(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
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
<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
offer a WML-only mobile website 2011: Optimized to accommodate the small screen size Accommodated swiping gestures and expedited touch screen transactions 14
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
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
the development of mobile internet • New source of customers ◦ Offline → Online (Opportunity) ◦ Desktop → Mobile (Challenge) • Turned out to be a wise judgement
different.. ..from offline / desktop users • What do they want in particular • How can we satisfy their demands.. ..which they themselves may be unaware of
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
Tracking and Itinerary Management • Flight Status and Traveler Updates • Full Policy Application for All Reservations • Company and Global Messaging • Customer Service and Support 44
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
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
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
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
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
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
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