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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. - PowerPoint PPT Presentation
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© copyright 2002 - AMADEUS Global Travel Distribution S.A. / all rights reserved / unauthorized use and disclosure strictly forbidden
e-TravelThe Channel to Success
Ian Wheeler
April, 2003
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© copyright 2002 - AMADEUS Global Travel Distribution S.A. / all rights reserved / unauthorized use and disclosure strictly forbidden
Agenda
Global online trends Is online travel important for offline agencies About e-Travel Working in partnership
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Global Trends - Online
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© copyright 2002 - AMADEUS Global Travel Distribution S.A. / all rights reserved / unauthorized use and disclosure strictly forbidden
ShrinkingVolumes
NewEntrants
Margin Pressure
The global picture
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Online trends - general
1. Online champions1. Low cost carriers2. National airlines3. Online Agents
2. Online leisure growth fueling B2B growth3. Fare structure changes – Air4. Technology & Content combined – making
shopping easier1. Hotels2. Air
5. Consumer experience and perception
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Example UK: Onlinechampions invest
in educatingThe market
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B2C growth encourages B2B
Nov 2001 Jan 2002 Apr 2002 … Germany UK France
Example: As Consumers useB2C sites for
Leisure Corporate Demand grows
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Example:One way pricing,Air New Zealand
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Example: TaxesStripped out
Of initial priceSearch and
Added later, BA
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Example: Displaying200 possible
Available faresFor the shopper
To search through
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Expedia shot
Example: Choice,Information, Maps,
Visuals, PriceHotel Booking
: Expedia
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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 2003Source: PhocusWright Consumer Travel Trends Survey 2003
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Source: PhocusWright 2003
Tradional Agency Online
Agency
Supplier
Best service 48% 19% 23%
Most reliable 36% 25% 26%
Best choice 29% 46% 12%
Simplest Use 29% 42% 25%
Lowest Price 14% 59% 14%
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The Right Environment
Large point to point market Technology readiness Clear value in moving online Self service culture Proactive players
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Market Evolution
Top 50
Large
SME
Consumers
Top 50
Large
SME
Consumers
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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%?
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Is Online Important – for an offline Agency?
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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
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“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”
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About e-Travel
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3 key strategic focuses:
Traditional Travel Distribution
GDS
e-Commerce
e-Travel
Airline IT
IT Services
Amadeus Positioning
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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)
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Travel AgencySolutions
Suppliers
Centralsystems
ConsumersCorporations
Business Model
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Global Presence
- 250 employees in 6 Global Distribution Centers
- 70 National Marketing Companies
- 200 countries
Global business unit of Amadeus for online travel solutions (B2B and B2C)
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Reference Customers
...Across 90 countries
...In over 20 languages
200+ corporate sites200+ corporate sites
2200 agency sites2200 agency sites
16 Hotel sites16 Hotel sites123 airline sites123 airline sites
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Primary Product Portfolio
e-Travel Aergo
e-Travel Planitgo
Checkmytrip
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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
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Working in Partnership
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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
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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
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e-Travel means
Proven return on investmentRapid adoption rates Peace of mind