Expedia – marketing Essay Example

and private sectors. Research papers published in 2007 suggest that higher ICP scores are correlated with greater long-term economic growth; for every unit increase in ICP score, GDP growth rises by 1.7% (Boris Bodkin). Exhibit 4 also shows that nations with high growth rates often have lower corruption perception scores, compromising governance and increasing business costs. The evaluation of fiscal & monetary administration assesses factors such as inflation, price controls, government budget balance, national savings rate, and country credit rating to promote economic growth and stability. However, highly inflationary and volatile prices of goods and services can impact Expedite's ability to offer value and maintain competitiveness.Globalization has had a significant impact on Expedite's expansion in the Asia Pacific region. The economy of a nation greatly influences North America and Europe, which has been influenced by globalization. This phenomenon has affected all aspects of business and consumer behavior worldwide. However, certain countries like Pakistan and Afghanistan face obstacles to growth opportunities due to their lack of technological advancement. On the other hand, countries such as Singapore, New Zealand, and Hong Kong have strong economies with stable monetary policies, high disposable incomes, significant purchasing power, low inflation rates, and robust domestic infrastructures. These nations offer potential markets for Expedite's expansion strategies.

It is worth noting that three airports in Asia are recognized as top airports globally. Changi Airport in Singapore and Incheon Airport in South Korea were named the best airports in 2014. Additionally,Malaysia's Low-Cost Carrier Terminal (LCCT) was acknowledged as the largest low-budget airline airport.

The Gross Domestic Product (GDP) represents the total market value of officially recognized final goods and services produced within a given time period

or year for a country.This serves as an indicator to measure a country's material standard of living by dividing its total output by population size through GDP per capita calculation.
Assessing institutions, investments, government expenditure, and trade balances within a nation is crucial. When considering investment preferences in the Asia Pacific region, it is important to prioritize countries with a high GDP per capita. This is because countries with higher figures in consumption, investments, government expenditure, and trade balance tend to offer more favorable investment opportunities. For instance, high levels of consumption indicate good disposable income among consumers, allowing them to afford outbound travel and leading to increased online sales. Likewise, high investment figures suggest healthy private investment and increased public spending on infrastructure such as airports, transportation systems, railways, ports, and other tourism-related activities. Additionally,a positive net exports value stimulates a healthy balance of payments which helps maintain stable foreign exchange rates while reducing inflationary pressures on prices. High net exports also encourage outbound business travelers as entrepreneurs can make regular business trips without facing financial difficulties (Source: www.Investigated.Com).Investments in the Asia Pacific region should prioritize countries with high per capita gross domestic product levels. Understanding social factors is crucial for expanding in this region, as they encompass behavior patterns, tastes, and lifestyles. This includes changes in consumer behavior due to fashion and style shifts, as well as changes in the age structure of the population. Having a grasp of social change helps businesses anticipate future market situations.

Demography is the most significant external factor that will shape our future. It has a fundamental impact on tourism demand and available workforces, ultimately affecting industry structure, operations,

and sustainable development. The tourism industry needs to anticipate and prepare for these changes by implementing strategies now.

In Asia, demographic changes include population growth, declining fertility rates, increased longevity, immigration, and labor migration. These factors significantly influence various aspects such as workforce structure, levels of disposable income, retirement plans, and motivational drivers behind different consumption patterns.

For social development in Expedite's expansion program in Asia Pacific nations , human capital development plays a crucial role . The company recognizes that highly literate countries like Singapore Australia and India will be key players driving the technological human capital markets in the future.Expedite's growth in the Asia Pacific region has been greatly influenced by technological factors. The emergence of information technology has led to a shift towards online sales of travels and tours, disrupting traditional travel agents' roles and increasing competition. This disintermediation has impacted the cost, differentiation, and focused strategies of online travel websites, while also adding value to customer information.

To maintain a competitive edge, Expedite is investing in technology advancements and prioritizing technological innovation for future development. They are building a service-oriented technology platform for all their brands that aims to deliver faster innovation, improved flexibility, enhanced site merchandising, search and browse facilities, search engine indexing, and personalization features. Despite this reliance on technology, Expedite retains full control over all aspects of its technological infrastructure.

The expansion plans of Expedite are influenced by various technological factors such as internet connectivity availability and reliability in different countries. Internet penetration and access to mobile broadband vary across the Asia-Pacific region but have seen significant growth in recent years.According to the International Telecommunications Union (ITU) in 2013, internet access rates

were 31% for individuals and 32% for households in the Asia-Pacific region. While these rates may seem lower compared to Europe (77% and 75%) and the Americas (60% and 61%), the large population of this region resulted in a total of 1.27 billion active internet users, surpassing both Americas and Europe combined by a significant margin of 1.05 billion users. The rapid increase in internet penetration within this region adds to the significance of this remarkable number. From 2005 to 2011, there was a tremendous surge from 344 million to over 999 million internet users, partly due to advancements in mobile broadband subscriptions.

Without technological advancements within Expedite and globally, their marketing strategies including market mix, segmentation, target audience identification, and positioning efforts would face potential risks. The Internet has eliminated geographical boundaries which require organizations to extensively research and plan before entering the e-commerce arena in the Asia-Pacific region. The online travel industry has utilized e-marketing tools enabling consumers to purchase travel services from home; however concerns remain about conducting extensive business online due to an unpredictable legal environment.E-commerce businesses must implement measures ensuring compliance with domestic and foreign tax requirements when selling products and services.
Expedite places a strong emphasis on its customers' security and privacy, as stated in their privacy policy. They prioritize ensuring the confidentiality and security of personally identifiable information provided by customers. Enforcement of privacy laws can vary internationally, especially in Asia Pacific countries. If a customer were to take legal action against Expedite in their own country, it could complicate matters since Expedite would be subject to that nation's laws. Despite this challenge, web-based firms have expanded their customer base

globally.

Meeting both domestic and international regulatory requirements remains a challenge as individual nations create laws to prevent excessive exploitation by foreign companies. In regions like Asia Pacific with significant growth opportunities for online retail and e-commerce, regulations limiting or restricting foreign investment hinder expansion. Some markets such as India prohibit foreign companies altogether, while others like China require the establishment of physical stores before launching an online shop. Considering these limitations is crucial when evaluating investment opportunities in global e-commerce.

It is worth noting that environmental issues have minimal influence on Expedites' expansion into the Asia Pacific region.The activation of "Force Measure clauses" in business agreements due to natural disasters and climate changes can result in immeasurable costs or losses. However, avoiding countries prone to tsunamis and earthquakes will not make a difference as human determination will persist even if tourism temporarily declines. The Tsunami had a temporary impact on Packet's tourist numbers, but business has now returned to normal. Concerns about environmental impact should not hinder investments in the Asia Pacific region. After conducting a PESTLE Analysis, we have determined that investing in Asia Pacific will lead to significant profits. Despite political and economic upheaval experienced elsewhere, the Asia Pacific region has shown resilience and is surpassing major nations in technological advancements. We predict that within the next decade, social culture in this area will rival Western cities, greatly enhancing Expedite's marketing mix, segmentation, targets, and positioning. The introduction of m-commerce has played a crucial role in maintaining steady consumption patterns and supporting Expedite's differentiation approach. Having an electronic point of sale (eposes) system is vital for tracking and executing e-commerce transactions with payment methods

such as credit cards, debit cards, and PayPal accounts.The Asia Pacific region is crucial for the development of online travel e-commerce websites. It is important to have a strong electronic point of sale (eposes) strategy in order to meet the diverse business needs and determine marketing success. The priority of implementing eposes systems in different markets depends on the size of the tourism industry and e-commerce transactions in each country in Asia Pacific.

Exhibit 1 demonstrates how significant Expedite's electronic point of sale is in the Asia Pacific region, particularly in China where it generated $50 billion revenue from tourist arrivals in 2012 (as shown in exhibit 2). Our preference is to rank establishments based on total revenue from arrival visas, which allows us to maximize brand exposure and inventory listing opportunities, ultimately increasing sales.

Although North America traditionally dominated the e-commerce market size in Asia Pacific, new players are emerging as contenders for world commerce leader. This has caused North America's share to decline. Recent estimates show that online sales from the U.S. and Canada accounted for 33% of global sales in 2012, down from 35% in 2011 and 38.1% in 2010. Similarly, Western Europe's portion of worldwide sales is decreasing due to their mature commerce markets.The Asia-Pacific region has become a prominent player globally, thanks to increased internet access and a growing middle class. This rise in prominence is mainly seen in countries like China, where factors such as increased internet access and a growing middle class have led to significant growth. In 2013, predictions by marketers indicated that the Asia-Pacific region would surpass North America and Europe, accounting for 34% of all commerce sales.

Notably, China and Indonesia experienced substantial increases in sales at rates of 65% and 71%, respectively (musketry 2013). The rise of online sales in China and India has made them major consumers in the business-to-consumer market due to their high internet adoption rates (musketry 2013). To ensure success, expedite companies should prioritize establishing electronic points of sale (eposes) in these countries as online travel sites and purchasing goods online are essential for consumers (musketry 2013). It is important to consider factors such as government policies and banking regulations that may impact transaction payments. However, overcoming these challenges should not impede efforts to boost sales in the Asia-Pacific region.Countries such as China, India, and Indonesia should be given priority attention due to their high tourism arrivals and revenue levels. However, countries like Manner with lower tourism arrivals and nominal e-commerce sales may not be suitable for Expedites business expansion or establishing electronic points of sale (Expended Inc., 2006). Expedites' 2005 annual report outlined their strategies including leveraging their portfolio of travel brands, innovating for travelers and supplier partners, expanding international and corporate travel businesses, and implementing marketing and promotions strategies. The company utilizes mass marketing by offering a wide range of options through leading brands. They also employ diversity marketing targeting different demographics with brands like Hotelier for budget-conscious travelers and Classic Vacations catering to luxury travelers seeking customized vacation packages. Premium content about lodging properties catering to travelers who prefer shorter booking windows can be found on their Hotels.com site.In order to successfully target the Asian market, it is crucial for Expedite to follow IEEE's business strategy. The diverse range of consumers in this market

necessitates brand awareness through mass marketing implementation and segmentation across all traveler categories. To effectively reach different segments of travelers in Asia, it is important to take into account each country's macroeconomic position and the disposable income levels of various types of travelers.

Expedite aims to replicate its multi-brand strategy in the Asia Pacific region by catering to specific segments with different brands such as Hotelier.Com, Hotel.Com, and Agencies.Com (Corporate Traveler's). Although they have gathered a significant amount of customer data, building trust with travelers will require using this data to provide tailored and intelligent offerings.

However, there is strong competition from local travel agencies in the Asian market that specialize in customized tour packages, especially in countries like Korea, Japan, and China where English literacy levels are lower. These tourists heavily rely on tour guides for assistance. In contrast, Expedite focuses on providing flights and hotel reservations for independent travelers.

Budget airlines are now directly promoting hotel packages through their own websites to consumers. In order to offer more competitive prices on their website, Expedite is working on negotiating better terms with both hotel and airline companiesIf they find it difficult, they might consider offering support for the affiliate system as a last option. Additionally, Expedite focuses on inventive strategies that benefit both travelers and supplier partners. They have implemented various technologies to enhance the travel experience for customers. Expedite offers several services including Best Fare Search, dynamic packaging, traveler views, Personal Trip Guides, Expedite's Transcriptional software for corporate travelers, and Airspeed e-mail campaigns.

The primary goal of the company is to improve customer confidence in making purchases by ensuring competitive pricing. In order to further guarantee their

competitiveness in pricing, Expedite has a policy where if a customer finds a better price online for the same trip within 24 hours, they will refund the difference and provide a $50 travel coupon for the next qualifying trip (subject to certain restrictions). They also use Transactional Marketing through travel coupons given to customers.

In the future, Expedite plans to continue innovating on behalf of their suppliers and implementing Affinity Marketing strategies. They have created their own supplier-oriented technology that simplifies the connection between their websites and hotel central reservation systems. This technology allows hotels to easily manage reservations made through Expedite's brands in an economical manner.Hotels can utilize "direct connect" technology to directly upload information about their products, services, and rates from their central reservation systems to their websites. Additionally, this technology allows for automatic confirmation of hotel reservations made by travelers.