My Presentation at TDCEE Prague 2007


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MY presentation at the Eyefortravel travel distribution conference held in Prague 2007

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My Presentation at TDCEE Prague 2007

  1. 1. Name Title Company <ul><li>What are the main drivers of change in consumer behaviour? </li></ul><ul><li>What are the main reasons for consumer reluctance to book online? </li></ul>Presented by Petar Panayotov Head of Marketing
  2. 2. CEE Online Travel Financial & Marketing Directors dilemma The two went to a country to sell shoes. Upon arrival they noticed everyone was bear-footed. Financial director: Let’s get out of here, nobody has money for shoes! Marketing director: This is a huge market for us, nobody wears shoes! CEE is a land of opportunities for growth in online travel!!!
  3. 3. AGENDA: <ul><li>Reasons & Scope </li></ul><ul><li>Current CEE online market </li></ul><ul><li>Main drivers for change </li></ul><ul><li>Main reasons for reluctance </li></ul><ul><li>Overcoming reluctance </li></ul><ul><li>Q&A </li></ul>
  4. 4. Reasons & Scope <ul><li> is a leading US online travel technology provider with operational HQ in Sofia </li></ul><ul><li>We spot great opportunities in CEE6 </li></ul><ul><li>We are going to set up a B2C subsidiary </li></ul><ul><li>We plan to launch a pan-CEE6 online travel agency </li></ul>We conducted an in-depth market research to identify the potential of CEE6
  5. 5. CEE Online Travel <ul><li>CEE6(BG, CZ, HU, PL, RO, SK) most important </li></ul><ul><li>Recent EU members </li></ul><ul><li>100 million consumers - $ 4 billion travel spend </li></ul><ul><li>Economic growth </li></ul><ul><li>All types of travel growth </li></ul><ul><li>Internet & CC penetration growth </li></ul><ul><li>LCC growth </li></ul><ul><li>Non-consolidated travel agencies market </li></ul>
  6. 6. CEE Online Travel <ul><li>Highlights </li></ul><ul><li>Annul GDP growth rate 5%+ (2,5% EU15 average) </li></ul><ul><li>Internet Penetration rate from 28% to 50% </li></ul><ul><li>Credit Card possession 10%+ of population </li></ul><ul><li>Annual Air traffic growth 10%+ </li></ul><ul><li>LCC share from 10% to 50% </li></ul><ul><li>40% growth in incoming tourists by 2010 </li></ul><ul><li>All sources predict growth in the next years </li></ul><ul><li>Sources: Euromonitor, GFK, Statistical Institutes, Internet Worldstats, Airports and other validated sources </li></ul>
  7. 7. Main Drivers <ul><li>Factors associated with the Environment </li></ul><ul><li>Economic growth & EU benefits resulting in: </li></ul><ul><li>- Growth in spent for domestic & International travel </li></ul><ul><li>Growth in leisure & business travel </li></ul><ul><li>Growth in student & seasonal employment travel </li></ul><ul><li>Growth in air travel </li></ul><ul><li>Growth in individual & pre-packaged holidays </li></ul>Upward trend will continue in the future
  8. 8. Main Drivers <ul><li>Factors associated with technology </li></ul><ul><li>Growth in Internet literacy among all age groups </li></ul><ul><li>Internet & CC penetration growth </li></ul><ul><li>General E-commerce growth </li></ul><ul><li>Electronic ticketing implementation </li></ul><ul><li>Availability of online travel services </li></ul><ul><li>Growth in Internet carriers (LCC) </li></ul>Upward trend will continue in the future
  9. 9. Main Drivers <ul><li>What do all these factors mean? </li></ul><ul><li>More and more people are becoming capable to buy travel online </li></ul><ul><li>Upward trend is stable and there is nothing to slow it down </li></ul><ul><li>Is there reluctance amongst CEE6 consumers? </li></ul>Capability to buy online is not enough!
  10. 10. Reasons for reluctance <ul><li>Importance of Psychology & Shopping behavior </li></ul><ul><li>Many traditional travel shops still largely available (1 travel shop per 5000 inhabitants in BG) </li></ul><ul><li>Worries for frauds & uncertainty still around </li></ul><ul><li>People less travel experienced compared to West </li></ul><ul><li>What is the key for selling travel to CEE consumers? </li></ul>Consultative selling is the key!
  11. 11. Reasons for reluctance <ul><li>Why consultative selling is so important for the online travel growth? </li></ul><ul><li>Less travel experience means uncertainty as to how to travel, where to stay, what to expect! </li></ul><ul><li>Traditional travel agents act as counselors, not just travel sellers in CEE6 </li></ul><ul><li>Many travelers consult with real agents before buying online! </li></ul>Main difference between East and West!
  12. 12. Overcoming reluctance <ul><li>An online travel website in CEE6 must: </li></ul><ul><li>Establish itself as a trusted brand </li></ul><ul><li>Offer free advice service via call center & live chat </li></ul><ul><li>Offer rich choice of travel content </li></ul><ul><li>Be extremely user-friendly </li></ul><ul><li>Be built around user-generated content </li></ul>Online travel should simulate a traditional travel shop! It takes the most to change psychology!
  13. 13. Thank you! Questions later?! [email_address] Tel. +359 886 835 950 : PeterPanayotov Questions & Answers