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Travelocity.ppt

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					 E-Marketing Plan
By: Beth Malmborg
      Outline
• Industry Overview
• Company Overview/History
• SWOT Analysis
• Market Opportunity Analysis
   – Demand
   – Segment
   – Supply
• Objectives
• Strategy
• Evaluation Plan
           Industry Overview
• People are now able to book their own flights
  and vacations while being able to jump from
  website to website in order to find the best deal.
  Among the most popular online travel agencies
  are Travelocity, Orbitz, Expedia, and Priceline.
• What makes this industry so strong is the
  growing amount of people as well as companies,
  using the internet. The internet is a great deal
  faster than finding a traditional travel agency.
Industry (cont.)
                   Company Overview
•Travelocity is a leading provider of    •   Since their launch in 1996,
travel services. They market and             Travelocity has won many award
                                             in both the travel and internet
distribute travel related options            categories of their business.
through their website and websites           Among these awards are the
owned by their suppliers and                 Stevie Award for Best New
distribution partners. Online,               Product of Service. The award
                                             was in recognition to Travelocity’s
customers can access offers, and             TotalPriceSM, which offers
pricing information about airlines,          comprehensive pricing information
hotels, car rental companies, cruise         for rental car reservations with just
lines, vacation and last-minute travel       one mouse click.
packages, and other travel-related       •   Travelocity was also named the
                                             “World’s Leading Travel Internet
information. For business travelers,         Site” for the eighth consecutive
there is Travelocity Business.               year in a row in 2004.




                                                                 www.travelocity.com
              Company History
• Travelocity received the highest overall ranking in the
  Online Customer Respect Study, conducted by the
  Customer Respect Group, in 2003. Travelocity received
  a rating of 9.2 out of 10 – the highest overall among all
  travel sites.
• Travelocity was named winner in the Transportation
  category at the Computerworld Honors 21st Century
  Achievement Awards in 2002. This award recognized
  Travelocity as an innovative company leading the global
  information technology revolution.
• Travelocity won the Best Online Distributor award at the
  2002 Air Transport



                                              www.travelocity.com
                   SWOT Analysis
          Strengths:                         Opportunities:
•   Award winning in online           •   Increasing travel demand
    services                          •   Repeat customers
•   Easy to use web site              •   Business Travelers
•   Increasing revenues
•   Recent acquisition of
    lastminute.com (Europe)
                                                 Threats:
                                      •   Many online competitors
       Weaknesses:                    •   New innovations of competitors
•   Seasonal Traveling
•   Increasing customer acquisition
    costs




                                                          www.travelocity.com
             MOA: Demand
• Demand for Business Travel is growing, and
  revenues are increased since the launch of the
  Travelocity Business segment. This allows
  business to book trips quickly and receive deals
  on them.
• The Travelocity TotalTrip segment and Last
  Minute Packages has increased its packages
  revenues $48million since its launch in 2003.



                                        www.travelocity.com
           MOA: Segment
• Both the Business and Packages
  segments target consumers who want
  quick, easy, cheap transactions and don’t
  want or have the time to spend on travel
  agents. These groups of consumers need
  online programs to do their business.




                                  www.travelocity.com
                  MOA: Supply
“The Travelocity Guarantee assures that when you book with
  Travelocity and encounter any problem with your booking, we'll
  work with our partners to make it right.”


Travelocity offers the best guarantee for travel than any
  other online travel agency. They concentrate their
  advertising on this guarantee and it assures people of a
  worry free vacation. At least when it comes to the
  Travelocity end of the bargain. The thought of not
  having to worry about something going wrong with hotel
  reservations is enough to make many customers go
  through Travelocity.

                                                   www.travelocity.com
               Objectives
• Increase International transactions by 5%
  from the 2004 ytd totals.
• Increase revenues 10% from 2004.
• Reduce acquisition costs from $14million
  to $ 10million.




                                   www.travelocity.com
                     Strategy
• In order to increase the international transactions,
  Travelocity acquired lastminute.com, this made them the
  leading online travel agency in Europe. They need to
  concentrate more advertising in that area and make
  consumers aware of this acquisition.
• To increase revenues, Travelocity needs to spend time
  trying to cut costs, this way they can stay competitive
  with their prices.
• The main cost to be cut would be in the selling, general
  and administrative area. The largest cost being the
  customer acquisition. There has been an increase in
  advertising in order to acquire new customers. With the
  advertising being based on their guarantee, this could
  help retain customers and decrease the need for so
  much advertising, therefore decreasing the cost.


                                              www.travelocity.com
               Financials
                             Year Ending December 31,
                            2004       2003        2002

Revenues                  $502,549 $394,508      $338,772
Cost of Revenue           224,386    203,392     187,612
Gross Profit              278,163    191,116     151,160
Selling, general, and     273,189    249,893     221,477
administrative
Operating Income (loss)   (20,498)   (100,331)   (105,359)




                                                  www.travelocity.com
        Implementation Plan
• Increasing international business with
  lastminute.com
• Increasing business travel with Travelocity
  Business.
• Increase customer retention with
  Travelocity Guarantee
• Increase online transactions with easier
  website

                                    www.travelocity.com
           Evaluation Plan
• Travelocity should evaluate their progress
  through their finances. Right now they
  have a negative operating income and if
  they can get a positive operating income,
  then they should look into what they have
  done to change that.




                                   www.travelocity.com

				
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posted:10/28/2011
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