E-Marketing Plan
By: Beth Malmborg
Outline
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Industry Overview
Company Overview/History
SWOT Analysis
Market Opportunity Analysis
– Demand
– Segment
– Supply
• Objectives
• Strategy
• Evaluation Plan
Industry Overview
• People are now able to book their own flights
and vacations while being able to jump from
website to website in order to find the best deal.
Among the most popular online travel agencies
are Travelocity, Orbitz, Expedia, and Priceline.
• What makes this industry so strong is the
growing amount of people as well as companies,
using the internet. The internet is a great deal
faster than finding a traditional travel agency.
Industry (cont.)
Company Overview
•Travelocity is a leading provider of
travel services. They market and
distribute travel related options
through their website and websites
owned by their suppliers and
distribution partners. Online,
customers can access offers, and
pricing information about airlines,
hotels, car rental companies, cruise
lines, vacation and last-minute travel
packages, and other travel-related
information. For business travelers,
there is Travelocity Business.
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Since their launch in 1996,
Travelocity has won many award
in both the travel and internet
categories of their business.
Among these awards are the
Stevie Award for Best New
Product of Service. The award
was in recognition to Travelocity’s
TotalPriceSM, which offers
comprehensive pricing information
for rental car reservations with just
one mouse click.
Travelocity was also named the
“World’s Leading Travel Internet
Site” for the eighth consecutive
year in a row in 2004.
www.travelocity.com
Company History
• Travelocity received the highest overall ranking in the
Online Customer Respect Study, conducted by the
Customer Respect Group, in 2003. Travelocity received
a rating of 9.2 out of 10 – the highest overall among all
travel sites.
• Travelocity was named winner in the Transportation
category at the Computerworld Honors 21st Century
Achievement Awards in 2002. This award recognized
Travelocity as an innovative company leading the global
information technology revolution.
• Travelocity won the Best Online Distributor award at the
2002 Air Transport
www.travelocity.com
SWOT Analysis
Opportunities:
Strengths:
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Award winning in online
services
Easy to use web site
Increasing revenues
Recent acquisition of
lastminute.com (Europe)
Weaknesses:
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Increasing travel demand
Repeat customers
Business Travelers
Threats:
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Many online competitors
New innovations of competitors
Seasonal Traveling
Increasing customer acquisition
costs
www.travelocity.com
MOA: Demand
• Demand for Business Travel is growing, and
revenues are increased since the launch of the
Travelocity Business segment. This allows
business to book trips quickly and receive deals
on them.
• The Travelocity TotalTrip segment and Last
Minute Packages has increased its packages
revenues $48million since its launch in 2003.
www.travelocity.com
MOA: Segment
• Both the Business and Packages
segments target consumers who want
quick, easy, cheap transactions and don’t
want or have the time to spend on travel
agents. These groups of consumers need
online programs to do their business.
www.travelocity.com
MOA: Supply
“The Travelocity Guarantee assures that when you book with
Travelocity and encounter any problem with your booking, we'll
work with our partners to make it right.”
Travelocity offers the best guarantee for travel than any
other online travel agency. They concentrate their
advertising on this guarantee and it assures people of a
worry free vacation. At least when it comes to the
Travelocity end of the bargain. The thought of not
having to worry about something going wrong with hotel
reservations is enough to make many customers go
through Travelocity.
www.travelocity.com
Objectives
• Increase International transactions by 5%
from the 2004 ytd totals.
• Increase revenues 10% from 2004.
• Reduce acquisition costs from $14million
to $ 10million.
www.travelocity.com
Strategy
• In order to increase the international transactions,
Travelocity acquired lastminute.com, this made them the
leading online travel agency in Europe. They need to
concentrate more advertising in that area and make
consumers aware of this acquisition.
• To increase revenues, Travelocity needs to spend time
trying to cut costs, this way they can stay competitive
with their prices.
• The main cost to be cut would be in the selling, general
and administrative area. The largest cost being the
customer acquisition. There has been an increase in
advertising in order to acquire new customers. With the
advertising being based on their guarantee, this could
help retain customers and decrease the need for so
much advertising, therefore decreasing the cost.
www.travelocity.com
Financials
Year Ending December 31,
2004
2003
2002
Revenues
$502,549 $394,508
$338,772
Cost of Revenue
224,386
203,392
187,612
Gross Profit
278,163
191,116
151,160
Selling, general, and
administrative
273,189
249,893
221,477
Operating Income (loss)
(20,498)
(100,331)
(105,359)
www.travelocity.com
Implementation Plan
• Increasing international business with
lastminute.com
• Increasing business travel with Travelocity
Business.
• Increase customer retention with
Travelocity Guarantee
• Increase online transactions with easier
website
www.travelocity.com
Evaluation Plan
• Travelocity should evaluate their progress
through their finances. Right now they
have a negative operating income and if
they can get a positive operating income,
then they should look into what they have
done to change that.
www.travelocity.com