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Travel & Tourism Industry Business Drivers

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Page 1: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Travel & Tourism IndustryBusiness Drivers

Page 2: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Travel & Tourism Industry

Optimise CapacityUtilisation

ReduceCosts

Key Business DriversKey Business Drivers

Grow Market Share

Page 3: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Business Strategies

Extend GuestServices

Business Partnerships

Custom TailoredTravel Packages

Rent/leasingof excess Resources

Optimise CapacityUtilisation

Customer LoyaltyProgram

Page 4: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Optimise Capacity UtilisationExtend Guest Services

Strategy:Create New Guest Services

Offer a range of new leading edge products and services that are innovative and create additional revenue streams -inflight/inroom facilities

Differentiate products/services for the Business Traveler, Leisure Traveler ,Tourist or customised Personalisation

Objective:Increase revenue streams by offering new innovative guest services

Leisure services, Interactive entertainment, mobility services, video on demand & Internet access

Page 5: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Optimise Capacity UtilisationCustomer Loyalty Programs

Strategy:Customer Loyalty Programs

Frequent Flyer Hotel Frequent Guest Visa/Fly Buys Point Cards Frequent Rental Car Hire Restaurants Duty Free

Objective:Increase Sales to existing customer baseEncourage more frequent & longer Travel/Guest stays

Page 6: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Optimise Capacity UtilisationBusiness Partnerships

Strategy:Business Partnerships

Partner with companies which Offer complementary travel industry solutions, eg. Insurance companies, etc.

Objective:Grow your market share by developing strong business partnerships

Access to larger markets/larger customer base - Domestic/Global

Page 7: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Optimise Capacity UtilisationCustomer Tailored Travel Packages

Strategy:Custom Tailored Packaging

Personlisation/customisation Niche markets - skiing, diving, last minute Segment of the market (business, leisure, Tourist) Value Add

Objective:Increase sales

Entice customers to invest in personalised offerings and packaged offerings.

Page 8: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Optimise Capacity UtilisationRental/Leasing/Sale of Excess Resources

Strategy:Rent/Leasing of Excess Property/room Space

Online Auction of flights/rooms - Last minute specials Rent/Lease excess property/office space/carrier space

Objective:Increase revenues though alternate channels

Achieve maximum occupancy/capacity levels through other channels/offers

Page 9: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Business Strategies

Brand Extension/Positioning & TargetMarkets

Acquisitions &Strategic Alliances

Establish aPresence withTourism bodies

Grow MarketShare

Establish New distribution channels

Page 10: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Grow Market ShareBrand Extension/Positioning &Target Markets

Strategy:Extend Brand Extension/Positioning & Targeting Markets

Entering into new markets Focusing on Niche Markets Bundling/Packing offers for a targeted Traveler or segment

Objective:Increase Revenues through Brand Extension/Positioning & targeting Markets

Airlines are entering into Mobility & Wireless Comm. Personalisation for Loyal Customers Packaging all areas of tourism (car rental, hotel, travel)

Page 11: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Grow Market ShareAcquisitions & Strategic Alliances

Strategy:Acquisitions & Strategic Alliances

Acquire affiliate/competing Partners Form Strategic Alliances to leverage services/offerings Complementing services for packaging to increase $ point

Objective:Grow Market share by acquiring other companiesGrow Market share by forming Strategic Alliances

Page 12: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Grow Market ShareEstablish New Distribution Channels

Strategy:Establish New Distribution Channels

Agents, Wholesalers, Call Centre Internet Procurement Member of Portal Partners

Objective:Grow market share by expanding your exposure & revenue through new distributions channels

Page 13: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Grow Market ShareMembership of Tourism Bodies

Strategy:Establish a Presence with Tourism Bodies

Online Presence Marketing/Campaign Presence Industry endorcment/credibility

Objective:Grow market share by expanding your presence/access through alternate channels

Tourism Bodies Portals

Page 14: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Business Strategies

Join Buying Group,Promotional &Marketing scheme

Effective Staff Training

Consolidation ofBack office Processesand Outsourcing

Leading edge internal processes & technology

Reduce Costs

Internet Access &Reservations/bookings

Page 15: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Reduce CostsJoin Buying group, Promotional & Marketing Scheme

Strategy:Join Buying group, promotional & Marketing Scheme

E-Procurement Consortium for marketing & promotion. Aggregation of purchasing spend

Objective:Reduce purchasing costs, promotional & Marketing costs by belonging to larger buying group

Page 16: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Reduce CostsEffective Staff Training/Flexible Staff

Strategy:Effective Staff Training/Flexible Staff - rostering system

Objective:Reduce costs by retaining trained staff

Web based training Technology based training Match staff to service requirements

Page 17: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Reduce CostsConsolidate Back of House Processes

Strategy:Consolidation of Back of House Processes

integrating of processes Outsourcing of non core processes

Objective:Reduce costs by consolidating or outsourcing Finance, reservations , IT Help Desk, telecommunications infrastructure and Education.

Page 18: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Reduce CostsInternet Access & Reservations/bookings

Strategy:Internet Access & Reservations/Booking

Online Presence - Reservations/Bookings & Information Access global & domestic markets

Objective:Increase Revenues by providing internet Access & Reservation booking systems

Build a user friendly, easy to navigate web site which offers tourist information & online bookings & payments

Page 19: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Reduce CostsLeading Edge Technology & streamlined internal Processes

Strategy:Leading Edge Internal Processes & Technology

PMS - Property Management Systems CRS - Customer Reservation Systems GDS - Global Distribution Systems CRM -Customer Relationship Management

Objective:Reduce costs and improve service levels by implementing leading edge technology and automating internal processes

Page 20: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Travel & Tourism Industry

Industry Overview

Page 21: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Topics

Market Overview Industry Definitions Industry Issues Telco Positioning, Competitors & Partners Glossary of Terms

Value Chain Business Drivers & StrategiesMap to Telco CapabilitiesValue DemonstrationCase StudiesTelco Industry Strategy

Page 22: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Market Description

Hospitality, Travel & Tourism Sector defined as The vast, complex network of businesses engaged in the lodging, transportation,

feeding, and entertainment of the traveler from WTTC

The industry sells intangibles ‘Total Travel Experience’ through packaging products & services.

Key Market Segments: Hospitality - Hotels, accommodations, clubs, cafes & restaurants Travel - Air & land people transport, Travel agents & Airports Tourism - Domestic & International Tour operators and state & federal

Government Tourism Department

Page 23: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Market Overview

Market size A$ 60 Billion annual turnover Growing at 10%- 15% per annum (2001/02 projected .4% decline) 4.5% of GDP 13% of total export earnings 64% of total service export earnings

Employs almost 1 million Australians 690,000 directly & 290,000 indirectly 7.5 % of total employment in Australia

Domestic and International Travel Figures Approximately 4.7 million international visitors per year

International 22% Domestic Tourism 67% Domestic Business 11%

Page 24: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Market Overview

Diverse growth across the sector Air Transport International & Domestic, Hotel Accommodations, profitability will

decline by 4.2% 2001 - 2002Decline due to the following factors:

Impact of GST Increased Fuel Prices Slow down in the economy Oversupply of accommodations

- Hotels/serviced apartments. Exchange Rate movements leading to a decrease in overseas travel. Impact of recent Terrorist attacks

Page 25: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Market Overview

Growth reflecting sales volume increases but prices falling

Lower value of the Australian dollar to Euro and US

leading to an increase of inbound travelers and increasing travel within

Australia

Increase in inbound and Domestic Travel

“See Australia”

Competition

cheaper domestic airfares due to new entrants (Virgin Blue)

Focus on Niche Markets & Personalisation

Increase in major international events held in Australia

conference, sporting events, etc.

Page 26: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Market Overview

Key Success Factors Loyal Customer Base

loyalty programs Establish a clear market position & differentiation amongst competitors Efficient channel management & leveraging brand Business Expertise of Operator

having a skilled & flexible team - enhanced experience Products & packaging links with other related Transport,Travel & Tourism products Optimum capability & asset utilisation Effective business model

being part of a buying or franchise group, joint promotional & marketing schemes

Page 27: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Market Overview

Key Success Factors, cont. Well developed internal processes

reservation & booking systems, property management systems, on-line training, integrated systems

Pricing less complex, packaged and tailored for the market sector

New Distribution Channels outbound marketing & Internet

Page 28: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Market Trends

Expansion of Customer Loyalty Programs -

Enhanced Packages/offers

Online access to flight departures/arrivals & information

Services and products

Personalisation

convenience & choice

Expansion of Guest/Travel Services

Additional services/products through currency exchange dealers/travel agents

Enhanced range of services

Leading edge technology for guest services to provide point of differentiation

Page 29: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Market Trends

Online reservation/booking systems

For both the Airlines and hotels, booking reservations and access to

information systems on the Internet is of growing importance, eg

E-ticketing

• Caters to hotels and the Airlines

Portals & Interactive Web sites

• Membership of a broader tourism association site

• E-Procurement - indirect purchases

M-commerce

• Purchase of tickets & bookings through hand held devices

Page 30: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Market Trends

Streamlining of Business Processes

Integration of back Office processes in the industry with centralised data

processing and storage

payroll, reservations, IT help desk & finance

Outsourcing IT & Telecommunications Services

Requirement to provide hotels with Managed IT & telecommunications services

to reduce capital expenditure and provide for variable cost base.

Page 31: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

AIRLINES HOTELSTransport

% x Revenue

Labour Expenses 22.3 2541.6

Fuel 13.3 -- 5.0

Maintenance + Repair 15.9 -- 6.0 Passenger Services 9.3 --

-- Sales & Marketing 12 -- -- Operating LeasesOperating Leases 3.8 3.8 ---- 8.4 8.4 Sub Contractors -- -- 9.2 Depreciation & Amortisation 7.8 7.9 6.3 Other Expenses 6.0 47.9 16.8 Total ExpensesTotal Expenses 90.490.4 80.880.8 93.393.3 Earnings Before Interest & Tax EBIT Earnings Before Interest & Tax EBIT 9.6 9.6 19.219.2

6.76.7 INTERESTINTEREST 1.5 1.5 5.2 5.2 .5 .5 TAXTAX 3.0 3.0 5 5 2.5 2.5

NPATNPAT 5.1 5.1 9 9 3.7 3.7

Key FinancialsIndustry Income statement & Balance Sheet

Page 32: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Bass ACCOR HiltonAverage

% x Revenue

Labour Expenses 21 -- -- 25

Consumables 18 -- -- 18 Other Expenses 34.2 80.7 64.8 29.9 Depreciation & Amortisation 5.2 7.5 11.1 7.9 Total ExpensesTotal Expenses 78.478.4 88.288.2 75.975.9 80.880.8 Earnings Before Interest & Tax EBIT Earnings Before Interest & Tax EBIT 21.621.6 11.811.8 24.124.1

19.219.2

INTERESTINTEREST 3.8 3.8 1.7 1.7 10.210.2 5.2 5.2 TAXTAX 5.3 5.3 3.7 3.7 6.0 6.0 5 5

NPATNPAT 12.512.5 6.4 6.4 7.9 7.9 9 9

Key FinancialsIndustry Income statement & Balance Sheet - Hotels

Page 33: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Federal Express Toll TPG(TNT)Average

% x Revenue

Labour Expenses 41.6 -- 28.1 Sub Contractors 9.2 -- -- Rentals & Leasing Fees 8.4 -- -- Depreciation & Amortisation 6.3 1.5 11.1 2.9 Repairs & Maintenance 6.0 -- -- Fuel 5.0 -- -- Other 16.8 -- -- Total ExpensesTotal Expenses 93.393.3 96.296.2 90.790.7 93.493.4 Earnings Before Interest & Tax EBIT Earnings Before Interest & Tax EBIT 6.7 6.7 3.8 3.8 9.3 9.3

6.6 6.6

INTERESTINTEREST .5 .5 .3 .3 .7 .7 .5 .5 TAXTAX 2.5 2.5 .5 .5 2.6 2.6 1.9 1.9

NPATNPAT 3.7 3.7 3.0 3.0 5.4 5.4 4.2 4.2

Key FinancialsIndustry Income statement & Balance Sheet - Transport

Page 34: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Industry Issues

Grow & Retain Market Share

Acquisitions & consolidation in both the hotel & Travel industry

Clarity of Brand & targeted Market positioning

Reduce Costs

Integrating back office Processes

Online bookings & payments

Optimum capacity utilisation

matching aircraft with routes, hotel rooms, yields, etc.

Effective control systems to manage yields better and increase earnings

Automation of internal processes

reservation systems that integrate with other service providers, ground

handling, flights & maintenance

Page 35: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Industry Issues

Low value A$ dollar Increases inbound travel/tourism Decreases outbound travel/tourism Fuel Costs Capital Costs - Aircraft, etc.

Impact of GST On discretionary spending

Staffing Online Training Flexible staff Staff retention - incentives

Guest/Travel Services Offering leading edge technology in guest rooms

wireless lan, internet access, video on demand, interactive entertainment

Page 36: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Industry Issues

Globalisation

Need for globally competitive offerings

Weakening Economy

Global impact of the inbound/outbound Business travel

Exchange Rates

Mergers and Acquisitions

Competition:

New carriers entering the market offering cheaper airfares

Accommodations

serviced apartments/Hotels

oversupply and lower demand for accommodations relevant to 2000

Page 37: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Industry Issues

Seasonallity Demand Management of seasonal inbound/outbound travel Management of demand for the increase in large international events held in

AustraliaImpact of Technology

Video conferencing potentially contributing to a decline in Business Travel

Offering leading edge technology in guest rooms/on flights to create new revenue streams

Real time access to product & service availability both domestically and internationally

Safety Security Terrorism

Page 38: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Telco Positioning

The Hospitality, Travel & Tourism (H,T&T) segment generates approximately $271m in revenue to the Incumbents

Majors and SME Major customers make up approximately 70% of this revenue. Major customers, Qantas and SITA make up approximately 58% of this revenue.

Review Industry market share: Estimated total market(Inc SITA) $199 Million Telco Approx % market Share 38%

Page 39: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Telco Competition

Domestic Telecommunication Providers Optus/Singtel, TCNZ/AAPT, Vodafone, Orange

Global Telecommunication Providers MCI Worldcom, Global One, BT, AT&T, Equant, NTT

Minor Carriers and Service Providers Primus, RSL, WorldCom, Powertel, Global One, WorldxChange and AAPT(focused

on CBD)New Entrants into the Market

Energy companies, Railways & Airlines (Virgin Mobile)Niche Players

Skynet Global (wireless Lan), Intertouch (high speed accessInternet Providers & Internet Telephony

Page 40: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Target Partners

QantasMicrosFidelioAlcatelFoxtelPhonewareWebpointAtlasNokiaLayer 9 - Wap SolutionsMobileSoft - Equity funded by TelcoSITACiscoAlcatelNortel

Page 41: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Potential Direct Involvement in the IndustryVirgin/Telco Business Frequent Flyer Program

An alliance that could mean that Virgin offered frequent flyers with co-branded Telco services including Internet access with Qantas Frequent Flyer points being awarded for the usage of these services.

Telco.com business travel siteTelco could establish a travel site under

Telco.com in conjunction with Virgin.

Page 42: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Industry Associations & Players

Key Industry Associations & players Association (Who they are) What do they do? Key contacts Comindico involvement

National Tourism Alliance – previously Tourism Council of Australia (TCA)

Peak industry lobby body. Total of 30,000 associated members

TBA – MD Chris Brown TTF – Policy

I nbound Tourism Organisation of Australia (I TOA)

Peak body for I nbound Tour Operators. Total of 1000 members

Peter Shelley- MD Anna Taylor -Marketing

Tourism Task Force Major lobby body for the industry. 125 key players in the industry.

Chris Brown - CEO

Australian Hotel Association Lobby body for Hotels. Richard Mulcahy- MD

Hotel & Motel Accommodation Association

Alternative lobby group for Hotels. Denis Winchester - MD

Australian Federation of Travel Agents

Lobby group for travel agents Mike Hatton

Meetings I ndustry Association of Australia

Relationship to be enhanced J enny Lambert

E Horner & Associations Key Consultant to the Hospitality industry Ted Horner

Tourism Training Australia Relationship to be enhanced

Federal Minister Sport & Tourism

Federal offi ce of Sport & Tourism Hon. J ackie Kelly

See Australia Domestic Tourism I nitiative - $8m by Fed Govt, $8m state tourism & $6 privately funded

Graham Perry- MD

Australian Tourist Commission

Federally f unded organisation whose charter is to sell Australia internationally

J ohn Morse- MD

Page 43: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Main Industry Research Bodies

Main Industry Research Bodies

Organisation Web site

Tourism Forecasting Council www.isr.gov.au/ sport_tourism/ index.html

CRC f or Sustainable Tourism

Bureau of Tourism Research www.btr.gov.au

ABS www.abs.gov.au

Tourism Task Force – will do research on our behalf

Contact: Karl Flowers

Telephone: (02) 9368 – 1500

I bis www.ibisworld.com

Comindico Market Knowledge Management Group

intranet website on its way

Page 44: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Mobility Wireless Lan, WAP, GPRS, Prepaid Mobility Packages

Efficient Customer & Supplier Management ASP models (Front & Back of House)eg. Micros Fidelio

Call Centre Solutions IVR, CTI, Voice and Internet

Ecommerce & Ebusiness Solutions Internet information access, Internet bookings & payments

Bill Pay Broadband, ISP Access, Data Storage, Web Hosting, EFTPOS Network, Electronic

catalogue

Industry Applications

Page 45: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Managed Solutions/Services managed PABX/Voice, total Infrastructure outsource Competitive Edge/Loyalty

Smartcards, access cards for travel & hotels, Guest Services in room internet and entertainment

Integrated Branch Networks IP VPN QOS, Soft Contact Centre Solutions

Video Conferencing/Teleconferencing

Industry Applications

Page 46: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Glossary of Terms

CRS - Customer reservation systemPMS - Property management systemTTF - Tourism Task ForceFOH - Front of HouseBOH - Back of HouseGDS - Global Distribution SystemTA - Travel AgentSTP - Satellite Ticket PrintersCRM - Customer Relationship ManagementHRN - Hotel Reservation NetworkRev PAR - Revenue Per Available Room

Page 47: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Business Strategies

Optimise Capacity UtilisationExtend Guest Services

Customer Loyalty Program

Business Partnerships

Custom Tailored Travel Packages

Rent/Leasing/Sale of excess Resources

Page 48: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

MobilitySolutions

Packaging

Call Centre

Interactive TV

Data Storage

Optimise Capacity Utilisation Map Telco Capabilities

Extend GuestServices

SmartcardsPre-Paid CardsWAP

Wireless Lan/Bluetooth

Broadband Payment Options

Content/E-mail

Video/MusicOn Demand

Video Conferencing

Page 49: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Strategic Alliances

Packaged Mobility Solutions

Call Centre

ISP - content

Data Storage

Optimise Capacity Utilisation Map Telco Capabilities

Loyalty Program

SmartcardsPre-Paid CardsWAP

Web Hosting(retrieval/reservations)

BillpayCRM

ASP

KioskPackaging

Call Centre

Page 50: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Domestic & GlobalNetwork Access

Electronic Catalogue Hosting

Optimise Capacity Utilisation Map Telco Capabilities

Business Partnerships

PackagedSolutions

Web Hosting

Bill Payment

DataStorage

BroadbandPOS/ADSL

Page 51: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Web Hosting

Optimise Capacity Utilisation Map Telco Capabilities

Packaging

SmartcardsPre-Paid Cards

WAP Applications

E-catalogue

IP NetworkOnline Payment

ASP/CRM/Forecasting Data Storage

Page 52: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Broadband/Video Conferencing

Bill Payment

Optimise Capacity Utilisation Map Telco and Partner Capabilities

ExcessSurplus Resources

Web HostingWAP

Data Storage

SMS

Internet Travel

Virtual Contact Centres

IP Network

Page 53: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Business Strategies

Grow Market ShareBrand Extension/Positioning & Target Markets

Acquisitions & Strategic Alliances

Establish New Distribution Channels

Membership of Tourism Bodies

Page 54: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Interactive TV

Internet Travel

Grow Market ShareMap Telco Capabilities

Leverage Brand

SmartcardsPre-Paid CardsWAP

Wholesaler/Reseller

Packaging Bill Pay

Colocation

Page 55: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

PrivateNetwork

Service Bundling

Call Centre

ManagedServices

Packaging

Grow Market Share Map Telco Capabilities

Alliances

SmartcardsGlobal POP’s

Web Hosting

ScalableInfrastructure

Page 56: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

IP VPN’s

Packaged Solutions

Call Centre

ISP Services

Data Storage

Grow Market Share Map Telco Capabilities

Distribution Channels

SmartcardsPre-Paid CardsWAP/SMS

Web Hosting

Internet Travel

Broadband

Contact Centre Solutions

Contact Centres

Interactive TV

Electronic Cataloguing

Page 57: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Web Hosting

Catalogue Hosting

Call Centre

IVR/ContactCentre

Grow Market Share Map Telco Capabilities

Member of TourismBody

Click to Call

Network Access -TPIPS,ADSL, Argent

Billpay

Broadband

Page 58: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Business Strategies

Reduce CostsJoin Buying Group, Promotional & Marketing

Scheme

Effective Staff Training/Flexible Staff

Consolidation of Back of House Processes

Internet Access & Reservation/bookings

Leading Edge Internal Processes & Technology

Page 59: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Web Hosting/Colocation Managed

Services

Call Centre

Internet Travel

BillPay

Reduce CostsMap Telco Capabilities

Aggregated Buying/Promotion/Marketing

Smartcards

POS/ADSLWAPMessaging

Outbound MarketingContact Centre

BroadbandVideo streaming

SMS

FranchisePlan

Data Storage

IP VPN’s

IVR

Page 60: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Web Hosting

Voice over IP

Call Centre

ASP

Reduce Costs Map Telco Capabilities

Staff Training &Rostering

ADSL/Argent

E-LearningWAP

Wideband IP

Video Conferencing

IP VPN

Page 61: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Web Hosting

Bundled/Packaged Services

Call Centre

Data Storage

Reduce Costs Map Telco Capabilities

IntegratedProcesses

IP VPNCo-LocationASP

Contact Centre

Managed Services

Page 62: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Web Hosting

Packaging

Call Centre

Bill Pay

Reduce Costs Map Telco Capabilities

Online Communications

ADSL/ArgentEFTPOS

ContentWAP/SMS

ASP FirewallsVirus detection

Wideband Catalogue Hosting

IP VPNManaged Services/Desk Top Support

Kiosks

Page 63: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Web Hosting

Call Centre

IP VPN’s

Data Storage

Reduce Costs Map Telco Capabilities

Leading Edge TechnologyAutomating Processes

SMS(flight info)

ADSL/POS

WAP- Reservations & Info

Broadband Bill Pay

Contact Centre (IVR)

VPN’s

ASP

Wireless Lan

Smartcards

Page 64: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Travel & Tourism Industry(Value Chain)

Page 65: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Travel & Transport Value ChainMap our Capabilities

Benchmark

InfrastructureandResources

MarketingMaterial andCollateral

Sales Process

Deliver theExperience

Monitor &Survey CustomerFeedback

StrategyFormulation

Competitive AdvantageCompetitive Advantage

Leading Edge/Develop New BusinessLeading Edge/Develop New Business

BasicBasic

Page 66: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Corporate Voice and Data NetworksCorporate Voice and Data NetworksCorporate Voice and Data NetworksCorporate Voice and Data Networks

Map Telco CapabilitiesBasic

Contact Centre 13/1800Contact Centre 13/1800IVR/CTIIVR/CTI

Contact Centre 13/1800Contact Centre 13/1800IVR/CTIIVR/CTI

InternetInternetInternetInternet E-mailE-mailE-mailE-mailMobilesMobilesMobilesMobiles

Infrastructureand

Resources

Deliver theExperience

Monitor &Survey Customer

FeedbackBenchmark

Strategy Formulation

MarketingMaterial andCollateral

Sales Process

Page 67: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Map Telco CapabilitiesCompetitive Advantage

Benchmark

InfrastructureandResources

MarketingMaterial andCollateral

Sales Process

Deliver theExperience

Monitor &Survey CustomerFeedback

Strategy Formulation

E-communitiesE-communitiesE-communitiesE-communities

Global ConnectivityGlobal ConnectivityGlobal ConnectivityGlobal Connectivity Wireless LanWireless LanWireless LanWireless Lan

ASPs - Video on Demand, PMSASPs - Video on Demand, PMSASPs - Video on Demand, PMSASPs - Video on Demand, PMS

IP VPN SolutionsIP VPN SolutionsIP VPN SolutionsIP VPN Solutions Loyalty ProgramLoyalty ProgramLoyalty ProgramLoyalty Program

KiosksKiosksKiosksKiosks Pre-paidPre-paidCardsCards

Pre-paidPre-paidCardsCards

StaffStaffRosteringRostering

StaffStaffRosteringRostering

Direct Direct Marketing-Marketing-Call CentresCall Centres

Direct Direct Marketing-Marketing-Call CentresCall Centres

CRMCRMPersonalisPersonalis

ationation

CRMCRMPersonalisPersonalis

ationation

Page 68: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Map Telco CapabilitiesLeading Edge, Develop New Business

Benchmark

InfrastructureandResources

MarketingMaterial andCollateral

Sales Process

Deliver theExperience

Monitor &Survey CustomerFeedback

StrategyFormulation

GPRSGPRSGPRSGPRS

WAP ApplicationsWAP ApplicationsWAP ApplicationsWAP Applications

Managed Solutions & OutsourcingManaged Solutions & OutsourcingManaged Solutions & OutsourcingManaged Solutions & Outsourcing

E-Learning , M-Commerce , Interactive web sites, CPFRE-Learning , M-Commerce , Interactive web sites, CPFRE-Learning , M-Commerce , Interactive web sites, CPFRE-Learning , M-Commerce , Interactive web sites, CPFR

Direct Direct Marketing-Marketing-Call CentresCall Centres

Direct Direct Marketing-Marketing-Call CentresCall Centres

CRMCRM(ASP?)(ASP?)CRMCRM

(ASP?)(ASP?)

Video on Demand/BroadbandVideo on Demand/Broadband

Page 69: Travel & Tourism Industry Business Drivers. Travel & Tourism Industry Optimise Capacity Utilisation Reduce Costs Key Business Drivers Grow Market Share

Value Chain

Benchmark

InfrastructureandResources

MarketingMaterial andCollateral

Sales Process

Deliver theExperience

Monitor &Survey CustomerFeedback

Strategy Formulation

IOSIOSIOSIOS

PCPC RegisterRegister

PCPC RegisterRegister

E-mailE-mailE-mailE-mail EFTPOSEFTPOSEFTPOSEFTPOS

Intranet / HostingIntranet / HostingIntranet / HostingIntranet / Hosting

E-communitiesE-communitiesE-communitiesE-communities

Global ConnectivityGlobal ConnectivityGlobal ConnectivityGlobal Connectivity Wireless LanWireless LanWireless LanWireless Lan

ASPs - Video on demand, PMSASPs - Video on demand, PMSASPs - Video on demand, PMSASPs - Video on demand, PMS

IP SolutionsIP SolutionsIP SolutionsIP Solutions Loyalty ProgramLoyalty ProgramLoyalty ProgramLoyalty Program

KiosksKiosksKiosksKiosks Pre-paidPre-paidCardsCards

Pre-paidPre-paidCardsCards

StaffStaffRosteringRostering

StaffStaffRosteringRostering

DirectDirect MarketingMarketing

DirectDirect MarketingMarketing

CRMCRMPersonalisatPersonalisat

ionion

CRMCRMPersonalisatPersonalisat

ionion

GPRSGPRSGPRSGPRS

WAP ApplicationsWAP ApplicationsWAP ApplicationsWAP Applications

Managed Solutions & OutsourcingManaged Solutions & OutsourcingManaged Solutions & OutsourcingManaged Solutions & Outsourcing

Collaborative Planning Forecasting & Replenishment (CPFR)Collaborative Planning Forecasting & Replenishment (CPFR) Collaborative Planning Forecasting & Replenishment (CPFR)Collaborative Planning Forecasting & Replenishment (CPFR)

Direct Direct MarketingMarketing

Direct Direct MarketingMarketing CRMCRM

(ASP?)(ASP?)CRMCRM

(ASP?)(ASP?)

BasicBasic

CompetitiveCompetitiveAdvantageAdvantage

Leading Edge,Leading Edge,New BusinessNew Business

Internet Mobiles E-mailInternet Mobiles E-mailContact Centre 13/1800Contact Centre 13/1800

IVR/CTIIVR/CTICorporate Voice and Data NetworksCorporate Voice and Data Networks

Video on Demand/BroadbandVideo on Demand/Broadband