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Turkish.online.travel.market.2009 Document Transcript

  • 1. Turkish Online Travel MarketMultinational or local companies, which model will succeed in TurkeyDevrim Dirikddirik10@gsb.columbia.eduColumbia Business School
  • 2. Final Paper1. ObjectivesThis paper analyses Turkish online travel market and viability of local and global business models.Online travel market which involves selling hotels, airline tickets, packages via a specially designedweb site is the key market of this analysis. The market has a very wide description and setting theborders is difficult due to sophisticated behavior of the consumers. According to Pearson Dictionaryonline travel is defined “The acquisition of information and the purchase of travel-related servicesfrom businesses selling on the Internet”. Expedia, Priceline, Orbitz, Tatil.com, Tatilsepeti.com etc. areselected companies which represent operators in this market.Due to limited reports and data about the Turkish market, interviews with market experts andcompany representatives will be key resource in the analysis. Porter’s Five Forces is used to analyzecompetition in the industry. Special characteristics of the industry, challenges and opportunities inthe market and future expectations regarding viability of business models will be key focus areas.This analysis concludes that, Turkish market will be dominated by local players in the medium term.Multinational players will develop strategic partnerships with local operators to penetrate into themarket. This will accelerate their brand building process, but stand alone viability in the medium runis difficult because of specific challenges of the Turkish market. In the long run, market penetration ofinternational players is inevitable due to their scale and operational advantages.2. Online Travel Market in TurkeyInternet and TurkeyBacked by strong economic growth, Internet industry has been developing fast in the last years inTurkey. Latest figures show that the number of Internet users reached 26.5 million users, 35% of total 1
  • 3. Final Paperpopulation (Exhibit 1b). In the number of users, the country ranks as the 14th in the world (Exhibit 1a).Although broadband started in 2003 the number of broadband subscribers reached 5.7 million as ofDecember 2008 (Exhibit 1c). As Internet penetrates the mass market further, e-commerce has alsoobserved significant growth and it is expected to reach $8.9 billion in 2009 with a 61% year on yeargrowth according to estimations of EBay Turkey (Exhibit 4). Global e-commerce players have startedto strengthen their local presence in line with growing market. In 2006, Ticketmaster acquired Biletixand Google opened Turkish office, one year later EBay bought minority stake in GittiGidiyor.com, aTurkish online marketplace. In January 2008, German based networking company XING acquiredcember.net, the leading online business network. (Exhibit 2) Among the other global companies,Facebook showed a spectacular success in Turkish market. As of July 2009, Facebook has 12.4 millionmembers in Turkey with a 257.4% growth in the last 12 months and that makes Turkey the thirdbiggest market of the company (Exhibit 3).According to a study conducted by GfK Turkey in 2006, Internet users belong to upper level of incomeand socio economic status (22% of users are university graduates, 39% speaks English, and 77% is lessthan 34 years old). Although Internet usage is expected to penetrate into the lower level of thesocioeconomic pyramid in line with rapid growth, Internet users will remain a lucrative market tofocus on.Online travel marketDespite the growth in e-commerce, global online companies remained hesitant about Turkey andnone of them have entered the market so far. As income levels of Turkish citizens increase day by dayand holiday habits of Turkish people are changing, the online travel market grows. Detailed analysisregarding characteristics of the market is given in the following sections of the report. Size of Turkish 2
  • 4. Final Paperonline travel market is very difficult to estimate as there are neither official statistics nor anypublished reports about the industry. Euromonitor International (Euromonitor) publishes annualindustry reports about domestic, inbound and outbound tourism flows in Turkey and these reportsmerged with market experts’ estimations will be used as a basis for further analysis.According to Euromonitor, there were 20.7 million domestic trips with a total value of 7 billionTurkish Lira-TL (1 USD ≈ 1.5 TL) in 2007. Expenditure per visit has been declining since 2003 and thistrend is expected to continue due to rising competition among tour operators, hotels, airline andcoach companies. (Exhibit 5a) Outgoing tourism market has also showed significant growth. Thenumber of outgoing tourists increased by 5% and reached 8.7 million in 2007. The value of themarket is around 3 billion TL. (Exhibit 5b) Turkey is a very attractive tourism destination and it isattracting more and more tourists every year. However assuming that incoming tourists are usinglocal agents or companies in their home country to organize their trips, this market is out of scope ofthis study.Interviews conducted with local industry experts confirmed Turkish domestic travel market in linewith Euromonitor’s estimations. However, there are sizable differences in outgoing market. Especiallyexpenditure per visit value is very difficult to confirm because 349 TL per visit seems very low for anoutgoing visitor.Definition of online travel bring additional burden while estimating the size of the market in Turkey.Turkish Airlines, local coach companies, rental car companies, local and international hotels arecollecting a considerable amount of their revenues through their e-commerce operations. Accordingto the field research conducted by Nielsen for Google Turkey in 2009 (Nielsen field research), 23% ofhotel guests are using Internet in their reservations. Share of online reservations of Turkish Airlines is 3
  • 5. Final Paperaround 10% and this will contribute around 100 million TL to the market. Counting these companies’revenues will increase share of online travel in the total market. This paper analyses operationaladvantages of a local and international online travel companies. Therefore previously citedcompanies and their revenues will be kept aside. Revenues of companies which are acting as middlemen to promote travel products (flight, hotel, car rental and other services) online will be key focusarea of this study. If a customer starts his or her transaction online but finishes offline, thistransaction will be also included in Turkish online travel market. According to these assumptions, thesize of online market is estimated around 300,000 trips with 1.2 billion TL (app. 400 TL per trip) in2008. The figure is still very controversial because of unique consumer behavior in Turkish market.Special Characteristics of Turkish Travel MarketHaving a second small vacation homes or chalets to spend the summer in coastal regions of Turkey isvery widespread phenomena among high and mid income levels of Turkish society. This tendencycurbed development of Turkish travel market. However introduction of all inclusive packages,increased exposure to Western lifestyles, rise of historical tourism and improved relationship withneighbors (e.g. Greece, Syria etc.) and introduction of low cost airlines with the positive effect offlexible payment options (zero interest rate up to one year installment opportunities by credit cards)have driven many Turks to travel more. Tour operators started to focus on middle income consumer.Discounts to early birds in all inclusive packages have become very popular in the market. Touroperators adopted Internet very quickly and started to use Internet for informational andpromotional purposes rather than for online transactions. As a result, selling travel packages onlinehas become a widespread phenomenon. 4
  • 6. Final PaperTraditional package holidays are very common in Turkish market. These packages are usuallyprepared by travel agents and tour operators. For domestic travelers, packages are usually all-inclusive, combining transportation and accommodation components; for outgoing travelerspackages include transportation, accommodation, local guidance and even visa handling for thetarget country. Travelers usually have no flexibility, package holidays are predetermined. Packagesare also offered on the Internet but offline transaction is still the major part of the deal.Turkish travelers are lookers more than buyers; they research online but prefer offline systems topurchase a product. In a typical purchasing action, a customer conducts research online aboutdifferent alternatives. After selecting the service he or she sends an inquiry via a form to buy apackage. A follow up call from the agent does not finalize transaction and the customer usually visitsphysical office of the agent. The process is very wide among online travelers. According to the Nielsenfield research, only 20% of customers finalize their acquisition via Internet and 71% of them visit thetravel agency to buy a travel package. Customers who are not purchased online stated that theywanted one to one interaction with the customer representative before reaching a final decision(53%). In addition to that 38% of them finalized the transaction offline because of their concernabout personal security and trust for online purchases. Lack of fully online transactions is the mainreason which curbs global players’ chance of viability in the market.Porter’s Five Forces will be used to understand the competitive dynamics in the industry further.Industry Analysis (Porter’s Five Forces)Bargaining power of suppliers: Airline companies have very high bargaining power because onlinetravel operators have not reached a scale which will force these companies. Although private airlinescaptures considerable amount of market share, Turkish Airline’s market share is still more than 50%. 5
  • 7. Final PaperIn addition to that, 80% of ticket sales of Turkish airlines are still made via local travel agents. Anonline traveler will not able to compete with these travel agents because of ongoing relationship ofthese agents with corporate and individual customers. This means that with their limited size, onlinetravel companies are unable to exert pressure on airlines to receive additional discounts. Car rentalcompanies usually use their own websites and offline channel to sell their services. Existing onlinetravel companies do not offer car rental products. On the other hand, hotel market is much morefragmented with thousand of hotels spread all over Turkey. In domestic market, online travelcompanies are able to bargain for special discounts i.e. online travel companies are more powerfulagainst hotels.Bargaining power of buyers: Due to transparency of Internet, customers are becoming more andmore powerful. Although threat of substitute product is low, the key problem is retaining customers.There are no network effects, cost of multi homing is almost zero and price is key decision inpurchasing decision. Existing local companies invest in their brand names to develop a loyal customerbase. One of the representatives of local companies stated that building brand loyalty is very difficultdue to nature of the industry. Especially long holidays are booked once in a year and customers arenot necessarily loyal in their next purchase.Rivalry among existing competitors is also low due to strong growth in the industry. Majority ofindustry experts estimated double digit growth in online travel industry in the next five years not onlydue to strong growth in tourism industry but also due to higher online retail adoption. Fast growingnature of the industry prevented stiff competition among players. Top players in the market areTatilsepeti.com, Tatil.com, Gezisitesi.net and BookinTurkey.com. (Exhibit 7) In addition to that, brickand mortar travel operators (MNG Tour, Jolly Tour, VIP, Setur, Pronto Tour etc), which have 6
  • 8. Final Paperwidespread representative network around Turkey, have also started to sell their products online.Unlike international travel operators, local companies are not offering online and real-time bookingsover the Internet. Local players offering hotels abroad are using infrastructure of existing globalplayers. For instance, Tatilsepeti.com is acting as the local partner of Expedia by offering internationalhotels via its website and call center. Although Internet enables borderless operation of companies,literally there are no international online travel companies in Turkey i.e. none of the companies hasestablished a local physical office. Some of the companies have seized opportunity in Turkish marketand they started to offer their Turkish website as well (Hotels.com, HRS.com). However theirpenetration to the market is very limited since they do not have a physical presence.Threat of new entrants is very high. Industry experts stated that, due to limited control and low costof building web sites, even newly licensed operators launch online portals which promote productsonline. Sales are shifting to the Net, further improvements in payment systems, travelers growingexperience with online shopping and increased confidence in online security will encourage morefirms to enter online travel business. International companies have major competitive advantagesdue to their scale advantage but local companies leverage their local market knowhow to protect themarket. Growing nature of industry will create room and opportunity for both types of companies.Porter’s five forces analysis shows that the industry is very prone to the entry of new players. Turkishonline travel industry will accommodate more and more players in the future. Representatives oflocal companies interviewed for this study stated that many international players have beenanalyzing the market and conducting meetings with them to assess opportunities in the market.However there are specific challenges and opportunities of the Turkish market. An online travelcompany should be aware of these trends while conducting market entry strategy to the market. 7
  • 9. Final Paper H L M H LChallenges and Opportunities in the IndustryOpportunities ChallengesStrong economic growth: Although the economy is Economic crisis: Recent economic crisis is expected tohit by global financial crisis, Turkish economy is have negative effects. Growth in market might delay.expected to continue its growth in the medium and Mushrooming online travel agents: Due tolong term. Expectations of Euromonitor show unregulated industry structure, some companiessignificant growth in the next five years. defraud online travelers by charging travel costsGrowing usage of Internet: Internet penetration is without fulfilling obligations. Recently, nationalgrowing in Turkey. Favorable demography of newspaper published fraud story of an online travelInternet enabled population (higher income, young, company which cheated customers and charged 1.5and willingness to travel) looks promising for online million TL. These companies damage the reputationtravel companies. of the industry.Increase air travel: Air travel contributes to online Decreasing spending per trip: Average expendituretravel companies’ revenues significantly. Among the per trip has been decreasing in the market accordingtype of transportation methods, air travel showed to Euromonitor. Turkish consumers are becomingthe most significant growth. Increased competition price sensitive and that can bring online companiesand entry of private competitors made Turkish air advantage over brick & mortar agencies.transportation more attractive for middle income Security concern: Credit card penetration in Turkey istravelers. high but security in online transactions is still a majorGrowing outgoing market: Due to growing concern of consumers.prosperity and changing lifestyle, middle incomes Branded operators: Tour operators have especiallyalso started to travel abroad. Organized tour groups captured Turkish outbound travel market and theyare very popular way of outbound travel. also started their online operations. In order toPositive effect of expanding incoming market: As compete with these players, e-travel companiesthe number incoming tourists via air travel increase, should focus on brand building and marketing.the more competitive prices will be offered to Limited size of the market: Average spending per tripoutgoing tourists because airlines offer attractive is still low compared to other developed markets.prices for their return trips to boost utilization of 8
  • 10. Final Papertheir flights. Relationship with hotels: Existing hotel room distribution system is based on quotas. Brick andImprovement in payment conditions: Installment mortar travel agencies usually make seasonalin purchasing by using credit card (zero interest rate agreements with local hotels to sell an agreedup to 1 year installment) boosted especially capacity of the hotel. Since online players are unableoutbound travels. to create adequate scale, they either act as a middleman between customers and brick and mortar operators or have their own brick and mortar operator to reach an adequate scale. Package holidays: Package holidays (travel + all inclusive hotels) are very widespread in the market. Customers are not very keen on to book their own hotels and travel using an online system. Tour operators create a number of limited packages and sell online.2. Advantages of business modelsAdvantages of a local playerLocal taste: Existing local players have localized all their content and operations to suit the Turkishtravelers’ flavor. For instance, if a customer who is willing to travel to Italy enters tatilsepeti.com’swebsite, he selects one of existing tours offered by a local operator which is using tatilsepeti.com toadvertise and sell its packages. In addition to flight and hotel accommodation, visa handling, localguidance, transportation from the airport, transportation between cities in the target country andtravel insurance are all covered by this service. The same products and service are not offered at thesame price by an international operator.Significant weight of domestic tourism: Although growth in outbound tourism accelerated in the lastyears, majority of the travels are either business trips or visits of relatives living outside of Turkey. In2007 there were 20.7 million domestic trips in Turkish market. Industry experts believe that only 1.5million out of 8.6 million outgoing trips were leisure travelers. In existing system, business travelers 9
  • 11. Final Paperare hard to capture by online operators because corporations usually have ongoing relationship withexisting local travel agents with which developing online companies are not able to compete. On theother hand, travelers visiting their relatives abroad usually buy plane tickets via airline operators’website, call centers or agents. Local travel agents (both brick & mortar and online) also offer lowprice vacation packages with high quality customer service and majority of leisure travelers arecaptured by travel agents. Unlike in other European countries where outgoing travel outweighsdomestic travel, Turkish travelers will remain domestic tourism oriented even in the long term. Visarequirements, language and cultural barriers, low share of customers who can afford outboundtravels will support this trend for a long run.Existing customer base: Existing online travel companies and tour operators have captured a largecustomer base. Although retaining customer loyalty and creating network effect are difficult in theindustry, local companies use marketing tools to improve repurchase rates.Relationship with local hotels: Although more and more Turkish citizens prefer going abroad,domestic tourism market will continue to be key segment in the industry. Existing relationship ofcompanies with local hotels will give them a competitive advantage over new comers to the market.Searching online - buying offline: Existing local players have either brick & mortar travel companiesor they are in partnership with one of them. This partnership enables them to leverage their onlineand offline presence. In addition to that, all online travel companies offer call center solutions to theircustomers.Tailor made payment conditions: Local companies offer zero interest rate up to one year installmentif travelers use their credit cards in payment. For customers who are not keen on paying by creditcard, local companies also accept wire transfer and cash. Usually additional discounts are offered for 10
  • 12. Final Paperthese customers due to less transaction costs. Unless a multinational company opens a local officeand makes special agreements with credit card companies in Turkey to promote payments forservices in installments, it cannot compete with local companies in payment conditions.Advantages of a multinational playerGlobal purchasing power: Their scale advantage enables multinational companies to receive lowerprices from suppliers. They offer low-price guarantees and local companies are not able to competewith them in price in outgoing travel (excluding package tours). Even existing operators in Turkishmarket rely on the international players’ infrastructure. Global companies also negotiate with hotels,airlines and rental car companies to offer better deals for the industry’s overcapacity. By gettingsignificant discounts from their suppliers, they act as a vast clearing house and attract customerslooking deals. A local company will never have such a purchasing power.Diversification of risks: In contrast to local players, multinational players are not dependent on asingle market and they diversify their risks by operating in multi markets. An economic slowdown inTurkey will be compensated by other markets’ performance. On the other hand, local companiesdepend on a single market and they are very prone to external pressures (economic crisis, rising fuelprices etc.) because of their limited resources.High brand awareness: Global companies pour vast resources to build a strong brand name. Thrustand brand awareness are very important in online transactions. Because of uncertainty in demandand other risks involved in the industry, every year Turkish press in covering victims of bankruptedtourism operators. This image of the industry favors strong brands. A multinational online travelcompany will build a strong brand and thrust in the industry in the long run. 11
  • 13. Final PaperSpecialization: International players are able to cater a wider spectrum of travelers by having a widerportfolio of brands. For example Expedia has Hotwire for budget travelers and Hotels.com forcustomers only looking for Hotels. A local company cannot focus on specialization due to lack ofadequate scale.Learning effect and market know how: A multinational player will bring its globally accumulatedknowhow to the market. Technological improvements will be first adopted by these players and thatwill entice Turkish customers.Diversity of services: Multinational players offer more hotels and vacation packages through theirwebsites compared to local players. Unless a local player become a partner/affiliate of multinationalonline travel operator, the company cannot offer deals for a hotel chain located outside of Turkey. Inaddition to that, travelers using multinational companies’ services have maximum control over theiritinerary. Customers can select hotel, flight, car rental, tour guide etc. individually whereas localcompanies usually offer “predetermined” vacation packages.Exhibit 8 summarizes advantages of local and international companies in Turkish market.3. Future expectations (which model will succeed in Turkey)Currently, Turkish online travel market is fully controlled by local players. The ratio of fully onlinetravel bookings is almost ignorable (except flight bookings through local airline companies) andtravelers prefer to finalize their deal offline. Although international companies such as Booking.com,HRS.com, Hotels.com started to offer their website in Turkish, offline nature of transactions andpreviously cited advantages of local players deteriorates these players chance in the market. In orderto compensate for their disadvantages, international companies started to integrate local operatorsto their affiliate programs. Tatilsepeti.com became white label partner of Expedia in international 12
  • 14. Final Paperhotel reservations in 2009. Visitors see Expedia’s hotel offerings available for booking through awhite label portal at Tatilsepeti.com. Local company is also promoting Expedia’s name in its webpageto gain credibility for the nondomestic hotel reservations. Both local and multinational players arebenefiting from affiliate relationship. This trend is expected to continue and international playersinterested in Turkish market are expected to find local partners in Turkey (Exhibit 9).In the long run, Turkish consumers will become more receptive to online travel booking as theirreliance on online services grows. Key success factors in the market will be customer satisfaction,price and infrastructure. Scale and infrastructure favor multinational players in the market. By usingtheir global presence and vast resources, multinational travel operators will improve their websites,offer lower prices and create trust in their brands. On the other hand, in the short and medium term,customer satisfaction favors local players which are able to offer better customer service andpayment conditions. Because of relatively small size of Turkish market, multinational players will notbe able to develop tailor made solutions for the market i.e. they will hardly compete with locals inoffering offline service, better payment conditions and customer service. Therefore the success oflocal or multinational model depends on the pace of transition of Turkish market from infancy tomaturity. Growing penetration of Internet, rising disposable incomes and emerging travel demandoffer significant growth potential for multinational companies. Existing domestic players and Turkishstyle of online travel business will force them to create strategic partnerships and joint ventures withexisting local players.In the long run, market dominance by multinational players is inevitable due to their operational andscale advantage. In order to capture market share, these companies should convince the customersto create their packages dynamically. Offering installment in payments and having local call center 13
  • 15. Final Paperare inevitable absolute necessities for these operators. In addition to that, business segment, which isexpected to grow rapidly according to Euromonitor’s expectations, will be star market segment. Withits less price sensitive nature, business travelers are more open to bundle products during reservationand multinational companies should target this segment to generate quick return to theirinvestments.Initially, international companies will lack network effect. By partnering with existing travelcompanies, multinational companies will penetrate into the market faster. In addition to that,existing customer base of major credit card companies or GSM operators will provide fuel for growth.Bundling travel products or offering discounts to the existing customer base of these companies inline with company’s target customer strategy will accelerate market penetration. 14
  • 16. Final PaperAppendixExhibit 1a: Total number of Internet users, by country, millions, March 2009 United States India Germany France Korea South Italy Turkey Canada Vietnam Argentina 0 50 100 150 200 250 300 350Exhibit 1b: Top 20 countries with highest Internet penetration, %, March 2009 United States Canada Spain France Argentina Turkey Brazil Mexico China India 0% 10% 20% 30% 40% 50% 60% 70% 80%Source: http://www.internetworldstats.com/top20.htm 15
  • 17. Final PaperExhibit 1c: Total number of broadband subscribers, by country, millions, December 2008 Japan France Korea Canada Mexico Turkey Poland Sweden Denmark Czech Republic 0 10 20 30 40 50 60 70 80Source: OECD Broadband statistics [oecd.org/sti/ict/broadband]Exhibit 2: Penetration of international players into Turkish e-commerce marketSource: Desk Search 16
  • 18. Final PaperExhibit 3: Total number of Facebook users by country, July 2009 users, Rank Country Number of Facebook users 12 month growth % 1 USA 69,378,980 149.50% 2 UK 18,711,160 67.50% 3 Turkey 12,382,320 257.40% 4 Canada 11,961,020 24.30% 5 France 10,781,480 338.10% 6 Italy 10,218,400 1980.70% 7 Indonesia 6,496,960 2997.30% 8 Australia 6,053,560 88.20% 9 Spain 5,773,200 729.60% 10 Colombia 5,760,300 138.80%Source: FacebookExhibit 4: Turkish e-commerce market total volume & year-on-year growth, millions USD, 2007Source: Turkish Internet Sector Overview by Sina Afra (EBay Turkey, Member of Board), May 2008Exhibit 5a: Domestic trips by purpose of visit, total volume, expenditure, expenditure per visit, TL, 2002-2012 , 2002 2002 2003 2004 2005 2006 2007 2008E 2009E 2010E 2011E 2012E Domestic tourism (# of visits) 16,377 16,706 17,399 18,359 19,599 20,723 22,132 23,704 25,418 27,335 29,466 - Business 4,635 4,811 5,115 5,508 6,042 6,292 6,623 6,981 7,374 7,815 8,302 - Leisure 11,742 11,895 12,284 12,851 13,558 14,431 15,509 16,723 18,044 19,520 21,164 Domestic Tourist Expenditure 6,241 6,724 6,951 7,120 6,742 7,045 7,398 7,723 8,058 8,389 8,724 (mn TL) Expenditure per visit (TL) 381 402 399 388 344 340 334 326 317 307 296Source: Euromonitor, Tourism Flows Domestic - Turkey 17
  • 19. Final PaperExhibit 5b: Outgoing Trips by Purpose of Visit, Total volume, Expenditure, Expenditure per visit, TL, 2002-2012 000 people 2002 2003 2004 2005 2006 2007 2008E 2009E 2010E 2011E 2012E Departures (# of visits) 5,080 5,840 7,548 8,098 8,275 8,671 9,026 9,478 10,023 10,722 11,515 - Business departures 1,427 1,628 2,085 2,250 2,352 2,439 2,535 2,650 2,780 2,951 3,142 - Leisure departures 3,653 4,212 5,463 5,848 5,923 6,232 6,491 6,828 7,243 7,771 8,373 Outgoing tourist expenditure (mn 2,676 2,847 2,998 3,318 2,815 3,026 3,137 3,278 3,439 3,638 3,849 TL) Expenditure per visit (TL) 527 487 397 410 340 349 348 346 343 339 334Source: Euromonitor, Tourism Outflows TurkeyExhibit 6: Domestic travelers vs. outgoing travelers in turkey 18
  • 20. Exhibit 7: Major online travel companies in Turkey*Company URL Online since Traffic rank by Alexa DescriptionTatil.com www.tatil.com 15 May 1997 47,874 First local online travel company in Turkey founded by GTS Travel which also owns internationally active online operators e.g. otels.comTatilsepeti.com www.tatilsepeti.com 24 May 2003 25,036 A specialized portal to sell travel packages of brick and mortal operators via its website. The company is also a member of Expedia Affiliate Partner Program. Visitors are able to reserve hotels via tatilsepeti.com’s website or call center by using Expedia’s infrastructure.Gezitesitesi.net www.gezisitesi.com 07 Nov 2005 68,708 Gezisitesi is a subsidiary of local conglomerate Dogan Holding which is also active in broadcasting, printing and news media sectors.BookinTurkey.com www.bookinturkey.com 28 Jan 2000 386,630 BookinTurkey is another company owned by a local conglomerate, Koc Group. The company claims that it is the only Turkey Specialist Travel Portal that can get online and real-time bookings over the Internet due to its internally developed program.* Most of these companies use Internet to promote their products but they do not allow customers to book real time.Source: Interviews with industry experts and Alexa.com 19
  • 21. Exhibit 8: Advantages of local and international online travel companies in Turkish marketExhibit 9: Partnership between local and multinational online travel operators 20
  • 22. Exhibit 10: Interviews conducted for the study*Name Type Position Company / InstitutionNedim Paltura Local online travel company Founding partner Tatilsepeti.comYavuz Tosun Local online travel company General manager Gezitesitesi.netBasak Bilmen Local online travel company General manager BookinTurkey.comGiray Hudayioglu Travel search engine General manager Seyahatix.comGüneş Karamullaoğlu Academician Vice Chair Bilkent University, Tourism and Hotel Management DepartmentGonul Yildirim Media PR Manager The Travel Media Association of TurkeyFehmi Kofteoglu Details of interviewees are kept Editor Media Chief Turizmgazetesi.com (Local online newspaper for Tourism industry)Ali Yilmaz confidential inexpert public version ofIndustry Head Market the the paper GoogleYalcin Parmaksiz Market expert E-marketing coordinator EBIHakki Arikan Market expert Marketing manager EBay TurkeyCenk Cevik Market expert Manager, New Technologies Amadeus TurkeyGuney Yasavur Market expert Business Development Manager SuperonlineSelcuk Ergin Market expert Consultant Freelance IT Consulting to Travel OperatorsBurak Turgut Market expert General manager Seyahatfikirleri 21
  • 23. Resources:1. Travel Behavior in Turkey. Istanbul: Nielsen Research, 2009.2. Afra, Sina. Turkey Internet Sector Overview. Istanbul: Ebay, 2009.3. Celebi, Erkan. “By changing its Internet address, Anis Tours is faking travelers.” Hurriyet, 3 August 2009: 10.4. “Pronto Tour will triple its revenues in 5 years”. 18 June 2009. 10 July 2009.<http://www.kobiden.com/haber.asp?id=2191&baslik=Pronto+Tur+cirosunu+5+yilda+3e+katlayacak>.6. “Tourism Flows Domestic – Turkey”. 11 December 2008. 15 July 209. <http://www.euromonitor.com >.7. “Tourism Flows Inbound – Turkey”. 11 December 2008. 15 July 209. <http://www.euromonitor.com >.8. Interviews (please see Exhibit 10) 22