Globally, traveler searches on Expedia Group sites increased 25% quarter-over-quarter (QoQ), and Europe, the Middle East, and Africa (EMEA) searches grew by 30%, indicating that traveler intent remains strong into 2023.

A year-over-year (YoY) view shows that Q1 searches globally increased by 10%, and APAC saw a notable 65% YoY increase. During the week of January 9, there was nearly a 10% week-over-week (WoW) increase in global international search demand for China after pandemic restrictions lifted in the country on January 8, led by searches from APAC (15% WoW increase) and EMEA (10% WoW increase).

With global search volume up both QoQ and YoY, and travelers continuing to plan trips further out, it’s clear that appetite for travel remains strong, particularly since many are eager to make up for lost opportunities over the past few years.

The article Expedia Group’s Q2 Traveler Insights show searches increase globally first appeared in TravelDailyNews International.

This supports concurrent industry-wide research projects that initially focused on economic impact and meeting design.

Addressing WHO-5 (mental wellbeing), AAQ-2 (psychological flexibility), MAAS (mindfulness) and the IDGs (Inner Development Goals) in this academic study, has provided a detailed picture of the current state of personal and professional wellbeing within the sample group.

Martin Boyle, CEO of IAPCO, comments: “I am delighted to see that, in the global meetings population, the individual drivers (Inner Development Goals) to enact the UNSDGs exist, and that Wellbeing scores were, on average, consistently high across all working locations surveyed.”

The research team included academics, adult mental healthcare practitioners, experts in team dynamics and events industry professionals.

IAPCO has now launched Phase II of this project to capture further data and gain even more insights and knowledge on this important issue. The more research that is gathered, the more specific programmes and initiatives can be designed and delivered to meet the needs of this workforce into the future.

IAPCO Global Wellbeing and Connection Survey

The article IAPCO publishes the Global Meetings Industry Wellbeing and Connection Survey results first appeared in TravelDailyNews International.

The ground-breaking report, commissioned by airline easyJet, forecasts innovations in airport journeys, air travel, accommodation, and holiday experiences.

The easyJet 2070: The Future Travel Report was authored by a group of leading academics and futurists, including Professor Birgitte Andersen of Birkbeck, University of London and CEO of Big Innovation Centre; Dr Melissa Sterry, design scientist and complex systems theorist; and renowned futurists Shivvy Jervis and Dr Patrick Dixon, as well as Director of Transport Systems at Cranfield University, Professor Graham Braithwaite and Nikhil Sachdeva, Principal for aerospace and defence and sustainable aviation at consultancy Roland Berger.

easyJet 2070: The Future Travel Report highlights include:

• The airport journey and air travel experience will be revolutionised by technological advances:
• Heartbeat and biometric passports will replace the traditional passport, for passengers to breeze through their airport. Much like fingerprints and the retina, every person’s cardiac signature is unique. Passengers’ heartbeat signatures and biometric details will be logged on a global system in the same way finger-print scanning technology works today.
• Ergonomic and biomimetic sensory plane seats will become the norm, with smart materials adapting to passengers’ body shape, height, weight, and temperature, providing the ultimate tailored comfort flying experience
• Inflight entertainment will be beamed directly in front of passenger’s eyes, via optoelectronic devices, replacing the need for onboard screens or downloading movies before you fly
• e-VTOL air taxis will do away with the airport car park shuttle – the journey to the airport will be quicker and more convenient than ever before with 85% of passengers arriving by e-VTOLs from their homes to the terminal.

As technology advances, we will see significant advances in the accommodation experience abroad:

• 3D printed hotel buffet food will allow holidaymakers to 3D print whatever they want to eat for breakfast, lunch and dinner, while reducing food waste.
• Subterranean hotels built into the fabric of the earth that are super energy efficient and at one with the environment
• All hotel rooms will be smart rooms with beds already pre-made to exactly desired firmness, ambient temperatures and favourite music playing based upon preferences you select in advance of booking the holiday
• A holographic personal holiday concierge will accompany holidaymakers to provide up to date destination information and assistance throughout their stay
• 3D printed, recyclable holiday clothes on arrival at the hotel will remove the need for suitcases and fast holiday fashion as travellers can print the clothes required in their hotel rooms, tailored to their perfect fit and style, and recycle the materials for the next guest to enjoy.
• Human powered hotels which harvest energy from its guests’ footsteps in order to generate power

Innovations in experiences and activities in destination will be on offer to travellers:

• ‘Time-travelling’ holiday experiences – tomorrow’s travellers will be able to holiday in past by wearing haptic suits at historical sites that enable them to immerse themselves in live historical surroundings marveling wonders of the ancient world like the Colossus of Rhodes during a stroll in Rhodes Town, or cheering among the crowds of the original Olympic Games in Ancient Greece.
• Try before you buy – bionic and Meta holiday previews ahead of going on holiday that allow you to experience locations before booking your holiday
• Underwater “sea-faris” – aquatic adventures onboard submarines for tourists deep beneath the sea discovering marine life in under water marine parks
• Local language in-ear devices will be available to take on holiday to translate the local language in real time and enable us to speak the local lingo
• E-foiling, cable skiing and flyboarding will become the norm on offer for rent on the beach front, truly taking water sports to another level.

Four of the expert predictions have been brought to life in incredibly detailed renders, showcasing how travel could look in 2070.

The impressive visuals depict travellers using their unique heartbeats to get through security at the airport, as well as a new way of flying as aircraft are fitted with adaptable, biomimetic seats, with entertainment beamed directly into their eyes. Other images show holidaymakers viewing a true-to-life Colossus of Rhodes wearing haptic suits, and selecting delicious 3d printed food, personalised to their tastes.

The four images and animations have been presented in a new video, fronted by acclaimed science TV presenter Dallas Campbell, which sees him discussing what these predictions could mean for what air travel could look like for travellers of the future.

Brits were also asked to choose which of the experts’ predictions they would most like to see become a reality, with nine in ten (90%) of British adults saying they were excited or intrigued by what technological advances would make travelling look like in 50 years’ time.

Three quarters (75%) of Brits say that these technological advances would make them more likely to go on holiday in the future.

The survey of 2,000 British adults revealed that that biometric heartbeat passports and time-travelling holiday experiences, are the advancements in travel that the nation would most like to see happen by 2070.

Top 15 Travel predictions Brits would most like to see become a reality when it comes:

1. ‘Time-travelling’ holiday experiences via haptic suits that allow you to visit historical sites but see how life would have played out many years ago (i.e.: seeing Colossus of Rhodes in 280BC) 42%
2. Seamless airport security – using biometric heartbeat passports 38%
3. Under water ‘sea-faris’ taking tourists on aquatic adventures to the depths of the ocean 32%
4. Subterranean hotels built into the fabric of the earth that are super energy efficient and at one with the environment 26%
5. Smart hotels with personalised holiday rooms – that adapt and configure to travelers needs and wants on arrival 25%
6. In-ear devices will be available to take on holiday to translate the local language in real time and enable us to speak the local lingo 24%
7. ‘Try before you buy’ bionic and Metaverse holiday previews will provide holidaymakers with a virtual experience allowing them to see, hear, smell and feel a destination before booking 23%
8. Ergonomic and biomimetic sensory plane seats that adapt to passengers’ body shape, weight and temperature providing ultimate comfort 20%
9. 3D printed hotel buffet food serving up any all-inclusive breakfast, lunch and dinner that holidaymakers desire – and reducing food waste 19%
10. Inflight entertainment beamed directly in front of passengers’ eyes, doing away with the need to download shows before you fly or the need for onboard TV screens 18%
11. Week-long holiday package trips to the moon 17%
12. e-VTOL air taxis taking passengers from home to the airport terminal, as well as ferrying holidaymakers around city locations abroad 14%
13. Autonomous rent-a-car services on location – driverless hire vehicles that ferry travellers around their holiday destination 13%
14. Digital holographic personal concierge – accompanying holidaymakers to provide up-to-date destination information and advice 11%
15. 3D printed recyclable holiday clothes available on arrival at hotel, doing away with suitcases 10%

Speaking about the report, easyJet CEO Johan Lundgren said: “Innovation is in our DNA and we’re always challenging ourselves to think big and look at how we can make travel even easier for people all across Europe, both today and for generations to come. From biometric heartbeat passports to time-travelling holiday experiences, travel in 2070 is likely to be very different and exciting indeed.”

TV presenter Dallas Campbell, who has brought the predictions to life in a new video, said: “Some of the predictions in easyJet’s new report are absolutely astonishing – a personal favourite is the idea of being able to travel back in time through haptic suits, I’d love to be able to experience the sights, sounds and atmosphere of the very first Olympic Games. With everything from the airport, aircraft and destinations set to evolve, travelers are in for some amazing developments as the travel industry continues the evolve and thrive.”

Heading up the report, Professor Birgitte Andersen of Birkbeck College, said: “This next 50 years will bring the largest technological advances we have ever seen in travel and tourism. Aspects of how we holiday will be transformed beyond recognition; in the future holidaymakers will be queuing at the hotel buffet to have their breakfast omelettes and fry-ups 3D printed by machines, our heartbeat will become our passport, and in-ear devices will translate the local language in real time and enable us to speak the local lingo. Looking forward, by the year 2070 the destinations we fly to, the type of accommodation we stay in, and the experiences we have, will have changed immeasurably.”

From the airport to the beach – easyJet’s ‘The Future Travel Report’ predicts changes to how we will travel in 50 years’ time.

The article Easyjet 2070: The Future Travel Report first appeared in TravelDailyNews International.

According to the Hawai‘i Hotel Performance Report published by the Hawai‘i Tourism Authority (HTA), statewide RevPAR in February 2023 was $296 (+16.7%), with ADR at $387 (+9.6%) and occupancy of 76.3 percent (+4.6 percentage points) compared to February 2022. Compared with February 2019, RevPAR was 21.4 percent higher, driven by higher ADR (+32.8%) which offset lower occupancy (-7.2 percentage points).

The report’s findings utilized data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands. For February 2023, the survey included 155 properties representing 47,466 rooms, or 85.6 percent of all lodging properties with 20 rooms or more in the Hawaiian Islands, including those offering full service, limited service, and condominium hotels. Vacation rental and timeshare properties were not included in this survey.

Hawai‘i hotel room revenues statewide totaled $459.0 million (+16.6% vs. 2022, +24.5% vs. 2019) in February 2023. Room demand was 1.2 million room nights (+6.5% vs. 2022, -6.3% vs. 2019) and room supply was 1.6 million room nights (0.0% vs. 2022, +2.6% vs. 2019).

Luxury Class properties earned RevPAR of $524 (+7.8% vs. 2022, +14.7% vs. 2019), with ADR at $863 (+5.6% vs. 2022, +47.8% vs. 2019) and occupancy of 60.7 percent (+1.3 percentage points vs. 2022, -17.5 percentage points vs. 2019). Midscale & Economy Class properties earned RevPAR of $216 (+17.9% vs. 2022, +27.7% vs. 2019) with ADR at $266 (+9.8% vs. 2022, +36.4% vs. 2019) and occupancy of 81.1 percent (+5.6 percentage points vs. 2022, -5.5 percentage points vs. 2019).

Maui County hotels led the counties in February 2023 and achieved RevPAR of $465 (+16.2% vs. 2022, +32.3% vs. 2019), with ADR at $655 (+11.3% vs. 2022, +49.8% vs. 2019) and occupancy of 71.0 percent (+3.0 percentage points vs. 2022, -9.4 percentage points vs. 2019). Maui’s luxury resort region of Wailea had RevPAR of $658 (+13.4% vs. 2022, +12.6% vs. 2019), with ADR at $1,004 (+17.2% vs. 2022, +54.8% vs. 2019) and occupancy of 65.5 percent (-2.2 percentage points vs. 2022, -24.6 percentage points vs. 2019). The Lahaina/Kā‘anapali/Kapalua region had RevPAR of $423 (+19.4% vs. 2022, +44.9% vs. 2019), ADR at $575 (+10.8% vs. 2022, +56.2% vs. 2019) and occupancy of 73.5 percent (+5.3 percentage points vs. 2022, -5.8 percentage points vs. 2019).

Kaua‘i hotels earned RevPAR of $309 (+7.4% vs. 2022, +36.0% vs. 2019), with ADR at $418 (+10.3% vs. 2022, +37.5% vs. 2019) and occupancy of 73.9 percent (-2.0 percentage points vs. 2022, -0.8 percentage points vs. 2019).

Hotels on the island of Hawai‘i reported RevPAR at $332 (+1.7% vs. 2022, +43.3% vs. 2019), with ADR at $432 (+1.3% vs. 2022, +52.1% vs. 2019), and occupancy of 76.8 percent (+0.3 percentage points vs. 2022, -4.7 percentage points vs. 2019). Kohala Coast hotels earned RevPAR of $455 (-2.7% vs. 2022, +41.0% vs. 2019), with ADR at $602 (-2.3% vs. 2022, +52.6% vs. 2019), and occupancy of 75.6 percent (-0.4 percentage points vs. 2022, -6.2 percentage points vs. 2019).

O‘ahu hotels reported RevPAR of $210 (+25.3% vs. 2022, +3.4% vs. 2019) in February, ADR at $266 (+13.5% vs. 2022, +13.3% vs. 2019) and occupancy of 78.9 percent (+7.4 percentage points vs. 2022, -7.6 percentage points vs. 2019). Waikīkī hotels earned RevPAR of $202 (+27.7% vs. 2022, +1.6% vs. 2019), with ADR at $255 (+14.9% vs. 2022, +11.0% vs. 2019) and occupancy of 79.2 percent (+7.9 percentage points vs. 2022, -7.4 percentage points vs. 2019).

The article February 2023 Hawai‘i Hotel Performance Report first appeared in TravelDailyNews International.

Measurement of greenhouse gas (GHG) emissions is key for climate action. However, the tourism sector as the value chain is complex, diverse and overlapping, making sure measurement challenging. The new report “Climate Action in the Tourism Sector: An Overview of Methodologies and Tools to Measure Greenhouse Gas Emissions” was developed by UNWTO with support from the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection of Germany (BMUV) and is released in collaboration with UN Climate Change (UNFCCC). It focuses on three areas – accommodation, tour operators and destinations – with the following findings:

• Accommodation has the largest number of methodologies and specifically-designed tools, followed by tour operators
• Destinations face the greatest challenges when it comes to engaging in measurement
• There is little consensus over the differing responsibilities and boundaries of stakeholders, or over metrics used when organisations measure emissions

Recommendations for better GHG measurements

While noting that measurement of GHG emissions in tourism is still in its early stages, the report found a new generation of tools and resources is emerging. These focus on enabling easy access and making use of commonly available data sources, showing progress towards integrated measurement and targeted guidance for more efficient reporting and more effective decarbonization efforts.

Among its key recommendations, the report calls for:

• Tailored guidance for different stakeholder groups (destinations, accommodation, tour operators) to be developed
• Achieving a balance between the need to be able to accurately measure and the priority to scale up engagement, efficiency and progress
• Promoting the benefits of measurement by showcasing evidence-based changes in practices and advancing climate risk valuations to mobilize support
• Advancing tourism knowledge

The overview builds on the results of the first Global Survey on Climate Action in Tourism, which led to the identification of more than 50 methodologies and tools, with their subsequent assessment against a set of criteria and in-depth interviews and working group sessions with experts from across the sector. With this new report, UNWTO aims to provide guidance regarding the measurement of GHG emissions, accelerate climate action and to support the implementation of the commitments launched in November 2021 through the Glasgow Declaration on Climate Action in Tourism.

The article New report to support climate action in the tourism sector first appeared in TravelDailyNews International.

• more governments including international aviation emissions in their Paris Agreement plans;
• tourist boards and travel companies targeting a greater proportion of short-haul customers and bringing net zero products to market;
• investing in greener forms of transport which are adopted and promoted by the travel industry;
• relying less on offsetting as a “sticking plaster” solution, focusing instead on decarbonisation;
• fair policies that allow for differences in destinations around the world;
• slowing the expected rapid growth in aviation, with limits on the number of long-haul flights.

The report, published by the Travel Foundation with the Centre of Expertise in Leisure, Tourism and Hospitality, Breda University of Applied Sciences, the European Tourism Futures Institute, and the Netherlands Board of Tourism and Conventions, models the impact of different interventions. This includes technological advances, electrification, and alternative fuels. The report shows these could have the greatest impact on reducing CO2 in the decades ahead. The aim of the report is to provide signatories of the global initiative, the Glasgow Declaration on Climate Action in Tourism, with a positive vision of tourism which achieves net zero by 2050.

The researchers describe a global scenario where the shape of tourism shifts, as future growth comes from the areas of tourism most ready to decarbonise. For instance, a traveller might take the same number or more trips a year, but they will typically be travelling shorter distances, opening up opportunities for businesses to target closer-proximity travellers. As well as flying, they will use more rail, electric car, coach and ferry options for their holidays. Those who travel long-haul will take fewer long-distance trips but are more likely to stay longer, in energy efficient accommodation.

Chief among the report’s recommendations is the need to include all emissions in tourism’s decarbonisation efforts. With few exceptions, international aviation emissions are not included in national Paris Agreement commitments, which distorts decision-making and disincentivises investment in the most effective solutions. The report also calls for a global plan to optimise tourism’s growth and distribution flows in a way that is equitable and compatible with climate targets, given that limits on the number of flights are needed. Without this, the report modelling shows that emissions from longest-haul flights will quadruple by 2050, accounting for 41% of tourism’s total emissions, yet only 4% of trips. In addition, alternative forms of transport such as rail, ferry, coach and electric cars will require major investment. The report highlights implications for each industry sector to consider, including aviation, rail, tour operators, accommodation providers, tourist boards and the car and ferry industries, as well as the need to influence other key sectors which tourism relies on.

Leaders from the travel sector have supported the publication of Envisioning Tourism in 2030 and the call for global coordination to change how we travel and accelerate net-zero tourism:

“We call on the entire tourism industry to coordinate efforts, work together and seek the most successful tools worldwide to advance in the task of reducing emissions. The task is enormous, but taking action as soon as possible will allow effective results to be achieved in the medium and long term.” Verónica Kunze, Undersecretary of Tourism, Government of Chile.

“The report challenges all tour operators to move faster on decarbonizing our businesses. Intrepid is already the first global tour operator with science-based carbon emissions targets and we’re working to reduce the impact of transport in the trip emission profile; strengthen our domestic and regional travel offering; and promote longer trips in destinations that require long-haul flights. Decarbonizing our supply chain relies on different players, including governments, prioritising the phasing out of fossil fuels in favour of clean technologies. This is not going to be easy and no business can act alone.” Dr Susanne Etti, Global Environmental Impact Manager, Intrepid Travel.

“Iberostar’s ambition to reach Carbon Neutrality by 2030 requires unprecedented public-private partnerships and industry collaboration. For example, Iberostar will need to work with governments and energy providers to add up to 220 megawatts of new renewable energy in its destinations. Envisioning Tourism 2030 further emphasizes the need for more dialogue between the sub-sectors that make up the traveler journey. In order to increase stays or alter modes of transportation to destinations, businesses will need to collaborate in platforms that either don’t exist or are currently limited in fostering cross-sector dialogue. In order to ensure equity can translate to business decisions, there must be a platform for the sector and its destinations to speak and be heard.” Megan Morikawa, Global Director of Sustainability Office, Iberostar.

“Reports and research like this from the Travel Foundation and its collaborators are critical calls to action for governments, investors, consumers and donors. We all need to be on the same page. Collective actions and coalitions of the willing are fundamental building blocks for tourism futures.” Shaun Mann, Senior Tourism Specialist, World Bank Group.

“There is so much at stake if we continue with a business-as-usual approach to development. For small island developing states like those in the Pacific Island region, it is as simple as ensuring that regional, national and business level climate resilience targets and actions are integrated into tourism policy and plans and are well funded. This is a good starting point.” Christina Leala Gale, Pacific Tourism Organisation (SPTO).

“The report makes it very clear how deeply each sector of the industry is connected to one another and how we, by working together and by taking the lead as individuals and as companies in each sector, could transform the industry and the way we travel.” Sofya Muhrer-Muromets, Sustainability Lead, TourRadar.

“This new research helps us better understand our collective path forward and align around action. At Expedia Group, we are committed to mobilizing our vast global network of travelers, partners, and peers to raise awareness for more sustainable and responsible travel choices. Our social impact and sustainability strategy aims to address ways the industry mitigates and adapts to climate change and travel.” Tessa Lee, Senior Manager, Climate and Sustainability, Expedia Group.

“This report will act as a catalyst for a very important conversation that we as an industry must have: how can growth and Net Zero targets align? We share a view of the value of the travel and tourism industry, and a desire to ensure it can continue to grow in an equitable way. But this report makes it clearer than ever: we must keep asking ourselves the hard questions and pursuing urgent and transformative solutions in order to reach our very ambitious – but critically important – goals for 2030.” Alix Farr, Sustainability Lead, Skyscanner.

The article Industry voices call for global effort to bring about climate-ready travel first appeared in TravelDailyNews International.

Traveler confidence in general is also increasing, as people began planning earlier for 2023. During the last quarter of 2022, 35% of overall searches were for travel in 2023 — a 55% increase YoY.

Travel search volume increased 10% YoY on Expedia’s websites in Q4 2022, with APAC search volumes up more than 50% YoY, signaling positive responses to travel restrictions easing in various countries, including China, Hong Kong, Japan, South Korea, Taiwan, and Thailand.

Globally, the week of October 3 saw strong week-over-week (WoW) search volume increases across both domestic and international searches, corresponding with easing travel restrictions in Canada, South Korea, and Thailand, among other destinations. As is often seen at the end of the year, during the week of December 26, WoW search volume globally was up by 30%, led by Latin America (LATAM) and Europe, the Middle East, and Africa (EMEA), signaling a return to seasonality.

Domestic search volume

Domestic search performance fluctuated throughout Q4, with the strongest WoW growth during the weeks of October 3 and December 26, when domestic search volumes globally were up by nearly 35%.

International search volume

During the week of October 17, international searches from travelers in LATAM were up 10% WoW. Among North America (NORAM)travelers, international search volumes were up during the weeks of November 28 and December 26, perhaps bolstered by popular holiday sales and promotions.

Beach & city destinations continue to shine

Easing travel restrictions in APAC, holiday travel, and the appeal of warm weather destinations all influenced the global top 10 list of booked destinations during Q4. Across the super regions, New York, Las Vegas, and London held on to the top spots, Orlando and Cancun moved up in the rankings, and Miami overtook Boston for the No. 10 position. Tokyo was a newcomer to the list at No. 7. The shift to warm weather destinations was also a trend in the previous year – Q4 2021 – as travelers likely started planning their warm weather escapes during peak winter months in the Northern Hemisphere. Destinations like Boston and Denver dropped from the global top 10 list and were replaced by Miami and Dubai; similarly, Cancun and Honolulu moved up the rankings.

The rise of the flexcation

As flexible work options remain for many companies around the world, “blended” or “flexcation” travel – a longer stay that mixes remote work and play – is on the rise, and the opportunity for those in the travel industry is huge. Insights from the Traveler Value Index 2023 study back up this theme, showing that 28% of consumers are looking to take a flexcation trip in the next 12 months.

Price and value rising in importance

Demand for travel is expected to remain strong due to increasing plans for flexcations and the return of business travel, consumer savings, and the ongoing prioritization of travel. That said, while overall intentions to travel are high, traveler spending behaviors are expected to evolve, pointing to the growing importance of price and value.

Experiences are (still) everything

Activities and experiences were some of the top priorities and decision drivers for travelers pre-pandemic, and their importance is on the rise again. This year, people are branching out to unexpected trends in what can be considered the “no normal.” From culinaryfirst travel to wellness retreats and off-thebeaten-path adventures, experiences are influencing trip decisions. But for many travelers, especially those experiencing post-holiday burnout, this can also mean experiencing nothing, or a “nothing-cation,” where warm weather, relaxing, and recharging are the main attractions. A recent survey found that 96% of US travelers want to spend part of their next vacation doing nothing, and 54% of UK travelers connect doing nothing on a holiday with relaxation.

Mobile & app growth

Although global smartphone penetration rates have been steady over the past few years, mobile searches and bookings are on the rise. Comparing 2022 to 2019 data from our websites, traveler booking share on mobile devices – phone and tablet – was up 15%, led by strong growth in mobile phone booking share. Mobile app search share in 2022 increased 30% compared to 2019, illustrating the importance of reaching potential travelers across devices, channels, and platforms.

The article Expedia Group’s Q1 Traveler Insights Report shows reassuring signs of ongoing enthusiasm for travel first appeared in TravelDailyNews International.

Our analysis shows that national cycling strategies are growing in prominence, but that there is still long way to go in many countries, particularly considering the political objective set by the pan-European Master Plan for Cycling Promotion that every country must develop and implement a national cycling strategy by 2030. The Master Plan was adopted in May 2021 and applies to 54 countries.

Key new developments in the report, compared to the 2021 edition, include:

• Italy adopting its first ever national cycling strategy.
• England publishing its Second Cycling and Walking Investment Strategy.
• France publishing a new Cycling and Active Mobility Plan 2022-2027.
• The Czech Republic adopting a Concept for Urban and Active Mobility 2021-2030.
• Luxembourg adopting a new National mobility plan 2035 with a dedicated section on cycling.

Including the new strategies adopted in 2022, 20 countries now have at some point adopted a national cycling strategy or similar policy document. 14 are currently in force, while six have expired and therefore need updating. Of the remaining 24 countries analysed in the report, eight are currently in the process of developing a national cycling strategy for the first time, primarily located in the Danube region. Big gaps still exist in some parts of Central and Eastern Europe, the Balkans, as well the Caucasus.

Key findings:

• The report is the first to look in a systematic manner at spending levels of central governments, hereby revealing big differences between countries. According to our analysis, the northern region of Belgium, Flanders, appears to have been the top investor in cycling infrastructure in 2022, investing approximately 45 euros per capita, followed by runners-up Ireland (c. 35 euros PC) and Norway (c. 20 euros PC). Flanders has exclusive competence over its entire road network and therefore can be somewhat compared to the role of the national level in other countries.
• Annually, the Flemish regional authorities invest about 300 million euros into cycling. In addition, the sub-regional level (the five Flemish provinces), as well as the local level, also undertake considerable investments. According to Fietsberaad Vlaanderen, towns and cities invest on average 15-20 euros per capita annually in cycling, three times more than five years ago. Flanders also absorbs the majority of the €411 million investment that is earmarked for cycling as part of Belgium’s National Recovery and Resilience Plan.
• Climate and energy policies are increasingly becoming a main driver for change in every economic sector, including land transport. Extending the EU Emission Trading System to transport is the latest proof to that. While cycling is the most climate- and energy-efficient mode of transport par excellence, it still has not gained the attention it deserves in various climate and energy policies. ECF therefore strongly emphasises the need to fully take the potential of cycling into account and systematically include cycle measures in both the UN’s Nationally Determined Contributions as well as in the EU’s National Energy and Climate Plans. The latter are up for revision in 2023.

The findings in this report will provide a benchmark against which ECF intends to continue publishing annual update reports to track progress on the development and implementation of national cycling strategies in Europe towards 2030.

The article The state of national cycling strategies in Europe – second edition first appeared in TravelDailyNews International.

While there is no clear path to rapidly re-balance the value chain, the study concludes that there are some key areas – including decarbonization and data-sharing – where working together and burden-sharing will mutually benefit all value chain participants.

Highlights from the Understanding the Pandemic’s impact on the Aviation Value Chain study include:

• Capital Destruction: Despite delivering consistent operating profits pre-pandemic (2012-2019), airlines collectively did not produce economic returns above the industry’s Weighted Average Cost of Capital (WACC). On average the collective Return in Invested Capital (ROIC) generated by airlines was 2.4% below the WACC, collectively destroying an average of $17.9 billion of capital each year.  
• Value Creation: Pre-pandemic, all sectors of the value chain except airlines delivered ROIC in excess of the WACC, with airports leading the pack in the absolute value of return by rewarding investors with an average of $4.6 billion annually above the WACC (3% of revenue). When viewed as a percentage of revenue, Global Distribution Systems (GDSs)/Travel Tech firms topped the list with average returns of 8.5% of revenues above the WACC ($700 million annually), followed by ground handlers (5.1% of revenue or $1.5 billion annually), and Air Navigation Service Providers (ANSPs) at 4.4% of revenues ($1.0 billion annually).
• Pandemic Changes: Although the pandemic (2020-2021) saw losses across the value chain, in absolute terms airlines’ losses led the pack, with ROIC falling below the WACC by an average of $104.1 billion annually (-20.6% of revenues). Airports saw ROIC fall $34.3 billion below the WACC and generating the largest economic losses as a percentage of revenue (-39.5% of revenues).

"This research reaffirms that airlines improved their profitability in the years following the Global Financial Crisis. But it also clearly shows that airlines, on average, were not able to benefit financially to the same degree as their suppliers and infrastructure partners. Rewards across the value chain are also disproportionate to risk. Airlines are the most sensitive to shocks but have limited profits with which to build a financial buffer,” said Willie Walsh, IATA’s Director General.

The pandemic saw all players fall into economic losses. As the industry recovers from the crisis, the study’s most important question is: can a more balanced distribution of economic returns and risk be realized in the post-pandemic world?” said Walsh.

Several changes in the profile of airline economic returns are noted in the study: 

• While network carriers underperformed the low-cost sector (LCCs) pre-pandemic, average economic returns by network carriers exceeded those of the LCCs during the pandemic. The gap between the two, however has narrowed as the recovery progressed. 
• Airlines solely operating cargo flights have a profitable financial performance with an ROI of nearly 10%. Thus, the profitability of all-cargo carriers was the reverse of airlines carrying both passengers and cargo. By comparison, the performance of all cargo carriers is still well below the average ROIC for freight forwarders which began the crisis at nearly 15% of revenues and grew to 40% of revenues by 2021.
• Regionally, it was clear that in aggregate North American carriers entered the crisis with the healthiest balance sheets and strongest financial performance. The picture of recovery was less clearcut in 2021, but having fallen the deepest in the crisis, the trajectory of the region’s recovery is also the steepest.  

Why do airlines generate insufficient economic returns? 
An updated analysis of the forces shaping airline profitability originally done in 2011 with Harvard Business School’s Professor Michael Porter demonstrates there has been little positive change.  

• Competitive Fragmented Industry: The airline industry is intensely competitive, fragmented and subject to high barriers to exit with low barriers to entry.   
• Structure of suppliers, buyers and channels: A high concentration of powerful suppliers, the emergence of increasingly efficient alternatives to air travel, commoditized product offerings with low switching costs and a fragmented buyers’ community are characteristics of the operating environment.  

“It is difficult to see how these entrenched forces will change significantly in the near term. In most cases the interests of those in the value chain are simply too divergent to work as partners to drive change that could meaningfully alter the profitability profile across the value chain. That is why IATA will continue to call on governments to better regulate our monopoly or near-monopoly suppliers like airports, ANSPs and GDSs,” said Walsh.

Recent IATA polling shows public understanding of the need to regulate monopoly suppliers. Some 85% of consumers polled in an 11-country survey agreed that the prices that airports charge should be independently regulated, like utilities.

Cooperation
The value chain study also revealed some areas of common interest where greater cooperation would deliver benefits for all. Two of the examples noted in the study include: 

• Data-driven efficiency gains: Aviation generates vast amounts of data. At the operational level, sharing data to build a more complete picture of how day-to-day decisions impact customers, airports terminals, airline schedules/crew movements, and runway utilization is already helping to drive efficiencies for all industry players at some airports. This same principle can be applied across the industry to make better long-term decisions in areas including infrastructure development, process improvements, and skills development.
• Decarbonization: Achieving net zero carbon emissions by 2050 cannot be done by airlines alone. Fuel suppliers need to make sustainable aviation fuels available in sufficient quantities at affordable prices. ANSPs need to provide optimal routings that minimize emissions. Engine and aircraft manufacturers must bring to market aircraft that are more fuel efficient and take advantage of low or zero carbon propulsion means such as hydrogen or electricity. Those offering service in the airport environment will need to convert to electric vehicles.

"There is no magic solution to rebalance the value chain. But it is clear that the interests of governments, travelers and other value chain participants are best served by financially healthy participants – and particularly airlines. A combination of better regulation and cooperation in areas of mutual interest could move the needle. And there are at least two areas ripe for collaboration and burden sharing – pursuing data-driven efficiency gains and decarbonization,” said Walsh.

"We are proud to partner with IATA since 2005 on understanding the value created across the aviation value chain. Over that time, the aviation industries have seen several crises and comebacks. But never has the aviation value chain overall returned its cost of capital. Airlines have consistently been the weakest element, even in their best years not quite returning cost of capital. But there are win-wins, and companies across the value chain can work better together to serve customers, and improve value,” said Nina Wittkamp, Partner at McKinsey.

The article IATA – McKinsey Study shows imbalanced aviation value chain first appeared in TravelDailyNews International.

According to the study, men within the industry are more likely to occupy directorial positions than women. Taking a sample of 2,000 global Linkedin profiles, only 16% of the women included were at this seniority level in comparison to 32% of men.

The event management industry is not one that would appear to succumb to gender inequality at first glance, especially with women making up more than 75% of the workforce according to the research.

Yet, this disparity will not surprise anyone who has ever looked below the surface of gender within the workplace.

As part of the report, Gabrielle Austen Browne, founder of Diversity Alliance and co-founder of the Diverse Speaker Bureau, has shared her five useful tips on how to create a more diverse and gender-balanced workplace.

Kim Myhre, one of the world’s leading design thinkers and thought leaders, also offers his expertise on how diversity, equality and inclusion offer the chance to create a more innovative industry.

The article New gender equality report by IBTM highlights that MICE industry is still ‘dominated by women but run by men’ first appeared in TravelDailyNews International.