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Orbitz

 Orbitz

Taichi Ishikawa

October 01, 2019
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Transcript

  1. Summary of Introduction 1. What is an Online Travel Agency

    (OTA)? Rapid market growth due to the high convenience 2. Who is Orbitz Worldwide Inc.? 1. Orbitz’ mission statement Three key strategies to achieve the mission 2. Orbitz’s global services Three different global services and their connections 4
  2. How to enhance your booking travel experience? <General Process> 1.

    Decide to travel ↓ 2. Research travel ↓ 3. Compare price ↓ 4. Book travel 6
  3. Who is Orbitz Worldwide Inc.? Orbitz is a leading global

    OTA company <Fast Facts> Headquartered in Chicago, Illinois ~1,600 employees worldwide Founded by five major airlines in 1999 Connects consumers to hundreds of airlines, over 80,000 hotels 9
  4. Our Mission: Become the most rewarding place to plan and

    purchase travel on touch devices 10 by Barney Harford
  5. Orbitz’s Growth Strategy <Mobile> Enhance User Experience on touch devices

    <International> Technology and marketing capabilities enable significant expansion in addressable markets at low cost <Loyalty> Orbitz Rewards launched in October 2013 9M+ members booked >2x more hotels 12
  6. Growing Market of Mobile Travel booking Mobile share of gross

    online bookings by key countries and regions 13
  7. Strategy 1: Mobile (2006-2011) 2006: became the first company to

    offer a WML-only mobile website 2011: Optimized to accommodate the small screen size Accommodated swiping gestures and expedited touch screen transactions 14
  8. Strategy 1: Mobile (2012-2013) 2012: Enabled users to search and

    compare offerings (e.g. cost, distance, ratings) Saved users personal information within the app (enabling one-tap access) 2013: Launched iPad optimized app 15
  9. Strategy 2: Loyalty Orbitz Rewards is driving greater hotel cross-sell

    and higher repeat activity. <Why is it attractive?> 1. Financial Incentive: earn Orbucks 2. Instant Gratification: credited and used immediately 16
  10. Strategy 3: International <International expansion (from 2012 to 2013)> 1.

    Currency Expansion: added 16 currencies 2. Language Expansion: focused on and added language content 3. Exercise the Global Platform: for market entry and new partnership 17
  11. Orbitz’s Global Services for Each Market ※HotelClub was integrated into

    Hotel.com and Orbitz For Business were abolished after the acquisition by Expedia. 19
  12. US Market: Orbitz.com <Overview> Well established online brand Large repeat

    customer base <Competitive strengths> 1. Site experience 2. Mobile Steals 3. Loyalty Program 20
  13. Europe Market: ebookers.com <Overview> A leading European OTA with presence

    in 12 countries <Competitive strengths> 1. Focus on packages 2. High supply capability 3. Enabled touch devices 21
  14. Asia Pacific Market: HotelClub.com <Overview> Migrated to global platform resulting

    in enhanced conversion <Competitive strengths> 1. Membership program 2. Membership Exclusive Deals 3. Multilingual localization 22
  15. Technology: a Single Global Platform <Overview> Migrated all B2C brands

    to common global technology platform <Key benefits> 1. Efficiency 2. Pace of innovation 3. Analytics 4. Distribution 23
  16. Business Partnership: <Overview> Leverages Orbitz assets to drive incremental transactions

    on partners’ sites <Key benefits> 1. Technology 2. Sourcing 24
  17. Our Market Overview (in 2010) • Short history ◦ Our

    website launched in 2001 ◦ Not a mature industry yet • Fierce competition ◦ Technology evolves rapidly ◦ New competitors emerge every year 1996 1996 1996 1997 1999 1999 2000 2003
  18. Mobile Market: Challenge and Opportunity • Explosive growth ◦ With

    the development of mobile internet • New source of customers ◦ Offline → Online (Opportunity) ◦ Desktop → Mobile (Challenge) • Turned out to be a wise judgement
  19. Our Mobile Strategy • Market-Driven Innovation ◦ Short- and mid-term

    strategy ◦ Based on analysis of user characteristics • Technology-Driven Innovation ◦ Long-term strategy ◦ Create demands and stay ahead of the game
  20. A Study of Mobile Users • How are mobile users

    different.. ..from offline / desktop users • What do they want in particular • How can we satisfy their demands.. ..which they themselves may be unaware of
  21. A Study of Mobile Users: Our Findings 2. Diversified Devices

    ◦ Unified.. ..brand image? ..user experience? ..functionality? ◦ Multi-platform Sync ◦ Version Control Android Device Fragmentation by 2015 (OpenSignal)
  22. A Study of Mobile Users: Our Findings 3. In Haste

    Guess what percent of mobile bookings are for the same day?
  23. A Study of Mobile Users: Our Findings 3. In Haste

    Guess what percent of mobile bookings are for the same day?
  24. A Study of Mobile Users: Our Findings 3. In Haste

    Guess what percent of mobile bookings are for the same day? 70% Our idea: to make booking process as efficient as possible
  25. A Study of Mobile Users: Our Findings 4. Laziness How

    often do we click “Next Page”? Mobile users do this even less.
  26. A Study of Mobile Users: Our Findings 4. Laziness -

    How do mobile users eventually choose a hotel? 25% The 1st Hotel 50% Top Five Hotels 90% Within First Page
  27. A Study of Mobile Users: Our Findings 4. Laziness -

    How do mobile users eventually choose a hotel? Our idea: taking advantage of their laziness 25% The 1st Hotel 50% Top Five Hotels 90% Within First Page
  28. Overview • WML-only mobile web site • Web-enabled Device •

    Mobile-exclusive Device • Native App for different operating systems and platforms • Mobile Development for All Platforms • Verification 40
  29. 2010: 3rd-Party Web and Apps • Full booking functionality ◦

    Flights ◦ Hotels ◦ Rental cars ..within one mobile App • First of its kind!
  30. 2011: M-Commerce for Business • Make New Reservations • Trip

    Tracking and Itinerary Management • Flight Status and Traveler Updates • Full Policy Application for All Reservations • Company and Global Messaging • Customer Service and Support 44
  31. 2011: Hotel Booking App for Ipad • GPS Function •

    Pin nearby Hotels • Address • Phone Number • Cost 46
  32. 2011: Purpose • Meet evolving consumer expectations • Adjust to

    rapidly expanding and changing mobile environment 47
  33. 2011: Improvements • Accommodate the small screen size to mobile

    device • Accommodate swiping gestures • Expedite touch screen transactions • Features • Traditional • New: book packages, view savings, search and filtering, linking online profile 48
  34. Verification •Comparison Study with •Atmosphere Research Group •C + R

    Research •When booking round trip flight: •twice as fast as people using its iPhone app competitors •Positive marks: 92% and 30% 50
  35. Different Operating Systems and Platforms • Full version of a

    native app for iPad • Orbitz Rewards • Orbitz Labs • New version for Business Website 51
  36. All Platforms • Apple Watch • Smart Lock •Return to

    the site or app on different device 52
  37. All Platforms • Apple Watch • Smart Lock •Return to

    the site or app on different device 53
  38. A Not-So-Successful Attempt: We created user profiles based on multiple

    factors.. Devices used, Previous page visited before Orbitz.com Booking history …… ..and tried to take advantage of these profiles: We recommended more expensive hotels to Mac users. 54
  39. Orbitz was acquired by Expedia in 2015 Expedia bought Orbitz

    for $1.6 billion — or $12 per share Only two players control the online marketplace “We are attracted because of Orbitz strong brands and impressive team.” said CEO of Expedia. 55
  40. Recent Challenge for Orbitz Caused a big data breach in

    2018 Affected 880,000 payment cards containing very sensitive information (e.g. payment card details, full names, dates of birth, phone numbers) 56
  41. Key Takeaways 63 • We studied mobile users and tried

    to improve UX • We go through Orbitz’s Mobile Trajectory • We saw some sustainable development initiatives
  42. Answer to Case Study Q1. Q1. When compared to traditional

    desktop customers, why are mobile phone users much more likely to book a room or airline reservation for the same day? A1. Business people are usually in travel, they will not have their desktop always with themselves. Mobile phones give them this facility to book their hotel and flight reservations when they are traveling. Orbitz app can get their location and show the nearest hotels around them with all information about those hotels. 65
  43. Answer to Case Study Q2. Q2. In the mobile design

    project of 2011, why did Orbitz management decide to construct a mobile Web site for corporate users rather than a native app? A2. Native apps are mobile application which are used for specific platform and cannot be used by any other platform users. Mobile web site which can be accessible by any platforms with just required access the Internet to connect via web browsers. 66
  44. Answer to Case Study Q3. Q3. Why has Orbitz decided

    to go with native apps for each mobile platform (iOS, Android, and Kindle Fire) instead of a single mobile Web site as it did with the Orbitz for Business mobile site? A3. Native apps are faster than classical HTML code. Besides, it is faster than HTML5 code as well, which requires a rendering engine to construct mobile web pages. Native apps can also platform all the functions of HTML5 or desktop version of the reservation system but it executes much faster. 67
  45. Answer to Case Study Q4. Q4. What issues does syncing

    recent user searches across devices pose? A4. Privacy is one of the main issues posed by Orbit’s ability to sync searches across devices. 68
  46. Who wins or loses in the new landscape? The biggest

    winners are the shareholders Most significant impact of the acquisition is that suppliers are going to be dealing with fewer players Therefore, smaller OTAs have a tough road to hoe Won’t matter to the consumer as long as Expedia keeps the brands operating independently and allows them to compete 70