Selling Travel Online- Expedia

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Presentation by Diego Lofuedo of Expedia at the E-Tourism Africa Summit 2010

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Selling Travel Online- Expedia

  1. 1. E-Tourism Africa Summit October 26th 2010 CPT International Conference Centre ©2008Expedia,Inc.Confidential&proprietary.Allrightsreserved.
  2. 2. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |1 AGENDA 1. How the Internet is evolving as a distribution and marketing channel for travel products • Growth in online adoption • Effects of the internet on consumers • Effects of the internet on hotels and travel suppliers • Effects of the internet on intermediaries 2. How to profit from online distribution (focus on OLTAs) • Effects of the online shift to hotels and travel suppliers 3. Results in South Africa 4. Expedia – More than just Transactions 5. Questions & Answers
  3. 3. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |2 How to profit from online distribution 1. Expedia? 2. Basics for working with OLTA´s … and YOUR own web
  4. 4. Our mission remains the same… At Expedia, we create the best marketplaces around the world for travelers to plan, book and manage their trips.
  5. 5. American Express 4 2009 “… was the year that online travel agency, Expedia, displacedAmericanExpressastheindustry'slargestselleroftravel.” -Travel Weekly Power List 2010 20082009 29.121.8 Expedia 27.821.5Carlson Wagonlit 21.321.4 HRG 1616 BCD Travel 1414.6 Orbitz 10.810.1 Travelocity 10.610* Priceline 7.49.3 Source: Travel Weekly Power List 2010; Annual Earnings in billions (US$) * Estimated as did not return figures
  6. 6. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |5 How to profit from online distribution 1. Expedia? 2. Basics for working with OLTA´s … and YOUR own web
  7. 7. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group | 6 230 grams of competing inputs1. large blade 2. small blade 3. corkscrew 4. can opener with small screwdriver 5. cap lifter with screwdriver 6. wire stripper 7. reamer 8. punch 9. key ring 10. inox tweezers 11. toothpick 12. scissors 13. multi-purpose hook / parcel carrier 14. wood saw 15. fish scaler 16. hook disgorger 17. ruler (cm + inches) 18. nailfile 19. metal file 20. nail cleaner 21. metal saw 22. screwdriver 23. 2.5mm chisel 24. pliers 25. wire crimping tool 26. wire cutters 27. Philips screwdriver 28. magnifying lens 5x 29. pressurized ballpoint pen 30. pin 31. mini-screwdriver 32. sewing eye
  8. 8. Online Strategic Building Blocks 7 Focus on Consumer Relevance GrowthDriversEnablers Improve Rate quality Increase Conversion with Availability Content & Reviews efficiently Connectivity Technology Standard Content Customer Centric Grow Profitably Extremely Focused Simplistic Agile Test & Learn Innovate where it matters Performance culture Guiding Principles
  9. 9. © Expedia Inc. Confidential and proprietary. All rights 8 Focused design, intuitive, highly usable
  10. 10. © Expedia Inc. Confidential and proprietary. All rights Expedia Partner Services Back to basics RATE & ROOMS Do you have: The right rate plans 2011 2012? The right 18 month Calendar? The right yielding methods ? The right plan ? The right people and IT? The right... Everything!
  11. 11. There are 295 hotels in Cape Town 30% with no Internet? Expedia continued content enhancement optimisation
  12. 12. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group | Provide excellent service – Read and Reply Hotel Conversion vs User rating Score (1-5) 1–2.9 3.0–3.9 4.0–5.0 % User Ratings 100 170 220 % Total ratings Conversion Index
  13. 13. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |12 AGENDA 1. How the Internet is evolving as a distribution and marketing channel for travel products • Growth in online adoption • Effects of the internet on consumers • Effects of the internet on hotels and travel suppliers • Effects of the internet on intermediaries 2. How to profit from online distribution (focus on OLTAs) • Effects of the online shift to hotels and travel suppliers 3. Results in South Africa 4. Expedia – More than just Transactions 5. Questions & Answers
  14. 14. 13 AGENDA 1. How the Internet is evolving as a distribution and marketing channel for travel products • Growth in online adoption • Effects of the internet on consumers • Effects of the internet on hotels and travel suppliers • Effects of the internet on intermediaries 2. How to profit from online distribution (focus on OLTAs) • Effects of the online shift to hotels and travel suppliers 3. Results in South Africa 4. Expedia – More than just Transactions 5. Questions & Answers
  15. 15. ©2008Expedia,Inc.Confidential&proprietary.Allrightsreserved.
  16. 16. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |16 1. This shifting online is impacting consumers, intermediaries, and travel suppliers. Internet is changing the way people buy and sell travel (i.e. Cape Town or Cairo sold as a long weekend city break!). 2. Revenue Management is key to maximize profits. Moreover in times of economy slowdown. Every single penny counts  3. Wear online hat when doing business with online Tour Operators. Wear offline hat while doing business with offline tour operators. Think selling price while @ 4. Expedia is your best option to maximize revenue, reach worldwide audience, learn about e-commerce and benefit from our vast online experience. 5. Expedia is the ONLY OLTA that can offer you Transactions, Media Value and Billboard effect. No other competitor can close the circle this way!. 6. Online is not the future. It is the present. And it is happening now in Africa. We are bringing the e-commerce to Africa and Africa to the e-commerce. Join us! 7. The Offline Travel Trade is not left aside. Join www.agentrez.com and start earning $$! Summary
  17. 17. ©2008Expedia,Inc.Confidential&proprietary.Allrightsreserved.©2008Expedia,Inc.Confidential&proprietary.Allrightsreserved. Thank you! ANY QUESTIONS? Diego J. Lofeudo diegol@expedia.com Ross Kata rkata@expedia.com 17

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