13 Apr 2011, Bucharest
Oct 21, 2014
13 Apr 2011, Bucharest
Agenda
10.00 – 10.45 Welcome coffee
10.45 – 11.10 Global online market overview
With Marcin Pilarski, Travelport Managing Director Eastern Europe
11.10 – 11.30 Romania online market overview11.10 – 11.30 Romania online market overview
Vlad Dobrutchi, Travelport Romania
11.30 – 12.15 Live demo Travel Manager
12.15 – 13.00 Live demo eTrip
13.00 – 13.45 Lunch break
13.45 – 14.30 Live demo Netbook
14.30 – 15.15 Live demo Q Travel Online
15.15 – 15.25 Summary
Internet? Tamed!Internet? Tamed!
Marcin PilarskiManaging Director Eastern EuropeBucharest, 13 April 2011
Agenda
• Online Travel Market Overview
– Global
– European
– Direct and Indirect
• Building blocks of your online success• Building blocks of your online success
• Trends in the Online Market
– Evolving Business Models
– Increased Complexity
– New Competitors
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Few words about your presenter
• Internet and OTA business model fan
• Active in Polish and EE GDS / OTA space since 20032003
• Currently managing all Eastern European markets
• Likes to win & challenges ☺most recent 10 km run in Warsaw beating up my 13 year old daughter!
Global Travel Market
2,0672,203
2,3492,489
2,576 2,541 2,5712,648
2,7492,873
2500.0
3000.0
3500.0
Travel Market Retail Value
1,937 1,9222,067
0.0
500.0
1000.0
1500.0
2000.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
$B
n
7
Source: Travel and Tourism: Euromonitor International 2009
Travelport confidential
World Travel Market by Region
APAC 27%
RoW 11%
2008 Travel Market By Region
Value in $ B
APACAPAC 700.8700.8
NAM 24%
Europe 38%
APACAPAC 700.8700.8
NAMNAM 616.0616.0
EuropeEurope 982.8982.8
RoWRoW 273.5273.5
Source: Travel and Tourism: Euromonitor International 2009
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E-commerce impact on travel
37%
21%
Share of total European leisure travel industry 2006 - 2011
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Online Travel Agents (OTA) are gaining ground within the online market
40%
50%
60%
70%
80%
0%
10%
20%
30%
40%
2006 2007 2008 2009 2010 2011
Supplier.com OTA
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Thinking about the trips you have taken in the last 12 months, approximately how much do you think you spent on each of the following areas?
Air travel
Hotel or other accommodation
Food and drink
Entertainment
$658
$132
$126
$110$87
$197
Survey average
Average spend / trip
More than 75% of Leisure travellers spend is on non-air related product and services
Source: The Futures Company/Lightspeed Research-Travelport Consumer Segmentation survey Nov 2009 – Jan 2010
Entertainment
Car (rental)
Sea travel
Rail travel
Bus / Coach travel
Other
$589
$425
$132
$520
Base: 12,757 Leisure Travellers
Av. Numberof trips / annum
5.4
$524
Who doesn’t plan travel online these days?
Just 6% of French travelers, 9% of German travelers and 5% of U.K travelers plan and book their trips completely offline
Source: Euromonitor, PhoCusWright, Company Reports, Travelport Market Strategy assumptions
Clear correlation between internet penetration and leisure online travel penetration
10 20 30 40 50 60 70 80 90 100Growth
2000-2009
North America 134%
Oceania / Australia 175%
Europe 298%
74%
60%
52%
North America leads developed world in Internet penetration; Greatest growth seen in the Middle East.
Latin America / Caribbean
891%
Middle East 1648%
Asia 546%
Africa 1392%
Global Average 380%
31%
28%
19%
7%
26%
Source: Internet World Stats
Asia 15% 2,059 (↑17%)
Europe 23% 697 (↑11%)
United States 50% 1,174
Share of credit card transactions
Number of cards*(millions, 2008)
Europe and US lead credit card global penetration
Global 99 billion transactions (2008)
Middle East & Africa
2% 90 (↑24%)
Canada 3% 107
Latin America 7% 461(↑6%)
Asia 15% 2,059 (↑17%)
Source: Nilson Report, November 2009), Euromonitor International
* Credit, debit and pre paid cards
Defining success criteria is key
• Success does not have to be high booking volume
• Key to determine what success is and how to measure it
• Going online does not have to mean choosing only one• Going online does not have to mean choosing only oneway
So let’s have a look at some of the building blocks
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Building blocks of online success
User Experiencein Online Travel
ANALYTICAL ANALYTICAL SEM & SEOSEM & SEOUSABILITYUSABILITY
PARTNER’S PROGRAMMES
PARTNER’S PROGRAMMES
GRAPHICAL INTERFACEGRAPHICAL INTERFACE
IBE TECHNOLOGY
IBE TECHNOLOGY
in Online TravelCALL CENTER PROCEDURESCALL CENTER PROCEDURES
SALES PROCESSES
EFFECTIVNESS
SALES PROCESSES
EFFECTIVNESSBENCHMARKINGBENCHMARKING
TOOLSTOOLSSEM & SEOSEM & SEOUSABILITYUSABILITY
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Building blocks of online success
• The 7 Habits of Highly Effective People®
by Stephen R. Covey
1. Be Proactive
2. Begin with the End in Mind2. Begin with the End in Mind
3. Put First Things First
4. Think Win-Win
5. Seek First to Understand, Then to Be Understood
6. Synergize
7. Sharpen the Saw
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IBE technology
• Technology providers
• Contracting third party for customized projectfor customized project
• In-house development
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• Where should I click now?
• Is it available?
• How can I search for a hotel?
• Where am I?
• How to start?
Usability / don’t make me think!
• How to start?
• Where did they put_______?
• What’s important here ?
Let me use it!
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Usability / don’t make me think!
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Road with accent on USABILITY
Road with accent on USER EXPERIENCE
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brand B/OS support
design speed
uptime trust
stability
Accessibility
Findability
SOFT PRODUCT
mapsGuest reviews
descriptions
rich media
Features and functionalityfiltering
sorting
comparison
search
browsingnavigation
breadcrumbs
START – HOME PAGE
1. Home page
2. Search results
3. Hotel information
UX model in online travel
HARD PRODUCT
mapsdescriptions
images
Privacy policy
basket
Booking path
safety
Payment methods
cancellations
currencies
Loyalty program
Bookability
FINISH - PAYMENT
4. Rooms and guests
5. Booking screens
6. Payment
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So what influences conversion?
UsabilityUsabilityTrends/ contextTrends/ context
Product
Crisis / cycles
Market maturity
Price shopping
Source vs target
Trust to buying online
PAPPAP
PlatformPlatform
Brand / DesignBrand / Design
CompetitionCompetition
User qualityUser quality
Product
Availability
Price
onlineoffline
Meta search engines
efficiency
speed uptimetrust
Loyalty Program
awareness24
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Search Engine Optimization – SEO
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Search Engine Optimization – SEO
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Search Engine Optimization – SEO
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Search Engine Optimization – SEO
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What’s next?
Booking fee models will soon become dinosaurs…
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66%
40%
36%
40%
59%
40%
36%
32%
Search engine
Airline website
Hotel website
Websites of the destination
visiting
A third of traveller s
using the internet to
research used a
You said you researched your trip using the internet, specifically what type of websites did you use?
Non transactional websites will become more important
31%
25%
15%
11%
10%
32%
29%
26%
16%
14%
11%
visiting
Travel websites (eg TripAdvisor,
Lonely Planet, Rough Guide)
Online travel agency
Website of a high street travel
agent
Car rental website
Social networking website
Leisure
Business
travel website which
may have an
element of social
networking e.g.
TripAdvisor
Base: 59,499 Leisure traveller s and 3,064 Business traveller s
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The distinction between Suppliers, Tour Operators and OTA’s will continue to blur
Online Travel Agencies
Tour Operators Suppliers
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Air Transactions will become much more complex
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Social media & smartphones have created new opportunities for travel companies to provide services but how can this be monetised?
Augmented reality makes it possible to overlay data on the real life experience
Facebook Places, Foursquare and Google Places provide users with local content (offers, check-in) most useful on the mobile web
82% of travellers using Priceline’s mobile app booked within 24 hours of arrival compared with 45% of desktop bookers
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Does it have potential to change the
industry?
Apple iTravel
Produced by Market Strategy and Pricing, CMO
Key take aways
• Online sales channels are becoming more and more important
• Online is not offline on the Internet
• Define your model and what success is
• Many building blocks
• Coming next
– Pure Play Booking Fee Models will be dinosaurs
– Non Transactional Websites will increase in importance
– Co-opetition will be the model
– How to monetise new opportunities social media & smartphones
have created?
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