Thursday, December 18, 2008

Kayak boss Steve Hafner does not SideStep the issue - Travel Trends - Incorporating the TRAVELtech and No Vacancy Travel Industry Conferences

TTN447 - Kayak boss Steve Hafner does not SideStep the issue - Travel Trends - Incorporating the TRAVELtech and No Vacancy Travel Industry Conferences: "Kayak boss Steve Hafner doesn’t mince words. When asked what economies of scale were generated by Kayak’s acquisition of SideStep, another travel search engine, Hafner replied: “There were 120 employees when we bought them … three of those remain”. No excuses, no remorse.
Inevitably concise, entertaining and to the point, Hafner is a co-founder of Kayak, regarded as the benchmark travel search engine, which he describes as a four page website “at its core”.

The company employs just 75 people and is an operation that’s “really focussed on Search Engine Optimisation … we try to get 1% better each week”.

“Now the challenge is to take our success in the US and translate it worldwide.” Kayak’s already in 12 European countries. “The challenge with international expansion isn’t product, it’s actually (getting) the audience.”Kayak boss Steve Hafner doesn’t mince words. When asked what economies of scale were generated by Kayak’s acquisition of SideStep, another travel search engine, Hafner replied: “There were 120 employees when we bought them … three of those remain”. No excuses, no remorse.

Inevitably concise, entertaining and to the point, Hafner is a co-founder of Kayak, regarded as the benchmark travel search engine, which he describes as a four page website “at its core”.

The company employs just 75 people and is an operation that’s “really focussed on Search Engine Optimisation … we try to get 1% better each week”...

Expansion aside, Hafner says Kayak is most focussed on search speed and relevance.

“We have four pages and the three pages we care most about are the result pages. We want to improve the speed, order and relevance. It takes a tremendous amount of engineering work to do that… We do have an algorithm and tweak it all the time.”

Two final comments:

“We don’t want to solve problems at Kayak that affect 1% of consumers; we want to solve problems affecting 99% of consumers.”

And:

“It still boggles my mind how these big Online Travel Agencies have such cluttered and ugly websites.”


�"

Wednesday, December 10, 2008

Travel Report: Despite Economy, Online Travel Continues to Grow

Positive thinking . . .
Travel Report: Despite Economy, Online Travel Continues to Grow: "Despite the recent economic news, people aren't ready to give up their vacation. New reports from PhoCusWright (www.phocuswright.com), a respected industry research firm, say more people booked online travel during 2008 than years before.

PhoCusWright Vice President of Research Lorraine Sileo says, “online [ticket] sales will continue to outpace total market growth as travelers increasingly shop and book online, seeking better bargains.”

PhoCusWright’s U.S. Online Travel Overview Eighth Edition says that leisure and unmanaged business travel bookings will hit nearly $100 billion in 2008. That’s “more than one-third of the total travel market, and a 9% increase over 2007.”
One travel niche that experiencing a bit of a resurgence is “dynamic packaging,” where what PhoCusWright calls “bargain-hungry consumers…book together and save.”

If you’re thinking about traveling: book online. The research firm indicates others are keyed into the proposition. “The U.S. online travel market is projected to grow far faster than the total travel market through 2010,” concludes PhoCusWright."

Sunday, December 07, 2008

e-Travel Blackboard: Falling Aussie Dollar Forces 70% of Travellers To Reconsider their Overseas Plans

e-Travel Blackboard: Falling Aussie Dollar Forces 70% of Travellers To Reconsider their Overseas Plans

Totaltravel.com recently conducted a survey which asked the question: “Given the falling Aussie Dollar, are you planning any overseas holidays?”

The survey, which attracted 980 respondents, found that the falling Aussie dollar has forced more than 70 percent of Australian travellers to reconsider any overseas plans.

Forty per cent of voters (364 people) said that would be holidaying closer to home this year to save money during the economic slowdown. Another 31 per cent (279 people) of respondents said holidays were totally out of the question.

Only 29 per cent of voters (265 people) stated that they were still going overseas for a holiday, no matter what the cost.

totaltravel.com global Marketing Manager Paul Fisher said the global financial crisis might have a positive impact on the Australian tourism industry.

“The fall in value of the Aussie dollar has seen overseas holidays become frighteningly expensive, with the Euro now worth twice our currency, and the US dollar not much further away,” Mr Fisher said.

“We will see more and more people spending their hard-earned cash on shorter holidays geographically closer to home.

“The growing demand for home-grown holidays, as well as the buzz surrounding the new Baz Lurhmann movie Australia, will deliver a much-needed boost for domestic tourism operators.

“There are plenty of bargain hunters out there and operators will need to ensure they put together attractive offers to make the most of this environment.”

Mr Fisher said there would also be an increase in the number of people navigating the internet for bargain holiday deals.

Online travel growth dips to single digits-05 December, 2008

Online travel growth dips to single digits-05 December, 2008: "Online travel growth dips to single digits

Growth of online leisure and unmanaged business travel dipped into single digits this year, according to market tracker Phocuswright. The company says this is the first time since it began recording online travel sales in 1998 that this has happened.

However, online travel annual growth still outpaces the total travel market for 2008 and this is set to continue until at least 2010.

The company’s latest Online Travel Overview says online leisure and unmanaged business travel will grow by 9% in 2008 compared to 2007, reaching $100 billion, more than a third of the travel market.

It added that growth would continue at 7% annually through to 2010, despite the global recession and the accompanying softening in consumer demand.

The report also shows that OTAs are receiving a “counter cyclical lift” as consumers are driven back to the web in search of a bargain.

Phocuswright says supplier websites and OTAs are expected to hold a share equilibrium until 2010 at 61% and 39% respectively.

by Dinah Hatch"

Friday, October 24, 2008

Is the Travel Industry Headed Toward Another Wallop? | PhoCusWright FYI

Hospitality Net - Industry News - Is the Travel Industry Headed Toward Another Wallop? | PhoCusWright FYI: "With the global credit markets in crisis, stock markets fluctuating, fuel prices erratic and a recession looming, the travel industry is gloomy. Companies quickly shifted into belt-tightening gear and if they're not feeling the pinch now—they're at least preparing for a long, cold winter ahead...

"Will the 2008 economic meltdown be as bad for our industry as September 11, 2001?"

The answers to this question, of course, vary. Certainly, there are key differences between the two events. The terror attacks were a direct assault on the U.S. and aviation industry. The economy was already suffering from the tech stock bubble burst of 2000. Then the September 11, 2001 events virtually froze the travel industry for weeks—if not months—before the eventual thaw. Yet while cutbacks prevailed and some travel companies fell, online travel companies reported surprisingly bright results. . .

Perhaps the brightest hope for online marketers is that travelers, like in 2002, will flock online in search of lower prices, keeping OTAs, metasearch sites, and even online direct channels humming. After all, as one attendee noted, "the white table cloth dining industry has fallen off a cliff along with the $20 bottle of wine. On the flip side, cheap supermarket wine is experiencing a boom." So maybe it will once again be chic for online travel to be cheap.

Whatever happens, one remembers Barry Diller's infamous words at The PhoCusWright Executive Conference in 2002, when asked why IAC paid over US$1 billion for a majority stake in Expedia just months after September 11, 2001. "You know, if there's no travel, there's no life," he emphatically declared.

Let's hope that's what travelers say in 2009."

Totaltravel survived 2001 so lets hope it grows stronger again this time round.