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Presentation by Diego Lofuedo of Expedia at the E-Tourism Africa Summit 2010
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E-Tourism Africa Summit
October 26th 2010
CPT International Conference Centre
©2008 E
xpedia
, In
c.
Confidential &
pro
prieta
ry.
All
rights
reserv
ed.
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |1
AGENDA
1. How the Internet is evolving as a distribution and marketing
channel for travel products
• Growth in online adoption
• Effects of the internet on consumers
• Effects of the internet on hotels and travel suppliers
• Effects of the internet on intermediaries
2. How to profit from online distribution (focus on OLTAs)
• Effects of the online shift to hotels and travel suppliers
3. Results in South Africa
4. Expedia – More than just Transactions
5. Questions & Answers
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |2
How to profit from online distribution
1. Expedia?
2. Basics for working with OLTA´s … and YOUR own
web
Our mission remains the same…
At Expedia,
we create the best marketplaces around the world
for travelers to plan, book and manage their trips.
American Express
4
2009 “… was the year that online travel agency, Expedia,displaced American Express as the industry's largest seller of travel.”
-Travel Weekly Power List 2010
20082009
29.121.8
Expedia
27.821.5Carlson Wagonlit
21.321.4
HRG 1616
BCD Travel 1414.6
Orbitz 10.810.1
Travelocity 10.610*
Priceline 7.49.3
Source: Travel Weekly Power List 2010; Annual Earnings in billions (US$)
* Estimated as did not return figures
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |5
How to profit from online distribution
1. Expedia?
2. Basics for working with OLTA´s … and YOUR own
web
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
6
230 grams of competing inputs1. large blade2. small blade3. corkscrew4. can opener with small screwdriver5. cap lifter with screwdriver 6. wire stripper7. reamer 8. punch9. key ring 10. inox tweezers11. toothpick12. scissors13. multi-purpose hook / parcel carrier14. wood saw15. fish scaler16. hook disgorger17. ruler (cm + inches)18. nailfile19. metal file20. nail cleaner21. metal saw22. screwdriver 23. 2.5mm chisel24. pliers 25. wire crimping tool26. wire cutters27. Philips screwdriver28. magnifying lens 5x29. pressurized ballpoint pen30. pin 31. mini-screwdriver32. sewing eye
Online Strategic Building Blocks
7
Focus on Consumer Relevance
Gro
wth
Dri
vers
Enab
lers
Improve Ratequality
Increase Conversion
with
Availability
Content &
Reviewsefficiently
Connectivity TechnologyStandard Content
CustomerCentric
GrowProfitably
Extremely Focused
Simplistic
AgileTest
& LearnInnovate where
it matters
Performanceculture
Gu
idin
g P
rin
cip
les
© Expedia Inc. Confidential and proprietary. All rights
reserved.8
Focused design, intuitive, highly usable
© Expedia Inc. Confidential and proprietary. All rights
reserved.Expedia Partner Services
Group | 9
Back to basics RATE & ROOMS
Do you have:
The right rate plans 2011 2012?
The right 18 month Calendar?
The right yielding methods ?
The right plan ?
The right people and IT?
The right... Everything!
There are 295 hotels in Cape Town 30% with no Internet?
Expedia continued content enhancement optimisation
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
Provide excellent service – Read and ReplyHotel Conversion vs User rating Score (1-5)
1–2.9 3.0–3.9 4.0–5.0
% User Ratings
100
170
220
% Total ratings
Conversion Index
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |12
AGENDA
1. How the Internet is evolving as a distribution and marketing
channel for travel products
• Growth in online adoption
• Effects of the internet on consumers
• Effects of the internet on hotels and travel suppliers
• Effects of the internet on intermediaries
2. How to profit from online distribution (focus on OLTAs)
• Effects of the online shift to hotels and travel suppliers
3. Results in South Africa
4. Expedia – More than just Transactions
5. Questions & Answers
13
AGENDA
1. How the Internet is evolving as a distribution and marketing
channel for travel products
• Growth in online adoption
• Effects of the internet on consumers
• Effects of the internet on hotels and travel suppliers
• Effects of the internet on intermediaries
2. How to profit from online distribution (focus on OLTAs)
• Effects of the online shift to hotels and travel suppliers
3. Results in South Africa
4. Expedia – More than just Transactions
5. Questions & Answers
©2008 E
xpedia
, In
c.
Confidential &
pro
prieta
ry.
All
rights
reserv
ed.
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |16
1. This shifting online is impacting consumers, intermediaries, and travel suppliers.
Internet is changing the way people buy and sell travel (i.e. Cape Town or Cairo
sold as a long weekend city break!).
2. Revenue Management is key to maximize profits. Moreover in times of economy
slowdown. Every single penny counts
3. Wear online hat when doing business with online Tour Operators. Wear offline
hat while doing business with offline tour operators. Think selling price while @
4. Expedia is your best option to maximize revenue, reach worldwide audience,
learn about e-commerce and benefit from our vast online experience.
5. Expedia is the ONLY OLTA that can offer you Transactions, Media Value and
Billboard effect. No other competitor can close the circle this way!.
6. Online is not the future. It is the present. And it is happening now in Africa. We
are bringing the e-commerce to Africa and Africa to the e-commerce. Join us!
7. The Offline Travel Trade is not left aside. Join www.agentrez.com and start
earning $$!
Summary
©2008 E
xpedia
, In
c.
Confidential &
pro
prieta
ry.
All
rights
reserv
ed.
©2008 E
xpedia
, In
c.
Confidential &
pro
prieta
ry.
All
rights
reserv
ed.
Thank you!
ANY QUESTIONS?
Diego J. Lofeudo
Ross Kata
17
