Fifth Dimension

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Posts Tagged ‘web 2.0’

Travel 2.0: Musings on the Long Tail in Travel

Posted by fifthdimension on November 7, 2007

While Travel 1.0 is headed for its sunset, the Web 2.0 has enabled the Travel industry to integrate new features, enhance user experience and differentiate themselves in the highly competitive travel market. So, here comes Travel 2.0.

Unlike Travel 1.0, where companies were in control, in Travel 2.0, corporates must allow travelers to take control, plan and find or design the perfect trip. So, the concept of lowest airfares or the cheapest trip do not hold much water anymore.

Has anybody noticed the social networking phenoma? You do not belong to the Internet generation if you have not! The most interesting aspect is that this kicked off the Long Tail economy. If you want to be in business, you must concentrate on niches and the smaller products. This is because all the smaller numbers taken together, by far,  will out number the larger product. 

Before going further, I’d like to remind you that you can’t ignore customer complaints. They are communicating with each other and eavesdropping in social sites. It takes just a day to ruin your reputation, which matters most while selling products.

Alright. The Long Tail almost rang the death knell for the Pareto Principle . In wake of Web 2.0, you can’t even imagine banking on the 80/20 law or “the law of the vital few”.  

Recently, Phocuswright released their five predictions on the future of the long tail in travel. Here’s a summary of their report:

  • The little guy’s (product, channel, site, business) influence is significant
  • The sum of the niches is embraced
  • The 80/20 rule is debunked (“law of the vital few”)
  • The size of your reputation matters more than the size of your marketing budget
  • Distressed, “out of print” or discontinued product now has value

The first four definitely looks very vital for the Travel Industry, which will guide all future strategies on products, pricing, marketing and branding.

Posted in Airlines, Media and Culture, News, Perceptions, Reviews, Society, Travel | Tagged: , , , | 4 Comments »