Escolar Documentos
Profissional Documentos
Cultura Documentos
Presentation p3
About Fast Future p 92
Background Notes p 103
Image Sources p 360
Macro
Drivers
The World in 2025
How do we get there from Here?
Natural
Society in Resource Demographic
Transition Challenges Destinies
Geo-political Generational
Complexity Economic Crisis Crossroads
and Power Shift
Rethinking
Technology Talent,
and Science Education,
Training
Enterprise 3.0
Global
Internet
Expansion
Source: Designing your Future Key Trends, Challenges and Choices Fast Future
Aviation Outlook
Airport Expansion by 2020
China from ~150 to 244
India from ~100 to 140
Uncharted Paranoid
Territory Survive
Low High
Passenger Price Sensitivity
Low
Business Model Innovation
Sustainable Green Terminals
Fast Build, Flexible and
Temporary Terminals
1998 4157
729 1030
585
2010 2050
Life Redefined
Lifespans are Increasing
Under 50s have 90%
chance of living to 100.
Source: United Nations Report Warns of Dire Effects of Under population, Fertility Decline, by Susan Yoshihara, PhD, March 5th 2010, Life
News http://www.lifenews.com/int1479.html http://www.financial-planning.com/news/allianz-retirement-pensions-growth-2668604-1.html
Tomorrows Traveler
Spending Patterns
By 2020, Asian consumers
could account for over 40%
of global middle class
consumption
By 2030 Asian consumer
spending could hit $32
trillion
By 2014 female wealth
could reach $18 trillion
Females could control 70%
of global consumer
spending
Traveller Mindsets
Craving Simplicity
604 Respondents
I will book the bulk of my travel
online in 2015
74% - Will use
64% Social Networks to
Research and Find
Deals
31%
3% 2%
Telephony Connectivity
Voice Cellular
Messaging Up to 14 bands
SIM card WLAN/BT
Phonebook GPS
Ring Tones NFC
Security FM
Data/ Multimedia
Enterprise Camera 8-16M
Camcorder
100Mbps
24M Color Display
Email
Memory (160GB)
IMS
Multiformat A/V
Browsing
HD Video/TV out
VPN
Games
PIM
Ecommerce
Software (50-100M Tps)
Protocols DRM
Payments
Middleware
Applications
User Interface
Minimize fragmentation
Mobile Technology at the Airport
Boarding
Mobile
Interactive Coupons
ads
Social Mobile
networking payments
Security
Automated Notification Self-service
Check-in & guidance Baggage drop
Roaming
Source: Forrester
Next Generation Smart Phones
Concierge / Schedule
Management
Check in
Notifications / Directions
Route Management
User Generated Content
Wallet
Location Based Offers
Dynamic Rerouting
Personal Networking
Apps / Personalised Advertising
Holographic Displays
Augmented Reality / Heads Up
Augmented Reality at
Copenhagen Airport
Haptics / Holograms / Interactive Surfaces
Wearable Displays
Ambient Intelligence
Real Time / Predictive Analytics
3D Printing True Personalization
Rethinking the Airport
Experience
Live the Customer Journeys and Experiences
Sub Traffic Off airport flight Arrival at airport by Parking Transport from
process information information car/train parking to Plaza
KPI Traffic jams Accessibility Price/Quality LT Ease of wayfinding
Score 73% 91% / 90% 41% 90%
Sub Entering Plaza Services; Leaving Plaza Departure from Retrieving car &
process rental, parking airport by bus/train Leaving airport
KPI Clarity Clarity Accessibility
Score 77% 77% 90% / 80%
Airport Arrival
Extended Airport?
Check In
Next Gen Qantas Check-In
Security
Are Biometrics the Answer?
Flight Departure
Minimising Journey Times
and Aircraft Turnaround
Arrivals
Localizing the Experience?
Enhancing the Airport Experience
Service, Food, Leisure and Retail
Virtual Assistants
Catering, Lounge and Service
Experiences
Extending the Experience
The Slide@T3
Changi Airport - Singapore
Funding The Future
From Cabin to Cash Register
Leveraging Customer Insight
- Multiple Revenue Streams
Leveraging Customer Insight
Best Price Guarantees
Partner Tie-ins
Pullman Bangkok King Power Hotel
In-flight Duty Free
Korean Air - Shop Onboard
Passenger Centric, Context Related
e.g. The Virgin Red Store
Experiment
Develop uncertainty
tolerant management
Aviation Next what does the
timeline of developments look
like for the sector in your region?
Deep Dive on Key Trends / Issues
Be Magnetic
Make Time and Space for Change
http://news.nationalgeographic.com/news/bigphotos/images/090305-daylight-saving-time-facts-history_big.jpg
Conclusions
Twitter http://twitter.com/fastfuture
LinkedIn http://www.linkedin.com/in/talwar
www.fastfuture.com
www.convention-2020.com
Blog http://widerhorizons.wordpress.com
Signup for our newsletters / Download past editions at www.fastfuture.com
92
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Global Economies e.g. The Future of China the Path to 2020
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Future of Travel and Tourism Investment in Saudi Arabia
Example Clients
Background
Notes
Macro
Drivers
We need to Prepare for
Alternative Scenarios
8-10% Suspicious Love is in
Minds the Air
GDP
Growth
Dancing in
India 6-7%
the Dark
and
China
Road to
Nowhere
1-2%
Recession 0% 1-2% 2-3%
GDP Growth Europe, the USA and Japan
Derivatives
Market Value vs. Global GDP
800 760
700
700
605
600
US$ Trillion
500
400
300
200
100 69.8
14.2 4.33
0
Richard 2010 est Bank of World GDP US GDP Chinese GDP
Duncan (June International
2008) Settlements
June 2009 est
Source: BIS, 2009 BIS - http://www.roubini.com/financemarkets-
monitor/258502/___swap_tango________a_derivative_regulation_dance__part_1
2010 - http://www.newsmax.com/deBorchgrave/BankforInternationalSettlements-BIS-derivatives-MerrillLynch/2010/05/11/id/358672
Public debt in 2020 (% of GDP)
Source: IMF WEO 2009, PwC the World in 2050 March 2008 edition
Reorientation of Global Markets
Some 647 million air travelers more than a quarter of the 2.2 billion passengers
who flew worldwide took to the skies in Asia in 2009, compared to the 638 million
air travelers in North America, hitherto the traditional leader in global aviation.
By 2013, an additional 217 million travelers are expected to fly within Asia to push the
regions aviation market share to about one-third of the world market.
In the U.S. there are three aircraft seats per year for each of the 300 million people
who live here.
Chinas population of 1.3 billion is served by only 0.3 seats per person and Indias 1.1
billion population has only 0.1 seats available per person.
When Asians reach the stage of traveling as frequently as people in the U.S., that
alone will triple the size of todays global aviation industry.
Source: Bay Area Travel Writers Travel Trends: Asia Eclipses America in Aviation Markets by Lakshman Ratnapala, March 2010
http://www.batw.org/news/industry-news/travel-trends_mar-2010/
Current Spending Patterns
Reinforcing the appeal of duty free Top Asia-Pacific Amount US$
duty free spenders
savings, 43 percent of all respondents
said they shopped at a duty free store Korea 358
during their last overseas trip. China 333
Travelers from Japan (73 percent),
Hong Kong 224
Korea (71 percent) and China (49
percent) were the regions most Malaysia 195
frequent duty free shoppers while India 180
Korean and Chinese travelers also
Thailand 178
made it to the biggest spender list.
Japan 164
Australia 153
Singapore 153
New Zealand 134
Taiwan 125
Regional Average 212
Source: China Travel Trends, September 2009 http://www.chinatraveltrends.com/2009/09/16/chinese-travellers-top-list-of-duty-free-spenders-in-
asia-pacific/
Future Regions of Multiple Stress
Source: Ministry of Defence Strategic Trends Programme, Global Strategic Trends out to 2040, February 2010
http://www.mod.uk/NR/rdonlyres/D70F2CC7-5673-43AE-BA73-
1F887801266C/0/20100202GST_4_Global_Strategic_Trends_Out_to_2040UDCDCStrat_Trends_4.pdf
Source: Tourism Futures http://www.tourismfutures.net/insights/demographic
Source: Tourism Futures http://www.tourismfutures.net/insights/demographic
Source: Ministry of Defence Strategic Trends Programme, Global Strategic Trends out to 2040, February 2010
http://www.mod.uk/NR/rdonlyres/D70F2CC7-5673-43AE-BA73-
1F887801266C/0/20100202GST_4_Global_Strategic_Trends_Out_to_2040UDCDCStrat_Trends_4.pdf
Climate Change
The Climate Change Challenge
How fast can CO2 emissions be reduced per unit travel?
How can we move towards convergence on the most effective way to
reduce aviation climate change impacts?
How can we best address non-CO2 climate impacts?
Where are carbon emissions owned?
Source: Henley Centre Headlight Vision Managing the environmental challenges of growth in aviation Draft report of stakeholder
event, Cambridge October 2006
Travel
Outlook
Multi Speed Recovery Leading to
many Types of Tourist
The global travel and tourism industry will experience a multi-speed recovery taking
up to a further four years to fully recover to pre-global downturn levels, reveals a
report launched on June 16th 2010.
Euromonitor Internationals Forecast Update Recovery In Sight? - reveals the global
travel and tourism industry will experience a multi-speed recovery kick started by
the developing economies as high unemployment and debt in developed countries
holds back their growth.
Global international arrivals will not recover to pre-crisis 2008 levels until 2012, while
incoming tourism receipts will not recover until 2013.
Furthermore, the hotels sector will not fully recover to 2008 levels until 2014.
The hotel sector in Australasia, Latin America, and Europe will take the longest to
recover.
Asia is again driving force behind the hotels recovery, due to the continued expansion
of international and local chains.
Massive protests spoil the opening of the Mount Everest Theme Park.
Tourism puts huge strains on infrastructure in popular destinations like New York,
Paris and London. Visitors are herded between attractions with timed tickets.
High-tech carbon scrubbers installed on the ground clean the air so you can travel.
Tour guides with a military background hired as part of a holiday package for extra
protection abroad.
Rising sea levels force Government of Maldives to step up relocation plans to India.
Latest hot holiday craze is massive resorts offering golf and skiing across sand
dunes.
Fast growing destinations: Norway, Ireland, Latvia, UK, Greenland Doomsday Park,
Canada, Denmark, France, Sweden, The Estonian Army Base Experience.
Ukraine positions itself as the Gateway to the East with new Kiev bus-rail megahub
plan.
Absolutely no frills airline sector from some non-EU countries offers standing room
only and no cabin crew.
Banks offer holiday credit schemes allowing family and friends to save together for
the annual trip.
Red Cross Swarm uses social networks to send volunteers to disaster zones faster
than official agency staff.
Peer-to-peer holidaying allows people to swap lives with another family and spend a
year in another part of the world.
Source: Fast Company Tourism 2023 Imagines the Future of Vacations, October 2009
http://www.fastcompany.com/blog/ariel-schwartz/sustainability/tourism-2023-imagines-future-vacations
Predictions
Charles Goddard, Asia Pacific Editorial Director, Economist Intelligence
Unit, speaking at the ALTM Ultratravel Forum, said that China, despite
the crisis, and because of economic stimulus packages, had continued to
grow in the last 18 months by between 8% and 9%. This shift would be
even more dramatic if China became more consumption driven as opposed
to export led, and this was beginning to happen.
Asia was the growth market par-excellence with 50% of global
consumption being centred in the region in the next 4-5 years. An explosion
in travel would be an offshoot of this phenomenon, he said.
Source: Travel Daily News Bullish growth for inbound and outbound travel in Asia Pacific and China, June 2010
http://www.traveldailynews.com/pages/show_page/37535-Bullish-growth-for-inbound-and-outbound-travel-in-Asia-Pacific-and-China
Future of Travel and Tourism
1. Keeping it local. If trends in energy, economy, and environment continue, then
traveling long distances for recreation will become more rare. In order for the resort
community to maintain a market, they will need to cater more to a local clientele. This
is captured in the concept of the 10-kilometer hotel, one whose prime customers
come from the local area for a respite.
2. Alternative transport. In 2009 a newspaper in Seattle featured a photo of a local
organic farmer delivering his wares via sailboat to the docks in Seattle. He calls it the
no-oil food. In the travel and tourism industry this kind of move will be and is being
mirrored as people seek out non-motorized experiences like biking through France, or
taking trips by sail. Over the longer term, again depending on how energy,
environment, and economic trends play out, it is likely that tourists will seek out
slower, less energy intensive, even zero-fossil fuel energy experiences.
Source: Futurist Future of Travel and Tourism ,by Glen Hiemstra on 01/07/09
http://www.futurist.com/2009/07/01/future-of-travel-and-tourism/
Future of Travel and Tourism
3. Destination evolution. This trend is underway, as destination resorts focus on
becoming greener and more sustainable, more local in their attraction, more astute in
their use of information technology for advertising and for management, and more
knowledgeable of market trends via research.
4. New whys of travel. It is said that there is graffiti from ancient tourists on the
monuments in Egypt. People have always and will always travel to see new places
and people, even if they have to walk or ride an animal to do so. That is not going to
change. But, one more time depending on how the converging trends play out, we
may see a return to the why of travel being for two primary purposes to visit family,
and to seek new adventure. Business travel may decline as 3D-net technologies
become robust, and distance travel may decline as economic and environmental
imperatives demand. Local travel may fill the need for reconnecting with yourself and
recharging the batteries. In fact making that a focus of what you offer in the travel and
tourism industry may be one key to the future.
18% - USA
Trends
Concierge services are set to make a
rise across the mid market travel
sector according to Euromonitor
International, who released their
results for the 2010 global travel
trends at the World Travel Market in
November 2009
Kuoni are one company set to offer
customers concierge options. Andrea
Mueller, Communications Manager for
Kuoni said; "Today people are
overwhelmed by information on travel
and tourism services and need more
guidance. Concierge services will play
and important role in helping them
make intelligent choices based on their
individual needs".
Source: World Travel Guide, November 2009
http://www.worldtravelguide.net/news/3551/news/Global-travel-trends-2010.html
Simple Identity
The Global Financial Crisis (GFC) plummeted the value of the High Net Worth
population by US $32.8 trillion or 19.5% according to the World Wealth Report (2009)
published by CapGemini and Merrill Lynch, so the rich are less rich.
Writing in the Harvard Business Review, Paul Flatters and Michael Wilmott argue that
in most developed economies pre GFC, that the precession consumer behaviour was
the product of 15 years of uninterrupted prosperity, driven by growth in real levels of
disposal incomes, low inflation, stable employment and booming property prices.
As such, new consumer appetites emerged in which the consumer could afford to be
curious about gadgets and technology, in which tourists shelled out for enriching and
fun experiences on exotic locations. Where they could afford several holidays a year
and rent premium experiences such as hiring a Ferrari for the weekend in exotic
locations like Japan.
The GFC changed that, propelling tourist trends into slowdown, halting or even
reserving the trajectory of growth in world tourism.
Source: Tomorrows Tourist Simple Identity, 2009
http://www.tomorrowstourist.com/simple_identity.php
Simple Identity
So, is this a sample of the future, an era of the pension crisis, scarcity of oil, inflation
and falling levels of disposal income in which tourism expenditure falls year on year?
If so, what will the future tourist look like? Rather than having a fluid identity it will be
more akin to simplicity.
During an economic slowdown, tourists tend to travel less, stay nearer home
(increase in domestic tourism) and seek simplicity such
as exploreworldwide.com value based holidays focusing on basic facilities, meeting
locals, lots of free time and cheap in exotic locations throughout the world. This trend
is accelerated in a scenario of falling incomes as a simple and functional product that
will suffice. A simple identity means that offering advice becomes extremely
important, whether its website's farecast.coms ,which advises travellers of the
optimal time to purchase an airline ticket or price comparison technologies which are
found on many online booking services.
Source: PhocusWright cited by Travel Weekly China, India will lead region's online bookings boom January 2010
http://www.travelweekly.com/article3_ektid209470.aspx
China Consumer Report
By the year 2020, China will have a population of more than 1.4 billion people that will
make up a significant portion in the world's consumer market.
The annual disposable income of Chinese consumers is forecasted to increase to
65.4 billion Yuan (US$9.57 billion) by 2020 compared with 15 billion Yuan (US$2.19)
in 2008.
The National Bureau of Statistics of China announced that the country would be
considered a moderately affluent society by 2020, if development trends since the
year 2000 continue. The estimate was made taking into account progress in the fields
of the economy, social harmony, quality of life, democracy and law enforcement,
culture and education, as well as resources and the environment.
Zheng Xinli, Vice-Minister of the Communist Party's central policy research office,
said that taking price changes into account, 55% of the population will be middle
class by 2020, with 78% of city dwellers and 30% of those in rural areas reaching that
status.
Middle class is currently defined as having an annual household income of between
RMB60,000 (US$8,700) and RMB200,000 (US$29,215). In 2008 prices, the annual
disposable income per household will be RMB98,956 (US$14,900) in 2020.
Source: Euromonitor 2009 http://www.euromonitor.com/Chinese_consumers_in_2020_A_look_into_the_future
China and India Entering Era of
Travel
Dun Jidong, spokesman for the China Travel Service notes that GDP per capita has
hit $3,000 in China, a level that industry experts agree sends a signal that the
country is entering a stage of explosive growth in travel consumption. (1)
Share of population with incomes between $6,000 and $30,000 (PPP terms) (2)
Source: The Institution of Engineering and Technology, July 6th 2009 http://www.nytimes.com/2009/06/14/magazine/14searchgrimshawside-
t.html
The Intelligent Networked Airport
Zinwave application
A long-range passive RFID sensing scheme is novel and technically difficult.
However, Sithamparanathan Sabesan, Michael Crisp, Richard Penty and Ian White at
the University of Cambridges department of engineering, have found a way to reduce
the fading and improve the accuracy of RSSI techniques, using an optimised Zinwave
radio-over-fibre hub with multiple antennas.
The first challenge was getting the range up to 20m. The second, which were still
working on, is the resolution at that range. Weve got the location accuracy down to
around 2m, but wed like to do better, said Professor White, head of photonics
research in the electrical division of the department of engineering at Cambridge.
Tracking every single passenger anywhere in the building all the time may not be
feasible with passive RFID tags. But the technology could indicate if a passenger has
moved from one space to another, maybe from a lounge to a bar, which is enough to
target a message to a nearby display, page them, or send someone to find them.
Source: The Institution of Engineering and Technology, July 6th 2009 http://www.nytimes.com/2009/06/14/magazine/14searchgrimshawside-
t.html
The Intelligent Networked Airport
Network architecture specifications
The basic TINA network architecture is being designed to support a terminal with
typically 1,000 fixed and 500 mobile video cameras (demanding 10Gbit/s of
bandwidth); 500 displays (10Gbit/s); 500 biometric scanners (10Gbit/s); private and
public fixed and wireless LAN (20Gbit/s); cellular services (10Gbit/s); TETRA and
private radio (500Mbit/s); as well as passive RFID (300Gbit/s) and active RFID
(5Gbit/s). These figures, which include projections for future demand, are based on
input from BAA and other companies involved with the network installations in
Heathrow Terminals 4 and 5.
The software tool can model and simulate passenger flow, radio propagation delays,
optimum antenna position, and bandwidth requirements to give a top-down picture of
how the network might perform under various circumstances.
In this way, designers can better understand how the flow of people in indoor spaces,
traffic demands and energy consumption constraints might influence different
architectures.
Source: Associated Content: Is there a future after peak oil? May 2010
http://www.associatedcontent.com/article/3018604/aviation_after_peak_oil_is_there_a.html?cat=15
Weight Reduction a Core Priority
Future Scenarios for the
European Airline Industry (2015)
Source: Leipzig Graduate School of Management: Center for Scenario Planning Future Scenarios for the European Airline
Industry. 2010
Future Scenarios for the
European Airline Industry (2015)
Network Fortress describes a future, in which the European network carriers
have regained a strong competitive position in both the long-haul and the
intra-European market. The recession of 2008 and 2009 was followed by a
quick economic recovery, which increased corporate travel budgets again in
2012. In turn, the demand for low-cost travel stagnated in favor of high
quality and convenient travel, which led to growth in the more profitable
business and first class segments. The growing long-haul market
connecting Europe with the booming ASEAN region and China is dominated
by European airlines, which can operate from a largely protected European
market to which competition from Asia and the Middle East had only limited
access to due to restrictive traffic rights legislation.
Source: Leipzig Graduate School of Management: Center for Scenario Planning Future Scenarios for the European Airline Industry.
2010
Future Scenarios for the
European Airline Industry (2015)
Europe under Siege describes a world in which Asian and Middle Eastern
competitors dominate the future of European network carriers. Despite
growing business travel based on solid economic growth in Europe, the
industry faces severe competition, also in its home market. However, low-
cost carrier have not been able to continue their growth seen in the first
decade of the new millennium as customers became increasingly aware of
the total cost of flying low-cost. "New World", a new alliance by Middle
Eastern and Asian airlines was formed in 2012 focusing on capturing the
growing demand for high quality air travel around the world. The alliance
also partners with a major European airline to gain easier access to the
attractive European market. With their new fleet and superior service
offering, the alliance has quickly gained market share and is expected to
continue its growth.
Source: Leipzig Graduate School of Management: Center for Scenario Planning Future Scenarios for the European Airline Industry.
2010
Future Scenarios for the
European Airline Industry (2015)
Decline of Champions describes a world that is characterized by declining
European network carriers struggling to survive the intense local and global
competition. While Europe and the United States of America are again in
the middle of an economic crisis, Asia is flourishing. The recession in the
western world has led to a shift in the mindsets of business and private
customers towards a strong price orientation. European network carriers
therefore are under heavy pressure from both European low-cost rivals and
strong Asian and Middle Eastern competitors on long-haul routes. These
companies have grown significantly in recent years due to favorable cost
position, innovative product and high client recognition.
Source: Leipzig Graduate School of Management: Center for Scenario Planning Future Scenarios for the European Airline Industry.
2010
Future Scenarios for the
European Airline Industry (2015)
New Horizons refers to a world in which Europe is still struggling with the
aftermaths of the financial crisis, which originated in 2008 and 2009. Thus,
business travel has been cut to a minimum as companies face severe cost
pressure. In addition, an increasing market share of this shrinking segment
is captured by low-cost airlines. While Europe is still faced with the
aftermaths of an economic crisis, the ASEAN region together with China
has developed into the most vibrant business area worldwide, which has
increased the demand for long-haul flights to and from Asia tremendously
over the last 5 years. These traffic flows are dominated by European
carriers, which benefit from political protection of the sector in Europe and a
growing customer sentiment to buy 'European'.
Source: Leipzig Graduate School of Management: Center for Scenario Planning Future Scenarios for the European Airline Industry.
2010
Cost Comparison of Carriers
Source: Leipzig Graduate School of Management: Center for Scenario Planning Future Scenarios for the European Airline Industry.
2010
Future Scenarios for European
Airline Industry
Source: Leipzig Graduate School of Management: Center for Scenario Planning Future Scenarios for the European Airline Industry.
2010
Scenario: Network Fortress
Source: Leipzig Graduate School of Management: Center for Scenario Planning Future Scenarios for the European Airline Industry.
2010
Scenario: Europe Under Siege
Source: Leipzig Graduate School of Management: Center for Scenario Planning Future Scenarios for the European Airline Industry.
2010
Scenario: Decline of Champions
Source: Leipzig Graduate School of Management: Center for Scenario Planning Future Scenarios for the European Airline Industry.
2010
Scenario: New Horizons
Source: Leipzig Graduate School of Management: Center for Scenario Planning Future Scenarios for the European Airline Industry.
2010
Impact/Uncertainty Grid for
European Airlines
Source: Leipzig Graduate School of Management: Center for Scenario Planning Future Scenarios for the European Airline Industry.
2010
Training Needs
Boeing predicts that nearly half-a-million new pilots and almost 600,000 in
support-staff will need to be trained by 2030 years to accommodate higher
travel demand up from about 233,000 pilots and 100,000
mechanics/engineers who are currently employed by airlines worldwide.
About 40 percent of this increased demand will come from the Asia-Pacific
region. China alone will need 70,600 new pilots over the next 20 years.
Boeing also forecast that on the whole airlines will buy 30,900 aircraft
valued at $3.6 trillion between 2010 and 2029, with more than two-thirds of
that demand for smaller single-aisle jets such as Boeing's 737 and Airbus'
A320.
Source: Henley Centre Headlight Vision Managing the environmental challenges of growth in aviation Draft report of stakeholder
event, Cambridge October 2006
Potential Emerging Risks
Technology risks: Much of the technology which the industry has developed,
but which is not yet in the market, involves incremental improvement rather
than a step change in performance.
However, if governments take more stringent action on climate change
targets, that could involve reductions in emissions of 60% or more between
now and 2050.
The risk is that the type of technology needed to achieve such reductions
while maintaining substantial aviation volumes would be disruptive rather
than incremental. It is not clear if the industry has a model of how it would
adapt to a radically different environmental policy framework.
Source: Henley Centre Headlight Vision Managing the environmental challenges of growth in aviation Draft report of stakeholder
event, Cambridge October 2006
Potential Emerging Risks
Demand management: Similar issues may push governments towards
imposing demand management on airlines, or influencing demand, to
restrict usage. Some of these may also affect scheduling and flight
operations. Again, there appears to be little understanding of how such a
change in approach may affect industry structures and systems.
Capacity issues: Technical capacity issues, such as runway capacity
and air traffic management capability, were reviewed and are captured
above. However, capacity could get restricted through shifting public
attitudes towards the social impact of airports. It is a commonplace of the
urban economics literature that one of the main limits to economic growth is
the ability of public infrastructure to support it (Cambridge is a good
example). Capacity issues may result from social limits as well as technical
limits to supply.
Source: Henley Centre Headlight Vision Managing the environmental challenges of growth in aviation Draft report of stakeholder
event, Cambridge October 2006
Potential Emerging Risks
Business model: In two of the scenarios, demand for aviation fell. In
most industries, this would most likely lead some players to exit the
industry. The regulatory structure of the aviation industry makes this option
difficult or all but impossible. This instead encourages economic
competition between airlines which is environmentally damaging, e.g.
pricing in favour of interlining via environmentally inefficient locations. But
little air system and airline planning appears to be about how to manage
environmental aspects of the business in a growing, static or even shrinking
market, or the impacts of this on current regulation.
Climate change: A number of participants observed that some of the
more complex impacts of aviation on climate change were poorly
understood. While this is true, and is an appropriate subject for knowledge
transfer, it is also the case that the industry is extremely unlikely to make an
error if it presses as hard as possible to reduce CO2 and NOx as early as
possible.
Source: Henley Centre Headlight Vision Managing the environmental challenges of growth in aviation Draft report of stakeholder
event, Cambridge October 2006
Potential Emerging Risks
Attitudinal shift: As was observed, the Restoration scenario requires
that there is a significant shift in social and public values about the
environment. There were competing views as to the likelihood of this.
However, there have been significant shifts in the UK, and elsewhere, in
each of the last three decades: around smoking in the 1980s; around road
use and road development in the 1990s; and around obesity in the current
decade. In each case, the shift was driven by a combination of NGO
pressure, changing regulatory views (partly driven by changing perceptions
of public cost), and a shift in social perception. In each case, the shift also
involved a change in the way individual choice and consumer choice were
perceived. There are risks for the aviation sector associated with how an
equivalent debate in relation to the environmental impacts of aviation are
perceived, weighed and resolved in society.
Source: Henley Centre Headlight Vision Managing the environmental challenges of growth in aviation Draft report of stakeholder
event, Cambridge October 2006
Biofuels: How Much Would we
Need to Grow to Power Aviation?
Sq km 3,500,000 3,287,590
3,000,000
2,700,000
2,500,000
2,000,000
2,000,000
1,500,000
1,000,000 809,000
500,000 380,000
68,000 70,000
0
Algae Ireland Montana World Camelina Jatropha India
Annual
Corn Crop
Augmented Fully
Reality Mapped
Personal
Genome
Memory
Capture / Body Area
Enhancement Network
Travel Technology
Japanese healthcare specialist Tanita is using
RFID on a common pedometer.
The device is designed to be worn on a
waistband.
Instead of just giving a readout of distance
traveled and calories burned, the device
shoots the data off to a nearby RFID travel
card.
Once home, the data can be synced with a
PC and uploaded to the companys Karada
Karute (Body Card) website, where ongoing
progress can be monitored.
Although Tanitas system currently works only
in Japan, the possibility of taking the
combined healthcare and travel card global is
clear.
Luxury?
Convenience?
Choice?
Inspiration?
Price?
Integrated Travel Solutions
Reinventing Formats
Chain vs. Independent
Store and Product Locators
Personalisation
Dynamic Billboards
Holographic Displays
Ambient (Embedded) Technologies
(IP in Everything)
Reaching into Retail
Reaching into Retail: Changi
In March 2010, CAG launched Changi Rewards: a programme that rewards
shoppers for spending at Changi, providing them with even more reason to
shop and dine there.
In April 2010, CAG launched Lets Do Lunch a two-month dining
promotion at the public areas of Changi, targeted at local residents and
those who work near the airport. Under this promotion, 22 dining
establishments offered enticing weekday set lunches at an attractive rate of
just S$10.
In May 2010, GST-absorbed shopping was extended to the public areas of
all terminals at Changi (from just Terminal 3) under the Flying or Not, You
Shop We Absorb programme, with about 90% of the stores at the public
areas absorbing GST on all purchases.
In June 2010, CAG launched the Be a Changi Millionaire shopping
promotion, which saw one lucky patron walking away with the grand prize
of S$1 million at the end of the six-month campaign in January 2011.
Source: Future Airport.com, March 2011 http://www.futureairport.com/articles/025_mar2011/FAI025_qa-changi.pdf
Future of Retail ?
Future of Retail
By Brett Proud, GuestLogix
The new in-flight retail environment will be distinguished not by the reselling
of once-included products and services, but rather by embracing and
extending the relationship between airline and passenger. It will be marked
by accurate assessments of consumer needs and wants and by the
fulfillment of these at any (and every) touch point of the journey. It will be
defined by customer experience and framed by retail-informed strategies of
merchandising and product mix.
Creating and promoting a successful customer relationship may be second
nature for ground-bound retailers but for airlines it means re-conceptualising
the passenger.
While the unbundled airfare relies on presenting fee-or-no-fee options to
passengers for basic, almost compulsory, products and services a
checked bag, a seat assignment the new approach to in-flight retail puts
the emphasis on the passenger.
Source: Travel Tourism Middle East, June 2011 http://www.ttnworldwide.com/GeneralNews.aspx?artid=10521
Future of Retail
Within the onboard store, virtual shelves replace physical shelves with
great effect. Products are offered based on predetermined tastes and
preferences, flight duration and destination. A brand can be established and
extended through interaction with this onboard store much as it has for
most of the retail success stories in the past decade. But in a controlled Wi-
Fi-enabled environment or through the use of smart wireless point-of-sale
devices, passengers can explore the onboard store from the comfort of their
seat as well as interact with in-flight entertainment systems through their
own personal electronic devices.
Airlines also have information on their passengers demographics, itinerary
and immediate purpose (i.e business or leisure) readily
available. Traditional retailers would have to spend countless weeks
collecting data and probably paying market analysts to interpret it to get
the sort of valuable information airlines have at their fingertips. Utilising this
data to develop a compelling retail experience is central to the onboard
store approach and bound to become industry standard very soon.
Source: Travel Tourism Middle East, June 2011 http://www.ttnworldwide.com/GeneralNews.aspx?artid=10521
Online Brands Appearing Offline
Google
The worlds first Google store, The Chromezone, had a low-key opening in
London, England inside a branch of PC World on Tottenham Court Road.
The temporary 285 square-foot store will be there until Christmas, selling
Googles Chromebook laptop and a range of accessories. Another pop-up
store will open in Essex and more around the world in the coming months. If
this experiment is successful then Google could follow its rival Apple in
opening a large number of permanent stores. [1]
eBay
eBay has teamed up with designer Jonathan Adler to launch a shoppable
storefront in New York City.
The storefront features various products chosen by top trendsetters who
were asked to compile their fall shopping wishlists. Items are accompanied
with QR codes, which shoppers scan using the eBay app. Scanning a code
brings the user to a buy page in the app. [2]
In a trial run Tesco's South Korean supermarket chain Home Plus has
plastered a subway station with facsimiles of groceries, labelled with a
unique QR code for each product.
As commuters pass by on their way to work, they can use a mobile-phone
app to take pictures of the products they want, then check out. The
groceries are automatically delivered to their doorstep by the end of the
work day.
The virtual grocery store has been a hit among more 10,000 customers,
with Home Plus reporting a 130 percent increase in online sales.