Expedia

© 2009 Expedia, Inc. Confidential & proprietary. All rights reserved. | 1

Ross Kata – Expedia Africa - JNB Office

Effect of Internet on Travel


Travel Agents need to evolve with consumers


Summary of Traffic to Travel Categories


Where are they looking

Billboard Effe

ct


Purchase Channel By Age – Winning the hearts and minds

Building B

ands


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Effects of the internet on consumers


European Bookings by Segment

OTA’s over take Airlines 2011


Hotel Shopping – Top 5 sites Europe


How are they booking 2009

Global Performance by Travel Industry 2009


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Effects of the internet on intermediaries

• Traditional travel agents: value added / mix model / less transactional more experiential. Need to become customer focused

• Wholesalers and traditional tour operators: direct to consumers / large investments in technology and marketing. Giants moving online.

• Online travel agencies: Battle to win hearts and minds of consumers and suppliers

• Better functionality for consumers• Improved tools for suppliers• Alternative compensation models (transaccional & media), for suppliers

• Collapse of the Middle – Currently taking place with airline consolidation. KLM & Air France and BA & Iberia. More to come!!!


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Email booking or

phone booking entered into

software

nightsbridge

Info sent to websites

Guests make booking

email

sms

Email to guests

Booking into

software

ConnectivityNo longer the future


Integration to major Portals, such as Expedia.com

Web-based Central Reservations software for a multi-property view of all your rates and inventory

Powerful Revenue and Yield Management

Optimise RevPar – ‘Revenue per available room’

Integration to Call Centre, Website, ADS and GDS

eRes® CRS & Distribution Hub


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Effects of the internet on travel suppliers

• World wide distribution and marketing

• Access to mountains of information

• Flexibility

• Control and real time decision making

• Revenue Management

• Consumer is now ‘Pro - sumer’


Global ADR - Hotel

Source: Expedia Inc Booked data


Expedia’s Mission

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Work with our partners to secure the highest quality supply

Match supply and demand as intelligently as possible

Inspire travelers to find, build, and share travel experiences

Increase access to global traveler demand

Our mission is to build the world's largest and most intelligent travel marketplace


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• $23bn sold in travel in the last 12 month #1 online travel company

• Around 75 million people visit our sites every month.

• 75% of the people buying their holidays online visit one of our sites at least once before buying. Value and billboard effect.

• 14 million hotel searches are made every day in Expedia sites.

• 1.6 rooms are sold every second, an average of 140.000 rooms are sold per day at Expedia

• Over 360 000 room nights & $60m sold into Eastern & Southern Africa.

We fill 150 Boeing 747’s every day!

We land more than 130 paxs a day just in JNB

If we put in line all the beds we sold in E&S Africa we could have built a double hightway from Cape Town to Cairo

Expedia General Figures


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Expedia Travel – From MSN to the World

Expedia holds a leadership position in nearly every market where we are present

We build leading brands that are highly relevant to our partners

No.1 hotel specialist, in 54 countries

Leading discount travel site reaching price-conscious travelers

Leading online travel service provider in China

Corporate travel agency operating in 9 countries

No.1 community player with more than 22M reviews and opinions

No.1 OLTA, in 19 countries

Operating more than 100 in-market concierge and activity desks


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One Extranet, one contract and your hotel is seen and sold worldwide

No partner can offer you such valuable exposure at ZERO fix cost

does!

Expedia – The Power of the Global Distribution


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Content management

95% of US leisure Bookers and 92% of Lookers say descriptive content is important to them.The Web Site Content That Matters To Travelers, Forester research


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The Web Site Content That Matters To TravelersForester Research

Provide excellent service


US Offline Campaign

•SMART campaign highlights Welcomerewards benefits

• Link to SMART Offline Ad Campaign• Viral Campaign

http://www.youtube.com/watch?v=KMWBXAJ7NIc


EMEA Offline Campaign •London outdoor campaign and Nordic offline ads promote deals

• Link to creative

• Digital LCD Screen• http://delorean.se/visafilm/?

film=Hcom_NO_WRP_SALE_Sept09_V3.flv• http://delorean.se/visafilm/?

film=Hcom_NO_Blue_SALE_Sept09_V3.flv


Japan Online Campaigns • Online banner ads promote deals


Brazil Offline Campaign •Hoteis.com print ads highlight the advantages of our size


In-store advertising with Expedia – No more Spray and Pray


The Destination Growth Model – Creating a profitable solution

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Some of our partners…


Fuelling Growth with Tourism Boards


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We deliver partnerships offline too…


Fuelling Growth Tourism BoardsCase Study: South African TourismCampaign 28 Feb – 31 May 09


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What is the Billboard Effect?

Exposure on Expedia.com

Direct b

ookings o

n Expedia

Visitation to Partner Site

Bookings on Partner Site


The Consumer Purchase Funnel• Expedia reaches the consumer in various stages of the purchase funnel, most importantly right before the

actual purchase.

All of these have some value as they reach the consumer throughout the purchase funnel.

NewAttribution Method

AOL Travel/Google Search/Yahoo! Search

Supplier Site/Other OTAs/Destination Site

orSupplier

Site


Billboard effect Results – Cornell University

Increase in Room Nights Booked


Numbers for East & Southern Africa


Expedia Inc – Where room nights are coming from


Focus on Southern Africa - Air



Focus on Southern Africa – Air

Ticket Sales - 2008 & 2009 - Euro to Southern Africa



-12% Q3

Focus Africa - ADR 2008 vs. 2009



Focus Africa Booking window vs. ADR


Booking window patterns are shifting Case Study: Cape Town

27%



Product selection: Star Rating Y

oY A

DR

4 Stars Up 7 %


Room Nights to South Africa 2002 – 2009 YTD


Point of Sale to South Africa


East Africa RNS 2004 – 2009

32 000 RNS to East Africa$6 Million Room Revenue

Organic Growth Phase


Where travelers are going - Southern AfricaRank of Africa destinations 2008 vs. 2009 by city

City Rank 2008 Rank 2009

Cape Town 116 80

Johannesburg 345 231

Durban 597 429

Dar es Salaam 580 451

Nairobi 619 411

Accra 634 525

Moved up in rank

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114

208

129

109

168


Expedia Hotel Partner current & future

1. If you are not working with Expedia you are not visible.

2. There is a media & transactional partnership

3. All room types.

4. All meal plans.

5. Hotel Description & Pictures.

6. Promotions for next 18 months

7. 2011 Rates

8. Be proactive !!! Easter 2009 promotions still available.


Anyone can join – www.ian.com


How can agents benefit from Expedia?www.hotelsta.com


Summary

1. Markets are showing signs of recovery with excellent growth prospects throughout CES Africa

2. Winners are going to be the hotels that execute during extreme highs and lows. Yielding is key

3. Proactive approach by Tourism organizations by being more result driven

4. This shift online is impacting consumers, intermediaries, and travel suppliers. Internet is changing the way people buy and sell travel (i.e. Cape Town is sold as a long weekend city break!!!)

5. More of the same will take us nowhere. Moving mind set from signing contracts to managing contracts. Shift from being Purchase Managing to Sale Managing

6. Wear online hat when doing business with online Tour Operators. Wear offline hat while doing business with offline tour operators. Flexibility of rates.

7. Expedia is your best option to maximize revenue, reach worldwide audience, learn about e-commerce and benefit from our vast online experience.

8. We are moving into all areas of Africa. Be the first not the last to join us and benefit from doing business online.


Thank You & Questions ?

[email protected]

www.joinexpedia.com

Expedia

Travel

Transcript of Expedia