TripBarometer by TripAdvisor

7/29/2019 TripBarometer by TripAdvisor

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TripBarometer by TripAdvisor - Winter 2012 / 2013

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TripBarometer by TripAdvisorThe Worlds Largest Accommodation and

Traveler Survey

Winter 2012 / 2013


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TABLE OF CONTENTSINTRODUCTION

OBJECTIVES

EXECUTIVE SUMMARY

DETAILED FINDINGS

PART ONE: THE TOURIST PERSPECTIVE

1.THE TRAVEL EXPERIENCE AND PLANNING PROCESSi. Motivation and travel companionsii. The planning process

2.INFORMATION SOURCESi. Main sources of informationii. Social media information

3.THE ROLE OF SOCIAL MEDIA AND ONLINE REVIEWSi. Influence of social media on trip plansii.

Importance and impact of travel review websites on trip plans

iii. Importance of other travelers reviews on accommodation booking4.ACCOMMODATION MONITOR

i. Number of properties consideredii. Decision-making factorsiii. Booking channelsiv. Importance of amenities and servicesv. Importance of environmentally sustainable practicesvi. Average costvii.Writing reviews and recommendations

5.TRAVEL AND TECHNOLOGYi. Digital engagement before and after a tripii. Use of devices on trips and mobile bookings

6.2013 PREDICTONSi. Budget and barriers to travel


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PART TWO: THE OPERATOR PERSPECTIVE

1.BUSINESS OUTLOOKi. 2012 profitabilityii.Business mood for 2013

2.BOOKINGSi. Channels of distributionii.Booking timescaleiii.Guest decision-making factors

3.GUEST REVIEWSi. Reviews and bookingsii.Monitoring reviewsiii.Encouraging guest reviewsiv.Positive and negative reviewsv. Actions taken after receiving reviews

4.AMENITIES AND SERVICESi. Current amenities and servicesii.Plans for amenities and servicesiii.Environmentally sustainable practices

5.SOCIAL MEDIA AND MOBILEi. Prioritisation of social media within the marketing planii. Importance of mobile bookingsiii.Mobile engagement

APPENDIX: METHODOLOGY


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INTRODUCTION

As the worlds largest travel website1, TripAdvisor and its community of millions of travelers

and businesses is a key source of insight into the travel industry. Building on the success of

previous Industry Index and annual Travel Trends surveys, TripAdvisor has commissionedthis independent research amongst both accommodation businesses and consumers (who

research and book travel online), into one comprehensive study, the TripBarometer by

TripAdvisor.

This twice annual study covers the travel attitudes and behaviors of consumers as well as

the accommodation industrys plans and expectations for the year ahead. Topics are as wide

ranging as accommodation providers economic outlook to their efforts to meet the

expectations of tech-savvy travelers, as well as tourists travel plans for 2013 and travel

budget predictions. A key element of this survey is to look at both sides of the story the

tourist and the operator perspective.

The TripBarometer by TripAdvisor is based upon an online survey conducted in December

2012 January 2013. A total of 35,042 people participated in the online survey from 26

countries spanning 7 regions. The sample is made up of 15,595 consumers2 and 19,447

businesses, making it the worlds largest combined accommodation provider and traveler

survey.

OBJECTIVES

The overarching objective of this research is to provide a detailed analysis of both traveler

and accommodation industry trends across various countries and regions.

The key areas of investigation for the consumer survey are: Travel decision-making factors Information sources when planning travel The use of technology on trips The role of reviews and social media in travel planning and booking Appetite for booking travel via mobile devices Demand for accommodation amenities and services

1 Comscore. Media Metrix for TripAdvisor sites, Worldwide, July 2012

27226 consumers were recruited to take part in the survey through a pop-up survey on the TripAdvisor websiteand 8369 were recruited through an independent online panel.


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The key areas of investigation for the accommodation business survey are: 2012 profitability and 2013 predictions Guest decision-making factors Importance of property amenities and services Property promotions The role of social media Capabilities and perceptions of mobile bookings Impact of guests reviews


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EXECUTIVE SUMMARY

1.THE CONSUMER PERSPECTIVETOURISTS PLANNING TO SPEND MORE ON TRAVEL IN 2013Nearly half of consumers (49%) plan on increasing their travel budget for 2013 compared to

2012. People around the world are also willing to invest in their touristic experience, and

value the accommodation they stay in, with a reported average nightly accommodation

spend for the last trip coming in at $117.

HITTING THE BEACH AND CRAVING CULTUREWith consumers globally mostly travelling for leisure purposes (68%) they are in search of

sun, sea, surf and sand with 20% of consumers hitting the beach for their last holiday. Thenext most popular types of holidays were cultural (16%) and city based (13%). This type of

experience away from the daily grind offers people the opportunity to connect with those

closest to them, with the vast majority of people travelling with their partners (58%), children

(18%) and other family members (17%).

When it comes to selecting accommodation for a trip, price (76%) and location (68%) are the

most important selection criteria. However, the importance of other travelers opinions is

also evident, with 44% choosing their last property solely based upon online reviews.

PLANNING AND BOOKING THE TRIP - ONLINE SOURCES THE GO TO TRAVEL RESOURCEThe tourist planning and booking process varies considerably depending on the type of trip.

While short breaks are more spur-of-the-moment escapes (69% book these trips within four

weeks of travel), people invest a lot more time into the planning process for longer

getaways. For longer trips, people start the planning process well in advance, with 71%

starting to plan this type of escape at least two months beforehand, and 61% actually

booking the trip at least two months in advance.

When planning and researching their last trip, online platforms were the main source of

travel information (92%), and most people booked their accommodation through web based

travel agencies (27%) and accommodation providers website (23%). Less than one out of ten

(9%) booked their last trip through an offline travel agent.

Trust is essential in the tourist decision-making process. Online travel sources stand out as

being the most trusted source of travel information. In particular, travel review websites are

the most trusted (32%) and most useful (38%) source of information for people as they plan

and research their trips.

A COMMUNITY OF TOURISTS SPREADING THE WORD USER GENERATED CONTENT IS KEYWord-of-mouth is a powerful source of information in helping people devise their travel

plans. Tellingly, the vast majority of people (90%) placed importance on other peoples


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reviews when booking the accommodation for their last trip. Other peoples evaluations on

travel review websites influenced most peoples travel plans (93%).

Consumers do not just read the travel reviews of others; they are also actively engaged in

writing reviews themselves. Upon return from a trip people tend to recommend their

accommodation to friends and family directly (58%), while 41% do so online. Over half (51%)

have written online reviews about the accommodation they stayed at and a third (34%) have

written a review for a website. Around a fifth (17%), have written about their travel

experience in a blog or forum.

THE TRAVEL EXPERIENCE AND BOOKING PROCESS GO SOCIAL AND MOBILEWhile on a trip, people are still engaged digitally and connecting to their friends and family

back home. They connect to the Internet through their mobile (51%), upload photos to their

social network (39%) and update their social network status (34%) to keep their friends and

family up-to-date. Consumers also use their mobile to make their trip easier by usingmobile apps to find attractions or activities nearby (33%) and downloading mobile apps

specific to the destination (26%). Upon returning home, half (50%) of consumers upload

photos to their social network, and nearly four out of ten (37%) have written comments

about their trip on social networks.

A quarter (24%) used social media when planning and booking their last trip, and of these

three quarters (76%) utilized Facebook when planning and booking their last trip. Facebook

was also perceived as the most useful (54%) and trusted (48%) social media platform for

researching and planning travel.

Mobile is an important go-to travel resource. People think it is beneficial that properties

allow them to book accommodation via a mobile device (72%) and they expect properties to

engage with them via mobile devices (54%).

WHAT TOURISTS WANT FROM ACCOMMODATION PROVIDERSPerhaps not surprisingly, consumers love a freebie and would be swayed to book one

property over another when they are offered room discounts (75%) and a free nights stay

(49%).

Free breakfast (84%), free in-room Wi-Fi (80%), free lobby Wi-Fi (66%) and free parking (66%)

are the most important accommodation amenities and services in the eyes of guests, and

not having these would have a large impact on peoples final decision on whether or not to

book a certain property. Nearly two thirds (65%) indicated that the absence of free lobby Wi-

Fi would impact their accommodation decision-making.

In order to satisfy the demands of the increasingly discerning tourist market, it also pays to

go green and to be seen as an environmentally sustainable business. Nearly 8 out of 10

consumers (79%) place importance on properties implementing eco-friendly practices.


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2. THE BUSINESS PERSPECTIVEBUSINESS MOOD UPBEAT FOR 20132012 was a mixed year financially, with most businesses (53%) reporting that they were just

somewhat profitable. A minority of businesses (3%) claimed to have been extremely

profitable, while around a fifth (19%) were very profitable. On the other hand, 17% of

business reported to have been not very profitable and 5% were not profitable at all.

However, nearly seven out of ten (68%) are optimistic about their business profitability in

2013.

Businesses are planning to implement a range of initiatives to attract guests in 2013, with

90% planning to use deals or offers to attract guests. The most common strategies for

attracting guests are free Wi-Fi (59%), room discounts (47%) and special offers (41%).

ONLINE IS AN ESSENTIAL CHANNEL OF DISTRIBUTIONHaving a strong online presence is essential for businesses as they compete to attract

consumer spend. Two-thirds of businesses (65%) now allow guests to book with them

directly on their website, and over a third (35%) indicated that most reservations are

generated via this platform. The next most common booking channel is through online

travel agencies (18%) followed by direct telephone reservations (11%).

Three quarters of businesses (73%) are engaging with potential guests via social media

platforms, and this is now a marketing priority for nearly 4 out of 10 properties (38%). Not

surprisingly, properties want to know what people are saying about them on social media,

with the vast majority monitoring this (87%). In line with this, online travel reviews are ofupmost importance in generating bookings for nearly all businesses (96%), and more than

eight out of ten (84%) are concerned that negative online reviews will impact their business.

EMERGING ROLE OF MOBILE ENGAGEMENTThree quarters of businesses (74%) think it is important to allow guests to book their

property on a mobile device. Despite the perceived importance of mobile booking

capabilities and consumer demand for this, just a quarter of businesses (25%) currently

engage with guests via mobile devices, and mobile marketing is only a priority for around a

third of businesses (36%).

BUSINESSES OFFER GUESTS A RANGE OF PERKS AND ARE GOING GREENProperties offer guests a range of free amenities and services. In particular, the vast majority

are offering free lobby Wi-Fi (79%) and free in-room Wi-Fi (76%). Again, in line with

consumer sentiment, the vast majority of businesses (91%) agree that operating in an eco-

friendly manner is important, with the most common initiatives being energy-efficient light

bulbs (87%) and towel / linen reuse programs (82%).


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3. THE CONSUMER AND BUSINESS RELATIONSHIP IN SYNC ON MOSTAREAS BUT MOBILE IS AN AREA OF DISCONNECTOverall, consumer behavior is in line with business operations and perceptions of what

guests want. There are, however, a few areas of disconnect by addressing these,

businesses should be able to better target customers and cater to the needs of their guests,

leading to increased customer satisfaction.

Consumers show a strong appetite for accommodation providers having mobile booking

capabilities (72%) and for properties to engage with them via mobile devices (54%). However,

mobile marketing is currently only a priority for just over a third of businesses (36%).

Despite the fact that around three quarters of businesses agree it is important to offer a

program that allow guests to book their property on a mobile device (74%), currently only a

quarter (25%) offer any program to engage with current or potential guests using mobile

devices. Among businesses currently offering a program to engage with guests using

mobile devices, nearly two-thirds (64%) allow guests to book rooms via their website on a

mobile device and over half (52%) have a mobile-friendly website (e.g. easy to navigate

using mobile devices).

Businesses are aware of the importance of securing positive online guest reviews in order to

have a positive online reputation. This will become increasingly important as social media

and online reviews are key drivers in peoples travel decision-making process. Over four

fifths (84%) of businesses are concerned that negative online reviews will impact their

business, which is understandable as 93% of consumers indicated that other peoples

evaluations on travel review websites influenced their travel plans.

Looking at room rates and consumer travel budgets for 2013, it appears that while most

businesses have no plans to increase their room rates (52%), there is a good proportion ofconsumers who plan on increasing their travel budget this year (49%).


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1. DETAILED FINDINGSPART ONE: THE TOURIST PERSPECTIVE

1. THE TRAVEL EXPERIENCE AND PLANNING PROCESSi. Motivation and travel companions

Tourists are in search of sun, sea, surf and sand. Globally, the majority of tourists last trip

was for leisure purposes (68%) and the most popular type of holiday was to hit the beach

(20%). The next most popular tourist experiences were those for culture and city breaks.

Travelers from Africa, South America and North America are the most likely to prefer beach

holidays (30%, 25% and 24% respectively vs. 20% overall), while Asian travelers prefer the

excitement of a city break (16% vs. 13% overall).

Women are more likely than men to be beach bums (22% vs. 19% males preferring beach

holidays) and are also slightly more inclined to be culture vultures (18% vs. 13% males

preferring culture based trips).

Not surprisingly, people over 65 years are more likely to prefer cultural based trips (22% vs.

16% overall), while younger respondents are more likely to travel in search of adventure /

activities (20% vs. 13% overall).

PREFERRED TYPE OF TRIP

Travel allows for time spent with loved ones, with the vast majority of people travelling with

someone else (86%), especially close family members such as partners (58%) and children

(18%).

Middle Easterners are the most likely to travel with their extended family members (30% vs.

17% overall), while South Americans are the most likely to travel with their children (26% vs.

18% overall).

Men are more likely than women to travel on their own (16% vs.12%). Those aged over 65

are significantly more likely to travel with their spouse / partner (70% vs. 58% overall), while

those aged 18-24 are the most likely to escape the daily grind with their friends (30% vs.18% overall).


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TRAVEL COMPANIONS

ii. The planning processWhen it comes to planning for longer trips, people put a lot of time into the planning

process and book well in advance of departure. Seven out of ten (71%) start planning twomonths or more in advance of departure and six out of ten (61%) book their trip at least 2

months before their trip.

On average, women are more likely than men to start planning longer trips well in advance

(3 to 4 months on average compared to 2 to 3 months on average for men).

PLANNING AND BOOKING A LONG TRIP

Short breaks tend to be more spur of the moment getaways, with most people starting to

plan for the trip and actually booking everything relatively close to their departure date.

Nearly two thirds (63%) start planning less than a month beforehand, while around seven in

ten (69%) book within 4 weeks of departure.

Middle Easterners are the most likely to book short breaks with less than a week to go (58%

vs. 26% overall). Younger respondents (18-24) are also more likely to be last minute

bookers, finalizing their short break less than a week before they leave for their trip (32%

vs. 26% overall)


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PLANNING AND BOOKING FOR A SHORT TRIP

In terms of travel personalities, people tend to go with the flow when taking a domestic

trip in terms of planning and booking travel, but like to be more organised for longer trips.

For a domestic trip nearly half claim to stick to the basics; booking flights, arranging transit

and accommodation (49%), while a quarter (26%) just book flights and arrange everything

else at the destination. However, when taking a longer trip people do tend to engage in

more detailed planning, with half booking most of the trip components before departure.

BOOKING PERSONALITIES

Tourists from Australasia and Europe are the most likely to stick to the basics when

planning and booking international trips (46% and 45% respectively vs. 39% overall), while

South American, Middle Eastern and African tourists are the most likely to have everything

planned and booked (34%, 33% and 32% respectively vs. 25% overall).


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2. INFORMATION SOURCESi. Main sources of information

Online platforms are the main source of travel information, with 92% 3 of people referring to

online sources when planning and researching their last trip. Travel review websites are the

most popular information source (69%) followed by web based travel agencies (57%) and

travel operator websites (56%). Less than a fifth (18%) turned to an offline travel agency to

plan their last trip.

Europeans are most likely to have used travel review websites (76% vs. 69% overall), while

Australasians are the most likely to have used web based travel agencies when planning

their last trip (62% vs. 57% overall).

INFORMATION SOURCES

Online sources are not only the most utilized source of travel planning information; they are

also considered the most useful and trustworthy. In particular, travel review websites were

rated as the most useful (38%) and trustworthy (32%) information sources, followed by web

based travel agencies (19% most useful, 14% most trustworthy). Traditional offline travel

agencies fared less well, with just 4% rating them as most useful and 7% considering them

the most trustworthy.

North Americans and Europeans were the most likely to rate travel review websites as the

most trustworthy when researching and planning their last trip (36% and 34% respectively

vs. 32% overall)

3 Net score of travel review websites, social media, travel operator websites, web based travel agencies


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MOST USEFUL AND TRUSTED SOURCES OF INFORMATION

ii. Social media information4Among those who used social media to research and plan their last trip (e.g. Facebook,blogs, forums), Facebook was the most commonly used social media platform (76%),

followed by Google+ (40%) and Twitter (21%).

Middle Eastern tourists are the most likely to have used Facebook to research and plan their

last trip (98% vs. 76% overall). Younger tourists (18-24) are more likely than their older

counterparts to have used Facebook (90% vs. 49% 65+) and Twitter (29% vs. 12% 65+) to

research and plan their last trip. Men are more likely than women to have used Facebook

and Twitter (78% vs. 74% and 25% vs. 18%, respectively).

UTILIZATION OF SOCIAL MEDIA PLATFORMS

Facebook was also the most useful and trustworthy social media platform when people were

planning the last trip. Those from South America were the most likely to rate Facebook as

the most trustworthy (61% vs. 48% overall).

4 Social media refers to Facebook, blogs and forums not travel review websites such as TripAdvisor


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MOST USEFUL AND TRUSTWORTHY SOCIAL MEDIA PLATFORMS

3. THE ROLE OF SOCIAL MEDIA AND ONLINE REVIEWSi. Influence of social media on trip plans

Among those who used social media to plan their last trip, the views of others on this

channel were influential when making travel plans. Over eight out of ten (85%) said that

other peoples comments, videos and photographs on social media influenced their plans.

Middle Easterners, Asians and South Americans are the most likely to say that other peoples

comments on social media influenced their plans for their last trip (92%, 92% and 91%,

respectively, vs. 85% overall), while Europeans and Australasians were the least likely (77%

and 78%, respectively).

SOCIAL MEDIA INFLUENCE

ii. Importance and impact of travel review websites on trip plansWhen researching and planning their last trip, the majority who had used social media in

their information search, said that other peoples reviews and opinions in travel review

websites influenced their plans.


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TRAVEL REVIEW WEBSITE INFLUENCE

iii. Importance of other travelers reviews on accommodation bookingOther travelers reviews are a vital source of information for people looking to book their

accommodation. Nine out of ten (90%) said that other peoples reviews were important in

their decision to book their accommodation for their last trip, with this being very

important for four out of ten (40%).

South Americans are the most likely to say that other peoples reviews were important in

their decision to book their accommodation for their last trip (96% vs. 90% overall)

4. ACCOMMODATION MONITORi. Number of properties considered

People do not just chose the first property they come across, with people looking at seven

properties on average before making their final decision.

Europeans tend to look at the most hotels before making a decision, considering nine

properties on average before booking their accommodation. Middle Eastern travelers

consider the least (5 on average).

NUMBER OF PROPERTIES CONSIDERED


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ii. Decision-making factorsSeveral factors are taken into consideration before making a decision on accommodation. Of

these, price (76%) and location (68%) are the most important elements of the marketing mix

in driving bookings. Online reviews are the third most important factor (44%).

Africans and Asians are the most likely to consider price as the main decision-making factor

when booking accommodation (85% and 81% respectively). Europeans are the most likely to

say that online reviews had the biggest impact on their decision (51% vs. 44% overall).

ACCOMMODATION DECISION-MAKING FACTORS

iii. Booking channelsMost consumers booked the accommodation for their last trip online. The most common

way people booked accommodation was through a web based travel agency (27%), followedby the accommodations website (23%). Less than one out of ten (9%) booked via offline

travel agents.

Australasians were the most likely to book accommodation through properties websites

(35% vs. 23% overall), while Middle Easterners and Africans were the most likely to telephone

the property directly (36% and 38% respectively vs. 15% overall).

BOOKING CHANNELS


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iv. Importance of amenities and servicesAs travelers become more discerning they are demanding more amenities and services,

especially free add-ons. People are particularly motivated to book accommodation when

they are offered room discounts (75%) and a free nights stay (49%).

Free Wi-Fi would convince around four out of ten people (39%) to choose a particular

property. Asians are the most likely to book accommodation if they were offered special

offers (35% vs. 20% overall), while more Africans would do so if they were offered a free

night stay with advanced booking (68% vs. 49% overall).

APPEAL OF ACCOMMODATION PROMOTIONS

When booking accommodation, people want multiple amenities and services, especially

freebies. Free Wi-Fi (80% important), and Free Breakfast (84% important) are the two most

important hotel offerings. People are less concerned with health and well-being oriented

amenities such as a Gym (33% important) and Spa/Beauty treatments (32% important).

South Americans and North Americans are most likely to consider free in-room Wi-Fi

connection as important (89% vs. 86% respectively vs. 80% overall). Middle Eastern travelers

are most likely to consider a Gym (57% vs. 33% overall) and spa/beauty treatments (50% vs.

32% overall) as important.

IMPORTANCE OF ACCOMMODATION AMENITIES AND SERVICES


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A lack of free amenities has a considerable impact on peoples decision to book at a certain

property. In particular, the absence of free in-room Wi-Fi is likely to have a considerable

impact on peoples choice of accommodation with nearly half (46%) saying this would have a

large impact and a further third (35%) saying this would have a little impact. People also

seem to enjoy a free breakfast, with 84% admitting this would have an impact on their

accommodation decision.

South Americans are the most likely to say that not having free in-room Wi-Fi and free

lobby Wi-Fi would have a large impact on their decision to book their accommodation (62%

and 35% respectively).

LACK OF AMENITIES AND SERVICES IMPACT

v. Importance of environmentally sustainable practicesNearly 8 out of 10 consumers think it is important that properties implement eco-friendly

practices. South Americans place the most importance on properties having eco-friendly

practices in place (58% very important vs. 34% overall).

IMPORTANCE OF ECO-FRIENDLY PRACTICES


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vi. Average costAVERAGE COST PER NIGHT (USD)

vii. Writing reviews and recommendationsUpon returning home from travel, consumers are keen to spread the word about their

accommodation with others, with nearly six out ten people (58%) recommending the

accommodation they stayed at to friends and family. In addition, half (51%) have written a

review about the accommodation they stayed at and two-fifths (41%) have recommended

the accommodation to friends and family online.

Africans are the most likely to have recommended accommodation to friends and family

offline (80% vs. 58% overall) and online (66% vs. 41% overall), while Europeans are the most

likely to have written a review about the accommodation (61% vs. 51% overall).

ACCOMMODATION REVIEWS AND RECOMMENDATIONS

5. TRAVEL AND TECHNOLOGYi. Digital engagement before and after trip

While on a trip, many people are engaged digitally: they connect to the Internet through

their mobile (51%), upload photos to social networks (39%) and update their social network

status to keep their friends and family up to date (34%). They also use digital tools to make

their trip easier such as finding activities and attractions (33%) and download apps specific

to the destination (26%).

170

152 149142 139 135 134 133 129

120 117 117 115 114 112 10697 96 93 93 88 86


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USE OF TECHNOLOGY ON TRIP

Consumers want to share memories of their trip with others, with half (50%) having

uploaded pictures of a holiday to their social network. Nearly two-fifths (37%) have added

comments about their holiday to their social network and a third (34%) have written a reviewof their experience for a website.

Those from North America are the most likely to have written a review about their

experience for a website after a trip (39% vs. 34% overall).

USE OF TECHNOLOGY AFTER A TRIP

ii. Use of devices on trips and mobile bookingsConsumers want to stay connected while away, with travel parties taking an average of fourdevices with them on a trip. Mobile devices are a "Go To" travel resource and booking

mechanism. Consumers think it is beneficial that properties allow them to book

accommodation via a mobile device (72%) and they expect properties to engage with them

via mobile devices (54%).

Middle Eastern consumers are the most likely think it is beneficial for accommodation

providers to allow them to book their accommodation via mobile device (95% vs. 72%

overall).


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IMPORTANCE OF MOBILE BOOKINGS

6. 2013 PREDICTIONSi. Budget and barriers to travel

Consumers have the travel bug, with nearly half of consumers (49%) planning on increasing

their travel budget for 2013 compared to 2012.

African and Middle Eastern consumers are the most likely to say that their travel budget will

increase this year (76% and 75% respectively vs. 49% overall).

BUDGET FOR 2013


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PART TWO: THE OPERATOR PERSPECTIVE1. BUSINESS OUTLOOK

i. 2012 profitability2012 was a mixed year financially, with most businesses being just somewhat profitable.

European businesses are the most likely to report an unprofitable 2012 (29% vs. 22%

overall), while those from North America are the most likely to have had a profitable 2012

(29% vs. 22% overall).

Franchised businesses are most likely to say that their business was profitable in 2012 (32%

vs. 22% overall). Country house properties were the most likely to be unprofitable (32% vs.

22% overall).

BUSINESS PROFITABILITY IN 2012

ii. Business mood for 2013Overall, business mood is positive for a profitable 2013, with over two-thirds (68%) being

optimistic about their business profitability for the upcoming year. North American

businesses are the most optimistic regarding business profitability (82%), while European

and Middle Eastern businesses are the most pessimistic (both 15% vs. 10% overall).

BUSINESS MOOD FOR 2013


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In line with the generally positive economic outlook, a fifth of businesses (19%) are planning

to add new jobs and just four out of ten (39%) are planning to increase their room rates.

ADDING NEW JOBS

2013 ROOM RATES

Asian businesses are the most likely to add new jobs in the next six months (32% vs. 19%

overall). South American businesses are the most likely to be planning to increase their

room rates in the next six months (47% vs. 39% overall), while European businesses are the

least likely to be planning to do so (32%).

2. BOOKINGSi. Channels of distribution

Two thirds of businesses (65%) indicated their website offers a booking function which

allows people to book rooms online. Businesses own websites now generate the most

bookings (35%), followed by online travel agencies (18%). Only a small amount of bookings

are taken directly over the telephone (11%), email (10%) or via an offline travel agent (7%).

Businesses from Australasia and North America are the most likely to say that their website

generates the most bookings (48% and 45% respectively vs. 35% overall). Australasian

businesses are more likely to allow guests to book their accommodation online (79% vs. 65%

overall), while those from South America are the least likely (47%).

19%

68%

4%9%

I will add new jobs I do not plan to make any

substantial changes to my staff

I will downsize my staff Dont know

2%

38%

52%

4%0%

4%

Increase a lot Increase a little Remain the same Decrease a little Decrease a lot Dont know


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CHANNELS THAT GENERATE THE MOST BOOKINGS

ii. Booking timescaleMost businesses think that guests book with them relatively close to the time of the stay estimating that around six in ten bookings (59%) are made within four weeks of stay.

BOOKING TIMESCALE

iii. Guest decision-making factors

Location (66%) and price (61%) are perceived as the most important factors driving

accommodation bookings. Online reviews are also perceived as important with over half

(54%) of businesses thinking these have an impact on tourists choice of accommodation.

Asian businesses are more likely than their international peers to say that online reviews

have the biggest impact on travelers decision to book their accommodation (59% vs. 54%

overall), while those from South America say that friends and family have the biggest

impact (56% vs. 45% overall). More Australasian businesses think that attractions or activities

nearby have an impact on travelers decision (40% vs. 30% overall).


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DECISION-MAKING FACTORS

3. GUEST REVIEWSi. Reviews and bookings

Online travel reviews are important to generating bookings for nearly all businesses

surveyed (96%) - 75% said these were very importantand 21% said these were somewhat

important.

South American businesses are the most likely to think that traveler reviews are very

important for generating bookings (85% vs. 75% overall). Australians (64%) and Europeans

(65%) are the least likely to think traveler reviews are very important.

IMPORTANCE OF ONLINE REVIEWS

Given the importance of online reviews, businesses are understandably concerned that

negative online reviews may impact their business (84%), rising to 94% in businesses from

the Middle East. European and Australasian businesses are the least concerned about the

impact of negative reviews on their business (both 79% vs. 84% overall).

Franchised properties are the most likely to be concerned about negative traveler reviews

(93% vs. 84% overall). Independently owned properties are the least concerned (82%).


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CONCERNS ABOUT NEGATIVE ONLINE REVIEWS

ii. Monitoring reviewsGiven the importance of securing good online reviews, the majority of properties monitor

guest mentions and reviews on social media (87%). Over three-quarters of businesses (76%)

monitor these mentions themselves, 15% have their staff do it and 5% outsource this to a

third party or agency.

Middle Eastern businesses are the most likely to monitor guest mentions / reviews of their

property on social media (95% vs. 87% overall), while Australasian and African properties are

the least likely to do so (82% and 83% respectively).

MONITORING GUEST MENTIONS/ REVIEWS

iii. Encouraging guest reviewsBusinesses want to hear about their guests stay at the property, with 81% inviting their

guests to share feedback about their experiences.


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Businesses from the Middle East, North America and Australasia are more likely to invite

their guests to share their feedback (89%, 87% and 85%, respectively, vs. 81% overall), while

European businesses are the least likely (77%).

Franchised properties are the most likely to invite their guests to share their feedback (89%

vs. 81% overall). Single properties are less likely than multiple properties to invite theirguests to share feedback (80% vs. 85%).

INVITING GUESTS TO SHARE FEEDBACK

When it comes to different ways of encouraging guests to share their feedback about their

experiences, email stands out as the number one means of collection (51%), followed by

links on the company site (39%) and guest books (37%).

COLLECTING / ENCOURAGING REVIEWS


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iv. Positive and negative reviewsThe majority of businesses receive traveler reviews online, on both their company website

(63%) and on external websites (91%). Encouragingly, the majority of businesses have

received positive online reviews (93%), while just over half indicated they have received

negative online reviews (51%).

Asian and North American businesses are more likely to say that their property has received

a negative online review on their website and/or external website (both 56% vs. 51% overall),

while Australasian businesses are the most likely to have received a positive online review

(95% vs. 93% overall).

Franchised properties are the most likely to have received a negative online review (81% vs.

51% overall).

REVIEWS

v. Actions taken after receiving reviewsAs a result of having received a positive review, over two-thirds of businesses (67%) have

responded to the positive review, either online or in private, and over half have

congratulated or rewarded the staff (55%).

When it comes to negative online reviews, businesses are also proactive in response. Nearly

8 out of 10 (78%) have responded to the negative online review 65% have done so online

and 43% have done so in private. Over 6 out of 10 (62%) have addressed the contents of the

negative review with the staff. A further 45% have invested in staff training as a result of

receiving a negative online review and 41% have reviewed/changed operations.

Middle Eastern businesses are more likely to have responded to negative and positivereviews (95% and 81% respectively) whilst European businesses are the less likely to have

done so (70% and 59% respectively).


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ACTIONS TAKEN AFTER RECEIVING NEGATIVE/POSITIVE REVIEW

4. AMENITIES AND SERVICESi. Current amenities and services

In order to meet guest expectations, businesses offer a wide range of both free and paid for

amenities and services. The vast majority offer tourist information brochures or deals (91%)

and parking (90%). Wi-Fi is among the top service provided, with 85% of businesses offering

Lobby Wi-Fi and 84% offering in-room Wi-Fi.

South American, North American and European businesses are the most likely to offer free

in-room Wi-Fi connection (84%, 83% and 81% vs. 76% overall). South American businesses

are the most likely to offer free lobby Wi-Fi (90% vs. 79% overall) whilst Australasian

businesses are the least likely to offer this type of Wi-Fi for free (47%).

AMENITIES OR SERVICES OFFERED


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ii. Plans for amenities and servicesNine out of ten businesses are planning to use deals or offers in 2013 to attract guests to

their property. Free Wi-Fi connection and discounts on room are set to be the main draw

cards for 2013, with 59% and 47% of businesses respectively planning to attract guests in

these ways.

Businesses in the Middle East and North America are more likely to use special amenities

(38% and 34% respectively vs. 25% overall) and reward points (22% and 21% respectively

vs.12% overall) to attract guests. Australasian businesses are the most likely to use free

parking deals to attract guests (47% vs. 39% overall).

DEALS FOR 2013

iii. Environmentally sustainable practicesIn line with consumer sentiment, the majority of businesses agree that operating in an eco-

friendly manner is important (91%). North American and South American businesses are the

most likely to think that its important to have eco-friendly practices in place (both 93%).

IMPORTANCE OF ECO-FRIENDLY PRACTICES


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Over three-quarters of businesses (77%) currently have practices in place to reduce the

impact their business has on the environment.

Australasian and North American businesses are the most likely to have eco-friendly

practices in place (both 84% vs. 77% overall), which falls to 73% among European properties.

PROPORTION OF BUSINESSES THAT HAVE ECO-FRIENDLY PRACTICES IN PLACE

Businesses are doing their bit for the planet by implementing a wide range of eco-friendly

practices. The most common initiatives are more small scale initiatives such as energy-

efficient light bulbs (87%) and towel / linen reuse programs (82%). However, only a minority

of properties have a green certification (14%) and just a quarter of properties (25%) have

been built using energy friendly materials.

ECO-FRIENDLY PRACTICES


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5. SOCIAL MEDIA AND MOBILEi. Prioritization of social media within the marketing plan

Nearly 4 out of 10 (38%) indicated that social media is a priority for them within the overall

marketing plan.

Middle Eastern and Asian businesses are more likely to be prioritizing social media within

their marketing plans (56% and 50% respectively vs. 38% overall), whilst Australasian

businesses are the least likely to do so, with only 20% considering social media as a priority.

PRIORITIZATION OF SOCIAL MEDIA WITH THE MARKETING PLANS

ii. Importance of mobile bookingsProperties are aware of the importance of booking on the go with nearly three-quarters of

businesses(74%)thinking it is importantto offera program that allows guests to book theiraccommodation via a mobile device.

Asian businesses are the most likely to think that it is important to offer a program that

allows guests to book their accommodation through mobile device (79%).

IMPORTANCE OF OFFERING A PROGRAM TO BOOK ACCOMMODATION VIA MOBILE DEVICE


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iii. Mobile engagementDespite the perceived importance of mobile booking capabilities and consumer demand for

this, just a quarter (25%) currently offer programs to engage with current and/or potential

guests through mobile devices.

South American and African businesses are the least likely to offer programs to engage with

current or potential guests through mobile devices (17% and 19% respectively vs. 25%

overall).

Franchised businesses are the most likely to offer programs to engage with customers using

mobile devices (46% vs. 25% overall), while independently owned properties are the least

likely (22%).

BUSINESSES OFFERING A PROGRAM TO ENGAGE THROUGH MOBILE DEVICES

Among businesses currently offering a program to engage with guests using mobile devices,

nearly two-thirds (64%) allow guests to book rooms via their website on a mobile device and

over half (52%) have a mobile-friendly website (e.g. easy to navigate using mobile devices).

The minority (22%) use special offers for mobile device users.

Again, franchises are the most likely to allow guests to book rooms via their website on a

mobile device (73% vs. 64% overall), while resorts are the least likely (62%).


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HOW BUSINESSES ENGAGE WITH CONSUMERS THROUGH MOBILE DEVICES

Despite many consumers highlighting the importance of booking accommodation via amobile device and expecting properties to engage with them via mobile devices, mobile

marketing is a priority for just over a third of businesses (36%).

African and Australasian businesses are the least likely to priorities mobile marketing (31%

and 32% respectively, vs. 36% overall).

PRIORITIZATION OF MOBILE MARKETING WITH THE MARKETING PLANS


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APPENDIX:METHODOLOGY

The research was conducted online from 7th December 2012 to 7th January 2013. The total

sample for the consumer sample is 15,595 and the total business sample is 19,447.

The sample breakdown is as follows:

CONSUMER SAMPLE:TripAdvisor Pop-up survey. A total of 7226 completes were obtained from the TripAdvisor

panel

Online Panel Survey. A total of 8369 completes were obtained from an external sample of

adults who plan and book travel online.

BUSINESS SAMPLEA total of 19,447 businesses on the TripAdvisor for Business panel responded to the survey.

The table below outlines the sample structure.


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Table 1: Sample Profile

In terms of the consumer sample, please note that as a proportion of the sample was

obtained directly from the TripAdvisor panel, the influence of online travel review websites

may be higher than for the general population. In particular, the following questions show

the stronger prevalence of online travel review websites among the TripAdvisor sample

compared to the external sample.


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Q11 Which of the following sources of information did you use when researching and

planning your last trip?

- Travel review websites external sample 48%, TripAdvisor sample 85%Q12 Which source of information was the most useful/trustworthy when researching and

planning your last trip?

- Travel review websites Most useful - 18% external sample and 54%TripAdvisor sample

- Travel review websites Most trustworthy - 15% external sample and 45%TripAdvisor sample

Q17 Thinking about your last trip, which three of the following had the biggest impact on

your final decision to book your accommodation?

- Online reviews - 26% external vs. 58% TA sample

WEIGHTINGThe consumer data has been weighted to be reflective of the online population in each

country. The business data has been weighted to ensure each participating country has

equal representation within the global figures.

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