relevance: delivering the right product, to the right customer, at the right time tedd evers...
Post on 19-Jan-2016
214 Views
Preview:
TRANSCRIPT
Relevance:Delivering the right product, to the
right customer, at the right time
Tedd EversDirector
Partner Marketing, Europe
Reykjavik
February 18, 2005
What I’d Like to Talk About…
1. Who is Travelocity? …a Case Study for Today
2. The Online Road Divides: Finding the Right Path
3. Staying Relevant in Today’s Marketplace
Travelocity’s “Family Tree”
• Wholly owned by Sabre Holdings
• Our business philosophy is “The Best Trips Start at Travelocity”, with offers built upon direct supplier relationships
• Our culture is proactive, positive, passionate, and creative in pursuit of our business philosophy
• Investment and growth in 2005 is focused on growing globally
RH
Travelocity Overview
• $5 billion in gross travel bookings in 2004– Revenue up 30%– Packaging Rev. up 90%
• Millions of registered members
• 42,000+ affiliates in 40 countries
• 15 million+ unique users/mo.
• 6th largest US travel agency
Source: Forrester, 10/02
Household income
# leisure trips/year
Travel spend/year
Air traveler
Hotel guest
International traveler
Avid leisure traveler
Brand loyal
$89,3254
$4,29584%89%43%50%44%
+7%+8%21%+6%+6%
+14%+17%+14%
Travelocity Booker
Travelocity vs. all agencies’ Bookers
Travelocity US Booker Profile
Travelocity bookers earn more,travel more, spend more, and stay in more hotels than the average travel consumer…
Consumer Marketing Identity
• US : “Roaming Gnome” Multi-Million $USD Advertising Campaign
• UK ads star cult travel journalist Alan Whicker, who pops up in unexpected situations across the globe
• Campaign won the Grand Prix Prize, British Travel Awards 2004
Significant Sales Potential
Over 30,00030,000 airline tickets
More than 14,00014,000 hotel reservations
Over 5,5005,500 car rentals
More than 1,5001,500 vacation and cruise packages
On Average, Every Day Travelocity sells…
Travelocity distributes to millions of registered members, and through exclusive
partnerships with:
Exclusive Distribution Channels
World Choice Travel is a wholly owned subsidiary of Travelocity.com
An Expanding European Presence
UK France GermanyScandinavia
Distribute Globally, Market Locally
Fully Owned Subsidiaries Joint Venture Partners
Sweden, Denmark, Norway
Canada
Japan
Australia, Hong Kong, Singapore, Taiwan, Korea
Germany
France
The Online Road…is rough
1. Online loyalty is absent, customers shop
multiple sites
2. Most customer relationships are
transactional, transient and price-driven
3. No one has succeeded in differentiating
Consumers Increasingly Shop Multiple Sites…
Consumers getting savvier, moving away from closed environments unless they have proven, distinct value propositions
… And Frequency of Use Is Largely Price-Driven
No Online Players Have Succeeded in Differentiating
• Only 10 to 15% of bookers felt that the top three sites were really differentiated
Stands out as an extremely different travel site
Stands out as a little different from other travel sites
It’s not very different
Brand Commitment
34% 39% 40% Top 2 Categories
Online Development: Two Paths with Different Values
Core Beliefs/Assumptions:
• Price is only a ticket to play—
travelers want more
•Travel planning is about
inspiring ideas, honest guidance,
unbiased reviews
• Be responsible all trip long
• Travel products, and above all
service, are differentiated--full
disclosure before you book
Core Beliefs/Assumptions:
• Price Matters—Exclusively!
• Travel planning is price comparison process
• Be responsible for the shopping process—nothing else
• Travel products services are commodities
Travel AdvocatesTravel Commoditizers
How to Stay Relevant?
• Travel Advocates for our Consumers
• Mutually Successful Supplier & Destination Partnerships
• World Class Retailing & Compelling Offers
• Passion: Travel is life!!
We Will Differentiate
Consumer Advocacy: Showing Available Airline Seats – BEFORE purchase
Consumer Advocacy: Search by Neighborhood
Neighborhood search makes the booking
process simpler, increases customer
conversion, satisfaction
Consumer Advocacy: Delivering Rates when Rooms are Available
How to Stay Relevant?
• Travel Advocates for our Consumers
• Mutually Successful Supplier & Destination Partnerships
• World Class Retailing & Compelling Offers
• Passion: Travel is life!!
We Will Differentiate
Travelocity 3rd Generation
- Flexible rates & inventory = effective merchandising
- Industry-leading last-minute demand creation
- Connectivity options enable broadest range of hotels
- Immediate payment upon guest checkout
Early Internet Merchant
- Fixed allotments and one-sided contract terms
- Limited connectivity options
- Slow payment to hotels
Fixed Traditional Model- Hotels tied to one rate per season
- Fixed allotments and one-sided contract terms & slow payment to hotels
- Limited last-minute availability
Delivering Supplier Value: Hotels
Our Unique Supplier Proposition Gained Hotelier Traction Rapidly
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Jan-02 Jan-03 Jan-04
Me
rch
an
t H
ote
l P
rop
ert
ies
Dec-02 Dec-03 Dec-04
In Just Two Years, We Grew to 17,000+ Properties Worldwide
Merchant Hotel Growth Chart
Benefits to Hoteliers:• Drive more volume by providing net, non-commissionable rates and receive preferred placement in Hotels path
• Multiple Connectivity Options via CRS or Extranet
• Instant Payment upon checkout for each booking
• Participate in Travelocity Consumer Advertising Campaigns and in special regional hotel promotions
• Participation in the Travelocity Redistribution Network
How Did We Grow So Fast?
A ‘Win-Win’ Hotelier Value Proposition
Dynamic Packaging & Travel Extras
Supplier Value: Building the Non-Core Travel Businesses for Many Leading Travel Brands
Destination Marketing Alliances
Bahamas Tourist Office- Targeted key origination markets- 106% increase in bookings
Aruba Tourist Authority- 159% increase in bookings- Best in Class Click Thru Rate
Visit Scotland- Unique sweepstakes offers- 139% increase in hotel sales
How to Stay Relevant?
• Travel Advocates for our Consumers
• Mutually Successful Supplier & Destination Partnerships
• World Class Retailing & Compelling Offers
• Passion: Travel is life!!
We Will Differentiate
Merchandising Compelling Offers
Promotions may be based on:- Themes- Seasonality- Exclusive offers- Unique experiences
Entry-level Pricing, but:- many consumers upgrade- hotel ADR can also increase
January “Cool / Hot” Promo:- 48% increase in room nights- 11% increase in ADR
Targeted Email and Sweepstakes Offers
Integrated Marketing Partnerships with some of the Most Valuable Brands in the World…
..That Have Yielded Significant Results for our Partners, and for Travelocity.
TE
Takk fyrir!
top related