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e-Travel The Channel to Success

e-Travel The Channel to Success. Ian Wheeler April, 2003. Agenda. Global online trends Is online travel important for offline agencies About e-Travel Working in partnership. Global Trends - Online. The global picture. New Entrants. Shrinking Volumes. Margin Pressure.

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e-Travel The Channel to Success

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  1. e-TravelThe Channel to Success Ian Wheeler April, 2003

  2. Agenda • Global online trends • Is online travel important for offline agencies • About e-Travel • Working in partnership

  3. Global Trends - Online

  4. The global picture New Entrants Shrinking Volumes Margin Pressure

  5. Online trends - general • Online champions • Low cost carriers • National airlines • Online Agents • Online leisure growth fueling B2B growth • Fare structure changes – Air • Technology & Content combined – making shopping easier • Hotels • Air • Consumer experience and perception

  6. Example UK: Online champions invest in educating The market

  7. B2C growth encourages B2B Example: As Consumers use B2C sites for Leisure Corporate Demand grows Nov 2001 Jan 2002 Apr 2002 … Germany UK France

  8. Example: One way pricing, Air New Zealand

  9. Example: Taxes Stripped out Of initial price Search and Added later, BA

  10. Example: Displaying 200 possible Available fares For the shopper To search through

  11. Expedia shot Example: Choice, Information, Maps, Visuals, Price Hotel Booking : Expedia

  12. User View from the US • Most check 2-4 sites before booking • Half shop online and book offline • Mosts shoppers convert to bookers over time • Users rate online agents • Better choice • Simpler to use • Offering lower prices • While rate offline as better service and reliability Source: PhocusWright Consumer Travel Trends Survey 2003

  13. Source: PhocusWright 2003

  14. The Right Environment • Large point to point market • Technology readiness • Clear value in moving online • Self service culture • Proactive players

  15. Market Evolution Top 50 Large SME Consumers

  16. Market Evolution Predictions • In each market consumers check 3-4 web sites • 30% of online leisure traffic goes to airline sites • 30% of online leisure traffic goes to hotel sites • 70% of online leisure traffic goes to 2-3 online agencies • 3-4 leading players per market serve the mass of the corporate market place from agency branded portal sites • How many are traditional • How many are new online players • 3-4 leading players serve the top 50 companies with tailoured individual service including technology, integration and service • How much traffic goes online? 25-50%?

  17. Is Online Important – for an offline Agency?

  18. Why move online - Motivation • Direct relationship with travelers • Retention & Growth • Taking service cost out of the business • Providing choice • Servicing the lowest margin business at the lowest cost

  19. “We estimate that a corporate agent makes an average of ten bookings a day … when that agent uses a web based booking tool they can complete ten bookings in only ten minutes”

  20. About e-Travel

  21. Traditional Travel Distribution GDS e-Commerce e-Travel IT Services Airline IT Amadeus Positioning 3 key strategic focuses:

  22. e-Travel Mission e-Travel is an Amadeus business unit dedicated to delivering the most successful online travel solutions to corporations, airlines and travel agencies, worldwide. • Highest return on investment • Rapid adoption and conversion rates • Peace of mind (scalability, reliability & security)

  23. Business Model Travel Agency Solutions Consumers Corporations Central systems Suppliers

  24. Global Presence Global business unit of Amadeus for online travel solutions (B2B and B2C) • - 250 employees in 6 Global Distribution Centers • 70 National Marketing Companies • 200 countries

  25. 2200 agency sites 200+ corporate sites Reference Customers ...Across 90 countries ...In over 20 languages 123 airline sites 16 Hotel sites

  26. Primary Product Portfolio e-Travel Aergo e-Travel Planitgo Checkmytrip

  27. Evolution • Aergo V6 • Improved usability for users and administrators • Improved air and hotel shopping experience • Improved functionality for corporate portal sites • Setup speed – dramatically improved • Maintaining local functionality • Ability to deploy globally – more quickly • Access to non GDS content

  28. Working in Partnership

  29. Working in Partnership • A portfolio of technology services • Online serviving for offline bookings • Corporations • Consumers • Pay as you go pricing • A travel agency certification program • Reseller agreements • Local support – sales, marketing, implementation, support

  30. But…. • A successful online business means change • Processes • Pricing • Staffing and training • Marketing & selling • Successful players have created new business units or divisions within companies or radically transformed the entire business

  31. e-Travel means • Proven return on investment • Rapid adoption rates • Peace of mind

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