Highlights from Day 1 (afternoon) of Phocuswright Europe, June 11, 2024

June 17th, 2024 – Tamur Goudarzi Pour, Head of Customer Excellence Taskforce at Lufthansa Group, has ambitious plans for the future of air travel, including a move away from the traditional Passenger Name Record (PNR) system. In an interview with Linda Fox, Senior Reporter for PhocusWire, Pour discussed his vision for a “PNR-free world” and the importance of customer experience in the airline industry’s post-pandemic recovery.

 

“We want to have a PNR-free world quicker than 5-7 years from now,” Pour declared. Offer-order, a concept gaining traction in the industry, would replace the PNR system. Offer-order focuses on presenting travelers with various travel options based on their needs, rather than a single, pre-defined itinerary. Pour acknowledged the complexity of such a shift, “it could take longer, depending on how many players get involved, and the exact point in time when a PNR-free world exists will be debatable: at what point do you have enough industry penetration to say, it’s here?”

 

Despite the challenges, Pour remains optimistic about Lufthansa’s future. “We are on track for double-digit growth this year, but at 92% of 2019 levels,” he explained. “This year is the year of catch-up, and we are optimistic. We have severely suffered from strike action, but we have experienced demand over summer, so it will pick up again.” However, Pour acknowledges the lingering effects of the pandemic and recent disruptions. “Two summers post-Covid, there’s been lots of issues,” he said. “We still have to do a lot of brick and mortar fixing in this third summer.”

 

Rebuilding customer trust is paramount for Pour. “The key things for airlines to be reliable,” he outlined. This includes “stable flight plans, not canceling at the last minute,” improved punctuality, and “a very good baggage service.” He emphasized the impact of poor service on travelers, stating, “it is an agony for any customer that suffers from it, and has a profound impact on NPS scores [Net Promoter Score, a customer loyalty metric].” Pour sees digitization as a key driver of improved customer service. “The mix between digital and human – there has to always be a human safety net – someone the customer can always talk to,” he explained. “We learned that through Covid times.”

 

Lufthansa Group is putting its money where its mouth is with significant investments.  “We are investing 2.5 billion euros in products and services by 2025,” Pour revealed. “Roughly 500 million of that is on non-aircraft, including the digitization side.” Additionally, the group is investing 3 billion euros in financing new aircraft.

 

The latest installment of The Bridge Series, a joint initiative by WiT and Phocuswright, focused on how travel technology is evolving to meet the shifting needs of travelers in a post-pandemic world. The panel discussion, titled “Travel Tech Trends Around the World,” brought together industry leaders to explore how human and machine intelligence are combining to personalize the travel experience.

 

Siew Hoon Yeoh, Founder of WIT and Editorial Director of Northstar Travel Group Asia, kicked off the conversation by highlighting the transformation in the human-machine interface (HMI) as the most significant current change.  Each panelist then shared a specific tech trend that excites them within the context of this evolution.

 

Karen Bolda, Senior Vice President of Product & Technology at Expedia Group, emphasized the role of technology in driving sustainable travel practices.

 

“As a parent,” she said, “I’m particularly excited about how technology can transform sustainable travel – for example, through the development of alternative jet fuels. Protecting the planet for our children’s future is paramount.” Bolda went on to highlight the importance of using technology to facilitate authentic travel experiences.

 

Wolfgang Krips, SVP Corporate Strategy at Amadeus IT Group S A, took a more futuristic approach, exploring the potential of combining Generative AI (GenAI) with the metaverse.

 

“The future of travel could involve creating memories without physically traveling,” he proposed. “This concept holds promise for sustainability. I recently spoke to someone in Madrid who completed all his tours virtually during the pandemic, proving it’s possible.”

 

Iñaki Úriz, CEO of Caravelo, focused on a more near-term trend with potentially vast implications. “Autonomous vehicles have the potential to completely redefine our relationship with cars,” he remarked. “Think about it – currently, our cars are idle most of the time. Autonomous vehicles present a unique opportunity to improve city life and eliminate waste through efficient transportation.”

 

A panel discussion at Phocuswright Europe painted a vivid picture of the humans driving the travel industry’s future.  Moderated by Siew Hoon Yeoh, Founder of WIT and Editorial Director of Northstar Travel Group Asia, the panel brought together regional leaders to explore the unique opportunities these markets present.

 

The sheer size and demographics of these regions are undeniable.  Stephan Ekbergh, CEO of Travelstart, highlighted Africa’s youthful population and entrepreneurial spirit. “Africa is an innovation story,” he declared.  “With a 22% entrepreneurship rate and a population with an average age of 18, Africa is all about the future.” Ekbergh pointed to Zimbabwe’s growing cryptocurrency adoption as an example of Africa’s leapfrogging approach to technology.  “Travel in Africa is also unique due to limited infrastructure,” he added, “bad roads mean everyone flies.” Ekbergh concluded by emphasizing Africa’s enormous potential, stating, “In the next 10 years, Africa’s working population will be bigger than China or India.”

 

Chee Chong Chan, CEO of GlobalTix Pte Ltd, shifted the focus to Asia’s diverse markets.  “Asia is a collection of growing economies,” he explained.  “We have a significant population with disposable income – people with income about $250,000 and low housing costs, creating a travel-hungry middle class.  Additionally, Asia is home to 157 million Gen Alpha individuals, a generation that prioritizes experiences over material possessions.”

 

The Middle East also boasts a lucrative travel market, as explained by Ross Veitch, CEO & Co-Founder of Wego Group.  “The Gulf region, with a population of 60 million, boasts a GDP spending per capita comparable to the richest countries in Europe,” he revealed.  “While it may seem like an emerging market, the travel frequency and spending power tell a different story. It’s a region where people travel extensively.” Veitch added, “When we include the Levant region, the population size rivals Southeast Asia. Unlike many European destinations, the Middle East is experiencing a tourism boom, with significant investments in the sector.  The message is clear: the Middle East is open for business.”

 

Blanca Menchaca, CEO of BeMyGuest Pte. Ltd., provided insights into specific Asian powerhouses. “China is a travel powerhouse,” she declared, “already exceeding US travelers in total travel spending, reaching a staggering $200 billion dollars.” Menchaca highlighted Europe and the US as popular destinations for Chinese travelers. She also pointed to Korea as a significant market with a $22 billion dollar travel spend, with Spain being a top destination for Korean travelers.  Finally, Menchaca noted the enduring allure of Japan for European travelers, making it a strong contender for future inbound tourist growth.