1. eCommerce in Travel
Introduction
2016Hossam Shaker

2. Detentions
 What is the “web” ?
 What is the eBusiness ?
 What is the meaning of eCommerce ?
 Why eCommerce is so important ?
 What are the types of ecommerce ?
 How it works ?
 How we benefit from this so called “electronic revolution”

3. What is the web?
 World Wide Web (“hyper text transfer protocol “ Markup Language running on the
internet)
 1971 – 2005 “web 1.0” HTML pages (traditional media, 1 to many
communication and catalog )
 1998 creation of Google (and the entrance of WWW)
 2006 “web 2.0” Social "you are the web” interaction many 2 many,
Feb 2005 YouTube, Mar 2006 Twitter, Sep 2006 FaceBook
 2016 - ….. “web 3.0” big data

4. What is the eBusiness ?
 Is doing business using electronic transactions and
interactions, which includes all sectors of the business related
to costumer, as well as internal process such as production,
inventory, risk management, product development, finance,
knowledge management and human resources

5. What is the meaning of eCommerce ?
 Ecommerce is a part of the ebusiness which covers the facing
processes that touch customers, suppliers and external
partners, which includes sales, marketing, order taking,
delivery, customer service, etc...

6. Why eCommerce is so important ?
 More than 90% of Europeans use Google
 74% of internet users googlize a brand or company before
buying
 91% of people keep their mobiles about arm reach 24/7.
 SM channels influence

7. Why eCommerce is so important ?

8. Why eCommerce is so important ?

9. Why eCommerce is so important ?

10. Why eCommerce is so important ?
 Online travel market in the Middle East is catching up
Supported by the introduction of online payment options, the
online travel market in the Middle East is expected to grow
considerably compared to 2016.
 Tour operators shift focus to E-Commerce
No need to mention that multinational big players are rapidly
shifting to ecommerce i.e. TUI, Thomas Cook, Travelocity,
Kayak, Odigeo, BookinTurkey, Ctrip, Yatra and Webjet.

11. What are the types of ecommerce ?
 Companies using internal networks to offer their employees products and services online--not necessarily
online on the Web--are engaging in B2E (Business-to-Employee) ecommerce.
 G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G
(Business-to-Government), G2C (Government-to-Citizen), C2G (Citizen-to-Government) are other forms of
ecommerce that involve transactions with the government--from procurement to filing taxes to business
registrations to renewing licenses.

12. Business 2 Business (B2B)
 Business to Business is the most preferred type throughout
the market. It has covered 80% of eCommerce business. It can
be simply defined as eCommerce between companies or
wholesalers. i.e. Hotelbeds.com, Sabre.com GTA and DOTW

13. Business 2 Business (B2B)

14. Business-to-Consumer (B2C)
 Business to consumer, It can be defined as commerce
between companies and consumers, involves customers
gathering information; purchasing products or services over
an electronic network, i.e booking.com, experdia.com

15. Business 2 Consumer (B2C)

16. Consumer 2 Business(C2B)
 A consumer posts his product or service online and
companies review the consumer's goods or services and take
the decision to buy it . i.e. Freelancer.com,
peopleperhours.com

17. Consumer 2 Business(C2B)

18. Consumer 2 Consumer (C2C)
 There are sites offering free classifieds, auctions, and forums
where individuals can buy and sell between each others. i.e.
OLX.com, ebay.com etc...

19. Consumer 2 Consumer (C2C)

20. How it works?

21. How it works?

22. How it works?

23. How it works?

24. How it works?

25. What happen after we proceed to payment?

26. How we establish eCommerce ?

27. What are the advantage and disadvantage ?
 Adv: No effort needed. Client does not need to move or to
make any effort more than clicks to get his product or service.
 Disadv: The Online payment. security of online payment is
the biggest monster of ecommerce, huge number of clients
do not trust online payment, so they do not make any
ecommerce transactions, however these numbers are daily
decreased thanks to the trust building by developers, banks
and third part applications

28. What are the advantage and disadvantage ?
 Adv: You will reach much bigger clients. With a retail website,
you can reach customers down the street, around the country,
and overseas.
 Disadv: So is your competition. Again, when you are trying to
reach more clients in any area of the globe you also
competing with the existing providers of these areas, so as
much as you increase your clients you increase your
competitors, which have a lot more money to spend — and
can more easily absorb losses on certain items in order to gain
customers.

29. What are the advantage and disadvantage ?
 Adv: You’re always open for business. Your virtual shop
online is open 24/7 and ready for the client order at anytime,
even if he is not booking or buying, but he can access your
details of brochures, programs, services.
 Disadv : You’re always open for business. People can already
shop around the clock, and mobile devices allow them to do
so almost anywhere. As a result, a lot of online consumers
instant service — or at least quicker deliveries. You need to
consistently fulfill orders and/or answer inquiries on a timely
basis, or you’ll risk losing customers, especially if you’re
competing with brand-name retailers.

30. What are the advantage and disadvantage ?
 Adv: You will gather many useful data. The era of Big Data ,
this will allow you to customise your services and products to
suit your client requirement based on the data you gather
about them, such as likes, dislikes, shopping habits, and so
much more.
 Disadv : you will have to classify these many data you
gathered. Fortunately, there are many companies, software
and third party applications that can help small businesses
test, gather, and analyze data on their customers’ behaviours.

31. What are the advantage and disadvantage ?
 Adv: E-commerce is the present and future. Ecommerce can
boost and help any type of business even if its related to
online or not and will assist to compete with competitors even
bigger size than you
 Disadv : Your business status may not need ecommerce
boost. This may very well be true. If you own and operate one
small hotel and its almost full the whole year, you may not
need the boost of ecommerce platform

32. The conclusion
 “ Websites are not just online existence, neither information portal, nor
just good image, BUT its commercial existence which could be brilliant
investment ”
 “The idea of approaching one big tour operator with lots of charter flights
and huge allocations has been exchanged into, hundreds of small travel
agents, OTAs would make much more TTV than one big TO”
 “to be competitive online, regardless the company’s image, size and
connections you need to focus more in CLIENT then comes the RATES,
AVAILABILITY & YIELD MANAGEMENT

33. Where “we” start ?
 From previous view we simply understood the ecommerce is
using the internet to distribute your product such as ( Goods,
services, Ideas ...etc). you either distribute to end costumer
who is buying directly from you, or to retailers, brokers,
wholesaler, bed banks, online tour operators and travel agent
 Question! Can any DMC setup ecommerce?
 Yes, any DMC or even individuals can setup ecommerce, BUT
in terms of results and ROI case is different, 100s examples
had rapidly failed without covering the setup cost.

34. eCommerce operation & back office
 The main concept is “MASS production”, not just limited to
one agent or tour operator who has 1000... Of clients and
charter flights, BUT collecting more than 1000... Clients from
10000... Of OTAs and small travel agents.
 Invest in software solutions and build different interfaces and
platforms enabled to integrate with different APIs distributors
and channel managers through XML and the different
formats.

35. eCommerce operation & back office
 Use your existing database to customise your services
 Arrange workshop and conventions with main vendors and
suppliers i.e. Hoteliers and transportation companies explain
ecommerce and how they would benefit from it
 Build a strong operation and contracting team to buy all
services related to your business
 Build a strong Yield team to be in contact with suppliers
around the hour requesting, gimmicks, SPOs, reduce release
and increase availability

36. eCommerce operation & back office
 Yield plays extremely important role in E-commerce!
 As we know in good old days one used to go to travel
agent office and set in front of sales agent who start to
show him photos, brochures and so on.
 Now all what you need to go from travel agent to
another is just click, so unless you are special,
competitive, available, informative and look good you
will not be able to keep the “clicking client” for long in
your website

37. eCommerce operation & back office
 Build yield team, assigned tasks as following
 Streamline daily contact with hotels.
 Changing the concept of yield to be for the best and interest
of hotels, sometimes the hotels need to sale some rooms at
any rate to avoid overnight empty, our role is to get these
rooms sold in the spot by uploading it immediately.
 The time and availability factor is extremely important, we
all know all bedbank will have same SPO BUT who will
upload it before others!!!
 keep close eye in all our competitors website to make sure
that we more advanced, reachable, bookable, competitive
and widely spreaded

38. TUI

39. Thomas Cook

40. Travelocity

41. Kayak

42. Travco

43. Bookinturkey

44. AgazatClub

45. Hotelhunter

46. Rentalcars.com

47. GetYourGuide

48. Lufthansa City Center

50. •Thank you,