Paul Evans is the founder of Lowcosttravelgroup, a £350 million travel company with 400 staff operating in 10 countries. Some key lessons he has learned over his 20 years in the corporate travel industry include:
1) Be nice to others on your way up the career ladder.
2) Don't believe your own public relations - remain humble.
3) You can't always be the best.
4) Be careful who you trust.
Some critical factors for business success according to Evans are experience, investing in a strong staff and team, technology, developing the right product, complying with regulations, effective distribution channels, and a bit of luck.
10. lessons in life
Be nice on way up
Don’t believe own PR
Cant be always best
Careful who you trust
11. 7 key things in business
Experience
Staff &Team
Technology
Product
Regulations
Distribution
Luck!
12. Experience
Seen it before
Contacts - reputation
Read the signs earlier
Been there
13. Staff
Corny about staff
but most is true
A sense of belonging is
what matters
14. Team
Get people who are better than you
Understand what makes them
tick [or try]
Take risks
It’s hard to build and manage a team
…we are still working on it!
15. Technology
Technology is key
Invest in it
Intuitive /Ivector
Affiliates are online travel agents
Call centres 20% vs 1%
16. Product
Packages dynamically
Packages
Hotel only
Flight only
Cruise
Trade
Direct
International
They are all different!
17. Right model?
Less is more? Slim down
Market at an affordable cost?
Admire 3 businesses
Overseas suppliers
18. Regulations
Difficult Area
ATOL, flight plus, ABTA, IATA,
Banks, HMRC
Competitors
Most regulated place on earth
27. The Market next 5 years;
Google – twitter – facebook
Airlines /Operators
Charters
Mediums squeezed
Grow or specialise
Pan European/Global /Local
Commoditisation/ extras
Frankly I wondered what I should talk about !Many of you I understand are non travel So I thought I would not be too specific or technical You will get lots of that during the day Some of it is personal – forgive me Not a conversation/sales job- just thoughts – my view I hope to inspire some entrepreneurs /or those that prefer corporateSome successes and failures - constant change Where lowcost is going – our focus What drives me –you only drive one car
I am head of interference Dabble Fiddle Annoy – teach- lead-influence Dictate
Some back ground on me Eton – elephants – pretty wild youthI am not a techy – I hate instruction manuals / etc.I am probably now an old fart I think I have seen – visited – experienced - more than most And the journey is not over yet
Corporate 20 years – Club-Saga – airtours- MyTravel-First Choice – worked hard Buyer – travelled the world – rose up ranks – eventually MD of First Choice – then Sept 11 – blew too many bridges along the wayPromoted to level of incompetence – deal maker to general managerFIFo – fit in or fuck off - and I didn’tLeft the industry Two key changes – holiday hotels-– independent travelWatermark-seeing entrepreneur first hand- get sales in first – rest will take care of itself Got to see what u have to do to run a biz – it is different – explain why Weekends – weekdays Morning /nightYou must do
One day – on a beach in the Maldives- missed Travel Made the decision to set up lowcostTyped it into computerAll these urlsNo alternatives Fed up with rules Time to take destiny into my hands
The greatest liberating factor is flexibility we offer- the “sangria moment” -as I call it, the ‘non package’ moment.Cant / don’t mentality Reps /Transfers/Mass Check insYou can see the differences as you stand in the airport Easyjet v Tui – profile differences of customers Stop offs SangriasSupposed quality v neutral
Wanted to be part of a different sort of coCustomer in control Not too corporate – fast moving – fun Play hard – work hard Easy to say- but difficult to do Came at it from the product perspective In 7 years we have built a monster! Sometimes I wander around and I don’t know people names – or even always what they do and that is scary
£350m sales – 400 staff – 10 countries and growing 2004 – started with team – backers - buying – ccard – licences – team – then technology- then distribution Overseas backers – suppliers then -Close (Albion) Real focus on Distribution came later – wrongly – should have started earlierOnce I had made up mind – threw myself into itOne of several reasons cost me my first marriageIt is difficult to explain lessons in last 7 years Went live in Oct 2004
Lowcostbeds – trade and directThen split it out – to lowcostholidays and lowcostbedsBuy and build- opportunistic Started with Call centre - CenturyHoppa- Bought from now second wifeThe platform discussion with my FDLaunched holidays in 2009 – now website 7 in UK Bought Intuitive – then IdealThen set up easyjet –– last minute- holidays- Europe We are now in all channels and markets and countries We are now in all channels and markets and countries
So some of my lessons Lesson no 1 - be nice to people on way up – as on the way down they get their own backLesson no 2 – don’t always believe your own PR Lesson no 3 - “you can’t be best at everything“- ( higher up/older more you have to compromise )Lesson no 4 - Careful who you trust! Corporate life taught me that – I made some mistakes and I certainly got stabbed in the bacKI ask everyone here to look at themselves and think about which one they are – or think they are
The importance of 7 key things in the business Experience TeamTechnologyProduct- inc suppliers Regulations Distribution7. Luck
1/ Experience Seen it before contacts – reputationRead the signs earlierCan coach help younger Been thereBut sometimes it is also your worst enemyI am lucky – high growth is all I know – I thrive on it You try to do stuff like you used to and actually wrong thingforget 50% of what we had learnt -which 50% is the problem!Traditional tour operating – margin setting – risk – aviation – brochures – agents – xmls – directSelling what you had bought- rather than what people want
2/ The Team Sounds obvious- but you can’t do it on your ownTeam is crucialIt is hard to find good affiliate – SEO – PPC – digital marketers – buyers –aviation teams- it developersGet people better than you are and manage them- senior team – u gradually become figure head Nightmare to manage Understand – or try to what makes them tick
Our culture is take risks – don’t care if you get it wrong – so long as you realise it If you don’t realise and admit it- and fix it yourself -or ask for help – or you have a problem It is hard to find good online marketeersMission and visions
3/ TechnologyWe invest here – we own intuitive/ivectorWe have 30 plus developers plus 20 plus in house- more that 50 The problem you have is - it gets harder to manage – the lists get longerIT steering committees – priorities – resource –-processesDivergent pressures – internationalisation – front office vs back office etWe invest heavily in affiliates – we like you as we only pay if you sell I admire you guys-You guys better accessing customers We have a young proactive talented “good looking team” to manage- and we appreciate the support we get You are online travel agents- and we are just the manufacturer
4/ Product Dynamic packages -Packages - Hotel only - Flight only - Cruise Trade – Direct - Europe They are all different – all challenges I think the key is to decide -what you want to do Our focus over the next few years is beds and holidays and packages It is less is more- (we have 5000 hotels - 60 plus xmls – 200 airlines - too much) We have great product – rates etcThe issue is really around how you bring it to market seamlessly and at an affordable cost and margin
4/ Product Conversion is key -slim down and focus Q bit – small tweaks now – massive differenceCall centres -u won’t like – but it is true 20% v 1% conversionSpeed / de dupe /too many xmls /aviation/ display Seo - Massive investment over last 3 years– 20 plus team I admire three businesses Expedia – as truly global-Tui as has really differentiated – and saw people like us coming Travel Republic in the UK -for their focus
5/ Regulations Complicated area - Atol – flight plus –Abta – Iata – Ccard –Banks –Hmrcbefore you even talk about competitors who want to kill you behind your backThe bigger you get – the harder it gets as well – stop disruptive co - establishmentThe risk gets bigger – the controls get bigger – want slice of the pie The Govt says it is helping business – it is not – it does the opposite The UK is probably the most regulated planet on earthWhy – because we have a big state – too many people on a small island All about managing risk and putting barriers up to protect your existing status quo and stop youIf you think airlines coming into flight plus – unlikely - Agents will get penalised out of flight plus
No loyalty-More functionalityBrand plays a role -Intermediates need to have range Speed- price Look at bookings Dev team sitting with users
Data – Sideways traffic I went to the Google seminar recently – great presentations – scary What most struck me was around dataGuardian data- was fascinating – just so much data out there – Just what do u do with it all CRM in travel- not sure Infrequent purchase – no loyaltyHold onto existing customers – repeat customers – review sites E mails Proper attribution – last click – re-targetting - roi – epc- cpa – etc – databases – mi – multiple transactions
And then there is google !It is the market 90% of the spend ?Google –how can you ignore it – android – chrome-you tube –MototolaComing into travel – knowledge – data-They make the money But Spend is controllable at least Lets see what they do in travel themselves Price Comparisons
Recent survey of lch customersAmazed how important security is
5/ DistributionI underestimated this in the beginning - had to learn distribution- came from production Tour operating is tough- online travel is tough Trade and direct –all the channelsSideways traffic is crucial – you guys are sideways traffic Sometimes I talk to travel agents and you affiliates and realise they have not a clue about - the efforts – risk taken to get the stuff on the shelf in the first placeNo understanding of production cycle /margins Little concept of the costs involved – late night negotiating with a hotel – writing copy – loading – offers – seat commitments etcI don’t like the Travelzoo’s, Groupons – other channels – need to share risk more with us.
Massive Growth of mobile and tablets Bigger search boxes is keyMad rush to get mobile sites up Keep simple 10% of total trafficMobile has ctr of 15%Tablet 12%Av tablet value +£200Longer browse
We are about to launchAffiliate tracking on new site
Mobile good for simple HotelFlight Amazon
6/ The Market What I do know -and predict is over next 5 years:Google – twitter – Facebook- will thrive Change is constant and quickening My son rarely uses e mail – twitter now overtaken facebook-Bored of bbmBrand does matter – for margin and repeatBig will get bigger easyjet/ ryan air v monarchsAirlines /operators - Charters will disappearT cook will shrink – orderly disposal/Tui will succeed ( 250 businesses) Mediums on-line will get bought/ squeezed Credit card penetration grows