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China Online Agency Round Up

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Mr Brett Henry, Vice-President, Abacus International shares about online travel distribution in China at China Travel Distribution Summit. 3Dec2009
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China Online Agency Round Up

  1. 1. China Online Agency Round-up China Travel Distribution Summit December 3 rd , 2009 Experience. Insight. Advantage. www.abacus.com.sg TM
  2. 2. <ul><li>Hi. I’m Brett Henry. </li></ul><ul><li>@BrettHenry </li></ul>
  3. 3. You Already Have a Social Media Strategy Travel, Communication and Marketing
  4. 6. <ul><li>Who is Abacus? </li></ul>
  5. 7. We bring to the industry an unrivalled network : About Abacus Asia-Pacific’s leading travel & leisure facilitator with more than 15,000 agency locations in 24 markets <ul><li>More than1,200 employees region wide </li></ul><ul><li>24 markets with more than 100 sales and marketing offices with local support. </li></ul>
  6. 8. <ul><li>Our partners include Sabre Holdings, a world leader in </li></ul><ul><li>travel commerce, retailing travel products and providing </li></ul><ul><li>distribution and technology solutions for the travel industry </li></ul><ul><li>and 11 of the world’s leading airlines serving Asia. </li></ul>Our Partnership
  7. 9. <ul><li>Amadeus had YOY decrease of 2+M </li></ul><ul><li>Galileo had YOY decrease of 4+ M </li></ul><ul><li>Worldspan affected by decline of 5+ M </li></ul>Page *Source: MIDT, <ul><ul><li>YOY Air bkgs change by GDS </li></ul></ul>Abacus and Sabre #1 GDS with the top 4 OTA’s
  8. 10. <ul><li>I am going to talk about online travel distribution in China </li></ul>
  9. 11. Everything I am about to say could be wrong
  10. 12. 1. China’s online travel market is experiencing substantial tailwinds
  11. 13. Online travel market has grown through the Global Financial Crisis to $8B in 2009
  12. 14. 2. Online travel agencies are capitalizing on weak supplier direct capabilities and hotel market fragmentation
  13. 15. Online Agencies are and will continue to be the dominant force in the online market
  14. 16. 3. Significant efficiency gains are still available – and could turbo charge OTA growth business advantages in the medium term
  15. 17. Marketing and acquisition are automated but operation still largely manual Traveller Website Call Center Airline / Hotel 25% 75% Phone & fax Manual Automated
  16. 18. 4. MetaSearch is working – managing the marketing and acquisition without the operational complexities
  17. 19. <ul><li>Something here about size of metasearch market </li></ul>
  18. 21. <ul><li>Something here about size of metasearch market </li></ul>
  19. 23. 5. Ctrip is an investors dream
  20. 24. Ctrip downturn performance... For internal use only Revenue Net Income +47% Marketshare +80% ~60%
  21. 25. … Valuation shows strong investor growth confidence For internal use only +$7B +$5B Market Cap Revenues (2008) +$2.9B +$217M
  22. 26. 6. Expedia is focusing… leading in travel UGC…and positions in metaseach and full service online
  23. 27. Major travel brands unique visitors per month TRANSACTION INTERMEDIARY SUPPLIER-DIRECT MEDIA INTERMEDIARY
  24. 28. Expedia downturn performance... For internal use only Revenue Net Income $852M Asia Hotel Growth +80% 60+% 酷讯,旅游搜索引擎
  25. 29. What to expect in China <ul><ul><li>Investment focus in China over the next 2 years ($50M USD) </li></ul></ul><ul><ul><li>Media - DowDow + Kuxun target to be the largest user review site in China with 10 mil users </li></ul></ul><ul><ul><li>Booking - “eLong is Expedia in China and will continue to be our only transactional play”, CEO </li></ul></ul>
  26. 30. 7. Don’t try to be Ctrip
  27. 31. Are hotel focused sites trying to emulate Ctrip? Local hotel-focused sites have expanded their offering Global hotel-only players are pushing into China Non-Hotel LOBs Hotel-Focused Sites Flights Car Tickets 24-Hotel  12580.com  1rest.com   China-Hotel.com.cn  SinoHotel    www.17u.cn    Cmbtrip  366Hotel.com 
  28. 32. 8. Ctrip (or Qunar, or Dao Dao) is unstoppable
  29. 33. Abacus on Social Media Connect to us on Facebook! www.facebook.com/AbacusIntl
  30. 35. Thank You Experience. Insight. Advantage. www.abacus.com.sg TM

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