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Talking of Competition
April, 2004 Explain that this is the first of four sections you’ll cover in the next 1 ½ days. We’ll focus on helping you with sales of Travelport, driving adoption through planning, creating a communication plan and a training plan. Use icebreaker exercise to help them get to know one another better. First let’s talk about how you are getting sales today. What is your marketing approach and your success with that approach? Do you treat all of your potential customers equally?
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Perceived $5 pricing has many hidden extras
Assisted: domestic ($20), international ($30) Changes after departure ($20 plus airline fee) Loading negotiated rates ($500 per contract); Profile set up ($2 per profile) Primarily a consumer tool repurposed for corporate marketplace Lacks features (e.g. can't inhibit displaying out-of-policy data or inhibit vendors) Competes with consumer side for resources Consumer style marketing tactics (cookies, pop-ups) inherent in site infrastructure Can it represent and protect your interests? No control over GDS functionality Reputation for poor/arrogant supplier relationships Hotel content focuses on deals strategic to Expedia; Expedia and Hotels.com controlling the market and pricing? Inflexible All or nothing model – use it like this or else … Microsoft employees use Travelport, NOT Expedia! Describe objectives you’ll cover and ask for any additional objectives or topics they would like to cover.
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Suitable for corporate travel?
Airline ownership Airline owners will ultimately work in the best interest of airlines Is privacy of your corporate and traveler data protected? Suitable for corporate travel? No experience in the space Questionable fulfillment and service solutions; Outsourced customer service Consumer tool repurposed for corporate marketplace Will your employees be protected from spam and pop-ups? Survivability? Rapidly declining inventory status Questionable if has resources to invest in corporate space Marginally profitable with questionable business model Poor relationship with the GDS Involved in litigation Perceived $5 pricing has many hidden extras $20 assisted; $500 & up for loading of negotiated contracts Cost to corporation due to poorly enforced travel policy and lack of meaningful reporting Describe objectives you’ll cover and ask for any additional objectives or topics they would like to cover.
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Perceived $5 pricing has many hidden extras
Assisted ($15.95) Changes after departure ($30 plus airline fee) Uncertain future Difficulties in technology integration, 3 different code bases Corporate restructuring, closing of GetThere Marginally profitable consumer model, money losing corporate model Vertically integrated but fulfillment is still undefined and questionable Considered by many to be a re-branded version of the consumer site Canned Reporting – little if any room for customization Describe objectives you’ll cover and ask for any additional objectives or topics they would like to cover.
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Online Agency Pricing Comparison
Expedia Orbitz Travelocity Registration $149 No fee Transaction Fee On-line Air Unassisted (domestic & int’l) $5 On-line hotel or car unassisted $0 Assisted - Domestic $20 $15.95 Assisted - International $30 Hotel & Car (w/o air) w/ telephonic support $10 Fee for Loading Clients’ Negotiated Rates $500 $500 and up Not available Changes to Reservation between Departure and Return Date $20 – plus airline fee No fee – airline fees only $30 plus airline fees Non-Expedia air bookings (I.e. Southwest) Southwest not available Voids VIP Services Add $10 to any interaction These figures change often – before presenting to a customer check current pricing Expedia for Business – Orbitz for Business - Travelocity for Business -
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