The notion that different passengers pay different prices for the same flight has been engrained into travelers’ psyches for a long time; airline pricing has long been considered complicated from the consumer’s perspective. In 2020, the concept of continuous pricing was introduced, and its capability is partly facilitated by IATA’s NDC. Gone is the reliance on fare buckets/seat classes as customers’ only options. How this personalization of airline seats and additional services into customizable bundles impacts consumer habits and opinions is yet to be seen. Nevertheless, the technology shows potential for greater innovation, and – with that – significant market disruption/shake up. This article addresses recent developments in dynamic, continuous pricing models and bundles for air tickets, with a focus on the potential impact for both consumers and industry stakeholders.

Analyst: Norm RoseTopic: Technology InnovationSegment: AirRegions: Europe, U.S. & CanadaResearch Type: Article

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With pandemic concerns in the rearview, the U.S. travel market experienced a bounce back in 2022. In reality, recovery varied wildly by segment. Despite concerns over staffing, supply chain and economic hardships, travelers eagerly returned to their favorite leisure activity. Gross bookings finally surpassed 2019 totals in 2022 in the United States, for the first time since the pandemic’s onset.

Analyst: Coney DongreTopic: Market Overview & SizingSegments: Air, Car Rental & Ground Transportation, Cruise, Hotels & Lodging, Online Travel Agencies, Rail, Tours & PackagesRegion: U.S. & CanadaResearch Type: Report

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With the U.S. travel market continuing its post-pandemic rebound in 2022, online travel agencies (OTAs) comprised just over a fifth of the total U.S. market, with bookings up about 20% from pre-pandemic levels. While a large part of the growth can be attributed to external market forces like rampant inflation, technological advancements and strong domestic demand account for much of the organic growth. With overall market stabilization anticipated over the next few years, growth will moderate, but remain positive through the rest of the forecast period.

Analysts: Charuta Fadnis, Lorraine SileoTopic: Market Overview & SizingSegments: Hotels & Lodging, Online Travel AgenciesRegion: U.S. & CanadaResearch Type: Report

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Chinese travelers are back on the map. Three years of isolation ended on January 8, 2023. As China transitions into a new travel era, OTA bookings at home and abroad are picking up speed. Benefiting from the government-enforced downtime and domestic protections, Chinese OTAs largely revamped their business models during 36 months of COVID disruption.This article reviews the many developments and initiatives undertaken by Chinese OTAs in the past several years, including: growing their customer bases in lower-tier cities; embracing user-generated content; augmenting their livestreaming capabilities; and preparing for social commerce challengers that also drew large domestic crowds. These players have all closely monitored the changes in travel regulations, consumer expectations and trends, readying themselves for the coming outbound travel surge.

Analyst: Gary BowermanTopics: Market Overview & Sizing, Consumer Trends, Technology InnovationSegments: Hotels & Lodging, Online Travel Agencies, Tours & PackagesRegion: Asia PacificResearch Type: Article

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Super apps are mobile applications that offer multiple services, often including transportation, digital payments, e-commerce, gaming, social networking and more. The concept originated in Asia, but a growing number of Western companies aim to emulate these all-in-one mobile powerhouses. Super apps integrate high-usage services like transportation, messaging or payments with other functionalities, so that users return to the apps constantly – an aspect that appeals greatly to the travel industry. For Western travel industry players, development will be challenging – it remains to be seen who can deliver.Part of a content series that explores some of the most significant technology-driven trends that will influence travel distribution in 2023 and beyond, this article explores the interplay between super apps and travel consumption, on the following metrics:Overview of leading super app players in AsiaKey ingredients for super app successHurdles in building this app model in new marketsLeveraging social, fintech, gamification and more 

Analyst: Cathy WalshTopics: Technology Innovation, Consumer Trends, Mobile, Social & SearchSegments: Car Rental & Ground Transportation, Hotels & Lodging, Online Travel AgenciesRegions: Asia Pacific, Europe, U.S. & CanadaResearch Type: Article

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Data has long been used to make operating decisions. But what happens when the paradigm shifts, as it has post-COVID, with uncertainty around labor availability, increased desire for seamless guest experiences, and shifting demand patterns? Will historic data aggregation and use still serve as the best tool for logistical planning and decision making? The answer is twofold. While the tried-and-true information can still be valuable, hoteliers looking forward must also incorporate real-time data into their calculations and planning for success in the modern sphere.Part of a content series that explores some of the most significant technology-driven trends that will influence travel distribution in 2023 and beyond, this article explores real-time data’s direct impact on hotel operations and profitability, focusing on how the following operational areas can be optimized:Labor scheduling and staffingTeam member performance metricsSales data for trends, both internal and market-wideOperational function automationTargeted ancillary revenue from guest behavior data 

Analysts: Adam Glickman, Dmitry KoltunovTopic: Technology InnovationSegments: Hotels & Lodging, Online Travel AgenciesRegions: Europe, U.S. & CanadaResearch Type: Article

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Electric Vertical Takeoff and Landing aircraft – “eVTOLs” – offer the promise of next-generation air transportation with significantly less carbon emissions than their ancestor, the helicopter, or other modes of transportation like short-haul planes, and possibly even shuttle buses or taxis. Some eVTOL brands even aim for fully autonomous operation. Nonetheless, achieving the eVTOL vision comes with some very large hurdles.Part of a content series that explores some of the most significant technology-driven trends that will influence travel distribution in 2023 and beyond, this article analyzes the vision, current status and challenges eVTOLs face specifically around travel, tourism, and human transport, including:Explanation of eVTOL development to dateCapital – investments and projections for future growthHighlight on sustainability, and impact on local travel marketsPartnerships with airlines, and possible benefitsObstacles, including difficulties around regulations and adoption 

Analyst: Hollis ThomasesTopics: Technology Innovation, Consumer TrendsSegments: Air, Car Rental & Ground TransportationRegions: Asia Pacific, Europe, U.S. & CanadaResearch Type: Article

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Italy’s travel market continued its robust COVID rebound in 2022. Gross bookings jumped 41% to €17.1 billion in 2022, and every travel supplier segment registered double-digit revenue increases, ensuring that Italy remains Europe’s fifth largest travel market. Despite price and staffing concerns, full recovery to pre-pandemic levels is anticipated for 2025. Online recovery will precede this date: Digital gross bookings will surpass 2019 in 2023 largely thanks to supplier efforts to modernize their customer-facing software. The remainder of the forecast period will feature more measured growth, reflecting the greater regional economic trends.

Analysts: Stanislas Feminier, Karen BurkaTopic: Market Overview & SizingSegments: Air, Car Rental & Ground Transportation, Hotels & Lodging, Online Travel Agencies, Rail, Tours & PackagesRegion: EuropeResearch Type: Report

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This data sheet provides quick and easy access to updated Europe travel market sizing data and projections from 2019-2026, including online and total markets, segments and key distribution channels. Much of the data included here, along with expanded analysis, is also featured in Phocuswright’s Europe Travel Market Report 2022-2026 series.

Analyst: Coney DongreTopic: Market Overview & SizingSegments: Air, Car Rental & Ground Transportation, Cruise, Hotels & Lodging, Online Travel Agencies, Rail, Tours & Packages, Traditional Agencies & TMCsRegion: EuropeResearch Type: Market Data Sheet

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Analysts: Cathy Walsh, Michael ColettaTopics: Technology Innovation, Consumer TrendsSegment: Online Travel AgenciesRegions: Europe, U.S. & CanadaResearch Type: Article

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