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Expedia's Chief Executive Officer to transform travel booking
Would you like to take a look into the futur of travelling bookings? If so, please contact Expedia Inc. Expedia takes over the increasingly complicated job in the back of this scene, letting the traveler lean back and let him know when his flight, accommodation or automobile preference is up. Explaining what he sees as the most important tourism bookings trend, talking about the need to be a "street fighter" in China, Khosrowshahi said that the Orbitz fidelity programme is not really a fidelity programme, and commenting on the very serious uses in TV commercials for tour brand and where the advantages are.
Expedia, along with Hipmunk, seems to lead the way in properties that place multi-device use among travel seekers and books. What is Expedia going to do next about multi-device use and where will all this lead? In general, one is the posting procedure we see becomes much more complicated.
Anyone who performs a scan performs over 40 scan flights before making a reservation. We also see how people buy from multiple machines they book. Nowadays we see around 40% of our customers using several machines. Secondly, we generally see an explosion of information in the tourism sector.
Expedia can now process more than three time as much in one workday. And the third tendency we are seeing - and this is a really important one for the future - is that the way people use the web is moving from each other. But when you look at the press alerts you receive from your cell phones and so on.
We think that the amount of pushed alerts is fivex that number. This really moves you from a simple equipment push environment to a multi-device push environment. As we know, people are looking for a great deal so that you can save all your query within Expedia.
Then what we do, as far as pulling going to press is, when a customer leaves us - say, he is interested in a New York store, for example - we will go for you. You can, for example, have an e-mail sent to you daily with the changes in the prices of flights and hotels.
We' ll expand this to every individual item available on Expedia so you don't have to keep coming back and searching and shopping. We' re gonna make it across device boundaries to press alerts. Once you have performed a series of air traffic checks, you may be able to attach them, mail them to your spouse and pass them on to others.
There' s much more we can do, and it is only the beginning of this truly important multi-device push network that we are build. While on the wireless side, many businesses are talking about how many people are downloading and so are you, but you also have a target of 20% of deals on wireless equipment by the end of 2014.
When you reach this destination, what does it mean for the journey reservation of the world? Like you couldn't be traveling three years ago and weren't on line. Now you can't be traveling, working with multiple devices and being on the move. Mobility is a great chance for us because it opens up a new shopping category, last-minute shoppers for whom we have not offered a great level of customer care.
And we see that cell phones, especially in emerging economies like China, are speeding up the rates of users going up. They' re on the move before they buy a computer. Since they are on the move, they search for all sorts of things, even travelling. It accelerates the acceptance of on-line journeys, particularly in the Asia-Pacific region.
Tray or cell telephone. It' s a daunting transition from the old way of creating designs to fast-reacting designs, but we move very purposefully across more of our websites to fast-reacting, providing a great portable experi¬ence on all the devices you use.
I heard you mention China. Mr President, I wanted to ask you about China with regard to the next big thing in the emerging world. What about your eLong office in view of the experience with cell phones and the general trend towards booking trips? It is a one-of-a-kind country and there are very few West African businesses that have been able to succeed in China.
There is a really good justification for this, because China is different. Guangfu says to me that the Western people in China are not doing well because they are not road warriors and the Chinese are road warriors. eLong is still growing very fast. It' one of the big names in China, one of the three biggest names in a very highly competition.
This is a 100% owned and 100% owned enterprise, and we are making aggressive investment in the development of the eLong trademark in China, but above all in mobility. Moblie explodes in China. It' s much app-heavy in China as wheeled web heavier, and we are making the right investment to expand this deal in an aggressive way.
This year, one of our new activity is to really bind our inventories so that Expedia travellers can now book on eLong hotels in China. eLong travellers are booked on Expedia Affiliate Network Hotels international, and cross-border travel is growing exponentially, and that's something we like to see.
Expedia launched Expedia Traveler Preference in 2012, which combines prepaid hotels with Expedia and Pay-at-the-Hotel hotels as well. Offering your clients more choices seems child's play, but what are your posting habits for these choices and how do they differ from area to area?
We have now registered nearly 60,000 hotels for Expedia Traveler Preference and are expecting an increased output for ETP hotels. Firstly, we see a division between Expedia gather and Hotel gather reservations on a worldwide scale. However, in general we see a higher rate of local reservation will gather up.
When you book in Switzerland with the same currencies, the percentages are higher. You do not want to take a forward transaction and keep your rates, so we see a higher proportion of Expedia entries for international entries. We' re also seeing more Expedia collecting on short term reservation screens.
So, if you know that you are going to this property, we see customers who only want to do business. They' re gonna do it instead of pay at the motel later. We will see more reservations for longer stay, or for stay with longer window. It is interesting that different needs exist for different kinds of trips and different kinds of travelling behaviour.
And, to the degree that we are much more adaptable in the service of these customers are gaining hotels partner. 2014 seems to be the year of the struggles of the on-line tourist office faith-programme. If the Expedia fidelity programme does not have it, what does it mean for my trip reservation, if any?
We' ve been in the fidelity business for a long while. Specifically, I think that the Hotels.com Welcome Awards programme is the grandfather of the OTA programmes. There is a very appealing behaviour of our Welcome Reward members with regard to the repetition rate and the way they are repeated.
They are completely on hotels.com as services to them. If we look at the Orbitz programme, I would not so much call it a fidelity programme, because a fidelity programme will reward you for your fidelity. Orbitz is more of a cross-sell programme, I think.
It does not necessarily award loyality, it does award cross-selling. At Expedia, what we see is that we are able to successfully promote cross-selling through innovative products. Expedia is more about allegiance than that. While we don't believe there is a recipe for allegiance, we are very pleased with our various programmes and are continuing to make very aggressive investments in them.
So what do you see in relation to Expedia, Hotels.com, Trivago, you call it, television commercials? At Hotels.com, for example, we see that the Captainbvious ad has been a true hit, enhancing hotels. com live transport, but also traffics, click-through ratios and cross-channel convertio.