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Mobile Savvy, Data Driven and Consumer Focused - What's driving intermediaries?

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Thu, 5 May 2016|

James McClure, General Manager UK & Ireland, Airbnb; Hugo Burge, Chief Executive Officer, Momondo Group; Andrea Bertoli, Deputy CEO, Lastminute.com; Johannes Thomas, Managing Director, Trivago; Alex Saint, CEO, Secret Escapes

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Automatically Generated Transcript (may not be 100% accurate)

We've gotten intermediaries here none of them own any hotels and if I'm wrong not known at any airplane not the only cruise lines. But they actually handling millions and millions of passengers. Not not a great revelation this course that's helpful quickest operators well. But turn it be quite interesting to explore. Over the next hour or so how big businesses have come to be. See good start this success and term and whether it's something that we should be grasping in any leaking ourselves. And third with this is your event so if you got a question opt in your mind just pop your hand up and will run a microphone bounce you. And dread really start with you because earned. I remember properly probably back in 95 maybe ninety fall into this chap called Brent Hoberman. You know he added lastly dot com. I I was running a a free. Technology finds clinic. At the British travel trade fair in Birmingham NV's Eddie C chapel where home came onto the stand he. He showed me he is faces cuts of last nick network Connick with printed well we're station very cheap stuff. The ask how could connect the travel industry stake is this model I thought well this guy's a bit crazy and he went away in made millions and millions of pounds. And sit since then Andrea I think actually we talking last minutes. Quantum wrap of various ownership since then is founded by Brent and and Martha and can you just talk us through where. Last need has gone since it. Both in the long Germany was one of the very close to a global public. Then they've been approached by another loss to do that was thrown into expanding their in Europe. I'm a lot of awards Bonaparte wasted a last Europe Ciba decided to serve the company because they would love. People from energy then there. And manage their bra flown abroad but these two people by come from. Acquiring bit thin there a chilly fifty monthly bottom up more than one year. Any. It's now we have rebrand that the rule so it's a lessening of dotcom group. It's over all of our visited new Phillies 21 points being. Is or rather a flight information earlier all the way close Somalia. Needs so of course they iconic brand lessening of dot com. Then on passenger last year. A provision in their growth companies. Serve customers in seven different languages. Into two big. It's a big big group Andrea is interesting amongst. All all five you're sitting in middle there is actually earned. Probably the most corporate of the intermediaries onstage here. I had been outside I talk about its early days when it seemed very entrepreneurial very fashionable very Casey people you like do business with. Do you do you think last minute dot com as an intermediary. Has lost any. Its uniqueness at all or all of a certain sense of its love of fashion and and direction. I've been through the early years. During which they all ocean water. The larger American corporation. Probably lost some of is. Unique characteristic. We're trying to bring back so so but a drug made aware that builds via com opening. Europe may first to a tune of curing economy. Your views. Thoughtful organisms. Mob along are on on there and the fan and a far from the one I'm representing. Our new way of distributing rather. We weren't all we are distributing drama online but visit away a full fledged glove religion said. We care if you're the product line from Sinn volley of ticket will cool so a there holly they've speculative tool works offered this donations aware. Nearly a department store you can find everything and anything. And it's through so very traditional business if you one. Will it salaries that you almost describe yourself as a traditional tour operator now so earn back. How how can how do you keep going why would people come back last minute dot com what's the secretive of your particular success now what's keeping you moving forward span. So where. A big one is the brain. Not only those with brand remark that the rules no I think good through we C led the good will look though. Was a huge investment in brand building. These and you should brand awareness abundance Mena dot com. While Europe not gone UK. And better matter because need to work when you've writers to consumers on the inferno. Every year brand they can read here during Q in their acquisition costs or an acceptable layover. Over. Anything can search innovation. Is so it's about technology. In is about customer service winner when yeah. Then in non passenger. To a serving in Europe if so it takes a lot of corporation now lacked confidence. Method search bump over this problem. But they also bump of this'll put to a negative because growth is absolutely fits your customer. Of the stronger relationship than what you know we with the mid person richer. And there and of course fewer force of the idea or the problem that the the issue of the brink's has served in this custom. With. A thundered through pulling their customer service. Available on the phone. We serve as a safe customers seven different languages. In think this is so here. If competence that. As bring so not available when doctor Bob distribution. Nowadays everybody's. As discussed in that hold their own supply once of god direct. Dong won in the medium. We're knew where the broad cross border. Of the server and find customers come along on from Meyer. For a New Delhi fronds being from Asia. It's difficult toward their great. On leave our chief information iron chains can do it because serving in commercial customer. The speaker different language they do different requirements in their own self insurance in cormorants. Their licensing needs it's complicated. The need a vision our services. In the flight the good a lot of the prominent transfer. They've probably prefer whether. Or corporate challenge any right to a big get this comp. We head you sound you sound just like the tour operator earned her yeah yet to. And traders issues there about running his business. It's its hat how long you've been with their PBR about Yamaha allocating a you're fairly new business. Well I made hinge on behalf of employees. O'Hara who perhaps. In terms of ten year so here I'm gonna more than half way into our what that that's interesting pact shouldn't we know we we won't know every visa sap itself as a major brand will talk about that. But just get a feel for the size the business now how many employees up their net EP says around two to an opt out. And employees in Canadian V consensus size the business there's certain know that over two million places he can stay. Across these 491. Countries. We welcome Brown's. Look over eighty million guests at a date. Because. Class your business as a year. As a snowball kind of business I'll explain what I mean before you existed. That they were business scored high share. And what are the biggest ones last CI which I think all of heard off and also ordered that as a snowball business the more supply got into this exchange bank. The more attractive with B two B travellers who would game book for more travellers they were the more oil but supply will be attractive and so business would snowball. Bigger and bigger. But again that's snowball rolling it is very difficult indeed. Have you any any feel for how NB ABB managed to get off the ground in the first place in get that all volley. A startup business started off as not a let's be travel intermediary business it was a let's find money to build to stay the in our apartment pay the rent say the three founders lived together in San Francisco they're trying to work together on what would the their business that they would be entrepreneurs in. And they had a pretty real problem or that landlord increased rent by 25% and they needed a thousand dollars to build to stay in apartments. Going forward say they realise that they had. Absent some assets they had three headed in the back and front room. And the there was a business conference coming to San Francisco which they were connected T. So they realise that they you know usual story conference is hotel's fall all massively price that there was opportunity to makes money you have people stay with them. A must have like three people come stay back 45 year old guy from India. Someone in the mid thirties from New York can end song that thirty for an L eight and they made money that help but what they saw that made me think that this could be either business they went to work on. We stick connections they made with the people they stayed with save. The people say with a when's the comments together said in the kind of below call bad coffee shops and such like gave him a bit more flavour of San Francisco even. Alka transom Fisherman's Wharf. And the really felt they were onto something when about six weeks later the lady from New Yorkers stayed with them said. Alright enjoyed some distress so much I've taken a job there on moving I'm looking for an apartment in your kind of area. So it highlights the importance of the experience. Of travel and being able to live like a local. And that's I think what he's and enable travesty gravitate towards Eddie B because you've got that local recommendation from. Hopes the person that I actually is provides property. But more importantly they're actually go to the you'll thought glide around do you view the tips to help you understand that there's more then maybe just the top twenty units that you see on trip advisor. I think that's what's been able to. Bring people to its the power experience this is just like futures were the product of the combination. James win you'll founders. Full actually would could build a business out of this it. Did they they have to go get substantial funding to them for all or did the business grow organically. So as a mix mean they had their their better shared a couple of weeks in their first an investor pitch like. And they had space into. Out of ten promptly seize power how long after after we had the idea was that absolutely. Or probably around 2002009. Out 10% see. Eight didn't respond to them said you're crazy the wine afflicted with this week let's strangest thing quite. I think they were bitterly they went to white company at a certain accelerator in seventies gonna nap winds. The way in which they started to hone the idea but also gets them advice and bill to build that business. OK fine and you know I've mentioned plan and Andrew he's now very well established business you've got to a half thousand employees. You mentioned has been nature of a theme the changed for culturally or are you still. Still trying to work. Have this culture of been you wind farm and startup that for the consumer. Well we'll have more people. Have become a big bureaucracy. Our hope not and I think in the I'm the most companies tonight what I've seen have a UN call live and here's what we stand for all ways of working all core values soar in the things which. We as a group believe in. Do what the difference I've seen from watching ebb in these firstly there. These were actually written before the first employee was hired. It is a tax benefit that there is about three years we've just three found working together said they have time to think about what they would do when the high the first employee. They're realising that's a very important. Step and that those kind of called base haven't really changed. And then secondly that they used in both are hiring process so every time you into your candidate units called them against those values. And it goes into a performance review so in an annual review Ross to think about the the call by nearly you would body emotional new body the least and then your peers and manager would also talk where that's I think as a way to kind of keep the same theme be able to be able to go. OK fine cumulus talk a bit about the Mont you know because of course third you. I think you've been involved in the business before on the monitor existed when you just cheap flights either by right. And and cheap flights dot co dot UK which was a fantastic you Laura L and drove a lot of business in the early days. Cheap flights then was of different very different kind of business than it is now wearers earned a BBE. In its next few years of just stay doing what it's doing. Dictators of the back how cheap flights has changed. And developed across your years at Edward money when when when did the business start. With cheap flights was founded in 1996 of a whole business. Well I think what's interesting is ECB changed a lot financially I think there's been a huge amount of continuity and what we stand upon what we do. Cheap flights in the UK thinking back will outweigh was a pioneer in the travel search. John Hattie founder of the business travel journalists and felt he never want to sell travel but always wanted to help consumers make better travel decisions. He felt that the Internet was incredible opportunity for. Meetings. Travel information more transparent more complete more honest more independent. And today. As of the med surge business. Mom on do grew. Pioneers. Brands that shake uninspired travel search today and I think the power of med surge. Is that it is transparent. And it does can consumers. A more complete more honest view. For making travel decisions. I think the travel industry has been rife with. Some issues for a long time it seems to be addicted to. To confiscation. And to. A lack of directness and the lack of honesty which led to a lack of trust. People complain in the travel industry about people shopping around late two different sites before making. A troubled purchase and I think the travel industry often has brought it upon itself seems very clear to me that companies who are successful in the travel industry. Create trust with. Consumers. And offer them direct and honest and advice into. Nation I think that the search what I love about the search what I love about Vermont group. Is that we are offering a complete. Certain information to users and build a huge run trust we've spent a lot of time. Focusing on creating products users laugh because we see an opportunity to create trust and to create. 2011. And which was a huge decision to a lot of courage. From us was that we were blown away by directing users find the repeat users father loyalty that the mundane brands instilled. And today we are very focused on creating product Caesars love. Because we see an opportunity global opportunity to create and brands that bring users back and engage users. An increase to long term relationship and for that we don't sell product fact I think not selling product gives us a huge advantage to be transparent and independent. And meant to give users and hopefully the most complete and honest view that we can and that's formula that I'm. I'm very proud to be associated with and and and and enjoy and think as a huge opportunity. But I mean Hugo you when. Mention the word trust that M and earn. Complicit in you mentioned trust was trust with the consumers. When did you also being tossed its suppliers as well absolutely we've we've got. For the last I've been involved with the business for a long time C has appointed outside involvement in March 2000. Have been here for five years now. I'm but we are working with Macy's the same partners over the last. Fifteen years at this same partners working with last day after day month after month. I'm and we work with hundreds of travel suppliers who love our product. We work and it's true and we work. Movie with ATA is that with suppliers we have some very good relationships with airlines. I would like to work closely their lines and perplexed why not all airlines understand the opportunity and don't work with us more. We've seen some complete detail little tricks have you benefit areas. Am I think I think the challenge is addicted to some old ways of thinking and an I think I think vision embracing transparency and working and have a great product the bring users back and his whole lot more complicated than that and start over complicate that theory. I think you're screwed I think just. You you'll you're not building up trust you for people to discontinue shop around. And the most successful businesses in the travel industry and the ones that create trust. Soon I do feel strongly about that had no we have hundreds of truck partners who have really well with airlines we want to work hard at work. With our partners for continued listening and dialogue and it agreed ecosystem you know we bring. Customers of the credible value for money to our partners. And the minutes into other. Good fine thank you yellow hanna's urban. I noticed on your little notes you said the about Chicago. Is that you've got an aim to establish a Fargo is number one marketing channel four and its affiliates. Which is there a modest ambition. The Iraq there are some very big channels that they we talked about booking dot com actually said you're friendly with them. I mentioned. You know GT able used to be one. Promised it still is one of the world's biggest. Wholesalers or ought intermediaries in the space term. Have you any thoughts about how your moved too far go forward to perhaps achieve that that just remind hole Vista Fargo. Will we we've I'm. OK so you know it should be OK fine. And urban. And. Who's number one we view when it comes to establishing the kind of trust Hugo was talking about. The consumer awful the hotelier. I think it's it's doesn't quantity. We build trust with consumers and I think brought all the great arguments why what do. What does that they knew creation mega search brings more transparency into on. We thought of the last bond. I think transparency on 5412. The best content on what five soared from decision making in and that is where we see supplies coming in would tell us find themselves. We you and what better quantum fund that. That's why we we have extended our initiatives now working directly with Mattel and it's not Q really getting the bad price onto a website but it's also getting. Reid. And better more granular content on our website saw their of the travel act again. Has the right expectations about which we Nolte thinking whether or death offer. And weekend air we can manage that travel preferences so well. What they're what are what are OK just be clear are describing as a as a as a matter search organisation. But do you actually go out if you got popular hotels do you go out and seek seek a contract for net Rita thought it's just not what you do. And not weaker but. Embedded where we come for marketing we're looking gases than ever tightening website and acting appetite. And there we work with with. With changes in mood of Mattel and on board them not their platform. And they basically that it they can they can have batted down there. Upload budget for defined budget and then run a few if you compare on a revival in order to put. Us. But it's not like to the street Paul this. You balance that Alex lately if this talk about your business now think that's gates. Which. Got up I suppose is relative relatively small bids compared compared these others you know work you have is what will domination. Andrea Meyer forty happy third jig is on the way in that YouTube is one thing about it but. All right it that bad paraphrase here but so executing on. Very executing not wondering that. Do you think you more detail but but but an addict has earned you you've seen have a very particular focus your business and and. But you've only likely to surprise contends the scale services and equipped with the youngest business we've found in the 2011. Arctic. We've got somewhere in the recent 25 million members worldwide across seventeen countries so we. They're not small would be busy yeah OK yeah OK. And those 25 million are they receiving. Regular notifications from here is that right yet that's exactly right so effectively consumer comes. Two to decide and signed up to become two bit to become a member which effectively means they give us our their email address and and sign up to our Sarah program. And that's how we present our products and effectively the date they will be receiving an email depending on their preferences between. Daily and weekly and we're aiming to put product in front of them that is so remarkable that it will make them do things they weren't otherwise planning under. OK but very simple proposition easily understood. Do you have any. Ambitions for how large you want to grow at all. Yeah absolutely and I think I think we're already the on track initiative to be the big east of our type in in the world. They're not that many people who successfully managed to do what we do voice Renault France's the is is the other notable. Private this year by the end of this year I think we'll be would be bigger than them. But that is a long way away from where we want to be we talk about wanting to inspire the world to to escape we want to to own this base. That is probably best described by the that there is a search occasion where consumer. Isn't a 100% you're exactly what is that they that they want to do the book one perhaps fuzzy variable in their thinking. They know that there in the market for a for a break of some description perhaps we came away perhaps a holiday whatever it is. There are open to some kind of level of persuasion around. You know or around what is the going to end up doing in this that space where there's not. A totally specific search events overtook who wear items like I talked because if you imagine. You need to get Paris on the 24 of April then you should probably get a better search site or to booking dot com. They have got the huge breadth and they will be guaranteed to have thousands of fans but definitely hundreds of Joyce's of that specific need. But if you want to be inspired and Euro anew in the market for a weekend break around at the end of April. Then I would suggest that by far best place you would come would be us because we will have a selection of things which handpicked. Which are totally exclusive pricing that you won't find anywhere else. And which are generated to the extent that they will be you into buying enough to to to make you change your. You position by Alex but it sounds for your business is being driven. Primarily. By key by inspiring and keeping a 25 median. Potential customers interested and engaged. So engagement is absolutely critical and what and that and for us. That the data the myth you imagine the amount of data that we've that we've got to be able to understand our consumers' behaviour. The advantage that we've got over many people because every time somebody uses aside I have to be locked into user sites we know exactly who the are what we're doing. And we have a huge amount of behavioural data on the people who are members which means that we can. Quite carefully tailor the product that we put in front of them to China inspired them in the way which we think is most appropriate that doesn't just mean. If you search right over London we're gonna send you London hotels for the rest of the year. We have to be very careful about making sure we're putting ideas in front of people as well as try to match their needs but. If you have search for family type accommodation on the number of instances then it gives us an idea that you're in the market for that type of thing. And means that we can tailor that I know that content better T units. Guess good proposition so we got five very very different businesses actually he onstage. Would like to ask question. Yes so let's let's have a microphone down there what while it's on the way. And Andrea you're you're you're sitting in middle here. I'm I'm I'm amazed at Sony businesses have come along last minute. I'll I know from the early 9495. It was feared these could get funding for start up businesses in those days faeces are very excited and actually at the time of a last risk location. I was working for us giving some advice to. A small hotel chain that want to launch a gigantic. Travel marketplace. Electronic one and as soon as last minute floated in and the share price dropped. All the PCs pulled out of online travel web interested about a year or so. Do you think there's any opportunity. In the marketplace for any more intermediaries that come along or do you think we've got got the whole intermediary space well covered. Where we're we've spent a lot of time looking at those start up. In the book for acquisition or just to get inflation in the years around the ward. My ideas that conveyed to could be a verdict merely be pussy business. Interest. You need redevelop mark. Of the European being its 2.4 me deep underfunding bureaus so far two point fully below really on lower its target. This because that they skin massively. Spend. A huge amount of mining could be risky in their average consumers rather more of them there. About a router bit different because they've been manage but. When Expedia came in the big problem that they will be a lot of market demand me. On the top now. Yeah organically rock saw all the money we spend a TE and so on. It's basically profitable and we reinvest. What. Says they just be here again is how much money had do you have Hatcher Barbara raising in funding. In taught into viable has there has raised one million Euro funding. And headers from and then will step. From year to year end and lastly we invested more than 400 million euros on. On marketing and at big chunk obviously going brand marketing. A bidding brands there. On on Mattel's popular and as but at your point is Andrew I think comment made by Bradford A today that in turn. I think. If you have. The company. But I really think is difficult could be even though as you can see business from scratch. In the year with funding or you know there be disruptive as the year. Higher with I think new law. In for a for an hour work there confined to be so. Opened a lot of the tomb the opportunity. So that provides services tool for the play during the industry the industry. The travelling there through Q2 very different players of their differ in their. There are still on on the barely changed so there are plenty of opportunity for all. The bead failure especially in averaging more buyer technologies of those are on this finish and services that is really big can now. In the game in nine European views have gone realist on them they've kind of users rather. And that. So there are many opportunities but. Tracked right. Effecting given that rioters tried to find they're. In need sure specific. Needs bumped right. Across the board because so is difficult the industry's first virtual so that you like Alex is doing them probably think yeah I'll I mean it further in Europe define your Greece but. The business. The privately see you June boosting the war but so there are many segments the amendment though then that you know the fourth quarter on one. OK to avoid the date of the UK where everything for everybody. Thanks a global will come back to this point in a minute but let's just take a question yes thank you. But intensely while away the farm just put your question context you what steps above can see you in the. Think the annual my name is Agassi cost time and their research director of the group broken of the variation institute. I have a question for James. James you'll you're exposed demand for European being basements are combined lose blood. I would dental seeing consul from what I have prepared for another conference's in the last couple of years. That oracle your recent success. Has to rule. At least to a large extent with unfair competition with a modern industry in the sense that there is a lot of information on and apparently evidence. That a lot of below thinks of Arabian being. Aaron not taxed on an equal basis or not act Dong of the prepared industry. And I wonder whether you have in common purpose. Now that's an interesting one James's it isn't it because term. You probably Saigon Huckabee probably say you're just being true that your business formula. But you you do get a BB does a lot of criticism from the had an industry that there isn't a level playing field. Is itself a com. Meant by best they had challenged Clinton was very broad if you look at. Hotels and there the impact of Ed in the need for example Pelton Pelton will work CEOS of the main competition. If you look at London occupancy hotels is increased for the last fifteen years. Its forecast increase for the next three years. The problem for summer London is there's just not enough hotel. Sale and is built a great around 40000 patients sustained London. And hotel occupancy is still increasing. Amy talk about regulation we welcome lots of regulation actually push forward. Regulation to deal to be enacted to help people understand what they can and can't say for example in London around this time last year. Or laws put in place which meant that people free to share their homes dropped to ninety days without having to going get planning commission get through say a sandwiches. Very clear what happens and that the regulation is set up I think the where there is the difference in Seoul for example. If you feed standard tool for example this proportion to start the business you're doing. If you to come and stay with me in place I list it's there it's because. In my family we're not there it will be for twenty the data in the year the average hosting the UK pace for about 45 days in the year. That means for another 320 days in the year. It's their home which means that you know there's building regulations around all the things that we live in. If someone's home that anything take a lot of care on fire alarm to ensure the best they say it's. Different by the business amino digit changing tide I think the with a new. New York hotel association month others were not being there. Fed data City Council that perhaps a being the accommodation should be taxed the same as they are. Would you be worried if if that happened with would that be concerned where BB third. If if you're a if your your property rentals will be taxed just like hotel rooms. We want to make sure that this taxes which worked for the actual like homeowners. And the city. Say for example we've been collecting tourism tax in places like Paris announced an unremitting bad teeth of the add a lot of work around income tax fall further fought a hoax say no we want to assure that we good partners for cities. And will do whatever we need to do to make sure that its. A fair taxation for. People in that process and you have certain bidders eighteen B. Which concern you that that. That accommodation routinely presumably competes with chebaa accommodation. Do you feel there's so little Plainfield has no concern. At all. And their different perspectives for us there's this not concern internal so we just try to make the market transparent OK health for me. Eight yen and. Will be lifting properties that available online at what advice for an end Justin scheck do you have any ABB C you can sell Ed BB common bishop Richard barker. Not at this point. Now by mark Jenkins would you like to do that. That I think confusing for consumers so how do you see how how do you deal with the situation so let's take London against an example you have you know what. This Hilton with it hits your deluxe hits the sweet. Many might have. Someone spare room in. Barra. An entire face some rocks like that the nature of what people by doing the minimum commitment. Think you know if my if this thing. And so what remarks when let's say it hit month say that fitted with search I think the that war has its basis in that. Around 20102011. Their founders and our founders did not work together. Different rules for them but attentively. We look better or ten quickly deliver I case I think. There's no competition I think brilliant love what you're doing really create inspires more people travel today opens up the world for a new generation people who perhaps we look forward step hotels could encompass people. But I do think search makes sense have separate them it's certain different criteria and it's very hard integrated. In Tulsa OK you know makes sense executive actually as a distinct product figures I've just I could become if you can make friends but that there might get it. Tech heavy duty wanna make a comment there but introduce yourself speak what's out you can see what other. Morning could be made T news.com and it was still Y comp the data Illinois that's why I think that whatever happened and question for Alex. And 25 million members is pretty impressive I think this around there or thereabouts the same is travellers whose membership base which. It's probably two or three times is a dispute. So can you tell us a little bit about how you manage to get back from a marketing strategy in. Not least read this successive something results coolest TV advertising which she did a lot. And certainly few years ago but how do you manage to get 25 million members so quickly. So I think a fundamentally. There's there's a lot to do with with trust actually you go you go talked about trust and I think it. Developing a proposition which you can really really deliver on so we focus. Again you've talked about pricing in transparency in in the that the travel whizzes. Wanna things that we absolutely religious about is making sure that all of our prices are checked many many times during the course of production. We make sure that we provide links said consumers could go off and double check their that that we actually telling the truth. We have a pricing panel which explains exactly how we calculated discount on what days where you know an against against him so what our core promises that we make to the consumer. That we select only the best. 45 star boutique hotels. And that our prices absolutely exclusive to us we work incredibly hard on keeping those I think that's one of the things that differentiates us from. For a from many other people and one of the reasons why. Our members recommend. Recommend this to other people. We get quite a lot of what of organic sign up from people who you which we spent a lot of money on marketing and that marketing is all focused on driving sign up. But that that paper sign up drives gone across a lot of unpaid time off as well so we we have a I think based on the Monmouth on the fact that we really execute our service in the very genuine way. And create trust we've been able to build an audience that's. That's happy to recommend this to others in terms of our marketing strategy. We have taken a very aggressive combination of digital land and TV advertising. And we found that. We below remain TV advertising work just in the same way as us digital works you know we found that we have. A method which enables us to understand which TV spot work. How much sign up they generate for us where we can optimise in the same way that you out of your optimise. The keyword campaign you so this keyword is worth paying this amount for. We know we can say well this daytime spot on this channel for this type of program is worth us paying this kind of money for a more when its not maybe we drop from the from the program. So we can vary very carefully tune our TV programs. RTB to get your. To give us a same kind of level of us proficiency is as digital marketing and that combination of the two has been fantastic. And then on top of that we've got the added benefit that. Although all of our TV advertising pays for itself in terms of the matter sign up to generate. It's also generating brand awareness for Sony UK now we've got about 65%. Brand awareness. Been not much over five years. And that's a wonderful part of the halo effect that TV. Has given us so surreal combination of of positive factors that come up forever pretty aggressive. Marketing program combined with us delivering on our brand promises thank you go here. Spain chicken make payments on non on this as well as I think there's in this apprehension that newsletters or dead or that it's fun sexy hot old fashioned for marketing. And the crucial differences that news newsletters have moved on and now more personalised more relevant. And third for the cheap flights businesses actually a frightening part of our business and wanna fastest growing parts of our business its profitable. It sits growing quickly and and we getting smarter making the content relevant mean I've ever. Ten million opt in news Anderson it's growing at least 30% during the year without any funding and wanna profitable basis and and I'm on the global footprint in the finding that. I'm more more partners will work with us. I think and one particular way in which works is that I think. Performance based advertising. I'm which was so successful in. The early days of online marketing in search and is now available in newsletters have weakened. Do much more based on performance basis and that doesn't see extremely attractive to industry is inspiring consumers to. Takeoff on book trips that they haven't consider that done. I'm parts of the so it's very exciting vibrant area. The Delaney continued use of the stent. Let's as a really good point actually because we actually get complaint regularly get complaints from mark consumers where in that their ISP for some reason well you know what about Murray mound or in some way they'll drop out the email program we've people who make less so whereas you know with whom we love. And that I think is all about providing. The right kind of content if you provide inspirational content that people love who will love OK great emails but in the same way they hate getting cracker. But nothing will spanner. But deliver the content that people want inspire people and they will open your email time after time after time because it's fun it's engaging its inspiring. Aviva also pointing out that emails moved on so I think around 470 or 80% of our users read on the mobile phone on the go. So that completely changes the way that that content is presented with targeted for kind of information presenting. And it means that people actually maybe have more time now to read and newsletters from businesses because they can browse on the bus one chain that's five. And yes or we'd all agreed that that that latest advances in customer data and understand your customers leading to personalised. News letters or emails is making a big difference benefit the open as you say you go with people stemming the bus stop. In his spare time with what we now. You have us with richer Fargo I'd seen some quite. High profile. Marketing campaign fund not stake. What kind of my industry father spent the year on its marketing. What you might call by world either I think member London Underground advertising area for example I haven't had your TV advert as well. Exactly so we will run TV marketing 55 markets that sort of really all over the floor and it has been a great success with the most well known brand in Europe and in India and Brazil in in Australia so we will happen over tool. But the case in Europe. And their likely. Bring it to other markets and their end in the US six out of ten people nor us. Today which has been we way to plus as a whole what you have to spend which leave that. Last year we spend more than 400 million on marketing. And significant part is obviously a brand marketing and Ken I think the particular being that would have practice understanding. Which program which channel works well floods and analysing re on the spot basis the performance. And we nor way to spend money they're not to spend money and it's it's a profitable level up if either. OK. Andrea have there compared to your marketing budget. 14. What course of your budget night so therefore dire or before tight budget OK well given the likely outlook for the pair. Donny Euro so indeed so. Few comparable. Market. Will work the it's very different because there though we've got off online and offline. We spend. Where. I would say. Serving the 50% online. Where online news service search marketing but fizzled amid the search because for a subversive. For Ben is a revenue problem as a marketing costs for so yes so far I don't URL M Morrison bowed out of paying their fair. Then there. To a survey of in our experience though. The through. Using Tribune in their future and where did so one of the biggest change of the Mormon and only then this when Alexei that is so it's important to find away from major investment. Into video optimised for the investment. We come from. They country of the bra flies cut it was very much and wants me if so worse search marketing where been that the work we've will start the compound on. Very easily you get every click you know if you're paying the market doing all or nothing when you've gone to view. You've compounded by out of so you put money on the pay violin in difficult then for adjusted though as you broaden their. So it's a tornado we're uniformly. About the comp give it's interesting cause a lot of what it. The stab Sununu intermediaries all about is actually gaining that ran power. Something I think James Ed BB's done very well through. With didn't respond but sticky question from for backing yes Tillerson you I'll wait for. Pied. My name's Andy pack them from trusted house sitters. We do the presentation yesterday afternoon. And what we do if we basically help people find a pet sitter for free in exchange for a place to stay. Wanna see you guys are doing is is is is growing the sector whether it's vacation rentals law holiday. Spontaneity and so forth all we do is help more people travel and we've proven that. We can help wallet wallet for people basically from Rita stocks travel so I can't find adequate pet care. And I just wondered whether it's example of what we do other potential partners how much new radar. How much of interest in his to look at partnering with people. That can actually help grow that sector do you. Give a solution for customers. Competitive advantage wanna be my corner but I think really help people go away make up marketing. Well that's interesting YouTube to would only like to comment on whether her I think I can see I can see that you might be delayed the sector cause actual leasing people for travel. Under spying change EU growing sector you just taking customers away from hotels. And assume you might be dragged the sector earn. But coming up well item below that got a question you should direct that deliver W got a regular Sunday could be similar Tivo it's like. Growing sector in probably that the big competitors that Ed indeed has its people. Staying home all at stake with friends and family I think one of the biggest kind of nation use cases I've heard it dead in the is if you have. Even your parents saw your in laws. And they would come state review that previously you kind of went into the same house but lack actually have them stay somewhere Poi about. Couple minutes walk away. And means you both Hubble space for everyone feels pockets or brown like big events when you know thinking by the World Cup last year in Cardiff there. You can get hotel room film from probably made a say there is a lot of incremental bitterness into businesses like yours. Allowing people to have freedom T beer to travel. Is very important that's additive to the total truck market. Hugo it'd be beat though it sector. Some might achieve in answer that obviously it can't. Yes I'm sort of blew by going to say dad had various services and great we love and things help people travel so if we pass annual details type content teaming might. Do some promotion we're right about of the story. We continue trying to generate content we think useful helpful track. And indeed you know what do what you said your business I think all these people out of on the stage be happy to learn about your business. Yes because certain that that's a way of actually getting people travelling and we like happy pets. Just yet so take Hugo's dead baby beaver in the sector. And yeah I think so definitely we think can be hard not to two billion dollars of spend. A victory fund. But it didn't come back. Click the about team delayed by Vivendi currently a better known. Theme time funny failing on. I think I think it's great need of course encourages people of travel that we're all about increasing the size of the market I think. The size of the market is enormous and if there's one thing they keep me awake at night it's not. Taking advantage all. Executing like held clue. Seize this opportunity this is an incredible time in the travel industry and can globally and it's it's never really been that they would be. Such proven marketing channels that you can execute on globally has never been such rapid adoption of new technologies that enable people to travel. Has never been seen people. I'm starting to travel for the first time around the world has never been seen people coming on line around the world. So it would really (%expletive) me off line be really gutted if I look back felt like we haven't. Participated in this incredible fear of change and opportunity. And I think. One thing I liked it the end of finders transmit battle not have a regret about having not taken advantage of your opportunity. And I think everybody who's involved in setting with surrounded by really interesting companies doing things that bring people online in mid travel. I don't dated as competition for I think you know it's huge huge market his political future in yeah yeah. Hanna's what what's keeping you awake at night that the addendum for the slicker. Hotel. Better search into your come along the bike squad Google something like that and to take your business away fine. I think query what would keep me awake at night is. The rapidly growing organisation solve we have roiling from. Those small company few years from 1000 company. Salomon employees and that is where air could a company. How do you keep this feat only keep the speed of innovation Howard you keep information flaw in the organisation so we can take fast decisions into the right direction. And execute globally in so many markets and so many languages. And hutch in there and keeping the pace keeping the speed and that is what. And here there that's what I'm thinking along the Buffy and to keep the company transparent a lot of trust in the company's form deeper properly Java. Not politics in the company's of these over things. Which which I'm thinking a lot of data Alex do you think that's a factor. In in in being an intermediary gotta be fast moving. And affect your your become victims of your own success. You vote too big a new slow down you're having all meetings and a and in employee reviews are doing everything big corporate still an end. You end up just getting bogged down. And as a huge danger of that happening and I think we feel we're not quite the kind of scale. Janice's talking about with 330 people now up from you know we're that would have doubled in the last last two years easily. The complexity that comes with that no certain break points where you fine fine things. And exponentially more difficult than they were when it an act you know territory expansion is a classic example. NASA in seventeen territories and we certainly going to employees in at least ten territories. Everything that you implement has been done ten times over and there are certain nuances across different churches would it's really really tough getting all that stuff right. And keeping that entrepreneurial mindset the pace of change. These is absolutely critical that the one thing you guarantee is that if you get rest on your laurels if you don't execute properly somebody will catch you up decent incredibly competitive market. And people always looking at you looking your success thinking you know what can we replicate that there always people who are. Who throughout their thinking yeah where we've we could we can grab a piece of that they because at year end of the day. I think ABB. Maybe you're self third perhaps cheap flights early you while really. I suppose user friendly tech plays almost you're intermediate goods actually owned hotels you don't earn. Owned resorts you you your businesses could be replicated. Unless you can run like Helen stay ahead of the market. Place six execution is. Absolutely critical and scale is also critical as well that's the other thing which keeps intermediaries. On the different or that the successful intermediaries on the different plane from from those two who've you don't get there is this a certain. Economy of scale dollars of the celebrity get from you know if you take our. Situation for example the fact that we get to leverage our supply across seventeen territories means that whenever we start a new territory. We're already 78% there in terms of the content that we got four for a consumers and that. And scale becomes nearly talked about the snowball effect year on network effect in in the business but execution is is absolutely critical because you right. We don't own. Anything physical in the in the innovators however having said that. When you own is much data owners many you have as many members you know tens of ownership only in audience I would argue in our situation is the absolutely. Article four and anyone wanting to add therefore put doubt we think forecasts a critical. Because of the Royale innovation you have a lot of talent in the company you know a lot of and maybe you we foster's available went on you get very tempted to say let's do this let's do this let's do this but so flags list of this and and really. Getting into during that the teams into the direction we deal would tell us how we can help better than anybody else. And up faster you know making you do and you can see on screen they have us that if you need it there's a question. What are your views on core brands now offering membership rates and we can break parity from other OT is can you see that there. I'm just wondering whether. The whether you think hotels. Consider trip Fargo could be a of valuable intermediary channel. Or actually hotels would rather be happy before we think he's just went away and ended that they doctorate with consume. I think coming to that of the members yet rates. We have with with a lot of supplier range of supplies they're offering membership weight on what. We see when work within the bill would tell us they they want to promote Dell website and A getting travelers' trip there what back. There does when they've more the better get better rate through buyout and and there are a lot of patterns around. With. Supplies of want to display into what we want a thorn. So there's a lot of discussion there and then I'll opera broadcasts test elements together with our partners and end see what works for board. Five the and his mention there of of mobile wearable technology it's quite interesting. We also be here old folk in business. We got a mobile track here we talk about wearable technology to a Generation Y. or generation said. What generation A that come along now I think they wouldn't even distinguish this there's anything called mobile technology all over. Or all wearable fifties active just like that it is just like this we know it. So but we with the with finishing these things are separate things I won't mission though barker is clear is clearly its mobile. That has. Where will not have any better relevance your businesses at all or adjust just a nice people put on the Iverson actually you don't need to use it. To further your business. Dimon about what a big things they know that obvious trend in our business that we can see is that screen sizes is absolutely critical in terms of determining people's behaviour so. My instinct would tell me that we took about where a wearable technology. You're our dinner and relatively low opportunity area right now. Particularly in terms of conversion rates if you think about people exploring. Travel product there's a lot of imagery involved there is quite a lot of complexity there's a lot of cost. The smaller the viewing experience. In our data tells us the smaller viewing experience for less likely the consumer is to ban to engage and convert so. I think undoubtedly will find a way off engaging with technologies like that they have watched but if that's what we're seeing right now is that. The big screen isn't going anywhere in terms of intense of its relevance or Hugo. We think about flights we don't need food class flights which needs of the price and availability of so I think at the end of fed thinking on this in the zone area that is very formative and people are experimenting in. It does seem like the apple watchers into great thing for the area we're in. But the way I try to simplify myself as a I think deftly moving from. Misses a summer it's a cliche intermittent enforce a forgive me but you know moving forward in search engine to a recommendation engine in Europe. Where. Increasingly you're gonna have to give very personal lines. Responses and results to consumers and doesn't really matter which. Interface on whether that's through voice activation or whether that's through text and whether it some increasingly based on the algorithms saw a high when it really is that gives you intelligent results and give people more personalised a lot of really believe that is the future and I think that's incredibly important. And I think exactly the form of a win it's not exactly certain mean in their text based people really focused on. Just text interactions. Like low or text and a and Richard we're interestingly been mutually naming Schumann living universe know. I certainly believe that and will be interacting with computers on the voice level whether that's a mobile device when your home. And I think that we have to get smarter about giving more personalised and very precise intelligent responses to consumer. Quests and I think that forms part of the same thing Wendy's wearable on what shape that forms over what time spent I don't know that. I think that's the direction it's going. OK I'll I alike think maybe twenty years' time would just be plugs straight into our mobile devices and we can just see things upgrade we put the screens at what little. They'll be part say. Bob you've got to point this given my foot down Q while Michael is coming down change quick question few coming up tell us what you're doing the business travel. Area. SO well a lot I guess yeah the great ironies is that everybody stopped about a business travel products. Availability of course that's a tall with the slightly the conference guests. Probably around like 10% of our business is a business that the moment they've been looking to be much more to go provide because things that. Business travel particularly like larger corporates would want to say you know centralised dashboards. I'm standing where all employees are except such as they've certainly been doing what we see that as a both awaiting you'll see grow our business will save my previous job I spend probably 150 night on the road that. Sometimes you want a different experience when you're travelling for business that you actually want to have a kitchen we want to have like washing machine or you actually want to live in an. As a society just just quickly what what percentage of your bookings the where BB our business that 10%. About 2% or so but so will you be promoting to business travellers in the future all we just see what happens not bothered. So will win we're doing work as a troll so we have. Teams who working on business travel as both a kind of. Product particularly thinking of travel managers within companies is they're as the customer and then ally that we've. If the greater brand awareness and people looking to. Travel in the same way when they're. On military resale business. OK five. What we got a quick questions out of obviously casino bar. Hi it's rob from Greece what we do Pitt's pet travel money product recently launched in winter here travel lifted travel money market. Yet down recently launched in the UK and our next challenge. As a business is to get more a European users to sign up. For a product is its bid this solutions that we rely on funds covering both ways so. With that in mind it is keen to that probably Alex in Kenya and assist in terms of European expansion how you manage that. What sort of presence you have locally to manage that or is it all managed out of UK. Alex would you like figure yes joy when I think it's quite it's it's probably quite specific depending on the wave your. Business operates four from about from from our perspective. A really important part of our operation is clearly at the local sales team who are dealing with domestic hotels on the ground in each territory said arrest. Each territory has its own sales team on the ground. But we have we've got three main hubs really Europe said londoners where more than 200 of our people our. That were mostly administrative functions are certainly finance and marketing centralised in London. We have a big office in Berliner we have another big office in Warsaw that's really result of the four have a very successful acquisition. So I think there the answer into as the way we manage it is we've decentralised sales bad because people need to be on the ground talking to local hoteliers. But we centralised as much of everything else as we possibly can in London and that's worked for us because I think we've got a lot of processes which can be with which can work really well. Centrally. I think varies but there's always an argument at around whether or not marketing should be more localised. And I personally don't think when if you look at that the group you know the greatest exponents in the world producing marketing booking dot com lovely do everything out of Amsterdam. I think it's pretty Greg case said the total you don't necessarily need to have marketing expertise in every country we do however use local marketing agency set for example buying TV. I don't think is something that gets done particularly well way agencies across several countries. So there's there's there's a mixed but I think you can definitely get away with employed local service providers. And running that from a centralised location but I think the idea that you can do things entirely centuries probably. Is this is probably unlikely period. Forget finally we we within a closer coffee house let me just third. Asked start with you James last call you intern. If we back here into with three years' time. What kind of intermediaries white might we have onstage then that. That will make Hugh there could be stayed. And so all my god why we think a better idea any thoughts on that chains. When that's gonna happen now I think date. Notion of intermediary is quite and internal industry you feel it's thinking about right. If you do what people want when they travel it's in the things which of growing avoid an important but even more so now it's like. What the memories and experiences and what that actually feel when net particularly like on holiday but saying things effort for business. Any company that can actually either. Enhance or provide a different way to provide. That let that. Pure experiences for what person wants will be successful with that ends up being kind of technically an intermediary you're not the things they think. OK thank object give any thoughts. And. I think it's quite compelling and exciting to imagine there might be some art should artificial intelligence based search for creating new interface. For bringing back travel results for the Seattle PC updated at four. Yeah I think I think two point earlier I think it's really hard to build brand I think S and consumer facing brand it had to be something truly exceptional but. I think that could be interesting is probably not something that we would all be focused on to do. To such a degree that done we we've done really beat expectations I've just kiss that possibility but maybe it's gonna fadiman Indies you know if it's kind of. East will I don't look at the beginning of being the of the Internet age I was talking about sir intelligent agent software that never came to be. And make we've now got the artificial intelligence to think more about that so. The good for Hugo Andrea. Are on the same line. There's. I'm very sceptical long wearable. Everybody doctor Jens wearable but then I done think that there were coming back video in the fifth. Would I think came every U gene therapy in the next 23 years is so machine learning and on this survey showed that is going on. And there in the bid development of cloud technologies and their. Use in making this kind of thinks. Which are very we have a very complex and the worst thing because capital the academic work. That there making it available report for Vista into the normally is offering in machine learning club service. And it is just launching open their. So that the there I expect that these would Levy who achieved by then there in the end they expect that they complement they would be able to read it. And they say in how we use with tool can view both arrive by seven insulation for the customer I've been warming in the future. They wed to a lock off so chin confines of buttons or rather a mechanic on security. Prompted a third of this convention on our mind our Q1 them. And I think good for the future period so it's not a win win proposition because of the term. It's. Which kind of a common vision movement which governor for experience and you're looking for. Over again over the article above within the boom here a lot of on do some kind promote acutely being personal. Of the big city like London infuse phone come then known thing firing them work with office. You staying there I mean every may borrow those has gone fuming as is on. In so it's not France a price of grain fill. Copper hits the use Euro but it is a visit itself as the your week we've with Hugo about us thought today more than a computing intelligence owner had been the day that cool blue is. Mine where they should say we are excited about ourselves who have taken on our first data scientists to try and do exactly this. Tenancy we pending we do believe in return for the money around the office next. Good good good yet. And it's any thoughts. I'd seen certainly machine learning with had a big impact that we offer heavy. Invest in and pursuing and informatics and you can use that for personalisation. I think any idea what's chat boards and so on there's a long way it's the world before the year but maybe five or ten. I think one thing we will see in three years or more is. More consolidation in the market. I'm pretty confident that the what happened and there I I halt and I think that can happen supplier so you're suppliers themselves they would become stronger. As the technology is moving and I think am feeling very positive. Development in terms of structures and suppliers then mines there and and and I think that we will see supplies getting stronger and on the other side there a point of quantitative. Alex any thoughts for the future. Very very similar suited to what's been said earlier on about particular typically better serve the particular about machine learning I think the I've been watching people trying to build recommendation engines for the last fifteen years in travel and never having quite practice. I think the person that all the business cracks how to properly recommend. OE relevant. Accurate personalised approach to somebody world. Will run away with things. Effective this gentleman great session I think which affect change Hugo Andrea you have italics very much.

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