Post on 22-Apr-2015
description
TRAVEL INDUSTRY PROFILE + LANDSCAPE
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WHY DO I CARE?
Glad you asked…
In this report you will find a high-level overview of the travel landscape. It is important that we keep a pulse on the industry and CONSUMER BEHAVIORS in order to identify OPPORTUNITIES that transform our businesses.
At Levelwing, we specialize in analyzing the paths that contribute to meaningful BUSINESS OUTCOMES. These paths are illuminated through the analysis of data collected via website analytics, customer relationship databases, consumer research, phone call logs and even recruitment application databases (yes, we actually enjoy working with the HR folks in addition to the marketing teams).
Our team of analysts, statisticians and strategists are obsessed with data and more importantly are experts at TRANSLATING THE DATA INTO A MEANINGFUL STORY that has real business applications and implications.
Please enjoy some of the insights contained within.
TRAVEL TRENDS CATEGORY OVERVIEW
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TRAVEL INDUSTRY TRENDS 4
Not only are travelers planning online and researching from their mobile devices, they are seeking luxury and upscale hotels at a value. Offering a special or discount on upscale amenities may entice these luxury-seeking, price-sensitive consumers to convert.
64% of travelers would like to
stay at an upscale or luxury hotel
if the price is right
“The 2012 Traveler”, Google, August 2012
56% of all U.S. corporate travel dollars will be spent online in 2013 “U.S. Corporate Travel Report: Market Sizing and
Technology Trends”, PhoCusWright, May 2012
83% of leisure travelers and 76% of business travelers
plan online “The 2012 Traveler”, Google, August 2012
Almost 1 in 4 hotel queries
come from a mobile device
“The 5 Stages of Travel”, Google, August 2012
ENROLLMENT IN LOYALTY PROGRAMS 5
Affluent Travelers are most likely to be enrolled in Air, Hotel, and Car loyalty programs, while Business Travelers are most likely to be enrolled in a loyalty program for online travel agencies. Leisure Travelers are least likely to be enrolled in a loyalty program for any aspect of travel. Knowing which traveler segment is most likely to enroll in a particular loyalty program can help fuel strategies and initiatives for reaching these traveler segments.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Air Hotel Car Online Travel Agency None
Leisure Travelers Business Travelers Affluent Travelers
Source: “The 2012 Traveler”, Google, August 2012
HIGHEST Q1 2012 AIRFARE – US AIRPORTS 6
AIRPORT AVERAGE DOMESTIC ITINERARY FARES
CINCINNATI, OH $526.25
MEMPHIS, TN $519.97
HOUSTON BUSH, TX $504.58
HUNTSVILLE, AL $502.80
WASHINGTON DULLES $485.35
As average airfare prices continue to increase so too do the search queries for cheap tickets and variations thereof. Geo-targeting metropolitan areas surrounding airports with paid search ads can provide an opportunity for travel industry sites to capture these price-conscious travelers. Source: Bureau of Transportation Statistics, Q1 2012
TOP DESTINATION 7
POLL: Which destination was the most popular among US-based Google searchers between September and December, 2011? a) New York b) Las Vegas c) Hawaii d) Mexico e) Oak Ridge, TN
“The 2012 Traveler”, Google, August 2012
Market level search insights can help fuel strategies in which there is high demand (and we want to leverage this) or where there is low demand (perhaps in a market we are trying to dominate).
TRAVEL INDUSTRY SEARCH DEMAND 8
KEYWORD US MONTHLY (APPROXIMATE) SEARCHES
VACATION SPOT 165,000
BOOK A FLIGHT 110,000
PLAN A TRIP 110,000
BOOK A HOTEL 90,500
Source: Google
Collectively, the travel industry has a substantial amount of monthly searches within the United States. Online searches are often indicative of offline demand. This emphasizes the need for visibility within search engines and search engine results pages in order to capture this traffic.
‘BOOK A FLIGHT’ SEARCH ENGINE RESULTS 9
Online booking sites represent a majority of search engine results page real estate for ‘book a flight’
Airlines appearing in PAID SEARCH PLACEMENTS for ‘book a flight’:
• American Airlines
• Delta
Airlines appearing on Page 1 in ORGANIC SEARCH RESULTS for ‘book a flight’:
• Delta
• American Airlines
• United Airlines
• Southwest
*paid placements are paid advertising available through search engines, organic search results are the listings that are free and do
not require a hard media investment
‘BOOK A HOTEL’ SEARCH ENGINE RESULTS 10
Similarly, online booking sites also represent a majority of search engine results page real estate for ‘book a hotel’
Hotels appearing in PAID SEARCH PLACEMENTS for ‘book a hotel’:
• Taj Hotels
• Marriott
Hotels appearing on Page 1 in ORGANIC SEARCH RESULTS for ‘book a hotel’:
• Radisson
*paid placements are paid advertising available through search engines, organic search results are the listings that are free and do
not require a hard media investment
TRAVELERS
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RESEARCH BEHAVIOR
ONLINE ACTIVITES 12
Top online activities for US travelers are researching upcoming trips, brainstorming trip ideas, and reading reviews by other travelers. These online search habits indicate the need for visibility within search engines and search engine results pages during this critical research period. Source: Mediabistro Data
43%
45%
62%
0% 10% 20% 30% 40% 50% 60% 70%
Commented on travel related blog
Commented on travel reviews
Uploaded video related to past travel
Posted travel reviews
Read travel related blog
Watched travel video
Read reviews from other travelers
Sourced initial trip idea
Researched an upcoming trip
VIDEO AS RESEARCH SOURCE 13
Travelers watch online videos throughout their entire travel planning process. Creating a YouTube channel or incorporating video on your website surrounding these consumer needs (amenity and attraction information) may help influence consumers to book with your site or plan a trip to your city. Source: “The 2012 Traveler”, Google, August 2012
When thinking about taking a
trip
66% When choosing a destination
64%
When looking for ideas of activities
to do at a destination
62%
When choosing destination
accommodations
57%
When deciding on which website
to book
34%
TYPES OF VIDEOS WATCHED 14
Travelers using video for research watch a mix of user-generated content and professionally-made videos. Including both internal marketing videos and customer-made videos on your websites will provide these travel researchers with the content they are looking for when they come to your site, preventing them from seeking this content elsewhere on the web.
62%
0% 10% 20% 30% 40% 50% 60% 70%
Videos made by people like me
Trip reviews from people like me
Videos from travel-related channels
Trip reviews from experts
Videos from hotels, airlines, cruises, tours, etc.
Source: “The 2012 Traveler”, Google, August 2012
SMARTPHONE USAGE 15
As smartphone ownership increases so does the necessity of having a mobile website for consumers using these devices for travel research and booking. Source: comScore, June 2012
110 MILLION Americans own a smartphone
More than
MOBILE RESEARCHING + BOOKING 16
U.S. smartphone travel researchers represent 30.4% of online travel researchers in 2012, while U.S. smartphone travel bookers only represent 16.1% of online travel bookers in 2012, suggesting most travelers still prefer making travel-related purchases through more traditional means such as a desktop or telephone.
Source: eMarketer Data, August 2012
36.4 MILLION
travel researchers
15.8 MILLION
travel bookers
MOBILE AS RESEARCH SOURCE FOR AIR 17
Most travelers using a mobile device for research want to check prices, find contact information, view flight schedules, and check the status of a flight. Ensuring these elements are prominent and easy to use on your mobile site will provide a good user experience for mobile website visitors. Source: comScore Data, April 2012
25%
25%
25%
26%
0% 5% 10% 15% 20% 25% 30%
Cancelled a flight
Tracked the status of a checked bag
Received SMS alerts for a flight status
Booked a flight
Received price alerts for flights
Checked in for a flight
Looked up airport information
Checked flight status
Looked at flight schedules
Looked up airline phone number
Checked airfare prices
MOBILE AS RESEARCH SOURCE FOR HOTEL 18
Most travelers using a mobile device for research are looking for the hotel address and directions to get there, followed by researching attractions and places to eat near their hotel. Including directions, nearby things to do, and favorite local dining spots on your mobile site will fulfill the needs of these travel researchers.
Source: comScore Data, April 2012
29%
0% 5% 10% 15% 20% 25% 30% 35%
Cancelled a hotel reservation
Looked up/ researched ground transportation at my destination/ near my hotel
Received price alerts for hotels
Booked a hotel room
Compared hotel prices + availability
Read a hotel review
Looked up/ researched places to eat at my destination/ near my hotel
Looked up/ researched attractions/ things to do at my destination/ near my hotel
Looked up hotel address/directions
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LIKE WHAT YOU SEE? WANT TO SEE MORE?
This is just the beginning of what we can tap into, imagine what we could do with the data you have internally…
At Levelwing, we specialize in interpreting your data and providing you with applications (and not just graphs) that can impact your MARKETING, MERCHANDISING, INVENTORY or even TALENT RECRUITMENT. We help companies utilize data to OPERATE WITH GREATER CLARITY + PROFITABILITY.
Bottom line, we move your business forward by helping you make sense of your data so that you can ACHIEVE WHAT COULD BE.
For additional information, please contact:
LUKE FROST Business Development Analyst lfrost@levelwing.com 1+843.647.7314
THANK YOU
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Want to learn more about Levelwing? Just keep reading.
WHO IS LEVELWING?
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The Right Data Changes Everything
Marketing Budgets Should Be Smaller, Not Larger
Accountability is Essential
Success Should Pay For Itself
Leverage Existing Demand First
OUR BELIEFS 22
We use data to illuminate all facets of your business. You’ll sell more and enjoy greater cost-efficiency.
More importantly, you’ll operate your business more PROFITABLY.
THE RIGHT DATA CHANGES EVERYTHING 23
Bigger is not necessarily better.
We believe by holding media and ideas accountable through advanced analytics, you can do MORE with LESS.
MARKETING BUDGETS SHOULD BE SMALLER, NOT LARGER
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We measure and create insights based on what’s important, not just metrics that are easy to calculate.
We create real ACCOUNTABILITY.
ACCOUNTABILITY IS ESSENTIAL 25
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An understanding of Return on Investment leads to marketing efforts that are more than just an expense line item.
We build SELF-FUNDING initiatives.
SUCCESS SHOULD PAY FOR ITSELF 26
A demand-driven strategy creates media efficiency and greater profitability by focusing on existing IN-MARKET PURCHASERS.
AWARENESS
INTEREST
CONSIDERATION
PURCHASE
LEVERAGE EXISTING DEMAND FIRST 27
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Our BUSINESS INTELLIGENCE SOLUTIONS help organizations understand consumer brand perception, gain competitive information and uncover real opportunities to improve organizational and operational efficiencies.
WE BELIEVE in informed, evidence-based decision-making, only made possible by complex and comprehensive data collection + analysis.
INTELLIGENCE IS AT OUR CORE
Competitive Insights | Data Enrichment | Operational Efficiency | Price Sensitivity
Analysis | ROI Analysis | Analytics Solutions | Data Knowledge Management
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GLOBAL REACH We currently serve clients throughout North America, Europe, China and Japan
UNIQUE APPROACH Levelwing is the leader in business intelligence and marketing solutions with data mining + analytics at the core
MEASURED SUCCESS Levelwing has experienced 10 consecutive years of growth with industry leading client satisfaction results
FULLY INTEGRATED We employ a matrix organization of marketers, analytics design experts, statisticians, researchers and creatives
WE ARE LEVELWING 29
“Some of the most innovative and strategic minds in the industry” - Novartis
“Some of the most sophisticated things I’ve seen being done with analytics and ROI measurement” - Adobe
SOME OF OUR PARTNERS 30