Topics>>The New Distribution Landscape for Tours and Activities

The New Distribution Landscape for Tours and Activities

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  1. Bob Graham0:45
  2. Bora Bora1:39, 7:44
  3. Hong Kong13:19
  4. Intel3:19
  5. market place3:23, 8:21
  6. tourist traps11:36
  7. search engine8:26
  8. travel ban16:27
  9. increased revenue18:43
Fri, 19 May 2017|

Hjalti Baldursson, CEO, Bokun | Martin Jones, SVP Global Sourcing and Commercial Management, GTA

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Automatically Generated Transcript (may not be 100% accurate)

I love their target car. Half are tourism activities and distribution and one of the reasons is that. It's involving an. And next dream speed and its. It's also all the coming age deciding factor in where people want to travel. Sell. This this presentation is delivered above that mark delivered by myself I compromised and the only face America where parents are crawling out tool men their children suspect. But icelanders also hold a half hour for a two rosneft really said demand and one of the fastest growing Taurus and market in the world. My company Bob Graham is the is it distribution platform. Reliable global company bad that we have that quite peculiar to persist immunise them because brutally. On the bookings in tourism activities. Got to a system doesn't matter if it that if it's our supply Sally a supplier of its firewire better selling as a fire portal selling as pirate. On I'm God's rule through Balkan which gives us. Quite interesting. Interesting. They doubt on distribution and our wanted to God's will that shortly we feel. In applied type of where. A few years back we a few years back almost on the putting its. Used to be direct staff whine and wait until Bacharach our plan is likely to re emails phone calls Bora Bora Bora destroying our. Now it's down to 17%. And streaking quite fast. Power and also our furious back follow their suppliers didn't have foreign and other suppliers had. Add web sites where there where are selling very that there are prisoner Phillips now it's 31% of total sales. Your TA's like mad or get a guide newsman with the gold price broke Eddin fifth you know then and x'.s a few years back as well now they have Sampras and after total bookings which is alot. Is probably less then men here many many would think and then I think in the US it's around 4%. Power but the eyes and marketers there's a little bit ahead of the curve because everybody has is online ad market. Now the biggest distribution China. This abuse implied here far a is what we cod aboard marketplace it's our third off of the bookings. And the Balkan market players is basically. The cross selling platform where anything we buy rating cross sell one another. Imus a field just to demonstrate our what does that. No the book marketplace. Imagine a newly words don't avoid your bookings were coming through Christ silver into local partners. That's exactly the situation we Balkans customers using the EP marketplace. In the traditional marketplace model you were either supply or sell you have to pick a site. In the global marketplace you can be forced down means suppliers can cry sell oil the supply as a green new finishing Intel. What we give you assuring Seattle the customer using the Balkan market place. Do you still provider after weeks dozens of fantastic Taurus is likely also silt it was a Douglas. Let's click horse riding tourists on the website and at the activity yes what the stores to reducing their resolved lava into. It's in green tea are reading playing different company. Would put their tour. Ian look at the time to get. All information in content including the pictures and videos can be retrieved from the other suppliers either medical into Volcker. When a customer books the tour a on this web site the availability check is done in real time as if the team has been done directly with the other supplier. In the bulletin in invoices bills instantly into the networking speeds here and accounting systems of his company that. It's a win win situation. Everybody deems more business. In January doubt who holes to Y percent falcon keeps track of all accounts receivables and payable to a year. Am sorry that's under the bid sales in bad for supposed to be advocating. So there. A lot of the story here is cross selling is becoming the largest sales channel is very fragmented but it's a larger sales. And new reality of distribution is that 65% of the suppliers and just define suppliers resellers suppliers for example AAR. Somebody was operating at work like got a background for abiding company a borrow Atlanta company a reseller of somebody was re selling them. Top 65% of the suppliers have active cross selling contract with other suppliers. An Arab reselling father of some buyers product in creating combo products. Another interesting thing has banner out of their connectivity of every fight and this is that. Cobbled products. Tell. It's basically to all product bundled into one part families can be from two different suppliers. Marie is easy to manage says their availability is Japan bank. Find their stamp on our availability of the tool. Tool to expand on ballots. Here's ex apple diseases outweigh watching company and I found. And they have you know there have battled their way watching twirl with. Horseback riding rap being eighty views and find the other 28 other. Chorus of their colleagues. And the reason for this is that it sells better themselves to a different identities. And that indeed because of different pricing Mara a Teresa of the toward a relative in just more appealing that that will comprise together. But more importantly whether this is drawing as. It's creating new revenue stream for their fingers tears away waiting company so they get whenever they sell hot bed rental day down 20% commission. Or something like that. Now and 15% off of the price parable for our system power combo products and ideas didn't used to be and heads brawling actually. Quite fast. But narrowly are. Suppliers are taking a bad it's up come activity over but also resellers. Why do have real time availability. And do directly with with as a bias as a dad is next apple but of an airline called worried. Were dated December Webb said Monday may contract for system with although some buyers. And started talent in the beginning when they did wise they simply stand up emails to a lot of their fight as injurious. Now and they incorporated was maturities into Europe Arab. And than they're now verify their selling to a activities. Two verified by forking out for one avram find the London. Al diarra in hard pressed for some test and some whose mysterious and dissolve. Powered by open and this is only possible when Europe can enacting a replay. Now we have our. Everybody is getting and what that is not airlines while others are starting themselves to was my feeling is. You an online newspapers and of course what else. Reseller areas are joining the battle every. And we have read every month as well their backers with the resellers if you take a TS suggests that if buys are as fewer flights verify a Bora Bora others. 85% of their bookings are made. 48 hours prior to the departure of the talk so if they have a booking kind of fan. There nap on Salant. Top then they have to sell through self. Power and let's night you know I feel so there have to have real time availability so. We're getting an a lot of resellers as well. And now sometimes get their question is it really is simple and I have. I'm very Siberia to adjust to explain to how you make a contract for their staff bookmark but. Let me show you how easy it is to Houston Balkan market place. Whether your supplier or sell a borrowed how awful search engine helps you find the exact private or foreigners you were looking for. What is downloaded simply click to propose a contract. Next into all the contract details commission chance cancellation policies etc. PM you can negotiate every foreign of the contract. And remember fulcrum will see a small chance commissions cancellation policies exert a once you've reached an agreement if you aren't really just a sell an online. Sorry Dan for alternative is that. Let's look at Jan Olympic dad their distribution by tell. When we now know are bad you know one relating add this because I would is that. The cross selling off local partners regardless of virus are crossing in one another creating Kabul prior to one another local resellers or reselling them. Or will we back into the palm numbers were quite well crunching the numbers something interesting came up. Inside that poll tells. A calf or 9% of total bookings of two reflected its. Which has Allah it's way more than yield here so selling factor if about a don't worry that they didn't used to see selling tourism activities as. Providing a service suggest it was a way to pay their consumer to salary yen. They didn't pay a lot of attention to a a couple of years ago now that is changing. Bearing Berry fats and we have seen dad actually in a few sessions here today. Our dad hold house are putting a lot of focus on fund selling was negative is and there are reasons for that. How we went into run. We tried to make some fears that is and try to understand. Why does dad poor telstar. Are increasing as a distribution channel are our content that in a bid but first fell from Syria how their various Sallie that was later this. First floor drawing head to a web saved we have actually apart from this probable and storefronts. That's basically just a website selling perspective it's sell their hotels would. How this as the Wi fi landing page. As a terrorist of the gas. And we see dad they are there turnover of four whose website fares. Is 10800. A month now all up. When you add to more of the hole tells it comes up as a as a quite a bit bigger mark. And than before as they do would from the back and they are they are now. Selling tourism activities at the far best for the consulate. And here these numbers are a far bigger and we have seen dad. They range from 30% 2000 yields amount related facilities. Now. When we're making the case studies we are heard from the hospital managers bad. It was a very important. For a award tells the offering prior arts which were aligned to their brands. And thank god before we just cannot allow ourselves to a simply selfless perhaps. So roll you know tourist traps may sell the most. We will maverick create some customer loyalties or that we will maverick here about two. Get our customers through into. Speaking to a web sad if we're not only are offering. The same as everybody else has taken dad everybody out so we have to offer something. Another thing that we've heard is dad. We do we night as the Alltel want to communicate. With the suppliers we do not want to. Carl lamm we don't want to email than we have one everyone could cancel aborting or add to wait we've not want to title as the virus. And that is very important because it's time consuming and is down to the suppliers want to type firms well out of wanted of the footprints. You can tell this to sum up what is happening now. And it's enforcement period is how do you that actually happening in other sectors as well is attack knowledge is can acting fabric. Sell in a few years' time any bank. Ramped role will be able to resell and so if you have some connection with the Tories. Even as Europe just a wap are or even if you're a customer of Babar. Half a company you could start to sell sell the products. Number two white when we see from the suppliers is that therefore does is arm cross selling. To differentiate their product offering. And this has become the largest. Sales channel in our markets. And the role sole goal to be are focusing on Hong Kong bottles because that helps them to differentiate from one another. We have I think that hoard towels are common to be a leading you know if you if you combine them together I think that they will be. Four of the leading reseller arm. Mooring borrowed too far off tourism activities and they're waking up now. And they are taking there's more seriously enough just thinking OK let's have that franciose handle this. And my final slide period dad you know we have Balkan garenne into. Become their largest oil pulled into the market basin and just do some platform for a for to a mysterious and power working with TJ to make that happen. And we have kind of who prior asylum that we are our friends were worried customers now I'd like to introduce. Michael Johnson. The bottom. When is Martin is now do so far less exotic then then the mania. I worked for four GTA I run the global sourcing and commercial management function which. Includes. The supply of all our hotel products. And all our destination services we called restoration services but essentially. Tools and activities globally. So as if you few data points there on the slide almost 60000 hotels. I'm just under 17000. Sports and activities. That we supply. We make around about 25000. Such now around 27000. Bookings per day and we sell to. Just over 50000. Different travel. Industry clients. Globally around the world out. To ask a question you know wide. Wise Tuesday up here we're with Fokker and very very different companies are very very different spaces. You've heard from the LT about the fragmentation in the destination services landscape. And that's probably not news to anybody is going through. Very very fast revolution. I'm. We use here we have a very very well established. Tools and activities business is established over very many years. And we were looking for pay. Technology partner to work with. Two hosts. That part of our business moving forward. An on mission and our company mission in this people advised bottle and activities business is making distribution Easley. For fraph partners. So are initial. A company that could allow us to service our existing business our existing business is. Selling to. Travel related companies. Destination service products. And hotels. But all about transaction takes place through deviate a through. Through our systems both from retail platforms branded travel ban on travel Q. And also for wholesale platforms. So that was our initial objective as we went through the process. Really began to understand the began to look for. Other opportunities. Of the changing industry landscape. May present and still what business differently. Existing business has been built up over many years as a said it's very very successful unless something that we want to protect. But equally we were looking for new opportunities to. Firstly for a business but also add value to. Our supplier value proposition for the top client value proposition. And that's where. We identified the opportunity for the Boston affiliate program hotel for the problem. What if Philip program essentially darkness. Is connect. The force activities provide our. With the hotel supplier direct. To say indeed the M the screens reality show there but available for a hotel. Disney between white label them very many different weights. To provide a destination service products to secondly take out of the equation. And it's connecting the server supplied directly without us you may well last well. Why would we do that occurs essentially that's our bread and butter that's a business today what's in France. I think firstly I would say what what's in it for the supplier what's really important for the supply we know from. Our thoughts and activities suppliers today. The we have established relationships with that they are. Very very hungry. For. New distribution channels. New opportunities to grow their business. We know from our hotel suppliers there's almost 60000 hotels globally. We know that they are increasingly. Looking for opportunities to increase that ancillary revenue. So then non core hotel room hotel room revenue is C positive and hotel chains around the world going in this correction. Marietta as a good example apple corps was another good example looking for ways to extend the customer life cycle. And obviously increased revenue. What's gonna fiduciary. Essentially what it allows us to do. Use. Firstly increase our stickiness to our suppliers. We foresee. Certainly for the foreseeable future. How hard core business remaining. The transactions. Through our own platforms on our retail brands are whole self Ryan's. Force important crisis that we're going sticky spot customers we get and his top suppliers. So we get the availability for talks and activities. We get the best commercial conditions and this is one way that we adds to our. To our value proposition. Similarly from hotels. Where established relationships with. With those 60000 hotels globally. They are pretty much move based on a revenue. 98% post from a revenue. This allows us to talk about something different also and again increasing our value propositions were. Hotel suppliers. Increasing the stickiness we know that the particular hotel supplier environment is becoming increasingly consolidated very very important to our us. To insure that we remain relevant. To hotels supplies globally. Over the coming years. Ambition. Is really as a service to make. Distribution easy for our fri trouble partners and those trouble partners could be hotels. The could be taught and activities suppliers and the for most of our clients and we believe that our partnership with vodka in the Mitt and the affiliate program is really. Helping us achieve that goal.