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The killer platfrom that will destabilize the old travel industry business model . By Karl Ziegler

Published in: Travel, Business, Technology
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  1. 1.   <ul><li>B2B and B2C vertically integrated &quot; Tourism low cost booking platforms &quot;. Low Cost - High Quality tourist products ( phase A : 2011 / 12) and related local geolocated products ( phase B 2012 / 2013 ). Proprietary Technology and applications downloadable from the platforms by the supplier and singles workers in remote areas. </li></ul><ul><ul><li>Best Available Price  </li></ul></ul><ul><ul><li>Enhanced Dynamic Package  ( designed ) . </li></ul></ul><ul><ul><li>New Search Engine </li></ul></ul><ul><ul><li>Price / Products Comparator  </li></ul></ul><ul><ul><li>Last Minute   </li></ul></ul><ul><ul><li>Last Second </li></ul></ul>The World in 300 Tourism Low-Cost web sites in a Single Click ! <ul><ul><li>Mobile Geo Located Tools </li></ul></ul><ul><ul><li>Advanced products Geo Located </li></ul></ul><ul><ul><li>Local selling platform for local goods </li></ul></ul><ul><ul><li>Others applications </li></ul></ul>
  2. 2. But now please ... click on the video to meet us
  3. 3. Tourism 2011   - Planet Earth <ul><li>Let's check what is now tourism &quot; The Gross &quot; </li></ul><ul><ul><li>International tourist arrivals grew by nearly 7% in 2010 to 940 million  </li></ul></ul><ul><ul><li>Provide almost 10 % of the world GDP </li></ul></ul><ul><ul><li>The 30 % of the world exports of services . </li></ul></ul><ul><ul><li>An industry that grows since 2003 and only in 2009 saw a little stop. </li></ul></ul><ul><ul><li>Average grows: between 3 to 10 % per year ( data from WTO ) . </li></ul></ul><ul><ul><li>Considered a great opportunity for developing country and reduce poverty. </li></ul></ul><ul><ul><li>The best opportunity for the developing country to boost their economy . </li></ul></ul><ul><ul><li>The unique industry that doesn't be dependent on raw materials , but sun, sea, smile. </li></ul></ul><ul><li>  </li></ul>* Data from WTO ( worl tourism Organization )
  4. 4. And now ... a little IMPRESSIVE study of the World Tourism Business Who makes the money ? How ? Why ? 
  5. 5. Who makes the Money 1 ? 2011 - first Half Year Operating income of $145m was 9% down on last year. ( 2010 )   2011 EBITDA - first Half Year at $258m compared with $256m. 2010           &quot; Benchmarking &quot;     Data from : -   UK Bank & Albion Venture Owned by &quot; Blackstone &quot;  and &quot; TVC &quot; . &quot;GDS - The main Suppliers&quot; <ul><ul><li>Founder : 2004- P.Evans ex First Choice Holidays  </li></ul></ul><ul><ul><li> in 2008 new IT to fasten the sites. ( accomodations ) </li></ul></ul><ul><ul><li>  launch 2009 since then 1 mio.Pax ( packages ) </li></ul></ul><ul><ul><li>Merged with in 2009 ( transfers ) </li></ul></ul><ul><ul><li>Bought in 2011 ( cruise ) </li></ul></ul><ul><ul><li>Made Agreement with ( flights lowcost number 2 ) 2011 </li></ul></ul><ul><ul><li>Advertisment on Tv via Sat Channel - 2011 </li></ul></ul><ul><ul><li>GROSS 2009 | 250 mio £ </li></ul></ul>
  6. 6. <ul><li>Orbitz - Cheap tickets - Away Network - Orbitz for Business - HotelClub - - ebookers - </li></ul>Who makes the Money 2 ? 2010 : 25.1 billions | 2009 : 21.8 billions |  2008 : 21.3 billions |       2010 : 13.8  billions | 2009 : 9.40  billions | 2008 : 5.86  billions |        Data from : - please note the data can be slightly unaccurate Ebitda increase from 30 to 60 % depending on products Revenues increase from 20 to 74 % depending on products
  7. 7.
  8. 8. The core business is ... ? <ul><li>The same for all of them ... since the 70 ' :-) !!! </li></ul>: Expedia 2011
  9. 10. Tourism 2011   - Planet Earth
  10. 11. &quot; In Brief &quot; <ul><ul><li>The Products </li></ul></ul><ul><ul><li>Hotel reservation are the main business </li></ul></ul><ul><ul><li>Air reservation revenue decrease </li></ul></ul><ul><ul><li>Car grows </li></ul></ul><ul><ul><li>Cruise grows </li></ul></ul><ul><ul><li>Organic growth will stand per years!!!!!!!! </li></ul></ul><ul><ul><li>Any company is growing  </li></ul></ul><ul><ul><li>The &quot; New &quot; Products </li></ul></ul><ul><ul><li>Media & Ads - UGC related </li></ul></ul><ul><ul><li>No new tourism products since 1865 </li></ul></ul><ul><ul><li>The main companies </li></ul></ul><ul><ul><li>The Online travel Market </li></ul></ul><ul><ul><li>Focused on grab expanging market share </li></ul></ul><ul><ul><li>Organic and inorganic growth </li></ul></ul><ul><ul><li>Lot of cash </li></ul></ul><ul><ul><li>Depending on Third parties </li></ul></ul><ul><ul><li>No new products </li></ul></ul><ul><li>  </li></ul>
  11. 12. HOW they makes the Money 1 ? affiliates / resellers <ul><ul><li>travel agencies </li></ul></ul><ul><ul><li>travel sites </li></ul></ul>Internet end consumer buyer Pays always full fare AIR / CAR / HOTEL / CRUISE products goes into their DB but not to the T.O / agencies  database GDS & e-marketplaces from their DB our products goes to the ( get 4 to 8 % comm. ) (per sale  1% to 25 % comm.)
  12. 13. The &quot;Basic&quot; Hotel Reservation business model ( highest revenue ) HOW they makes the Money 1 ? <ul><ul><li> provide to hotels the rooms' availability upload extranet sistem. </li></ul></ul><ul><ul><li>hotel provide 15 to 25% commission of the gross room price. </li></ul></ul><ul><ul><li> provide to affiliates'  site/s the i.frame or white label or XML. </li></ul></ul><ul><ul><li> &quot; find &quot; a worldwide strong army of re-sellers. </li></ul></ul><ul><ul><li> penetrate the world without massive marketing expenses. </li></ul></ul><ul><ul><li> provide 25 % of the commission and keep 75 % !!! and be silence !! </li></ul></ul><ul><ul><li> control the supplier by IT and the affiliates with &quot; visibility and IT </li></ul></ul><ul><ul><li> growth and can define new commercials' strategy with suppliers. </li></ul></ul><ul><ul><li>suppliers become totally dependent from unless supplier make their  own places. </li></ul></ul><ul><ul><li>resellers become totally dependent. </li></ul></ul>
  13. 14. HOW they makes the Money 2 ? affiliates / resellers <ul><ul><li>travel agencies </li></ul></ul><ul><ul><li>travel sites </li></ul></ul>Internet end consumers Pays always full fare We Local T.O provide the package at &quot; x &quot; price to National T.O/other If an place - from their DB our products goes to the ( get 4 to 10 % comm. ) National T.O apply and Add on  from 20 to 300 % to the  price we got for the Trip to end consumers OURSELF Local Tour Operator to end consumers <ul><ul><li>Potential loss for Local Tour Operator from 20 to 300 % of the gross price we provide </li></ul></ul>
  14. 15. WHY ? <ul><li>they makes the Money ? </li></ul>Competitive advantages places & CRS / GDS <ul><ul><li>Money = IT </li></ul></ul>Interesting amount of money let investors to step in a growing market that see IT as the first competitive advantage and greatest barrier to competitors . 2. Money = Visibility and visibility, without killer applications or new products, are highly affected by various marketing actions that involve paid services to get immediate visibility into the search engines. 3. Visibility = Better Price the possibility to get great visibility allowed place to garantee a certain amount of sales ; this let emarket place to get allotment / special price that improve revenues .
  15. 16. What to do ? <ul><li>1) create our platforms / sites. </li></ul><ul><li>2) create competetive advantage. </li></ul><ul><li>3) move into undiscovered markets and business models. </li></ul><ul><li>4) create the web 3.0 tourism platform with our products. </li></ul><ul><li>5) create competitors' barriers. </li></ul><ul><li>6) create our competitors. </li></ul><ul><li>7) make commercial agreements with competitors. </li></ul><ul><li>8) create our own NXN ( next generation network ). </li></ul><ul><li>9) create our own QPI ( quality parallel internet ). </li></ul><ul><li>10) creatw our new feauttures that apply to our QPI </li></ul>
  16. 17.   <ul><li>B2B and B2C vertically integrated &quot; Tourism low cost booking platforms &quot;. Low Cost - High Quality tourist products ( phase A : 2011 / 12) and related local geolocated products ( phase B 2012 / 2013 ). Proprietary Technology and applications downloadable from the platforms by the supplier and singles workers in remote areas. </li></ul><ul><ul><li>Best Available Price  </li></ul></ul><ul><ul><li>Enhanced Dynamic Package  ( designed ) . </li></ul></ul><ul><ul><li>New Search Engine </li></ul></ul><ul><ul><li>Price / Products Comparator  </li></ul></ul><ul><ul><li>Last Minute   </li></ul></ul><ul><ul><li>Last Second </li></ul></ul>The World in 300 Tourism Low-Cost web sites in a Single Click ! <ul><ul><li>Mobile Geo Located Tools </li></ul></ul><ul><ul><li>Advanced products Geo Located </li></ul></ul><ul><ul><li>Local selling platform for local goods </li></ul></ul><ul><ul><li>Others applications </li></ul></ul>
  17. 18. The &quot;  Platforms &quot; <ul><li>Products                     : Air Service / Land Services / Packages /  Rent a Car /                                             Dynamic packaging /  + enhanced products & tools . </li></ul><ul><li>Suppliers                    : via XML and ... YOURS via our interfaces ( for local T.O )                                            PLUS 1171 T.O partners spread over 5 continents and                                            in direct contact with us via a Social Network ). </li></ul><ul><li>Prices                           : the lowest of the market and our high quality. </li></ul><ul><li>Selling Channels       : 200 National's Web sites on a 3 hierarchic level - ( City                                           -  Nations - Continent ) . All the sites with an inner search engine.   </li></ul><ul><li>TV                                  : 1 Satellite Tv Channel from  - UK - Partners . </li></ul><ul><li>New products            : Evoluted Dynamic Packaging - Geo Tools - Multimedia                                          Services, Mobile Search, Social Tools + others not specified . APPLICATIONS           : Hotel Booking on line ; Hotels' Room Management; Rent a Car On  we do Provide                Line Booking ; NEW booking On Line for new markets & Products ( </li></ul><ul><li>GOAL                             : enhanced Dynamic Packaging. ( EDP ) .   Private NXN               </li></ul><ul><li>                       </li></ul>
  18. 19. &quot; 300 sites Network - How it Works ? &quot; <ul><ul><li>3 level hierachy ( continents ' data | nations data | cities / locality data ) based on the domains names “ lowcost “  +  aggregator sites . </li></ul></ul><ul><ul><li>Any domain is independent , but got the data from a single DB that stores all the info in related tables. All the domains are connected with 200 link from the others. </li></ul></ul> Level-1 continent Level-2 nation Level-3 locality etc. etc etc. etc. etc etc.etc etc.etc. lowcostbeijingcom etc. etc Internet Please note : due to  of strategic reasons  we  intentionally limited the explanation.
  19. 20. &quot; The Data &quot; ( proprietary tech. ) <ul><li>Rentcar data via XML * </li></ul>Hotel's data via XML * Air Tickets data via XML * Package data Feeding the Network's 200 sites Step 1 ( * already got XML ) + others + others LEVEL 1 - CONTINENTS LEVEL 4 - TIPOLOGICAL LEVEL 3 - CITY LEVEL 2 - NATIONS + others + others
  20. 21. Who we are 1 <ul><li>The Network of T. O - Tourism Content Suppliers : 1400 T.O connected via social Network and from the 5 continents covering the whole world except Afganistan / Tchad / North Korea . ( expected proprietary cooperative platform year 2012 ) </li></ul><ul><li>                                             </li></ul><ul><li>IT booking supplier :   </li></ul><ul><li>3 partners ( ITA / ITA / NZ ) small companies with proprietary tech. providing us </li></ul><ul><li>1) hotels' booking sistem </li></ul><ul><li>2) rent a car booking sistem ( this let us to create our own independent reservations' circuits and to integrate the data in the big e.marketplace  through channel manager as we already provide this service to our hotel customers ) </li></ul><ul><li>Telcom :  </li></ul><ul><li>Satellite provision and necessary capacity on Hot Bird 13° E and Eurobird 9 at 9°E  from an UK based Satellite TV Channel Distributor. Coverage : Eu - North Africa - Middle East. </li></ul>
  21. 22. Who we are 2 <ul><li>IT Department      :  </li></ul><ul><ul><li>Miss Maria  ( ?? )  ( ITA ) - Web designer - &quot; Simply the magic of design &quot; . Speak ITA - UK </li></ul></ul><ul><ul><li>Mr.Corrado ( 30 y ) ( ITA ) -  IT Engineer - DB designer ( coder ) ( won IT national price as per new IT product in images collaborative management ( has his own company ) . speak UK - ITA </li></ul></ul><ul><ul><li>Mr.Daniele  ( 30 y ) ( ITA ) - IT Engineer - Database Designer ( coder ) Python - Java - Geolo- cations Services - XML-RPC -multidata integrations - has been   managing a groups' coder deve- loping part of a FREE OS now on a large scale adoption ) ( own a  company, speak UK - ITA ). </li></ul></ul><ul><ul><li>Mr.Andrea    ( 45 y )  ( ITA ) - IT Engineer - specialist Vocal Portal - Vocal recognition - Vocal reservations - ERP - CRM - ( has his own company ). speak UK - ITA - E </li></ul></ul><ul><ul><li>Mr.Radames ( 27 y ) ( CUB ) - IT Engineer - multidata integration - XML-RPC - Python  - Java - Geo-locations services - ( live in russia ) - speak : UK - E - RUS. </li></ul></ul><ul><ul><li>Mr.Vincenzo ( 65 Y ) ( ITA ) - IT Engineer - Software Analist consultant and formaly retired. Speak UK - ITA </li></ul></ul><ul><ul><li>Mr.Luigi ( 41 y ) ( UK ) - IT Engineer - Java EE, Spring, Grails, PHP + MySQL, Java, Groovy, Prototype. Made the booking on line sistem for a great American Cruise Line. Speak UK - ITA </li></ul></ul><ul><ul><li>Mr. Stefano  ( 26 y )  ( ITA ) - Engineer - ( coder ) e.commerce and sw development. Design and developement  of Geo - Located applications and data uploading sistem. Speak UK - ITA </li></ul></ul><ul><ul><li>Mr. Brada ( 42 y ) ( SER ) Coder -design reservation platform and data integration procedures Speak ( HU - SER - UK )  </li></ul></ul><ul><ul><li>Mr.Djalma ( 47 y ) ( BRA ) - Engineer - Geo-Location tools and applications. C C++ | media plugins integrations and design. Speak UK - E - P </li></ul></ul><ul><ul><li>Mr.Gerry ( 42 y ) ( NZ ) - Sw Developer - Designed and provide our own car reservation sistem. Speak UK - ITA </li></ul></ul><ul><ul><li>Mr.Bertalan ( 39 y ) ( HU )-   Servers - Speak ITA - HU . </li></ul></ul><ul><ul><li>Mr.Ziegler ( 45 y )  ( CH ) - T.O & Founder and CEO -Interface's and booking designer . Speak UK - E - F - I - D. </li></ul></ul>
  22. 23.   &quot; What are we doing &quot; web 3.0 ( the web of the Database ) <ul><ul><li>Creating a proprietary web 3.0 platform able to provide a real enhanced Dynamic package. ( year 2012 )   </li></ul></ul><ul><ul><li>Provide the best price to our customer ( place / travel agent. / end consumers / B 2 B  platform and B2C platform ). ( y 2012 ) </li></ul></ul><ul><ul><li>Creating new search engines based on new criteria and operating on our Database. ( y 2012 )  </li></ul></ul><ul><ul><li>Other features and Business model ( competitive advantage not possible to explain ) - ( y 2012 )  </li></ul></ul><ul><ul><li>Creating the only way for travel agents to not to loose their clients once the progress will cut them out from the tourism business. ( y 2012 / 13 ) </li></ul></ul><ul><ul><li>Creating the most reliable &quot; tourist info database &quot; made by professionals, and available to all customers. ( y 2013 ) </li></ul></ul><ul><ul><li>To create &quot; THE &quot;  I.P.T.I &quot; INDEPENDENT PARALLEL TOURIST INTERNET &quot; based on Professional Tourist Data - our data !!!  ( y 2014 ) Not depending from major search engine but adopting the tools offered from the main ones  </li></ul></ul><ul><ul><li>Using our own NXN ( next generation network .  y 2014 )   </li></ul></ul><ul><ul><li>Add news and real time updates as a service for residents abroad. ( y 2014 ) </li></ul></ul><ul><ul><li>To create a multimedia tourist TV channel ( we got Sat.Channel  supplier  in UK) with focus on T-Commerce. ( y 2015 ). </li></ul></ul>
  23. 24. &quot; What we provide to Partners ? &quot; <ul><li>We do provide to our worldwide partners via any </li></ul><ul><li>&quot; platform's and / or  website &quot; :  </li></ul><ul><ul><li>Free hotel room management application ( partnership tech . ) </li></ul></ul><ul><ul><li>Free booking on line . ( partnership tech . ) </li></ul></ul><ul><ul><li>Free rent a car booking sistem. ( proprietary tech . ) </li></ul></ul><ul><ul><li>The selling channels ( 200 sites ) for the products . (  proprietary tech . ) </li></ul></ul><ul><ul><li>Channel Manager to the biggest place ( partnership tech . ) </li></ul></ul><ul><ul><li>Other new booking / software for new identified future market ( ready ). ( proprietary tech . ) </li></ul></ul>
  24. 25. Since Expedia is currently the largest and most diversified online travel agency in terms of gross bookings, or the value of travel services purchased, it enjoys certain competitive advantages. It is better able to negotiate with participating merchants and partners. Expedia also has the advantage of owning a number of websites that cater to many different market segments ranging from families with children to luxury travelers. Unlike Orbitz, for instance, the impact of troubles in the airline industry have been limited due to its strong hotel-booking business. By expanding the breadth of its travel service searches and the variety of packages it puts together, Expedia can take advantage of its brand name recognition and tap into a rapidly developing online travel industry. competes with Expedia, Orbitz Worldwide, Sabre, Venre, Tui Travel, Gullivers, octopustravel, Superbreak,, Hotel Reservation Service, Ctrip, Rakuten, Wotif, Google, Yahoo!, Bing, AOL,,,,, TripAdvisor, Travelzoo,, Galileo, Travelport and Amadeus.
  25. 26. The State of the Art 10 / 07 / 2011 Planet Earth T he Tourism market now : The market opportunity left open by the incumbent are obvious: 1) DYNAMIC PACKAGING  2) NEW PRODUCTS LINE ( not affordable for the big due to no DB ) 3) NEW FRONT LINE PARTNERSHIP PROGRAMS ( sorry but this is OUR     advantage :-) ) 4) NEW APPLICATIONS TO OPEN NEW MARKET( sorry but this is OUR     advantage :-) ) 5) ON SATURATED MARKET NEW SELLING WAY 6) NEW IT SELLING WAY ( sorry but this is OUR advantage :-) ) 7) WEB 3.0 ( just tape it in the search box and see what is it :-) 8) SOCIAL APPLICATIONS ( sorry but this is OUR advantage :-) 9) NEW company POSITIONING    
  26. 27. The State of the Art 01 / 01 / 2009 Planet Earth Slide 03 <ul><li>Why ? </li></ul><ul><li>  </li></ul><ul><li>Very simple :  </li></ul><ul><li>  </li></ul><ul><ul><li>The fast web tourism market grows  </li></ul></ul><ul><ul><li>The lack of professional innovative skills in tour operating ( but is not totally true :-) ) </li></ul></ul><ul><ul><li>The lack of web 3.0 </li></ul></ul><ul><ul><li>The lack of interaction between IT and users / customer ( tipical of the western marketing strategy </li></ul></ul><ul><ul><li>The lack of uniformed IT solution and DB </li></ul></ul><ul><ul><li>The predominance of the IT ( luckily ) in the tourism industry ( just check the Board of the Big Bosses and see ) . </li></ul></ul>
  27. 28. The State of the Art 01 / 01 / 2009 Planet Earth Slide 03 Let's see who is doing well and who lead some defined market ...  his Strenght and his Weakness   (Notice : this is not a SWOT analization only a shrinked and modest description  :-)   We will now focus on 2 business model that are leading our business model.
  28. 29. The State of the Art 01 / 01 / 2009 Planet Earth Slide 03 Analization of the 3 main business models   <ul><li> place providing </li></ul><ul><ul><li>hotels ( ( using outsource resources / Third Party DB.) </li></ul></ul><ul><ul><li>air - tickets reservation ( using outsource resources / Third Party DB. </li></ul></ul><ul><ul><li>rent a car ( using outsorce resources / Third Party DB. </li></ul></ul><ul><ul><li>packages : using third Party DB and </li></ul></ul><ul><ul><li>basic dynamic-packaging </li></ul></ul><ul><li> place providing </li></ul><ul><ul><li>hotels ( ( using outsorce resources / Third Party DB.) </li></ul></ul><ul><ul><li>air - tickets reservation ( using outsorce resources / Third Party DB. </li></ul></ul><ul><ul><li>rent a car ( using outsorce resources / Third Party DB. </li></ul></ul><ul><ul><li>packages : using third Party DB and basic dynamic-packaging - interesting fairly new products available </li></ul></ul>
  29. 30. The State of the Art 01 / 01 / 2009 Planet Earth Slide 04 COMPETITIVE ADVANTAGES   <ul><ul><li>IT  ( undoubtly efficient ) </li></ul></ul><ul><ul><li>Selection ( all the classic services available ). </li></ul></ul><ul><ul><li>Brand equity ( magnificent brand awarness from the market </li></ul></ul><ul><ul><li>Lack of aggressive &quot; product oriented &quot;  competitors ( till now ) </li></ul></ul><ul><ul><li>Money ( an interesting amount of $ to deal with see : </li></ul></ul><ul><ul><li>IT : NRU see </li></ul></ul><ul><ul><li>Selection ( complete and fairly innovative. </li></ul></ul><ul><ul><li>Brand equity ( very very good ! ) </li></ul></ul><ul><ul><li>Competitors  : not existing due to the brand equity... unless on a single nation's market.. >> competitors offer last minute within  theirs place &quot; on a kind of &quot; brand extension &quot; model </li></ul></ul><ul><ul><li>Business model : the brand give them a very good advantage if able to keep the products competitive and unless the arrival of packages price comparative applications </li></ul></ul>
  30. 31. The State of the Art 01 / 01 / 2009 Planet Earth Slide 04 WEAKNESS <ul><ul><li>IT  ( no new features  ) </li></ul></ul><ul><ul><li>Selection (  only the classic services available ). </li></ul></ul><ul><ul><li>Brand equity ( perception of an IT company dealing in Tourism and not an &quot; emotional &quot; travel company there is no &quot; Soul &quot; in them </li></ul></ul><ul><ul><li>Lack of aggressive &quot; product oriented &quot;  competitors ( till now ) </li></ul></ul><ul><ul><li>Difficulty to deal with the supplier due to the number of them . </li></ul></ul><ul><li>  </li></ul><ul><ul><li>IT ( any new application ? we hope so ) </li></ul></ul><ul><ul><li>Selection ( difficult to manage eventual new products if they have any coming  ) </li></ul></ul><ul><ul><li>Brand equity ( sensitive to the concept of the best price ... ) </li></ul></ul><ul><ul><li>Business model : can the concept of &quot; lastminute face the future communication - platform and comparior site  ? </li></ul></ul>
  31. 32. <ul><li>  </li></ul><ul><li>1) T hey makes big money with mainly third party supplyer giving access to their DB </li></ul><ul><li>2) can't invent the &quot; new &quot; </li></ul><ul><ul><li>'cause not uniformed DB , </li></ul></ul><ul><ul><li>not available IT to put the data on line from the local supplier, </li></ul></ul><ul><ul><li>and finally the best local supplier in the world countries are technological at the stone age, </li></ul></ul><ul><li>  </li></ul><ul><li>3) the mass of data they deal with, is simply too much. </li></ul><ul><li>4) they have not a real advante but the technology . But Technology is a commodity </li></ul><ul><li>and the FUTURE is PRIVATE SUPPLIERS NETWORK. </li></ul><ul><li>With their own private technology and cetralized price level control. </li></ul><ul><li>  </li></ul><ul><li>5) the focusing on the IT allowed competitor to focus on the &quot; best way to provide the enourmous quantiy of data &quot; available in teh web, and to focus on the new products that is what really is important... the content = the travel and the services. </li></ul><ul><li>  </li></ul>&quot; In Summa &quot;
  32. 33. <ul><ul><li>Let 's copy it and do it better ! The main 15             ( Banzai Japan ) </li></ul></ul><ul><li>  </li></ul><ul><li>1) To create a step by step worldwide supplier network adpting uniformed DB and standard and communications standards ( see point 2 ) </li></ul><ul><li>2) Uniformed DB and application provided by us ( our partner Industrial Partner is a SW house quoted at the national stock market ). </li></ul><ul><li>3) Let's fill the 283 www.lastminute...  .com single-nation micro-site with classic service. </li></ul><ul><li>4) Launch new application and open new market. </li></ul><ul><li>5) Add the new products. </li></ul><ul><li>6) Add dinamyc packaging features operating on our private platform. </li></ul><ul><li>7) Add search sistem n°1( private details to partners only ) </li></ul><ul><li>8) To create an upper level of nation site . </li></ul><ul><li>9) To create an upper level of continental site. </li></ul><ul><li>10) To create special search engine &quot; on our network only, with special features &quot; </li></ul><ul><li>11) Add multimedia quality </li></ul><ul><li>12) To create places with planned features ( private details to partners only ) </li></ul><ul><li>13) Present to the market the &quot; 2° price level &quot; platform </li></ul><ul><li>derived from the platform number one  ( private details to partners only ) </li></ul><ul><li>14) Add multimedia high quality level support ( private details to partners only ) </li></ul><ul><li>15) Adoption of Level 3 selling sistem. </li></ul>Then ?
  33. 34. Step 1  &quot; Low Cost Invasion ! &quot; <ul><li>N° 203 lowcost web sites... .com    </li></ul><ul><li>web tourism platform! </li></ul><ul><li>  </li></ul><ul><li>Time to market : starting from Spring 2012 </li></ul><ul><li>Beta Test          : already from 07 / 2009 </li></ul><ul><li>Suppliers             : selections on the go    </li></ul><ul><li>  </li></ul><ul><li>DB   Archit.        : &quot; Mahatma Platform - web 3.0  &quot; privately designed and owned </li></ul><ul><li>The Search        : new searching sistem ( sorry but is Top Secret ...  ) </li></ul><ul><li>The Features      : last minute packages , last second packages,  dynamc packaging,                                packages price comparison, direct access, multimedia support and more The Products      : all the classics available ones, plus 200 more | search engine new gen.      </li></ul><ul><li>The Network      : worldwide private Tour Operators. </li></ul><ul><li>The Group           : 15 friends brains from the Tourism, IT, Marketing, all from various country. </li></ul><ul><li>The Investors     : Swiss Venture Capitalist - Private Investors - Worldwide Tour Operators. </li></ul><ul><li>The Location      : &quot; Switzerland &quot;  - Geneva City. </li></ul><ul><li>The Mission        : To change the Tourism Buying Sistem .. and invent the New Tourism. </li></ul>
  34. 35. <ul><ul><li>3 Level , B2B, B2C, C2C, WEB 3.0 - NRU ( near you Technology ) </li></ul></ul><ul><ul><li>world's nation T.O network  + nationals place /platform , providing : 1. &quot; advance booking &quot; 2. &quot; last minute &quot; 3. &quot; last second &quot;  4. &quot; dinamyc packaging &quot; 5. &quot; price comparison &quot; 6. &quot; softwares to create new markets &quot; on  ASP model 7. &quot; direct offer from direct local supplier &quot; 8. &quot; high quality multimedia support &quot; 9. &quot; packages price comparator  &quot; 10&quot; NEW SEMPLIFIED SEARCH INTERFACES 11&quot; NEW SEARCH ENGINES 12&quot; touch screen friendly 13&quot; T-Commerce &quot; 14&quot; NRU content provider </li></ul></ul>&quot; Mahatma Platform 2010  &quot; DB Vision 3.0
  35. 36. &quot; Mahatma Platform 2010  &quot; web 3.0 <ul><ul><li>Applications &quot; for the new BTR ( Buy Tourism Revolution) on of the responsibles for Tour Operator Intermediation Cancellation. </li></ul></ul><ul><ul><li>In short a platform able to provide to the market, by a number of single NATIONS' sites: selected resources / packages  at a granteed quality at a lowest price and capable to supply the data via web / sms / TV-SAT / T-Commerce / NRU Tech . </li></ul></ul><ul><ul><li>  </li></ul></ul><ul><ul><li>The opportunity to build your own package the way you like by &quot; in house &quot; specially designed softwares used by our suppliers / partners in order to create new markets for the available &quot; single lines  / combined &quot; products . </li></ul></ul><ul><ul><li>The possibility to choose the desired search engine and interfaces to find and create your trip. </li></ul></ul>
  36. 37. The Data 2009 -The platform has the following data HOTELS NOW : availability from Booking & Agoda an agreement with is on process. Comparior compares all the top online-hotels providers. LATER : we will switch to our direct hotels fare agreement, utilizing our own reservation sistem already available thanks to the fact that we will provide booking online to developing countries hotels on a ASP model, our sistem is already integrated with + + ITWG + . AIR-TRAFFIC Still not decided wich supplier has to be used. For Low Cost Airlines we got www.volagratis.con xml. currently studing the available partners giving affiliations' programs. RENT a CAR Now  : data from external Supplier for the developed country. In the other country we will use our own rent a car reservation sistem. LATER : we will switch to  our rent a car network. See  NEXT SLIDE. LAND SERVICES We do utilize &quot; Local Partner Supplyer &quot; ( LPS ) and the services are located  uploadead and identified in a google simple &quot; spreadsheet &quot; that can export the data in CSV ready to go in a DB located in our German Server. We do use station for almost anything.. low cost, efficient, eco-friendly.   These data are the available ones for the  : dinamic packaging for certain destinations and tourist product lines using our own designed sotware . ( info available only after no concurrence agreement )
  37. 38. Rent a Car Private Network   A Step by Step private Rent a Car Network Supplier   NOW 2009 : we get the availabilities from partners that provide us the service and a commission on an &quot; Affiliation Program &quot; agreement.   GOAL : to create our own worldwide private supplyer network focusing on emerging country. 1) identifiy the supplier. 2) provide the reservation sistem to the choosen supplier in the choosen destination . 3) use of our reservation sistem for the point 2. 4) start build &quot; dynamic packaging using the various XML provided by the partners. and our own database, in an optic web 3.0. 5) start to build the &quot; Travel Maker Engine &quot; we designed for the destination choosen.   EUROPE                    LATIN AMERICA      AFRICA   ASIA
  38. 39. The Necessary Data <ul><li>Necessary Data </li></ul><ul><li>  </li></ul><ul><ul><li>Packages </li></ul></ul><ul><ul><li>Land Services </li></ul></ul><ul><ul><li>Multimedia </li></ul></ul><ul><ul><li>Transfer </li></ul></ul><ul><ul><li>Cars Availability ( in order to use our reservation sistem ) </li></ul></ul><ul><li>  </li></ul>By our Network Partners <ul><li>Classic Data Now available  : </li></ul><ul><ul><li>Airfares </li></ul></ul><ul><ul><li>Rent a Car </li></ul></ul><ul><ul><li>Hotels </li></ul></ul>Main Supplier by &quot; Affiliation Program &quot;.
  39. 40. Step 1  &quot; Last Minute Invasion &quot; <ul><li>263 &quot; lastminute ... .com   &quot;  world network </li></ul><ul><li>T he beginning : </li></ul><ul><li>It was exactly 10 years ago... after opening my 2nd company with less then 5000 $ and 15 years of travelling experience, various jobs, many books on sales, marketing, psicology, top manager stories, communication, and firing myseld from a very high salary job, that i found me in the booming &quot; .com &quot; Era ! </li></ul><ul><li>  </li></ul><ul><li>It has been a fantastic time; so many ideas and business models where getting money despite the fact that there was not enough band to make them works.. but some resisted ... the &quot; making money company &quot; ... one was &quot; &quot;  an italian 4 young people company; 3 physics and 1 economist started an hotel reservation sistem and took the way to the success... it was the wake up bell ringing and ringing in my head ... i studied the market for more then 6 month trying to find the winnign ones , but the business models where not attachable ( i had no money, no time and had to run my company ) ... slowly  the concept of &quot; last - minute &quot; start bouncing here and there in the market and one night ... ( also thanks to a Japanese Marketing Super Book by Nonaka & Johansson ) the brain doesn't stop elaborate the data ever, i incredibly woke up at 4 am. with a striking vision painted in front of my blind eyes in the dark of the night ... the result of 4 years of hard studies, work and poor but very happy life  !!! I could get in the market from a &quot; niche &quot; ... wait ! but why not IN ALL the &quot; niche &quot;?  </li></ul><ul><li>  </li></ul><ul><li>A frantic night and day long connection ( modem 56 k ) and i found miself with some 250 &quot; www.lastminute... .com &quot; domains ( the whole world by single nation more or less ...  a selling platform .. just 10 years in advance :-) and my poor bank account crying, while Bob Parson of  was gently becoming richer on a long term project by a Swiss Visionary... &quot;   gent inspired by the &quot;  Great Master Mr.Thomas Cook - Mr.Alfred Kuoni - Mr.Vladimir Raitz &quot; </li></ul><ul><li>  </li></ul><ul><li>In 10 years we build the architecture of the platform, found the best brains, designed new searching sistems, and futurized the tourism world in relation to the the IT and the Telcomm. THE WAITING HAS BEEN LONG, watching IT specialist with money, becoming leader in the market without probably not even knows where is &quot; lovely mother &quot; Kathmandu ...but know the time has arrived and we are very happy to challenge the best one and see if our inspiring Master &quot; Cook - Kuoni - Raitz &quot; will be proud of us . </li></ul><ul><li>  </li></ul>
  40. 41. Business Model Overview 1) Brand Awareness : the smartest move is that we don't need to spend a fortune for the brand awareness : any humans has inside is beain the well radicated concept of the lowcost.       1) The domains name : in the last 2 years we checked the search engine &quot; friendlyness &quot; to the alfabetic string of : &quot; lowcost... &quot; it has been very satisfying due as you all know that search engine like the domain title at first and then down the standardyerarchy  2)     : any of the domains has a direct link o the other 200 proving to be an effective advantage for the platform. The sites domain’s name are expressly indicating a single    destination in order to become the most competitive site for “ that “ destination   ( this can let customers to remember the site name and to go straight to his desire and moreover to avoid a “ specific search “ in other biggest sites ). The hotel’s data comes from XML partners, ( where there are no data like in Africa we will adopt our booking application as possible , providing that by our local partners ). The Rent Car Data comes from XML partner. The flights engine comes from XML partners. This will lead to a DB made by 2) the creation of an independet search engine that works on our data only. 3) dynamic packaging ; ( acquisto combinato prodotti dei singoli database dei singoli siti monotematici es: moto + bed & breakfast + guida alpina senza limiti di prezzo e periodo di prenotazione) 5) dinamyc low cost ( motore di selezione dei singoli prezzi più bassi dei “ last minute “ e loro visualizzazione in siti solo LOW COST evitando la consultazione delle offerte comparate. In altre parole “ il motore “ pesca “ i best price di ogni singolo “ sito low cost “ e “ lastminute “ di quelli da noi creati. 6) dinamic last minute (acquisto combinato prodotti dei singoli database dei singoli siti monotematici es: moto + bed & breakfast + guida alpina in “lastminute “ entro le 4 / 12 / 24 / 48 / 72 ore; associare riduzione automatica del prezzo alla scadenza oraria; es: a 72 ore riduzione 20 % , a 48 ore 30 %, a 24 ore 40 %, a 12 ore 50 %, a 4 ore 66 %.) 7) espansione / clonazione dei siti per regioni italiane. 8) espansione / clonazione dei siti per stati del mondo. A 
  41. 42. Business Model Overview <ul><ul><li>The 200 sites are aimed to create a private updated realtime platform that feed all the sites and new coming one. </li></ul></ul><ul><ul><li>Any site is related to 3 local office choosen by the Headquartier, the 3 office will provide local support for the passengers when needed and will supply the services and upload updated data and multimedia products, and will provide tactical plan according to the local business behaviour. </li></ul></ul><ul><ul><li>The platform is designed in accordance with the OTA </li></ul></ul>
  42. 43. A &quot; LowCost &quot; company <ul><li> ( uk ) The group is backed by Albion Ventures, independent venture capital investor, which manages over £200 million . </li></ul><ul><li>  </li></ul><ul><li>( Data : with 4 web sites )  “We are on track for a million passengers in the UK and we think Germany will be bigger, probably in three to four years,” Hunt said who predicted Low Cost will have up to five foreign sites within a year. </li></ul><ul><li>Hunt said since the group switched platforms to iVector in 2008 business has “taken off” claiming passenger numbers are tracking at 140% to 150% up year on year . This is the first year Low Cost has a full year comparison using iVector. </li></ul><ul><li>  </li></ul><ul><li>Rossello-Evans said that  since 2009 Lowcost added Resorthoppa and Ideal Cruising to its portfolio . </li></ul><ul><li>“ We have been buying businesses and it’s about consolidating what we have got and investing in the core. We are about 50% up year on year and the return on investment is good...  </li></ul><ul><li>Video support </li></ul><ul><li>To assist in this, Lowcost is investing in both its content and social media teams. It hopes to add 200 videos to the 70 currently on its YouTube channel this year to showcase key product, and is using students to write copy for its website including hotel and resort guides.   </li></ul><ul><li>  </li></ul><ul><li>Founded in 2004 by Paul Evans, former managing director of First Choice Holidays </li></ul><ul><li>  > The group reported an increase in sales to £240 million in 2009-10 </li></ul><ul><li>  > The Lowcost Travel Group has teamed up with easyJet to supply product to the easyJet Holidays brand, which is tipped     to become the third-biggest UK package holiday player </li></ul><ul><li>  >  based in East Grinstead  the company moved all of its businesses this year into Gatwick’s Beehive building </li></ul><ul><li>  > The group says it is on track to achieve its target of being a £1 billion business </li></ul><ul><li>The group also consists of:  > the consumer-facing website  > the trade accommodation supplier  > the resort transfers company founded in 2004 and brought into the group in 2009  > Ideal Cruising: the specialist website brought into the group in 2010 </li></ul><ul><li>  </li></ul>
  43. 44. The Lowcosttravel Group Ltd. is delighted to report its audited financial results for the full year ended 31st October 2009 and we’d like to take this moment to thank you all for helping us. To set the scene: - The total transaction value for the group has more than doubled - The operating profit is up by 148% - We have been recognised as the 20th fastest growing company in the UK by Fast Track 100 - The amount of people that booked with the group is 5 times greater The site forms only one part of the group, but with the site’s super-fast technology (???) ... we have seen exponential growth with sales to Egypt, Turkey, Balearics and Canaries up by over 200%.