DER Touristik Suisse AG : eCommerce in Tourism - From the Beginning to Now
DER Touristik
Suisse AG: eCommerce in Tourism – From the Beginning to Now
Table 1: E-Commerce Departments of DER Touristik
Schweiz AG (own Illustration)
Importance of Online Analysis
Introduction
If not stated otherwise, the content of this blog entry is based on the
input by Manuel Posch, who is the head of eCommerce of the touristic company
DER Touristik Suisse AG (DTS).
The history of DTS dates back to 1906, when the company was started.
Back then, it was named Kuoni. Still, it is widely known under that name, for
the takeover by DER Touristik Suisse AG was only conducted in July 2017.
“Kuoni” is nowadays one of the 12 brands owned by DTS.
History of eCommerce in Tourism
For the creation of an eCommerce platform we need the necessary
infrastructure, such as the internet. Hence, the origin of eCommerce is coupled
with the discovery of the internet. Shortly after, the first platforms of
eCommerce in tourism were launched. For instance, Expedia exists since 1997.
Basically, when it comes to eCommerce, we can differentiate between
three historical phases: the pre-booking phase, the mass phase, and the
complexity Phase.
The first phase is named pre-booking phase, because only information was
published online, but there was no booking engine in the background yet:
booking requests were processed through the phone, via e-mail or with a contact
form.
The mass phase starts in 1999 and ends six years later in 2005. During
this time, the booking platforms as we know them now were introduced. Also, we
have the arising of reservation systems such as GDS or CRS.
The last phase, the so-called complexity phase, basically has the same
technical infrastructure as the phase before. We now have big data systems
though, and more complex products such as dynamic packaging.
A significant milestone happening right now is the purchase of products
through the phone. Thanks to companies adapting their websites to mobile users,
these users are becoming more and more confident in booking on their phones. (Adamson, 2016)
E-Commerce Platforms in Switzerland
The company is mainly active on three e-commerce websites in
Switzerland: Kuoni.ch, helvetictours.ch and lastminute.ch. The aim of all these
websites is to sell packages, city trips, hotels or rental cars. In case of
lastminute.ch, the offers are only promoted on a short-term basis for five or
six weeks. As it is a very neutral brand, only few people know that part of the
products are from Kuoni for instance. (Posch, 2018)
Task in an E-Commerce Department
The E-Commerce department of DER Touristik Suisse is divided into multiple subjects.
Technical
Infrastructure
|
An external
company takes care of the service and surveillance of the webserver and this
24/7. Their task includes constant monitoring and alerting of the technical
infrastructure. Similar to computers, this infrastructure also needs regular
updates and needs to be checked on optimisation possibilities.
|
Web
Development
|
The
software itself as well as the content management system (CMS) need to be
developed and maintained on a regular basis. Part of this task involves
implementing new software features or solving so-called bugs which prevent
the software from running smoothly. However, there is always some sort of bug
which needs to be corrected. A monitoring interface supports the responsibles
in the previously described task.
|
User
Experience and Design
|
The
understanding of user experience and design are often leading in different
directions, therefore, constant monitoring is enabling the company to
steadily optimise the website. One way is to implement A/B-Testing. Another
option is to monitor and analyse the online behaviour of the website
visitors. Branding is another subject which is discussed in this department.
The overall appearance is recommended to be unified all over the online and
offline look.
|
Project
& Content Management
|
This
department is responsible for the content management and the translation of
the content. Moreover, they lead campaign executions and on-going projects.
Apart from that, they manage the SEO status of the website and are therefore
also responsible for the software development as this goes hand in hand with
each other.
|
Product
Management IBE & Service
|
The main
responsibility is to maintain and develop the internet booking engine (IBE).
Furthermore, these people define how the software handles customer data,
bookings etc. Given their access to the customer data, they are also seen as
a supporting team coping issues and complaints from the customers’ side. In
other words, they act like travel agents.
|
Social
Media & E-Marketing
|
This form of marketing involves content planning and activities on
various platforms such as Facebook and Instagram. Moreover, they are
responsible for E-Mailings and online marketing channels like SEA,
Remarketing, Meta and Affiliation. In order to do this successfully, web
analytics provide the basic information needed.
|
Photography
& Videography
|
This creative part of E-Commerce supports the work of the User
Experience responsible by supporting the promotion of the products with
catchy pictures or videos. Photographs or also videos can minimize the
perceived risks of buying a product or service online. Therefore it is
important to publish only high quality content.
|
Importance of Online Analysis
To attain financial success, a business must achieve measurable
objectives which have to be defined in advance. However, with classical
marketing tools it is quite difficult to measure the success and the efficiency
of a certain campaign. In contrast to that, e business and online marketing
guarantee a very high transparency and enables managers to track their
customers’ behaviour (McQuerrey, n.d.) .
Posch points out that for every online business it is crucial to analyse
the online traffic on a regular basis in order to figure out whether the
objectives have been met or not. Furthermore, the observations give indication
about future changes and challenges. This gives managers enough time to
anticipate future trends and adapt their strategies. The analyses also allow to
detect certain interrelationships or irregularities. By comparing the internet
traffic with the turnover, lastminute.ch was able to detect an interesting
fact. Even though the bookings increased by 42% compared to the previous year,
the revenue did not raise in the same proportion. They came to the conclusion
that people book more often but cheaper. For OTA’s it is essential to know such
behavioural changes as it allows them to adjust their offers and be prepared
for the future.
In order to do a proper analysis, it is vital to know the most important
key performance indicators. Of course, they always depend on the business type
and objectives and also the methods and tools to measure them vary highly. In
the following section the most important KPI’s for OTA’s will be described.
KPI's
Website Traffic
A very important and widely used number is the website traffic. It shows how many people have visited the webpage in a certain time period. The most common way to measure it is with Google Analytics. With this KPI it is possible to measure the direct success of marketing measurements. If a company launches for example a new newsletter it should result in more website traffic. Since the number includes every potential customer, it is useless to make a statement about the financial efficiency of an online platform. Therefore, it is predominantly used to measure the success of awareness campaigns.
Conversion rate
The conversion rate is used to measure the financial impact of a marketing campaign. Furthermore, it can be used to determine the efficiency of an eCommerce shop or a booking engine. Basically, the rate is calculated by dividing the total number of bookings by the website visitors. In some cases, it does not make sense to consider all the visitors as potential customers. Some of the visitors are only looking for inspiration and they do not have the intention to actually buy something. Therefore, to get a more realistic picture about the conversion rate, it is sometimes better to only focus on the persons who have really checked out the prices and engaged with the offers.
Exit Rate
The exit rate gives indication about people who started the booking process but stopped it for some reason. Online shops should make every effort to keep this number as close to zero as possible. Buyers must not be given any reason to reconsider their purchase decision This requires a properly working booking engine in order to guarantee a convenient, smooth and efficient booking process.
KPI's
Website Traffic
A very important and widely used number is the website traffic. It shows how many people have visited the webpage in a certain time period. The most common way to measure it is with Google Analytics. With this KPI it is possible to measure the direct success of marketing measurements. If a company launches for example a new newsletter it should result in more website traffic. Since the number includes every potential customer, it is useless to make a statement about the financial efficiency of an online platform. Therefore, it is predominantly used to measure the success of awareness campaigns.
Conversion rate
The conversion rate is used to measure the financial impact of a marketing campaign. Furthermore, it can be used to determine the efficiency of an eCommerce shop or a booking engine. Basically, the rate is calculated by dividing the total number of bookings by the website visitors. In some cases, it does not make sense to consider all the visitors as potential customers. Some of the visitors are only looking for inspiration and they do not have the intention to actually buy something. Therefore, to get a more realistic picture about the conversion rate, it is sometimes better to only focus on the persons who have really checked out the prices and engaged with the offers.
Exit Rate
The exit rate gives indication about people who started the booking process but stopped it for some reason. Online shops should make every effort to keep this number as close to zero as possible. Buyers must not be given any reason to reconsider their purchase decision This requires a properly working booking engine in order to guarantee a convenient, smooth and efficient booking process.
Three further KPI’s which are very important to calculate the spending
for the marketing activities are the cost turnover ratio and the cost
per visitor and also the cost per acquisition.
Which Marketing Channels Are Important?
First, it is to mention that online marketing is a set of powerful tools
and methodologies used to promote products and services through the internet.
Online marketing enables a company to list their products and overcome barriers
of distance. Doing marketing online is cheaper than doing it in the physical
environment. It allows to personalize the offers and build up relationships
with the customers to increase the retention level. (Linton, 2018)
Following, the channels which are being used by DER Touristik Suisse are
explained.
Search Enginge Advertising, SEA
SEA is part of the search engine marketing, where the company is paying to advertise on the search engine. The ads are displayed on top of the search results and should help to increase the traffic on the webpage. SEA is a useful tool to push a campaign and increase awareness of the product. It is rather a short-term measure and paid service, which is connected to a daily maintenance. (Ryte, 2018) DER Touristik Suisse has 1630 active text ads and around 2154 active keywords, which lead to 100’000 clicks per month. (Posch, 2018)
SEA is part of the search engine marketing, where the company is paying to advertise on the search engine. The ads are displayed on top of the search results and should help to increase the traffic on the webpage. SEA is a useful tool to push a campaign and increase awareness of the product. It is rather a short-term measure and paid service, which is connected to a daily maintenance. (Ryte, 2018) DER Touristik Suisse has 1630 active text ads and around 2154 active keywords, which lead to 100’000 clicks per month. (Posch, 2018)
Video Advertising
Google YouTube in-stream ads are another used tool to advertise the company and its products. The video ad appears when a user opens a video clip on YouTube. The company uses in-stream ads more on a brand level. The ads are played either in the beginning (pre-roll), in between (mid-roll) or after the video (post-roll).
Google YouTube in-stream ads are another used tool to advertise the company and its products. The video ad appears when a user opens a video clip on YouTube. The company uses in-stream ads more on a brand level. The ads are played either in the beginning (pre-roll), in between (mid-roll) or after the video (post-roll).
Display Advertising
Display ads are shown as banners on other websites. It can be chosen on which websites the ads should appear to be present and address the target group. It leads to 3’300’000 impressions and 4’800 clicks in total. Since many people use ad blockers, it is not used as a main marketing channel of DER Touristk Suisse.
Display ads are shown as banners on other websites. It can be chosen on which websites the ads should appear to be present and address the target group. It leads to 3’300’000 impressions and 4’800 clicks in total. Since many people use ad blockers, it is not used as a main marketing channel of DER Touristk Suisse.
Remarketing
With remarketing, the products which the customer had looked at are displayed on other websites such as 20min.ch or wetter.com. Due to the cookies on the website it is possible to gain the customer data and show the interested products on other sites. It is the second biggest channel of DER Touristik Suisse after SEA.
With remarketing, the products which the customer had looked at are displayed on other websites such as 20min.ch or wetter.com. Due to the cookies on the website it is possible to gain the customer data and show the interested products on other sites. It is the second biggest channel of DER Touristik Suisse after SEA.
Metasearch
Metasearch engines such as momondo.ch, kayak.ch or swoodoo are listing products of other online travel search engine to let the customer easily compare the different offers. For the final booking, the customer will be transferred to the homepage of the travel agency. To be listed on the meta search engine, the travel agency must pay around 7% of their revenue.
Metasearch engines such as momondo.ch, kayak.ch or swoodoo are listing products of other online travel search engine to let the customer easily compare the different offers. For the final booking, the customer will be transferred to the homepage of the travel agency. To be listed on the meta search engine, the travel agency must pay around 7% of their revenue.
Affiliate Marketing
Affilinet Network is a platform for publisher and advertiser of different products. An advertiser can upload his ad on the affiliate platform and a publisher can download the ad and promote the ads with banners or text links on his webpage. The publisher earns money for the traffic or bookings which are generated over his page. (Oxidian.ch, 2017)
Affilinet Network is a platform for publisher and advertiser of different products. An advertiser can upload his ad on the affiliate platform and a publisher can download the ad and promote the ads with banners or text links on his webpage. The publisher earns money for the traffic or bookings which are generated over his page. (Oxidian.ch, 2017)
Social Media
On one hand, social media can be used to advertise the brand and the product with paid social media ads. An advantage is the specified targeting of the ads and only paying if someone is clicking on the advertisement. On the other hand, social media activities inspire people and let them engage with your brand.
On one hand, social media can be used to advertise the brand and the product with paid social media ads. An advantage is the specified targeting of the ads and only paying if someone is clicking on the advertisement. On the other hand, social media activities inspire people and let them engage with your brand.
Search Enginge Optimisation, SEO
To be on the top of the organic search it is important to have a search engine optimized website. Factors such as continuous content updates, speed of the website and the websites’ usability increase the success of the website regarding search engine optimisation. It is a cheap way to enhance traffic, but a constant developing of the website is required. (Fritsch, 2017)
To be on the top of the organic search it is important to have a search engine optimized website. Factors such as continuous content updates, speed of the website and the websites’ usability increase the success of the website regarding search engine optimisation. It is a cheap way to enhance traffic, but a constant developing of the website is required. (Fritsch, 2017)
Conclusion
In conclusion, this blog deals with the history of eCommerce and its
development. The three phases pre-booking, mass and complexity have to be taken
into account when looking at the development of eCommerce.
Carefully defined key performance indicators (KPI) help to reach the set
goals. For steering a touristic online business, the following KPI’s are
important: the conversion rate, which shows how many bookings out of the
visitors and shoppers could be transcribed, the CTR – cost turnover ratio
displays the marketing costs compared to the turnover and the CPA – cost per
acquisition which shows the costs in relation to the bookings.
Next to clear defined KPI’s a sophisticated ecommerce strategy is
needed. The two most important channels are search engine advertising and
search engine optimisation to enhance the traffic on the website.
References
Adamson, L. (2016, March
21). The History of eCommerce. Retrieved from The History of
eCommerce:
https://www.statementagency.com/blog/2016/03/the-history-of-ecommerce
Back, I. (2017). Reisetrend Kurztrips:
6 Gründe, warum ihr mehr Mini-Urlaube machen solltet. Retrieved from
https://www.gofeminin.de/reise/grunde-fur-kurztrip-s2332811.html
McQuerrey, L. (n.d.). Measurable
Objectives in a Business. Retrieved from
http://smallbusiness.chron.com/measurable-objectives-business-61314.html
Melogli, R. (n.d.). 8
Simple Taks for Your eCommerce Intern. Retrieved May 15, 2018, from
www.ecommerceandbeyond.com:
https://ecommerceandbeyond.com/8-simple-tasks-for-your-ecommerce-intern/
Pfeiffer, E. (2014, May 13).
Three Ways to Build Your In-House Ecommerce Team Structure. Retrieved
May 15, 2018, from www.ecommerceconsulting.com:
http://ecommerceconsulting.com/2014/05/three-ways-build-house-ecommerce-team-structure.html
Posch, M. (2018). E-Commerce
in Tourism - From the Beginning to Now. Chur.
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