How might Rakuten optimize its Rakuten Travel service to better compete with other online booking platforms?

Introduction

To optimize Rakuten Travel and better compete with other online booking platforms, we need to focus on enhancing the user experience, expanding our service offerings, and leveraging Rakuten's unique ecosystem. I'll approach this challenge by analyzing our target users, identifying pain points, and proposing innovative solutions that align with Rakuten's broader strategy.

Step 1

Clarifying Questions (5 mins)

• Looking at Rakuten Travel's position in the market, I'm curious about our current user base and growth trajectory. Could you share some insights on our primary user demographics and how they've evolved over the past year?

Why it matters: This helps us understand if we need to focus on retention or acquisition strategies. Expected answer: Our core users are 25-45 year old urban professionals, with recent growth in the 55+ segment. Impact on approach: If we're seeing growth in older demographics, we might need to adjust our UX and offerings accordingly.

• Considering the competitive landscape, I'm wondering about our unique value proposition. How do our conversion rates compare to major competitors like Booking.com or Expedia, particularly for domestic vs. international travel?

Why it matters: Identifies areas where we're underperforming and opportunities for differentiation. Expected answer: Strong in domestic travel, lagging in international bookings. Impact on approach: May need to focus on enhancing our international travel offerings and partnerships.

• Given Rakuten's diverse ecosystem, I'm interested in our cross-platform integration. What percentage of Rakuten Travel users are also active on other Rakuten services, and how does this affect their booking behavior?

Why it matters: Helps determine if we should leverage cross-platform synergies more effectively. Expected answer: 60% of Travel users use at least one other Rakuten service; they book 30% more frequently. Impact on approach: Could focus on deeper integration with Rakuten's ecosystem to drive engagement and loyalty.

• Considering recent global events, I'm curious about shifts in travel patterns. Have we seen any significant changes in the types of accommodations or destinations being booked, and how has this impacted our revenue mix?

Why it matters: Identifies emerging trends that could inform our product strategy. Expected answer: Increase in domestic, rural, and longer-term stays; decrease in urban and international bookings. Impact on approach: Might need to adjust our inventory and features to cater to these new travel patterns.