When Marketing Becomes Digital - etourism forum


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When marketing becomes digital in tourism. The etourism-forum presents excellent opportunity to link marketing in tourism in digital scape by N.Christodoulidou

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When Marketing Becomes Digital - etourism forum

  1. 1. Traditional Marketing Becomes Digital By Dr. Natasa Christodoulidou, Ph.D. California State University nchristodoulidou@csudh.edu E-Tourism Forum 2009
  2. 2. Background • Born in Nicosia • Moved to the US in 1992 • Received B.Sc., M.Acc., MBA and Ph.D. • Worked for various companies in the United States • Currently a faculty member at CSUDH in Marketing and keynote speaker for conferences around the world • Resides in Las Vegas, Nevada
  3. 3. Our world is changing! • Let us take a few minutes to watch the following video. • Sony played this video at their executive conference this year. Caution: It may leave you a little breathless. • http://www.youtube.com/watch?v=cL9Wu2kWwSY
  4. 4. SO WHAT DOES IT ALL MEAN? • China will soon become the #1 English Speaking Country in the world • China should be a target for promoting tourism and travel in the English language • Top 10 demand jobs did not exist in 2004 • This shows that we don’t know what type of professionals we want to attract in our tourism and travel market • Text messaging • Total number of messages sent and received every day exceeds the total population of earth • 1 out of 8 couples in the United States last year met online • Advertising space • There are over 200 million users in My Space • Potential advertising and exposure
  5. 5. Reaching your audience • To reach 50 million customers it took: • The Radio – 38 years • TV – 13 years • Internet – 4 years • Facebook – 2 years • So this question leads us to the bigger one which is how do we reach our audience for the Cyprus Market?
  6. 6. Travel Intermediaries • An online travel intermediary is an online travel agent that sells direct bookings with hotels, airlines, car rentals, etc. • Examples: • Expedia.com • Travelocity.com • Orbitz.com • Hotels.com • Studentuniverse.com
  7. 7. Travel Meta Sites • Travel meta search engines are a new generation of travel search engines • Examples: • TravelAxe.com • SideStep.com • Cheapflights.com • Kayak.com • Opportunity or threat to online travel agencies (OTAs)?
  8. 8. Metasite example
  9. 9. Popular Travel Meta Search Players Sidestep Kayak • Most established player • Fastest growing in space • Side-by-side comparisons • Goal to be comprehensive (all • Downloadable toolbar of the earth’s hotels) • Partnership with • Multi-city itineraries Amazon.com • Kayak Network marketing and • Established relationships advertising service with leading hotel • Buzz (history of user searches) companies • AOL/Pinpoint Travel alliances • Flight plus hotel (dynamic • Consumer-contributed content package) searches • Integration with AOL Instant • Search by activities Messenger • Affiliate and co-branded programs
  10. 10. Electronic Travel Distribution Pyramid Adapted from Brewer, Christodoulidou, and Rothenberger ? E-Meta Travel Sites E-Travel Sites Traditional Sales Channels, GDS, Group Sales, Consolidators Travel Products (hotel rooms, airline seats, rental cars etc.)
  11. 11. Looking at Travel Meta Search from a Hotelier’s Perspective PROS CONS • Another way to increase reach • Semi-direct model and visibility, especially with increased relationships forming • Increases threat of between meta search engines commoditization with added and popular Internet portals focus on price and comparison- shopping • Opportunity to attract unbranded customers • Distorts look-to-book ratios • Alternative to GDSs, GNEs, • May have adverse impacts to and OTAs, shifting power to RevPar brands (i.e., customers trading down) • Book direct allows brand to • May influence customers to build, own, and manage book with competitors and customer relationship third-party sites • Potentially cheaper distribution option (depending • Segment is still immature and upon contract terms) evolving • Segment is gaining interest • Still unclear if meta search is and some traction producing incremental • Opportunities to up-sell bookings or just redirecting customers when they arrive at bookings brand site • Consumers continue to shop multiple sites/services (upwards of 5 on average)
  12. 12. Summary • Use the power of E-Marketing to: • Attract new customer markets • Enhancing existing ones • Customer retention • Travel suppliers, Online Travel Agents, and Meta Search Engines will be fighting for control of the distribution process and ultimately the consumer • For more, on the details the customer side, please attend tomorrow’s presentation!
  13. 13. Thank You Follow-up questions or presentation requests can be emailed to (business cards also available): nchristodoulidou@csudh.edu Las Vegas Mobile number: +1 702 292 3952 Nicosia Mobile number: +99 55 49 49