can you double your money by becoming a travel retailer?

Can you double your moneyby becoming a travel

retailer?

Webinar6 February 2014

Your hosts

Kevin MayEditor & moderator

Gene QuinnCEO & producer

Your panelists

Tristan GadsbyCEOAlliants

Cathy HornbyManager, Digital RetailCathay Pacific Airways

Mark LenahanVP, Product StrategyOpenJaw Technolgies

Can you double your money

by becoming a travel retailer?

Tristan Gadsby

CEO, Alliants

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Travel companies are not seen as leaders

0/100

2/50

3/50

top brands

most innovative companies

most admired companies

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Retailers and consumer products dominate…

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Retailers think differently…

30.4% Share of the Groceries

Wallet+

Frequency of Visit

Not just transactions and average transaction value

COMPETITORS

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What can we learn from leading retailers?

All experts in…

Distribution

Engagement

Conversion

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Value

Increase Volume

Increase Reach

Increase Visit Frequency and Engagement

Improve Conversion Ratios

Increase Average Value

Increase Average Transaction (Up-Sell, Cross-Sell Package)

Optimise Margin

The big value-levers for all travel companies…

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Increase Conversion: Barriers in checkout

A Fast Track 100 Ecommerce site

removed a modal window. Page dropout

reduced by 30%source: Alliant’s UX work

Don’t interrupt the user!

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Increase Conversion: Compulsory registration

ASOS redesigned to remove the references

to registration.Page dropout reduced by

50%source: Econsultancy ASOS checkout post

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Increase Conversion: Fraud & Security

Re-enforcing security credentials can decrease dropout on payment pages

And… be wary of enthusiastic security policies

Removing CAPTCHA had a

10% uplift in

conversion.(Sampa.com)

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Share products

Compare products

Engage in available product

Use site search

0 1 2 3 4

Conversion Multiplier

Increase Engagement Up to 10%

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Up-sell and Cross Sell

Upsell – give shoppers alternatives. Optimise on the price.

Cross-sell – once someone commits a purchase, offer additional appropriate items. Optimise the inventory.

Up to 10%

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Personalisation of offers and Search Result Ordering

can deliver up to 15%....

Personalization Up to 15%

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…But understanding the price sensitivity and

margins of what you are selling can deliver another 5-10% to the bottom line

Optimise Margin Up to 10%

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Increase Reach

12 foldMobile traffic in

2012, than the entire internet in 2000

4/5Smartphone

owners use their mobiles to shop

2013The year when mobile internet

connected devices outnumbered

humans

In 2014, you cannot ignore mobileSources: Cisco, comScore

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Effectively Delivering Mobile Up to 15%

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Improvement Potential0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Remove Con-version Barriers

IncreasedReach

Upsell and Cross-Sell

IncreasedEn-gagement

Personalisation

OptimiseMargin

The Multiplier Effect of Retailing

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What next?1. Deep use of social tools like

OpenGraph(e.g. Fab.com)

2. Data science (e.g. pricing analytics)

3. ‘Useful’ mobile apps – it’s not good enough to replicate a website.

Retailing for the travel industry

Mark Lenahan

VP, Product Strategy

OpenJaw Technologies

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What Is “Thinking Like A Retailer”?

• Retailer: “I have customers – how many of their needs can I fulfill?”

• Supplier: “I have product – how do I sell as much of my product as possible?”

?? ? ?

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1. Travel Agents are the retailers

2. Structured around operations and locations

3. Operational complexity

4. Legacy technology

5. Business silos

6. Product complexity…

Why don’t Airlines think like Retailers?

Airline

FFP

Holidays

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• Starbucks has 87,000 different drink combinations?WSJ & NWT adverts 2008, Times Magazine 2006

Travel Product Complexity

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• How many possible holidays can I book?(Drastically oversimplified!)

Travel Product Complexity

• 100 destinations• 30 departure dates• ~20 durations• 10 flights out• 10 flights back• 3 cabin classes• 100 car rental offers• 200 hotels• Room type / meal plan• Activities, Insurance...

1003,00060,000600,0006m18m 1,800m3.6 x1011

t-Retailing Introduction

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The 4 Principles of t-Retailing

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Inspire! with t-Retailing

• Creation of own content, curation of third party and user-generated

• Browsable products, locations and promotions

• Consumer engagement, discovery and social sharing

• Visually compelling and dynamic display of products with prices, offers and calendars

• Support traffic acquisition/SEO/SEM for search and meta-search

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Personalise! with t-Retailing

• Identify and recognise individual customers to personalise offers and user experience

• Deliver ‘compelling’ cross-sell – the right product to the right person at the right time

• Own the customer engagement for life of the customer, not just one journey – focus on customer share, drive loyalty

• Retain and index all customer interactions – reward loyalty – mine data for customer knowledge

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Differentiate! with t-Retailing

• Get closer to supply – own and partners – leverage unique inventory, products and rates

• Control business model and algorithms on the fly – realtime business response to the market

• Leverage packaging and redemption as channels for distressed inventory, negotiated/net/private fares and rates

• With a small number of direct contracts, key destinations, offer unbeatable value

• Reward loyal customers

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Convert! with t-Retailing

• Bring proven online retailing & merchandising strategies to travel

• In-path and post-booking cross-sell Up-sell flight and ground ancillaries through travel journey

• Shopping cart & Dynamic Packaging - ‘Combine & Save’

• Integrate with loyalty partners for accrual and redemption

• Unified online and offline channels; contact centre for serving and sales

• Payment models matter e.g. online, offline, loyalty points, deposit, cash, high street

t-Retailing Principle 1: Inspire

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• Products & Pricing• SEO & Social• Google Forms• Only possible recently

Inspire - Promotions

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Inspire - Promotions

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• Do you have landing pages for Destinations / Hotels / Activities/Packages/Promotions/Themes?

• Can they be browsed by consumer & indexed by search? (SEO/SEM) – without search forms!

• Can they be liked, shared, +1’d, tweeted?Can you get a network effect?

• Do they contain current price information, availability and images?

• Do links land on something useful? i.e. departure dates with actual prices/bookable?

Inspire - Promotions

t-Retailing Principle 2: Personalise

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Recommendations in Travel

Past BehaviourSuper PNR, +(views, likes, saves)

Profile/CRM DataStated preferences, inferred/collated data, identity, location, social/mobile

Current BehaviourSession / Shopping Cart

Product DataHotels, Locations, ActivitiesFormal meta-data + soft tags

Collaborative DataProducts + Behaviour (Signals)(Many Customers)

External DataLocal data, UGC, social media,alerts/disruption/news(Per Product, Location)

External DataShares, Likes, Comments, Tweets, Graph

Recommendation & Personalisation

Rules

CustomerData

ProductData

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Personalisation Examples

Altered Image Elements& Styles

Featured Promotions & Banners

Targeted Pricing & Special Offers

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Personalisation Examples

Non-PersonalisedProduct A $105Product B $108Product C $134Product D $141Product E $182Product F $245…

Product C $134Product E $181Product A $105Product B $108Product H $255Product E $182…

Personalised

Merchandising: Arrange products in an order more likely to sell. Anywhere you list products, especially search results…

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Customer Service / Support

• It isn’t just your systems!• The people who deal with your

customers:-• Check-in• Room service• On board• Contact centre• Social• High street• Airport• Hotel• Depot• Station

t-Retailing Principle 3: Differentiate

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1. Using One Aggregator• 50,000 – 150,000• Build breadth quickly• Intelligence built in

2. Using 2 or More Aggregators• 200,000+• De-duplication• Relative priorities

3. Aggregators and Contracting• Focus on top destinations• Add unique content (boutique, halo)• Very difficult to replicate

Differentiate – Content & Supply Model

t-Retail Platform

Content

1 Aggregtator

LinkLink

Aggregators

Contracts

t-Retailing Principle 4: Convert

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• In Line Cross-Sell

Conversion

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• Up-Sell

Conversion

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• Dynamic Packaging/Combine & Save

Conversion

t-Retailing in Practise

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Internet Booking Engine

UX

CMS

Mobile

IBE

API xDistributor

Rules:Business

TablesProcess

Ope

nTra

vel X

ML

Supp

lier C

onne

ctor

s Air PSS/GDS

Hotel

Car

Event

Other

AdminConsole

Contact CentreProduct Managers

Rule Managers

AgentDesktop InventoryContent

Super PNR

LoyaltyProfile

Location

OpenJaw t-Retail Platform

Internet Booking Engine

UX

CMS

Mobile

Trib

e AP

I

Rules:Business

TablesProcess

Ope

nTra

vel X

ML

Supp

lier C

onne

ctor

s Air PSS/GDS

Hotel

Car

Event

Other

AdminConsole

Contact Centre Mgr.Business Rules

Pricing & Product Management

AgentDesktop

EventManager

HotelManager

Super PNR

LoyaltyManager

ProfileManager

Location Manager

xDistributor

Q & A

Thank you!

Send your questions and comments to kevin@tnooz.com

Replay and presentation of webinar will be available on www.tnooz.com