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Traditional Marketing Becomes
Digital

By
Dr. Natasa Christodoulidou, Ph.D.
California State University
nchristodoulidou@csudh.edu




                 E-Tourism Forum 2009
Background
• Born in Nicosia

• Moved to the US in 1992

• Received B.Sc., M.Acc., MBA and Ph.D.

• Worked for various companies in the United
  States

• Currently a faculty member at CSUDH in
  Marketing and keynote speaker for conferences
  around the world

• Resides in Las Vegas, Nevada
Our world is changing!
• Let us take a few minutes to watch the following
  video.

• Sony played this video at their executive
  conference this year. Caution: It may leave you a
  little breathless.

• http://www.youtube.com/watch?v=cL9Wu2kWwSY
SO WHAT DOES IT ALL MEAN?
   • China will soon become the #1 English Speaking
     Country in the world
      • China should be a target for promoting tourism
        and travel in the English language
   • Top 10 demand jobs did not exist in 2004
      • This shows that we don’t know what type of
        professionals we want to attract in our tourism
        and travel market
   • Text messaging
      • Total number of messages sent and received every
        day exceeds the total population of earth
   • 1 out of 8 couples in the United States last year met
     online
      • Advertising space
   • There are over 200 million users in My Space
      • Potential advertising and exposure
Reaching your audience


• To reach 50 million customers it took:
   •   The Radio – 38 years
   •   TV – 13 years
   •   Internet – 4 years
   •   Facebook – 2 years


• So this question leads us to the bigger one which is
  how do we reach our audience for the Cyprus
  Market?
Travel Intermediaries

• An online travel intermediary is an online travel
  agent that sells direct bookings with hotels,
  airlines, car rentals, etc.
   • Examples:
       • Expedia.com
       • Travelocity.com
       • Orbitz.com
       • Hotels.com
       • Studentuniverse.com
Travel Meta Sites
  • Travel meta search engines are a new
    generation of travel search engines

     • Examples:
        • TravelAxe.com
        • SideStep.com
        • Cheapflights.com
        • Kayak.com

  • Opportunity or threat to online travel agencies
    (OTAs)?
Metasite example
Popular Travel Meta Search Players


Sidestep                       Kayak
• Most established player      • Fastest growing in space
• Side-by-side comparisons     • Goal to be comprehensive (all
• Downloadable toolbar           of the earth’s hotels)
• Partnership with             • Multi-city itineraries
  Amazon.com                   • Kayak Network marketing and
• Established relationships      advertising service
  with leading hotel           • Buzz (history of user searches)
  companies                    • AOL/Pinpoint Travel alliances
• Flight plus hotel (dynamic   • Consumer-contributed content
  package) searches            • Integration with AOL Instant
• Search by activities           Messenger
                               • Affiliate and co-branded
                                 programs
Electronic Travel Distribution Pyramid
Adapted from Brewer, Christodoulidou, and Rothenberger




                                            ?




                                   E-Meta Travel Sites




                                      E-Travel Sites




                             Traditional Sales Channels, GDS,
                                Group Sales, Consolidators




                                 Travel Products
                    (hotel rooms, airline seats, rental cars etc.)
Looking at Travel Meta Search from a Hotelier’s
Perspective


             PROS                                  CONS
   • Another way to increase reach     • Semi-direct model
     and visibility, especially with
     increased relationships forming   • Increases threat of
     between meta search engines         commoditization with added
     and popular Internet portals        focus on price and comparison-
                                         shopping
   • Opportunity to attract
     unbranded customers               • Distorts look-to-book ratios
   • Alternative to GDSs, GNEs,        • May have adverse impacts to
     and OTAs, shifting power to         RevPar
     brands                              (i.e., customers trading down)
   • Book direct allows brand to       • May influence customers to
     build, own, and manage              book with competitors and
     customer relationship               third-party sites
   • Potentially cheaper
     distribution option (depending    • Segment is still immature and
     upon contract terms)                evolving
   • Segment is gaining interest       • Still unclear if meta search is
     and some traction                   producing incremental
   • Opportunities to up-sell            bookings or just redirecting
     customers when they arrive at       bookings
     brand site                        • Consumers continue to shop
                                         multiple sites/services
                                         (upwards of 5 on average)
Summary

• Use the power of E-Marketing to:
   • Attract new customer markets
   • Enhancing existing ones
   • Customer retention


• Travel suppliers, Online Travel Agents, and Meta
  Search Engines will be fighting for control of the
  distribution process and ultimately the consumer

• For more, on the details the customer side, please
  attend tomorrow’s presentation!
Thank You
Follow-up questions or presentation requests can be
  emailed to (business cards also available):

nchristodoulidou@csudh.edu

Las Vegas Mobile number: +1 702 292 3952

Nicosia Mobile number: +99 55 49 49

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When Marketing Becomes Digital - etourism forum

  • 1. Traditional Marketing Becomes Digital By Dr. Natasa Christodoulidou, Ph.D. California State University nchristodoulidou@csudh.edu E-Tourism Forum 2009
  • 2. Background • Born in Nicosia • Moved to the US in 1992 • Received B.Sc., M.Acc., MBA and Ph.D. • Worked for various companies in the United States • Currently a faculty member at CSUDH in Marketing and keynote speaker for conferences around the world • Resides in Las Vegas, Nevada
  • 3. Our world is changing! • Let us take a few minutes to watch the following video. • Sony played this video at their executive conference this year. Caution: It may leave you a little breathless. • http://www.youtube.com/watch?v=cL9Wu2kWwSY
  • 4. SO WHAT DOES IT ALL MEAN? • China will soon become the #1 English Speaking Country in the world • China should be a target for promoting tourism and travel in the English language • Top 10 demand jobs did not exist in 2004 • This shows that we don’t know what type of professionals we want to attract in our tourism and travel market • Text messaging • Total number of messages sent and received every day exceeds the total population of earth • 1 out of 8 couples in the United States last year met online • Advertising space • There are over 200 million users in My Space • Potential advertising and exposure
  • 5. Reaching your audience • To reach 50 million customers it took: • The Radio – 38 years • TV – 13 years • Internet – 4 years • Facebook – 2 years • So this question leads us to the bigger one which is how do we reach our audience for the Cyprus Market?
  • 6. Travel Intermediaries • An online travel intermediary is an online travel agent that sells direct bookings with hotels, airlines, car rentals, etc. • Examples: • Expedia.com • Travelocity.com • Orbitz.com • Hotels.com • Studentuniverse.com
  • 7. Travel Meta Sites • Travel meta search engines are a new generation of travel search engines • Examples: • TravelAxe.com • SideStep.com • Cheapflights.com • Kayak.com • Opportunity or threat to online travel agencies (OTAs)?
  • 9. Popular Travel Meta Search Players Sidestep Kayak • Most established player • Fastest growing in space • Side-by-side comparisons • Goal to be comprehensive (all • Downloadable toolbar of the earth’s hotels) • Partnership with • Multi-city itineraries Amazon.com • Kayak Network marketing and • Established relationships advertising service with leading hotel • Buzz (history of user searches) companies • AOL/Pinpoint Travel alliances • Flight plus hotel (dynamic • Consumer-contributed content package) searches • Integration with AOL Instant • Search by activities Messenger • Affiliate and co-branded programs
  • 10. Electronic Travel Distribution Pyramid Adapted from Brewer, Christodoulidou, and Rothenberger ? E-Meta Travel Sites E-Travel Sites Traditional Sales Channels, GDS, Group Sales, Consolidators Travel Products (hotel rooms, airline seats, rental cars etc.)
  • 11. Looking at Travel Meta Search from a Hotelier’s Perspective PROS CONS • Another way to increase reach • Semi-direct model and visibility, especially with increased relationships forming • Increases threat of between meta search engines commoditization with added and popular Internet portals focus on price and comparison- shopping • Opportunity to attract unbranded customers • Distorts look-to-book ratios • Alternative to GDSs, GNEs, • May have adverse impacts to and OTAs, shifting power to RevPar brands (i.e., customers trading down) • Book direct allows brand to • May influence customers to build, own, and manage book with competitors and customer relationship third-party sites • Potentially cheaper distribution option (depending • Segment is still immature and upon contract terms) evolving • Segment is gaining interest • Still unclear if meta search is and some traction producing incremental • Opportunities to up-sell bookings or just redirecting customers when they arrive at bookings brand site • Consumers continue to shop multiple sites/services (upwards of 5 on average)
  • 12. Summary • Use the power of E-Marketing to: • Attract new customer markets • Enhancing existing ones • Customer retention • Travel suppliers, Online Travel Agents, and Meta Search Engines will be fighting for control of the distribution process and ultimately the consumer • For more, on the details the customer side, please attend tomorrow’s presentation!
  • 13. Thank You Follow-up questions or presentation requests can be emailed to (business cards also available): nchristodoulidou@csudh.edu Las Vegas Mobile number: +1 702 292 3952 Nicosia Mobile number: +99 55 49 49