dataLO55pr3v3n7ion7rav3LPOR7
Jean-Sébastien Irigoyen
17 September 2014
• Where we are now
• Trends
• Content
• What matters to OTAs
• Conclusion
Agenda
• The Industry is growing!
• Online is growing quicker than Offline!
– Three times faster!
• Online will reach 50% of the Industry in the next few years
Online trends
– 3
Northern Europe 2% growth
Southern Europe 3% growth
More city breaks = confidence
River cruising increasing
47% increase in city trips since 2009
Over 350 new aircraft will facilitate traffic growth
In Europe, things are getting better…slowly
Source: European Commission Survey ETC 2013, World Travel Trend Report, IPK International & ITB Berlin 2013/2014
The Online Opportunity
Or…
14%
13%
10%
6%
5%
51%
2008
Orbitz
Opodo
Travelocity/lastminute.com
Priceline/Booking.com
Expedia/ venere
Others
31%
15%
11%
4% 3%
40%
2012
Travelocity
Orbitz
eDreams/Odigeo
Expedia
Priceline/Booking.com
European OTA share of Gross Bookings
7 Produced by Market Strategy and Pricing, CMO
25%
15%
12%
4% 3%
41%
2011
Travelocity
Orbitz
eDreams/Odigeo
Expedia
Priceline/Booking.com
48%
64% 60%
Others Others
Consolidation set to continue in Europe - Pan-European brands account for over 60%
• Where we are now
• Trends
• Content
• What matters to OTAs
• Conclusion
Agenda
Customer searches
• For more Choice
• For more Content
• With more Confidence
Source: Google trends – 9
Technology
• Devices
– Shipments of Tables, Desktops and Laptops growth is slowing (+12% in 2014)
– Tablets will outsell laptops by 2015
• Novelties
– Phablets
– Hybrid PCs (Surface)
• Apps
– Drives adoption
– Windows 8
10
11
Search Engines moving down the travel decision process
• Google – Flight Search & Hotel Finder & Local maps
• Microsoft Bing partners with Tripadvisor hotel search and app
Online Travel Agencies moving up the travel
decision process using Metasearch sites
• Booking.com/Priceline + Kayak
• Expedia + Trivago • eDreams Odigeo + Liligo
Inspiration
Research
Validation
Booking
Travel
Tripadvisor -> Metasearch
• Validation site now a metasearch
Industry: Redistribution?
Go Social
12
Better Online and Offline integration
• Amazon example
• Banks
– BNP: Hello Bank
– Société Générale: Boursorama
– ING
• Travel
– FCM
13
• Where we are now
• Trends
• Content
• What matters to OTAs
• Conclusion
Agenda
Air
• LCCs represent 35% of PAX carried by the Top 10 airlines in Europe…
– RyanAir is the biggest EU carrier
– Followed by AF KL (-3.5%)
• Fare unbundling
– Seats
– Luggage
• Traditional Airlines may extend the LCC model
– Cf AF/KL strike regarding Transavia expansion
15
Airlines who distribute extras through Travelport
Accor build further in Europe
• 41% of the new openings are in Europe
• Upscale and midscale hotels are up by 3.3%
• The economy segment also shows revenue up by 4.1%
• All European countries contributed to this growth, particularly in the United Kingdom and Southern Europe, which continues to improve.
Motel One expands in Europe
• 19 hotels in 2007 - now 46 in 2013
• Investment in UK hotel market with 6 hotels in the pipeline
17
Ikea to open budget hotel chain
• Ikea to open a budget chain of 150 hotels in Europe
• Being developed in collaboration with Marriott and to be called Moxy
• The UK expected to be key target market
Budget hotels expand in Europe
In essence
18
We still need to find what we want
19
20
Speed
Relevance Choice
Accuracy
Intelligent Search
Travelport e-Pricing is central to our Intelligent Search proposition
Our advanced fare search algorithms process millions of fares and deliver the best range of accurate itineraries to travelers
More search relevancy
21
Flex Explore A live, real-time inspirational search tool
e-Streaming Valuable ‘big data’ for analysis and cache for search
e-Pricing meta A fast and accurate tool to optimise appearing on meta site results tables
Search Control Console Tailoring search results to control supplier policies and drive relevancy
Travelport’s Online solutions
22
eStreaming
• Where we are now
• Trends
• Content
• What matters to OTAs
• Conclusion
Agenda
What Travelport like not to forget
OTAs become eCommerce that happen to sell Travel
eCommerce follow only one KPI:
Conversion
24
Focus on conversion
Confidential 25
Cause Effect 100 visitors
Bounce Rates
Attracting poor quality traffic
& low relevance for users Homepage 40% 40 people leave
2% = 2 bookings
Search
Results 35% Poor design / usability &
Results 35 people leave
Poor design and unclear
calls to action Booking
Form 15% 15 people leave
Payment 8% Unclear calls to action and
lack of trust 8 people leave
What matters to OTAs
• Drive traffic
• Increase conversion
• Grow margins
• In a cost effective way
dataLO55pr3v3n7ion7rav3LPOR7
Conclusion
Best content
Best technology to retrieve it
But still up to the Online player to bring their customers onsite!
In essence
28
How will you differentiate from competition?
How will you bring customers on the website?
And more importantly, how will your customer come back onto your website?
So many questions to ask!
– 29
Travelport provide the content, tools and expertise for OTAs to concentrate on bringing the customers onsite!
Travelport is a key partner
TRAVELPORT CONFIDENTIAL
Q&A
– 31
Please ask jean-sebastien.irigoyen@travelport .com for more!
dataLO55pr3v3n7ion7rav3LPOR7
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