1. The Changing Face of Travel Distribution

2. Channel planning: harder than tri-dimensional chess? Dimensions to consider: Reach Ease of comparison Cost of sale Brand reinforcement Relationship potential Customer preferences Customer satisfaction Product type Decision context Buying process stage Technology choices Scalability

3. Information economics affect channel strategy

4. Online travel agents’ value Value to customers + Price + Choice + Control + Information + / – Customer service – Advice – Payment options Value to suppliers +Efficient reach +Customer access +Market demand feedback +Sales expertise / innovation +Outsourced customer support +/ – Quality of representation –Loss of relationship control –Commissions / fees

5. Web is widely used source of information % using... for any research NB data relates to package / accommodation purchases

6. Web’s role in holiday planning NB data relates to package / accommodation purchases

7. Web becomes part of the process % of adults Base: All adults who have taken a holiday since May 2002, July 2003

8. Browsing and booking trends Base: Adults who took a holiday in the previous 12 months % adults who cited PC Internet as method of … for last holiday purchase

9. Brochures’ role in holiday planning NB data relates to package / accommodation purchases

10. Agency staff role in holiday planning NB data relates to package / accommodation purchases

11. TV’s* role in holiday planning * programmes/ads only NB data relates to package / accommodation purchases

12. All Holiday and VFR trips taken by UK Nationals (000) All Leisure Travel 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0

13. Full Flight-based International Independent Trips (000) Leisure air travel subsegment forecast 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

14. Leisure travel channels ecosystem - 2003 Independent high street travel agent Mass market Niche Low High Shopper confidence Seller focus Tour operator owned travel agent Lates specialist eg Teletext, Cheapflights, Bargainholidays Direct supplier sites eg Holiday-inn, easyjet, BA.com General online travel agent eg Expedia, Opodo, Travelocity, ebookers Ideas aggregator eg Lastminute.com Specialist tour operators Destination portals TV travel channel

15. Channel shifts 2004-2007 Mass market Niche Low High Shopper confidence Seller focus Independent high street travel agent Direct supplier sites eg Holiday-inn, easyjet, BA.com General online travel agent eg Expedia, Opodo, Travelocity, ebookers Ideas aggregator eg Lastminute.com Specialist tour operators Destination portals Tour operator owned travel agent Lates specialist eg Teletext, Cheapflights, Bargainholidays

16. TV travel channel Leisure travel channels ecosystem - 2008 Independent high street travel agent Mass market Niche Low High Shopper confidence Seller focus Teletext, Cheapflights, Bargainholidays Direct supplier sites eg Holiday-inn, easyjet, BA.com Specialist tour operators Destination portals Ideas aggregator eg Lastminute.com General online travel agent eg Expedia, Opodo, Travelocity, ebookers Tour operator owned travel agent

17. Conclusions Take the customers’ perspective Segment the online opportunities Work on guided selling, rather than taking orders Mine the web/search activity data as hard as you can