Recently I wrote the following:
Today we always think of air as the initial point at which the commitment is first made and the payment is first taken, but is it too wild a thought to imagine this model being flipped on its head? If the airline websites do not adapt from their current transactional focus, then for a reasonable percentage of the leisure market, could air actually be the ancillary product sold in future? It happens today with cruise, so maybe this idea is not so crazy after all.
I’ve just returned from the Amadeus Airline e-Commerce Conference in Cannes, and almost the entire afternoon of the first day was spent covering the topic of airline websites moving more into the inspiration space and targeting the undecided traveler. I’ve written my extensive hypothesis on that topic recently, so today I want to take it from a slightly different angle.
I was reading an article on cool hotels around the world and clicked on the link to the ME Barcelona Hotel. What I found most interesting was nothing to do with the hotel itself, but the search panel on the homepage. I’ve marked in red the section on this page relevant to my opening quote.
The hotel is actually seeing itself as the primary reason for going to Barcelona, and the air segment as ancillary to the room! Is this is trend we will see more of? I’m not convinced the answer is yes, but the truth is I really don’t know. One thing I do know is that this threat is something airline websites at least need to have somewhere on their radar when planning the evolution of their own sites.
It is very early days in this possible trend, and as my experience with ME Barcelona shows there are still a few bugs to iron out, but the idea behind the way they are thinking is without doubt quite impressive. The hotel plus flight option is powered by Ezrez technology, although unfortunately my first search looking at a flight from Madrid to Barcelona came up with text reading “There are no flights available for the time/date you chose. Please select a different time, date or airline” as can be seen on the below screen shot.
Luckily the next search from London to Barcelona yielded better results, but a few bugs do not detract from the potential longer term significance of this move. Even a subsequent search from MAD-BCN returned a proper result, so maybe the screen shot above was a random fluke and an unreproduceable error.
Before moving on, I do have to ask why the date is shown in US and not European format. I myself am trying to change spelling to US format given I am now working there, and I’m even trying to change some of the words I use that have little significance to Americans; I used the word luddite recently to refer to late adopters of technology and got nothing but blank stares, so clearly this is one piece of vocabulary I need to drop. But back to Ezrez, I notice they have used a non US date format for AirAsiaGo, so one assumes it is just a site setup oversight from whoever was working on the ME Barcelona implementation, and not some hard coded technical limitation.
Back to the original theme behind this post: some airlines may choose to remain transactional websites, and maybe there are some good reasons for certain airline brands or geographic markets to react this way, but at least the analysis needs to be done first so that such a decision can be made in an informed manner.
I don’t normally keep a close eye on the hotel industry, so maybe other hotels are doing likewise, but this is a trend that I am interested to watch more closely in future to see if it catches on. If it does, this will not be positive for the customers I spent last week with in Cannes.


June 7, 2010 at 9:59 pm
Martin,
I’ve been munching over this: is it an strategy (travel inspiration: tackling the hotel exploration) or the result of just trying to obtain as much revenue as it is possible from a client?
June 8, 2010 at 8:23 am
Mario, this hotel site is not at all what I would term “inspirational” but whilst it is challenging enough for an airline to move into this space, it would be near impossible for one hotel site to do it (maybe a hotel brand master site?). But with ME Barcelona, what is impressive is that they are using other media to inspire people (eg. the article I was reading and then linked to above) with the desired result being readers may get inspiration from that non travel publication and then be inspired to visit this hotel in Barcelona (there are a lot of architecture buffs out there). When they visit the site, the hotel is hoping they will buy their flight there as well rather than having your go to the airline website. Someone who books direct on a hotel website is probably the sort of person who would have a preference for airline direct websites, so that is one sale lost for the airline direct channel. This was the point I was trying to get across with this post.
June 8, 2010 at 4:02 pm
Hi Martin,
tour operators do something similar – first you chose your destination, resort, lodging option, extras… then you add/configure the flights. I don’t think any airline would like to become an ancillary and be commoditised even more, on the opposite they should really build their own brand and focus on their values. Like Virgin. The problem is that most airlines have a brand received from above and are trying to be everything to everyone, often due to their monopolistic backgrounds. With monopolies long gone, they need to find their own identity
June 9, 2010 at 6:20 pm
Daniele,
You won’t get any disagreement from me on the power of branding, but given so few airlines have a clearly differentiating brand proposition, maybe this is an even tougher challenge than mastering travel inspiration.