Orbitz.1.6.1

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  • http://www.expedia.com/daily/promos/deals/nfl/default.asp

    Research fact: “Expedia Runs Sweeps as NFL Travel Sponsor” PROMO Magazine Nov 14, 2007
  • Butler Shine Stern & Partners
    http://www.youtube.com/watch?v=dKeBXISXe60
  • Butler Shine Stern & Partners
    - they also explain the concept - selling unused/empty rooms for cheaper
  • http://www.youtube.com/watch?v=V8D99MWBL88&feature=related
  • Trip Idea #39 http://www.youtube.com/watch?v=Z6wOqj7HPCo&feature=related
    Trip Idea #101: http://www.youtube.com/watch?v=8dFcL49ajXs
    The Campaign Inspired A Viral Following
    - http://www.youtube.com/watch?v=1HxxFiPd15M&feature=channel_page
    - http://www.youtube.com/watch?v=D_LItYW752A&feature=channel
  • http://www.redorbit.com/news/technology/565246/travel_search_engine_kayakcom_launches_satirical_ad_campaign_that_goes/index.html
  • http://www.cbronline.com/companies/expedia_inc?section=companyView
  • http://www.cbronline.com/companies/expedia_inc?section=companyView
  • http://www.cbronline.com/companies/expedia_inc?section=companyView
  • Site Science VS. Travel Dreams
  • Site Science VS. Dreams of Travel
  • Site Science VS. Dreams of Travel
  • http://www.cbronline.com/companies/expedia_inc?section=companyView
  • Orbitz.1.6.1

    1. 1. 1 Orbitz Get Smart 1.6.2010
    2. 2. 2 The Business Challenge Orbitz’s core business challenge is that they are widely visited to research and book air travel, but have not been able to grow hotel transactions at the same rate as their competitors. Aggregators Direct Suppliers Travel Search Engines
    3. 3. 3 The Branding Challenge Orbitz has had five campaigns in eight years. They themselves admit to not having in-depth knowledge of their past campaigns’ successes, as they had not been in market long enough to demonstrate traction. However, the Orbitz brand is not unhealthy – it is just not growing or sufficiently differentiated.
    4. 4. 4 Quick Facts Orbitz is headquartered in Chicago and was founded in 2001 by a venture merger of five of the six major airlines. The company currently has 1,500 employees.
    5. 5. 5 . Corporate Structure 40% 60% Although Orbitz is now 60% owned by Travelport, rumors are rampant that the company will merge with another player such as Travelocity or be bought out by another corporation.
    6. 6. Client Started at Orbitz Previous Company Interesting Fact(s) School Barney Harford President and CEO January 2009 Expedia Currently serves on the board of directors of LiquidPlanner, an on-demand project management service, and GlobalEnglish, a provider of English language training to multinational corporations MBA from INSEAD and MA in Natural Sciences from Cambridge University Jeffrey Davidoff SVP and CMO October 2008 Whirlpool Corporation Founding member of UPSHOT, a marketing agency in Chicago that focuses on brand marketing, experiential marketing, and retail promotion. While there he was head of account management and new business. Undergrad at Dartmouth and MBA from Northwestern University Deborah Italiano VP of Brand Marketing November 2009 Travelocity Responsible for domestic consumer research, segmentation and brand strategy at Orbitz. And worked on the successful Traveling Gnome campaign for Travelocity. And before that, worked as an SVP, Account Director at Mullen. University of Toronto Marie LaPlante Senior Director of Brand Marketing TBD AT&T Wireless Has a 4-year-old daughter, and rates Super Bowl ads on her Twitter account. Undergrad at Roosevelt University and MBA from Northwestern University 6 Key Executives Deborah Italiano and Marie LaPlante (highlighted below) will attend the agency visit on January 13th.
    7. 7. 7 Brand Portfolio
    8. 8. 8 2004 2005 2006 2007 Revenue ($ millions) 244 686 752 859 Change in Revenue 181.1% 9.6% 14.2% Gross Margin 82.4% 85.3% 85% 81.7% Operating Margin -23.8% -60% -15.7% 4.9% Profit Margin -25.8% -56.6% -19.4% -9.9% Financials ’04-’07
    9. 9. 9 . 2008 Business Strategy 1. Build presence in rapidly growing international markets. 2. Increase the percentage of business in non-air segments: hotels and dynamic vacation packages. 3. Continue to improve operational efficiency. Orbitz had a three pronged attack to build overall growth.
    10. 10. 10 2004 2005 2006 2007 2008 Revenue ($ millions) 244 686 752 859 870 Change in Revenue 181.1% 9.6% 14.2% 1.3% Gross Margin 82.4% 85.3% 85% 81.7% 81.2% Operating Margin -23.8% -60% -15.7% 4.9% -27.4% Profit Margin -25.8% -56.6% -19.4% -9.9% -34.4% In the Red
    11. 11. 2008 11 People are traveling less Potential travelers are researching trips in greater detail Consumers are giving more weight to the opinions of fellow travelers in making vacation decisions
    12. 12. 12 Hotel Supply GrowthOnline Travel Use ADR Hotel Demand
    13. 13. A Change in the Landscape Due to macroeconomic factors, travelers begin to aggressively seek value. This results in price wars among the OTAs.
    14. 14. 14 Headquarters Bellevue, Washington Founded 1995 Employees 8,050 Appeals to the broadest possible range with an extensive range of products across all price points. For the value conscious traveler. Targets luxury travelers seeking a high-touch, customized vacation package. Appeals to drive-to-market travelers with shorter booking windows and make most their bookings over the telephone. Makes travel products and services available on a managed basis to corporate travelers in North America, Europe and Asia. Reaches a broad range of travelers with travel opinions and user-generated content.
    15. 15. 15 2004 2005 2006 2007 2008 Revenue ($ millions) 1843.01 2119.45 2237.59 2665.33 2937.01 Change in Revenue -21.2% 15% 5.6% 19.1% 10.2% Gross Margin 78.8% 77.8% 77.5% 78.9% 78.4% Operating Margin 10.4% 17.6% 15.7% 19.9% -82.7% Profit Margin 8.9% 10.8% 10.9% 11.1% -85.7% Financial Snapshot
    16. 16. 16 Headquarters Norwalk, Connecticut Founded 1998 Employees 300 priceline.com Incorporated is a global online travel company that offers its customers a range of travel services, including hotel rooms, car rentals, airline tickets, vacation packages, cruises and destination services. Internationally, the Company offer its customers hotel room reservations in over 75 countries and 27 languages. In the United States, the Company offers its customers the ability to purchase travel services in a manner or the opportunity to use the Name Your Own Price service, which allows the customers to make offers for travel services at discounted prices. The Company is also engaged in offering financial services through Priceline Mortgage Company LLC.
    17. 17. 17 2005 2006 2007 2008 Revenue ($ millions) 962.66 1123.1 1409.41 1884.81 Change in Revenue 16.7% 25.5% 33.7% Gross Margin 27.4% 35.3% 44.8% 49.8% Operating Margin 3.7% 5.5% 9.8% 15.4% Profit Margin 20% 6.6% 11.1% 10.3% in the Black
    18. 18. 18 Headquarters Southlake, Texas Founded 1996 As a subsidiary of the world's #1 computerized travel reservation system supplier Sabre Holdings, Travelocity.com is one of the global leaders in providing online travel destination services for leisure and business travelers. The Travelocity.com Web site offers deals on most of the world's airlines, hotels, car rental companies, and vacation packages. The site has versions in 12 different languages, and it also offers services in Europe and the Asia/Pacific region. Its Travelocity Business segment acts as a travel service for corporations and business travelers, while the UK's lastminute.com represents one of Travelocity's primary brands in Europe.
    19. 19. 19 Headquarters Norwalk, Connecticut Founded 2004 Employees 300 Kayak.com operates its eponymous online Web site that searches more than 500 travel-related sites for airline, hotel, rental car, and cruise line rates. The comparison shopping site offers fare information from such companies as American Airlines, Funjet Vacations, Marriott International, and InterContinental Hotel Group. Its search includes hundreds of airlines, more than 100,000 hotels, and all leading rental car companies. In addition to travel planning, it offers destination information, travel tips, member discounts, official hotel descriptions, and user reviews of travel-related products and services. The company was founded originally as Kayak Software Corporation in 2004.
    20. 20. 20 Headquarters Dallas, Texas Founded 1991 For more than 15 years, hotels.com has provided you with great prices on the places you want to stay for both leisure and business travel. We know that the hotel experience is an important part of your trip. This is why we provide insight on our broad selection of hotels through current, unbiased hotel reviews from discerning guests just like you who have stayed at the property. Hotels.com acts as a resource for like-minded guests to review and rate properties, give recommendations and gather information for upcoming trips. Hotels.com offers more than 70,000 properties worldwide from hotels to bed- and-breakfasts to condos to all-inclusive resorts. We offer the information you need to book the perfect trip through detailed hotel reviews, Flexible Booking and our Price Match Guarantee. Hotels.com is an operating company of Expedia, Inc.(Nasdaq: EXPE). hotels.com WE KNOW HOTELS INSIDE AND OUT.®.
    21. 21. 21 . 2009 Business Strategy
    22. 22. 22 Graceland
    23. 23. Decide to travel Research travel Compare price Book travel The General Process
    24. 24. 24 Booking on
    25. 25. 25
    26. 26. 26 Booking on
    27. 27. 27
    28. 28. 28 How is Orbitz encountered?
    29. 29. Orbitz Agency History Agency Location Duration Notes Mullen Boston 2006-2009 Orbitz switched to Trailer Park Studios in mid-2009, without a review. In regard to the agency switch, Orbitz CMO, Jeffrey Davidoff, said it came from a need for “a model that better suits the pace of e-business...by shrinking production windows from months to weeks or days.'' Mullen retains the media planning and buying responsibilities for Orbitz, which is not up for review. Trailer Park Los Angeles 2009-Present Trailer Park operates as a hybrid production-creative agency, which allowed them to make the case that if you could put an agency and a production company together, you could service a client faster, and speed allows for reduced costs. Most of Trailer Park’s clients are TV network and Movie studio companies such as MTV and Paramount. Their few retail brands include Xbox 360, Guitar Center, Mattel, Netflix, etc.
    30. 30. Orbitz Media Spend 43% 36% 11% 10% 0% TV Online Print Radio Out of Home 2008 39% 40% 11% 10%0% 2009 (YTD) $20,254,370 $86,753,566
    31. 31. 31 Orbitz TV
    32. 32. 32 Orbitz TV
    33. 33. 33 Orbitz TV
    34. 34. Orbitz Brand CAMPAIGN IDEA: TRAVEL WELLNESS CENTER Attack travel barriers with a unified tone and feel • Travel is expensive = book hotel flight together is cheaper • Trouble planning vacations = beach finder - let our experts help you find it • Fear that price will drop after purchase = Price Assurance Solution CURRENT TAG: TRAVEL WELL 34 BRAND ICON: NONE
    35. 35. Expedia Media Spend 84% 9% 5%2%0% TV Online Print Radio Out of Home 2008 48% 23% 5% 24% 0% 2009 (YTD) $15,460,254 $59,343,421
    36. 36. Agency History Agency Location Tenure Expedia LA/NYC 1999 - 2006 “Enjoy Your Trip” Southfield, Mich 2006 - 2009 “Go With Confidence”
    37. 37. 37 Expedia TV PRICE
    38. 38. 38 Expedia TV DESTINATION
    39. 39. 39 Expedia NFL TV Little Association with Expedia. Research found that 60% of 170 Million NFL fans don’t live in the city where their favorite teams play. http://www.expedia.com/daily/promos/deals/nfl/default.asp
    40. 40. 40 Expedia Print 2007: SERVICE 2008: BRAND Benefits of Size for the customer
    41. 41. Expedia Brand CAMPAIGN I: GO LIKE A PRO • Tapped football fans who don’t live in the city of their favorite teams CAMPAIGN II: GET AWAY DEALS • The current work does not deliver on the tagline • Trying to create a bigger brand, while simultaneously pushing cost CURRENT TAG: GO WITH CONFIDENCE 41 BRAND ICON: SUITCASE • Has no meaning • These days suitcases are associated with extra costs
    42. 42. Priceline Media Spend 88% 1% 8% 3%0% TV Online Print Radio Out of Home 2008 92% 0%3%5%0% 2009 (YTD) $11,848,307 $29,314,301
    43. 43. 43 Priceline TV
    44. 44. 44 Priceline Brand CAMPAIGN: PRICELINE NEGOTIATOR • Price focus creates a single message with a clear benefit for customers - distinct in category • Additional product benefits all surround price - no booking fees etc • They explain the “why” -- selling unused/empty rooms for cheaper CURRENT TAG: NO ONE DEALS LIKE WE DO BRAND ICON: SHATNER • Creates immediate brand link • Communicates that there is someone that is negotiating on your behalf
    45. 45. Travelocity Media Spend 62% 2% 36% 0%0% TV Online Print Radio Out of Home 2008 43% 3% 54% 0%0% 2009 (YTD) $15,849,598 $70,886,253
    46. 46. Travelocity TV 46 Focus on the guarantee = Giving customers peace of mind for purchase
    47. 47. Travelocity Brand CAMPAIGN IDEA: TRAVEL WISH • The work supports the fact that travelocity is looking out for you • While they touch on destinations, it’s all about the Treavelocity guarantee CURRENT TAG: YOU’LL NEVER ROAM ALONE 47 BRAND ICON: TRAVELING GNOME • Is looking out for you
    48. 48. 48 Kayak TV Trip Idea # 101 "Visit LA, where the pools are deeper than some of the people." http://www.youtube.com/watch?v=8dFcL49ajXs
    49. 49. Simple and Direct: Travel Search Engine 49 Kayak Online Tactical - No brand building
    50. 50. Kayak Brand CAMPAIGN: TRIP IDEA # XX • Tone had the adventurous and independent traveler in mind, users who enjoy the playful tone • Doesn’t deliver on unique benefit of the search engine CURRENT TAG: MORE OPTIONS. MORE SAVINGS. MORE RESULTS LIFE’S A TRIP 50 BRAND ICON: NONE
    51. 51. 51 Category Overview what is the same? who are the mavericks? shift to Hotel messaging?
    52. 52. 52 They appear to be the same A very substantial number of online shoppers are looking for the same thing: cheaper flights. When brand loyalty is easily trumped by price how can you give yourself a leg up?
    53. 53. 53 Brand Irrelevance Essentials 1. Destination 2. Date 3. Time Suppliers = Secondary 4. Airlines 5. Hotels
    54. 54. 54 Estimated Monthly Traffic Traffic Frequency Addicts Regulars Passers By Other Sites Visited %pop %visits %pop %visits %pop %visits 10.1 M Rank 76 <1% 2% 40% 69% 60% 29% mobissimo, cfares, onetime, cheapair, bookingbuddy, smartfares 5.2M Rank 199 <1% <1% 40% 69% 60% 31% owebd, mobissimo, infoandinsight, priceslinecruise, betterbidding, cfares 4.4M Rank 247 <1% 1% 38% 66% 62% 33% mobissimo, cfares, travelgrove, faredetective, atiflights, cheapair 5.5M Rank 185 <1% 1% 41% 70% 59% 29% travel-savings.com, igougo, cfares, mobissimo, lastminute, airfare, faredetective 2.8M Rank 430 <1% <1% 35% 63% 65% 37% mobissimo, cfares, faredetective, cheapair, travelgrove, smartfares 5.3M Rank 196 <1% 1% 26% 51% 74% 48% faredetective, cfares, vayama, airfare, travelprove, travelation, mobissimo BESIDES TRAFFIC - ALL THINGS ARE BASICALLY EQUAL
    55. 55. 55 Estimated Monthly Traffic Traffic Frequency Addicts Regulars Passers By Other Sites Visited %pop %visits %pop %visits %pop %visits 10.1 M Rank 76 <1% 2% 40% 69% 60% 29% mobissimo, cfares, onetime, cheapair, bookingbuddy, smartfares 5.2M Rank 199 <1% <1% 40% 69% 60% 31% owebd, mobissimo, infoandinsight, priceslinecruise, betterbidding, cfares 4.4M Rank 247 <1% 1% 38% 66% 62% 33% mobissimo, cfares, travelgrove, faredetective, atiflights, cheapair 5.5M Rank 185 <1% 1% 41% 70% 59% 29% travel-savings.com, igougo, cfares, mobissimo, lastminute, airfare, faredetective 2.8M Rank 430 <1% <1% 35% 63% 65% 37% mobissimo, cfares, faredetective, cheapair, travelgrove, smartfares 5.3M Rank 196 <1% 1% 26% 51% 74% 48% faredetective, cfares, vayama, airfare, travelprove, travelation, mobissimo NO ONE IS LOYAL TO ANY SITE
    56. 56. DIRECT 56 Site Selection INDIRECT
    57. 57. 57 They’re not... unless you offer something different
    58. 58. 58 Travel Search Engine Collects travel options from all aggregators and suppliers -- individuals purchase direct Here’s Something Different
    59. 59. 59 Last Year’s Site Visits Orbitz.com; Expedia.com; Priceline.com; Kayak.com; Southwest.com
    60. 60. 60 Top Search Terms Online Travel Agencies Meta-Search Airlines Car Rental
    61. 61. 61 Top Referring Sites Online Travel Agencies Meta-Search
    62. 62. Just a thought, but if users go to an average of 3 sites per search, maybe our objective should be to make sure Orbitz is always one of those three sites. Our Objective
    63. 63. 63 Whose world are we in?
    64. 64. Gender Female 59.3% 59.5% 56.3% 58.7% 60.1% Male 40.7% 40.5% 43.7% 41.3% 39.9% All of the major OTAs have a predominantly female constituency with hotels.com having the highest percentage of its users being female. Priceline skews the most male.
    65. 65. Age Mean Age 44 44 41 46 44 18-34 29.5% 26.5% 37.9% 23.3% 25.7% The mean age across major OTA brands range within early to middle forties. Priceline has a substantially higher percentage of its users being under 35 than its competitors.
    66. 66. Income Mean HHI ($) 122,577 124,320 107,280 119,665 111,017 Of the major OTAs, Expedia users have the highest average income. Priceline users make the least.
    67. 67. Foreign Vacation Travel Any reason 42% 43.2% 36.7% 42.6% 33.7% Expedia users are most likely to engage in foreign travel for some reason. Hotels.com users are least likely.
    68. 68. Air and Lodging Domestic Air Travel 58.6% 57.6% 51.6% 60.9% 49.2% All Air Travel 49.9% 51.2% 41.2% 48% 39.7% Hotel stay within last 12 months 87.4% 86% 84.3% 87.4% 89.3% Expedia users are most likely to engage in foreign travel for some reason. Hotels.com users are least likely.
    69. 69. 69 .com Travel Conventions VS. FUNCTION DREAM
    70. 70. 70 .com Travel Conventions The Guarantee Price Assurance Beach Finder Cheap The Best Price Travel + Price
    71. 71. 71 Vacation vs. Trip Vacation Trip Relaxing Active Escape Gaining new experience Extensive research and planning of tripLittle to moderate research and planning of trip
    72. 72. 72 How does Orbitz see themselves?
    73. 73. 73 The Mission Statement Orbitz is a leading global online travel company that uses innovative technology to enable leisure and business travelers to research, plan and book a broad range of travel products. “Technology is at the heart of what we do. We are focused on building the world’s most intelligent travel marketplace, using technology to match up consumers and suppliers in the most sophisticated ways possible.” -- Barney Harford, 2009 Letter to the Shareholders As a reminder, Expedia touted the fact that they were a “travel marketplace” because of all the online resources they offered across their brands.
    74. 74. 74 How do people see OTAs?
    75. 75. 75 Brand Tags Kayak:Priceline: None for:Expedia:
    76. 76. 76 Closing
    77. 77. 77 Questions 1. How can airline equity best be leveraged? Can we do package messaging? 2. Is site redesign on the table on any level? 3. Is Google Maps’ aerial perspective launching nationwide? 4. Do you have any quantitative and/or qualitative research that would give insight into Orbitz brand perceptions? 5. How would you describe the strength and equity of your visual identity/iconography? What role does “blueness” play? 6. What have been the successes and failures of the Price Assurance program? 7. Who would be your most viable target audience? Most potentially profitable? 8. Why five campaigns in eight years? 9. What is your biggest competitive advantage? Is it technology? 10. What are your thoughts on transparency?

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