Travel Tech Essentialist #148: Authenticity
Many stories in this newsletter highlight the power of authenticity. From genuine in-person connections to Oslo's compelling and honest anti-ad, to honest values and answers, I hope this newsletter resonates with you. If it does, please share it. Have a great summer, y'all!
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Note: In my previous newsletter, the link to my report on the full-year 2023 results for ten publicly traded online travel companies was incorrect. Here is the correct link: The State of Online Travel Agencies
0. The most clicked link in the previous newsletter
The most clicked link in Travel Tech Essentialist #147 was Brennen Bliss' (founder & CEO of Propellic) post Google’s Algorithm Leak & What It Means for Travel SEO
1. The Golden Age of IRL
The next 10-20 years will be, maybe paradoxically, the golden age of IRL. — Avi Meir
Avi Meir, founder of TravelPerk, recently shared his thoughts on LinkedIn about the importance of community, inspired by a dad’s experience at a Taylor Swift concert. Humans naturally seek community, but traditional venues like churches and local clubs have been replaced by social media, which often leads to isolation instead of connection. Meir believes live events centered around shared rituals, symbols, and values will become increasingly important in the age of AI and the metaverse.
The numbers back this up: the live events industry was valued at $1.4 trillion in 2023 and is projected to reach $2.2 trillion by 2032. In the US alone, over 500 live music festivals were held in 2023, with this number expected to increase by 10x in the next decade.
2. What are you willing to give up?
Google “Examples of Corporate Values,” and all you’ll see is fluff: integrity, respect, honesty, loyalty, hard work, etc.… Not that there’s anything wrong with these, but they should all be basic traits for any professional. As corporate values, they’re neither memorable nor authentic.
Mark Zuckerberg explained his straightforward, fluff-free approach to company values in a 2017 conversation with Reid Hoffman (LinkedIn founder). To identify your company values, Zuckerberg suggests asking, “What are you willing to give up?”
“So the value is actually ‘move fast.’ My whole theory on values is that a lot of organizations have values that don’t mean very much because they’re just table stakes, things like ‘Be honest.’ Of course you’re going to be honest! That’s not an option—you’re not giving anything up, to be honest; that’s an automatic. That shouldn’t be a defining principle of the company but a principle of every company. So, ‘move fast’ is interesting because you actually have to be willing to give something up to get it. And the question is, what are you willing to give up?”. Early on, the trade was, “Move fast and break things.” These values always come down to what you are willing to give up to get something. Because they’re not free. Nothing is. — Mark Zuckerberg
3 eDreams Prime: 💯 in Acquisition, ❓ in Retention
Here is eDreams’s corporate value: “We are passionate about travel: we fly high, we set the path, we journey together, and we explore” (Annual Report FY 2024). I can only imagine what Zuck might say about a travel company making passion for travel its core value.
Deservedly, eDreams is also very passionate and proud of its Prime subscription, which has 5.8 million subscribers. In fact, mentions of “Prime” in eDreams’ annual reports far exceed those of “Sales,” “Flights,” “Bookings,” and even “Travel.”
The term “Prime” appears more often in eDreams' annual report than in Amazon's (the original Prime), which has 230 million subscribers: 398 mentions of ‘Prime’ for eDreams vs. 32 for Amazon. But Amazon beats eDreams in mentions of ‘Sales,’ with 175 compared to eDreams’ 25.
eDreams has been very successful in acquiring Prime subscribers. As I searched for a flight from Barcelona to New Orleans this morning, I saw that I would get a discount for €87 as a Prime member. This more than pays for the €69.99 yearly Prime subscription fee.
It’s never been entirely clear to me what the actual benefits of eDreams Prime are, but in a way, it might not even matter since eDreams makes it attractive for customers to sign up for Prime in their first transaction, regardless of what the program benefits are after that transaction.
Despite the hundreds of mentions of Prime in eDreams’ investor communications, however, there is no single mention of the most critical metrics of a subscription program's real customer value: Churn and Retention. Here is a Question (from an analyst) & Answer (from eDreams CEO) in their latest quarterly results presentation and Q&A:
Companies expecting to be valued at a premium from their recurring revenues should be required to disclose these basic metrics. If private companies disclose this information to investors who ask, the more reasons for publicly traded companies (not only eDreams) to do so as well.
4. Travel Creator Economy
Houlihan Lokey, a leading global technology M&A boutique, released an interesting report: Creator Technology Outlook. The creator economy has expanded beyond just “influencers” to include a wide range of creative professionals. There are over 200 million creators globally, driving a massive economy valued at $250 billion in 2023, with projections to grow to $480 billion by 2027. These creators are fueling the success of major social platforms, where traditional media companies hold only a small share of views: 5% on TikTok, 6% on YouTube, and 5% on Instagram.
In 2022, I wrote in The End of Faceless Brands and the Evolution of the Influencer that the influencer-business combination was just beginning. The travel industry is a natural fit for this trend. I questioned if travel companies would start making M&A deals with influencers or give them significant ownership shares to leverage their reach. This seems more logical than spending billions on marketing channels that drive transactions but don't build loyalty or preference.
Supporting this trend, Travel-as-a-Service startups like Thatch, Drimer, Xeni, Dharma, Plannin, Unravel, TrovaTrip, or @Hotel are making it easier for creators to integrate travel into their brands, further solidifying the bond between travel and the creator economy.
5. New trend: Micro Weddings (and two startup ideas)
Micro-weddings seem to trending up, and weddings seem to be trending down.
Greg Isenberg shared a couple of startup ideas (and the steps to launch them) based on this trend. In summary:
A Micro-Wedding Planning Agency offering all-inclusive packages for unique venues like gardens and rooftops. Starting at $5,000, packages include ceremony, photography, flowers, dinner, and cake. Steps: identify unique venues, develop a professional website with SEO content, run targeted ads on Instagram and Pinterest, and build partnerships with local vendors.
A Micro-Wedding Content Hub providing curated stories, planning guides, and vendor directories. Monetize via affiliate links and memberships. Steps: curate inspirational content, offer planning tools, monetize, and leverage social media.
Good luck!
6. Reddit > Instagram for authentic travel advice
According to this WSJ article, travelers seeking authentic and expert content are turning to Reddit instead of Instagram and TikTok. To get the most out of your travel research in Reddit, the author suggests:
Be Specific: Start by finding the right subreddits for your interests. The more niche, the better.
Go Local: Go into local forums for genuine advice from residents. You are more likely to get unique perspectives.
Get Creative: Use Reddit for offbeat research and DIY quests. Whether you're into unique architecture or searching for quirky roadside attractions, Reddit’s in-depth discussions can help you uncover hidden gems.
7. American Express Global Travel Trends Report
The 2024 report highlights the driving forces behind why people are traveling. Findings are based on data obtained through an online poll conducted among 7,000 travelers from the US, Australia, Canada, India, Japan, Mexico, UK who have at least a $50k+ income equivalent and typically travel at least once a year.
At a glance:
For inspiration, travelers turn to friends or family (52%), social media (39%), and travel websites (37%)
75% of respondents who plan to travel to a sporting event in 2024 will spend at least 3 hours getting there
76% of Millennials and Gen-Z (compared to 69% of all respondents) say they are planning on taking a solo trip in 2024
44% of respondents said they prefer to take a spontaneous trip instead of having all the details planned
8. UX and UI beyond digital
UX and UI shouldn't be limited to digital interfaces. Design and user experience should extend to every physical interaction with guests. In his Hotel Nuggets newsletter, Peter Fabor shares a small detail that speaks out loud about a hotel's commitment to guest care.
I was at CitizenM New York last week, searching for the restrooms near the elevators...A cleverly placed sign not only guided me but also brought a smile to my face. It’s the little things that truly enhance our experience and show that a hotel really thinks about the comfort of its guests. — Peter Fabor
9. Fluff question, real answer
10. “I wouldn’t come here, to be honest. Is it even a city?”
This is such a great anti-ad by Visit Oslo. It leaves you wanting to experience as a tourist the small things that seem to make Oslo a great place to live.
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Flight Centre Travel Group | Product Designer | Barcelona
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Stay22 | Senior Partnership Manager - Events | United States
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Mauricio Prieto
Don't forget about Thatch when mentioning travel creator economy :) We have 8,000 creators selling in 80+ countries. ( Far more than many others mentioned combined)
With respect to the benefits of eDreams' Prime program, don't you, in part answer your own question as to its benefit? You save 87 euros on the flight booking........