16 December 2010

CO's Farelock vs. EC's Cooling Off



A lot of people are excited about Continental's new FareLock Product. The European's are about to ammend an existing law which will guarantee that a customer can cancel within a new grace period. The agency community fears it would be in serious trouble if the amendment to the Consumer Rights Directive tabled by Scottish MEP Catherine Stihler is passed. Why a Scottish MEP is doing this of course is open to question.

Her fellow MEPs on the Internal Market and Consumer Protection committee vote on the amendment at the end of January. The Legislation would take effect within 3 years.

Which is better - the Professor questioned aloud? - Your homework for the week is to answer.

Cheers

What this would mean - is that customers - whether they had paid a deposit or the amount in full, could cancel their holiday booking within two weeks, and demand a refund, regardless of whether the agent has already passed the payment onto the supplier.

Interestingly this would kill a whole revenue sector for the agent not to mention creating a lot of issues for them.

15 December 2010

Lookout Hawaii - Here Comes Shamu!


Buy Hawaiian Real Estate Now!

Two sets of people must be having a totally different experience today.

1. Hawaiian airline management must be ringing their hands as they realize that Southwest is going to steal their bulk traffic. Other airlines are going to re-evaluate their strategies to Hawaii. Next affected with be Alaska Airlines who has only just started a big footprint.

2. Hawaiian Hotels must be jumping for joy.

Bye Bye Mag Stripe Hello 2D



So the specialized printing and the expensive machines should now be history. Well not quite - BUT - IATA standard 2D is now fully implemented. But not necessarily fully deployed so they declared this week.

Some carriers are still struggling. Others are somewhat PO'ed that they plonked down a lot of money for those expensive (now) boat anchors. But 2Billion boarding passes a year is a lot!

Cheers

12 December 2010

Display is Not Dead (yet)


Display Advertising has been slowly advancing on the level of expenditure of search.

The latest numbers out of eMarketer show that both sides continue to grow while most other media declines.

Yes - online is the place to be...

Cheers

The Professor Sets The Record Straight - The World's First Frequent Flyer Program

In the Spring of 1980 A major US Airline started a revolution that was to change the industry. It was a program that rewarded the traveler for his loyalty.

It was launched on what is still today the most heavily travelled corridor for air travel in the world - Los Angeles (Southern California) to the San Francisco (Bay Area).

Was that airline American Airlines? Nope!
Was that airline United Airlines? Nope!

It was Western Airlines. And the account team at McCann Ericson that came up with the idea. Andre, Mike, Scott, Kim and yours truly.

Here is a quote from Inside Flyer:

About the same time, Western Airlines ("The Only Way To Fly") introduced its Travel Pass program, which might well be called the first real frequent flyer program. The Travel Pass program awarded $50 in travel certificates to passengers who flew five trips with Western. While not mileage based, it did pass the reward test and moved beyond the "earning copper" programs that were already in existence. These earlier programs were designed for the business traveler, and were literally the only marketing efforts by the airlines to this important group. At that time, the airline industry had abandoned the business traveler and was comfortable in turning this customer over to the travel agency.

Somewhere I still have some of the blanks of the TravelPass $50 card.

For a small fee if anyone is interested - I can spin a yarn or two about the TravelPass program. The team that created it at McCann clearly started a revolution and its high time they got some credit.

Cheers Guys!

Oh Dear... Will I Trip To The Dark Side?

I used to love Tablets. Then they lost their way.

Along comes the iPad everything you wanted in a tablet but less.

Less horsepower
Less battery life
Less disk size
Less camera (actually no built in one)

So along comes the Black Turtle-necked one. it is likely he will announce in January or no later than April - the next gen iPad.it will have cameras and more disk size.

Oh I am getting tempted.

Lies, Damned Lies and Surveys...

I hate when a useful tool is misused.

So it would seem to be with SurveyMonkey.

BTC is at it again with their very biased surveys which are then used (shall we say abused) to demonstrate the points of the anti-American Airline platform.

Surveys should be delivered in an unbiased fashion and get results that can accurately reflect the spectrum of possible opinions.

If you dont believe me then go here and check it out for yourself.

http://www.surveymonkey.com/s/direct_connect

if its expired - I have a hard copy of it.

This should never be allowed by responsible parties.

Customer Experience - A good Checklist

So you too can benefit from a lot of good though.

Go and check out Forrester's User Experience 25 points. This is Version 8 of the tool.

This is one of those things that is good sound advice and its free. If you don't do anything about it - then you are ... well you get the stuff you deserve.

Cheers

08 December 2010

Ryanair Punishes Stansted

It has been a bit of sport lately watching Michael O'Leary get on his soap box about various causes in particular the one about UK APD. Air Passenger Duty. The UK Air passenger will be paying more than his fare share of tax in the coming years. The UK increase is significant making it the most costly of any market in Europe. In contrast Ireland has just cut its tax from 10 euros to 3. So if you want to save money hop on a flight to DUB and then catch a FR flight or even another airline.

But what of this loss.

Traffic declined more than 10%. Ouch. FR reduced its footprint at STN by 17%. That's a lot. But the traffic decline is not just because Ryanair cut capacity - but because Britain is fast becoming a poor country.

However UK being a net contributor to the EC will have to ride it out.

For a more in depth review read this article from ABTN

Cheers

Timothy

07 December 2010

Microsoft To Address Web Tracking


Score another one for the good guys. (Say what Microsoft a good guy???) In this case yes - definitely of the white hat variety.

The Wall Street Journal's By NICK WINGFIELD reports that "Microsoft Corp. said it will include a privacy feature in its Internet Explorer that would let users list websites that can't track them. It is similar to a key feature it dropped in an earlier version of the Web browser after a heated debate with advertisers"

The battle will now get more interesting

Cheers

Should Technology Define The Interaction?


I originally wanted to title this one "Does Technology Define the Dialogue." But you can appreciate the subtle changes I have made to challenge several precepts.

What troubles me are several elements about our interaction with people on the internet.

While the web can be a bit like speed dating in a dark room with no bathroom privileges there are these horrid terms and conditions that no one reads and everyone signs up to - or policies that give again huge implied consent to the website owner being able to do whatever they like with your data and the results of your interaction.

Sorry I think that is wrong. And disclaimers are just that a bunch of BS. If I don't want you to track my activity I should not be the one who has to opt out. Its my darn data and my persona you are messing with. (Are you listening Googleplex?).

However broadly lately I have been thinking that in too many cases we have let technology define the conversation not the other way round.

So my wish list for 2011 is to focus on more ways to have the consumer and user be given solutions that enable she/he to define and control the interaction.

And what is your opinion?

Cheers

De-Demonizing Of Airline Fees


Most people get all riled up about airline ancillary service fees.

They hate it and much prefer the simple all in one model that has persisted for the airline ticket since - well before there were airline tickets going back to the time of Thomas Cook.

Europeans and now just about everyone else in the world are well used to paying fees for unbundled services. Indeed one or two airlines offer Fee packages - buy once use many. Examples of this are United Options and Easyjet's annual Speedy Boarding pass. So the griping (me included) is beginning to subside and the stage of acceptance is creeping in.

Some are even embracing this.

Joe Harkey the veteran MY Times columnist actually wrote an article about it this week.

Have a read here.

Cheers



With Ack to Scared Monkeys for the great image.

R.I.P. RIM?


Oh say it ain't so!!!

None other than Infoworld long a supporter of and indeed for many the voice of the Crackberry Generation has served up a rather disquieting analysis of the state of Play - iPhone vs Crackberry vs Android.

I love my Blackberry. I have a Bold 9700. One of my team just acquired a 9780 from T Mobile and it has evolved a little bit more. I have played with the 9800 Torch and its very good but its not an iPhone killer. It still does what Crackberries do best. Better email, better security and its a reasonable Phone. Unlike its competitors which are useless in at least 2 out of those three.

For me - there is still a significant set of issues with Android devices. They are like an early version of Windows and Linux - unpolished would be a kind word for it. The HTC devices are getting pretty darn good though. Look for the next generation to be acceptable. iPhone is like all things Apple, beautiful, arrogant and expensive. For me its just way too expensive. Not the device but the business model that i have to pay for. Oh yes and the phone is useless.

The faithful are awaiting the Playbook - aka Crackberry Tablet - but by then the choice will be either the next version of the iPad or the Crackberry non-3G device a rough and ready companion only or Wifi product. However IF they can arrange for BBM to tunnel through so that there would be no roaming charges for Playbook usage - then it would have a winner. But that is my dream and has a zero chance of being adopted.

Come on RIM - don't abandon us yet. Don't be the Nokia or Palm you are heading to be.

06 December 2010

Hawaii Comes Back ... Perhaps


Hawaii Tourism is starting to return it would seem. According to the Hawaii Tourism Authority's preliminary statistics for October, total expenditures by visitors who came to Hawaii during the month jumped 24.7% when compared with October 2009. In total, travelers to Hawaii spent $961.5 million in October, or $190.6 million more than they did during same month last year. October numbers were up all round continuing a trend that has been building for a while. Average daily spending by visitors statewide increased nearly 10%, to $188.70, and total tourists to Hawaii were up 13.6%. Among the destination's top four markets, arrivals inbound from the U.S. West rose 21.4%, while those from the U.S. East increased 6.1% year over year. Visitors from Canada surged 17.2%, and even arrivals from Japan inched up 1.6%.

HOWEVER be careful in reading this as the be all and end all of the situation. Remember that capacity remains constrained. The US Carriers are not that keen on adding capacity for which their yields are poor. Mexico's woes started to kick in with a vengeance in October and therefore a lot of people diverted from Mexico to Hawaii. Continuing a trend that I have seen for decades.

That said Hawaii's #2 long haul carrier in terms of flights is soon to be Alaska Airlines. Yup the plucky guy from the Northwest is expanding his footprint and bringing the Proud Alaskan with the Lei tail to the islands big time.

New routes consist of the following
San Diego (SAN) - Kahului, Maui (OGG) 10/01/10 1x Daily
Portland (PDX) - Kona, Hawaii (KOA) 11/12/10 - 04/09/11 Mon, Wed, Fri, Sat
Seattle (SEA) - Kona, Hawaii (KOA) 11/11/10 - 04/07/11 Increase to 2x daily Tue, Thu, Sun
Bellingham (BLI) - Honolulu (HNL) 01/07/11 1x Daily
Oakland (OAK) - Lihue, Kauai (LIH) 03/28/11 Mon, Wed, Fri, Sat
San Jose (SJC) - Lihue, Kauai (LIH) 03/27/11 Tue, Thu, Sun

This gives the islands:

Kona 4 routes
OGG 5 7 routes
HNL 4 routes
LIH 4 Routes

2 Years ago these did not exist.

Travelport vs AA - Round 1 (Postponed)


According to those in the know - the first round was supposed to be last week (December 2nd) with a hearing on the Temporary Injunction against AA.

This has been delayed to this week and into next week Dec 10 and 13 respectively.

Seconds out....


With special thanks to DarmnMalaysia for the image.

05 December 2010

What Else Did The Internet Kill?


I used to live in Southern California in the late 1970s and early 1980s. It was a great experience.

Late night TV in LA was a trip - quite often literally. Channel surfing on the Goddess of Cable - Theta out of the Westside while overlooking LA out of my apartment window. It was magic.

One of the expressions I would love and became attuned to was the local car sellers hawking their wares. The expression was often spoken in homespun speak from guys dressed as cowboys or often even more exotic eccentric ways to get you to "Come on Down!" Whatever happened to people like Cal Worthington....his famous expression was "Go See Cal". At age 89 he is still out there... click here to see his current website.

I was thinking the other day as I was channel surfing that there was a distinct lack of cable TV ads exhorting you to "Come and See".

Instead they have been replaced by web sites.

Hmmm - I wonder what else the web has killed?

Cheers

Confessions of a Webaholic


I stand before you proverbially naked. I am prepared to make a full and complete confession in public.

I have sinned - I am eviil - Yes - I am a webaholic.

I have been a secret webaholic for years. I sneak peaks. Even for no apparent reason or when I have no business being on the web. Yes I am an addict.

And you know what REALLY pisses me off? Bad website User Experience.

When people ask me questions on the web - just like my use of the web - I answer the first thing that comes into my head. For me speed isn't just part of the process - SPEED IS EVERYTHING! This is just so you don't think that when I tell you stuff in surveys you wont think that I am telling you the truth. Like all Webaholics I LIE. In my humble opinion look at my behaviour don't look at my words.


And yes I am SONIC!

Don't make me think about the process - the UX has to be completely intuitive. If there are more than 5 choices on the page other than the results then I get nervous and I will choose the first one. Listen up you web designers - the first answer is the one I will go with. Even if I am wrong - I would rather get a viable answer than to have to spend all day figuring out the way you made your site SO DARN COMPLICATED.

Gerry McGovern seems to agree with me. This week he makes the point. In one paragraph he neatly sums up the problem...

"When people are on the Web they are instinctive, impatient, impulsive, in a hurry. They click on the first link that looks in any way right. They search with the minimum number of words possible. Only when they get bad search results do they add more words to the search string. I have seen tests where people preferred to get poor results quickly than invest a little more time and effort and get much better ones."

Just think about this and do me and yourself a favour. Quite with the extemporaneous crap you dump on to your website. Group things nicely. And then give me a place to get help.

If you don't then remember one thing. it is just as easy to click out of your site as to click inside your site.

Sorry got to dash - I just saw some thing bright and shiny over there....

04 December 2010

Who You Are + What You Do


Its Saturday - time for a little lighter point rather than dull old travel.

Question - what is the one man made object that you interact with/touch more than anything?

The answer is at the bottom of this post. However if you were to ask the question 40 years ago the answer would have been a packet of cigarettes.

I was intrigued by a Forbes Article on Celebrities and their phones of choice. It must have been a slow news day. Obviously I don't care about Celebrities (OK I do occasionally pick up People magazine in the supermarket) but what phones and how they are used does fascinate me.

Regular readers will recall some of my rants about the iPhone and Apple's business Model.

I was finally able on a day trip across my State to catch a TED Talks. I was a significant Genesis fan in my day and now enjoy listening to them with more of a nostalgic sense. However I admire Peter Gabriel and his focus on doing good. Particularly on the WITNESS project. Check out this video on his motivation behind WITNESS. How the camera phone has now revolutionized citizen activism is pretty well known. For those of us who live in western style democracies we take these freedoms for granted. (If they are indeed freedoms - let's call them Liberties instead). Those who live under some more formalized totalitarian type governments where deviation from a set norm is frowned on or worse are not so lucky. There are indeed some countries that have banned camera phones and others that ban cameras of one type or another.

SO as you pick up that thing today - think about that.

Cheers





Answer: Your mobile Phone.
And I dont know who to thank for the great picture of a Blackburry Bold 9000 with stuff on it.

02 December 2010

VRMA Wants Independence Via a GDS Like Switch


There is an interesting debate over at the VRMA - the Vacation Rental group.

They are seeking independence by promoting the concept of a switch. Head over to their site and read all about it.

It is interesting that they would ask the question now and promote the idea when at the other end of the travel scale - Airlines are trying to drive their wagons out of the GDS environment.

I suggest that you read up about this debate. I am not convinced that a Switch is the right answer to their issues.

I welcome feedback from people on this one.

Cheers

Should Airlines Be Forced To Provide Ancillaries Info In GDSs?


LAst night, I was at a pleasant dinner with some non-travel people.

The discussion turns around as it does to Way is Travel so complicated. this was too good an opportunity to miss. So I described the issue of the GDSs and the lobbies trying to force the Airlines to display the information in the GDS.

One of the people round the table who is involved with charities asked a question which was so fundamental - I am not sure why I didn't ask the same question myself. We were all struggling trying to find analogies. So my friend asked:

"Isn't this a bit like the newspapers and the TV and Radio stations demanding that news be transmitted via the traditional media at the same time as via the web?"... And then trying to get the FCC to legislate this?

Stunningly simple questions....

Cheers

RR - All A380s Fixed by "end of 2011"

According to Bloomberg today - RR told investors yesterday that they will have all the fixes in place by the end of 2011.

No further comment necessary.

BTW QF is slated to take 3 of the behemoths this month.

Cheers

I Swear Washington is Listening to the Professor

After my rants on privacy - it seems that a "Do not call" list is likely to be applied to the web.

The FTC prodded by the excesses of the Rapleaf too as used by Facebook and others wants to create an opt out list. This opt out list will be in the form of a do not call list.

According to the NY Times the FTC : "the government’s top consumer protection agency on Wednesday advocated a plan that would let consumers choose whether they want their Internet browsing and buying habits monitored. "

Unfortunately this does not go far enough for me. In my view there are 3 stages to the tracking process.

Acquisition of the data, Monitoring the data and then using the data. The assumption is that if you restrict the monitoring of the data then you can prevent the manipulation. However while that is obvious - I believe that there should be no acquisition of any data to prevent the use obliquely of the data and meta data.

We shall see....

Cheers

Outgoing Chairman of Senate Select Subcommittee Raises Googleplex Acquisition of ITA.

Sen Kohl who is the outgoing Chairman of the US Senate Subcommittee,
He has written a letter to the Administration on the topic; In this letter he raises his concerns to the acquisition. It is more of a re-hash of the existing complaints by the FairSearch. Org group.

More formally his title is : HERB KOHL
Chairman, Subcommittee on Antitrust, Competition Policy and Consumer Rights (D-WIS). His is therefore the right person to raise this - although as a Democrat he is a lame duck and will be replaced by a more sympathetic Republican.

CORRECTION WHILE THIS SESSION IS LAME DUCK - THE NEW APPOINTMENTS FOR THE NEXT SESSION HAVE NOT YET BEEN CONFIRMED. AS THE DEMOCRATS RETAINED THE SENATE - IT IS UNLIKELY HE WILL BE REPLACED. HIS IS ONE OF THE SITTING MEMBER FOR WISCONSIN

The war continues....

Russia and Qatar Get Next World Cups


Say what???

Russia for 2018 I can understand - but Qatar for the 2022 World Cup. Well more power to them - they clearly made a big play and won the battle.

Britain is clearly miffed at having lost out to bringing the game "home".

Don't forget Brazil will host 2014.

Cheers

Rhetoric Up, Sadly Common Sense Down. The AA vs Travelport War.


While I am not exactly a disinterested party in the AA vs Travelport war - I am amazed at just how many parties want the status quo to remain.

I have asked the question before but let me ask it again - to misquote The Bard - Why does the Lady protest so much? Why do all these parties such as Travel Agencies, GDSs and OTAs scream about this as being a travesty of monumental proportions. When such an outcry is heard - I always question the motivation. Healthy Skepticism is ABSOLUTELY required.

Perhaps one of the more balanced analysis I have seen comes from Peter Harbison at CAPA. I recommend reading this analysis because it is (in my humble opinion) thoroughly insightful and balanced. This is in contrast to the hysterical rhetoric that is coming from the kitchen tables of BTC and TCA. In my view they are both acting as surrogates for the GDSs without giving the balanced view that perhaps their organizations should provide.

ITSA's submission to the DOT is an exercise in - well - obfuscation that one would normally expect from politicians. It makes you wonder why politicos spout so much BS - when you read the input it becomes clear. But I digress....

At the moment if you judge reading the press - both trade and consumer - the battle is characterized as a way for AA to leverage Travelport, being the weakest GDS, into a pricing battle submission. IE that AA will win and Travelport will lower its prices.

I think this is very far from the truth and the main issue at hand.

This is not a battle exclusively about cost/price although it is very easy to characterize it thus. The broader issue is that the airlines have a complex product and they don't want to be commoditized easily. Almost every other industry in the web era has moved away from commoditization with independent shopping tools provided to simplify the search and shop experience. One of the few places where this has not happened is in books. But books are a simple product slap a SKU on it and away you go. Travel is by definition very complicated in addition to being one of the more expensive products purchased on an annual basis.

Where the OTAs and the GDSs - who have a symbiotic relationship as reflected in their joint industry body - ITSA - have systematically failed is to improve the quality of search for the consumer. So frankly their arguments about consumer value and protection are spurious. The financial incentive to keep the OTAs using the obsolete technology of the GDSs has made the OTAs fat dumb and very lazy. As Rich Barton - one of the co-founding team of Expedia put it - and I paraphrase - dont put your money is advertising, put it into technology. Well his alma mater (and mine) has not done that for the air search process. Nor have the others - Orbitz (owned 49% by Travelport) or Travelocity (owned 100% by Sabre). But that cozy relationship is about to be torn apart because Mr Big (aka Google) is going to blow everyone out the water with taking a better search tool (ITA's QPX engine) and at least comparable supply access to create as they say "a better customer experience".

So we are clear - Google will be able to bring a heck of a lot more expertise to the search process not to mention customer data to make that experience more generic. If you like Google can do a much better job at commoditization of the travel product that the GDSs and those that they power have done. However navigation and manipulation by the consumer will be so much better.

Note - I didn't say best here! I believe that there are others who have different solutions which may be better in part or in whole.

My synopsis therefore of the situation is that Travelport is fighting a rearguard action with AA and this is not a battle that they can easily win. Indeed they have to some extent admitted this by allowing Southwest to offer their products via the uAPI not via the GDS. IE acknowledging that not only is an airline not a commodity product but that their core mainframe technology does not support the proper search facility.

At no point in the above mentioned PR release does Travelport state that you can shop Southwest in an integrated display. So if I get this wrong ... please tell me and prove it with a display. Because then there is another issue...

So let's have some common sense here and learn to get along. The GDSs should be investing in better search and removing the financial "handcuffs" that they have placed on the Intermediary community. And yes - that does benefit my position. But its also more honest. Would you not say?

I suggest also reading the ITSA submission to the DoT here
And the Airlines Response here

Cheers

30 November 2010

Just When You Thought It Was Safe.....


In a land far far away, I thought Second Life was cool - well for about a month while I played with it. But other than making myself a Fox with a VERY cool tale - I thought this was about as much fun as watching paint dry with molasses built in. And just as exciting.

I am not much of a game player I am afraid - unless you mean Guitar Hero but that is a different story!

I really find the Farmville stuff on Facebook and others very annoying. (Rather like Twitter but that too is another story).

I am also an American Express card holder.

So shock horror - I am starting to think about my Christmas shopping - using up some of those points from all those flights I have taken this year.

When to my shock and horror - I find out I can purchase a Purple Cow for 540 points. I might just have to do that for my sister as she is a big Farmville fan.

UGH - the world has gone to the dogs. Thanks Zynga!

And no - I am not adopting any animals in Petville....

Vote Quick! Most Influential Past 25 years in Airlines


Time to Vote People

The most influential person in the Airline Biz for the past 25 years.

In my view Herb wins easily which is why I am voting for Michael O'Leary.

So go figure and see what the results could be. Voting ends December 2nd

Vote Now (Top right hand corner)

Are Microsoft and Yahoo Still Relevant?


Yahoo has had its share of troubles lately and is still struggling from a degree of missteps combined with neglect and a smattering of hubris.

So let's consider things in context. Let's just look at email. With Facebook entering the fray - Yahoo still has more subscribers than the other two closes competitors (Gmail and Hotmail) combined.

But Yahoo is struggling to redefine itself in a world where search is dominated by Google and where the portal concept is slowly dying. People want more than just a gateway to content. They want to get there faster with less clicks. And Yahoo just doesn't hack it. The Social web is just so big that just by concentrating on it - as Facebook has - that the value can be mined. So Yahoo can be ignored by those who matter - the users and the advertisers.

Microsoft's value is harder to ignore. It owns several platforms not least of which is XBox. But the de-emphasis on the brand Microsoft has made the uber-brand less relevant. Of course it still carries its relevance in the corporate arena but even here it is under attack. The upsurge in Bing has clearly allowed them to stay in the game. But its a hard fought battle. But look at the brand cemetery from Redmond. MSN is probably about as relevant as Yahoo.

It is of course easy to go for the media darlings - Google and Facebook at the top end, with strong showings from Apple (iEverything) Groupon and Twitter. The long term winners must continue to make their brands and value proposition relevant. For this you have to be relentless at making your brand topical.

Good luck with that!

28 November 2010

The Strange Case of Vitaly Borker and The Googleplex

I urge you all to read this piece from the NY Times from November 26th 2010 entitled "A Bully Finds a Pulpit on the Web".

The reason is apart from the unsavory business practices of Mr Borker and his alias Mr Tony Russo - is that the Googleplex clearly has few protections for this sort of behaviour.

Whether or not he committed a crime is not for the Professor to determine. Whether Google failed in its responsibility to protect the consumer is also not for me to determine. However the fact that Google's system can and still is easily manipulated for ill-gotten gains is something that should affect all of us.

In my view - Google failed the standard of care for its user communities and that is a responsibility it should not be allowed to shirk just because the web is an easier place to do bad things.

Cheers

More Pressure On Webjet's Booking Fee?

Webjet Down Under gets a booking fee for the majority of its bookings. Its counter part for long haul Jetabroad also charges a significant fee. However some of the other online players have been removing the fee. And now it seems the retail/conventional market groups are now doing this.

Qantas Holidays - part of the Jetset/Stella Group of companies has just abolished its $AU 60 fee for booking retail airfares.

How long can Webjet sustain the booking fee?

That is going to get harder and harder particularly as other markets around the world have largely abolished a consumer fee for online airline ticket bookings.

Time will tell...

Where You Book Matters – Yes Really…



Hark back to a simpler time. Back when the use of influence was very important. You went to the person who you knew who had more influence if you wanted things done. That always mattered from the time you were just crawling around – if you wanted something done – every child knows go to the parent who will respond to you and give you what you want. In school it mattered which teacher you asked for a reference… it matters still today – perhaps even more so.

But as you got older you realized that the biggest person wasn’t always the one who got what you wanted. Sure the bully could always get something by throwing his weight around but smart people always found ways around things. Under despotic regimes passive resistance has been one of the most effective forms of protest.

So it is with a lot of amusement that I view how my Alma Mater has been pushing its current ad campaign. The premise behind the current ads is that Expedia has more influence on the supply chain as the World’s largest travel intermediary. The corollary to that statement is “And we get you the Best Deals and Best Service”.

So lately I have been asking – unscientifically I hasten to add – what the attitude is of vendors to Expedia and how they treat Expedia’s customers. I also trawled through a lot of blogs and commentaries. That makes it harder to assess because Expedia owns TripAdvisor the number one consumer comment organ. However there are clearly a few examples which can point to evidence of something most savvy travel consumers know intuitively – buying direct gets you something better than buying indirect.

I can tell there is a significant friction in those relationships. I spoke to several hotel players in different parts of the world. Both individual and chain based. I chose hotels as the category because I think the people I spoke to – under conditions of assured anonymity – would give me a more straightforward answer, more comprehensively than say an airline would.

The sense I got was entirely logical and expected. The Hoteliers in the main felt that Expedia had squeezed significant margins and therefore if the hotel had a way to recover value back they would do it. The usual form of that value was for the hotel – again logically – to give preference to their direct customers over those from Expedia. Indeed some of the hoteliers were very specific in that they would place Expedia deliberately at the bottom of the heap after all other intermediaries. This was particularly true in the case of high volume properties.

Expedia has acquired a bit of a “bully boy” tag and that was surprising to me. I would have thought that Expedia would behave. Expedia has a history of throwing its weight around. However I would have expected that the recent ascendency of Priceline would have changed their behavior into the kinder gentler Expedia that started out in 1996. Apparently not so.

So the moral of this story is… where you buy does matter. But don’t expect Expedia to get you the best service even if they got you the best rate. But there again that is true of almost everything you buy. It’s just that most retailers don’t make an issue of it without clear value and case history to back it up. (Can we now expect a series of testimonial ads now from Bellevue?)

27 November 2010

So Exactly How Many People are Drinking This Cool Aid


Back to the rant section of the choir...

I get the impression that there is something of a marketing effort by the Gnomes of Social Web to make me drink the CoolAid. Being something of contrarian - the adoption of Social Media sometimes feels more of hype than of substance.

As with many forms of hype - the definition of Social Media is still very woolly and decidedly open to misinterpretation. And I cannot shake the feeling that perhaps the hype is going to outlast the substance.

Just so we are clear - I do value the Social Web. I use Facebook and (Lord Help me) Twitter for specific uses. My team even has a Tweet engine we have developed for promotional services - very cool even if I say so myself.

But I still hold the Social part in healthy skepticism. Not least of which because every time I have tried to use a commercial application for personal benefit - e.g. Trip Advisor - I have found it lacking in value. or in many cases - just out and out wrong. Yes the "factual" data is often wrong from the direct purveyors to their surrogates or frankly people who should know better.

One thing that does bother me a lot is that no one is held accountable for mis-leading or wrong information, but this is not confined to Social Web data alone.

The now much quoted Sheraton Study on Social Media is being used to prop up the view that Social Web is just so darn essential to our lives. The 39% of respondents (who clearly have no life) said they could not do without their Social Media doses. The study ludicrously places Social Media up there with Life's real essentials:

"Overall, survey respondents ranked social media somewhere near air and water as a must-have in their lives"

I recall my headmaster in school when confronted with a parent (British version) who said: "O Levels are the most important part of my son's life" to which he retorted within my earshot - "Then the trip down the aisle is going to be a bit of an anti-climax".

Yes Social Web has its place and the media provided is a part of the fabric of our lives - intentionally or not as the case may be. But to have it become the be all and end of our existence is just unwarranted.

Context, objectivity and rationality must not be lost.

With thanks to Sodahead for the image.

Cheers

Mummy, I know I should but do I have to?



Mummy Dearest!

Oh but do I really have to do this Social Media thing. I don't like those people and they dress funny.

Mummy please don't make me go to this party. I don't like them. They make me play weird games and everyone has to "join in".

I hate it when I can't just be myself and play with my dolls and the dog.

Oh Mummy PLEASE don't make me go..

(Queue sound of sobbing child)

I don't care what the people at Ketchum and Fedex say... what do they know about me?


They think I am just like them - Oh Mummy why can't I wear my wellies to the party. Why do I have to wear the same dress as everyone else. I don't even want to colour my hair purple even though 90% of all people do it.

And another thing Mummy dearest - I never liked My Little Pony....

Is Search Social, or Even More?


Following on from my theme of yesterday which was asking the question if Search was dead - I have some more thoughts on the subject.

Consider this the nicer and more proactive version vs. my more "rantful" version of yesterday. I am trying to work on other ways to butcher the language since we were encouraged to make our brand names into verbs by Rich Barton. Still working how to create a verb out of Professor Sabena - but I am trying. (Suggestions accepted including Mr or Ms Anon who doesn't like my use of Grammar. - Guilty by the way!)



The merging of Social Media and Search is a natural given the strength of the values that their respective proponents have ascribed to these different disciplines. There is some good data to back this up. I suggest you take this research poll into account. Check out the article in eMarketer with data from Covario.

The sleepy market for SEO indeed any SEM has been shaken up but Google's fundamental changes over the past year. Of these the most significant is Google Instant. But there are now other parts of the tableau that Google is revealing that is going to change Search significantly. Google sees the threat from Facebook in a wide number of areas... I find this battle fascinating having watched both Google and Apple pass Microsoft (my Alma Mater) and leave the former Redmond Behemoth in the dust. With the current battle focused on the Social Web.

But is this clash of the Titans actually benefiting either the consumer or the marketer? I don't see this as the war but rather just another battle in the long term war. Which personally I don't see ending until someone at Justice wakes up and decides Google has overstepped its mark.

I have to say that I still see that survey data and performance do not match in many cases. But who am I???

In my thinking I have been contemplating (over rather too much turkey and some very nice wines) the issue of what comes next. Long term readers of the Professor's Wisdom know that I believe that web 3.0 is harnessing focused wisdom through experts as opposed to crowd control.

Interestingly we are now seeing Google Labs start to push out some very interesting stuff. A shout out to Professor Joe Buhler for picking up on the new Boutiques.com test site from Google.

Check this about section:

Boutiques.com is a personalized shopping experience, brought to you by Google, that lets you find and discover fashion goods through a collection of boutiques curated by taste-makers -- celebrities, stylists, designers, and fashion bloggers. Boutiques uses visual technology to help fashionistas discover and shop their look and creates the opportunity for designers to showcase their collections and latest inspirations online.

Boutiques.com is built on technology developed by our team of fashion experts who work with engineers to “teach” our computer systems to understand various patterns, pairings, and genre definitions. When signed into your account, Boutiques.com learns about your style and preferences and in turn, provides you better results and recommendations over time. Ultimately, Boutiques.com will provide shoppers with a much richer and interactive shopping experience and help drive traffic to retailers' websites.


Global search and replace the word "Fashion" with "Travel" and you will see what I mean.

The Googleplex rulers clearly expect to get Travel under its belt as a scalp once they complete the acquisition of ITA Software.

Google is clearly keeping an eye not just on the "social side" of the web but also the next generation of "moderated/guided mode". As Google states:

..."by taste-makers -- celebrities, stylists, designers, and fashion bloggers."

So now you need to start thinking about that... consider yourself warned

Cheers

26 November 2010

Is Search Dead?


Mindy Joyce has a blog entry that has been Tweeted and RT'd quite extensively. In this report from PCW17 the underlying theme seems to be that search is dead long live share/social.

Despite the less endearing qualities of the dominant search provider (You Know Who) search is still intuitive and the best way to find things.

So to say that Share is the new Search doesn't resonate with me nor I suspect with the general populace. The underlying theme behind my post here is the hihacking of search by the Googleplex and the resultant poor experience we are now getting from Search hurts Search. Personally I want less of Google telling me what I want and filtering everything through GoogleLenses and more access to a definable set of parameters. Are you listening Bing? IE just because its bad (and getting worse) doesn't mean you have to throw everything out.

Search is a utility. To my weird way of thinking the way Google serves Search up today almost makes me feel like the Power Company wants to tell me how (and when) I can use the power they provide. Excuse me boys and girls but most of the world is not Iraq. (And no disrespect to the fine and long suffering people of Iraq - but there power is a luxury when it should be a utility). But does that make Search itself dead or bad?

The other concept I am also having a problem with is the constant notion that people need to have validation for every decision that they make. Did we create a generation of coddled humans who have to seek validation at every step of the way from their peer group? I sincerely hope not. We have enough trouble not getting things done in regular business and life because we have to wait for other people to get their validation and their feelings smoothed over. Oh Lord help us from the Nanny state and PC! What about people being able to make decisions on their own based on their own judgment? If we carry that metaphor on, what would we see? - I shudder to contemplate such a world where we will have more and more decisions based on shared crowd think and far less on intellect and common sense.

If that is the case - why not go the whole hog and have virtual everything - see everything before you travel via virtual and augmented reality and therefore the joy of the experience is lessened.

Who can say that one can replicate the total assault on the senses that walking in Hong Kong, New York, Mumbai or Bali? May I be long dead and buried before someone creates a machine for that. Then I will just have to call up Zagar and Evans vision of the earth in 3535 that the being there means.

I actually think that Search will mature and that the rather horrid experience we have in general Search from Google and the legacy GDS defined based restrained Travel Fare Search will evolve and smart people will figure out a better way for us to get better results. Perhaps this is why Google really wants to buy ITA. They fear those smart people getting ahead. And what they really want to do is to keep the populace fat dumb and happy.

"In the year thirtyfive thirtyfive
Ain't gonna need to tell the truth tell no lies
Ev'rything you think do and say is what Google gave you today.


With apologies to Zagar and Evans but not to anyone else.

25 November 2010

Brits Have No Loyalty - Why Should They...?


People get all agitated that there is no loyalty online. But before we get critical of the behaviour perhaps we should consider why and if there is indeed anything that can/could be done about it.

There was an old adage in the UK Travel Trade that the "punter would cross the street for a quid". Translation for those of you who didn’t know was that a retail shop windows were the primary advertising vehicle and if a customer saw a headline price of say 199 and across the street was essentially the same package for one pound less - he would walk into that shop and buy in that outlet.

Tealeaf is a company that studies customer behavior and they have recently released a study on the UK market. You can get it here from etid: . The study is entitled “The ebooker: understanding how travel customers use the web. A whitepaper by Tealeaf and carries results from a pretty big spectrum of customers who responded to it. The study was conducted by Harris Poll UK and published on November 19th.

Tealeaf because they focus on the Customer (read user) Experience – UX – naturally focuses on the areas where web site experience can be improved. And the number of examples of effective practice are legion. It still amazes me that with all the money that some companies spend bringing punters to the front door of their website only to scrimp on the User Experience. And yes you know who you are!
All the money spent driving customers to the website and then the guy looks in the shop window and sees a poor experience and crap. There is little incentive on his side to stay with you – ie to close the sale...

I have written many times that the performance of the site’s User Experience is not easily gleaned from asking the users what they think. It has to be gathered from their behavior. Shock Horror! People lie! But frequently the surveys themselves are badly worded and the consumer cannot express himself adequately. Focus Groups also don’t do the trick. (Remind me to tell you one day about professional focus group participants!). More sophisticated testing and A/B type studies are needed. This is only wise. Hire companies like my consulting firm or a specialist group like Tealeaf to assess your User Experience. This is wise not just a plug for my business.

I would also like to dive into the other reasons for this lack of loyalty by the customer. The Brits are no worse than other markets. However they have a very short tolerance for screw ups. Probably more so than their brethren in other markets. And another possible reason – the UK websites are actually pretty bad and have done little to do a good job in the User Experience. Most Website managers are either copying the US models (which don’t always translate) or just don’t have time to focus on it. In my view the UK is populated by people running websites of circa 2000 vintage web 1.0 varieties. Localization is not changing words – it is deeper and more fundamental. There is very little appetite of the user to put up with this lack of attention. He/she punishes you by clicking away. And don’t forget that he wants a complete experience. One of the worst things is to tell him (as I know more than one UK site tells its users) “our customer service agents use the same information and don’t do better offline than online.” And then proceed to prove themselves as liars on the same call!!!

There is an interesting factor in the study – something Tealeaf calls “Social Acceptance”. This is a factor that few have so far grasped. However don’t interpret that to mean that the Social Acceptance can be assuaged by something in Facebook. No – again it is the whole package. Thomson UK still suffers a certain degree of social stigma from being the cheap brand. No studies I have seen address this issue. Further the lack of brand delivery against a promise is one of the consistent mistakes a Website makes. IE Lies, Damned Lies, Statistics and Brand Lies…. They fall into the same category. Consider the opposite end of the spectrum with Ryanair that does not give a thought for its brand and does everything based on price. While Marketeers may scoff – Ryanair delivers against its premise time and time again.

The effort of so many companies and brands now to get people to “like” them creates a false sense of brand loyalty. So we are clear – “like” does not equal “brand value.” The only reason they are clicking the like button is so you will give them a banana.

Finally let me remind you of something that most people forget. A customer is far more likely to distrust than to trust. Start there and work on proving him wrong.
More likely to distrust than trust

24 November 2010

The Washer Did It!

So now we have the answer to one of the more intriguing whodunits in a long time.

How come the fire in the Test Boeing 787 was so catastrophic and what caused it.

It was the washer. Apparently a small washer caused an arc across the electrical circuit and caused the fire. Other sources say that it was foreign material including paper and tools left in the panel which caused the fire. Of course the French company Zodiac

So no need to panic chaps - the schedule will be back on... right?

Oh I am not so sure... let's wait and see what Boeing says the schedule is after it restarts.

Here is the story from Seattle's Local NBC Affiliate. KING5

Boeing has a special condition imposed on it but the FAA. According to the Seattle Times quote "The Federal Aviation Administration in 2008 issued a "special condition" for certification of the 787 that requires Boeing to prove the airplane can fly safely and land even with the two main engines and the auxiliary power unit in the tail inoperative."

This is a bit of good news bad news.

If they meet the basic requirements then the special condition will be relaxed. If they dont then the conditions will be tightened and that may in turn require a further redesign.

And yes this was the same company that makes those nice rubber boats. Now spun out separately under the Carlysle Group.

Cheers

A slow recovery but a steady one in DXB



The recent numbers are starting to look good for Dubai. The rot may have stopped and traffic is making a come back. Tourist arrivals were up by 9% in the first half of the year, with more than 4.18m visitors, while hotel revenue rose by 6% to $1.87bn. Occupancy rates were also solid, at 71%, this despite the fact that there had been a 7% increase in the number of hotel rooms on offer.
There was more tourists and they stayed longer than in 2009 with an 18% rise in the number of nights rooms were occupied. Guests stayed for 12.46m nights in total, up from 10.5m in the first half of last year.
These figures suggest that Dubai is well on its way to passing 2009’s lackluster 6.1m hotel guests, a 1.3% fall on the 2008 total. Tourism accounts for around 19% of the emirate’s GDP at present. According to the EIU, overall Oil is predicted to decline from a total of 40% of GDP to 32% of GDS in UAE by the end of the decade. Tourism of course is the big strategy for success going forward.
The desert seems to have come off its lows and there is cautious optimism. Real estate values have stabilized but don’t expect to make a killing in this markets.

So for now – EK is going to be a big driver of revenue so hopefully the rest of the economy can at least find a way to keep some of the way up.

23 November 2010

Latest ATA Stats Show Underlying Trend

The latest stats out of the US Airline group ATA shows the tenth month of revenue and yield growth.

However we can now see that the growth indeed most of the profits are coming from the Ancillary revenues.

The impact is therefore clear. The model for commoditized airline singular results clearly shows that there is a need for differentiation. This is where the holistic one size fits everything model falls apart.

So the collision course that the airlines on the one hand and the GDS on the other is inevitable.

The recent post deadlines submissions to the US filings on disclosure of fees indicates give some indication as to the depth of the issue.

Go to DOT.Gov and type in this

DOT-OST-2010-014

Cheers

21 November 2010

Brace Yourselves. 787 Delay #7 - 2012?

I was joking the other week with a colleague who spends way more time sniffing Kerosene than I do. In fact it was prior to the Electrical Panel Fire in Laredo. My friend who follows these sort of things said 2012 before Boeing starts delivering 787s.

I said - "you mean full bore production deliveries" - he replied "No. Deliveries period."

Seems like he was being a bit prescient.

Latest news coming from the Oracle of Aviation, Air Lease Corp. founder and CEO Steven Udvar-Hazy, was that the delay is going to be 9 months. Others are now whispering even more - last week, Morgan Stanley aviation analyst Heidi Wood forecast that Boeing would not be able to deliver the 787s until 2012 in a worst-case scenario, as flight testing won’t resume until early next year. Wood’s base case assumption is second half 2011. So far the aircraft has been out of testing for several weeks. Surely 2 months delay shouldn't translate into 9 months or possibly even a year - can it?

Well there are several factors at work here. The troubles at Rolls Royce are not the least of them. The many design changes on the aircraft as a result of Boeing's unfamiliarity with the multi-source concept. Let's face it the 787 is no Smart Car. It a exponentially more complex.

So the delivery date answer is now anyone's guess. Clearly the production schedule cannot survive in any shape or form. Boeing is going to (read has no choice)have to modify it and has no choice but to lower the ramp of the production schedule. It will need to tune the production process until everything is set to be stable. I think that this confirms my earlier assumption that the earlier aircraft are not going to be representative of the production models. Difficulties abound for the suppliers. The Japanese must be kicking themselves over become risk partners. They have been ready for more than 2 years. And even now Boeing may have them make modifications and save weight that cannot be gathered from other parts of the aircraft.

What would have happened if they had gone ahead with the Sonic Cruiser?

So now perhaps things don't look so bad for Airbus. This further delay is going to force more A330s to be ordered. Even the now delayed a little bit A350 will end up being only 2 years behind the 787 service entry date. For people wanting new aircraft that means that available slots on either aircraft are about the same. So its a fair fight between the two now.

This is really rather sad. I wonder if heads will roll at Boeing again?

cheers

Do We Really Need More Information?


I am sure like many people - I am suffering from WAY too much data. In fact I think I am drowning in the stuff.

Regular Readers know I have this sense of the greater progression...

Data--> Information--> Knowledge --> Power

In my mind you need intellectual horsepower to get from the 3rd stage to the fourth. However the mind can no longer accommodate easily the synthesis of the first two stages of the progression.

The firehose drinking used to be so easy. I learned how to use a library as a teenager and had a great knack of being able to dig out the right information to make good decisions. In my early career that helped me enormously. Information acquisition was driven in large part by being able to find quality sources of data.

That skill is largely useless these days as we have so much access to data and easier ways to get at it so thanks Google for making that part of me useless... (just a note in case anyone thinks that is a driver of my crusade to make Google a better corporate citizen - it isn't). The first generation of the web in my view was all about access to data. Particularly as far as the Travel vertical was concerned.

But what now is required are better tools for qualitative assessment of the data we are presented. We suffer from the lack of these. Web 2.0 was supposed to bring nuance and qualitative measures to the flow of data. It hasn't in my view. Rather it has further complicated matters. Making the task of assessing data to extract the nuggets of information in fact harder not easier. And those of us who are waiting for better tools are going to have to wait a long time.

The primary editor of data these days is Google. And with that comes an incredible responsibility. One that in my view Google is failing to maintain in a balanced and responsible manner.


Gerry McGovern's weekly piece has an interesting spin on it. But the questions he asks are really appropriate:

"The other problem with the better filter approach is poor quality information. If the information is out of date or plain wrong, then how do you filter it? If the information is badly written and confusing, then how do you filter that? If the information is badly organized and has no metadata then how do you filter that? Filters are not magical."

His solution however is naive in its sincerity. We already lost this battle. he continues:

"There is a greater need today than ever for professional editors and librarians. People who can maintain quality standards when it comes to content. People who know how to organize a website from the point of view of the customer. When it comes to information, we really need to shift back to a focus on quality, not quantity."


In my view we all have to be honest and clear whenever possible. That means that as Bloggers - which I guess I can now claim credentials - we have to hold ourselves to a higher standard than just writing opinions on Facebook.

I hope that you dear reader will see that I try and do that. You can only be the measure of my success. One of the best quotes about writing I ever heard was this one. It took me a while to find it but did in the end. (I thought it was attributed to HG Wells!!!)

There are two kinds of writer: those that make you think, and those that make you wonder.
- Brian Aldiss

In the third generation of the web - I hope that we can bring back some of the harnessing of the human collective intellect (as opposed to simple mass behaviour) to the machine available horsepower. Am I hopeful? Yes... but also skeptical. I hope that I can make you both think and wonder. Because wonder is that childlike quality that I hope we can all strive for.

Cheers

Click Thru Rates Stabilize, Good News?


Click Through Rates (CTRs) have been falling consistently over the past 3 years. Much of this is due to the decline in effectiveness of the Banner Ad. Despite recent reports that there is good news for media owners and advertisers (actually mostly agencies) I don't think anyone should be a Hootin' and a Hollerin'. For a recent report from eMarketer on the subject go here. Indeed as Rich Barton stated at the PCW conference last week "don't spend money on advertising because it lets companies get lazy about product". The basic model for advertising continues to evolve but fundamentally the old fixed Ad model is less and less effective.

So when Rich said don't spend money on advertising he was not saying don't spend money to promote your product just don't expect to cover your product's inadequacies through a brand building exercise. You will get trapped and there is almost no way you can spend yourself out of that battle.

In my personal view getting a mix of Ad spend and product right is absolutely essential. Anyone who tries to decide whether to spend money on advertising or product should be taken out at dawn and shot. Product every time. However what about rewarding channels for helping you to acquire customers? Yes - so what I am saying is that we should be moving more to a CPA model. A truer pay per play model.

20 November 2010

Is AA Just Posturing? I don't Think So.

I read in one of the Beat organs - that Mike Platt believed that AA and Travelport will ultimately settle.

According to a blog post by former managing director of HRG UK Mike Platt, GDSs "want to be sure that they preserve their near monopoly over unbiased content within the business travel sector, and they are prepared to pay to do so.

In my view they are not posturing and AA is determined to break the Gordian knott. But we have to consider that there are more than a single cost/price set of issues.

The GDSs have failed to keep up with distribution evolution and they have instead resorted to paying the market to keep quiet via the GDS incentive payments. As Mike correctly points out in his Blog - that is like a red rag to a bull. The airlines hate the incentive payments.

The GDSs on the other hand now seek to legitimize the payment of incentives to the agency community which is as simple as robbing Peter to pay Paul.

Making themselves out to be the heroes in all this - it seems that they have conveniently forgotten that they are the ones driving cost upwards.

There are several Airlines who clearly do not like the idea of Travelport forcing participation. What seems to have been lost in the noise is that GDS De-regulation has been in the market for several years and the behviour of the GDS has not changed for the better.

So the last question then... will AA roll over? Somehow I don't think so.

Thus we have an interesting fight on our hands. I know where I am putting my money

Cheers

Expecting A Bumper 2011? Guess Again


One of the things pundits do is to guess (er I meant predict) the coming activity.

There are a number of factors as in everything that will give us a view of what the next year is going to look like. So as we enter the last 50 days of the year we can start to see that 2011 is going to be a year of uncertainty.

Lets start with the political scene. The USA will have a government that will have a hard time working together. Two houses with different leaderships. Not a good representative of smooth harmonious government. Coalitions will be the order of the day and shall we say that makes for cautious government, this affect the USA, The UK , Oz not to mention France and many other nations. We have the PIIGS (notice the extra I). We have the bailout donor nations suffering big time with austerity measures to cover the cost of the banking system bailout. In my view this will create a vacuum into which different players will step.

On the Geopolitical stage - we will see a rise in tension in different spots of the world. China will start to flex her muscle in this vacuum. Terrorism is raising its ugly head. Just look at this week's panic over the test device in Namibia.

The EIU - Economist Intelligence Unit also believes that we face a year of slowing growth and well complicated conditions. Interest rates have to rise. The ripple out effect of the banking mess will continue to affect broader portions of the economy as loans become harder to get and cost of money rises significantly.

So brace yourself... its going to get pretty tough...

I have 6 Months To Decide if I want the New iPad

Rumour and Speculation - but here it is anyway.

The next iPad will come in two sizes - standard 11 and small 7 inches.

it will have 2 cameras front and back.

It will be faster

I might want one

cheers

So Long, Farewell....

I can't sing so I wont trouble you with the rest of the verses from the Sound of Music.

This week someone decided to say goodbye and I decided to say goodbye to someone.

MySpace Gave up the ghost and cut its loses and will now be just an affiliate of Facebook. This astonishing turnabout shows the volatility of Social Media in the face of the newer juggernauts of Facebook, Twitter etc. So Digger can kiss his $580 million he paid for it in 2005 goodbye.

Now I am saying goodbye to WAYN. I cannot say I was ever really engaged in the site but the number of spam communications - er I mean messages about those nice teachers who want to meet me - particularly those from Brazil - has become a tiresome bore.

So I have opted out.

Cheers

Self Service Now the Norm in the UK

A good piece from etid this week on the HRS UK Corporate Survey.

The UK Economy is definitely struggling. And this seems to be borne out by the behaviour of cost containment by UK Corporations.

Its ugly out there people.

Cheers

ARC October/YTD Very Nice for Airlines - Not So Great For OTAs.


So everyone can stop moaning - for now anyway.

ARC numbers show a boost in both transactions for probably now the 18th month since the historic lows in Feb 2009.

The latest data shows a strong increase in transaction (Up nearly 11%) and value (up 19%) year to date. As ARC is showing almost negligible ancillary revenues for the agency channel - we can be assured as we have seen from the Q2 numbers that Q3's numbers will be a bumper crop revenue wise. If there is any airline showing less than 20% sales growth year to date then they are clearly falling down on the job. But the trend is downward for growth. This should be taken into historical context that the end of the year the growth tapers off. This is why we should always look at the first part of the year for significant growth in the USA market.

However there is an interesting anomaly. When one looks at the segmentation of the data. Have a look at the total traffic. Growth for all sectors except corporate has slowed to almost nothing. Corporate Travel as represented by the mega agencies (Amex, CWT, BCD and HRG etc) is the only segment with monthly transaction growth.



That should spell further bad news for Expedia and its generalist OTAs and further distance Priceline from the pack in market value terms. As we can see from the chart immediately above. The OTA share of growth started the year well but has dropped to almost zero in the 10th month.

Cheers

Travelport Tiptoes Into Mobile in ZA



One of my spies in South Africa alerted me to the latest from Travelport there,
Travelport Mobi - seems like a nice basic app for travelers.

I thought you would like to know.

Cheers

Google - Guilty, Beguiling, Gullable or Just Plain Evil?



Meanwhile back at Streetview...

I am struggling to comprehend Google's actions in the Streetview affair. But worse I am struggling with the manner in which the various governments have acted in this affair. Particularly two countries (USA and UK) specific actions have demonstrated the need for greater oversight and full pursuit of the protection of the individual.

There is no disputing the facts. So we know that Google's people - both full time and part time contractors under direct orders from a company led team deliberately captured personal data and invaded 'electronically' people's property and captured information about them systematically with forethought, prior notification and any consideration of the consequences of their actions.

Google first denied that this had happened at all. Then they denied that it had happened deliberately calling the act "accidental". They further denied that any personal data had been captured and/or stored but then determined after they had been found out that indeed - yes - personal information had been captured and stored AND processed.

Google is an internet giant and it behaves like any typical corporate entity does - it tries to use its large scale to provide information to itself about its customers. It fiercely guards that information it has captured as proprietary company information. Privacy laws are inconsistent across legal jurisdictions. The laws are not clear in almost all geographies. A loop hole Google has consistently and willfully exploited. In the past companies have used general information or small scale unique personal information to target customers with advertisements offers and the like. Where Google has changed the game and is unique is the nature and scale of its actions.

Consider these statement of facts.
Disclaimer here. I believe these statements to be fact and am very willing to retract any of these statements in part or whole if someone can prove that they are individually or collectively false.
1. Google collects and correlates information from an ever widening list of touch points. These touch points are the most comprehensive data ever collected about individuals in the history of mankind, more than any government, corporation and individual has ever done.
2. Google correlates that information to an individual entity and can so identify the customer. The extent of this correlation is more comprehensive than any other entity - government, corporate or individual has ever been capable of or has actually executed.
3. Google refuses to stop collecting information about individuals and only offers very limited opt out of legally or mandated sections of the information that it collects.
4. Google has agreed - only when forced and as far as I can tell, never openly and voluntarily - to limited occasions when it will not use some subsection of this information it has collected.
5. Google has every intention and will never stop expanding the reach of its data gathering efforts irrespective of the laws of any land.
6. Google has every intention and will never stop expanding the ability to use this garnered personal information.

Since it was found out - Google has consistently stuck to the story that the gathering of the data and the invasion of privacy was accidental.

However the evidence does not bear this out. Indeed as I have argued previously Google continues to hone its skills in collecting personal and individual data and turning it into proprietary company owned and controlled information for the express purpose of dominating the market(s) with its power.

Google's core thesis in these actions are that no harm no foul - therefore since no one was damaged in this accidental collection of data that the process is therefore quite legal. In reality this is only hard to prove in the legal sense.

The UK's position on the subject is interesting. It demonstrates that Whitehall's process of dealing with data is once again flawed. Mr David Smith - The UK Deputy Commissioner for Information is the point man on the subject. As the BBC reported:

excert follows:
More training

Mr Smith admitted that the UK had conducted a much more basic investigation.

"We spent less time searching than others did. If we had searched for days and days we would have found more," Mr Smith said.

Following this audit, the ICO ruled that "no significant breach" had occured.

But following publication of the Canadian data commissioner's findings, the ICO changed this to a "significant breach".

Mr Smith said that the ICO had intended all along to base its final judgement on the findings of its counterparts.

"It is not a good use of the data protection authority to duplicate more in-depth enquiries," he said.

"We have based our decision on the findings of other data authorities. It was exactly the same type of information found by them," he said.

Following the ICO's ruling, Google has promised to offer privacy training to its staff.

Other data bodies and groups around the world are still investigating its capture of wi-fi data.

End Quote.

Google has offered only to delete the data "within 9 months" and also to provide unspecified training to its staffers.

Google has not offered to delete any meta data. (Definition of meta data here in this context is data about data). So after it has deleted the raw data it will still hold and presumably use this meta data.

What to make of all of this?

There are specific actions that can be taken.

Firstly write to Google and tell them what you feel.
Secondly contact your government local, national or indeed any government entity that is affected by Google. Note that in many cases existing laws have been flouted (in my opinion) and therefore there are cases to be made for challenging Google's actions under existing laws not just information laws.
Thirdly - be vigilant and if you see something that you think is bad, tell your elected officials.
Fourthly - pass on your thoughts to others so that they know about Google's behaviour and how you and I think about them.

Google has benefited mankind enormously. That does not excuse their individual illegal and immoral actions. How you view Google's behaviour is a personal view. But don't just be passive about it.

While we get the Government we deserve - Governments have a legal and moral responsibility to protect the rights of the individual. In the case of data gathering and use - all Governments must now step up to the challenge that faces us. Only when Google is constrained can we be assured of our own freedom of information.

Cheers

19 November 2010

The Gory Details Of QF32 Accident


Taking a breather from the heady spat - the Travelport/AA battle - to go back to the QF32 A380 incident.

I am using the word incident - one of the folks in Oz is far less circumspect Read this story and then you can realize that the 466 souls on board the flight are rather lucky to be walking around today. Particularly those people who were sitting in seats 17A/18A and those directly below on the main deck. Strangely enough 17A was my seat number on one of the flights I took on the A380. Hmmm I guess I too am lucky. That makes it pretty personal.

http://blogs.crikey.com.au/planetalking/2010/11/17/the-anatomy-of-the-airbus-a380-qf32-near-disaster/

With special thanks to one of our Aussie reader Professor Gill for sending me the link.

Have a good weekend everyone

Expedia does a Mini Google in Buying Mobiata


Mobiata who develops both its own suite of Mobile apps and provides a number of white label tools has agreed to be acquired by Expedia.

So while I may be stretching the scale issue - there is a strong analogy between this acquisition and Google+ITA.

2011 will be the year of the mobile when we see adoption but this is the year when the deals are being done.

This is a significant one. The logic for Expedia buying Mobiata is not just in the pool of talent as Dara put it yesterday but in the breadth of the platform and the existing relationships with the infrastructure and the customers they have. It shows that Expedia was clearly wrong footed on Mobile.

So this makes mobile travel more interesting.

As a shameless plug (not something I do on a regular basis) I am part of a consortium who own the most appropriate URL - ping me if you would like to know more.