Internet Marketing

Stelios Haji-Ioannou: Interview

Business Internet Marketing The Internet is revolutionising the ways in which the consumer can book their holidays. With more online companies enabling the individual to cut out the traditional travel agent, is there much hope left for the middleman?

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Internet Marketing Strategic This week we speak to easyGroup founder Stelios Haji-Ioannou to find out his views on the impact that the Internet has had on the travel industry, his predictions for the forthcoming year, and whether putting Internet workstations into McDonalds outlets was such a good idea?

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Ebook Internet Marketing 1. The year 2002 has been a turbulent one for the travel sector. How has the slump affected the easyGroup network?
We haven`t noticed any `slump` with the easyGroup companies. I think that if consumers become concerned that they might be affected by an economic downturn their immediate reaction is to tighten their belts. Thus they stop flying business class and instead use easyJet, or stop using Hertz and use easyCar.

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Business Home Internet 2. Airlines have been hard hit since the terrible terrorist attacks of 2001. The market remained negative in 2002 with UAL filing for Chapter 11 in The United States. Do you feel that 2003 will be the year of the low fare airlines and budget carriers? If so what will easyJet be offering?
I have now stepped down from the chair of easyJet in order to concentrate on my smaller companies. Therefore the airline`s strategy will be decided by its board and management who will no doubt represent their shareholders to the best of their abilities. Since the terrible events of september 11 the long haul, traditional airlines have been in retreat and the short haul low cost sector, relatively unscathed, have filled the void. The low cost, no frills sector is expanding fast as can be seen from the easyJet order for 120 brand new Airbus aircraft.

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Internet Marketing Site Web 3. Research suggests that more people are getting online with the advent of highspeed Internet access. How popular has easyJets online booking system proved to be?
The Internet has been an excellent sales mechanism for easyGroup companies and price incentives have been the way of getting consumers to go online. easyJet distributes close to 90% online and easyCar rents out 95% of its cars via the internet.

Based Business Home Internet 4. Have you seen an increase of online booking in your easyInternet stores? If so, with easyJet flights being booked in easyInternet cafes, then it appears that you are onto a real winner. Was this ever one of your aims?
easyInternetcafe, my chain of Internet cafes, can get close to 2 million visitors globally in a month. Most of the easyInternetcafe customers are checking their emails or using the Internet for a variety of reasons. We did not set up easyInternetcafe solely as a point of sales for other easyGroup companies. Of course you can rent a car from easyCar from an easyInternetcafe, but the reason we opened Internet cafes was to provide fast, cheap Internet access to the public at large.

Internet Marketing Web 5. Are you a dedicated user of the net? Do you feel secure in putting your bank details on the web?
Yes, I use the Internet all the time but I`m not a techy. The easyGroup office software is web based and as I travel a lot I can check my email from any browser in the world. I`m quite at home with e-commerce as well in terms of entering my credit card details online. I don`t think this is any more or less risky than giving your credit card to a cashier in a shop.

Estate Internet Marketing Real 6. easyCar takes 95% of its bookings online - do you feel that the Internet is the way forward? If so, will Travel Agents eventually be over turned by an individuals ability to book and confirm all of their holiday details on the web?
The Internet is another nail in the coffin for the travel agents. There is no such thing as a free lunch so there is little reason for consumers to pay a middleman when they can deal direct with suppliers online.

Engine Internet Marketing 7. What are your views on the travel industrys performance in 2002? Did heavy discounting assist the system, and should this continue in 2003?
Discounting is a feature of distressed inventory and if you price correctly this should not happen. In all easyGroup companies we yield manage, changing the price according to demand. This works on the principle that the earlier you book, the less you pay which we see as the fairest system. Customers that sacrifice flexibility for the best prices book well in advance and they create the demand that raises the price for customers that want the convenience of booking late.

Affiliate Internet Marketing 8. What are you predictions for the travel industry in 2003?
More bankruptcies among transport providers that operate outdated business models that feed off the corporate market, such as traditional airlines and car hire companies. Consumers will continue to go online for best prices and convenience where they can examine prices, inventory and timings in a fully transparent environment. In other words you can see for yourself, you don`t have to rely on someone who wants to sell you something.

9. Finally, now that you have Internet ports in certain McDonalds restaurants, how do you feel about the recent stock reports, customer spending trends and the possible clousure of 175 outlets worldwide?
I am not an expert in selling burgers so I must leave McDonalds to run their own business. However, by putting easyInternetcafe branches in public spaces such as McDonalds we can help to increase footfall. This is a complementary business too as it does not compete with McDonald`s business and helps to fill their premises during quieter periods, specifically outside meal-times.