Advertising is getting more sophisticated in travel.
The OTA’s are getting by passed to book and need to add more value.
- Expedia said at the TTI Autumn conference that 50% of traffic use their website to research and book direct
- Travel Companies are going more direct says PricewaterhouseCoopers
- Travelsupermarket and Cheapflights bigger than most travel companies online (Hitwise)
- Skyscanner.net getting funding to go global
Travel Social networks being established with advertising
There is now more consumer reviews to read then ever before
- At the PhoCusWright 07, Kevin May (Travolution) reported that Trip advisor said 80% of all hotels listed on TripAdvisor are viewed every single day
OTA’s , Social Travel Networks, Travel Meta Search Engines will consolidate
Advertising for travel companies will be much more targeted with companies predicting the buying patterns of people using data gathered from users using the consolidated websites and giving them the option of either putting them in touch or booking with the travel companies. Either way earning a fee of some kind
And then……Travel companies will acquire their distribution channels to secure distribution
Who is going to make the next move? Here are some random suggestions……..
- Expedia will buy or build a true travel social network in US / EU to supplement their portfolio – WAYN?
- TUI will make a bold move and buy/merge/be bought by Priceline or Expedia within the next 3 years to be the first mega vertical travel company.
- Opodo will change their model to include referral fees following Expedia and will be bought by Thomas Cook (who are not as strong online in flights)
- Meta search engines will consolidate - Cheapflights could be bought by Travelsupermarket
- Teletext will spun out from the media group and be bought by a company that has the technology and money but needing their travel advertising relationships
- Skyscanner.net will be bought by Priceline Europe for it's neat technology and broaden it's offering.