Traveloka Group 1

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INTRODUCTION

I. CRM / E-CRM / IMPORTANCE OF E-CRM


Customer relationship management (CRM) software serves a crucial role in gathering
and maintaining important customer data in one location. Such data includes preferred
contact methods, account information, and details of potential leads. Traditional CRM
usage helps businesses understand various customer interaction and satisfaction
techniques that are effective for daily operations. Additionally, it provides sales
employees with customer profile data for previous purchases.
e-CRM, primarily focuses on online sales and customer experiences. The application can
analyze customer data and sales patterns and register and store data, similar to
traditional CRM. However, e-CRM can do all these tasks continuously. Most e-CRM
applications include evaluating site metrics such as conversion rates, customer click-
through rates, email subscription opt-ins, and which products appeal to customers.
E-commerce bonuses, such as personalized experiences, can enhance the customer
relationship. Providing expertise to customers to customize their e-commerce experience
and attending to their needs creates a sense of being heard.
Facilitate your customers with personalized experiences with such user-friendly e-
commerce bonuses. To maintain a healthy customer relationship, a few tips must be
noted; providing the expertise to your customers for customizing their e-commerce
experience and attending to their needs, and inciting them with the feeling of being heard.
Apart from boosting new customers, such tips will also prove helpful in retaining the
existing ones too.

The ideal features of e-CRM:


● Collecting customer information, include: sign-up forms, pop-ups, etc.
● Integrating with all the tools such as: the order management system, e-commerce
platform, social, the feature of viewing customer profiles and their event history,
generating reports and analytics.
● Segregation of customer data based on their actions, browsing activity, and the
customer-related data you hold
● Automation flows are created so that you can trigger actions like sending an email or
SMS, and it will be dependent on a trigger whenever an order is placed, or the cart is
empty.
● Communication with end-users via emails or SMS campaigns.
● An e-CRM application facilitates tools to identify customers like predictive analytics,
expected next order date, etc. This will help to identify trends and ascertain ways to
create profitable customers.
https://www.richpanel.com/ecommerce-crm/crm-importance#:~:text=An%20e%2DCRM
%20application%20facilitates,and%20lifetime%20value%20(LTV).
II. Objective
The goal of the report is to analyze what strategies traveloka is using to manage customer
relationships through digital technologies such as email, website, chatbot and online
channels. Specifically for this newspaper, we will know Travelloka's E_CRM plan for the "Fly
on Tet, sell out" campaign.

In this section our goal is to understand the strengths, weaknesses, opportunities and
challenges of traveloka.
Along with that, we will present traveloka's biggest competitors, what they have achieved,
who they are, we will analyze direct competitors as well as indirect competitors. of traveloka,
from there, we will be able to draw out what traveloka's competitors are strong at and what
their competitors' weaknesses are, thereby providing directions for better development in the
future.

III. Justification
The basis for choosing Traveloka for analysis can be based on several factors:

First, popularity and market presence: Traveloka's popularity and market presence is an
important factor. In an Asian market with many strong competitors, the fact that Traveloka
has a loyal customer base and maintains orders shows that its competitive position can
provide value in terms of its success factors.

Second, about culture: Understanding the cultural nuances and preferences of the chosen
country is important for travel platforms. User behavior, preferences and cultural attitudes
toward convenience when using platforms directly influence Traveloka's growth.

Third, Business model and customer attraction strategy: understanding the business model
and strategy, analyzing customer attraction and retention strategies, providing insights into
the online travel industry in Southeast Asia in the tourism industry is highly competitive,
helping to identify trends and opportunities in the market through improving relationships
with Traveloka's customers.

By considering these factors, Team 1 can make a strong case for learning about the
customer relationship development side of the business to enhance user experience and
directly influence Traveloka's development.

IV. TRAVELOKA DESCRIPTION


Traveloka - a unicorn company based in Indonesia, was founded in 2012 by information
technology practitioners returning from the United States.
Traveloka is a Southeast Asian travel and lifestyle app that provides access to discover and
purchase different types of travel needs, local services and financial service products.
With 24/7 customer service in local languages as well as over 30 different local payment
methods, Traveloka has been downloaded over 100 million times, making it a popular travel
and lifestyle booking app most in Southeast Asia.

Traveloka's comprehensive product portfolio includes transportation booking services such


as airline, bus, train tickets, car rental, airport transfers as well as access to the Southeast's
largest accommodation inventory ASIAN.

https://vi.wikipedia.org/wiki/Traveloka

New areas have expanded Traveloka's reach. In 2019, the company's Traveloka Protect
insurance product line was launched. And it has developed a shariah-compliant health
insurance program called Bebas Handal for Muslim customers with Hong Kong-based FWD
Group.

Besides fintech, Traveloka has also cruised into lifestyle and entertainment services. It
launched a page for restaurant directory, Traveloka Eats, in 2018. Then, a sub-brand called
Xperience went live in 2019. It lists around 15,000 activities in over 60 countries, spanning
events, films, as well as specialty classes and workshops.
https://kr-asia.com/in-the-top-flight-everything-you-need-to-know-about-traveloka-part-1-of-2

The airline has partnerships with more than 100 domestic and international airlines,
serving more than 200,000 routes worldwide. The Traveloka app has more than 40
million downloaded, become the most popular travel booking app in Southeast Asia.

CONTENTS
I. SWOT, RIVALS, MARKET
1. SWOT
Strengths
● Unicorn company operatiing in south east Asia and Australia.
● Multi-platform within Online Travel Agent (OTA) (car, airline, bus,
experiences, hotels all on one site)
● Easy, logical and clear design of the webpages.
● Traveloka accepts a variety of payment methods, including Visa, MasterCard,
domestic ATM cards, and Payoo payments from convenience stores and
supermarkets.
● Many appealing features, such as Price Alert (which notifies users when ticket
prices suited for their budget become available) and Traveloka Quick (which
allows users to book hotels or flights in less than a minute).
● Cheap because there is no booking cost, rates displayed on Traveloka are
final, do not include any taxes or other fees, and there are discount programs
for travelers ranging from 10% to 30%.
● Extensive distribution network with various service sectors, generating
several revenue streams.
● Outstanding technology, clever algorithms aid in filtering and providing the
fastest results from a huge database system.

Weaknesses
● The platform is so vast that one can get lost in the sheer amount of offerings
available. (travel platform combined with a credit card, internet, insurance,
mobile plans)
● Hard for smaller, niche hotels and properties to get noticed on such a large
site with so many participators.
● It is hard for every individual property to differentitate themselves because
most are ranked according to price.
● Little focus on Corporate social responsibility (CSR) and sustainable tourism or
business practices.
● Customers have stated that the refund service is inefficient. The capacity to
locate consumers is inadequate: Although Traveloka has grown significantly, its
ability to identify clients has not been maximized. Traveloka faces difficulties in
acquiring new clients and keeping old ones.
Opportunities
● Online ticket purchasing (airplane, rail) and hotel booking services have
grown significantly over time, providing prospective chances for OTA
expansion as local and international travel demand grows and expands.
● Changes in consumer consumption habits: Changes in customer
consumption habits are creating a plethora of new options for travel firms
such as Traveloka. Customers are becoming more interested in travel
experiences and are looking for more unique options to improve their trip.
● Can easily expand into a range of other industries and international markets.
● Has the ỉnastructure for differentiating revenue streams already in place,
making it ready to capitalize on emerging technologies or markets.
● Possibility to increase loyalty among its customers.
Threats
● Traveloka is a major player in southeast Asia, which makes it vulnerable to all
volatility in that market.
● Speed at which Traveloka has grown can leave it vulnerable to unforseen
challenges that it is not yet ready for.
● Increase in direct bookings by companies
● Vietnam does not have many experienced online travel agencies (OTA), thus
the industry is still dominated by travel agency groups such as TO (Tour
Operator) and TA (Tour Agency).
● The obstacles to launching an OTA are substantial, mostly due to
technological issues and marketing expenditures. Because the pricing
database will be quite vast, data retrieval will be difficult and sluggish,
particularly during peak seasons. When the volume of traffic suddenly surges,
causing data retrieval to surpass the computational capabilities of the system.
● Marketing and advertising are particularly important since the industrial model
must establish a strong brand and discover strategies to attract a significant
volume of visitors.
2. Rivals
With the rapid growth of the travel market and increasingly diverse and complex
customer needs, OTAs need to compete to meet customer needs and gain market
share. The development of information and communication technology also creates
favorable conditions for OTAs to compete with each other through online channels.
And, at the moment, Traveloka is vigorously battling with competitors in all areas,
including pricing, quality, and service. The rivals of Traveloka are classified into three
categories: direct competitors, indirect competitors, and potential competitors.

Direct competitors: Direct rivals of Traveloka fight for market share, consumers,
and money.These rivals have an edge in terms of expertise, scale, and partner
network. Offering a wide range of travel products and services, airline ticket booking,
hotel booking, and tour booking. Traveloka's rivals each have unique strengths and
disadvantages. Traveloka has a number of direct competitors in the Vietnamese
market, typically: Booking.com, Agoda, Tripadvisor, Expedia, AirBnb, Hotels.com,
Luxstay.
To compete with competitors, Traveloka can use the following unique solutions:

● Increase your product and service portfolio. To fulfill the different demands of its
consumers, Traveloka can grow its product and service offering. Traveloka, for
example, may provide novel travel services such as experience travel, exploration
travel, adventure travel, and so on.
● Concentrate on the target market. Traveloka can establish competitive advantages
by focusing on certain target markets. Traveloka, for example, can target the market
of youthful clients, business customers, family travel customers, and so on.
● Improve the consumer experience. Traveloka can improve the consumer experience
by upgrading the user interface and offering better customer service, among other
things.

Implementing these technologies will assist Traveloka in maintaining its dominant


position in Vietnam's online travel sector.
Indirect competitors: In addition to direct rivals such as Agoda, Booking.com, and
Tripadvisor, Traveloka also faces indirect rivalry from the following companies:

Airlines: Airlines are increasingly concentrating their efforts on building their own
internet ticket sales systems. As a result, Traveloka and other online travel providers
must compete directly with airlines for market share in ticket sales.

Hotels: Hotels are also putting more emphasis on building their own internet room
sales channels. As a result, Traveloka and other online travel providers are forced to
compete directly with hotels for market share in room sales.

Platforms for e-commerce: E-commerce platforms like Shopee, Lazada, and Tiki are
aggressively diversifying their product and service offerings into the tourist industry.
This forces Traveloka and other online travel providers to compete directly for travel
market share with e-commerce platforms.

These indirect competitors each have their own set of advantages and
disadvantages. Airlines and hotels have the benefit of knowing their products and
services inside and out. Popularity and client accessibility are advantages of e-
commerce platforms.

Traveloka is the top online travel firm in Vietnam, although it confronts stiff
competition from both direct and indirect competitors. Traveloka must continue to
innovate goods and services while enhancing customer service quality to keep its
leadership position.
Traveloka may compete with indirect rivals by implementing the following particular
solutions:
● Increase collaboration with airlines and hotels. Traveloka can collaborate with airlines
and hotels to deliver complete travel goods and services that satisfy the demands of
all customers.
● Concentrate on building one-of-a-kind tourist products and services. Traveloka may
concentrate on producing unique travel goods and services that competitors can not
provide.
● Increase your marketing and advertising efforts. To raise client awareness of its
brand, products, and services, Traveloka must improve marketing and promotion.

Potential competitors
Potential rivals for Traveloka include:
Traditional travel agencies: Traditional travel businesses, such as Vietravel and
Saigontourist, are beginning to shift to internet operations. These businesses benefit
from their experience, reputation, and vast consumer base.
Large technology firms: Large digital businesses, such as Google and Facebook, can
join the internet travel sector with services like as Google Flights and Facebook
Travel. These businesses have advantages in terms of financial resources,
technology, and client reach.
Startup businesses: Startups in the sector of internet travel are proliferating. These
businesses have a competitive advantage in terms of innovation and
entrepreneurship.

Traveloka's future rivals might pose significant hurdles to the corporation. Traveloka
must continue to innovate goods and services while enhancing customer service
quality to keep its leadership position.

Traveloka's specialized solutions for dealing with possible rivals include:

● Increase your product and service portfolio. To fulfill the different demands of its
consumers, Traveloka can grow its product and service offering. Traveloka, for
example, may provide novel travel services such as experience travel, exploration
travel, adventure travel, and so on.
● Concentrate on the target market. Traveloka can establish competitive advantages
by focusing on certain target markets. Traveloka, for example, can target the market
of youthful clients, business customers, family travel customers, and so on.

3. Market
The internet travel sector in Vietnam is a profitable piece of cake. According to
Google and Temasek, the scale of Vietnam's online tourism reached 3.5 billion USD
(15% increase) in 2018, and is predicted to reach 9 billion USD by 2025.

According to the results of a survey published by Q&Me in 2021, Traveloka is the


most widely used OTA in Vietnam, accounting for 42%. Standing in the next positions
on the rankings are Agoda.com (39%) and Booking.com (38%), respectively.
Foreign OTAs virtually completely control this market. Global OTAs like as Agoda,
Booking, Traveloka, Expedia, and others account for 80% of Vietnam's online travel
market share, according to data from the Vietnam E-Commerce Association
(VECOM). Foreign OTAs are used by the majority of international travelers and many
local tourists. Vietnamese online travel agencies (OTAs) such as Gotadi, VnTrip,
Ivivu, Chudu, Mytour.vn, Vinabooking... have a low transaction volume.

Many big hotels claim that OTA reservations contribute for 40-60% of overall income,
primarily from overseas OTAs. For example, at Rex Hotel (District 1, Ho Chi Minh
City), internet sales account for more than 35% of total room sales, with OTA
channels accounting for more than 40%.

"Vietnamese hotel owners must pay booking fees of up to 38% through foreign OTA
sites." "That is the pain of hotel owners, because profits are being 'eaten' up," Mr.
Ngo Minh Duc, creator of Gotadi, explained.

One of the reasons why it is difficult for Vietnamese OTAs to compete with foreign
OTAs is because foreign OTAs are often about 20 years ahead of Vietnamese
businesses in online transaction experience, operating on a global scale, and have
built brand, solid reputation, along with strong financial potential. Not to mention the
"foreign-loving" mentality of users.

Difficulties of OTA in the context of Technology Revolution 4.0


Profit maximization
The OTA-service provider linking model, discount rate, profit generation method, and
associated commitments shall be agreed upon in advance. Most of the time, the
profit rate received from OTA is less than the operating depreciation expenses. This
is especially evident in the contemporary environment, when numerous OTAs
compete in the same field, putting enormous pressure on each OTA unit. As a result,
OTA operators are struggling to discover the correct path that generates income,
converts it into profit, and maintains a reasonable pricing for users.

Optimize operating costs


As mentioned above, operating costs (equipment, services, employee salaries...)
account for a large part of the OTA operation process. Under great pressure from
competitors in the same field, as well as the extremely fierce impact that Covid 19
brings, the problem of optimizing operating costs is receiving even more attention
and emphasis.

Optimized based on the power of Technology 4.0


OTA cannot operate naturally, but needs the foundation of the power that the
Industrial Revolution 4.0 brings, demonstrated through the level of machinery, AI,
IoT... to develop. The greater the power, the more efficiently and optimally the OTA
operates. Along with this issue, it is human resources - the higher the technical level,
the more effectively we can exploit what the 4.0 Industrial Revolution brings and
apply it in practice when deploying OTA.

Advantages of OTA in the context of Technology Revolution 4.0

Access a rich source of potential customers more accurately


The 4.0 technology revolution takes the Digital World as the focus for development,
thereby helping people everywhere connect and communicate with each other more
easily and effectively.
That's why in the business field, if managers know how to take advantage of the
advantages that the digital world brings, the scope of reaching potential customers is
extremely wider.

Take advantage of the power of the Industrial Revolution 4.0 to develop


Based on what the Industrial Revolution 4.0 brings, businesses and hotels can rely
on it to create attraction, fierce competition and optimize their resources.

Obviously, with the development of technology, OTA has a very important position,
being a springboard and foundation to promote the development of many
businesses. For those working in travel and accommodation services, this is even
more important, creating a seamless experience for customers. Therefore, it is
necessary to take advantage of the advantages and reduce difficulties to create more
effective cash flow.

II. COMPETITIVE ADVANTAGES


1. Overview comparison OTA
Traveloka Trivago Agoda VnTrip

Overview Headquarters: Headquarters: Head office: Headquarters


Jakarta, Germany Singapore : Hanoi,
Indonesia Established: Vietnam
Established: 2005 Area of Established:
2012 Area of operation: 2003 Established:
operation: Worldwide 2014
Area of
Southeast
operation: Area of
Asia and
world wide operation:
Australia
Vietnam

Target market Southeast Global TA: Global Vietnam


Asia Customers
care about
price

Marketing Website Website Website Website


strategies
Advertisemen Advertisemen Advertisemen television
t t t advisement

Social Media Social Media Social Media

Influencer
marketing

Product/ Ticket Book a guest Book hotel Book room


service in booking room room.
App, Wensite Support for hotels, tickets
and hotels hotels, booking air
apartments, plane
tickets,
Online, book
shuttle
tours (hotels, homestay
services and
air tickets,
cars. Book
restaurants)
tickets for fun
activities at
tourist
attractions
Application Good prices, Minimalist Quality and Good-
difference diverse interface, diverse looking,
features payments, easy to amenities friendly and
24/24 service. understand easy-to-use
and use. interface.
Promotions There are Promotions
and discounts price and discounts
are applied in comparisons are applied
payment with other during
packages. platforms. payments
Detailed
rating on
room
expenses

Distribution The The online Online in Only in Viet


chanel application is application is world wide Nam
present in 6 available in
Southeast more than 60
Asian countries
countries and worldwide
Australia

2. Traveloka advantages
● Application of digital technology

With technology platform and hundreds of high-quality engineers,


technicians, Traveloka offers users online travel service with friendly
interface, quick and easy booking steps. Traveloka is currently the only
application in Vietnam that allows users to search, book cheap flights and
hotel rooms at the same time. In particular, the ability to update Traveloka
apps with many attractive features such as the Price Alert feature(notify
users when the fare is appropriate for the budget) or Traveloka Quick
(booking hotels or air tickets has not arrived yet) one minute).Traveloka
facilities brought to customers are the experience of booking hotels and
cheap air tickets on the same interface, quick payment, customer care 24/7,
etc. These are also the factors strengthens Traveloka's travel marketing
strategy. Thanks to that, Traveloka has become popular and has more
potential customers. Besides the great features, Traveloka is also a "savior"
if unfortunately encountering urgent situations such as flight delays,
changing flight schedules with last-minute hotel features. Last minute rates
on Traveloka are guaranteed to be lower than normal and can be discounted
up to 50%.

● Online valuation

The online tourism market in Southeast Asia is predicted by


Google and Temasek (Singapore) to achieve revenue of USD 90 billion by
2020. More importantly, 85% of the cash flow will flow into hotel
reservations and airline tickets. This is a strong attraction for foreign
businesses. Especially when Vietnam does not have many online travel
agencies The strong development of OTA e-commerce (Online
Travel Agent) has become anin dispensable tool to support all the needs
of Vietnamese tourists. Traveloka has applied this model in the Asian market
and has been very successful. According to the survey of e-commerce
services in Vietnam last year, online booking services (airplanes, ships)
reached 34% and hotel reservations reached 19%. This number is
expected to increase sharply over time to serve the market of 41.08 million
internet users (62% of which is used for online shopping) in Vietnam. This
is a very lucrative market, when the demand for tourism at home and abroad
is always high and constantly expanding.

● Home Paylater
With Home PayLater, customers can immediately use the services available
on Traveloka and do not need to pay in advance, just start the first payment
period from 1 month after the date of purchase, especially with only 0%
interest. . Home PayLater also does not charge conversion fees, hidden fees,
or account opening fees compared to other 'Buy now, pay later' product
providers on the market, and supports instant loan approval in under 60
seconds thanks to Home Credit integration. incorporating digital
technology…

In addition, users also receive special incentives when making payments


with Home PayLater. In particular, users will also receive attractive
incentives from the Home PayLater Day program taking place every
Tuesday on Traveloka.

● Customer Relationship Event

Traveloka conducts events with high incentives to attract new customers and
expand the market. Besides, Traveloka has gratitude events for old
customers to gain loyalty.

- Fly Tet, sale all : The program is organized for the main purpose of
expressing gratitude and meeting the travel needs of customers during
Tet, with great incentives: 5%, 10% and 15% discount each time you
book a flight or book a flight. hotel rooms,...
- Traveloka Priority: It is a loyalty program designed to provide exclusive
services to our loyal users. The higher your Priority Tier, the more benefits
you receive:
III. E-CRM AT TRAVELOKA
Identification of eCRM at Traveloka:

1. User Account Management:


- Traveloka likely has a system for managing user accounts, capturing user preferences,
and storing relevant information for personalized interactions.

2. Booking History and Preferences:


- The eCRM system may track users' booking history, travel preferences, and other
relevant details to offer personalized recommendations and streamline future bookings.

3. Communication Channels:
- Traveloka likely uses eCRM to manage communications with users across various
channels, including email, in-app messages, and possibly social media, to keep users
informed about promotions, bookings, and travel-related updates.

4. Personalized Recommendations:
- The system may provide personalized travel recommendations, promotions, and offers
based on users' past behavior, preferences, and search history.

5. Feedback Collection:
- An eCRM system would likely include mechanisms for collecting user feedback on travel
experiences, accommodations, and overall satisfaction, helping Traveloka to improve its
services.

6. Marketing Automation:
- Traveloka may use eCRM for marketing automation, such as sending targeted emails,
promotions, and advertisements to specific user segments.

7. Integration with Customer Support:


- The eCRM system may be integrated with customer support processes, allowing for a
more seamless resolution of issues, inquiries, and support requests.

8. Data Analytics:
- Traveloka's eCRM likely involves data analytics to gain insights into user behavior,
booking patterns, and the performance of marketing campaigns.

Evaluation of eCRM at Traveloka :

1. Efficiency and User Experience:


- Assess how efficiently the eCRM system contributes to a positive user experience by
streamlining processes, reducing friction in bookings, and providing personalized services.

2. Data Security and Privacy Compliance:


- Evaluate the measures taken to ensure the security and privacy of user data, ensuring
compliance with relevant regulations and building trust among users.
3. Personalization Effectiveness:
- Assess how effectively the eCRM system tailors recommendations, promotions, and
communications to individual user preferences, enhancing overall satisfaction.

4. Integration with Booking Processes:


- Consider how well the eCRM system integrates with Traveloka's overall booking
processes, providing a cohesive and integrated user experience.

5. Customer Feedback Utilization:


- Evaluate how Traveloka uses customer feedback collected through the eCRM system to
make improvements, address issues, and enhance the overall quality of its services.

6. Adaptability and Scalability:


- Assess the adaptability of Traveloka's eCRM system to changing market conditions and
the scalability to handle a growing user base and increasing data volumes.

7. Marketing Campaign Effectiveness:


- Evaluate the effectiveness of marketing campaigns facilitated by the eCRM system,
considering factors such as user engagement, conversion rates, and overall impact on
business objectives.

8. Analytics and Reporting Features:


- Assess the analytics and reporting features within the eCRM system, ensuring that
Traveloka has access to actionable insights for strategic decision-making.

9. User Training and Support:


- Consider the provision of user training and support for employees managing the eCRM
system, ensuring that they can effectively leverage its capabilities.

10. Cost-effectiveness:
- Evaluate the cost-effectiveness of implementing and maintaining the eCRM system,
considering the return on investment in terms of improved customer relationships and
business outcomes.
IV. PLANNING CUSTOMER TARGET OF TRAVELOKA

V. KEY PROGRAM IN E-CRM OF TRAVELOKA

VI. OTHER PROGRAMS IN E-CRM OF TRAVELOKA

VII. ACQUISITION OF NEW CUSTOMERS (4Ps)


1. 4Ps in eCRM
The 4Ps of marketing is a model for enhancing the components of your
"marketing mix" – the way in which you take a new product or service to
market. It helps you to define your marketing options in terms of price,
product, promotion, and place so that your offering meets a specific customer
need or demand.

4Ps marketing
In the eCRM campaign, 4Ps also plays an important role in brand promotion.
By offering methods on prices, products, promotions, and locations, you can
satisfy customers and retain them.
2. Traveloka 4Ps:
➢ Traveloka's distribution strategy: (Place)
“Focus on promoting online development”
According to a report by Google and Temasek, the number of people
using online hotel booking services in Southeast Asia is expected to
double from about 60 million in 2019 to 125 million in 2025. This is a
The growth is very significant and shows the strong development of the
online travel market in this region.

- Along with that, the strong development of OTA (Online Travel Agent)
e-commerce has gradually become a tool to fully support the needs of
Vietnamese tourists. Traveloka has successfully applied this model in
the Asian market before.
- Regarding market growth rate, according to forecasts of the Vietnam
Chamber of Commerce and Industry, the number of online tourists in
Vietnam is expected to reach 24 million by 2025, an increase of 25%
over the year 2020. This number is expected to increase sharply in the
coming time, to be able to serve the Vietnamese market with 77.93
million internet users. Traveloka's marketing strategy fully exploits the
online distribution network in the market. This is quite a fertile market as
domestic and foreign tourism activities are increasingly in demand and
expanding.
- Events of Traveloka and OTAs have contributed to making the domestic
market more vibrant. The top traffic source to traveloka.com is Direct
traffic, driving 49.05% of desktop visits last month, and Organic Search
is the 2nd with 37.19% of traffic. The most underutilized channel is Mail.
Drill down into the main traffic drivers in each channel below
● Typical Traveloka’s distribution channel strategy:
- Book bus tickets on traveloka, travel to all provinces and
cities nationwide:

- Deal with credit card

➢ Traveloka's pricing strategy:


“Competitive prices, diverse payments, 24/24 service.”
- In the Vietnamese market, Traveloka has promoted its
advantages to quickly become the top choice for travel
enthusiasts. Traveloka offers cheap prices without charging a
booking fee, winning customers' hearts by displaying the final
price. All prices listed on the Traveloka app and website are the
final prices to be paid without consumers having to worry about
any additional taxes or fees.
- In Traveloka's marketing strategy, every month the company
regularly launches discount programs from 10% - 30% so that
consumers can use the service at the most preferential prices
and save money.

- Currently, Traveloka is applying many of the most popular payment


methods that many Vietnamese consumers choose: International credit
cards (Visa, MasterCard, JCB), domestic ATM cards with online
payment function. (Internet Banking), bank transfer (Techcombank,
Vietcombank, VietinBank, BIDV, ACB, Sacomabank) and direct
payment at more than 3,000 payment points nationwide (Circle, Family
Mart,...)
● Typical Traveloka’s pricing strategy:
- Reduced ticket prices:

- Submit a review, receive 5,000 VND immediately:

➢ Trveloka’s product strategies:


● Product development also contributes to the company growth
which leads to the increasing profits. Since the beginning of its
launch, Traveloka has always been focusing on their product
development by adding more range of services such as bus and
train ticket reservation, car rental, airport shuttle, Traveloka Eats,
attraction and activities and many more. Traveloka even
introduced a packaged of Flight+Hotel where customer can get
both at a cheaper price. While at first, Traveloka was only a meta
search website and until now it has wide ranges of services to
choose. Customer can purchase any necessary thing that they
need when travelling, such as internet data, car rental, and even
purchase the desired attraction ticket.Any competitor of Traveloka
does not have this much range of services and that makes
Traveloka a leading one stop OTA in Asia. Although the services
have not yet available in other region, currently Traveloka is
developing their services in other region as well.

Traveloka’s Service Development


● Traveloka has launched product strategies to help increase brand recognition
and increase competitive advantage such as:
- Product diversification: Traveloka provides many different types of travel
products, from hotel reservations to flight tickets, from travel experiences to
bus tickets, meeting customer needs from simple to complicated.
Traveloka’s application updating service
- Mobile application development: Traveloka provides mobile applications,
helping customers book hotel rooms, flight tickets and other travel
experiences on their mobile phones.
Re:https://dif7uuh3zqcps.cloudfront.net/wp-content/uploads/sites/
12/2020/06/11081423/Paper-4-Traveloka-Number-One-Online-Travel-Agent-
in-Indonesia.pdf
● Type of Traveloka’s Product strategy:
- Collaboration Product: Traveloka encourages a culture of experimentation
and empowers cross-functional teams to propose and test data-driven
adjustments. Create collaborative products such as air tickets + hotels, ... this
gives customers a choice about product combos.

Traveloka x VietNam airline


- Transportation tickets: Besides products and services such as hotel
reservations, sewing machine tickets, and tours. Traveloka also develops bus
ticket booking products, diversifying products and increasing revenue.
Especially in the Asian market because the demand for travel is huge:

Traveloka’s bus ticket


➢ Traveloka’s promotion strategy:
● Traveloka's promotion strategy is a plan to create or increase demand OTA
product. It outlines the tactics you'll use to raise awareness about your
product and get people interested in buying it. The goal of a promotion
strategy is to introduce potential customers to your product and convince
them to make a purchase.
Traveloka has loyalty programs such as point programs, special offers and
exclusive offers for regular customers. This helps create commitment and
encourage customers to be loyal to Traveloka.
Traveloka often uses media advertising to increase brand awareness and
inform about its travel services. The advertising campaign includes television
commercials, advertisements on websites, newspapers and travel magazines,
and advertisements on social media platforms.
● Types of Traveloka’s promotion strategy:
- Television advisement: brings advantages to word-of-mouth marketing. With
humorous motifs, TVC commercials have attracted the attention of customers.
- Social media: Traveloka promotes its services on Facebook, Instagram,
Youtube, etc. quite aggressively such as livestreaming with celebrities,
minigames giving away vouchers, etc. Traveloka's Facebook advertising
models are quite creative, thorough, and have meaningful campaigns,...
The video is part of the "Family is Tet" campaign organized by Traveloka and
Da Nang Tourism, to pay tribute to the "silent heroes" who temporarily put
aside their personal happiness to create the Tet season for others. Traveloka
sponsored all expenses, bringing their family to this beautiful coastal city.
- Daily discount campaign: following the trend of e-commerce, Traveloka
creates discount programs to attract users on days such as January 1,
February 2,...

Traveloka’s big sale 12/12

- Influencer: Like many other businesses, Travelka cannot forget to apply


Influencer Marketing. They invited famous people to livestream on their
personal Facebook the topic "coming home for Tet" to give vouchers to
customers to increase interaction as well as attract new customers.

Traveloka x Baifern Pimchanok


VIII. RETENTION OF OLD CUSTOMERS AND
DEVELOPMENT OF NEW CUSTOMERS (+3Ps)

For Online Travel Agent (OTA) organizations, acquiring new clients and retaining
existing ones are critical. The goal of customer retention is to retain current clients
coming back to your business's goods or services in the future. Finding and luring
new potential consumers is the process of developing new ones.

For OTA firms, keeping their existing clientele offers the following advantages:
● Boost sales: The majority of consumers prefer to repurchase high-quality
goods from companies they have previously utilized. As a result, maintaining
positive ties with past clients may help you greatly boost your income.
● Save money: Maintaining current consumers will be far less expensive than
acquiring new ones. Additionally, loyal clients are likely to suggest your items
to friends and family, spend a lot, and make regular purchases.
● Self-reflection on the product: Not every company considers mistakes in
the product to identify the quickest fix. You won't start to alter the quality
unless you notice a decline in your clientele and a shift to rivals.
● Boost profits: Generally speaking, repeat buyers are more receptive to used
brands and are less worried about product pricing. As a result, you may boost
earnings by selling additional goods.

Development of new customers brings the following benefits to OTA businesses:


● Expanding the market: Developing new customers helps businesses expand
their market and reach more potential customers.
● Increased revenue: New customers tend to spend more in their first few uses
of your business's products or services.
● Creating upselling/cross-selling opportunities: Developing new customers
helps businesses create upselling/cross-selling opportunities, selling
additional products or services to customers.
https://www.matbao.net/tin-tuc/customer-retention-la-gi-bi-quyet-toi-uu-cho-doanh-
nghiep-134214.html
Therefore, OTA firms' ability to expand sustainably depends on both acquiring new
clients and retaining their current clientele. For OTA firms to optimize revenue and
foster business expansion, they must have a solid plan in place to balance these two
objectives.
The above "Fly Tet, Sale All" program is one of Traveloka's outstanding programs in
retaining old customers and developing new customers. The following is a specific
analysis through 3 main factors, namely People, Physical Evidence, and Process
which are three crucial elements in Marketing Mix 7P
People
Figure: Traveloka’s organizational structure

People are becoming the most significant aspect in marketing strategies as they continually
become more customer-centric. Thorough investigation and evaluation of market data are
crucial. This guarantees whether or not the items and services your target market is looking
for are in demand. The people actively engaged in the marketing process, such as
marketers, salespeople, customer service representatives, and technical personnel, are also
considered to be part of the human aspect in this context.
In Traveloka, they consider the human factor to be the core element and valuable asset of
the company. The company always strives to create the best working environment, where
employees can maximize their abilities. Traveloka owns a team of high-qualified tour guides,
who are young, dynamic and dedicated andalso can speak foreign languages fluently to be
able to adapt with the foreignactive working environment. This has provided tourists with the
best and mostcomfortable experience during their travel or using Travelokas’ service.
During the "Tet Holiday, Sale Ends" campaign at Traveloka. This campaign targets
Vietnamese customers who want to travel and have a spring break during the Lunar New
Year. Therefore, Traveloka focuses on the People factor in the following aspects:
● Price: Traveloka has launched many attractive promotions and discounts to help
customers save on travel costs during Tet, especially Vietnamese customers.
● Flight schedule: Traveloka has provided many options for flight schedules, helping
customers easily find flights that suit their needs.
● Customer service: Traveloka has improved the quality of customer service, helping
customers have a convenient and satisfying shopping experience.
Figure: Data on the number of Traveloka users on Lunar New Year 2023

There are some specific examples of how Traveloka used the People element in the
campaign:
On television: Traveloka has broadcast advertising TVCs with images of families and friends
gathering together during Tet. This evokes feelings of familiarity and closeness, helping
customers have a good impression of the Traveloka brand.
On social networks: Traveloka has organized contests and minigames on social networks to
attract customer participation. This has helped Traveloka reach more potential customers.

Figure: “Bay Tết, Sale hết” on Traveloka Facebook Fanpage


https://www.semrush.com/analytics/overview/?
db=vn&q=traveloka.com&searchType=domain
With influencers: Traveloka has cooperated with influencers to introduce the campaign to a
large audience. This has helped Traveloka increase brand recognition and create a strong
viral effect.

Physical Evidence

Traveloka is Southeast Asia's leading travel platform, providing users access to discover and
purchase a wide range of travel, local services, and financial services products. Traveloka's
comprehensive product portfolio includes transport booking services such as flight tickets,
bus, trains, car rental, airport transfer, as well as access to the largest and widest
accommodation inventory in Southeast Asia, including hotels, apartments, guest houses,
homestays, resorts, and villas.
Currently, Traveloka is present in most Southeast Asian countries, such as Thailand,
Singapore, Malaysia, the Philippines and even Vietnam. With more than 120,000 hotels in
the region and around the world, and more than 100,000 flights across Asia, Europe and
America, Traveloka has also joined hands to offer price policies that are suitable for users'
budgets. In particular, recently, Traveloka has added business class airline tickets for all
customers in Southeast Asia.

https://marketingai.vn/traveloka-va-chien-luoc-marketing-du-lich-tai-tinh-19419089.htm

Figure: Traveloka has a very large position in the Asian market today
The Physical Evidence element of OTA companies is reflected in many aspects, including:
● Website design and layout
Websites are the most direct and important channel for OTA companies likes Traveloka to
interact with customers. Therefore, website design and layout need to be carefully invested
to create a good impression and attract customers.

Figure: Traveloka's website interface


Traveloka website use simple, modern, easy-to-use designs with clear, scientific layouts.
● Image and video quality
Images and videos are important visual elements that help customers visualize the products
and services of OTA companies.
Figure: “Fly Tet, Sale All” image in Traveloka website
● Features and amenities
Traveloka, a leading Southeast Asian online travel booking platform, offers a wide range of
features and amenities to make their customer travel planning smooth and enjoyable
Flights: Search for flights from over 200 airlines across 300,000 routes. Filter by price,
duration, stopovers, airlines, and more. Book one-way, round-trip, or multi-city flights.

Figure: Traveloka Flight service


Hotels: Find over 1 million hotels, resorts, villas, and other accommodation options
worldwide. Use filters like price range, star rating, amenities, and location to narrow down
your choices.
Activities and Tours: Discover exciting things to do at their customer destination, from
sightseeing tours and cultural experiences to theme park tickets and cooking classes.
Figure: Traveloka Activities and Tour service
Trains and Buses: Book train and bus tickets for convenient and affordable travel within
Southeast Asia.
In addition, Traveloka offer their customer various of convinience and flexibility such as
Flight + Hotel Packages: Combine flight and hotel bookings for a discounted rate and
simplified planning.
Easy Reschedule: Change your flight dates with Traveloka’s Easy Reschedule feature for
added flexibility.
24/7 Customer Support: Get help anytime with Traveloka’s multilingual customer support
team.
Secure Payments: Pay securely with multiple payment options, including credit cards, debit
cards, and online bank transfers.
Downloadable Travel Vouchers: Easily access your booking confirmation and manage your
trip on the go with downloadable travel vouchers.

Figure: Traveloka’s email service


Figure: Certification of Traveloka's Website information in Vietnam

Figure: Traveloka Support Service


Process
In marketing, process is crucial to establishing and preserving consumer happiness and
trust. Businesses who use an efficient marketing strategy will benefit from:
https://limoseo.vn/process-trong-marketing-la-gi/
● Make a unique impression and gain an edge over rivals.
● Reduce expenses and boost productivity by putting marketing concepts into practice.
● Accept and meet the needs, desires, and expectations of your customers.
● Increase brand loyalty and consumer engagement.
● Encourage favorable word-of-mouth and product and service dissemination
As the top travel platform in South Asia for a considerable amount of time, Traveloka has set
up extremely "standard" procedures for their business to give the guidelines that staff
members apply and follow. As a matter of fact, Vietravel has included the subsequent
procedure in their functioning.
https://www.studocu.com/en-us/document/dai-hoc-kinh-te-quoc-dan/marketing-essential/7p-
marketing-mix-of-vietravel-hanoi-red-tour/25100156?origin=home-recent-2

Figure: Traveloka’s operating process


This has made the operation's processes more polished and efficient. Customers benefit
from it as well since it takes care of any issues or recommendations they may have had
regarding the order services. There are some outstanding Traveloka’s services that we can
clearly see their operating process

The Process of Booking a Flight


Step 1: On the Traveloka homepage, tap Flights. Fill in your origin, destination, date of
travel, number of passengers, and seat class on the search box, and click Search.
Step 2: Choose the flight that suits your preference and click Select.
Step 3: Fill in your Contact Details and Traveler Details. Please make sure that you
have entered the correct names and details according to your travel document (KTP
or passport). Leave out any punctuation marks in your name.
Scroll down to purchase add-ons you may need, such as extra baggage allowance,
seat selection, in-flight meals, and insurance, then tap Continue. Confirm that your
booking details are correct, and click Yes, Continue to proceed to payment.
Step 4: Choose the payment method you prefer and then complete the payment. Please
make sure that you pay the correct amount and that you make your payment before the time
limit expires, otherwise you will have to repeat the booking process.
https://www.traveloka.com/en-vn/help/flight/flight-general-information/flight-booking/booking-
your-flight/how-do-i-book-a-flight-through-traveloka
Investing in and developing the Process element is one of the key strategies that has helped
Traveloka improve service quality and provide the best experience for customers.
●Traveloka uses artificial intelligence (AI) technology to optimize the search and comparison
process. This helps customers find the right product/service for their needs and budget.
●Traveloka offers quick and convenient booking services on multiple devices, including
computers, mobile phones, and tablets. This allows customers to book at any time,
anywhere.
●Traveloka has a flexible cancellation/refund policy that allows customers to easily adjust
their travel schedule. This reflects Traveloka's understanding and concern for customers.
●Traveloka offers 24/7 customer support, allowing customers to answer questions and
resolve issues that arise during the booking and use of travel products/services. This
reflects Traveloka's commitment to providing the best experience for customers.

IX. CUSTOMER VALUE / EXPERIENCE


1. The quality of your product or service:
With more than 10 years of operation in the travel industry, Traveloka is trusted by more
than 55 million customers; especially Southeast Asia.
Traveloka constantly improves and develops. Up to now, Traveloka has achieved many
significant achievements, including 2 awards: Online Hotel Booking and Online Travel
Agency at the Top Brand Awards in September 2016 with TBI (Top Brand Index) scores of
74.8% and 59.6% respectively. In particular, Traveloka, with the above breakthrough, was
fortunate to become the first Asian start-up to receive Series A investment fund from Global
Founders Capital.
(https://congly.vn/tai-sao-dat-phong-khach-san-tren-traveloka-duoc-du-khach-lua-chon-
hang-dau-199321.htm)
https://www.traveloka.com/en-id/explore/news/traveloka-has-won-two-categories-in-
top-brand-award-for-the-second-year-running/63394

figure: Dannis Muhammad, Head of marketing Traveloka receives Top Brand Award
2016
Furthermore, Traveloka always brings the best options to customers when regularly
promoting at cheap, highly competitive prices in the market. At the same time, Traveloka
constantly innovates, upgrades applications and updates supplementing business class
airline tickets for customers in Southeast Asia.
In the Vietnamese market, Traveloka has promoted its advantages to quickly become the
top choice for travel enthusiasts. Traveloka offers cheap prices without charging a booking
fee, winning customers' hearts by displaying the final price. Every month, Traveloka also
regularly conducts discount programs ranging from 10% - 30% to reduce the burden of
airfare and hotel room costs and attract many new customers. (https://duavang.net/chien-
luoc-marketing-cua-traveloka/ )

Traveloka optimizes the marketing process to attract customers to experience through the
following platforms:
● Traditional marketing: Traveloka's advertising banners appear on roads, elevators,...
to impress customers, every time they need to travel or travel, Traveloka will be an
influential choice.

● Television advertising: Traveloka combined with the reality show Running man
Vietnam, which has a viewership of up to millions, attracting a lot of audience
attention.

● Social media: Strengthen activities to promote service images through Facebook,


Instagram,...
2. Traveloka’s ability to provide a better offering than competitors:
One of the superior features that always scores plus points in the eyes of users as well as
high ratings is booking last-minute hotel rooms for impromptu trips or unexpected business
trips at extremely reasonable prices, lower than average. usually and even if you are lucky
you can get a strong discount of up to 50%.

Recommended travel combos: Combo includes 1 air ticket and hotel room at a more
economical price than buying separately.
3. The customer experience:
The technology platform is fast, simple, easy to use, improved regularly, taking advantage of
online platforms, digital technology and developing metadata platforms. Traveloka's biggest
advantage is its superior technology and smart algorithms that help filter and provide the
fastest results from a massive database of more than 300,000 flight routes, more than 200
airlines, more than 1 million hotels and other types of accommodation partners around the
world. The entire booking process takes just three steps and 60 seconds to complete
https://www.traveloka.com/vi-vn/explore/tips/ly-do-nen-chon-traveloka-acc/255453

Cooperation with credit companies creates opportunities for regular, high discounts for
services and payments on Traveloka's platforms.

Provide complete search results for hotels and airline tickets: On the Traveloka app, the
listed prices are always clear, all prices on the website or app are final, with no hidden costs,
as well as not changing the price during the payment process, always brings great trust to
customers
Diverse payment methods, many options: Traveloka is applying many of the most popular
payment methods that many Vietnamese consumers choose: International credit cards
(Visa, MasterCard, JCB), domestic ATM cards with online payment function. (Internet
Banking), bank transfer (Techcombank, Vietcombank, VietinBank, BIDV, ACB,
Sacomabank) and direct payment at more than 3,000 payment points across the country
(Circle, Family Mart,...).
4. The quality of customer service
Complaining or consulting with Traveloka is quite friendly and quick. The entire content of
the conversation is sent to the subscriber's email for convenience in looking up and
complaining about information when needed. Furthermore, well-trained, professional, and
experienced consultants are always enthusiastic to answer all problems that users are
facing.
Listen to feedback, complaints and comments from customers experiencing the service to
maximally overcome the problems that Traveloka has been encountering, receiving many
positive feedback from customers.

(Hình appstore)

X. KPI OF E-CRM PLANNING


1. Vietnam tourism situation 2023:
Mr. Caesar Indra, President of Traveloka, said that cultural tourism in Vietnam will explode in
2024, and international tourism will continue to recover at a rapid pace. In the first half of
2023, our internal data has shown a significant increase in international tourist trips to
Vietnam, up nearly 90% compared to the same period in 2022. Touristsm arrivals from
China, Thailand, and Indonesia also showed remarkable growth.
According to data from the Traveloka platform, in Vietnam, the destinations that attract the
most international visitors are Hanoi, Ho Chi Minh City, Quang Ninh and Ninh Binh. In the
first half of 2023, Hanoi alone welcomed more than 2 million international visitors, while Ho
Chi Minh City also welcomed more than 1.9 million foreign visitors.
Ms. Shirley Lesmana, Marketing Director of Traveloka, said that the positive results from this
year's EPIC Sale program show that the EPIC Sale 2023 initiative has been well received
and responded positively by Vietnamese users. This year's EPIC Sale program recognized
that hotel partners and Xperience (an online travel platform in Southeast Asia) both achieved
a 3-fold increase in service bookings compared to the previous month.
“Traveloka will continue to introduce new initiatives, thereby providing travel solutions at the
most favorable and suitable prices for consumers. In addition, we are always ready to
cooperate with many parties to realize digital transformation in the travel industry, bringing
benefits to all parties including users, ecosystem partners and countries where Traveloka is
located representative office", Ms. Shirley Lesmana emphasized.

2. Traveloka's target plan in the near future:


Traveloka has quite positive predictions for the Vietnamese tourism market in the near
future. With the country's economy recovering from the impact of the pandemic, it is
predicted that Vietnamese people's domestic and international travel needs will increase and
diversify further in the next five years. The emergence of new types of tourism, such as
green tourism, sustainable tourism, digital tourism, close-to-home tourism, local experiences
and financial services will become increasingly important hen the tourism industry fully
recovers, it will play a key role in shaping the tourism landscape in the near future.
Traveloka aims for sustainable tourism and seamless experiences for future travelers.
Through its partnership with the Global Sustainable Tourism Council (GSTC), Traveloka is
committed to sponsoring a series of training courses on sustainable tourism principles and
standards led by GSTC. They have conducted training programs with their hotel partners in
Indonesia. After implementing domestic programs, Mr. Indra said, Traveloka will supply in
regional markets, starting with Vietnam, Malaysia and Thailand this year. At the same time, it
will expand to other key markets in the region.
Once hotels complete the program and are certified, Traveloka users can view and select
sustainable hotels. Currently, Traveloka only lists hotels in Indonesia, with 9 hotels receiving
GSTC certification
In addition to focusing on sustainability, Traveloka also looks forward to exploring
opportunities to collaborate with the Vietnamese government, industry stakeholders and
local partners to support the development of the tourism industry. Traveloka will continuously
strive to provide competitive and comprehensive travel products to meet the needs of
tourists.

CONCLUSION

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