Can you double your money by becoming a travel retailer?

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To effectively sell travel products, airlines and other travel companies need to think like retailers…

Aimed at airlines and other travel companies, this FREE webinar produced by Tnooz and OpenJaw Technologies investigates the opportunities presented by becoming an effective travel retailer.

Panelists are:

Mark Lenahan, vice president of product strategy, OpenJaw Technologies
Cathy Hornby, manager of digital retail, Cathay Pacific Airways
Tristan Gadsby, CEO, Alliants
Kevin May, editor and moderator, Tnooz
Gene Quinn, CEO and producer, Tnooz

This webinar took place on Thursday 6 February.

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  • FastCompany innovative companies in travel aren’t traditional12: Airbnb33: OktogoFortune – most admired7: Southwest31: Singapore36: Marriott International
  • Tesco has 30.4 of its market according to Telegraph January 2013.
  • Picture shows a modal popup in Sears CHECKOUT. Asking the user to complete a survey rather than pay money!30% example is NOTHS, where we removed the modal from the delivery page improved dropout.
  • source: sampa.com/marcelo-calbucci/brave-tech-world/A-10-improvement-on-conversion-w.htm
  • Fab.com optimise:Search terms, Ordering,Merchandising& Curate popular termsTop search – typing brings up common terms, and curated categoriesRight shows faceted search (filters) and list is optimised by, segment (it knows who I am)Search has a call to action: Today’s Best Sellers!Travel has two equivalent calls to action: 1 hotel left!, 2 people are viewing this hotel!
  • Fab.com optimise:Search terms, Ordering,Merchandising& Curate popular termsTop search – typing brings up common terms, and curated categoriesRight shows faceted search (filters) and list is optimised by, segment (it knows who I am)Search has a call to action: Today’s Best Sellers!Travel has two equivalent calls to action: 1 hotel left!, 2 people are viewing this hotel!
  • Biasing 82%UX 20%Post sell 63%Source panel 1&3: Cisco Global Mobile Traffic Update 2012-2017Source panel 2: July 2012 traffic – comScore “ From Brick-and-Mortar to Mobile…”
  • Fab.com exampleThe
  • Customer-centricWallet shareLife-time valueBasket valueA supplier thinks I have product – how to I sell as much of my product as possibleA retailer thinks – I have a customer – how much of their needs can I fulfillWhether it’s my product or not
  • Traditional Model: Travel Agents are Retailer, Airlines are SuppliersAirlines are structured around operations, locations and systems, not customer centric organisationComplexity – safety, flight planning, engineering, fuel, etc its a lot more than paying an electricity bill for a shop. Airlines have to worry about keeping planes in the airLegacy technologyOperate loyalty, holidays, flight sales, customer service etc as separate businesses – organised around the nature of the task rather than the customer life cycleComplexity – multiply the units
  • Traditional Model: Travel Agents are Retailer, Airlines are SuppliersAirlines are structured around operations, locations and systems, not customer centric organisationComplexity – safety, flight planning, engineering, fuel, etc it’s a lot more than paying an electricity bill for a shop. Airlines have to worry about keeping planes in the airLegacy technologyOperate loyalty, holidays, flight sales, customer service etc as separate businesses – organised around the nature of the task rather than the customer life cycleComplexity – multiply the units
  • Traditional Model: Travel Agents are Retailer, Airlines are SuppliersAirlines are structured around operations, locations and systems, not customer centric organisationComplexity – safety, flight planning, engineering, fuel, etc its a lot more than paying an electricity bill for a shop. Airlines have to worry about keeping planes in the airLegacy technologyOperate loyalty, holidays, flight sales, customer service etc as separate businesses – organised around the nature of the task rather than the customer life cycleComplexity – multiply the units
  • Real-time pricingNo form fillingsThis would have been difficult 5 years agoBritish Airways Holiday Finder
  • Real-time pricingNo form fillingsThis would have been difficult 5 years agoBritish Airways Holiday Finder
  • Real-time pricingNo form fillingsThis would have been difficult 5 years agoBritish Airways Holiday Finder
  • Can you double your money by becoming a travel retailer?

    1. 1. Can you double your money by becoming a travel retailer? Webinar 6 February 2014
    2. 2. Your hosts Kevin May Editor & moderator Gene Quinn CEO & producer
    3. 3. Your panelists Tristan Gadsby CEO Alliants Mark Lenahan VP, Product Strategy OpenJaw Technolgies Cathy Hornby Manager, Digital Retail Cathay Pacific Airways
    4. 4. Can you double your money by becoming a travel retailer? Tristan Gadsby CEO, Alliants
    5. 5. Travel companies are not seen as leaders 0/100 2/50 © OPENJAW TECHNOLOGIES 2014 most innovative companies 3/50 5 top brands most admired companies
    6. 6. Retailers and consumer products dominate… 6 © OPENJAW TECHNOLOGIES 2014
    7. 7. Retailers think differently… 30.4% COMPETITORS Share of the Groceries Wallet + Frequency of Visit Not just transactions and average transaction value 7 © OPENJAW TECHNOLOGIES 2014
    8. 8. What can we learn from leading retailers? All experts in… Distribution Engagement Conversion 8 © OPENJAW TECHNOLOGIES 2014
    9. 9. The big value-levers for all travel companies… Increase Reach Increase Volume Increase Visit Frequency and Engagement Improve Conversion Ratios Value Increase Average Transaction (Up-Sell, Cross-Sell Package) Increase Average Value Optimise Margin 9 © OPENJAW TECHNOLOGIES 2014
    10. 10. Increase Conversion: Barriers in checkout A Fast Track 100 Ecommerce site removed a modal window. Page dropout reduced by 30% source: Alliant’s UX work 10 © OPENJAW TECHNOLOGIES 2014 Don‟t interrupt the user!
    11. 11. Increase Conversion: Compulsory registration ASOS redesigned to remove the references to registration. Page dropout reduced by 50% source: Econsultancy ASOS checkout post 11 © OPENJAW TECHNOLOGIES 2014
    12. 12. Increase Conversion: Fraud & Security Re-enforcing security credentials can decrease dropout on payment pages And… be wary of enthusiastic security policies Removing CAPTCHA had a 10% uplift in conversion. (Sampa.com) 12 © OPENJAW TECHNOLOGIES 2014
    13. 13. Up to 10% Increase Engagement Use site search Engage in available product Compare products Share products 0 1 2 3 Conversion Multiplier 13 © OPENJAW TECHNOLOGIES 2014 4
    14. 14. Up-sell and Cross Sell Upsell – give shoppers alternatives. Optimise on the price. Cross-sell – once someone commits a purchase, offer additional appropriate items. Optimise the inventory. 14 © OPENJAW TECHNOLOGIES 2014 Up to 10%
    15. 15. Personalization Up to 15% Personalisation of offers and Search Result Ordering can deliver up to 15%.... 15 © OPENJAW TECHNOLOGIES 2014
    16. 16. Optimise Margin Up to 10% …But understanding the price sensitivity and margins of what you are selling can deliver another 5-10% to the bottom line 16 © OPENJAW TECHNOLOGIES 2014
    17. 17. Increase Reach 12 4/5 fold Mobile traffic in 2012, than the entire internet in 2000 Smartphone owners use their mobiles to shop 2013 The year when mobile internet connected devices outnumbered humans In 2014, you cannot ignore mobile Sources: Cisco, comScore 17 © OPENJAW TECHNOLOGIES 2014
    18. 18. Effectively Delivering Mobile 18 © OPENJAW TECHNOLOGIES 2014 Up to 15%
    19. 19. The Multiplier Effect of Retailing 100% Optimise Margin 90% 80% Personalisation 70% 60% Upsell and Cross-Sell 50% Increased Engagement Increased Reach 40% 30% 20% 10% 0% Remove Conversion Barriers Improvement Potential 19 © OPENJAW TECHNOLOGIES 2014
    20. 20. What next? …and  draw  ot  in gh s h i t 1. 2. 3. 20 © OPENJAW TECHNOLOGIES 2014 Deep use of social tools like  t at  w  couldn’t  see  b fore e OpenGraph e (e.g. Fab.com) Data science (e.g. pricing analytics) „Useful’ mobile apps – it‟s not good enough to replicate a website.
    21. 21. Retailing for the travel industry Mark Lenahan VP, Product Strategy OpenJaw Technologies
    22. 22. What Is “Thinking Like A Retailer”? • Supplier: “I have product – how do I sell as much of my product as possible?” ? 22 ? ? © OPENJAW TECHNOLOGIES 2014 ? • Retailer: “I have customers – how many of their needs can I fulfill?”
    23. 23. Why don‟t Airlines think like Retailers? 1. Travel Agents are the retailers 2. Structured around operations and locations 3. Operational complexity 4. Legacy technology © OPENJAW TECHNOLOGIES 2014 Holidays 23 FFP 6. Product complexity… Airline 5. Business silos
    24. 24. Travel Product Complexity • Starbucks has 87,000 different drink combinations? WSJ & NWT adverts 2008, Times Magazine 2006 24 © OPENJAW TECHNOLOGIES 2014
    25. 25. Travel Product Complexity • How many possible holidays can I book? (Drastically oversimplified!) • • • • • • • • • • 25 100 destinations 30 departure dates ~20 durations 10 flights out 10 flights back 3 cabin classes 100 car rental offers 200 hotels Room type / meal plan Activities, Insurance... © OPENJAW TECHNOLOGIES 2014 100 3,000 60,000 600,000 6m 18m 1,800m 3.6 x1011
    26. 26. t-Retailing Introduction
    27. 27. The 4 Principles of t-Retailing 27 © OPENJAW TECHNOLOGIES 2014
    28. 28. Inspire! with t-Retailing • Creation of own content, curation of third party and user-generated • Browsable products, locations and promotions • 28 Consumer engagement, discovery and social sharing © OPENJAW TECHNOLOGIES 2014 • Visually compelling and dynamic display of products with prices, offers and calendars • Support traffic acquisition/SEO/SEM for search and meta-search
    29. 29. Personalise! with t-Retailing • Identify and recognise individual customers to personalise offers and user experience • Own the customer engagement for life of the customer, not just one journey – focus on customer share, drive loyalty • Deliver „compelling‟ cross-sell – the right product to the right person at the right time • Retain and index all customer interactions – reward loyalty – mine data for customer knowledge 29 © OPENJAW TECHNOLOGIES 2014
    30. 30. Differentiate! with t-Retailing • Get closer to supply – own and partners – leverage unique inventory, products and rates • Leverage packaging and redemption as channels for distressed inventory, negotiated/net/private fares and rates • Control business model and algorithms on the fly – realtime business response to the market • With a small number of direct contracts, key destinations, offer unbeatable value • Reward loyal customers 30 © OPENJAW TECHNOLOGIES 2014
    31. 31. Convert! with t-Retailing • Bring proven online retailing & merchandising strategies to travel • Integrate with loyalty accrual and redemption • In-path and post-booking cross-sell Up-sell flight and ground ancillaries through travel journey • Unified online and offline channels; contact centre for serving and sales • Shopping cart & Dynamic Packaging - „Combine & Save‟ • Payment models matter e.g. online, offline, loyalty points, deposit, cash, high street 31 © OPENJAW TECHNOLOGIES 2014 partners for
    32. 32. t-Retailing Principle 1: Inspire
    33. 33. Inspire - Promotions • • • • 34 Products & Pricing SEO & Social Google Forms Only possible recently © OPENJAW TECHNOLOGIES 2014
    34. 34. Inspire - Promotions 35 © OPENJAW TECHNOLOGIES 2014
    35. 35. Inspire - Promotions • Do you have landing pages for Destinations / Hotels / Activities/Packages/Promotions/Themes? • Can they be browsed by consumer & indexed by search? (SEO/SEM) – without search forms! • Can they be liked, shared, +1‟d, tweeted? Can you get a network effect? • Do they contain current price information, availability and images? • Do links land on something useful? i.e. departure dates with actual prices/bookable? 36 © OPENJAW TECHNOLOGIES 2014
    36. 36. t-Retailing Principle 2: Personalise
    37. 37. Recommendations in Travel Profile/CRM Data Stated preferences, inferred/collated data, identity, location, social/mobile Product Data Hotels, Locations, Activities Formal meta-data + soft tags Past Behaviour Super PNR, +(views, likes, saves) Collaborative Data Products + Behaviour (Signals) (Many Customers) Current Behaviour Session / Shopping Cart External Data Shares, Likes, Comments, Tweets, Graph Customer Data 38 © OPENJAW TECHNOLOGIES 2014 External Data Local data, UGC, social media, alerts/disruption/news (Per Product, Location) Recommendation & Personalisation Rules Product Data
    38. 38. Personalisation Examples Altered Image Elements & Styles Featured Promotions & Banners Targeted Pricing & Special Offers 39 © OPENJAW TECHNOLOGIES 2014
    39. 39. Personalisation Examples Merchandising: Arrange products in an order more likely to sell. Anywhere you list products, especially search results… Non-Personalised Product A Product B Product C Product D Product E Product F … 40 $105 $108 $134 $141 $182 $245 © OPENJAW TECHNOLOGIES 2014 Personalised Product C Product E Product A Product B Product H Product E … $134 $181 $105 $108 $255 $182
    40. 40. Customer Service / Support • It isn‟t just your systems! • The people who deal with your customers:• • • • • • • • • • 41 Check-in Room service On board Contact centre Social High street Airport Hotel Depot Station © OPENJAW TECHNOLOGIES 2014
    41. 41. t-Retailing Principle 3: Differentiate
    42. 42. Differentiate – Content & Supply Model 1. Using One Aggregator • 50,000 – 150,000 • Build breadth quickly • Intelligence built in t-Retail Platform Content • 200,000+ • De-duplication • Relative priorities Link Link 2. Using 2 or More Aggregators 1Aggregators Aggregtator 3. Aggregators and Contracting • Focus on top destinations • Add unique content (boutique, halo) • Very difficult to replicate 43 © OPENJAW TECHNOLOGIES 2014 Contracts
    43. 43. t-Retailing Principle 4: Convert
    44. 44. Conversion • In Line Cross-Sell 45 © OPENJAW TECHNOLOGIES 2014
    45. 45. Conversion • Up-Sell 46 © OPENJAW TECHNOLOGIES 2014
    46. 46. Conversion • Dynamic Packaging/Combine & Save 47 © OPENJAW TECHNOLOGIES 2014
    47. 47. t-Retailing in Practise
    48. 48. xDistributor Internet Booking Engine Mobile Agent Desktop Admin Admin Console Console Contact Centre Mgr. Contact Centre Business Rules Product & Product Managers Pricing Rule Managers Management 49 © OPENJAW TECHNOLOGIES 2014 xDistributor OpenTravel XML CMS TribeAPI IBE API UX Supplier Connectors OpenJaw t-Retail Platform Air PSS/GDS Hotel Car Event Other Location Location Manager Rules: Business Tables Process Hotel Content Event Inventory Profile Profile Loyalty Loyalty Manager Manager Super PNR Super PNR Manager Manager
    49. 49. Q&A
    50. 50. Thank you! Send your questions and comments to kevin@tnooz.com Replay and presentation of webinar will be available on www.tnooz.com

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