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2013 The Year of Transition – Part 1 of Year End Review

December 28, 2013

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2013 has seen some clear indications that we are reaching a level of maturity in many parts of the Travel Startup ecosystem.

For startups things are humming along nicely. The world of the sharing economy seems to have pushed new life into the moribund world of truly different and innovative. Many people are taking a run at  Tours and Activities again. And of course inspiration and planning seem to have been on a lot of people’s minds. And what is my take on this state.

In my view 3 things defined 2012:

  • The blockbuster acquisition of Kayak announced
  • The settlement of the Sabre vs AA lawsuit
  • The launch of NDC

For 2013 – there was not as much going on. We had no real blockbuster events. Yes there was still a fair old amount of money pouring into the world of startup and innovation. Not a lot of it smart. I was singularly unimpressed with the crop at PCW’s First Philip-less Innovation Summit. (I suspect I am not alone there).

Hopper finally launched and I am rather unimpressed. This could be so much better. I think much of the world has moved on. In my view – Social Sign-ins should be OPTIONAL not compulsory. This really annoys me?

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I don’t want to give Hopper or ANYONE ELSE my friend list. It is not my right to share other people’s data. Nor should it be anyone else’s. I am also getting tired of the minimalist interface that already frustrates me. I think I am REALLY tired of seeing a one box entry with a pretty background. 

Let’s get into the sharing economy – actually let’s not. AirBnB is an amazing phenomena it has unleashed a way for the consumer to search shop and buy a stay that is reasonable and affordable. It is also illegal in most cases and multiple instances in the same transaction. However that illegality is not stopping the consumer. I just hope someone asks me to right the Risk statement in their IPO document. Sometime in 2014 AirBnB will likely be the source of the most room nights booked by a single brand. I firmly believe that AirBnB must be held accountable for the actions of its efforts. So far few people are considering the impact of the macro economic change that AirBnB is bringing to both short term and long rental accommodation markets.

So my final note is on the consolidation of power across the board in the travel supply chain.

Cars and Airlines have now migrated into a scarce supply. I have watched as the supply of the traditional (aka legacy) airline product supply has slowly concentrated. And boy has it concentrated. In the USA we have gone from large number of players to just – 4 yes FOUR AIRLINES. And for car rental that has now come down to a much smaller number. Hertz, Avis, Enterprise. Pretty much that’s it.

There is now a new reality – the days of neutrality are dead. We are dealing with the Dealership model and we need to get used to it. The consumer has less choice than perhaps he has had to deal with in a very long time.

In conclusion – i believe that the “old” new economy is fading and we are facing a more stable and somewhat boring world. 2013 has been a maturing of what we saw as the brave new world. The year of transition from the hyper-euphoria to more mundane things belies the need to fix a large number of under the covers infrastructure changes. (More on that in my follow up article for 2014).

As a postscript for 2013 – perhaps as a tantalizing look at how we can imagine the future – check out these new UX possibilities here:

http://www.fastcodesign.com/3023146/the-17-most-amazing-user-interfaces-of-the-year#1

 

Thanks for reading and here’s to a great 2014.  Lunar year 2013 was the year of the Snake. As one – I welcomed the year with a bit of trepidation as it marked a major milestone in my life. Now I have had the chance to reflect – it wasn’t too bad. I wish all the best for your loved ones. May you find the true path and of course may peace come to all of us!Image

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