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Helping People Go Places
Through The Power of Technology
Derk Brinxma - Partner Marketing Manager Central Europe
#DigiTravel
A FEW OBSERVATIONS
RETAIL YESTERDAY
3
RETAIL TODAY
RETAIL TODAY
TAXI INDUSTRY YESTERDAY
TAXI INDUSTRY TODAY
BANKING YESTERDAY
BANKING TODAY
FIND YOUR DREAM WIFE/MAN YESTERDAY
FIND YOUR DREAM WIFE/MAN TODAY
THE TRAVEL INDUSTRY:
On Average customers will
visit 121 pages before they book
*UK data from Expedia‘s user lab
121
When we travel, we invest two of our most
limited and most valued resources
TIME & MONEY
EVERYBODY WANTS A DREAM HOLIDAY
Prices and availability are continiously changing
This ever changing supply can be hard to
grasp for the average person
16
Broad and
diversified
SUPPLY
Properties
500K+*
Airlines
500+
Car rental
companies
150+
Online bookable
vacation rentals
1.5M*
Unique activities
25K+
High volume &
diversity of
DEMAND
Calls handled annually
55M
Monthly visits1
600M+ in
75+ countries
Active corporate
travelers
1.6M+
Powering
150K+
offline travel agents2
Scale and relevance
Ability to test &
innovate faster
Best in class customer
& partner experiences
World’s largest, diversified travel platform
Notes: Expedia, Inc. data shown as of 12/31/16. 1Monthly visitors based on data for Brand Expedia (including Travelocity and Wotif), Hotels.com, Orbitz Worldwide, HomeAway, trivago and Hotwire combined during 2016. 2Offline travel agents
based on number of sales agents in Global Customer Operations, Expedia Affiliate Network (EAN), HomeAway, Classic Vacations, CruiseShipCenters, Travel Agent Affiliate Program (TAAP). *Stats from 30/09/2017
Air Tickets
+32%
Room Nights
246M
+21%
Car Rentals
+30%
Activities Tickets
+35 %
EXPEDIA
2016 YOY
BUILDING SCALE ADVANTAGE ACROSS
SPECTRUM OF TRAVEL PRODUCTS
Note: Over the last 3 years we have spent $2bn in technology to solve these problems and increase engineering footprint by 10x since 2010. * stat from 2016
6.7bn
200 page books
Enough
data to fill
189bn
Rows of Consumer
Behaviour Data
With over
100s
Data Scientist
and Analysts
And
WHY IS TECHNOLOGY THE
KEY TO SOLVE THESE ISSUES?
Hundreds of billions of predictive calculations performed annually to inform
marketing decisions driving selling & marketing spend of ~$4.3B*
3. CONSTRUCT A HYPOTHESIS
4. TEST AS QUICKLY
AS POSSIBLE
5. ANALYZE /REPORT/
REPEAT
1. ASK A (SIMPLE)
QUESTION
2. COLLECT
OBSERVATIONS
THE SCIENTIFIC METHOD IS THE STATE -OF-THE-
ART SYSTEM TO DE-RISK INVESTMENT
50
100
450
775
1,300
1,375
1,500
2010 2011 2012 2013 2014 2015 2016
29x
Test velocity
Brand Expedia
Test volumes
VOLUME IS GIVING
IN ADVANTAGE IN
INNOVATION
1500+
1/3 work
1/3 fail
1/3 don’t move the needle
TAKING THE SCIENTIFIC ROUTE PAYS OUT
CREATING CHANGE STEP BY STEP
1
%
1.Matrix
factorization
2.K-means
Clustering
3.Logistic
regression
4.Gradient Boosted
Decision Trees
5.Search
optimization
NEWEST MACHINE
LEARNING ALGORITHM
1,000s of choices in major
markets
Shoppers can only consider a
few
Simple filtered searches
aren’t enough
Need to surface the best
offers automatically
SO MUCH CHOICE
DIFFERENT EXPERIENCES IN
THE SAME HOTEL
WEEKEND TRIP
BU SIN ESS TR IP
LEARNING TO RANK
EVERY PU R C H ASE AN D SEAR C H IS
LOGGED
PRICE, LOCATION, REVIEWS, STAR RATING, SEGMENT
PREFERENCE, PERSONALISATION, CUSTOMER
EXPERIENCE
BILLIONS OF ROWS OF TRAINING DATA
SOPHISTICATED ENSEMBLE MODELS
10 BILLION
POSSIBILITIES…
BGK to TKY
50 - 100 Flights
1 stop
10,000,000,000
2 stops
Nn = trillions+
3 Seconds
$417.00
$400.00
With the flight booking only price matters…
Is that actually true?
IS THIS A GREAT
PRICE?
IS THIS A GOOD PRICE?
IS THIS A GREAT
PRICE?
IS THIS A GOOD PRICE?
IS THIS A GREAT
FLIGHT FOR ME
How
What Why Understand WHAT people do,
HOW they do it,
and know WHY they do it.
Only like this we can develop
solutions which address the
what how and why
OUR
EXPERIENCE
IMPROVES AS
YOU INTERACT
Hey Cortana, ask Expedia
about my upcoming flight.
Hey Alexa, ask Expedia to
change my flight to the
next day.
Hey Skype, ask Expedia to
send the address of my
hotel.
Hey Facebook, ask Expedia
to connect me with a travel
representative.
CHAT BOTS
HELPING PEOPLE GO PLACES

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Expedia Webwinkel Vakdagen

Editor's Notes

  1. We have user labs set up globally (US, EMEA, Asia) providing a constant stream of insight on customer needs
  2. We have user labs set up globally (US, EMEA, Asia) providing a constant stream of insight on customer needs
  3. We have user labs set up globally (US, EMEA, Asia) providing a constant stream of insight on customer needs
  4. Hotel +21% Air + 32% Car +30% Activities +35%
  5. In the past three years, we invested over $2 billion in technology spend to drive the replatforming of Brand Expedia and Hotels.com and increase velocity of innovation across all of our brand, supply-facing and infrastructure functions.
  6. In 2010, we began a path to transform our platform and introduced a test & learn approach to innovation rooted in data. We haven’t looked back.   Our test & learn methodology makes sure our innovation is customer-led and verified by real data & insights. We have invested in technology to increase the velocity of innovation to the tune of $2B across the past three years. Two factors that overhauled Expedia: heavy tech investment and commitment to test and learn Test & Learn methodology/influence on Expedia’s culture Innovation is customer-led/verified by real data & insights
  7. Through our scale, we have access to better travel data than anyone in the industry, and we make our data work hard to create a better, personalised, customer experience. The biggest challenge we face in travel is to make the inspiration to booking phase as seamless and frictionless as possible. 307,000 properties / 475+airlines / 15,000+ activities More than 1B flight searches/month were conducted across our Expedia brands. All this traffic gives us incredible intelligence that serves as the foundation to our test & learn innovation strategy. Every search is an oppty to understand search patterns – allows us to surface better routes, faster routes, better priced routes. Ultimately, this allows us to innovate quicker and more often in order to create a better customer experience.
  8. We treat our selection algorithms as a “learning to rank problem” -- they are algorithmic and data driven. For example, our travel graph tracks the billions of searches done on the Expedia websites and the hotels that were clicked and purchased. We combine this with all kinds of information about the hotels. Everything from pricing for that specific stay to trended bookings (aka popularity), to review data, star rating, location, segment preference and more. The data and algorithms then tell us what to show – these placements aren’t done by a team of merchandisers and we are trying to be fair and also show the best price / value.
  9. We have user labs set up globally (US, EMEA, Asia) providing a constant stream of insight on customer needs
  10. The best “offer” is sometimes subjective. Families tend to want quieter properties with kitchens, pools and amenities like childcare Business travelers want a clean safe room, with business amenities and close to work and/or airports (some) singles just want to party These effects can be subtle – but if you the relationship between, price, location, reviews and segment preference right, you can really help your customer find the right property for them and increase customer satisfaction
  11. We treat our selection algorithms as a “learning to rank problem” -- they are algorithmic and data driven. For example, our travel graph tracks the billions of searches done on the Expedia websites and the hotels that were clicked and purchased. We combine this with all kinds of information about the hotels. Everything from pricing for that specific stay to trended bookings (aka popularity), to review data, star rating, location, segment preference and more. The data and algorithms then tell us what to show – these placements aren’t done by a team of merchandisers and we are trying to be fair and also show the best price / value.
  12. We have user labs set up globally (US, EMEA, Asia) providing a constant stream of insight on customer needs
  13. We have user labs set up globally (US, EMEA, Asia) providing a constant stream of insight on customer needs
  14. We have user labs set up globally (US, EMEA, Asia) providing a constant stream of insight on customer needs
  15. We have user labs set up globally (US, EMEA, Asia) providing a constant stream of insight on customer needs
  16. We have user labs set up globally (US, EMEA, Asia) providing a constant stream of insight on customer needs
  17. Our UX research team uses methods and tools that allow us to understand user behavior; importantly, what people do, how they do what they do and why they do what they do. These insights allow us to design solutions that match real user behavior. This is the essence of user centered design—products that enable people to do what they need to do in a way that matches their natural behaviors and habits.
  18. We have user labs set up globally (US, EMEA, Asia) providing a constant stream of insight on customer needs
  19. We have user labs set up globally (US, EMEA, Asia) providing a constant stream of insight on customer needs