ezRez Software Hosts Second Annual Thought Leadership SummitTravel and Loyalty Industry Leaders Discuss Trends for 2010 and BeyondSAN FRANCISCO – February 17, 2010 – The second annual ezRez Thought Leadership Summit (TLS) was held in San Francisco from February 3 to 5. Hosted by ezRez Software, Inc., a San Francisco-based Software-as-a-Service (SaaS) provider of travel and loyalty solutions, TLS 2010 attracted executives and analysts from all over the world – from Calgary to Dubai, Hong Kong to Sao Paolo, and New York to Madrid. This invitation-only gathering of some of the leading minds in travel and loyalty was developed by the ezRez senior management team in the fall of 2008. Their goal was to create a unique event where executives, researchers, and analysts could openly discuss strategies on how to capitalize on industry trends. The team also decided to limit the number of participants in order to foster debate and facilitate relationship building. The three key topics at this year’s summit were loyalty, technology and ancillary revenue. Henry Harteveldt, Vice President and Principal Analyst with Forrester Research, began the formal conference with a discussion on connecting the customer with value. In his remarks, Mr. Harteveldt noted that in this day and age, when consumers are taking pride in what they are able to save, travel is not viewed as an entitlement, but as a reward. With “Neo Frugal Chic” dominating, and many options available to consumers via the “Splinternet,” it is incumbent upon retailers to deliver flexibility, relevance and control to gain customers’ loyalty. Marc Berman, Executive Vice President, and Don White, Senior Consultant from The Mallett Group, continued the discussion with observations on how allowing consumers to use loyalty points like any other currency is driving strategic shifts in the travel rewards space. One company in particular is at the forefront of this trend, allowing their most loyal customers to purchase competitors’ products with loyalty program points. Mr. Berman noted that more choice and more control “make people happy,” which in turn drives loyalty. Mr. White looked further into today’s growing trend of adding cash-plus-points redemption options to loyalty programs, and discussed how many consumers view paying with cash differently than spending hard-earned loyalty currency. He went on to say that understanding members’ perception of value is a key to success for any loyalty program. The morning session was rounded out with an interactive look at the loyalty space from a few different perspectives. Moderated by Mr. Harteveldt, the panel covered best practices, cutting edge thinking and key learnings as shared by Deren Baker, ezRez Vice President of Product; Robin Korman, Senior Vice President, Loyalty Marketing and Strategic Partnerships for Wyndham Hotel Group; and Robert Sahadevan, Vice President, United Airlines Mileage Plus. Norm Rose, Senior Corporate and Technology Analyst for Travel Tech Consulting, began the afternoon session with a discussion on emerging technology trends. In his view, a few “must haves” for travel companies to compete effectively include the ability to reach travelers while on the road, a mobile-ready website, a downloadable mobile app, and a carefully analyzed social media strategy. However, Mr. Rose also pointed out that once these elements are in place, the ability to adjust them rapidly based on changing technology and consumer landscapes is just as much of a key differentiator as the individual elements themselves. Jay Sorensen, President of IdeaWorks Company, took a comprehensive look at airline and hotel fees. As the days of successful fare increases wane, baggage fees have emerged as the largest source of ancillary revenue for the airlines. Mr. Sorensen noted that even stalwart holdout Southwest Airlines, whose moniker went from “No Hidden Fees” to “Bags Fly Free,” is testing the bag fee waters as its competitors reap great profits with surprisingly little customer backlash. As hotels are navigating through the same a la carte pricing waters, Mr. Sorensen recommends that all travel suppliers define their ancillary revenue brand and tell their pricing story frequently and clearly to help customers accept change while setting the stage for “revenue bliss.” Soleil Securities Analyst Jake Fuller, who has covered hotels, GDSs, gaming, casinos, timeshare and online travel since the mid-1990s, wrapped up the conference with a look at how the travel industry has been affected by the economic recession. Remarking that 2009 was one of the worst years on record for the travel industry, Mr. Fuller pointed out that domestic travel sales were down by 15% for the year, with airline passenger revenue off 17% and hotel room revenue down 15%. But e-travel was a “bright spot” according to Mr. Fuller. OTA domestic sales were down just 1.5%, with Expedia trending flat and Priceline up a whopping 17%. Mr. Fuller concluded his remarks with a bit of fortune-telling. In response to a question regarding GDSs going public, Mr. Fuller simply remarked “really bad idea,” noting the challenges to such an IPO include the expiration of many airline contracts in 2011, very high valuations, and likely exposure of previously discreet margin structures. Within days of the conclusion of TLS 2010, Travelport tabled their plans for an IPO and speculation has since arisen that Amadeus is considering the same. ezRez set out with a goal of creating an open and dynamic forum where strategies could be shared and solutions could be discovered. The Thought Leader Summit has exceeded expectations, and is poised to foster ongoing relationships within the travel and loyalty industries for many years to come. Summit participants can access all presentations and event photos by sending a request to This e-mail address is being protected from spambots. You need JavaScript enabled to view it . About ezRez Software Inc. |
Friday, 10 September 2010
