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Explore the future of travel, including global trends in technology, demographics, and 3D printing, with a focus on Emirates' impact on the aviation industry. Discover the potential for growth and innovation in the travel industry.
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(Dreaming about) The Future of Travel Bob Kabli VP E-Commerce & Mobile Emirates Airline 9th October 2014
Agenda • Introduction • Future Trends: Global • Emirates & the aviation industry • Future Trends: Travel • Summary
Section 1: Introduction
About me • Born and raised in London • An airline family…. • Joined BA in 1998 • Joined Emirates to set up Strategic Pricing in 2003 • Moved to E-Commerce role in 2011 • 11 years in sunny Dubai • 3 small children, hectic but fun • Football career over, golf career about to start
Section 2: Future Trends - Global
Section 2: Future Trends - Global • Technology • Demographics & Age • Data & Personalisation • Contextual/relevant/intelligent • Machine learning/Target • Robotics & 3D Printing • Over half Google’s last acquisitions have been robotics
Technology (1) • Where are online consumers of the future? • Asia is > than combined Europe, Americas & ME • And online doesn’t only mean computers….
Technology (2) • The human brain can hold approx. 5 TB of data, the internet has 5 million TB • Google has indexed less that 0.05% of the internet. • To reach 50 million users: • Radio: 38 years • TV : 13 years • Internet: 5 years • Today, 69% of children aged 2 to 5 can use a mouse but only 11% can tie their shoelaces
Technology (3) • Who are the global ‘electronic’ commerce leaders? • : bigger cash balance than US Gov. • : e-books outsell paper and hard backs • : now sell more fixed than auction goods • : mktvalue > P&G on NYSE; 279 mn active users • : shipped > products than Amazon or Ebay? • What has Bob bought online? • Music • Clothes • Greeting Cards • Pizza • Barbie Playhouse
Technology (4) The Multi Screen World • Meet Alysha • It’s now all about the online ECOSYSTEM
Demographics / Age • Millennial’s and Gen X/Y/Z is all good but…. • People are living longer • Seems like everyone is forgetting the above
Global trends - recap • Unprecedented growth in digital activity - across all ages, nationalities, gender etc – the internet is a great leveller • Data – hyper analytical • Divergence of devices – tablets, smartphones, laptops, netbooks, watches, glasses • Convergence of needs – seamless & personalized access across the online world • We need to identify what matters, ignore what doesn’t
Section 3: Emirates and the aviation industry
Airline Industry – Past Flows • Global Traffic Streams in the 80’s • European & US carriers dominated global air traffic
Airline Industry – Present Flows • Global Traffic Streams are changing, fast….. • Asian & Middle Eastern carriers entering the markets and shift the traffic via new hubs
Airline Industry - Diversifying • Air travel is becoming more geographically diverse….
Airline Industry – The Future • 5.5 billion people live within 8 flight hours of Dubai • Growing to 7.8 billion in 2030 • Emirates is right in the middle of the future! China Europe Middle East Africa South Asia Asia Pacific
Emirates – Stat Attack Maximisation of network profit • 140 destinations in 6 continents • All Emirates aircraft are wide body: 220+ seats • Flights range from 40mins to 17 hours in duration • 17 flights a day non-stop to the UK • LHR – 5 A380’s daily (14/76/427 seats on each) • 54 A380s currently in operation • Strong focus on Africa, 22 destinations • Nearly all destinations served daily, year round • Truly global
Emirates – The Future (Vision) Maximisation of network profit • 200+ aircraft still on order including 50+ more A380’s • So the focus must be on growth, growth, growth • But must maintain the business model (cost, efficiency, hub) • Continue to recruit high calibre individuals • Continue to emphasise on brand and product • Ensure scalability of our hub - terminal, service etc • Don’t underestimate competition or new business models
Emirates – The Future (Dubai Airport) • The hub is critical • The world’s single largest terminal dedicated to only 1 airline • Current capacity 75 million passengers/year(LHR=69million) • Concourse 3 opened 01 Jan 13, exclusively for Emirates and worlds first dedicated A380 concourse – 20 stands • New airport (DWC) now open • The future of airports, a full topic by itself! Concourse 1 Concourse 2
Emirates – The Future (Potential) • 5.5 billion people within 8 hours of Dubai (7.8 bn in 2030) • 6.3 billion people within 16 hours of Dubai (8.2 bn in 2030) • How much potential is out there? • Sounds crazy? Or does it?
Today’s travel landscape This entire environment did not even exist 20 years ago, what does that mean for 2030?
What keeps Bob up at night This entire environment did not exist 20 years ago either!
Section 4: Future Trends - Travel
Overview • The internet has changed the aviation industry • Direct Booking • Self Service – e-tickets / mobile boarding passes • On Board Wi-fi • Identification/Security for fast track at airport • What next? • We are not thinking airline - we think travel • Mobile – will it change the world?
1. New Business Models • Rent, Share, Subscribe • Can the airline industry learn/adapt from the above?
2. Modes of transport • Air: • Long-haul low cost • Stand up travel • No Pilots / Self Drive • Airships • Trains • Little Red R.I.P • Hyper-loop • Teleportation
4. The Travel Ecosystem • How can we harness the travel ecosystem? • Emirates Suitcases: no-lose guarantee • Google Glass – gimmick…or not?
5. Community travel • Fully immersive - VR • Experience Emirates without flying • Travel / Organic Groups • for what you want • with who you went • all pay how you want • all add extras as you want • Predictive/Anticipatory offers
Section 5: Summary
Summary • Harder to innovate/change when you are already successful • But has to be done • Incremental vs. transformational innovation • Keep anticipating or you will get run over….. • Any industry – Kodak, Nokia, Blockbuster, Yahoo • Cross ‘industry’ – Disney Cruises, Samsung Kitchens, Amazon Grocery • Left Field – Dyson Fan, iPad, The Palm, Netflix, Spotify • Travel: Facebook, Apple, Amazon, Tesco, Google?
Thank you bob.kabli@emirates.com