Being all things to all travellers - men, women, children, families, families with pets and so on – who have more choice than ever, was never going to be easy. But today more than ever before, online travel agents acknowledge the need for a sharper business proposition.

Take the case of lastminute.com. It is focusing all its energy on strengthening its position in last-minute travel.

“Consumers will always look at multiple sites, so our focus is just being the best in the last-minute space,” says Matthew Crummack, president at lastminute.com.

According to the company, cultural changes and its own booking trends indicate that the last-minute booking window is more relevant than ever. So recently the company unveiled an ad campaign to highlight the brand’s last-minute identity. lastminute.com already had the Price Match Guarantee and sub brands such as Top Secret Hotels to drive bookings.

It is no longer enough for OTAs to cover everything in the market place. They must also provide a carefully curated travel offer that is useful for their customers. To this end,OTAs must be clear about their brand’s USP and ensure this informs and directs thee overall business offer.

“Getting the brand or business piece right will not only give customers a reason to book with an OTA, if it taps into the current zeitgeist, it will also provide a travel driver,” says Crummack. He adds that demand for last-minute booking has been driven by technology and influenced by the economy; customers are more risk averse when planning their spending and remain highly deal-driven. For Crummack then, the opportunity for the company to build its authority in last-minute travel space is clearer than ever. Why? Because 58% of lastminute.com’s hotel rooms are booked no more than five hours before check-in (assuming 7pm is the average check-in time), he says.

In conversation with EyeforTravel.com, Ritesh Gupta heard Crummack’s views on differentiation, the multi-device customer and the rapidly evolving booking funnel.

EFT: How is the increasing popularity of mobile devices changing the way consumers purchase?

MC: In terms of purchasing habits, we’re seeing a significant shift to mobile devices (in particular smartphones), with customers predominantly using them for same day or next day bookings, as well as for shorter stays. With phones, we see far less comparison-shopping and more repeat purchase behaviour - phone bookers are also more frequent bookers. This is driven by the quality and depth of last-minute deals we offer through mobile, meaning customers know they can decide to book on the day and get a great deal.

Our checkout process is also evolving to complement this, giving existing customers an even shorter booking path, which allows them to save more time. We are also offering full offline integration through customer services – allowing for customers who want to use smartphones in their search but complete the booking with our call centre.

EFT: The growth of tablets may well be the key driver for hotel booking growth rather than smartphones. What’s your opinion about this?

MC: Tablets are taking a larger share of the browse-and-book segment and are increasingly displacing the desktop as a more convenient way to book hotels, especially in the evenings and at weekends. But this needs to be viewed in context as we’re seeing smartphones driving even greater growth. As customers increasingly take advantage of mobile technology to book last minute, we can offer them an unmatched range of deals and offers in that booking window. A virtuous circle is created. Our mobile technology is enabling customers to book more and more at the last minute. This then feeds our supply, as hoteliers know with even more confidence that we will sell rooms for them which in turn complements hoteliers own dot.com profile, so is good incremental business.

Perhaps the biggest opportunity for us, and one we’re making significant investment in, is that consumers today will switch between devices throughout the day- on average up to 27 times. They will start their booking journey on one device and complete it on another. Our whole product and platform is evolving to cater for this multi-device customer, making sure each of our device channels works brilliantly alone and together.

EFT: OTAs, suppliers and meta-search firms are all targeting travellers today. How are OTAs shaping in this crowded space?

MC: Where OTAs offer a targeted and differentiated product and experience, we believe that they will justify traffic and conversion strength with the customer. Where there is a weak or generic message or experience, OTAs risk competing with the meta-channel without necessarily the same toolkit. It comes back to generating a strong brand, strong value proposition and a valid and relevant reason to book.

EFT: In 2013, how can OTAs stand out in the distribution space?

MC: I believe that can stand out in the following ways.

·         With a clear and differentiated proposition so they are not just competing over price. lastminute.com has a strong last-minute proposition which is backed up by how customers actually use our site – 60% of our sales are ‘last minute’ (lastminute.com defines this as no more than 21 days between buying and doing)

·          Personalisation and relevance - using knowledge of the customer to offer less choice but more relevant options for their particular, unique needs

·          Content curation – presenting products which are clearly suited to customer needs

·          Service and trust – owning the customer experience end-to-end and ensuring they feel looked after

EFT: When it comes to how OTAs are using content and technology what can we expect to see in the future? And can you reflect on lastminute.com’s technology and product improvements?

MC: There will be a greater focus on creating an omni-channel experience for customers. Increasingly, customers need to be able to move seamlessly from platform to platform. They want to be able to do initial research on their smartphones, pick this back up on the desktop, share their findings on social media and place their final booking with our call centre.

Recent changes and future plans for our technology are being driven by our customers’ purchasing behaviour- they demand that our platforms deliver speed and greater agility. Our investment and strong progress over the last 12 months reflect this.