Businessmodel of Opodo

Customer Segments

Opodo has a mass market business model, with no significant differentiation between customer groups. The company targets its offerings at anyone who wants to utilize travel services online.

Value Proposition

Opodo offers three primary value propositions: convenience, cost reduction, and brand/status.

The company offers convenience by making life simpler for customers. Its website enables users to book a trip in as little as three clicks, and monitor all details of a trip through an online account. It also allows them to purchase complementary services such as hotel stays, car rentals, and travel insurance. Lastly, it compiles and publishes customer reviews for helpful reference.

The company reduces costs in a variety of ways. It checks prices daily to ensure it is always providing the best value. It also maintains smart “AirTools” that enable customers to locate the best-priced flights based on factors such as budget, destination, and airline preference.

It offers a “Best Price Guarantee” – through this feature, if customers find a cheaper competing price within 24 hours of booking a flight on its website, the company will refund the difference. Laslty, Opodo regularly announces deals and discounts on its website, social media pages, mobile app, and newsletter.

The company has established a strong brand due to its success. It bills itself as the first truly pan-European travel service specializing in worldwide travel. It provides access to more than 500 airlines, 150,000 hotel properties, and 7,000 car rental locations globally.

It offers 40,000 destinations and 60,000 flight routes, operating in 14 countries.  Lastly, it has won a number of honors, including Brtisih Travel Awards for Best Flight Booking Website and Best Online/Call Centre Travel Agents.

Channels

Opodo’s main channel is its website. The company promotes its offerings through its social media pages and advertising.

Customer Relationships

Opodo’s customer relationship is primarily of a self-service, automated nature. Customers utilize the service through its website while having limited interaction with employees.

The site enables customers to manage their trips by viewing invoices and monitoring the status of their bookings and refunds. It also provides useful resources such as travel alerts, access to an informational newsletter, and answers to frequently asked questions.

Key Activities

Opodo’s business model entails maintaining a robust online platform for its customers.

Key Partners

Opodo’s key partners are the hotel companies, car rental firms, and other service providers it promotes on its website in exchange for promotion on their platforms.

Key Resources

Opodo’s main resources are its human resources, namely the technology staff members that maintain and update the company’s website for customers.

Cost Structure

Opodo has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions.

Its biggest cost driver is likely transaction expenses, a fixed cost. Other major drivers are in the areas of sales/marketing and administration, both fixed costs.

Revenue Streams

Opodo has one revenue stream: revenues it generates from fees charged to customers when they purchase trips on its website.