TRAVEL TRENDS 2011, presented at USTOA by Forrester

© 2010 Forrester Research, Inc. Reproduction Prohibited1

© 2010 Forrester Research, Inc. Reproduction Prohibited2 © 2009 Forrester Research, Inc. Reproduction Prohibited

Prospering In 2011

Henry H. Harteveldt, Vice President, Principal Analyst

Twitter: @hharteveldt

December 10, 2010


Source: Warner Bros.

We depend on the kindness of strangers but by better understanding our customers and their use of technology, we can be more independent and successful.


What is the 2011 outlook for leisure travel?

How do different generations of leisure travelers interact

with technology to plan and shop for travel online?

What affects the decision making of different generations

when planning a trip—and what should you do to

succeed?

Agenda







succeed?

Agenda


Numerous factors can affect economic recovery and consumers‘ willingness to travel

Sources: Google Images


College grads are twice as likely to be employed as people with only a high-school degree

Source: Bureau of Labor Statistics


Q3 2010 Customer Confidence -3 Points from Q3 ‗09


$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

Jan.Feb.Mar. Apr. May Jun Jul Aug Sep Oct Nov Dec

2008

2009

2010

2010 consumer retail sales are ahead of 2009, creating hope for 2011

$ millions

Source: US Dept. Of Commerce, US Census Bureau Monthly Retail Trade Report


13%

15%

12%

16%

13%

13%

8%

11%

11%

10%

54%

58%

56%

58%

57%

4%

6%

6%

4%

8%

15%

11%

14%

10%

12%

0% 20% 40% 60% 80% 100%

Gen Y (18-30)

Gen X (31-44)

Younger Boomeers (45-54)

Older Boomers (55-65)

Seniors (66+)

Spend at least 10% more

Spend 5% to 10% more

No change in travel spending

Spend 5% to 10% less

Spend at least 10% less

My household spends no money on leisure travel

Most travelers intend to spend about the same on travel in 2011 as they did in 2010

“How do you and members of your household expect your travel-related spending

will change in the NEXT 12 MONTHS?”

Base: US online leisure travelers

Source: North American Technographics Retail, Travel, Customer Experience, And Financial Services Benchmark

Survey, Q3 2010 (US, Canada)


$0

$20

$40

$60

$80

$100

$120

2010 2011 2012 2013 2014

Tours/packages

Cruises

Rental cars

Hotel

Air

Forecast: $840 million of tours and packages to be booked online in 2011 in the US, up from $790 million in 2010

Source: Forrester‘s US Online Leisure Travel Forecast, 2009-2014


Travelers embrace ―neoFrugal Chic‖

Saving as a point of pride

Every major purchase is

heavily researched and

considered

Travel is a reward, not an

entitlement

Source: Google Images



How do different generations of leisure travelers

interact with technology to plan and shop for

travel online?



succeed?

Agenda


22%

30%19%

19%

10%

US leisure online travelers

Gen Y (18-20)

Gen X (31-44)

Younger Boomers (45-54)


Seniors (66+)

More than half of online travelers are under age 45


Source: North American Technographics® Travel Online Study, Q1 2010


Boomers spend the most on leisure travel

88

99

110

109

95

Gen Y (18-30)

Gen X (31-44)



Seniors (66+)

Average

Boomers and Seniors account for 51% of leisure travel

spending



Index of reported 2010 annual leisure travel spending


Technology is a means to an end

The younger the traveler, the more open

they are to technology

Travelers may like technology, but…

Most don‘t see technology as being

―important‖ to them

Put customer benefits at the forefront of

any technology solution you offer – don‘t

let technology get in the way



35%

46%

45%

49%

51%

55%

67%

70%

72%

70%

Seniors (66+)



Gen X (31-44)

Gen Y (18-30)

It's easy to use the Internet to plan and buy travel

I enjoy planning and buying travel on the Internet

Travelers may find digital channels easy to use, but most don‘t enjoy the online travel planning and booking process



Percent who agree with the following statements

(4 or 5 on scale of 1 (disagree completely) to 5 (agree completely)


We make it increasingly confusing for our customers to buy our products and get the value they seek

Do I have to pay to

check my bags?

How much? Are you

kidding me?

Is it a nice hotel? Is it

safe? Which is

better, a superior or

deluxe room?

When is the weather

best?

Where are some

nice places to eat

and shop? What

else is there to do?

Would I save money

if I went on another

day? Or a different

month?

How can I trust what

you‘re telling me?

Should I buy the cheapest fare or something else?

Remember, this is your inheritance we‘re talking

about.Source: Google Images



Source: North American Technographics® Travel Online Study, Q1 2010; North American Technographics® Travel Online Study, Q1 2008

Compared to 2008, 22% more US leisure travelers in 2010 would use a travel agent if they could find one



We‘re not setting ourselves up for success in 2011

Most leisure travelers in 2010 don‘t feel that travel Web sites allow them to

obtain the information they need to make well-informed decisions about

what to buy

Boomers and Seniors don‘t feel they‘re able to obtain the value they seek

and expect from travel Web sites

A critical mass of travelers don‘t trust the Internet to give them accurate

travel information


57%

71%

73%

75%

70%

21%

14%

14%

14%

14%

23%

15%

13%

11%

16%

Seniors (66+)



Gen X (31-44)

Gen Y (18-30)

Bookers

Lookers

Sideliners

The majority of US online leisure travelers buy at least some portion of their travel online




65%

73%

77%

76%

72%

65%

67%

71%

71%

66%

Seniors (66+)



Gen X (31-44)

Gen Y (18-30)

Book

Research

Bookers buy both online and offline, so you need a multichannel selling presence

Percent of leisure travel researched and booked online

Base: US online leisure Bookers



0%

10%

20%

30%

40%

50%

60%

70%

Gen Y (18-30)

Gen X (31-44)



Seniors (66+)

Offline travel agency

Call supplier directly

Offline travel agency Web site

Metasearch site

Travel sales & specials site

Opaque travel agency site

Online travel agency

Supplier Web site

General search

No two generations of traveler uses exactly the same mix of channels to research their trips




0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Gen Y (18-30)

Gen X (31-44)



Seniors (66+)

Offline travel agency

Call supplier directly

Offline travel agency Web site

Opaque travel agency site

Online travel agency

Supplier Web site

Younger travelers tend to use online intermediaries, older travelers tend to book directly with suppliers




Prepare for new channels and entrants to affect the way you distribute and sell your products





What affects the decision making of different

generations when planning a trip—and what should

you do to succeed?

Agenda


How we sell

Where are you starting?

Where are you going?

When do you want

to leave?

When do you want

to return?

How many in

your party?

(Etc.)


―How long do I want to be

away for?‖

―Who‘s traveling with me?‖

―What do I want included in the price?‖

―How much do I want to spend?‖

―How do I want to feel

when I return?‖

―What do things look and feel like?‖

―Will the hotel be clean?‖

―How long do I want to

stay away for?‖

―What do my friends think/know?‖

―What else do I want

included in the trip?‖

―What‘s the nightlife like?‖

How travelers buy

―How do I know this place is safe?‖ ―What do I feel like doing?‖

―How much comfort will I pay for?‖


We‘re retailers – to prosper, we can‘t push things to our customers, we have to tempt them



Travelers don‘t always know where they want to go



51%

54%

61%

48%

43%

46%

48%

39%

47%

38%

37%

42%

42%

36%

39%

Staying within my budget is more

important than going to my first-choice

destination

In general, I select the lowest-priced travel

options available

I will accept some inconveniences in order to save money when I

travelGen Y (18-30)

Gen X (31-44)



Seniors (66+)

Many travelers are focused on saving money…






0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Gen Y (18-30)

Gen X (31-44)



Seniors (66+)

Travel is an area in which I'm willing to indulge myself

I will pay above-average prices for noticeably better quality travel products or service

I will pay above-average prices for travel products that save me time and hssle

Yet some travelers will consider trading up – given the right mix of rational and emotional reasons






How to view traveler brand loyalty as we enter 2011



0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Gen Y (18-30)

Gen X (31-44)



Seniors (66+)

Travel advertisements help me decide what to buy

I'm annoyed by the amount of travel advertising today

I rely a lot on recommendations from my friends/family when making travel purchases

Adding to your challenges: It‘s tough for marketing messages to reach an increasingly self-directed traveler






58%63%

72%

2008 2009 2010

Percent of US online leisure travelers who participate in social media

Social media can help travel sellers get around and through travelers‘ resistance to ―formal‖ marketing




16%21%

35% 36%

43%

Gen Y (18-30) Gen X (31-44) Younger Boomers (45-

54)


Seniors (66+)

Percent of US online leisure travelers who do not participate in social media

Social media may have been created for younger consumers, but everyone now uses it





Social commerce, just starting now, will be expected by the next generation of customers


Video engages travelers of all ages – and can lead to more sales

Travelers are 3X more likely to watch a brand‘s video than a video posted by

another traveler


A typical Smartphone in 2010 has the same amount of computing power as Apollo 11

=



Devices are evolving – it‘s time to rethink mobile



18%

21%

13%

8%

3%

0%

5%

10%

15%

20%

25%

Gen Y (18-30)

Gen X (31-44)

Younger Boomers (45-

54)

Older Boomers (55-

65)

Seniors (age 66+)

Gen X travelers lead in Smartphone ownership – for now

Base: US online leisure travelers who own a mobile phone


Percent who own a Smartphone device


Augmented reality overlays on mobile devices will enhance a traveler’s

journey, and create sponsorship or advertising opportunities for smart

travel companies


What should you do to prosper in 2011?


You have multiple opportunities and channels in which to sell – create your ―story arc‖

Planning Purchase Departure Trip Return Next Trip

Story arc


Take steps to make your digital channels as flexible and comprehensive as your offline channels


Create new ways to help travelers find the value you offer


Make it easy for travelers to open their wallets


Make sure you offer the right written and visual content –and enable to traveler to configure it to her needs


Let travelers share your content in their social networks


Plan to become mobile-friendly

© 2009 Forrester Research, Inc. Reproduction Prohibited

Thank you

Henry H. Harteveldt

+1 415.206.0889

[email protected]

Twitter: @hharteveldt

www.forrester.com

Date post:	12-May-2015
Category:	Documents
Upload:	profimercadeo-marketing-consultants
View:	7,734 times
Download:	0 times

TRAVEL TRENDS 2011, presented at USTOA by Forrester

Documents