Date post: | 29-Oct-2014 |
Category: |
Technology |
Upload: | ciarandelaney |
View: | 15 times |
Download: | 2 times |
Dublin Hotel Website Marketing ConferenceCharlotte Gogstad17th February 2009
3rd Party Partners
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group | 2
AGENDA
1. WHO • Who are Expedia
• Our Global Footprint
• Access to Demand
2. WHY • Evolution in Online Travel
• Trends in Travel Distribution
3. HOW• 5-STEP of Partnering with an OLTA
• THE OLTA’s investment in demand
• What does it mean for Irish hotels
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group | 3
AGENDA
1. WHO • Who are Expedia
• Our Global Footprint
• Access to Demand
2. WHY • Evolution in Online Travel
• Trends in Travel Distribution
3. HOW• 5-STEP of Partnering with an OLTA
• THE OLTA’s investment in demand
• What does it mean for Irish hotels
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
Expedia holds a leadership position in nearly every geographic market where we are present
Unmatched global marketplace of brands
No.1 hotel specialist, in 42 countries
Leading discount travel site reaching price-conscious travelers
Leading online travel service provider in China
On-demand, full-service corporate travel agency operating in nine countries
No.1 community player with more than 15 million reviews and opinions
No.1 OLTA, in 19 countries
Operating more than 100 in-market concierge and activity desks
©20
08 E
xped
ia, I
nc.
Con
fiden
tial &
pro
prie
tary
. All
right
s re
serv
ed.
Expedia’s value proposition
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
Expedia provides access to international demand
•Highest brand awareness
worldwide
•Leadership position in nearly
every geographic market
present
•3 of top 7 online travel agencies
in the Americas, including the
#1 agency
•#1 in UK, Germany, Italy; #2 in
France
•#2 in China
•More points of sale to be
launched
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
©20
08 E
xped
ia, I
nc.
Con
fiden
tial &
pro
prie
tary
. All
right
s re
serv
ed.
Expanding internationally
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |7
©20
08 E
xped
ia, I
nc. C
onfid
entia
l & p
ropr
ieta
ry. A
ll rig
hts
rese
rved
.
Expanding internationally
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |8
©20
08 E
xped
ia, I
nc. C
onfid
entia
l & p
ropr
ieta
ry. A
ll rig
hts
rese
rved
.
Expanding internationally
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
#1 online travel site
20 POS
Broadest product offering
focusing on “the whole trip”
Package-focused
Broad, upscale customer
mix
Longer booking
window/longer LOS
#1 hotel specialist
40 POS
Consumer site focused on
user reviews
Two-thirds drive
Last-minute shoppers
Call center heavy
Hotel Only
Wider and specific
distribution
Hotel/Package ► longer
length of stay
Some of our partners:
©20
08 E
xped
ia, I
nc.
Con
fiden
tial &
pro
prie
tary
. All
right
s re
serv
ed.
Reaching diverse customer segments
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
Multiple product categories to maximise demand
10
©20
08 E
xped
ia, I
nc.
Con
fiden
tial &
pro
prie
tary
. All
right
s re
serv
ed.
More than 730,000
flight shoppers
globally, per day
More than 55,000
car shoppers
globally, per day
Nearly 475,000
hotel shoppers
globally, per day
We have more than 75 million visitors to our sites every month
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
5.5% overlap
Accessing different target audiences
11
We attract a range of consumers with different buying habits
UK Traffic per month
20 Million
UK Traffic per month
40 Million
Average Customer Age: 56% are 25-44
Income: 41% earn £50+
20% repeat customers
Average Customer Age: 63% are 35-65
Income: 67% earn £50+
20% repeat customers
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group | 12
AGENDA
1. WHO • Who are Expedia
• Our Global Footprint
• Access to Demand
2. WHY • Evolution in Online Travel
• Trends in Travel Distribution
3. HOW• 5-STEP of Partnering with an OLTA
• THE OLTA’s investment in demand
• What does it mean for Irish hotels
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
We are bringing you the world
WHY work with an OLTA?
Incremental business: Reach travelers that would not find you any other way
Get customers that stay for longer in your hotel and spend more money on it
Inspire travelers to find, buildand share travel experiences
Make your hotel accessible to a Worldwide audience
13
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group | 14
Trends in Travel Distribution Europe online travel continues to grow and gain market share from offline channels
European Leisure/Unmanaged Business Travel Market 2006-2010Gross Booking (€B), Growth (%) and as a Percentage of Total Travel Market
Note: 2008-2010 projectedSource: PhoCusWright´s European Online Travel Overview 4th Edition
• The European online leisure/unmanaged business travel market is projected to nearly double, from €48 billion in 2006 to €90 billion in 2010
• Online bookings in 2007 increased 24% over the previous year vs. 6% growth for the overall European travel market (€59 billion out of €237 billion total), and is expected to continue to see healthy growth over the next few years
• In comparison, the US online travel market ($90 billion out of $265 billion total) also saw growth of 12% in 2007 this is expected to slow to 7% by 2010
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
15
Trends in Travel Distribution Lack of consolidation and economic environment favour online distribution channels• The large number of geographically dispersed small chains and independent properties are
not likely to see major consolidation, therefore the supplier direct online distribution channel is not forecasted to increase significantly in importance for Hotel
• With the economy softening, online distribution channels have increased access to inventory and can offer a broad range of products for easy comparison shopping by consumers who are increasingly value conscious
European Supplier Web Site Booking ShareLeisure/Unmanaged Business
Note: 2008-2010 projectedSource: The European Online Travel Market: 2006-2010
15
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
Trends in Travel Distribution Despite the economic environment, online travel will continue to grow• The negative macro economic outlook, driven by the global financial crisis, is expected to
have a negative impact on European travel spend• However, an economic downturn is expected to have an upside for online travel – just as
it already has in the US, where travelers are increasingly shopping for bargains online • After September 11th, 2001, Expedia hotel transactions grew 120% in 2002
16
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |17
IMPRESSIONSIMPRESSIONS
• 7,743,507 – £154,8707,743,507 – £154,870
•4,222,803 – £84,4564,222,803 – £84,456
• 2,337,650 – £46,7532,337,650 – £46,753
Cost of a banner such as the one displayed above is approximately £20 per 1,000 impressions
The cost of Top 5 position head term on a major search engine such as ‘London Hotels’ is estimated at £1.15 per click
PLACEMENTPLACEMENT
• Top Hotel Top Hotel
• AverageAverage
• Low Low
CLICKSCLICKS
•130,874 - £150,505130,874 - £150,505
•62,713 – £72,12062,713 – £72,120
•42,786 - £49,20342,786 - £49,203
Trends in Travel Distribution Participating with an online travel agent provides media value
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
©20
08 E
xped
ia, I
nc. C
onfid
entia
l & p
ropr
ieta
ry. A
ll rig
hts
rese
rved
.
18
• For every 2 transactions on Expedia, our shoppers also make 1 transactions direct with you
• Resulting in significant reduction of the effective cost per transaction on Expedia
We help drive your growth
Cost per transaction spread
over 3 transactions
25%
15%
Direct cost per transaction Effective cost per transaction including “Billboard Effect”
Driving direct sales
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group | 19
AGENDA
1. WHO • Who are Expedia
• Our Global Footprint
• Access to Demand
2. WHY • Evolution in Online Travel
• Trends in Travel Distribution
3. HOW• 5-STEP of Partnering with an OLTA
• THE OLTA’s investment in demand
• What does it mean for Irish hotels
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
1. Get your product into OLTA Shelves
+ 2. Promote deals on OLTA shelves
+3. Run ad campaigns with OLTA’s
+ 4. Be active on UGC sites
+ 5. Upgrade your site for ancillary revenues
Co
nsu
mer
Rel
evan
ce
Long-term Brand Value
5-STEP EVOLUTIONARY ON-LINE MARKETING – Partnering with Online Travel Agents (OLTA’s)
OLTA capturing demand th
rough Marketin
g Investm
ent
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |21
1. Get Your Product on OLTA Shelves Online distribution provides flexible options for both consumers and suppliers
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
Info sitesTraveller Reviews
Virtual Tours
Room details
Photos
1. Content Management
95% of leisure Bookers & 92% of Lookers say descriptive content is important to them
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |23
2. Promote Deals on OLTA Shelves
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
3. Run ad campaigns and build your brand
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |25
The Web Site Content That Matters To TravelersForester Research
4. The Power of User Generated Content
• Expedia has more than 1.5 million traveller reviews in 9 languages
• 14.5% of customers posted reviews globally
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
Hotel 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
Source: NYC, Hotels.com, Nov 2008
4. Manage your reputation on User-generated content sites, it will help you in the long-run
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
4. Manage your reputation globally
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
5. Upgrade your site for ancillary revenues
Expedia – Pegasus co-branded hotel partnership will help Pegasus expand its consumer offering with minimal investment
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
$1 billion in marketing spend in 2008• We drive demand through investing in a wide range of marketing channels
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
Content
Telesales Agents
Search Optimization
Promotions
Email marketing
Merchandising
Full service online travel agency……more than just a transactional website
Offline Advertising
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
Expedia Inc in Ireland
Strong YoY growth in domestic searches and transactions – The Irish seems to be staying closer to home this year
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
• Despite the weakening macro economics, 21% room night growth was achieved in Dublin in 2008
32
New Distribution ChannelsExpedia has been achieving significant growth into Dublin
YOY Growth
* Compared against same period last year
Booked Nights by Expedia’s Customers and Year-on Year Growth in Dublin for 2002 to 2008
76%47%
43%25%
25%
21%
2002 2003 2004 2005 2006 2007 2008
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
• Expedia’s customer base is becoming increasingly diverse internationally and the large European markets continue to grow.
• In particular shift towards customers coming from Scandinavia, France and Spain
33
New Nationalities Visiting DublinExpedia’s significant and growing international reach
Booked Nights in Dublin for 2006 to 2008 Origin Mix of Expedia and Hotels.com Customers
0%
20%
40%
60%
80%
100%
2006 2007 2008
Other
Ireland
Netherlands
Germany
Spain
Nordic
Italy
France
North America
UK
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group | 34
Recap
Who will win in this economic environment?
The travel suppliers who will win will be those who:
Display rich content
Actively manage rates and inventory
Take advantage of marketing and merchandising opportunities
Provide a quality product
Offer excellent service
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
Final Words: The ‘right’ Mindset ... can help you make the right decisions
Be curious and open minded
Look cross-industry
Try ‘stuff’ out
Test, Optimise and Adapt
Thank you and
Hope to see you online!
© 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
Summary
1) Despite the economic downturn, online travel will continue to grow and gain market share from offline channels
2) Global Intermediaries will have a bigger role in the distribution of the hotel product due to the fragmented lodging landscape
3) The negative macro economic situation means that new distribution channels with pan European and global reach will become more important than ever
37