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| CulturalTravels.com - Home |
Volume 7, January 2005 |
ISSN 1538-893X |
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Travel in 2005: Our annual prognostications |
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Yes,
we know chances are slim that very many people will look back on this piece a
year from now and say, “Aha! You blew that prediction.” That offers
us safety of a sort, we suppose. Still, we feel pretty confident about our prognostications: Prediction No. 1: Watch for offbeat
destinations to become popular
Yes,
We’re
defining offbeat to mean countries that are underrated or under appreciated, and
are still tied to the dollar (which makes them vacation bargains compared to
Europe). Among them: China
–
Forget the folk wisdom that says Japan is still the world’s number two
economy: At $6.5 trillion (a little more than half the size of the U.S.
economy), China has left Japan in the dust and is emerging as the next great
player on the world stage. While
it’s doing that, it’s building infrastructure at a furious pace:
roads, airports, hotels and other traveler-friendly facilities. At the same
time, this vast country, just a smidgen smaller than Canada, has scores of
distinct ethnic cultures and enclaves, and a varied geography – all the ingredients for an intriguing vacation. China is an entire world in one country,
as quaint or sophisticated as any traveler could want. Best
of all, China has pegged its economy to the dollar. As long as that’s the
case, you can expect your money to carry a desirable amount of clout there. Russia
– The Russian economy is now three times the size it was under the communists,
which means there have been substantial improvements in amenities for travelers.
The country is still very poor relative to the U.S. or the European Union, but
has an immensely rich store of cultural treasures, such as the Hermitage and the
Kremlin, as well as such spectacular natural wonders as Lake Baikal and the
Alaska-like Kamchatka Peninsula. Peru, Chile and Argentina – If you’ve seen The Motorcycle Diaries, a recent indie film that dramatizes a 1952 road trip the young pre-Stalinist Che Guevara took with a friend into Patagonia, the Andes and the Amazon, you have an idea of how gorgeous and uncluttered South American landscapes are. These three countries not only boast spectacular scenery, ranging from desert and high mountains to gleaming lakes and temperate rainforests, their travel infrastructures have improved dramatically in the past decade. This
is especially true with Chile. This fourth member of NAFTA has grown its economy
by taking advantage of its mid-section's Mediterranean climate to make itself a
powerhouse producer of inexpensive wine and winter fruit for the Canadian and
U.S. markets. Much of the profits are showing up in a growing, increasingly
eco-friendly travel industry.
Prediction No. 2: The new Airbus
A380 will change travel, but not as much as predicted Airbus will introduce its
gargantuan 747-slayer, the 555-passenger A380 sometime next fall. The two-deck
plane, which will require many airports to reconfigure their gates, holds out
the prospect of cheaper air travel simply because it can haul so many people at
once. Add to its capacity efficiencies brought about by improvements in wing and engine design, and the A380
looks on paper to be the plane of the next generation. For
the U.S. market, that may be the case. But for the Europeans, we’re not so
sure. Airbus Industry's mock-ups of the A380 show a spacious interior that
can accommodate a lounge, and even a gym. The idea is that the A380’s size
will allow a level of comfort unseen since the sky bars on Boeing's 747s when
they first began flying in the early 1970s.
But
we remember how quickly those amenities disappeared when fuel prices and U.S.
deregulation of its airline industry made it necessary to fill every inch of
airplanes’ interior spaces with revenue-generating passenger seats. Of course,
the flagship European airlines, which are the only ones that can justify and
afford A380s, are often subsidized by their national governments. Those
subsidies give them a surface advantage in that they can offer lounges in lieu
of seats and not have to account for the loss of revenue. But mainland
Europe’s two greatest economies, France and Germany, are barely growing and
are straining under increasing demands from an ageing population that isn’t
producing enough young workers to pay for its generous retirement programs. Expenses
like airline subsidies will be among the first that anxious governments will
abandon in order to rescue more important social programs. In
the end, the A380 will be a somewhat larger, posher 747. But don’t expect it
to radically change travel in the sense of comfort or expense. There’s no such
thing as a 240-foot-long magic pill.
In a few months, you’ll be familiar
with the following names: Yahoo/FareChase,
SideStep, Kayak Software/America Online, Mobissimo, Qixo. They’re the monikers
of powerful new travel search engines that have online agencies like Priceline,
Orbitz and Travelocity biting their nails. Here’s
why: The new breed of search engines quickly chase down the lowest-priced travel
packages they can find on the Internet and deliver them to the travel consumer.
In doing so, they bypass the above-named online agencies that have spent
fortunes building brand awareness. At the same time, the new engines put
companies like Yahoo and AOL into the travel business – a lucrative sideline. The legacy agencies are hoping that although their
current customers will probably flirt with the new engines, ultimately they'll remain
loyal and come back. They think that although the new engines may turn
up rock-bottom prices, such low prices will produce shoddy or disappointing
results. Consumers, remembering the legacy agencies’ previous good
performances, will abandon the usurpers and come home. The
only problem with that fond hope is that there isn't much to support it.
The big online agencies have always been impersonal selling machines fronting
for certain airlines or package tour operators. And their thin operating margins
mean their “travel agents” are almost invariably inexperienced minimum-wage workers. The
chances of these agencies looking great in comparison to whatever the new-era
search engines can turn up don’t look so hot. As
for us, we realize that our users will go check out the new technology, too. But
our advantage, compared to the legacy agencies, is that we serve a niche that
the big boys can’t and won’t: the specialty cultural tour market. There
simply aren’t any bargain-basement deals to be found on most specialty tour
packages. If there are only a handful of operators, say, offering tours of
Tuscan kitchens, and their individual package components are unique or
different, they’re not going bash one another by knocking down their prices to
attract bargain hunters via a new-style search engine. So, there will continue to be a place for travel portals like ours, where people can come and find honest and hard-to-get information. We suspect that the new search engines will glom onto us, too, once it becomes evident how many riches are waiting here -- and regardless of whether they're "bargains" or not.
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