Traveling solo

Traveling solo

By Donna Tunney

Snapshot: Solo trends

Travel insurance provider Travel Guard took a “pulse poll” earlier this year to identify solo travel trends. Some 450 U.S. travel agents responded to its email survey. Key findings:

• Flying solo: Nearly 60% of agents said more of their clients are flying alone now compared with 10 years ago, and 43% said they are doing so because they are widowed or divorced.

• Gender gap: The majority, 73%, of responding agents said that more female travelers than males embark on solo trips.

• Golden years: According to 44% of respondents, most clients taking solo trips are 55 or older, followed by those 45 to 55 (29%); 35 to 45 (18%); 25 to 34 (9%); and 18 to 24 (0.4%).

• Across the pond: Forty-five percent of agents identified Europe as the most popular destination for clients booking solo travel, followed by Mexico/Caribbean (33%) and the U.S./Canada (15%).

• Favorite products: Respondents said the most common types of accommodations for solo travelers are resorts or full-service hotels (46%) and cruises (40%).

• Budget wise: Most agents (82%) reported that their solo clients spend less than $4,999 on a trip.

• Play it safe: Forty-seven percent of respondents said a solo traveler’s greatest concern is encountering a dangerous situation without a travel companion to help. Additional concerns include medical emergencies (23%) and flight delays or cancellations (24%). — D.T.

The dreaded single supplement has long been an albatross around a solo traveler’s neck, but an increasing number of land and cruise suppliers are coming around to the notion that a customer vacationing alone deserves a fair shake.

To be sure, these suppliers are the exception rather than the rule, as the majority of providers continue to charge a 100% supplement fee, and sometimes more, so that an individual traveler is paying at least the equivalent of two cruise fares or two tour rates.

Solo clients can be a tough sales pitch for retailers. Aside from the single supplement cost, there often are concerns about safety and about feeling like a fifth wheel.

“The single supplement is a big obstacle. Nobody wants to get soaked,” said Marie O’Brien, an agent with Acendas in Mission, Kan. “But it isn’t only the cost. A lot of would-be solo travelers are older women who have the money, but they’re afraid something could go wrong, like missing a flight and becoming stranded somewhere, or becoming ill on a trip, and they’d be all alone.”

Even with the obvious drawbacks, the volume of solo travelers is considerable. They account for 11% of all U.S. adult leisure travelers, and they take 4.3 trips each year, according to data from the U.S. Travel Association.

In recent years, several prestigious travel suppliers who cater to upmarket clients have embraced the potential revenue from solo travelers by revamping their policies to include low or waived single supplements on a wide range of vacation products.

Strategies unfold

Luxury tour operator Abercrombie & Kent is one of them. It decided to realign its policies three years ago with an eye toward actively courting the solo-traveler market. A collaboration among the company’s executives and ground suppliers resulted in its Solo Savings program, where single supplements are either waived or reduced by as much as 75% on dozens of departures.

Since the program launched in 2011, the company’s solo customer bookings have spiked by 27%.

“We did a careful analysis of what solos are looking for,” said Bob Simpson, A&K’s vice president of operations and small ships. “The goal was not necessarily to create a separate product line but rather to present a value for people traveling alone, because they tend to be penalized with single supplements. So we targeted specific programs where we could eliminate the supplement.”

A&K attracts an upscale, professional crowd, which makes them an attractive market.

“Our solo travelers tend to be an older demographic, many of them retired with expendable income, and 70% are female,” Simpson said.

The company, aware that safety and security are important issues for solo travelers, particularly mature women, takes steps to reassure prospective clients.

On its website’s Solo Traveler page, for example, A&K uses marketing phrases such as “Travel on your own — but never alone,” and “Your tour director is both a guide and a companion.”

Grand Circle Travel is another example of an operator that offers a wide range of departures with no single supplement. Its sister company Overseas Adventure Travel waives single supplements on all land and small-ship vacations and on trip extensions.

Traveling SoloBoth firms feature the Solo Traveler Challenge, which promises that if a customer finds a lower solo price on any comparable international trip they will match that price and then deduct $500.

While these supplier examples cater mostly to an older clientele, the solo travel market includes younger people, too.

Contiki, the tour operator for customers 18 to 35, has a growing share of independent travelers. President Melissa da Silva said that 46% of Contiki’s guests last year traveled solo, and of those, 63% were females.

“We have found ourselves to be a great option for that solo young woman traveling abroad, because we provide a sense of security,” da Silva said.

The numbers are higher for certain destinations, such as Asia and Latin America, where Contiki’s solo guests account for 55% and 58%, respectively, of all customers.

Contiki’s single supplement is relatively low compared with most operators. It varies by tour but averages about 25% of the double-occupancy land cost, da Silva said.

Contiki offers to pair up same-sex roommates on all itineraries, and for those who agree to share a room, the single supplement isn’t an issue. Several operators provide this option, which likely appeals more to younger clients than to older ones.

Old and new ideas

Norwegian Cruise Line is the pioneer in bringing single-passenger studio cabins to mainstream lines. Accommodations for 128 solo guests debuted on the 4,000-passenger Norwegian Epic in 2010, and the studio accommodations will also be featured on the Norwegian Breakaway, set to debut this month, and the Norwegian Getaway, entering service next year.

In 2011, Royal Caribbean International said it would install three cabins for solo travelers on the 2,112-passenger Radiance of the Seas. Royal is expanding its single-passenger options aboard the 4,180-passenger Quantum of the Seas, which will enter service next year with 28 studio cabins that will be sold without a single supplement.

“There’s been a fair amount of interest in that recently,” Adam Goldstein, line president, said during a recent press conference.

But while Norwegian and Royal have taken these steps to attract solo guests, the single-supplement policy persists in double-occupancy staterooms.

Norwegian Epic’s studio rates vary by departure, but they are less than what a 100% single supplement would add to a double cabin. A seven-day Aug. 24 cruise from Barcelona, for example, would cost $1,099 in a studio, while an inside cabin costs $899, per person, double occupancy, according to website pricing. The single supplement on that inside cabin would bring the cruise fare for a solo occupant to $1,798, or roughly $700 more than the studio stateroom.

“The cruise industry operates under a very different business model than say, your regular hotel and resort, which may usually have unoccupied rooms and do not offer inclusives beyond bath amenities and in-room coffee,” said Harry Liu, manager of global brand communications for Royal Caribbean International and Azamara Club Cruises.

Crystal Cruises has male dance hosts for ladies traveling solo.“Because food, entertainment and other amenities are standard inclusives across the cruise industry, our industry’s pricing structure is based on at least two paying guests per stateroom,” Liu said. In the case of Royal, he added, it would mean that one guest in one double cabin would pay the price of two guests, a 100% supplement.

Tavia Robb, public relations manager for Celebrity Cruises, said, “Celebrity doesn’t really offer any substantial single supplement program. If a cruise fare is $1,200 per person [double], for example, and someone sails alone, she or he would pay $2,400.”

Come one, come all

In the wider cruise market, it’s the river ship companies and the luxury brands that are most solo-traveler-friendly. Several river cruise companies, including Uniworld, AmaWaterways and Avalon Waterways, waive supplements on many cruises, and luxury lines such as Silversea Cruises and Crystal Cruises reach out to solo guests with low fees. (Read related story, “On AmaCerto, one not such a lonely number.”)

Silversea typically offers select sailings with a 10% single supplement, and Crystal this year added a dozen itineraries with a 10% supplement, offering 26 cruises with reduced single fares.

Jack Anderson, Crystal’s senior vice president of marketing and sales, explained that “because we’re a luxury brand, we do not plan to operate at 100% berth occupancy. We budget to operate at a 96% or 97% stateroom occupancy, and that gives us the flexibility to accommodate 50 to 60 singles per sailing. So it’s part of our business plan that we want singles, and we will price attractively for singles.”

Crystal accommodates singles in other ways.

“A lot of our onboard activities are designed to be considerate of solos, Anderson said. “We have the ‘Table of Eight,’ for example, in our alternative restaurants Silk Road and Prego, where solo travelers can dine with other solos. And we have dance hosts on every cruise.

Besides, Anderson said, the solo market is only going to grow.

“We believe the number of people healthy, wealthy and able to travel is increasing, and it’s a demographic opportunity,” he said. “My prediction is that [the solo market] will be strong and viable, and it will increase.”

He said that would be particularly true as the 79-million-strong baby boomer generation retires during the next 20 years. Presumably, some percentage of them will travel alone as widows or widowers, or as divorcees.

“We want to be out in front with the solo market and capitalize on it,” he said. “But we have to be careful not to stereotype solo travelers. Many are married and choose not to travel as a couple: He wanted to go to a golf resort, and she wanted to go to Asia.”

Anderson said the line decided about a year ago, when it still had a 25% single supplement, that it would offer a lower supplement of 10% on a capacity-controlled basis.

“We designated those sailings based on the diversity of itinerary, the time of year, etc., so that our guests would have a wide menu to choose from,” he said. “If we reach certain numbers that conflict with reaching budget goals, then the 10% would have to go away, and we’d go back to 25%.”

New mobile app and tech-laden concept store for Thomson

New mobile app and tech-laden concept store for Thomson

By Travolution
By Travolution

Leading European tour operator Thomson has launched a new mobile app ahead of the summer holiday period as it prepares to unveil its next generation hi-tech store of the future.The MyThomson app will allow customers to access information about their trip while on the go including destination guides, weather updates and flight times.

It will also be integrated into social networking sites like Facebook and Twitter.

Johan Lundgren, deputy chief executive of Tui Travel, said: “Tui Travel is an online driven business and we will continue to enhance our mobile offering.

“The launch of the MyThomson app is an exciting new way of connecting our customers with Thomson anytime, anywhere, anyway.

“Innovation is at the heart of our strategy to deliver future growth, and the launch of the MyThomson app reflects our position as market leader.

“The annual summer holiday is a significant purchase for our customers and we know that they not only spend time choosing and planning their holiday but also looking forward to it.

“The app is a fantastic way to get customers more excited about their holiday and will help them keep up to date with all the information they need in one place, just a tap away.”

Meanwhile, Tui will announce next month which location has been chose for its new concept store that it promises will harness the latest technology to drive customers in.

The firm hopes to have refitted 10 of its 700 UK stores by Christmas and as many as 100 in coming years.

Tui said  a key strategy is “selling directly to our customers through multiple channels, and so our retail network remains important to us”. It added “the emphasis of these new shops will be on service in a modern environment”.

Kathryn Ward, director of retail and financial services, said: “Our next generation store recognises the importance of people when it comes to choosing and booking a holiday, whilst integrating technology into the whole experience to really bring it to life.

“Customers will be able to immerse themselves in stunning, rich and evocative content as they research and browse our unique holidays in-store.”

Key features of the next generation Thomson shops include:

– The shop front will have a giant immersive video wall (2m x 3m) to showcase new video content and imagery of the holidays combined with evocative sounds and  aromas

– At the entrance an interactive map and interactive table will entertain customers and help them research holidays and find out more about the broad range of product available

– The Advice Bar will give customers the chance to browse the Thomson and First Choice websites on self-service laptops with staff on hand to answer any questions

– Free customer WiFi will also enable customers to use their own devices to research in store and check out review content

– High definition screens and booth projections around the store will feature changing images and videos to inspire customers and give them a feel of what to expect from their holidays before they book

– The store will be zoned to meet the needs of all customers and staff will join them to help with their holiday decisions.  Customers can choose from sitting around a laptop in the pool area, self-serving at the Advice Bar or have a more personalised experience in the booths where images of their chosen holiday will be projected on the wall

– All customers will be served with barista style coffee to further enhance the booking experience

Transformation plan starting to have impact, says Cook

Transformation plan starting to have impact, says Cook

By Lee Hayhurst

Transformation plan starting to have impact, says CookThomas Cook said its business transformation plans were starting to have an impact as it announced higher margins in its first quarter to December.

The travel operator and retailer saw  revenues of £1,724 million in the three months to the end of December. And it achieved gross margin of 21.9%, up 1.3 percentage points over the comparable period last year, it said in a trading update.

The group said plans to achieve annual savings of £100 million over the next two years to 2015 were on track and a further £60 million of savings had been identifed.

Harriet Green, group chief executive, said she was particularly pleased with Cook’s UK performance.

“As we continue to strengthen Thomas Cook and determine our profitable growth strategy for the future, the power of our brand remains key to the transformation.

“We have seen stronger operating performances in our major markets – the UK, Germany and the Nordics. I am particularly pleased with the improved performance in the UK as the benefits of the turnaround plan are reflected in its operating results.

“Our business transformation is firmly on track. We have further strengthened our leadership team and the pace at which we are driving change gives me confidence that together we will achieve our near term objectives and much more.

“The business has generated higher gross margins than we did last year and this will remain an area of focus for us through the financial year.

“Our cost-out initiatives and improved cash management will be important contributing factors to the Group’s future performance and continue to receive strong focus in all parts of the business.

“Although global economic conditions and consumer confidence remain challenged, our business transformation is firmly on track.”

Cook said its Business Transformation programme was “firmly on track” to deliver on its three key elements:

• building an effective organisation: high quality executives, bringing a wealth of experience, appointed to the Thomas Cook leadership team;
• addressing costs and cash management: on track to execute announced £100m of cost reductions with a further £60m identified;
• profitable growth strategy: undertaken rigorous, and independently verified, market and customer research, to ensure strategy and future resource allocation is based on extensive and fact based information.

Cook said higher gross margins and lower overhead costs were reflected in the Group’s improved underlying operating which saw losses of £70 million compared to £93 million in 2012

It reported lower net debt of £1,559m, which had been reduced by £86m year on year and higher liquidity headroom of £290m, up £72m over the prior year due to improved cash management disciplines

In a statement it said: “Winter and Summer bookings are robust, in-line with expectations as our strategy of improved capacity management results in higher sale prices and improved margins.”

Cook also revealed the completion of the first phase of “one of the largest customer surveys undertaken in the sector” involving nearly 18,000 consumers from the UK, Sweden and Germany. The survey results have been combined with in-house data from Cook’s 23 million annual customers.

“The results, along with a profitability analysis of the industry by internal and external experts, will be used to shape our business model and future strategy, as well as accelerating our web transformation to create a web centre of excellence with channel ownership in each of our market segments,” the group said.