Q&A with TUI UK head of new media Graham Donoghue

In the second in a regular TravelMole series, TUI UK head of new media Graham Donoghue, answers questions posed by Linda Fox

Q: A web expert recently told Travelmole that 95% of travel websites were ‘atrocious’ – do you agree?

A: 95% sounds incredibly high and it varies massively by product. At TUI we find it difficult because we sell pretty much anything from car-hire and flight-only to mobile homes. The bigger the range the harder it is to design a website with your granny in mind. Companies may start having websites, which ask if you have used them before or, if you are an advanced user. The older age group is the fastest growing online but there is still a big digital divide. Some companies have created online laboratories to let customers test-drive everything and that is what more travel organisations should do. The key to all of this is to involve your customers because you become blinded by these things.

Q: How will Web 2.0 affect the travel industry?

A:  The term is a bit of marketing spin. It’s about having a benchmark and separating out old companies from new media companies that are innovative, using social computing and very agile. Web 2.0 is about principles and will help travel in that it is creating a plethora of organisations focusing on those principles. It’s about new applications and things that are easy to plug in but it’s also a think-tank and about creating a discussion about wanting to do things better and improve the customer experience.

Q: There has been much discussion recently about traditional travel companies versus new entrants – which way do you see the sector going?

A: There is room for a lot of people in the market but unfortunately it has become impossible for smaller players to make a credible mark. I don’t think direct players are going to take over but we are seeing a balancing and catching up with the traditional players getting better and that is slowing the growth of the intermediaries. It’s a stabilisation and we are going to see consolidation. Intermediaries will start to focus more on what they are good at and even specialise. We’re going to continue to grow at a faster pace because of our size than the intermediaries and because they have had little competition for a few years. They have grown through acquisition and through throwing money at marketing. Anything that makes people go on holiday and go online is a good thing but there are not many ideas left that are going to get the word of mouth euphoria so you need to have a good product, know how to market and have the budget to market.

Q: What has made consumers go from buying books and CDs online to spending thousands on holidays in such a short time?

A: Confidence – and technology has changed a lot in the past year. Broadband has helped because it has changed the user experience. There is an appetite to learn and research and become the expert. It has happened as a chain. People started with a CD or book and have migrated to a long-haul holiday. The trust factor barriers are starting to break down particularly for big brands. Price has helped as well because some organisations are reflecting the ease of use and the lower cost of distribution by offering great deals. There is also the empowerment thing – you are not relying on the travel consultant. People are spending hours each day online or using e-mail and there is a whole generation of people that don’t know anything other than the internet.

Q: Where is it all going with pod-casts and mobile technology?

A: There is an insatiable appetite for people to get information and consume it in various ways. There are more and more organisations that provide information on every device for consumers to digest in their own time and in their own space. It’s very powerful and is driven by consumers. For example, there is a site called www.youtube.com with little voyeuristic videos of people broadcasting themselves and you would think it could never be mass market but some of the clips get millions of viewers. There is going to be much closer interaction of all the devices. You could search for a flight to Kuala Lumpur on the web then the tourist board could send a video clip to your mobile phone or PSP which could include advertisements, relevant to your trip, for excursions, car-rental or accommodation.

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