Panel: David Peller (Booking.com), Paul Whiteway (Skyscanner)
Automatically Generated Transcript (may not be 100% accurate)
So what detect duty changed the booking process and the next one is. Which part of the customer junior being in the the most can merge those together we got the booking the inspiration. Tech impacting everywhere. What's most important question that. China is already available until I was distracted. Legwork will think about tech in in terms of the booking process for me actually what's more interesting just seen. From Paul some it some interesting slides regarding messenger applications. Actually think the sort of aspect of social commerce is becoming really important and people. You know particularly in the leisure space some and let's remember what sort of need to segregated between leisure and business travel. But in the context of leisure most people will travel with family or friends. And being motivated by what your friends want to do away friends are. And not just the act of travel but what actually going on. Destination it's quite important so I think the idea of actually bringing together the PL that the essence are. Social compact and travel. We will be doing it for years but now technology is actually think yes that will take place at think about that as well so I see that change now. Coming through and just in terms of innovation in intact in the customer journey. Again I think. All others in the online travel booking industry. Have honed over the years the idea of how to create a great store. Perhaps an area that we've we've all perhaps done less well the job. And is actually inspiring. Customers that have less of an idea of where they want to go. Or what the world may opt for the mid terms of experiences and opportunities. So marketeers like talk about the upper funnel. Particularly the dreaming and inspiring stage of travel. And I think most of the major players in the industry are certainly exploring how. We can provide more open experience that customers in that sort of up far more dreaming. Inspiring and imagining. Thanks of trapped in yeah just directors of extent on my if you think about private life cycle slide in terms of the five. Phases. Every single one of the use lasers used the impact of the dramatically change by capable key. And in various ways so inspiration whether it's through tasteful whether absolutely tomorrow whether it's through. What. That you're helping facilitate the book is with technology semantic search for waste. Politics periods that the post travel sharing. Every aspect of the covert practices have been impacted massively as everybody knows will continue to be impacted massively. At accelerated rates ebitda accelerated pace. And across an increasingly. Number of fighters and applications so. I mean he easily mistreatment of whites need to constantly changes which would have otherwise we will know. I found Burton as in Japan last week and and so really interesting presentation from a fascinating start up. No I'm not that we sure what they're doing is. Completely unique but they though exploring the idea that. You know there's as a huge cultural shift taking place in Japan where the country's preparing for the 20/20 Olympics. They expect inbound travel to grow from something like twenty million. Visitors year to forty million the year by the time of the Olympics. And they're one of the greatest challenges is language. You know the it's insulting that we as visitors may expect everybody to speak our language on rival foreign country. And certainly in in Japan. Want to get out of particularly downtown. Tokyo you'll find that English certainly is not well spoken. But there are some amazing. Places of interest in them beyond forget. Whether rates temples and monasteries whether it's or whether it's small museums or otherwise some of these. Organisations these places of interest have never. Really thought about international foreign visitors so how would buyers. As an English speaking visibility sakic going experience. One of these beautiful and unique and and and and each places of interest. That particular startups thinking that you know you can do the equivalent of the museum travel guide you know the audio guides you get a museum to. Maybe you choose that that add one on top of your your entry ticket I think that you could have the mobile application. And that they themselves will go in and prepare your audio guides in multiple critical languages for these places with interest. Nights in. Terms of one of the biggest problems at. Developers have today's distribution. Getting people actually download and use the app to this is great places of interest that has the marketing channel for the app. Bid that other app producer actually create content for free and then does have revenue share. With place of interest everybody sort of sort of when the expenses. Or litigation in benefiting from that experience. Nightstick cars it's using tac to enhance the actual experience of a visitor at their place of interest I think we're status. The tech actually make the world just a little bit smaller as well and bring us all into experiences. That we would have otherwise happen again particularly for leisure travel experiences become I think everything we don't. We don't mess we remember that we flew in 32 G. We remember what happened. Once we lap. As quote you BR applications. On that well to take big interest. Deal that kept comp on Google how they impact you. I'll iPad or at a chuckle because it's it's funny that this question. Comes up every single panel every single conferences every single preservation and has done for you know the last three years. At an might have a risk on with. They. Absolute honest truth is that if I look at our data. I'm just hasn't had an impact that everybody does. Anticipated landfall warden for several years so I mean I think it's in. For the that the the famous father baby grow your only the paranoid survive its its its power to. See what's happening in the industry would keep the Monterey. But at the sort of don't keep you up at night we don't worry about. Notable for the sector. We focus on our growth as a safe a look at the day they know we're growing a 50%. Attempted use the Euro a year so it's not a packet growth particularly this region. Broke its a bit higher than that there at around 80%. So we said we're sort of keep an eye on. What do we. Ayman another sort of broad comment I'd say is that is as a very much industry that will support multiple providers and end. Generally competition is good think as it makes everybody better. Just improved hot property for us for Google for opting for a crib about everybody in the industry and obviously that it would for four Q4. I think people question he's coming up because. What they do is never really understood. That be true it. I would make a few comments on the first well what if questions specifically is covered their plans affect. I don't know that Lambton. And and so I wouldn't be able to answer that although have a good friend in your flu like Google may they be able comment when we come onstage later. And I have to declare a little bit of interest back him. It feels like the last century but wasn't either as part of the team. Management team the company called ITA software we sold that business to Google Maps now Google flights. If we go back 2011 when that deal closed there was a very strong rationale. In the mind of Google for but what was quite a material acquisition of the 700 million dollar acquisition. If you were the type into Google in 2010. Flights to Singapore you would see ten blue links. And those links would take you through an online travel agency now I'm website for somewhere else. And you would have to basically repetitive the conduct research. It's a pretty crappy user experience. Eight ingrained in me from my few years ago will that the global mission is organised well information and make it universally accessible and useful. It's not that useful just get ten blue links when you're specifically searching for flight. And so I think being focused on user. Google fund the right thing Google's tried to provide more actionable and relevant information to acute. And Google flights with one very good. Example. So from my organisations perspective talking we work. Incredibly closely with with Google I don't like to think of them served as a friend Laurence competitor. There just a partner that we work with them. And we think it's good to partner together. In many different areas. Think that they focus on and the thing about focus on the took a bit like I was speaking about. A few moments ago. Focus on the internal culture. Get your people to focus on your users. And kind of over the best possible user experience cap. Quite literally then won't matter what other people do and by having that internal. Sense of trading environment for our people into the successful. And to continually try and motivations fire users come to wire for an amazing. Experience around. Accommodation in the end when the accommodation experience. And much less concerned about what other organisations that. The very last point given that we're sitting kind of in the heart of Beijing here. I think is really relevant data Google answers in the pocono arrived just the reality. Career that. They don't have press as far as Google search is so. 85% of search leads to make China. A Russia. Yeah that's so it's it's not this one size fits all global the world is consuming by the poor that is Google their friend. Their partner. And I think for most of the assets that much more interesting thing about how to extract value. From the machine that is Google rather than to the sort of try to hide in the dark room paranoid concern that consuming the world because apparently there. Lot of suppliers think they're. What what a lot of tell suppliers do we're. I have talked a lot supplier that they see you your maybe not here because with our differences but certainly Europe. They feel that earned Google its virtual monopoly and the money going to Google via security as we that they can't play on the same field. And their trying to find other ways that. Any comments on that and that has. OK I can't comment on what suppliers think about the you know flaps fit if a partner ecosystem. Wait we focus on our product the customer. Am not here to the sort of defer them or otherwise their position. I would say that I would be very concerned if someone came to me. And told me what I have to show or how I needed to show things in mice got. And so area if you go back to your sort of educated UK go back your A level economics of if you can go back that far you know monopoly in itself doesn't. Abuse of monopoly is bad idea and that's a fine line. We don't need five sets of railway track kind of a natural monopoly one set of tracks. Maybe with different operators are. I think can Google's mark public utility. Made its mark and it's not a public. In the sense of governmental or otherwise owned organisation I think it's entitled to run the business. Thinkers as long as it does so with the balance that way it's entitled think about its core mission of how to. The best serve its users and I think it's up to each advance to figure out our own strategy. At how Bethel average what Google is greater than one thing it created its audience share and so I think. Where my booking dot com at how do I best benefit. From the traffic that's going to do. And have a right yet some of that traffic can wait to thank favourably. On clicking on the link coming week put dot com. That's open be conversation let's go detail. Convertible chatting before chatting what you have that yet without that it's too early omit it if such a new technology. I think there was another mining terms for a click throughs on the I'm a bit on a level into you know we're very much an engineering made organisation 50% of employees early years. And we constantly opening new technology but experiment with ten. No we which you know five will be useful to know which true you knock out up. I think the semantic search box. We search all the ideas such technology but two were linked sort of draw any conclusions that. Outperformed. And an extension of that is. I think those critters like why we to a peak which coupled with click through. To the ball inside. I think our response that would be automatically what we want to do use it is provide utility impact the customer in would have. Makes it and we know that the Tokyo possible. By Citi expects same thing. Of the mobile persons that actually we know what users for example searching on the T a pupil. Trading. Us sort of in the morning way to work but ultimately they might go back. And a complete apple. On May get axed so things like universal will be provided for the same period a plane to the underlying. Principal if you use derivative publicly about who you know form makes sets. And not get too worried about. You know ease does that outlook on a reported a peek at that point in time now is the right thing for the user yet. The question implies that box have utility at the point booking wearers I would suggest that actually think. Spots on more automated services have a lot more utility. In the area of customer service. So an area where oh where we are actually making very extensive use of the sort of technology using communication between. Media pre arrival that stage one of their questions that we get a lot of inbound inquiries about guest is. Is it OK if I checked in at 11 o'clock. And instead of asking hours we'd like to guess to be able class hotel in all property if and accommodation could be made. For the guest check again so again go back decided that an English speaking guess that may be checking in to a Japanese hotel and I'd boutique hotel where English is spoken so through our system I can actually make the point that I would like to check in 11 o'clock that morning. Beat that property can see that request in Japanese they can respond in Japanese. With the sort of pre defined option. And that it will come back meaning which now that type of fox. Utility. I think is old rate valued it may not convert an additional bottling. Outside clients got nothing to sales props that. I think being able fourth of that type of customer experience again is going to fill the too much more engaged customer and hopefully great loyalty over time well. And services unit in the matter as your offer if you can cater where did OK. So we. So quickly that. I think there's. Two different business model that those the yet the Amazon type which is efficient. Not a good service. Durable. With that. And that. We may not be the best price so there's a battle between customer experience and right. Do you think that's the way it's gonna go do you think Amazon. Amazon way which you guys who are producing could you're so convenient. Une une betting that so much with Europe finally not the price you're too. And so opt off about term. OK so in terms of armed white. Prices prices is look we know this from date correct you know. We're an organisation that that the simply does you know hundreds about the baby case so we know users. Intimately. Price is extremely important determining factor for a majority your views. And therefore it makes it to focus on terms of that the that the sort what Fritz. Having said that it is not the only factor and is not the most important factor for so. What are users so as the organisation. We. Internal use the phrase from price comparison product apps. And that's not all want to features that we have brought out an Arab process wrongly out. To facilitate that thought for all users the first of which is what people who stepped lay out a win the past used to on perspective the result. Used to show the cheapest price of one but with that in that would go to get it right. We realise that. You know that makes it's so abusers but we changed the way up so quickly it basically spent treating all the options because as a user. But might they take a five or ten dollar difference in the price between. This carrier that OTA. At the Rand is important. As a might have where he points to reply all their might see that differences in terms of the product that that provider is providing. Parity between LCT's. National carrier through May want to check him. My age. That stuff so we're we're starting to serve somewhat more about information for users. You know price is obviously important. A key factor for users but their absence would we our other aspect of the use of hotels. Could be simply use. You know either suspect. That the checked baggage. So empowering you to review given all the information so that they can make the choice. I think that information is particularly relevant way so. Pricing port yes but absolutely. Up product accurately. I would think from a booking dot com perspective the there to industry models that merton model and the agency model that I think many people here know. Looking follows the agency model so as far as we're concerned pricing. Is always determined by our accommodation partners. And I think a little bit about them what. What happens in terms of that price. And how that price perceived not only by our customers but by many other strategic distribution partners that we work with. I think a very conscious decision that we made of the businesses did to again try and extend our involvement at ten point customer experience we want to ensure that a eight guest that walks through about has. I think the really incredible went when customer experience we have in house customer service we don't outsource talk we have over four and a half thousand. Customer agents around the world in fourteen. A cent of the century follow start speaking 42 languages in communicating with our guests in 42 languages although operating Mac would have our. Our business to train ensure that if you book quiver as you can have that great and would cut. Experience if something happens that. Property you need to address it can you can do so by talking to work I think that's why we're we're we're now. A position where we are trusted. Five I users find customers but also by apartments. I think partners. It's a loose term that many organisations easily in our organisation have partners. On both the supply and on the demand side so supply all of our accommodation partners. Benefit I think from that level of engagement we have with our customer service the ability twin track nominee on the phone or by email but through real time communication in the massive style. We're speaking about few moments ago. Not distribution partners whether the airlines whether it be backed whether the loyalty programs or otherwise that we make a product and service available through. These organisations know that their customers. A going to be treated. Incredibly well. By our customer service as well I think it's it's it's fun budget sure many markets. And the world. Where that's like incremental price change can make a difference. I'd like to think the benefits that we offer both to the user and parts on both sides of the spectrum. Help make it compelling case for. The price that we offer products that. We have questions like about the motivation behind best in terms of that will make you know. Eight at an extension of the sort of previous comment in that you know constantly obeyed a rocket technology it's just to see what works. That you know the Avalon echoes of specific advice as has has been tremendously successful. Best. IPad which did just order one myself through back channels forget alright. Play with because I think what we call. It's you to. The tone by you know using for the more typically use whatever time. I'm getting breast Kevin chappell would ever so it's up again but can't we will give what latest technologies. Analyst on echoes what. What falls off but. Is this cap off a likely what's going to be tool three times. So that for about but OPEC is constant innovation and looking for Decker having alternative voices avoid right now. Another little capital. And when used to have Tom on in part year right before you use your mobile maps. And you could download different voices. You have to get watching this lately talk you know all the time it's quite nice have like Ozzy Osbourne screen yet you're going into black when he should've gone right. It kind of makes a lot of came out there that systems. I think upbeat week and one of the deals on its premium yeah. No overlap of the roughly coherent. Become far will probably take more per quarter it worked so that different. Guys gonna buy coffee now no apart right Medicare. As the question two questions. About allegedly blue dot com and the hotels can this technology. Improve that so can use technology to improve the customer experience by partnering by showing with the hotel. But I think one of the one of the really interesting points that touched on this in the presentation I think as well the idea of customer reviews and and our views go to the property year in real time as well so you know fear that if customers. Making reference to cleanliness of the property. For friendliness of the staff rubble wise I think that's really very useful. And I think that's part of the I think that's one element curve. To experience with funds. I think one of the incredible things there fourteen house with its global footprint is the ability to bring customers from one part of the world. Take them and bring them to small independent boutique properties and other parts of the war. And I mentioned that we're available in 42 languages for example and I think you know an independent for boutique property Euro we have can. In Japan or. Or otherwise they're not going to be able to have that sort of marketing and region and support for customers that that we can office I think one that. Very key elements that we think about it how to help. Properties not just hotels that been these individual apartment owners or otherwise think about how to. Actually promote their property to a global audience and support at. Audience I think that's a very compelling. Opportunity. Experience for property at. A to fought for us to which broke into the market. And we have to deliver value to both sides about the market so the supply side it might retaliate as well what's the consumers and on the supply side a huge part of the value that we deliver is around eight. And enabling him to work hard to prove that business. So it everything from how. Headed ballet on items returned back the previous point though what they coverage we give them. They re terms of our international expansion or for example you can imagine. Both. The look call. But whether it gets that Europe except for certain people like from what then two are. People acute what pop pop hit your get lastly through Bradley that the suspect we know so. You each and the the week but we've got partners that enabled them what might it is this what they click through rates have backed him or against hunt for the industry benchmarks. We have a falling everywhere outperform works so happy they improve and enhance their business. And that's better queue at Eds. Right as the because Asia as the consumer side again which had a market we need to lift the bank of of those constituents. That obviously. To date is if you think we're keeping as any messaging. Technology. Innovation which can improve relationship. I buy I say this is that it will portal devoted to make awarded hotels. And I think Diana. Quite innovative text based. Customer. Placement what you're talking about you can text at whatever time right now though think they think service that started from. Improving. The service with the pattern hotels that internal innovation to help people engage real time. Guests inside. And then they're over that cut inside and with better test so. Is relevant. You can do update it which has the big gap is evident in the in the technology's coming up now which can help relationship between that to be used but its. Would that the spot that facilitate bookings a good example what that impact might make tech driven. And kept it that just of humour but also of the supply. As a top wage increases their conversion rate. And the karaoke bar. And yes over the that the technology. Have with a chisel available here sort of a takes the best example AFLAC and veracity of that there are Watson will continue to be really really more. I think we must be on. They've had with the Cuban much talk because they've brought.