The changing face of travel distribution
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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

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The Changing Face of Travel Distribution

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The changing face of travel distribution

The Changing Face of Travel Distribution


Channel planning harder than tri dimensional chess

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

Information economics affect channel strategy


Online travel agents value

Value to customers

Price

Choice

Control

Information

/ – Customer service

Advice

Payment options

Online travel agents’ value

  • Value to suppliers

  • Efficient reach

  • Customer access

  • Market demand feedback

  • Sales expertise / innovation

  • Outsourced customer support

  • / – Quality of representation

  • Loss of relationship control

  • Commissions / fees


Web is widely used source of information

Web is widely used source of information

% using ... for any research

NB data relates to package / accommodation purchases


Web s role in holiday planning

Web’s role in holiday planning

NB data relates to package / accommodation purchases


Web becomes part of the process

Web becomes part of the process

% of adults

Base: All adults who have taken a holiday since May 2002, July 2003


Browsing and booking trends

Browsing and booking trends

% adults who cited PC Internet as method of … for last holiday purchase

Base: Adults who took a holiday in the previous 12 months


Brochures role in holiday planning

Brochures’ role in holiday planning

NB data relates to package / accommodation purchases


Agency staff role in holiday planning

Agency staff role in holiday planning

NB data relates to package / accommodation purchases


Tv s role in holiday planning

TV’s* role in holiday planning

* programmes/ads only

NB data relates to package / accommodation purchases


All leisure travel

All Leisure Travel

All Holiday and VFR trips taken by UK Nationals (000)

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0


Leisure air travel subsegment forecast

Leisure air travel subsegment forecast

Full Flight-based International Independent Trips (000)

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0


Leisure travel channels ecosystem 2003

Leisure travel channels ecosystem - 2003

Mass market

Seller focus

Tour operator owned

travel agent

Lates specialist eg Teletext,

Cheapflights, Bargainholidays

TV travel channel

Independent high

street travel agent

Direct supplier sites eg

Holiday-inn, easyjet, BA.com

General online travel agent

eg Expedia, Opodo,

Travelocity, ebookers

High

Low

Shopper confidence

Ideas aggregator eg Lastminute.com

Destination portals

Specialist tour operators

Niche


Channel shifts 2004 2007

Channel shifts 2004-2007

Mass market

Seller focus

Tour operator owned

travel agent

Lates specialist eg Teletext,

Cheapflights, Bargainholidays

TV travel channel

Independent high

street travel agent

Direct supplier sites eg

Holiday-inn, easyjet, BA.com

General online travel agent

eg Expedia, Opodo,

Travelocity, ebookers

High

Low

Shopper confidence

Ideas aggregator eg Lastminute.com

Destination portals

Specialist tour operators

Niche


Leisure travel channels ecosystem 2008

Leisure travel channels ecosystem - 2008

Mass market

Seller focus

Teletext, Cheapflights,

Bargainholidays

TV travel channel

Independent high

street travel agent

Tour operator owned

travel agent

Direct supplier sites eg

Holiday-inn, easyjet, BA.com

General online travel agent

eg Expedia, Opodo,

Travelocity, ebookers

High

Low

Shopper confidence

Ideas aggregator eg Lastminute.com

Destination portals

Specialist tour operators

Niche


Conclusions

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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