Leisure and Tourism Industry Analysis: Expedia Group's Strategies

This report provides an in-depth analysis of the leisure and tourism industry, with a specific focus on the Expedia Group. It examines the industry's growth and its contribution to the global economy, highlighting the role of foreign income and the various travel purposes. The report delves into Expedia's background, its use of modern technology, and its online marketing strategies, including the impact of web 2.0, 3.0, and 4.0. It explores customer attitudes, online shopping experiences, cross-selling opportunities, and the influence of word-of-mouth. The study uses secondary data and content analysis to assess customer mindsets in a social media setting and the effectiveness of social media campaigns. It identifies key motivators for online consumers and evaluates the criteria they use to assess virtual shopping experiences. The report concludes with recommendations for enhancing sales, promotional strategies, and customer engagement within the travel industry. The report also discusses how the Expedia group can continue to stay at the top of the travel industry.

Running Head: LEISURE AND TOURISM INDUSTRY
Leisure and Tourism Industry
Name of the student
Name of the University
Author’s note

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Executive summary
The leisure and the tourism industry is growing at a faster pace and plays a major role in the
contribution to the GDP of the economy. The industries are major sources of foreign income
which helps in increasing FOREX(foreign exchange reserves) of a country. People travel for
leisure, business purposes, sports events, holidays and adventure. This industry provides a
variety of facilities to the tourists like recreation facilities, business, educational and social
activities. This industry generates huge employment opportunities giving various career
options as well, therefore contributing toward the global economy. It is the tourism industry
that makes it easy for travellers to visit a different place in just one click. Tourism is basically
of three types, namely domestic, inbound and outbound. The analysis deals with the study of
the Expedia Group. It is a travel company equipped with modern technology. The agency
deals with providing hotels, travel services, cars on rent at competitive prices available for
every budget. The paper also explains customers attitude and opinion towards the tourism
industry and also how the technological advancement of web 2.0, 3.0 and 4.0 affected the
industry in terms of attracting the customers, its online marketing strategies to improve the
online shopping experience and increase cross-selling for gaining word of mouth. How cross-
selling and word of mouth act as a promotional tool for the tourism industry. Also, some
recommendations have been given on how a tourism industry can boost its sales and
influence the customers for virtual shopping.

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Table of Contents
Introduction................................................................................................................................4
Institution background and justification.....................................................................................4
Literature review........................................................................................................................5
Effects of technological(Web 2.0, 3.0 and 4.0) advancement on tourism.............................5
Research techniques used to acquire data..................................................................................7
Discussion..................................................................................................................................8
Customers mindset in a social media setting.........................................................................8
Consumers attitude and opinions of leisure and tourism towards social media campaigns. .9
Main motivator that affect online consumers and buy leisure and tourism provider
offerings via web..................................................................................................................10
Criteria used by customers to evaluate their virtual shopping experience.........................11
Recommendations for actions that could have been taken......................................................12
Media activities that could support existing promotional strategies of Expedia.................12
The marketing strategies of the travel industry to boost customers online shopping
experience............................................................................................................................13
How to increase cross-selling opportunities and word of mouth for the travel industry?. . .13
Conclusion................................................................................................................................14
References................................................................................................................................16

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Introduction
The leisure and the tourism industry is growing at a very fast pace, and these
industries play a crucial role in contributing to the country’s GDP growth rate. These
industries are among the major sources of generating foreign income which increases the
foreign exchange reserves of the country. People travel for leisure, business purpose,
adventure and sports. It is the tourism industry that makes it easy for travellers to visit a
different place in just one click. Tourism is basically of three types, namely domestic,
inbound and outbound (Aitchison et al. 2014). Leisure and tourism industries are mostly
private sector enterprises and have collaboration with large international and national hotels
and airlines. This industry provides a variety of facilities to the tourists like recreation
facilities, business, educational and social activities. This industry generates huge
employment opportunities giving various career options. The analysis deals with the study of
the Expedia Group. It is a travel company equipped with modern technology. Its headquarter
is in Washington, United States and has a total revenue of 1120 USD. Its travel search
engines include websites like Expedia.com, CarRental.com, Hotels.com, Hotwire.com,
Trivago, Travelocity and many more (Marginean 2016). The agency deals with providing
hotels, travel services, car on rent at competitive prices available for every budget. The paper
conducts a literature review on technological advancement of the Expedia group and it also
explains customers attitude and opinion towards the tourism industry and also how the
technological advancement of web 2.0, 3.0 and 4.0 affected the industry in terms of attracting
the customers, its online marketing strategies to improve the online shopping experience and
increase cross-selling for gaining word of mouth.

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Institution background and justification
Expedia Group is one of the world’s leading travel industry equipped with modern
technologies. It was founded in 1996 as a division of Microsoft with headquarters in
Washington. Expedia is a public sector company with annual revenue up to US$ 11.2 billion,
and it’s metasearch engines include websites like Hotwire.com, Homeaway, Hotels.com,
Orbitz, Expedia.com, Trivago and many more and have the world’s most trusted websites for
tourism (www.expediagroup.com 2020). Its 70% revenue is generated through the booking of
the hotels by the customers (Westcott 2015). Expedia offers the best services in hospitality
and tourism. An online travelling agency like Expedia follows two types of the business
model- merchant model and agency model. In the merchant model, the hotel sells the ooms to
the travel agency at low or wholesaling price and the agencies then sell them at premium
rates. In an agency model, the hotels provide discounts or commission for bringing the
business. This is beneficial for the hotel as well as the travel agency. It has a strong global
image with around 150 booking sites around 70 countries across the world (Westcott, 2015).
Its acquisitions and merging process have made Expedia world’s top travel company in terms
of generating income. Since it is among the leading travel agencies, but the analysis can be
done on the selected leisure and tourism industry on how it generates sales, what factors it
follows to attract customers online, the virtual experience it provides to the customers, how is
the technology being used in the promotional strategies of the company and steps it can take
to remain in the top position among the giants of the travel industry (Shenoy, Wagle and
Shaikh 2017).

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Literature review
Effects of technological(Web 2.0, 3.0 and 4.0) advancement on tourism
In the era of modern technologies and digitalisation, online information play a crucial
role in the lifecycle of the tourism and leisure industry to flourish. The evolution of the world
wide web 2.0 and their modern versions like 3.0 and 4.0 facilitates the customers in providing
in obtaining several queries related to tours and travels (Huang 2016). The management
information system of the tourism industry helps in building customer relationship
management and also effects the business life cycle. During the 90s, the internet was the only
source for the marketing of tourism through online brochures offered by marketers. After the
emergence of 2.0 technologies ( social networks, blogs and many others) in 2005 enabled the
customers to interact with the service providers at any point of time through the online
service at low cost (Huang 2016). After the emergence of web 3.0, the use of semantic
technology increased, which also led to the expansion of mobile services, easy to access real-
time information and a piece of excellent web information (Tavakoli and Wijesinghe 2019).
These web services have reduced the costs and increased the operational efficiency and hence
has improved the service and even customer’s experience. The technological advancements
have helped the leisure and tourism industry to a great extent by replacing expensive human
labour with technical labour. It has enhanced online marketing and is successful in attracting
customers. Whenever a customer visits the website of the Expedia or any other tourism
industry, their first experience is the pictures and reviews of the past customers. This helps
the customers getting a picture of what the services the industry provides. The web services
allow the smooth flow of communication between the hotel chains at multiple locations for
easy connect. The mobiles, tablets and smartphones have replaced the large systems. The
technological advancement helps the industry to get in touch with the customers by keeping
them updated about the bookings, cancellation, deals, offers, discounts, GPS tracking and

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other services. The web services have helped the leisure and tourism industry more helpful,
easily reachable and more efficient.
Web 2.0 effects both tourism industries demand and supply. Since information is the
lifeblood for any tourism industry to survive in the marketplace, web 2.0 allows collaboration
of millions of internet users to share information and acquire knowledge distributed
throughout the internet. The information generated by the web 2.0 has a tremendous impact
on the e-business of the industry. The web 2.0 provides the user with a service called Simple
Syndication service(RSS) which helps the users to subscribe to the online blogs, news or
other information. With this, the user does not have to visit each website; instead, the RSS
provides all the updated information to the customers. The web 3.0 has reduced the
transformational activities and provides service-oriented technologies through the use of the
semantic web. The web 4.0 helps the industry through the AIDA model which attracts the
customers through the information by increasing traffic on the website, generating the interest
of the tourists to avail the package, develop the desire in the customer's mind to visit the
destination or buy the services, and hence the customer takes action through booking of
hotels or purchasing the package for the trip (Veal, 2017). These web services also help in
providing clear instructions, navigation maps, displaying textual comments on the map of the
destination, information about public transport, live tracking, GPS and many more.
Research techniques used to acquire data
The secondary data is used in the analysis of the paper. The data is collected using the
content analysis method. The data was used from the historical information which was
recorded earlier. The secondary sources involved in the analysis are web content, social
media posts and reviews of the users on the internet. Webnography was the effective
secondary methods used in generating the information available on different sites.

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Information was gathered through the website like www.expedia.com, www.expedia.co.in of
the company. Webnography contains a detailed list of websites on a specific topic. It is a type
of bibliography that contains information.
Discussion
Customers mindset in a social media setting
The travel agency operates on both the levels- online as well as offline. The online
shopping experience has evolved from simple brick and mortar to the virtual shopping
experience. The technological advancement has changed the perception of the customers and
the way they purchase and react to the brands. Customers depend on online shopping for
specific reasons like reliability, speed, convenience, quality and many others. Subscriptions
provided by the tourism industry and huge discounts during festive seasons make the
customers choose the online mode, and this also brings customer satisfaction and retention
towards the industry (Aitchison et al., 2014). The customers of modern generation mostly
prefer virtual bookings because of the heavy discounts and subscriptions. The comparison
can be made through the reviews on the websites and hence the bookings can be made at the
economical packages as per the interest of the customers. But for retaining the customers
online is a difficult task for the agencies due to tough competition. The trust of the customers
can be gained through satisfying them through the best services like secured payment,
refunds and other.
In comparison to offline bookings preferred by a very small section of society,
especially the older generation, online customers generate higher sales than offline
customers. The search engine optimisation gives the customers the best search results in just
one click instead of going shop to shop for bookings. The online mode has developed a

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mindset that it is less time consuming and a variety of options is made available through the
agencies for more convenience of the customers which cannot be made available through the
offline mode. The online services are 24*7 available in compare to the offline services, and
through online payment mode, it can attract more customers.
Consumers attitude and opinions of leisure and tourism towards social media
campaigns
Social media campaigns are different from everyday social networking since they are
applied along with the marketing strategies by using more than one social media platform. It
helps in better targeting and positioning of the products and services. The social media
campaigns by the leisure and the tourism industry have positively changed the consumers
behaviour and act as word of mouth for the services. Consumers find it easy and convenient
in searching for destinations and services and also share their experiences on the website
because the content which is generated by the user plays a significant role than any other
official information in attracting customers. Whenever a consumer looks for a travel package
and visits the company’s website, the positive reviews posted by the happy and satisfied
customers act as word of mouth and in return, generates revenue by attracting customers.
Social media campaigns have helped Expedia agency in attracting customers through the
promotion of hotels, communicating with the guests directly to know their feedback because
consumers are the valuable assets for any company to flourish and maintain its position in the
market place (Tratt 2014). Through the social campaigns, the consumers are served with
more information they look for, the queries they ask for, and the makes the consumer buy the
services. Though the social media campaigns generate positive results in satisfying
consumers need, it may harm the status of the brand also. Any negative reviews on the social
media leave the consumer in dilemma whether to avail the service of the brand or opt for

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another. Consumers feel empowered by the campaigns and can influence others through it.
For example, Expedia provides exciting offers and discounts to the online customers,
subscriptions, coupons through various contests, secure payment and refund policy are some
of the features that hs made Expedia generate revenues and retaining new as well as existing
customers (Tugend 2016). But the social media campaigns have some disadvantages that can
make the customer switch the brand. For example, due to network breakdown or a technical
fault, the customers sometimes find it difficult in availing online services provided by the
industry. This can irritate the customer and will make him switch to other industry for
service. Therefore, it is concluded that social media campaigns affect the consumer both in a
positive as well as negative manner.
Main motivator that affect online consumers and buy leisure and tourism
provider offerings via web
Various factors motivate th customers to buy the offerings of the leisure and tourism
industry. With the advancement of the web 2.0, 3.0 and 4.0, the online tourism industry has
gradually increased in terms of expansion, revenue, acquisition of customers, better quality
services and many more (Veal, 2017). The virtual platform gives clear picture in the minds
of the customers about the chosen destination and from miles away, one can see the
requirement provided by the industry. These benefits have forced the customers to leave the
brick and mortar model of shopping experience and opt for the online services of the
industry. The factors like reducing the financial risks by preserving the information of the
debit and credit card shared by the customer, not disclosing of personal data of customers,
providing the actual information about the services by the industry that meets the expectation
of the customer, different websites by the industry like Expedia avail various services
offered, resolving the queries in short period, positive reviews about the tourism industry’s
services, 24*7 availability of customer services, customised services, availing the services at

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economical prices, no fake information for the publicity of the sector, cashback service,
availability of varieties of services, resolving of complains, convenient and saves time and
many other services offered by the tourism and leisure industry that affects the customers to
avail the services (www.expediagroup.com 2020).
Criteria used by customers to evaluate their virtual shopping experience
Many criteria drive the customer’s interest to choose virtual shopping. The experience
that the customers get online on the website of the agency, which makes them come back. If
the website is not attractive enough to catch the attention of the customers or due to
navigation problems, the customers do not find the desired services; the agency loses the
customer to the competitors. Since there are are so many websites for leisure and tourism and
with multiple options but the customers show less interest in those websites which are not
optimised for the small screens like mobiles and tablets. The online support by the agencies
like easy returns, online queries, whether positive or negative or refunds by the agencies
make the customer return back in future (Wang et al., 2015). One of the major criteria that
generate the maximum number of sales and drive customer’s attention is the website design.
The use of posts, images and videos of the destinations, blogs, positive reviews by the happy
customers make the website look a masterpiece and also make the agency drive number of
online customers. The promo codes, discounts and low price services offered for the people
of all the classes help the agencies to gain customer loyalty and is also one of the criteria to
opt for virtual shopping mode (Huang et al., 2016). The factor that is of utmost importance in
making the customer ready for the virtual shopping experience is trust. For example, people
fear to share their personal information like credit card details, account numbers because of
the hackers online. So, the agency should assure the customers that the payment mode is
secure, and privacy is maintained. The visibility maintained by the travel agency(Expedia)
and continuous promoting of the services online through social media increases the zeal

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among the customers to try the services that are offered. Because through the internet any
organisation gets maximum exposure and on can sell the products and services to the world,
which is not possible through the brick and mortar method of selling. The traditional methods
of shopping attract fewer customers and require a lot of promotional activities. The
promotional activities cost a lot to the agencies like the hiring of human resources,
promotional campaigns and many more. But through the virtual model, the promotional
activities are done on the mass scale, and the services reach the customers across the various
corners of the world.
Recommendations for actions that could have been taken
Media activities that could support existing promotional strategies of Expedia
The current promotional strategy adopted by the Expedia group is the marketing mix
of 4Ps(product, price, place and promotion). Expedia is among the world’s leading travel
agencies and offers products like booking of the hotels and flights, holiday packages, leisure
activities, car on rents, cruises and many more. The agency has adopted innovative ideas
online to attract customers. Pricing strategy of Expedia deals with various discounts,
packages and others. The distribution strategy has made a significant presence in places like
the United States, Japan, India, China, Brazil and many other developed countries. The
promotion mix strategy of Expedia is mong the third positions and has listed its name in one
of the most admired leisure and the travel industry (Kontis, Skoultsos and Papayiannis
2019). In spite of the promotional strategies followed by the travel agencies, some media
activities can enhance the existing promotional strategy adopted by the travel agencies to
increase their Return On Investment(ROI). Some of them can be:-

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 Optimising the hotel’s listing criteria. For example, highlighting everything according
to the expectation of the guests. The website should not acknowledge the wrong
information about the agency.
 Usually, the agencies ignore the bad reviews of the customers by hiding them and
highlighting and posting the positive ones on the website. But actions should be given
to the negative reviews as well to resolve the issues.
 Booking dates should be convenient for the customers. Sometimes the customers
because of the date issues rely on the other agencies for booking.
 Maintaining transparency in the budget of the entire tour because some agencies tend
to hide the additional charges which cause inconvenience to the tourists during the
trip.
The marketing strategies of the travel industry to boost customers online
shopping experience
 Maintaining an attractive and user-friendly website for the customers with high-
quality professional videos and photos of the destinations to make the page look
appealing to the customers.
 Describing every service, the agency offers.
 Use of pop-up ads for promoting offers, discounts, coupons and other offers at
customisable rates to the customers.
 Maintaining transparency in the information displayed on the internet by travel
agencies.
 Offering value-added services other than the offers.
 Taking reviews into consideration and act accordingly.
 Providing referral bonuses to customers.

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How to increase cross-selling opportunities and word of mouth for the travel
industry?
Cross-selling is the concept of marketing which means offering the customers similar or
complementary products or services. The tactics that can enhance the cross-selling of the
travel agencies can be as follows:-
The offers that are given by the industry should make a sense. For example, the
agency should clearly explain why the substitute is offered and its benefits, including
price. Offering discounts in bundles in case of multiple products, for example, booking
without extra charges, getting complimentary meals during the stay and many more. The
price of the services should not increase by more than 25% of the actual service, as a
case, it will make a loose interest in the service and look for other websites for booking
purposes. Cross-selling of the services should be offered to the customers at the right time
without delay to make the customer satisfied (Shen 2018). This also gains the loyalty of
the customers and also acts as word of mouth. Lowering the price of the substitutes also
helps in cross-selling for the travel industry because introducing a new product or service
in the market needs a lot of time to gain customers attention and low price can help the
agencies sell those services. Compensating the customers for delayed services is one of
the ways to increase cross-selling in agencies. But cross-selling comes with negative
impacts as well. Pushing the customers to buy complementary services all the time may
harm the image of the industry.
Word of mouth acts as a powerful tool for any business to catch the attention of
maximum numbers of customers online as well as offline (Leong et al., 2019). Since
Expedia is among the leading travel agencies in the world, the positive word of mouth
about the industry creates an overwhelming experience for the customers to choose the

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desired services but the comments that are unflattering acts as negative word of mouth
which can result in the downfall of the industry. But in this analysis, the positive word of
mouth for the Expedia Group has helped the industry acquire the top position among the
other giants in the travel industry.
Conclusion
Therefore, from the above discussion, it is concluded that the technological
advancement and with the emergence of web 2.0,3.0 and 4.0 has given online business to
flourish more, gain competitive advantage and increase the customer base. The traditional
method of availing the services has left behind then middle man. But to avail the benefits of
any services, one has to be equipped with modern technology because technologies improve
the standard of living and make the life convenient for an individual. Customers feel
empowered by the services offered online, and they too have the opportunity to select the end
number of services at reasonable prices and secure method to access the services through
provided by the agencies. Thus, it is clear from the analysis that the online travel agencies
like Expedia outstand the services of the traditional travel agencies and the offline agencies
need to be adaptive to sustain in the competitive world. Though online agencies are more
profitable, the information it spreads about the services needs to align with the expectations
of the customers so that it acts as word of mouth for the industry.

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