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Expedia
This document discusses the effects of the internet on travel and how consumers, intermediaries, and suppliers have adapted. Some key points: - The internet has changed how people search for and book travel, with many now booking directly online rather than through travel agents. - Online travel agencies like Expedia have seen significant growth and now compete directly with airlines and hotels for bookings. - Travel suppliers have had to develop an online presence to reach customers searching and booking online. Working with sites like Expedia gives suppliers global distribution and access to their customer base. - Data shows a "billboard effect" where being listed on Expedia and other sites drives additional direct bookings to the supplier's own
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Expedia
- 1. Effect of Interneton Travel Ross Kata – Expedia Africa - JNB Office
- 2. Travel Agents needto evolve with consumers
- 3. Summary of Trafficto Travel Categories
- 4. Where are theylooking Billboard Effect
- 5. Purchase Channel ByAge – Winning the hearts and minds Building Bands
- 6. Effects of theinternet on consumers
- 7. European Bookings bySegment OTA’s over take Airlines 2011
- 8. Hotel Shopping –Top 5 sites Europe
- 9. How are theybooking 2009 Global Performance by Travel Industry 2009
- 10. Effects of theinternet on intermediaries Traditional travel agents : value added / mix model / less transactional more experiential. Need to become customer focused Wholesalers and traditional tour operators : direct to consumers / large investments in technology and marketing. Giants moving online. Online travel agencies : Battle to win hearts and minds of consumers and suppliers Better functionality for consumers Improved tools for suppliers Alternative compensation models (transaccional & media), for suppliers Collapse of the Middle – Currently taking place with airline consolidation. KLM & Air France and BA & Iberia. More to come!!!
- 11. Connectivity No longerthe future Email booking or phone booking entered into software nightsbridge Info sent to websites Guests make booking email sms Email to guests Booking into software
- 12. Integration to majorPortals, such as Expedia.com Web-based Central Reservations software for a multi-property view of all your rates and inventory Powerful Revenue and Yield Management Optimise RevPar – ‘Revenue per available room’ Integration to Call Centre, Website, ADS and GDS e R es® CRS & Distribution Hub
- 13.
- 14. Effects of theinternet on travel suppliers World wide distribution and marketing Access to mountains of information Flexibility Control and real time decision making Revenue Management Consumer is now ‘Pro - sumer’
- 15. Global ADR -Hotel Source: Expedia Inc Booked data
- 16. Expedia’s Mission Workwith our partners to secure the highest quality supply Match supply and demand as intelligently as possible Inspire travelers to find, build, and share travel experiences Increase access to global traveler demand Our mission is to build the world's largest and most intelligent travel marketplace
- 17. Expedia General Figures$23bn sold in travel in the last 12 month #1 online travel company Around 75 million people visit our sites every month. 75% of the people buying their holidays online visit one of our sites at least once before buying. Value and billboard effect. 14 million hotel searches are made every day in Expedia sites. 1.6 rooms are sold every second, an average of 140.000 rooms are sold per day at Expedia Over 360 000 room nights & $60m sold into Eastern & Southern Africa. We fill 150 Boeing 747’s every day! We land more than 130 paxs a day just in JNB If we put in line all the beds we sold in E&S Africa we could have built a double hightway from Cape Town to Cairo
- 18. Expedia Travel –From MSN to the World Expedia holds a leadership position in nearly every market where we are present We build leading brands that are highly relevant to our partners No.1 hotel specialist, in 54 countries Leading discount travel site reaching price-conscious travelers Leading online travel service provider in China Corporate travel agency operating in 9 countries No.1 community player with more than 22M reviews and opinions No.1 OLTA, in 19 countries Operating more than 100 in-market concierge and activity desks
- 19. One Extranet, onecontract and your hotel is seen and sold worldwide No partner can offer you such valuable exposure at ZERO fix cost does! Expedia – The Power of the Global Distribution
- 20. Content management 95%of US leisure Bookers and 92% of Lookers say descriptive content is important to them. The Web Site Content That Matters To Travelers, Forester research
- 21. Provide excellent serviceThe Web Site Content That Matters To Travelers Forester Research
- 22. US Offline Campaign SMART campaign highlights Welcomerewards benefits Link to SMART Offline Ad Campaign Viral Campaign http://www.youtube.com/watch?v=KMWBXAJ7NIc
- 23. EMEA Offline Campaign London outdoor campaign and Nordic offline ads promote deals Link to creative Digital LCD Screen http://delorean.se/visafilm/?film=Hcom_NO_WRP_SALE_Sept09_V3.flv http://delorean.se/visafilm/?film=Hcom_NO_Blue_SALE_Sept09_V3.flv
- 24. Japan Online CampaignsOnline banner ads promote deals
- 25. Brazil Offline CampaignHoteis.com print ads highlight the advantages of our size
- 26. In-store advertising withExpedia – No more Spray and Pray
- 27. The Destination GrowthModel – Creating a profitable solution
- 28. Some of ourpartners…
- 29. Fuelling Growth withTourism Boards
- 30. We deliver partnershipsoffline too…
- 31. Fuelling Growth TourismBoards Case Study: South African Tourism Campaign 28 Feb – 31 May 09
- 32. What is theBillboard Effect? Exposure on Expedia.com Direct bookings on Expedia Visitation to Partner Site Bookings on Partner Site
- 33. The Consumer PurchaseFunnel Expedia reaches the consumer in various stages of the purchase funnel, most importantly right before the actual purchase. All of these have some value as they reach the consumer throughout the purchase funnel. New Attribution Method AOL Travel/Google Search/Yahoo! Search Supplier Site/Other OTAs /Destination Site or Supplier Site
- 34. Billboard effect Results– Cornell University Increase in Room Nights Booked
- 35. Numbers for East& Southern Africa
- 36. Expedia Inc –Where room nights are coming from
- 37. Focus on SouthernAfrica - Air Source: Expedia Inc Booked data
- 38. Focus on SouthernAfrica – Air Ticket Sales - 2008 & 2009 - Euro to Southern Africa Source: Expedia Inc Booked data
- 39. -12% Q3 FocusAfrica - ADR 2008 vs. 2009 Source: Expedia Inc Booked data
- 40. Focus Africa Bookingwindow vs. ADR
- 41. Booking window patternsare shifting Case Study: Cape Town 27% Source: Expedia Inc Booked data
- 42. Product selection: StarRating YoY ADR 4 Stars Up 7 %
- 43. Room Nights toSouth Africa 2002 – 2009 YTD
- 44. Point of Saleto South Africa
- 45. East Africa RNS2004 – 2009 32 000 RNS to East Africa $6 Million Room Revenue Organic Growth Phase
- 46. Where travelers aregoing - Southern Africa Rank of Africa destinations 2008 vs. 2009 by city 36 Source: Expedia Inc Booked data 114 208 129 109 168 City Rank 2008 Rank 2009 Cape Town 116 80 Johannesburg 345 231 Durban 597 429 Dar es Salaam 580 451 Nairobi 619 411 Accra 634 525 Moved up in rank
- 47. Expedia Hotel Partnercurrent & future If you are not working with Expedia you are not visible. There is a media & transactional partnership All room types. All meal plans. Hotel Description & Pictures. Promotions for next 18 months 2011 Rates Be proactive !!! Easter 2009 promotions still available.
- 48. Anyone can join– www.ian.com
- 49. How can agentsbenefit from Expedia? www.hotelsta.com
- 50. Summary Marketsare showing signs of recovery with excellent growth prospects throughout CES Africa Winners are going to be the hotels that execute during extreme highs and lows. Yielding is key Proactive approach by Tourism organizations by being more result driven This shift online is impacting consumers, intermediaries, and travel suppliers. Internet is changing the way people buy and sell travel (i.e. Cape Town is sold as a long weekend city break!!!) More of the same will take us nowhere. Moving mind set from signing contracts to managing contracts. Shift from being Purchase Managing to Sale Managing Wear online hat when doing business with online Tour Operators. Wear offline hat while doing business with offline tour operators. Flexibility of rates. Expedia is your best option to maximize revenue, reach worldwide audience, learn about e-commerce and benefit from our vast online experience. We are moving into all areas of Africa. Be the first not the last to join us and benefit from doing business online.
- 51. Thank You &Questions ? [email_address] www.joinexpedia.com
Editor's Notes
- #2 Looking at the US and Global economies seem to be getting back on their feet, with the US GDP growth coming in at 3.5% in Q3 and China grow at almost 9%. I would caution, however, that much of the growth that we are seeing is the result of unprecedented stimulus spending from governments all over the world, and relative strength this year versus an economy and consumption which hit the wall as a result of systematic instability and broad based panic last year. At some point the stimulus has to slow, the consumer has to stand on his and her own two feet, and governments have to start to pay back their borrowings. These are not ingredients for a strong recovery. Odds are that the next five years will be challenging and most growth will come from gaining market share rather then a rising tides of economic growth. This will require the hospitality industry in Southern Africa to execute more effectively and innovate faster then competitor destinations. While we have a difficult path ahead of us I have never been more confident of the ability of the tourism sector to expand its current position and grow its economic importance in the region.
- #7 We are the fourth largest online retailer Our systems are built for scale
- #11 We are the fourth largest online retailer Our systems are built for scale
- #20 Distribution Globale: vous etes present dans le monde entier, de la france a la chine, des etats unis a l’australie, du japon a l’afrique de sud. Revenue Management, Visibilité… Present sur de nbreux sites a travers le monde Expedia 13 pages today .com, .ca, .co.uk, .fr, .de, .nl, .it, .es, .com.au, co.jp, .sw, . da, .ng more to come h.com , 30 sites a travers le monde
- #43 4 Star hotels offering deep discounts vs. 3 Star properties gain market share. 5 Star maintain market share.
- #51 Looking at the US and Global economies seem to be getting back on their feet, with the US GDP growth coming in at 3.5% in Q3 and China grow at almost 9%. I would caution, however, that much of the growth that we are seeing is the result of unprecedented stimulus spending from governments all over the world, and relative strength this year versus an economy and consumption which hit the wall as a result of systematic instability and broad based panic last year. At some point the stimulus has to slow, the consumer has to stand on his and her own two feet, and governments have to start to pay back their borrowings. These are not ingredients for a strong recovery. Odds are that the next five years will be challenging and most growth will come from gaining market share rather then a rising tides of economic growth. This will require the hospitality industry in Southern Africa to execute more effectively and innovate faster then competitor destinations. While we have a difficult path ahead of us I have never been more confident of the ability of the tourism sector to expand its current position and grow its economic importance in the region.
- #52 Looking at the US and Global economies seem to be getting back on their feet, with the US GDP growth coming in at 3.5% in Q3 and China grow at almost 9%. I would caution, however, that much of the growth that we are seeing is the result of unprecedented stimulus spending from governments all over the world, and relative strength this year versus an economy and consumption which hit the wall as a result of systematic instability and broad based panic last year. At some point the stimulus has to slow, the consumer has to stand on his and her own two feet, and governments have to start to pay back their borrowings. These are not ingredients for a strong recovery. Odds are that the next five years will be challenging and most growth will come from gaining market share rather then a rising tides of economic growth. This will require the hospitality industry in Southern Africa to execute more effectively and innovate faster then competitor destinations. While we have a difficult path ahead of us I have never been more confident of the ability of the tourism sector to expand its current position and grow its economic importance in the region.