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Google Confidential and Proprietary
Google & Compete Present:
Understanding Destination Travel Shopping
June 16, 2009
Google Confidential and Proprietary
Contents
1 Overview & Methodology
2 Consumer Outlook for Destination Travel
3 How Destination Travel is Shopped Today
4 Opportunities for Travel Marketers
5 Appendix
Google Confidential and Proprietary
Overview & Methodology
OverviewThe purpose of this study is to understand how consumers make decisions in their
destination travel shopping, and what is important to them as they research and book.
Specifically, this study seeks to use clickstream data to break down the online destination
travel shopping process, and to use survey data to quantify consumer attitudes and
feelings about this process.
Methodology• Clickstream Analysis
– Conducted on Compete’s proprietary U.S. consumer panel
– Timeframe: April 2008 April 2009
• Focus on consumers shopping specific list of leisure destinations
• Behavior studied across thousands of travel content and booking websites
– Segmented into groups of panelists researching each destination of interest
• Survey– Compete invited consumers who had recently booked leisure destination travel or planned to soon do so
– Fielded 4/18/09 – 4/23/09
– Sample size = 1406 qualified respondents
Google Confidential and Proprietary
Key Findings
Destination travelers are optimistic and can be influenced:
Travel Research & Bookings continue to rise, with strong growth in Q1 2009 vs. the previous year
Affordability is a critical factor in choosing a destination
Search is the most widely used sources to learn about or choose a destination
Research and search behavior varies by destination type
Over 70% of searches occur prior to the day of booking
Google Confidential and Proprietary
Contents
1 Overview & Methodology
2 Consumer Outlook for Destination Travel
3 How Destination Travel is Shopped Today
4 Opportunities for Travel Marketers
5 Appendix
Google Confidential and Proprietary
0%
2%
4%
6%
8%
10%
12%
14%
16%
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
Researchers Bookers Booking Rate
Online travel activity is near all time highs
Online Travel Researchers & Bookers(Volume of US consumers researching or booking air, hotel, car, cruise, or package)
• 30 million US consumers researched travel in April 2009, down slightly from
record in March
Read As:
30 million U.S. consumers
researched travel online in April
2009, and 14% or 4.1 million
had at least one booking
Google Confidential and Proprietary
80% of travelers plan on as many or more trips in ’09 as compared to ‘08
Thinking about leisure trips you have taken or may take in 2009, the number of trips will be…(n=1406, all consumers in-market for or recently booked destination travel)
• While some consumers plan to cut back, even more expect to add on
20%
57%
23%
Less than 2008 About the Same as 2008
More than 2008
Source: QS11 – “Thinking about any leisure trips you may take in 2009, would you say the number of trips you'll take will be...” N=1406
Google Confidential and Proprietary
Many leisure travelers can be influenced in choosing a destination
Which statement best describes how you think about planning your leisure travel?(n=1406, all consumers in-market for or recently booked destination travel)
• 35% know their ideal type of destination but have not selected one
specifically; additional 4% completely undecided
61%
35%
4%
Know exactly where I want to go
Know type of destination I want, but do not have specific one in mind
Neither a type nor a specific destination in mind
Source: QS1 – “Which of the following statements best describes how you think about planning your leisure travel?” N=1406
Google Confidential and Proprietary
Most interest among U.S. consumers is for domestic trips
Are you considering domestic or international destinations for your next leisure trip?(n=731, only consumers in-market for upcoming or in planning destination travel)
• About 8% considering both domestic and international
82%
26%
Domestic International
Top Domestic
Destinations
ConsideredLas Vegas – 19%
Orlando – 15%
New York City – 10%
Honolulu – 10%
Wash DC – 9%
Maui – 9%
Miami – 8%
San Diego – 7%
San Francisco – 7%
Los Angeles – 7%
Top International
Destinations
ConsideredMexico – 29%
Italy – 22%
Bahamas – 20%
Japan – 13%
Ireland – 12%
Jamaica – 12%
Aruba – 11%
France – 11%
Canada – 11%
Puerto Rico – 11%
Source: QD2A – “Are you considering domestic or international destinations for your upcoming leisure trip?” N=731
Source: QD3A – “Specifically, which of the following domestic destinations have you considered for your upcoming leisure trip?” N=598
Source: QD4A – “Specifically, which of the following international destinations have you considered for your upcoming leisure trip?” N=191
Google Confidential and Proprietary
Over half of consumers spend 2+ weeks considering destination types
How much time do you spend in each phase of the travel planning process?(n=1406, all consumers in-market for or recently booked destination travel)
• Once decided, 78% spend 1+ week shopping for components, looking for
deals
9%
2%
4%
34%
20%
18%
23%
26%
22%
23%
36%
35%
10%
15%
22%
Finalizing & booking trip components
Shopping for trip components, looking for
deals
Considering various types of destinations
1 Day 1 Day - 1 Wk 1-2 Wks 2 Wks - 2 Mos Over 2 Mos
Source: QS2 – “Approximately how much time do you typically spend in each of the following phases of the travel planning process?” N=1406
Google Confidential and Proprietary
36%
18% 20% 17% 16% 14%
43%
22% 15% 15%12%
8%
Affordable destination
Family friendly
Direct flight available
No car rental
required
No flight required
Couple friendly (eg,
no kids)
Destination for seniors
GLBT friendly
Very important Extremely important
Travelers’ top priority is destination affordability
How important are each of the following in choosing the destination for your trip?(n=1406, all consumers in-market for or recently booked destination travel)
• Many shoppers also place heavy emphasis on family-friendly trips
Top 2: 79%
40%35% 32%
28%22%
9% 7%
Source: QD8 – “How important are each of the following in choosing the destination for your trip?” N=1406
Google Confidential and Proprietary
Consideration of upscale hotels likely driven by promotions
Which accommodations did you / do you plan to book for your upcoming trip?(n=1112, only consumers in-market for or recently booked lodging for destination travel)
• 35% of shoppers are expecting to book an upscale / full service property on
their next trip
38%35%
18%15% 15%
9% 9%7% 5%
Mid-scale hotel
Upscale hotel
Economy hotel
All-inclusive Vacation rental
Bed & Breakfast
Luxury hotel Other Boutique hotel
Source: QD7, QD7A – “You mentioned booking lodging. Which types of accommodations <did you book / do you plan to book>?” N=1112
Google Confidential and Proprietary
Accommodation upgrades are the most popular upsell
Please select which you are most willing to pay for when you take a leisure trip.(n=1406, all consumers in-market for or recently booked destination travel)
• The first choice for 31% of consumers is to pay more for accommodations at
their existing destination
31%
27%
13% 13%
8%
5% 4%
Accommodations at destination
Visiting specific destination over
others
Dining and restaurants
Vacation activities
Tours & activities at destination
Travel upgrades to/at destination
Shopping at my destination
Source: QS10 – “Now, please think about what you are most willing to pay for when you take a leisure trip. Please rank the following from
most willing to pay for (1) to least willing to pay for (7).” N=1406
Google Confidential and Proprietary
Package sellers must raise awareness of potential savings & affordability
How did you or do you plan to purchase your trip components?(n=1027, only consumers in-market for or recently booked relevant travel components for destination travel)
• Only 24% expect to book components of their next trip in a bundled package
76%
24%
As a package
Individually
Source: QD5A – “How <did you book / do you plan to book> your trip components?” N=1027
Google Confidential and Proprietary
39% 37%33% 33%
23%17% 15% 13%
24% 24%
23%15%
14%
8%7%
6%
Sightseeing Entertainment & amusement
Nature & outdoor activities
Parks & gardens
Art and culture Sports & recreation
Adventure sports
Social activities /
meet people
Very important Extremely important
Destination shoppers want a mix of activities available
How important is it that the destination have the following entertainment or activities?(n=1406, all consumers in-market for or recently booked destination travel)
• Entertainment, sightseeing, outdoor activities, all important to most shoppers
Top 2: 63% 61%
55%
49%
38%
25%22% 19%
Source: QD9 – “How important is it that your destinations have the following entertainment or activities available?” N=1406
Google Confidential and Proprietary
Almost everyone turns to the Internet to learn about and choose destinations
Which of the following do you use to learn about or choose leisure travel destinations?(n=1406, all consumers in-market for or recently booked destination travel)
• Heavy influence of family & friends for deciding on destinations
95%
66%
53%44%
27% 26% 24%18%
12% 10%5%
Internet Family & Friends
Brochures Magazines Books TV News papers
Travel agents
800 Number
Travel groups
Radio
Source: QS3 – “Which of the following sources do you use to learn about or choose leisure travel destinations?” N=1406
Google Confidential and Proprietary
15%
15%
20%
26%
38%
38%
41%
54%
59%
63%
66%
72%
Travel Planning Sites
Tour Operator Sites
General Discount …
Cruise Line Sites
Car Rental Sites
Travel Search Sites
Travel Review Sites
Destination Sites
Airline Sites
Hotel Sites
Online Travel Agency
Search engine
Search is the #1 online channel for destination research
Which online sources do you use to learn about or choose vacation destinations?(n=1339, only consumers in-market for or recently booked destination travel who use the Internet)
• A mix of other travel site categories are used as research sources, yet
search eclipses even Online Travel Agencies
Source: QS6 – “Specifically, which of the following online sources do you use to learn about or choose vacation destinations? ” N=1339
Google Confidential and Proprietary
Destination shoppers are attentive to search & email offers
Which advertisements do you typically pay attention to while planning your leisure travel?(n=1403, consumers in-market or recently booked destination travel who used any research source)
• Search and email provide an effective channel to reach new and repeat
customers
46% 45%
33%30% 30%
14% 13%9% 8%
Email offers
Search engine listings
Magazine ads
TV ads Direct mail Online banner
ads
Online video ads
Radio ads Outdoor ads
Source: QS8 – “Which of the following types of advertisements, if any, do you typically pay attention to while planning your leisure travel? ” N=1403
Google Confidential and Proprietary
Contents
1 Overview & Methodology
2 Consumer Outlook for Destination Travel
3 How Destination Travel is Shopped Today
4 Opportunities for Travel Marketers
5 Appendix
Google Confidential and Proprietary
The research process is intricate and multi-phased
Average User Statistics 30 Days Before Booking (14 Destination Aggregate, destination shopping behavior summary, Jan-Apr 2009)
• Activity levels before booking are very strong
Time Spent
Researching Online
4 hours
Unique Travel
Sites Used
20 sites
Search Referrals
to Travel Sites
5 clicks
Google Confidential and Proprietary
Travel Site Visits Made Per Consumer 30 Days Before Booking(total visits across all travel sites by consumers who ended up booking each destination, Jan-Apr 2009)
• Consumers booking destinations such as Bahamas, Caribbean, Hawaii are
nearly twice as active in the research phase
• Individual sites are frequented more than once on average
Foreign/exotic destinations inspire more thorough research
22.2 21.4
18.4 18.0 17.4 16.1 15.9 15.3 14.8 14.6 14.6 14.6 14.5 13.9 13.3
1.4 1.8 1.4 1.3 1.3 1.6 1.2 1.3 1.3 1.1 1.2 1.3 1.2 1.2 1.8
Unique Travel Sites Used
Visits Per Site
Google Confidential and Proprietary
Exotic locations tend to attract higher search volumes
Volume of Travel Searches 30 Days Before Booking(volume of total search clicks to travel sites in 30 days before online transaction, Jan-Apr 2009)
• Caribbean destinations studied all had over 7 travel searches per booker in
the 30 days leading to purchase
9.2
8.0 7.5 7.4
5.9 5.6 5.4 5.1 4.6
4.0 3.9 3.9 3.9 3.7 3.5
Google Confidential and Proprietary
71% of searches take place before the day of booking
Distribution of Searches By Time Period Before Booking (14 Destination Aggregate)
(percent of total search clicks to travel sites in each period before online transaction, Jan-Apr 2009)
• Researchers are most engaged one week prior to booking
4%
9%
18%
40%
29%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
4 Weeks Prior 3 Weeks Prior 2 Weeks Prior Week Prior Same Day
Time Before Booking Made
Google Confidential and Proprietary
OTAs are not capturing destination shoppers early
Distribution of Travel Searches: Category Clicked & Time Period (14 Dest Aggregate)
(percent of total search clicks to travel sites in each period before online transaction, Jan-Apr 2009)
• The majority of clicks happen prior to the day of purchase, yet OTA’s capture
lower share each previous period
30%
23%
20%
18%
18%
17%
16%
16%
16%
19%
13%
10%
10%
11%
10%
7%
9%
9%
10%
8%
6%
8%
10%
11%
10%
Day of Booking
Prior Week
2 Weeks Prior
3 Weeks Prior
4 Weeks Prior
OTAs Airlines Hotel Chains Planning & Reviews
Destination Sites Car Rental Other
Google Confidential and Proprietary
Performance in capturing search clicks can vary depending on the type of destination researched
Distribution of Searches by Category Clicked (select destinations)
(percent of total search clicks to travel sites in each category for 30 days before transaction, Jan-Apr 2009)
• Destination sites consistently capturing 8-10% of search activity
19%
22%
21%
30%
25%
24%
14%
13%
16%
18%
17%
17%
9%
18%
10%
6%
13%
8%
17%
6%
12%
6%
9%
10%
8%
10%
7%
7%
8%
9%
Caribbean
Chicago
Hawaii
Las Vegas
New York
Orlando
OTAs Airlines Hotel Chains Planning & Reviews
Destination Sites Travel Guides Car Rental Cruise Sites
Lead Generators Casinos Meta Search Vacation Rental
Other
Google Confidential and Proprietary
Destination sites must better engage their search traffic
Distribution of Research Time On Travel Sites (select destinations)
(distribution into subcategories of total time spent consumers who ended up booking each destination, Jan-Apr 2009)
• Despite receiving almost 10% of search clicks, destination sites capture only
a tiny fraction of research time
26%
26%
28%
46%
35%
43%
19%
28%
29%
23%
29%
28%
9%
22%
12%
5%
13%
6%
17%
4%
6%
4%
5%
4%
Caribbean
Chicago
Hawaii
Las Vegas
New York
Orlando
OTAs Airlines Hotel Chains Planning & Reviews
Destination Sites Travel Guides Car Rental Cruise Sites
Lead Generators Casinos Meta Search Vacation Rental
Other
Google Confidential and Proprietary
Contents
1 Overview & Methodology
2 Consumer Outlook for Destination Travel
3 How Destination Travel is Shopped Today
4 Opportunities for Travel Marketers
5 Appendix
Google Confidential and Proprietary
Recap of Key Findings
Destination travelers are optimistic and can be influenced:
Travel Research & Bookings continue to rise, with strong growth in Q1 2009 vs. the previous year
Affordability is a critical factor in choosing a destination
Search is the most widely used sources to learn about or choose a destination
Research and search behavior varies by destination type
Over 70% of searches occur prior to the day of booking
Google Confidential and Proprietary
Contents
1 Overview & Methodology
2 Consumer Outlook for Destination Travel
3 How Destination Travel is Shopped Today
4 Opportunities for Travel Marketers
5 Appendix
Google Confidential and Proprietary
Individual Destinations Studied (clickstream section only)
Destination Studied• Atlanta
• Bahamas
• Caribbean
• Chicago
• Dallas
• Jamaica
• Hawaii
• Las Vegas
• Los Angeles
• Miami
• New York
• Orlando
• Puerto Rico
• San Francisco
• When referenced in the clickstream section of this study, “All” represents an
aggregation of the 14 destinations listed above
Google Confidential and Proprietary
Website Categorization Examples (clickstream section only)
Orbitz
Priceline
Expedia
Travelocity
Online Travel
Agencies (OTA)
Southwest
United
JetBlue
Delta
Airlines
Apple Vacations
Funjet
Liberty Travel
Tauck
Vacation
Packagers
Travelzoo
ShermansTravel
Booking Buddy
Cheapflights
Lead Generators
Marriott
Kimpton
Choice Hotels
Holiday Inn
Hotel Chains
Kayak
Farecast/MSN
Mobissimo
Sidestep
Meta Search
Hertz
Budget
Thrifty
Avis
Car Rental
MGM Grand
Mandalay Bay
Wynn Las Vegas
Foxwoods
Casinos
Disney
Sandals
Atlantis
Nick Hotel
Independents &
Resorts
Royal Caribbean
Princess
Celebrity
Carnival
Cruise Lines
Vacations To Go
Cruises Only
Cruise.com
CruisesInc.com
Cruise Agencies
Amtrak
Greyhound
Peter Pan
Rail Europe.com
Bus & Train
VacationClub.com
Homeaway.com
Flipkey.com
GreatRentals.com
Vacation Rental
BuschGardens.com
CedarPoint.com
HersheyPA.com
Seaworld.com
Theme Parks
FlightArrivals.com
FlightInfo.com
Flightview.com
Skyteam.com
Traveler
Information
10Best.com
Away.com
Fodors.com
Frommers.com
Travel Guides
Aruba.com
LAcvb.com
Denver.org
Arkansas.com
Destination &
Tourism
TripAdvisor.com
CruiseCritic.com
Viator.com
IgoUgo.com
Planning &
Reviews
Google Confidential and Proprietary
Thank you