Travel for Starters

Timothy O’Neil-DunneValyn Perini

Anil DamodoranFilip FilipovAlex Kremer

Frank Lin

Travel for Starters

• Don’t know what you don’t know about travel?– How it works– Why it works• Or doesn’t

– Where the opportunities are– About VaultPad– About OpenTravel

Think Of The Travel Industry As A Series Of Tribes

• Unique cultures and practices within each segment but

• Inter-connected• Relationship-based• And with similar technical and

commercial challenges

Distribution is Key

But First…

Have You Really Thought This Through?

Startup Success Formula

• Compelling proposition +• Viable market• Acquiring customers +• Monetizing the activity +• Secret Sauce +• Retaining customers +• Replicating the activity multiple times

Are you the right person for the job?

• Do you have relevant experience?

• Are you “presentable”• Are you skilled?• Are you smart enough?• Are you lucky?

The Team

• Does the team fit?• Is it fit for purpose?• Can you get help?• How does it respond under pressure?• Credible to stakeholders?• Longevity?

“The Danger of Celebritizing Entrepreneurship”

• Says the HBR Oct’12– http://blogs.hbr.org/cs/2

012/10/the_danger_of_celebritizing_en.html

The Proposition• Original• Inspirational• Valuable• Repeatable• Meaningful• Indispensible• Not someone else’s!

The Market

• Have you assessed the market?– Quantified– Qualified

• Is it viable?• Who is already there?• What will be the market’s response?• How will you reach that market?

Do you understand the complexity?

• Markets are complex• Products are complex• Technology is complex• Travel is complex• People are complex• Combinations are mindboggling

Catching Customers

• Catching customers is not the same as acquiring users– Just look at Facebook!

• Once caught you have to retain and leverage them.

Monetization

• Traditional models are being blown up• For example TripIt• Beware the vendors• CPC is dead and CPA?• Follow the money• Avoiding the SEO/SEM trap • The elephant aka Google

Getting Information and Inventory

• Suppliers (hotels, airlines, etc.)• Intermediaries (GDS, OTAs, wholesalers,

Pegasus, etc.)• Technology providers (HP, Datalex, Wipro, etc.)• Third party aggregators of information (OAG,

ARC, ATPCO, Smith Travel Research)

Travel Sellers Have A Galaxy Of Sources Constantly Sending And Receiving Customer Data

Website

GDS

Counter/On-board

Kiosks

Loyalty/CRM/eCRM

Form of payment

PartnersSmartphones

Tablets

Goggles

Social media

Ad click-through rates

Search click-through rates

Direct connects Email offers/responses

Call center

Location-based services

Up-sell/cross-sell offers/responsesType of computer

Browser

Questions…

• Do I need inventory or just information?• Do I want inventory/info by– Travel segment– Region– Category (luxury, economy)– Brand– Do I need it real-time or near real-time?

How Do I Pay for It?

• Many and different• Determine it’s:– Supply Paid– Consumer Paid– 3rd Party Paid– Other?

• Is this defensible?

Resources

• Associations – HEDNA, CASMA, HSMA, ATTA• Publications – Travel news websites, analysts,

consultants• Conferences• Make friends and have conversations,

endlessly

Travel for Starters

Timothy O’Neil-DunneValyn Perini

Anil DamodoranFilip FilipovAlex Kremer

Frank Lin