Tnooz-Datalex webinar - BIG ideas for travel retail

BIG Ideas for Travel Retail

Webinar

April 20th 2011

One BIG Idea for Travel Retail

ACTIVE LISTENING!

2

Ornagh HobanVP Strategy

Datalex (Ireland) Ltd. Copyright 2011 | www.datalex.com

Active Listening...why should you care?

KAREN

The Corporate TravellerNew York to LondonGold MemberAffinity to Hertz4 Days to Departure

Branded Fare

•Special Corporate Branded Fare

•Free bags, Free seat selection

•Lounge on the way back

•Change on day of return

Optional

Services

•Lounge on departure

•Fast pass for security

Cross Sell •Limo / taxi

on arrival•Car

Mange my Booki

ng•Hotel•Optional Services

KAREN

The Leisure Family 2 Adults, 2 Children45 Days to DepartureNew York to Orlando Booked Corporate Trip to new

Its PERSONA_lisation…..

Branded

Fare

•Special family branded fare

•Family Seating

•Mini bus from home

•Children entertainment pack

Optional

Services

•Gourmet meals for Mom & Dad

•Child meals

Cross Sell

•Hotel Transfer

•Minivan / SUV

Mange my Booki

ng•Hotel, Tours, Activities

•Optional Services

Channel Optimizer


http://images.google.ie/imgres?imgurl=http://www.milleniumtravel.ca/travel_assets/travel_images/corporate-traveller.jpg&imgrefurl=http://www.milleniumtravel.ca/corporate-travel.php&usg=__X2vDsPIOJAEbMs67TNpPO6_QV8U=&h=246&w=151&sz=8&hl=en&start=9&itbs=1&tbnid=xWrPfTdbr2yTIM:&tbnh=110&tbnw=68&prev=/images?q=corporate+traveller&hl=en&sa=G&gbv=2&tbs=isch:1

http://images.google.ie/imgres?imgurl=http://www.adventurertravel.info/wp-content/uploads/2009/05/family-travel-tips.jpg&imgrefurl=http://www.adventurertravel.info/&usg=__EvfxRLzO9efP3fOkDgtkC5zEZu0=&h=350&w=350&sz=18&hl=en&start=3&itbs=1&tbnid=99L45k9jpqHn9M:&tbnh=120&tbnw=120&prev=/images?q=family+travel&hl=en&gbv=2&tbs=isch:1

You already know alot.....

Fares

HotelActivities

ToursAncillaries

Cross / Up Sell Promotions Reward

PERSONA CHANNELMARKET

Customer IntentWhat I am searching forWho am I (IP, email)Recently Viewed/SearchedWhat is my historyWhat are my characteristics?

Loyalty; Family Travel; CorporateWhat’s my value?


You could offer me just the lowest price or......

My Intent:• Foreground Concern – I need Flight To Orlando for x4 pax• Background Concern – “Family Holiday” - I’m responsible for the trip.

My PERSONA Characteristics: • “Family Persona” + “Corporate Persona” + “Loyal” + “High Value”

Match me to Product Characteristics “High Margin” or “Promoted”

Give me the right product and price at the right touchpoints

I’ll increase spend with you – up to 30%

I’ll connect with your Brand = Experiential Excellence = My Loyalty, Demand and Trip Value!


ACTIVE Listening – Maximize TRIP Value, Loyalty and Demand



Optimize!

© Cartrawler Ltd. Confidential and proprietary. All rights reserved.

9

Bobby HealyCTO

10

Touchpoints


Decision Criteria


92%

8%

Airport Ex - airport

CarTrawler Global Data


40%

60%

Airport Ex - airport

Published Supplier Data


The Solution – Upsell using maps

Offer your customers’

the right options

© Expedia Inc. Confidential and proprietary. All rights reserved.

16

Helen PiperHead of Nordics


Today we are facing too many choices...


17

Today’s consumer makes on average 237 choices everyday

And when we want to travel – we are presented with even more....


19

Too many choices and too many clicks...


20

Just give me what I want !

So why don’t we learn from other industries and present relevant choices to our customers?


21

Past purchasing behaviour


Boots cross sell


Travel Industry Example


Concepts for travel industry segmentation

Business Traveller Family

Price conscious traveller

Leisure traveller

Flexible module


Relevance

Tailored offer to the customer’s needs

Save time and create loyalty

”This provider understands my needs and I don’t need to go elsewhere for a comparison”


All Channels Lead to the Customer !

“the best ideas, best values, best products and best services will win.”

Miles Nadel


29

Marc RosenbergDistribution strategist

So what’s going on!

A Martian landed on Planet Earth and was asked to summarize what was going on in the travel industry.

The conclusion made was that the travel industry was in a total state of disarray.

Fuel prices were escalating compromising airline capacity and revenue projections.

Civil unrest in certain regions of the planet was negatively impacting tourism. Natural disasters were taking their toll on specific points of origin or destination. Supply Chain Stakeholders were in legal battles over content obligations. The world’s most dominant force in travel search looks to take its place in the

chain.

If you are new to the travel industry or from another planet it is easy to understand why you would conclude that our industry is in serious trouble.

However if you have been around for a few years or more you have to ask yourself the question………………..

So what else is new?

Travel Suppliers are re-inventing the retail experience for customers, maximizing the opportunity to merchandise core and ancillary products across all channels.

“The average student has instant access to more information today than did every president in the past 15 years. There is a meritocracy of information and the best ideas, best values, best products and best services will win.”

Miles Nadal, Chairman and CEO of MDC Partners

(9th largest advertising firm in the world)

Sensible you might think, yet many find it irksome…..

Irksome…Why?

To read today’s trade media and travel industry blogs the one issue that is consistently being debated and reported on is American Airline’s direct connect strategy.

Some well meaning industry experts are advocating a total disruption to the supplier come travel agent model while others are questioning AA’s motivation to take on such a bold strategy.

With all due respect to American Airlines there is nothing new about their strategy. Direct connect has been around for over 5 years, and for those who only now are crying foul AA did announce in 2009 that they had been studying the model for over 3 years.

The airlines have always had a direct channel relationship with its customers usually accounting for 25-35% of their business. The LCC model has changed that and for some carriers direct sales are over 60% of their business

So what now?

Travel suppliers, (car,cruise,hotel,airlines) understand the need to enhance their retailing expertise to maintain market share in an increasingly competitive market.

Direct Connect allows them to extend their merchandizing practice to key distribution partners (travel agents, OTA, etc) on equal terms!

Too many stakeholders have vested interests in maintain the status quo. The battle has commenced and will continue….

Great supply chains are agile, adaptable, and aligned provide you the Supplier with sustainable competitive advantage.

It’s a simple formulation: getting the right product to the right place at the right time—all the time. • Where the supply chain is a “sales disabler” – STOP!• Where the channel brings value – GO!

So what’s the BIG Idea for Travel Retail

MERCHANDIZE your Product

Value; Demand and Profit!

ALL Channels lead to a CUSTOMER!Listen to your CUSTOMER!

Get the Stakeholders to the TABLE

ALIGN; ADAPT & INNOVATE

Shop, price, book, reward and fulfil any product on any channel.Inspire, personalize and optimize your retail experience.

The World’s Leading Travel Distribution Platform

Thank you for your time.

Tnooz-Datalex webinar - BIG ideas for travel retail

Travel

Transcript of Tnooz-Datalex webinar - BIG ideas for travel retail