Sebastien Fallert, Managing Director UK, Secret Escapes | Zdenek Komenda, Chief Business Development Officer, Kiwi.com | Matthew Shutt, Director of Global Accounts, The Expedia Group
Automatically Generated Transcript (may not be 100% accurate)
Man who's going higher present company called curious com. As a global tier. Based in Czech Republic. So we are really European base so we have 1000 people now days. We stand the fact is law and enrolling by June guys. So theme agora show and dream and damn the bar selling tickets. And today will resell more than a minute when they thousand seats everyday. How indirect redo things gone for two different player that's why I think I'm on the panel because again of the struck. The airline distribution and then. The traditional old Q awards from the oil prospector again. Henry combine key areas of Don cooperate with each other so on one itinerary you can buy. Fly to rid around the area combine with easy job combine really build back combine ripped off blessed for example. Up till then different carriers air forum these combinations Rio bakery that can guarantee that this I get insurance that we. Coverage or any disruption. On the juror names along on the agenda but also before the before the departure save their lives and near lake. Horrendous slide in this mess due to delay the brewers away recover at a final. New picket sort of finalist emission re Warsaw well bright holds oil and meal vouchers. Where does this occur if it's so we signed a few years ago. Current clear there's down a lot of companies that try to replicate the model finalists will be finally got some competition. Buyers QEC. Randa wants to be combine we're polling was for example in Dublin poorer. Our opus Jerry's in Europe that want to bring choice into aligned themselves with either Kerrey's all around. So issue that the earth though the industry is more than for an. Also the admiralty case and we poorer by copying the model let me start with. And that's why I'm here and that's pretty interesting and the. Here soon I have latter question to be a negative effect debt. Hi I'm so that's gonna run their UK business for a particular period UK MD you just heard I guess my boss and the crews are. Delineate going to be really get. Should it have a am so what we do is we offer customers what else and holidays cheaper anywhere else. We're gonna flesh sales model which means what else come on the side while. 5610 days and the biggest price of the anywhere else upper 70% off. And why we different industry up. We are actually very different from typically not hear it's like Expedia and booking dot com where you call when you have a very clear ideal we want to roar when you want to travel. And we believe that's the best way to book a time. C because cases here and that's actually our vision and mission to inspire the world this game we're trying to fill this gap. Between the very very targeted search. And what what used to happen indeed sort of Ford scored high street travel agent where the customised. Itinerary people tops Q4 there's four people who want to be inspired. Where do not. So that's where we operate push model which Jennifer Coolidge who we pick amazing deals and we've put into everyday. In Queens bay interval places where otherwise we wouldn't have gotten. And that's why nine out of ten people. Who travel with us is actually incremental information for trade because they would have development. McCain. And disrupting. An expedient at. They'd. Analyst who knew they have set out herein might affect future and I working speedy group based in London. And I'm responsible for some of the relationships of our world's leading. Hotel chains. And so looking up the relationship that the data David with the hotel chains. It's super exciting into to be here to you know that. Talk with people were in the pace of change in the impact on technology I industry it's been really exciting to. To talk about to see. From our perspective. Peg you know I think there's been a paradigm shift in the industry over the last eighteen months or so. And it is. Where we are now looking. As expedient to to leverage our to evolve our business model and to. Capitalise and leverage our technology assets. In conjunction with our hotel partners so we talk about. Destructive what changing evolving business models with Expedia are evolving our biz business model and transforming our relationships and partnerships. Partnerships with the hotel chains that. Some which I'm responsible for. Sure we'll have time to talk about laser billing example might be they occasions by merit dot com where it's day. Package white label product powered by Expedia. That combines. You know Marius website branding for their hotels with half right booking engine. So super exciting and many other products like that I'm sure we'll talk about yeah you know bringing a new level of partnership and innovation together with hotel partners around the world. Yeah OK. Well an analyst over the difficult question and no investor bottoming out now rated flaking no W. So here they share an I always breeds. Competition and particularly capitation is sometimes by tomorrow at and T is that seem to have element pools of money. And dad and engineers and developers that here. We've seen out with some the style absent some of the aisle disrupt errors before it even though larger ones. Great concern Deborah kiwi whether area you might even mentioned that you're getting some happy kept anyway. There who remark only it as a disruptive may in fact be be taken over or used to buy books with deeper pockets. Not really had a moment as slain during the Hollister of the company Rivera. That. Everybody wanted to do get smoother and better career Expedia with Priceline with. Put in jail for example. And everybody was interested in knowing what is the model above what our earnings on their. Buyer to I think everybody cannot stop the allotment and the talks when they realise how. Big obstacles are to enter of this virtual into line market. Sold these forever management LPA issue under the biggest one has excess. Buyer that would receive now believes that rev a smaller role here is a local news. Get under the tab combine. Branagh is Jeff really curious and offering at Wyeth tamper with the search yes. And usually then and they really Don offering burger around to that we have stories of current saw and something would happen dinner for the passenger on the way. Q would have been they continue because of the final destination on her on his song so wouldn't be covered by the OTA. Sure we are not through constant and Norman by Rio of course keep an eye on everybody wants to bet on the market and in try to try to just look for a day and be more in oil if and pastoral and endless queue the business that we've been going. There. Our Sebastian. You chat about the flash cellmark line discovering. Certainly play Asian and discovering new new in new grounds so perhaps consumers would have known before Eric. And packaging it with great content. S secret escapes jazz. We've seen west L. Companies many many many of them summer down. I am I still in operation summer Dem continue to do well and and and many however have in that disappeared in consultative. Which are meant disrupting is this disruptive in 37 readjust or better mousetrap you doing better than others. So get your city rate rate we've seen lots of models failed. Especially. Outside trouble for the when you look at the broad market for flat sales thinking of coupon living sought from them. I think it worse not better travel. And I believe it is sustainable in particular in Asia for fell. That's where we focus on the luxury end of the market and that's where the model actually works really really well I mean you have the marketplace. So unique fantastic supply. And you need a great engaged user base when you look at the large companies that were there before local fund. The actually happen and have trouble on fourth ends of the spectrum. So given that their brand is somewhat tarnished. They have trouble attracting red supply. So lots if you will have been members of the menace at some point finish just like they've most of which you get is reaching inherit a on the user side those have sort of downward spiral. Duncan greater supply. You don't give greater engagement which in turn means you can't really drive of the volume for your suppliers. And done and done golf. Why have for us in the sustainable me schaffler sales in luxury travel. Third of the supplier so really do not so the actually who like other flat sales product. It's one part of our revenue management strategy. They come back quarter after quarter. The clan hall of years of marketing with. And that's why our user base unlike a lot of other companies remains very engaged. Fixed depression really inspirational content which people just enjoy reading open of Utah element customer interviews this will happen but yet but fell nearly game. And I take him into where we're benefits agreement. And that's that's where one. And but you mentioned this adjustment carry on with this could put this question because you mentioned. It's one horror of their distribution strategy it's one plight of the revenue management. I the other concern with the arm of to a low prices that your offering your customer base. Up. Of brand erosion of having an issue aura. We're now they've been out of west L they know that there is nothing on mark rice it's not something they're worried about a particularly with luxury brands I would think that they would be a sensitivity. I think. That's where flat sales were particularly well because they're very contained in time. We ran a promotion with particular skater takes it by ten days and it might drive hundreds of thousands of online. So it's really need to to be a part of your revenue Spanish killing you should never be on fitness coach all the time. On top of that we are a clause user called top people to sign up for the web site. Ensor at least in perception yeah it's not really aren't here at. Because not validly apparently saw knowing information your bank effective teaming up with a beautiful fat and etc. one of the big things that we've. Manager with the year is establishing a brand the queen Mary's luxury and value. Which isn't easy to do but somehow we've pulled up. OK so Oliver grandson the I have to leader seconds to enter in order for you to. Defaulted absolutely sold we have if we have a merchandising team don't talk for picking. And we don't actually work with every hotel where looks of hotels that come plane bound requests and they would love to be on speaker gave. But we don't want them we just under particular trip advisor rating of particular style of a car. It's very. So the reason I smiled when I introduced you when you introduce yourself that Expedia is because usually well we think a distraction usually we think of innovation in changing things around. Teaching and smart scrappy style that 2000 died and up weight the description of Expedia. But you wiring voted out of this panel on your IQ did happen that destruction. Possibly other massive scale sell Wahl waiting with baited breath in this round because how speedier moves down move the industry. Well wet summer rise in white is the next disruption that you're looking out is it AI is it other planets that you're going. But what's the thing that we are happy now about an Eva budget for a work fee era. I think I think you know on their way onto side of the consumer side of course. And and this sort of hotel supply side on the consumer side. You know in general in 36. I think we invested one point. Two billion dollars at in technology alone so we're looking at artificial intelligence and and virtual reality augmented reality and working out where that. Places in the you know him in the traveler's journey. We not see Expedia skill for Alexa. And are faced a message of bonds and so on and so forth so we're constantly evolving and innovating in that C. You know trying not predict the future. You know our main focus is to build Agile platforms that can react quickly to the future rather trying to work out what future's going to be ten years. On the supply side is so much innovation as well which is really exciting so summer's upper I spoke about. Earlier where we are Expedia we are evolving our. Business model which sounds transforming our value proposition to hotel. Chains and independent hotels. And you know giving them access to our technology investment and I just spoke about so. My best of the package white label product with locations by Mariette another example might be what we're doing with the red lion hotel chain in US. And what we're doing there is there giving us access to their helo awards loyalty. Rates for our Expedia customers. And we're signing up on Expedia. Hello rewards loyalty members for the red lion hotel change. Do you really excited actually. Their CMOs said in the first two weeks of launching the lord to sign up you can sign up on Expedia fellow awards. On Expedia. In the first two weeks they had more silence in the first six months of the year. So it's it's you know copper in the technology aligning. Even great men even greater weight the value proposition. We've we're launching we lodge meeting market in 35. Which is on might product in Germany. I'm marketplace and also white label product. And best western in Germany with 200 hotels are gonna go live soon. Where you can book seamlessly. Your meeting Rohm and your you know removed sustained and UF OMB and everything you need because it you know that's simply came out of and Expedia employees trying to. Try to block and is actually very laborious and not very automated process. Falling aligning these. You know is is taking us into even deeper relationships with our hotel chain partners an independent. Hotels are. Yup and three requesting funds rebate yes. Phil Purcell. Mark of new products coming out latter clearly a lot of investments. As the folks who were in this through were looking for their own investments. IN and we're of the destructive marketplaces should be. Where would you say even this year some. Some are indeed my kids should go in terms of disruption in terms of their own companies from each of your experiences. Meaning should they be plane with artificial intelligence should be. Experimenting. With a key item partnering with companies that just Q we or other ones where we should those investment dollars go. You know with a with a crystal ball forward looking toward which just raptors are going to be meaningful. And I think you can every year. Shot up I think. You know there's no one right answer for one hotel chain depending on the profile of the customer you're looking for I think first and foremost. Obviously technology for us as a focus I think. Making the customer journey simpler pictured the before you know fell for upfront you know fall front your mind. And you know we do thousands of AB test every year we have a real test and learn cops in my advice where that's an independent hotelier work. A change would be to test and learn and see what works you know we've we fail a lot. Most worrying contests of course fail but. If you have a winner. You know you its rate you continuously constantly evolving process and for me. I would say is not right answer depends on the you know that the hotelier and then that supplier base they're looking for. But keep testing keep learning and innovative making sure testing things. And that will I think that will drive success in the longer term. Interesting then everyone else you kind of the same question but with a little worse. Sell. You have back destructed the way things have Kearney brown ran. We believe that 2008 diet up to you have a thousand people now know 1200. We. When that's into any agreement on because though they are now winning I packet tonight basically OK so in just a couple of years. So just do does Q we have the same culture Europe tester Marilyn feline line is this something has to disrupt area there. People should we should embrace. Optional let. We also play with David best slate everybody else though we around. Around one and a as a late 1000 label king Tom for example I really only around around 100 every test for. The columns for the forums for the year if the iPhone there was there's more importantly the most important aspect of the situation. We're going to display Edna the strictures placed thanks a ten month bill. And offers re they would receive if something doesn't work we just change it then try to figure out what it what would you were what we're bringing. Our right. By it's been. I would say way. Lake when I look back actually when we were much smaller so last year when their when we had made 100 Dow 100 I think global risk. Everything was blamed much smoother and faster and you into possible like introduce new features and new Bratz much. In the quicker way. Then now so I know I'm not going to complain that we have now 250. Active live opera so that everything would be useful. By the S from the year introduce and launched. Project management and B and the teams are mention being there and everything we thinks that the longer this this and much more in stake. Of course the than for a new Perot releases and slow down which came on personal language you alive much faster and now we were working late when if a seven day. Region have ma social Imus in the real lost Google friends and staff so there was deserve. A startup environment for inmates in the UBM nature. None of these street cannot get more or poorer and more. Played a major. Turn swelled to a graph forget. OK I want baby's picture now as we go at me get older funds. OK there's a. Gonna be a whole different minor chart Sunday OPEC. So armed. In cancer. You retire at the speed of disruption and there certainly bear. Can anybody other how TARP about. Speed and the whole idea. Are disruption as getting to market. Are and how quickly you need to do dad and and what keeps you awake at night. I mean as disrupt euros as theirs right each of you in your own ecosystem of the company gets destructive one way or the other whether its luxury. Airline would be the basically just disrupt everything whenever they can but the good of the salt. I'm what it till late at night is it the speed of disruption isn't keeping up with it someone who can come up with a faster cheaper better. What is that there has disrupted. You need to worry about I think about. So for us what keeps me awake at night it's probably need two things. And one sort of near term and everyone has long. Been near term miners. With companies that disrupted if people really quickly so we've just gone through the 500 employed by and just three years along with more like hundreds. So at some point out you poured through this we have cycle of just getting people through the door like praising. And then what you mentioned up as the properties come up thank you try to. To work it sort of corporate size but with start up mentality and in crosses as just doesn't it doesn't really work. And every company goes through we have cultural breakdown were unhappy ensor we're still not out of that yet so I need. Pick one of the things that I've really worry but sometimes sort of Ken can we find the Prosser seize the leadership structure. The team that's gonna allow us to keeps giving the company. B. And in the other one is very long fell one witches. Sickest kids using email marketing company and or email us gonna galway of the push channel one. So already in are Asian markets so we're obviously feeling that instant messaging and honest as much more popular English just not affect. Toy wonder what will C just its modern look like in tenuous time. And that's why it's sort of well when apple when it initially. I said we've really want to live in that space in between the Expedia as we bought when you ignored want to look for. And on the other extreme of the curator experience in this inspiration not. Specs but we point haven't found the product yet that's gonna be alive and kicking things. Interesting. Yet end justify our plan now. We have a while the discussion oil demand dining with Glenn Bo got iron artificial intelligence seems to be the darling of every cup ends. Sort of like noble words five years ago. With the advent. A guy is a technology as something bad is. A voice based in more intuitive in loading machine it's Eric Serra. Could bet this place as something like a synchronous data anybody who's providing higher turn to M happening. People search for worry even aspire. Well whether they wide eyes to something that comes up in your discussions or now likely we'll be able to leverage their. So the answer is possibly. And could impede. An amazing I company that just. Talking comes from the right and and and cracks the whole problem much better than we do possibly but we have toyed with. Machine learning quite a fair bit. To the extent that. I think with a lot of the stuff that's out there right now the people point artificial intelligence. Which is thirty year old Stafford remember from uni and a bunch of new staff in the area of deepening and warrants. Icky doesn't really work for us because we work for travel sold. Will be funded checked again by the third 2000 hick haven't really meant to travel executive Paul's. Forty shift we built this nice system and its assault on our problems in terms of recommendations sent. Telling people where to call because we employ people for that anything beyond our algorithms consequently. Even though we actually employ. Indeed fair bit of sort of PI solutions to expect coming out. Interesting. Am happy well well how simply keeps Expedia but over several Priceline. I think model in the not what keeps me up at night. Is probably jet lag but outside of that I would say. On the consumer side I think we're we're at a point in the industry where there is you know if you travel fewer consumer their is unprecedented. Choice. There are apps and you hit with publicity and marketing and web sites and so on and you know our job is to make sure that we are innovating as I've said in. Making the customer journey simple as possible you know people looking up their mobile having for the coming out and then let you know getting to work and looking on the desktop. Four you know during the lunch break and then heading home they're looking on the iPad on the so for at night and and while shopping for travel. Re you really important for us that Expedia to make sure we're providing consistent journey but throughout all those different devices so. Thank you want eight. A similar look and feel that the customer connect with. But you know in the evening on the iPad is more about dreaming visiting as a high resolution photos or less of the staff. On the on you know on the mobile in the morning it's going to be quick and easy to use the desktop to different experience altogether so. You know that's why -- have scratch pad which is if you're long position following a certain tracked down a different devices. That's where the idea came problem. But it is trying to keep their consistency whilst optimising different screen sizes and devices for me. That's really important because otherwise happens is gently you end up pushing the cuff throw away because years. OK so much choice. Out there here and you know as it becomes if you've always using gauge the crisis. So I think that's something you have to focus on from a you know consumer pointed it. But as a hard for a company this size in the power in M influence decides. Of Expedia. To really focus on disruption at this point in the if you just after Michael el bared your shareholders in going to be really really happy. So what's the balance between acne mention new due to tens of thousands of baby testing no doubt I'm sure a daily basis. So what's the balance between companies such as eurozone and Priceline and some of the up Eric Maja Ottawa even hotel companies. Investing PM and providing to. The folks in this room. Incremental. Improvements which certainly improve about online to a full. One disruption which is steering risky and if I was a shareholder of maybe that's a match. Yeah I think and I think it's probably a good question Farsi you know that the whole culture for a heart throughout our company is. You know making small steps having actually filling up my. Mark may even give a fresh my wife wept on the tech side with the developers and expedient but. You know it's all about making small gains and if we're doing that constantly. Yeah this evolves into. You know testing and learning and you know marketing customers in in different buckets and so on seeing seeing what the outcome is you know millions of I think we have 600 million. Monthly site visits that's a lot of data. You know he tells a story if if the czar Barry armour saying earlier on and if we update delayed and we've focused on. On what the numbers are saying what the data saying we can make those strategic bets and that's why you know investment into Expedia partner central we spoke about earlier so. And and the you know evolving our value proposition. Am with some the other white middle products mentioned I think that's where it comes from comes from. Small steps being followed led by the data that which point level to make strategic bets. Very and impassively acquisition. Lets wait a good way to get there tip. Still ongoing and that's because abbey where between you and happy brakes I needed help you guys in my banner and in still had great content in discussion. With a question from my best friend nonetheless. I'm over who's asking. When I asked in the beginning with this throughout our how many were then jurors are largely hands went up so one as the sun behalf of those dangers in the round. And solution providers. Particularly for a ban has Denny Chin and Sebastian. Well would be your advice for this Marla services providers. Are so star doubts among you and hero. Should disruption in fact be undercut the street think attitude strategic alliance is busily appears tech budgets. Or something else some are their way to provide a solution or you come into the market place. Possibly the way kiwi has quite frankly in very. Which landed upside down will we notice that need to be. And why type of budget and I would also argue culture. Does there need to be forward those dangerous and for those solution providers to a Europe. Europe we're really taking a look at position. Relatively easy questions. Yes there is a Meir an analyst guy alone. I would suggest that the industry standard as a nation late find their only realise in the when I was combining the Airways of the clinical really really Chela. So I think late filing in regional basis is even more difficult than initially be by way to try to provide a big names and the with big companies. They would reflect that offer. And just came to the mass and now. What their people would be much more much more difficult and expensive. Saul Meyer writes who would be just tracking B. Within one thing try to find a way some rural fire or so companies that. Would make it bigger and faster and then try to again must unearned and try to deflect. Spread and Maura Maurer. More aspects of the old business. So for the B two C facing companies a startup so I do all the bidders changed investing in especially in the travel space. What I always say is. You need a differentiated product from the consumer side soul like travel as a very very tough industry make because you have is extremely consolidated. Professional and power for. Step in the middle of the value chain that's better part of value because of fire between two very fragmented. Sort of other end. Ensor and much of the questions should be disrupting. But thank you have to be. Give it to be differentiated. You know being you know small change and playing the long tail because ultimately you traffickers the company somewhere. We're doing something that is sold differentiated big you can scale pastor booking on Expedia. But. It's tough. OK so what I'm hearing is either bypass their support by prior that. Something bad that's Lee is an improvement about their nut necessarily disruptive. But something that just improve things where many bear would OK. In some ways you can either be a previously correct. OK so gentlemen the last bastion that we are part of the coffee break. For everyone this real what's the one thing that they should know in the travel space lately I think gold out of Iraq there's. What's the earthquake that will harm a marked one of the things that they need to know just in general mark Rowan Cos. and in general that you're seeing. In the travel industry there. Higher through that things that kept you up at night the I'm asking about the being fearful that we this madness and let everybody should. Perhaps commit some budget to where to taking a look at. For meat well I assume like again when flight around that somebody to do anything we're hopeful soren here. The travel in journal about again late cover mentioned retreat into winding a self promote. S now base as I said late. August Kerrey's way to feed along hot little service areas so we will see much more often than you wouldn't buy on their Flybe. The cons as a front funds upper legs when you'll see around their removed funds I horror Caroline was ripped away with grandparents once on. You also see some new products from their warrants or in case you would buy in this camp combination. You get to the air for a something like. Ya on get with Comex for example. So get their freeway five free security. Fire security threat. In the free alarmed shown they would have they care of their profit off a chain banks. And you this year gold saw labour member searches would suffer for this so you'll see promotions on taxpayers from one law. And this labour market richest like now being seen as a small would have rolled right significantly in the future with all the chain banned from often there to interesting future for the yeah. Last outlined. Certainly if it matters because it's like this on the question it's more along the lines of but what should positive peak period for it because I frankly don't know what's coming down the pike. So it's strictly this area off a morning Euro data and investing into data infrastructure. Because enter into India so we know right so this Hawley iced up. Given the woods will hike right now pick the jury is kind of iconic figure do we know whether Alexa as we view the next big thing for a yes iPod not. But what I do not its peers can be caused the coming down the line in he would need to have forgotten floor with regards to data quality data structure. So that you can just plug into these things because I think then because they're gonna quad postal fast. So I think might find its. Although it did do its bit advertisement Matthew around us up. I think I agree with what's best is just said as I said earlier it's not you know trust not necessary about. Predicting exactly what the future's going to be having technology platform that is Agile enough to adapt. I think it's less about is the is a industry gonna grow about what the impact of technologies going to be so we don't know whether it's going to be. Artificial intelligence virtual reality in how called the idea of hotels there enough experiences giving you you know local guided walking towards work wherever you're travelling to all. You know walk through of the hotel army has so much potential it's super super exciting. Place to be. But watch this space I'd say.