travelocity (sabre): canada market acquisition strategy

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Was interviewed by Travelocity (Sabre). They asked to provide my vision of Canaidan Market Acquisition Strategy. There was NO any data available, so the answer is very conceptual. Let`s call it Strategy Prototype :-)

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Page 1: Travelocity (Sabre): Canada Market Acquisition Strategy

Canadian Market Acquisition

Toronto, April 2014

Ivan E-mail: [email protected]

Mobile: +1 (416) 890-0037

Skype: ishmelev

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Page 2: Travelocity (Sabre): Canada Market Acquisition Strategy

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2010 2011 2012

Travelcity

Major OTA`s share of unique visitors, April 2012

29% 26% 24%

Travelocity is e-commerce that serve primarily

leisure travelers who can research and book

airlines, hotels, car rental, cruise lines, vacation

as well as access traveler reviews and other

travel-related services.

Travelocity revenue and share in Sabre business declining

-5% -7%

Business Model:

Service:

Travelocity Case

Page 3: Travelocity (Sabre): Canada Market Acquisition Strategy

Canada Profile

Population: 35 millions

Immigrants: 45%

New immigrants a year: 300.000

Ethnical groups: 33

South Asian, 4%

German, 10.18%

Italian, 4.63% Chinese ,

3.90%

Ukrainian, 3.87%

Dutch, 3.87%

Polish, 3.15%

Black descent ,

2.50%

Russians, 1.60%

Norwegian, 1.38%

Filipino , 1.30%

Swedish, 1.07%

Airports Total enplaned/deplaned passengers

58% of Canadian web users paying online for hotels, airline tickets or rental cars.

Overnight trips by Canadians

119 million in 2012

Every immigrant travels to home at least once in two years

Page 4: Travelocity (Sabre): Canada Market Acquisition Strategy

Market Acquisition Options

Customers: Revenue:

• M&A

• Traffic Acquisition

• Targeted Marketing

• Process Optimization

• New Business Model

• New Services

I picked up the most low-cost strategies as an example:

Acquisition through the niches

Every ethical group is connected to their community supplying local newspapers, TVs, shops, church, events and etc. Actions: • Marketing channels in communities • Promotions for traveling home • Packages designed for immigrants

Corporate Discount

Long-term partnership with companies offering the discount for the vocations to their employees. Actions : • Create corporate profiles • Develop the discount system • Promote to companies