travelzoo the innovation enterprise presentation by european md richard singer october 2013
DESCRIPTION
Travelzoo is one of the top providers of travel and entertainment deals in the world. Our team of Deal Experts from our 25 offices around the world find the best offers, put them through a rigorous and unique testing process and share an edited selection of the most outstanding deals with our global audience of 26 million subscribers.TRANSCRIPT
www.travelzoo.co.uk 1
From start up to global leaderRichard Singer, MD Travelzoo Europe
www.travelzoo.co.uk 2
How we started
www.travelzoo.co.uk 3
Source: Clayton M Christenson: An Innovators Dilemma
Disruptive innovation
www.travelzoo.co.uk 4
www.travelzoo.co.uk 5
Our goal
“To inspire people every day to jump off the sofa and explore the world”
www.travelzoo.co.uk 6
Travelzoo Top 20
www.travelzoo.co.uk 7
Our mission
“To be the worlds most trusted source of travel and entertainment deals”
www.travelzoo.co.uk 8
26 million global subscribers
Canada 1.5
U.S.15m
U.K.3.5
Germany1.5
Spain0.7
France0.8
China*1.0
Japan1.0
Australia0.7
www.travelzoo.co.uk 9
Unique process assures reliability for subscribers and qualified leads for advertisers
Travelzoo Deal Experts across Europe, North America and Asia follow a one-of-a-kind process to bring our subscribers the most competitive deals in the marketplace and provide our advertisers with high-quality, high-income active travellers
Research
Producers thoroughly research the quality and competitiveness of each offer
Evaluate
Editorial team evaluates the strength of an offer before endorsing it as outstanding
Test
The Test Booking Centre test books each offer to ensure a smooth user experience and best possible results for the advertiser
Producers spend more than 1,000 hours researching, checking & validating deals each week
www.travelzoo.co.uk 10
• Website, Top 20®, Newsflash™ & SuperSearch™
• Editorial guidance drives response
Publications & Content
• High income
• Frequent leisure travellers
• Respond to travel ideas withincremental purchase
• 26 million subscribers worldwide
• Companies take bookings directly via their website or reservation/call centre
• Proven results across all travel segments
• Over 2,000 advertisers
Quality Audience Branding & bookings
Simple but effective model
www.travelzoo.co.uk 11
Travelzoo is one of the world leading Travel and Entertainment providers
+ NASDAQ listed: TZOO
+ Market Cap $400m
+ 25 offices in 11 countries
+ More than 500 employees
+ More than 2,000 advertisers
+ 100million unique visitors worldwide
+ Over 26m subscribers worldwide
+ 3m social following
+ No. 1 Travel newsletter in the UK and Top 10 travel website
www.travelzoo.co.uk 12
Travelzoo: Ansoff Matrix
Existing Products New Products
Existing Markets
New Markets
Market Penetration Product Development
Market Development Diversification
www.travelzoo.co.uk 13
Travelzoo: Ansoff Matrix
Existing Products New Products
Existing Markets
New Markets
Market Penetration Product Development
Market Development Diversification
www.travelzoo.co.uk 14
Travelzoo: Ansoff Matrix
Existing Products New Products
Existing Markets
New Markets
SubscriberInvestment
SearchNewsflash
Local DealsGetaways
EuropeAPAC
Canada
Diversification
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Entrepreneurial culture with disciplined financial approach
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www.travelzoo.co.uk 16
Entrepreneurial culture with disciplined financial approach
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2: L
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www.travelzoo.co.uk 17
Market expansion- due diligence and culture building
+ Selection of a market
+ Find synergies across markets
+ Start simple – build big
+ Build local teams with centralised support
+ Local taxes and employment laws
+ Global and local product development
+ Communication
+ Sympathetic to cultural nuances
GLOBAL
NATIONWIDE
DRIVE MARKETS
LOCAL
www.travelzoo.co.uk 18
We make investments to drive future growth
Annual revenue per subscriber*US$ per subscriber
* Defined as annualised year to date revenue divided by # of subscribers at beginning of year.
26 million Number of subscribers**
$7.17
TravelzooQ3 2012
New growth in the past 2-years:
2010: Local Deals
2011: Getaways
2013+: Grow audience and monetisation
Strategic Elements
1. Audience
Grow subscribers but also mobile users and social
2. Products
Enhance our products to search ‘what’, ‘where’ and ‘when’, particularly on mobile and particularly for hotels
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Strategic element 1: Grow and actively engage audience across all media
www.travelzoo.co.uk 20
Strategic element 2: Product development investment
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Strategic element 3: On page optimisation
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Strategic element 4: Social roll out
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Strategic element 5: Travelzoo syndication
Travelzoo Network Publishers*Reach Travel Intenders at all Stages of Travel Purchase Funnel
* Partial list of Network partners
www.travelzoo.co.uk 24
Strategic element 5: Travelzoo syndication
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The Challenge and the Opportunity
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Travelzoo mobile
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34% of total traffic is via mobile devices
2,500,000+ app downloads
1 sale every 1.5 minutes on mobile
'Brilliant'The Independent
'Travel App of the Week'
The Sunday Times
'Consumer app of the week'
The Guardian
'Genius'The Times
Mobile is the fastest growing segment of our business
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Our mobile products continue to evolve
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Covers all sectors of Travel and Entertainment
Very simple to use
4 European markets
23 US markets
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What has been the impact?
Mobile evolution
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Mobile booking experience
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Mobile booking experience
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Test Booking Centre Top 20
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Hotels£99 -- Deluxe Cheshire Break w/Dinner & Tickets, Save 50% no mobile site£79 -- 'Stylish' London Docklands Hotel w/Extras, 58% Off no mobile site£125 -- Isle of Wight Hotel w/Ferry & Dinner, Save 52% no mobile site£129 -- Award-Winning Cotswolds Gourmet Stay, Reg £245 Getaway£99 -- Historic Dartmoor Manor Stay w/Suite, 40% Off Getaway£98 -- Amsterdam 4-Star Stay w/Upgrade, Was up to £250 mobile site, correctly linked, but not working properly£75 -- Central Amsterdam Summer Hotel Stay w/Breakfast mobile site, but not working properly£139 -- Lake District Stay with AA-Rosette Dining, 40% Off Getaway£69 -- Berkshire Hotel with Breakfast & Dinner, 45% Off mobile site, works fine£89 -- Dorset Jurassic Coast Hotel w/Meals, up to 48% Off phone only£84 -- 2-Nt Sicilian Farmhouse Stay, up to 34% Off Getaway£90 -- Lake Stay nr Las Vegas w/Shuttle, up to 43% Off no mobile site£75 -- New Orleans: Chic Hotel near French Quarter, 60% Off mobile site, but not working properly£75 -- 'Stylish' Boutique Nottingham Stay w/Dinner, Reg £179 Getaway£65 -- Derbyshire: 4-Star Gourmet Stay w/Dinner & Extras no mobile site£119 -- Historic Lincolnshire Break w/Michelin-Listed Dining Getaway£169 -- Condé Nast Cotswolds Stay w/Dinner & Fizz, Was £370+ Getaway£149 -- Devon Country Escape w/'Exquisite' Dining, Was £330 Getaway£89 -- Cotswolds 'Hidden Treasure' w/Wine Tasting, Was £155+ GetawayEntertainment£25 -- Last Chance: Spice Girls Musical Tickets, Was £45 no mobile site£24 -- 'We Will Rock You' Arena Show in Manchester, Reg £35 no mobile site£13 -- Newcastle: 'Celebrities on Ice' Arena Show no mobile site£15 -- 'Hilarious' Play 'Noises Off' in Glasgow, Save 54% no mobile site£19 -- 'Taste of London' Food Festival & Cook Book, Reg £38 no mobile site
Vacation£329 -- Tenerife: 4-Star Holiday w/Meals, Drinks & Suite phone only£179 -- Krakow Break at 'Poland's Best Hotel' w/Flights phone only£299 -- French Pyrenees: Deluxe Castle Escape w/Flights phone only£349 -- 4-Star Mayrhofen Austrian Alps Wk w/Meals, Was £644 no mobile site£499 -- Luxury Kos Escape w/Meals, Spa & Sea View, Was £799 phone only£899 -- Oceanfront All-Inclusive Week in Barbados, Save £330 phone only£229 -- Costa Brava: 3-Nt All-Inclusive Break, Save 32% no mobile site£689 -- All-Inc Sri Lanka Beach Escape w/Upgrade, Save £330+ no mobile site£479 -- Red Sea: All-Inc Hilton Week w/Upgrade, Save £150+ phone only£1145 -- NYC, Niagara Falls & Washington DC Tour, Save £364 no mobile siteAir£68 & up -- Monarch Cuts June Fares to Europe (Return) no mobile site£10 & up -- Ends Tuesday: UK & Europe Car Hire Sale no mobile site
Cruise£699 -- 7-Nt Dubai Cruise inc Flights, Transfers & Spend phone only£699 -- Last-Minute 12-Night Baltic Cruise, Was £1389 phone only£779 -- Western Med Fly/Cruise w/7-Night Mallorca Stay phone only£1599 -- 5-Star Indonesia & Bali Cruise inc Flights & Hotel phone only
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How is this changing our business?
www.travelzoo.co.uk 33
The mobile driven evolution of our business
• Advertising to ecommerce
• Product led technology company
• Marketing has had to be adapted to embrace social and mobile channels
• Our content and publishing strategy has been adapted, tested and developed
• Our ‘deal testing’ process has been extended
• ‘Mobile First’ is a key strategic pillar
• Our KPIs and metrics of success have changed
• We have hired significantly
• We have had to take ownership of the challenge
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Mobile first publishing
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Launch of a global hotel collection and booking engine
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• Portfolio of hotel properties in all key locations worldwide
• Advanced search functionality
• Our own booking path. Mobile optimized
• Functionality to cross sell and up sell at all stages of the booking path
• Booking technology to expand to different products and different sectors,
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Evolution and opportunity
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• Found a winning formula and stuck to our core business
• Kept it simple but very focused
• Exploited the synergies
• Hired locally and gave them the support to succeed
• Evolve quickly, prepare for disruption and be fast
• Continue to deliver on our customer promise
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6 steps to our success
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Deal quality and subscriber loyalty positions us for future growth
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Richard SingerMD Travelzoo Europe
Phone +44 20 7420 0452 Email [email protected]