IAOS Conference on the New Economy

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IAOS Conference on the New Economy Dinesh
Dhamija, Chief Executive Officer 29 August
2002
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Our company
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Introduction to ebookers plc

• Europes biggest online travel agency by sales
• Full service flights, cars, hotels,
  insurance and holidays
• 11 European countries, 9 languages
• Low cost contact and fulfilment centres in
  India and Ireland

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What we do transaction based model
Content
Distribution
Marketing
Internet
Online and offline Marketing

• Supplier
• Content

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Bookings
Phone
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Hotels, car hire, flights, insurance, holidays
Key centres Ireland, India
Fulfilment
Common in-house fulfilment

Revenue
Common back office
99.5 transactional
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We are number one
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Our 20 year background in travel gives us access
to special supplier deals
Less restrictions on travel
PUBLISHED
Threat of commission cutting
Anyone can sell via GDS
30 of ebookers sales
Discounts15-65 nego, 50-75 distressed
We mark up so no risk of commission cut
MERCHANT
Barrier to entry intermediaries limited
70 of ebookers sales
FIRST
BUSINESS
ECONOMY
F
B
Ticket price 4,000
2,000 900 700 300 200
WL
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We are focused on Europe for good reasons
Expedia, Travelocity - US
ebookers Europe
Holidays 33 days larger leisure market
Holidays 13 days
380m population
280 million population
Many more nego/distressed fares
Margins 6
Margins 10-12 (without advertising revenue)
2bn annual sales needed for cash positive (Q1
2001)
260m sales needed for cash positive (Q3 2001)
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Our booking engines give customers maximum
information and control
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The market we operate in is set to grow at 56
this year
Total European travel market bn (Jupiter
MMXI) (Highly fragmented 48,000 travel agents)
European online travel market bn (Jupiter MMXI)
56 growth rate this year
6 growth rate this year
CAGR 37
2001 2.3 of all European travel online 10 of
all US travel is online
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We are delivering strong growth
m
Gross sales the total transaction value of all
products sold
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But we are also focused on reducing costs
especially India
9/11
Operating expenditure as of gross sales
excluding stock compensation, depreciation,
amortisation
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This means that we are now making cash and
analysts forecast full profitability next year
m
Net cash at bank or in hand
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Data gathering and statistical analysis at
ebookers
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Why we need data
1. Performance Measurement Historical
comparison, comparison against budget   2.
Process Improvement Increase conversion
rate, cross sell   3. Opportunity
Identification New sales opportunities
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The metrics we measure
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A. Data from websites and middle office systems

• e.g.
• Bookings made
• Destination/party size (how many tickets per
  booking?)
• Value of sales
• Margin on sales
• Time of booking (when are our customers active?)
• Type of holiday

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B. Data from websites and middle office systems
Total unique visits to the site Time of
visit Drop-off rates for each product path
Look to book conversion rate for each product
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Our data is collated on intranet and middle
office systems in real time
Intranet based
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How we use our data
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Targeting our customers
email newsletters
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Increasing profitability- better buying
Which suppliers are most profitable? Which
products should we emphasise on our websites?
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Increasing conversion rates
e.g. What is the most popular user flow around
the site? How can we improve our pages?
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Better marketing online vs offline
search engine optimisation
Portals e.g. UK - Yahoo Holland - Wannadoo
Poster campaigns
email newsletters
Radio advertising
Retails advertisements
GBP
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Conclusion

• ebookers is an information rich business
• We can
• easily track consumer preferences
• monitor business performance across key metrics
• This is enabling us to steal a march on our
  offline competitors

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Questions
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