Content delivery Look what technology can bring


G


rowth in online travel is slowing in Europe, posing a challenge for major online travel agents (OTAs). But Francesca Benati, Amadeus


executive vice-president online EMEA and managing director Italy, believes there are also opportunities. Benati says: “Europe is a mature


market, especially in the UK, in Germany, in Scandinavia. Growth in online travel has plateaued, which calls for more targeting of market share. At 5%-6% a year, online growth is still outpacing growth elsewhere, but it is slowing. “The boundaries between digital search and online and offline agencies are increasingly blurred. The challenges now are quite different even to three or four years ago.” She says. “The first challenge is to gain


and retain customer loyalty. There are several strands to loyalty – relevance, brand, customer experience and technology. The experience needs to be seamless and instantaneous as patience is not a feature of today’s traveller. “The second challenge is the fight for


relevance. It’s difficult to find a real element of differentiation between the major OTAs. “The third challenge is to gain brand


equity. Expedia was the first OTA in Europe to understand the need to create brand preference to develop customer loyalty. Now all in the European market understand and try to leverage this through advertising.” Benati adds: “There is content


ONLINE CROSS-BORDER PURCHASE OF TRAVEL/ % ACCOMMODATION


FIGURE 33:


10 15 20 25


0 5


25% EU 17% 9% 6% n/a 9%


Germany France


UK Italy


Highest: Ireland


Base: All adults Source: Eurostat


A MAJORITY of citizens in Europe’s biggest markets do not buy travel or accommodation across borders, despite the single market (Figure 33).


The online travel sector faces challenges, says Francesca Benati, Amadeus executive vice-president for online Western Europe, Middle East and Africa


fragmentation, especially among airlines. It is difficult because the market is fast-changing, complex and there are new players.” And there is the need to maximise revenue – “to monetise different parts of the user experience to cover the costs of acquisition [because] OTAs can’t rely on the flows of money of the past. They are in a battle on price because of metasearch and margins are diminishing.” At the same time, she says: “When you look at what technology can bring, there are opportunities to deliver a great experience to the customer.


Seamless experience “Artificial intelligence (AI) and the use of data can help deliver a seamless experience. Data can be used in a much more relevant way than in the past, and using predictive analytics, deep learning and natural language processing can deliver relevant choices. “There is an opportunity to use technology to optimise and better monetise the offer to the customer with all the opportunities to upsell and to increase yield through merchandising. “Offers will be much more relevant than


today, using data to offer only what is relevant, based not only on the individual but on the profile of the type of traveller. “In the future, we will get to a deep level of


merchandising, of cross-selling and upselling. The idea will be that you build up travel, you buy a flight and add a [choice of] seat and fast-track-airport access or transport from your home.


“The closer it gets to the date of a trip,


the more inclined customers are to receive different messages.” Benati suggests: “This works well with travel insurance and transfers. It also has less impact on your wallet than if you put everything in a single transaction.” She adds: “A lot of elements enabled


by technology were not there even three years ago. We can already provide an initial ‘traveller-type’ profile – for example, a traveller who books to travel on a Tuesday for one or two nights is likely to be a business traveller who will want a hotel with free Wi-Fi –


Travel Weekly Europe Report 2018 | 29


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