Expedia3

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  • Air revenue < 15% of Expedia’s worldwide annual revenue 90% of airplane tickets sold over Expedia’s online properties are agency transactions, in which Customer pays supplier directly, Expedia collects its remuneration after travel Lower revenue margin
  • Expedia receives cash upfront from travelers, pays hoteliers several weeks later Some control over pricing, higher margins & ability to package opaquely with other products Typically 1 - 2 year contracts with major chain lodging properties
  • Two primary businesses 1 Trip Advisor Media Network (leading global collection If user-generated content sites) 2 Expedia Media Solutions (monetizing global Expedia, Hotels & Hotwire sites beyond transactions) TTM 9.30.09 revenue of nearly $300mm - TravelAds is a new advertising program that gives your hotel access to premium placement within search results on Expedia and Hotels.com. Similar to traditional search engines, you set your price-per-click and only pay when a customer clicks on your ad. This pay-per-click auction model is great for any budget and delivers your targeted message to a qualified customer at the most influential time. -
  • Hotels.com operates 73 local country sites, throughout North and South America, Europe, the Middle East and the Asia-Pacific region. Egencia, the fifth largest corporate travel management company in the world, has local-language sites in 24 countries worldwide. Localize version of expedia websites more
  • Travelocity 26 global sites global sites: IgoUgo® Cheap To Travel holiday autos® lastminute.com World Choice Travel® Zuji Problem Web technology trend to be cheap So, traditional travel agency offer cheap room on their own website  Same customer  No inventory product for Expedia Ex Intercontinental Hotel group that has 3500 hotels deal with Travelocity EX Low cost airline want to sell directly to customer because it has low margin Raises marketing cost
  • Travelocity 26 global sites global sites: IgoUgo® Cheap To Travel holiday autos® lastminute.com World Choice Travel® Zuji Problem Web technology trend to be cheap So, traditional travel agency offer cheap room on their own website  Same customer  No inventory product for Expedia Ex Intercontinental Hotel group that has 3500 hotels deal with Travelocity EX Low cost airline want to sell directly to customer because it has low margin Raises marketing cost
  • Support infrastructure combine of outsource and in-house call center
  • มีสองกราฟ travel market กับ online booking
  • Expedia น่าจะมีช่องทาง ให้ลูกค้าที่ใช้บริการเข้ามา post ความคิดเห็น trip การเที่ยวของเค้า    คล้าย webboard หรืออาจจะเป็นช่องทางอื่นพวก social network ต่างๆ เช่น facebook     ซึ่งเป็นข้อดีกับทุกฝ่าย      1) ช่องทางให้ลูกค้าเข้ามา feedback     2) ช่องทางสำหรับลูกค้ารายอื่น เพื่อเป็นข้อมูลช่วยตัดสินใจ    3) ช่องทางให้ expedia ควบคุมสถานการณ์ได้ เช่น   ถ้าลูกค้าไม่พอใจแล้วมา Post ทาง expedia จะได้ใช้ช่องทางนี้ในการทำความเข้าใจได้ด้วย     
  • Expedia3

    1. 2. Company Profile <ul><li>Online travel service company </li></ul><ul><ul><li>Provide information on scheduling , pricing and availability of flight, hotel and rental car </li></ul></ul><ul><ul><li>One-stop travel shopping & reservation services </li></ul></ul><ul><li>Start with operationing unit of Microsoft </li></ul><ul><ul><li>Expedia went public in 1999 </li></ul></ul><ul><ul><li>Interactive crop buy expedia stock in 2003 </li></ul></ul><ul><ul><li>Become indepentdent public company in 2005 </li></ul></ul><ul><li>Largest player in online travel service </li></ul><ul><li>- $2.7 billion in 2007 (38.57%) of total online market share </li></ul>
    2. 3. Vision “ To create a global travel marketplace , enable travel service suppliers to extend their marketing reach, and giving consumers the ability to research, plan, and purchase travel services ”
    3. 4. Value proprosition <ul><li>Reduce searching cost for trip information </li></ul><ul><li>One stop service for traveling </li></ul><ul><li>Offer lower price than traditional method </li></ul><ul><li>Offer market opportunity to fill vacant rooms ,rent idle car etc. </li></ul>Customer Supplier
    4. 5. Young people, families (+kids), seniors, groups with specific needs on: special trips (sightseeing, Disney Land, adventures, romantic, etc), activities (sport, wellness), hotels and prices Business people with specific needs on exclusive deals,(business-) hotels, check-In Customer Segmentation Business travelers Customer Holiday travelers
    5. 6. Business model Merchant model Agency model Advertising revenue model
    6. 7. Agent model “ Act as traditional agency , Expedia receive revenue from commission or Flat fee of each transaction from travel supplier.” <ul><li>Commission and transaction fee </li></ul><ul><li>Low margin </li></ul>Travel Agency
    7. 8. Merchant model “ Purchase inventory from supplier at discounted wholesale prices and resells it to consumer at a retail price that it sets it self.” <ul><li>Revenue from price difference </li></ul><ul><li>High margin </li></ul>Wholesale retail
    8. 9. Advertising revenue model
    9. 10. Business Strategy Analysis Portfolio of Travel Brands expands into foreign market
    10. 11. Business Strategy Analysis Localization of Expedia websites
    11. 12. Business Strategy Analysis Breadth of Product Offering
    12. 13. Customer satisfaction
    13. 14. Compettion Strategy Analysis Direct competitor
    14. 15. Compettion Strategy Analysis Indirect competitor
    15. 16. Technology Strategy
    16. 17. Social and Legal Challenges
    17. 18. Strategy Summary Opaque Retail Package Corporate Media Priceline Orbiz Travelocity Kayak Expedia Hotwire Egencia Etc.
    18. 19. Sources: U.S. Online Travel Overview 8th Edition Update: 2009 – 2010 (April 2009); U.S. Corporate Travel Distribution 4th Edition (July 2009); European Online Travel Overview 4th Market opportunity and Financial analysis
    19. 20. CONSOLIDATED STATEMENTS OF OPERATIONS
    20. 21. Revenue by product & Geography
    21. 22. Suggestion

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