The (R)evolution of Search

22 March 2012

Kevin May,Tnooz editor / moderator

Our panelists

Michael WakeTravelport

Shelley BeasleyWebjet

Poll no. 1

Poll no. 2

Tnooz-Travelport Webinar

22 March 2012

The (R)evolution of Search

Who searches…?

… all traveller types are looking for the best price for their trip!

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Top 10 US Traveller Search Channels

% o

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Source: Atmosphere Research Group, Q4 2011

Where are travellers searching…?

• Outside Top 10: Visiting a travel agency (15%)

9 Source: PhocusWright Traveller Technology Survey, 2011

Mobile Penetration in Flight Search

• The mobile revolution is altering the way leisure and business travellers shop for travel products and services

• Business travellers, often delivering higher yields to airlines and travel agencies are frequent early adopters

• Clearer emphasis on mobile search platforms that are compatible with a wider range of devices is key to satisfying the most desirable customers

Researc

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US Mobile-Empowered Travellers

Leisure Business

2011: Heralding changes in search

• New players emerged in the consumer travel arena… … including the worlds’ largest marketing agency

• Airlines consolidate in the face of rising costs :

• Delta, United, BA now BA acquiring bmi• Higher fares driven by schedule reduction, oil prices• Closer monitoring of distribution costs – GDS, BSP, L2B ratios

The (continued) Rise of Metasearch

• Metasearch is a valuable marketing channel for online agencies where consumer loyalty is fragile and competition focuses on price

– Conversion rates are may be lower than direct visitor traffic– Comparison engines spawn multiple queries, driving volumes

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Recognize Need

Information Search

Evaluate Alternative

s

Complete Transactio

n

Pricing Decision

Fares and Inventory

Channel Distributio

n

e-Pricing Responses

Search and Buying Decisions

SPEEDLOWEST FARES

INSPIRATIONACCURACY CHOICE

RELEVANCE

Inspire me!

• An assumption that shoppers visit websites with a clear idea of what they are searching for is no longer valid…. many seek inspiration

Around 43% of travellers in the UK are inspired by

results from search engines and the same

number used them directly for destination information

Total Insight: Social Travel, Total Media, Jan 2010

Suppliers experimenting with inspiration

OTAs are being consulted way beyond the levels of actual booking, suggesting that they are not just seen as a place to book but also to research, get ideas and become inspired

Total Insight: Social Travel, Total Media, Jan 2010

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Inspire me… on destination

• Satisfy curiosity with fast, accurate searches across wide geography– Search by radius, country, region to serve up recommendations

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Inspire me… on dates!

• Deliver sight into the cheapest times to travel to stimulate conversion– Simple, price-driven data that does not compromise on accuracy

of result is critical in satiating consumer demand for broad search

Search… for what I want!

• Relevant content is key factor in converting ‘lookers’ into ‘bookers’

• Retail portals have matured content relevance faster than travel

– Delivery of ‘customized’ content based on traveller profile

– Simplify buying experience, avoid overwhelming with options

Sam’s Club has begun experiment with eValues – specific deals related to a shoppers’ buying history. eValues are seeing uptake in the 20-30% range.Martin Andrew, New York Times (2010)

Russia India Brazil Germany United Kingdom

United States

0

10

20

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Traveller Frustration with 'TMI'

Source: PhocusWright Empowering Inspiration: The Future of Travel Search

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Search… using words or voice?

• A simple search and purchase experience is emerging as a key differentiator for travel retail suppliers

• Proliferation of mobile voice apps could rapidly condition consumers to search from voice commands

• Free-text (semantic) search is now standard for most other types of online search functionality…

Poll no. 3

Poll no. 4

A Customer Perspective Shelley Beasley Chief Operating Officer, Webjet Ltd

Search and Webjet

About Webjet• Webjet is Australia and New Zealand’s largest online travel

agency. Leading the way in online travel tools and technologies, Webjet enables customers to search, compare and book the best domestic and international flight deals, travel insurance, car hire and hotel accommodation. 

• Webjet has been a partner of Travelport since 2003

• Webjet operates in Australia, New Zealand, North America and most recently Hong Kong and Singapore.

Market Share Leader – Hitwise #1 for 3 1/2 Years

Interesting Facts About Webjet

• Webjet charges fees for its air booking services, and in fact charges the highest fees in market, with many high visibility competitors promoting a “no fee” structure.

• Unlike most Global OTAs, we currently sell a highly disproportionate amount of Air Product

• In a market where the total growth is in single digits, Webjet announced 29% TTV growth and 21% profit growth for the 1st Half to the 31st of December 2011..

• Webjet has the #1 Travel app in market

Our priorities

Webjet release of e-Pricing

e-pricing returned lower

e-Pricing Results

e-pricing matched

43%

57%

e-pricing returned higher

1%

• Greater carrier diversity

• Unique multi carrier itineraries

• 50% reduction in shopping transactions― Lower look to book ratios― Improved efficiency

• e-Pricing meets or beats 99% fares returned by previous shopping platform…

International flight engine has been powered by Travelport e-Pricing since 13th October 2010 after a deployment project of 5 months.

Webjet release of e-Pricing

Increased revenue from growth in International - with new carriers being sold and new itineraries

surfaced

Source: Webjet Full Year Results 2010-11

29% increase in GDS bookings January – Sept 10

Compared to January – September 2011

Webjet’s Future of Search

• Any time, any where, any platform!

• Continued acquisition of content

• Voice

• Personalization

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Copyright

©2011 Travelport. All rights reserved. All Travelport logos and marks as well as all other Travelport property materials depicted herein are the property of Travelport and/or its affiliates. All other trademarks are the property of their respective owners.

Notes About Examples:All screen examples and other inserts associated with system output are provided for illustration purposes only. They are provided as illustrative examples of system functionality and are not meant to represent actual screen responses, rates, etc.

Q & A

Thank You!

Webinar replay will be available on www.tnooz.com

Please send questions and comments to Kevin May, kevin@tnooz.com