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WEBInternationalReservationYevgeniy SydorenkoMustafa TaskiranSaurabh SinghAboody Mansour
AboutWeb Reservations International (WRI) provides technology, distribution and marketing solutions to accommodation and other travel suppliers worldwide through a network of owned sites and affiliate partners.
Headquartered in Dublin, Ireland, WRI was founded in 1999 and has representative offices in London, Shanghai, Sydney and So Paulo. WRI has developed award winning websites including hostelworld.com, hostelbookers.com, hostels.com and bedandbreakfastworld.com, and has successful affiliate relationships with many of the world's leading brands.
The WRI business model is simple and fully automated where travelers pay a modest non refundable deposit when they book accommodation on line which is retained by WRI. The balance is paid by customers directly to the accommodation provider at check-in.
Hostels and other accommodation providers rely on WRIs advanced technology platform to allocate inventory, manage pricing and receive bookings within a fully automated process.
Management team
Feargal MooneyChief Executive Officer
John ODonnellChief Technology Officer
List of flagship web-sitesHostelworld.comHostelbookers.comItostels.comBedandbreakfastworld.comTrav.comBoo.comThings2do.comDiscount-hostels-world.comInsureandheaven.com
These are the flagship brand websites of WRI and provides 40,000 properties in 180 countries. These websites are in 28 languages and works with B2B and B2C. Have customer review of over 3 million. Have videos of many properties , blogs and guide section.
Affiliate exampleswww.ebookers.comEuropean online travel agency specializing in worldwide travelwww.flybe.comLow-fare European airlinewww.kasbah.comGlobally trusted and respected source of world travel and destination information and bookingwww.letsgo.comTravel guide series that accompanies the free-spirited on treks across the globewww.lonelyplanet.comLonely Planet's is one of the best places to seek out advice on a wide range of travelling issueswww.raileurope.comOur Vision is that every North American traveler will choose us to experience the real Europe by trainwww.ryanair.comCheap Flights - Lowest European Fares, Low Cost Airlinewww.studentuniverse.comOnline travel service that enables students to travel for less.
MissionTo provide on-line confirmed bookings for hostels, budget accommodation centers and package tours, as well as comprehensive content such as city and country guides
Revenue ModelWRI provides online reservations to over 45,000 accommodation providers such as Hostels and budget hotels. WRIs main target markets are Budget youths and Independent travelers. Since the early 1990s WRI were the first to Identify this niche and they were able to successfully place their business between this niche market and the accommodation providers. Being able to generate revenue from a small reservation fee and holding on to the accommodation deposit until the date of arrival is a key factor in the success of their business.
Timeline Analysis
SWOT AnalysisStrengths
Privately held / easier to make decisionsSuperb CEO Knowledgeable Personal (multicultural)Large scale operationDistribution NetworkProfitable business modelWeaknesses
Lack of public fundingLack of public informationMinimal presence in North AmericaLow profit marginCustomer LoyaltyOpportunities
BYIT (Budget, Youth, and Independent Travelers)Go publicGrowing online travel marketRebounding travel industryWorldwide IndustryRetiring baby boomersThreats
Oil PricesInflationExchange rate volatilityGeopolitical uncertaintyMajor competitors / many competitors (Expedia, Travelocity, Orbitz, Priceline, etc.)
PEST AnalysisPolitical: The company has effectively become the Global Distribution System of the BYIT. The environment is free from political interruptions but the competitors are superior.Economic: Economic factors refers to the macro-economic environment of the organization, such as exchange rates or cost-related matters of the organization. Global crisis does not have a big impact on the BYIT(budget, youth and independent travel) market. Exchange rates and currency stability also affects WRIs revenue.Social: Social factors refers to changes in society in terms of culture or demographics. The demand has increased for this particular industry as customers have found an easy and safe route of reservation in which the can check all information necessary online. Changing demographics: The specific market segment of young travelers, aged 15-25, increased from 14.6% to 20% (also makes up 20% of all international visitors). However, the use of technology not only brings in young student travelers, but has also expanded the target markets to include families, business travelers and flashpackers.Technological: The technological component of the framework concerns the changes and trends of the technical and material foundations in the industry, as well as innovation. 40% increase in online booking. Backpack Online has enabled efficient management. User Generated Content is also a core component in its marketing strategy, by using their own ratings system and reviews. Created their own social networking site called myworld. WRI owns individual domains and uses search engine optimization. In addition to hostelworld.com, WRI have launched other websites, such as hostels.com, beandbreakfastworld.com, traw.com. WRI have continued investment for easier customer engagement with the launch of a HostelWorld iPhone app in 2010.
VRIOStrategic CapabilityValuable?Rare?Costly to implement?Do they have any structured organization to use this resource?Competitive ImplicationsTechnologyYESNOYESYESSustained AdvantageArchitectureYESNOSomewhatYESTemporary AdvantageCost EfficiencyYESNOYESYESTemporary AdvantageTechnological CapabilitiesYESYESSomewhatYESSustained Advantage
Porters five forces AnalysisSuppliers Power. HIGH
Internet service provider have great impact on businessSwitching cost is costlyThreat of Substitutes: MEDIUM Big market share is still one of WRI strengthBuyer propensity can be effected to price change and they can prefer other providersThreat of new entry : HIGH
Threat of new entrants the industry is not costlyPropensity to substitute is high Buyer power: HIGH
Cost to the buyer of switching from one supplier to another is not costlyBuyer volume is highRivalry: HIGH
Number of competitors is highIndustry growth is significantlyNo barrier to enter market or exit
Internal AuditStrength
Privately heldCredible CEO Knowledgeable personnel (multicultural staff)Large scale of operationDistribution networkProfitable business model
Weaknesses
Lack of public fundingLack of public informationMinimal presence in North America Low profit marginCustomer Loyalty
Internal factor evaluationKey Internal FactorsWeightsRatingWeighted Score0.0 to 1.01, 2, 3 or 4 Internal Strengths3 or 4 Privately held 0.10 4 0.40 Credible CEO 0.10 4 0.40 Knowledgeable personnel (multicultural staff) 0.08 4 0.32 Large scale of operation 0.10 4 0.40 Distribution network 0.10 3 0.30 Profitable business model 0.12 3 0.36 Internal Weaknesses1 or 2 Lack of public funding 0.10 2 0.20 Lack of public information 0.08 2 0.16 Minimal presence in North America 0.12 1 0.12 Low profit margin 0.06 2 0.12 Customer loyalty 0.04 2 0.08 Totals12.86
External AuditOpportunities
BYIT (Budget, Youth, and Independent Travelers) market growingGo publicGrowing online travel marketRebounding travel industryWorldwide industryBaby Boom market
Threat
Oil PricesInflationExchange rate volatilityGeopolitical uncertaintyCompetitors
Competitive profile Matrix WRIExpediaPricelineCritical Success factorsWeightsRatingWeighted ScoreRatingWeighted ScoreRatingWeighted Score0.0 to 1.01 to 41 to 41 to 4Global Market Share0.1530.4530.4520.3Global Name Recognition0.1530.4540.640.6Technology0.1230.3640.4830.36Customer Experience0.0730.2140.2830.21Customer Loyalty0.1140.4430.3330.33U.S. Market Share0.0510.0540.230.15Social Networking0.1240.4830.3630.36Available Financing0.0720.1430.2130.21Business Services / Business Travelers0.0930.2730.2720.18Accommodations Offered0.0740.2830.2120.14Totals13.133.392.84
External Factor Evaluation Key External FactorsWeightsRatingWeighted Score0.0 to 1.01 to 4 Opportunities BYIT (Budget, Youth, and Independent Travelers) market growing 0.13 4 0.52 Go public 0.10 2 0.20 Growing online travel market 0.09 3 0.27 Rebounding travel industry 0.08 2 0.16 Worldwide industry 0.05 3 0.15 Baby boom market 0.11 4 0.44 Threats Oil Prices 0.10 1 0.10 Inflation 0.11 2 0.22 Exchange rate volatility 0.08 3 0.24 Geopolitical uncertainty 0.05 2 0.10 Competitors 0.10 2 0.20 Totals1 2.60
Possible alternative StrategiesMarket Development:
Look to increase options allowing customers to book hotels for any destination. Add more hotels and hostels on the website in South America as well as the US.
Market Penetration:
Go after Expedia, Travelocity and Orbitzs market share
Product Development:
Increase the amount of hostels and hotels on the site and have a variety of hotels and hostels that range in prices all over the World.
Possible alternative StrategiesWe could also look into selling off our company to Google. We can make a pitch to Google explaining how they offer countless amounts of services but do not yet have the booking services that WRI can offer. WRI is a solid company with a network that reaches around the world. We would explain how the industry is constantly growing and how it is becoming more habitual for world travelers to book reservations online. Once our investors and Google have agreed on a price, the deal would be done. The conditions of the deal could include things such as our investors receiving shares in Google.
1 st Recommendation Become a Publicly Owned Company-Initial Public Offering (IPO)
Get the approval from the Security and Exchange Commission (SEC)
Write a S-1 that will describe everything that the company is doing and why
Have the SEC review the S-1, and make any necessary changes if needed, then get an approval Get our shareholders approval by having our private investors vote on whether they should create the IPO by gathering information from our approved S-1 document.
We will look to choose the NASDAQ stock market
Our trading symbol will be WRI
Funds will be utilized to build the worth of our company and form a joint venture with Google allowing for the booking of travel reservations on Google.com 30% of shares will be given to Google.com
2 nd Recommendation North American Expansion
Expand across the US by getting a larger variety of hotels and hostels on our website
Be able to offer a variety of hotels and hostels rooms in every state creating greater options
Expand more into the Caribbean, Mexico, and Canada
3 rd Recommendation Airline Affiliations
Create affiliations with airlines so consumers can purchase plane tickets on our website
Create package deals for our consumers that are willing to book flights on the website
Work with major international tourist destinations to do more business on our website
GCC Expansion
Create affiliation with hotels and hostels
Airline affiliations
Acquisition and partnershipsFondok-elgawhara.qa Elmahabahostel.qa
References www.webresint.comwww.boo.comwww.worldres.comwww.hostels.comwww.hostelworld.comwww.letsgo.comwww.ryanair.comwww.studentuniverse.comwww.lonelyplanet.comwww.raileurope.comwww.flybe.com