To effectively sell travel products, airlines and other travel companies need to think like retailers… Aimed at airlines and other travel companies, this FREE webinar produced by Tnooz and OpenJaw Technologies investigates the opportunities presented by becoming an effective travel retailer. Panelists are: Mark Lenahan, vice president of product strategy, OpenJaw Technologies Cathy Hornby, manager of digital retail, Cathay Pacific Airways Tristan Gadsby, CEO, Alliants Kevin May, editor and moderator, Tnooz Gene Quinn, CEO and producer, Tnooz This webinar took place on Thursday 6 February.

1. Can you double your money
by becoming a travel retailer?
Webinar
6 February 2014

2. Your hosts
Kevin May
Editor & moderator
Gene Quinn
CEO & producer

3. Your panelists
Tristan Gadsby
CEO
Alliants
Mark Lenahan
VP, Product Strategy
OpenJaw Technolgies
Cathy Hornby
Manager, Digital Retail
Cathay Pacific Airways

4. Can you double your money
by becoming a travel retailer?
Tristan Gadsby
CEO, Alliants

5. Travel companies are not seen as leaders
0/100
2/50
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most innovative
companies
3/50
5
top
brands
most admired
companies

6. Retailers and consumer products dominate…
6
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7. Retailers think differently…
30.4%
COMPETITORS
Share of the Groceries
Wallet
+
Frequency of Visit
Not just transactions and average transaction value
7
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8. What can we learn from leading retailers?
All experts in…
Distribution
Engagement
Conversion
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9. The big value-levers for all travel companies…
Increase Reach
Increase
Volume
Increase Visit Frequency and
Engagement
Improve Conversion Ratios
Value
Increase Average Transaction
(Up-Sell, Cross-Sell Package)
Increase
Average Value
Optimise Margin
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10. Increase Conversion: Barriers in checkout
A Fast Track 100
Ecommerce site removed a
modal window. Page
dropout reduced by
30%
source: Alliant’s UX work
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Don‟t interrupt the user!

11. Increase Conversion: Compulsory registration
ASOS redesigned to
remove the references to
registration.
Page dropout reduced by
50%
source: Econsultancy ASOS checkout post
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12. Increase Conversion: Fraud & Security
Re-enforcing security
credentials can
decrease dropout on
payment pages
And… be wary of enthusiastic security policies
Removing CAPTCHA had a
10% uplift in conversion.
(Sampa.com)
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13. Up to 10%
Increase Engagement
Use site search
Engage in available product
Compare products
Share products
0
1
2
3
Conversion Multiplier
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4

14. Up-sell and Cross Sell
Upsell – give
shoppers
alternatives.
Optimise on the
price.
Cross-sell – once
someone commits
a purchase, offer
additional
appropriate items.
Optimise the
inventory.
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Up to 10%

15. Personalization
Up to 15%
Personalisation of offers and
Search Result Ordering can
deliver up to 15%....
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16. Optimise Margin
Up to 10%
…But understanding the price
sensitivity and margins of what
you are selling can deliver
another 5-10% to the bottom
line
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17. Increase Reach
12 4/5
fold
Mobile traffic in
2012, than the entire
internet in 2000
Smartphone owners
use their mobiles to
shop
2013
The year when mobile
internet connected
devices outnumbered
humans
In 2014, you cannot ignore mobile
Sources: Cisco, comScore
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18. Effectively Delivering Mobile
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Up to 15%

19. The Multiplier Effect of Retailing
100%
Optimise
Margin
90%
80%
Personalisation
70%
60%
Upsell and
Cross-Sell
50%
Increased
Engagement
Increased
Reach
40%
30%
20%
10%
0%
Remove
Conversion
Barriers
Improvement Potential
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20. What next?
…and draw ot in gh s
h
i t
1.
2.
3.
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Deep use of social tools like
t at w couldn’t see b fore
e OpenGraph
e
(e.g. Fab.com)
Data science
(e.g. pricing analytics)
„Useful’ mobile apps – it‟s not
good enough to replicate a
website.

21. Retailing for the travel industry
Mark Lenahan
VP, Product Strategy
OpenJaw Technologies

22. What Is “Thinking Like A Retailer”?
• Supplier: “I have product – how
do I sell as much of my product
as possible?”
?
22
?
?
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?
• Retailer: “I have customers –
how many of their needs can I
fulfill?”

23. Why don‟t Airlines think like Retailers?
1. Travel Agents are the retailers
2. Structured around operations
and locations
3. Operational complexity
4. Legacy technology
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Holidays
23
FFP
6. Product complexity…
Airline
5. Business silos

24. Travel Product Complexity
• Starbucks has 87,000 different drink combinations?
WSJ & NWT adverts 2008, Times Magazine 2006
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25. Travel Product Complexity
• How many possible holidays can I book?
(Drastically oversimplified!)
•
•
•
•
•
•
•
•
•
•
25
100 destinations
30 departure dates
~20 durations
10 flights out
10 flights back
3 cabin classes
100 car rental offers
200 hotels
Room type / meal plan
Activities, Insurance...
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100
3,000
60,000
600,000
6m
18m
1,800m
3.6 x1011

26. t-Retailing Introduction

27. The 4 Principles of t-Retailing
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28. Inspire! with t-Retailing
•
Creation of own content, curation of
third party and user-generated
•
Browsable products, locations and
promotions
•
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Consumer engagement, discovery
and social sharing
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•
Visually compelling and dynamic
display of products with prices, offers
and calendars
•
Support traffic acquisition/SEO/SEM for
search and meta-search

29. Personalise! with t-Retailing
•
Identify and recognise individual
customers to personalise offers and
user experience
•
Own the customer engagement for life
of the customer, not just one journey –
focus on customer share, drive loyalty
•
Deliver „compelling‟ cross-sell – the
right product to the right person at
the right time
•
Retain and index all customer
interactions – reward loyalty – mine
data for customer knowledge
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30. Differentiate! with t-Retailing
•
Get closer to supply – own and partners
– leverage unique inventory, products
and rates
•
Leverage packaging and redemption as
channels
for
distressed
inventory,
negotiated/net/private fares and rates
•
Control business model and algorithms
on the fly – realtime business response
to the market
•
With a small number of direct contracts,
key destinations, offer unbeatable value
•
Reward loyal customers
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31. Convert! with t-Retailing
•
Bring proven online retailing &
merchandising strategies to travel
•
Integrate with loyalty
accrual and redemption
•
In-path and post-booking cross-sell
Up-sell flight and ground ancillaries
through travel journey
•
Unified online and offline channels;
contact centre for serving and sales
•
Shopping
cart
&
Dynamic
Packaging - „Combine & Save‟
•
Payment models matter e.g. online,
offline, loyalty points, deposit, cash,
high street
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partners
for

32. t-Retailing Principle 1: Inspire

33. Inspire - Promotions
•
•
•
•
34
Products & Pricing
SEO & Social
Google
Forms
Only possible recently
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34. Inspire - Promotions
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35. Inspire - Promotions
• Do you have landing pages for Destinations / Hotels /
Activities/Packages/Promotions/Themes?
• Can they be browsed by consumer & indexed by search?
(SEO/SEM) – without search forms!
• Can they be liked, shared, +1‟d, tweeted?
Can you get a network effect?
• Do they contain current price information,
availability and images?
• Do links land on something useful? i.e. departure dates
with actual prices/bookable?
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36. t-Retailing Principle 2: Personalise

37. Recommendations in Travel
Profile/CRM Data
Stated preferences, inferred/collated
data, identity, location, social/mobile
Product Data
Hotels, Locations, Activities
Formal meta-data + soft tags
Past Behaviour
Super PNR, +(views, likes, saves)
Collaborative Data
Products + Behaviour (Signals)
(Many Customers)
Current Behaviour
Session / Shopping Cart
External Data
Shares, Likes, Comments, Tweets, Graph
Customer
Data
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External Data
Local data, UGC, social media,
alerts/disruption/news
(Per Product, Location)
Recommendation
& Personalisation
Rules
Product
Data

38. Personalisation Examples
Altered Image Elements
& Styles
Featured Promotions
& Banners
Targeted Pricing
& Special Offers
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39. Personalisation Examples
Merchandising: Arrange products in an order more likely to
sell. Anywhere you list products, especially search results…
Non-Personalised
Product A
Product B
Product C
Product D
Product E
Product F
…
40
$105
$108
$134
$141
$182
$245
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Personalised
Product C
Product E
Product A
Product B
Product H
Product E
…
$134
$181
$105
$108
$255
$182

40. Customer Service / Support
• It isn‟t just your systems!
• The people who deal with your
customers:•
•
•
•
•
•
•
•
•
•
41
Check-in
Room service
On board
Contact centre
Social
High street
Airport
Hotel
Depot
Station
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41. t-Retailing Principle 3: Differentiate

42. Differentiate – Content & Supply Model
1. Using One Aggregator
• 50,000 – 150,000
• Build breadth quickly
• Intelligence built in
t-Retail Platform
Content
• 200,000+
• De-duplication
• Relative priorities
Link
Link
2. Using 2 or More Aggregators
1Aggregators
Aggregtator
3. Aggregators and Contracting
• Focus on top destinations
• Add unique content (boutique, halo)
• Very difficult to replicate
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Contracts

43. t-Retailing Principle 4: Convert

44. Conversion
• In Line Cross-Sell
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45. Conversion
• Up-Sell
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46. Conversion
• Dynamic Packaging/Combine & Save
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47. t-Retailing in Practise

48. xDistributor
Internet
Booking
Engine
Mobile
Agent
Desktop
Admin
Admin
Console
Console
Contact Centre Mgr.
Contact Centre
Business Rules
Product & Product
Managers
Pricing
Rule Managers
Management
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xDistributor
OpenTravel XML
CMS
TribeAPI
IBE API
UX
Supplier Connectors
OpenJaw t-Retail Platform
Air PSS/GDS
Hotel
Car
Event
Other
Location
Location
Manager
Rules:
Business
Tables
Process
Hotel
Content
Event
Inventory
Profile
Profile
Loyalty
Loyalty
Manager
Manager
Super PNR
Super PNR
Manager
Manager

51. Q&A

52. Thank you!
Send your questions and comments to
kevin@tnooz.com
Replay and presentation of webinar will be available on
www.tnooz.com