Technology, Organisations & Operators,

Holiday surcharges are a real possibility in the travel and tourism industry as companies grapple with the rising energy prices. Segments such as lodging, transportation and tourist attraction etc., will certainly be impacted. Therefore, travel and tourism businesses will be in dilemma whether to pass these additional costs on to the consumers or absorb the charges themselves, observes GlobalData, a leading data and analytics company.
Unfortunately, this has come at what was expected to be a pivotal year in the travel and tourism industry. Traveler confidence is returning, but low-cost travel options remain highly sought after, especially after the economic hardship due to the pandemic. According to a GlobalData Q3 2021 Global Consumer Survey, *58% of respondents said that ‘cost’ was the most influential reason to purchase a holiday, making it the leading motivator for travel consumption.
Craig Bradley, Associate Travel & Tourism Analyst at GlobalData, comments: “As energy and fuel prices have soared, transportation companies such as airlines and rail companies are facing higher overhead costs in 2022 than in previous years. Companies that choose to absorb these charges could struggle to turn a reasonable profit, forcing many to pass these charges on to travelers.
“Lodging, and other hospitality services face a similar dilemma. Energy and fuel costs impact entire supply chains, so the cost of imported goods such as food and beverage will increase. These companies have already been under significant strain during the pandemic, with hotels reporting low room occupancy levels or closing down indefinitely due to COVID-19 restrictions.”
Rising operational costs could also be problematic for pre-booked holidays in 2022 and 2023 through travel intermediaries. Some companies may be forced into levying a surcharge to existing reservations to cover rising costs. In that case, travel agencies and tour operators have a predicament whether to pass the charge on to paying customers or not. This could force the customers to cancel itineraries altogether either due to lack of affordability or service dissatisfaction.ADVERTISEMENTBradley concludes: “Additional surcharges present travel and tourism businesses with a highly challenging situation. Adding extra costs or taxes could damage the customer relationships. As a result, companies may look at alternative measures to cut costs by stripping back services or streamlining operational processes which could potentially impact customer service but allow them to navigate through this unfolding situation.”
*Data taken from GlobalData Q3 2021 Global Consumer Survey – 22,499 respondents

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The Caribbean Tourism Organisation (CTO) has reached agreement with the Canada-based e-learning courseware development company, Velsoft, to further advance its virtual training and development programme.
As part of the agreement, Velsoft will host the Caribbean Tourism Institute, an online campus developed by the Canadian firm.
The new portal is an open online educational, training and development learning centre designed to provide affordable access to training opportunities for everyone who works, or aspires to work, in the Caribbean tourism and hospitality sector.
“Velsoft has been working closely with us to help us realise one of our key human resources development objectives of increasing the access of Caribbean nationals to high quality training and educational opportunities,” said Neil Walters, CTO acting secretary general.
“This partnership has allowed us to develop and offer this virtual training hub and will continue to help us in our mission to develop and design relevant e-learning content, which will benefit our tourism and hospitality sector.”ADVERTISEMENTFrom its inception, the CTO has been a strong proponent of human resources development in the tourism industry and has as one of its strategic objectives, to assist its member countries in developing and strengthening their human capital to better enable them to offer high levels of professional service.
The launch of the online training platform and courses is an important step in achieving this objective and to support ongoing training and build regional and institutional capacity.

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FCM is growing its presence across Asia through a joint venture with NSF Engagement in Japan.
The investment will enhance the presence of the travel management company in Asia to support existing customers in the region while boosting its global footprint.
A robust business travel market, a strong increase in demand from customers across Asia and an opportunity to provide a differentiated service offering were among the decisive factors for FCM to expand its operations in Japan.
Feedback from FCM customers across all markets revealed a lack of adequate end-to-end business travel solutions in Japan that can deliver consistently and is simple to use at the same time.
Additionally, Japan’s excellent digital infrastructure provides a strong foundation for FCM to integrate the new technology that the leading travel management company has been developing into the market. ADVERTISEMENTIn the coming months, the full suite of FCM products and services will be introduced into Japan to support consistency and improved customer experience.
This includes FCM’s proprietary FCM Platform which had its debut launch in China last month.
Bertrand Saillet, managing director of FCM Travel Asia, said: “Choosing to expand FCM’s presence in Asia at this critical time speaks volume of the tremendous potential Japan has towards FCM’s global strategy.
“As the world’s fourth largest business travel market, Japan will undoubtedly provide exciting growth opportunities for FCM in the region.
“FCM and NSF Engagement both recognised that the Japanese travel market is ripe for disruption and our partnership presents an alternative for clients who are currently being underserved.
“NSF Engagement’s deep local knowledge complemented by FCM’s evolving technology and global expertise will allow us to provide global coverage for existing and new Japanese clients.
“We are thrilled to work with a partner who shares our vision to continue our expansion in Asia.”

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The United Nation World Tourism Organisation (UNWTO) and Google have signed a new agreement to work together and lead global recovery of tourism through innovation, education and market intelligence.
The new memorandum of understanding builds on past cooperation between the UN agency for tourism and Google.
Notably, the pair will host trainings for destination management organisations, using a new capacity building curriculum developed by Google.
These sessions will empower destinations to switch to digital, with the training adapted to reflect their specific circumstances and the unique challenges every destination currently faces.
The new curriculum will also complement existing joint initiatives, and a data sharing agreement for Google’s Travel Insights to power a portion of the UNWTO’s tourism recovery tracker.ADVERTISEMENTAlongside this, the Tourism Accelerator Program, designed by Google in partnership with UNWTO, will also be scaled up globally.
A pilot program launched across Europe, Middle East and Africa in 2020 showed the value of working with policymakers to put digital at the heart of their tourism recovery plans and the benefits of upskilling destination management companies so they can make effective use of data and market intelligence.
The partnership will go beyond empowering destinations and businesses during the immediate recovery phase.
Under the agreement, Google will provide ongoing support for a number of UNWTO’s leading initiatives, including Start-up Competitions designed to promote and support innovation across the sector.
UNWTO secretary general, Zurab Pololikashvili, said: “The strong partnership between UNWTO and Google will help put innovation and digital at the centre of tourism’s recovery.
“By working together, UNWTO and Google will empower destinations, businesses and tourism workers to realise the power of data and market intelligence, both increasingly important as global tourism looks to restart and recover.”
Looking ahead, UNWTO and Google will also collaborate on joint research projects related to tourism.
The results will further establish both parties as thought leaders and provide governments, destinations and businesses with the trusted data and insights they need to guide tourism towards recovery.
Google managing director for travel partnerships, Gianni Marostica, said: “We’re honoured to be working alongside UNWTO in this vital effort to support the global tourism sector on its path toward broader economic recovery.
“It’s critical that both policymakers and businesses have the tools and insights they need to reconnect with travellers in a digital environment.”

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Amadeus has signed a wide-ranging technology partnership agreement with OK Travels and Tourism, a fully-fledged tour operator and ticket sales travel company in Abu Dhabi.
The partnership with Amadeus will provide OK Travels and Tourism with access to a range of cutting-edge travel solutions including artificial intelligence, all designed to deliver a superior level of service to customers and remove friction from the travel experience.
Muhammad Ali, managing director of OK Travels and Tourism, said: “We understand the challenges of the modern tourism industry and know that planning, developing, and adapting destination resources to the evolving needs of the market is the key to success.
“In an increasingly digital world where more consumers are online.
“Amadeus’ solutions will enable us to build upon this philosophy, taking our customer relationships and value-offering to the next level.”

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Under the agreement, OK Travels and Tourism will benefit from products including Amadeus Web Services, which allows the creation of customer applications and delivery of a wealth of high-quality tailored content for customers, as well as a suite of other tools.
Ernesto Sanchez Beaumont, managing director of Amadeus Gulf, said: “The UAE is an attractive travel hub, not only for residents from the region but also for global travellers looking to visit or transit through a country with robust health and safety systems in place.
“In partnership with Amadeus, OK Travels and Tourism will have access to some of the most advanced global technology solutions to enhance its offerings, providing a key point of differentiation based on superior customer experience.”
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The World Tourism Organisation (UNWTO) has signed a deal to work alongside the Expedia Group to strengthen ties between the public and private tourism sectors.
It is hoped the deal will drive a recovery from the impacts of the Covid-19 pandemic.
The two parties signed a memorandum of understanding that will see them collaborate on a range of topics, with the common goal of driving recovery and making the sector more resilient and sustainable.
UNWTO secretary general, Zurab Pololikashvili, met with representatives of the Expedia Group in Brussels, on the back of successful talks with leaders of the European Institutions.
Highlighting a commitment to strengthening ties with the private sector, this enhanced partnership will see the United Nations agency work more closely with the Expedia Group.

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Joint actions will focus on market intelligence and innovation.
UNWTO and Expedia will also work together to promote entrepreneurship and professional education, and in the field of consumer protection.
Pololikashvili added: “From the very start of this crisis, UNWTO has been a strong advocate of close cooperation between the public and private sectors.
“This enhanced partnership will help improve our knowledge of global tourism trends, allowing us to respond to new challenges and guide tourism’s recovery.
“It will also help us place innovation and sustainability at the heart of this recovery, ensuring tourism emerges stronger than before.”
The partnership with between UNWTO and Expedia Group will see both parties share data on tourism trends and developments, both at the global and the local scale.
This will help inform decision-making, producing data-based policies aimed a tourism’s sustainable recovery and future development.
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