After foraying into Latin America and China, EB2 eyes the Middle East Interview with Stephen Bartlett Bragg, co-founder and executive director, EB2 International |
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EB2 International, a specialist provider of end-to-end e-Commerce software and services including Internet booking systems exclusively to the airline industry, has made a couple of key announcements pertaining to expansion of its operations this year. It was in May when EB2 decided to take a plunge in Latin America by opening an office in Buenos Aires. Three months later, it forayed into China. The expansion comes at a stage when lots of airlines are in the midst of actively developing and managing both PPC and SEO strategies, setting up new booking engines and re-developing their websites, bringing transparency in pricing and a lot more. On its part, EB2 recently signed a multiple year contract with Grupo SATA for its Internet Booking System. The group comprises SATA Air Açores, SATA Internacional, Azores Express and SATA Express. So what prompted Grupo SATA to go for such initiative? “We identified the need to upgrade our current booking system and after an extensive evaluation process EB2 was selected as the partner of choice for SATA. The team at EB2 specialize in solely providing market leading e-commerce solutions to airlines and were clearly able to understand our needs and those of online customers,” said Marco Silva, E-Business Manager, Grupo SATA. |
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On the other hand, EB2 International acknowledges that increasingly airlines “are recognizing the unique blend of technology, experience and expertise that EB2 provides it clients”. To get more information about EB2’s expansion plans and industry trends, Airline Information’s Ritesh Gupta spoke to Stephen Bartlett Bragg, co-founder and executive director, EB2 International. The experienced airline industry professional is one of the speakers for the forthcoming Airline Information’s eConference 2006, scheduled to take place in Muscat on November 8 and 9. Here is what Mr. Bartlett Bragg had to say:
Ritesh Gupta: EB2 has opened offices in Latin America and China this year. How do you assess the timing of expansion into these markets? Stephen Bartlett Bragg: We decided to expand into these two regions based on our success in Europe and the South Pacific, coupled with recognition that the online market in these regions is maturing rapidly and ready for more comprehensive and sophisticated systems coupled with strategic expertise.
Ritesh Gupta: What’s your viewpoint on the usage of the online medium as a distribution vehicle currently in the Middle East? What are your plans for this region? Stephen Bartlett Bragg: It is progressing quite strongly, largely being driven on the back of the rapid expansion of airlines in the region, airlines that are growing at a pace not seen in other parts of the world. We are exploring the opportunities to work with like-minded technology companies and partners in the Middle East.
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Ritesh Gupta: Instead of a “one-size-fits-all” solution, EB2 says the Internet and e-Commerce creates a “market of one” - an ideal opportunity to appeal to individual needs and value perceptions. What do you make of airlines’ level of understanding and approach towards the same currently? Stephen Bartlett Bragg: I think airlines understand this however, typically their immediate needs tend to capture their focus. Consequently, very few airlines have implemented a strategy to reach this point online. Additionally and for example, our experience has been that each of our airline clients needs differ, as do the needs of their online customers, and this can also vary by market or region. Hence to really make a difference and achieve or exceed their online goals airlines need a system tightly synchronized with their business strategy. The next phase is to make use of the valuable link airlines now have with their online customers – we term this the relational phase and is largely untapped at this stage.
Ritesh Gupta: Can you share some trends related to airline’s deploying new booking engines and simplifying their fare structure? Stephen Bartlett Bragg: (I feel they should) Be bold and confident that the new mix of fares and fare structures can yield a better net outcome. It’s an important element of online success supported by the flexibility, reach, and speed to market - or take out of market- that the Internet provides!
Ritesh Gupta: Most airlines now have become online retailers selling services other than just flights e.g. Insurance etc. Where do you see such initiatives headed? Stephen Bartlett Bragg: At EB2, we believe that there are numerous further opportunities that extend right through the airport, in-flight and post trip experiences that can be capitalized through an airlines website.
Ritesh Gupta: What would you recommend for increasing and measuring online booking engine conversion rates? Stephen Bartlett Bragg: Key elements to increasing online booking conversion rates must include delivering transparency and making it easy for their customers to find and quickly make a booking that best meets their individual needs. Measuring in many respects is the easier part with many tools available today to track online booking activities.
Ritesh Gupta: Can you site an example from the complex situation in today’s environment where QuickTRIP helped in increasing conversion rates? Stephen Bartlett Bragg: One example was deploying the ability for online customers to book online through the airline's website and pay through an ATM. This has had a dramatic effect on conversion rates for this customer in a market not comfortable with online credit card payment.
Ritesh Gupta: How do you foresee EB2’s offerings related to shopping experiences progressing? What have you learned in this arena while interacting with clients? Stephen Bartlett Bragg: I guess we see online shopping as no different really to retailing on the high street, it’s just a different shop window. This alone provides never ending opportunities to improve shopping promotion, capabilities and processes.
Ritesh Gupta: It is felt by many that LCC’s are relatively more creative with their distribution, while legacy carriers have been quite slow in driving sales online. What would be your take on this? Stephen Bartlett Bragg: This is an interesting question, in our minds whilst the legacy carriers may have adopted a more cautious approach we see increasing convergence in their strategies between these two groups. Importantly, we see legacy carriers with no less belief in online distribution; it has been more about how to get there whilst maintaining the status quo with other dynamics, as opposed to do we need it?
Ritesh Gupta: As a co-founder and executive director, where do you foresee your company headed in the next year or so? Stephen Bartlett Bragg: Our initial focus has largely been helping airlines deploy effective online solutions and strategies to achieve their online transactional goals, however, we see the move to a relational phase as critical to fully optimising the online channel and this alone provides tremendous opportunities for companies such as EB2.
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