Sandy DhuyvetterExecutive Producer and Host

How the Internet is How the Internet is constantly constantly morphing from a morphing from a discount inventory channel to a robust discount inventory channel to a robust Value Added ChannelValue Added Channel

and what you can do about it.and what you can do about it.

Copyright © 1998-2004 Celestialink LLC.TravelTalkRadio.com, TravelTalkNews.com, TravelTalkTV.com,

ToursTalkRadio.com, ToursTalk.com, TourTalkRadio.com

BackgroundBackgroundEvolution and the migration to the TRAVEL IndustryEvolution and the migration to the TRAVEL Industry

Pioneer: Silicon ValleyComputer Graphics1982

Registered: Travelworld.comTours.comSightseeing.comTravels.comConferences.comConventions.comVacations.comGroceries.comBoating.com . . . Over 30 prime names1994

Developed:3 of the first 5

E-commerce Web sitesin 1994-95

Speaker at Travel IndustryAssociations about Internet

Technology starting in 1994

Produced: First CVB site - Santa BarbaraFirst Motorcoach site with Tour schedulesfor 500 members of American Sightseeing Assoc.

Creativefor George Lucas1977 – 1979

Multimedia Company1986

Founded

Multimedia Company

Sold to iXL . . . went Public in 1999

Merged

With 25 engineers in San Diego in 1996 renamed the company to CommerceWAVE

BackgroundBackgroundEvolution and the migration to the TRAVEL IndustryEvolution and the migration to the TRAVEL Industry

Founded: Celestialink LLC in 1998Travel Network of News

Travel Talk Radio – Travel Talk New – Travel Talk TV

Founded: 1986

Tourism businesses are among the most service-oriented Tourism businesses are among the most service-oriented businesses in the world. Travel is among the most businesses in the world. Travel is among the most prosperous industry in the electronic marketplace.prosperous industry in the electronic marketplace.

• What are Value-added services and programs on the Internet.

• Perceived value from the business side vs the consumer idea of value. What are the value added services and programs your Customers want.

• Examples of Value-Added programs in the travel arena.

Technology advancements offer Web businesses increasing options

Global competition is at an all time high and barriers for new entrants has never been easier.

The cry of the last decade is louder than ever!Giving Customers superior value is the best way to obtain competitive advantage

We will explore

Information Technology & Tourism, vol. 5 pp. 165-174

What are Value-added services and What are Value-added services and programs on the Internet?programs on the Internet?

• Services giving access to various forms of information about the tourism products offered on a website.

• Services providing added value to the core product demanded.

• May be related to content (information and decision supportInfrastructure (access) and context (multimedia presentations).

Service AggregationService AggregationService IntegrationService Integration

Customer CommunityCustomer CommunitySearch EngineSearch EnginePersonalizationPersonalizationPricing MethodsPricing Methods

ConvenienceConvenienceControlControlTrustTrust

From the Company perspective From the Customer perspective

Service AggregationService Aggregation• Provides customers visiting a Web site access to information and services not

directly related to the core product of the Web site. Service aggregation also allows the Web site the ability to create additional revenues.

• Google Adsense. Amazon, Yahoo, XML – RSS feeds are examples of this kind of service.

• Customers perception is: Convenience – reducing search costs.

Service IntegrationService Integration(Bundling)(Bundling)

• Provides access to a bundle of information and services that are complementary to the core product.

• Packaged Tours, bundling of transportation services with hotel lodging, a full-service travel age cy and concierge services for adventure travelers.

• Customers perception is: Convenience – Control. Same as Service Aggregation however more industry specific.

Customer CommunityCustomer Community• Bulletin Boards allowing travelers to exchange experiences, third-

party neutral information. • Customers perception is: Reduced risk associated with purchase –

giving the customer more control

Search EngineSearch Engine• Seems obvious in 2004, however it is the number one expectation of

customers. • Customers perception is: Better basis for their purchase decisions

adding convenience and control.

PersonalizationPersonalization• Gives customers preferences according to stored personal

information.• Customers perception is: Adds convenience and control to the

buying process and trust that the product is in accordance with their preferences.

Pricing MethodsPricing Methods• Often the most important determinant of consumer shopping

decisions. New methods of pricing include Auctions, Collective Volume Discounts, Reversed Pricing (i.e. priceline.com).

• Customers perception is: Increase control of the customer’s reservation price. (the max a customer is willing to pay).

TrustTrustThere exists a fundamental lack of trust between consumers and businesses on

the Web. It is associated with misuse of data, reliable product information and secure

payments. • Transaction security, personal recommendations, co-branding with a reliable alliance, personal service, someone on the phone to support the customer.

• Customers perception is: Makes customers feel they are more in control and more relaxed and less afraid thus increasing customer convenienceExamples of evolution of distressed

travel products on the Web.

• To be successful selling distressed travel products, customer service and manual management are key.

11thHourVacations.com started selling distressed travel inventory since 1996 – Unsuccessful until they added a robust search and reservation process.

• Fly and Stay built in 2001 by Scandanavia Airlines to package distressed inventory– Includes value added services along with distressed inventory.

• Airline Ticket Consolidators are probably the last to offer value added programs to their Web sites.

Examples how value some of the top Travel Sites are offering Value Added Services

Expedia

Packages

Travel Alerts

Flight Status

Driving Directions

Currency Converter

Airport information

Get deals via email

Passport information

Agents on call 24 hours

Travelocity

My Trips

Dream Maps

Travel Tools

Online Check-In

Destination Guides

Frommer’s Guides

Local Events

Passports & Visas

Airport Codes

Fare Listings

Time Tables

Traveler Reviews

Disney Travel GuidesFlightsHotelsCarsVacation Packages,SearchWrite a reviewPersonalDealsAlert Systems for customersLast Minute Deals

YAHOOTravel Guides

Flights

Hotels

Cars

Vacation Packages,

Search

Write a review

Personal

Deals

Alert Systems for customers

Last Minute Deals

Thank you!

Sandy Dhuyvetter760 753 1114

sandy@traveltalkradio.com