Tech, Travel and Tourism (revisited)

Just over two years ago, I posted a blog on how the tourism and travel industries needed to embrace the opportunities brought about by digital disruption. Having been on half a dozen overseas trips in the past 12 months, I can see that there have been some improvements in the traveler experience, but there is still a lot of room for improvement…

One of the biggest benefits has been the expanded integration of public transportation information into Google Maps. Navigation and route planning, right down to which platform to board from or which subway exit to take, has been a huge boost to the traveler UX. Many cities are now using integrated stored value cards for public transport, but limitations still exist: for example, some systems don’t make it that easy for overseas visitors to obtain the card itself, others make it hard to re-load other than by cash; while only a few systems, like Hong Kong and Japan, support multiple point-of-sale transactions for shops, restaurants and other services.

Another plus for frequent travelers has been the increased adoption of chip-enabled, e-passports which streamline the immigration entry/exit process (but only for participating countries, of course). Laborious paperwork still exists in many cases with arrival/departure cards and customs declaration forms – but over time, these processes should become more streamlined with the adoption of digital IDs and biometrics.

Using local mobile phone networks may have gotten easier with compatible operating systems, but even with pre-paid travel SIM cards and data packages, access costs are still disproportionately expensive for overseas visitors. Sure, there are more and more public WiFi services and hotspots available, but most still require users to provide personal data and/or reveal security weaknesses. Even though I recently purchased a mobile pass to access “free” WiFi services abroad, it’s hard to see what value it offers, because it only works after I have already logged onto the WiFi network.

Getting flight information, notifications and alerts via SMS and e-mail has improved considerably, along with easier online booking tools and mobile check-in solutions – and of course, QR codes now support paperless boarding cards. But I’ve noticed that some airline apps don’t support full integration with mobile phone wallets, and consolidating ticketing and invoicing information (e.g., for consolidated expense reporting) from multiple airlines and booking platforms still feels a long way off.

Finally, a constant irritation for travelers are the card transaction fees that most hotels still pass on at checkout – as if many guests are likely to pay in cash! – compounded by the FX fees that the credit card companies also like to charge. All up, this can mean an average of between 3% and 5% in additional fees, in a situation where hotel guests are something of a captive audience. Transaction fees remain a target for further disruption….

Next week: Token ring – a digital ID solution

 

 

 

Final StartupVic Pitch Night of 2016

There was something of a festive mood in the room for StartupVic‘s final pitch night of 2016, hosted at inspire9. It certainly had an end of term feel, as a number of the long-term Startup Vic team members said their farewells before moving on to new ventures. So it will be interesting to see how these monthly events continue to evolve in 2017.

screen-shot-2016-12-10-at-4-01-47-pmContinuing the theme of recent pitch nights, diversity was the key – this month’s startup hopefuls came from the energy, AI, environmental and consumer sectors. As usual, I will comment on each pitch in the order that they presented:

BioFuel Innovations

With the simple aim of turning waste into fuel, BioFuel Innovations uses an enzyme, as opposed to a more caustic chemical catalyst, to convert used cooking oil from restaurant kitchens into biodiesel. Given this greener and more sustainable process, the company can use lower quality feedstock, consume less energy and reduce the amount of waste water.

Having built a pilot plant in Dandenong, the founders are currently developing a containerised “turnkey solution” comprising a pilot micro-refinery, which can be financed by 3rd party lenders (a bit like some solar energy schemes). However, they are seeking funding to gain access to a startup accelerator program.

With a number of existing service providers that collect used cooking oil from restaurants and food processing plants, BioFuel Innovations only plan to produce their own fuel on a small scale. Rather, their business model is to sell micro-refineries for biodiesel production.

Asked by the judges why they are focusing on biodiesel rather than other higher-yield fuels, the team pointed out that some of those products require high temperature processing, and therefore consume more energy. Also, in concentrating on this type of biodiesel production, the founders believe they are helping to solve the problem of disposing of waste oils. However, longer term, they may explore even more sustainable energy derivatives and regeneratives. And in Asia Pacific, for example, there is a need to re-process palm oil residues.

Finally, a key to their success will be streamlined manufacturing processes and logistics, such as building supply chain partnerships for the shipping containers that hold the micro-refineries.

Breathable

This is an environmental design concept that aims to use plants to replace air ventilation systems in offices and homes. Based on research from Maastricht University in the Netherlands, Breathable uses an algorithm based design solution. Taking into account the building dimensions, natural light, air flow, number of people, amount of mechanical and electrical equipment, etc., the team can design the right combination and layout of plants for each given location.

Established as a bootstrapped social enterprise, whose profits go to helping asthma sufferers and patients with respiratory complaints, Breathable is hoping to make a large and sustainable impact.

The first question from the judges was, why set up in Australia? The team explained that given certain plants are not allowed here, the underlying algorithm has to be reconfigured for native plants, by a local team.

This was a very timely comment, given the recent episode of “thunderstorm asthma” in Melbourne. However, the judges were a little concerned that while there was a clear connection between purpose and passion, they wondered whether it is more of a lifestyle business for the founders, especially as thus far, no IP has been registered or protected. (On this specific point, the team simply said, “we challenge people to do it better”.)

There is an expansion plan, to develop fully self-sustaining eco-systems – such as using plants to power lights that help generate photosynthesis. But big goals need big marketing budgets, and with an active waiting list of 20 corporate clients, the challenge for the business is in how to scale.

MagicPi

I should say upfront that based on what I had read in advance on their website, this pitch was not what I had expected. Instead of a presentation on artificial intelligence, we got a pitch about Australia’s Chinese tourism “problem”. Namely that, based on a 2016 report from Bloomberg, by 2020 Australia will host 5 million Chinese visitors a year, representing a $13bn market. (And as I know from having worked with the founders at China Digital, many tourist destinations in Australia are far from China ready.)

Using natural language AI (cognitive, cloud, machine learning – “Siri with a human touch”) MagicPi is targeting Destination Marketing Organisations (conventions, conferences, local tourism boards). They plan to create content and solutions for client websites, and then take a commission on bookings. With a presence on both WeChat (including a voice recognition bot) and AliPay, MagicPi has a long-term vision of being the “intelligent interface for everything”.

However, the judges questioned whether the solution works or even exists. They felt that there was currently no visibility for investors or consumers. Claiming to have built a demo app, the team stated that there is a lack of quality information for Chinese tourists, and people are willing to pay for premium content – and to distinguish mere “recommendations” from the visitor “reality”.

Despite adopting a deliberate enterprise solution, the judges felt that the pitch needed to stress the “why”, rather than focusing on the problem.

The Cider Link

I should mention that I first met the team from The Cider Link about a year ago, and was intrigued by their mission to build an online craft cider market that connects makers with customers. (So much so, that I connected them to local wine producer, Richard Stockman, who invited them to appear as guests on his weekly food and drink radio program.)

The Cider Link is challenging both the market duopoly for cider retailing, and the ubiquity of “commercial” cider, much of which is produced from bulk juice mixed with alcohol – rather than being fomented from freshly pressed fruit, as is the case with craft ciders.

Cider is currently enjoying 10% annual growth by volume (based on bottle shop sales alone). So, online, cider and craft are all “on trend”. The founders have built a commission-based market place, and with connections to producers who are members of industry body Cider Australia, The Cider Link is also appearing at festivals and related events.

In the Q&A with judges, the team explained that success for them would be sales of 1000 cases a month, making it a $1m business. They also plan to take the model to the UK, which has the largest cider market in the world.

In addition to attracting more customers, the founders are seeking investment to improve sales conversions and support some advertising.

Given the mix of pitches, and the range of business models and sectors, based on judging criteria and audience votes, the winner was Breathable.

Next week: End of Year Reflection

 

A Music Buyer’s Guide to Japan (or Crate Digging in Kobe, Kyoto & Tokyo…)

For serious music collectors, Japan is like an oasis in a desert of digital downloads and streaming services. Not only does Japan still have bricks and mortar record shops, it also boasts a couple of well-known chain stores, in the guise of Tower Records and HMV, although both brands operate under local licenses totally unconnected with their original US and UK parent companies.

A Crate Diggers Paradise....

A Crate Diggers’ Paradise…. (Picture sourced from Facebook post)

On my recent tour of Japan, I spent several hours visiting some of the crate-digging hubs of Kobe, Kyoto and Tokyo. I barely scratched the surface, but still managed to come across some interesting finds.

“Big In Japan”

Whether it’s the country’s aging population, the love of tactile objects combined with a strong design aesthetic, or just that national obsession with detail and authenticity when it comes to pursuing hobbies and interests; whatever the reason, Japan has established a reputation for being a paradise for lovers of vinyl records, CDs and cassettes.

For collectors like myself, it seems like all the unwanted and discarded records from around the world have ended up in Japan’s second hand music shops to be (re)discovered and appreciated by audiophiles, hipsters and analogue enthusiasts.

Here is just a small glimpse of what dedicated music lovers and crate-diggers can experience in Japan.

Kobe

The Motoko market (a series of cramped arcades underneath the railway lines) has at least a dozen second-hand music stores stuffed with vinyl. A few of these shops specialise in particular genres, and some also sell new independent releases. What they all have in common are over-stacked racks and heaving shelf units shoved close together, forcing shoppers to crab-walk very carefully between piles of records, at considerable risk of triggering a vinyl avalanche.

Some of the stores arrange their stock meticulously by type and artist, but not much help if you don’t read Japanese; others seemed to have given up cataloguing the stock, so if you are searching for a specific record, it’s like looking for a needle in a haystack.

At times, it felt like this was the end of the line for many of the items on display – if they can’t find a buyer here, there probably isn’t much hope for them anywhere. No doubt there is a lot of on-line trading behind the scenes, and prices were generally reasonable, so maybe the shops are more like warehouses open to the public?

Poring through some of the 70s vinyl was something of an education, as I came across albums I had never seen before, even though I worked in a second-hand record store in London in the late 80s. I resisted the temptation to buy some of the older Japanese pressings (especially at Wild Honey Pie), even though they have a reputation for superior sound quality, but I did pick up a Japanese edition of the first Y.M.O. album on CD at Freak Out Records.

Kyoto

Armed with a handy crate-digging map of Kyoto, I checked out several shops located near City Hall. Unlike their Kobe counterparts, these were neat and orderly boutiques, and were easy to browse. None of the stores are at street level, so navigation can be challenging. The map lists stores by genre and other specialisations, although some of the music categories can seem bewildering.

I spent most time at 100000t alonetoco (I think it means something like “100,000 tonnes of records”?), which has a good range of vinyl and CD, from classic rock to contemporary sounds, from soundtracks to electronica, plus books and other memorabilia. The owner stocks numerous Japan-only releases by independent US and UK artists, many of which are highly collectible. Speaking of which, I found an absolute bargain – a 1987 compilation CD of the 2nd and 3rd albums by The Pop Group, which was only released in Japan. Copies of this particular pressing are currently listed for sale online from A$145 – mine cost a mere 600 yen….

Also worth checking out is Prototype, which leans toward reggae, soul and funk.

Tokyo

Around the hip Tokyo suburb of Shimokitazawa are a cluster of hi-quality specialist stores, including Jet Set, which is also a label and distributor for local and international releases, mainly indie, techno, beats, ambient and electronica. There are a couple of branches of Dorama, a chain of second-hand CD stores (plus comics, magazines, graphic novels, games and DVDs). Well worth checking out, especially for promotional releases, box sets, jazz, classical, Japanese pop and electronica, and alternative international rock. I managed to find very cheap (less than 300 yen each) and long-deleted Japanese releases by United Future Organization and the late Susumu Yokota. For the latest independent Japanese releases, the Village Vanguard book store has an intriguing music section.

Further towards the city, in Shinjuku, is the institution known as Disk Union (and not Disc Union as my Australian guide-book spells it…). With 10 branches in the Shinjuku area alone (plus more than 20 others across Tokyo and in Osaka), it would probably take several days to check them all out. While they do stock selected new releases, the real attraction of browsing in Disk Union is the sheer breadth of second-hand, deleted and promotional items on sale. A case in point being the special Japanese edition of the recent David Bowie “Five Years” box set – looks wonderful but too rich for my wallet.

Finally, no trip to Tokyo is complete without a visit to Tower Records in Shibuya. This landmark, multi-storey superstore is constantly being upgraded, even though sales of physical albums are generally on the decline. It caters for most tastes, and many new releases are discounted, making it popular with locals and tourists alike. It’s great for finding the Japanese pressings of international CDs, as they usually feature additional music or limited editions not included in the European or US releases. There’s now even a section just for cassettes, both new releases and re-issues. On this occasion, I found a couple of very limited edition albums by Japan’s Silent Poets, both on sale at regular price, but which I’ve since found listed online for upwards of A$50 each…

Next week: Another weekend, another hacakathon

 

 

 

There’s an awful lot of coffee in Japan (but not much espresso…)

Living in Melbourne all these years, I have become spoilt when it comes to the choice and quality of coffee on offer in the numerous cafes and bars around the city. So when I go overseas, I can get withdrawal symptoms if I don’t get my morning doppio. And I don’t mean an over-priced and over-rated big brand product from a certain you-know-who-you-are multinational chain store. My recent experiences in Japan, which has the third largest coffee consumption by nation, revealed that espresso-style coffee is on the increase, but is competing with some entrenched coffee tastes.

Walter de Maria "Seen/Unseen Known/Unknown" (Photo: © Rory Manchee - all rights reserved)

Walter de Maria “Seen/Unseen Known/Unknown” (Photo: © Rory Manchee – all rights reserved)

On my recent trip to Japan, I not only found some excellent new espresso outlets, I also acquired a renewed respect for siphon and filter coffee, which are both great when they are done well. As anyone who has been to Japan will know, coffee (both hot and cold) frequently comes in a can, either from a vending machine or a convenience store. In cafes, the coffee is usually brewed, and however good the coffee beans, this style just doesn’t do it for me. Rarely have I seen a cafetière (“plunger”) or percolator in use, although iced drip coffee is something of a delicacy.

From three weeks of travel, here are some of the highlights:

In Tokyo’s Ginza district, there is the Renoir Coffee Room which has a certain appeal, if you like authentic retro (i.e., it’s probably the same decor since the 1970’s, without a hint of irony or post modernism). Certainly a favourite with an older clientele, presenting a genteel atmosphere (somewhat undermined by the popular smoking section) and a reminder of a slower, gentler time. In the absence of espresso, I had a standard filter or pour over coffee, and despite being a little on the weak side, it had just enough of a roasted flavour to compensate. Rating: 6/10

Over in hipsterish Ebisu, I was expecting to find loads of local coffee shops, packed with neo-beatniks, retro-hippies and proto-punks, and the constant hiss of espresso machines. Not to be – maybe it was too early in the afternoon, but there were few options. Marugo Deli is more of a juice bar and organic cafe, that also happens to serve espresso. It was a friendly place, nice atmosphere, but the coffee was nothing special. Rating: 6/10

Down in Himeji, after a challenging climb to the top of the castle on a hot day teeming with hundreds of other visitors, it was a welcome relief to escape into the cool, calm comfort of Hamamoto Coffee. Again, they don’t serve espresso, but they specialise in siphon coffee (something I probably haven’t had since I used to visit the former Martinos Coffee Lounge in Hong Kong’s Causeway Bay in the 1990s). Sitting at the counter meant that I got to see the whole process close up, as the bar tender kept several siphons going at the same time. It’s as much an art as working a good espresso machine, and makes for interesting entertainment. The coffee itself was bold, yet mellow at the same time – full-bodied but smooth with an almost zesty edge. HIghly recommended. Rating: 8.5/10

Wandering around Kyoto‘s hipster quarter close to Nijo Castle, I came across Cafe Bibliotic Hello! (quirky name, quirky building!!!) where it’s easy to while away the time browsing through the library of art books and sampling the excellent baked goods from the adjoining store. The espresso was a welcome bonus, and was the best I’d had up until then on this trip. Rating: 8.5/10

Outside Kyoto, in Saga-Arashiyama (near the bamboo forest), % Arabica has recently opened its second Kyoto coffee shop. Overlooking the river, this tiny cafe is really only a takeaway stand, but everything has been designed for maximum aesthetic effect. There’s clearly a personal statement being made here, almost verging on the pretentious/precious, but not surprisingly it is very popular with the passing visitors. And the coffee is also pretty good – full-roasted, robust, just enough acidity, and an excellent crema. Rating: 9.5/10

Back in Tokyo, nearing the end of my trip, I spent a day walking around the district of Kiyosumi-Shirakawa, visiting the numerous galleries, second-hand bookshops and the Kiyosumi Gardens. In 2014, the New Zealand-based Allpress Espresso roastery and cafe group opened a branch here, in a former timber warehouse. It’s an interesting space, and is bringing some serious competition to a rival coffee roaster nearby (which only serves filter coffee to its customers). However, not all the locals seem to have taken to espresso – after having the coffee menu explained to them, a number walked out without trying, looking somewhat confused. But for me, having an Antipodean barista was obviously a plus. Rating: 9/10

Finally, I tried a couple of other espresso bars on my stay in Shimo-Kitazawa, one of which was not much more than an espresso stand, offering good coffee (Rating: 7.5/10), but the service was very slow. I can’t remember the name, and I can’t find a website for it, but it was close to the west entrance to the railway station. This trendy neighbourhood has a number of well-regarded coffee shops, but sadly, I did not have enough time to visit many of them. Next trip, perhaps.

Next week: More #FinTech stuff