Can you double your moneyby becoming a travel
retailer?
Webinar6 February 2014
Your hosts
Kevin MayEditor & moderator
Gene QuinnCEO & producer
Your panelists
Tristan GadsbyCEOAlliants
Cathy HornbyManager, Digital RetailCathay Pacific Airways
Mark LenahanVP, Product StrategyOpenJaw Technolgies
Can you double your money
by becoming a travel retailer?
Tristan Gadsby
CEO, Alliants
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Travel companies are not seen as leaders
0/100
2/50
3/50
top brands
most innovative companies
most admired companies
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Retailers and consumer products dominate…
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Retailers think differently…
30.4% Share of the Groceries
Wallet+
Frequency of Visit
Not just transactions and average transaction value
COMPETITORS
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What can we learn from leading retailers?
All experts in…
Distribution
Engagement
Conversion
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Value
Increase Volume
Increase Reach
Increase Visit Frequency and Engagement
Improve Conversion Ratios
Increase Average Value
Increase Average Transaction (Up-Sell, Cross-Sell Package)
Optimise Margin
The big value-levers for all travel companies…
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Increase Conversion: Barriers in checkout
A Fast Track 100 Ecommerce site
removed a modal window. Page dropout
reduced by 30%source: Alliant’s UX work
Don’t interrupt the user!
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Increase Conversion: Compulsory registration
ASOS redesigned to remove the references
to registration.Page dropout reduced by
50%source: Econsultancy ASOS checkout post
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Increase Conversion: Fraud & Security
Re-enforcing security credentials can decrease dropout on payment pages
And… be wary of enthusiastic security policies
Removing CAPTCHA had a
10% uplift in
conversion.(Sampa.com)
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Share products
Compare products
Engage in available product
Use site search
0 1 2 3 4
Conversion Multiplier
Increase Engagement Up to 10%
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Up-sell and Cross Sell
Upsell – give shoppers alternatives. Optimise on the price.
Cross-sell – once someone commits a purchase, offer additional appropriate items. Optimise the inventory.
Up to 10%
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Personalisation of offers and Search Result Ordering
can deliver up to 15%....
Personalization Up to 15%
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…But understanding the price sensitivity and
margins of what you are selling can deliver another 5-10% to the bottom line
Optimise Margin Up to 10%
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Increase Reach
12 foldMobile traffic in
2012, than the entire internet in 2000
4/5Smartphone
owners use their mobiles to shop
2013The year when mobile internet
connected devices outnumbered
humans
In 2014, you cannot ignore mobileSources: Cisco, comScore
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Effectively Delivering Mobile Up to 15%
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Improvement Potential0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Remove Con-version Barriers
IncreasedReach
Upsell and Cross-Sell
IncreasedEn-gagement
Personalisation
OptimiseMargin
The Multiplier Effect of Retailing
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What next?1. Deep use of social tools like
OpenGraph(e.g. Fab.com)
2. Data science (e.g. pricing analytics)
3. ‘Useful’ mobile apps – it’s not good enough to replicate a website.
Retailing for the travel industry
Mark Lenahan
VP, Product Strategy
OpenJaw Technologies
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What Is “Thinking Like A Retailer”?
• Retailer: “I have customers – how many of their needs can I fulfill?”
• Supplier: “I have product – how do I sell as much of my product as possible?”
?? ? ?
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1. Travel Agents are the retailers
2. Structured around operations and locations
3. Operational complexity
4. Legacy technology
5. Business silos
6. Product complexity…
Why don’t Airlines think like Retailers?
Airline
FFP
Holidays
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• Starbucks has 87,000 different drink combinations?WSJ & NWT adverts 2008, Times Magazine 2006
Travel Product Complexity
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• How many possible holidays can I book?(Drastically oversimplified!)
Travel Product Complexity
• 100 destinations• 30 departure dates• ~20 durations• 10 flights out• 10 flights back• 3 cabin classes• 100 car rental offers• 200 hotels• Room type / meal plan• Activities, Insurance...
1003,00060,000600,0006m18m 1,800m3.6 x1011
t-Retailing Introduction
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The 4 Principles of t-Retailing
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Inspire! with t-Retailing
• Creation of own content, curation of third party and user-generated
• Browsable products, locations and promotions
• Consumer engagement, discovery and social sharing
• Visually compelling and dynamic display of products with prices, offers and calendars
• Support traffic acquisition/SEO/SEM for search and meta-search
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Personalise! with t-Retailing
• Identify and recognise individual customers to personalise offers and user experience
• Deliver ‘compelling’ cross-sell – the right product to the right person at the right time
• Own the customer engagement for life of the customer, not just one journey – focus on customer share, drive loyalty
• Retain and index all customer interactions – reward loyalty – mine data for customer knowledge
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Differentiate! with t-Retailing
• Get closer to supply – own and partners – leverage unique inventory, products and rates
• Control business model and algorithms on the fly – realtime business response to the market
• Leverage packaging and redemption as channels for distressed inventory, negotiated/net/private fares and rates
• With a small number of direct contracts, key destinations, offer unbeatable value
• Reward loyal customers
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Convert! with t-Retailing
• Bring proven online retailing & merchandising strategies to travel
• In-path and post-booking cross-sell Up-sell flight and ground ancillaries through travel journey
• Shopping cart & Dynamic Packaging - ‘Combine & Save’
• Integrate with loyalty partners for accrual and redemption
• Unified online and offline channels; contact centre for serving and sales
• Payment models matter e.g. online, offline, loyalty points, deposit, cash, high street
t-Retailing Principle 1: Inspire
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• Products & Pricing• SEO & Social• Google Forms• Only possible recently
Inspire - Promotions
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Inspire - Promotions
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• Do you have landing pages for Destinations / Hotels / Activities/Packages/Promotions/Themes?
• Can they be browsed by consumer & indexed by search? (SEO/SEM) – without search forms!
• Can they be liked, shared, +1’d, tweeted?Can you get a network effect?
• Do they contain current price information, availability and images?
• Do links land on something useful? i.e. departure dates with actual prices/bookable?
Inspire - Promotions
t-Retailing Principle 2: Personalise
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Recommendations in Travel
Past BehaviourSuper PNR, +(views, likes, saves)
Profile/CRM DataStated preferences, inferred/collated data, identity, location, social/mobile
Current BehaviourSession / Shopping Cart
Product DataHotels, Locations, ActivitiesFormal meta-data + soft tags
Collaborative DataProducts + Behaviour (Signals)(Many Customers)
External DataLocal data, UGC, social media,alerts/disruption/news(Per Product, Location)
External DataShares, Likes, Comments, Tweets, Graph
Recommendation & Personalisation
Rules
CustomerData
ProductData
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Personalisation Examples
Altered Image Elements& Styles
Featured Promotions & Banners
Targeted Pricing & Special Offers
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Personalisation Examples
Non-PersonalisedProduct A $105Product B $108Product C $134Product D $141Product E $182Product F $245…
Product C $134Product E $181Product A $105Product B $108Product H $255Product E $182…
Personalised
Merchandising: Arrange products in an order more likely to sell. Anywhere you list products, especially search results…
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Customer Service / Support
• It isn’t just your systems!• The people who deal with your
customers:-• Check-in• Room service• On board• Contact centre• Social• High street• Airport• Hotel• Depot• Station
t-Retailing Principle 3: Differentiate
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1. Using One Aggregator• 50,000 – 150,000• Build breadth quickly• Intelligence built in
2. Using 2 or More Aggregators• 200,000+• De-duplication• Relative priorities
3. Aggregators and Contracting• Focus on top destinations• Add unique content (boutique, halo)• Very difficult to replicate
Differentiate – Content & Supply Model
t-Retail Platform
Content
1 Aggregtator
LinkLink
Aggregators
Contracts
t-Retailing Principle 4: Convert
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• In Line Cross-Sell
Conversion
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• Up-Sell
Conversion
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• Dynamic Packaging/Combine & Save
Conversion
t-Retailing in Practise
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Internet Booking Engine
UX
CMS
Mobile
IBE
API xDistributor
Rules:Business
TablesProcess
Ope
nTra
vel X
ML
Supp
lier C
onne
ctor
s Air PSS/GDS
Hotel
Car
Event
Other
AdminConsole
Contact CentreProduct Managers
Rule Managers
AgentDesktop InventoryContent
Super PNR
LoyaltyProfile
Location
OpenJaw t-Retail Platform
Internet Booking Engine
UX
CMS
Mobile
Trib
e AP
I
Rules:Business
TablesProcess
Ope
nTra
vel X
ML
Supp
lier C
onne
ctor
s Air PSS/GDS
Hotel
Car
Event
Other
AdminConsole
Contact Centre Mgr.Business Rules
Pricing & Product Management
AgentDesktop
EventManager
HotelManager
Super PNR
LoyaltyManager
ProfileManager
Location Manager
xDistributor
Q & A
Thank you!
Send your questions and comments to [email protected]
Replay and presentation of webinar will be available on www.tnooz.com