VETBusiness Partnerships on Workbased learning and Apprenticeships VET
VET-Business Partnerships on Work-based learning and Apprenticeships VET 2 Business Curriculum: Digital Competeces Module name: Social Media Channels & Νetworks in Hospitality & Catering sector Module code: VET 2 B_DC-2 Unit name: The new Networks in Hospitality & Catering Sector Unit code: DC 2 -2 Author: DGIHK Project Number: 585211 -EPP-1 -2017 -1 -EL-EPPKA 3 -VET-APPREN
Aims and Objectives • The aim of this presentation is to introduce learners to the business case of the company Expedia (https: //www. expedia. ie) • The objectives of this presentation is to familiarize learners with the company, to highlights its main competitive advantages, the basic operating idea and its revolutionary way of business. The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
Learning outcomes • At the end of this presentation (or section), you will be able to: – Know what does Expedia do in terms of business – Understand the macroeconomic factors of the company – Understand how Expedia operates – Identify the value proposition of the travelers and the travel agencies – Understand how the basic digital marketing principles can be actually applied The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
Table of contents • Company Introduction • PESTEL Analysis • Value Proposition – Travellers – Travel Agencies • Key activities The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
Company Introduction What is Expedia? • Expedia. com is a website used to book airline tickets, hotel reservations, car rentals, cruises and vacation packages. Milestones • 1996: Expedia launch, as a division of Microsoft • 2001: Became a public company • 2001: USA Networks, Inc. bought Expedia from Microsoft. • 2003: USA Interactive, renamed Inter. Active. Corp, acquires the remaining shares of Expedia for an estimated $3. 3 billion. • 2010: American Airlines and American Eagle Airlines, were deleted from Expedia's site. The decision resulted from a dispute over the degree of access to the site's customers. • 2014: Expedia started accepting bitcoins. • Expedia Inc. partnered with Citigroup and created the Expedia+ card whose members can earn bonus points and earn benefits and priority customer service through the website. • 2015: Announced the relocation to Seattle • 2016: Expedia Group are the top grossing company in the travel industry The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
PESTEL Analysis What is a Pestel Analysis? A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental (external marketing environment) factors that have an impact on an organisation. The result of which is used to identify threats and weaknesses which is used in a SWOT analysis. What it stands for? P – Political E – Economic S – Social T – Technological E – Environmental L – Legal The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
PESTEL Analysis on Tourism Sector Political: • Terrorism acts, wars and change of political status (like Brexit) influence the market badly • Political instability does not help • Globalisation and political agreements has made a positive impact in tourism Economic: • Financial crisis affects tourism • Oil price fluctuations affect ticket prices • Internet has made “obsolete” several tourism professions like travel agencies The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
PESTEL Analysis on Tourism Sector Social: • Social Media, Trend Influencing and Online Reviews has “upgraded” or “downgraded” several tourism companies, cities and even countries in terms of visiting • Increasing preference of consumers and business to make their travel purchases online • Immigration & Religion affect tourism differently depending on the situation Technological: • Internet, Mobile advertising & purchasing has revolutionized the industry • The fact that easier the collaborating companies can access Expedia has increased rapidly the competition • Sharing community (Uber, Airbnb etc. , ) The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
PESTEL Analysis on Tourism Sector Environmental: • Pressure for airlines to improve fuel efficiency and noise pollution • Eco-friendly businesses became trendy • Global warming (climate change) can create severe weather conditions which may affect negatively tourim Legal: • GDPR issues affect the way of business • Airline industry are regulated more strictly • VISA Restrictions may affect tourism The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
Value Proposition – Travellers • Low prices • Amount of choice • Reduction of risk due to the verified ratings & reviews • Customer service (over 55 m calls per year) • Useful app • Useful travel content The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
Value Proposition – Travel Agencies • Incremental revenue: fill otherwise emptystaying rooms • Ability to react: Hotels can ramp their supply to Expedia up and down * • Global reach: helps hotels to reach global markets • Risk reduction**: no booking, no commission • Drive additional traffic to the hotel’s website (“billboard effect”) The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
Key activities 1. Enhance positive non-direct network effects and customer experience by increasing: • the number of bookable accommodations at an increasing amount of locations • the types of bookable properties (variety) • useful content, such as user reviews, pictures, etc • and by enhancing customer experience 2. Increase the value of the platform through technological innovation (few examples): • Expedia skill for Amazon’s Alexa • Expedia bot on Skype • Expedia bot for Facebook Messenger • Expedia Artificial Intelligence natural language processing The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
Key activities 3. Observe industry landscape for new entrants and adjacent industries for new/potentially disruptive approaches (e. g. meta search engines) 4. Observe the moves of the known direct competitors 5. Stimulate demand through promotions/notifications to subscribers 6. Provide great customer support 7. Improve the websites and the app based on the captured data and evolving technology, trends and feedback 8. Improve conversion rates The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
Key activities 9. Accompany the micro moments on the traveller’s customer journey 10. Search engine visibility: Maintain top rankings on paid advertising channels and improve on organic search rankings 11. Observe the moves of hotel chains who want to increase direct bookings 12. Grow loyalty programs to counter the hotel chains’ loyalty programs and to obtain valuable customer data 13. Develop new travel-related services to grow partner and customer base 14. Observe regulatory landscape and moves of lodging lobbying groups The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
Synopsis • This presentation was about the business case of Expedia, including the value proposition of travelers and travel agencies • Which are the macroeconomic factors of the tourism industry • Short introduction of how online and digital marketing has revolutionized the tourism industry The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
List of references • Fenfort University, Expedia, Inc. PESTEL & Environment Analysis http: //fernfortuniversity. com/termpapers/pestel/nyse 4/2772 -expedia--inc-. php {13. 03. 2019} • Funding Universe, Expedia, Inc. History. http: //www. fundinguniverse. com/companyhistories/expedia-inc-history {13. 03. 2019} • Innovationtactics, Business Model Canvas Expedia. https: //www. innovationtactics. com/business-model-canvas -expedia/ {13. 03. 2019} • Skift, Expedia’s Hotel Boss on Becoming a Global Platform https: //skift. com/2018/07/25/expedias-hotel-boss-onbecoming-a-global-platform/, 25. 07. 2018, {13/03/2019} The European Commission support for the production of this presentation does not constitute endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein
VET-Business Partnerships on Work-based learning and Apprenticeships Thank you for your attention! www. vet 2 business. eu @VET 2 Business @Vet 2 business. P Any copyright and Intellectual property laws must be respected and are the responsibility of the author. Project Number: 585211 -EPP-1 -2017 -1 -EL-EPPKA 3 -VET-APPREN
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