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Expedia Travel Company

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Amina Iftikhar

on 3 December 2015

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Transcript of Expedia Travel Company

Expedia Travel Company
Company Profile
B2C company
Transactional E-Commerce Site
Relationship building site
Launched in 1996 by Microsoft.
Expedia.com have online services across 30 countries.
They operate cruise ship centre stores in Canada, US, Mexico and Puerto Rico
Destinations: USA, Europe, Asia, Middle East, Canada, Australia, Caribbean, Indian Ocean
Offline (Expedia cruise ship center) as well as online (expedia.com)
Company Mission
'To revolutionise travel through the power of technology’
Who are we?
Where are we now?
The Macro - Environment
Political / Legal
Social/ Environmental
Porters 5 forces
Competitive rivalry within the industry
Bargaining power of suppliers
Bargaining power of customers
Threat of new entrant
Threat of substitute product
Digital Marketing Effectiveness
Internal Audit
Destination sites and
Search engine optimisation
Scenario A or B?
Scenario A
Scenario B
To engage a new target audience/segment
with pre-launch, launch and 3 months post
launch of an existing product of
your choice?

To attract
on line sales from a new market a 12 month plan?

Photography Market
Expedia's Current Services
Paid Search
Paid Search
Organic Search
Expedia.co.uk comes third in organic search. 'Book a Holiday' is the most common searches for travel.
Key Word Search
People Shaped Travel!
Search Intermediaries
Back Links
Operating Results
How Effective are we?
Digital Apps
Sell offers using advertisements and promotions
Save through sponsorship deals
According to the site explorer majesticseo.com:
Expedia has 9,890,844 external backlinks to its site.
Communicate brand awareness through Social Media Channels
Added Value; Offered through trusted reviews
Provide a unique travel package to keep existing customers and attract new customers.

Expedia uses both paid and organic search. Keyword search for expedia ranks first compare to its competitors.
In terms of keyword search on google, Expedia have been seen to come below their competitors however their search volume and consumer interest is higher.
Social Media Presence
Intermediaries and Media Site
Online Value Proposition

- Data Protection and Privacy Law;

- Brand and Trademark Protection;

- Information Accessibility;

- Apps; Expedia offer the option of booking flights and holidays on their mobile app's,
available on apple and Android.
- Cookies
- Payment Methods

- In Great Britain, 21 million households (83%) had Internet access in 2013. (ONS, 2013).
- Consumer Trends Survey conducted by ABTA revealed that 49% of people booked holidays online (ABTA, 2013).
- Expedia Inc. offer social, environmental and economic help across the globe.

Partnership and Affiliates
Marketing Mix Effectiveness
Customer Insight
- Largest online travel company
- Online offers, deals vary according to season
- over 30 sites across the globe from the UK to Singapore
- Online and app promotions, deals, promo codes and packages
Physical Evidence
- YouTube channels, social media interaction, Holiday Ranking.
- Fast Online booking, download the app, use social media.
- Single, couple, families and business
- Value of customer to the organisation.
- Relationship and knowledge of customer throughout the company
- Customer characteristics in buying process/ purchase decision.
- Continued dialogue with customer to understand their needs, and build a relationship.
- Building and maintaining customer trust.
cost (high or low)
Legislation- laws regarding setting up in different countries.
consumer loyalty
cost comparison of product with competitors.
Risk of current customers being attracted to a new product in the market- i.e, holiday apartment rentals - Housetrip.
- Growth strategy plan for customer acquisition in emerging markets.

- Recovery phase from the post-financial crisis

make up of the cost of supplying the service.
scale or volume of importance in transaction.
potential of buyer to become provider.
who are our customers?
Relationship of buyers and suppliers.
product provided by the suppliers. (service)
Send E-mail's to remind visitors to continue any unfinished transactions
Social CRM; Mobile optimised site with mobile payment options
Feedback Tools for Lead Generation
Willing to compare prices to other sites get the cheapest deals.

Customer Service and Support
Direct interactions through phone calls and direct emailing
Social CRM; Mobile optimised site with mobile payment options
Personalised website - personal trip guide
Keeping relationships with existing and new customers through social media, by creating brand awareness.

Competitors; namely Thompson own rights to other forms of marketing; Television Channel.
Competition- hotels and other travel sites may compete in prices
Negative comments on social media sites and blogs.
Have to uphold their brand reputation- as a major online company they have to compete with competitors with prices. Economy of scale. How long can they stay cheap for? And how cheap?

Existing products/services - Online holiday packages at a cheap purchase price
Current customer base - wide range of customers using our services.
The current and in existing brand distribution.
Everything is online, easy access and cheaper for our customers and our company.
Rank highly in search traffic and key word search.

Brand perception, i.e, virgin holidays has physical offices while Expedia doesn't.
Technology and skills may be a weakness, for example when the web crashes, the full 5 star experience for the customer is automatically lost.
Lack of face to face interaction - advanced technology isn't always a good thing!
Expedia promote their company through paid advertisements on Twitter and Facebook
They acquire Q.R code services to direct potential customers to the Expedia website, building site traffic.
Expedia have partnered with companies and hosted competitions, giving contestants the opportunity to win holidays and credit to use on Expedia travel.
Affiliate Partnerships

Launch value-added services; video streams of services, 360° Navigation Previews
Customer Service Avatar
Generating New services in addition with the existing ones.
Gap in the market: Special memories for everyone - Leaving no one out!
According to statistics the average photographer makes between $14,000 and $54,748 depending on event (starephotography.com, 2013).
Wedding photography is the largest section of the industry.
Made up of Free lancers around main destinations.
Shift from old school analogue photography to digital photography.

Cost of investment
: £32,984,811
Operating Profit/ net profit
: £57,105,000
Return on capital
: 55.90
Return on Investment
: 7.3
Annual sales
(2013): £13,017,000
Profit margin
(2013): 15.1
Profit margin shows that 15.1% of the sales price is profit.
(Experian, 2013)
Expedia currently offer;
- Car Rentals
- Concierge Service
- Cruises
- Hotel Reservation Systems
- Business Traveler Requirements

Build awareness on other sites
James Manktelow & Amy Carlson.. (2012).pages/article/newTMC_05.htm. Available: http://www.mindtools.com/pages/article/newTMC_05.htm. Last accessed 20/12/2013.

Don Peppers and Martha Rogers, Ph.D.. (). The Five "I"s of One-to-One Market-ing.Available: http://www.crmodyssey.com/Documentation/Documentation_PDF/The_Five%20_I_of%201-to-1_Marketing.PDF. Last accessed 12/12/2013.

Expedia. (2012). Expedia annual report. Available: http://files.shareholder.com/downloads/EXPE/2895868463x0x659394/517E31CE-FF79-42C0-899C-DF6831888E54/EXPE_2012_Annual_Report.PDF. Last accessed 13/12/2013
Expedia. (2013). Expedia cares. Available: http://careers.expedia.com/content/expediacares/. Last accessed 12/12/2013.

Office Of National statistics. (2013). Internet Access - Households and Individuals, 2013. Available: http://www.ons.gov.uk/ons/rel/rdit2/internet-access---households-and-individuals/2013/stb-ia-2013.html. Last accessed 23/11/2013.

Expedia. (2012). Expedia.co.uk Privacy Policy. Available: http://www.expedia.co.uk/p/support/privacy#info_you. Last accessed 20/12/2013.

international advertising bureau. (2012). introduction to affiliate marketing. Available: http://www.iabuk.net/video/introduction-to-affiliate-marketing. Last accessed 23/11/2013.

Paul Boag. (2012). SWOT analysis. Available: http://boagworld.com/business-strategy/swot-analysis/. Last accessed 22/12/2013.

Key Note. (2013). PEST Analysis. Available: http://www.keynote.co.uk/market-intelligence/view/product/10804/business-travel/chapter/8/pest-analysis. Last accessed 23/12/2013.

Key Note. (2011). Travel Agents & Overseas Tour Operators Market Report 2010. Available: http://0-www.keynote.co.uk.emu.londonmet.ac.uk/market-intelligence/view/product/2420/travel-agents-%26-overseas-touroperators?highlight=Online+Travel+Agency&utm_source=kn.reports.search. Last accessed 1/01/2014.

Why Expedia?

Expedia is purely online
It's reliable, fast and easy and great value!
Personalised webiste - 'Your Personal Trip Guide'
"The Expedia Promise is the foundation of our relationships with customers,"
Aims to provide personalized service, the latest technology and the widest selection of vacation packages, flights, hotels, rental cars, cruises and in-destination activities, attractions, and services. With the Expedia Best Price Guarantee.

Bounce rate: 30.6%
Search Traffic: 19.4%
Visitors (UK): 72.7%
Average time spent on site: 5:12 mins
Page view per visit: 4.45
Thomson Holidays
Bounce rate: 39.6%
Page views per visit: 4.58
Daily time spent on site: 4:55 mins
Search traffic: 34.1%
Visitors: 74.8%
Thomas Cook
Bounce rate: 36.4%
Page per view: 5.06
Daily time spent on site:5:06 mins
Search traffic:40.2%
Visitors: 71.1%
Virgin Holidays
Bounce rate: 39.4%
Page per view: 4.10
Daily time spent on site: 4:01mins
Search Traffic: 50.7%
Visitors: 77.3%
Has the lowest bounce rate in comparison to its competiors. Customers spend more time on expedia.com than other sites.
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