Eye for Travel e-Business 2002

Reinventing the Business of Travel

Hamish Broom
Manager e-Commerce and Business Development
 agenda
 environment
 changing world
 effect
 travellers / corporations / agencies / GDS
 response
 Sabre reinvention
 reaching out to corporates
 reality
 challenges / obstacles
 future
 being successful
environment
 2001 in retrospect
 Recession occurred in major economies

 Security became foremost in consumers’ minds

 Airlines aggressively tackled cost problems

 Capacity reduced
 Previously ‘untouchable’ costs (e.g. fuel, labour and new
 airplane costs) now impacted

 The travel experience changed literally overnight

 Cost management was never more crucial

 Leisure travellers stayed home, business travellers vanished

 Companies learned they could live with less travel

 New U.S. online entrant reached #7 in six months

 industry forces
Global forces are redefining the distribution industry’s
structural and competitive boundaries.
Travel
Industry

Consolidation Expansion Beyond Core Business

Globalisation Emergence of New Entrants

Evolving Customer Expectations New Business Models

Enabling Technologies
 industry trends
Suppliers Intermediaries
• Consolidating • Formation of alliances
• Seeking lower cost • Transforming current
solutions business models
• Control of • New entrants
distribution proliferating
channels
• CRM solutions Technology
• Demand for content delivery
technologies*
• Maturity of off-the-shelf
development tools
Socio- • Emerging options to TPF Corporations
economic & Travellers
Trends
• Shopping multiple
channels
• Data privacy • “Do it yourself”
• Regulatory and labor options
resistance • Demanding better
• Volatility of investors services and lower
ticket prices

* XML, publish/subscribe, wireless

 internet explosion
 1.5bn emails sent daily

 154.6m people online in Europe (www.nua.ie)

 Every third UK
Internet user visiting
a travel site

 30,000 new domain

names appearing every day

 Business travel bookings on the internet will surpass

$33 billion by 2005 (Jupiter Research)
effect
 what does it mean?

travellers
are
 smart and savvy

 becoming more
technologically
aware

 more reachable

 better equipped to
make choices
 the questions…

what do
corporates want
Reduced costs
?
Value for money
Buy smarter
Ease of use

Is there a future role for the GDS ?

response
strategic acquisitions

 Web-based Corporate Booking Tools

 800 of the world’s largest companies have selected
GetThere

 Development, customisation and hosting of

e-Commerce platforms
 Offers multi-language, multi-GDS booking engine

 Provides access to a broad range of local content

Offers Travel Reservation Services to over 4.900
German Travel Agencies
outsourcing and investment
 travel value chain
Traditional GDS Role

Confirm/
Shop Sell Fulfill
 travel value chain
New Travel Marketing & Distribution role

Initiation Reservation Embarkation Conclusion

Stimulate Confirm/ Travel Post

Shop Sell Pre-Trip /
Demand Fulfill Experience Travel
Embark
why extend the value chain?
 Supply services and information
 Anywhere Anyplace Anytime

 Provide new and additional features

 Convert lookers to bookers

 Give agents the tools to market themselves

effectively to customers

 Allow corporations & travellers to book travel

themselves -online
stimulate demand

Corporate Booking tools

CRM tools
one to one marketing
agency CRM

Click Submit
to continue..
corporate booking tools
priced itinerary & low fare options
seat maps & seat selection
out of policy message
 personal, post booking, web site

Access itinerary via

Access itinerary via
Travel agent e-mail link
www.virtuallythere.com

Delivered Itinerary
 wireless information
Access via WAP enabled phones and desktop organiser
and hand held devices
 documentation

E-ticket receipt
indicates:

 Proof of purchase

 Can be used to
reconcile
travel expenses
 the online trip

how
does it all
come together?
how
?
has the value chain
been extended
stimulate demand
shop
sell
confirm / fulfill
pre-trip / embark
travel experience
reality
 bookings by channel
% of Total Air Bookings
Distribution Total Market Sabre Share
Channel 2000 2004 2000
Traditional
Travel 56% 41% 40%
Agency
Consumer
Agen
Online 7% 13% 46%
cy Corporate <1% 7% 67%
Online
Agency 63% 61%
Subtotal
Web sites
6% 11% 40%
Suppl 28%
31% 19%
ier Reservations
Supplier 37% 39%
Subtotal
Source: Industry data and Sabre
challenges to booking online
what ?
are the objections
 “always booked over the phone”
 “we like talking to our travel agent they
know all our special needs”
 “our agent is so nice! ”
 “it takes too long”
 “the system does not have our special
fares”
 “I can’t find the information I need”

 Implementation is more complex than it appears

overcoming the objections
getting to
yes
 Realising and proving the benefits of an on line tool requires
work and commitment
 grasping the vision, not just tick the RFP box!
 planning
 adequate promotion and support
 recurrent training

 Simplify travel polices and order processes to match the

work flow of the online tool

 Senior management buy in is essential to champion the use

of the new online booking method
 restate the online benefits
 The ROI does make sense
 e-procurement of travel is the logical next step

 Give corporates a tool to drive:

 Compliance with company
travel policy
 Direct travellers to preferred
suppliers
 Utilise negotiated and contract
rates
 Select alternative itineraries
with lower airfares
future
 sky high adoption

what ?
is achievable

49%
adoption
amongst GetThere’s
top
20
customers
 summary
 Sabre is making significant investment to extend its
presence in the travel value chain

 The travel process must become

‘traveller’ rather than transaction
focused

 Corporate Booking Tools

 Today - gradual progress
 Tomorrow - sky high adoption
thank
you
hamish.broom@sabre.com