Download - China Online Agency Round Up
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Experience. Insight. Advantage. www.abacus.com.sg
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China Online Agency Round-upChina Travel Distribution Summit December 3rd, 2009
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Hi. I’m Brett Henry.
@BrettHenry
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You Already Have a Social Media
Strategy
Travel, Communication and
Marketing
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Who is Abacus?
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We bring to the industry an unrivalled
network :
About Abacus
Asia-Pacific’s leading travel & leisure facilitator with more than 15,000 agency locations in 24 markets
• More than1,200
employees region
wide
• 24 markets with
more than 100
sales and
marketing offices
with local support.
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Our partners include Sabre Holdings, a world leader intravel commerce, retailing travel products and providingdistribution and technology solutions for the travel industryand 11 of the world’s leading airlines serving Asia.
Our Partnership
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• Amadeus had YOY decrease of 2+M
• Galileo had YOY decrease of 4+ M
• Worldspan affected by decline of 5+ M
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*Source: MIDT,
YOY Air bkgs change by GDS
Abacus and Sabre #1 GDS with the top 4 OTA’s
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I am going to talk about online travel distribution in
China
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Everything I am about to say could be wrong
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1. China’s online travel market is experiencing substantial tailwinds
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Online travel market has grown through the Global Financial Crisis to $8B in 2009
6.9 8.2 10.5 13.0
54.2 50.1 51.152.3
2008 2009 2010 2011
Online Offline’08-’11 CAGR
-1%
24%
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2. Online travel agencies are capitalizing on weak
supplier direct capabilities and hotel market
fragmentation
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Online Agencies are and will continue to be the dominant force in the online market
4.4 5.5 6.78.3
2.52.7
3.7
4.7
2008 2009 2010 2011
OTA Supplier Direct ’08-’11 CAGR
23%
24%
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3. Significant efficiency gains are still available – and could
turbo charge OTA growth business advantages in the
medium term
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Marketing and acquisition are automated but operation still largely manual
Traveller
Website Call Center
Airline / Hotel
25% 75%
Phone & fax
Manual
Automated
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4. MetaSearch is working – managing the marketing and
acquisition without the operational complexities
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Something here about size of metasearch market
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Something here about size of metasearch market
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5. Ctrip is an investors dream
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For internal use only
Ctrip downturn performance...
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RevenueNet
Income
+47%
Marketshare
+80% ~60%
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For internal use only
…Valuation shows strong investor growth confidence
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+$7B +$5BMarket Cap
Revenues
(2008)
+$2.9B
+$217M
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6. Expedia is focusing… leading in travel UGC…
and positions in metaseach and full
service online
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Major travel brands unique visitors per month
2,00
0-
5,00
0<
2,0
005,
000
-10
,000
>1
0,00
0
Full Service Online Travel Agency
Hotel Only Website
Metasearch AirlineTravel Content Hotel Chain
CtripCtrip
QunarQunar
KuxunKuxun
OYESGOOYESGO
eLongeLong
MangocityMangocity
SunnyChinaSunnyChina
AoyouAoyou
MangocityMangocity
SunnyChinaSunnyChina
AoyouAoyou
Hotels.comHotels.com
5booking5booking
AgodaAgoda
5booking5booking
AgodaAgoda
daodao.comdaodao.com
YododoYododo
Mipang.comMipang.com
51766.com51766.com
Air ChinaAir China
China SouthChina South
China EastChina East
China SouthChina South
China EastChina East
7 Days Inn7 Days Inn
Home InnsHome Inns
Motel168Motel168
7 Days Inn7 Days Inn
Home InnsHome Inns
Motel168Motel168
TRANSACTION INTERMEDIARY SUPPLIER-DIRECT
MEDIA INTERMEDIARY
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For internal use only
Expedia downturn performance...
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RevenueNet
Income
$852M
Asia Hotel Growth
+80% 60+%
,酷讯 旅游搜索引擎
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What to expect in China
– Investment focus in China over the next 2 years ($50M USD)
– Media - DowDow + Kuxun target to be the largest user review site in China with 10 mil users
– Booking - “eLong is Expedia in China and will continue to be our only transactional play”, CEO
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7. Don’t try to be Ctrip
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Are hotel focused sites trying to emulate Ctrip?
Local hotel-focused sites have expanded their offering
Non-Hotel LOBs
Hotel-Focused Sites Flights Car Tickets
24-Hotel
12580.com
1rest.com
China-Hotel.com.cn
SinoHotel
www.17u.cn
Cmbtrip
366Hotel.com
Global hotel-only players are pushing into China
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8. Ctrip (or Qunar, or Dao Dao) is unstoppable
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Abacus on Social Media
Connect to us on Facebook!www.facebook.com/AbacusIntl
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Experience. Insight. Advantage. www.abacus.com.sg
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Thank You