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					Wirtschaftsinformatik




                        Online Travel Agencies

                        Patrick Deuter, Andreas Fenske, Leonard Heilig,
                        Alexander Iskam
Agenda


     A. Introduction

     B. Analysis of the Business Models
         1. Business Model
         2. Customer Interface
         3. Product
         4. Infrastructure
         5. Financial Aspects

     C. Competitors




                                 Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   2
Introduction – Expedia

  part of the Expedia, Inc.; based in the US with localized
  sites for 19 countries
  was started by Microsoft in 1995, but it was "no longer
  about software intensive technology" and Microsoft was
  "concerned that they would not do their best at this“
  500 airlines, 70.000 hotels
  largest online travel agency and fourth largest travel
  company in the world
  ca. 64.000.000 unique visitors per month (Expedia Inc.)
  $2.937 billion in gross sales (2008) (Expedia Inc.)
  Expedia Inc. consists of the following companies:




                               Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   3
Introduction – Expedia.com




                    Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   4
Introduction – Opodo

  a pan-European enterprise
  founded in 2001 by a consortium of nine European airlines including
  Aer Lingus, Air France, Alitalia, Austrian Airlines, British Airways,
  Finnair, Iberia, KLM and Lufthansa
  since June 2004 Amadeus (travel technology provider) is the major
  shareholder
  operates from 13 countries
  500 airlines, 65.000 hotel properties and more than 7.000 car rental
  locations worldwide
  ca. 12.000.000 unique visitors per month
  €1.3 billion in gross sales (2008)
  the opodo group consists of:




                               Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   5
Introduction – Opodo.co.uk




                     Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   6
      Business Model
Infrastructure                                       Product

Key Activities                                       Value Propositions
                                                                                                  Customer
Key Resources                                                                                     Interface
Key Partnerships                                                                                  Customer Segments

                                                                                                  Customer
                                                                                                  Relationships

                                                                                                  Distribution Channels




                       Financial Aspects

                       Cost Structure

                       Revenue Structure
                                                                    Osterwalder; Pigneur: Business Model Generation, 2009

                            Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   7
  Customer Interface




                    holiday travellers: young people,                   holiday travellers: young people,
                    families (+kids), seniors, groups                   families (+kids), groups
Customer Segments   with specific needs on:                             with specific needs on:
                    special trips (sightseeing, Disney Land,            special trips (sightseeing, Disney
                    adventures, romantic, etc), activities              Land, adventures, romantic, etc),
                    (sport, wellness), hotels and prices                activities (sport, wellness), hotels
                                                                        and prices
                    business travellers: business people
                    with specific needs on:
                    exclusive deals, (business-) hotels,
                    check-In



                    direct channels:                                    direct channels:
   Distribution
                    web sales                                           web sales
    Channels        sales force by telephone                            sales force by telephone

                    indirect channels:                                  indirect channels:
                    affiliate programs                                  affiliate programs




                                 Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   8
   Customer Interface




                 personal assistance: expert advice by               personal assistance: advice for the
Customer         telephone and e-mail on every site,                 booking process by telephone
Relationships    decision and after-sales support, best-
                 deals and individual newsletter
                                                                     self services:
                 self services:                                      “Air Tools“: EscapeMap,
                 “Travel Tools”: Online Check-In, Flight             CheckFlight, FlexiFlight, Check-In
                 Timetable Search, Cruise Compare, Gas               “Travel extras“: airport transfer and
                 Station Locator, Limited Seat Alert, etc.           airport parking information

                 automated services:                                 automated services:
                 “My Account”: faster checkouts, special             “My Opodo”: past trips and upcoming
                 offers to favourite destinations, secure            flight, hotel, etc. bookings, secure
                 transactions                                        transactions

                 co-creation: traveller’s reviews to                 co-creation: traveller’s reviews to
                 create value for other travellers                   create value for other travellers




                               Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   9
  Product




                     - hotels, cars, flights, cruises and             - hotels, cars, flights, cruises
Value Propositions     vacation packages                              - packaging holidays
                     - business travel products                       - travel guides
                     - top travel deals (today‘s, last-               - Eurostar breaks
                       minute and early booking deals, etc.)          - late deals, early booking deals

                     Cruise/Hotel Virtual Tours                       Opodo Newsletter

                     Deals via RSS and E-Mail                         Opodo Travel News via RSS

                     Expedia To Go                                    "paper-less" way to book flights

                     Fare Alert                                       Verified by Visa

                     Split Payment                                    ATOL-Protection

                     Limited Seat Alert                               City Sights and Sounds

                     Best Price Guarantee




                                  Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   10
Infrastructure




                 platform management: continual                  platform management: continual
                 development and maintainance                    development and maintainance
Key Activities
                 platform promotion activities                   platform promotion activities
                 (online & offline)                              (online & offline)
                 & brand building

                 partner acquisition                             partner acquisition

                 support, expertise & reporting for
                 hotel partners


                 physical: web platform, IT                      physical: web platform, IT
                 infrastructure                                  infrastructure
Key Resources
                 intellectual: partnerships, extensive           intellectual: partnerships, extensive
                 database, brands                                database




                               Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   11
Infrastructure




                   strategic alliance with hotels,                  strategic alliance with hotels,
                   airlines, cruise lines, car rentals              airlines, cruise lines, car rentals
Key Partnerships
                   furthermore:                                     furthermore:
                   local service providers                          airports, travel businesses, price
                                                                    comparison websites

                   affiliate partner websites                       affiliate partner websites

                   partner programme with travel
                   agencies




                                  Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   12
 Financial Aspects




                    infrastructure maintenance                       infrastructure maintenance
 Cost Structure     personnel                                        personnel

                    affiliate programs (fixed list prices)           affiliate programs (fixed list prices)

                    marketing & advertisement                        marketing & advertisement


                    profit from intermediation between suppliers (airlines, hotels, car rentals, etc.)
                    and consumers
Revenue Structure
                    some control over pricing (higher margins)

                    ability of product packaging with opaque prices (dynamic packaging)
                    advertising                                      advertising

                    investors




                                   Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   13
Competitors




Travelocity                                                 Thomas Cook
- based in Southlake, TX                                    - headquartered in Peterborough, England
- second-largest online travel agency                       - second largest travel company in Europe
- pioneer of web-based disintermediation                    - major shareholder Arcandor AG
- fully owned by Sabre Holdings

Priceline                                                   TUI
- headquartered in Norwalk, CT                              - headquartered in Hannover
- provides comparative pricing from                         - TUI AG one of the world`s largest tourist firms
  assortment of service companies                           - interests across Europe

Orbitz                                                      Travelzoo
- headquartered in Chicago, IL                              - headquartered in New York, NY
- largest investor is Travelport                            - works with over 900 travel companies to find deals




                                           Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   14
Kontakt

Patrick Deuter                                   Universität Münster
                                                 Institut für Wirtschaftsinformatik
Andreas Fenske
                                                 Lehrstuhl für Wirtschaftinformatik und
Leonard Heilig                                   Interorganisationssysteme (IOS)
                                                 Prof. Dr. Stefan Klein
Alexander Iskam                                  Leonardo-Campus 3
                                                 D-48149 Münster

                                                 Tel.: +49 (251) 8338-110
                                                 Fax: +49 (251) 8338-119

                                                 http://www.wi-ios.de




                  Online Travel Agencies – Patrick Deuter, Andreas Fenske, Leonard Heilig, Alexander Iskam   15

				
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