subsidiaries: Travelocity Europe 50%, Zuji.com Singapore.

1

Information Technology and Tourism
Illustrated on theexample of
University of Trento4th December 2001
2
Structure

• company description
• content
• competitive advantages
• market position
• business model / income
• partnership model
• customer service / assistance
• technical aspects
• customer database
• advertising
• strategy
• conclusion

3
Company Description

• established March 1996 incorporated September
  30th, 1999
  
• name based on travel and velocity
• global headquarters Dallas/Fort Worth, Texas
• subsidiaries Travelocity Europe (50), Zuji.com
  Singapore
  
• employees 1,300
• stockmarket NASDAQ
• market capitalization 1.06 billion US
• ownership 70 Sabre Holdings Corp. / 30 public
• travel bookings 2.5 billion US (1-3Q 2001)
• net profit 4,162 million US, 0.20 US per share
  (1-3Q 2001)
  
• the world's leading online B2C travel site

4
Content

• Products
• flights
• hotels
• car rental
• vacation packages
• travel content
• Functions
• information
• advice
• price comparison
• booking

5
Competitive Advantages

• market leader
• global reach
• diversified revenue mix
• high advertisement sales
• key alliances
• high developed customer service
• deep technical ressources
• broad mobile commerce alliances
• large customer database

6
Market Position

• market leader 34 of online gross bookings in
  2000 (PhoCusWright)
  
• booking online only in USA, CAN, UK, D
• global reach specific pricing features for more
  than 90 countries
  
• more than 19 million airline tickets sold unique
  bookers 9.2 million (until 3Q 2001)
  
• unique visitors per month 7.5 million (Sept.
  2001)
  
• lookers to bookers conversion ratio 7.9 (3Q
  2001)

7
Business model / Income

• transaction service revenues
• air
• non-air
• advertising revenues
• banners/buttons
• sponsorships
• promotions
• member e-mail messages
• other revenues (e.g. service charges)
• no fees for website access

8
Partnership Model

• exclusive provider of travel booking services for
  AOL Inc. (AOL, Compuserve, Netscape), Yahoo,
  Excite and others
  
• ? revenue60 direct Travelocity40 portal
• MasterCard Travelocity.com World MasterCard
• Travelocity magazine partnered with AA
  Publishing
  
• M-Commerce providers
• airline-partnerships

9
Customer Service / Assistance

• direct
• FAQ
• e-mail
• customer call center in USA, CAN, UK, D(20-25
  answered by integrated voice response)
  
• customer based
• message boards
• traveller reviews

10
Technical Aspects

• Sabre bookingsystem
• best fare finder lowest fare located 80 of the
  time (Study by Topaz International)
  
• M-Commerce
• cell phones
• handheld devices / PDAs
• pager / notification solutions

11
Customer Database

• 30.4 million registered members (3Q 2001)
• addresses
• demographics
• shopping habits
• travel preferences
• used for personalized activities
• direct mail
• newsletter
• targeted advertisements
• upsell

12
Advertising

• online (e.g. affiliate programme)
• direct mail
• spot radio in key markets
• television
• airport advertising in select airports
• travel print publications
• own magazine
• promotional partnerships
• credit card

? Budget 50 million US to promote the brand
(2001)
13
Strategy

• leverage strong brand, customer database and
  alliances to drive visitors to the site
  
• develop new products and tools with innovative
  technology to increase bookers
  
• leverage advertising revenue sales through strong
  in-house team and alliances
  
• develop new revenue streams through new marketing
  initiatives and international joint ventures
  

14
Conclusion
Does this positive development go on?