BarcelonaPLUs 2017
Welcome
BarcelonaPLUs 2017
PLUsForum
The Framework
• Three components
– Listen
– Use Exercises to Explore
– Discussion with Group topics
• OutPut f(x) InPut
BarcelonaPLUs 2017
Agenda
Friday
KeyNote
The Post Modern World
What can we expect from a fundamental shift in social and economic reality?
Professor Gordon Redding, Senior Affiliate Professor INSEAD
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State of Travel industry distribution Round 3 ~ Don Birch
WeChat ~ Roy Graff
BlockChain in Travel ~ Mak Izmaylov
IATA NDC coming of age ~ Stephane Pingaud
Skift trending topics ~ Davide Montali
The BIG Debate ~ David & Alex
Lunch
Show & Tell ~ Value Proposition & Business Model Canvas
Topic Work Groups
Saturday
Topics wrap up and reporting
BarcelonaPLUs 2017
Travel Industry is a changing
“Be careful what you wish for”
Don Birch
BarcelonaPLUs 2017
“We are all Disruptors now”
Today’s Agenda
1) The Future is here now ~ Why we need to celebrate
or perhaps worry!
2) Impact on Travel & Tourism
3) Impact on Society
4) Behaviour change ~ innovation & adaption
If you have an existing business Why you
need to worry!
ONE ~ Dollar Shave Club
5 year old startup took on Gillette and secured 8% North America market share
Unilever paid $1b for Dollar Shave in Y2016
Dollar Shave Club
Low fixed, high variable costs
No Factory
Out sourced to DorCo, Korea
No distribution system
Out sourced to Kentucky
No sales force
Social media
No R&D
DorCo
Marketing budget
Social media, Youtube
No IT infrastructure
Amazon web services
Made possible by the Internet, mass transportation, globalisation &
viral marketing
Gillette focused upon product and not customer ~ men don’t like to
shop!
Think customer
Samsung does!
Load late items
Why they need to worry!
TWO ~ Warp Speed
Eye for Travel Mobile in Travel Chicago 16th/17th September 2009
“Ever since the hyped promise of WAP in the early 90s ~ the
MobileWeb has consistently failed to take off as a commercial
proposition. A constant stream of innovation and investment failed
to find the magic formula which would make the web enabled cell
phone an effective device for web based applications.
That is until the confluence of smart phone technology, affordable
user plans and the arrival of the whole social media phenomenon.
Today we are seeing increasing reinvigorated interest in the
MobileWeb with travel being a key target vertical”
THREE ~ Why they need to worry!
The Internet of Lifestyle
Robotics/ VR/AR
Materials
AI
Wearables
InfoTech
4th Technology
Revolution
3D printing
IOT
Energy storage
BioTech
IOLs ~ Internet of Life Style
“We stand on the brink of a technological revolution that will
fundamentally alter the way we live, work, and relate to one
another. In its scale, scope, and complexity, the transformation will
be unlike anything humankind has experienced before. We do not
yet know just how it will unfold, but one thing is clear: the
response to it must be integrated and comprehensive, involving all
stakeholders of the global polity, from the public and private
sectors to academia and civil society.”
Klaus Schwab, Founder World Economic Forum, Davos
The Fourth Industrial revolution
We are entering the 3rd S-curve of Travel Distribution
. . . and this will cause considerable disruption
BCG “Travel Innovated”
Where will the Innovation Action be ?
• Three areas are especially ripe for innovation and
disruption: travel inspiration, booking
transparency, and unmanaged business travel.
Keeping Up with the Start-Ups
• To respond, travel suppliers need to play offense
as well as defense, develop new capabilities, and
learn to work with others, including
intermediaries, competitors, and new entrants.
Most of all, they need to put consumers first.
….and Gen Y Millennials (will) rule
and Gen Z are coming
Which means Mobile
Payment an issue
Rethinking our models
• Hotels are discovering that they are social
systems and not just places to stay
• Marriott in Miami is a major running centre
• CitizenM hotels ~ SocietyM
Innovation & Change
Characteristics
Speed
Scope
Scale
But now the Fourth Industrial revolution ~
‘Convergence’
Ever faster adoption of new technology ~ USA 90%
Electricity 70 years
Smart phones 7 years
We are already in a World where
The largest hotelier in the World owns no hotels
The largest taxi company owns no cars
And
The largest Travel Agent has no shops
Disruption in Travel distribution ~ where next?
“The Future has already arrived, it is just
unevenly distributed”
William Gibson ~ Futurist
MaltaPLUs 2016
The Challenge ~ A systemic shift
From making ‘things’ To delivering value based services
From continuous improvement To deeper customer
engagement
From Fast follower To Innovative culture & life long learning
IOLs ~ The Internet of Lifestyle
Robotics/ VR/AR
Materials
AI &
Voice
Wearables
InfoTech
GPUs
4th Technology
Revolution
3D printing
Energy storage
IOT
BioTech
IOLs ~ Internet of Life Style
Pericles BC 429
It is not a matter of predicting the future, but
being prepared for it.
Robots
• Expanding across all industries
• Unlimited production capacity
• Don’t need vacations, medical
coverage, maternity benefits
• Eliminates low skill labour
Skills automated
• Frey & Osbourne of 702 professions
examined, 47% at risk
• BoEngland 35% of all jobs at risk
• Japan 49% (higher manufacturing ration)
4th Industrial revolution
Convergence
Will transform cities
Will transform industries
Will transform life styles
Materials
3D
Stored energy
Robotics
ICT
IOT
AI
Voice
BioTech?
4th Industrial Revolution
Profound social impact
• Supply side tidal wave
• Accentuates Have and Have nots
• Social (dis)satisfaction
The largest beneficiaries of innovation tend to be the
providers of intellectual and physical capital—the innovators,
shareholders, and investors
Schwab
Will the 4th Revolution be a Social revolution?
Travel is Centre Stage
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Money
Entrepreneurs
Technology
Savvy users
Growth [4% p.a. vs.
1.5% Global GDP]
Who will be the new Travel
Superpowers?
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Priceline
Expedia (falling behind!)
Google ~ Trips, Google flights, ??
AirBnB
Uber
AliTrip
Ctrip
• Missing in action Apple, Amazon
Takeaways
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Change is upon us ~ Speed/Social issues
Technology is an ‘enabler’ no-longer a limiter
Domain, Intelligence, Ingenuity
Disruption knows no barriers
Being Innovative is hard
Balance at every level
– Social, Business, Community, Environment
The BIG Debate
This house believes that VCs add value for Travel
start-ups
For: David Soskin
Against: Alex Bainbridge
Show n’ Tell
Winding Tree ~ Mak Izmaylov
Esplorio ~ Essa Saulat
Vacations United ~ Vanessa de Souza Lage
BarcelonaPLUs 2017