Central & Eastern Europe SpecialA maturing web-channel, emerging economic realities and new distribution technologies continue to introduce new paradigms in travel distribution and consumer behaviour.

Published: 11 Nov 2008

Central & Eastern Europe Special

A maturing web-channel, emerging economic realities and new distribution technologies continue to introduce new paradigms in travel distribution and consumer behaviour.

Most profitable channels in some cases can be about the lowest cost and in others about the highest yield.

Commenting on whether both direct and indirect channels are consumer requisites, and strategies for both should be aligned to maximise value, Evaldas Tylas, managing director, Interneto Partneris says if one of the channels would not be creating value for customers, it would simply disappear.

"Each of them has their advantages and disadvantages, is better suited in some cases or for some customer segments. Only by properly aligning direct distribution with distribution via intermediaries, it is possible to use advantages of both channels and only this way you can create the maximum value both for end customers and for suppliers," said Tylas, who is scheduled to speak during Travel Distribution Central & Eastern Europe 2008 Conference, to be held in Prague on November 19-20.

It is being said that online is a maturing channel as the realities of bricks and mortar catch up with online.

According to Tylas, it is a natural direction in the market development and it is on the expected lines.

"It is a challenge for all the players in the market to find their niche, create better services and products for the end customers," said Tylas.

Specifically on Eastern Europe, Tylas categorically says the region is definitely relevant for web sales today.

"We are a real life example of this. Nowadays, Internet penetration is sufficient for successful e-commerce, thus the key issues are offering the right products or services and doing this in the right way, by employing easy to understand and intuitive interfaces, having simple and understandable procedures. Besides that, it is crucial to present customer an easy and accessible way of payment, as in this region payment cards that are suitable for Internet payments are not that widely spread," Tylas told EyeforTravel.com's Ritesh Gupta.

On direct online distribution strategy in this region, Tylas said, "It is a fact that everybody now tries to sell their goods or services directly to customers, expecting to decrease costs of distribution this way. On one hand, it is great that end customers can be offered lower prices by cutting distribution costs. Furthermore, clients are being introduced to e-commerce, getting used to the concept of purchasing online. On the other hand, we strongly believe that hotels and airlines, as well as other businesses, should focus and be experts in their core businesses rather than specialists of e-commerce, thus often it is difficult for them to sell online efficiently."

In terms of investments in Web 2.0, OTA XML interfaces and mobile technologies in the CEE region, Tylas mentioned that even though there are a number of players who use solutions that are technologically outdated, there are companies that employ newest ideas and solutions this way going together with the global trends.

"However, I must note that I have heard little about mobile solutions for the online travel market in CEE," said Tylas.

One area, which requires attention, is the payment method for driving e-commerce travel pie in this region.

"Regarding the hurdles, I would point out that when it comes to payment for the goods and services, there is a low percentage of payments by credit card, these payments are costly, and using wired bank transfer creates its own problems."

Travel Distribution Central & Eastern Europe 2008 Conference

For more information about Travel Distribution Central & Eastern Europe 2008 Conference, to be held in Prague on November 19-20, click here: http://events.eyefortravel.com/tdcee/agenda.asp

Or contact:

Patrycja Bobek, Conference Director
Email: patb@eyefortravel.com
Tel: +44 (0) 207 375 7216