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- rwwcoursecontent
The Changing Face of Travel
Distribution
Channel planning: harder than tri-dimensional chess?
Dimensions to consider:
 Reach
 Ease of comparison
 Cost of sale
 Brand reinforcement
 Relationship potential
 Customer preferences
 Customer satisfaction
 Product type
 Decision context
 Buying process stage
 Technology choices
 Scalability
Information economics affect channel
strategy
Face to Face Sales
Richness:
Capacity
Customisation
Interactivity
XML, Web Services,
Recommendation
engines etc
TV Advertising
Reach: Connectivity
Online travel agents’ value
Value to customers
+ Price
+ Choice
+ Control
+ Information
Value to suppliers
+ Efficient reach
+ Customer access
+ Market demand feedback
+ / – Customer service
+ Sales expertise / innovation
– Advice
+ Outsourced customer support
– Payment options
+ / – Quality of representation
– Loss of relationship control
– Commissions / fees
Web is widely used source of information
% using ... for any research
0%
10%
Agency shop staff
10%
Agency staff
11%
Agency shop staff
50%
60%
25%
Finding final choice
Other research
6%
24%
35%
18%
23%
22%
Brochures
The Internet
40%
15%
Brochures
The Internet
30%
21%
Brochures
The Internet
20%
16%
29%
24%
22%
14%
13%
12%
NB data relates to package / accommodation purchases
Web’s role in holiday planning
0%
10%
20%
30%
50%
41%
Any research
36%
29%
Initial ideas
29%
28%
Comparing offers
28%
24%
Finding final choice
Booking
40%
Air package
25%
5%
NB data relates to package / accommodation purchases
16%
Independent
accommodation
60%
Web becomes part of the process
% of adults
0%
5% 10% 15% 20% 25% 30% 35% 40% 45%
Used an online search engine to find travel Web
sites
Emailed or used a Web site form to request further
information (e.g. availability, prices)
Printed out information from a Web site to help me
when phoning or visiting a travel agent
10%
30%
15%
13%
9%
10%
For last holiday planning
Phoned the company whose Web site I had been
looking at
Registered my details or preferences with a travel
Web site
Responded to an email offer or a newsletter by
clicking on a Web site link or emailing back
10%
12%
7%
5%
4% 4%
Base: All adults who have taken a holiday since May 2002, July 2003
Previously but not last
time
Browsing and booking trends
% adults who cited PC Internet as method of … for last holiday purchase
0%
10%
30%
40%
50%
2001
23%
Researching their
holiday
Booking
Package/accom
20%
35%
2003
5%
10%
20%
Booking a Flight
49%
Base: Adults who took a holiday in the previous 12 months
60%
Brochures’ role in holiday planning
0%
20%
40%
60%
80%
100%
79%
Any research
38%
72%
Initial ideas
34%
60%
Comparing offers
26%
Air package
48%
Finding final choice
18%
NB data relates to package / accommodation purchases
Independent
accommodation
Agency staff role in holiday planning
0%
10%
20%
30%
40%
50%
60%
56%
Any research
9%
37%
Initial ideas
5%
39%
Comparing offers
5%
Air package
35%
Finding final choice
3%
NB data relates to package / accommodation purchases
Independent
accommodation
TV’s* role in holiday planning
* programmes/ads only
0%
15%
20%
25%
30%
3%
11%
Initial ideas
Finding final
choice
10%
13%
Any research
Comparing
offers
5%
3%
6%
0%
Air package
2%
0%
NB data relates to package / accommodation purchases
Independent
accommodation
All Leisure Travel
All Holiday and VFR trips taken by UK Nationals (000)
Other bookings
Booked by or for PC Web user but not browsed online
Browsed but not booked online
140,000
Booked online
120,000
100,000
80,000
60,000
40,000
20,000
0
2001
2002
2003
2004
2005
2006
2007
2008
Leisure air travel subsegment forecast
Full Flight-based International Independent Trips (000)
20,000
Other bookings
18,000
Booked by or for PC Web user but not browsed online
Browsed but not booked online
16,000
Booked online
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2001
2002
2003
2004
2005
2006
2007
2008
Leisure travel channels ecosystem 2003
Mass market
TV travel channel
Seller focus
Lates specialist eg Teletext,
Cheapflights, Bargainholidays
Tour operator owned
travel agent
General online travel agent
eg Expedia, Opodo,
Travelocity, ebookers
Low
Independent high
street travel agent
Direct supplier sites eg
Holiday-inn, easyjet, BA.com
Ideas aggregator eg Lastminute.com
Destination portals
Specialist tour operators
Niche
High
Shopper confidence
Channel shifts 2004-2007
Mass market
TV travel channel
Seller focus
Lates specialist eg Teletext,
Cheapflights, Bargainholidays
Tour operator owned
travel agent
General online travel agent
eg Expedia, Opodo,
Travelocity, ebookers
Low
Independent high
street travel agent
Direct supplier sites eg
Holiday-inn, easyjet, BA.com
Ideas aggregator eg Lastminute.com
Destination portals
Specialist tour operators
Niche
High
Shopper confidence
Leisure travel channels ecosystem 2008
Mass market
TV travel channel
Seller focus
Teletext, Cheapflights,
Bargainholidays
General online travel agent
eg Expedia, Opodo,
Travelocity, ebookers
Low
Direct supplier sites eg
Holiday-inn, easyjet, BA.com
Independent high
street travel agent
Ideas aggregator eg Lastminute.com
Destination portals
Specialist tour operators
Niche
High
Shopper confidence
Conclusions
 Take the customers’ perspective
 Segment the online opportunities
 Work on guided selling, rather than taking orders
 Mine the web/search activity data as hard as you can
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