Post on 21-Dec-2015
Sandy DhuyvetterExecutive Producer and Host
How the Internet is How the Internet is constantly constantly morphing from a morphing from a discount inventory channel to a robust discount inventory channel to a robust Value Added ChannelValue Added Channel
and what you can do about it.and what you can do about it.
Copyright © 1998-2004 Celestialink LLC.TravelTalkRadio.com, TravelTalkNews.com, TravelTalkTV.com,
ToursTalkRadio.com, ToursTalk.com, TourTalkRadio.com
BackgroundBackgroundEvolution and the migration to the TRAVEL IndustryEvolution and the migration to the TRAVEL Industry
Pioneer: Silicon ValleyComputer Graphics1982
Registered: Travelworld.comTours.comSightseeing.comTravels.comConferences.comConventions.comVacations.comGroceries.comBoating.com . . . Over 30 prime names1994
Developed:3 of the first 5
E-commerce Web sitesin 1994-95
Speaker at Travel IndustryAssociations about Internet
Technology starting in 1994
Produced: First CVB site - Santa BarbaraFirst Motorcoach site with Tour schedulesfor 500 members of American Sightseeing Assoc.
Creativefor George Lucas1977 – 1979
Multimedia Company1986
Founded
Multimedia Company
Sold to iXL . . . went Public in 1999
Merged
With 25 engineers in San Diego in 1996 renamed the company to CommerceWAVE
BackgroundBackgroundEvolution and the migration to the TRAVEL IndustryEvolution and the migration to the TRAVEL Industry
Founded: Celestialink LLC in 1998Travel Network of News
Travel Talk Radio – Travel Talk New – Travel Talk TV
Founded: 1986
Tourism businesses are among the most service-oriented Tourism businesses are among the most service-oriented businesses in the world. Travel is among the most businesses in the world. Travel is among the most prosperous industry in the electronic marketplace.prosperous industry in the electronic marketplace.
• What are Value-added services and programs on the Internet.
• Perceived value from the business side vs the consumer idea of value. What are the value added services and programs your Customers want.
• Examples of Value-Added programs in the travel arena.
Technology advancements offer Web businesses increasing options
Global competition is at an all time high and barriers for new entrants has never been easier.
The cry of the last decade is louder than ever!Giving Customers superior value is the best way to obtain competitive advantage
We will explore
Information Technology & Tourism, vol. 5 pp. 165-174
What are Value-added services and What are Value-added services and programs on the Internet?programs on the Internet?
• Services giving access to various forms of information about the tourism products offered on a website.
• Services providing added value to the core product demanded.
• May be related to content (information and decision supportInfrastructure (access) and context (multimedia presentations).
Service AggregationService AggregationService IntegrationService Integration
Customer CommunityCustomer CommunitySearch EngineSearch EnginePersonalizationPersonalizationPricing MethodsPricing Methods
ConvenienceConvenienceControlControlTrustTrust
From the Company perspective From the Customer perspective
Service AggregationService Aggregation• Provides customers visiting a Web site access to information and services not
directly related to the core product of the Web site. Service aggregation also allows the Web site the ability to create additional revenues.
• Google Adsense. Amazon, Yahoo, XML – RSS feeds are examples of this kind of service.
• Customers perception is: Convenience – reducing search costs.
Service IntegrationService Integration(Bundling)(Bundling)
• Provides access to a bundle of information and services that are complementary to the core product.
• Packaged Tours, bundling of transportation services with hotel lodging, a full-service travel age cy and concierge services for adventure travelers.
• Customers perception is: Convenience – Control. Same as Service Aggregation however more industry specific.
Customer CommunityCustomer Community• Bulletin Boards allowing travelers to exchange experiences, third-
party neutral information. • Customers perception is: Reduced risk associated with purchase –
giving the customer more control
Search EngineSearch Engine• Seems obvious in 2004, however it is the number one expectation of
customers. • Customers perception is: Better basis for their purchase decisions
adding convenience and control.
PersonalizationPersonalization• Gives customers preferences according to stored personal
information.• Customers perception is: Adds convenience and control to the
buying process and trust that the product is in accordance with their preferences.
Pricing MethodsPricing Methods• Often the most important determinant of consumer shopping
decisions. New methods of pricing include Auctions, Collective Volume Discounts, Reversed Pricing (i.e. priceline.com).
• Customers perception is: Increase control of the customer’s reservation price. (the max a customer is willing to pay).
TrustTrustThere exists a fundamental lack of trust between consumers and businesses on
the Web. It is associated with misuse of data, reliable product information and secure
payments. • Transaction security, personal recommendations, co-branding with a reliable alliance, personal service, someone on the phone to support the customer.
• Customers perception is: Makes customers feel they are more in control and more relaxed and less afraid thus increasing customer convenienceExamples of evolution of distressed
travel products on the Web.
• To be successful selling distressed travel products, customer service and manual management are key.
11thHourVacations.com started selling distressed travel inventory since 1996 – Unsuccessful until they added a robust search and reservation process.
• Fly and Stay built in 2001 by Scandanavia Airlines to package distressed inventory– Includes value added services along with distressed inventory.
• Airline Ticket Consolidators are probably the last to offer value added programs to their Web sites.
Examples how value some of the top Travel Sites are offering Value Added Services
Expedia
Packages
Travel Alerts
Flight Status
Driving Directions
Currency Converter
Airport information
Get deals via email
Passport information
Agents on call 24 hours
Travelocity
My Trips
Dream Maps
Travel Tools
Online Check-In
Destination Guides
Frommer’s Guides
Local Events
Passports & Visas
Airport Codes
Fare Listings
Time Tables
Traveler Reviews
Disney Travel GuidesFlightsHotelsCarsVacation Packages,SearchWrite a reviewPersonalDealsAlert Systems for customersLast Minute Deals
YAHOOTravel Guides
Flights
Hotels
Cars
Vacation Packages,
Search
Write a review
Personal
Deals
Alert Systems for customers
Last Minute Deals
Thank you!
Sandy Dhuyvetter760 753 1114
sandy@traveltalkradio.com