Channel management in etourism and success in ecommerce by N.Cristodoulidou

1. Multi-Channel Management:
Opportunities for online travel
agents and suppliers
By
Dr. Natasa Christodoulidou, Ph.D.
California State University
nchristodoulidou@csudh.edu
E-Tourism Forum 2009

2. Integrating data across organizations for
most companies is very challenging
Total U.S. Online Travel Booking Revenue
SOURCE: Based on data from eMarketer, Inc.

3. Publication
• Natasa Christodoulidou, Pearl Brewer, and Cary
Countryman Publication on Comparisons of
Customer Perception in Internet Travel Selection
• Published in the Journal of Information
Technology and Tourism

4. Theories Behind E-Marketing
Better Value
• Acknowledges that consumers are most likely
to choose a product or a service because it
reflects their perception of receiving value for
the time and cost involved.
• Consumers will be more likely to use an online
website that offers them better value by looking
at:
1. The product variety,
2. The quality of product options,
3. The ability to meet their expectations, and
4. Convenience.

5. Theories (continued)
Ease of Use Theory
• The extent to which an individual feels that
using a particular technology system would not
require great effort in their part (Davis, 1989).
• Consumers will be more likely to assess what
type of online travel booking website offers
them greater value by looking at:
1. How easy it is to use a website,
2. How clear and understandable a website is,
3. How easy it is to become skillful at using a
website, and
4. Functionality.

6. Theories (continued)
Loyalty
• Is the ability to retain customers and it is the
ultimate goal of many companies.
• Consumers likely be loyal to the online booking
website that offers:
1. CRM,
2. Trustworthiness,
3. Satisfaction, and
4. Ease of switching from one website to
another website.

7. Survey
• Survey developed to measure the use of technology
in internet selection sites in travel and tourism by
the customers.
• 38 items were developed
• 5000 participants were randomly invited to
participate from an online panel of 2.3 million
participants via email and 1069 responded for a
response rate of 21.38%.
• 982 met the screening condition that they had
purchased online in the last twelve months.

8. MR1
Demographics
Gender Demographics
1= Male
2=Female
2 1 1
50% 50% 2

9. Diapositiva 8
MR1 You may have to say here that you are using students. Justify why your study is not negatively affected by this. (e.g., they are actual
consumers [which is why they have to have a hotel stay within the last 12 month]).
Also say how many participants you are using.
Marcus Rothenberger; 03/01/2006

10. MR2
Demographic
Age Demographics
350
300
250
1=18-32
200 2=33-48
3=49-60
150 4=Over 60
100
50
0
1 2 3 4
Age Group

11. Diapositiva 9
MR2 You may have to say here that you are using students. Justify why your study is not negatively affected by this. (e.g., they are actual
consumers [which is why they have to have a hotel stay within the last 12 month]).
Also say how many participants you are using.
Marcus Rothenberger; 03/01/2006

12. MR3
Demographic
Highest Education Level
5
1= Some High School
2=High School
4 3=Some College
4= Undergraduate College
5=Graduate College
3
2
1
0 100 200 300 400

13. Diapositiva 10
MR3 You may have to say here that you are using students. Justify why your study is not negatively affected by this. (e.g., they are actual
consumers [which is why they have to have a hotel stay within the last 12 month]).
Also say how many participants you are using.
Marcus Rothenberger; 03/01/2006

14. Results
Factor 1 – Ease of Use
The website was easy to use
The website is clear
The website required very little skill to use
The website was user-friendly
The website has functions that customers need
It was easy to login to the website
Access to the website was easy
The website provided good navigation
Factor 2 – Intrinsic Value
The website offered variety
The website was of high quality
The website allowed for easy comparisons
I got the results I expected
Website maximizes convenience for recurring purchases
The website provided value
The website was new and updated.
Factor 3 – Extrinsic Value
The website is open 24/7
The website provided good promotions
The website addresses complaints in a friendly manner
The website safeguards personal information
Factor 4 – Loyalty
If I found a better website, I would switch to using the new website
Factor 5 – Decision Autonomy
I have the option to decide how I book my travel

15. Discussion
• Data showed that there were significant
differences found in the factors of loyalty and
decision autonomy.
• Loyal users are less likely to switch to another
service website if they found a comparable service
website that met their needs.

16. Results
• At a subconscious level, consumers may be
influenced by the fact that some service sites sites
save them time and therefore offer better value
than other sites.
• This holds if the particular service is considered
one-stop shopping. This may translate into
increased satisfaction, and hence increased
loyalty.

17. What are the practical challenges when designing
and implementing a more personalized approach on
the website?
• Long-term relationship and special treatment
• Every customer is different
• 5% Increase in retention rate can increase profits
by 60-100%
• Protect customer’s privacy and data security
(cultural and legal environments)

18. CRM Classification
• Customers can be divided into three zones:
• Zone of defection
• Zone of indifference
• Zone of affection

19. Understanding Social Media
• Social media refers to the tools that give the Web
its social capabilities.
• There are no set number of pages or length of
time.
• Types of social media:
• Blogs and Vlogs (video blogs)
• Internet forums and message boards
• File sharing (e,g, pictures)
• Social networking
• Wikis
• Product and service reviews
• RSS feeds

20. Social Media Optimization (SMO)
• SMO is the marketing means by which people,
companies and organizations work to get their
content as widely distributed throughout the social
media universe as possible.
• For example, after watching a video of a traveler
or a commercial on a property’s site, users can be
provided with the option to share the video in any
number of ways, such embedding the video on
their own Web site, or reposting it to a larger
community on popular social media and bookmark
Web sites.

21. Social Media Marketing (SSM)
• SSM falls primarily into two categories:
• Marketing Content Generation, and
• Viral Messaging

22. Why are social media tools, applications, and
sites so popular?
• A voice
• Consumer power
• Connectivity
• Networking
• Fame
• Second opinion
• Fun

23. The benefits of social media for
marketers
• Cost efficiency
• Broad visibility
• Pulse of the Market
• Increased Trust
• Self-Made Community

24. Customer Reviews
• Study by Texas A & M university – Gretzel et
al.2007
• Decreasing barriers to writing
• Motivation for writing reviews
• Venting negative feelings or receiving rewards
• Concern for other consumers
• Over half of respondents of the study (57.8%)
stated that they read other travelers’ online
reviews every time they plan a trip and 36.7%
read then very often or frequently.

25. Customer Reviews
• Study by Texas A & M university – Gretzel et
al.2007
• Over 80% of respondents who read online travel
reviews indicated an influence of other
travelers’ reviews on the following:
• Increase confidence in decisions
• Make it easier to imagine what the place will be like
• Help reduce risk/uncertainty
• Make it easier to reach decisions
• Help plan a trip efficiently

26. What is the secret of developing true one-to-one
relationships and customer experiences across a
varied customer base on the website?
• Failure – one fits all approach
• Be very careful how you launch your CRM
campaign
• Little secrets
• Special gesture (greetings)
• Customer feedback and customer reviews
• Making a customer feel as much comfortable with the
products and service

27. Thank You
Follow-up questions or presentation requests can be
emailed to (business cards also available):
nchristodoulidou@csudh.edu
Las Vegas Mobile number: +1 702 292 3952
Nicosia Mobile number: +99 55 49 49