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TED · Kookmin Univ
A Service Design Thinking For Online
Travel Agencies In China
Zhang Xincheng Pan Young Hwan
Dept of Interaction Design Lab
TED · Kookmin Univ
http://events.36kr.com/happy-new-year/5.html
TED · Kookmin Univ
Size of OTA market in China
Iresearch, Annual report of China online travel industry, 2015
TED · Kookmin Univ
• A better tourism
infrastructure ( hardware&software )
• The expansion of china’s middle class
• Relaxation of visa procedures
• Favourable exchange rates
Several factors encouraging tourism
TED · Kookmin Univ
• Major giant company such as Ali, Baidu and Tencent
entered the market, providing intense competition , many
of them capture the market by burning cash;
• Airlines and hotels are increasing their efforts in direct
sale;
• The behavior in pursuit profit maximization caused
amounted complaints about extra charges, refunds and
issues.
Challenges of China’s OTA
TED · Kookmin Univ
Touris
m
Transportatio
n
Accommodatio
n
Entertainmen
t
Purchase
Sightseeing
Eating
Six Elements of Tourism
TED · Kookmin Univ
What is Service Design
 Service design is about making what you do more
useful, usable & desirable for your users, and more
efficient, effective & valuable for you- everyone
loves a great experience.
 Service design is a human-centered approach that
focuses on customer experience and the quality of
service encountered as the key value for success.
TED · Kookmin Univ
Journey Map and Touch Point in Service Design
TED · Kookmin Univ
Stakeholders of Online Travel
Service system of online travel agency
TED · Kookmin Univ
China OTA market share in 2014
Major players
TED · Kookmin Univ
User System
Staff
Hotel
Touchpoints in Accommodation
Infrastructure
Touchpoint
A service design thinking for accommodation
TED · Kookmin Univ
A service design thinking for vacation
TED · Kookmin Univ
• This paper focuses on China online travel industry analysis
with service design thinking, and set out to answer the
question: How to improve Customer experience in the
perspective of online travel agencies; What are the feasible
methods for online travel agencies can use to gain deeper
insights about their customers’ needs, wants and dreams?
• In addition, researchers believe that service design maybe
also an effective measuring standard for OTA industry, we will
continue to study with it.
TED · Kookmin Univ
Thank You

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A Service Design Thinking For Online Travel Agencies In China

  • 1. TED · Kookmin Univ A Service Design Thinking For Online Travel Agencies In China Zhang Xincheng Pan Young Hwan Dept of Interaction Design Lab
  • 2. TED · Kookmin Univ http://events.36kr.com/happy-new-year/5.html
  • 3. TED · Kookmin Univ Size of OTA market in China Iresearch, Annual report of China online travel industry, 2015
  • 4. TED · Kookmin Univ • A better tourism infrastructure ( hardware&software ) • The expansion of china’s middle class • Relaxation of visa procedures • Favourable exchange rates Several factors encouraging tourism
  • 5. TED · Kookmin Univ • Major giant company such as Ali, Baidu and Tencent entered the market, providing intense competition , many of them capture the market by burning cash; • Airlines and hotels are increasing their efforts in direct sale; • The behavior in pursuit profit maximization caused amounted complaints about extra charges, refunds and issues. Challenges of China’s OTA
  • 6. TED · Kookmin Univ Touris m Transportatio n Accommodatio n Entertainmen t Purchase Sightseeing Eating Six Elements of Tourism
  • 7. TED · Kookmin Univ What is Service Design  Service design is about making what you do more useful, usable & desirable for your users, and more efficient, effective & valuable for you- everyone loves a great experience.  Service design is a human-centered approach that focuses on customer experience and the quality of service encountered as the key value for success.
  • 8. TED · Kookmin Univ Journey Map and Touch Point in Service Design
  • 9. TED · Kookmin Univ Stakeholders of Online Travel Service system of online travel agency
  • 10. TED · Kookmin Univ China OTA market share in 2014 Major players
  • 11. TED · Kookmin Univ User System Staff Hotel Touchpoints in Accommodation Infrastructure Touchpoint A service design thinking for accommodation
  • 12. TED · Kookmin Univ A service design thinking for vacation
  • 13. TED · Kookmin Univ • This paper focuses on China online travel industry analysis with service design thinking, and set out to answer the question: How to improve Customer experience in the perspective of online travel agencies; What are the feasible methods for online travel agencies can use to gain deeper insights about their customers’ needs, wants and dreams? • In addition, researchers believe that service design maybe also an effective measuring standard for OTA industry, we will continue to study with it.
  • 14. TED · Kookmin Univ Thank You

Editor's Notes

  1. Thanks to online travel agencies, we can go anywhere with the help of such a mobile phone, technology does make life more wonderful。 This screenshot is actually from my mobile phone, I just bought a ticket back to China with ctrip the last day, it’s really convenient.
  2. With the help of thousands of consumers like me,China’s online travel market is growing rapidly. According to the statistics from iResearch, the transaction scale of payment yielded $409.1 billion Yuan (CNY) in China’s online travel industry in 2015.This marks an annual growth rate of 32.9%, and the online penetration rate reached 10.8%.  
  3. A better tourism infrastructure(hardware&software) The expansion of china’s middle class Relaxation of visa procedures(for outbound tourism) Favourable exchange rates
  4. However, with the emerging development, there are also many problems. Due to these reasons, China Southern Airlines, Air China, Capital Airlines and several other flight carrier, removed all of their ticket sales from Qunar recently,and the war seems to be escalating. For many OTAs in China, the concept “Customer First” only stays in the product technical or profit level, but little consideration about customer experience.
  5. Tourism as an amalgam of products, services and people,it consist of numerous components which are often not physical entities, but rather a combination of processes, skills, and material resources that must be appropriately integrated to result in the ‘designed’ service.
  6. Today, services represent between 60%&70& of GDP of most industrialized countries Whereas design methods have always been applied to products, services have long been considered as a necessary extensio to prodecuts without paying them the same attention than products themselves. Most products today are combined with services thus it is the overall experience that counts and that is judged by customers. The emerging field of service design combines design dethods from product design & interaction design for designing the experience of and the interface to services. A lot of educated interaction designers work in service design.
  7. This figure shows how the underlying target of the designers’ approach to service design. Customer’s service experience is personal and impossible to predefine how a customer should feel, but service designer can study in advance the feelings which may arise at various touchpoints and align them to best fit the desired outcome.
  8. This chart provides a clear view of how the online travel industry works, and the stakeholders in it.
  9. The top three market share of online travel in 2014 were Ctrip, qunar and Ali travel, which accounted for 70.9% of China's online travel market share.
  10. This is a traditional model of interaction design, But when we consider the organization ,the hotel , who provides the service, we can get a framework of a service system together with the staff and infrastructure. And then we can find the touchpoints in the system now, which makes it easier to find the problem and improve the hotel’s service.
  11. Customer journey map is a representation of the steps and emotional states that a customer goes through during a period of time that may include some interactions with your organization. When a customer reaches out to book a flight on Ctrip or Qunar, there are several steps making up a customer’s end-to-end travel journey, customer journey map is just the total view of the trip.
  12. This paper focuses on China online travel industry analysis with service design thinking, and set out to answer the question: How to improve Customer experience in the perspective of online travel agencies; What are the feasible methods for online travel agencies can use to gain deeper insights about their customers’ needs, wants and dreams? In addition, as service is intangible thing, it has been a problem to evaluate service quality, I believe that service design maybe also an effective measuring standard for OTA industry, that’s what I’ll continue to study.