Agenda Bahia. The future of tourism in digital era - OTAs vs Travel Agencies. Robert Phillips

1. Agenda Bahia - The Future of Tourism in the Digital Era
Agenda Bahia
Digital World in Tourism
The Future of Tourism in the Digital Era
20/09/2016
Robert Phillips

2. Agenda Bahia - The Future of Tourism in the Digital Era
Context

3. Agenda Bahia - The Future of Tourism in the Digital Era
5 Phases of Travel

4. Agenda Bahia - The Future of Tourism in the Digital Era

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6. Agenda Bahia - The Future of Tourism in the Digital Era
OTA’s – Online Travel Agencies

7. Agenda Bahia - The Future of Tourism in the Digital Era
OTA’s – Online Travel Agencies
Priceline Group
US$55.5 billion gross
Bookings in 2015
Expedia Group
US$60.83 billion gross
Bookings in 2015

8. Agenda Bahia - The Future of Tourism in the Digital Era
OTA’s – Online Travel Agencies

9. Agenda Bahia - The Future of Tourism in the Digital Era
OTA’s x Airlines
• In last few years they consolidated their online services
• They offer User Interfaces with everything a travel might need
• Buying flights online has become a commodity
• Users use OTAs to compare pricing, however they are booking the
reservation on airline websites

10. Agenda Bahia - The Future of Tourism in the Digital Era
OTA’s x Hotels

11. Agenda Bahia - The Future of Tourism in the Digital Era
OTA’s x Hotels

12. Agenda Bahia - The Future of Tourism in the Digital Era
• The Human Touch is irreplaceable
• Contrary to public perceptions technology
can not substitute human customer service
for travel planning, destination knowledge
and especially for sensitive items like when
something goes wrong
• Technology will help automate the heavy
work, but consumers still prefer the
attention from a travel professional
Source: Amex Travel Future Trends 7-9-15
OTA’s x Agencies

13. Agenda Bahia - The Future of Tourism in the Digital Era
OTA’s x Agencies
Vídeo 1 (2:05) - https://www.youtube.com/watch?v=ilFMZYfA4NI

14. Agenda Bahia - The Future of Tourism in the Digital Era
• OTAs have been around for almost 20 years – we should not treat them as
something new
• Expedia opened in 1996 and Priceline in 1997
• Forbes published ”How The Internet Created The Superstar Travel Agent”
• “Travel Agents” are becoming “Travel Specialists and Travel Consultants”
• The internet has changed the way a travel agent works
• Travel Agencies need to become younger and more creative, if they are going to
survive
• Enters the new Independent Travel Agent
• Personalization is the new frontier in travel service
OTA’s x Agencies

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• Too much Information – Too many Choices – “click fatigue”
• A great User Interface can not offer the sense of security that a travel agent
historically brings to the table
• Reason to travel with a traditional travel agent:
• ”knowledge of destinations”
• “capacity to reduce complications in the reservations process”
• “capacity to offer that extra level of service with something goes wrong”
• “the experience to help book a trip better than I would on my own”
• “more confidence in their recommendations”
Source: MMGY Global’s 2015 Portrait of American Travelers
OTA’s x Agencies

16. Agenda Bahia - The Future of Tourism in the Digital Era
• Re-invent yourselves
• Dive into the internet and its tools
- Google My Business
- Website – SEO – SEM
- Social Network – Facebook
- Share and Communicate with your clients and their Comments
- Work your Reviews
- Offer Personalized Services
• Hotels
- Facilitate Online Reservations
- Facilitate Reservation Changes and Cancelations
- Have a Fidelity System
- Websites where customers will want to book (Value > OTAs)
• Travel Agencies
- Offer Personalized Services where value to client > OTA
- Facilitate Communications with Customers
- Demonstrate knowledge and security – be consultants
Hotels and Agencies

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OTA’s x Agencies
Vídeo 2 (3:20) - https://www.youtube.com/watch?v=Z-gyJ5Yv0vk

18. Agenda Bahia - The Future of Tourism in the Digital Era
Agenda Bahia
Digital World in Tourism
The Future of Tourism in the Digital Era
THANK YOU
Robert Phillips

19. Agenda Bahia - The Future of Tourism in the Digital Era
• www.wttc.org
• www.wto.org
• www.travel.americanexpress.com
• www.expediainc.com
• www.pricelinegroup.com
• Google Travel
Sources

20. Agenda Bahia - The Future of Tourism in the Digital Era
OTA’s x Agencies
Extra Video (2:05) - http://www.cosmos.com/