Challenges in driving online travel services in Russia in
comparison to Scandinavian markets
Slide 2
We are the feeling of travelling, we are freedom fighters and
we are creating a strong momondo brand in Russia.... Independent
Travel Site Meta-Search Searching hundreds of websites Travel
Hunting Tool The of Travel We love technology and have a passion
for travel.
Slide 3
History Travel search site momondo was founded by innovative IT
programmers with a passion for travel, and launched as a flight
search engine in Denmark in 2006. 16 March 2010 - momondo was
launched in Russia.
Slide 4
The obvious challenges Language Network - OTAs - Airlines -
Media Travel culture Business culture - Business rules - Strict
laws - Administration/documentation
Slide 5
Russia vs Scandinavia in some boring numbers Russia has the
biggest internet population in Europe.
Slide 6
Imagine Imagine the opportunities that arise from a market with
10 time zones, 140 million people, 200% mobile phone penetration
and 48% internet penetration. However, since this market is
expanding constantly, Russias great future has just begun. Source:
Google
Slide 7
only 12% Russians have international passports only 10% (15
million) have traveled abroad at some point of time about a third
chose the internet to book their tickets Only 5 million people in
Russia using online travel services Source:
http://www.tourism-review.com Online travel in Russia
Slide 8
E-travel market potential More independent travelers More
frequent travelers due to increase in income Education and
transparency in holiday planning
Slide 9
Big opportunities come with BIGGER CHALLENGES!
Slide 10
E-Travel market challenges Customers: Not used to online
payment Prefer package tours from tour operators People travel 1-2
times per year to limited amount of destinations Language barrier
Competition: Generally, the travel site market is characterised by
intense competition. The airlines own booking engines and well
established OTAs grab part of the market as well.
Slide 11
Denmark: Russia: Travel habits
Slide 12
Meta search market challenges Customers: Low awareness of meta
search Trust issues Market: Big amount of OTAs How do we deal with
it: Educate our customers Trustful OTAs with a good reputation
Exciting brand and supporting products
Slide 13
momondos users in Denmark vs. Russia. DenmarkRussia Who are our
customers?
Slide 14
Who are they? They are smart and independent They know exactly
what they want to buy and which price they are ready to pay They
dont need recommendations and they do not trust advertising Their
best friend and relied partner is Internet - not TV Generation
Y
Slide 15
TV is widely used as a brand channel in Scandinavia for online
travel brands.
Slide 16
How to attract the smart-asses? Online marketing Skilled local
online marketers Learn more about your customers Social Media
Travel bloggers Reviews of our website Product Listen to our
customers Develop the best product on the market Surprise them Make
them our best friend Dont oversell. Remember, they know the
price!
Slide 17
Social Media 82% of Russian users are registered on Social
Network Sites!
Slide 18
Denmark heavily increase in mobile. Traffic Source
Slide 19
Russia increase in both mobile and desktop traffic. Traffic
Source
Slide 20
Conclusions Russia is a very challenging and unique market Need
to focus more on Online Marketing, Social Media, travel bloggers in
Russia Growth of independent travelers in Russia vs Scandinavia
Meta search is becoming more widely used in Russia
Slide 21
momondo is looking forward to the challenges, to develop the
collaboration with our Russian partners and to inspire more
Russians to travel! momondo loves Russia! Thank you!