Digital Marketing for the Travel Industry in the Web 2.0. Scenario

& Travel

Web 2.0 – Basics & Impact On The Travel Industry Nirat Bhatnagar Co-Founder Chahiye.info

Agenda What is Web 2.0 Web 2.0 Business drivers Value Chain Impact & Opportunities / Risks Content Cycle Impact Assessment Recommendations

What is Web 2.0 really? Beta-test long-tail widgets Remix social life-hacks Syndicate semantic weblogs

What Is Web 2.0 Case Study 1: Travelistic Mike likes the video a lot and puts it on his blog. It is seen by his 1300 daily readers Anne travels to Paris and uploads a video on Travelistic Mike sees the video while planning a trip to Paris 1 2 3

What Is Web 2.0 Case Study 2: Rrove Anne travels to Paris and tags a Moulin Rouge on the Paris map Mike sees the comment while planning a trip to Paris and decides to visit Moulin Rouge. Tags it as night life Geena searches night life in Paris on Rrove and discovers the Moulin Rouge tagged as night life by Mike 1 2 3

What Is Web 2.0 Case Study 3: WikiTravel
The Wikipedia of travel
Background & travel related info on 16,900 + destinations worldwide & growing!
Received the Webby Award for Best Travel Website

Web 1.0= “Web as an information source”; Web 2.0= “The participatory web”
Web 2.0 is about collaborating, sharing, expressing
Blogs, Wikis, Podcasting
There have been fundamental changes in technology and user adoption which have led to a Web 2.0 explosion
Technology evolution; open standards
Network effect; critical mass in almost every niche
Not a fad!
The opportunity (and challenge) from Web 2.0 is significant for all industry players- offline and online. What Is Web 2.0 A few loose definitions

What Is Web 2.0 Web 2.0 Growth Trends Source: Technorati Blogs Social Networking Membership Source: Comscore VC Investment in Web 2.0 Source: Ernst & Young
Significant VC investment in Web 2.0 - its here to stay
User adoption of blogs & social networks to rise rapidly until 2012
Gen X & Gen Y prolific users of Web 2.0
Gradual but certain adoption by enterprises

Why Web 2.0 Adoption of Web 2.0 by enterprise
Campaign : “Up Your Budget”
Tools used : Blogs, Internet Videos
Spend: < USD 500,000
Results
1 million unique visitors
10 million page views
Budget Rent A Car
Adopted by a few early adopters in the travel industry – with impressive results
Adoption increasing as with emergence of platforms / standards emerge & references
Campaign : User submitted video adverts
Tools used : Blogs, Internet Videos, Company Website
Southwest Airlines Starwood Hotels
Campaign : W Hotel designed and put up on Second Life
Tools used : Second Life

What is Web 2.0 Why Web 2.0 ? Value Chain Impact & Opportunities / Risks Content Cycle Impact Assessment Recommendations

Why Web 2.0 Web 2.0 Business Drivers – Cause & Effects Technology Trends Participation By End Users / Seamless Information Re-composition Rich media/ RIAs / Improvements in Usability P2P Reliance In Buying Behavior Reduction of Information Asymmetry Social Behaviour Web As A Platform

Why Web 2.0 Enablers – The Web 2.0 Toolset Blogs Wikis Online Videos Podcasts Photos Creating Content Tagging RSS / Atom Feeds “ Loose” APIs User Participation Open Architectures Applications (maps , Facebook apps etc) Embedding Into Applications Mashups Social Networks Discussion Boards

What is Web 2.0 Why Web 2.0 ? Travel 2.0 Web & Travel Value Chain Travel 2.0 Content Web Value Chain Impact & Opportunities / Risks Recommendations

Travel 2.0 Web & The Travel Value Chain The Travel 2.0 Web Wikis Travel Blogs Social Networks RSS Metasearch Planners Comparator Reviews Tags Commerce Value Chain Supplier / DMC Tour Operator Online Agent / Offline Agent Customer

Travel 2.0 Web & The Travel Value Chain Analysis Approach Travel 2.0 Content Web Travel Value Chain
Customer Perspective
Industry Perspective
Value Migration
Player Specific Strategy
Web 2.0 Business Sensitivity
Value Chain Impact
Opportunities & Risks
Supplier / DMC Tour Operator Online Agent / Offline Agent Customer Wikis Travel Blogs Social Networks RSS Metasearch Planners Comparator Reviews Tags Supplier / DMC Tour Operator Online Agent / Offline Agent Customer Wikis Travel Blogs Social Networks RSS Metasearch Planners Comparator Reviews Tags

Travel 2.0 Content Web Customer Perspective: Confused By Info Overload What organizations need to do
Customers wants a trip and not just a travel component
Travel research has high transaction costs
Information is available piece-meal & proliferation of Web 2.0 content sources leads to confusion
Travel 2.0 players need to help rather than confuse – provide clear paths to planning & purchase.
3 Week Trip To Australia For 2 What The Customer Wants Blog Wiki Travel videos Social network RSS What The Customer Sees Google Metasearch OTA Planner Supplier / DMC Tour Operator Online Agent / Offline Agent Customer Wikis Travel Blogs Social Networks RSS Metasearch Planners Comparator Reviews Tags

Travel 2.0 Content Web Industry Perspective: Value Migration
Reach, content or commerce no longer sufficient on a stand-alone basis
Value has migrated to owning the customer
Commerce Content Reach Social Media Commoditized Supplier / DMC Tour Operator Online Agent / Offline Agent Customer Wikis Travel Blogs Social Networks RSS Metasearch Planners Comparator Reviews Tags

Travel 2.0 Content Web Resulting Strategy: Piecing It All Together Is Key Enabling one stop travel planning & transaction is key.
Wants trips, not components
Transaction costs
Information proliferation
Planning & commerce facilitation are key
Customer Perspective Industry Perspective
Content, commerce & reach value poor independently
Owning the customer & being the SPOC
+ Supplier / DMC Tour Operator Online Agent / Offline Agent Customer Wikis Travel Blogs Social Networks RSS Metasearch Planners Comparator Reviews Tags

Travel 2.0 Content Web Piecing It Strategy: Depends on how you fare on 2 attributes Customer Benefits (Your value add) Customer Costs (pain points) Availability Reliability Time Anxiety Effort Quality Transactability … the size of your user base and what kind of value added travel components you provide. Attributes that drive value to the customer User base Components Supplier / DMC Tour Operator Online Agent / Offline Agent Customer Wikis Travel Blogs Social Networks RSS Metasearch Planners Comparator Reviews Tags

Travel 2.0 Content Web Segment Wise Strategies
A large user base and end to end coverage of travel planning and transactions through Web 2.0 components is the sweet spot
Players with a few components and small user base should
Become best of breed
Feed out to solution players and complementary product players
Players with large user base should aggregate relevant feeds to develop an end to end offering to enter the sweet spot
Components Size - + + Rrove Wikitravel Expedia Tripadvisor Triphub Solution play Product play Planning sweet spot Supplier / DMC Tour Operator Online Agent / Offline Agent Customer Wikis Travel Blogs Social Networks RSS Metasearch Planners Comparator Reviews Tags

Travel 2.0 Content Web An example of putting It All Together : Trip Hub Supplier / DMC Tour Operator Online Agent / Offline Agent Customer Wikis Travel Blogs Social Networks RSS Metasearch Planners Comparator Reviews Tags

Value Chain Impact Assessment Web 2.0 Business Sensitivity: Will You Get Impacted?
Customer purchase patterns in different segments vary in their sensitivity to
Peer opinions
Hard facts
Commodities are fact sensitive; experiences are opinion sensitive
Sharing of opinions impacts experience oriented / less defined products far more
Customized tours Impact of Facts Impact of Customer Opinions - + + Standard tours Flights Tickets Boutique hotels Event tickets Cruises Car rentals Base Impact Strategic Impact Supplier / DMC Tour Operator Online Agent / Offline Agent Customer Wikis Travel Blogs Social Networks RSS Metasearch Planners Comparator Reviews Tags

Value Chain Impact Assessment Base Impact
Direct channel to communicate with customers
Customers & critics get an easy platform to discuss organizations. Form cliques
Additional medium beyond traditional PR & marketing
Participate in community discussions
Showcase thought leadership
Bypass traditional PR for speed & customer intimacy
Build deep customer relationships
Leverage word of mouth to develop the brand
Corporate indifference to the new Web
Negative blog swarms
Being viewed as plastic / unauthentic
Impact Opportunities Threats Supplier / DMC Tour Operator Online Agent / Offline Agent Customer Wikis Travel Blogs Social Networks RSS Metasearch Planners Comparator Reviews Tags

Value Chain Impact Assessment Case Studies & Do’s / Don’ts Promotion Crisis Management Success Failure
Assign adequate marketing resources
Identify mavens and understand context
Listen … and then talk … to add value
Showcase thought leadership
Do’s
Be too “salesy” or pushy
Be un-authentic
Don’ts Supplier / DMC Tour Operator Online Agent / Offline Agent Customer Wikis Travel Blogs Social Networks RSS Metasearch Planners Comparator Reviews Tags

Value Chain Impact Assessment Strategic impact for sensitive product categories Supplier / DMC Tour Operator Online Agent / Offline Agent Customer Impact Opportunities Risks Supplier / DMC Tour Operator Online Agent / Offline Agent Customer Wikis Travel Blogs Social Networks RSS Metasearch Planners Comparator Reviews Tags
Greater reach/ visibility
Disintermediation
Context relevant distribution / promotion
Service quality exposed
Comparability
Product design based on most popular ratings online
Customer service becomes key
Bundling for price opacity
Service quality exposed
DIYers can go direct to local suppliers
Reduction in need/ value of advice
Comparability
Offline Agent
Sell complex / difficult itineraries
Target non-web savvy market share
Personalized marketing / offers to customers on your database
Go online
Leverage Web 2.0 tools
Position yourself as a travel guru reviewer on social media
Online Agent
Invest in Web 2.0
DIY travel
Further disintermediation
Biggest beneficiary
Info overload
Comprehensive, quick & effective comparison & planning enabled
Collaboration / group travel made easier

Recommendations To Summarize
Web 2.0 is already impacting all types of industry players
Online players will need to figure out their strategy along:
Re-assessing customer value proposition
Sharing content and tools: data in and data out (‘co-opetition’)
Bricks & Mortar players will need to harness web 2.0
To connect to customers, foster loyalty
To understand (and even influence) demand
… and fine tune offering
There is no single formula. Be prepared to experiment and figure out
Social media is an important part of your marketing agenda

Thank You

http://www.francoisgoube.com	136
http://www.slideshare.net	80
http://www.voxinablog.com	57
http://www.wikio.fr	48
http://vanessajuloux.typepad.fr	27
http://157.24.205.17	5
http://www.lmodules.com	1
http://translate.googleusercontent.com	1
http://wildfire.gigya.com	1
http://cleverwood.wiki.zoho.com	1
http://webcache.googleusercontent.com	1

Digital Marketing for the Travel Industry in the Web 2.0. Scenario

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Digital Marketing for the Travel Industry in the Web 2.0. Scenario — Presentation Transcript