online travel research snapshot: rtonz online marketing...

Online Travel Research Snapshot: RTONZ Online Marketing Program

June 1, 2011

Cathy Schetzina Senior Research

Analyst, PhoCusWright Inc.

Cees Bosselaar Director, Business Development and

Destination Marketing Specialist,

PhoCusWright Inc.

© 2011 PhoCusWright Inc. All Rights Reserved.

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Maximize Influence


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Agenda

1. Online Travel Takes Over the World

2. Local and Social and Mobile, Oh My!

3. The Million-Dollar Question: “How DO Travelers

Decide Where to Go?”

1. Online Travel Takes Over the World


5

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Online Leisure/Unmanaged Business Travel Penetration by Market, 1992

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


6

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

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


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APAC •The total travel market is now

number two in size, but number one in growth •But growth varies widely: “surging

emerging” vs. mature markets •At US$53B in 2010, online travel is

no longer nascent •APAC online travel growing at more

than twice the rate of the total travel market •China: when will the tiny giant

awake? •Mobile acceleration: do you play

leapfrog?


9

$0

$5

$10

$15

$20

$25

$30

Japan ANZ China India Singapore

APAC Key Markets Online Leisure/Unmanaged Business Travel Gross Bookings by Market (US$B), 2010 (in order of gross bookings)

Note: 2010 projected. Source: PhoCusWright’s Global Online Travel Overview Second Edition


10

0%

5%

10%

15%

20%

25%

30%

35%

Japan ANZ China India Singapore

APAC Key Markets Online Leisure/Unmanaged Business Travel Gross Bookings Average Annual Growth Rate by Market, 2010-2012 (in order of 2010 gross bookings)

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

2. Local and Social and Mobile, Oh My!


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Mobile Travel Applications for Leisure Travel

Dream

Book Explore

Share

Explore destinations, view sample itineraries

Plan day-by-day activities

Book alternatives during service disruptions and ancillary services such as hotels, restaurants, and ground transportation

Navigate location and explore surroundings. Explore cultures and historical sites based on your preferences

Share experiences while traveling

Plan

Source: PhoCusWright Inc.


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MOJO

Right Product

Right Person

Right Place

Right Time

Social: Traveler reviews Social networks Traveler video

Mobile: Maps, Apps, Targeted content

Source: PhoCusWright Inc.


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35%

28%

25%

21%

20%

19%

17%

16%

14%

16%

14%

17%

22%

16%

18%

20%

51%

56%

61%

62%

58%

64%

65%

64%

View maps/get directions online

Research local activities such as restaurants and showsonline

Research travel products such as hotel rooms or flightsonline

Reserve/purchase local activities such as restaurants andshow tickets online

Check-in for flight, hotel, train, or car rental

Reserve/purchase travel products such as hotel rooms orflights online

Make online changes to existing travel reservations

Use as a boarding pass or ticket for flight or train

Likely to do and have in the past Likely to do and have not in the past Not likely to do in next 12 mos.

Travel-Related Mobile Phone Activities (U.S.)

Note: Totals may not add to 100% due to rounding Source: PhoCusWright's Traveler Technology Survey 2010


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Future Mobile Phone Activities, By Age (France, German, U.K. Markets Combined)

Base: Mobile phone users; French travelers (N=744), German travelers (N=730), U.K. travelers (N=714) Source: PhoCusWright’s European Consumer Travel Report

0% 10% 20% 30% 40% 50% 60%

Browse the Internet

View maps or get directions

Research local activities such as restaurants andshows

Reserve/purchase local activities such as restaurantsand show tickets

Research travel products such as hotel rooms orflights

Reserve/purchase travel products such as hotelrooms or flights

Make changes to existing travel reservations

Check-in for flight, hotel, train, or car rental

Use as a boarding pass or ticket for flight or train

18-24

25-34

35-44

45-54

55-64

65+

Average

3. The Million-Dollar Question: “How DO Travelers Decide Where to Go?”

?


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Not all Travelers Get to Choose Their Own Adventure


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Leisure Destination Types (Incidence Among Travelers)*

*Respondents were asked to count each trip once in the most relevant category Base: U.S. travelers (N=2,755), French travelers (N=807), German travelers (N=793), U.K. travelers (N=783) Source: Destination Unknown: How U.S. and European Travelers Decide Where to Go

5%

5%

11%

24%

39%

65%

5%

10%

11%

15%

36%

61%

5%

9%

14%

16%

45%

63%

8%

9%

9%

23%

55%

57%

Destination where you have a timeshare or fractionalownership of property

Destination where you added a leisure stay as an extensionof a business trip

Destination where you, friends, or family own a holidayhome

Destination where you attended a social event, such as areunion or wedding

Destination where you visited friends or family casually (notdriven by a social event, such as a reunion or wedding)

Destination that you selected independently (excluding all ofthe above)

U.S.

France

Germany

U.K.


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Influences on Destination Selection

Base: Travelers who have selected a destination independently: U.S. travelers (N=1,569), French travelers (N=507), German travelers (N=477), U.K. travelers (N=510) Source: Destination Unknown: How U.S. and European Travelers Decide Where to Go

0% 10% 20% 30% 40% 50% 60% 70%

Personal wish to visit the destination

Price of hotel/lodging

Climate

Prior experience (enjoyed a previous trip there)

Cultural attractions

Appeal of hotel/lodging amenities

Fit with travel dates

Price of airline ticket

Proximity

Available activities

Recommendation by friends/family

Affordability of dining and shopping

Special event, such as a concert or sporting event

Other

U.S.

France

Germany

U.K.


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Factors Affecting Destination Selection

Base: Travelers who have selected a destination independently: U.S. travelers (1,569), French travelers (N=507), German travelers (N=477), U.K. travelers (N=510) Source: Destination Unknown: How U.S. and European Travelers Decide Where to Go

70%

16%

5%

3%

3%

3%

54%

22%

3%

11%

8%

3%

59%

24%

2%

6%

6%

2%

60%

20%

7%

5%

5%

3%

I had the specific destination in mind and planned thistrip around it

I chose between a number of destinations I had in mind

I had some destinations in mind but considered newoptions as I began researching and planning

I had no specific destinations in mind until I startedresearching and planning

I hadn't been thinking about taking this trip, but saw agood deal for this destination and decided to book it

Other

U.S.FranceGermanyU.K.


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Majority

I had the specific destination in mind

and planned this trip around it

Leisure Destinations Inspire Travel

Target the Traveler, Not the Trip

Opportunity to Influence = Long Term


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U.S. and European Travelers Typically Use the Internet When Selecting a Destination

Means exclude zero. Base: U.S. travelers (N=2,755), French travelers (N=815), German travelers (N=802), U.K. travelers (N=788) Source: Destination Unknown: How U.S. and European Travelers Decide Where to Go

76%

80%

84%

81%

U.S. France Germany U.K.


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Information Sources Used for Destination Selection Phase

Base: U.S. travelers= 1,569, French travelers (N=660), German travelers (N=665), U.K. travelers (N=681) Source: Destination Unknown: How U.S. and European Travelers Decide Where to Go

0% 10% 20% 30% 40% 50% 60% 70%

Websites via computer

Personal recommendations from friends/family

Information in printed travel guidebooks

Printed publications, articles, or brochures

Online advertising

Websites or applications via mobile device

Personal advice from travel professionals/travel agents

Calls to travel providers, such as airlines and hotel companies

Printed advertising

Calls/visits to local destination or national tourism offices

Programs on TV/radio

TV/Radio advertising

Other

U.S.

France

Germany

U.K.


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Information Sources Used for Destination Selection Phase

Base: U.S. travelers= 1,569, French travelers (N=660), German travelers (N=665), U.K. travelers (N=681) Source: Destination Unknown: How U.S. and European Travelers Decide Where to Go

12%

5%

16%

5%

13%

7%

12%

6%

Online advertising

Printed advertisingU.S.

France

Germany

U.K.


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“Very Influential” Online Features for Leisure Travel Planning

Base: U.S. travelers who typically use websites to plan travel (N=2,558), French travelers (N=815), German travelers (N=802), U.K. travelers (N=788) Source: Destination Unknown: How U.S. and European Travelers Decide Where to Go

0% 5% 10% 15% 20% 25% 30%

Traveler-generated online travel video

Professional online travel video

Professional online photography/virtual tours

Traveler-generated online photography/virtual tours

Interactive maps that display lodging and attractions

Comments on an online social network from people you do not know

Travel blogs or online travel diaries

Comments on an online social network from people you know

Online travel reviews from travel professionals

Traveler review websites (such as TripAdvisor)

Traveler reviews on online travel agency websites (such as Expedia)

Feat

ure

sSo

cial

Med

ia

U.S. France Germany U.K.


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Maximize Influence

1. Connect: Global Travelers Shift Online 2. Innovate: Social, Local, Mobile 3. Inspire: Target the Traveler, Not the Trip

Thank You!


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• U.S. Online Travel Overview • European Online Travel Overview • India Online Travel Overview • China Online Travel Overview • Australia/New Zealand Online Travel Overview • Latin America Online Travel Overview

• DMO Study • Mobile Travel Studies • PhoCusWright’s 2011 Technology Trend Predictions • U.S. Travel Agency/Tour Operator Study • Social Media Analytics • Activities, Attractions and Events Study • Destination Unknown: How U.S. and European Travelers

Decide Where to Go

Sample Publications

PhoCusWright Syndicated Research


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Exclusively developed for DMOs/CVBs/RTOs:

The PhoCusWright Group Subscription:

Get access to ALL syndicated research, but SHARE the costs among a group of DMOs

(for more info: contact Cees Bosselaar at [email protected]

or +1 860 350-4084 #445 or ask Chris Adams)

mailto:[email protected]


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Canada Australia Arizona California

Canadian Tourism Commission Tourism Australia Arizona Tourism Office California Travel & Tourism Commission

New Brunswick Tourism and Parks Australian Capital Tourism Phoenix Los Angeles

Newfoundland and Labrador Tourism Hamilton Island - Great Barrier Reef Tucson San Diego

Nova Scotia Department of Tourism South Australian Tourism Commission Scottsdale San Francisco

Office du Tourisme de Québec Tourism New South Wales (NSW) Tempe Monterey County

Ontario Tourism Tourism Northern Territory (NT) Glendale Laguna Beach

Tourism British Columbia Tourism Queensland Santa Barbara

Tourism Saskatchewan Tourism Tasmania Fresno

Travel Alberta Tourism Victoria Anaheim/Orange County

Travel Manitoba Tourism Western Australia

Calgary Convention & Visitors Bureau

Quebec City Tourism

Ottawa Tourism

Toronto Convention and Visitors Association

Tourism Saskatoon

Tourisme Montréal

Tourism Vancouver

PhoCusWright Group CVB/DMO Subscription

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