For a recent speech to a travel company, we pulled together some data on the changing shape of travel due to low-cost carriers, online travel information and social-media driven word of mouth taking tourists beyond the usual top destinations. As in any industry that democratizes, you should see more diversity and the demand should be spread out over more “products”. In this case, that this would be driven by:
- Lowered flight costs = more travel, more risk-taking
- Lower “search costs” = broader vistas, more willingness to go off the beaten path
- Better word-of-mouth tools = “bottoms-up hits”
- Peer ratings, reviews reinforce authentic success, punish “manufactured experience”
Did it happen? Yep. Check this out: data on travel from the UK, from 1998-2008. Over that period, the top 50 destinations from the UK (the “head” of travel” fell from 36% of the total to just 26%, while everything else (the “tail”) grew.
This research was done by our own Maren Jinnett using data compiled by the UK’s Civil Aviation Authority. Maren’s spreadsheet is here, with a lot more data if you want to do your own analysis.
Some background reading:
--Travolution’s series on the Long Tail of Travel
--Orbitz’s CEO: Economics of travel’s Long Tail
How were major destinations and everywhere else defined, however? Would a flight into Oakland not count as a flight into SFO? Would landing at Gatwick not be a flight to London? Is a flight to Ft. Lauderdale not Miami?
I agree Internet tech has made searching for alternative airports within a destination area incredibly easy, but I'm not ready to buy the bigger argument without slightly better definitions. If people are finding new ways to go to the same places, it changes the airline industry, but not travel, as such.
Posted by: Pete Mortensen | October 02, 2009 at 04:35 PM
Chris,
well put; your data is unambiguous. i think it also highlights the need (as in many lifestyle categories) for editors to help consumers make sense of the number of choices. TripAdvisor is almost sure to have a review of the place I'm looking for. Kayak can provide me with prices to get there.
But as a consumer, where do I start? The number of options can be overwhelming. Tools like Jetsetter (in travel), Daily Candy, UrbanDaddy, Flavorpill, Very Short List, etc. become critical resources for discovery.
drew
(full disclosure, I work at jetsetter.com)
Posted by: drew patterson | October 04, 2009 at 12:04 PM
Wow, that's alot of data, and interesting to know. I agree with "Pete Mortensen" If people are finding new ways to go to the same places, it changes the airline industry, but not travel, as such. Maybe this will even out other forms of transport, and could benefit in some way?
Posted by: marketing mix | October 06, 2009 at 04:57 AM
Indeed, a lot of data. I still prefer to travel with a plane instead of car, train or bus. It's faster and sometimes cheaper.
Posted by: social bookmarking service | October 07, 2009 at 12:12 PM
I agree with "Pete Mortensen" If people are finding new ways to go to the same places, it changes the airline industry, but not travel, as such.
Posted by: iPod Accessories | October 07, 2009 at 11:10 PM
very nice man. i would like even more information like what airlines would be the best to talk at low cost for north american and europe.
Posted by: Da | October 08, 2009 at 06:44 PM
Your post is very interesting.
Posted by: Force Factor | October 09, 2009 at 12:46 AM
With the proliferation of content, and content aggregators, and search engines...we then need aggregators of the aggregators. It's like those Russian dolls that keep opening up into smaller dolls. Death by choice?
Posted by: Ed | October 14, 2009 at 04:29 PM
I'm curious as to what travel may become like in the next decade or so with our peak oil production well into the slippery slope of the bell curve. Will travel be by sail? Or is travel itself destined to become a mention in history books as a time when we spent our resources with abandon jumping on planes just to go see things?
Very intersting piece you've done. Thank you.
Jim
Posted by: Jim | October 20, 2009 at 06:41 AM
Pete Mortensen is right on ... the airline industry definitely changes when people are finding new ways to go to the same places.
Posted by: Dan DubLi | October 20, 2009 at 10:40 AM
That's a nifty graph. I really like how it includes the actual, or at least what I think to be the actual, flight paths curved shape, which is actually how we fly.
Posted by: WebGirl | October 22, 2009 at 05:05 PM
Thanks for the blog.. I think this trend will also grow due to the strength of the pound to the euro most of people i know who usually take holidays to the canary islands etc are no looking at places like Turkey and Egypt.
Posted by: Kitchen Magic | October 26, 2009 at 05:31 AM
Wow, that's alot of data, and interesting to know. I agree with "Pete Mortensen"
www.johnvcaruana.com
Posted by: Company Formation Malta | October 26, 2009 at 06:12 AM
good yuo that democratizes, you should see more diversity
منتديات
-مقاطع يوتيوب
Posted by: مقاطع يوتيوب | October 26, 2009 at 02:00 PM
Great done and keep posted. Looking forward to reading more from you.
Thank you
http://www.freewatchtvpro.com
Posted by: Account Deleted | October 26, 2009 at 06:51 PM
Ei! Como vai você? espero que bien! Eu encontrei seu blog navegando na web e enquanto estou por aqui aproveitar a oportunidade para recomendar uma nova página e eu achei que eu achei muito bom. É uma rede social de pessoas que gostam do esporte e do exercício. Ele tem muitas características úteis, você pode manter o controle de suas atividades e rotinas da sua alimentação e dieta, manter controle de suas refeições saudáveis. Você também pode acompanhar suas medições e calcular seu peso ideal de acordo com sua idade, seu sexo, sua altura e peso.
Espero que te sirva!
Tenha uma boa semana:)
Deixo-vos o link:
http://pt.ogigames.com
Posted by: Christiano | October 28, 2009 at 01:29 AM
That's great!
forex rebellion
forex signals
fomc
binary options
Posted by: Mihail Tanase | October 28, 2009 at 01:01 PM
Very Nice Explanation about this.
thanks
Posted by: jayz | October 29, 2009 at 01:08 AM
Interesting research study, thanks for sharing it.
Posted by: how can i get pregnant | October 29, 2009 at 08:36 AM
Thanx for the valuable information. This was just the thing I was looking for, I really like how it includes the actual curved shape flight paths. keep posting. Will be visiting back soon.
Posted by: r4 ds games | October 30, 2009 at 04:38 AM
Very informative article. Thank You!
Posted by: Poor Man's Loans | October 31, 2009 at 09:01 AM
Air travel is most definitely the way to travel. There are little inconveniences once you arrive to your destination but at least the airplane ride gets you there faster. College Grants For Single Mothers
Posted by: Demark | October 31, 2009 at 09:52 AM
If people are finding new ways to go to the same places it is indeed interesting, but is the business of Ryanair. They use the smaller airports situated far from the main city. Stansted is an example for London.
People going to new places - can be because of recommandations online and the possibility to get cheaper tickets with the low price airlines - as mentioned in the article. But again it depends on the definition of new places, as mentioned above.
Posted by: Peter | November 02, 2009 at 03:47 AM
I agree with "Pete Mortensen" If people are finding new ways to go to the same places, it changes the airline industry, but not travel, as such.
Posted by: Marcio Rocon | November 07, 2009 at 11:55 AM
Excellent post, Chris, and great points by Pete M. The proliferation of small airports and the widening of what's typically considered to be a "destination" is a great example of the long tail concept in effect.
Kind Regards,
Alexandra Levit
Columnist, Wall Street Journal
Author, New Job, New You
http://www.alexandralevit.com
Posted by: Alexandra Levit | November 09, 2009 at 08:10 AM
I also agreed with Pete Mortensen. All written correctly, even have nothing to add
Posted by: Kroha | November 11, 2009 at 05:22 PM
This might prompt airlines to pick up more destinations for customers to choose.
www.namho.com.sg
www.outofsingapore.com
Posted by: www.facebook.com/profile.php?id=100000442257466 | November 11, 2009 at 07:49 PM
Seems logical...
Posted by: Sean | November 16, 2009 at 08:19 PM
Very detail article, I like it!
Posted by: World Cruises | November 16, 2009 at 08:19 PM
Planes are my preferred choose of transportation. They are just so much faster when traveling greater distances.
Posted by: Staten Island Real Estate | November 17, 2009 at 01:14 PM
I agree Internet tech has made searching for alternative airports within a destination area incredibly easy.
http://www.goarticles.com/cgi-bin/showa.cgi?C=2191896
Posted by: Ultimate Acai Max | November 18, 2009 at 12:56 AM
The amount of work done to generate such an informative an impressive report is really commendable.It was a great pleasure reading this post.
Posted by: speed dating London | November 18, 2009 at 01:47 AM
I also agree with Pete,
great!! nice article man..
Thanks for sharing
Bristol Airport Parking
Posted by: bristolman | November 19, 2009 at 01:52 AM
Excellent Article ..refreshingly honest and to the point.With so much dis information and incomplete packages to profit one need to keep to the basics eg..affiliate marketing and article submission with back links..although it can be laborious it will produce long tern results&Good luck and thanks once again for your article.
Posted by: tips | November 19, 2009 at 05:39 AM
Very interesting post. The challenge, as Valyn rightly points out, is alot of research/looking, and not alot of booking – at least not at the initial point of contact. I think Alex is right – what will develop will be marketing platforms, hosting travel companies that understand the long lead times and research-heavy aspect of these types of complex travel products.
Posted by: CG tutorial | November 24, 2009 at 11:36 PM
Fascinating travel study. If anyone wants to travel by motorcycle once they hit the ground they should check out Georgian Bay Coastal Route in Ontario!
Posted by: Gem | November 25, 2009 at 07:27 AM
I have read the article which tells the graph plan chart of the travel sequence and its aspect ratio which ultimate depends on the destination process.I agree that if people are finding new ways to go to the same places it is indeed interesting, but is the business of Ryanair.Its truly says that there is long tail of the traveling.
Posted by: grüner tee | November 26, 2009 at 07:58 PM
We provide the best financial services and loan facility at a negligible rate of interest.Check it out by clicking at the following link
============================================
frank
cash advance loan
Posted by: Cash Advance Loan | November 30, 2009 at 03:59 PM
Hi there - this is an interesting post as is speaks to why we started our company Zoombu (www.zoombu.co.uk). We're building a tool to help people find the best way to get from A to B, where the origin and destination can be your home or your hotel, not restricted to international terminals. We search and compare many modes of transport and pcik out the cheapest, fastest or greenest end-to-end route. We're in private beta currently but we're inviting test users to sign up to try it out.
Posted by: Rachel Armitage | December 04, 2009 at 10:50 AM
The details given in this site is useful and information is clear.
health insurance
health insurance
Posted by: sandy | December 08, 2009 at 04:34 AM