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How the Internet Is Revolutionizing the Travel Industry

Digital Travel Marketing. How the Internet Is Revolutionizing the Travel Industry. Rick Bruner IMT Strategies Vice President, Senior Analyst Author, “Net Results: Web Marketing That Works”. Do the Right Thing Then... Do Things Right. Interactive Marketing. Customer Data Warehouse.

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How the Internet Is Revolutionizing the Travel Industry

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  1. Digital Travel Marketing How the Internet Is Revolutionizing the Travel Industry Rick Bruner IMT Strategies Vice President, Senior Analyst Author, “Net Results: Web Marketing That Works”

  2. Do the Right Thing Then... Do Things Right

  3. Interactive Marketing Customer Data Warehouse Front-Office Automation E- Business Customer Interaction Center Sales & Marketing Technology Revolution

  4. S/M Shift New Age Direct Marketing New Tools • Interactive Media • Personalization • Portals/ Communities • Trading Networks • CRM Marketing Tools Existing Tools • Media Advertising • Direct Mail • Promotion • Tele-marketing • Sales Incentives • Pricing Customer Behavior Existing Channels New Channels • Direct Sales • Retail • Partners • E-Commerce • Tele-sales • Automated Repurchase

  5. Evolution in Sales & Marketing Budgets • Traditional Sales & Marketing Investments: • Direct Sales • Advertising • Promotion • Technology-Enabled Marketing Programs: • Internet Marketing • E-Commerce • CRM • Cust. Interaction Centers • Cust. Data Warehouses • Sales Automation • Marketing Automation 1996 * 2002 * * Estimates

  6. Emerging Travel Giants

  7. Do-It-Yourself Consumer Empowerment

  8. Your Competitors Aren’t Waiting

  9. The New Infomediaries

  10. Online Travel Statistics • In 1997, online travel spending reached $827 million, triple the previous year. * • 6.7 million travelers booked trips online in 1998. * • 4% of all US adults made travel reservations online in 1998. * • Of people who have made online purchases, 40% have bought airline tickets, the third biggest e-commerce category after computer hardware/software and books ** * Travel Industry Association of America. ** PhoCus Wright

  11. Niche Specialization

  12. New Business Models

  13. Get The Site Right Set Clear Objectives: • Customer Retention • Lead Generation • Online Sales • Customer Service and Support • Market Research • Brand Building

  14. Retention Marketing Campaign

  15. Retention Marketing Campaign

  16. Online Sales

  17. Online Sales

  18. Online Sales Engine

  19. Market Research

  20. Demand Generation • Banner Ads • Email Marketing • Search Engines • Affinity Sites • Affiliate Programs • Special Promotions • URLbiquity

  21. The Truth of “1 to 1” Marketing: 1% Click-Throughs X 1% Customer Acquisition ______________________________ 10,000 Ad Banners = 1 Purchase

  22. Keyword Targeting

  23. Content Targeting

  24. Geographic Targeting

  25. Email Marketing

  26. Search Engine Optimization

  27. Incentive Marketing

  28. Calculate Return on Investment You Can’t Improve What You Don’t Measure!

  29. Customer Acquisition @ $30 CPM = $300 Ads 10,000 Click-through rate x 0.01 Acquisition rate x 0.01 Customers Acquired 1 Ads 10,000 x 0.001 (10,000 / 1,000) 30 Cost per Thousand (CPM) x $ 30.00 Cost to Acquire 1 customer $ 300

  30. Life-Time Value Equation Average annual customer revenue $ 900.00 Average numbers of loyal years x 3.00 Profit x 0.10 Customer Life-time Value $ 270

  31. User Perception is Marketing Reality • 76% of users are uncomfortable with sites monitoring their Net browsing.  • 70% are concerned with using their credit cards online.  • 59% of respondents who go online said they never registered at companies’ Web sites that request personal information.  • 40% of users have provided false information at least once while registering at a Web site.  • 63% of those reluctant to give personal information say they would do so if Web sites disclose clearly how the information will be used.   TRUSTe/BCG Consumer Survey  Business Week/Harris Black  Georgia Tech Survey  Harris/Westin Survey

  32. Privacy Statement

  33. Privacy Statement

  34. Privacy Statement

  35. Online Travel Resources • PhoCus Wrightwww.phocuswright.com • Travel Industry Association of Americawww.tia.org • TravelWebwww.travelweb.com • Traveler.Netwww.traveler.net • Infotec Travelwww.infotec-travel.com • Travel Weeklywww.twcrossroads.com • Travel Hubwww.travelhub.com

  36. An advisory firm helping business leaders understand, anticipate and leverage sales and marketing technologies, changing customer buying behavior and new technology-enabled business models. • Focused on the business applications of technology trends such as interactive marketing, e-business, call centers, customer relationship management, marketing and sales process automation and database marketing. • Offering custom and syndicated advisory services, research, training and publications. • An affiliate and close strategic partner of META Group, a leading IT research firm. • (877) 566-7744 (toll free) • www.imtstrategies.com

  37. Rick E. Bruner rick@imtstrategies.com (415) 351-2489 VP, Senior Analyst IMT Strategies Author Net Results: Marketing That Works

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