IT appears you can’t switch on a TV, open a newspaper, go online or listen to your favourite radio station without hearing the word ‘ credit crunch’ or ‘economic downturn’. I don’t think anyone will dispute the huge impact of this current financial climate, nor can we ignore the effects it is having on operations within the travel and tourism industry.
In times like these, dynamism reigns. The travel and tourism sector is no different and innovation is taking centre-stage. In a buoyant market, when everything is going well, innovation often takes a back-seat; less is more. As the old saying goes, ‘if it ain’t broke, don’t fix it’… Yet, when the going gets tough, companies stop to examine themselves and assess their inner workings all the more closely. In order to reach forecast, hit budget, more becomes less.
Innovative ideas can get lost amid crowded market growth. It gets ignored in the flurry of booming sales, records highs and a seemingly inexhaustible flow of customers queuing up around the block. However, when companies are struggling and budgets are shrinking, businesses must find an edge. Whether it is embracing the next online phenomenon to get closer to customers, or employing revolutionary technologies to cut costs, innovation is key.
One area that seems to court innovation, with mixed results, is the airline industry. With the last few years’ yo-yoing oil prices destabilising commercial carriers’ capacities for safe forward planning, airline operators have been locking the brightest minds in padded rooms to find new ways to reduce costs and increase profits. We’ve seen everything from ‘reverse alchemy’ as airlines try to limit weight by turning silver cutlery into plastic, to the introduction of in-flight mobile services to cater for BlackBerry-addicted business travellers…
However the latest innovation from Ryanair’s CEO, Michael O’Leary, takes the proverbial cake. According to O’Leary, his European low-cost carrier may soon be installing pay toilets! Whilst I am a fan of thinking outside of the box, this latest initiative begs the question ‘when is enough, enough?’
Let us not forget that we are a service industry. The customer is always our first priority. Innovation is only progress when it betters what we do. We are constantly treading a tight-rope; we’re attempting to balance profitability with customer loyalty and it’s a long drop down when it goes wrong.
Throughout history, our industry has come up with countless great innovations and they all have one thing in common…they put the customer first. Customer loyalty is the best way to retain that most desired of profit-making commodities, repeat customers. Not only do repeat customers tend to spend more money but they often tend to provide the best word-of-mouth product endorsements. Innovations such as corporate loyalty and enticement programmes have served us well and subsequently transcended to other industries.
At Arabian Travel Market, innovation has always been key. We have consistantly sought new ways to increase not only the business potential of the show, but also to promote debate and the industry’s advancement. As they say, if you’re not going forward, you’re going backwards…
Mark Walsh is group exhibitions director for Reed Travel Exhibition. ATM runs from May 5 to 8
ATM Diaries by Mark Walsh