BEST PRACTICE

SHARING
E-TRAVEL
Corp. Management Development
2018
TRAVEL &
TOURISM
OUTLOOK
Corp. Management Development
2018
 TRAVEL & TOURISM OUTLOOK Europe
Worldwide Growth Travel & Tourism Business in 2016 2.0 trillion
Number of tourists in 2016 : 36 million
Causes : In 2016, the value of poundsterling dropped sharply. This
situation as a boost of number of tourists in 2016.

America
2.2 trillion
2.0% Number of tourists in 2016 : 43 million
Europe
2.4% Causes : In 2016, number of tourist in US was weak, partly as a
consequence of the continued strength of dollar. But Canada &
America
6.1% Mexico enjoyed strong years for tourism in 2016
Asia Pacific

1.8% Africa & Middle East

Africa & Middle
East 393 billion
Number of tourists in 2016 : 26 million
Causes : After a weak year in 2015, direct Travel & Tourism GDP
contracted again in 2016 in North Africa. Continued weakness in
Egypt(-16.1%) in the aftermath of further terror attacks
and bombings has driven this wider regional decline

Asia Pacific
2.3 trillion
Number of tourists in 2016 : 159 million
Causes : The strongest growth was experienced in Southeast Asia
(8.3%), which has benefited with rapid growth in the China
outbound market, and South Asia (7.9%), with Sri Lanka (10.7%),
Thailand (10.7%), Vietnam (10.7%), Philippines (8.9%), Singapore
(8.7%), India (8.5%), and Indonesia (5.8%)
Source : Global Economic Impact & Issues 2017
 TRAVEL & TOURISM INDEX 2017
Indonesia’s Travel & Tourism Competitiveness Index 2017

Source : The Travel & Tourism Competitiveness Report 2017

IMPACT OF INDONESIA’S TRAVEL & TOURISM
Indonesia’s Travel & Tourism Contribution to GDP 2016
Travel & Tourism Contribution to GDP • Leisure travel spending (inbound and domestic)
Business vs Leisure (2016)
generated 74.8% of direct Travel & Tourism GDP in
2016 (IDR 305,396 billions) compared with 25.2%
for business travel spending (IDR 102,716 billions).
• Business travel spending is expected to grow by
25.20% 5.7% in 2017 to IDR 108,545 billions, and rise by
Leisure Spending 5.1% pa to IDR 178,039 billions in 2027.
Business Spending • Leisure travel spending is expected to grow by 4.1%
74.80%
in 2017 to IDR 317,780 billions, and rise by 5.5% pa
to IDR 544,747 billions in 2027.

Travel & Tourism Contribution to GDP • Domestic travel spending generated 57.5% of direct
Domestic vs Foreign (2016) Travel & Tourism GDP in 2016 compared with 42.5%
for foreign travel.
• Domestic travel spending is expected to grow by
5.5% in 2017 to IDR 247,565 billions, and rise by
4.6% p.a to IDR 387,049 billions in 2027.
42.50% Foreign visitor spending • Foreign travel are expected to grow by 3.1% in 2017
57.50% to IDR 178,760 billions, and rise by 6.5% pa to IDR
Domestic spending
335,736 billions in 2027.

Source : Travel & Tourism Economic Impact Indonesia (2017)

 IMPACT OF INDONESIA’S TRAVEL & TOURISM
Impact of Indonesia’s Travel & Tourism Compare Other Sector

Comparing the effect of $1 million in

spending

• Spending in a sector will have varying impacts

on GDP, depending on the local value added
and linkages to the rest of the economy.

• In Indonesia, $1 million in Travel & Tourism

spending (consumption) generates $1.7
million in GDP. This is larger than every other
studied sector.
Direct
1 Catering, accommodation, entertainment, recreation,
transportation, other T&T related services.
Indirect
2 Printing/publishing, utilities, financial services, sanitation
services, furnishing & equipment suppliers, security services,
rental car manufacturing, transportation,
administration, ship building, tourist information, aircraft
manufacturing, resort development
Induced
Food & beverage supply, retailers, business services,
3 wholesalers, computers, housing, utilities manufacturers,
Source : How does Travel & Tourism compare to other sectors
(World Travel & Tourism Council, 2017) personal services.
ONLINE TRAVEL
AGENCIES

Corp. Management Development

2018
ASIA PACIFIC’S TRAVEL & TOURISM
Potential Factors of Rapid Growth Online Travel in Asia Pacific

Asia is the Future of Travel

01 In terms of global destinations, six of the world’s top ten
cities for international visitors are in Asia, with Bangkok
leading all cities in 2016, ahead of London, Paris, New
York, and Dubai.
.

Internet Growth
02 According to a 2017 report on e-commerce, Google
identifies Southeast Asia as the “world’s fastest growing
Internet region,” growing at 14% per year. Projections
forecast that Internet users will nearly double from 260
million in 2016 to approximately 480 million by 2020.

Online Travel Forecast

03 By 2020, APAC’s online travel market is forecasted to
exceed US $211.3 billion. Of that, US $62.8 billion
(approximately 30%) will be online hotel bookings.
According to Phocuswright, by 2020, total OTA gross
bookings in APAC will reach US $96.5 billion by 2020 –
doubling since 2015.

Source : Online Travel Agencies in Asia (Asian Trade Centre, 2017)

ONLINE TRAVEL AGENCIES VS HOTEL BOOKINGS
Source : Hotel Shopping - OTAs vs Hotel Websites (Lulla 2016)
Expedia and Priceline are two leading OTAs and
appear to be the helping hand of the hotel industry.
As mentioned earlier, the travel agencies make sure
that empty rooms are filled and that hotels are
almost fully occupied. In return, a commission is
paid. While OTAs represent an important resource
for hotels to generate revenue and to reach new
markets, they also represent a challenge due to
these commissions and online competition. The
commission may be as high as 20 % of the total
revenue generated per booked room. (Del Chiappa
2013, 57.)
Independent hotels are often dependent on an OTA
as their brand awareness has not reached many
people yet. With the help of an OTA, the hotels are
able to increase their brand awareness and attract
more guests. Nowadays, more than 76 % of the
independent hotel bookings are made through
OTAs. (Starkov 2013.)
ONLINE TRAVEL AGENCIES :
BUSINESS MODELS
Advertising business model : TripAdvisor
1. Click-Based Advertising
• TripAdvisor will display clickable buttons that lead to a booking page for that hotel through the advertiser. These are cost-per-
click (CPC) advertisements. The advertiser will pay only if the user clicks on the link which will lead them to the advertiser’s page
away from TripAdvisor.

• TripAdvisor will get paid for each click regardless if it leads to a booking or not.
2. Transaction Revenue
• Transaction revenues are generated through direct bookings on the TripAdvisor pages / app. This type of revenue is more Founded 2000
valuable for TripAdvisor as it gives them a 12%-15% commission on the booking price which far exceeds click-based revenue.

• TripAdvisor (TRIP) has entered contracts with most of the leading global hotel chains for this purpose, such as Accor, Best
Web Total Visits 174.45M
Western, Hyatt, Marriott, Hilton, Wyndham and others. But also their competitors Expedia and Priceline (Booking.com)
have entered such agreements. Traffic by USA (55,88%)
Countries
3. Display-based advertising
• The pricing model is a cost-per-impression or more commonly called cost-per-mille (CPM). Search on
Traffic Sources desktop
4. Subscription-based advertising (76,55%)
• TripAdvisor will add as many hotels, restaurants, attractions, etc as possible to their databases. But the owner can only edit the
profile, make special offers, list preferred contact methods, mail address, phone numbers, etc when they subscribe. Traffic from Facebook
Social Media (61%)
Based on TripAdvisor annual report 2016, shows the composition of revenues :
a. Click-based advertising (CPC) & transaction revenues: $750m / $1.2b = 63%
b. Display-based advertising (CPM) & subscription: $282m / $1.2b = 23.7%
Website Tripadvisor.com
c. Other hotel revenues: $158m / $1.2b = 13.3%

Source : http://www.innovationtactics.com/business-models-tripadvisor-booking-
com-expedia/ (September 2017)
ONLINE TRAVEL AGENCIES :
BUSINESS MODELS
Agency business model : Booking.com (Priceline Group)
1. Revenue Model
• The agency model uses the same revenue model as the good old brick-and-mortar travel agency : commisions
• Booking.com has contracts with the hotels that it lists and will take a commission on each booking through its site between 10%-
30%. The commission depends on the size of the hotel and how well it wants to rank on the Bookings.com pages.
• This is a key difference between Booking.com and TripAdvisor. In Booking.com hotels pay for ranking higher with higher
commision

2. Customer Value Proposition

• Cheapest prices : Booking.com has contracts in place with the hotels that it lists. One of the clauses, called rate parity, is that the
hotels can’t offer the same (type of) room at a cheaper rate on the hotel’s web pages. And if they do so they have to match it on Founded 1996
Booking.com. Without such a rule, users could choose a hotel on Booking.com but then complete the booking on the hotel’s
pages.
• Amount of choice : Booking.com has now over 1 million places to stay in their database and a large amount of filtering options Web Total Visits 480.63M
that make it easier for the user to find what they are after.
• Useful and persuasive content : a vast amount of pictures and useful reviews created by other users. Russia (6.88%)
• Reduction of risk : the star rating and reviews generated by other users reduce the risk of being disappointed. Traffic by Germany
Countries (6.75%)
3. Technological Lead
• Every year Booking.com/Priceline spend upwards of $100m to further enhance their technology. Direct (33.96%)
• Booking.com is a sales website providing a great user experience and teasing emotional reactions combined with a deep Traffic Sources Search (32.69%)
infrastructure linking to the vast array of hotel distribution systems
Traffic from Facebook
Based on annual report August 2017, shows the composition of revenues : Social Media (66.1%)
a. Agency business model: $7.98 billion / $10.7 billion = 74%
b. Merchant business model: $2 billion / $10.7 billion = 19% Website Booking.com
c. Advertising & other revenues: 6.6%

Source : http://www.innovationtactics.com/business-models-tripadvisor-booking-
com-expedia/ (September 2017)
ONLINE TRAVEL AGENCIES :
BUSINESS MODELS
Merchant business model : Expedia.com

Revenue Model
• In this business model, the platform buys hotel rooms and then resells them to travellers. The merchant gets the rooms cheaper
by buying the rooms very early as well as in bulk. Often, the merchant bundles them with airfares, rental cars and/or other
things.

• Once in a dominant position, Expedia managed to include a return clause into many contracts that allowed them unsold rooms
to be returned to the hotel 24-hours prior the due date).

• Cash flow timings are different to the agency model. In the merchant model, the business has to fork out the cash upfront.
Nominally, they sit on the risk of not being able to sell all their inventory. However, with their increasing power Expedia have
managed to negotiate that they can hand back the room to the hotel 24 hours prior if they can not sell it.
Founded 1996

• The merchant model also allows individual hotel bookings. But the package deals are more attractive to those who don’t want to Web Total Visits 55.38M
research flights, accommodation and other things separately. On Expedia, you are more likely to buy an entire vacation rather
than individual pieces.
Traffic by USA (80.88%)
Countries
• Initially, the merchant business model was considered superior but over the years Booking.com owner Priceline demonstrated
faster growth. Direct (37.49%)
Traffic Sources Search (34.04%)

Based on annual report August 2017, shows the composition of revenues : Traffic from Youtube
a. Merchant business model: $4.2 billion / $6.7 billion = 63% Social Media (44.36%)
b. Agency business model: $1.9 billion / $6.7 billion = 28%
c. Advertising & other revenues: $0.57 billion / $6.7 billion = 8% Website Expedia.com

Source : http://www.innovationtactics.com/business-models-tripadvisor-booking-
com-expedia/ (September 2017)
Leading Online Travel Agencies
Feature as Leading Online Travel Agencies

Tours And
Business Category Flight Hotel Car Rental
Activities
Insurance

Leading online travel agency (OTA)

• Fully integrated booking flow for incremental
ancillaries
• Broad Product Range

Major full-service airline

Incremental ancillaries typically offered through
separate booking flow and white label solutions

Major hotel company

•Booking flow focused on hotel room sales
• Strong opportunity to expand incremental
ancillaries offering

Core Feature Current Feature Potential Feature

Source : The Ancillaries Challenge in Online Travel Booking

(Oliver Wyman, 2016)
LEADING ONLINE TRAVEL AGENCIES
Customer Benefits

Choice Service Convenience Security & Trust

OTAs provide a huge range of Travelers don’t have to wait for Research shows that more than 80% Trust is a critical factor in all

information for consumers at the regular business hours to speak with of Priceline’s mobile app customers transactions – especially on line.

early stages of travel planning, a service representative in their book within 24 hours of their Working with familiar international

letting them compare properties by mother tongue: Both Expedia and stay; close to 60% of Priceline app OTAs help customers from around

price, location, segment, and ratings. Agoda sites are translated into 39 users booked within 20 miles (32 the world be comfortable booking

For example, Agoda’s home page languages, while Booking.com can km) of the hotel, and 35% were as with local properties through a

currently offers 1.4 million be read in 43 languages. close as one mile (1.6 km) away. trusted, global intermediary.

properties Only Whether seeking a villa in Lombok

mobile can provide this level of or a hostel in Hanoi, consumers can
access and ease whenever consumers use a familiar, secure interface.
want it.

Source : Online Travel Agencies in Asia (Asian Trade Centre, 2017)

LEADING ONLINE TRAVEL AGENCIES
Policies need to be concerned

Consumer Protection
When consumers are certain of their travel plans, they benefit
from lower prices of non-refundable rates. Offering both types of
reservations gives consumers more choice, helps hotels manage
their inventory, and allows OTAs to earn more commissions by
selling more. Ironically, regulation that seeks to protect
consumers by eliminating non-refundable rates

Local Host Rentals

Around the world, communities and regulators are trying to
determine the right policies for local host rentals in areas that
range from taxation and consumer protection to health and
safety, housing affordability, and community impact.

E-commerce Taxation
Like many multinationals, OTAs pay corporate income taxes in
home countries but do not pay these taxes in countries where
they don’t have a taxable presence.
Source : Online Travel Agencies in Asia (Asian Trade Centre, 2017)
 Leading Online Travel Agencies
Customer Booking Journey
1. Dreaming
6. Remembering / Sharing
Inspire customers with trip intineary ideas
Suggest targeted next-trip ideas and trip-
related ancillaries based on social media posts Host comprehensive destination information,
and previous trips including wider trip data

5. In Trip 2. Searching
Offer broader trip-related ancillary options
Present in-destination activity/excursion
such as in-destination transport
purchase opportunities
Offer direct OTA price comparisons
Offer e-concierge service tailored to support
trip specific requirements

4. Pre Trip 3. Booking

Target push promotions for last minute Integrate trip-related ancillary products in core
ancillaries and cabin/room upgrades booking flow

Provide proactive disruption management such Offer proactive package price comparison (such
as automatic rebookings as “you saved $x vs flight plus/room plus

Source : The Ancillaries Challenge in Online Travel Booking (Oliver Wyman,

2016)
TRAVELOCITY JOURNEY FRAMEWORK
PLANNING TRIP
CONSIDERING
Critical Point :
• Trip style Grid
• Filter Menu
• World Map
Tools ini ditujukan untuk wisatawan yang ingin menentukan
tujuan trip mereka secara pribadi

BROWSING
Critical Point :
• Browse without commiting to time frame
• Compare trips
Membantu traveler untuk memberikan kontrol untuk
mengatur perjalanan mereka

CHOOSING
Critical Point
Step-by-step booking
Penyederhanaan informasi di website agar tidak terlalu
banyak informasi

Source : Journey Framework Travelocity

 TRAVELOCITY JOURNEY FRAMEWORK
DURING TRIP

Preparing
Critical Point :
• Flexible customization of trip details
• Syncs trip info to app

Memberikan sumber informasi yang konsisten mengenai trip yang meliputi

flight booking

On Vacation
Critical Point :
• Provides relevant information
• Helps organize activities

Membuat Travelocity dapat menyajikan informasi yang relevan kepada

traveler agar traveler dapat lebih nyaman dalam melakukan tripnya

Source : Journey Framework Travelocity

 TRAVELOCITY JOURNEY FRAMEWORK
POST TRIP

Post Vacation
Critical Point :
Store past trip info to website and app

Menyediakan fitur pada website dan app agar traveler dapat membagikan
pengalamannya agar traveler berikutnya memperoleh visualisasi mengenai trip yang
akan dijalani

Next Vacation
Critical Point :
Use past trip info to recommend trips relevant to interests

Membuatkan database untuk trip yang dilakukan tralever sebelumnya agar

dapat memudahkan tralever berikutnya dalam menjalani tripnya

Source : Journey Framework Travelocity

 GLOBAL
DISTRIBUTION
SYSTEM
Corp. Management Development
2018
 GLOBAL DISTRIBUTION SYSTEM
GDS’s Players & Market Share

The main data source and reservation point of

contact for online travel agencies are global
distribution systems (GDS). The GDS collects and
consolidates travel data from a wide spectrum of
service providers and allow agents to reserve
airplane seats, rent cars, book hotel rooms. This
way travel agencies don’t have to directly connect
with hundreds of airlines, hotels, and other end
providers. They also provide APIs to integrate the
reservation support into OTA booking engines to let
travelers book online.
GDS mostly focus on five types of reservations:
•Airplane seats
•Hotel rooms
•Car rentals
•Cruise lines and ferries
•Railways
As a travel agency or any other travel business, you
can use one of the GDS or more to achieve broader
coverage. However, if your business model doesn’t
revolve around the lowest fares, you may stick with
using only GDS, without bothering to engage
airlines directly. Amadeus, for example, claims to
cover 95 percent of the global scheduled air
seating.

Source : www.altersoft.com
 GLOBAL DISTRIBUTION
SYSTEM
Amadeus’s Business Lines

Distribution
Amadeus offers a full range of commercial
services and complementary technologies that
connect sellers, buyers, and partners across
global travel industry and beyond

Airline IT
Amadeus offers airlines integrated PSS,
standalone sofware, analytics and consulting
solutions

Diversification into new areas

Complementing our offer in the travel industry,
we diversifed our business, providing cutting-
edge technology to other key sectors in the
industry like airports, hospitality and railways,
as well as to transversal segments that are
relevant to all travel industry players: payment
systems, mobile solutions and travel intelligence.
Source : Amadeus Global Report 2016
 GLOBAL DISTRIBUTION SYSTEM
Amadeus’s Business Lines : Distribution

In the indirect distribution industry, there are four

main players in Amadeus’s Distribution business
1. Travellers
2. Travel providers : airlines, hotels, car rental
companies, railways, insurance providers,
cruises, ferries, etc
3. Travel intermediaries : online and retail travel
agencies, travel management companies,
metasearch companies, etc
4. Travel technology providers : IT companies
enabling interaction between the different
Source : Amadeus Global Report 2016 players
GLOBAL DISTRIBUTION SYSTEM
Amadeus’s Distribution Business Models
The business model for indirect distribution is straightforward: when a travel
intermediary shops/books travel content from a travel provider, that travel provider
pays Amadeus a transaction fee. Travel intermediaries purchase value-added
products, solutions and services from Amadeus, for which they pay IT fees. Amadeus
provides signifcant economies of scale for travel providers and travel sellers.

The value of distribution

1. Travel Providers
The indirect distribution business model extends the reach of travel providers not only to
the world’s largest network of travel agencies, but to partners and new intermediaries,
such as metasearch companies, in all distribution channels.

2. Travel Intermediaries
Travel intermediaries connecting to Amadeus are instantly linked to the world’s
largest and most comprehensive source of travel content, all aggregated in a consistent
format. This allows them to more efficiently fulfill the needs of their customer – the
traveller.

3. Travellers
Indirect distribution gives travellers the ability to compare offers from multiple
providers quickly and effectively. And it also offers them the freedom to shop and book
their travel how and where they choose, without the need to check multiple sites.

Source : Amadeus Global Report 2016

 GLOBAL DISTRIBUTION SYSTEM
Amadeus’s Business Lines : Airline IT

Amadeus Airline IT solutions and services enable airlines to provide the traveller with
a consistent, personalised customer experience throughout every stage of the
journey, from inspiration, search and booking, to pricing, ticketing, check-in and
boarding.

Amadeus’s PSS (Passengers Service Systems)

1. Amadeus Altea Suite

The Amadeus Altéa Suite offers full reservation, inventory and departure control
capabilities, delivering an integrated solution for full service and hybrid airline
carriers. Garuda Indonesia one of example company use this kind of PSS.

2. Navitaire’s New Skies

Navitaire’s New Skies PSS provides a complementary solution and customer
base to Amadeus. Navitaire’s integrated solutions include reservations,
distribution, travel commerce, loyalty, revenue management, revenue
accounting and data storage for business intelligence. Navitaire has close to 50
clients worldwide, including some of the fastest-growing, most successful and
most innovative airlines in the world, such as AirAsia, Ryanair, IndiGo, SpiceJet
and Vueling.

Source : Amadeus Global Report 2016

GLOBAL DISTRIBUTION SYSTEM
Amadeus’s Business Lines : Diversification into new areas

Amadeus Travel Payments Amadeus Mobile

Amadeus Mobile portfolio includes :
Amadeus help travel agencies pay airlines, hotels and other
1. Check My Trip
suppliers by providing them with a range of payment options
2. Amadeus’s Mobile White Label
based on virtual payment technology. By integrating these
3. Amadeus’s Mobile Web Services
payment options directly into the booking environment, we help
travel agencies reduce manual back-office work, eliminate risk
and enable new revenue streams.

Amadeus Travel Intelligence

Amadeus launched two travel intelligence solutions: Amadeus
Performance Insight and Amadeus Booking Analytics. The first
one allows airlines of all sizes to better understand their
performance using data to inform and improve their decision
making. Avianca Brasil, Air Vanuatu, ECAir and Kuwait Airways
are some of the clients that have contracted this solution.
Amadeus Booking Analytics offers airlines such as Hainan
Airlines, China’s largest private carrier, the possibility of
monitoring bookings – per route, per booking class and per
airline, among other criteria. This helps the airline for example to
identify new growth opportunities and fine-tune their
market strategy.

Source : Amadeus Global Report 2016

SMART TRAVEL
ASSISTANCE

Corp. Management Development

2018
PREDIKSI TREN TRAVELING 2018
Semua via Mobile!

Pertumbuhan pesat pengguna internet di Indonesia mulai terasa sejak 2015.

Menurut Gaery Undarsa, Chief Communication & Co-Founder Tiket.com, hal
tersebut dapat dilihat dari penggunaan perangkat oleh masyarakat Indonesia
saat merencanakan perjalanan hingga melakukan pemesanan.

" Pada 2015 itu masih banyak yang melakukan pemesanan melalui
komputer. Tapi di akhir 2015 sampai puncaknya 2016, itu udah mobile.
Pertumbuhan pengguna mobile yang melakukan pemesanan tumbuh
begitu drastis. Di 2018 semua pencarian dan pembelian pasti mobile.
Itu sudah pasti” (Gaery Undarsa, Chief Communication & Co-Founder
Tiket.com)

" Lebih mudahnya kalau mau cari destinasi favorit, lihat saja hashtag di
media sosial. Karena sekarang itu yang ramai jadi tujuan wisata karena
pengaruh internet, based on interest di media sosial,“(Gaery Undarsa,
Chief Communication & Co-Founder Tiket.com)

Source : https://travel.dream.co.id/news/prediksi-tren-traveling-di-2018-
semua-via-mobile-1711210.html
Smart Travel Assistant
TravList – TravList’s Features
TravList mobile app is a key marketing tool that can leverage to deploy modern customer engagement campaigns and increase customer retention.
Use it as a vehicle to deliver automatically useful information to travelers, be permanently in touch with them, while offering them the possibility to
manage their travel plans from one place, directly on their mobile phones.

Complete details about itinerary Special Offers

1. Flight details Serve travelers the right offer, at the right
2. Hotel details time and in the right place
3. Check-in & check-out times
4. Car rental details
5. Transfer services
Widgets for a valuable experience
Flight Alerts 1. Free alerts notifications (based on trip
1. Flight status details)
2. Departure & arrival notifications 2. Photos of the destination
3. Flight delay 3. Weather at the destination
4. Flight cancellation 4. Local time
5. Gate change 5. Maps
6. Luggage belt notification 6. Currency converter

Attractions at destination Multiple languages available

1. Things to do
TravList is available in the following languages:
2. Places to visit
English, Turkish, Arabic, Chinese, German,
3. Dining recommendations
French, Hungarian, Russian, Spanish, Hebrew.
4. Cafes & bars
5. Shopping places
Source : http://www.dcsplus.net/products/travlist-mobile-assistant/what-
is-travlist
Smart Travel Assistant
TravList App Display

Source : http://www.dcsplus.net/products/travlist-mobile-assistant/what-
is-travlist
Smart Travel Assistant
TravList App Display

Source : http://www.dcsplus.net/products/travlist-mobile-assistant/what-
is-travlist
Smart Travel Assistant
TravList App Display

Source : http://www.dcsplus.net/products/travlist-mobile-assistant/what-
is-travlist
 FUTURE ONLINE
TRAVEL AGENCIES

Corp. Management Development

2018
FUTURE ONLINE TRAVEL AGENCIES
Technology Transformation for Future Travel Agencies

Mega Online Travel Retailers

Metasearch companies and OTAs lived separate but
complementary lives, simultaneously working together
while also competing for the same customers. Having
made a choice, online shoppers are often oblivious to
which site they use to make a purchase, i.e. whether it
is a metasearch or an OTA site.

This convergence of the two models is giving rise to a

Mega Online Travel Retailer. OTAs are able to produce
more – and more accurate – information. They may buy
their marketing channels, giving them the opportunity
to build a brand, stand out from the crowd and earn
more from customers, while metasearch companies get
a closer relationship with the customer through OTAs.

Technology transformation required to become an

Online Travel Retailer :
1. Revenue Management Logic
2. Ad contect sourcing
3. Referral contect sourcing

Source : Online Travel 2020 (Amadeus)

FUTURE ONLINE TRAVEL AGENCIES
Technology Transformation for Future Travel Agencies
Digital Tour Operator
Tour Operators have to chart a new course to ensure
they stand out on all fronts: they need to be seen on
the street, inspire on their website, be flexible in their
offers, active in social media, sharp on ads, and mobile
right up to their customers’ pockets – and, most
importantly, they must remain relevant to their
customers through personalisation and flexibility. As a
result, they are looking to upgrade their technology and
ways of working.
At the same time, OTAs are adopting dynamic packaging
technology that allow them to create packages and are
therefore offering the same service to customers online
or are giving customers the ability
to create their own.
We see converging models between these two players
giving rise to new growth avenues in the area of
complex trip handling and servicing. They are becoming
Digital Tour Operators, providing a happy mix of digital
and human interaction, combined with convenience
and speed.
Mobile Travel Retailer
The Mobile Travel Retailer would be characterised by :
1. New ways of search and engagement: Mobile
brings together many technologies (voice
recognition, Bluetooth, sensors, fingerprints, etc.)
and leverages other innovations such as Internet of
Things and virtual reality. Together, these
technologies can lead to unprecedented
opportunities for search and inspiration
2. Chatbots: enabling full booking flow, servicing
and payment
3. End-to-end service: the app would go beyond just
servicing the traveller but would also be used by
someone not travelling for destination services,
user generated content and other innovative
services that will keep servicing and inspiring the
customer for their next trip
Mobile is defnitely a game changer for everyone.
However, mobile with advanced technology and social
media will push the boundaries still further and the
same may extend to the world of wearables
Source : Online Travel 2020 (Amadeus)
 FUTURE ONLINE TRAVEL AGENCIES
Technology Transformation for Future Travel Agencies

The Travel Marketplace

The Travel Marketplace would be characterised by :
1. Control of user profile, marketplace services and
partnerships, and possibly auctioning services

2. Innovation through the platform rather than the

supplier (for example Amazon Echo & Amazon
Assistant)

3. New payment options, like the WeChat model of

the payment platform, can be used to create the
Travel Marketplace. WeChatPay, can be used to
transfer money between WeChat users and make
payments online

In 2014, Alibaba created the e-commerce travel

platform, Alitrip, now known as Fliggy, a spin-off from
its travel booking website. Fliggy already has 100 million
users (excluding Alibaba’s group members) and many
suppliers make sales of more than $100 million a year
with Fliggy

Source : Online Travel 2020 (Amadeus)

THANK YOU

Corp. Management Development

2018