1. Indirect vs Direct

2. Direct brands are slow Innovation is limited by Red tape
Internal thinking
Lack of collaboration
Restricted access to data / inventory
> Has the latency of direct brands helped to fuel intermediary growth?

3. Indirect - consumer benefits
Strong Value Proposition
Price / product Comparison
Global Reach
Simplicity in booking
Particularly relevant in fragmented verticals
> Indirect is here to stay

4. Indirect - business benefits
Distribution
Intermediaries are a highly productive channel
Dominate search / acquisition
Instant tap to fill inventory
> No direct vs indirect – More efficient channel vs non?

5. Indirect – real costs Distribution costs
High commission on hotels / cars + GDS fees flights
Consumers pay the price
However are true direct costs really understood
> Are there hidden costs to direct acquisition? 1st time round indirect is cost effective. How do you hook customers in beyond that?

6. How are brands fighting back?

7. 1. Direct proposition Tangible consumer benefits
Hilton: Stop clicking around (book + join)
Car rental: Touchless access
Flights: Merchandising of extras & fare bundles
> Is the obsession for direct bookings a result of the intermediary monopoly and high distribution costs?

8. 2. Loyalty / data Customer ownership
Power struggle: Direct vs Intermediaries
Intermediaries looking beyond Acquisition
Data and customer ownership is key
> Direct brands need to protect the conversation across the entire journey: Loyalty & upsell

9. 3. Additional services Customer access
Ryanair: Deeper integration with ancillaries
Airbnb: Expansion into tours / flights
Airlines: Upsell of own services
> Direct brands are extending their product range to compete with OTAs

10. Will this shift the needle?

11. Technology Improved access
Blockchain: democratise data & inventory. Free thinking!
NDC / APIs: Make indirect semi direct
Tech to support direct or indirect proposition
Anticipate behaviour of next generation
> Unless the high barriers to entry into travel are removed innovation will be stiffled

12. Conclusion No longer about direct vs indirect (neither going away)
About direct interaction with end consumer
Getting access to data on consumer
Merchandising power through any channel
Comparable cost of sale (ROI will determine)
Multiple channels will drive innovation