SOCIAL TRAVEL & TECHNOLOGY2015 and Beyond

Opportunities for Australian Travel and Tourism

Topics for Discussion

1. Technology Megatrends2. Online Travel3. Google Travel Analysis4. Bing Travel Tasks5. Social Search & Travel6. Facebook Future7. Innovative Travel Startups8. Travel Scenario Studies9. 2015 scenario for inbound tourism

Technology Megatrends

1. Internet of Things2. Splinternet

Forrester - January 2010 “The Splinternet”

3. Immersive

The Layar Reality Browser shows what is around you by displaying real time digital information on top of the real world as seen through the camera of your mobile phone. This technology is called Augmented Reality. We augment the real world as seen through your mobile phone, based on your location.

4. A-Reality

5. 3D Cinema & TV 6. Apple iTravel

7. PTAs

8. Remote Robot -QB

9. Electronic Publishing

Online Travel Market

Source: PhoCusWright US Online Travel Overview, Nov 2009

Online travel market set to grow• Total US online travel market in 2010 will be ~$93B (offline + online = ~$236B) with expected growth through

2011 at 5-7%• While Asian markets offer solid growth projections, Europe provides better market sizes and online

penetration. (UK was $30B in 2009. Expected 2010 growth is 5%. UK online travel share is ~40%)• PhoCusWright predicts that travel metasearch’s share is poised to take off, rising from its current 28% to get

much closer to the OTA share of 71%• While flights will remain the largest transactional segment within online travel, hotels is expected to be the

one to gain share by 2011.

Search Travel Market

Sources: ComScore, US query share, Nov 2009Forrester Forecast of Travel Advertising, 2009

Travel is a top 5 commerce category•~14.3B queries in November

(U.S. ComScore data)•~8.4% of 2.5B monthly commerce

queries are travel-related

Travel is also a key category for revenueIn FY09, Travel was the #1 vertical in revenue for Microsoft Media Network and the #3 vertical in revenue for Search(~$68M in FY09 and trending to ~$74M in FY10)

Interactive Marketing Spending (in $M) 2008 2009 2010 2011 2012 2013 2014 ('09-'14)

Travel $1,890 $2,269 $2,615 $3,061 $3,587 $4,258 $5,028 17.2%

Research flights for an upcoming trip

Plan a road trip of over 150 miles

Get specific advice about a travel destination from people you know or other travelers

Research attractions (e.g. zoos, museums, etc.) at your destination

Explore options by type of destination (e.g. beach, cruise, etc.) or geographic area (Western US, Europe, etc.)

Get pictures or imagery of a vacation destination or a local area

Research and plan a trip in a foreign country

Organize and plan a last minute getaway

Share your itinerary with people you know when planning a trip, for coordinating plans and adding to calendars (mobile)

Find a condo or home to rent for a vacation

Get specific advice about a travel destination from people you know or other travelers

Research attractions (e.g. zoos, museums, etc.) at your destination

• Top 12 travel tasks out of top 200 overall tasks in order of overall task importance.

• Green shows top 5 tasks weighted on multiple factors (importance, frequency, etc.)

Top 12 Travel Tasks

Choose a vacation destination by looking at options meeting your criteria (e.g. type of trip, price, etc.)

Research hotels for an upcoming trip

•Controlling experience from multiple entry points (E.G. Android, Nexus One, Chrome) •Chrome’s market share has grown organically from 1.6% to 5.2% between 3/09-

12/09 (Launched Sep 08). Google’s search share on Chrome is 96%.•Surrounding consumers with online services from email to photo editing

•Fundamental improvements in 2009 to catalog size, browse experience, opinion ranks, left rail web filters (nearby now & more shopping results) •Recent differentiators involve integrated local, mobile and product scenarios,

such as near by now filter, Google shopper and Favorite Places Stickers(2), City Tours

•Google handles ~133M travel queries/mo or 55% share of all travel queries

Google Analysis

Bing Travel Top Tasks

Of the top 40 tasks on Bing, these are the 5 travel specific tasks:

1.Destinations by type (PC)2.Research hotels (PC)3.Share itineraries (mobile)4.Research flights (PC & mobile)5.Research attractions (PC & mobile)

Social Media Marketing is not Conventional Marketing

“a many-to-many mediated communications model in which

consumers can interact with the medium, firms can provide

content to the medium and, in the most radical departure from

traditional marketing environments, consumers can provide

commercially oriented content to the medium.”

Hoffman & Novak, 1997

1:1 Marketing

ShotgunMarketing

Segment Marketing

‘All Customers the same’

‘All Customers in a segment

the same’

‘All Customersin a network interrelated’

A New Way of Marketing ?

Social Network Marketing

‘All Customers are different’

suresh.sood@uts.edu.au

Geektoid Mangala

www.linkedin.com/in/sureshsood

twitter.com/soody

www.facebook.com/sureshsood

ssood

www.bravenewtalent.com/talent/suresh_sood

Hero5!

scuzzy55

soody

GreatMystery14

Share with friends.Boxee makes it easy for friends to share their favorite movies, TV Shows, and songs with each other, on Boxee or on social networks like Facebook and Twitter.

Livestation

All your channels in one placeSurf and email while you watchInstant, live chat with others watching LivestationDesktop alerts bring you breaking news and Livestation updates

TV 3.0

“United Breaks Guitars”

Collision of Marketing, Customer Service and PR

“They Shake me”

Social networking tools and platforms such as YouTube, Twitter, Facebook and Delicious will become the main way to create (or destroy) brand value.

Consumers will increasingly trust opinions and preferences of their social network instead of traditional advertising. And their consumption behavior will be guided by this influence.

Businesses will increasingly have less control over brand reputation through mainstream advertising and will have to rely upon customer satisfaction and value.

Brands will be built and destroyed by social networking and media

Facebook is My Newspaper(Susie Wilkening, http://reachadvisors.typepad.com/

OneRiot.com: Search the realtime web

16 million people in the UK accessed Internet via mobile phones in December 2009. Total of 6.7 billion pages and 4.8 billion minutes online during the month. Top 10 sites accounted for 70 per cent of both total pages viewed and total time spent online

Australia Leads Average Time Spent per Person on Social Media Sites in December 2009

Social Travel

General social networks and sites:Facebook (e.g. referrals to hotel web sites) Flickr (uploads from destination) Twitter (alerts on posted reviews, special offers e.g. Tornoto at 50% discount from Virgin America and geotagging use www.connectme360.com to check out ground content from destination tweets)LinkedInYouTube (video of destination experience)

Mobile social networks – foursquare and Gowalla

Travel Blogs – Travelpod and TravelBlog

Social Travel guides/networks – WAYN

Travel review sites – trip advisor and Travel Post

Online Travel Agencies (hotel reviews)

Zuckerberg: “We Are Building A Web Where The Default Is Social”

(3rd F8 developer conference, San Francisco)

• not only can you see the social connections between people, but you can also see and create the connections people have with their interests—things, places, brands, and other sites. Zuckerberg calls it the Open Graph (as opposed to the Social Graph). It is really an Interest Graph.

• Yelp might create one around restaurants, Pandora might create one around music. Add some “like” buttons and anytime someone likes a restaurant, song, or movie anywhere on the Web with a Facebook like button, that information will flow back into the Open Graph. So that Yelp will know what restaurants you and your friends have liked elsewhere and take that into consideration when giving you recommendations, or Pandora with music, and so on

• Facebook is taking some of the information that pops up in people’s realtime streams and baking it into the Web. “The stream is ephemeral,” says Zuckerberg. “It is there for a few hours and then it mostly floats away. Services don’t understand the semantic connections between you and that restaurant.” But now Facebook can. Instead of the Web being defined only by hyperlinks (to the benefit of search engines like Google), Facebook wants it to be defined by social connections, likes and dislikes, interests that are coded and machine-readable. “Our goal is to use the open graph so people can have instantly social experiences wherever they go,” he says.

• The Open Graph is hugely ambitious. Just wait until Facebook plugs in targeted advertising by: Location, Age, Sex, Keywords, Education, Workplace, Relationship Status, Relationship Interests & Languages.

• The Open Graph API will allow any page on the Web to have all the features of a Facebook Page. Once implemented, developers can include a number of Facebook Widgets, like the Fan Box, or leverage any API, which enable the transformation of any Web page so it functions similar to a Facebook Page.

Travel Scenarios

• FUTURE TRAVELLER TRIBES 2020 • FUTURE OF FREE TIME• TOWARDS 2015 SHAPING TOMORROW TOURISM• TOMORROWS TOURIST: SCENARIOS & TRENDS

Paradigm Shift

1.What today is impossible to do within the travel industry but if it could be done would fundamentally change our relationship with our customers/inbound international travellers no matter where they reside?

Technologies

2.What are the emerging technologies you feel will create significant opportunities for the travel industry associating with inbound travelers and therfore need to be considered specifically for further discussion?

2015 Inbound Scenario• Based on what you have discussed at this workshop with fellow

participants and a review of the highlights of futures studies e.g. Future Traveller Tribes from Henley Centre/Amadeus, tourism 2023, a Future of free time (lastminute.com) and Tomorrow’s Tourists (work of Dr. Ian Yeoman) think about a future scenario for inbound visitors in 2015. What are your key story elements for successful engagement with inbound international tourism in 2015 and afterwards as a travel industry participant?

– The 2015 ICC Cricket World Cup will have a positive impact and jointly hosted by Australia and New Zealand. The location of the final event is yet to be decided.

Issues

3. Issues to be overcome by 2015 to achieve your story:

1. 2. 3.