a phocuswright speaking engagement technology and the new...

Technology and the New DMO

GWTTRA 2012 Conference Portland OR

April 20, 2012 A PhoCusWright Speaking Engagement

Cees Bosselaar Director, Business Development and

Destination Marketing Specialist

© 2012 PhoCusWright Inc. All Rights Reserved.

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Technology and what it means for the New DMO


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Social Web Mobile

Online

Travel Technology


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Low

er

H

igh

er

On

line

Tra

vel P

enet

rati

on

Lower Higher Annual Growth Online Sales

U.S.

U.S. SCAN

U.K.

SPAIN

SING

MEXICO

CHILE

BRAZIL

PERU

COL

ARG

JAPAN

INDIA

U.S.

Europe

APAC

LATAM

Source: PhoCusWright’s Global Online Travel Overview Second Edition


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Low

er

H

igh

er

On

line

Tra

vel P

enet

rati

on

Lower Higher

SCAN U.S.

U.K.

SPAIN

SING

MEXICO

CHILE

BRAZIL

PERU

COL

ARG

JAPAN

INDIA

U.S.

Europe

APAC

LATAM

Annual Growth Online Sales Source: PhoCusWright’s Global Online Travel Overview Second Edition


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Low

er

H

igh

er

On

line

Tra

vel P

enet

rati

on

Lower Higher

SCAN U.S.

U.K.

SPAIN

SING

MEXICO

CHILE

BRAZIL

PERU

COL

ARG

JAPAN

INDIA

U.S.

Europe

APAC

LATAM



14

Low

er

H

igh

er

On

line

Tra

vel P

enet

rati

on

Lower Higher

FRANCE

GERMANY

ANZ

ITALY

CHINA

SCAN U.S.

U.K.

SPAIN

SING

MEXICO

CHILE

BRAZIL

PERU

COL

ARG

JAPAN

INDIA

U.S.

Europe

APAC

LATAM



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Online Leisure/Unmanaged Business Travel Penetration by Market, 1992

Note: 2010-2012 projected. Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011


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Online Leisure/Unmanaged Business Travel Penetration by Market, 2012

Note: 2010-2012 projected. Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011

Europe APAC LATAM


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Online Travel Penetration* of the Total Travel Market, Global Markets, 2008-2012

*Leisure/unmanaged business travel websites as a percent of the total travel market. Note: 2010-2012 projected. Data for 2012 not available for Canada. Source: PhoCusWright's U.S. Online Travel Overview Tenth Edition; PhoCusWright’s Asia Pacific Online Travel Overview Fourth Edition; PhoCusWright’s Latin American Online Travel Overview

35%

38% 38% 39% 39%

15%

18%

21% 23%

24% 27%

31% 33%

35% 36%

8%

11%

14%

18%

21%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2008 2009 2010 2011 2012

U.S.

APAC

Europe

Latin America


18 © 2011 PhoCusWright Inc. All Rights Reserved.

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The Leisure Travel Cycle

Dream

Book Explore

Share Plan

Source: PhoCusWright Inc.


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Mobile Travel


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Mobile Timeline Mobile Timeline

1980s 1990s Early 2000s

June 2007 2008-2009 2010 2011+

• Devices are becoming more powerful, with tablets increasing in popularity worldwide

• Lower-cost tablets arriving from Amazon.com and India will significantly increase penetration of these devices on a global basis

• Networks increase broadband • Smartphones increase the ability to sense the environment

1G 2G & 2.5G 3G 4G 4G

Devices Are Becoming Faster and More Portable


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Smartphone Maturity by Market

Immature

Mature

Mature

Mature

Immature – Majority feature phone users

Emerging – Smartphone starting to take hold

Rapid Growth – Smartphone adoption is growing rapidly

Mature – Greater than 50% smartphone penetration

Emerging

Emerging

Emerging

Rapid Growth

Rapid Growth


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“The PC Era is done.”


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18%

21%

12%

5% 7%

43%

25% 25%

10%

7%

1%

36%

Apple iOS Google Android BlackBerry OS Windows 7 Other I don't know/Feature phone

Current Next planned purchase

Smartphone Ownership, by Operating System (Leisure Travelers)

Question: Please indicate what type(s) of mobile phone(s) you currently have. Select one phone type from the drop down list next to each appropriate phone option. Base: U.S. online travelers (N = 1,948) Source: PhoCusWright's Traveler Technology Survey 2011


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24%

30%

22%

9%

0%

15%

21%

34%

26%

9%

1%

9%

I only use websites I usually use websites and

occasionally use apps

I use websites and apps equally often

I usually use apps and occasionally use

websites

I only use apps I do not use my mobile phone for

online travel-related activities

Leisure Travelers Business Travelers

Website/App Usage on Mobile Phone

Question: Please select the statement that best describes your mobile website (using a browser) and downloaded app usage for travel-related activities on your mobile phone. Base: U.S. online travelers who access the Internet through their mobile phones (N = 1,125); U.S. business travelers who access the Internet through their mobile phones (N = 1,526) Source: PhoCusWright's Traveler Technology Survey 2011, PhoCusWright’s Business Traveler Survey 2011


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The bookings are coming


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U.S. Mobile Leisure/Unmanaged Business Travel Gross Bookings, 2010-2013 (US$B) and Share of Online Leisure/Unmanaged Business Travel and Total Travel Markets

Note: 2011-2013 projected Source: PhoCusWright Inc.

0.4%

2.4%

4.3%

6.5%

0.2% 0.9%

1.7%

2.6%

0%

1%

2%

3%

4%

5%

6%

7%

0

2

4

6

8

10

2010 2011 2012 2013

Shar

e o

f O

nlin

e a

nd

To

tal T

rave

l M

arke

ts (

%)

Mo

bile

Bo

oki

ngs

($

B)

Total Mobile Bookings Mobile as a Share of Total Online Travel Market

Mobile as a Share of Total Travel Market


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2%

14%

17%

17%

20%

24%

25%

29%

42%

40%

60%

3%

13%

15%

15%

16%

27%

27%

29%

38%

45%

69%

Other

Travel itinerary management websites/apps

Destination tourism organization websites/apps

Travel guide websites/apps

Travel-related monitoring websites/apps

Travel search engine websites/apps

Special deals-focused websites/apps

Traveler review websites/apps

Travel provider websites/apps

Online travel agency websites/apps

General search engine websites/apps

Leisure Travelers

Business Travelers

Travel-Related Websites/Apps Used on Mobile Phone

Question: What types of travel-related websites/apps do you use (or are you likely to use) on your mobile phone ? Select all that apply. Base: U.S. mobile travel planners (N = 786); U.S. mobile business travel planners (N = 1,087) Source: PhoCusWright's Traveler Technology Survey 2011, PhoCusWright’s Business Traveler Survey 2011


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18% 17% 10% 9% 6% 7% 6% 6%

37% 38% 40% 39%

32% 35% 29% 31%

24% 25%

13% 15%

8% 13%

8% 13%

21% 20%

38% 37%

54% 45%

58% 50%

Leisure travelers Business travelers




View maps/get directions Research local activities such as restaurants and shows

Research travel destinations to visit

Research travel products such as hotel rooms or flights

Used both Only used mobile websites Only used downloaded mobile apps Have not done online via mobile phone

Travel Research via Mobile Phone, by Medium

Question: Please indicate which of the following travel-related activities you have done online using your mobile phone in the past 12 months and through which medium. Base: U.S. mobile Internet users (N = 1,125); U.S. business traveler mobile Internet users (N = 1,526) Note: Totals may not add to 100% due to rounding. Source: PhoCusWright's Traveler Technology Survey 2011, PhoCusWright’s Business Traveler Survey 2011


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OTA Mobile Initiatives

Today

• Booking

• Itinerary management

• Flight status

• Airport info

6-12 months

• Basic mobile-only deals/offers

12-24 months

• In-destination deals/offers

• LBS

• Mobile coupons

• Ancillary services

• Social media integration

24+months

• Disruption assistance

• M-payments


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Airline Mobile Initiatives

Today

• Schedules

• Check-in

• Itinerary management

• Loyalty access

• Disruption management (SMS)

6-12 months

• Booking and rebooking

• BCBP

• Seat assignments

• Loyalty enrollment

• Airport information

• Push notification

• Roaming airport agents

12-24 months

• Merchandising offers

• LBS

• Ancillary services

• Loyalty bookings

• Social media integration for immediate response

24+months

• Movement tracking

• Advanced disruption management

• M-payments

• NFC



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Hotel Mobile Initiatives

Today

• Access loyalty account

• Find and book hotels

6-12 months

• Location-based search

• Check-in

• Book loyalty room nights

• Mobile concierge front desk and operational staff

12-24 months

• On-property promotions

• Check-out

• In-room services

• Mobile concierge

24+months

• Local promotions and merchandising

• Mobile room entry

• M-payments

• NFC


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Car Rental Mobile Initiatives

Today

• Booking

• Access reservation

• Change reservation

6-12 months

• Ancillary products

12-24 months

• Check-in

• Checkout

• Mobile deals/promotions

• LBS

• Social media integration

• Car entry

• Access loyalty account

• Push notifications

24+months

• M-payments

• NFC


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We Are at the Beginning of the Tablet Revolution

Source: Yankee Group

Global tablet sales will reach >200 million worldwide by 2015, with major growth in Asia Pacific and EMEA

Tablets’ Growth Is Global and Frequent Travelers Are Early Adopters


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Note to self: accelerate mobile strategy... don’t just repurpose our website


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Social Web


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USA Brazil Russia India China


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Activities Conducted Through Online Social Networks

Question: Please select the travel-related activities you do or are interested in doing through an online social network. Select all that apply. Base: Social network users: French travelers (N=504), German travelers (N=527), U.K. travelers (N=504) Source: PhoCusWright’s European Consumer Travel Report Second Edition

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Share updates/pictures/videos about my travel experiences

Get recommendations from friends about local activities

Get destination advice from friends

Keep up with friends' travel itineraries and/or share mine

Plan trips collaboratively with my friends/family

Search for travel reviews written by people like me

Browse/search for travel deals from companies

Get advice from friends about which travel products to purchase

Keep up with announcements from travel companies

Book travel

I have no interest in using online social networks for travel

France Germany U.K.


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Influence of Social Media Channels on Purchasing Decisions

Question: How influential have each of the following features been to you when making travel purchasing decisions in the past 12 months? Select one for each option. Base: U.S. online travelers (N=1,948) Note: Totals may not add to 100% due to rounding Source: PhoCusWright's Traveler Technology Survey 2011

26%

22%

16%

14%

12%

9%

45%

42%

44%

34%

34%

31%

29%

36%

40%

52%

53%

61%

Traveler reviews on online travel agency websites, such as Expedia

Traveler review websites, such as TripAdvisor

Online reviews from travel professionals

Comments from people in my online social network, such as Facebook or Twitter

Travel blogs or online travel forums

Company information/promotions on an online social network, such as Facebook or Twitter

Very influential Somewhat influential Not at all influential



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On Social Network Site

E-Commerce

Video and Photos

Reputation on Management

E-Commerce

Community

Community

Corporate Communications

Vehicle

Social Buying


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What are the take aways:….. 1. 2. 3. 4. 5.

Thank you!

Cees Bosselaar [email protected]

a phocuswright speaking engagement technology and the new...

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