Micro vacations and trips planned with shorter notice are on trend for 2019

Riverwoods, IL | May 24, 2019–More Americans will pack their bags for a summer vacation this year, but most are keeping their trips short, according to a new national survey from Discover. The survey found 71 percent of consumers plan to take a vacation this summer (from May through September), compared to just 58 percent in 2018.

The survey found that most consumers plan to take micro vacations (shorter trips of one to three days) this summer. Fifty-five percent of respondents said their summer trips will last one to three days, compared to 21 percent who said four to six days, 12 percent who said one week, 6 percent who said 8 to 13 days and 5 percent who said their trip will last two weeks or more.

In addition, consumers are planning their summer vacations with relatively shorter notice. Forty-six percent of respondents said they plan their trips three months or less in advance, compared to 26 percent who said four to six months, 11 percent who said seven to nine months, 10 percent who said 10 to 12 months and 8 percent who said more than one year in advance.

Younger Generations Travel Differently

While more consumers plan to travel overall, younger generations are more likely to take a vacation this summer than older generations, as 77 percent of Gen Z and 76 percent of millennials are planning summer trips, compared to 67 percent of baby boomers and 60 percent of the Silent Generation.

When it comes to accommodations, younger generations, 21 percent of Gen Z and 16 percent of millennials, are more open to staying in home rentals compared to other generations, 8 percent of baby boomers and 5 percent of the Silent Generation.

Younger generations also have different priorities about what they want most out of their vacations. Twenty-five percent of Gen Z and 25 percent of millennials are looking to spend time with their friends and family, while 41 percent of baby boomers want to relax on their trips.

Younger consumers are also most likely to splurge on activities while on vacation (36 percent of millennials and 30 percent of Gen Z), whereas older consumers said they would rather splurge on food and dining (43 percent of the Silent Generation and 37 percent of baby boomers).

Consumers Prefer to Use Credit Cards When Traveling

Credit cards are the leading form of payment while on vacation, with 39 percent saying they prefer to use their credit card to other forms of payment when traveling.

More consumers plan to cash in credit card points for their summer vacations, as 18 percent will use points entirely to pay for their trips, up from 13 percent in 2018. Younger generations are more likely to use points for their vacations than older generations – 38 percent of millennials and 35 percent of Gen Z, compared to 28 percent of Gen X, 18 percent of baby boomers and 15 percent of the Silent Generation.

There is a knowledge gap when it comes to booking trips with points, as 41 percent of consumers feel they do not know what they are doing when they book trips with credit card points. When asked how they feel about doing so, 29 percent of Gen X and 27 percent of millennials said they feel restricted in their ability to book because points dictate their airline and hotel choices.

“The core value of a travel credit card should be simplicity, especially in earning rewards while traveling, or redeeming your rewards to take a road trip or fly cross-country to visit family and friends,” said Laks Vasudevan, vice president of card programs, strategy and marketing at Discover. “That’s why our Discover it® Miles card offers a simple rewards structure – 1.5x Miles on every dollar spent on purchases. Plus no airline restrictions or blackout dates. You can easily redeem Miles as a statement credit for travel purchases, all without an annual fee1.”

The top global mega-trends in airline travel clearly define the present and future of aviation travel today and a few of the changing keywords and phrases are defining terminology that drove the Singapore APEX show: Connectivity, Innovation, Individual Empowerment, and Productivity are just a few of the terms that stood out to us. Another way to put it is basically travelers are using technology to improve their travel experience, lifestyles, and their world in general. Makes sense! In fact, “Connected” was probably the most commonly used word and we heard and saw it in action all over the show, in the city offices/buildings/shops, and in travel – folks have their smartphones and tablets out everywhere and find them more interesting than just about anything around them. But more importantly, this connected, informational lifestyle change has affected the future of travel locally and internationally. You had better believe folks like the airlines, retailers, and Google see that connectivity is the future.

CONNECTIVITY & TRAVELING TODAY

The APEX Conference in Singapore clearly demonstrated that connectivity is the heart of travel by Millennials and the rest of the device focused population.  Interestingly, some 40% of passengers carry all 3 devices – laptop, smartphone and tablet – and, yes, we did the same! One expert noted that some 83% of passengers carry a smartphone onboard while over 50% of passengers value onboard Wi-Fi as a key criteria in airline choice. This certainly explains the unofficial show focus on the subject of travel connectivity. It is what is needed and so it is what’s happening.

Mobile services are becoming a big deal: an amazing 57% of travelers are using self-service for check-in and some 89% are aiming to implement mobile check in and boarding by the end of 2016. And there is no end to the airline apps that provide utility and reward for uploading. One technical meeting even tried to sort out all the data communication and ticketing communication issues that exist because every airline and ticket information collection effort is different and standards are in need of development.

Make no mistake, connectivity is a big deal today but it is about to get even bigger. Presently, some 4,982 airplanes are “connected” aircraft, but by 2025 there will be 16,560 connected aircraft, and when we refer to the connected aircraft we mean passenger connectivity and airline operations data as there are already connections to and from the flight deck for pilots and flight critical information. Further, reported digital ancillary revenues are tracking connectivity growth. For example, one speaker reported that in 2015 revenues were $40.5 Billion and by 2020 they are predicted to reach $130 Billion!

Today’s modern traveler, as one speaker stated, is “embracing connected platforms, living online, and discovering more through digital technology” and by just visiting an airport you will find that statement true. And, of course, Google sees a place (market) in pre-flight, in-flight, and post-flight, connectivity options – smart folks! As one industry panelist said: “The digital world enables the discovery of the real world!”

During APEX the IFExpress team talked to some 50 to 60 companies and we found a lot of real stories that we will deliver in the coming weeks; however, we thought that we would give our readers some hints, thoughts, views and temptations of what is to come in the next month or so.

WHAT WE SAW – SOME SURPRISES, SOME EXPECTATIONS

1) From a general perspective, companies were focusing on the end-to-end experience for the passenger. For example, enabling the airline to engage the passenger via the airline app after ticket purchase but before the date of flight. Continuing the engagement process through the airport, onto the aircraft and until the arrival at the hotel/home. This is mostly being implemented through software upgrades, software hooks, and data mining but there were some new products and services in the offering. Airlines want to be able to ‘engage’ their passengers more throughout the trip – providing a tailored experience even in drudge class.
2) This was a year where IFExpress saw more focus on software iterations vs. new hardware/technology developments. Mind you, this is a broad generalization as there were some updates to existing servers with larger SSD and one or two new technology applications being exhibited. However, on a whole we saw a focus on utilizing existing hardware with improved software to enable data acquisition to enhance the passenger experience and improve the real-time evaluation of aircraft operations all enhanced by increased memory. Both of these have been longtime goals either by the airlines, OEMs or both.

3) IFE vendors were also focusing on the ability to provide the airline with operations information real-time. For example, this will enable the airline to reduce down-time of aircraft, increase turnaround time when there is a mechanical issue. The benefits of real-time data acquisition will be achieved by utilizing the various methods of communication now available to the airlines – broadband (satellite), Wi-Fi, 3G/4G cellular, and gatelink. The method of transmission is determined by the critical nature of the data and the transmission environment. For example, if there was an engine issue, it could be transmitted real-time to the ground so a repair crew could meet the aircraft upon landing, facilitating a quicker turnaround of the aircraft and maybe even keeping the next flight’s departure on time, possibly through an existing non-engine data communication network. Obviously, certification of these and competitive solutions will greatly affect these connectivity solutions. But, all of this saves the airline money in the long run. Obviously this would work with more certainty for an IFE screen that was malfunctioning or a seat that was inoperable over a cabin connectivity ground-to-air link.

4) The aforementioned services also provide the vendors with the ability to offer the service of monitoring and evaluating other non critical (or not as critical) data to an airline – especially if the airline doesn’t want to analyze the data in house. This is a potentially new revenue stream for the vendors and possibly a field for new vendors.

5) Much of the software iterations we saw at the show allowed the airlines to tailor their GUI and media in house and real-time. As an example, airlines now have the capability to analyze whether movie “A” is being viewed as anticipated, if the viewing falls short of anticipated numbers the airline can switch it out with another option prior to the current media cycle being completed. This not only keeps the media fresh but allows the airline to get better value from their media expenditure. Also, the ease of using these software tools allows airlines to potentially have a smaller number of individuals working on media management. We should mention that with this approach to content monitoring the possibility of linked content loading is also an example of real-time performance monitoring.

6) With the advent of Wi-Fi, gatelink, etc. we are seeing faster media load times. We also saw the ability to load new content while the aircraft was in use as mentioned above. This all saves time for sure now, and money in the future.

7) Broadband solutions are finally coming online to make the aforementioned a reality by providing global coverage. Some vendors are investing heavily in either their own satellites or purchasing dedicated transponder space.

AND MORE OBSERVATIONS

8.) There were a few of 100+ airplane IFEC hardware deals pending (and done) that may be a surprise to some.

9.) There were a few new IFEC entrants comprised of young, technical developers who want a piece of the IFEC business and we will watch their growth. And yes, some of the troops were from the old school companies that have less to offer, or offer nothing at all new today.

10.) One company, and one company alone, offered a true Bluetooth in cabin wireless connectivity solution with both low data and high data solutions.

11.) USB – C is here and the folks from IFPL will have more to say about it in another story.

12.)  As Ka-Band connectivity makes the scene we might even see lower competitive data products, but that is, of course, a prediction.

13.) One company in the flight path mapping arena blew our minds with the way their ‘Silicon Valley’ Top Dog showed IFExpress his plans to deliver a planned and plotted solution to your travel plans, in the air AND ON THE GROUND.

14.) Some new entrants to the IFEC madness have a couple seemingly good ideas that we had never heard of and plan to surprise us all soon!

15.) It is always a surprise to visit a vendor that told us what was coming last year and we missed the big picture – only to get a personal awakening this year. ‘Passenger connectivity before, during, and after a flight’ is the subject and the folks at SITONAIR really had their act together about it.

16.) Happy 25th Birthday GoGo!

17.) There is no place better on earth to throw an outdoor reception than Singapore: The top of buildings provide a view unlike no other on this planet, and they feature the best of everything. Thank You Gogo, Panasonic, Thales, APEX and everyone else that provided an incredible list of evening entertainment and hosting – you folks are the best! Be sure to check out our flckr link for expo images!

OTHERS SAID
IFExpress talked to many attendees about the show and we decided to share some of their comments with our readers:

1) Attendance was noted: “I was surprised how well-attended it was, considering all the people from North America that I knew would not make the trip.”
2) “Education Day on Monday before the EXPO had some very good presentations – Hopefully they should all be posted on the APEX website soon (audio and PP slides).”
3)  We asked about technical/products announcements that made sense and one respondent noted: “FTS Technologies’ flight attendant app for the smartwatch was the best that I saw.”
4) Another area that really counts is networking and the value of getting together: “The networking was great – events were fun and talked with a lot of people.” We couldn’t agree more.
5) Industry news is always a big deal and we asked one news expert and she told IFExpress: “The biggest news had to be the Rockwell acquisition of BEA, depending on their strategy for ‘hands-off’ management vs integration into the Rockwell family. If RCI takes a hands off approach and lets BEA continue to operate on its own, then the news might be different. If RCI tries to integrate it into RCI operations or develop an IFE system to sell with seats as a package deal, then it’s possibly even bigger news!”
6) One vendor told IFExpress: “I don’t know if co-locating with AIX Asia and FTE really achieved any cross-over attendees that would not have gone to APEX anyway – every time I went down to see AIX and FTE the floor there it was really dead.”
7) Another IFE vendor told us; “Except for the wireless apps, no real standout technical or new product announcements that we saw.  Probably the next most interesting things were the VR experience by Neutral and the Immersive Glasses by Skylights.  Also, Ron Chapman’s Bluetooth text communications product working over Iridium is real interesting too.”
8) Another show goer told us we could also add a mention about the new APEX Awards and the fact that they were expanded from 2 to 8 categories this year. “It’s a step in the right direction since IFEC is too diverse a subject to shoehorn all the products and services into a couple categories.” And, we couldn’t agree more!

Lastly, we need to say that Joe Leader and his team of real experts did a great show job. Thank you for inviting us and keep up the good work!

Barcelona | May 24, 2016– Airline passengers across the globe are so comfortable with technology today that they are choosing to use it rather than interacting with people. This is according to the 2016 SITA Passenger IT Trends Survey, a global survey released today by IT provider SITA and co-sponsored by Air Transport World.

SITA’s survey shows that 85% of passengers had a positive travel experience, up from 80% last year. Noticeably, passengers are happier at the steps of the journey where they have more choice and control in how they manage their trip. At booking, which they can do online, using a mobile or with an agent, 93% had a positive experience.

Passengers experience the most negative emotions during the security screening, passport control and baggage collection steps of the journey, peaking at nearly one third of passengers at security. These are also the steps with the least number of self-service technology options.

Francesco Violante, CEO, SITA, said: “Knowing that passengers prefer using their own devices and self-service technology throughout the journey should encourage airlines, airports and government to examine how they can transform the experience at security, border control and baggage collection. The technology is available today and the industry can be confident that it will be welcomed by passengers.”

But not all passengers are the same and SITA has analyzed the behavior of four different types – Careful Planner, Pampered, Hyper-Connected and Open-Minded Adventurer. Each profile uses technology in different ways and SITA’s research shows that a ‘one-size fits all’ approach risks alienating some passengers. To help illustrate the differences SITA has made it possible for people to find out their own passenger profile. Anyone can complete this short online form to find out what kind of traveler they are and compare their personal behavior to others from around the world.

Regardless of their type, once passengers are converted from person-to-person interaction to using self-service technology few want to go back. Even if they are not satisfied with one type of self-service technology they tend to try another rather than revert to human contact. When it comes to check-in 91% using self-service technology will do so again and again.

Violante, added: “It is clear that passengers love technology. Once they start to use kiosks, websites, mobile devices, automated gates and other tech they will continue to do so rather than returning to human interaction. As airlines and airports look to introduce new technology they should also note that ‘ease-of-use’ is vital for passengers. At check-in, the ease of use can increase kiosk adoption by as much as 86% and mobile by 59%.”

Other key findings from the survey include:

  • A majority of passengers (55%) use some self-service tech on their journey but the end-to-end self-service journey is not yet widespread.
  • If passengers have a negative experience, 54% will try a different self-service technology.
  • When using mobiles for travel 92% find check-in easy to use.
  • Passengers indicate they want more mobile services and baggage notifications are a top priority.
  • More than half of passengers (56%) using self-service baggage bag-drop plan to use it again.
  • ‘Hyper-connected’ and ‘Pampered’ passengers are the happiest.
  • 92% of passengers are happy during dwell time at the airport but providing poor quality services like food, entertainment and shopping is worse than not providing any.

This is the 11th edition of the SITA/ATW Passenger IT Trends Survey. It was conducted with more than 9,000 passengers from 19 countries across the Americas, Asia, Europe, the Middle East and Africa representing almost three-quarters of global passenger traffic.

* Visit travelerprofile.sita.aero to find out what kind of traveler you are.

* More details of the results, including information on the emotional scale tool and the technology adoption model, are available here.