The Traveler's Journey: Key digital opportunities

The Traveler’s Journey: Key digital opportunities

@pauljohnpena

pauljohnpena.com

Paul John Peña

September 2, 2015

Manila, Philippines

Source: https://marketoonist.com/cartoons

MICECON 2015 The Traveler’s Journey: Key digital opportunities @pauljohnpena

A thirty-minute journey

o Quick digital landscape

o The Consumer Journey and the role of digital marketing

o Reflections on the consumer journey


Market Background

YoY GLOBAL INTERNET USERS

0

500

1000

1500

2000

2500

3000

3500

4000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Millio

n U

sers

Source: International Telecommunication Union, Internet World Stats 2014 Q4-end

0 200 400 600 800 1000 1200 1400 1600

Asia

Europe

Latin America and Carribean

North America

Africa

Middle East

Oceania / Australia

Growth of the internet is steady, usership largely driven by Asia-Pacific

INTERNET USERS BY REGION


Market Background

GLOBAL BROADBAND BY TYPE

Source: International Telecommunication Union, Morgan Stanley Research as analysed by KPCB (Internet Trends 2015)

Smartphone users and mobile phone users represent unique individuals owning mobile devices

Exponential growth of mobile broadband coupled with mass adoption of

smartphones predicted to continue

MOBILE PHONE USERS

0

500

1000

1500

2000

2500

2007 2008 2009 2010 2011 2012 2013

Millio

n S

ub

scri

pti

on

s

Mobile Broadband

Fixed Broadband

Smartphones

Feature phones


Market Background

TOP GLOBAL SOCIAL MEDIA

Source: We Are Social, IAB Singapore, Global Digital Statshot August 2015

Facebook unsurpassed in terms of

users, content sharing now equalled by

instant messengers with evolving

functionalities beyond messaging

0 200 400 600 800 1,000 1,200 1,400 1,600

Facebook

QQ

WhatsApp

Facebook Messenger

QZone

WeChat

Twitter

Skype

Google+

Instagram

Baidu Tieba

Viber

Tumblr

LINE

Snapchat

Sina Weibo

VKontakte

LinkedIn*

Million users


Market Background

GLOBAL FINANCIAL CARDS

Source: Euromonitor International estimates include debit, credit, charge, prepaid and store cards

Payment convenience through financial cards globally strong with Asia Pacific

expected to post highest growth in a 5 year period

FINANCIAL CARDS BY REGION

-

5,000

10,000

15,000

20,000

25,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Millio

n c

ard

s

- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Asia Pacific

North America

Latin America

Western Europe

Middle East and Africa

Eastern Europe

Australasia

Million cards


Market Background

INTERNET PENETRATION

Source: International Telecommunication Union, average internet speed based on Akamai State of Internet Q2 2014

Continued growth in internet penetration and mobile phone usage expected to

close gap on digital divide despite pressure to improve internet speed and QoS

MOBILE PHONE USERS

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

% P

en

etr

ati

on

-

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Mo

bile

Su

bsc

rip

tio

ns

(mill

ion

s)

2.5Mbits/s


Market Background

SHARE OF SCREEN TIME VS AGE

Source: ComScore Digital Future In Focus, 2013; Nielsen, Southeast Asia Digital Consumer 2012

Use of social media highest amongst the upscale and below 30; opportunity to

target highly engaged millennials with growing disposable incomes

FREQUENCY OF USE

34%

45%

Daily

Several per week

1x per week

1-2x per month

Less often

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

42% 17% 15% 1% 1%

Social Networks Services Entertainment News/Info E-commerce

55+

45-54

35-44

25-34

15-24


TOP ECOMMERCE CATEGORIES

Market Background

CREDIT CARD PENETRATION

Source: Digital Filipino; ADMA Digital Marketing Yearbook, Global Index Wave 6 2012; Philippines Startup Report 2013; Channel News Asia quoting IDC Apr 2015

Financial cards still a challenge in activating e-commerce whilst PH m-commerce

booming in Asia as smartphone penetration increases

SMARTPHONE PENETRATION

0% 5% 10% 15% 20% 25%

eBooks

Desktop

Wine

Movies

Accessories

Music

Books

Shows

Gadgets

Clothes

Travel

Credit Card

Debit Card*

No card

will own a smartphone

by Q4’15

*Outside Visa/MasterCard network

Statistics are no substitute for judgment.~Henry Clay


Key Take-Aways

o Internet penetration and usage continues to grow globally with Asia Pacific leading the charge

o Social media is here to stay and has fundamentally changed the way we connect and influence

o Digital experiences evolving as the internet goes mobile with opportunity to engage the young and upscale segments

o E-commerce promising in the Philippines as mobile grows despite limited growth of conventional financial cards

Key trends in inspiring the traveller’s journey o Human,

universal

o Inspired by trends

o Digitally-enabled


The Consumer JourneyS

TA

GE

RO

LE

JO

UR

NE

YB

EH

AV

IOU

RK

EY

PT

S

TRAVEL

IDEASPLAN BOOK

PLAN

MORETRAVEL EXPLORE TRAVEL SHARE

Discovery, spark interest,

consideration, conversion, easeConvenience, support, up- and x-sell, engagement, advocacy

Inspire /

HappyInform / Sad

What-If Dreams

Possibility

Reality CheckLogistics Logistics

LogisticsLogistics

Dream Becomes

More Real

Anticipation

Excitement

Real-Time

Wonder

#BESTTRIPEVER

Other people’s

travels

Search &

Tracking

Random ideas

Direct

Online

Enquiries

References

Reviews

Direct

Online

References

Search

Book activities

Email

Itinerary

Local information

Navigation

Experience then share

Own bite sized reviews (+/-)

Highly mobile

Social content

Reviews

Recommendation

User-generated

content sparks

travel ideas on

the go

Multiscreen

consumer:

sequential

usage seen

Deal-seekers:

Tracking down

to a science

Reputation cap

Mobile: key for

post-purchase

Buy activities on

the web, more

SoLoMo in a sweep

Rising demand for real time services

Personalisation stimuli for sharing

Reputation cap

Traveler reviews,

recommendations could start a

new journey

Logistics

“At the end of the day, if we haven’t inspired people to

travel, then I guess maybe we’ve failed.”~Hugh Jones

ST

AG

ER

OLE

TRAVEL

IDEASPLAN BOOK

Discovery, spark interest, consideration, conversion,

ease

JO

UR

NE

Y

Inspire / Happy

Inform / Sad

What-If Dreams

Possibility

Reality Check

Logistics

BE

HA

VIO

U

R

KE

Y

PT

S

Other people’s

travels

Search & Tracking

Random ideas

Direct

Online Enquiries

References

Reviews

Direct

Online

User-generated content

sparks travel ideas on

the go

Multiscreen consumer:

sequential usage seen

Deal-seekers: Tracking

down to a science

Reputation cap


TRAVEL CONTENT ON INSTAGRAM

Inspiration Everywhere

#travel, 55%

#traveling, 9%

#travelgram, 8%

#travelling, 7%

travel

traveling

travelgram

travelling

travelingram

traveler

travelphotography

traveller

travels

traveltheworld

travelblog

travelbug

travelblogger

travelingindonesia

traveldiaries

N=104 million Instagram posts with #travel-related hashtags

Source: Iconosquare Aug 31, 2015; Forrester Consumer Technographics® Behavioral Study, Q3 2014 (US); Perfect Digital Storm, March 2014; Milward Brown AdReaction 2014

FRAGMENTED INSPIRATION CHANNELS

64%

2.9 hours

58%

16.4 hours

17% ???%

1.7 hours*

*TV hours in the Philippines; 52% shift, 48% stack and mesh

TRAVEL

IDEASPLAN BOOK


Multiscreen Inspirations

DEVICE USED FOR RESEARCH AND PURCHASE ONLINE BUYING AND REVIEWING IN APAC

Desktop remains key driver in purchase decision given greater functionality, but

mobile provides cost and convenience motivations end-to-end

Source: Forrester’s Consumer Technographics® Behavioral Study, Q3 2014; Forrester’s ConsumerVoices Market Research Online Community Q4 2014; Global WebIndex Q1 2015 APAC

95% Desktop/laptop 1% Tablet3% Smartphone

Greater functionality Cost-savings and Convenience

TRAVEL

IDEASPLAN BOOK

0%

10%

20%

30%

40%

50%

60%

70%

TabletMobilePC/laptopAll devicescombined

Purchased a product online Reviewed a product online


Inspiration Engine TRAVEL

IDEASPLAN BOOK

2013, Mendoza, Argentina

2014, Amanpulo, Philippines

WHAT IF I COULD GO THERE?

SOMEDAY.



IDEASPLAN BOOK

Mendoza, Argentina

Amanpulo, Philippines

WHAT IF I COULD GO THERE?

SOMEDAY.



IDEASPLAN BOOK

o Inspiration comes

from all directions

o Vicarious

experiences lead to

new ideas

o What could spark

the next trip?


Branded Inspiration TRAVEL

IDEASPLAN BOOK


Traveler Reviews

INFLUENCE OF TRAVEL REVIEWS ON

PURCHASESSOURCES USED TO CHOOSE DESTINATION

Reviews – both verified and unverified – influence purchase behaviour especially

in actualising a travel idea and could swing the choice of destination or service

18%

18%

31%

82%

78%

67%

4%

2%

55+

35-54

21-34

Have much influence

Have some influence

Have little or no influence

Source: Travel Weekly, Consumer Trends 2012; Text100, Digital Index: Travel & Tourism Study, Redshift Research 2012; PhoCusWright, Consumer Travel Report 5th Ed 2013

21%

22%

24%

26%

27%

37%

41%

44%

46%

49%

55%

Twitter

Pinterest

Youtube/Vimeo

Deal sites

Facebook

Online travel forums

Tourist board websites

Internet reviews

Online travel sites

Individual provider websites

Internet search

TRAVEL

IDEASPLAN BOOK


Traveler Reviews

PURCHASES INFLUENCED BY TRAVEL REVIEWS BRAND SITES NEW FEATURES OF LUXURY

HOTELS

Integrating reviews and ratings in marketing strategy adds value to the customer

experience and drives sales

Source: Travel Weekly, Consumer Trends 2012; L2 Think Tank and SapientNitro, Digital IQ Index: Hotels, 2013

8%

13%

14%

19%

19%

22%

37%

61%

65%

Other

Escorted tour

Rental car

Cruise

Packaged tour

Air

All-inclusive resort

Resort hotel

Nonresort hotel

16%

19%

23%

28%

Contact concierge

Callback

Live chat

Ratings and reviews

TRAVEL

IDEASPLAN BOOK


Millennial Travel Inspirations TRAVEL

IDEASPLAN BOOK

“When I find something

interesting, like a place or

destination to go to, I start to

think who I can tag along to

travel with me.”

-KE, female, 23 years old


Tracking and Updating TRAVEL

IDEASPLAN BOOK

TOP 10 ONLINE PURCHASE DRIVERS IN APAC

Customer reviews and feedback published on their

site

Financial rewards (i.e. coupons / discounts)

Free delivery

A retail store on their social network

Customer participation in the development / improvement

Loyalty points or other rewards

Being able to connect and chat with staff online

Customer service via their social network

Personalized purchase recommendations

Information on my friends’ purchases on social

networks

Source: Global WebIndex Q1 2015


Planning Together TRAVEL

IDEASPLAN BOOK

INSPIRATION AND PLANNING OPPORTUNITIES

Drive purchase motivation by integrating reviews in your strategy.

Leverage on tracking behaviour of travelers to drive mobile purchases

Consider aggregation and comparison

as utility to boost decision to buy now

Offer inspiration stimuli across all relevant channels. Inspire dreams.

Travel ideas spark search and review. Make sure you can be found.

Define roles of each device and build

an experience custom for each.

BOOKING OPPORTUNITIES

Inspire /

Happy

Inform /

Sad

#BESTTRIP

EVER

Logistics LogisticsLogistics

Logistics

Dream

Becomes

More Real

Anticipation

Excitement

Real-Time

Wonder

JO

UR

NE

Y

ST

AG

ER

OLE

PLAN

MORETRAVE

L

EXPLOR

ETRAVE

LSHARE

Convenience, support, up- and x-sell, engagement,

advocacy

BE

HA

VIO

UR

KE

Y P

TS

Refer’s

Search

Book

activities

Email

Itinerary

Local information

Navigation



Highly mobile

Social content

Reviews

Recommendation

Mobile: key

for post-

purchase

Buy

activities on

the web,

more

SoLoMo in a sweep



Reputation cap

Traveler reviews,

recommendations

could start a new

journey


Email: Not Dead

EMAIL AS TRAVEL REMINDER SHARE

86%

78%

91%

83%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

United States United Kingdom Australia Global

Share

of

respondents

Source: SDL The modern traveler: a look at customer engagement in the travel industry, September 2013

PLAN

MORE

TRAVE

LEXPLORE

TRAVE

LSHARE


Role of Mobile

MOBILE USAGE DRIVERS POST-PURCHASE

Desktop continues to drive key online purchases, but mobile takes centre stage

post-purchase allowing travelers to lessen logistics anxiety and to share instantly

Source: Forrester’s Consumer Technographics® Behavioral Study, Q3 2014; Forrester’s ConsumerVoices Market Research Online Community Q4 2014

Enhance experience and travel

inspirations whilst on the go,

deals

Unbranded and branded apps for

logistics

Sharing of real-time experiences

with network, reviews

PLAN

MORE

TRAVE

LEXPLORE

TRAVE

LSHARE


Top Travel AppsS

TA

GE

RO

LE

TRAVEL

IDEASPLAN BOOK

PLAN




Source: TimeOut The world’s 50 best travel apps of 2015, July 2015, http://www.timeout.com/city-guides/travel/50-best-travel-apps/


Much Room to Grow

Source: Forbes, Don’t travel anywhere without these 10 apps, July 2015, http://fortune.com/2015/07/22/best-worst-travel-apps/

Branded travel apps still have big

opportunity to innovate and

integrate relevant innovations in

their app experiences

PLAN

MORE

TRAVE

LEXPLORE

TRAVE

LSHARE


Offline-Online Utility

1 Starwood Point per USD spent on Uber

PLAN

MORE

TRAVE

LEXPLORE

TRAVE

LSHARE


Social Stay PLAN

MORE

TRAVE

LEXPLORE

TRAVE

LSHARE


Social by Design PLAN

MORE

TRAVE

LEXPLORE

TRAVE

LSHARE


Social x Advertising PLAN

MORE

TRAVE

LEXPLORE

TRAVE

LSHARE


Instagram Moments PLAN

MORE

TRAVE

LEXPLORE

TRAVE

LSHARE

Source: pauljohnpena.com, Our Amanpulo Experience , http://pauljohnpena.com/2014/03/09/our-amanpulo-experience-moities/


Reputation Capital PLAN

MORE

TRAVE

LEXPLORE

TRAVE

LSHARE


Post-Purchase Opportunities PLAN

MORE

TRAVE

LEXPLORE

TRAVE

LSHARE

ENHANCING TRAVEL EXPERIENCE

Build trust through a two-way conversation using feedback as tool

Integrate UGC at the heart of experience design and proposition

Consider social by design and turn

every moment share-worthy

Provide utility to help lessen post-purchase anxiety, ie. logistics

Develop a branded and unbranded mobile app ecosystem for E2E CXP

Enhance the role of mobile after

purchase to create value for customer

SHARING

OPPORTUNITIES


The Consumer JourneyS

TA

GE

RO

LE

JO

UR

NE

YB

EH

AV

IOU

RK

EY

PT

S

TRAVEL

IDEASPLAN BOOK

PLAN




Inspire /

HappyInform / Sad

What-If Dreams

Possibility

Reality CheckLogistics Logistics

LogisticsLogistics

Dream Becomes

More Real

Anticipation

Excitement

Real-Time

Wonder

#BESTTRIPEVER

Other people’s

travels

Search &

Tracking

Random ideas

Direct

Online

Enquiries

References

Reviews

Direct

Online

References

Search

Book activities

Email

Itinerary

Local information

Navigation



Highly mobile

Social content

Reviews

Recommendation

User-generated

content sparks

travel ideas on

the go

Multiscreen

consumer:

sequential

usage seen

Deal-seekers:

Tracking down

to a science

Reputation cap

Mobile: key for

post-purchase

Buy activities on

the web, more

SoLoMo in a sweep



Reputation cap

Traveler reviews,

recommendations could start a

new journey

Logistics


Parting Words

Discovery:

Make sure you can be found at any point in the journey

Mobile:

Opportunity is end-to-end and using mobile to drive shorter

times to think before a purchase

Social:

Most services and executions today should by social by design especially in targeting millennials

who seek instant sharing and new encounters

Email:

Not dead. Use email to guide travelers and make each next

step easier.

Multiscreen:

Each device serves a specific role that is related to each other. Take advantage of completing an

experience continuum through different devices in play

Offline-Online integration:

The brief should be – every moment must be share worthy.

Delight is the best feeling to capture at each point in the journey to stimulate instant

positive sharing


Thank you

Tourism Promotions Board

Department of Tourism

+ Extra-special thanks to Leo Burnett Manila and APAC for the additional research

Let’s connect!

@pauljohnpena on Twitter and Instagram

[email protected]

LinkedIn: http://linkd.in/PaoPena

All reference materials are for discussion purposes only meant for the audience at MICEON 2015. All trademarks and

intellectual properties used herein are owned by their respective entities or individuals as cited.

mailto:[email protected]

http://linkd.in/PaoPena

The Traveler's Journey: Key digital opportunities

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