eCommerce in TravelIntroduction

2016Hossam Shaker

Detentions

What is the “web” ? What is the eBusiness ? What is the meaning of eCommerce ? Why eCommerce is so important ? What are the types of ecommerce ? How it works ? How we benefit from this so called “electronic revolution”

What is the web?

World Wide Web (“hyper text transfer protocol “ Markup Language running on the internet)

1971 – 2005 “web 1.0” HTML pages (traditional media, 1 to many communication and catalog )

1998 creation of Google (and the entrance of WWW)

2006 “web 2.0” Social "you are the web” interaction many 2 many, Feb 2005 YouTube, Mar 2006 Twitter, Sep 2006 FaceBook

2016 - ….. “web 3.0” big data

What is the eBusiness ?

Is doing business using electronic transactions and interactions, which includes all sectors of the business related to costumer, as well as internal process such as production, inventory, risk management, product development, finance, knowledge management and human resources

What is the meaning of eCommerce ?

Ecommerce is a part of the ebusiness which covers the facing processes that touch customers, suppliers and external partners, which includes sales, marketing, order taking, delivery, customer service, etc...

Why eCommerce is so important ?

More than 90% of Europeans use Google 74% of internet users googlize a brand or company before

buying 91% of people keep their mobiles about arm reach 24/7. SM channels influence

Why eCommerce is so important ?

Why eCommerce is so important ?

Why eCommerce is so important ?

Why eCommerce is so important ?

Online travel market in the Middle East is catching upSupported by the introduction of online payment options, the online travel market in the Middle East is expected to grow considerably compared to 2016.

Tour operators shift focus to E-CommerceNo need to mention that multinational big players are rapidly shifting to ecommerce i.e. TUI, Thomas Cook, Travelocity, Kayak, Odigeo, BookinTurkey, Ctrip, Yatra and Webjet.

What are the types of ecommerce ?

Companies using internal networks to offer their employees products and services online--not necessarily online on the Web--are engaging in B2E (Business-to-Employee) ecommerce.

G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to-Government), G2C (Government-to-Citizen), C2G (Citizen-to-Government) are other forms of ecommerce that involve transactions with the government--from procurement to filing taxes to business registrations to renewing licenses.

Business 2 Business (B2B)

Business to Business is the most preferred type throughout the market. It has covered 80% of eCommerce business. It can be simply defined as eCommerce between companies or wholesalers. i.e. Hotelbeds.com, Sabre.com GTA and DOTW

Business 2 Business (B2B)

Business-to-Consumer (B2C)

Business to consumer, It can be defined as commerce between companies and consumers, involves customers gathering information; purchasing products or services over an electronic network, i.e booking.com, experdia.com

Business 2 Consumer (B2C)

Consumer 2 Business(C2B)

A consumer posts his product or service online and companies review the consumer's goods or services and take the decision to buy it . i.e. Freelancer.com, peopleperhours.com

Consumer 2 Business(C2B)

Consumer 2 Consumer (C2C)

There are sites offering free classifieds, auctions, and forums where individuals can buy and sell between each others. i.e. OLX.com, ebay.com etc...

Consumer 2 Consumer (C2C)

How it works?

How it works?

How it works?

How it works?

How it works?

What happen after we proceed to payment?

How we establish eCommerce ?

What are the advantage and disadvantage ?

Adv: No effort needed. Client does not need to move or to make any effort more than clicks to get his product or service.

Disadv: The Online payment. security of online payment is the biggest monster of ecommerce, huge number of clients do not trust online payment, so they do not make any ecommerce transactions, however these numbers are daily decreased thanks to the trust building by developers, banks and third part applications

What are the advantage and disadvantage ?

Adv: You will reach much bigger clients. With a retail website, you can reach customers down the street, around the country, and overseas.

Disadv: So is your competition. Again, when you are trying to reach more clients in any area of the globe you also competing with the existing providers of these areas, so as much as you increase your clients you increase your competitors, which have a lot more money to spend — and can more easily absorb losses on certain items in order to gain customers.

What are the advantage and disadvantage ?

Adv: You’re always open for business. Your virtual shop online is open 24/7 and ready for the client order at anytime, even if he is not booking or buying, but he can access your details of brochures, programs, services.

Disadv : You’re always open for business. People can already shop around the clock, and mobile devices allow them to do so almost anywhere. As a result, a lot of online consumers instant service — or at least quicker deliveries. You need to consistently fulfill orders and/or answer inquiries on a timely basis, or you’ll risk losing customers, especially if you’re competing with brand-name retailers.

What are the advantage and disadvantage ?

Adv: You will gather many useful data. The era of Big Data , this will allow you to customise your services and products to suit your client requirement based on the data you gather about them, such as likes, dislikes, shopping habits, and so much more.

Disadv : you will have to classify these many data you gathered. Fortunately, there are many companies, software and third party applications that can help small businesses test, gather, and analyze data on their customers’ behaviours.

What are the advantage and disadvantage ?

Adv: E-commerce is the present and future. Ecommerce can boost and help any type of business even if its related to online or not and will assist to compete with competitors even bigger size than you

Disadv : Your business status may not need ecommerce boost. This may very well be true. If you own and operate one small hotel and its almost full the whole year, you may not need the boost of ecommerce platform

The conclusion “ Websites are not just online existence, neither information portal, nor

just good image, BUT its commercial existence which could be brilliant investment ”

“The idea of approaching one big tour operator with lots of charter flights and huge allocations has been exchanged into, hundreds of small travel agents, OTAs would make much more TTV than one big TO”

“to be competitive online, regardless the company’s image, size and connections you need to focus more in CLIENT then comes the RATES, AVAILABILITY & YIELD MANAGEMENT

Where “we” start ?

From previous view we simply understood the ecommerce is using the internet to distribute your product such as ( Goods, services, Ideas ...etc). you either distribute to end costumer who is buying directly from you, or to retailers, brokers, wholesaler, bed banks, online tour operators and travel agent

Question! Can any DMC setup ecommerce?

Yes, any DMC or even individuals can setup ecommerce, BUT in terms of results and ROI case is different, 100s examples had rapidly failed without covering the setup cost.

eCommerce operation & back office

The main concept is “MASS production”, not just limited to one agent or tour operator who has 1000... Of clients and charter flights, BUT collecting more than 1000... Clients from 10000... Of OTAs and small travel agents.

Invest in software solutions and build different interfaces and platforms enabled to integrate with different APIs distributors and channel managers through XML and the different formats.

eCommerce operation & back office

Use your existing database to customise your services Arrange workshop and conventions with main vendors and

suppliers i.e. Hoteliers and transportation companies explain ecommerce and how they would benefit from it

Build a strong operation and contracting team to buy all services related to your business

Build a strong Yield team to be in contact with suppliers around the hour requesting, gimmicks, SPOs, reduce release and increase availability

eCommerce operation & back office

Yield plays extremely important role in E-commerce!

As we know in good old days one used to go to travel agent office and set in front of sales agent who start to show him photos, brochures and so on.

Now all what you need to go from travel agent to

another is just click, so unless you are special, competitive, available, informative and look good you will not be able to keep the “clicking client” for long in your website

eCommerce operation & back office

Build yield team, assigned tasks as following Streamline daily contact with hotels. Changing the concept of yield to be for the best and interest

of hotels, sometimes the hotels need to sale some rooms at any rate to avoid overnight empty, our role is to get these rooms sold in the spot by uploading it immediately.

The time and availability factor is extremely important, we all know all bedbank will have same SPO BUT who will upload it before others!!!

keep close eye in all our competitors website to make sure that we more advanced, reachable, bookable, competitive and widely spreaded

TUI

Thomas Cook

Travelocity

Kayak

Travco

Bookinturkey

AgazatClub

Hotelhunter

Rentalcars.com

GetYourGuide

Lufthansa City Center

•Thank you,