MS&L NYInsights from Top Influencers &

Reporters

10/28/09

Tim JarrellPublisher, Fodor’s Travel

Leisure travel will come back… and come back strong.

• This generation and the next will travel more and more globally. Going to China was once extraordinary, now it’s common.

• Major markets are opening up with an emerging middle class (Asia, Middle East) where travel infrastructure is developing. Hotels will continue to invest and airlines will continue expand.

Emirates is banking on an evolved traveler seeking a luxury experience.

• Emirates most likely going with the 700-800 A380, a new luxury long-haul plane with shower spas, private suites. Their choice of plane gives as much insight as anything else into who they are and what they value. 1 of 3 primary users – Singapore, Emirates, Qantas.

• Positioning themselves as a luxurious business travel experience. Using space a little differently – not packing people in – rather leveraging space to provide a luxury travel experience.

Make Dubai a destination in and of itself.• Dubai wants to crate a world-class city out of a sandbar. The

quality experience on the ground will start in the air. Consumers expect the same in the air as a 5 star hotel.

• Capitalize on the high-end audience who seek luxury and style.

• UAE Abu Dabi and Dubai are big cities and Etihad Air – competitor of sorts in the air and on the ground.

Tim Jarrell (cont’d)Publisher, Fodor’s Travel

Emirates has an interesting challenge … as it relates to their Arab status.

• It’s an Arab airline. Challenge that Dubai faces as well – paradoxical and contradictory – when does Islamic code kick in.

• Emirates recruits women from all over the Arab world. It’s an opportunity to see the world one foot in traditional world. Basically trying to take Emirates, particularly in the US, and counter US mixed views about Arab world.

• Check out the Etihad Air Article, also part of UAE, about airlines creating opps for Arab women.

The airlines are in a dog fight.• Airlines are in a difficult position …they’re still sorting

through points of differentiation.

• Open sky agreements will affect the industry. Airlines need to push to open up routes in this competitive landscape. Will allow large airlines to fly more places with less regulatory approval.

• Alliances are key as airlines are coalescing around the different teams with implications for players inside and outside team lines. Emirates appears to fall outside the line – no alliances.

Max DobensSVP, Prudential Douglas Elliman

Emirates is Vanilla … Good vanilla, but still vanilla• Was expecting Emirates to be an Arab equivalent of a premium

European airline, but it felt British and generic. The plane was new, but the flight experience itself wasn’t remarkable.

• Emirates should look not to be a commodity, but to offer something special to differentiate themselves from the competition who behave like commodities.

• For example, Virgin has fun and memorable offerings such as a bar area in 1st class so it felt like Old School travel. Also, in-flight massages and interesting activities in the lounge area.

Keep it premium, engaging and simple• Take real estate as an example… anyone can get a license to sell,

but the leaders have the ability to add value to the transaction.

• Technology can be enhanced – look to JetBlue as it’s simple, clear and engaging unlike SAS.

• Do something interesting with the Arsenal sponsorship… as simple as win a trip to London to catch a game. Use it to showcase how global they are especially in a World Cup year.

Max Dobens (cont’d)SVP, Prudential Douglas Elliman

Communicate in a social way • In addition to investing in upgrading the website, they should ask

customers how they prefer to engage with Emirates.

• Go beyond just email and phone and look to all forms of social media including Twitter, Facebook, LinkedIn, etc.

American Express is a world-class service brand• They epitomize service across the board because they always have your

back, you can choose how to pay, the website is easy to navigate and everything is at your fingertips.

• They constantly bring new ideas to the table whether it be travel promotions, new cards, new services, special membership rewards and so on.

Travel has gotten worse with impersonal service and nickel-and-diming

• The basic assumptions that people need to bring luggage when they travel and eat a meal on a flight are being ignored as airlines look to pad the bottom line.

• The seats are tighter and airlines are trying to squeeze more people in to cover their costs.

• It’s worth paying more for a premium airline experience – especially on family vacations when you don’t want to deal with the petty annoying stuff.

Justin BartonCEO Americas, Williams Lea

Having the opportunity to build from the ground up, Emirates lacks the legacy ‘baggage’ of other airlines

• Very high levels of investment, new aircraft fleet, money-no-object approach to building a credible business class service.

• Major commitment to advertising and branding (primarily in the UK) through association with soccer – first with Chelsea and now with Arsenal, the stadium, ref’s shirts, etc.

• Doesn’t associate Emirates with either low cost or being very green. They are professional and business oriented, but they don’t have a particularly attractive personality, like Virgin.

Need greater individualization of the travel experience itself.

• Quicker transit through airports (fast tracks): Luggage retrieval, faster passage thru customs. This is key as getting through the airport is often 30% of the time and the most stressful.

• Focus on business lounge – a well thought out and located lounge is a huge plus. It angers Lea that he can only sign in one guest so can’t use the lounge when traveling with his family.

Apple and Samsung are brands associated with quality and reliability.

• Apple: Modern, clean, well designed, leading edge.

• Samsung: Great example of a brand that has transformed itself from a dodgy cheap producer of mediocre products to being on par with, or even ahead of, Sony.

Michael EspindleEditorial Director,EliteTraveler

Consumers looking for short-term and spontaneous travel.

• Emerging trend with consumers traveling to destinations closer to home.

• The trend is now in charitable travel and reunion type of travel packages.

• Consumers will be traveling more to South America in the future.

United Arab Emirates is like Hawaii for European travelers.

• U.A.E. is a critical mass of luxury product.

• But, U.A.E. is a tough sell to North Americans. The key to getting them to travel to the Middle East is to engage the business traveler.

Dubai is a best kept secret. • Dubai is like Singapore – a beautiful, established destination.

• Consumers need to understand that there’s more to the area than just Dubai.

Kate AulettaAsst Travel Editor, Wall StreetJournal Magazine

Consumers are wanting more out of a vacation than sitting on a beach

• Consumers are starting to make long term travel plans.

• Big trend in education travel.

• Consumers are looking for more exotic travel destinations.

Christopher ReynoldsTravel Staff Writer, LA Times

Luxury travel will become more affordable

• Four-star hotels will be found at two-star prices.

• If consumers could stay in luxury hotels for less, that would be the draw to the destination.

Over-building is the scariest thing about the travel industry

• Reynolds is fascinated with how overbuilt Las Vegas has become and how the Nevada travel industry has been able to absorb the costs.