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Online Travel Agent(OTA)-Booking.Com

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by

shuai chen

on 19 March 2015

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Transcript of Online Travel Agent(OTA)-Booking.Com

Executive summary
Why Online Travel Agent
Threat of new entrants
(+)Large capital investment required in system infrastructure

(+)Limited access to GDS

(-)GDSs are challenged by GNEs
S.L.E.P.T Analysis
MSCI 375 E-BUSINESS
Online Travel Agent (OTA)
Why Booking.com
Choose of frameworks
Porter five forces analysis

S.L.E.P.T(Social,Legal,ECON,Political,Technological)
Introduction of OTA-Booking.com
Why Booking.com
Frameworks choosing
Porter analysis
S.L.E.P.T analysis
S.W.O.T conclusion
Group peer-review
Porter's five forces
Porter's
5
Forces
Threat of
substitutes
Bargaining
power of
buyers
Degree of
rivalry

Threat of
new
entrants
Bargaining power of
suppliers
Bargaining
power of
suppliers
Degree of rivalry
(+) A few large firms in the OTA market, owned by established GDSs
Threat of substitutes

Bargaining power of
buyers
Social
Social,

Legal,

Economic,

Political,

Technological
Legal
Social
Seasonal sales
Trends in popular destinations
Available in 42 languages (helps increase share in all these markets)
Use of social media for promotion and dealing with customer issues
Key thinking patterns which influence consumer behaviour
Trends show consumer spending power is increasing (Lloyds, 2015)

Legal
Consumer protection laws
In November 2014 criminals were able to obtain customer details through website
Booking.com made changes to counter this (data can only be accessed from computer connected to server)

Economic
Political
Technological
Economic
During economic downturn cheap package holidays become more popular
People (particularly in UK) tend to make trips to home country as opposed to abroad
During economic growth people will choose luxury hotels and a variety of destinations – something for Booking.com to consider for the future

Political
Business is affected by political stability of countries they operate in
Booking.com affected more than most by this given the large number of countries it operates in
Customers will not want to stay in politically unstable countries
Ukraine example
Must also abide by the laws of the countries it operates in

Technological
Now have app for all platforms – mobile bookings grew 160% in 2014
Simplicity and immediacy of finding info, clear graphics and visibility
Numerous messages encouraging conversation – expert at creating booking anxiety e.g. ‘last booking was 10 minutes ago and 2 others are looking at this room’

S.L.E.P.T Analysis
The leader of OTA industry
Typically represent the OTA industry
World wide E-business with good reputation
Specialization
Industry that is expanding online
Companies in this industry have to deal with a range of factors when deciding on their strategic approach
SHUAI CHEN(33229708)
JUNLUN FU(33256462)
YINGHUI TANG(33238634)
JIAO TAO(33238685)
JACK SCOTT(33132933)

Booking
.com
Established in 1996
Booking.com B.V. is based in Amsterdam in the Netherlands
The world leader in booking hotel and other accommodations online
Website is available in 42anguages
With over 17 years of experience and a team of over 8,000 dedicated employees in 135+ offices worldwide
About Booking.com
About services
Accommodation Type - Hotels, Apartments, Villas, B&Bs, Resorts
Region - North America, South America, Europe, Middle East and Africa, Asia and Oceania
Traveler Type - Solo travellers, Couples, Familiers, Groups
Nearly 20 million real, relevant and recent customer reviews
Customization
(+)Suppliers anxious to sell unsold room
(+)Most small hotels have limited infrastructure for their own online distribution
(-)Fierce competition within OTAs increases Bargaining power

Booking
.com
(+)Tranditional travel agencies and travel management companies infrastructure tied to GDSs

(-)Individual consumers have market power can switch to new OTAs or other providers anytime

(-)Book from traditional agents
Booking
.com
Online Travel Distribution Value Chain.
(-)Book directly from travel supplier
(+)inconvenient and difficult to get same level of information
Threat of new entrants

(+) Many competitors offer search but have no direct booking capabilities as requires GDS infrastructure

Conclusion-S.W.O.T
Peer review
Thank you
Strengths:
Brand loyalty
World wide marketing
More than 42 languages available, 24/7 customer service in native language
Diversity accommodations choosing
Payment detail cookies

Weaknesses:
Security system is incompletely(eg: credit card security problem)
Payment method is limited (eg: only available on credit card)

Opportunities(new productions and new target markets):
villas.com
UK market expand
U.S market (Booking.com Launches ‘Booking.yeah’, Its First-Ever Brand Campaign, Created for the U.S. market)
Horizon alliances (eg: Airline website, travel plant website)

Threats:
Hotels reserve directly
Traditional travel agency


References
https://econsultancy.com/blog/64681-is-booking-com-the-most-persuasive-website-in-the-world/
http://www.tnooz.com/article/is-booking-com-the-travel-king-of-google-adwords-infographic/
http://www.wordstream.com/articles/google-earnings
www.booking.com
http://yalinhan.blogspot.co.uk/2013/04/both-booking.html
http://www.onlinegds.com/index.php/en/gds-fees-and-charges.html
http://www.businesstravelnews.com/Business-Travel-Research/Vision-2020--Old-Dogs,-New-Tricks-And-The-Future-Of-GDSs/?a=btn
Full transcript