Post on 02-Dec-2014
description
Listen, Engage, LeadThe Challenge of Building e-Tourism Technology for Small Business
Stephen JoycePresident & CEORezgo.com(A Division of Sentias Software Corp.)
State of the UnionDestination tour & activity suppliers who accept bookings through on-line channel.
Suppliers who distribute product through resellers.* Internal market research
20% 5%
State of the UnionAverage seasonal capacity of SME tour operators.
Average booking value based on two guests.* Internal market research
47% $200
State of the UnionNumber of listed tour, attraction, and activity companies in the U.S.
Number of listed tour, attraction, and activity companies in Canada* Internal market research
47,000 17,000
State of the Union
Value of non-distributed capacity from SME operators in U.S. & Canada. * Internal market research
$27.6 Billion
The OpportunityThere are hundreds of thousands of destination activity & tour operators who do not sell on-line or distribute their products electronically. This inventory is valued in the Billions of dollars.
The GoalTo build a system that would provide small businesses with the tools to manage their inventory, bookings, customer data, and distribution with the same or better sophistication then airlines and hotels.
The Supplier Challenge Small Businesses Single Owner/Operator No formal business background Little or no best practices Little or no cash/capital for technology
SME operators would rather be out on themountain thanbehind a desk.
The Distribution ChallengeSmall businesses individually hold very little inventory and are too volatile for a distributor to create one-on-one relationships. Distributors need economies of scale.
vs.
Hear Their products are unique or too specialized. Their accounting is unique. Their relationships are unique. Their businesses are too complex for a system. They don't need any more bookings.
What suppliers say
Listen They don't have a standard for structuring products. They don't have a standard system for accounting. They sell to & through whoever they can. They don't have the tools to understand their business. They can't handle more bookings.
What suppliers mean
When it comes to running their business, many are lost in a forest of their own creation.
Engage They need to standardize their product structure. They need to consolidate their marketing content. They need tools to tell them how they are doing. They need access to distribution. They need to best business practices. They need simplicity not complexity.
What do suppliers need
Lead Provide tools that are simple to use. Provide standards that suppliers can follow. Educate suppliers on best practices. Make it easy for suppliers to distribute. Charge based on performance.
Helping Suppliers Succeed
Lead
… by empowering them with the knowledge to improve their business practices and the tools that simplify their business processes.
Helping Suppliers Succeed
Industry Opportunity Destinations need content and products from suppliers to market.
Many RMOs/DMOs need new ways to generate revenue.
DMOs/RMOs are trusted partners.
New technologies provide access to data without high cost.
DMOs & CVBs
Industry Opportunity Retailers want access to high margin product.
Viator was pioneer, now comes isango!, Expedia, and Travelocity.
Managing destination product is time consuming and labourious.
Retailers need tools that allow for supplier self-management.
Travel retailers
Industry Opportunity These site provide services for free and need to monetize
Aggregating suppliers is not their business.
Destination product is exciting and feeds the planning process.
These sites have traffic but little to no revenue conversion.
Trip Planning & Other sites
Power of the Crowd (SaaS)
740+Suppliers
Rich Media supportGeolocation XML API Mobile Check-in Access to distribution Channel Management Reduced costs
Destinations have access to supplier data for their regions.
Agents/Distributors/Resellers have access to new product.
Suppliers increase revenue & pay on performance.
Change that impacts the industry