Traveloka Group 1
Traveloka Group 1
Traveloka Group 1
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.
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.
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.
● 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.
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.
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.
Influencer
marketing
2. Traveloka advantages
● Application of digital technology
● Online valuation
● 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…
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:
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.
8. Data Analytics:
- Traveloka's eCRM likely involves data analytics to gain insights into user behavior,
booking patterns, and the performance of marketing campaigns.
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
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:
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.
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.
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: 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.
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)
CONCLUSION