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Newmarket Confidential and Proprietary Information
Page 2
Customer obsession is the new competitive advantage
Only companies that are customer obsessed and adapt to changing behaviors in real-time will succeed.
- Forrester Research
Source: Forrester Research Newmarket Confidential and Proprietary Information
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‣ Changing demographics and consumer behaviors
‣ Desire for information, transparency, personalization and trust
‣ Technology enablers
‣ Big data, mobility, social
‣ Decreasing cost of transactions
‣ New entrants and consolidation/M&A
‣ Customer obsession and innovation
‣ Travel providers’ response
‣ Major investment in infrastructure to connect to venues where customers interact
What’s driving disruption today?
Innovation and opportunity
Reference: Amadeus, From Chaos to Collaboration 2012 Newmarket Confidential and Proprietary Information
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How do they want to buy and experience travel?
‣ Authentic holidays
‣ Multi-generational experiences
‣ Customizable
‣ Trust expert support
Boomers: The ‘Senior Active’ Travelers
70% of disposable income in USA
Young Boomers
Age: 49 – 57 years
Total in US: 44.2 MM
Median Income: $64K
Many Still Have Kids at Home
More Tech Savvy than Older Boomers
Age: 58 – 67 years
Total in US: 38.9 MM
Median Income: $59K
Many Retired
Empty Nesters
Older Boomers
Disruption Opportunity
_ Enable trusted experts with more
information access to satisfy this
segment’s needs
Sources: Amadeus: The Senior Active Traveler 2014; Nielsen 2013. Newmarket Confidential and Proprietary Information
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How do they want to buy and experience travel?
‣ Seamless online/offline travel journey
‣ Heavy reliance on peer recommendations
‣ Co-created unique travel plans
Millennials: The NEXT GEN travelers
Young Millennials
Age: 19 – 27 years
Total in US: 31.3 MM
Median Income: $25K
Still in School
Living with Parents
Earliest Adopters
Age: 28 – 36 years
Total in US: 41.2 MM
Median Income: $48K
Establishing Careers
Starting Families
Older Millennials
Nielsen 2013
Amadeus: The Next Gen Traveler 2013
Disruption Opportunity
_ Even more need to connect, react, acquire, manage and distribute more information faster
_ Even more need for mobility and access at all points in the travel chain
Sources: Amadeus: The Next Gen Traveler 2013; Nielsen 2013. Newmarket Confidential and Proprietary Information
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Common Themes
Customer segments require the travel industry to…
1. Acquire, connect and manage more complete information
2. Provide customers with more control throughout all touch points
3. Be agile to cover end-to-end needs
Newmarket Confidential and Proprietary Information
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The big three innovations converging in the technology space.
= valuable customer experiences and process efficiencies
Amadeus: From Chaos to Collaboration 2012 Reference: Amadeus: From Chaos to Collaboration 2012.
Social Mobility
Big data
Newmarket Confidential and Proprietary Information
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Mass personalization
‣ Mobility - Self service, Big data - Customer knowledge, Social – Virtual assistance -
connecting to places where customers are
Intelligent pricing & merchandizing
‣ Big data – Customer knowledge - Deeper analysis capabilities
Intelligent recommendation
‣ Social - Experience and expertise sharing - Greater quality control - More personalized
2020: Tenets of technology convergence
Amadeus: From Chaos to Collaboration 2012 Reference: Amadeus: From Chaos to Collaboration 2012. Newmarket Confidential and Proprietary Information
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‣ A new era of greater information sharing and exchange,
facilitated by technology innovations, between
communities of travel providers and travelers.
‣ New ecosystem where information is freely exchanged and
the idea of one-way transactions becomes obsolete.
‣ Qualitative shift where service-users become partners
rather than customers. Context is as important as the
transaction.
2020: The collaborative travel arena
Open systems and collaboration pave the way for:
Envision a one-stop co-
creation travel shop, from
planning to post trip to
create the perfect journey
with a single door to door
combined ticket.
Amadeus: From Chaos to Collaboration 2012 Reference: Amadeus: From Chaos to Collaboration 2012. Newmarket Confidential and Proprietary Information
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‣ The use of information for enhanced customer knowledge, personalization, and merchandizing
across the customer lifecycle
‣ Travel companies will have invested to provide for more complete information and greater
customer control
‣ The ability for travel providers to plug into a more holistic ecosystem
‣ Transaction based systems will be come a standards based utility
‣ Reduced transactional cost will fund additional investment in value added customer services
Conclusion: You will have disruption
Customer obsession = Investment
Reference: Amadeus: From Chaos to Collaboration 2012. Newmarket Confidential and Proprietary Information
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1. Focus on Customer Satisfaction/Retention over acquisition
2. Align Brand Strategy with the Customer Experience
3. Nimble and Connected
4. Multiple Data Sources Enabling Predictive Analytics
5. Customer Insights to Develop New Products & Services
6. Real-Time 360 View of the Customer
7. Invest in the Customer Experience
8. Connect with Consumer Post Transaction
9. Invest in Content Over Advertising
10. Agile in Meeting Customer Needs
Customer obsessed companies…
Source: Parature from Microsoft Newmarket Confidential and Proprietary Information
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