The Weekly Eye: FAA to relax rules, Rate parity: is it illegal? Facebook tips

June 19- June 25 Devices ready for take off, Rate parity in frame, Facebook shares tips, New moves from Mercure and more…our pick of the week’s stories

Mobile devices to take to the skies

A draft report from the Federal Aviation Administration indicates that passengers could soon be allowed to use electronics during take off and landing. European regulators are expected to follow if approved. Some products, like e-readers, could be used throughout the flight but the rules around mobile phones are, as yet, unclear. However, there is clear recognition that the ban on other products has “become untenable” and as many as a third of passengers ignore it anyway. Unsurprising, given that studies show that most devices are almost no risk to aircrafts, which are far more tolerant to interference. From July 1, British Airways passengers will be allowed to check emails, make phone calls and texts, or switch on other gadgets, immediately after the aircraft has left the runway.

Shades of grey

“There is absolutely nothing transparent in everybody selling everything at the same price,” says Dorian Harris, chief executive of discount site Skoosh on EyeforTravel.com this week.He was quoted in an article about how rate parity agreements are being increasingly called into question by hotels (independents in particular) and other smaller start-ups. Against a backdrop of recent allegations of price fixing in the hotel business rate parity is increasingly in the spotlight and people like Harris argue that it could be illegal. For some hotel chains, regardless of the problems, rate parity seems to make sense. Chetan Patel, Vice-President Strategic Marketing & E-Commerce at Onyx Hospitality Group argues that the alternative could be a lot worse and shares an in depth view (Is rate parity a necessary evil in the battle for market share, June 21), also on EyeforTravel.com this week.

10 tips from Facebook

Facebook is a potentially powerful marketing tool for travel brands and this week on EyeforTravel we share ten tips from Lee McCabe, Lee McCabe Facebook’s head of travel in the global vertical marketing team will be speaking at the Travel Distribution Summit, North America from the 23-24 September. Facebook is making it possible for companies to deliver timely travel marketing in a range of ways such as partnering with companies like big data travel marketing firm, Adara. It joined the Facebook Exchange, a real-time bidding solution for advertising, this week. One thing Facebook has to be careful of is ensuring that advertising content is relevant. And McCabe believes that if brands focus on creating targeted, relevant and engaging advertising, it will never be intrusive but become “a welcome fabric of the experience”.

Wego secures more funding

Singapore-based Wego.com, the travel search engine in the Asia-Pacific and Middle East, has secured $17m in growth capital, bringing the total raised to $36m. Wego now has a presence in 52 markets and 30 languages, with a particularly large user base in the fast developing markets of Indonesia, India, Southeast Asia and the Middle East. Wego generates more than $10m per day of potential bookings for travel partners and has experienced rapid growth in recent years. The investment will be used in product and innovation, in talent and to scale marketing efforts. Proof that Asia is the place to be? 

Mercure’s new momentum

This week Accor announced new ambitions for the Mercure brand, a midscale hotel group with over 700 hotels worldwide. As part of this the group plans to modernise the offering while at the same time opening 1,000 hotels, mostly through franchises, within five years. Part of the modernisation plan includes a new visual brand identity. Accor’s chief executive, Yann Caillère, sees Mercure as essential for the group’s expansion particularly driven through franchises and managed hotels. The Mercure brand is enjoying sustained expansion with an average of one opening per week and over 15,000 new rooms between 2011 and 2012. Mercure alone accounted for 21% of rooms opened by Accor in 2012. According to Christophe Alaux, chief Operating officer Mercure & MGallery Europe, independent hoteliers make up 70% of the midscale hotel segment and “they are looking for sector expertise, particularly to handle the hotel digital revolution,” he says.

CheapOair says ‘hola’ to Spanish

Improving the customer experience is one way travel firms can differentiate, and CheapOair has done just with the of an option to search and book flights in Spanish. The development is the latest in a suite of enhancements to be rolled out over the coming months. But any improvements must also be justified by a business need. And with the US Census Bureau indicating that the total US population of Hispanic descent will reach 19.4% by 2020, CheapOair has recognised the need to better serve a global audience by making travel purchasing hassle-free for Spanish speaking customers. The Spanish language option will be available on the CheapOair touch sites for iPad and tablet devices. CheapOair claims to be only OTAs to allow customers to translate the page mid-search.

TripAdvisor gets airport intelligence

The world’ biggest travel review site is on the acquisition trail again. This week TripAdvisor site acquired US-based GateGuru, a mobile resource for flight and airport information around the world for an undisclosed amount. TripAdvisor’s co-founder and chief executive Steve Kaufer is quoted saying that product complements existing flights products. The company acquired SeatGuru in 2007. GateGuru’s apps provide information about airport layouts and amenities while SeatGuru  provides intelligence about airline seats. This year TripAdvisor has acquired vacation rental site Niumba in Spain, photo app TinyPost, flash sales site Jetsetter, and cruise site CruiseWise.

Travelocity exits business travel

Business travel management company, BCD Travel, has acquired Texas-based TBiz from Travelocity. The move signals that after 10 years Travelocity is no longer planning to compete in the business travel arena against the likes of Expedia and Orbitz. BCD Travel’s acquisition does not include products, services or customers of the consumer travel brand Travelocity. The travel management firm will continue to operate under the TBiz brand and serve its existing clients.

Marriott goes for ‘brilliant’ branding 

‘Travel Brilliantly’ is Marriott’s new $60m branding campaign, launched to shake its image as an old-fashioned brand and attract a younger clientele. The campaign has its own dedicated interactive website, which is being touted as a platform for portraying Marriott’s past and future innovations. It will also solicit similar, ‘future-forward’ ideas from influencers, experts and traveling consumer enthusiasts, says a press release. Changes are being made to the hotels to support the hype including the redesign lobbies and public spaces known as Greatrooms. These are being rapidly deployed for the next generation of travellers who like to “blend work and play, demand style and substance, and require technology”. Marriott is also introducing new concepts designed for the new mobile worker.

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