China Online Agency Roundup

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China Online Agency Round-up China Travel
Distribution Summit December 3rd, 2009
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• Hi. Im Brett Henry.
• _at_BrettHenry

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You Already Have a Social Media Strategy
Travel, Communication and Marketing
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(No Transcript)
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• Who is Abacus?

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JV Between Asias Strongest Airlines and Sabre
ABACUS Holdings
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• I am going to talk about online travel
  distribution in China

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Everything I am about to say could be wrong
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1. Chinas online travel market is experiencing
substantial tailwinds
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Online travel market has grown through the Global
Financial Crisis to 8B in 2009
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2. Online travel agencies are capitalizing on
weak supplier direct capabilities and hotel
market fragmentation
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Online Agencies are and will continue to be the
dominant force in the online market
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3. Significant efficiency gains are still
available and could turbo charge OTA growth
business advantages in the medium term
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Marketing and acquisition are automated but
operation still largely manual
Airline / Hotel
Phone fax
Website
Call Center
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Traveler
Manual
Automated
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4. MetaSearch is working managing the marketing
and acquisition without the operational
complexities
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• Something here about size of metasearch market

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• Something here about size of metasearch market

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5. Ctrip is an investors dream
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Ctrip downturn performance...
Net Income
Revenue
Marketshare
80
47
60
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For internal use only
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Valuation shows strong investor growth confidence
7B
5B
Market Cap
2.9B
217M
Revenues (2008)
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For internal use only
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6. Expedia is focusing leading in travel UGCand
positions in metaseach and full service online
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Major travel brands unique visitors per month
TRANSACTION INTERMEDIARY
MEDIA INTERMEDIARY
SUPPLIER-DIRECT
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Expedia downturn performance...
Net Income
Asia Hotel Growth
Revenue
80
852M
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??,??????
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For internal use only
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What to expect in China

• Investment focus in China over the next 2 years
  (50M USD)
• Media - DowDow Kuxun target to be the largest
  user review site in China with 10 mil users
• Booking - eLong is Expedia in China and will
  continue to be our only transactional play, CEO

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7. Dont try to be Ctrip
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Are hotel focused sites trying to emulate Ctrip?
Global hotel-only players are pushing into China
Local hotel-focused sites have expanded their
offering
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8. Ctrip (or Qunar, or Dao Dao) is unstoppable
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Abacus on Social Media
Connect to us on Facebook! www.facebook.com/Abacus
Intl
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Thank You