Tim Hughes puts the boot into the highs and lows of the online travel business (with an Australasian/Asian bias) with some blogging about consuming and loving travel thrown in.
Friday, August 29, 2008
BOOT is on the Road: In London Sept 1-5
Posts will be light next week as am on the road/in the air. Spending the week in London for work. Might be a chance for a meet up on Wednesday Sept 3. Any interest out there? Am travelling CX business class. Enjoyed the last time and looking forward to it again.
Wednesday, August 27, 2008
BOOT Recommends: Podcasts I listen to - travel and non-travel
Here are a list of the Podcasts that I listen to on a regular basis. There are others I dive into an out of but these are a regular part of my week/month
News & Current Affairs
Tech and Tech Business
Misc
News & Current Affairs
- NPR: Most Emailed stories
- NPR: Fresh Air
- NPR: Business Story of the Day
- ABC: Conversation Hour
- BusinessWeek: Behind the Cover
- New Yorker: Comment
- New Yorker: Out Loud
- New Yorker: Campaign Trail
- Economist: From the Paper
- Economist/CFR.org: World next week
- Economist: Certain Ideas of Europe
- Economist: Democracy in America
Tech and Tech Business
Misc
Tuesday, August 26, 2008
TRAVELtech: Travelzoo announce 1 million subscribers in Asia Pacific, 100,000 in Australia
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TRAVELtech: Global Review proves what we all knew - Consumers are almost impossible to predict
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1. Find the cheapest flight from Melbourne to Perth from Tullamarine, arriving before midnight and with check-in
2. Find the cheapest hotel in Brisbane, 5 mins from Botanic Gardens, with a pool and for less than $400 for two nights.
Here is a quick summary of the results of the survey:
Search: 47% started with a search engine
- 32% used the search engine via an installed search bar;
- 37% entered in a brand name, a large proportion searched a full URL in Google. In effect treating it the means for using a browser;
- Of these 18% clicked on a paid advertisement - the rest clicked on organic listings; and
- 0% (yes ZERO percent) looked at the second page.
Suppliers: 6% went direct to a supplier (in the first instance) but 45% of aggregater visitors (in the case of the air ticket) indicated they would normally go from the aggregater to the supplier to book to avoid paying booking fees and because they trusted the results more.
Themes
- All about the first page in SEO
- Air aggregaters and buying traffic and losing sales to suppliers
- Consumers continue to miss buttons and tabs that we think are clear and obvious
TRAVELtech: World Nomads and Footprints - building a brand by giving money away
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World Nomads is an online insurance company that decided to add an optional $2 charitable donation into the purchase path. More of the story here but quick version is that not only have they generated hundreds of thousands of dollars in charity, they also opened up a marketing channel. The donations spawned a video documentary which spawned an in-flight video series and eventually a distribution deal with National Geographic. Money raised for poor communities and global branding and marketing paid for by travel media companies and airlines.
The latest iteration of this story is that now Footprints is a stand alone charity business with an API. Means that any company that does a deal with Footprints can have access to functionality to charge a $2 charity donating and join the program. They are targeting a very ambitious $1billion. Amazing stuff. Love it.
TRAVELtech: Stayz doing more than $100mm a year. Now valued at $36mm according to Fairfax
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Fairfax Digital Media bought Stayz back in 2005 for $12.7 million. Cassidy claims that if the same multiple at the time of acquisition were applied to current revenues then Stayz would now be worth $36mm. Here are some of the statistics he shared with us about the business:
- 2007 Transaction Value - $107mm (value off bookings generated for owner/listers);
- Grown from 9.000 properties to 23,000 properties; and
- site re-launch generated conversion improvements of 30-40%.
Assuming this is right it is an amazing story behind media group network effects. That internal banners and buttons and not what the network is about. Instead it is the html code driving links and search traffic. Sounds very close to some of the grey/blackish hat activities I have seen online from travel affiliate companies.
TRAVELtech: Webjet CEO Noon calls the AU market sales of Expedia, Zuji and more
Final speaker of the first session was Webjet CEO Richard Noon. Had a great slide that I was able to quickly copy down to share with you. He showed his estimation of the annual Gross Bookings of major full service OTAs in Australia. Here is that graph as I copied it.
If you are interested in the Australian turnover of Webjet, Expedia, Bestflights, Zuji, Lastminute.com.au, travel.com.au and online for flight centre check it out.
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He prepared a formula using comparative page views and PhoCusWright estimates of the Australia online travel market. He took the page views of each of the players locally and then apportioned gross bookings from the PhoCusWright estimates of total Australian OTA sales.
Later during the panel session these numbers were put to each of the bosses of Zuji and Expedia.
Expedia AU MD Arthur Hoffman dismissed the $80mm estimate for Expedia saying that this was a very pessimistic view. That actual number was "far north of that".
Zuji CEO Scott Blume - "took the fifth" when asked about the $30mm estimate. Saying that they do not break out their bookings.
If you are interested in the Australian turnover of Webjet, Expedia, Bestflights, Zuji, Lastminute.com.au, travel.com.au and online for flight centre check it out.
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He prepared a formula using comparative page views and PhoCusWright estimates of the Australia online travel market. He took the page views of each of the players locally and then apportioned gross bookings from the PhoCusWright estimates of total Australian OTA sales.
Later during the panel session these numbers were put to each of the bosses of Zuji and Expedia.
Expedia AU MD Arthur Hoffman dismissed the $80mm estimate for Expedia saying that this was a very pessimistic view. That actual number was "far north of that".
Zuji CEO Scott Blume - "took the fifth" when asked about the $30mm estimate. Saying that they do not break out their bookings.
TRAVELtech: TripAdvisor China "on its way"
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The stories have already broken around the launch of localised TripAdvisor products in India and Japan. Hoffman when on to say that TripAdvisor "on its way to build a more local model in China". Will call that a pre-announcement.
He is convinced you need to incorporate content and retail. Not in a community fashion but in a targeted fashion - personalised for the individual consumer. Gave an example of the integration of the SeatGuru airline seat information into the booking path of Egencia (new name for Expedia's corporate travel agency).
TRAVELtech: Zuji firing in Asia on "most" cylinders
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Zuji ha been prolific in launching across Asia Pacific. Has spread the business through organic, acquisition and multi-brand approach. Organic in Australia, Singapore and Hong Kong through the Zuji brand, Organic under the Travelocity brand in India and New Zealand (though NZ used to be a relationship with an offline player) and acquisitions in Taiwan and Korea (Nextour brand). Blume said that he like this diversity in markets because
"When one country is firing, others aren't. Would love to have all 7 countries firing at once. Has not happened in in my tenure [as CEO]."His biggest concern and view on the biggest challenges being faced by the industry are the dramatic increases in search costs.
TRAVELtech: Kicking off with stats from the Airport Economist
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Opening session led by Tim Harcout from Austrade. Also known as the Airport Economist basd on this book of the same name. He is opening up the conference by giving us a view of the Australian economy and whether or not local travel companies should be fearing for the worst given the view from the US and Europe over economic concerns.
As Harcout described it, the world economy has "...gone from the sub-prime to the ridiculous". But Tim tried to reassure all that the Australia economy is almost unstoppable with the longest expansion in history with very low unemployment and very strong terms of trade.
The part I found most interesting from his entertaining presnetation was the statics that shows that departures out of Australia numbered more than arrivals in 2007 and so far in 2008 for the first time since trackings started. In simple terms more Australians are leaving the country to holiday/travel overseas that visitors entering the country. Does not mean a complete disaster for inbound players are there is still growth for inbound but for the first time the outbound providers have the upper hand in Australia.
Friday, August 22, 2008
TripAdvisor into Vacation rental through purchase of FlipKey
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I am continuing my updated list of their acquisitions.
- Flipkey
- Airfarewatchdog.com
- OneTime.com
- Virtual Tourist
- HolidayWatchdog
- smartertravel.com
- bookingbuddy.com;
- TravelPod.com;
- Travel-Library.com;
- SeatGuru.com; and
- Cruisecritic.com.
Wednesday, August 20, 2008
Update: Sprice launch and better Sydney search results
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It has been pointed out and confirmed that the search results were for Sydney Nova Scotia not Sydney Australia. In my trial search I simply types in the word "Sydney" and pressed return. Nothing on the page indicates that it is the "wrong" Sydney (apologies to any offended Canadians). Have redone the search (see shot below) and produced 4 pages of results. Apologies to Sprice for not picking this up in the post. I would still argue for Sprice improving the destination resolution so that it is much clearer which destination is being searched (again see shot below) but this is a much better position to be in. A Sprice contact mentioned on email to me that they will be working on this.
Still is a strange bit of AdSense in that the shot contains a Wego advertisement (and a Bezurk one too). I suggest Sprice add this to the list of things to update as well.
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Tuesday, August 19, 2008
Qantas story and ad mishap in Age newspaper
Australian Broadcasting Corporation media industry show Media Watch picked up a great "why did we put that ad on that page of the website" story involving Qantas and the online version of Melbourne's Age newspaper. Check it out.
Monday, August 18, 2008
601 not out
Every hundred posts I do a quick summary of what has been dominating the blog. A regular "not out series" to keep readers up to date. Started first with 101 not out and continued with 201, 301, 401 and 501 not out.
A number of different industry themes came out in the last few months
And on the fun/quirky/ranting side
I am still writing, hope you are still reading.
A number of different industry themes came out in the last few months
- Gotcha Capitalism - how companies (including travel companies like Budget) hide fees and charges that undermine the advertised price. Not even Moose Hunters are safe.
- Airline Bad news is everywhere - bad news days for airlines became band news months and weeks. But clearly it is all the fault of those thieving, stealing, cheating oil speculators
- Start up changed names as the URL trading industry heated up - Kango became UpTake, Vailoma became TripSay and Bezurk became Wego
- BAR - I argued that BAR does not build brand in hotels
- India - Expedia entered the market, maybe bought a slice of TravelGuru and Ram from PhoCusWright and I talked and talked about what this meant for a heating up region. Revenue Management seems to be the first thing to be burned
- Content: is there money in it and if so what is the mode?. TripAdvisor think so and are buying up everything they can to prove it. The money is also starting to flow in Asia. But there is also trouble as the eyeball chasing advertisers are beginning to hold onto their money
- Last-minute model on hiatus: I called the Last-minute booking model on hiatus and maybe dead (model not company). Others picked up the story (without crediting me); and
- Mobile : I started the first in a series of thoughts on mobile technology and online travel.
And on the fun/quirky/ranting side
- Qantas to decided to give up on rewarding frequent flyers by introducing a flawed and plain out nasty to consumers AnySeat rewards program. You now have to fly to the moon (literally - 2.5 million miles) to be able to book a first class seat to New York
- BOOT made it into the Australian Financial Review but that did not stop Google from accusing me of being a Spam merchant
- We had a first competition on the BOOT with rude consequences
- As always the most consistent part of the blog - that no matter how much hope it wont be the case, the in-flight entertainment system on Qantas failed again and again; and
- Phillip Wolfe of PhoCusWright (with a lot of help from Rod Cuthbert of Viator) brought together a great group of online travel players in Sydney. The BOOT tried to the same thing in London and ended up with a much smaller (but no less interesting) group of bloggers.
I am still writing, hope you are still reading.
TRAVELtech next week - see you there
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Thursday, August 14, 2008
Meta-search Sprice announces revamped Singapore site - celebrates by showing only 2 hotels in Sydney
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Sprice.com (previously called Fare.net) has been on my radar for a while because they raised some $10mm last year. However the first time I looked at their search results I did not like what I saw. There were plenty of hotels but the UI has hard to navigate and made comparison of hotel rates cumbersome and difficult. I was therefore interested to read a story on TravelMole announcing that they had revamped the Sprice.com Singaporean website. The functionality looks a lot better, is easier to navigate and has that clean & crisp travel2.0 light tones buzz about it. But (and this is a big but) on my random search for Sydney hotels check in 28 Aug Sprice.com returned only 2 hotels. As you can also see from the screenshot below the Google AdAense bar contains a strange collection of ads for US, UK and French destinations. Sprice have the UI issues fixed but need to go back to the connection and monetisation side of the business and do a lot more work.
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Wednesday, August 13, 2008
Skytrax vs the BOOT - who do you agree with as the World's Best Airline
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The Skytrax top 5 Airlines:
1. Singapore Airlines
2. Cathay Pacific
3. Qantas
4. Thai Airways
5. Asiana
The BOOT top 5 Airlines
1. Singapore Airlines
2. Virgin Atlantic
3. British Airways
4. Cathay Pacific
5. Qantas
Amazed to see that neither BA nor VS made the top ten in the Skytrax list. As hard a time as I give Qantas - I agree that they deserve the award for the Best First Class Lounge. The Sydney lounge is in a class beyond any other I have visited. It is with some interest that I note that Qantas is nowhere to be found on the list of best inflight entertainment. It seems a minimum criteria for the award is that the inflight entertainment system works
Thinking about online travel and mobile technology
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Mobile has been a constant form of chatter and speculation since 2000. I was in the UK at the time and BT must have spent millions of pounds telling British consumers about how WAP would change their lives. They invested even more in launching new brands such as Genie (now defunkt and part of O2) to promote WAP and mobile services. Not to be left out of the "dotmobile" boom, Vodafone and Vivendi launched Vizzavi with an offline marketing campaign that would make even Pets.com's poor old shareholders shake their heads with despair (Vivendi eventually sold out to Vodafone). Lastminute.com rushed out a mobile booking and voice activated services - again with no result.
There was a sense of panic in the air - if you don't get into mobile the whole business will collapse. Now remember this was 2000 - mobile penetration was less than half what it is now and there was not even a hint of standards or platforms/operating system stability in mobile. Lots of money - near zero results.
Every year since we have had another round of buzz around mobile. PDAs hit the market, Blackberries spread like weeds, Nokia dropped the word "phone" form internal memos and language in favour of the word "device", Windows Mobile finally because somewhat usable and the iPhone became the number one product launch in living memory (in terms of buzz vs sales). At each stage mobile was hot again. Thankfully now the response is a little more measured. Now we know we have to develop mobile plans and products but it is not a panic.
Response to this buzz has to be managed because it is really difficult to build a mobile product. With a website there is a lot of platform standardisation a company can relay on. So long as you code your site to be viewed by IE and Firefox (and maybe Safari) then you enough of the market covered. However with mobile there is no platform standards. Palm, Blackberry, Nokia, Apple, Windows all have different ways to displaying/accessing web pages. In the case of WAP almost every second device requires a different layout mechanism. There is also the debate about whether or not you take a browser or downloaded application approach.
This brings us back to the Rydges announcement. They have gone for a non- application based WAP approach. The hook for consumers is that bookings through the site qualify for a priority rate (worth 10% off BAR). According to their eCommerce Manager Stefan Drury by 2010 they are aiming to do "at least the same number of room nights through mobile as the primary www.rydges.com website". I like the intention but think the real work should be done outside of WAP and targeted at the browser/application approach.
I am going to treat this post as an intro/part 1 post. In later posts I will take a look at some of the online mobile companies that have come across my radar taking different approaches to mobile booking on travel. What do you think about mobile. Is now the right time to panic and build and launch as much mobile as you can?
thanks to Gaetan Lee on Flickr for the photo
Tips for how to demo a startup for investors
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thanks to airnos on flickr for the auto slicer product demo photo. Love that coleslaw
Tuesday, August 12, 2008
Ryanair hates Kayak - promises to cancel tickets booked through meta-search
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"We want to cause as much chaos for the screen scrapers as possible"This news comes a week or so after the coverage of a looming issue between AirAsiaX (long haul offshoot of Asian low cost carrier AirAsia) and Webjet (Australian based OTA that uses an aggregation engine to combine non-GDS available fares) over Webjet's reported intentions to screen scrape for access to AirAsia X fares.
I understand the argument of the carriers here that meta-search or aggregated search based engines end up pounding the websites (or rez systems) of the carrier, especially where the connection is based on a robot/screen scrape rather than a direct connect. But on the other hand when an airline opens itself to the internet and search engines and enjoys all the benefits of being indexed and discoverable by consumers, they cant then complain when people build mechanisms for more effective forms of search.
In the case of Ryanair, I am sure they are down on their knees and grateful to the SEO leprechauns that they are the number one for organic search result for "cheap flights london dublin" (see shot below)
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To then turn around and complain about other search players wanting to build indexes as well is a bit like trying to have your un-fetted search cake and control it at the same time. This is especially true if you are a low cost airline. If as an airline you believe that your prices are the best and are the definition of your product then you should embrace aggregated/meta-search as it will prove your case every time. Seems like O'Leary now likes Expedia but hates Kayak.
BTW - what is Etihad doing bidding on Google.com.au for the keywords "cheap flights london dublin". I know the UAE airlines seem to have unlimited marketing budgets and an insatiable desire for growth but surely the clicks from this are a complete waste of money. Whoever their SEM agency is needs to be roused from the marketing conference bar room and put back to work.
Update - if you want to hear a different view check out Timothy O'Neil-Dunne's post on the same subject "Ryanair clams down on Screen Scrapers - Agents too?"
Monday, August 11, 2008
Struggling to track EXPE, PCLN and OWW? Thankfully Seeking Alpha has a summary
Three big earning releases last week in the online travel industry. Made for a lot of material to listen to, read and digest. Thanks to Sramana Mitra at Seeking Alpha you don't have to fret. She has put together a one page summary of the highs and lows of the releases from each of Expedia (EXPE), Priceline (PCLN) and Orbitz Worldwide (OWW). Is this week's BOOT recommended read.
Thursday, August 07, 2008
AerolÃneas Argentinas to be nationalised. Am convinced US and Euro airlines will also be seeking help soon
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thanks to jmiguel.rodriguez for the photo from flickr
Dear Readers - what should I do with this comment?
Dear Readers. I need your advice. A commentator under the tag "Conny Vige" has tracked down almost every post I have written about or including Expedia and posted this
UPDATE - the BOOT readership has spoken. Will be deleted the comments (and any further) but will keep this post up to highlight the comment once.
"Hi. You have created an interesting and informative blog. I have heard and read about Expedia a lot. It is a great travel experience. You can easily plan your vacation sitting at home or at the office. You can never be sure 100% that everything will go right. I browsed this great site www.pissedconsumer.com and found the customers’ feedbacks on the company. Interested?"I can't decide whether or not to delete them or let them stay. The argument for keeping them is that they are not offensive and are contextual (ie are in Expedia posts). The argument for ditching is that they are repetitive and might be link hunting for "pissed consumer". The ultimate test of course is whether or not they are spam. I have committed to keep all comments on the site that are not defamatory, spam, nonsensical or full of vitriol/personal insult. So - what do you think. Keep or ditch?
UPDATE - the BOOT readership has spoken. Will be deleted the comments (and any further) but will keep this post up to highlight the comment once.
Tuesday, August 05, 2008
Emirates to ditch in-flight magazine - changing of on-plane advertising market
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This tells me an interesting story about the economics of in-flight advertising. Airlines traditionally make a lot of money from in-flight magazine advertising as they have a great travelling demographic and a near certainty of circulation and readership (especially on long haul). The scraping of this magazine is probably more to do with the changing on-plane media habits of consumers. With Emirates carrying 600 channels of entertainment (that WORK my dear Qantas flying readers) they have provided the audience (passengers) with less reason to read the magazine at the advertisers with a more enhance media to utilise. My guess this is not a fuel or green decision, it is a marketing and advertising sales decision. What do you think?
Hat tip to Darren at Travel Rants where I first saw the story
thanks to erdanziehungskraft for the photo from flickr
Bejing Olympics: Translate Server Error restaurant
If you have not seen it yet pop over to Adfreak.com to see the shot of the Beijing restaurant that clearly relied on a website to translate the cafe's name from simplified Chinese into English. The result - the cafe is now called "Translate server error".
Monday, August 04, 2008
Hotel Sales Report - you can't give them away
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Another interesting stat from the report - 84% of the transactions were for hotels of value less than$100mm and only one at greater than $1billion. It may be that this trend is unrelated to travel market decline and more related to the credit crunch and resulting inability of institutions to raise the debt that is needed to finance large hotel acquisitions. I hope that is the answer and not that this story along with the RevPAR story are indicating that the market is going south.
thanks to the Chris & Sandra Marshall on flickr for the photo
TRAVELtech is coming: Year of Living Dangerously
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Start Up competition at WIT Web In Travel 2008
General information on the Web In Travel conference is here. I am speaking at it - see you there.
Blogger (Google) to the BOOT: You're spam and you're out of here
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"Your blog at: http://tims-boot.blogspot.com/ has been identified as a potential spam blog."I was given 20 days to lodged an appeal and have the blog re-instated. In the meantime I could not post any new items.
Blogger was full of apologies this morning. They returned by access to the blog, blaming this on a bug that caused problems for a large number of blogs. Here is what they said
"We want to offer our sincerest apologies to affected bloggers and their readers. We’ve tracked down the problem to a bug in our data processing code that locked blogs even when our algorithms concluded they were not spam. We are adding additional monitoring and process checks to ensure that bugs of this magnitude are caught before they can affect your data."For those interested here is a screen shot of what it means to be locked out of Blogger
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thanks to allspice1 over at flickr for the photo
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