online perceptions and realities 2009 - amadeus roadshow online - guillaume...online business:...

© 2

009

Am

adeu

s IT

Gro

up S

A

Online business: perceptions & realities

Guillaume Kozinski

E-Commerce Business Solutions Manager

Central, Eastern & Southern Europe

September 2009

© 2

009

Am

adeu

s IT

Gro

up S

A

Online portal trends

Online market dynamics

“Online” business perceptions


Solutions

© 2

009

Am

adeu

s IT

Gro

up S

A



© 2

009

Am

adeu

s IT

Gro

up S

A

Is it new?“Online” perceptions

2001

1997

1995

“Internet”1983

Internetting1972

© 2

009

Am

adeu

s IT

Gro

up S

A

…has changed a lot “Online” business

1996 2008

© 2

009

Am

adeu

s IT

Gro

up S

A

X15 = Central, Eastern & Southern Europe

X25 = Western Europe

Middle East & Africa

…is everywhere?“Online” business

© 2

009

Am

adeu

s IT

Gro

up S

A

…is not for traditional agencies?“Online” business

99% TA online portals in CESE

are traditional agencies with a mix of leisure and corporate business

© 2

009

Am

adeu

s IT

Gro

up S

A

…is only about web?“Online” business

For marketing?

For support?

For payment?

For delivery?

© 2

009

Am

adeu

s IT

Gro

up S

A

…is fast?“Online” business

Source: Babson & Jupiter Research 2009 for Akamai

© 2

009

Am

adeu

s IT

Gro

up S

A

…can attract a lot of customers?“Online”

© 2

009

Am

adeu

s IT

Gro

up S

A

…revenue from air only?“Online” business

% of gross sales% of gross sales

Total income

(MM €)

100% =

Gross sales

(MM €)

Air 69.8%

45.1%

24.6

14.2

5.816.2

22.6

1.8

Hotel

Insurance Other*

10.0%

47.1%

59.7%

13.1%

5.2%

• Air tickets’ margin is

only 5.2%, accounting

for 70% of sales but

only 45% of an OLTA ’s income

• Hotel accounts for

24.6% of total income

With an average

Margin of 59.7%.

• Insurance and other

products have significant impact in

overall profitability

© 2

009

Am

adeu

s IT

Gro

up S

A

Personnel

Other costs*

Marketing

Systems

InfrastructureCommunications

28.1%

62.2% 58.1%

43.5

9.0

13.8 11.15.8

2.2

0.3

1.13.7

18.28.7

7.3

2.6

3.8

4.22.0

4.6

9.7

LeisureOnline Business

100% = 1 1/4th1/6th

Is IT costly?“Online” business

© 2

009

Am

adeu

s IT

Gro

up S

A



business: perceptions & realities

© 2

009

Am

adeu

s IT

Gro

up S

A

Credit Card Online market dynamics

3D Secure system

Encryption over http

Insurance against fraud on Internet

Integration of Amadeus solutions with payment gateways

Credit card usage on internet still very limited

© 2

009

Am

adeu

s IT

Gro

up S

A

Credit Card Online market dynamics

© 2

009

Am

adeu

s IT

Gro

up S

A

CrisisOnline market dynamics

© 2

009

Am

adeu

s IT

Gro

up S

A

DevicesOnline market dynamics

500 M3000 M6000 M

© 2

009

Am

adeu

s IT

Gro

up S

A

Мobiles in CESEOnline market dynamics

© 2

009

Am

adeu

s IT

Gro

up S

A

Threats / Boosters?Online market dynamics

Google monopoly

Meta search companies (Kayak) boost web adoption

and concentrate the market

WE/US OLTA looking for expansion

© 2

009

Am

adeu

s IT

Gro

up S

A

threatened by WE/US OLTA?Online market

YOU

Matching local taste

Significant weight of domestic tourism

Existing customer base

Relationship with local hotels

Searching online – buying offline behavior

of customers

Tailor made payment conditions

International OLTAs

Global purchasing power

Diversification of risks

High brand awareness

Learning effect and market know how

Diversification of services

In th

e lo

ng te

rmIn

th

e lo

ng te

rm

© 2

009

Am

adeu

s IT

Gro

up S

A




business: perceptions & realities

© 2

009

Am

adeu

s IT

Gro

up S

A

UI Sophistication Online portal trends

Simplify navigation and results page

© 2

009

Am

adeu

s IT

Gro

up S

A

Simplify results pageOnline portal trends

© 2

009

Am

adeu

s IT

Gro

up S

A

UI SophisticationOnline portals


A booking engine is not a photo museum

(get the best of eye-tracking surveys!)

© 2

009

Am

adeu

s IT

Gro

up S

A

Heat mapping / eye-tracking surveyOnline trends

© 2

009

Am

adeu

s IT

Gro

up S

A

UI SophisticationOnline trends


A booking engine is not a photo museum (get the best of

eye-tracking surveys!)

Calendar displays (pamediakopes.gr)

© 2

009

Am

adeu

s IT

Gro

up S

A

Calendar displayOnline trends

© 2

009

Am

adeu

s IT

Gro

up S

A

UI SophisticationOnline trends


A booking engine is not a photo museum (get the best of

eye-tracking surveys!)

Calendar displays

Hotel search

© 2

009

Am

adeu

s IT

Gro

up S

A

Hotel searchOnline trends

© 2

009

Am

adeu

s IT

Gro

up S

A

More (hidden) logicOnline trends

Book today, confirm tomorrow (SNCF, Rumbo)

Multiple legs mixing Low Cost and Full Service carriers

Dynamic packaging replaced by “fuzzy” logic

© 2

009

Am

adeu

s IT

Gro

up S

A

“Fuzzy” logicOnline trends

© 2

009

Am

adeu

s IT

Gro

up S

A

More (hidden) logicOnline trends

Book today, confirm tomorrow

Multiple legs mixing Low Cost and Full Service carriers

Dynamic packaging replaced by “fuzzy” logic

Extreme search concepts

© 2

009

Am

adeu

s IT

Gro

up S

A

Geography driven

Extreme Calendar

Miles

or

Budget

driven

Extreme searchOnline trends

http://www.expedia.de/staedtereisen/inspirator.aspx?lnkcid=3635promo&lnkloc=pkg_3

http://ip.norwegian.no/ip/TravelTipExecAction.aspx?D_City=STN&DestinationGroup=12&Period=11&app_language=en-GB

http://www.kayak.com/buzz

http://promos.airnz.co.nz/howfar/

© 2

009

Am

adeu

s IT

Gro

up S

A

More contentOnline trends

Low cost carriers, Hotel aggregators, Tours, adapted to

seasonality

© 2

009

Am

adeu

s IT

Gro

up S

A

LCC in EuropeOnline trends

© 2

009

Am

adeu

s IT

Gro

up S

A

CESE- Seasoanl Adj. Gr.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Jan-

06

Mar

-06

May

-06

Jul-0

6

Sep-0

6

Nov

-06

Jan-

07

Mar

-07

May

-07

Jul-0

7

Sep-0

7

Nov

-07

Jan-

08

Mar

-08

May

-08

Content with seasonalityOnline trends

© 2

009

Am

adeu

s IT

Gro

up S

A



seasonality

Weather forecast, Airport services, City guides, Maps

© 2

009

Am

adeu

s IT

Gro

up S

A

City guidesOnline trends

© 2

009

Am

adeu

s IT

Gro

up S

A



seasonality

Weather forecast, Airport services, City guides

Be unique: promotional deals with airlines and single hotel

properties

© 2

009

Am

adeu

s IT

Gro

up S

A

Load your own dealsOnline тренды

© 2

009

Am

adeu

s IT

Gro

up S

A



seasonality

Weather forecast, Airport services, City guides

Load your own deals with airlines and single properties

User-generated content!

© 2

009

Am

adeu

s IT

Gro

up S

A

How many

user reviews

are on

Tripadvisor

per week?

User-generated contentOnline trends

15 millions

from 190

countries

© 2

009

Am

adeu

s IT

Gro

up S

A

Up-sell moreOnline trends

Insurance (Health, Trip cancellation)

© 2

009

Am

adeu

s IT

Gro

up S

A

Up-sell insuranceOnline trends

© 2

009

Am

adeu

s IT

Gro

up S

A


Do you suggest insurance ? (Health, Trip cancellation)

How much for a totally refundable or changeable ticket?

Can I pay in 10 times ?

© 2

009

Am

adeu

s IT

Gro

up S

A

Payment installmentsOnline trends

© 2

009

Am

adeu

s IT

Gro

up S

A

More up-sellOnline trends


Up-sell screen: Upgrading options for frequent customers

Pay in 10 times (LATAM)

Tell me when to book / Fare alert (Kayak, Farecast)

© 2

009

Am

adeu

s IT

Gro

up S

A

Fare alertOnline trends

© 2

009

Am

adeu

s IT

Gro

up S

A



Up-sell screen: Upgrading options for frequent customers

Pay in 10 times (LATAM)

Tell me when to book / Fare alert

Call-in if abandon at time of payment

© 2

009

Am

adeu

s IT

Gro

up S

A

m.applicationsOnline trends

© 2

009

Am

adeu

s IT

Gro

up S

A

Complex Solutions

Turnkey products

Amadeus

Support

&

Training

Amadeus

Elite Services

&

Consultancy

A strategy based on IT Partnership

© 2

009

Am

adeu

s IT

Gro

up S

A BUSINESS LOGIC LAYER

AIR

CONTENT

HOTEL CAR

TOURS RAIL FERRY

CRUISE

GROUNDLCCHOTEL

AGGr.

PROFILE UGCGUIDES WEATHER

INSUR

ANCE

ANY

OTHER

XML

SOPHISTICATION

= Internal IT skills

= Hosting capacity

= $

TIME

TO IMPLEMENT

IT Complexity

SYSTEM

CHANNELS LEISURE BUSINESS CONSOLIDATORS

APPLICATION LAYER

IT panoramaSolutions

TOOLS PORTALCALL CENTER

APPLICATION

QUALITY

ROBOTSOTHERS

© 2

009

Am

adeu

s IT

Gro

up S


AIR

CONTENT

HOTEL CAR

TOURS RAIL FERRY

CRUISE

GROUNDLCCHOTEL

AGGr.


INSUR

ANCE

ANY

OTHER

XML

SOPHISTICATION


= Hosting capacity

= $

TIME

TO IMPLEMENT

= DAYS

IT Complexity

SYSTEM


APPLICATION LAYER

Amadeus A.I.E.Solutions


APPLICATION

QUALITY

ROBOTSOTHERS

© 2

009

Am

adeu

s IT

Gro

up S


AIR

CONTENT

HOTEL CAR

TOURS RAIL FERRY

CRUISE

GROUNDLCCHOTEL

AGGr.


INSUR

ANCE

ANY

OTHER

XML

SOPHISTICATION


= Hosting capacity

= $

TIME

TO IMPLEMENT

= WEEKS

IT Complexity

SYSTEM


APPLICATION LAYER

Amadeus e-Power v4Solutions


APPLICATION

QUALITY

ROBOTSOTHERS

© 2

009

Am

adeu

s IT

Gro

up S


AIR

CONTENT

HOTEL CAR

TOURS RAIL FERRY

CRUISE

GROUNDLCCHOTEL

AGGr.


INSUR

ANCE

ANY

OTHER

XML

SOPHISTICATION


= Hosting capacity

= $

TIME

TO IMPLEMENT

= MONTHS

IT Complexity

SYSTEM


APPLICATION LAYER

Amadeus eRetail XMLSolutions


APPLICATION

QUALITY

ROBOTSOTHERS

Your application

© 2

009

Am

adeu

s IT

Gro

up S


AIR

CONTENT

HOTEL CAR

TOURS RAIL FERRY

CRUISE

GROUNDLCCHOTEL

AGGr.


INSUR

ANCE

ANY

OTHER

XML

SOPHISTICATION


= Hosting capacity

= $

TIME

TO IMPLEMENT

= MONTHS

IT Complexity

SYSTEM


APPLICATION LAYER

Web ServicesSolutions


APPLICATION

QUALITY

ROBOTSOTHERS

Your application

And your business logic

© 2

009

Am

adeu

s IT

Gro

up S

A

Catalogue of ServicesSolutions

Website creation and configuration

Website Graphics and Customization

Integration

Functional Design

Custom Development

Project Management

Elite Support

Additional Maintenance

Special Training and Educational services

Low Fare Search optimization

Business & IT Consulting

© 2

009

Am

adeu

s IT

Gro

up S

A

Example with Web Services

2-3 months 2-3 months 2-3 weeks 1-3 weeks

19-30 weeks

3 - 4 weeks 1 – 2 months 2-3 weeks 1-3 weeks

11 - 21 weeks >> up to 30% time saved!

Time

invested

Time saved

overall:

1 - 2 months

Time Saved

overall:

2 - 3 months

1 - 3 weeks

Without

With

Phase IV

Transition

Phase IV

Transition

Phase III

Acceptance

Phase III

Acceptance

Phase II

Construction

Phase II

Construction

Phase I

Concept &

Planning

Phase I

Concept &

Planning

Phase 0

Proposal

Phase 0

Proposal

© 2

009

Am

adeu

s IT

Gro

up S

A

We continue to investSolutions

Regional Centre with a department dedicated to Online

Amadeus e-Power, Amadeus Web services

© 2

009

Am

adeu

s IT

Gro

up S

A

Flexibility example :e-Power

Base

Multi-Leg

Service Fee

Manager

Seat Map

VPOS

Low Cost

Carriers

Corporate Ed.

Insurance

E-Ticket

Package

Promotions

Affiliation

module

Non IATA

mod.

New Hotel

Content

External

membership

© 2

009

Am

adeu

s IT

Gro

up S

A


Regional Centre with Online integration specialists


Our Core system: fare processing

© 2

009

Am

adeu

s IT

Gro

up S

A

3- Develop Innovation

2- Improve Findability

8 investments

Integration of ticketless carriers & rail providers

Ticketability checks and Validating carriers

OB fees

Multi-ticket solution

Multi-office ID search

Air Preference option (Preference for TAs)

PACMAN search algo enhancements

Star Pricer to migrate VP out of TPF („‟MP Expert‟‟*)

4 investments

Agent fare families MySearch option

Airline fare families MySearch option

New PreShopping solutions such asTravelTainment powered by Mega Pricer

Integration of the CO2 criteria in Amadeus shopping products

5 investments

O&D availability Server enhancements

Direct Access availability Server enhancements

Availability Calculator built with major airlines not on ALTEA Inventory

Echo cache as an alternative to calculator

Slice and Dice logic in all shopping solutions

Low Fare search: 3 axes of investments

* Not validated by

branding

1- Improve Accuracy

© 2

009

Am

adeu

s IT

Gro

up S

A


Regional Centre with Online integration specialists


Amadeus Core technology: fare processing

Getting ready for mobile phones

© 2

009

Am

adeu

s IT

Gro

up S

A

Sep

Launch

m.checkmytrip.com

2010

Launch

Checkmytrip Mobile

Companion

(being piloted in 2009 in

selected markets)

„Lite‟ HTML-site

A website for mobile browsing

Free access for travelers (like internet)

Mobile Java-app

Installable applet that supports off-line viewing of trip

i-Phone version in assessment

We invest in technology

© 2

009

Am

adeu

s IT

Gro

up S

A

Is it time to invest?

“Big will not beat small anymore.

It will be FAST beating slow”

Rupert Murdoch, May 30th 2008

business

online perceptions and realities 2009 - amadeus roadshow online - guillaume...online business:...

Documents