider the best parts o the travel experience to beound in getting lost and having random experiences. At home,language courses months beore a summer holiday would appealgreatly, along with other experiences that will increasecultural proximity.


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Inspiration sourcesEthical Travellers will select only organisations and travel optionsthat have published details o their social awareness on theenvironment, their working or purchasing policy, and their good trackrecord on corporate social responsibility. Recommendations romcompanies such as Responsible Travel and other trusted advisors willbe valuable. Members o this tribe will not avoid air travel but seekto either offset through activities such as micro-volunteering, or will

select alternative modes o transport or accommodation.

Degree o personalisationEthical Travellers are defined by the act that their purchasing

behaviours reflect their core ethical values. These values are nothomogenous; some travellers will consider some issues moreimportant than others. It will be important to understand thenuances o Ethical Travellers and understand what issues mattermost to each traveller. This will be made possible by using socialdata and machine learning techniques allowing or predictiveanalytics. Crucially, this tribe will value transparency and personaldecision-making; travel providers must be explicit when and howthey are using traveller data.

Opportunity to influenceEthical Travellers already have a clear set o values and world-view that guide their decisions. Members o this tribe will alreadyhave a very clear idea as to the destinations and activities theywant to avoid. When participating in any activities, they will wantto understand associated carbon emissions, energy efficiencylevels, and exactly where their money will go. The amount odetail this group requires will mean they will make decisionsduring the planning and booking stages and they will be less

open to spontaneous purchases while they are on the move.They want to think through the ethical, environmental andpolitical consequences o their actions.

Purchasing experiencesThey have a set o principles that guide their purchasing behaviour,making bundling a compelling proposition or this group. À la carteofferings will certainly be considered, but this tribe will be moreinterested in bundles tailored to their ethical principles offeredat the planning and booking stages. A bundle containing aneco-retreat, with a volunteering experience and dining at a ruralcommune, would be great or an environmentally conscious ethicaltraveller. This tribe has no problem with regular contact rom the

airline via the smartphone or wearable, as long as the contactdelivers relevant offers or inormation.

Touchpoint devicesFixed channels will be more widely used than mobile channels, asmembers o this tribe will want time to consider their decisions.Some Ethical Travellers may decide that service robots areunethical because they continue to drive more and more peopleinto unemployment. Other travellers may consider service robots tobe extremely energy efficient and their impact on the environmentis actually less than a human in a similar service role. Beyond theethical and societal response to the increased role o robotics,Ethical Travellers will generally be open to all sales channels.

Virtual reality offers huge potential to reduce human impact on theenvironment and will be widely used by this tribe to plan and bookholidays, and even to replace physical holidays completely.

Purchasing behaviour: Ethical Travellers

Ethical Travellers - Purchasing behaviour at a glance

Close to timeo use


Bundle À la carte

Very low

Very low

Convenience

Low

Low

Local

Medium

Medium


High

High

Very high

Very high




Touchpointdevices


Level o contact

Types o experience

Any time

Both


Luxury &wellness


29/36


“Travel brings power andlove back to your lie.”

Rumi

Types o travel experienceThe first consideration or this tribe is their impact on others andthe environment. An artificially intelligent agent able to curatean environmentally neutral travel experience would appeal tothis tribe. Travel providers today should ocus on environmentallyriendly and economically sustainable services and carbon-offsetting services to appeal to this tribe. Volunteering workbundled with a holiday could be appealing; any service that canbe seen to ‘give back to the local community’ is a good fit. Forexample, a two-week holiday in Guatemala could consist o oneweek helping on the conservation o Lake Atitlan and one weekrelaxing on the beach o Monterrico.

By 2030, 3D printing services will be especially important tothis tribe as they attempt to avoid the global logistics and

transportation supply chain. Local 3D-printing services willprovide all manner o physical goods and oods that userecyclable materials and have an extremely limited impact on theenvironment. Airlines may not always be able to offer new servicesto meet the needs o this tribe, but understanding what motivatesthis tribe will allow more effective messaging and communication.Airlines should ocus on their Corporate Social Responsibility (CSR)credentials with this tribe. Ethical Travellers want to understandtheir impact on the world, and so simply helping this tribe compareand choose the least detrimental flight or service would meeta real pain-point.


30/36


Inspiration sourcesObligation Meeters’ travel dates and locations are primarily pre-determined by work, amily, religious or holiday commitments. Basedon their unique profile and characteristics rom the other five tribesthey will seek to learn, or be guided, to understand the optionsavailable to tailor their travel and achieve the best experience.Corporate travellers will be seeking flexibility in their corporate travelpolicy to personally tailor their travel plans within defined budgetsor other parameters.

Degree o personalisationObligation Meeters require the most personalisation o any o

the tribes, due to limited flexibility and specific pre-defined travelrequirements. Without a high degree o customer relationshipmanagement data, a travel provider will risk poorly timed andirrelevant service offerings. Obligation Meeters are uniquelybalancing between reedom and restraint. Unlike the othertribes, they have a value-system rom which it is relatively easyto iner preerence; this tribe do not have a core value, rather,they have an objective. The motivation to travel is different orevery traveller, and so an inerence is extremely risky. A travellercould stop over to watch a sporting event on a Saturday, travelon Sunday afernoon and arrive in time or a Monday morningbusiness meeting. It is critical to understand this in order toeffectively sell to the traveller. This tribe is most likely to mixbusiness and pleasure and engage in ‘bleisure’ travel.

Opportunity to influenceThis tribe wants extremely relevant services to be offered upat the shopping and booking stage. They want the bundle to betailored and expect the initial bundle to be right, rather than tokeep adding extras. A business traveller, or example, would want

“Adventure may hurt you butmonotony will kill you.”

Shahir Zag

Purchasing behaviour: Obligation Meeters

ast track, priority boarding, a checked bag, stand by optionsand on-board Wi-Fi. This group is also most likely to use TravelManagement Companies (TMCs) or Meetings and Conerenceservices (MICE), so would want to understand how to bestmanage the flexibility o work travel and add the personal leisureextras as a stand alone component.

Purchasing experiencesA personalised bundle will be exceptionally valuable to this tribe,i airlines and travel providers can do this effectively. It will becomplicated to offer experiences that enable the traveller to meetthe obligation and another set o needs at the same time, butthe rewards will be worth it. ‘Frictionless’ purchasing will again be

critical, as ofen obligations are shared with riends or amily, andso key to meeting this tribe’s needs is grouped booking and billing.

Touchpoint devicesThe best sales channel or this tribe will be the smartphone. Theobligation is clear, and so the destination and dates are alreadyset. The traveller does not need inspiration, just a channel throughwhich to book the travel. More immersive fixed displays such asvirtual reality, tablets and holography are more appropriate ordiscovery. Mobile channels are perect or Obligation Meeters.

Obligation Meeters - Purchasing behaviour at a glance

Close to timeo use


Bundle À la carte

Very low

Very low

Convenience

Low

Low

Local

Medium

Medium


High

High

Very high

Very high




Touchpointdevices


Level o contact

Types o experience

Any time

Both


Luxury &wellness


31/36


Types o travel experienceThe core pain point or this tribe is timing anxiety. ObligationMeeters will be prepared to pay extra to remove anxiety. This canbe done in a similar way as or Simplicity Searchers, by takingcare o the whole travel journey. This should involve autonomousor connected cars, allowing the airline to manage all timings andguarantee the traveller will arrive at their intended obligation ontime and prepared.

This tribe is time-poor, Obligation Meeters do not want to gothrough the hassle o discovery and research. They will be open toà la carte offerings and want to fill time around their obligation.They would value a service that suggested the best restaurant

or bar based on their preerences and location. A service such as

Google Now, a contextually relevant mobile assistant, is an earlyexample o how this will work in the uture. Citymapper, a UK-based travel app, seeks to make it easier or customers to movearound cities, using data rom all orms o transit to offer thebest route to a chosen destination.

In the case o business travellers, international super-astconnectivity will be a must or virtual reality and holographicmeetings. A mobile service could state i the existing connectionwas ast enough or a voice call, video call, or a virtual realitymeeting, and show the best connections in the area. In the short-term, airlines must ensure they provide ast Internet in-flight orbusiness travellers who want to be as productive on the flight as

they are in the office.


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Context-aware emails76% o travellers eel that acontext-aware email wouldpersuade them to make apurchase.

Peer to peer33% o travellers areinfluenced by peers andsocial media when theypurchase travel.

Frequent flyer / LoyaltyEnabling travellers to shopwith loyalty points canincrease repeat sales by40-50%.

Big data(Market o one)Basket size can increase by€30-35 i traveller data isused to enable highly relevantpersonalised packages, takenrom all areas o personal,proessional and consumerlives to create a “marketo one”.

Traveller affinity

Implementing tools toenable flight searchwithout speciying dates ordestinations or travellerswith flexibility, based on theirinterests and preerences.

Rich mediaImprovements in the userinterace (UI), such asembedded videos can increaseconversion rate by up to 69%.

Multi-channelshopping behaviourResearch shows that 70%o airline.com visitors arereerred by an intermediarysource (eg. OTA, metasearch).

Comparison shoppingPower o brand: Researchshows that 79% o travellerspreer to buy travel servicesdirectly rom recognisedbrands.

Inormation overload “Option shock” is driving amarket or search enginesand agents to condense andpackage choices into bundlesto acilitate comparison.

Fare amiliesPackaging services in a areamily bundle with relevantancillary services packageddynamically can increasebasket size by €14-19.

Bundled offers50% o travellers would

consider purchasing servicesas part o a value-addedbundle, making it the mostpopular option.

À la carte offersÀ la carte ancillary servicesoffer the opportunity toincrease basket size by€5-10, generating 34%traveller interest.

Multi-leg optionsSimple pricing displays ormulti-leg flights, using asingle, code-share or multiplecarriers, increases purchasingand customer satisaction.

Multi-currency pricingsOn average 35% o travellerseel more secure aboutbuying online i the price isdisplayed in local currency.However, 45% o airlines bill intheir native currency, not thecustomer’s.

Optimised userinterace (UI)10-20% conversion rateimprovement by optimisingall channel user interaces.47% o travellers purchaseadditional airline servicesdirectly online.

Cross-sellThe booking stage is theprimary time to cross-sellbig ticket items that requirethought and comparison,such as hotels, insurance, carrental, airport services andentertainment.

Complementary promotionsPromotions can enrich thebooking experience withthird party deals, increasingancillary revenues by 10-15%.

Channel optimisationBusiness travel can driveapproximately 40% higherticket revenue, o which 60%is via travel managementchannels, accounting or close

to 70% o all premium classbookings.

Payment security84% o travellers say thatsecurity is integral to theironline experience when itcomes to booking flights.

Mobile paymentsBy 2017, 30% o mobileusers in France, Germany,Italy, Spain, the Netherlands,UK and Sweden are predictedto carry out purchases viamobile devices.

Time to think“Time to think” providesa valued option or thetraveller and incrementalrevenue to the airline.

Data privacy50% o travellers are willing togive airlines permission to usetheir personal data to providespecial offers and discounts.

Push notifications49% o travellers would bepersuaded to make a purchaseo relevant offers rom mobilepush notifications.

Door to departureLast minute mobile offersor ground transport toairport, parking, valetservice, advanced seatselection, special orupgraded meal selection(24h+ beore departure)are best or low-valueservices that will beconsumed quickly on theday o departure.

RebookingVoluntary ticketexchanges provide anexcellent opportunity toupsell and cross-sell tothe customer in the evento unplanned changes.

As uture traveller tribe purchasing habits evolve, travel providers need to respond and build a more rewarding and

connected traveller journey, rom ‘inspiring to arriving home’.

Implementing appropriate solutions and services at each stage o the traveller journey will be crucial to success. Theollowing chart provides examples and potential benefits o various strategies to shape the uture traveller journey.

Shaping the uture traveller journey

aferbooking

24/48hBookShopInspire beoredeparture

48/24h


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Corporate travellerrecognitionAutomated recognition ovaluable corporate travellersbeing rewarded with priorityupgrades, preerred cabinseating, ast track access andpriority baggage handling.

UpsellUpselling to a premium cabinat a discount or using lessmileage, during check-inensures monetisation o emptypremium seats.

Non-peak time offersAdditional ancillary servicessuch as ast track security,excess baggage, lounge accessduring non-peak hours canbe offered using perect pricediscrimination techniques.

Disruption managementImprove automated disruptionmanagement via mobiletouch points using profiledata (eg. value or urgencyto acilitate the rebooking o

alternative flights).

Passenger volume orecastPredicting expectedpassenger volumes goingthrough a terminal at anygiven time allows better crowdmanagement o the securitylines to be opened to avoid longqueues, as well as to extendduty-ree shopping hours.

Process automationImprove check-in, securityand boarding processesvia automated sel-servicedevices, iris scanners, barcode readers and auto-boarding gates.

Airport shoppingPersonalised andcontextualised airportmerchandising and otherthird-party deals can increaseancillary revenue by 10-15%.

Near FieldCommunication (NFC)Integrate airport maps, gateinormation, key airportacilities and partners shop

promotions into mobilesolutions to enhance thetraveller experience beoreboarding the flight.

Duty FreeIntegration o advancedduty-ree purchase orcollection on arrival toincrease sales, reduce luggageand avoid liquid securityrestrictions.

In-flightFacilitate last minute upgradeoptions done on board and theintegration o ancillary salesinto the in-flight entertainmentsystem. 40% o passengerschoose to buy ood or drinkson their flight.

Arrival to final destinationShare pre-defined data andpassenger profile inormationwith complimentary businesspartners to ensure seamlessconnection and servicedelivery o:

_ Transportation. Car rental, taxi services,side trip by rail or erry andother transportation types.

_ Accommodation. Hotel, bed andbreakast, apart-hotels.

_ Experiences.Destination servicessuch as theme parks,events, concerts, shows

and tours.

Flight changesExtending holidays is noweasier with sel-servicerebooking via the mobilechannel. Airlines can alsooffer earlier flight optionsto passengers who wish toleave earlier, thus reeing upinventory or later flights.

Reviews & ratings90% o people surveyed saidthat positive online reviewsinfluenced their buyingdecision, while 86% said thattheir buying decisions wereinfluenced by negative reviews.

Customer RelationshipManagement (CRM)Integrating user generatedreviews into CRM to manageand respond effectively tocustomer satisaction issues.

Customer ExperienceManagement (CEM)Incorporating travellereedback into CEM solutionsto record ‘total customervalue’ or previous issues (eg.delays) which can then helpdefine potential complimentaryupgrades or services as ameans o compensation oruture bookings.

Next trip…?25% o travellers consider thebest time to plan their next trip

is when they arrive home roma journey.

Airport On-trip Post-tripCheck-in

“Once you have travelled, the voyage never ends...The mind can never break off rom the journey.”

Pat Conroy

I you would like to know more about the traveller tribes or merchandising

ramework outlined in this report pleasecontact your Amadeus Account Manager.


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This paper has sought to provide a ramework or advanced segmentation strategies as airlines and travel providers in the global traveleco-system consider how to strategically build their organisations to serve the traveller o the uture in the best way possible. What is clearrom this report and the Future Traveller Tribes 2030: Understanding tomorrow’s traveller report is that traveller motivations are changingand being able to deliver a more rewarding journey experience will require an intricate understanding o how that change is taking shape.

Is your organisation interested in capturing the imagination o Reward Hunters with a highly personalised luxury offer, delivered via a digitalconcierge during the booking phase? Or interested in building a business based on Simplicity Searchers’ desire or mass market, bundled andpersonalised offers, delivered via a travel agent? Either way, understanding the ‘What, When, Where, Who and How’ is critical to improvingboth revenues and the travel experience.

As the travel industry continues its journey to becoming a truly customer-experience driven sector the ability o brands to link their product,merchandising, marketing and digital strategies to a behavioural understanding o travellers will be a key differentiator. Travel providers that

are able to appreciate the behavioural motivations o travellers and effectively merchandise against those motivations, at each discreet stageo the traveller journey, will be in a much stronger position.

This approach to segmentation and strategic planning requires an evolution in terms o how the industry views travellers and their needs.We encourage you to consider how this ramework can help your organisation to think differently about traveller purchasingmotivations and how to build a more rewarding customer journey, both now and into the future .

Conclusion Building a more rewarding customer journey

Documents

Amadeus Traveller Tribes 2030 Airline It