Presentation on theme: "Thiti Wang-Aryattawanich"— Presentation transcript:
1 Thiti Wang-Aryattawanich The Online Travel Industry (Airline Tickets)Adam RatanaRohit RavinathThiti Wang-AryattawanichRubina Zaidi
2 Industry News & Projections Travel eCommerce is expected to reach $20 billion by 2001 (source: eMarketer)33.8 million travelers used the Internet for travel planning, up from 11.7 million in 1997 (eMarketer)
3 Online Airline Ticket Industry Major Players in theOnline Airline Ticket IndustryAuction ServicesPriceline.comExpedia.com (auctions section)Travel Agency ServicesExpedia.comYahoo! TravelTravelocityDirect Purchases from AirlinesAmerican Airlines, US Airways, etc…
4 The BasicsConsumers sign up online with the service and can shop anytime, anywhere for travel services w/ a web browserLog in, select cities, dates, get price (for priceline, enter price)Pay using credit card and delivery in electronic form or paper
5 Reverse AuctionsEnter a bid price along with destination, origin, and other flight optionsOnce bid is submitted, if found and accepted, consumer is committed to purchase ticketPriceline and Expedia offer this type of serviceSample screen in next slide
7 Online Travel Agencies Once submitted origin, destination, and dates, several options are provided for purchasing ticketsOffers price comparisons through different airline companiesConsumer commits on his own willThis service is offered by Yahoo!Travel, Travelocity, and ExpediaSample screen provided in next slide
9 Direct Online Purchase from Airlines Consumer enters origin, destination, and date of travelDifferent flight options are displayed for that AirlineFirms that offer this service include American Airlines, Southwest Airlines, US Airways, etc…Sample page provided in next slide
11 Who are the Customers? Anyone who travels and has access to the web The everyday consumerCorporate accountsSmall businesses
12 How do the firms Attract Customers? Media Advertising (print, radio, TV – priceline)Banner Ads (Yahoo!, Travelocity, Expedia, etc)Gimmicks/Promotions (free stock- travelzoo)Affiliation Programs (American Express & Expedia)Additional frequent flyer mileage with online bookingDiscount coupons, Premium GoodsWord of Mouth (most or all of them enjoy this)
13 What Value-Added do the Firms Offer? The basic value-added for consumers is to pay the lowest price possible for tickets and save time. They can now either afford to fly instead of another means of transportation, or they can fly more often.Another basic value-added for the firms is that they can fill airline seats closer to capacity.
14 Additional Value Added Price comparisons!Extreme Convenience of doing it online, 24/7 – saves timeElectronic Tickets (Paperless)Incentives (i.e. US Airways gives you more frequent flier miles)Choose Seat Assignments onlineAdditional content services (maps of local areas, hotels, restaurants)Book whole trip (flight, hotels, etc) without an intermediary
15 How do the Firms Retain Customers? Like any offline service, they use frequent flier milesservices (USAir E-Savers, AA NetSavers, periodic discounts, fare-trackers)You can track prices on your pager/cell phoneTraditional methods such as discount coupons, complimentary upgradesComplimentary goods (small gifts at the end of the year)
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