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


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


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

% using ... for any research

NB data relates to package / accommodation purchases


Web’s role in holiday planning

NB data relates to package / accommodation purchases


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

% 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

NB data relates to package / accommodation purchases


Agency staff role in holiday planning

NB data relates to package / accommodation purchases


TV’s* role in holiday planning

* programmes/ads only

NB data relates to package / accommodation purchases


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

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

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

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

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

  • 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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