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My Presentation at TDCEE Prague 2007
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My Presentation at TDCEE Prague 2007

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MY presentation at the Eyefortravel travel distribution conference held in Prague 2007

MY presentation at the Eyefortravel travel distribution conference held in Prague 2007

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My Presentation at TDCEE Prague 2007 My Presentation at TDCEE Prague 2007 Presentation Transcript

  • Name Title Company
    • What are the main drivers of change in consumer behaviour?
    • What are the main reasons for consumer reluctance to book online?
    Presented by Petar Panayotov Head of Marketing TravelStoreMaker.com
  • CEE Online Travel Financial & Marketing Directors dilemma The two went to a country to sell shoes. Upon arrival they noticed everyone was bear-footed. Financial director: Let’s get out of here, nobody has money for shoes! Marketing director: This is a huge market for us, nobody wears shoes! CEE is a land of opportunities for growth in online travel!!!
  • AGENDA:
    • Reasons & Scope
    • Current CEE online market
    • Main drivers for change
    • Main reasons for reluctance
    • Overcoming reluctance
    • Q&A
  • Reasons & Scope
    • TravelStoreMaker.com is a leading US online travel technology provider with operational HQ in Sofia
    • We spot great opportunities in CEE6
    • We are going to set up a B2C subsidiary
    • We plan to launch a pan-CEE6 online travel agency
    We conducted an in-depth market research to identify the potential of CEE6
  • CEE Online Travel
    • CEE6(BG, CZ, HU, PL, RO, SK) most important
    • Recent EU members
    • 100 million consumers - $ 4 billion travel spend
    • Economic growth
    • All types of travel growth
    • Internet & CC penetration growth
    • LCC growth
    • Non-consolidated travel agencies market
  • CEE Online Travel
    • Highlights
    • Annul GDP growth rate 5%+ (2,5% EU15 average)
    • Internet Penetration rate from 28% to 50%
    • Credit Card possession 10%+ of population
    • Annual Air traffic growth 10%+
    • LCC share from 10% to 50%
    • 40% growth in incoming tourists by 2010
    • All sources predict growth in the next years
    • Sources: Euromonitor, GFK, Statistical Institutes, Internet Worldstats, Airports and other validated sources
  • Main Drivers
    • Factors associated with the Environment
    • Economic growth & EU benefits resulting in:
    • - Growth in spent for domestic & International travel
    • Growth in leisure & business travel
    • Growth in student & seasonal employment travel
    • Growth in air travel
    • Growth in individual & pre-packaged holidays
    Upward trend will continue in the future
  • Main Drivers
    • Factors associated with technology
    • Growth in Internet literacy among all age groups
    • Internet & CC penetration growth
    • General E-commerce growth
    • Electronic ticketing implementation
    • Availability of online travel services
    • Growth in Internet carriers (LCC)
    Upward trend will continue in the future
  • Main Drivers
    • What do all these factors mean?
    • More and more people are becoming capable to buy travel online
    • Upward trend is stable and there is nothing to slow it down
    • Is there reluctance amongst CEE6 consumers?
    Capability to buy online is not enough!
  • Reasons for reluctance
    • Importance of Psychology & Shopping behavior
    • Many traditional travel shops still largely available (1 travel shop per 5000 inhabitants in BG)
    • Worries for frauds & uncertainty still around
    • People less travel experienced compared to West
    • What is the key for selling travel to CEE consumers?
    Consultative selling is the key!
  • Reasons for reluctance
    • Why consultative selling is so important for the online travel growth?
    • Less travel experience means uncertainty as to how to travel, where to stay, what to expect!
    • Traditional travel agents act as counselors, not just travel sellers in CEE6
    • Many travelers consult with real agents before buying online!
    Main difference between East and West!
  • Overcoming reluctance
    • An online travel website in CEE6 must:
    • Establish itself as a trusted brand
    • Offer free advice service via call center & live chat
    • Offer rich choice of travel content
    • Be extremely user-friendly
    • Be built around user-generated content
    Online travel should simulate a traditional travel shop! It takes the most to change psychology!
  • Thank you! Questions later?! [email_address] Tel. +359 886 835 950 : PeterPanayotov Questions & Answers