© 2010 Forrester Research, Inc. Reproduction Prohibited 1.

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

Engaging Travelers In “Not as Bad” Times

Diane Clarkson, Analyst

October 1, 2010


The things we fear most in organizations — fluctuations, disturbances, imbalances — are the primary sources of creativity.”

Margaret J. WheatleyPresident Emeritus of The Berkana Institute


Agenda

Update on the economy and travel industry

The role the Web and technology plays in travel planning

Five ways to ensure successful digital engagement


Update on the economy and the travel industry


Travelers remain financially cautious but there are hints of optimism


Compared to 2008, US online travelers are...

More likely to buy products only on sale

53% 45%

More likely to shop at discount stores

38%

Use credit/debit cards less to buy products

45%

Use coupons more now to buy products

Source: North American Technographics® Travel Online Survey, Q4 2009

Base: US online leisure travelers


Travelers remain steadfast in their budget-focused ways


Source: North American Technographics® Travel Online Survey, Q1 2008; North American Technographics® Travel Online Survey, Q1 2009; North American

Technographics® Travel Online Survey, Q1 2010

Percent who agree with the following statements (answer 4 or 5 on 5-point scale)


Leisure travelers say value, reliability, and experience are equally important to price

May 2010 “Why Travel eBusiness Misses The Mark By Only Emphasizing Price”


We’re starting to see signs of life from travelers focused on quality

0%5%

10%15%20%25%30%35%40%45%50%

2007 2008 2009 2010

I will pay above-average prices for travel products that save me time and hasslesI will pay above-average prices for a noticeably better quality travel product or serviceTravel is an area in which I indulge myself


Source: North American Technographics® Travel Online Survey, Q1 2010; North American Technographics® Travel Online Survey, Q1 2009, North American Technographics® Travel Online

Survey, Q1 2008; North American Technographics® Travel Online Survey, Q2 2007

Percent who agree with the following statements (answer 4 or 5 on 5-point scale)


Today's new frugality is evolving into neoFrugal Chic

Saving as a point of

pride

Every major purchase is

heavily researched and

considered

Travel as a reward, not

an entitlement

Source: Google Images


The role the Web and technology plays in travel planning


Extensive consumer online adoption makes digital strategy mandatory

Base: US households

Source: The State Of Consumers And Technology: Benchmark 2009, US


January 2010 “US Online Leisure Travel Forecast, 2009 To 2014: The Plateau Is In Sight”

3 out of 5 US online leisure travelers buy at least some travel online


Travelers rely most on broad-based information providers to plan their trips

(multiple responses accepted)Base: US online leisure travelers who research travel online

“Which type of Web site(s) did you use to research LEISURE/PERSONAL travel?”

1 in 5 use CVB sites

Source: North American Technographics® Travel & Automotive Online Survey, Q4 2009


To book, leisure travelers focus on OTA and brand Web sites

Base: US online leisure travel Bookers(multiple responses accepted)

“Which of the following have you used to actually book LEISURE/PERSONAL travel in the PAST 12 MONTHS?”

Source: North American Technographics® Travel & Automotive Online Study, Q4 2009

© 2010 Forrester Research, Inc. Reproduction Prohibited18Source: Forrester’s North American Technographics® Benchmark Survey, 2009

The way we consume media is changing

18-43 year olds spend more time online

than watching TV

Nearly half of Gen X and Gen Y were

watching TV and using a computer

Entertainment, research and purchase

can occur on many screens

Half of consumers trust ratings and

reviews as a source of information


2 billion

212 million

>30 million

400 million150 million

New “media” has mass appeal

Source: comScore, February 2010; YouTube ,5/5/2010; FacebookInside company blog ,2/1/2010; allfacebook.com


The social groundswell is growing

Source: January 15, 2010, “Introducing The New Social Technographics®” Forrester report

Creators - 13%Conversationalists - 33%

Critics - 19%

Collectors - 15%

Joiners - 19%

Spectators -33%

Inactives - 52%

Creators - 24%

Critics - 37%

Collectors - 20%

Joiners - 59%

Spectators -70%

Inactives -17%

83%

Social Technographics®


24% more US leisure travelers participate in social media in 2010 than 2008


Source: Forrester’s North American Technographics® Travel Online Studies, Q1 2010, Q1 2009, and Q1 2008


Data chart on how leisure travelers are using social media to research travel


Six in 10 leisure travelers are technology optimists


Source: North American Technographics® Travel & Automotive Online Survey, Q4 2009

Percent who agree with the following statements

“Technology is important to me” 41%

Six in 10 leisure travelers are technology optimists

“Technology is important to me” 41%

“I like technology” 48%


Travelers can experience destinations before they go – making sure they’re getting their money’s worth

Technology like Google’s Street View Trike revolutionizes travel planning:

– Parks & Trails

– Theme Parks & Zoos

– Landmarks


Source: North American Technographics® Travel, Q1 2009, Base: US online travelers

9% of US online leisure travelers have watched video content online specifically about travel


Devices are evolving – it’s time to rethink mobile


Substantial year-over-year increase in Smartphone ownership among US travelers

Percent of travelers who own a Smartphone

Base: US online business and leisure travelers

Source: Forrester’s North American Technographics® Travel Online Study, Q1 2010 and Q1 2009


There are over 9,300 travel iPhone apps

Source: Mobclix, Apple iTunes, Morgan Stanley Research, Data as of 4/2010


One in 10 leisure travelers have downloaded a travel-related mobile app in the past year

Weather apps: 59%

Nearby restaurants & movies apps: 39%

City guide apps: 18%

Hotel, flight, and travel deals apps:

18%

“Which of the following types of travel-related apps (free or paid) have you downloaded to your cell phone in the LAST 12 MONTHS?”

Source: Forrester’s North American Technographics® Travel Online Survey, Q1 2010

(multiple responses accepted)Base: US online leisure travelers who own a cell phone and have downloaded a travel app


Five ways to ensure successful digital engagement


5 ways to ensure successful digital engagement

1. Provide relevant online information

2. Leverage social media and sharing

3. Gain customer insight

4. Include mobile in your strategy

5. Meet your customers’ desires for customer service options







Make sure relevant content is easy to find

Percent who cite the following as having a positive impact when making leisure travel booking decisions


Source: Forrester’s North American Technographics® Travel And Automotive Online Survey, Q4 2009


Fix simple online content snafus

Base: US online leisure travelers who have experienced problems booking travel online, (multiple responses accepted)

“Which of the following problems have you experienced when booking LEISURE travel online in the PAST 12 MONTHS?”

Source: North American Technographics® Travel & Automotive Online Study, Q4 2009


Make sure your search ad/result takes users to the relevant page on your Web site


5 ways to ensure a successful digital strategy







Use the POST methodology to determine the right social media

POST

People Assess your customers’ social activities

Objectives Decide what you want to accomplish

Strategy Plan for how relationships with customers will change

Technology Decide which social technologies to use


Make it easy for people to share info about you with their friends


Cross promote your social efforts


Make it easy for people to follow deals and specials


Social media can help bring people to your site and extend your presence


Travelers are comfortable sharing basic information

"Please select the personal information from the list below that you would be willing to share with travel companies in order to receive promotions and offers

relevant to your travel preferences."

Source: Forrester’s North American Technographics® Travel & Automotive Online Survey, Q4 2009



Collect the information that makes most sense for your business


JetBlue loyalty members are asked travel behavioral and personal interest questions


Mobile content becomes increasingly important

Immediacy

– Phone number

– Address

– Directions

– Operating hours

Simplicity

Context


Which is rated best overall?

Which is rated bestby people in your network?

Which offers best-rated service?

Which is cleanest?

Consumers can connect almost anywhere at anytime


Small brands still need a mobile strategy


Text deals and information

“What time can we expect you?”

“We’re getting your room ready – is

there anything we can do to make

your stay more comfortable?”

“Want to get away this weekend?

$89 per night deals!”


Data chart re: customer service channels used and desired among travelers

© 2009 Forrester Research, Inc. Reproduction Prohibited

Thank you

Diane [email protected]

Twitter: http://twitter.com/diane_clarkson

Blog: http://blogs.forrester.com/ebusiness_strategy/diane_clarkson/index.html

www.forrester.com

© 2010 Forrester Research, Inc. Reproduction Prohibited 1.

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