Tripit – the Traveler’s Agent
Essay Preview: Tripit – the Traveler’s Agent
Report this essay
TripIt-The Traveler’s AgentTeam: The LeagueTable of Contents1 EXECUTIVE SUMMARY 12 INTRODUCTION 22.1 Background 22.2 Purpose of the business case 23 DECIDE 33.1 Define the problem 33.2 Establish Criteria 33.3 Alternative Solutions 43.4 Identify Best Alternative 53.5 Timeline and Support of the implementation 63.6 Evaluation, Monitor and Major Assumptions 63.7 Financial metrics, Benefits, Costs 74 CONCLUSIONS 85 WORKS CITED 116 QUESTION 1 12Table of FiguresFigure 7.1 Industry Analysis 7Executive SummaryTripIt was formally introduced to the online travel service industry in October 2006. TripIt is a free online travel service that aggregated travelers’ bookings with many top airlines, cruises, hotels, and travel websites into a comprehensive itinerary. Currently, TripIt is seeking recommendations for an in-depth revenue producing marketing plan. Through analysis and implementation of a forward thinking marketing plan, TripIt strives to meet or exceed a site traffic benchmark of at least 500K unique visitors per month.In order to reach the minimum traffic quota, TripIt will need to adopt a twofold marketing plan that will have quick as well as long term revenue spikes spurred by increased advertisement to site visitors and long term sustainability through loyal use of the key product offering, the “itinerator”. To ensure the success of a small business with limited investment funds, our advisory panel has found that the best course of action for TripIt based upon criteria of Cost, Time of Implementation, Population Reached, and Target Market Reached would be to utilize radio and social media to reach internet traffic and daily commuters, as well as partnering with OTAs to gain an edge on competition and spur the next stage of explosive growth.
The League has also made a Recommendation Report regarding investment interest in TripIt. Please see last page attachment for reasoning for not recommending investment into TripIt at this point in time. IntroductionBackgroundWhile 2007 was a banner year, 2008 is a year of dramatic change for the tourism industry. Every sector of the industry is being affected by the downturn in the economy, record fuel costs, environmental concerns, etc. However, all is not “doom and gloom”.Worldwide tourism grew in 2007. According to the latest UNWTO World Tourism Barometer, international tourism arrivals expanded by 6% in 2007, to 898 million international tourist arrivals. Most global sources predict a slight growth in 2008 and a fairly steady growth over the next 10 years. The Travel Industry Association of America (TIA) forecast a 2% growth for the U.S. travel industry in 2008. Travel spending by domestic and international visitors in 2008 is forecasted to increase 4.9% percent to $775.9 billion, up from projected full-year 2007 travel spending of $739.4 billion. Domestic leisure trips are expected to continue an upward trend of modest growth in 2008 and a slight increase in travel for business is expected. Consumers are cautious. The Conference Board Consumer Confidence Index for June 2008 stands at 50.4 (1985=100), down from 58.1 in May. The record highest level was 144.7 achieved in 2000. Says Lynn Franco, Director of The Conference Board Consumer Research Center: “Consumers’ assessment of present-day conditions continues to grow more negative and suggest the economy remains stuck in low gear. Time poverty continues to be a major factor in trip planning for all visitor sectors. (Randall Travel Marketing)E-commerce continues to play an extremely important role in the travel sector, making booking convenient for consumers and more cost-effective for travel providers. However, online travel booking sites like Orbitz and Expedia face tough competition. Today, airlines and hotel chains are offering their own powerful online reservation systems, with rich features, multiple levels of photos and descriptions, and the ability to earn and manage frequent flyer awards. Consumers often find the lowest prices on sites operated directly by airlines and hotels. (Plunkett Research, Ltd)TripIt (www.tripit.com) [plans to fill the need between multiple online reservations and] automatically organizing all of your travel information into a master travel itinerary – no matter where you booked. Using TripIt itineraries, travelers can easily see their trip details wherever they happen to be, and instantly share them with the people who need to know. (Concur)Purpose of the business caseThis report provides an analysis of TripIt’s growth potential and concepts to promote this growth. DECIDEDefine the problemTripit Company desires to increases user traffic to minimum of 500,000 unique visitors per month, enabling Tripit to acquire advertising revenue and monetize growth. Current monetization revolves around Cost per Action (CPA), potential advertising revenue and Itinerary referral revenue.