Trends and Issues in Global Tourism 2007 · Roland Conrady Martin Buck Editors Trends and Issues in Global Tourism 2007 With40Figuresand40Tables 123 ProfessorDr.RolandConrady UniversityofAppliedSciences Erenburgerstraße19 D-67549Worms Germany [email protected] Dr.MartinBuck ITB Messedamm22 D-14055Berlin Germany [email protected] LibraryofCongressControlNumber:2007921121 ISBN978-3-540-70831-5SpringerBerlinHeidelbergNewYork Thisworkissubjecttocopyright.Allrightsarereserved,whetherthewholeorpartofthematerialis concerned,specificallytherightsoftranslation,reprinting,reuseofillustrations,recitation,broad- casting,reproductiononmicrofilmorinanyotherway,andstorageindatabanks.Duplicationof thispublicationorpartsthereofispermittedonlyundertheprovisionsoftheGermanCopyright LawofSeptember9,1965,initscurrentversion,andpermissionforusemustalwaysbeobtained fromSpringer.ViolationsareliabletoprosecutionundertheGermanCopyrightLaw. SpringerisapartofSpringerScience+BusinessMedia springer.com ©Springer-VerlagBerlinHeidelberg2007 Theuseofgeneraldescriptivenames,registerednames,trademarks,etc.inthispublicationdoes notimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant protectivelawsandregulationsandthereforefreeforgeneraluse. Production:LE-TEXJelonek,Schmidt&V¨ocklerGbR,Leipzig Cover-design:WMXDesignGmbH,Heidelberg SPIN12018413 43/3100YL-543210 Printedonacid-freepaper Preface As other industries, the global travel and tourism industry has been facing im- mense challenges and highly visible upheaval since the beginning of the new mil- lennium. The International Tourism Exchange ITB Berlin, the world’s leading travel trade fair, aims at pinpointing the most important challenges, identifying the trends and offering a platform to solve pressing problems. The ITB Convention Market Trends & Innovations has developed into a center of excellence and a driving force for the global travel and tourism industry, generating a much needed information platform. This compilation unites the highlights of the convention in articles prepared by renowned professionals and scientists from the industry. Readers may benefit from this comprehensive vision of the developments which are shaping the struc- ture of the global tourism industry today and in the future. This book is indispen- sable for tourism and travel professionals and well as for academics and students analyzing current global tourism and travel trends. The first chapter takes up the issue of mega trends in society and in the econ- omy and analyzes their effects on the tourism industry. In highly developed coun- tries, overwhelming demographical change is underway. Schröder and Widmann demonstrate how tourism businesses should adapt to the aging customer base. Diana Jaffé investigates the influence women have in the processes of making travel decisions – a topic which has been completely ignored in the past. In view of the fact that the influence of women in the economy and society (the ‘Eve- olution’) is notably growing in almost every country, a valid analysis is urgently required. Market polarization has also finally caught on in the global tourism mar- ket. Maria Pütz-Willems identifies development trends in the luxury and budget hotel industry. The low cost segment has been showing signs of dynamic devel- opment over the past few years. Based on a European survey of low cost flight us- ers, Gerhild Abler and Michael Ehlting provide valuable insights to the smart shopper consumer profile. The second chapter deals with the most important challenges in the global air transport industry. Dynamic market penetration triggered by low cost carriers has recently become an issue in all international markets. Adrian von Dörnberg exam- ines the development of low cost carriers in the USA, Europe and Asia. The Euro- pean air transport market is on the threshold of a merger and acquisitions phase. Jens Flottau interviewed one of the key players in European air transport consolidation, Christoph Franz, CEO of Swiss International Air Lines. Similar to airlines, airports VI Preface are going to become crucial players in future developments in the air transport industry. Jürgen Ringbeck devises a scenario identifying the optimal design for the European airport landscape, which would satisfy industry requirements. The third chapter offers insight into the destination management, a subject area that has been neglected far too long. Large sporting events such as the FIFA World Cup 2006 have the potential to launch positive sustainable developments in the tourism industry. Holger Preuss analyzes the extent to which the FIFA World Cup 2006 has been successful. On another note, shopping has become a key travel experience especially for tourists in the emerging markets in Asia. Werner Frie- drich provides suggestions on how destinations can fulfill this important travel motivation. Destinations are, like other products, subject to a lifecycle. Hence, Markus Schuckert, Claudia Möller and Klaus Weiermair examine the issue pro- longing the destination lifecycle in the Alps – a fundamental issue for many desti- nations in view of global climate changes. The fourth chapter addresses price policy and distribution. Georg Tacke and Claudia Fichtner demonstrate that the commission systems currently used by tour operators are often inadequate to manage travel agency sales. They formulate ba- sic principles for a commission system capable of aiding tour operators to achieve essential control objectives. Martin Buck seizes the opportunity to discuss the cur- rent distribution phenomenon in the German market. Drawing on previous experi- ences with selling travel products through retail chain stores, he discusses whether these new distribution channels could generate serious competition with travel agencies. The fifth chapter deals with the current developments in travel technology. Web 2.0 refers to a new generation of Internet technologies and the dramatically changed Internet user behavior. Making reference to several analyses from Pho- CusWright Inc., Roland Conrady investigates how the global travel and tourism industry has to adapt to the paradigm change in the Internet. Kerstin Markus and Rainer Hartmann demonstrate ways to tap into the 50-plus target group imple- menting accessible websites in the cruise industry, a growth segment still lacking adequate Internet-orientation. The great economic significance of the business travel segment is often under- estimated. In the chapter six, Gerd Otto-Rieke analyzes trends and challenges for global business travel management. The seventh chapter provides an insight into the long-term perspectives of travel and tourism. Space tourism, currently a spectacular niche segment, will possibly become more important. New technical potentials and the human desire to strive for unique adventures will open up space as a tourism market. Robert A. Goehlich defines possibilities and barriers for space tourism. The book re- ceives the finishing touches with Eva Ludwig’s contribution. She portrays the future of leisure travel in a comprehensive outlook based on a study by the Swiss Gottlieb Duttweiler Institute for Kuoni Travel Holding Ltd. On the whole, readers will appreciate how all the other contributions seem to fit right in with this overall perspective. Preface VII This work could not have been achieved without the remarkable dedication on behalf of the authors, who for the most part have taken on executive positions in the tourism economy. Furthermore, the unfaltering diligence of Daniela Rist, As- sistant at the Faculty of Tourism and Transport, University of Applied Sciences Worms, and of Alexandra Salamon, former student at the faculty, has contributed to the quality of this book. Our wholehearted thanks go out to each and every one of you who helped make this book possible. Last but not least, we would like to thank Dr. Martina Bihn for continually providing valuable help and advice. Frankfurt/Berlin, January 2007 Roland Conrady University of Applied Sciences Worms Martin Buck Messe Berlin Contents Mega trends and their impact on the tourism industry Demographic change and its impact on the travel industry: Oldies – nothing but goldies? Achim Schröder, Torsten Widmann 1 Introduction........................................................................................................3 2 Quantitative changes in the potential for tourism demand.................................3 3 Forecasting further development in the number of vacation travelers and attempting a continuative evaluation up to 2050.........................................4 4 The boom market seniors...................................................................................5 5 Trends in selective tourism market segments....................................................8 5.1 Development trends in the market segment “senior tourism”...................8 5.2 Development in the market segment “tourism with children”.................10 6 Those still traveling in the future: Consequences and recommendations........11 7 Other research requirements for tourism science.............................................15 References.............................................................................................................16 Eve-olution: Women’s rising power in travel decisions Diana Jaffé 1 Travel decisions: Who makes them?...............................................................20 1.1 Who decides how to use the household income and assets?...................20 1.2 The myth of the “mutual purchase decision”..........................................21 1.3 Target group analysis..............................................................................22 1.4 Traveling in the female perception..........................................................23 2 What is gender marketing?..............................................................................24 3 What new aspects does “gender” contribute to marketing?.............................25 3.1 Biological factors....................................................................................25 3.2 Psychological factors...............................................................................26 X Contents 3.3 Decision-making.....................................................................................27 3.4 The extended marketing mix...................................................................28 3.5 The distinctive gender roles for the tourism industry..............................29 3.6 The current tourism offer from the perspective of female decision-makers.......................................................................................29 4 Checklists........................................................................................................30 4.1 Market and consumer research................................................................30 4.2 Questions during the planning and development process........................31 References.............................................................................................................31 Polarization of markets: Luxury and budget hotels Maria Pütz-Willems 1 One or two stars: Playing with the customer's expectations............................33 2 Even budget includes a service promise..........................................................34 3 The new budget design wave...........................................................................35 4 More international budget concepts to come...................................................36 5 Concepts to be modified to mentalities............................................................36 6 The luxury market...........................................................................................37 7 7 stars: Indicators for the luxury diversification..............................................37 8 Services justify the price..................................................................................38 9 Luxury – an investment sophistication............................................................38 10 Luxury touches lifestyle..................................................................................39 11 Migration from traditional to designer hotels..................................................40 Smart shopping in the European low cost flight market Gerhild Abler, Michael Ehlting 1 The smart shopper consumer profile...............................................................41 2 Low cost flight users epitomize smart shoppers..............................................42 3 Even with low prices the consumer expects good service from brand airlines...................................................................................................44 4 Classifying various airline concepts................................................................45 5 Brand airlines and hybrid carriers will presumably grow more rapidly in the low cost flight segment than the no-frills carriers......................................46 6 Conclusion.......................................................................................................49 Reference...............................................................................................................49 Contents XI Aviation management The global phenomenon of “low cost” carrier growth Adrian von Dörnberg 1 Introduction......................................................................................................53 2 The driving forces – consumer behavior and technology................................55 3 The value chain for low cost air transport........................................................56 3.1 Operational..............................................................................................56 3.2 Airports...................................................................................................57 4 The future of low cost air travel in a competitive industry..............................57 4.1 Scenario A...............................................................................................58 4.2 Scenario B...............................................................................................58 References.............................................................................................................59 Consolidation in the airline business Jens Flottau Interview with Christoph Franz, CEO of Swiss International Air Lines...............61 Effectively planning and managing European airport capacity Jürgen Ringbeck Preface...................................................................................................................69 1 Introduction......................................................................................................69 2 How to ensure an effective management of airport capacity?.........................73 3 Summary and overview...................................................................................79 Destination management FIFA World Cup 2006 and its legacy on tourism Holger Preuss Abstract.................................................................................................................83 1 Introduction......................................................................................................83 2 Literature review and definition of the term “legacy”.....................................84 3 Measuring the FIFA World Cup legacies........................................................86 XII Contents 3.1 Benchmark approach to identify FIFA World Cup legacies...................86 3.2 Econometric measurements to identify World Cup legacies...................87 3.3 Analysis of the event related changes and their influence on location factors...................................................................................90 4 Conclusion.......................................................................................................99 References...........................................................................................................100 Traveling to a shopping adventure Werner Friedrich 1 Essential aspects............................................................................................103 2 Determining factors and actual commercial relevance..................................105 3 Types of tourism shopping destinations........................................................108 3.1 City center.............................................................................................108 3.2 Rural areas with potential for tourism shopping...................................108 3.3 Shopping centers...................................................................................109 3.4 Brand lands and flagship stores.............................................................110 3.5 Factory outlet centers............................................................................110 3.6 Cross-border shopping..........................................................................110 4 General conditions and success factors for shopping tourism.......................110 5 Development potential for shopping tourism................................................113 6 Recommendations.........................................................................................115 References...........................................................................................................119 Alpine destination life cycles: Challenges and implications Markus Schuckert, Claudia Möller, Klaus Weiermair 1 Introduction...................................................................................................121 2 Theoretical framework...................................................................................124 3 Set of data and method..................................................................................127 4 Results...........................................................................................................128 5 Conclusion.....................................................................................................131 Acknowledgments...............................................................................................132 References...........................................................................................................133