Halal Travellers 2016 - ATTO Report An Amadeus-commissioned report conducted by Context Consulting - Enterprise IT News

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Halal Travellers 2016 - ATTO Report An Amadeus-commissioned report conducted by Context Consulting - Enterprise IT News
Halal Travellers 2016
                     ATTO Report

       An Amadeus-commissioned report
        conducted by Context Consulting
Halal Travellers 2016 - ATTO Report An Amadeus-commissioned report conducted by Context Consulting - Enterprise IT News
Overview

1. Understanding why
2. Objectives and Research Plan
3. Results
4. Conclusions and Recommendations

                                     2
Halal Travellers 2016 - ATTO Report An Amadeus-commissioned report conducted by Context Consulting - Enterprise IT News
1.
Understanding why

                    3
Halal Travellers 2016 - ATTO Report An Amadeus-commissioned report conducted by Context Consulting - Enterprise IT News
Why the traveller?
Understanding the travel industry from start to finish

 In any industry, understanding how the work of an organisation affects every
 other aspect is imperative for success.

                 In travel, one of these key components is the traveller.

 Whilst Amadeus does not directly work with the end consumer, to better serve their customers,
 travel providers, Amadeus has a requirement to know exactly what the consumer wants.

 By understanding the consumers’ needs, Amadeus can:

            Provide all components in the travel chain:
            • Better products
            • More effective services
            • More insightful consultation                                       Through taking the time to research and understand travellers,
                                                                                 Amadeus aims to support and improve the overall travel eco-
            Create even more value by supporting                                 system and to help shape the future of travel.
            • Cutting-edge innovation
            • More in-depth research & development
            • Forward thinking ideas
                                                                                                                                                  4
Halal Travellers 2016 - ATTO Report An Amadeus-commissioned report conducted by Context Consulting - Enterprise IT News
The ATTO initiative’s objective
(Amadeus Traveller Trend Observatory)
Better understand the evolution of traveller behaviour & needs, through the systematic deployment of a proven and
focused research methodology

                                                                                                       Trend observatory, Primary research,
                Sharing best practices from                  1                                 2
                                                               Steering                                Secondary research, Subscriptions
                         consumer studies
      A monthly committee meeting to exchange
                                                             Committee                    Internal     Online interactive platform with all studies,
    information about traveller research studies.                                         Data         trends and overall information around travellers
                                                                                                       made available to share, upload and download.
                                                                                          repository
                                                                             ATTO’s
                                                                       continuous cycle
                                                                         of innovation
                                                          External

                                                                                                                                                              © 2015 Amadeus IT Group SA
                                                       communication
                                                            plan                                         Focus on strategic consumer
             An external communication plan                                         Research
                                                                                                         segments and topics to develop in an
                                                         4                            plan      3
 A communication plan to deliver externally the main                                                     annual research plan
       outcomes from the yearly traveller research
                                                                                                         A detailed action plan is put in place to
                                        undertaken
                                                                                                         meet the yearly traveller research needs.

                                                                                                                                                          5
Halal Travellers 2016 - ATTO Report An Amadeus-commissioned report conducted by Context Consulting - Enterprise IT News
2.
Objectives and Research Plan

                               6
Halal Travellers 2016 - ATTO Report An Amadeus-commissioned report conducted by Context Consulting - Enterprise IT News
Project objective and target definition
Drive innovation through deeper understanding of Halal Travellers and
help Travel Agents meet the needs of their customers

_ Understand trip planning and travel behaviours more generally

_ Explore travel experiences, pain points, delighters and future needs amongst the target

_ Identify opportunity areas based on the above and reveal under-served / un-catered for needs

_ Determine how previously identified travel trends and insights relate to the target

_ Explore expectations and requirements of Travel Agents

                         Target definition for the study
                         Halal Travellers: travellers who wish to maintain Muslim
                         principles (i.e. prayer, food, cultural norms) while travelling

                                                                                                 7
Halal Travellers 2016 - ATTO Report An Amadeus-commissioned report conducted by Context Consulting - Enterprise IT News
Why Halal travellers represent a strategic target:
Halal Tourism will grow by 50% (volume) and 35% (value) in the next 5 years

        Market size                                                               Trends and predictions                                  The potential
 _   The Halal Tourism sector was                                             _   The typical Muslim consumer is                 _   Halal travellers are expected
     estimated to be valued at                                                    now younger, educated and with                     to grow from 110 million to
     $145 billion in 2014 2                                                       a larger disposable income than                    150 million visitors by 2020
                                                                                  before, which has precipitated an
 _   Halal Travel is one of the                                                                                                  _   Eventually Halal travellers will
                                                                                  increased propensity to travel 4
     fastest growing travel                                                                                                          represent 11% of the market
     sectors in the world, with an                                            _   Muslim population growth                           with an expenditure
     estimated growth rate of                                                     currently outpaces general                         projected to grow to $200
     4.8% against the 3.8%                                                        population growth5 and is                          billion6
     industry average 3                                                           expected to continue to do so

         1, 2, 4, 6MasterCard-CrescentRating
                                           Global Muslim Travel Index 2015 Report; 3Dinar Standard Global Muslim Travel Market
         Slideshare Report; 5Pew Research Center. The Future of World Religions: Population Growth Projections, 2010-2050                                               8
Societal, political and economic factors mark out Halal Travellers as an
interesting audience

                  High consumer         _ Prevalence of middle and upper class
  Economic
                  purchasing power      _ Consumers have capability to ‘go anywhere and do anything’ – desire and
     factors
                  of MENA tourists        ability to experience and explore the world

                  International         _ Schengen and UK visa waiver for UAE nationals
    Political     governments           _ ‘Muslim destinations’ (Malaysia, Turkey) continue to attract MENA tourists
     factors      actively attracting   _ Non-Muslim destinations now actively going after this audience (South
                  Halal travellers        Korea, Thailand)

                                        _ More so than other Muslim countries, travellers from the Gulf countries
    Societal      Family-orientated       typically travel in large family groups
     factors      society               _ Rarely do families travel in groups
Methodology
Multi-faceted approach to truly understand the experiences, frustrations and needs of Halal Family Travellers

              Identify                                Validate                                   Deliver

  Develop hypotheses about the             Primary research to explore              Comprehensive deliverables to
  target and their needs                   traveller experiences                    bring target to life
  • Desk research                          • Focus groups with locals and           • Report
  • Social Media review                       expats in MENA                        • Video
  • Expert interviews                      • In-home interviews                     • Press release
                                                                                    • Infographic
                                                  +70 Interviews                    • Ad hoc presentations

               +50                                       15                                         5
           Halal Travellers                       Industry Experts                         Local Travel Agents
                     UAE and
                      Saudi
                      Arabia
                                                                                                                    10
We engaged with people from a range of backgrounds, with varying
travel attitudes and behaviours
_ Family life stage – mix of younger and older kids in family

_ Make at least 2 international trips per year

_ Travel for a variety of reasons and to a mix of known / unknown destinations

_ Varied attitudes towards technology – Innovators, Early Adopters, Early Majority and Late Majority

_ Both local and expat populations included where relevant

                                                                                                       11
3.
The Results

              12
Not all Halal travellers have the same needs
We have identified 6 key defining variables

_   Understanding the variety of different Halal travellers is key as they don’t have the same needs or expectations, even priorities for
    the same traveller can vary from trip to trip.

                 EXPLORATION                                          COMPANIONSHIP                                                FINANCE

       Comfort                Exploration                 Core family                    Extended family           Deal-seeking          Simplicity-seeking
       Travels to known       Seeks out new               Travelling with                Travelling with a         Want to keep costs        Wants things to go
       destinations           destinations                spouse, kids                   wider family group        to a minimum              smoothly
       No compromise on       Appreciates may             But can’t assume it’s          May include siblings,     Not necessarily           Prepared to pay more /
       ‘family friendly’      see cultural                strictly a small group!        parents / in-law,         cost-constrained          ignore cost
       Halal food key         ‘shocks’                    Often UAE expats               maid, friends etc         ‘Savvy shoppers’,         Often when in unknown
                              Flexible (food etc)                                                                  don’t see value in        / non-Muslim
                                                                                                                   big spend                 destinations

                             “Muslim travellers are not all the same. Muslims travelling from
                              Egypt will not be the same as those travelling from Saudi. Even
                                  within a market, there are big differences. We need to
                                understand their uniqueness in order to sell our products ”             Amadeus Travel Agent customer

                                                                                                                                                                      13
Women are strong influencers
Having a key role in the destination choice and holiday planning
                                                                                                                                                   “I usually need to
                                                                                                                                                   compete with my
                                                                                                                                                        wife, we both
_   Women play a decisive role in the travel decision process, planning and some of the logistics                                                search until we see
                                                                                                                                                  who gets the best
        • This is a cumbersome process where they are mostly relying in word of mouth, relatives and friends                                       price. Usually my
        • Technology and social medial are also essential, specially Instagram                                                                   wife is the planner”
        • Women want activities to keep whole family happy – shopping also important
        • Women also gain social status from places visited                                                                                                   Traveller

                Destination            Booking flights         Activity plan and        Managing trip                Extra trip
                selection              and hotels              booking                  logistics                    preparations

                    ‘Final sign off’       Ultimate                Delegates to wife,       Ultimately responsible       Helps wife but mostly
                    Guided by wife         responsibility          makes suggestions        for transfers etc            ‘told what to do’
                                                                                                                                                 Level of involvement:
     Dad
                                                                                                                                                           High
                                                                   Responsibility
                                           Limited / no role                                Advises but leaves           Responsibility for
                    Strong influence                               ensuring everyone
                                                                                            logistics to husband         planning                          Medium
                                                                   is happy
     Mum                                                                                                                                                   Low

                    Destinations
                                           Limited / no role       Will work with           Limited / no role            Limited / no role
                    influenced by
                                                                   Mum to plan
                    kids
     Kids

                                                                                                                                                                          14
We have identified 3 core themes revealing Halal Traveller needs

                                                               2
                                                Relevant Accommodation
                 1                         They prefer Halal-friendly accommodation                           3
                                           that gives them freedom
                                           _   Apartments / chain hotels are preferred          Family -friendly destinations
       Maximising Trip Value
                                           _   Hotels/resorts must support traveller’s          At destination, Halal seekers want to
   Halal seekers plan their trip to            ‘cultural comfort’: many hotels currently fail
   maximise their experiences                  to meet prayer and dining requirements           explore within their comfort zone
   _    Halal Travellers often adopt a     _   Women struggle to find relevant hotels           _   Aiming at adapted excursion
        hyper-planning holiday mode                                                                 plans catering their requirements
   _    Halal Travellers like packages,                                                         _   Personalized dining options fitting
        but find them basic and                                                                     different preferences
        inflexible                                                                              _   Smart transportation at
   _    Travellers are more motivated to                                                            destination, ensuring knowing
        use agents for “ complex” trips                                                             the way

                                                                                                                                          15
1 Maximising Trip Value
Travellers adopt a hyper planning mode to ensure they maximize their trip value and have a smooth travel experience
with their families
_   When traveling with their families, Halal seekers want to ensure that everything is as smooth as possible, they                                               “ I pay the package but if I
                                                                                                                                                                      then don’t the tour, it is
    like to rely on travel agencies specially for complex trips (not known/ first time destinations, longer vacations,                                            overrated. I don’t want to
    multi-destination, extended family)                                                                                                                                be with the tour all the
                                                                                                                                                                 time. The price is the same
                                                                                                                                                                     if you don’t want all the
_   They appreciate the possibility of booking in advance however they want to travel packages that are flexible,                                                         package” Traveller
    can be changed and tailored to their specific needs

                                      3 months                                         1 month                               2 weeks                         Travel!

                        High levels of           Book flights   Research and book               Book translator,               Prepare         Final check
    Family trips        research                 and hotel or   excursions                      private driver (if not         children’s      of daily
                        Select destination       package        Find dining options             booked with flights            toys, snacks,   itineraries
                                                 Begin visa                                     and hotel)                     travel
                        Start saving for                        Look for prayer facilities                                     accessories
                        shopping on trip         application                                    Plan clothes to pack
                                                                Research other                  for family
                                                                activities
    Friends trips

                                                                                             Book flights                Potentially book                        Excursions, transport
                                                                  Minimal research           and hotel                   car / transfers                         etc organised at
                                                                  Select destination         Visa                        (or manage in                           destination
                                                                                             application                 destination)

                                                                                                                                                                                                   16
2 Relevant Accommodation
Halal travellers are looking for family-friendly accommodation that gives them freedom and respects religious principles

_   Finding the right accommodation is a key concern (family trips can be long, many family members)
                                                                                                                                  “I avoid hotels with discos: if
                                                                                                                                  the hotel has a disco, I won’t
_   Hotel chains guarantee a strong brand and standard services (consistency expected across markets); some                           go there with my family.”
    already provide adapted services
_   Serviced apartments are a valuable option: offer independence while providing key service, appropriate                          “I like apartments. I like to
                                                                                                                                     cook, I want my privacy.”
    space and dining capabilities
_   Main needs expressed in relation to accommodation:
                                                                                                                                   “I think it is important that
     • Respect of Muslim principles (in relation to alcohol, dining, entertainment areas, praying facilities, etc)                     the hotels recognize the
                                                                                                                                          needs of the Muslim
     • Women want to be able to relax in relation with what they consider suitable (dress code, gender segregated areas, etc)                       travellers…”

             Apartments / Private villas                    Apart-hotels                                Hotels
            - Large family can stay in one      - Family can stay in one apartment      -   Easy, convenient
              apartment                         - Cooking facilities                    -   Full service
    Pros
            - Cooking facilities                - Hotel services on hand (room          -   Well located
                                                  service, varied dining options etc)   -   Concierge on hand (trust concierge)
            - Can be far away from centre       - Expensive                             -   Expensive
              and / or key sights               - Often not large enough for whole      -   Limited inter-connecting rooms
    Cons
            - No ‘go to’ in case of issues or     family (more like small serviced      -   Cultural comfort
              problems                            apartments)                           -   Changes to room booking
            - No cleaning service

                                                                                                                                                                    17
3 Family-friendly destinations
Excursions, dining and ground transportation are key success elements aiming at a personalized travel experience

_   They would like to book in advance “ family-friendly” (i.e. wife
    and kids not seeing inappropriate behaviour) destination
    activities –especially when travelling with the extended                                     “Food is important. When it is
    family- but often agents lack information / right offers. This                                 not good, usually my family
    means that travellers end up booking with providers or                                         suffers. It should be suitable
                                                                                                    for my kids and family. Kids
    hotels directly. Excursions integrating Halal dining options                                  choose food they want to eat
    and praying possibilities would be a plus.                                                          but I prefer to go to the
                                                                                                                  market place”
_   Halal travellers want to have dining alternatives: some want
    high end or gourmet options. Others want to be able to
    experience local cuisine in a Halal way. Others simply want
    access to the Halal equivalents of the popular ‘fast-casual’                                “I search a place with activities
    eateries.                                                                                           that I do not have here:
                                                                                                    theatre, movies, festivals…”
_   Large travelling groups mean Halal Travellers often want to
    tailor their transport: private drivers in particular appeal
    husbands who are sometimes concerned about not looking
    ‘expert’ in a country, a private driver allows them to avoid
    these situations

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4.
Conclusions and Recommendations

                                  19
Conclusions & recommendations
Role of agencies and Amadeus
                                                                                                   Examples of Business Opportunities
_   Agencies play an essential role in supporting travel planning based on mutual trust
_   Agencies need to understand the context in which the traveller is planning their trip    ‘Inspiration’ campaigns showing ‘undiscovered’ destinations
_   Agencies’ biggest perceived added value is in complex trips in unexplored, non-          Create a network of female reviewers/bloggers on a Travel
    Muslim destinations: agencies should offer holistic holiday advice and 360 degrees       Agent’s holidays & packages (via discounts on holidays,
    support                                                                                  points / gamification)
_   Women play a key role in travel decisions: agencies should facilitate/support women      Buy now/pay later option
    in the inspiration and decision phases
_   Agencies should provide a packaged yet flexible end-to-end travel experience,
                                                                                             Make packages fully customisable by customers
    personalised jointly with the traveller, and which includes service at destination. As   Signpost Halal-friendly hotels in non-Muslim destinations
    there is a strong preference for booking in advance, this end-to-end offer could
    represent a way to add sales and cross-sell other products                               Rating system to grade hotels & resorts on women’s facilities

                                                                                             Create network of locals who can provide different, Muslim /
                                                                                             family-friendly experiences

                                                                                             Multiple ground transportation options as part of packages
                                                                                             (basic transfer via coach, exec car / limo…)

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Thank you!

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