Expedia Incorporation Harvard Case Solution & Analysis

Asia Pacific Branding for Online Hotel Reservations Expedia Inc

Question No.1: What would make the Asia Pacific market attractive to potential customers? What role would GDP per capita play?

Expedia Inc. has been successful in the American and European countries and it was focusing its attention to the Asian Pacific market due to different opportunities over there. There are several factors which make the Asia Pacific market more attractive and some of them are international tourism departures and arrivals, spending for business and personal travels. Internet adoption and user rates can also affect the market. Population also makes the Asian Pacific countries comparatively more attractive than the American and European countries. As stated by Hanford that Asia is a phenomenal opportunity.

Population is the most important factor which has positive impact on the attractiveness of the industry. Asian Pacific countries consist of high population rate that can be ultimately the potential customers depending upon the economy of that region. China has the highest population in Asia Pacific market with 1306.3 million, which makes it an attractive market. Additionally, industrialization in China makes it an attractive market. China has the highest international travel arrivals and departures, which obviously makes it a good market for Expedia. India also has a high population of 1080.3 million but lower than China. also In addition, it has good rate of international flight arrivals and departures with the rate of 1707,000 and 2281,000 respectively. India has higher international higher rate comparatively with Australia. These rates are consistently growing which is ultimately making it an attractive region. Personal travel and tourism expenditures are also comparatively high and these markets have potential for the tourism industry. Japan and China have the highest personal travel and tourism spending Asian Pacific countries, which make it a region where tourism industry can emerge swiftly while Japan, China and Australia are the leading countries with the highest spending rate on the business travel expenditures. United States has the highest internet users following with the China, Japan, South Korea, India and Australia. As per the internet using rates, China, Japan and India can be an attractive region with the involvement of other factors because Expedia can target the customers of those regions through its websites directly with some adaptation.

GDP has positive significant impact on the attractiveness of potential customers. The higher the rate of GDP per capita, the higher living standard of that country will be. Definitely, if any country has higher GDP per capita, then it will ultimately result in high spending and consumption on travels, vacations or business trips. Hong Kong is a leading Asia Pacific country in terms of GDP per capita with $34,200 and 9th highest country. Furthermore, Australia has GDP per capita of $30,700, Japan has $29,400 and Singapore has $27,800 making these countries attractive for the tourism industry. Industrialization and businesses will grow in those regions, which will be leading in increasing rate of international flight arrivals and departures. Obviously it will also grow the hotel industry as well. These markets have already high tourism rates and it can further grow with the increasing of industrialization and GDP per capita of the specific country. GDP of any country has a very important role in the overall growth of any industry in that region. Countries with low GDP and GDP per capita will not be an attractive market for any businesses and hence it is very obvious not to enter in that region because it cannot be beneficial except for some cases.



Question No.2: Why would some countries require established electronic point of sales as a priority ahead of others?

Point of Sale (POS) is a place where customer purchases a products or services through making a payment. Initially it was POS but with the computerization of POS, it is now so-known as Electronic Point of Sales (ePOS). The customer evaluates the product or services and then purchases the desired one and makes payment for it. Websites is the example of ePOS and it is a place where customers visits and makes purchasing through the payment.

Definitely electronic point of sales has several benefits and some countries require it more than others due to several reasons. Electronic point of sales helps to improve the business process and efficiency and it saves the time and money in the long term. Transaction becomes faster and it helps to reduce the lead time with the improvement og the processing time. Customers can easily reach to the point of purchase and the availability of product will be increased. Every country has different nature and culture therefore’ the need of established point of sale will be varied accordingly with the target market. Western markets will require more established POS rather than eastern region. Western customers are mostly busy and do not have time to plan their whole personal or business trips including hotel reservations, transportation and flight reservations. They cannot visit the retail channels ...............................

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