Think back to last week when we gave yet another example of our exemplary “Travel Professionals” and their bizarre behavior.

Since we spent time highlighting how poorly one segment of our industry can behave, I thought I’d spend an equal amount of time highlighting a perfect example of how another segment can respond. What’s even cooler – it comes pretty close to what I suggested as a viable solution for our “Professionals” last week, and how they should respond to the iTrek promotion about them being – well – “dead”.

There’s a right way to do things – and a wrong way. The wrong way leaves everybody involved feeling bitter and angry – which also leaves the industry exhausted and void of any hope.

The right way is getting some pretty good press with people talking – and laughing.

I first found this story on Twitter from PhoCusWright. (we’ve written about PhoCusWright before) We’ve all seen the “Bags Fly Free” promotions of Southwest Airlines. I’m not so sure you’ve seen the latest in this series of commercials. (I know I haven’t – but I don’t watch that much TV.)

The latest installment entitled ‘Battle Cry’ (shown left) highlights the now familiar Southwest baggage handlers who charge another airplane on the apron, only to flash passengers on another airline with individual letters painted on their bellies – which spell out the words “Bags Fly Free”.

It should be noted that the “competing airline” wasn’t blatantly obvious to the average viewer, but it was pointed out that the airline that Southwest baggage handlers “flashed” was Airtran. (The logo was blocked out on the plane in the commercial.)

As thing often do, word began to spread about this new Southwest commercial and questions and rumors began to circulate that Southwest was “dissing” Airtran.

Airtran had a couple of choices here.

They could have reacted like our “travel professionals” as petty and angry to strike an attack on Southwest with a bunch of bad press and move to “out” Southwest for the commercial.

Or respond with its own internal commercial which pokes fun at Southwest.

It should be noted that Airtran has not made any public statement about the commercial – but instead responded on its internal website for Airtran employees to view. (In other words, you won’t see this on TV) It also added this statement with the following video to the Airtran family:

“We’ve heard from many Crew Members from around the country about a funny ad currently running on network TV. We’ve been asked again and again how we planned to respond. Well, we thought about it and thought about it and decided to not respond at all. After all, focusing on running the best low-cost carrier in America is enough to keep us busy.

BUT…if we were to respond, it might look something like this:

Thanks to all of our volunteer Crew Members for donning these costumes and playing along. Your dedication to AirTran and your performance was truly MMMOOOOOOOving.”

It’s obvious that there’s no need for Airtran to get bitter or angry because Airtran happens to have viable service and sufficient market that flies with them. In other words – they’re far more secure in their own product and service than our “travel professionals” appear to be.

Does everyone need to fly with Airtran? No. They also understand that they can’t be everything to everybody. There’s more than enough market to go around, and Airtran isn’t about to take its eye off the ball simply because someone else takes a pot shot at them.

While they did spend some time putting this piece together, it’s all done in good fun and leaves everyone in a good “moooooood”. (Sorry, had to do it.)

That’s what true “professionals” do. It’s called re-framing, and good leaders know how to disarm a potentially volatile situation with grace and humor.

Now if it could only branch out to those who truly need to lighten up. They might be able to attract some positive press like this, and actually attract clients instead of pushing them away.

The only question I have is: Will they figure it out before it’s too late?

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Our friends at PhoCusWright have come out with another report revealing that monthly traffic and conversion for travel websites is up in almost all travel categories in the second quarter of 2009, compared to the same quarter of previous years. (Air being the only category that’s down – no surprise there.) Each area showed increases in traffic during the first half of 2009 compared to 2008 and 2007 when the company researched Online Travel Agencies and Travel Suppliers.

According to a PhoCusWright Press Release, the month of June revealed that visitors were strong with year-over-year growth. Almost all categories were up such as cruise lines – up 19 percent and hotel chains were up 13 percent.

“The reliance that consumers have on travel Web sites has not weakened one bit,” says Carroll Rheem, director, research at PhoCusWright in a press release. “Online channels are attracting, engaging and inspiring travelers who recognize that this year is actually a fantastic time to take a trip. Consumers are certainly spending less, but they are not giving up travel, nor are they turning away from the Web sites that offer them the selection and convenience they value.”

There are also signs that Online Travel Agencies and Supplier Web Sites are enhancing their ability to convert online shoppers to actual purchasers.

Don’t get too excited however, there are still a considerable amount of people who visit but don’t purchase according the report. (It’s what PhoCusWright calls “leakage”.) Online Travel Agencies are lagging behind suppliers, who are doing a better job of converting visitors into purchasers over their Online Travel Agencies counterpart. However, the average of actual purchasers is growing in both segments as consumers get more comfortable with the ease and convenience of shopping online. Monthly online conversion rates ranged from 20% for a car rental supplier to 0.2% for cruises booked via an Online Travel Agency.

Online travel agencies have shown a slight increases in hotel and car rental visitor volume in the first half of 2009 compared to 2008 and 2007. The only category to show a decline in traffic from 2008 through 2009 for Online Travel Agencies was air – which is down 15 percent. Still, air conversion has increased significantly over the same time period, according to the PhoCusWright report.

“The online travel ecosystem now supports a diverse variety of transactional and informational sites—each playing a role in how consumers research, shop for and purchase travel,” adds Rheem. “For example, we found that visitation to planning and review sites drives dramatic differences in hotel conversion rates. Understanding the intricate relationships that connect all travel sites is essential to setting the right strategic path.”

Don’t know if you noticed or not, but our September Trip of a Lifetime Sweepstakes has a survey attached to it to find out more about our customers. This ability to collect data gives YTB an edge in finding product and destinations our customers care about, which in turn can convert online shoppers to actual purchasers based on providing products they’re actually looking for.

Technology – Ain’t it grand?!

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I’ve written about a company called PhoCusWright here before which measures online travel sales. I’ve also written about BurstMedia as recently as a few weeks ago, which looked at consumer research for travel related spending. Another company that measures on-line spending is a company called eMarketer who came out with a report last week which forecasts some significant growth once we get past this recession.

The Retail E-Commerce Forecast reports and tracks current online sales and then forecasts what will happen in the future based on the data collected. The current forecast indicates that online sales will begin to rebound in 2010 and hit full stride in 2011. A trend in greater spending by online buyers is the key to eMarketers forecast of continued e-commerce growth. Currently some 152 million individuals will shop online in 2009.

The report also goes on to state that many consumers opt to buy online for convenience, price and broad product selection. It also states that over 80% of online shoppers are also online buyers. According to PriceGrabber.com, the tough economy is driving consumers online to compare prices, look for retailers that do not charge sales tax or shipping fees, seek discounts and avoid impulse buying.

It should be noted that PhoCusWright and eMarketer specialize in two separate segments of online sales. Online travel sales are so large and significant in this day and age that it’s broken out into its own category of B2C e-commerce. The remaining group of sales, whatever that may be, is left in the hands of eMarketer.

We’ve heard Coach, Scott and Kim this year quote that $0.42 out of every dollar spent online is spent on travel.  YTB brought Aisle 19 on board at the beginning of the year to capture the other $0.58 of that dollar. If you have ever wondered where that statistic comes from you now know it comes from PhoCusWright and eMarketer who work together to bring you and me a complete picture of the online shopping market. In 2008 $95.3 billion of the total sales volume spend online ($227.6 billion) was spent on travel.

Yes, I know that traditional travel agents want to stake a claim to the $95.3 billion in travel that’s spent online in an attempt that they are changing with the times. The claim; they too book online. Mind you, Expedia, Orbitz, Travelocity and Priceline take up more than half of the $95.3 billion with $50.1 billion on their own. (As documented in last weeks 2009 Power List rankings.) If you’re wondering if this is nothing more than a desperate attempt to keep traditional agents in this changing and evolving game you can bet on it.

A few weeks ago I documented BurstMedia’s findings with how consumers are using the internet for travel research and spending. That article got a considerable amount of attention from various massage boards, forums, and blogs. (As noted in stat reports I read that document not only what people are reading, but where they are coming from.) The findings from the BurstMedia research upset many traditional agents, and the excuses started to mount. One traditionalist went as far as personally attacking YTB and myself in some feable price match to show that booking with him would prove to be a better value. I’m not sure how that one example will change the entire scope of consumer research and spending, but I will tell you that the traditionalist who spent days ranting over the issue has successfully relieved himself from any anxiety he once had.

If someone wants to point out that people still value traditional travel agents, they are free to do so. I’m fairly certain that there are independent reports out there that they can use. I’d certainly find an independent source far more credible than some self generated price match consisting of one obscure flight to prove my point however. Yet a simple copy and paste price match appears to be all some need to keep their dream alive that they’re still wanted or needed. Or even better, that they use an age old excuse that they too use the internet to purchase travel for thier customers which factors into the large online booking numbers we’re now seeing in the reports that are documented here.

I’ve yet to generate enough interest in proving this point, but I’m fairly certain from past reports that PhoCusWright puts out that it’s not calculating B2B as it would be in the case of a travel agent booking with suppliers, but B2C with suppliers booking directly with consumers online. B2C after all is what this and many other reports document rather than the other way around.

I’ve been shopping online for years because of it’s convenience and ability to search for the best price I can find. Three years ago I was in the market for a brand new digital camera and went to the internet for a match of what I was looking for. I already knew the specs I desired, already had a budget in mind, and was already willing to purchase the camera online. What I found was the Fuji FinePix S9000 and it’s been one of my most enjoyable investments I’ve ever made.

When I do get a call from a client (as opposed to a booking just showing up in my back office) these clients already know the dates, times, and have a budget in mind because of the research they’ve done online. Some still refrain from buying online due to security and privacy concerns or the inability to touch and feel products. Others will go ahead and book or purchase themselves because they’re comfortable with the medium.

With almost nine out of 10 Internet users browsing and researching to compare products online this year as documented in this report, it’s yet another example via independent research of the bright future of online retail.

And YTB appears to be right in the thick of it. In more ways than one. ;-P

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You’re well aware by now how much I appreciate the internet and the information that flows on this puppy. I can find information on just about any subject I care to look into. This technology has become so ingrained into our culture we’re tweeting about subjects we find interesting and important to us. We’re able to communicate with people from all over the world instantly at all hours of the day and night.

We hook up with “tribes” on the internet, and share our experience and knowledge. We read blogs, newspapers, and even prefer to watch news and sports clips on the internet rather than TV.

I was an early adopter of the internet and have been using this medium as a source to gather information and educate myself on a variety of subjects. Today, one of the first places most people go to research is the internet.

There are a number of companies that specialize in gathering information about internet use and combine statistical data based on what they find. I’ve written about PhoCusWright a number of times on this blog, and love how it corrects the many many myths and misconceptions that others put out there. I don’t know why a few stragglers spend thier time twisting and spinning, or why they’re so afraid of the truth. Some do spend a considerable amount of time trying to distract you with thier own perception and opinions rather than sticking with the facts. I guess it works for them.

Me, I like facts from independent sources. Travel Weekly has done a terrific job in documenting for us the last couple of years. I found another company yesterday while reading the trades that has once again corrected the myths about self service travel. Travel Agent Central did a piece on Burst Media who publishes Online Insights which highlights emerging trends in online media and eCommerce. One of the most recent being summers travel plans.

Would it surprise anyone in YTB that 80.3% of “summer travelers” say they will use the Internet to help plan their summer vacation? Maybe because that’s a lot higher than what we’ve discovered in the past. (Even from PhoCusWright) But once again, we find statistical data from independent companies who don’t have any motives to bend or twist the truth for personal gain.

I also find in rather interesting that the higher the income, the more likely they are to use the internet for research. (As depicted in the graphic in the article.) Right or wrong, many correlate income with how smart someone is, and based on that belief, (or meme) the smarter someone is the more likely they are to use the internet for planning their summer vacation. The most popular features among the respondents was destination information and the ability to check flight, hotel and car rates and availability.

Respondents were asked what features and content of a travel website make them return they specified destination information (46.3%), the ability to check flight, hotel and car rental rates/availability (45.2%), and travel promotions and specials (44%) as reasons. Quite honestly, I can see this as a huge benefit for most consumers who are planning because a good portion of the Traditional Travel Agents are spending more time posting on blogs and message board forums than they are answering phone calls or talking with walk-ins who visit thier establishments.

You also have to wonder, with so many “consumers” researching rates, promotions, and destination information on thier own quite comfortably, why there’s a need for all the specialized training we wrote about Monday. Based on this report, most consumers don’t need no stinkin’ Travel Agent because they’ve been able to find all the information they need on thier own via the internet.

Which brings us back to the beauty of YTB. For someone like me who’s been a pied piper of sorts on the features, advantages and benefits of cruising for over a decade now, YTB gave me the opportunity to get paid when I told someone about why “a cruise was the best vacation money could buy”. It’s not rocket science folks, it’s travel and vacations. Travel is something that everyone does, and vacations are something that everyone loves.

All I have to do is open my mouth and tell someone that I we own an Online Travel Agency and the very next thing out of thier mouth is “Really, can you get me a deal too ______________?” We would more than likely talk about it what we have to offer, but the vast majority of the time, I simply hand them a business card with my website address, and if they find my prices competitive, I’ll find a booking in my back office without doing anything further.

Why, for the very same reasons Burst Media pointed out in their report.

Consumers are actively using the Internet as an information resource and a place to make travel purchases. Take advantage of the Web’s ability to target specific travel audiences – such as families and the affluent – with content that is highly meaningful and engaging to the viewer. Also, take advantage of the Web’s ability to deliver information by utilizing advertising creative the user can interact with, draw information from, and possibly complete a travel transaction.

There you have it. Another independent source with practical information and data you can use to build your business that documents stats and facts, not a bunch of hype and spin. It’s rather simple to implement if you know how to do it.

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I’d like to introduce to you our MythBusters…AKA: PhoCusWright.

It appears that PhoCusWright has dispelled their misinformation-and debunked the online travel myths we see all too often from our Traditionalists during the first-ever Analyst Forum, held September 10 in New York City.

Oh how our Traditionalists have been reaching for something…anything…that would substantiate their claim that market share is moving back to them. Well, sorry folks…just not happening and the jig is up.

Enjoy, and see if you don’t say the same thing. ;-P

6 Online Travel Myths Unmasked at PhoCusWright Analyst Forum

Myth #1: The number of online travel buyers in the U.S. is declining. In fact, that number is on the rise, as documented in The Consumer Travel Trends Tenth Edition recently published by PhoCusWright Inc. In 2007, approximately 70% of online travelers (that is, adults who have taken a commercial air trip and stayed at a hotel for leisure in the past year, and used the Internet in the past 30 days) bought travel online, compared to 63% in 2006.

PhoCusWright dispelled this piece of misinformation-and debunked five additional online travel myths-at it’s first-ever Analyst Forum, held September 10 in New York City.

In addition to the misconception that online travel buyers are declining, The PhoCusWright Analyst Forum corrected these five other online travel myths:

Myth 1. The number of online travel buyers in the U.S. is declining. In fact, that number is on the rise, as documented in The Consumer Travel Trends Tenth Edition recently published by PhoCusWright Inc. In 2007, approximately 70% of online travelers (that is, adults who have taken a commercial air trip and stayed at a hotel for leisure in the past year, and used the Internet in the past 30 days) bought travel online, compared to 63% in 2006.

Myth 2. More and more online travel shoppers use supplier sites than online travel agencies. While this belief is widespread in the travel industry, it is simply untrue, according to PhoCusWright, the travel industry research firm. In terms of popularity, online travel agencies are making a comeback (source: The PhoCusWright Consumer Travel Trends Survey Tenth Edition or “CTTS10″).

Myth 3. Travel agencies are experiencing a resurgence as travelers return to traditional purchasing channels. Not so. In reality, even many formerly exclusive offline buyers are migrating online for travel shopping and buying, according to CTTS10.

Myth 4. The next generation of travelers prefers to do everything online. The truth is, less than half of what 18-28 year olds spend on travel is spent online, according to The NEXTgen Traveler(TM) report, jointly published by PhoCusWright and Ypartnership.

Myth 5. Social networks and travel reviews have the greatest influence on travel decision-making. The NEXTgen Traveler(TM) report reveals that while social media is widespread, destination Web sites and online travel agencies are favored by nearly half of next generation travelers during the travel shopping process.

Myth 6. Online travel markets need high credit card and Internet penetration to succeed. The structure and ambitions of the travel marketplace are even more important drivers than infrastructure. Case in point is India, one of the most dynamic online travel marketplaces today, where roughly 98% of the population does not use credit cards or have access to the Internet.

The sold-out Analyst Forum provided attendees with a clearer understanding of the realities of the online travel marketplace, offering facts, figures and insights for strategic planning and decision-making, especially as attendees find themselves engaged in 2009 budget planning.

“Nobody wants to make strategic errors based on bad information,” said Lorraine Sileo, vice president, research for PhoCusWright. “Through this Analyst Forum, we were able to educate attendees about online travel myths and the realities in consumer behavior and to paint a picture of the new distribution landscape so that they can better assess their channel partners, such as travel agencies.

“PhoCusWright’s Analyst Forum will continue to take place on a quarterly basis in New York City featuring research and analysis on a variety of travel, tourism and hospitality topics.

Aint that somthin’?

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