31.08.2008 IT

Data Security

“Our Heads Are Round so our Thoughts Can Change Direction” [Francis Picabia]

Best Western hit the media this week being reported to have been hacked and 8 million customer datasets being stolen. Best Western objected the news, mentioning they have no proof for such hack and they would delete their data anyway frequently.

Say WHAT? Corporations spend millions acquiring customer data and Best Western deletes them? Hmmm…

No matter, if this has been a newspaper hoax, there is something good in this. Who knows today, where data is collected, how it is stored, kept secure, who has access to it? How “secure” is “secure”? The Internet by definition is insecure. An old – even pre-WWW saying in IT: To have a secure system, remove all input… If a user in old DOS entered “format c: /u” the drive was formated irreversably. Oops, I forgot to backup that file? Too late. In my 2007 ASRA-presentation on Airline Sales & e-Commerce, my friends in ASRA joked that I would be paranoid… Today they know better, thanks to media coverage of data insecurities. I get increasing inquiries.
Most large corporates have a faulty and flawed security. Most even do not use encrypted communication with the most sensitive data they send through the web. Discussions on LinkedIn confirm the U.S. Department of Homeland Security to pick Laptops. Where does the data on them end up? Maybe your U.S. competitor has access to it?

But now we talk about personal profiles. Where is what data stored electronically about you? Have “they” told you they store the data beyond the immediate transaction? No. We only learn by security breaches becoming public that such behavior is not the exception but the rule. And thanks to the global networked world we live in, data is no longer limited to “my hotel”, “my supermarket”, “my anything”. But the hotel reports some or all of the data to the central server somewhere. Next you arrive in another city, they do have your address data on file. Hmmm… What else do they have???

And then we come to the new laws in the U.S., Germany and sure elsewhere, legally forcing providers to collect data and make it available to their government representatives. Said what? What is a “government representative”? Do I trust him or her? Not the government – I don’t trust “government”. But worse, “the representative”. Who controls the controller?

So sorry for the bad publicity Best Western, but thank you for another example to make people aware and think about their personal information. Did you ever read 1984? George Orwell did not even imagine what exists today!

Shift happens! Internet meet World. World meet Internet…

23.08.2008 Aviation, Sales, Values

General Sales Agents

This week I addressed the issue of General Sales Agents (GSA).

In general, the GSA is a very good idea. If you cannot afford your own staff, why not share with other companies just as yours? There are two major hurdles:

1. In many cases, the GSA is considered a “second class employee”, as they only spend a part of their time on your product. My recommendation: Have the key people (reservations, sales) invited within four weeks to your location to get familiar with your product, philosophy and work style. Have them meet the decision makers personally they need to have contact to. This will not only motivate them, but also make them truly represent you in their respective markets. Repeat this frequently. Your GSA sales representative(s) usually should be invited to attend your sales meetings. I have seen results by thus motivated staff, that exceeded the results of an entire airline office in another market. And listen to them. Their prime interest is (or should be) to increase your revenue and make your product sales stable.

2. In other cases, GSAs work on a “minimized effort” scheme. Instead of sharing the resources properly, they try to tweak the last dollar out of you, until you recognize they just drain you. Ensure to have an as close contact to their sales teams as you have to your own. Ensure to have a clear manpower commitment. It is reasonable for a GSA sales person to have three or four, either similar or complementing products. I have seen cases where one person was asked to fully represent six or more products.
That might work, if the products are complementary, but that is not the common case.
Assure to have your GSA benefit fair from all sales in their region. In that case they are interested to support you to spread your distribution channels. Otherwise they will try to keep all dropping through their office, limiting the market awareness.

So GSA can be a very good thing, there are many very good and motivated GSAs out there working 150% in their client’s interests. But ensure that the principal and the GSA work on the same goals. Set targets. Find a GSA that has experience in your market. Not only the branch, but also the global region. Ethics, work style, etc. do differ.

The GSA is not a panacea. They need reasonable funding. But usually, you can pay them a base fee covering their normal operations, with marketing funds depending on the revenue they generate. But check what interest they have to sell you!

If you have questions or wish to select a GSA in Europe, ask me. And if you want to build your team and seek experts for sales, business development, reservations, etc., let me know, there are some good out there seeking a decent job 😀

17.08.2008 Russia

Tourism in/to Russia

Thanks to last weeks blog and the war-situation between Russia and Georgia, this week, I had a rather emotional and some more reasoned discussions about the Russian Tourism Market. There are many obstacles that were addressed, but I found only very few being valid.

» Understanding travel as an economic factor. According to Wikipedia, travel is one of the top three economic factors world wide. Easing (leisure) travel to and from a country is a cash cow for the country.

» Infrastructure. People travel everywhere, they are found in the middle of the Amazonas. It cannot really be the infrastructure. Only if there is justification by people traveling somewhere, infrastructures are building themselves. Funny, the people who traveled there for the “untouched nature” then are replaced by the masses expecting the bus to take them somewhere to watch “untouched nature”. People breaking their bones for taking the cable car up into the mountains walking there with inadequate footwear!

» Language. I love doing my vacation in Spain, but my Spanish is rudimentary at best. But I learn enough to get around. People go to Greece and cannot read Greek either, less understand it.
Where language is a limiting factor is when Russians want to address another market. There are flights from Frankfurt to Saratov (14th largest Russian city!) and you can purchase tickets only at the airport…?
It is important to understand that as much as we ourselves may ponder reservations about Russia, the Russians ponder reservations about us. It”s important to overcome such reservations, but that only works with trust, not by overpowering it!

» Technology. The Internet made it”s way to Russia. For students, Internet is quite “normal”. The (commercial) e-Commerce still is sometimes very badly addressed. There is quite some potential there! But keep in mind these vast distances!

» Visa. The requirements for visa are counter-productive to any country, but other countries require visa too and they prosper. I just hope that Russia lowers visa-bureaucracy.

Other issues:
I was very much concerned hearing that virtually all mail is opened, I admit, I was not used to that in the “western hemisphere” and it strikes me very “old-fashined”, reminding me of the times of a cold war. But (except maybe for George Bush) that is history and it is difficult to overcome old habbits. Like myself. Forced to look into the Russian market I found many images in my head being simply wrong and outdated. I watch recent TV travel reports about Russia, seeing the wrong, outdated image they show. But all truths I learn impress me. There is another “tiger”-industry waking up.

We all know that the U.S. “land of the free” is only the land of the “adjusted”. Black”s to date are second class citizens, slums exist in every township there, there is Guantanamo and the Homeland Security under the cloak of “war against terrorism” adds more eavesdropping daily. Germany, “partner” in that “war against terrorism” (and approach towards a totally controlled society) is strangled by commercial lobbies. If that is the “good”, I must admit, I prefer Putin”s way to keep the oligarchs and the commerce strictly out of government. Freely quoted from Wikipedia: Do what you want, but don”t interfere with the politics.

Then a German feedback claimed Siberia as “fallen behind”. If I go just 30 km”s out of Leipzig, there are ghost towns. Visit Halle or other small cities in East Germany. Did the luxury of “civilization” equalize these areas with the West German regions? Far far missed that goal! Leipzig, Dresden, Berlin are the main centers of commerce, as are Moscow and St. Petersburg. It takes time to build up infrastructure, but even in Saratov students enjoy modern PCs and Internet…

About the war, German ZDF-TV pointed out very correctly: It”s another powergame by America (namely Cowboy George Bush), trying to secure the pipeline (= oil = energy = power) bypassing Russia there. They position rockets in Poland. All very “friendly” gestures? For experts a Russian reaction was overdue. Again, this was the summary of a special report by renowned ZDF.

My summary about the many discussions on Russia last week.

Remember: This blog is called food for thought and I do like your feedback, it is your feedback that makes me post here!

10.08.2008 Hotel, Russia

Winners and Loosers

Russians outnumber German visitors in Antalya. Russians invest in TUI, Air Berlin, Öger Tours and other travel companies being “unsexy” to “traditional”, “Western” investors… Oh god, the Russians are coming…

Eyes on Russia… Lately (as usual: Thanks to a beautiful woman) I learn a lot about Russia. The image shown mostly on TV is misleading. That is an emerging country! Do not look at the old Russians. Look at the young generation, the students! Oh yes, they have a long way to go. But they prosper, figures show a clear trend.

A luxury hotel chain did a check recently, their receptions noting down, which age group visitors mostly belong to. The boom market China was a niche… Germans and British were +90% in the age group 60+, where the Russians were 90% in the age group -40. And they spend four to five times as much “aside” than the good old Europeans.

Shift happens. Are we ready for it?

05.08.2008 Low Cost

Low Cost 2009

Is low cost at its end? Lately Ryanair sued a German tour operator for combining Ryanair product with hotel, etc. for a travel package. Concern was posted, if that was an intelligent move, though I did reply that it was in line with O’Leary’s public known strategy.

But now Ryanair grounds aircraft, stating it would be more expensive to fly them. Just two years ago, talking about the need to turn around aircraft faster, O’Leary assaulted all other airlines, stating an aircraft needs to fly, time on the ground loosing the company”s money. 180° turn…

Ryan Air now tests “hand luggage only”. That’s a niche of the niche. With a body diameter of about 3,6m and no cargo hold, how about a “Mini-A380”-design with two levels, adding passenger capacity in what was the cargo hold? “Sub-Economy”? Who needs seats? I used the above image in this year”s ASRA-presentation, I didn”t know, how advanced my thinking was.

Now Ryanair reports an 85% drop in net results for the first quarter, a net loss of 60 Mio. Euro being a serious possibility. Just two weeks ago, I just mentioned the joke here about the guy purchasing the screws for 1 $/€, selling it for 99c. No Mr. O”Leary, selling your seats for 99c does not improve your revenue…

03.08.2008 Values

Banking Mafia

I don”t know if this is a specific German issue, but lately a lot of deals become public, where banks and analysts are found to abuse their power to increase the IPO-value of startups or systematic damaging of reputation and corporate value i.e. by publishing misleading information or cancelling given credits without cause, just to take over control of dependent companies. So Joachim Hunold now filing official protest against Dresdner Kleinwort is sure an overdue step. Even German national television (ARD) named that lately in a report “Mafia-methods”.

So with my respect: Good luck Mr. Hunold!