Whats The Next New Thing

1
Whats The Next New Thing?

• Association of Corporate Travel Executives
• Vancouver
• Tom Wilkinson
• Sr. Director, Global Agency Solutions
• Travelocity Business
• September 22, 2004
• 330 400 PM

2

• History of Technology in Travel

Large companies widely deploy online
Online leisure travel sites
First GDS launched
GDS rules expire
First corporate online booking tools
Online agencies join corporate market
Integrated Fulfillment Centers launched
3

• Online Booking Growing Rapidly
• PhoCusWright U.S.Travel Market By Channel

4

• Online Adoption Rates Increasing
• PhoCusWright Half Of All Corporate Bookings
  Online By 2006

2003
2006
35
48
52
65
5
Why Is Corporate Online Travel So Popular?

• People are more comfortable with the Internet
• Amazon.com, EBay, online banking, corporate
  intranets, leisure travel sites
• Economic conditions
• Implementation of corporate cost-saving
  initiatives
• Proven cost savings
• 40-60 lower agency service fees
• 15 lower airfares via choice/policy/preferred
  suppliers
• Proven time savings
• Generally takes up to 15 minutes less to book
  online than to work with an agent over
  phone/fax/email

6
Corporate Booking Options
Traditional Travel Management Companies (TMC)
Suppliers
Corporation
Internet Travel Management Companies (ITMC)
7
Emergence of ITMCs(Internet Travel Management
Companies)

• Opportunities
• Full-service corporate travel agencies -online as
  well as live agents
• Aggressive pricing -- 5 online and 20 phone
• Integrated discounts for companies
• Steeply discounted supplier deals (merchant)
• Discounted deals with flexibility (corporate
  rates)
• Technology focused
• Challenges
• Need to replicate traditional travel management
  expertise
• TMCs also have technology expertise

8
Integrated Fulfillment Technology
Customized Online Booking Site
Online
Mid-Office
Non-GDS Content
Your Travelers
Offline
Phone CallEmail Routing / Agent Desktop
Agent Specialists
9
Global Support Considerations

• Regional Service Centers
• Canada
• Latin America
• Europe
• Mid-Office File Finishing
• Ticketing
• MIS Reporting

10
The Future

• Agency of the future not only offers clients
  online, but delivers better phone service using
  technology
• TMCs and ITMCs will have different content that
  they negotiate for their customers larger
  agencies advantaged
• Future cost-savings opportunities
• Supplier discounts and deals
• Post-booking changes online (results in lower
  agency service fees)
• Online meeting planning

11
Whats The Next New Thing?Questions

• tom.wilkinson_at_travelocity.com