Day Seven of Ten – Understanding and boosting ancillary revenue

duty free

Consider the customer journey:



Understanding the entire customer journey including all the touch points where value can be added for the customer is the key here and as well as adding that value for the customer, there is the obvious comfort that revenue will be generated – there’ll be a return on the relationship.



By understanding the journey a customer goes through, travel brands are better positioned to decide what to offer them and how to ensure it is viewed as worthwhile to the customer, not just pushing a product.

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The Week in Travel Tech – November 1 to 7 2009

What you missed on Tnooz this week, Sunday 1 November to Saturday 7 October 2009.



Read on to see the most commented articles, every other article this week, and the most commented articles of all time…

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Day Six of Ten – Understanding and boosting ancillary revenue

lastminute ancill

Extend the product offering:



A flight is usually the first purchase point for a traveller, so flights and the associated products (baggage, seats, upgrades etc) are obvious initial revenue streams for airlines.



However these products are just the start, travellers are also likely to need hotels, travel insurance and car hire at the very least.

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The push-pull of the Orbitz-Travelport relationship

tug2

Jeff Clarke, the chairman, president and CEO of Travelport and also the chairman of Orbitz Worldwide, was explaining why Travelport opted to invest $50 million in Orbitz.

In a Travelport conference call with investors about the company’s third quarter results, Clarke said the investment would help Orbitz, which is Travelport’s largest customer, deleverage the business and give it more operational flexibility.

Of the $50 million investment, Clarke says: “I think this is a good thing for Orbitz and a very good thing for Travelport.”

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Can the last mega-travel agency to leave please make sure they turn out the lights

light bulb

The recent PhoCusWright study on online travel agencies in the US market revealed some interesting tidbits of information.



However in context with some other sources and developments, we are beginning to see a picture emerge that should have cause for some concern on the part of investors in OTAs.



So let’s start with the PhoCusWright study.

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Is HomeAway right when it says holiday rentals is the hottest sector in travel?

home rental

HomeAway is plotting the next phase of its quest for world domination with a gradual rebranding of its sites around the globe.



Sites such as the UK’s Holiday Rentals, which was acquired by HomeAway in 2007, have seen a makeover in recent weeks to push the HomeAway branding to the forefront.



Other sites are expected to follow suit in the coming months as HomeAway slowly pulls all the acquired brands under one corporate roof.

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Skyscanner says Hola and Hallo with hotel and car search expansion

skyscanner

More developments from the Skyscanner camp – following the BRIC launches earlier this week – with news that its new hotel and car rental search tools will be rolled out to other country sites including Spain and Germany.



A total of 20 language sites will take the hotel search tool and 17 will take car rental. The remaining three awaiting car rental will be added shortly.

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Day Five of Ten – Understanding and boosting ancillary revenue

loyalty

Add long term value to relationship:



A recent survey from The Loyalty Practice on changing customer loyalty in 2009 found that only 3% of respondents are most loyal to travel brands.



This is compared to banks, which received 23% of votes and supermarkets, which received 33%.

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Kayak liftoff: First traffic report from new TV ad campaign

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Kayak launched its all-important TV ad campaign Sunday, Nov. 1, and Hitwise tells me that Kayak’s traffic increased 3% in the first three days compared with the Sunday, Monday and Tuesday of the previous week.

The first three days obviously won’t tell the story of what, for Kayak, is a massive ad spend and marketing gamble.

Calling those numbers “understated,” Hafner adds: “The true measure of lift isn’t total traffic but source of traffic (self, affiliate, paid search). You might consider that we could pull back in one channel to see the effects of another.”

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Travelport to take massive writedown of GTA, but will invest in Orbitz

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Travelport’s predecessor company, Cendant, acquired Gullivers Travel Associates for $1.1 billion in April 2005.

But Travelport says next week it intends to write-down its GTA businesses, including Gullivers Travel Associates, Octopus Travel and TravelBound, by $800 million to $900 million.

Travelport CFO Philip Emery says the company is taking this noncash impairment charge because of GTA’s performance “and our expectations for the future performance of the travel wholesale industry.”

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