How Does Tripit Create Value for the Customer?

...

the travel industry as most customers share their opinions and experiences of their trip through social media. The fact that TripIt introduced ‘my friends’, a feature that allows customers to invite their friends to view their pictures and other posted content shows that they are taking advantage of etc

This type of social networking is extremely cost effective as it relies on word of mouth from customers, as opposed to paid advertisements.  creates potential to attract users

In 2007 we saw that for the first time in history that online travel purchases exceeded offline purchases to the tune of $137 Billion to $129 Billion, respectively. This is due in large part to the fact that the entire industry for booking travel has begun to modernize itself and transition from the old ways, of hiring a travel agent and booking offline. Since 1998, onlinesites have accounted for 49% of the market, and we have seen a 6.2% decline in offline travel purchasing (Applegate, Piccoli, & Broman, 2007). With a growing market and 51.3% of grossrevenues stemming from online bookings, we still only face one comparable competitor, Rearden Commercial. Reardren is similarly positioning themselves as a one stop source for travel, however they are targeting the managed or corporate accounts, TripIts main focus is the unmanaged customers, or leisure travellers. Research shows that unmanaged customers grew from a $66Billion industry and 28% of the market in 2006, to a $94 Billion industry and 35% of the marketing 2008. Industry standards also show that websites claimed 69% of car, 69% of flight, and 59%of hotel bookings for unmanaged customers (Applegate, Piccoli, & Broman, 2007). With anoverwhelming masjority of the customers in this market already booking their travel by onlinetravel agencies, we definitely see the opportunity for even more potential growth. Especially through TripIt’s software used to book itineraries, the ‘intinerator’.  Tripits tech is adaptable to new evolving technological environ.

Given Tripit’s major partnerships with major corporations in the travel industry (seeExhibit 1) and the widespread use of open source software, they are able to decode personalemails to find the information needed to schedule a trip. Everything from the weather to booking a hotel can be done through the ‘itenrator’. This makes scheduling a trip easier for the consumer, while also making it cheaper. They are also implementing new mobile apps so customers can customize their trips on the go.

-Adapts to each user etc mobile app or email

Cons  slow growth, limited monetization capability, not IP all open source therefore no real comp. adv atm, ambitious goals but limited resources, resistance with those who think its pointless, risk for cheaper as efficient products eg. Apps  in today’s market idea not as feasible as it would have been ten years ago

“knowing what we know”

Everything from the changing market, the already commanding hold on the existing market, as well as the astounding potential for future growth through the usage of social media it is evident that an investment should be made.

How would you grow TripIt today?

• So that their purpose doesn’t become obsolete, to remain relevant in such a constantly evolving technological driven market we recommend that they alter their expand on their model to cater  travel agent

• Free and Premium membership

• Add to trip it button  actively pursuing partnerships etc

• Where tripit is now/journey

Background of case to present: