Priceline Singapore is still alive and claiming 10% growth

The headline above does not make for that interesting a read, unless I tell you more of the background. First to the story and then to the background. I came across an piece on the Nanyang 100 website with an announcement from Pauline Chian - a manager at Priceline Singapore - that sales are up 10% at Priceline Singapore (despite the recession). She attributed the success to (primarily) the absence of a booking fee on flights and (less importantly) the name your own price model.

The reason I found this interesting is that it is the first news report I have come across in years referring to Priceline Asia. Priceline Aisa is a not a wholly owned part of Priceline Incorporate (PCLN). It is a joint venture between PCLN and Hutchison-Whampoa - with Hutch as the major partner. Hutch is Asia's biggest company - into everything from property, ports and telecommunications. Up until 2006 Hutch was also the largest shareholder in PCLN. The JV is not related to Priceline's other businesses in Asia (Agoda and Booking.com offices).

Formed in 2001, the JV spent a lot of money in the early days on staff and marketing. A lot of the marketing was in kind with related Hutch companies providing in-store and media contra marketing. A large investment, lots of momentum, unmatchable buzz .....and near zero results. The business soon had to reduce staff, dramatically scale back marketing and bring in other products in addition to the Name Your Own Price model. The Asian market place simply did not take to the NYOP model. One insider told me that they believed that the discounts were simply not enough. That campaigns advising consumers of a potential 20% saving for NYOP did not provide enough of an incentive for the consumer to risk opacity in suppliers in Asia. Another theory was that NYOP needs a very large domestic market with relative similarity between air suppliers and star rating certainty in hotels - factors which do not exist in Hong Kong, Singapore and Taiwan. Either way the business fell of the radar screen of observers like me and travel suppliers and customers that I spoke with.

I can't recall the last time I saw and announcement or marketing piece from Priceline Asia. I haven't even heard them mentioned in those now ubiquitous press releases from meta-search companies announcing a distribution deal with an intemediary like they were M&A deals.

Thus my curiosity is piqued. If Priceline Asia is growing and starting to make industry noise again, then are they trying to make a come back? Or is it just that by adding more and more news feeds to my reader I am simply coming across more stories that I used too? Any Singapore, Hong Kong or Taiwan based readers able to tell me if they have been hearing any Priceline Asia noise recently?

Podcast interview with the BOOT at "Is it possible to make money online"

Brenden Wood of "Is it possible to make money online" has recorded a 12 minuted interview with me about blogging and making money from blog. If you are interested in having a listen - the interview is called "My Blog is My Best Branding Tool".

Hilton buys Crown Plaza (according to Google)

Industry friend sent me a great screenshot of a Google search for the term"Crowne Plaza Cambridge". Google mapping or indexing pushed the result to www.hilton.com. Ooops. Unfortunately I can't replicate the result as I am an Australian IP address and my friend was in the UK but here is the screen shot.

Update - Xotels boss Patrick Landam has solved the mystery. The Cowne Plaza Boston/Woburn was rebranded the Hilton Boston/Woburn after a $10mm refurb in 2008. Shame that Patrick's good research killed a great Google conspiracy story and shown me up to be nothting but a haphazard blogger :).

Seat Review - Qantas international economy class

Recently I flew economy class on Qantas from Sydney to Singapore and back. It was the first time I had flown long haul economy in about 5 years. I was nervous but by keeping the flights to single legs and flying during the day I found it manageable. The Qantas economy experience was better than I expected with some pleasant surprises but still some disappointments in service delivery and entertainment. The service elements drags down an otherwise great experience.



The BOOT rating for Qantas International Economy is a 3.5 out of six or "Good". Here is the detailed review (Details and scoring system for airline seat reviews)

Getting on Board	Score 0.5
It is hard to give a fair measure of the economy class boarding experience as my Qantas frequent flyer platinum status means I can check-in via the first class window and board early. That said the people around me appeared to flow quickly. Sure we took off late - but that is now a given at Sydney airport
The Seat	Score 0.5
Snaps to QF for giving me the best economy seat they could (exit, aisle, left hand side). The seat itself is comfortable (standard 31'' pitch). The recline is standard economy with the adjustable headrest being a real bonus. The controls for the video system are in an odd spot. They are at knee height meaning each time I moved while watching a movie I bumped the control and interrupted the film. Eventually I needed to take it out of the holder and hung it over the side of the seat.
The Service	Score 0
Qantas runs a process culture at present. Meaning that staff are well versed in processing a customer through the stages of each flight. But they are missing the important part of customer service - meeting the unexpected needs of the consumer. Great customer service comes with a customer is surprised by how quickly their needs are anticipated and met. During the flight I made a number of requests that were ignored or took too long to fulfil such as request for drinks outside of food service and requests for another pillow. Am hoping to find out more about planned improvements here soon.
The Food	Score 1.0
Food is one of Qantas' consistent strong points. The meals were tasty with fun touches in desert and snacks
The Entertainment	Score 0.5
I come to any review of Qantas inflight entertainment with a bias drawn from continued system failure and apparent ambivalence from Qantas (previous stories here). On this occasion the entertainment system worked and there was a fine selection of movies but there were sill three annoying features: 1 The placement of the control (see above); 2. The time to activation. Qantas seem to delight in waiting as long as possible before turning on the service and playing compulsory videos to further delay the time before I can press play and zone out. Competitors in this space make videos available as soon as the seatbelt sign is off. On QF it can take as much as 20 mins past that point; and 3 Limited TV shows. Competitors such as Cathay and Virgin Atlantic are offering whole seasons of shows (watched a whole season of '24' on a recent CX flight). These are missing from Qantas. But it was working so can't complain (too much)
The BOOT factor	Score 1.0
Two things pleasantly surprised me about the flight 1. A trolley service after the main meal with hot chocolate and peppermint tea came as a complete and very pleasant surprise. I would not have thought to ask for peppermint tea but it hit the spot on refreshment mid flight 2. A trip planner leaflet was handed out listing when during the flight things would occur such as meal service. This little thing (which I've not seen before) made the flight more enjoyable as it took out guess work from the flight
Final Score	3.5 - Good Seat

Details and scoring system for airline seat reviews



thanks to fboosman on flickr for the photo

Airline Seat Reviews - New BOOT segment

New segment here at the BOOT. Last year I flew more miles than any time in my life. This year does not look as frantic but I still feel there is a lot of ranting and boot putting in to go with airline seats. I also have found myself flying international economy again giving me another perspective to share with readers. I will be rating seats based on five categories

1. The getting on board - covering check in and boarding

2. The Seat - facilities, comfort etc

3. The Food - quality, quantity, timing etc

4. The Service - how they treat me

5. The Entertainment - how they keep me entertained

6. BOOT factor - is there something special or notable about the flight

When someone asks me a question about a seat on a flight they don't want an answer that is a score out of ten. Instead they want to know if the seat on a flight is either "not good", "good enough" or "great". Therefore this will be my (simplified) scoring system. I will give each category either a score of zero (not good enough), half (good enough) or one (great). A total of less than 3 means a final score of not good enough, between 3 and 4.5 means good and 5 or more means great. Critically the scoring will be in reference to price/expectation. Therefore it is possible for an economy seat to get a score of great and a business class seat a score of good. Enough with the preamble - let's get to the reviews.

Reviews so far

1. Qantas international economy seat review

2. Singapore international business class (Raffles Class) seat review (inc A380)

3. British Airways Club World long haul

4. United Airlines Business Class

5. Japan Airlines International Business Class

6. Qantas international premium economy (A380)

7. Virgin Atlantic Upper Class

8. British Airways World Traveller Plus

9. Cathay Pacific Business Class

10. Air New Zealand Economy Class (trans-tasman)

11. Virgin Atlantic Premium Economy

12. Qantas Premium Economy (not A380)

13. Pacific Blue International Economy Class (Virgin Australia)

14. Qantas International Economy A380
-sel posted this great photo on flickr

Travelzoo bought and has now relaunched Fly.com - looks familiar

Email/Deals marketing firm Travelzoo (TZOO) bought the domain name Fly.com for US$1.76mm a week or so ago (more over at Travolution). Today I saw a story announcing that Fly.com has been relaunched as a meta-search beta. New model for them. I wonder where they got their inspiration. Here is a screenshot of the new Fly.com website. Free 1 year subscription to the BOOT for anyone who can tell me which site the Fly.com website looks the most like. Any guesses? There is a hint below.
Fly.com



Hint



Update - just saw a post from Tom Botts of Hudson Crossing where he reviews some features from Fly.com

Alfonso Castellano Interview - on TripSay, content models and staying focused (part 2)

This is part two of my interview with TripSay’s new board member Alfonso Castellano. In part one of the interview Castellano and I talked through the online industry in general. We covered topics like the pressures confronting the OTAs (complexity, margin pressure, marketing costs), meta-search and the impacts of the global financial crisis (GFC).

In this part we talked about TripSay and the travel content model. Castellano believes that the next “ten year space” for travel is the 90%+ of the travel experience not captured by the OTAs – the discover, search, research and decision process that goes on before the trip and the collaboration, sharing and recording that goes on after the adventure.

His view is that TripSay will focus on the planning and sharing element using the traveller’s own community as the best resource.

Balancing UGC and Editorial Content

A challenge we discussed is finding the right balance between community generated content (UGC) and editorial content (see earlier discussions here and here). TripSay’s approach to this is to work with partners that have editorial content and combine with the TripSay community content. This does not mean doing a licence deal with a Frommers or Lonely Planet to white label the content on TripSay. Instead they propose to provide the TripSay as a white label community system for a travel company. TripSay provides the community content and platform, the distribution partner provides their traffic and editorial content. I like this idea. Giving travel companies like destination sites, tourism boards, tour operators etc to use TripSay in a software-as-a-service style model for launching a community structure. I see how this works towards a good balance between UGC and editorial content.

Monetising Travel Content Traffic

Castellano and I agree that if you can build travel content traffic (and make it sticky) then the advertising and paid traffic revenue will come. This places the monetisation pressure on the TripSay marketing team. On traffic acquisition, Castellano admitted that TripSay does not have a lot of money to buy traffic. Therefore the traffic plan combines with the biz development strategy for content acquisition. Using the partner deals for content generation to also drive traffic to TripSay. This will be driven through the acquisition of online affiliate partners but also through a push to sign up travel agents into a industry based community.

Focus and product development

The final challenge we discussed – which impacts all startups – is keeping the business focused on the product pipelines. In effect channelling the enthusiasm within the business. The GFC plays are role here too according to Castellano. Keeping an enthused entrepreneurial team focused on products that can make an immediate impact. Their hope is that they can do this faster and more nimbly than the larger companies.

I agree with these strategies but the main downside is that it places an involved (and complicated) biz dev obligation on TripSay. From my rules for content companies – this will take time. They will need great sales people and patience (read financial backing).

The last part that interested me was when asked about competitors he mentioned that the only other major player in the same space as TripSay is Travbuddy. I do not yet have my head around the distinctions between (or if there are distinctions between) the different travel content, review, planning, community etc sites. This came up in a comment in recent Tripwolf fund raising post. There clearly is some sort of categorisation between these sites but I have not figured it out yet. It is important to have categorisation because that helps with the development of competitor fighting and customer acquiring strategies. But done badly, categorisation can lead to the wrong focus – witness the distortions in parts of the online hotel sector in creating distinctions between last minute, full service, retail model, merchant model,etc when all consumers care about is booking a room. What do you think?