Internet Marketing Strategy Expedia.com and its main competitor Travelocity

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Internet Marketing Strategy Expedia.com and its main competitor Travelocity

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Abstract

Taking a vacation has become increasingly easy as it is convenient to go online and book holidays. Probably more convenient than visiting a brick-and-mortar travel agency. The number of people booking holidays online is increasing as more and more people are becoming computer-literate, and confident about the entire process. This opens up new avenues for companies which offer travel services online, and hence, many companies are pursuing it. The difference between the brick-and-mortar world and the online industry is that the online industry has no natural barrier such as geographic location of customers to switch travel agents. Everybody is just a mouse click away.

Based in Bellevue, WA, Expedia, Inc. defines its business as "selling travel services to leisure travelers and corporate customers around the world" (page F-9) in its 10k (annual reports) filing for 2002.. Travel services are not only sold primarily through Expedia's own websites, but also through websites of other travel companies, through telephone and through affiliated brick-and-mortar travel agents. Expedia acts as a broker. It operates through off-line travel agencies, in order to address the needs of large commercial customers. Expedia's services comprise of air fares, lodging, rental cars, cruises, combination of these and complete travel packages.

Expedia's current position
1. Business and Revenue model
2. Viability of business model
3. Customer segments
4. Industry Analysis
Comparision between expedia and travelocity as competing online travel agencies
1. Market shares
2. Technology
3. Brand Communication
4. Competition in the corporate market
5. Internationalization Effort
6. Corporate Structure
7. Comparison of Fianancial Performance
Recommendations
1. General
2. Content - Suggestions about additional information
3. Community - Recommendation: Build up Consumer Rating
4. Customization ? Improve response to needs of corporate travelers

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[...] They do not use a specific segmentation, instead, they use a one-to-one marketing strategy by using customization to meet the specific expectations and profile of each customer through personalized emails, personal accounts or travel preferences Business travelers In 2002, the corporate travel market which was worth $ 70 million, was more than a half of the overall travel market in the US. Earlier, companies managed business travel through offline agencies. However, over the past years, the increase in the cost of managing business this way has made it an option preferred less, and hence many companies have now begun managing their travels online. [...]

[...] Travelocity is Expedia's largest competitor in the online travel industry and one of the leading online business travel companies, along with other websites such as Orbitz or Biztravel. Although Travelocity's business travel offer is currently being improved, it is comprised of the same range of services as Expedia's offer. The difference between the two websites however, is in other areas, the most important of which are the following: - The pricing: The registration and the setting up of personalized travel tools are free with Travelocity, whereas Expedia charges its client companies a standard annual fee of $149. [...]

[...] In contrast to Expedia, its major competitor Travelocity is not part of the large conglomerate, but its long-term majority shareholder Sabre bought the outstanding 30% of the company in April 2002. Since then, it has been the sole owner. Sabre was founded as the booking system of American Airlines in the 1960s by American Airlines' shareholder AMR. Sabre merged Travelocity with Preview Travel in 2000. Travelocity had been the largest online travel provider in 2002 in the U.S and had accounted for 11% 308 MM) of Sabre's revenues in 2002. [...]

[...] Conclusion The analysis presented above is sufficient to say that Expedia.com has a better has definitely outperformed its competitor Travelocity. Constant change and up-gradation has to be the mantra if success has to be Expedia's in the days to come. Apart from the expenditure on advertisement and technology, if the few recommendations offered here are also implemented, the day that Expedia will reach the Zenith of its growth may not be far away. References: Interactive to Acquire Rest of Company”. [...]

[...] It could continue and expand its efforts to offer tailored combinations of online and offline services to its business customers, and charge premiums for extra features. Expedia could also offer leisure services to business travelers, e.g. musical tickets for travelers traveling to New York. With regards to connection, Expedia generally should try to include more of its service on its own webpage, in order to become an exclusive travel portal. Extensions to Amazon.com to buy travel guides or local tourism information pages could also be enabled. [...]

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