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PO Box 16b Baslen House, Kingston Terr
                                                             St. Michael, Barbados BB11090
                                                             T (1) 246 429 2653 F (1) 246 436 5704
                                                             website: http://axses.com

 knowledge engineering

Increased brand awareness
and direct sales




Next Generation Travel Shopping
Merging advertising and bookings
Local knowledge and publishing, in a seamless conversation
A Unique Platform

Advertising is the Driving Force for
Direct Travel Marketing and Branding

Bookings is the Call to Action

AXSES has merged Local Knowledge,
Advertising and Bookings in a Single
Powerful Marketing Solution

Using a sophisticated and simple interface
for managing advertising and bookings
in multiple channels across multiple
platforms
The Internet is about being direct!

It is the most efficient marketing
and distribution medium ever made
for Direct Business

Chains understand that direct is imperative! 81% of their online business is direct.




                            “
In 2003, 53% of online bookings were direct. This is expected to grow to 65% in 2010. The trend clearly
shows that more and more people prefer to book direct. In 2010 only 1/3 of bookings are expected to
come through distribution.


Overall Travel Industry Online bookings (USA)                (Merill Lynch, HeBS)
                                 2003             2005             2007             2008         2010
Direct to Hotel                   53%              54%             60%                 62%        65%

Internet Distribution Systems     47%              46%             40%                 38%        35%
(IDS)




                                                                                             ”
                                           Direct-to-consumer online distribution should
                                           become the foundation, the main focus of any
                                           hotelier's online distribution strategy.
                                           Online, the industry direct sales average 62%
                                           (PhoCusWright, 2002) but many hoteliers
                                           report less than 5%”.


                                           ”Many hoteliers cede control of their
                                           inventory and pricing to online
                                           intermediaries (Expedia etc.) at an
                                           enormous cost financially and to
                                           brand integrity”

                                 Max Starkov, President & CEO, Hospitality Business Strategies Inc.
Brand Integrity
Defining and Preserving the Brandʼs Uniqueness


The Medium – Choice of channel does reflect on the              Ownership – With arcRes, the database belongs to the
Brand.                                                          supplier. This database is unique in that it captures leads
                                                                as well as committed shoppers. arcRes database
It is not always good to be seen as Expedia or as Kayak         marketing allows hotels to market directly to their leads
etc. In many cases a different drum attracts travelers to       and their guests. Expedia has its own marketing tools,
the small hotels. They are looking for a personal touch.        aimed at promoting its own Brand.
No matter how tight the Integration is, travelers are aware.
They will spot tell tale design and URLs, they will know        Sustainability – if you donʼt own the brand and donʼt
who they buy from.                                              have the relationship and loyalty, your business will not
                                                                be sustainable.
The Message – The message is much more than content.
It is also about form and function. You choose to buy at
store X for many reasons but if there are no price tags
and you have to go to the counter to get a price- would
you bother? Creating a message that is not fully inte-
grated with the product is similarly dissonant. The shop-
ping experience should be fully fluid.

Promise & Expectation – A Brand is a promise.
It can say we are a small family hotel, we are local, we are
friendly, we are different, we care. What is the Brand of an
OTA? Expedia for example says: “We are on a mission to
be the largest and most profitable reseller of travel in the
world”. http://www.expediainc.com/

Differentiation & Personality - Differentiation and
personality are conveyed by the suppliersʼ website, by its
individual tastes, its use of colour, its layout and its
processes. The OTA does not create a brand personality
for its suppliers. The OTA is the brand, and the product is
a commodity.

Relationship – Travelers build a relationship with their
suppliers. If you have bought from Expedia and you got
what you wanted, you will most likely go there again to
check out other options (properties, products, destina-
tions). Creating the Expedia relationship diminishes the
hotel brand and can result in loss of repeat business

Loyalty – OTAs are building their own loyalty program,
much like the airlines. Small hotels can and should reward
repeat clients and clients that refer others to them. Loyalty
programmes work. The visitorʼs loyalty should be to the
hotel or the Destination Marketing Portal (DMP) but defi-
nitely not to the OTA. AXSES has loyalty solutions for the
hotel brand. Most OTAs do not! We are aware of several
hotels where appropriate use of branding and loyalty
programmes has resulted in 80-90% of business being
repeat business.
6
     How People Buy
                                                             7


                                                             1
                                                                    7




                                                                                 2/3
                                                                                               3/4
                                                                                                          0



                                                                                 0               4/5
                                                                     2       8             0
                                                                                                              0


Travelers will often visit 6 or more sites before        7
they buy. They often start at destination sites
and travel guides. These sites are important
                                                                         6
in developing interest, awareness and desire,
but they are low in stickiness. Travelers use
them to look for information and direct links       STICKINESS & BUYING are promoted with:
to supplier's websites. The key focus of the        Direct links and product promotion
destination site should be the branding of the      Comparison charts
destination, its suppliers and their products       Shopping lists
                                                    Loyalty programs
Online travel shopping is tedious. Travelers        Best price guarantee
                                                    Travelers resources
may use channels not by choice but for
                                                    Travelers website
expedience! They often see OTA as offering
                                                    Local knowledge
the “Best Price in the Market”. By contrast,        3rd party reviews
supplier websites are hard to find, hard to         Social media
navigate and inconsistent. They do not offer
                                                    While DMPs are tempted to use OTA bookings
the best value.
                                                    on their site, this simply refers business away
                                                    from the DMP and also diminishes brand
Many travelers prefer to buy direct (personal,      loyalty and site "stickiness". Brand integrity
                                                    (to both the destination and the property) is lost.
service, attention). They have to be persuaded
by “brand promise”. They want value.
                                                    AXSES Next Generation Travel Shopping
                                                    Platform is brand focused and sticky. Travelers
While DMP are tempted to use OTA bookings
                                                    get local knowledge, expert systems help,
on their site, this simply refers business away     featured offers, specials and “best price
from the DMP and diminished brand loyalty           guarantee” in a fluid open conversation that
                                                    is increasingly personal.
and site "stickiness". Brand integrity (to both
the destination and the property) is lost.



            Online travel shopping is tedious
Balancing Direct Sales & Distribution
 Advertising Driving
                                                              A closed loop shopping service will lose the opportunity to
 Brand Desire                                                 promote the supplier and create desire to buy that specific
                                                              product.

                                                              We believe that the DMP should allow travelers who want to
                                                              see the supplierʼs website to do so. If travelers want to buy
“Each element in the search-shop-buy cycle is                 direct that must be an option. The DMP can monetise this
undergoing a period of intense innovation, making             with Pay Per Click or subscription advertising.
each increasingly significant, yet interdependent. In fact,
searching, shopping and buying – once distinct terms          If the DMP closes the loop to direct bookings it will
describing different behaviors – are blurring at a furious    have lost a valuable opportunity to close more busi-
pace”. The perfect storm - Philip C. Wolf, President and      ness for its members.
CEO, PhoCusWright Inc.
                                                              We are aware of portals that have installed a 3rd party
                                                              booking engine and are disappointed in the returns and
AXSES technology is leading edge! We have integrated
                                                              flexibility of the service. Booking sites need to have huge
product branding with all phases of the shopping cycle into
                                                              traffic to succeed, because many travelers are looking
a seamless supplier focused experience. It is clear that
                                                              elsewhere and conversion on an OTA site is, on average,
advertising is effective in creating awareness and desire
                                                              no more that 2%.
and persuading travelers to buy. Given the opportunity to
visit the supplierʼs website, travelers will do so far more
                                                              The better source of revenue for a destination marketing
often than they will book. Even in our own Bookings
                                                              portal is advertising and marketing promotions for
channels 19% of travelers use the booking engine to
                                                              non-members and members who care to opt-in. In AXSES
get a quote, reserve or book and 81% choose to go to
                                                              case 55% of revenue is advertising (including 17% smart
the supplierʼs website if the option is there.
                                                              ads) compared to 14% on bookings. Recall that 81% of
                                                              lookers want to go to a website.


Advertising merges with the entire
                                                              AXSES solution will deliver a highly interactive advertising
                                                              and promotional medium with a unique set of bookable-ads,
shopping experience!                                          maps and banners that have proven success in creating
                                                              interest and desire, and delivering bookings.

                                                              Next Generation Shopping

                                                              Direct – Distribution – Brand Promotion – Information –
                                                              Local Knowledge – Publishing – Advertising – Marketing
                                                              – Social Media – Bookings

                                                              Putting it all together!!
                                                              Online travel shopping is disjointed and tedious. Travelers
          20%              Hosting                            are confused and weary. They use channels not necessarily
                                                              by choice but for expedience! Often they see the OTA as
          38%              Advertising                        offering the Best Price in the Market.
          17%              Smart Ads
                                                              Suppliers are embracing the OTAs that have become
          14%              arcRes                             dominant in travelers minds as being the “best place to
          5%               Production                         shop”. But suppliers lose brand control and brand integrity in
                                                              doing so.
          5%               Google
          1%               Other
Bookable-Ads
                                                                                     substantially
                                                                                     increases travelerʼs
AXSES Next Generation Travel Shopping Platform
                                                                                     interaction
changes the options. Destinations can now build hybrid                               and drives more
marketing channels using AXSES merged technology.                                    business to
                                                                                     supplierʼs websites
The new shopping platform focus is on building the brand,
offering expert systems, local knowledge, features and
specials and “best price guarantee” in fluid open
conversation, where travelers can see the product, read
reviews, visit suppliers websites, get instant quotes, save    Next Generation Publishing
itineraries and buy at anytime, all right where they are.
                                                               Publishing On Demand (POD) has come to mean
The core service of AXSES in delivering this solution is
                                                               publishing on-line. This too has changed with new
“engineering information & process for the knowledge
                                                               digital cloud-publishing services that allow a destination
based economy”. We build expert systems to deliver the
                                                               to produce high quality printed guides, magazines and
right content at the right time, in the right context to the
                                                               brochures to order. In some cases printing may be routed
right target. Information is part of a process, it is made
                                                               to a facility in the travelers city.
malleable, accessible, configurable, searchable, and
delivered to suite. It is part of the process of sharing
                                                               AXSES offers a turn key solution for destination-specific
knowledge in a conversation that is increasingly
                                                               publishing. The AXSES archives database The archives
personal.
                                                               facilitates publishing dynamic content such as hotel and
                                                               tourism activity lists and contacts. Costs are low using
The core of the AXSES Travel Platform is
                                                               digital POD technology. Magazines, guides and brochures
arcRes, an e-commerce suite, powering bookings
                                                               may be ordered on line in single units or in bulk. There is
channels, advertising & marketing channels as well
                                                               no inventory requirement and no major investment.
as hotel and tourism websites.

The core of AXSES Advertising Platform is arcAds.
arcAds manages a network of advertising on multiple
portals across multiple platforms. It allows administrators
to place any ad on any page with a simple on line tool.                              Travelers Insights...
It measures all clicks for all clients on all types of ads
by all ad spots and channels.                                                          Dominica is Nature, almost as
                                                                                       it was 50 years ago - little changes
                                                                                       here and that is the way we like it.


AXSES has integrated arcRes and arcAds to create a
                                                                                       This is why people come to Dominica;


first of its kind Bookable-Ads platform in 2007/2008.
                                                                                       to escape the hustle and bustle
                                                                                       of modern life.




Next Generation Bookings
Booking is final step along the path of shopping. The
process of getting there, as we have noted before, is
tedious. It does not have to be. Technology allows us to
integrate more and more of the buy cycle, what is missing
is the will to do so.

OTAs have a vested Interest in a closed loop and so
travelers donʼt see a hotel website. But a DMP does not
have to follow this model. In fact, as we have also noted,
                                                                     Dominica
more is gained by promoting all products of the destination           Destination specific travel journals
                                                                      made to order:
brand.                                                                http://TravelersInsights.com
                                                                      Order your Travelers Insights
In this model bookings and promotions are integrated and              magazine from AXSES
the DMP may derive income from advertising, PPC links
and Bookings. The Next Generation Booking system is
fluid, allowing travelers to shop and buy at any point and
from anywhere.
knowledge engineering
Next Generation Now                                                                    Engineering information & process
Let AXSES enhance your Destination Marketing Portal with                                      for the knowledge
Next Generation Travel Shopping Now. We offer two options:                                     based economy
- A turn key BookingsFranchise.com.
example http://BookingsDominica.com. In this approach the BookingsFranchise
may be co-owned or a service and will be integrated with any existing DMP.

- DMP Integration. All branding, advertising, publishing, shopping functionality and
bookings can be integrated within your own Destination Marketing Portal (DMP).
                                                                                          Mission
In both cases; local knowledge, properties and attractions are entered into the
knowledge archives which drives the interactive maps, quotes, content and bookings.

Brochures, magazines and guides may be Published On Demand (POD) in both
online and printed format.

                   http://axses.com/destinationmarketing/
                                                                                                   Mission

                                                                                                Helping resorts,
                                                                                             tourism operators and
                              Technology for                                                       destinations
                     Destination Marketing & Branding                                       build strong brands and
                    PO Box 16b Baslen House, Kingston Terrace                                    increase direct
                          St. Michael, Barbados BB11090                                          business while
                     T (1) 246 429 2653 F (1) 246 436 5704                                   facilitating distribution
                              website: http://axses.com

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Next Generation Direct Travel Shopping

  • 1. PO Box 16b Baslen House, Kingston Terr St. Michael, Barbados BB11090 T (1) 246 429 2653 F (1) 246 436 5704 website: http://axses.com knowledge engineering Increased brand awareness and direct sales Next Generation Travel Shopping Merging advertising and bookings Local knowledge and publishing, in a seamless conversation
  • 2. A Unique Platform Advertising is the Driving Force for Direct Travel Marketing and Branding Bookings is the Call to Action AXSES has merged Local Knowledge, Advertising and Bookings in a Single Powerful Marketing Solution Using a sophisticated and simple interface for managing advertising and bookings in multiple channels across multiple platforms
  • 3. The Internet is about being direct! It is the most efficient marketing and distribution medium ever made for Direct Business Chains understand that direct is imperative! 81% of their online business is direct. “ In 2003, 53% of online bookings were direct. This is expected to grow to 65% in 2010. The trend clearly shows that more and more people prefer to book direct. In 2010 only 1/3 of bookings are expected to come through distribution. Overall Travel Industry Online bookings (USA) (Merill Lynch, HeBS) 2003 2005 2007 2008 2010 Direct to Hotel 53% 54% 60% 62% 65% Internet Distribution Systems 47% 46% 40% 38% 35% (IDS) ” Direct-to-consumer online distribution should become the foundation, the main focus of any hotelier's online distribution strategy. Online, the industry direct sales average 62% (PhoCusWright, 2002) but many hoteliers report less than 5%”. ”Many hoteliers cede control of their inventory and pricing to online intermediaries (Expedia etc.) at an enormous cost financially and to brand integrity” Max Starkov, President & CEO, Hospitality Business Strategies Inc.
  • 4. Brand Integrity Defining and Preserving the Brandʼs Uniqueness The Medium – Choice of channel does reflect on the Ownership – With arcRes, the database belongs to the Brand. supplier. This database is unique in that it captures leads as well as committed shoppers. arcRes database It is not always good to be seen as Expedia or as Kayak marketing allows hotels to market directly to their leads etc. In many cases a different drum attracts travelers to and their guests. Expedia has its own marketing tools, the small hotels. They are looking for a personal touch. aimed at promoting its own Brand. No matter how tight the Integration is, travelers are aware. They will spot tell tale design and URLs, they will know Sustainability – if you donʼt own the brand and donʼt who they buy from. have the relationship and loyalty, your business will not be sustainable. The Message – The message is much more than content. It is also about form and function. You choose to buy at store X for many reasons but if there are no price tags and you have to go to the counter to get a price- would you bother? Creating a message that is not fully inte- grated with the product is similarly dissonant. The shop- ping experience should be fully fluid. Promise & Expectation – A Brand is a promise. It can say we are a small family hotel, we are local, we are friendly, we are different, we care. What is the Brand of an OTA? Expedia for example says: “We are on a mission to be the largest and most profitable reseller of travel in the world”. http://www.expediainc.com/ Differentiation & Personality - Differentiation and personality are conveyed by the suppliersʼ website, by its individual tastes, its use of colour, its layout and its processes. The OTA does not create a brand personality for its suppliers. The OTA is the brand, and the product is a commodity. Relationship – Travelers build a relationship with their suppliers. If you have bought from Expedia and you got what you wanted, you will most likely go there again to check out other options (properties, products, destina- tions). Creating the Expedia relationship diminishes the hotel brand and can result in loss of repeat business Loyalty – OTAs are building their own loyalty program, much like the airlines. Small hotels can and should reward repeat clients and clients that refer others to them. Loyalty programmes work. The visitorʼs loyalty should be to the hotel or the Destination Marketing Portal (DMP) but defi- nitely not to the OTA. AXSES has loyalty solutions for the hotel brand. Most OTAs do not! We are aware of several hotels where appropriate use of branding and loyalty programmes has resulted in 80-90% of business being repeat business.
  • 5. 6 How People Buy 7 1 7 2/3 3/4 0 0 4/5 2 8 0 0 Travelers will often visit 6 or more sites before 7 they buy. They often start at destination sites and travel guides. These sites are important 6 in developing interest, awareness and desire, but they are low in stickiness. Travelers use them to look for information and direct links STICKINESS & BUYING are promoted with: to supplier's websites. The key focus of the Direct links and product promotion destination site should be the branding of the Comparison charts destination, its suppliers and their products Shopping lists Loyalty programs Online travel shopping is tedious. Travelers Best price guarantee Travelers resources may use channels not by choice but for Travelers website expedience! They often see OTA as offering Local knowledge the “Best Price in the Market”. By contrast, 3rd party reviews supplier websites are hard to find, hard to Social media navigate and inconsistent. They do not offer While DMPs are tempted to use OTA bookings the best value. on their site, this simply refers business away from the DMP and also diminishes brand Many travelers prefer to buy direct (personal, loyalty and site "stickiness". Brand integrity (to both the destination and the property) is lost. service, attention). They have to be persuaded by “brand promise”. They want value. AXSES Next Generation Travel Shopping Platform is brand focused and sticky. Travelers While DMP are tempted to use OTA bookings get local knowledge, expert systems help, on their site, this simply refers business away featured offers, specials and “best price from the DMP and diminished brand loyalty guarantee” in a fluid open conversation that is increasingly personal. and site "stickiness". Brand integrity (to both the destination and the property) is lost. Online travel shopping is tedious
  • 6. Balancing Direct Sales & Distribution Advertising Driving A closed loop shopping service will lose the opportunity to Brand Desire promote the supplier and create desire to buy that specific product. We believe that the DMP should allow travelers who want to see the supplierʼs website to do so. If travelers want to buy “Each element in the search-shop-buy cycle is direct that must be an option. The DMP can monetise this undergoing a period of intense innovation, making with Pay Per Click or subscription advertising. each increasingly significant, yet interdependent. In fact, searching, shopping and buying – once distinct terms If the DMP closes the loop to direct bookings it will describing different behaviors – are blurring at a furious have lost a valuable opportunity to close more busi- pace”. The perfect storm - Philip C. Wolf, President and ness for its members. CEO, PhoCusWright Inc. We are aware of portals that have installed a 3rd party booking engine and are disappointed in the returns and AXSES technology is leading edge! We have integrated flexibility of the service. Booking sites need to have huge product branding with all phases of the shopping cycle into traffic to succeed, because many travelers are looking a seamless supplier focused experience. It is clear that elsewhere and conversion on an OTA site is, on average, advertising is effective in creating awareness and desire no more that 2%. and persuading travelers to buy. Given the opportunity to visit the supplierʼs website, travelers will do so far more The better source of revenue for a destination marketing often than they will book. Even in our own Bookings portal is advertising and marketing promotions for channels 19% of travelers use the booking engine to non-members and members who care to opt-in. In AXSES get a quote, reserve or book and 81% choose to go to case 55% of revenue is advertising (including 17% smart the supplierʼs website if the option is there. ads) compared to 14% on bookings. Recall that 81% of lookers want to go to a website. Advertising merges with the entire AXSES solution will deliver a highly interactive advertising and promotional medium with a unique set of bookable-ads, shopping experience! maps and banners that have proven success in creating interest and desire, and delivering bookings. Next Generation Shopping Direct – Distribution – Brand Promotion – Information – Local Knowledge – Publishing – Advertising – Marketing – Social Media – Bookings Putting it all together!! Online travel shopping is disjointed and tedious. Travelers 20% Hosting are confused and weary. They use channels not necessarily by choice but for expedience! Often they see the OTA as 38% Advertising offering the Best Price in the Market. 17% Smart Ads Suppliers are embracing the OTAs that have become 14% arcRes dominant in travelers minds as being the “best place to 5% Production shop”. But suppliers lose brand control and brand integrity in doing so. 5% Google 1% Other
  • 7. Bookable-Ads substantially increases travelerʼs AXSES Next Generation Travel Shopping Platform interaction changes the options. Destinations can now build hybrid and drives more marketing channels using AXSES merged technology. business to supplierʼs websites The new shopping platform focus is on building the brand, offering expert systems, local knowledge, features and specials and “best price guarantee” in fluid open conversation, where travelers can see the product, read reviews, visit suppliers websites, get instant quotes, save Next Generation Publishing itineraries and buy at anytime, all right where they are. Publishing On Demand (POD) has come to mean The core service of AXSES in delivering this solution is publishing on-line. This too has changed with new “engineering information & process for the knowledge digital cloud-publishing services that allow a destination based economy”. We build expert systems to deliver the to produce high quality printed guides, magazines and right content at the right time, in the right context to the brochures to order. In some cases printing may be routed right target. Information is part of a process, it is made to a facility in the travelers city. malleable, accessible, configurable, searchable, and delivered to suite. It is part of the process of sharing AXSES offers a turn key solution for destination-specific knowledge in a conversation that is increasingly publishing. The AXSES archives database The archives personal. facilitates publishing dynamic content such as hotel and tourism activity lists and contacts. Costs are low using The core of the AXSES Travel Platform is digital POD technology. Magazines, guides and brochures arcRes, an e-commerce suite, powering bookings may be ordered on line in single units or in bulk. There is channels, advertising & marketing channels as well no inventory requirement and no major investment. as hotel and tourism websites. The core of AXSES Advertising Platform is arcAds. arcAds manages a network of advertising on multiple portals across multiple platforms. It allows administrators to place any ad on any page with a simple on line tool. Travelers Insights... It measures all clicks for all clients on all types of ads by all ad spots and channels. Dominica is Nature, almost as it was 50 years ago - little changes here and that is the way we like it. AXSES has integrated arcRes and arcAds to create a This is why people come to Dominica; first of its kind Bookable-Ads platform in 2007/2008. to escape the hustle and bustle of modern life. Next Generation Bookings Booking is final step along the path of shopping. The process of getting there, as we have noted before, is tedious. It does not have to be. Technology allows us to integrate more and more of the buy cycle, what is missing is the will to do so. OTAs have a vested Interest in a closed loop and so travelers donʼt see a hotel website. But a DMP does not have to follow this model. In fact, as we have also noted, Dominica more is gained by promoting all products of the destination Destination specific travel journals made to order: brand. http://TravelersInsights.com Order your Travelers Insights In this model bookings and promotions are integrated and magazine from AXSES the DMP may derive income from advertising, PPC links and Bookings. The Next Generation Booking system is fluid, allowing travelers to shop and buy at any point and from anywhere.
  • 8. knowledge engineering Next Generation Now Engineering information & process Let AXSES enhance your Destination Marketing Portal with for the knowledge Next Generation Travel Shopping Now. We offer two options: based economy - A turn key BookingsFranchise.com. example http://BookingsDominica.com. In this approach the BookingsFranchise may be co-owned or a service and will be integrated with any existing DMP. - DMP Integration. All branding, advertising, publishing, shopping functionality and bookings can be integrated within your own Destination Marketing Portal (DMP). Mission In both cases; local knowledge, properties and attractions are entered into the knowledge archives which drives the interactive maps, quotes, content and bookings. Brochures, magazines and guides may be Published On Demand (POD) in both online and printed format. http://axses.com/destinationmarketing/ Mission Helping resorts, tourism operators and Technology for destinations Destination Marketing & Branding build strong brands and PO Box 16b Baslen House, Kingston Terrace increase direct St. Michael, Barbados BB11090 business while T (1) 246 429 2653 F (1) 246 436 5704 facilitating distribution website: http://axses.com