Published on January 27, 2009
Listen, Engage, Lead The Challenge of Building e-Tourism Technology for Small Business Stephen Joyce President & CEO Rezgo.com (A Division of Sentias Software Corp.)
State of the Union 20% Destination tour & activity suppliers who accept bookings through on-line channel. 5% Suppliers who distribute product through resellers. * Internal market research
State of the Union 47% Average seasonal capacity of SME tour operators. $200 Average booking value based on two guests. * Internal market research
State of the Union 47,000 Number of listed tour, attraction, and activity companies in the U.S. 17,000 Number of listed tour, attraction, and activity companies in Canada * Internal market research
State of the Union $27.6 Billion Value of non-distributed capacity from SME operators in U.S. & Canada. * Internal market research
The Opportunity There are hundreds of thousands of destination activity & tour operators who do not sell on-line or distribute their products electronically. This inventory is valued in the Billions of dollars.
The Goal To build a system that would provide small businesses with the tools to manage their inventory, bookings, customer data, and distribution with the same or better sophistication then airlines and hotels.
The Supplier Challenge Small Businesses Single Owner/Operator No formal business background Little or no best practices Little or no cash/capital for technology
SME operators would rather be out on the mountain than behind a desk.
The Distribution Challenge Small businesses individually hold very little inventory and are too volatile for a distributor to create one-on-one relationships. Distributors need economies of scale.
Hear What suppliers say Their products are unique or too specialized. Their accounting is unique. Their relationships are unique. Their businesses are too complex for a system. They don't need any more bookings.
Listen What suppliers mean They don't have a standard for structuring products. They don't have a standard system for accounting. They sell to & through whoever they can. They don't have the tools to understand their business. They can't handle more bookings.
When it comes to running their business, many are lost in a forest of their own creation.
Engage What do suppliers need They need to standardize their product structure. They need to consolidate their marketing content. They need tools to tell them how they are doing. They need access to distribution. They need to best business practices. They need simplicity not complexity.
Lead Helping Suppliers Succeed Provide tools that are simple to use. Provide standards that suppliers can follow. Educate suppliers on best practices. Make it easy for suppliers to distribute. Charge based on performance.
Lead Helping Suppliers Succeed … by empowering them with the knowledge to improve their business practices and the tools that simplify their business processes.
Industry Opportunity DMOs & CVBs Destinations need content and products from suppliers to market. Many RMOs/DMOs need new ways to generate revenue. DMOs/RMOs are trusted partners. New technologies provide access to data without high cost.
Industry Opportunity Travel retailers Retailers want access to high margin product. Viator was pioneer, now comes isango!, Expedia, and Travelocity. Managing destination product is time consuming and labourious. Retailers need tools that allow for supplier self-management.
Industry Opportunity Trip Planning & Other sites These site provide services for free and need to monetize Aggregating suppliers is not their business. Destination product is exciting and feeds the planning process. These sites have traffic but little to no revenue conversion.
Power of the Crowd (SaaS) Rich Media support 740+ Geolocation XML API Suppliers Mobile Check-in Access to distribution Channel Management Reduced costs
Change that impacts the industry Destinations have access to supplier data for their regions. Agents/Distributors/Resellers have access to new product. Suppliers increase revenue & pay on performance.
W: www.rezgo.com E: firstname.lastname@example.org P: (604) 983-0083
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