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        Online Marketing and
             Distribution


World Travel Market November 2007

Francesca Ecsery
UK General Manager -Cheapflights
The internet….




      “Are we
     there yet?”
             www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
First and foremost
                                                                                                   9hrs 56
                                                                                                    mins
   More and more people are                              10
                                                                       8hrs 40
    using the internet every year                                       mins



                                                        7.5
   People have been spending
    an extra 1 hour 16 minutes




                                                       Hours
    each month on the internet
                                                               5
    since 2001 in the UK

   16-24 year olds spend 11                            2.5
    hours 20 minutes per month
    on the internet in the UK
    (average: 9 hours 56 minutes)                              0
                                                                        2001                       2006
                                                                                                   2005
                                                                                            Year

                                                                           Source: Ofcom research, April 2007




                      www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Changing media consumption

                 Question: Compared with a year ago, how much time do you think you spend today using…?


       71

                                                               61
                                                                    57
                                                                         54        54
                                                                              52

                                                        45
                                                                                                      41
                                                                                                                      39    38
  %                                                                                                              36               35
time
                                                   27
                  25


            14                                                                                              14
                                10   11
                       7    7
                                                                                                  2


                   More tim e                            About the sam e tim e                               Less tim e


            Internet       Cinema          Radio          TV         Local Press           Magazines             National Press

                                                                                        Source: IAB/RAB Media Conjunction Study 2006

                                     www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Traditional media in decline


         Travel companies are increasing their
          online marketing budgets

         Research suggests:
            Overall, TV viewing has deteriorated the
             most as a result of more people being
             online
            More young people are turning away
             from newspapers and magazines



                www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
UK advertising growth rates 2006

    70
          % growth                                                                     66

    60


    50


    40



    30
%
    20


    10
                               5.8
                 3.6
                                                                           1
     0


                                               -5.1         -4.8                                     -3.9         -4.4
    -10

                     TV                                  Outdoor                            Classified press ads
                     Radio                               Magazines                          Internet
                     Direct Mail                         Local Press
                                                                                    Source: WARC & Advertising Association / IAB 2006

                                   www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
The result




                                 www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca

WTM ExCeL London November 2006
Driving business to your website

   Offline
      Ambient marketing
      Mass market TV, Radio, Outdoor , Press
      Sales promotion
      PR

   Offline
      Radio / specialised TV
      Direct mail
      Classified Press

   Online
      Graphical Display from any site
      Email marketing
      Affiliate marketing /syndication
      Social Media
      Natural Search on Google / Yahoo/ Msn
      Pay per click advertising on specialist websites




                        www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Search Specialization in Key Categories


 Jobs
 Books
 Dating
 Movies
 For Sale
 Travel




             www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Travel advertising options



             Search                 Live-Search                     Deals Publishers                   Travel Guides
                                   “Meta-Search”                    “Mega-Search?”                     “Community”




               PPC               PPC, CPA & CPM                         PPC & CPM                      PPC & CPM




                                     All offer an advertising platform

                                 www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca

WTM ExCeL London November 2006
Advertising options – search




                                 www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca

WTM ExCeL London November 2006
Advertising options – meta-search




                                 www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca

WTM ExCeL London November 2006
Advertising Options – travel guides




                                 www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca

WTM ExCeL London November 2006
Advertising options – deals publishers




                                 www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca

WTM ExCeL London November 2006
UK Online Advertising spend

 Number of Travel sites in the UK :
  2,466 travel websites
         Source   : Hitwise October 2007




 CFUK Share       of UK Online Travel Ad Spend
  7.26%
        Source:   IAB October 2007




              www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Who is Cheapflights?

We are the media company which, in 1996, pioneered online flight price
comparison
                                        Unique Users January 1999-2007
          6,000,000


          5,000,000


          4,000,000


          3,000,000


          2,000,000


          1,000,000


                 0
                      1999            2001              2003              2005                 2007 *
                                                                                     *   (excludes CA, CHD, CSB)



                       www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Cheapflights.co.uk Overview

                                              UK’s largest travel price comparison site

                                              Largest lead driver to the UK travel

                                               industry after Google

                                              Over 3.25 million Unique Users

                                               (abcE audited)

                                              1.1 million opt-in email

                                              Travel sector dedicated; it’s all we do

                                              40+ years travel expertise in team


                                                                                 * Hitwise market data

           www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Top 10 UK Travel Site (Hitwise)




              www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Top traffic driver for Travel Agencies




              www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Tope traffic driver for Airlines




               www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Long tail of advertisers

       Traditional Media                                               Cheapflights




                www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Long tail of advertisers

       Traditional Media                                               Cheapflights




                www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
What we can deliver for our airline
partners . .




   8% of XL Airway’s traffic
                                                                4% of KLM’s traffic




   3% of flybmi’s traffic                                                3% of BA’s traffic
                   www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
What we can deliver for our travel
agent partners . .




6.6% of Flight Centre’s traffic                               15% of Opodo’s traffic




 7.5% of Airline Network                                     4% of STA Travel traffic



                    www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Current Product Range

 1.   Deals Offer Pages,
               Premium –
               Standard positions




                 www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Current Products Range

 1.   Deals Offer Pages,
               Premium –
               Standard positions
 2.   Booking engine
               Search by date
               Deep-links directly into airline online booking systems
               High volumes of traffic




                  www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Current Products Range




 3.   Targeted Graphical advertising
               Extremely targeted branding placements
               Industry beating response rates & conversions to sale
               Banners, Skyscrapers and badges
               CPM & CPA (for key clients)




                 www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Current Products Range

 1.   Deals Offer Pages,
               Premium –
               Standard positions
 2.   Booking engine
               Search by date
               Deep-links directly into airline online booking systems
               High volumes of traffic
 3.   Targeted Graphical advertising
               Extremely targeted branding placements
               Industry beating response rates & conversions to sale
               Banners, Skyscrapers and badges
               CPM & CPA (for key clients)
 4.   Hand Picked Deals
               Promote your best offers on our “top deals” page




                  www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Current Products Range

 1.   Deals Offer Pages,
               Premium –
               Standard positions
 2.   Booking engine
               Search by date
               Deep-links directly into airline online booking systems
               High volumes of traffic
 3.   Targeted Graphical advertising
               Extremely targeted branding placements
               Industry beating response rates & conversions to sale
               Banners, Skyscrapers and badges
               CPM & CPA (for key clients)
 4.   Hand Picked Deals
               Promote your best offers on our “top deals” page
 5.   Newsletter
               100% fully opted-in list of over 1.1 million users
               Average open rates of 28%, compared to industry average of 15%
               Average click rate of 7%, compared to industry average of 1%
               Dedicated travel audience who have actively chosen to be approached
                about travel-related deals and information
                   www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Newsletter Incremental sales




             www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Current Products - recap

 1.   Deals Offer Pages,
               Premium –
               Standard positions
 2.   Booking engine
               Search by date
               Deep-links directly into airline online booking systems
               High volumes of traffic
 3.   Targeted Graphical advertising
               Extremely targeted branding placements
               Industry beating response rates & conversions to sale
               Banners, Skyscrapers and badges
               CPM & CPA (for key clients)
 4.   Hand Picked Deals
               Promote your best offers on our “top deals” page
 5.   Newsletter
               100% fully opted-in list of over 1.1 million users
               Average open rates of 28%, compared to industry average of 15%
               Average click rate of 7%, compared to industry average of 1%
               Dedicated travel audience who have actively chosen to be approached
                about travel-related deals and information
                   www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Why is it better to do it with CF

   We are the first price comparison website
   Have proven ROI to our advertisers
   Increase brand awareness as opposed to general search
   Expertise gathered over 11 years of leadership positions
   Here to stay as have been profitable since day one
   After Google, we are driving the most lead to the travel industry in
    the UK - above Yahoo, travelsupermarket and tripadvisor (Hitwise
    data 08/09/2007)
   CF will drive traffic to your lowest cost channel
       No commissions
       No GDS fees
       Highly self sufficient portal
   Airlines & travel agents still own the consumer
   Global ambitions ( UK, USA, Canada, GE, ….)


                  www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
Contact us


Francesca Ecsery : UK General Manager
      Francesca.Ecsery@Cheapflights.com

     Or

one of our sales team:
      Sales@cheapflights.com




              www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca

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Online marketing and distribution

  • 1. Sieu thi dien may Viet Long - www.vietlongplaza.com.vn Online Marketing and Distribution World Travel Market November 2007 Francesca Ecsery UK General Manager -Cheapflights
  • 2. The internet…. “Are we there yet?” www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 3. First and foremost 9hrs 56 mins  More and more people are 10 8hrs 40 using the internet every year mins 7.5  People have been spending an extra 1 hour 16 minutes Hours each month on the internet 5 since 2001 in the UK  16-24 year olds spend 11 2.5 hours 20 minutes per month on the internet in the UK (average: 9 hours 56 minutes) 0 2001 2006 2005 Year Source: Ofcom research, April 2007 www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 4. Changing media consumption Question: Compared with a year ago, how much time do you think you spend today using…? 71 61 57 54 54 52 45 41 39 38 % 36 35 time 27 25 14 14 10 11 7 7 2 More tim e About the sam e tim e Less tim e Internet Cinema Radio TV Local Press Magazines National Press Source: IAB/RAB Media Conjunction Study 2006 www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 5. Traditional media in decline  Travel companies are increasing their online marketing budgets  Research suggests:  Overall, TV viewing has deteriorated the most as a result of more people being online  More young people are turning away from newspapers and magazines www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 6. UK advertising growth rates 2006 70 % growth 66 60 50 40 30 % 20 10 5.8 3.6 1 0 -5.1 -4.8 -3.9 -4.4 -10 TV Outdoor Classified press ads Radio Magazines Internet Direct Mail Local Press Source: WARC & Advertising Association / IAB 2006 www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 7. The result www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca WTM ExCeL London November 2006
  • 8. Driving business to your website  Offline  Ambient marketing  Mass market TV, Radio, Outdoor , Press  Sales promotion  PR  Offline  Radio / specialised TV  Direct mail  Classified Press  Online  Graphical Display from any site  Email marketing  Affiliate marketing /syndication  Social Media  Natural Search on Google / Yahoo/ Msn  Pay per click advertising on specialist websites www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 9. Search Specialization in Key Categories Jobs Books Dating Movies For Sale Travel www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 10. Travel advertising options Search Live-Search Deals Publishers Travel Guides “Meta-Search” “Mega-Search?” “Community” PPC PPC, CPA & CPM PPC & CPM PPC & CPM All offer an advertising platform www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca WTM ExCeL London November 2006
  • 11. Advertising options – search www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca WTM ExCeL London November 2006
  • 12. Advertising options – meta-search www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca WTM ExCeL London November 2006
  • 13. Advertising Options – travel guides www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca WTM ExCeL London November 2006
  • 14. Advertising options – deals publishers www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca WTM ExCeL London November 2006
  • 15. UK Online Advertising spend  Number of Travel sites in the UK : 2,466 travel websites  Source : Hitwise October 2007  CFUK Share of UK Online Travel Ad Spend 7.26%  Source: IAB October 2007 www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 16. Who is Cheapflights? We are the media company which, in 1996, pioneered online flight price comparison Unique Users January 1999-2007 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 1999 2001 2003 2005 2007 * * (excludes CA, CHD, CSB) www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 17. Cheapflights.co.uk Overview  UK’s largest travel price comparison site  Largest lead driver to the UK travel industry after Google  Over 3.25 million Unique Users (abcE audited)  1.1 million opt-in email  Travel sector dedicated; it’s all we do  40+ years travel expertise in team * Hitwise market data www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 18. Top 10 UK Travel Site (Hitwise) www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 19. Top traffic driver for Travel Agencies www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 20. Tope traffic driver for Airlines www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 21. Long tail of advertisers Traditional Media Cheapflights www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 22. Long tail of advertisers Traditional Media Cheapflights www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 23. What we can deliver for our airline partners . . 8% of XL Airway’s traffic 4% of KLM’s traffic 3% of flybmi’s traffic 3% of BA’s traffic www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 24. What we can deliver for our travel agent partners . . 6.6% of Flight Centre’s traffic 15% of Opodo’s traffic 7.5% of Airline Network 4% of STA Travel traffic www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 25. Current Product Range 1. Deals Offer Pages,  Premium –  Standard positions www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 26. Current Products Range 1. Deals Offer Pages,  Premium –  Standard positions 2. Booking engine  Search by date  Deep-links directly into airline online booking systems  High volumes of traffic www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 27. Current Products Range 3. Targeted Graphical advertising  Extremely targeted branding placements  Industry beating response rates & conversions to sale  Banners, Skyscrapers and badges  CPM & CPA (for key clients) www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 28. Current Products Range 1. Deals Offer Pages,  Premium –  Standard positions 2. Booking engine  Search by date  Deep-links directly into airline online booking systems  High volumes of traffic 3. Targeted Graphical advertising  Extremely targeted branding placements  Industry beating response rates & conversions to sale  Banners, Skyscrapers and badges  CPM & CPA (for key clients) 4. Hand Picked Deals  Promote your best offers on our “top deals” page www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 29. Current Products Range 1. Deals Offer Pages,  Premium –  Standard positions 2. Booking engine  Search by date  Deep-links directly into airline online booking systems  High volumes of traffic 3. Targeted Graphical advertising  Extremely targeted branding placements  Industry beating response rates & conversions to sale  Banners, Skyscrapers and badges  CPM & CPA (for key clients) 4. Hand Picked Deals  Promote your best offers on our “top deals” page 5. Newsletter  100% fully opted-in list of over 1.1 million users  Average open rates of 28%, compared to industry average of 15%  Average click rate of 7%, compared to industry average of 1%  Dedicated travel audience who have actively chosen to be approached about travel-related deals and information www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 30. Newsletter Incremental sales www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 31. Current Products - recap 1. Deals Offer Pages,  Premium –  Standard positions 2. Booking engine  Search by date  Deep-links directly into airline online booking systems  High volumes of traffic 3. Targeted Graphical advertising  Extremely targeted branding placements  Industry beating response rates & conversions to sale  Banners, Skyscrapers and badges  CPM & CPA (for key clients) 4. Hand Picked Deals  Promote your best offers on our “top deals” page 5. Newsletter  100% fully opted-in list of over 1.1 million users  Average open rates of 28%, compared to industry average of 15%  Average click rate of 7%, compared to industry average of 1%  Dedicated travel audience who have actively chosen to be approached about travel-related deals and information www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 32. Why is it better to do it with CF  We are the first price comparison website  Have proven ROI to our advertisers  Increase brand awareness as opposed to general search  Expertise gathered over 11 years of leadership positions  Here to stay as have been profitable since day one  After Google, we are driving the most lead to the travel industry in the UK - above Yahoo, travelsupermarket and tripadvisor (Hitwise data 08/09/2007)  CF will drive traffic to your lowest cost channel  No commissions  No GDS fees  Highly self sufficient portal  Airlines & travel agents still own the consumer  Global ambitions ( UK, USA, Canada, GE, ….) www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca
  • 33. Contact us Francesca Ecsery : UK General Manager Francesca.Ecsery@Cheapflights.com Or one of our sales team: Sales@cheapflights.com www.cheapflights.co.uk l www.cheapflights.com l www.cheapflights.ca