Table of Contents
Executive summary 2
Airline industry is striving for innovation amid difficult trading conditions 2
Hotel market not changing as dramatically as once thought 2
People are going on different types of vacation, changing the market 2
The business of selling holidays is changing 2
The Travel insurance industry has many options for innovation 3
Airline industry is striving for innovation amid difficult trading conditions 8
Sustainable airlines are minority in industry where margins are thin 8
Consolidation is reaching logical limits in United States - Europe will likely follow 9
Ancillary and additional charge revenue becoming more important to airline balance sheets 10
Online platforms now attracting large investments from leading players 11
Airlines are harnessing social media in bid to attract larger audience 12
Hotel market not changing as dramatically as once thought 14
The global hotels market is growing quite well driven by key trends in technology 14
Global occupancy rates are good particularly in Europe and Asia 15
The UK is about to experience a large spike in room numbers 15
Airbnb is a popular phenomenon, but hotels are strong regardless 16
Airbnb can never standardize its service the way hotels can 17
Airbnb is trying to move into the enormously lucrative business space 18
Airbnb might need to consider a substantial rewards system 19
There has been a boom in hotel booking websites, who have considerable power 19
Attracting millennials to hotels is entirely possible with some changes 20
People are going on different types of vacation, changing the market 22
Helped by growing interest from new markets, cruises are attracting enough attention for the fleet to expand 22
Prone to fluctuations caused by outside influences, package vacations are here to stay 23
More people are choosing to travel alone, changing the focus of travel and tourism market 24
City trips are set to dominate travel and tourism for a long time to come 25
The business of selling holidays is changing 27
Online is now the dominant method of buying and selling holidays 27
Tourist boards and travel companies now increasingly use Instagram to reach customers 28
Holidays with millennials are less traditional and tend to favor “instagramable” experiences 29
Prices are now similar for Instagram posts and for TV advert buys 30
Deploying technology to help improve and sell the holiday experience 31
Deploying AR and VR as a method of selling holidays and showcasing the experience 32
Using the Internet of things to customize and sell 32
The Travel insurance industry has many options for innovation 34
The insurance industry has been slow to evolve but is now changing significantly due to disruptors 34
Personalized products and increased connectivity are a boost to convenience 34
Full automation is a prime example of how costs savings can be made 34
Big data is changing how insurers do business, allowing better fraud detection and tailoring policies to individual consumers 35
The development of flight delay policies is a major benefit 37
The nature of the travel insurer is going to change 38
Key Findings 40
Appendix 41
Sources 41
Further Reading 41
Ask the analyst 42
About MarketLine 42
Disclaimer 42
