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Expedia + Hotels.Com Presentation Final Feb 09
 

Expedia + Hotels.Com Presentation Final Feb 09

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Listen to the Expedia and Hotels.com presentation at the recent Hotel Website Marketing Conference in Dublin

Listen to the Expedia and Hotels.com presentation at the recent Hotel Website Marketing Conference in Dublin

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Expedia + Hotels.Com Presentation Final Feb 09 Expedia + Hotels.Com Presentation Final Feb 09 Presentation Transcript

  • Dublin Hotel Website Marketing Conference Charlotte Gogstad 17 th February 2009 3 rd Party Partners
  • AGENDA
    • WHO
        • Who are Expedia
        • Our Global Footprint
        • Access to Demand
    • WHY
          • Evolution in Online Travel
          • Trends in Travel Distribution
    • HOW
          • 5-STEP of Partnering with an OLTA
          • THE OLTA’s investment in demand
          • What does it mean for Irish hotels
  • AGENDA
    • WHO
        • Who are Expedia
        • Our Global Footprint
        • Access to Demand
    • WHY
          • Evolution in Online Travel
          • Trends in Travel Distribution
    • HOW
          • 5-STEP of Partnering with an OLTA
          • THE OLTA’s investment in demand
          • What does it mean for Irish hotels
  • Expedia holds a leadership position in nearly every geographic market where we are present Unmatched global marketplace of brands No.1 hotel specialist, in 42 countries Leading discount travel site reaching price-conscious travelers Leading online travel service provider in China On-demand, full-service corporate travel agency operating in nine countries No.1 community player with more than 15 million reviews and opinions No.1 OLTA, in 19 countries Operating more than 100 in-market concierge and activity desks © 2008 Expedia, Inc. Confidential & proprietary. All rights reserved. Expedia’s value proposition
  • Expedia provides access to international demand
    • Highest brand awareness worldwide
    • Leadership position in nearly every geographic market present
    • 3 of top 7 online travel agencies in the Americas, including the #1 agency
    • #1 in UK, Germany, Italy; #2 in France
    • #2 in China
    • More points of sale to be launched
  • © 2008 Expedia, Inc. Confidential & proprietary. All rights reserved. Expanding internationally
  • © 2008 Expedia, Inc. Confidential & proprietary. All rights reserved. Expanding internationally
  • © 2008 Expedia, Inc. Confidential & proprietary. All rights reserved. Expanding internationally
    • #1 online travel site
    • 20 POS
    • Broadest product offering focusing on “the whole trip”
    • Package-focused
    • Broad, upscale customer mix
    • Longer booking window/longer LOS
    • #1 hotel specialist
    • 40 POS
    • Consumer site focused on user reviews
    • Two-thirds drive
    • Last-minute shoppers
    • Call center heavy
    • Hotel Only
    • Wider and specific distribution
    • Hotel/Package ► longer length of stay
    • Some of our partners:
    © 2008 Expedia, Inc. Confidential & proprietary. All rights reserved. Reaching diverse customer segments
  • Multiple product categories to maximise demand © 2008 Expedia, Inc. Confidential & proprietary. All rights reserved. More than 730,000 flight shoppers globally, per day More than 55,000 car shoppers globally, per day Nearly 475,000 hotel shoppers globally, per day We have more than 75 million visitors to our sites every month
  • 5.5% overlap Accessing different target audiences We attract a range of consumers with different buying habits UK Traffic per month 20 Million UK Traffic per month 40 Million Average Customer Age: 56% are 25-44 Income: 41% earn £50+ 20% repeat customers Average Customer Age: 63% are 35-65 Income: 67% earn £50+ 20% repeat customers
  • AGENDA
    • WHO
        • Who are Expedia
        • Our Global Footprint
        • Access to Demand
    • WHY
          • Evolution in Online Travel
          • Trends in Travel Distribution
    • HOW
          • 5-STEP of Partnering with an OLTA
          • THE OLTA’s investment in demand
          • What does it mean for Irish hotels
  • WHY work with an OLTA? We are bringing you the world Incremental business: Reach travelers that would not find you any other way Get customers that stay for longer in your hotel and spend more money on it Inspire travelers to find, build and share travel experiences Make your hotel accessible to a Worldwide audience
  • Trends in Travel Distribution Europe online travel continues to grow and gain market share from offline channels European Leisure/Unmanaged Business Travel Market 2006-2010 Gross Booking (€B), Growth (%) and as a Percentage of Total Travel Market Note: 2008-2010 projected Source: PhoCusWright´s European Online Travel Overview 4 th Edition
    • The European online leisure/unmanaged business travel market is projected to nearly double, from €48 billion in 2006 to €90 billion in 2010
    • Online bookings in 2007 increased 24% over the previous year vs. 6% growth for the overall European travel market (€59 billion out of €237 billion total), and is expected to continue to see healthy growth over the next few years
    • In comparison, the US online travel market ($90 billion out of $265 billion total) also saw growth of 12% in 2007 this is expected to slow to 7% by 2010
  • Trends in Travel Distribution Lack of consolidation and economic environment favour online distribution channels
    • The large number of geographically dispersed small chains and independent properties are not likely to see major consolidation, therefore the supplier direct online distribution channel is not forecasted to increase significantly in importance for Hotel
    • With the economy softening, online distribution channels have increased access to inventory and can offer a broad range of products for easy comparison shopping by consumers who are increasingly value conscious
    European Supplier Web Site Booking Share Leisure/Unmanaged Business Note: 2008-2010 projected Source: The European Online Travel Market: 2006-2010
  • Trends in Travel Distribution Despite the economic environment, online travel will continue to grow
    • The negative macro economic outlook, driven by the global financial crisis, is expected to have a negative impact on European travel spend
    • However, an economic downturn is expected to have an upside for online travel – just as it already has in the US, where travelers are increasingly shopping for bargains online
    • After September 11 th , 2001, Expedia hotel transactions grew 120% in 2002
  • Trends in Travel Distribution Participating with an online travel agent provides media value
    • IMPRESSIONS
    • 7,743,507 – £154,870
    • 4,222,803 – £84,456
    • 2,337,650 – £46,753
    Cost of a banner such as the one displayed above is approximately £20 per 1,000 impressions The cost of Top 5 position head term on a major search engine such as ‘London Hotels’ is estimated at £1.15 per click
    • PLACEMENT
      • Top Hotel
      • Average
      • Low
    • CLICKS
    • 130,874 - £150,505
    • 62,713 – £72,120
    • 42,786 - £49,203
  • © 2008 Expedia, Inc. Confidential & proprietary. All rights reserved.
    • For every 2 transactions on Expedia, our shoppers also make 1 transactions direct with you
    • Resulting in significant reduction of the effective cost per transaction on Expedia
    We help drive your growth Driving direct sales Cost per transaction spread over 3 transactions 25% 15% Direct cost per transaction Effective cost per transaction including “Billboard Effect”
  • AGENDA
    • WHO
        • Who are Expedia
        • Our Global Footprint
        • Access to Demand
    • WHY
          • Evolution in Online Travel
          • Trends in Travel Distribution
    • HOW
          • 5-STEP of Partnering with an OLTA
          • THE OLTA’s investment in demand
          • What does it mean for Irish hotels
  • 5-STEP EVOLUTIONARY ON-LINE MARKETING – Partnering with Online Travel Agents (OLTA’s) 1. Get your product into OLTA Shelves + 2. Promote deals on OLTA shelves + 3. Run ad campaigns with OLTA’s + 4. Be active on UGC sites + 5. Upgrade your site for ancillary revenues Consumer Relevance Long-term Brand Value OLTA capturing demand through Marketing Investment
  • 1. Get Your Product on OLTA Shelves Online distribution provides flexible options for both consumers and suppliers
  • 1. Content Management 95% of leisure Bookers & 92% of Lookers say descriptive content is important to them Info sites Traveller Reviews Virtual Tours Room details Photos
  • 2. Promote Deals on OLTA Shelves
  • 3. Run ad campaigns and build your brand
  • 4. The Power of User Generated Content The Web Site Content That Matters To Travelers Forester Research
    • Expedia has more than 1.5 million traveller reviews in 9 languages
    • 14.5% of customers posted reviews globally
  • Hotel Conversion vs User rating Score (1-5) 1–2.9 3.0–3.9 4.0–5.0 % User Ratings Source: NYC, Hotels.com, Nov 2008 4. Manage your reputation on User-generated content sites, it will help you in the long-run 100 170 220 % Total ratings Conversion Index
  • 4. Manage your reputation globally
  • 5. Upgrade your site for ancillary revenues Expedia – Pegasus co-branded hotel partnership will help Pegasus expand its consumer offering with minimal investment
  • $1 billion in marketing spend in 2008
    • We drive demand through investing in a wide range of marketing channels
  • Full service online travel agency… …more than just a transactional website Content Telesales Agents Search Optimization Promotions Email marketing Merchandising Offline Advertising
  • Expedia Inc in Ireland Strong YoY growth in domestic searches and transactions – The Irish seems to be staying closer to home this year
  • New Distribution Channels Expedia has been achieving significant growth into Dublin
    • Despite the weakening macro economics, 21% room night growth was achieved in Dublin in 2008
    YOY Growth * Compared against same period last year
  • New Nationalities Visiting Dublin Expedia’s significant and growing international reach
    • Expedia’s customer base is becoming increasingly diverse internationally and the large European markets continue to grow.
    • In particular shift towards customers coming from Scandinavia, France and Spain
  • Recap
    • Who will win in this economic environment ?
    • The travel suppliers who will win will be those who:
        • Display rich content
        • Actively manage rates and inventory
        • Take advantage of marketing and merchandising opportunities
        • Provide a quality product
        • Offer excellent service
  • Final Words: The ‘right’ Mindset ... can help you make the right decisions Be curious and open minded Look cross-industry Try ‘stuff’ out Test, Optimise and Adapt
  • Thank you and Hope to see you online!
  • Summary
    • Despite the economic downturn, online travel will continue to grow and gain market share from offline channels
    • Global Intermediaries will have a bigger role in the distribution of the hotel product due to the fragmented lodging landscape
    • The negative macro economic situation means that new distribution channels with pan European and global reach will become more important than ever