Evolution’s Arrow Sebastian Egedius Head of Online Moscow, Nov 20, 2012 © 2012 Amadeus IT Group SA Online-Agencies in Northern Europe 2 © 2012 Amadeus IT Group SA WEB 2.0: Static Dynamic Lack of trust Trust Top-down, publishing Bottom-up, participation Dial-up Long-tail Software (NS) Service (google, fb) ”Screenful of text and graphics” Netscape SSL 1994 1995 amazon ”Integration platform” 2003 amazon’s first profit 1996 ebay #1 Build brand #2 Automate #3 Build volume #4 Add products #5 Differentiate #6 Be fast 2007 iPhone 2001 bubble burst 2004 facebook 2009 foursquare 2008 airnbnb Business characteristics, OTAs Business characteristics, OTAs Wow, it works! Wow, it’s cheaper! Tons of risk capital Drive onliners to site Drive offliners online, portals Price competition: META New ventures, Pure Click Low margins Logistics hell Consolidation Many failed ”Normal” companies, Click and Brick 2011 2010 iPad google ITA 2012 Gen engine – Air focus – Multi GDS – Air+hotel – Own engine – Automation – Mono GDS – Differentiation 3 © 2012 Amadeus IT Group SA WEB 1.0: 4 © 2012 Amadeus IT Group SA hing WEB 2.0: WEB 3.0: Dynamic Semantic, voice controled Trust Personalized Bottom-up, participation Integrated, social Long-tail Glocal Service (google, fb) IATA NDC AI, machines create info ”Integration platform” and graphics” ”Integrated, augmented reality” 2007 iPhone 2001 bubble burst teristics, OTAs 2004 facebook 2009 foursquare 2008 airnbnb Business characteristics, OTAs Wow, it’s cheaper! online Drive onliners to site pital Price competition: META Pure Click Consolidation ”Normal” companies, Click and Brick Low margins 2011 2010 iPad google ITA 2012 Business characteristics, OTAs ??? ono GDS – Gen Engine – Multi GDS – Air+hotel – Mono GDS – Differentiation – Own Engine © 2012 Amadeus IT Group SA 2003 amazon’s first profit 1996 ebay 6 © 2012 Amadeus IT Group SA 7 © 2012 Amadeus IT Group SA ”Bubble 2.0” ”An endless digital forest of mediocrity” ”Digital narcisism and amateurism” ”Return of the experts” 8 © 2012 Amadeus IT Group SA ”Good service suddenly feels modern” © 2012 Amadeus IT Group SA Vastness Vagueness Uncertainty Inconsistency Deceit 9 10 © 2012 Amadeus IT Group SA 11 © 2012 Amadeus IT Group SA Have a great site, work with brand and do not rely only on google and meta. Good luck with that one Great tech helps to keep costs down It’s true after all: size matters. Build volume, or go niche. Do more than air, build margin Be fast Know your stuff: have great management and staff 12 © 2012 Amadeus IT Group SA Have as few GDSs and other content sources as possible Customer engagement 13 © 2012 Amadeus IT Group SA Strategy Brand Tech Ops 14 © 2012 Amadeus IT Group SA sebastian.egedius@sca.amadeus.com © 2012 Amadeus IT Group SA Thank you!