Topics>>The future of distribution - big guns debate what's next for online travel

The future of distribution - big guns debate what's next for online travel



  1. David Lee27:17
  2. Latin America31:31, 33:35
  3. Middle East30:38, 30:46, 31:36
  4. Mike Dunn11:29
  5. BP43:16
  6. Andy Cox16:15
  7. Black America31:04
  8. Norm Dicks29:07
  9. North Asia31:34
Mon, 18 May 2015|

Frank Fiskers of Scandic Hotels, Hugo Burge of Momondo Group, Bryan Batista of and David Rutname of IATA hold a panel on what the future will hole for the online travel market


Automatically Generated Transcript (may not be 100% accurate)

I. What I thought might feel very good way of starting target date. It's just get a few words and each my speakers. Just just around what they think the key drivers. Might be now. All will be in the future. Coal. Creating change in online travel industry. And earth they keep track hacker last kick off that's alright. Yeah Phil I'm I'm I'm representing me. Company's sole. There's a fairly. Just television festival Fidelity's of their traditional business. And a and I think the biggest chains of rehab yes going forward is as auto company. Is that yes they yes as a television bar Rockefeller's vision we have a break on and the know who's used to take made between us and the customer. M and the biggest challenge rock imported Houghton Medicaid food may still fourth off take. And especially in turn off. I am truly the customer relation there is gonna be key for auto company going forward going to be quite times. Our group of BAA. Supplier through intermediaries off. If you run a mistake made will move between the between us and the customer. All you hear him off their new force and our hearts and our relationship with the customer that he can activity on their relationship. That won't be the biggest change and a change of the changing landscape for high. Do you think he fact liberal what are your thoughts. Sure and majority part of the future but just trying to look for the whole I'm online. Marketing trying to really simplify what drives change. I'd say that enormous technological change is clearly one very powerful driver. Whether it. And the ability to stall what access will use vast amounts of data with its move to mobile average wearable technology I think that's. Bid talk was whole technological change is one enormous driver. And secondly I would say that globalisation. And internationalisation. As a very important driver. There are and companies going global incredibly quickly consumers are travelling between markets more than ever. Their business models in one market coming into other markets quicker than ever. Sides of the global. Globalisation is very important and then thirdly and and who knows that this will last but this seems to be an extraordinary passion for growth. In need and investment industry and within companies so I would say that investment in change and investment in growth. It's a huge driver. We're seeing some very big global names making enormous losses or start ups in order to drive change sick companies with strong business models. Deliberately suppressed. The data in order to grow faster because they see an opportunity to grow globally. So that's really like some drivers would be technological change or globalisation. I'm very heavy investment growth treatment it pinky Hugo. Brian over the what deal. Thoughts. On to a forum give us cars before leave. The three icy would start with four. Possibly innovation and I think what we've seen the last few years that innovation in travel wasn't necessarily coming from the the biggest outflow rather it's coming from our V disruptions we that will resign European leaders in the world but beyond their. If you're more also start tomorrow Chinese partners for example our. A point of my phone walk away are. Will require a Chinese companies that we've only heard of in the west but the driving more innovation the pace that but even the biggest players in travel can keep upward. So I think we should keep buyers on the developing markets since a lot of innovation of last five years has come from them almost exclusively from the and in addition to reserve a smaller start ups for. Based on the US. The second appointed content. The reward card tenth I think is increasing. And leases were two facts the first being. User generated content. Patrick advises them a great job of promoting merits of their daily ought to CD. And that's something there for example booking dot com has taken on more seriously really promoting go high quality content. And to just see out of towards Latin and which cap will be the winning pair. The first thing I mentioned deserve is effective for. Further consolidation. We feel one bit queries for example studio from last year. Really make further inroads. Stepping up but what if fossil your article. What what we effects of their fees for business overall in terms of the one point two flared. But we receive more more four product platforms. And moving away from special position. I think that's conditioned to see what preserve their. If I. Dictate David maybe some idea accuser also to explain it about in DC and then how that might be affecting us what that's doing yeah. Sure yeah first in case anyone doesn't now I answer we represent over 250. Airlines. What NBC is as of now it's about the future of distribution from an airline perspective. I just wanna bring her briefly touch. On why we're doing in DC. And then what it is very quickly. So why we're doing in DC is that. Actually and in the sixties airlines were ahead of the game. In digital distribution rate they had they were they were doing electronics sales in need to be able to selling real time. Their products anywhere in the world. And of course at all based on sixties technology model and many of those systems are still look poor of their alliance today. And so the issue is in those days of the airlines are facing further data storage data disk. Space was very costly. And therefore what data had to be compressed amount of data you could get out of third party distributors was very limited. And of course communication costs the pipeline. Was wasn't you you don't have the bandwidth you have today. And therefore. You have to have efficiency and that data so so that's certain where airlines originating from. Very limited amount of data that they can get up and obviously this is a challenging today's world where these no longer issues and tattoo to put into context. You could it. An entire airlines software system. And a database of millions of customers on this memory stick so that shows you how important data compression was. Only sees about addressing that it's about. Bringing airlines into the 21 century and distribution. And quite simply it's just an XML based data transmission standard. And and what it's going to achieve an airline's. But several things it's about getting that rich content out of the market as graphics. Videos whenever. It's about personalisation. Which we've discussed over several days today airlines. Really don't know who the customer customer list until they get the information on the baulking they want to be able to interact during the booking process. It's about dynamic offers being able to control. The offer rather than relying on third parties to construct an offer silly giving airlines you're good opportunity to manage their revenue better. And of course innovation is very difficult for airlines to bringing new products. And put them in the market today. OK if I think he did if you'd like copper the first question. I'll let thank you Jordan on my phone around there whether likens riding but perhaps I just last question they don't stop you frank. We US I said before we start we were chatting I would say how we had little debate yesterday as presentations. Where I make life where Hiller who Teddy is talking got all the want full value added mobile services they're putting the debt apps except for an Dirk. And in fact but off session highs cheering know we were hearing how many have had the what I call a Twitter hotel so a lot of value that a lot of differentiation. But I was floating the idea that maybe. What the majority of consumers actually want is justify a hotel or the best price in the right place. And that actually. Make maybe hotels might not lose might not win the battle for differentiation. We you've got hurt the likes of booking dot com looking to commodity time they see fit in his thoughts on. That earlier and off. I think that's going to be one of the key challenges for auto companies going forward though is to what what then you do you ever thought through company of their out of that. Two and talk to your customers and as a before I came away commodity. Bern Elliot of the F supplier with distribution system that between you and the customer why directly or in the customer relation. And I think that basically companies are opposition variously. In the market who to achieve this successfully. I think at some of the regional auto companies that receive like. Like standing. Likely nearing trail lodge in UK. Like quarter one in Germany poultry companies we'd really a huge presence in the limited market. That they have fair person. It's perhaps easier for these companies perform the customer relation and walk on the customers to make sure that their best customers prefer of them and make sure the price of wheat buyer. The auto companies own challenge. I think there and the big global auto companies they have you champ from India and informing people would be customer relations. Sought to I think that economy of that before I'm for fall at a conference. OK and drama will tap the (%expletive) with you in a minute but first will limit would you like to ask a question. Yes senator Grassley telescope though you'd deliver this limiting citi's name for the as a very task force's questions but I saw presentation on and his who last last month of France and and I must say the problem has not sure of evidence to a lot they're eligible converter opening up by one standards. Who works not just a wrong website vote. Also the worst global clients and also to work sixty BR. Further inventory including your package which. Amid we've always look dynamite are. Industry so happy you might mean Leonard AA hotel check in murder sharp Chrysler baction everything had gone into the airline got into the standards. And out of the question to one of the advisory board members of the program back down. Like you get a nudge the Euro giving away everything they do work. Protecting from these forward T itch. At a sell inventory you've given away witness stand out. How would die down street think about does show. He couldn't answer that question open you know we have you on the stage and the problem for the top people. You know what winds will vote on the street sure I think we need to ask question to over to frank street bridge in the stoppage on hold on overtime here. My will be except for access to worry inventory by anyone monster sell ads. As the most bullish added. So David Irvin the airlines that make up the membership by Carter and a presumably. I'd she seems some of the may prove been in DC and be happy to be opening up their inventories. And this systems and operations. To anyone who wants to connect with them. That adds that's your. That's your premise Leonard Mike Dunn Douglas GE. A double top of the presentation and Douglas what was happening and earned him we used an example that the British Airways executives said you know what. People are gonna got a global flight every deal that. Charles probably gone to think Debbie can just direct all the traffic to British Airways dot com. No we need to give these people who will slides. You know the same. Inventory as we wouldn't have on the dot com. And so the question really assisted just mission that's makes a difference because the islands on the day commissioned by day they told distributors due to make a run money. Although there have heard and very different mark. Or Silverman. And we're not really prove the two to this sort of commercial side of airlines being in association. Asked how. It indirect distribution has already in the existing channels. Access to airline inventory you can do. Last seen sales to any of the channels today so that's that's not the issue NBC is about giving control. The process being able to take control of the actual pricing on things which to a large extent airlines don't have today because they're finding. Content and the filing. Their fares so being able to react and an admittedly. Today. There's maybe not a lot of airlines were in a position to do that dynamic pricing official it's going to be here tomorrow. And an airline's need to prepare for that. And and 60%. Of airline sales by value comes through in direct channels so airlines do depend on on the indirect channels. And will continue to do so for. The foreseeable future. OK implicitly by yes you can yes. I'm no expert as a list of my life thinking that in DC but I put this kind of almost the opposite of what you're saying apple officers opportunity for. I airlines and hotels to differentiate themselves. And allow him to maximise revenue by selling additional components through channels that finished a moment quite limited in terms of how they can differentiate products how can. Allow whole Thomson profitable addition eating made. And it is the airlines suppliers I think we're driving this change. And and jitters just to bring back the hour. Others to view as well let me just check OK this is a standard XML message said. Which will work for all airlines. So so Brian will would would you love affair hotels is keeping a close a sad. Economic decision that you can just have one connection into booking dot com to sell their products. You'd be be quite nice to mean any. We know we we could hotels of course to work to display about all the rage they have built a world will conduct chancellor. The customer come to a final indeed have further widest choice turf product available but the same time my kind of family through concerns over hesitation on the task of. OK tractor that's a good idea here. Wherever you first where. I think generally view the media are generally all urban interns listed utility companies article saw. So I think there's something that you for the future we'll have to do not define what what will be available at all swindle account and one of the Euro back. OK Cuba of course your your work allowing businesses met or search now is that total flights and off hotels as well. Yes OK fine. Total assets so presumably you you'd have hope of really good interest in having very standard. Of connectivity. Bid to go in and. Who along bottom McManus chairman this whole principle was based on transparency. And the impact her things equally for the moment that that that's part. I think that this would make it in some ways Honda job but I think it gives us apart when politely told that we can try to achieve direct compatibility. And between products in ways that would help consumers I think. Which helps clients ultimately to have a fairer presentation of their products that. Integration differently so so in do you think the mega search holds out the potential for work. Airlines and hotels in particular to better differentiate themselves compared to. Then be distributed via online travel agents such as booking dot com. Or do you think it's just a level playing field. I think I think both models have different strengths and weaknesses in terms of suppliers and consumers. There is some convergence. But I think you have to look at strengths weaknesses but it. Let it be happy what you're hearing. Yes. Yes I think but no never not a question like just another question yes doesn't mind for just over here. And Jude utility you highway funds so to predict. Your Quant comments Andy Cox of travel report. I won't travel well three years but my career has been in mobile telecoms. And most of understand the customer. Is fairly common. Been there done and the mobile telecoms place there's obviously a journey travel perk the challenge is going through. So from my experience in the mobile telecoms there was a lot of vertical integration. Within the industry. Alamo nicely horizontal. Integration. As a lower power panel in terms of the future distributions. See vertical. Integration happening. And let's just make sure we understand what you need vertical integration will be. Hotels join up with Charlie just join up with airlines tight yeah yeah I think the positive patient be consolidation maybe. No T like Priceline think buying some flight booking dot com correct yeah OK fine. It falls panel that. That is what their consolidation which has being going on the week becoming consolidated industry bit by bit so they'll only be two players left. In the world of the questions about. Where they see. Vertical was opposed holds onto so. So experience today sees a lot of horizontal whether vertical integration where O chase buying eighty days and hotels are buying hotel's success track. So do you see new vertical integration in the travel industry. We're gonna have been limited where women these things pentagon cycles don't know whether the extreme vertical integration of the 1970s. And tour operators buying tells mining claims I don't see that put them in stark examples of the ATA's. Purchasing matter search businesses which has kind of vertical integration. Attack and an hotels by distribution businesses. You know as with the recent quarterly. With fast talking yet. I said that we strong booking dot coms perspective still a lot of what lottery to focus in the could recall and for hotels and if you look at right now we're over a bit over 6005. Properly signed up. And we see that the school where are we would millions restore what what Italy to focus for the coming years in the space we play. At the same time as a group grow we have been making. Found some veterans into into other recourse. Like. Michael Pinto restaurant booking. It's not clear whether that's going to continue. I think there's a lot to do in the rest one side there's also problem what to do new attractions like witches were triggered by the of the prompting one of the acquisition activity to. However we set a trend and therefore should expect more bluster come. We've I think there would be trouble groups will wider looking to warrant in these new over the course looking to understand though finished at Chester exploit them the chance that the growth in. But I wouldn't see the third loser will mean in any particular direction right now if anything restored overriding focus fund the year on the over the course. And a David CUNY the world airline of course a lot of airlines run to a operations already. Can you see airlines actually owning hotels. Farmer at this stage no. As far as indices concerned is really only focusing on on airline distribution it's not looking beyond that do. Hotels or even other forms of transportation. However we are looking at sort of integrating them in the future but I think it's one step at a time it's already a fairly complex business. In order to get out powers airline products and that's really the primary focus. But who knows tomorrow it could be become the focus once we've overcome this hurdle. Forget OK we have. A microphone to Carl. Well it's well it's on the way presume the panel will we could imagine. Technological. Vertical integration is no need to own product Eddie Moore weaken just earth. Technically integrate with it it is that something we might see more in the future. They're actually we have a third of virtual vertical integration. Which might be corporation between. Hotel chains in the airline's. From a technological point of view. Frank this is that a Paul feasible might just imagine something that would actually be. I'm not really sure of the bet on it came that month it to do that I'll I think those do technological think there's an airline think there's a as a as a of the Barbara think if you think. And there is a supplier I think. Now mind on everything you that this is an who'd have anything now holds course the birth death will take on the look into legally don't think about now. If that they're. OK final question cars generate cost and time shall generate hostels this break parity is beginning to break down gradually. Do you you are you pleased by that and how hard do you think it'll go lower what are the implications of freight parity were completely outlawed. As a case of most other industries we wouldn't have all the prices in the supermarket the same as every other supermarket. Who would you like to direct that question two I'll start booking made clear and then work done OK. Who hinted that someone might think this topic up. There have ever for the square ever since well off when zero. This is an idea of expertise her. Data actually forty donkey wheel on the top foreigners I'm so always focused on the free distribution. As you're not talking said if you were quoted on the ruling spurred overburden where few weeks. For example in France and Italy are on what we've turned Merrill MFM. Most fibrillation Quant. Which which talk halt further bolster the appearance cloth. Of course allows hoteliers to appetites. For two privilege for full rates aren't around nine distribution channels. And I think that's something they've spent the booking dot com of course was very happy with we want what maintaining an environment where our. Words it is a level playing field. We're will weaken we cannot compete. Gonna benefit away in an offer customers the the best product now possible that's the way we we fewer partnerships with the year with the hotels in the say healthiest. And that's that's the that the rupee were pushing for. Frankly got any thoughts on this well there's a very complex issue. Say I'm and I think the jury's still out on break parity because there are some conflicting moos has annoyed the EU. And reached nor that the bottles is looking at now how to tackle that got a federal went from digital board in January saying that you cannot. And our rate parity and then there's this new fund grew too early and Sweden ruling off. Less legal we could fall. Have after repair a thing I think the jury's still out on on where you regal one mom on paper. OK and where we're keeping photo frame. There's very complex affair for a conflict OK. I think new truck might become our consumers better certainly think it's a good thing a bubble and regulatory fragmented baby to be more competition. What choice because there's. You know while on the subject of a major search and weird sort of routine to the future that YouTube do you think may be heard on. The traditional totally model might have had its day actually made the search will be coming into the ascendancy. Any idea it maybe five years' time whether work might have a right now. 5050 split between OQ eight have an end better better search organisations if the volume of traffic there. A fully on the business of putting the travel industry any thoughts on how might an out future. I'd really like we've models I think both models of the strong advantages and disadvantages. I think what has been cases that it's become clear that. Being into a very specialised ATA. No great companies like some dollar flight to UK trail finders who. Did telephone bookings have been incredibly successful flourished in the last five years but the majority of travel agents struggled. And I think has been huge jump horizontal. Consolidation in in online travel agencies to make it profitable and strong model. And I think we've seen growth in that I think will continue to see growth I think it's strong model I think consumers like it think it offers a really good service. Unlike should highlight the very good partner surpassed well. And I think the I think that that will coexist with better search. I think what's not certain. And vignette is this convergence between a perceived convergence between search and ATA's. I'm quite clear on that I think for us we've seen that researchers remaining. And the independent. And not taking bookings themselves. And I think that that that what the credit confusion lies is that in its potential opportunity for. Met search to simplify bookings on behalf of beauty aids and that's what a lot of the searches are trying so called facilitated bookings. And I think that's an interesting area. Which. With which it is in the early stages in testing and living in companies and rolled out complete product as the whole. Inventory set button that could be perceived as has. As was narrowing difference into production I think it's very distinct and different sadly both will continue to be strong price well I would say that I think net search. Is growing faster. A fast lane. And the eighty's that's partly because they generally tend to be smaller came to market them and then. Court would be better search is growing with something must be shrinking burden of this it's growing faster than the overall market isn't it. So so where's met who's better search taking concern dictate. Taking people look us from. I'm watching market globally growing incredibly fast no more consumers are covered travelling for the first time flying first time staying hotel's first time. And coming on line the first time and you know we forget because in Western Europe. And the Internet been here for a long time in Poland and that this shift from offline to online so feels like we're a through the through a lot of and it's very mature than a lot of markets this as a new process people coming. Online directly mobiles people travelling first time this as a very fast growing international market globally. At least I think where you. I think I think you're shifting subject Hugo because there. There's a nice try I don't think the market growing so fast that they actually sucking up all the new better search I think you can apply using yeah. As someone somewhere but that fact has he got. Opinion oil I would have vigilant a word to word when you assess what is if a firm. We from the from the supplier side is the industry amid emu missing amid a structure. Use uses scoring to a went according it's going to increase in the future. Our biggest because if you would have guilty a model front of my eleven menu foods in the in the panic through guilty model. We leave the and we need people women report inventory into the infield hit. And then brought it right who thinks they provided a year and a move between Renault reported this emotion you can see what's available in deflation. Do little but bearish on. And David Lee they did the people rightly very good for. A bit off more web site. Opening the economy doesn't compromise the very good experience yet getting that out providing a mark limited user experience to our customers into our guest. And and make sure we can give the and the government we all knew what what's available information. Just read in conjunction with we've reviewed with the suppliers and end meta search. They're here with BAA yeah. Is if not not a threat well I think they're finally a major place at this relatively difficult area. Together I think I think we'll be back in into or out of the industry is a B can't write your will your bottom in this nation alright. So we've moved the customer has to go to an ultimately what's available information buck if they happen somewhere else provide only the industry. I think refund they frothy. Attractive combination. OK fine. Then let us take your question in the back bay yes I just very quickly follow on you go somewhere facility we are away your fund have Bruce zapping from Africa bookings and an appetite Krishna. Hugo's touched on the point that sounds we forgotten in the west tower Schulters recruit from offline to online. And I know growth has a lot of time recently from major we see future growth coming geographically. We're to keep you you you aside talk about tested to a pickup on that here we see. Geographic growth coming from. This question yes. Sure will live geographic I'm just in terms very tightly over the history really we were very am chief likes look with the business I've been with for a for Ford for fifteen years and we really start an English speaking markets like the UK and US Australia. We purchased done Mondale and join forces with them. Further our reach I'm into the Norm Dicks and but also Russia which has an interesting market for us. Now with particularly and expanding into in printers and English speaking and Asian markets with cheap flights we've recently launched in the Philippines Malaysia Indonesia. Singapore and London seeing some interesting trends there so I think Asia's an important market. And and with no wonder what we are and we launched in markets like India China and Brazil and everything to global opportunity set. I think some Piedmont and where we're not focused on. Grain and medium term OK. Brian worth with booking dot dot com. We witness booking dot com to dominate next. I was I didn't say. I say that their own terms of QE a key growth markets and a from booking with looking industrywide. In hotels. Some perfume said Martin said the source Q level we towards offline. Are the most interesting at this point on mention China again. We've seen explosive growth in travel there but we're just giving the surface and still want to build from the offline to online transition. Then it's it's not quite dark online between offline straight a small firms was important to be well position in the bulls face in the in in China but also. In the Middle Eastern India still work heaven we offline markets. We firm with particularly weak region will work travel player if so there's a lot of say over capturing those users as we moved on my above Middle East and India. I think for example were up some players that maybe will position our online marketplaces. If you look at this will dot com in the Middle East a raft with Clark in India. We have by far buyers capital base of online users. Much on revenue it is offering those regions and potentially they may see here. The early do we tell you travel would core capital of those users. But beyond those markets there mention I think for the last many of Black America again heaven we offline to view for. Economy is pretty weak by going to disappoint you but right the world. In which if you were regional obviously as a president will want to get fit your will be nice area for growth. Find data we've added in India like world. It is the global airline history fairly homogenous so all other regional areas of the quote that you have to pay particular attention to. Yeah I don't think there's any real revelations with Latin America lifts Asia and North Asia. Middle East we're seeing double digit growth it's been fairly flat through the recession in in Europe and North America. Beginning to pick up. So I think those first developing economies. Of us whether the huge growth. OK and Franken as a hotelier your your own inbound travel come duping people into your hotels. And very new markets opening up. Which show potential customers that come into your hotels. The Who do you see as the distribution partners that you must do business we've given these U markets I we're gonna see the lights off. Of I know Expedia forking and the others actually. With their technical technological expertise. Moving into is market since starting to dominate them and there can be your. They can be keeping customers in a I would be working baby were consummate the yeah. This new local players out there who already understand the markets and actually. Wrote an expedient. Tries like ghetto looking. Any thoughts. I think region either I think there in the short term fifty if these difficulties of course that would bring media never bring customers. A longer term off course the the year and the and then they not do regional players in local players. I think what auto promoters difference over the big global auto companies. They do a lot of off off a firm offer then in March stimulation themselves. Why and the regional players we are of course and who want to be. Who want to work very closely with the result if voters regional player if you were a bit like we are -- company a UK company auto company were drew a lot of companies. Air and network with the original case of effusive in from from from from far away. So I think in the short term absolutely essential it is in the long terms a lot of. OK Q who would this moment there have further ambitions to move into these new markets. Finance which ones in Hawaii didn't know Asia Latin America China. Yeah absolutely have started to think turns in the learning we've got a long way to go very small. OK do you think you can. Six see debt or do you think the the locals can grow fast enough to actually shut out the global companies of global players. What's the opportunity for. Them I think I think local players certainly have done an initial advantage over. I think what we're seeing is global players. Seem to be the ones grain and than in taking new markets and and and I think there is an advantage scale and technology in bingaman to invest in. And a desktop platform that have a platform Smartphone platform. And that but then I think you also have to be very am aware that local markets are different payment methods different need to work with local suppliers. But generally I would say I would I would say the the advantage seems to be and the trend seems to be that global players seem to be taking more share from Joseph has been I've read. And the. Coarse grind your head of global partnerships arthritis and take your your on the distribution side booking dot com. So presumably you're actually talking to some these new distribution outlets in new markets to work to try and get them to feed into booking dot com. Are you finding that's tricky to do that murder of the more traditional markets that you're used to. Now share prices took away around so we've the year over the strong regional queries are a realising their votes for. It's a good enough to do just off a strong local content and inventory. Whether they veil of women point for the Chinese search for example. The European travellers are ready to step outside the the Chinese borders do we want the best hotel inventory in early in Europe and North America. Enter in order for a one point procedures in this case which as a partnership with we felt we booking Priceline. In overseas trip offer the best products to veer village commercially minded travellers. They've been now living quite quickly turn to hook up with us so that they can they can offer the widest branch in the fourth. So I say it's actually easier and the on the west for a whopping 32 world support. OK who would like cross not a question. I don't want to dominate the thing and if you're sipping a bit he had I can't see it as a rooms glaring the likes cyclically we dish up very loudly. Yes. Question on her brands has remind us who you are where you're from just over one Cox. Is it is already down attack and that obviously travel will happen around. So the questions about brand and as presentation earlier about. Brand loyalty. So again analogy but one Telecom. Data is that. React but VoIP virtual network providers which basically people who don't provide infrastructure all the networks in things they just basically provide customer service and and the brand. Basically and have done very well in the industry. Do you see those kind of players coming into particularly video chain market and met search market. So recognise consumer brand that kind of wants to. Move into. Extending their brand into travel. I'm so far dealt with their home. Off I don't. I think I'm Jen if we usable in our comments are falling and we look at the amount of files look at required to disrobe as a reservation. We have something like around 5000 customer service agents now worldwide. We've over a 160. Offices worldwide. Serena Hotel onerous having do we conversations. It's it's a I would say asset intensive business but it's a people intensive business. So even if you have a player like Amazon's who was made rumblings of wanting to get into online travel property we own hotels. It's it's hardly earth is an insignificant investment together in the takes time to build up these networks pretty weak global it. Our military officer overseeing and in many languages and in many years' time zones inside some trivial investment. Solve our I I don't I don't see their effect shift happening and exact was cool by everyone would've expected a focus point they would have gone so well the meadow an interview Otis base. But mind my hunches is also increasing their bets that a huge investment to make them now the better place where they are right now in the America as a mom image. Thinking he do you see anyone actually coming into that space at all. Were up and I look across industries and I just there's certain brands that. That you know moving to industry association the opportunity there. And you know block example different brands do that. But if they see an opportunity vague they move into that and in the Telecom market right came from. You know as a number of by virtue in the came into two Virgin Mobile. They use their brand and I'm very successful my focus on understanding customer customer service. So you know below you as a swell the numbers that don't. I don't know the assets and things. They own people they have to customer relationship. And therefore you know that's where their success comes in. And did didn't hear something back Amazon might be starting selling down hotels. Hotel accommodations. Need. Verified that torn short flight read that somewhere. OK but that would be good example wouldn't it over here customer relationship forgot my credit card numbers so why don't they sell itself hotels. And presumably thank you to no objection to that just another another dispute yeah. Belgium office. OK OK. Good good and what happens if they decide. To vertically integrated actually by a hotel chain in any objection to that while anything top sail back. The fly right behind them OK OK what noble sort of what is listed here well one last question no more seriously the German. We haven't touched on the earned a BB really we we haven't talked about certain. What other so card leadership area economy. And also who coupling that we've third with market disrupt has served we've spoken Whitman mentioned who got a couple of times seven we and I haven't told everyone yet but. I I I'm one who but most people know now could serve the innovative a couple of firm. False transactions to my campaign my cats fact not lost a couple hundred quid on that service someone. Taken some topic phantom journeys but nobody refund recovery quickly so search who back acting on on Google next time you see with us all about. But come back to eighteen beast just think the view Franca they feared course partly yeah or disrupt terror. Of that the the combination market may make you don't think so. Do you feel that. Eighteen these affect your business at all they just play you know completely. Different markets. No right I think about when it's not a trade for the better new competitor in the market and the only way you can call in the disrupted by some the most as another competitor. So also if it really gives us an opportunity to be more now tolls be nor. Younger more now I'll be on our thought they can't meet in the market then they're exploiting that. V young modern definition. Are you considering trial clearly in the in the wall they. They're I think he has some clearly can offer a different properly can offer different things. Images of the would get an informative. Well if it's interesting too because we were talking about. Hotels differentiator. And I suggesting before that maybe by booking dot com people by hotels. Based on trying to location. So do you feel for ABB's challenged your business. I think a video of of these identified her. The very interesting image in the market. Another black compared reverts are obvious but really the beer Oren the overall the combination will undoubtedly direct. Competitive Vickers served if you really existed if I wanted to go to New York I might well have looked on on booking dot com booked myself a hotel. Now save some money actually books someone's apartment or may have been the so you dude your finger at com. Digital cinema Blackberry not in in the join the conversation we booked hotels and we may fifth. Identified themselves whether they pay in non hotel we're only beginning with a long tail well the carbonation sure they are and the growing very quickly into. And there are. Perform oral forward confederate you can say. I think we're we're driving rain on two separate roads whether growth converge down. Down opened in influence timeless is there's no question that. A I think it is very interesting company get some big challenges ahead. Pretty weak with the would gallery above what we're doing through the markets. Also win nine customers who listened well to recently confirm what seems. Tucson something that customers have. Grown accustomed to caseloads however. The below what the content and need the differentiation and probably the arteries is quite interesting. Located just a quick show pounds weak weak weak summer sustain dead theme Bil but I haven't or what have friends have done. Quit Japan's who who's heard of anybody be satisfactory experiences. Where PP pleas were staying FBB. And who ruthless mother ship had to say come across. People who say bad things about it BP. What I can see I think the happy people window there. So I would like for consumers but the market for what you think Hugo sort. Not not affect EU particularly in the accommodations sector who do you think here there a year or disrupted business. I think to an extent not disrupted because people was rented villas and rented apartments. I think what's happened is that technologies enable out of it to be far more transparent online and the far more trustworthy in terms of use. I'm and I think it is great French I think it's fantastic thing I think encourages more people trapped. As I've said before I think that the travel market is huge and growing. And and and I think this just adds a mix of more people wanting to get down and trying places in ways that suits them. And and I think it probably is a slightly different type travel to the person normally stay in hotel and wants the convenience of a business looking namely get a check in late at night and this is perhaps. Generally younger audience people who on leisure travel. Generally. And I think it's great I think of them are company. Motto is let's open our world I think is genuinely opening how well we've got to have great travel experiences. And experience places I'm as a low power I think it's fantastic put it OK like that there's Chris of the back. Yeah I've got to the Mike. I'm Steve shore up from from Pablo backed we have question on loyalty but just on day. Share commercial space a greater research recently from focus right. There in Europe is double the amount of participation in. Chair combination 17% in the US is something like 37%. In Europe ended part of those 37% in Europe. The 47%. Nearly. No limit so people the biggest market and saying in share combination and linens. But my question is regards. Loyalty programs serve foie airlines and hotels day. Cherish their lobby programs. And it seems to be no go zone between. The loyalty programs and distribution outlets such as men search and booking dot com for example so is there an opportunity for. There to be a linkage between. A point searched the user loyalty programs maybe for the hotels or airlines to differentiate themselves. Which in the mega search results. Hugo you sure you know I'm in income. I think on the beaches and murder searches that allows people to give an overview of the market and then choose something in put through their preferred supplier often if they probably do have. Loyalty scheme with. And but I take your point I think they're search can be better highlighting different reward points available for a particular flight saw for particular hotels. And and that. Unless misunderstood I think in DC should help with this kind of thing in terms of making these things transparent mrs. differentiator. This is something suppliers want to communicate will. And will with consumers more transparently. And I think it's another factor that goes beyond just price CS handsets or six great opportunity. Dictators. Is that wanna be objective friend DC absolutely Allen who is fully. Customers coaches if they can identify themselves say gives airlines an opportunity to tailor. Towards and offer them things like lounge access free Wi-Fi. Extra bags this kind of thing. I'm sure it's at this stage is completely tied into the frequent flier program. But who knows tomorrow. Win win win airlines become smarter than a ends we heard I think. From Ryanair yesterday and how they're looking to not so much focus on frequent flier programs but to identify the customers through other means. And and the reward and as such he. And maybe our airlines will think of doing something similar. But sir initially I would expect them through frequent flier programs to target those high value customers. OK. The German. We we haven't talked much about disrupt yet I just touch may be dealers who ruined the only the cabin taxi market. Do you think we hear a one point is whether we might be dead is actually. Nothing else left to disrupt or will or do you think we might expect something that pop out of the year innovation bag even in in in another few years. It derivative. Do you think that actually we're now disrupted if nothing and we're gonna gonna go to a purely stability. No I think I think I think is just always part of a larger than it's definitely imagine that in the kind of existed. Four we would imagine Smartphones. Now I think we'll be truly disruptive delivered anybody's Asimov fans horse but scifi but. I think you know sort of unlimited innovations possible. OK would we'd all agree with that. Yes I think will mean a point that Nike's so we don't now I mean we're seeing with. That certainly Internet giants have come from nowhere. Amid dominated certain aspects of market on the same thing could happen in travel is very hard to predict at this stage. But that that as a potential disruptive but we we open the door to. Domination by one too big. OK fine thank you the year and I suppose this year's party technology where rebels. Exactly prison but my watch here for the kids possible tie. Frankly in the term. In the hotel market. Where we've seen a lot of smart phone electronic technological type developments. Or where locals can be all be here to. Offer something useful on where polls do you think that's going to be a good thing or is it just that transitory factor this year their going away. I don't think of the trends I don't think there's a fair. But how will is going to be it be taken on I'm not we the next problem. OK OK. I think any in the viewer has got any thought. Tudor brown David come on we're almost. I think we're gonna see many different channels and where rebels dewine I think personally I think that they've got to become a lot more sophisticated over. We think. Much more now voice command. I recently was on the plane and was watching a movie on one of the PlayStation planes and to be honest I couldn't really see what was going on serve this going to be different. Just before media fit for for different purposes. The green screen size differed on whether we do we work horse of the year. Say now relevant travel I think bed and move for the book explains itself people will stick to their gold. A desktop devices for for quite awhile consumers will probably be huge breakthrough there. Sensitive screens this spaces at such a premium on people want to look at effort content and pricing in detail. However I say we're in the initially for the travel experience if you would have hotels phantoms have wineries and trams over. Tools for checking in potentially for opening the door. We're say track Obama are talking they weren't but rather travel convenience of their worries I think we're walls will walk on the platform. I mean. We see many more downward streak to 50% of people walking with their mobile phones Smartphones here and this is not a lot systems. Pain among confess I hear me now mennonite reprimand myself as a certain nine. And happen every bumping into challenging I'm not looking I think it's inevitable that some is designed something that makes that. And easy user interface of people getting what it will develop test. That calls with that were little camera here by her. Annually the Fed on her yes OK if pitcher CC order that comes I'm actually build it quickly needed Biotech tech I think maybe there. In 1020 years time we just plug or plug something straight into our operations we look legal these devices honest we've we were not we're not quite there yet. Spurred a week we can't really get the insiders wonder whether might ask all forward who in turn made up start with you frank just go down the line. Just a germ a prediction you've got for the future of online travel. Total growth. Yet that he'll tell. My only thing would be that if I knew what was going to happen oil when you offer this rock done. Why would I as safe today. Before and over weekly us for the good of the audit is down again that there. So so fascinated in what you're saying Frankie is such an uncertain area it's very hard to predict. Yeah unfortunately my in the mid to ride in the lender sold well I'm sure that's going to be something that we move back and say not. Why would find everything from a. Do you think but even in the hotel industry which jury in. We might be in triggered period stability. And just nice incremental introduction of new technology I wouldn't until now you would think snuff OK OK so you're still fearful that my kids. Traffic destructive round possible and I think we've always be on the look up capital OK find a thunderous good thank you Hugo any thoughts more using Neptune and I've. Just like copper pounds I think. And its effect from rapid change. And I can get concerned there'll be things we can't yet imagine. Now I want I want the hot addiction says that its pick on him. Over their viability do you think looking dot com in five to new style even bigger do you think both had its day aeons and look at away on. But I wanna get in trouble voting. We'll try to avoid that. Actually you know should do something relatable you know car may have more to the point time regret because. What we said the restaurant's own best we while the next frontiers of trouble doing something interesting around restaurants close if you look power global leader he'll need. To preside over division with say somewhat successful whereas in her. Open table. Laugh auction that in advance. They don't want a real leader tap into word national have strong market in a big way. No one has any idea who will buoy their total product offering does seem to be rolled. In our markets. So while what is going to be be the particular product in there in that those papers that something interesting coming here I would hope we've. Again a day made a slightly different question for you. Do you think in DC will be bullish than any widespread use in five years' time I have to say yes. A defiant. Why might wall might not happen. Depend on the on the take up and term. And to me that's not really and issues because we've we are seeing take up. With a number of airlines were working with all the three G yes or supporting. We've got IT companies coming in we got a great T people participating now working group so. It's. I don't see that as an issue it's just how quickly it'll come in. And and you you know on your question on where where is her where tears gang assault backwards 25 years ago. You couldn't. By ticket and airline ticket online you have to go physically into travel agent we've come from there. To where we are now and that's in the short space of time it's going to be even shorter before you can you can do a lot more it will be customer driven. OK move that surely this gentlemen let's thank. Frank Hugo blinded very much indeed for great set.

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