The emergence of the “amateur-expert” in travel

November 19, 2009 | Online Travel

The growing expertise of travellers has had a profound impact on the travel industry as the average consumer, empowered by the internet, has become increasingly well informed. A new report by Amadeus highlights three significant developments.

A new report by Amadeus has identified the emergence of the “Amateur-Expert Traveller” – who is more knowledgeable, more adventurous and more likely to live in an emerging economy than ever before – and whose rise coincides with innovations in the trip experience and the growth of niche travel in the post-recessionary environment.

Based on primary research with 2,719 travel professionals and 30 thought-leaders and senior executives worldwide from companies such as Kayak, Forrester and Qatar Airways, Amadeus’ report highlights three significant developments:

- The Amateur-Expert Traveller: the average consumer has been empowered by the internet, and the dynamic of the relationship between travel companies and their customers is changing. 73% of industry professionals welcome the greater knowledge brought by user-generated content, which drives up customer expectations and creates new opportunities for travel agents to share their expertise with increasingly adventurous travellers.

- The responsive journey: 62% of those surveyed think that the journey experience is ripe for technological innovation. The maturing of the mobile internet will give rise to massive innovation around the trip itself.

- All niches great and small: travel companies’ revenue streams are becoming more evenly spread over a wider range of products. The traditional 80/20 sales distribution curve no longer applies to 38% of respondents, for whom 80% of their revenue was contributed by 60% or more of their products. Similarly, niche travel offers present opportunities for travel companies. Those surveyed identified adventure travel (83%), religious travel (55%), and weddings (45%) as key growth areas for specialist holidays.

According to Ian Wheeler, Vice President of Amadeus: “The growing expertise of travellers has had a profound impact on the travel industry as the average consumer, empowered by the internet, has become increasingly well informed. But greater expectations are being embraced by the travel industry, and it’s spurring on a new wave of innovation in the wake of the recession.”

Innovation in new technologies across the whole travel experience will be a critical source of new services and revenue streams for travel companies. In the survey, one third of respondents think that virtual reality will soon have the biggest impact on the travel experience by matching vacationers with destinations much more accurately.

But virtual reality is just one of many different technologies that will shape our travel experience in the future. Amadeus also recently unveiled a new Extreme Search solution, a search engine that transforms travel Web sites into a ‘traveller playground’ where consumers can explore and select their trip based on their desired vacation experience, rather than simply searching for flights along specific routes on exact dates. Driven by Amadeus’ ‘Extreme Search’ concept, travellers can ask: “Where can I go and what can I do for the amount I want to spend?” and instantly find clear alternatives, on the same initial search page.

According to Wheeler; “You do not always enter a store looking for a blue shirt or a striped tie. In the same way, you do not always know if you want to go to Mexico, Miami or the Bahamas, but you do know you want to go to the beach. Thanks to Extreme Search, a traveller could narrow their search to ‘beach vacations,’ anytime between November and January where the temperature is 80 degrees, and relevant destinations from across the globe would be displayed. Extreme Search is one of the many new technological concepts which will intuitively help travellers find what they want quickly, and guide them toward new experiences based on their interests.”

The rise of the BRIC economies

As BRIC (Brazil, Russia, India and China) economies continue to grow, the traditional tourism and business travel landscape is changing. Amadeus’ survey predicts that by 2020, China will be the third-largest tourist destination in the world, ahead of traditionally second-placed Spain. Moreover, economic growth in these countries means that vacationers and business travellers are increasingly likely to be from Brazil, Russia, India and China. Successful travel companies will need to bear in mind the cultural specificity of serving Chinese or Brazilian vacationers as well as North Americans or Europeans.

In addition, while many industry watchers think the internet will take over the travel industry, 75% of industry experts think that we won’t all be booking our vacations online. As more of the world becomes accessible, travellers will still need and seek traditional travel agents to help find that vacation that’s just a little bit more interesting. This is particularly true for the developing economies where a premium is placed on customer service and human interaction.

According to Wheeler: “The last year has been challenging – there’s no doubt about it. But we can clearly see the desire within the industry to grow, adapt and innovate around the whole consumer experience.”

Download the full report at Amadeus