|
Covering the Inbound Tourism Industry Since 1996
by Tom Berrigan
|
by Tom Berrigan
JT Touristik Files for Insolvency: On Friday, Sept. 29, the Berlin-based tour operator JT Touristik filed for insolvency (bankruptcy) proceedings. The young company—it was founded in 2009—will continue its business operations in self-government and under the supervision of an expert during the restoration process. JT Touristik, whose product in the US consisted of Citybreaks in Florida, New York and Las Vegas, filed for bankruptcy following the decision of insurer Generali Versicherungs AG to withdraw from the travel insurance market and the resulting termination of its policyholders as of October 31, 2017. Despite its efforts to find another insurance carrier, JT Touristik did not succeed. Without the insurance for organizers of package travel, no guarantee can be given to the customer; accordingly, the organizer cannot accept payments from customers. A Berlin court has appointed lawyer Stephan Thiemann as the provisional insolvency administrator for JT Touristik and approved the creation of a creditors’ committee.
TUI Germany Shutting down Budget Tour Operator 1-2-Fly: Continuing its policy of a developing a single, global identity through a core brand, TUI plans to integrate its budget tour operator 1-2-Fly into the main business next year. TUI, the largest travel company in both Germany and Europe, will shut down 1-2-Fly after the summer 2018 season. From winter 2018/19 onwards, package holidays in cheaper hotels will be offered under the core TUI brand instead. Stefan Baumert, TUI Germany’s tourism director, told the German travel trade publication FVW that the closure was part of the group’s international brand strategy to put more focus on the core TUI brand. He stressed that all 1-2-Fly hotels would continue to be offered by TUI.
TUI France-Transat Merger Near Completion: Some 16 months after TUI France announced its plans to acquire Transat Holidays in France, Transat several weeks ago officially became TUI Tours. Completion of the acquisition was complicated by strict labor laws in France that make it difficult to lay off and/or relocate, as well as testy negotiations between workers and TUI on a voluntary separation plan. Thus far, there have been more than 200 departures from the company (70 percent were former Transat employees); ultimately, some 250 employees will depart. In addition, the new TUI unit has brought aboard new manager-level employees. The company is expected to be fully unified when all employees are located at a single geographic location. They are still separated geographically between Levallois-Perret (headquarters of TUI France) and Ivry-sur-Seine (home base of Transat France). By next January, it is planned to have all employees at Levallois.
by Tom Berrigan
—EI115 Dublin to Philadelphia departing 1:50PM arriving 4:15PM
—EI114 Philadelphia to Dublin departing 5:30PM arriving 5:10AM (+1 day)
Germany’s dominant airline and British budget carrier Easyjet are the two big winners of the Air Berlin collapse by expanding their operations on strategic and lucrative routes within Germany and Europe as well as to intercontinental destinations in the case of Lufthansa and budget subsidiary Eurowings.
The insolvent airline’s creditors and supervisory board have voted in favor of holding exclusive negotiations with Lufthansa and Easyjet until October 12.
In the meantime, Lufthansa announced that it will take over some of the former Air Berlin long-haul routes from Berlin and Düsseldorf. he airline will launch A330 flights from two airports beginning Nov. 8. The new flights will include Berlin-New York five times a week and Düsseldorf-Miami three times a week.
However, Lufthansa plans to transfer these routes to Eurowings next year. Eurowings will already start long-haul flights from Düsseldorf to various Caribbean destinations, also on November 8.
by Tom Berrigan
Specializes in ad hoc FITs and groups, multi-language staff of 10 with years of experiences. Attention to details.
The TourOperatorLand.com website by the NAJ Group (it also publishes the Inbound Report) has introduced both receptive tour operators, U.S. tour operators and international tour operators to travel product and services of U.S. travel suppliers and DMOs. Visitors to the website can use its exclusive Receptive Finder™ to find the right RTO. It is designed to help both the travel trade and travel suppliers find the right U.S. based receptive tour operator to sell their products on the international travel market place.
The receptive operators, who are vetted and qualified by the NAJ Group also take part in at least one of NAJ’s RTO Summits series. The Summits take place annually in Los Angeles (Feb. 21-22, 2018), New York City (April 17-18) and Orlando (TBD, 2018).
by Tom Berrigan
In a recent interview with Sojern, a San Francisco website that focuses on travel marketing technology, NAJ’s founder and CEO, Jake Steinman, speaks about what gaps he saw in the industry that inspired him to found the eTourism Summit, and some of the hurdles facing tourism today. The Sojern article follows.
###
In 1992, Steinman launched Active America, the forerunner to North American Journeys, following an 18-year career as co-founder and publisher of City Sports, a chain of regional sports and recreation travel magazines. Accompanying his duties as president and C.E.O. of TourOperatorLand and North American Journeys, Steinman is the Editor-in-Chief of two industry newsletters—Inbound and The Travel Vertical—as well as chairman of Active America Travel Summit, E-Tourism Summit, and NAJ Tour Operators Summits West and East. In our latest interview of the series, I sat down with Jake Steinman to speak about how he got into the tourism industry, what gaps he saw in the industry that inspired him to found his business, eTourism Summit, and some of the hurdles facing tourism today.
When did you first get into the travel and tourism industry?
I had a magazine company and an event company that I sold in 1993. Being too young to retire and wanting to get into something where I could write off travel, I started North American Journeys (NAJ) with one of my writers from the magazine. He was an expert on the travel and ski industry in Japan. I tagged along with him to Japan in 1993 as he was interviewing people for a story on a new “outdoor” oriented shopping mall five stories below the Osaka train station. I watched as he interviewed people whose singular dream was to travel to America for skiing or golf. One thing led to another, and we created Active America Japan, an event that promoted tourism to the US from Japan.
During the seventh year, we held an itinerary contest where destinations submitted itineraries. We had Japanese tour operators rate them. After the award ceremony, tour operators were approaching me to ask if they could Xerox these itineraries for their 300 travel agent offices around Japan. I realized this was something they really wanted. So, the next year we created a coffee table book containing only itineraries. The following year, we dropped all the itineraries into a website, now called Touroperatorland.com, to showcase to the trade. This was around 2000. I had no idea what to do with a website, so we created a conference, eTourism Summit. It was almost as a ruse so I could learn how to market this website. It began to take on a life of its own after we moved it to San Francisco permanently in 2011.
eTourism Summit has been around for almost two decades. How have you evolved it as technology, digital marketing strategies, and travel have evolved?
We used to bring in speakers from platforms like Google, Facebook, Twitter, and LinkedIn to introduce attendees to their marketing tools. Now, DMOs are less interested in hearing FROM platforms and more ABOUT them from peers who have used them most effectively. As a result, it’s evolved into a “show and tell” event where their peers are sharing experiences about new campaigns and applications. Attendees walk away inspired with new ideas and are able to mitigate the risk of trying new technology. This year, we found 25-30 DMOs whose management gives them the freedom to try new vendors and campaigns without the fear of failure.
What kind of digital marketing trends in tourism do you expect to see in 2018?
There are three main trends that we see. DMOs want alternatives to the duopoly of Google and Facebook, which get more expensive each year and they are open to investing 10-20 percent of their media budget to experimenting with different media.
The second is social media and content marketing conflating with PR, especially influencer marketing. You can go to some influencer agencies search box and type in “craft beer influencers.” We’re learning that PR people can build relationships with these influencers, similar to that which they have with traditional media. And, in many cases, instead of paying the stated rate, they can offer the influencer a free trip and have them not only create content but amplify it to their follower base. They are turned loose to independently experience the destination and create content for their followers while promoting a destination. The influencers have a media following and ability to create and distribute content.
The third trend is accountability and performance. DMOs are increasingly required to prove incremental visitation that’s aligned with their marketing campaigns. It’s one thing to show the impressions served, but it gets tricky trying to relate it to incrementality because it can be hard to prove. As a result, they are relegated to a “cocktail” approach where they contract with multiple vendors to address the ROI their funders find credible. One tourism director said one of their board members believed the ROI report to be too rosy and suggested they find a fourth-party vendor to verify the report provided by the third-party vendor.
What are some of the biggest hurdles facing tourism in the next year?
For DMOs, one hurdle is getting more budget for digital marketing. Their senior executives have built relationships with print magazines, TV, and other legacy media over the years of wining and dining. Now, they’re trying to evaluate whether they can replace broadcast and print to with digital media without affecting relationships that could result in less free press coverage.
Another hurdle is understanding how to staff a digital department. This includes where various responsibilities lie while deciding what should be outsourced and what can be done in-house.
What is the best trip/vacation you’ve ever taken?
I just got back from a month in Morocco, Spain, and France. In Morocco, I spent 10 days, two of which I camped out in the desert. I spent an hour with a nomadic family who lived in the desert and rode camels. It was tough, being in 110-degree weather in the desert.
To see that and talk about that is something I’ll remember for the rest of my life. My experiences that have been the most difficult are really the most interesting. And, right now, everything is about experience and authenticity. This experience in Morocco changed the way I look at future trips. I’m considering visiting Ecuador, the rainforest, and a lot of other places I didn’t consider before.
—Marissa Rasmussen
Marissa is Sojern’s Content Marketing Associate. Indulging in her inner bookworm, watching HGTV, and playing with her puggle, Charlie, are among some of her favorite hobbies. Although she loves both, she prefers the beach over the mountains.
15 Technology Parkway South
Suite 205
Norcross, Ga 30092