May 1, 2007
 
The real stars in Disney’s hometown of Anaheim, California, this past week weren’t Mickey and Minnie, but the 5,000 attendees at the Travel Industry Association’s (TIA) 39th annual International Pow Wow.
TIA claims that Pow Wow is the “premier international marketplace and the largest generator of Visit USA travel” in the world. Those who were part of last week’s event are likely to agree.
First-time visitors to Pow Wow find it is as dissimilar to ITB Berlin, London’s World Travel Market and country-specific shows such as Mexico’s Tianguis, as Berlin is to London, Acapulco or Anaheim itself.
The difference: Pow Wow is all about business. It avoids the carnival atmosphere and awards for best booths, best videos and best of whatever that is now standard in other shows, and instead simply brings together buyers and suppliers to meet, negotiate and do deals. It’s a formula that works well.
According to the TIA, this year’s attendees included more than 1,000 U. S. travel organizations and nearly 1,500 international and domestic buyers.  It’s estimated the event will generate more than $3.5 billion in travel to the U.S. over the next three years
While the show itself showcases the bright side of the U.S. tourism industry, it also is a much-needed stage for highlighting both national and industry issues that need fixing. Among this year’s top topics:  America’s growing worldwide reputation as an inhospitable destination, and the U.S. government’s paltry marketing and promotional efforts. How many Americans know, for example, that Turkey now spends 20 times more ­ and Malaysia nearly 30 times more ­ in promoting tourism than the U.S. government?
From a more local promotional perspective, Anaheim’s Orange County is expected to realize a substantial return for its initial $5 million investment in hosting this year’s event – approximately $350 million is projected to pour into the region over the next 2-3 years as a result of it flaunting itself to this international audience. Even in tourism-rich California that’s no Minnie hunk of change.
Below are some highlights from Pow Wow 2007 worth noting.
 
The keynote luncheon speech at Pow Wow 2007, delivered by Matt Hart, Chief Operating Officer, Hilton Hotels Corporation, highlights some valid issues currently impacting the U.S. tourism industry.
“Unfortunately, the U.S. has been developing a reputation for being un-welcoming to international inbound visitors. It’s manifested in everything from slow visa processing to confusing airport signage, from weak marketing outside our country to slow-as-molasses airport security processing points. We’re losing international travelers to other countries in huge proportions. The U.S. market share of Global Travel has gone from 7.5% in 2000 to 6.1% in 2006.
I think the question at hand for this group is: Are we doing everything we can to reverse that trend and welcome travelers into the U.S. Well, I think the answer is… it depends.
For instance, I grew up in New York – lived there for 30 years. I’ve traveled to New York continually since then and during my entire lifetime, JFK has been under construction. Everyone is on edge because the airport is always a mess! But here’s the good news. JFK is included in the Blueprint to Discover America’s Model Ports of Entry Project. Let’s hope that works.
What about those travelers who have decided to come into America? Except for Starbucks, no one likes to stand in lines. Yet how long should a visitor have to wait in line to come into our country? 15 minutes – 30 minutes – over an hour? The answer is it depends. It depends on the airport, the time of day, and the flight schedules. But it seems to me that waiting longer than 15 minutes just isn’t hospitable.”
You can access the entire speech by clicking here:
 
The Los Angeles Times reports from the Travel Industry Assn.'s International Pow Wow, in Anaheim, California, this year, and connects the country's declining share of the international travel business to America's rather paltry efforts to promote itself internationally as a travel destination.
There are a few bright spots, reports Public Diplomacy Watch: New York and Las Vegas have been attracting increasing numbers of international tourists. The two cities spend tens of millions every year to promote themselves and have tourist offices in several countries.
For its part, the U.S. Department of Commerce has budgeted $3.9 million this year for marketing the country to international tourists. Malaysia will spend $117.9 million; Tunisia, $43 million; and Turkey, $80 million.
The Travel Advance newsletter from the same event reports that the Discover America Partnership, a coalition of American business leaders in the travel sector, hopes to raise $200 million for a multi-year major marketing and public relations campaign, with money coming from both government and industry sources, although "the funding mechanism has yet to be worked out."
International travel is America's single biggest-potential public diplomacy tool - increasing the number of international visitors to the United States by millions of people over the next few years means millions more people returning to their home countries to share their experiences of America - good or bad - with their family and associates.
Travel Advance says the envisioned marketing campaign would not just promote America's various attractions but also include what it described as a "comprehensive marketing and communications initiative to change the negative perception toward the U.S. entry experience."
That's an important element of the proposed effort. While some will question whether the U.S. government ought to be involved in a tourism promotion campaign, it's crystal clear that the government should play a role in informing international travelers of changes and improvements to the visa application process and the border-entry process. Dry text on a State Department website simply can't compete with the word-of-mouth marketing by millions of international visitors.
 
Anaheim It's not the largest convention to come to town. But the International Pow Wow is expected to be the most lucrative, reports The Orange County Register. The Travel Industry Association of America's annual trade show draws international tour operators to broker deals with U.S. travel providers, such as hotels and bus companies.
By hosting the event, the Orange County area is expected to get the benefit of flaunting its tourism perks – theme parks, beaches, shopping – to about 5,000 people who promote the destination throughout the world. In the next two to three years, about $350 million is expected to pour into the region as a result of the five-day event being held at the Anaheim Convention Center for the first time.
That's more than the largest annual convention generates: The International Music Products Association, or NAMM Show, this year drew about $70 million with 85,000 people.
"It's a wonderful opportunity for Anaheim to showcase what the city has to offer and what Orange County has to offer to the world," said Cathy Keefe, the association's spokeswoman.
 
Foreign travel reporters who made their way to Anaheim for an industry conference this week know why international travel to this country hasn't recovered since 9/11: It's too much of a hassle.
Travel and tourism officials held a media event Tuesday at the Travel Industry Assn.'s International Pow Wow to promise to do a better job rolling out the welcome mat. They were upstaged by reporters who told horror stories about protracted visa application processes and lengthy airport security lines says the Los Angeles Times.
German public radio's Rudiger Edelmann said he spent 95 minutes in a winding queue leading to an understaffed immigration desk in Chicago and, even with a two-hour layover, missed his flight and was separated from his luggage. With those kinds of headaches, a visitor would form a negative impression, Edelmann said, joking: "He would be to the United States two times ­ the first and the last time."
The story didn't surprise Jay Rasulo, chairman of Walt Disney Parks and Resorts and of the Travel Industry Assn. "Our process is neither friendly nor efficient, nor does it welcome foreign visitors," he said. "We are leaving an enormous vacuum around the world for other destinations to step into."
They are doing just that. Even with the dollar's value slumping ­ which boosts foreigners' purchasing power here ­ many are shunning the U.S. and flocking to such countries as Australia, China and Turkey.
Global travel as a whole, in fact, has been on the rise since 1992 ­ up 61% as of 2006. The U.S. hasn't grabbed its share of that increase. What's more, the number of international visitors hasn't rebounded to pre-Sept. 11 levels. There were 51.2 million foreign visitors in 2000 and 51 million in 2006.
The fall-off has cost the U.S. $94 billion, according to an industry study.
What's wrong with the U.S.? In a recent survey, more than 2,000 international travelers rated the U.S. airport arrival process the "world's worst" by greater than a 2-1 ratio over the next worst, the Mideast. The survey, conducted for a coalition called Discover America Partnership, found that 54% of respondents thought U.S. immigration officials were rude and that 57% felt the U.S. didn't want their travel business.
 
Building off early success with select international markets, NYC & Company today launched its NYC Open/Book campaign worldwide. The initiative raises awareness of the value periods for travel to New York City, when visitors generally encounter less expensive airfare, wider availability of hotel and restaurant reservations, and more room to explore cultural attractions throughout the five boroughs. These dates ­ 70 in all for 2007 ­ often coincide with major U.S. holidays, traditionally slow travel periods when the number of visitors to the city dips.
Over time, the campaign also aims to shift perceptions about travel to New York City ­ dispelling the notion that it is expensive and overbooked year-round, and affirming its reputation as an accessible, value-oriented destination.
The announcement came at the Travel Industry Association's (TIA) 39th International PowWow, the travel industry's premier international marketplace, held this year from April 21 to 25 in Anaheim, California. The trade show typically attracts more than 1,000 U.S. travel organizations and close to 1,500 international and domestic buyers from more than 70 countries.
The Open/Book campaign was first introduced in the United Kingdom last fall, and later rolled out in targeted international markets, including Ireland, Italy and Spain. Each launch was accompanied by a Web site featuring air and hotel deals specific to travelers hailing from each region.
 
In a press conference held at the Travel Industry Association of America’s (TIA) International Pow Wow earlier this week, it was announced that spending by Asian markets in the Anaheim/Orange County and increased significantly in 2006.
According to Anaheim/Orange County Visitor and Convention Bureau tourism development Vice President Ann Gallagher, a record-breaking USD$8 billion was spent by 44.9 million people travelling to the county during 2006.
“International visitors are a key element of our success as a top travel destination,” Gallagher explained. “This year, we are fortunate to host more than 1600 key international travel professionals and media right here in Anaheim as the official host of Travel Industry Association’s 2007 International Pow Wow, where more than US$3.5 billion in future travel business to the United States is negotiated.”
According to e-TravelBlackboard it was noted that the top five countries that came to OC were Canada, Mexico, United Kingdom, Australia and New Zealand. A special mention was made also to South Korea and Japan which made their presences known as visitors throughout 2006.
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Travelers Go And Tell, Tourism Sites Show And Sell
The Internet has made the world a smaller place, and perhaps no category has felt that impact as much as the travel industry, says a recent article in BrandWeek. Some 83% of people who travel are Web savvy compared with 71% of the general public, and by 2010, about nine in 10 travelers will conduct their search and trip planning via the Internet, per Forrester Research, Cambridge, Mass.
Web sites where consumers can read travel journals and reviews of hotels, cruise ships and attractions written by fellow travelers are rapidly gaining popularity. Among them are TripAdvisor.com, IGoUGo.com and TripPost.com.
One of the challenges now facing destination marketers is finding the best ways to mine these online consumer referrals. "Ad speak and market speak are dead," said Dale Brill, CMO at Visit Florida, the Sunshine State's official tourism unit. "Consumers don't want to hear ad copy. They want to hear first-person from people who are out there."
Visit Florida will give social networking a try in October. The tourism board will unveil video blogs manned by 10 experts, each one covering specific travel interests. St. Petersburg Times outdoors reporter Terry Tomlin, for example, will host a blog covering Florida wildlife. A woman with the handle "Hip Chic" will gush about the Florida social scene and shopping.
Whether or not travelers will relate to Visit Florida as they do to TripAdvisor remains to be seen. "Many of those [consumer-driven] Web sites are seen as an objective third-party, giving other consumers unbiased recommendations," said Laura Ries, president at pr consultancy Ries & Ries, Norcross, Ga. "Certainly Florida should have a site that has info, but they can't expect people will see that as a third-party source."
 
The Future Of First-Class
First-class fliers already enjoy super-wide seats that turn into beds, multi-course meals designed by celebrity chefs and plush airport lounges where they can get massages and manicures. Can it get any better asks Forbes?
Oh yes, say industry experts. They predict that while first-class will disappear entirely at some carriers, others will reinvent it on a level of extravagance far beyond what's available now.
"Business-class has been upgraded to first-class standards at some airlines, and it’s encroaching on first-class," says Edward Plaisted, chief executive of Skytrax, a U.K.-based airline and airport quality ranking company that assesses quality of first-class long haul flights. "First-class is at the stage where the section is filled by upgrades and frequent fliers."
As a result, he predicts that some airlines will eliminate their first-class altogether. Skytrax research shows that around 35 airlines currently provide first-class service globally. This number doesn’t include smaller airlines that may offer first-class on domestic routes. Plaisted estimates that in the next five years, only 20 or 25 airlines will maintain the service. And on those that do, first-class, says Plaisted, "is going to be elevated to the level of a five-star hotel."
 
Worldwide Electronic Hotel Revenue Up 19.3% In Q4 2006
TravelCLICK's quarterly eMonitor results indicate continued robust health for the hotel industry based on electronic distribution performance for the fourth quarter of 2006. The data shows that worldwide electronic hotel revenue from the Global Distribution Systems (GDS) and key Internet sites increased 19.3% over the fourth quarter of 2005. The number of electronic room nights booked for the fourth quarter increased 7.7% over the same time last year, while the Average Daily Rate (ADR) increased by 10.8%. The average length of stay for the fourth quarter 2006 was 2.06 nights, nearly the same as last year.
 Observations for the market based on this latest data include:
"Within the GDS, there is a sustainable trend of much higher ADR business opportunity when compared to other online distribution channels," said John Hach, Vice President of eMarketing Products at TravelCLICK. "The ADR variance of 41% provides compelling evidence regarding the need for hoteliers to reach travel agents during their primary point of customer interaction."
 
JetBlue Partners With Going.com For San Francisco Expansion 
In an effort to generate buzz for its new service to San Francisco, JetBlue Airways has partnered with localized social network Going.com--sponsoring a three-city rock tour, among other events. Boston-based Going.com (formerly HeyLetsGo.com) is also expanding its network to San Francisco and New York, making it the most logical partner to promote JetBlue's new destination.
On May 3, when San Francisco-bound flights leave New York and Boston, reports OnlineMediaDaily, JetBlue has planned multiple tri-city events, capitalizing on the strong community ties a social network like Going.com can provide.
Attendees must join Going.com to receive free admission to parties on May 1 and May 10 in San Francisco's Mezzanine and New York's Hero nightclubs, respectively. Locations and dates of the rock tour featuring The Teddy Bears will be revealed on the site as well.
JetBlue also plans to use co-branded banner ads on sites like hipster music magazine urb.com, in addition to out-of-home media.
 
Morgan Stanley Plans To Buy 10 European Hiltons, Person Says
Bloomberg reports that Morgan Stanley, the Wall Street firm that owns more than 80 hotels worldwide, plans to buy 10 more in Europe from Hilton Hotels Corp. for 566 million euros ($772 million), a person with knowledge of the transaction said.
Morgan Stanley is buying two hotels in France, including the Hilton Charles de Gaulle near Paris, and the Hilton Barcelona in Spain. It's also acquiring three hotels in Germany and properties in Switzerland, Luxembourg, Brussels and the Canary Islands, the Times of London reported earlier this week.
Morgan Stanley aims to profit from the resurgence of travel in Europe and take advantage of hotel companies' efforts to sell real estate while retaining income from managing the properties. The purchase follows Morgan Stanley's acquisition last year of a group of InterContinental hotels in Europe and expands its collection of more than 80 hotel properties worldwide, including the Arizona Biltmore Resort & Spa.
 
A Growing Trend: Gender-Specific Trips
Camping, hunting, fishing, hiking. Just a handful of excursions guys take together each year. Alone. No women allowed.
The country's lakes, rivers and streams still draw scores of men seeking to bond with friends. But these days, fellas are finding higher-end haunts offering off-road driving, whiskey tasting, drag racing lessons and private poker tournaments. Sometimes called ‘manscapes,’ they’re an example of a larger trend in leisure travel: gender-specific jaunts, says MSNBC.
Research conducted last year by I’m In!, a Waltham, Mass.-based company whose Web site helps users create gender-specific group trips, in collaboration with Compete, a Boston-based online market research firm, found that an estimated 20 million men currently spend $10 billion to $12 billion a year on guys-only getaways.
“Social travel is ripe for massive growth,” says Stephen DiMarco, vice president and chief marketing officer at Compete. ”Travel is the largest ecommerce category, and social networking is the fastest growing online category.”
A study by Compete of two million Web users found that among those polled, 38% of men and 34% of women had taken a gender-based trip in the last year. The average group size was eight; the average age of participants was 30 to 55.
 
Hiring Ceos From Outside The Hotel Industry.
Three of the world’s largest hotel companies have hired CEOs from outside the industry. It was almost as if Barry Sternlicht, David Michels and David Webster had sat down together and made a pact: if you hire a non-hotel CEO then so shall we.
Starwood struck first with the hire of Steven Heyer, President and COO of The Coca-Cola Co. In December Hilton Group Plc announced the appointment of Ian Carter, President for Europe, Middle East, Africa and Asia at Black and Decker, as Chief Executive of Hilton International Hotels. Not to be left out, InterContinental Hotels Group informed the world eight days later that their new CEO, Andrew Cosslett, would be coming from Cadbury Schweppes.
The fact that three of the world’s largest hospitality players chose to recruit Chief Executives from outside the hotel sector is not so much uncanny as a reflection of the changing strategic direction of today’s hotel companies says 4Hoteliers. Such choices may once have been regarded as potentially foolhardy and, at the least, bold.
As the focus of these companies’ shifts however from one of traditional real estate ownership to product and brand management, these appointments appear to fit well with declared corporate strategy. Steven Heyer is regarded by Barry Sternlicht as, “a marketer who has championed some of the world’s most valuable and global brands.” Andrew Cosslett too is a global brand marketing expert with experience at Unilever and Cadbury Schweppes under his belt. Likewise, Ian Carter’s background includes 11 years with General Electric.
 
'Deluxe Broadband' Tempts Hotel Business Customers
In the cut-throat world of broadband connectivity, suppliers need more than just bandwidth to tempt customers into parting with their cash. Swisscom is piloting a premium service in 16 hotels throughout the Netherlands, with the hope of a more widespread rollout in June reports silicon.com.
On top of a range of basic connectivity services, guests will be able to pay a little extra for a set of personalized and location-based services to the desktop. These will include offers from the hotel, information about the city and a flight tracker. The flight tracker could turn out to be the most useful, as it flags up a warning if a guest's flight is delayed, allowing them a little longer in the city rather than more time kicking their heels at check-in.
On the personalization side, the service offers access to a guest's favorite newspaper websites in their own language and in page-layout, rather than web format, so guests can view pages as if they were reading the paper in their lap. On top of this, free landline calls are also part of the deal.
Swisscom is justifying this service with research that found 60% of business travelers expect high-speed access in their hotel room - and that 7% of guests actually use the internet in their hotel room.
 
Google Passes Microsoft, Yahoo As Most-Visited Site
 Google Inc. passed Microsoft Corp. and Yahoo! Inc. to become the owner of the world's most-visited group of Web sites for the first time, Bloomberg reports.
Google's sites had 528 million visitors worldwide in March, a 13% gain from the same month a year ago, ComScore Inc. said today. Microsoft had 527 million, while Yahoo had 476.3 million, the researcher said.
The popularity of searching the Web and new sites such as YouTube helped Google grow faster than both its biggest rivals. Products such as the Gmail e-mail service, an online calendar and an online payments system are drawing users even though they aren't nearly as popular as Google's search engine.
“There are some people that like Google, and if Google puts anything out, they're going to use it,'' said Danny Sullivan, who tracks the search industry and contributes to Search Engine Land, a blog owned by Redding, Connecticut-based Third Door Media Inc.
 
Thailand Remains Top Destination In Asia Travel Intentions Survey
Visa International Asia Pacific (Visa) and the Pacific Asia Travel Association (PATA) have released the ‘Asia Travel Intentions Survey 2007' which reports that of those intending international travel in the next two years, 52% were considering Asia as their next travel destination. According to ehotelier this is a 9% increase on the previous year's survey results and an 18% increase over the results in 2005.
The annual joint research issued by Visa and PATA surveys more than 5,000 international travelers from 10 key travel markets worldwide and looks at the travel intentions of the respondents as well as the drivers and barriers to their travel. For the first time, India was included in the study this year, reinforcing the country's growing status as a potential inbound and outbound tourism source, as evidenced by 4.4 million visitors to India and 8.3 million outbound Indian travelers in 2006.
Around two-thirds of those surveyed had already visited Asia, 47% of whom had been to Thailand. In fact, Thailand was again rated as the number one destination on travelers' holiday lists, followed by Japan and China.
Despite international media attention on Thailand's civil unrest in the weeks before the survey was conducted, 50% or more of those interviewed in each of the 10 markets surveyed chose Thailand as their most likely holiday spot. Thailand's reputation as a relaxing place where people can enjoy the local culture, natural beauty and friendly people continued to increase in the minds of those looking to travel to Asia.
 
Getting The Most For Your Hotel Public Relations Dollars
Today, while most hotel owners and developers recognize the importance of public relations, many are not allocating the dollars accordingly says an article in Hotel News ResourceHotel News Resource. They are naturally concerned about not meeting budget and therefore cutting back on expenses. To allocate sufficient monies toward the one discipline which can actually help them during tough times is very challenging. And, as we've been seeing as well, if monies are dedicated for additional sales, marketing and public relations support, it is very limited ­ and often still haggled and negotiated with the outside providers and experts.
If you're a hotel owner or develop, and your funds for public relations are limited, may I make a suggestion? If you can't afford an on-site public relations person now, you do have an alternative.
To make public relations work for you, first allow your support team to focus on specific goal-oriented tasks. Agree upon the marketing or public relations objectives beforehand; particularly if you simply want to pay a small project fee or nominal retainer for the work being done.
Bring in an outside public relations expert. His or her focus should be on very specific proactive tasks to assist the hotel or hotel company with its publicity efforts. Of course, wouldn't it be terrific if the publicist could always be available on property to partake in additional marketing and sales support roles? That's frankly, how the job should be done ­ as one integrated endeavor, if we're talking about measures that affect the operation. But if funds are truly limited, and you're expecting a proactive execution of tasks, let the public relations expert remain directed, goal-oriented and focused.
If the fee for such work is at issue, then perhaps sit down with the public relations expert, determine the priorities, and allow the publicist to focus on the tasks at hand. Your marketing messages will still be communicated, your media relations will be strengthened, and you will be developing a presence in the marketplace.
 
Taiwan Eyes US$15 Billion Tourism Jackpot
Taiwan's plan to allow visitors from China to enter directly could contribute as much as US$15 billion (HK$117 billion) a year to the island's economy, a tourism expert said.
"We hope the authorities will allow mainland tourists to come to Taiwan soon," said Lee Ming-huei, president of Taiwan Hospitality and Tourism College, Sunday at a summit in Beijing. "It would boost our economy dramatically."
According to The Standard, Taiwan may allow as many as 1,000 mainland tourists a day to enter directly instead of via other territories, said Joseph Wu, the island's Mainland Affairs Council chairman, in September. The Democratic Progressive Party-led government in Taipei is expected to approve the plan this year, a major step toward normalizing ties between the two sides.
A thousand mainland tourists entering Taiwan daily would contribute US$755 million a year to its economy, Lee said. If the number of visitors increases to 20,000 a day, they would add US$15 billion a year.
More than 4.4 million Taiwanese visited the mainland last year, while only 200,000 mainlanders were able to visit the island as Taipei restricts entry to mainlanders who have relatives on the island.
Taiwan's government in February said economic growth may this year slow to 4.3% from 4.6% in 2006 as gains in overseas sales ease. The International Monetary Fund forecasts 4.2% growth this year.
 
The Muslim Consumer ­Top 10 Key Findings
AdWeek has just published ten key finding about marketing to Muslims, an overlooked global market. Among its finding about U.S. Muslims:
1. There is no U.S. Census data on the number of Muslims in the U.S., but several estimates put the figure at 6-8 million with an aggregate disposable income total of more than $170 billion.
2. There is no single "Muslim community" in the U.S., just as there is no homogeneous "Christian community.
3. Muslims in America comprise not only immigrants from the Middle East, South and Southeast Asia, Africa and the Balkans, along with their American-born descendants, but also many African Americans and others who have adopted Islam.
4. Many Muslim attitudes stem more from ethnic and cultural roots than religious faith.
5. While Muslims generally buy the same products as other Americans, three main areas of consumption are affected by their religion: food, clothing and financial services.
6. For many American brands, embracing Muslims is less a matter of developing Muslim-specific products and more a matter of ensuring that marketing and communications don't inadvertently exclude or offend Muslims.
7. Contrary to urban myth, American Muslims are no more likely than non-Muslims to reject or boycott iconic brands such as Coca-Cola or McDonald's.
8. Muslims feel strongly that mass media and entertainment portray them in a negative light. However, they do tend to feel they are treated respectfully by several other important elements of American society, including the medical profession and their local governments.
9. Brands play a much more important role in the purchase decisions of Muslims compared with Americans as a whole. Moreover, they trust advertising more than non-Muslims.
10. A wider gender gap exists among Muslims than in the overall American population.
 
Affluent Consumers Don't Always 'Brand' Together
According to W.C. Fields, "A rich man is nothing but a poor man with money." A new survey pretty much confirms that theory says BrandWeek.
According to the inaugural Survey of Affluence and Wealth in America, nearly 80% of people considered to be wealthy ­ defined here as those with discretionary household incomes above $125,000 ­ are products of the middle class with solid middle-class values of education, hard work and discipline. The study also found that 92% of these individuals acquired their money the old-fashioned way: they earned it; just 8% inherited their wealth.
The study was conducted last fall via the Internet among more than 1,300 people by American Express Publishing, New York, and Harrison Group, Waterbury, Conn. The implications for luxury brands are complex as they target the two types of consumers who comprise this affluent group: passion shoppers and logic shoppers.
Passion shoppers, who account for 40% of luxury shoppers, love the elegance of being in luxury environments and are willing to pay full retail for the experience. Logic shoppers have had their wealth a shorter period and did not grow up surrounded by the goods and services they can now afford.
 
UK Hotel Industry Set To Post Record Growth In 2007
2007 looks set to be a five-star year for the UK hotel industry with revPAR growth (revenue per available room) of 8.8% in the first three months of the year and double–digit increases in a number of UK cities. The results come on the back of three years of consecutive growth across the hotel industry and Deloitte’s findings show the average hotel room now costs £6 more than at the same time last year.
The preliminary results from the HotelBenchmark™ Survey show Aberdeen is the fastest growing hotel market, with staggering revPAR growth of 22.4% between January and March this year. Bolstered by demand from the oil and gas industry, the average hotel room in Aberdeen now costs £73, an increase of £20 over the past three years.
London also experienced strong growth with revPAR increasing by 14.0% this year. It remains the UK’s most expensive city with the average hotel room costing £119 a night, up from £107 in March last year. Since the beginning of January, London hoteliers have increased average room rates by 11.6% without experiencing any drop in occupancy levels.
Despite being the priciest city, the best performing sector in London is the under £80 market, which saw revPAR growth of 22.5% in the first three months of the year, a marked turn-around from its performance last year. In the same period last year, the under £80 market was the weakest London sector, posting growth of 1.7%.
Airport hotels at Gatwick and Heathrow have also done well. Occupancy rates in airport hotels are now comfortably in excess of 80% and airport hoteliers can be expected to increase their room rates in response to rising demand.
 
Airlines Seek Best Route To Profit Growth
The Wall Street Journal reports that the first-quarter profit reports at Southwest Airlines Co. and Continental Airlines Inc. underscore a growing challenge facing the industry: Increased profits could be tougher to achieve as passengers refuse to pay higher domestic fares.
Both Southwest and Continental said higher revenue helped drive their profits in the first quarter. But Southwest's rate of unit-revenue growth, or revenue spread over each seat flown one mile, slowed from a year earlier, due in part to higher fares that damped passenger demand, the airline said. Southwest Airlines Chief Executive Gary Kelly said the trends don't appear to be improving, and added that the airline's 15% earnings-growth target for this year will be harder to achieve.
Meanwhile, Continental Airlines Chief Executive Larry Kellner said domestic demand at the Houston airline remains very good, though at "a somewhat reduced price level." He cited continued pressure from low-cost carriers, such at JetBlue Airways Corp. and Southwest, which forces Continental to match lower fares in order to maintain strong domestic bookings. Amid the pressure, Continental said it expects second-quarter yields, which are a measure of average fares, to be flat compared with last year.
 
Interest Growing In Mobile TV; Ad-Supported Service OK
America's interest in mobile TV is growing, according to results from a recent comScore study. Of more than 2,000 respondents to an email survey, almost 40% expressed interested in mobile TV reports OnlineMediaDaily.
Mobile TV, which comScore defines as "television watched via a mobile phone device," is currently most popular with young men. About two-thirds of subscribers are male, and almost half are under the age of 35.
Respondents who showed interest in mobile TV, however, skewed relatively equally between both genders, a factor highlighting mobile TV's potential as an alternative communication channel for advertisers in the young adult market.
The study also found that respondents with interest in subscribing to mobile TV were not averse to advertisements. To the contrary, some 67% of them "would be willing to watch sponsored advertisements in return for free subscriptions."
 
Targeting In Travel Is More Important Than Ever
About 124 million Americans took a vacation in the past year, amounting to 55% of the adult population. They typically took three trips per year, spending $1,500 and traveling 1,200 miles from home, says a new American Express and Travel Industry Association (TIA)..
Traveling by car continues to be the top form of transportation for a vacation trip; however, at least one trip per year is by plane, reports TravelMole  Generally, vacation travelers take at least two vacation trips that include hotel stays, but the most common accommodations are friends' or relatives' homes (24%) and moderately priced hotels or motels (19%).
Americans most often take a vacation trip with their spouse or significant other (62%). The most popular trip destinations are cities and urban areas (39%), followed by small towns and rural areas (26%), and ocean beaches (23%). The most popular activities are sightseeing (51%) and shopping (51%).
What is the ideal vacation trip? The report found that overall, rest and relaxation and spending time with significant others are the most important attributes of an ideal vacation. Vacation travelers would like to travel more by plane and by ship and, not surprisingly, would like to double the length of their average trip.
While spending time with family is an important aspect of leisure travel, it's currently the most fulfilled need of the vacation traveler. Freedom, escape, and spending time with one's significant other are less fulfilled.
 
Cut-Throat Competition
British Airways cut a cameo by Richard Branson from its in-flight version of the latest James Bond film and blurred out the tail fin of a Virgin Atlantic plane seen in the movie, Associated Press has reported.
BA's entertainment team cut a cameo appearance by Branson, chairman of the rival airline Virgin Atlantic, that appears in the original version of Casino Royale, a spokesman confirmed Saturday. In the original film, Branson can be seen turning around after walking through a metal detector at Miami Airport.
"We screen all films before they're used on our aircraft so that we can control the content of what is displayed," the spokesman said on condition of anonymity, in line with company policy. "We have full control over what is shown."
 
Hyatt Resorts Promo Targets Families of Tweens With A Challenge 
Marketing Daily reports that Hyatt Resorts is launching a promotional campaign that takes reality-TV online by putting a handful of lucky families in three Hyatt Resorts and letting Web site visitors vote on which family should win a grand prize: 50 days free at a Hyatt Resort.
 
The campaign, "The Ultimate Adventure Challenge," gives five families chosen from an online sweepstakes a chance to compete against each other at three Hyatt resort properties, with their experiences to be posted at HyattAdventureChallenge.com as Webisodes.
To compete, entrant families - who have at least one child who is 9 to 12 years old - must upload 90-second videos of the kids and themselves. The videos must "convey their passion for adventure and exploration while noting why their family should be selected for the competition," per the company.
The first 1,000 entrants by May 30 will be eligible to compete. The company will promote the effort via an online ad campaign, with banner ads on a wide array of sites.
 
Dollar Slide Spurs British Invasion
The U.S. currency is king no more, says CNN, but not everyone is spilling tears over the dollar's decline.
One clear winner from the falling dollar: The $518 billion U.S. tourism industry. A weak dollar makes it more expensive for Americans to jaunt to London or other parts of Europe, but it also makes the U.S. a bargain destination for visitors from overseas.
That's crucial for the travel and tourism industry, which is a major force in the service-oriented U.S. economy. The industry's contribution to the economy ranges from 4% to 11%, depending on how broadly the sector is measured, according to a recent report from the World Economic Forum.
The dollar has declined against the pound the last five years, but just how far it's fallen came into sharper focus this week, when the British currency rose above $2 for the first time in nearly 15 years. The euro, meanwhile, is at a two-year high against the dollar.
Fueled by the strength of their currency, European travelers have flocked to the United States in recent years. British tourists, in particular, have descended upon U.S. shores with the aim of relaxing and enjoying their buying power. "It's very popular for them to come over on these big buying trips. You can't blame them, it's so inexpensive for them," said Chris McGinnis, editor of Expedia Travel TrendWatch.
International arrivals from the U.K. hit 4.2 million last year, according to the Commerce Department's Office of Travel and Tourism Industries. And when Canada and Mexico are excluded, more international arrivals to the U.S. originated from the U.K. than anywhere else last year.
In New York City, the most popular destination for travelers from the U.K., the large influx of British travelers over the years has even helped drive a campaign to formally name a neighborhood in the heart of the city "Little Britain."
 
Tourism's Future Must Be Green, Experts Say
Governments, hotels and major tourism operators must take the lead in boosting environmentally friendly tourism, which has yet to make a major impact on the industry, experts said at a recent United Nations-backed conference on climate change.
The industry, reports The Globe and Mail, has been slow to adopt sustainable environmental practices because it is fragmented and includes small operators preoccupied with earning a living rather than thinking about preserving the environment, they said.
That's why big players such as governments, airlines and hotels should take the lead, according to industry experts attending the final day of the Business Summit for the Environment in Singapore. "A lot of the people who are in tourism, they are very poor people from villages," said Anthony Wong, managing director of Malaysia-based Asian Overland Services Tours and Travel.
"They are small operators - they can be boat operators, they can be small hotel operators. These people don't have a worldwide view. They are not aware of the negative side of travel," he said.
"What they want to do is just earn a living ... They cannot think too deep, too wide. So it is up to the association, the government and the big players to lead and push it down to the suppliers, the agents, the transport operators," Wong said.

 
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