Who travels with you?- A segmentation analysis of today’s travellers

1. ExEcutivE Summary 42. introduction 6

3. mEthodology 84. cuStomEr SEgmEntS 10- digital nativES 12- young adultS 16

- Family travEllErS 20

- Empty nEStErS 24- goldEn oldiES 28

5. concluSionS 326. wEbSitE hintS 347. about amadEuS 36

Contents

Executive SummaryThe report is based on a segment analysis

of the results of a web-based survey.

This report by Amadeus aims to give Scandinavian travel agencies,

regardless of their channel, an increased understanding of

their customers’ needs, what inspires them, how they search

for travel related information and how they travel. Armed with

this knowledge, travel companies can adapt their services and

activities to attract new travellers while also strengthening

their relationships with existing customers.

The consumers have been divided into five different customer

segments, each with their own opportunities and challenges

for travel providers. The customer groups are Digital Natives,

Young Adults, Family Travellers, Empty Nesters

and Golden Oldies.

The five customer segments create different

conditions for travel providers, depending

on the travellers’ varying needs, knowledge and

habits. Although there are clear similarities

between the different segments, it is impossible

to generalise. However, some conclusions

can still be drawn, giving us an idea of how

people travel today and how developments

4

can create opportunities for all players in the travel

industry.

Family Travellers represent the largest customer group

based on volume, accounting for a third of all flight

bookings in Scandinavia. Golden Oldies are neverthe-

less the most frequent air travellers. Aside from Empty

Nesters, they also spend the most money on travel.

Together, these two segments account for more than

half of the total travel spend. Family Travellers thus

account for the largest number of flight bookings

while Golden Oldies and Empty Nesters generate the

most revenue.

Digital Natives is the group with the greatest overall

potential. Within this group, 65 percent of flight

bookings are made through channels other than

travel agencies and tour operators1. Instead, travellers

tend to book ‘flight only’. Young Adults represent the

group with the largest realistic potential for travel

agencies: A third of flight bookings in this customer

group not made through a travel agency or tour operator,

are bookings where travellers have purchased flights

and accommodation separately, and that could po-

tentially have been booked through a travel agency.

Although not the most profitable segments, Digital

Natives and Young Adults are important to the travel

industry as they represent future high consumption

travellers.

For travel providers, it is of key importance to offer

competitive prices in order to attract consumers.

However, to stay successful, Amadeus suggests that

travel providers should analyse their various customer

segments, adapt their offering to those with the

largest potential and offer the best user experience in

order to increase conversion and create loyalty – just like

all successful e-retailers.

5

“Armed with this knowledge, travel companiescan adapt their services and activities to

attract new travellers while also strengtheningtheir relationships with existing customers.”

1 By tour operators we mean vertically integrated travel providers or “charter operators”.

IntroductionConsumer confidence in online shopping

continues to grow.

Consumer confidence in online shopping continues to grow2.

This strong trend means that more and more companies are

adapting their activities to the Internet, for example banks,

shops and travel companies. Consumers are increasingly

getting used to handling their business online, regardless of

whether that means finding a restaurant, a new place to live,

health information or filing a tax return3.

The development of mobile technology plays

an important part in this transition. Mobile

devices such as smartphones and tablets

are increasingly popular and play a big role in

consumers’ day-to-day lives. This results in

expectations on information available around

the clock and consumption opportunities via

6 2 78 percent use the Internet to make purchases. Source: Findahl, Olle (2011). Svenskarna och Internet 2011. Stiftelsen för Internetinfrastruktur.

mobile devices. By looking at the development potential

of mobile devices and associated business opportunities,

it is possible to meet customer needs as they develop.

Social media are developing rapidly and more and more

people are using them4, meaning that they are becoming

a natural channel for interacting with customers. It also

means that anyone can have a say and share their

opinions, which can be both positive and negative.

Addressing opinions and statements can help build

trust, thus making it easier to reach new customers

and retain existing ones. At the same time, it becomes

harder for consumers to determine which players

they can trust. This has led to an increased use of so

called review sites, also within the travel industry.

In the travel industry, the aforementioned factors

have together resulted in the creation of the concept

‘empowered travellers’; well-informed travellers who

know what they want and have a true interest in

what they are looking for. These type of travellers use

various strategies to find the information they need

depending on what customer segment they fall into,

which is based on, for example, disposable income,

lifecycle, Internet maturity, travel companions and

type of travel.

For the travel industry, consumers’ increased use of

the Internet means that an increasing number of

trips are booked via channels other than physical

travel agencies. For many of these, the challenge lies

in recreating the physical meeting with the customer

in their online channel. Being able to offer customers

the right products calls for knowledge of customer

needs. However, all customers are not equally

profitable. Some customers are harder to convert

than others. The level of specialisation in the industry

has increased, meaning that more and more travel

agencies are choosing to specialise in one specific

type of travel. What needs do these travellers have?

How can we ensure their loyalty?

Since 2009, Amadeus Scandinavia has performed

two market surveys each year in order to gain an

understanding of how Scandinavian consumers

behave when searching for and booking trips. In

order to gain further insights into what motivates

travellers, Amadeus has performed a segmentation

analysis based on a web-based survey. The consumers

have been divided into five customer segments.

Digital Natives, Young Adults, Family Travellers, Empty

Nesters and Golden Oldies. These segments have

been chosen because trends show that they represent

important travellers today and will continue to do so

in the future, and also because they represent

different opportunities and challenges for travel

providers. The purpose of this report is to give travel

agencies, both traditional and online focused, better

knowledge of how to best approach these customer

segments.

7

Never Sometimes Every time

16%

44%

66%78%

89%71%

53%

31%19%

11%13% 3% 3% 3% 0%DIGITAlNATIvES

YOuNG ADulTS

EMpTY NESTErS

GOlDEN OlDIES

FAMIlY TrAvEllErS

How often is travel-related information

shared through social networks?

3 Danmarks Statistik (2011). Befolkningens brug av internet 2010. 4 Knut-Arne Futsæter, TNS Gallup (2012). Medie Trender 2011.

MethodologyThe survey was commissioned by Amadeus and conducted to highlight various consumer segments in the travel industry.

Increased understanding of the various customer segments gives

travel industry players a better understanding of their customers’

needs, what inspires them, how they search for travel products

and how they travel. With this knowledge, travel companies can

tailor their services and activities to attract new travellers while

at the same time strengthening relationships with existing

customers, with the purpose to generate higher revenues.

Segmentation modelSegmentation is about division. The market

is divided into different groups that share

mutual needs and can be expected to react

in the same way to different offers. This

division could be applied to customers,

products or markets. Segmentation makes

8

it easier to focus more specifically on the customer

groups of interest. Customers can be divided into

segments based on, for example, gender, age and

location. products can, for example, be segmented

into groups based on price and quality.

Different segmentation may be required depending

on whether one offers consumer goods, industrial

products or services. The key is to identify the

segmentation variables that best describe the

behaviours in the industry in question. These

variables may be of physical, psychological and/

or behavioral character.

physical criteria such as age, gender and family

situation have been the basis for defining the various

customer segments for this survey. The reason is that

age and consumer lifecycle affect how consumers

travel, search for and book trips. In addition, customer

segments based on demographic variables are easier

to identify.

telephone recruited panel. All respondents had

booked at least one over-night leisure travel by air or

train in the last 12 months. The sample represented

the whole of Scandinavia’s population according to

the criteria age, gender, family situation and country.

The respondents were divided into segments based

on a series of background questions. Subsequently,

the survey was conducted online during January and

February 2011 in each of the Nordic languages.

9

“Physical criteriasuch as age, genderand family situation

have been the basis for defining the various customer segments

for this survey.”

Survey methodThe survey was conducted in collaboration with

Norstat AB who selected 1,206 consumers from a

Complementaryin-depth interviewsIn order to better define and highlight needs and

values among travellers in the various customer

segments, in-depth interviews were conducted with

around 15 people who had all searched for or booked at

least one trip using the Internet in the past 12

months. The interview subjects sat at a computer to

demonstrate how they searched for and/or booked

their last two or three trips. The Internet session was

recorded for further analysis. This background constitutes

the recommendations relating to the website made at

the end of the report.

DIGITAl NATIvES11% YOu

NG

ADu

lTS

11%

GOlDEN

OlDIES

18%

EMpTY

NESTErS

25%

FAMIlY

TrAvEllErS

35%

Segments

Digital Natives

Family Travellers

Golden Oldies

Young Adults

Empty Nesters

Brief description

Young consumers aged 18 to 24 who have grown up in the digital age.

This customer group experiences a strong need to travel and discover the

world, and unlike previous generations, they are more able to do so thanks

to more affordable air travel options. The Internet represents the main

booking channel for this segment.

Travellers aged 18 to 64 with at least one child living at home. This group

has very specific requirements as to when and where to travel, which

governs their search for information and travel planning. Half of all trips

are to a destination within Europe and they often book through a tour

operator and/or travel brands that they are familiar with.

Pensioners who have time to travel and can be flexible on dates. They

are active and enjoy travels that focus on experiences, e.g. theme travels,

cruise or golf holidays. They usually travel to southern Europe, but more

adventurous destinations also appeal to them. There is some hesitation

when it comes to purchasing travel products online, but Golden Oldies are

happy to use the Internet for travel inspiration. They are happy to book via

travel agencies.

Travellers aged 25 to 44 without children. They have little free time, which

means that their travelling is limited to the holiday periods and public

holidays. Nevertheless, they can afford to take almost as many holidays as

younger travellers. This segment tends to book via airline websites or using

online travel agencies.

Travellers aged 45 to 64 without children or with children who have left

home. They have stable finances, new-found flexibility and are more active

than the younger generations. They also feel a strong need to travel. They

like to go on beach holidays and weekend breaks and book via an airline,

tour operator or traditional travel agency.

Customer segmentsThe five segments included in the survey are described below.

11

They use computers and the Internet

daily6 and the majority began using

mobile phones at an early age. Digital

Natives use technology such as social

media to interact with each other and

also spend a lot of time on enter-

tainment such as games, video and

music7. This means that they often

multitask. A full 60 percent tend to do

other things while using the Internet,

for example talk on the phone or

watch Tv8.

12 6 Findahl, Olle (2011). Svenskarna och Internet 2011. Stiftelsen för Internetinfrastruktur. 7 Amadeus (2010). Digital Natives and the future of travel, a study conducted by PeclercsParis. 8 Findahl, Olle (2010). Svenskarna och Internet 2010. Stiftelsen för Internetinfrastruktur.

Digital NativesThe customer group, also known as Generation Y or

Millennials, comprises young consumers (aged between 18 and 24) who have grown up in the digital age.

“This customer segment is highly

likely to starttheir search for

information using a search engine such as Google.”

Digital Natives prefer visual information

in photo, video or sound format over

text. When looking for information

they expect to find what they are

looking for immediately. At the same

13

time, this customer segment prefers random access

to information through integrated hyperlinks9. This

customer segment is well accustomed to online

shopping: 82 percent of Swedish consumers aged

between 16 and 24 shopped online in 2010 and only

a small number worry about payment card fraud.10

This customer group generally begins their working

lives later and leaves home at the age of 22 or later,

somewhat later than previous generations did11. At

the same time, they become independent more

quickly when it comes to social activities such as

leisure and travel and have a global view of the world.

TravelDigital Natives feel a strong urge to travel and

experience the world. Having grown up with low cost

airlines, they started travelling earlier than younger

generations before them. They often opt for popular

destinations and activities12. Amadeus’ survey shows

that despite spending less money on travel overall,

they travel more frequently by air and train than

other customer segments. However, Digital Natives

often travel locally and like to travel as cheaply as

possible. 40 percent of their flights or train journeys

are domestic; often to visit friends and family. One

third of their travels by air were booked ‘flight only’.

84 percent share travel related information or upload

holiday photos in social media ‘sometimes’ or ‘often’.

“84 percentshare travel related

information or upload holiday photos in social

media ‘sometimes’or ‘often’.”

“Their focus is onkeeping the price down,as this determines both

the choice of destination and the timing of the trip. Trips are therefore often booked far in advance or

last minute. “

Booking and inspirationThe Internet is the obvious choice for this group

when it comes to finding travel information and

booking. Family and friends influence the choice of

destination, but one third also visit tour operator

websites for inspiration for the trip that they intend

to take. Digital Natives also use meta search engines

to some extent when looking for trips. However,

knowledge of these is rather limited. This customer

segment is highly likely to start their search for

information using a search engine such as Google.

Their focus is on keeping the price down, as this

determines both the choice of destination and the

timing of the trip. Trips are therefore often booked far

in advance or last minute.

The majority of bookings are made directly with the

airlines, often in the low-fare segment but also via

tour operators if the trip is a beach holiday. When the

trip is not a traditional package holiday, Digital Natives

often book their accommodation at the destination

themselves using various hotel sites or try to organise

accommodation with friends and family.

9 Amadeus (2010). Digital Natives and the future of travel, a study conducted by PeclercsParis. 10 Findahl, Olle (2010). Svenskarna och Internet 2010. Stiftelsen för Internetinfrastruktur. 11 Ungdomsstyrelsen (2011). Fokus 11 – En analys av ungas bostadssituation. 12 PhoCusWright. Rheem, Carrol (2009). Top U.S. Consumer trends: travel behavior and beyond.

final year of school she travelled to Thailand to teach English to

Thai children as a volunteer. Most recently she travelled with her

best friend Isabelle to Central and latin America where they spent

two months backpacking. Ida blogged about her experiences on

these journeys and logged into Facebook as often as possible to

keep in touch with friends and family.

Travelling is important to Ida and if it was up to her and if her

finances allowed, she would choose exotic destinations. Her dream

is a trip to Antarctica! However, as she tends to travel with friends

she usually picks ‘safe bets’. She finds inspiration through

destination sites, but mainly through chats and blogs. reviews by

other travellers are good but feel less personal and relevant than

chats with a person who is of the same age and/or shares the same

interests.

Ida’s father has helped her book some trips although she has made

most of the bookings herself. She usually checks a number of airline

14

ProfileName: ida hansen

Age: 20 years

Nationality: norwegian

Occupation: Starting a degree in

political Science at uio (universitetet

i oslo) in the autumn.

Main reason for travelling: Explore

the world, see something new. Spend

quality time together with family

and friends.

Digital Natives

Ida has travelled with her family to

exotic destinations such as South

Africa and major cities such as Hong

Kong. The first time she travelled alone

was in her late teens when she went to

visit cousins in london. She loves

london and has been there several

times. She has also travelled to Berlin

with a friend for a music concert. In her

15

websites and online travel agencies to compare

prices by swapping between the different open tabs

(she can keep up to six tabs open at the same time).

ryanair is always among the websites that she looks

at. Ida rarely opts for package holidays but likes to

create her own unique trip by booking accommodation

separately, usually by searching on Google. Ida often

tries to organise accommodation in other ways, for

example by looking into the possibility of staying

with friends and family.

The trip to Central and latin America, which covered

eight countries, was a package holiday booked

through a travel agency that specialised in young

people, “a travel agency that knows where you can go

bungee jumping and things like that”.

group the opportunity rests in the fact that Digital

Natives do not have an established search pattern. It

is therefore desirable to attract these travellers in the

early stages of the search process.

“One challengehere is the customer group’s lack of brand awareness, a certain

distrust of traditional marketing and a

tendency to alwayswant to validate

information.”

“Reviews by other travellers are good butfeel less personal and

relevant than chats witha person who is of the

same age and/or shares the same interests.”

Key learningsDigital Natives are very price sensitive. They travel a

lot but rarely make complex journeys. The majority of

their trips are domestic or to European cities. One

challenge here is the customer group’s lack of brand

awareness, a certain distrust of traditional marketing

and a tendency to always want to validate information.

They are ‘early adopters’ and discerning when it

comes to channels and user interfaces. With this

1. Relevance. In order to build lasting relationships

with Digital Natives, travel providers should meet the

segment’s expectations with regard to information

and offers, while also establishing brand recognition

early on.

2. Channel optimisation. Digital Natives expect

accessible applications for smartphones, tablets and

social networks. Travel providers should therefore

strive towards an optimisation of search and meta

search channels, social networks and forums, as well

as mobile channels.

3. Easily navigated and broad selection. Choice and

relevant content are important to these travellers

who prefer offers relating to, for example, low cost

airlines, railway companies, a broad range of

accommodation including hostels and Bed &

Breakfast hotels. Make it easy for the segment to

search for the information they want and the most

relevant alternatives through the use of e.g. low fare

calendars or similar shopping tools that help them to

search for a trip based on their preferences.

Half of them live in single households

while the rest live with a partner (also

known as DINKS, Double Income No

Kids). Just over half of those selected

have an above-average income and

like to spend their money on

themselves. unlike Digital Natives,

Young Adults are more likely to spend

a larger share of their income on travel.

Consumption, including travel products,

is seen as an expression of one’s

personality.

16 13 PhoCusWright. Rheem, Carrol (2009). Top U.S. Consumer trends: travel behavior and beyond.

Young AdultsThis customer segment comprises travellers aged

between 25 and 44 without children.

“Consumption, including travel

products, is seen as an expression of

one’s personality.”

Compared with other groups, Young

Adults’ travel is more limited to

holidays and weekends as they tend to

have less free time than other

segments. Their trips therefore need

to be time efficient. like Digital

17

Natives, they can still be relatively spontaneous when

it comes to booking. They take ‘mini holidays’ and

long weekends rather than long summer holidays.

The segment has high expectations of the services

they use and just over half are innovators or

early adopters with high expectations of specific

technology13.

This segment has the highest level of overall online

shopping. 85 percent of 25-34 year olds shop online

compared to 83 percent of 35-44 year olds14. The

greatest number of mobile Internet users can be found

in the 24-44 age bracket15. They spend less time on

social media than the youngest traveller segment.

56 percent share travel related information or upload

holiday photos in social media ‘sometimes’ or ‘often’.

TravelYoung Adults feel a strong need to travel and explore

the world. Almost half travel together with another

person, such as a friend or partner. They travel less

often than younger travellers, but tend to travel

abroad more. They also travel less by train.

It is often the popular destinations that attract Young

Adults. About one fourth of trips taken by the

“80 percentprefer to organise

everything to do withthe trip themselves,

which sometimes means booking travel and

accommodation separately.”

“About onefourth of trips

taken by the segmentare so called beach

holidays, but they also take more city breaks

than any othercustomer segment.”

segment are so called beach holidays, but they also

take more city breaks than any other customer

segment. They like being active once they arrive at

their destination. Inspiration comes from friends and

family, but also to some extent from travel literature.

Just like Digital Natives, price still remains an important

factor when it comes to selecting a destination.

Booking and inspirationThe majority of Young Adults book trips directly with

the airline, a low cost airline or online travel agency.

Out of all the segments in our selection, Young Adults

is the one that most consistently avoids tour

operators. 80 percent prefer to organise everything

to do with the trip themselves, which sometimes

means booking travel and accommodation separately.

They have strong brand awareness and return to the

same brands during the search process more often

than the youngest segments. This doesn’t necessarily

make them loyal when it comes to booking since they

want to feel smart when they search.

Amadeus Scandinavia’s survey showed that in the

information search phase, this segment searched the

largest number of travel sites, including meta search

sites, of all the segments. Young Adults like to use

new technology such as mobile applications to search

for trips when and where it is convenient for them.

14 Danmarks Statistik (2011). Befolkningens brug av internet 2010. 15 Knut-Arne Futsæter, TNS Gallup (2012). Medie Trender 2011.

Slovakia. She feels equally at home in Copenhagen as she does in

Beirut and Bratislava. Her partner Christian is not as well travelled

but likes travelling with his partner and is happy to let her book

their trips.

Aside from weekend breaks, they try to find the time for at least

one beach holiday and one sports holiday (skiing or golf) each year.

Most recently they travelled to Turkey where they combined a

beach holiday with golf and a few days in buzzing Istanbul. They

also went skiing for a week in the French Alps recently. They usually

travel with friends.

As Mette is the more experienced traveller, she also takes the lead

when it comes to booking. Often she will have an idea of where she

wants to go, but because they don’t always agree on the purpose of

the trip there’s usually a fair bit of searching and compromising

involved. Mette likes to experience things, ideally of a cultural

nature, while Christian likes to slow down and just have a nice

18

Profile Name: mette nielsen

and christian Jensen

Age: 30 and 29 years

Nationality: danish

Occupation: brand consultant and

re-insurance broker.

Main reason for travelling: they

both work a lot and like to travel to

take breaks from their hectic day-

to-day lives. they also travel to see

friends that work abroad and to

attend friends’ weddings.

Young Adults

As her family lived abroad for several

years, Mette has travelled a lot ever

since childhood. Her best friend lives in

Beirut. While studying at Copenhagen

Business School, she organised

internships for herself in France and

“She is notfamiliar with manyonline travel agency

brands and sometimes confuses these withmeta search sites.”

“Mette bookedthe trip through anonline travel agency

but spent a lot of timeon Tripadvisor before

deciding on the hotel.”

19

time. Once they have agreed on one or two alternative

destinations, Mette always starts searching for

flights using the same meta search site and the same

online travel agency, either by checking their websites

or their Facebook presence. Mette feels that these

two sites are the best at generating the lowest prices

combined with a user-friendly interface.

She then looks at the airlines’ websites before going

back to ‘book’ via the meta search site. She is not

familiar with many online travel agency brands and

sometimes confuses these with meta search sites.

She usually looks for suitable hotels by reading

Tripadvisor reviews by other travellers.

Mette used to subscribe to email newsletters

communicating special offers from various travel

providers but cancelled these a long time ago: ”They

were too general and felt more like spam”.

The trip to Istanbul was, unusually, a package holiday

that included flights and accommodation. Mette

booked the trip through an online travel agency but

spent a lot of time on Tripadvisor before deciding on

the hotel. She booked the skiing trip through Club

Med: “When it comes to skiing it is easier when

everything’s included, such as food and ski school”.

Key learningsIncreasing the conversion rate and making travellers

more loyal are examples of challenges that characterise

the Young Adults segment.

1. One-stop shop. Online travel agency bookings can

be increased by attracting this group early on in the

search process. Competitive prices are one key element.

Another important aim is to market the travel agency

channel as the ultimate one-stop shop, saving

travellers’ time.

2. User experience in line with consumer expectations.

Young Adults have high expectations when it comes

to user experience and innovative technology that the

provider should be able to meet. Ideally, the user

experience should be on par with other travel industry

websites, for example meta search sites and popular

hotel booking sites. Young Adults mistrust traditional

marketing such as email campaigns. Therefore, the option

of attractive loyalty schemes could be considered as the

group is happy to participate in these if they appear

more personalised.

3. Choice. Travel providers need to offer choice in the

form of content that is relevant to the customer group.

That may mean a greater selection of hotels along

with advanced filtering. Hotel sites enjoy a strong,

positive position among Young Adults. With dynamic

packaging, users are given the opportunity to create

trips that are tailored to their needs, which is

particularly important when it comes to this

customer segment.

“The time limitation creates some frustration when it comes to

searching fortravel products

online...”

Family Travellers are travellers aged

between 18 and 64 with an average

age of 41, with children living at home.

In the Amadeus survey, just over one

third had at least one child aged 0-5

years old while the rest had older

children. Every tenth person in this

segment is a single parent and as

many have more than three children.

One third are couples with one child

while nearly half have two children.

The families in the survey have healthy

finances and 71 percent have an

income above the Swedish, Norwegian

or Danish average.

20

Family TravellersFamily Travellers are travellers aged between 18 and 64 with an average age of 41, with children living at home.

Family Travellers are competent users

of the Internet but have less time to

spend online and on social media.

31 percent upload holiday photos or

share travel-related information in some

“This segment oftenshops online. However, they don’t always wantto book via the Internet because they are unable

to find the answers toall their questions.”

“With regard to the number of consumers,

Family Travellersrepresent the largest category. At the same time, they take fewerthan two flights with

overnight stays perperson per year on

average...”

21

other way. Just three percent do so every time. The

time limitation creates some frustration when it comes

to searching for travel products online, especially before

they have decided on a destination.16

TravelFamily Travellers are by nature highly price sensitive.

However, they have also specific requirements when it

comes to travel which govern the way in which they

search for information and plan their trips. For example,

they require direct flights and families with young

children in particular have stringent requirements with

regard to health and safety during the trip. The timing

of trips is often governed by the children’s school

holidays, in cases where the children are at school. This

customer segment wants the activities available at the

destination to be family friendly, and this may influence

their choice of destination.

Just over half of Family Travellers tend to travel within

Europe and represent the category that most favours

relaxing beach holidays. package holidays booked

through companies providing such are the natural

choice and for these, Family Travellers account for the

most important customer segment. Families with

young children often choose popular destinations

and activities while families with older children prefer

trips to more exotic places. ‘All inclusive’ options are

popular among these travellers.

With regard to the number of consumers, Family

Travellers represent the largest category. At the same

time, they take fewer than two flights with overnight

stays per person per year on average, the lowest

figure of any customer segment. Family Travellers is

also the customer segment that spends the least

amount of money on travel per person per year.

Booking and inspirationFamily Travellers visit fewer websites than Digital

Natives and Young Adults when looking for

information online. A third start by looking at the

tour operators’ websites for inspiration and make the

booking months later, either with that company or

with the airline directly. Their decision-making

process is longer as they need to plan their trip well

in advance. This segment often shops online.

However, they don’t always want to book via the

Internet because they are unable to find the answers

to all their questions. These travellers thus need to be

able to ask a representative for the travel companies

to a greater extent.

Family Travellers value reviews by other travellers but

also like to be familiar with the brand in question.

Just over half prefer to book directly with an airline

while one fourth book with tour operators.

16 Amadeus (2012). Empowering inspiration: The future of travel search, a study conducted by PhoCusWright.

she was younger she travelled to exotic destinations such as Africa,

Asia and Australia at least once a year. She likes to avoid typical tour

operator destinations.

The couple has not taken many trips since having children. Mostly,

they have travelled to visit Anna’s family in Malmö and to various

child-friendly destinations such as the Skara Sommarland theme

park and Astrid lindgren’s World in vimmerby. They have been

wanting to take a trip for a long time, especially Anna who

sometimes misses her ’old’ life, but it has been hard to find the

right time and the right destination. Fredrik’s business and the

farm that they live on take up a lot of time. However, the hardest

thing has been finding a holiday to suit the whole family: the travel

time should not be too long, there should not be too many stops,

they want to avoid too great a time difference, it should not be too

22

Profile Name: Fredrik and anna Johansson,

with children maja and oscar

Age: 41 and 39 years, and 5 and 3 years

Nationality: Swedish

Occupation: Self-employed in the

agricultural sector and environment

manager for the local council.

Main reason for travelling: Spend

time with the family without stress

of the daily grind.

Family Travellers

Anna travelled plenty when she was

younger, including backpacking in Asia

and safari in Kenya. Fredrik has not

travelled quite as much. Both like

travelling, but Anna is the one who is

most keen on faraway places. When

“They havestarted to look online

numerous times without being able to get enough information to decide on

a destination.”

“Family Travellersare relatively

experienced travellersand competent usersof the Internet. Their

decision-making processis longer, but on the

other hand they haveless time to spend

on finding newtravel providers

or websites.”

23

hot for the children and the hotel needs to be as

child-friendly as possible. At the same time, they

would like to travel when the weather is at its coldest

at home, but want to avoid the periods when tickets

are the most expensive. They have started to look

online numerous times without being able to get

enough information to decide on a destination. Their

last trip was a week-long package holiday to Costa rica.

Key learnings1. One-stop-shop. Family Travellers are relatively

experienced travellers and competent users of the

Internet. Their decision-making process is longer, but

on the other hand they have less time to spend on

finding new travel providers or websites. This means

that Family Travellers are a loyal customer segment

once they find a site that they like. A ‘one-stop-shop’

makes it easy for travellers to find everything they

need in one place.

2. Detailed information. Although competitive is an

important factor and attracts this customer group,

these travellers value detailed information higher

than low prices. Family Travellers are also keen to get

help finding the right destination. User generated

content can also help attract this customer segment,

for example through traveller reviews and photos

which can inspire and create trust. providing correct,

up-to-date and detailed information that shows

exactly what is included in the price at all stages of

the booking process is appreciated.

3. Good customer service. These travellers appreciate

customer service throughout the process comprising

search, booking and the trip itself. It may nevertheless

be difficult to transfer the expertise that can be

offered in a physical encounter to the Internet

environment. Family travellers can be converted from

search to booking by offering the right content and

guidance. One example of this could be a clear matrix

showing the tickets available, as well as hotel prices

and additional services such as seat reservation or

information about in-flight food. ‘Shopping baskets’

showing the total price for the trip also tend to be a

popular feature. In addition, customer service such as

live chat may be preferable in some cases.

“EmptyNesters are more active travellers than previous

generations and they express a strong need to

travel.”

Travellers in this segment still work and

have healthy finances. Just 12 percent

of those surveyed have a lower-than-

average household income. They are

also healthy and relatively fit compared

to previous Empty Nester generations.

This segment represents a large,

growing and increasingly important

customer group. The fact that they no

longer have children living at home

means that these travellers are flexible

when it comes to dates, and do not

need to plan their trips so far in

advance.

Empty Nesters are somewhat less

Internet mature compared with the

previous customer segments but

almost 75 percent still use the Internet

24

Empty NestersEmpty Nesters are travellers aged between 45 and 64, with an average age of 56, without children or with

children who have left home.

“Consumers agedbetween 45 and 64

represent a fourth ofall travellers and take

between three and four trips with overnight stays

per year, 70 percentof which are trips

abroad.“

“This segmentrepresents a large,

growing and increasingly important customer

group. The fact that they no longer have children

living at home means that these travellers are flexible

when it comes to dates and do not need to plan

their trips so far in advance.”

17 Findahl, Olle (2011). Svenskarna och Internet 2011. Stiftelsen för Internetinfrastruktur. 18 Danmarks Statistik (2011). Befolkningens brug av internet 2010. 25

daily17. 76 percent have bought products and services

online, despite fear of payment card fraud being

more common in this group than in younger

segments18. One fifth has uploaded photos on social

networks or shared information about their trips

online.

TravelEmpty Nesters are more active travellers than

previous generations and they express a strong need

to travel. Consumers aged between 45 and 64

represent a fourth of all travellers and take between

three and four trips with overnight stays per year,

70 percent of which are trips abroad. Together with

the oldest customer group, Golden Oldies, Empty

Nesters spend the most money on travel per person

per year.

This customer segment appreciates relaxed holidays

but barely a third prefer beach holidays and especially

the Scandinavian tour operator concept. unlike

Family Travellers, Empty Nesters often opt for more

unusual destinations featuring more adventure and

special themes. However, they also take shorter

breaks to cities due to the affordable flights available.

Booking and inspirationDespite being somewhat less online savvy than the

younger segments, these consumers do use the

Internet to find travel information, something which

they also find rather entertaining. They usually find

inspiration for their travels from tour operator

websites or catalogues, specific airlines and travel

agencies. Just over half still book their trips directly

with airlines and prefer traditional brands over low-

fare operators. Empty Nesters represent the second

most important customer segment for tour

operators.

Empty Nesters are happy to book through a travel

agency and feel that it is worth paying a service fee to

get help with booking. In these cases they use

traditional agencies rather than those with an online

presence exclusively.

have considered selling to buy a holiday property abroad. Several of

their friends have houses or flats in Spain or southern France.

However, they are still undecided and while they wait they try to

visit as many places as possible.

Both Kirsten and lars work, but they no longer need to adapt to the

children’s school holidays or similar. That is why they are now

visiting a series of cities that they always dreamt of seeing or

returning to; Barcelona, Milano, london and paris. They go on

package holidays at least once a year to get a bit of sunshine. They

try to avoid travelling in high season and are relatively flexible

when it comes to dates. The last trip, a week on Gran Canaria, was

booked one month before departure.

Kirsten and lars have a pretty good idea of where they want to go.

However, when it comes to city breaks they are not too concerned

about where they end up, as there’s so much to see! Two or three

times they have chosen their destination based on the routes

26

Profile Name: Kirsten and lars Jensen

Age: 56 and 60 years

Nationality: danish

Occupation: architect and

construction engineer

Main reason for travelling: to enjoy

good food and good company, and

to visit new places and/or old

favourite spots.

Empty Nesters

Kirsten and lars live north of Copenhagen

and have three grown up children aged

33, 30 and 24. When the children were

small, the family could not afford

expensive holidays. Back then they

mainly took driving holidays, either to

Sweden to go skiing or to southern

Europe, or bought last-minute deals.

Today the house feels empty and they

“Both Kirsten andLars work, but they no

longer need to adapt to the children’s school

holidays or similar. Thatis why they are now

visiting a series of cities that they always dreamt

of seeing or returningto; Barcelona, Milano,

London and Paris.”

27

offered by a low-fare airline. They find it rather easy

and convenient to look for flights online. Finding a

hotel can be difficult and often takes time, which is

why they have at times chosen to book flights and

accommodation together. They subscribe to several

newsletters to receive special offers. Kirsten has even

opened a Facebook account and keeps up-to-date

with various campaigns by ‘liking’ different travel

providers. The trip to Gran Canaria was booked

through a tour operator. Having ordered the catalogue

and looked through it at home, they continued their

information search on the Internet where they also

eventually made the booking.

Key learnings1. One-stop-shop. Empty Nesters are loyal once they

find a provider or website that they like. Travel

agencies are therefore able to offer a one-stop-shop

where these travellers can search and book several

options, including ready-made package holidays or

content to tailor their own holiday. Even though low

prices generate visitors to the website or to the shop,

extensive information is more important. These

travellers also value personal service, which can be

achieved through for example live chat. If they

instead choose to visit the travel agency’s shop in

order to ask questions about the destination, it may

be good if the travel agency can recreate the same

searches as they made on their home computer.

loyalty can also be achieved through customer

programmes such as points schemes.

2. Detailed information. Since Empty Nesters are

experienced travellers and competent Internet users,

they have established relationships with various travel

providers and chosen a preferred channel for booking. It

is therefore important to provide sufficient relevant

information in order to boost the conversion from

customers who search to customers who book. It is also

necessary to give travellers the right guidance in order

to achieve this. The type of content that most interests

this customer group tends to be traditional airlines but

also low cost airlines, package holidays and hotels. They

appreciate having access to a clear matrix showing

available tickets, hotel prices etc. Too complicated rules

should on the other hand be avoided while the inclusion

of ‘shopping baskets’ that show the total price of the

selected holiday tend to be a much appreciated feature.

3. Personal experience. For this segment the search

experience can be personalised through, for example,

a ‘My pages’ feature, personalised messages based on

previous bookings or suggestions along the lines of

‘Other people also booked...’. It is also becoming

increasingly important for providers to be capable of

offering additional services such as seat reservation

and in-flight meals. As Empty Nesters are interested

in trips taken by others, the inclusion of user-

generated content may be beneficial.

lars will be 60 this year and is planning to take the

whole family abroad: Kirsten, their three children

and the oldest daughter’s partner and their little girl.

He is considering either a package holiday to Thailand

or a cruise. He will probably visit a travel agency for

advice though. They will be quite a large group and

he wants there to be something for everyone to enjoy.

28

“This group isalso the largest

consumer of package tours.”

Golden Oldies are travellers aged 65 years

and above who are (usually) retired

and consequently have plenty of time

to travel. They are therefore flexible on

dates. This customer group enjoys

trips involving a large number of

organised activities more than the

younger generations. Despite this,

they do not express the same urge to

travel. This customer group’s income is

shrinking, but is still on an average to

high level, meaning that they are able

to spend their money on travel.

28

Golden OldiesTravellers aged 65 years and above who are (usually)

retired and consequently have plenty of time to travel.

This segment has the lowest level of

Internet maturity. According to Olle

Findahl’s report “Svenskarna och

Internet 2011”, 51 percent of Swedish

consumers aged 65-74 use Internet

daily while the corresponding figure for

people aged 75 and above is 27 percent19.

On average 26 percent of this age

group had shopped online in 2010 and

almost 40 percent worry when it comes

to using payment cards online20. Also,

according to a report by Danmarks

19 Findahl, Olle (2011). Svenskarna och Internet 2011. Stiftelsen för Internetinfrastruktur. 20 Findahl, Olle (2010). Svenskarna och Internet 2010. Stiftelsen för Internetinfrastruktur.

29

“This customergroup also displays

more brand loyalty than others and tend to pick

well established providers to satisfy their need

for security.”

“The average sum spent per trip and person is the highest of all segments in

the survey. Sunny destinations are the most popular (26 percent) while

they tend to avoid city breaks. Instead they opt for theme travels, cruises

and golf holidays.“

29

Statistik, 31 percent of the Danish population aged 65-89

used the Internet daily in 2010, and only 20 percent

of this age group had done a purchase online during

the last 12 months21.

TravelGolden Oldies do not experience the same need to

travel as other customer segments. Travelling has

nevertheless become an ‘every-day thing’ in this

customer group. Amadeus’ survey shows that 60 percent

usually travel with their partner while only four percent

travel with their children or grand children. Multi-

generational travel is nevertheless becoming more

and more common. This customer group also displays

more brand loyalty than others and tend to pick well

established providers to satisfy their need for security.

The most popular trips among Golden Oldies are

traditional beach holidays to southern Europe, but

more adventurous destinations are also common.

A majority of trips taken are trips abroad. This customer

segment accounts for 18 percent of all consumers

and takes four trips by air or rail per year. The average

sum spent per trip and person is the highest of all

segments in the survey. Sunny destinations are the

most popular (26 percent) while they tend to avoid

city breaks. Instead they opt for theme travels, cruises

and golf holidays.

The weather at home tends to govern the timing of

trips more than anything else. When it comes to

selecting a destination, this segment is happy to go

by friends’ recommendations and the destination

itself is often the purpose of the trip. price is rarely a

determining factor for these travellers.

Booking and inspirationGolden Oldies are sceptical of buying products online,

but are happy to go online for travel inspiration if

they have access to the Internet. They use tour

operator and airline websites, as well as traditional

travel agencies. However, half book their flights

directly with the airline, a fourth are made through a

tour operator, and the remaining one fourth, the

highest share of all segments, are made through

traditional travel agencies. Golden Oldies represent

the customer group that is most positive to booking

through a travel agency offline, both because they are

accustomed to doing so and because they feel secure

having face-to-face contact. This group is also the

largest consumer of package holidays.

21 Danmarks Statistik (2011). Befolkningens brug av internet 2010.

Instead, they spent their spare time in the family holiday home in

Swedish roslagen. Each year they travelled to the Swedish

mountains for a week of skiing.

Since retiring, the couple has taken one beach holiday per year in

the Mediterranean, ideally in spring to avoid the hottest months.

They still spend the summer months in the Stockholm archipelago.

They also make one or two trips to Brussels to visit relatives each

year. Göran tends to be the one who researches their trips.

Considering that he is 75 years old, he is an ‘early adopter’ and

frequent user of the Internet. He even owns a smartphone. Eva is

not as interested in technology and spends very little time online.

They book however their holidays in a travel agency shop.

Both Eva and Göran are interested in history and culture and they

have therefore gone on several such holidays organised by one of

the Swedish broadsheets together with various travel agencies.

So far they have “Explored the architecture and paintings of venice”,

30

Profile Name: Eva and göran hansson

Age: 70 and 75 years

Nationality: Swedish

Occupation: retired. Eva is a

pharmacist and göran is a doctor.

Main reason for travelling:

Exploring older cultures and history.

Golden Oldies

Eva and Göran live in Stockholm. They

retired some years ago but Göran still

works as much as he can. The couple

has travelled a lot, both in a professional

capacity and privately. Eva accompanied

Göran on various international

conferences as often as she could.

Having three children meant that they

did not take many holidays abroad.

“What appeals to them the most about the

theme travels is the entire package which includes Swedish-speaking tour guides. Sometimes they have even chosen their

destination based on the guide involved. This was

the case when well-known Swedish historian Hatte

Furuhagen guided one of the trips to Italy.”

31

learned about the “Kings, world heritage and politics

of Jordan” and taken a river cruise on the Garonne in

France. They are also still talking about their tours of

Morocco and Istanbul.

Key learnings1. Good customer service. Good support throughout

the process, from search to booking, is important to

this customer group as they value security and trust.

It is also important to be able to offer relevant

additional services such as seat reservations for more

leg room. One option could be to offer a detailed and

personal search and booking process, both online

and through the traditional travel agency channel.

For this segment, the search experience could be

personalised using, for example, ‘My pages’ and

personal messages.

2. Information equals security. One challenge with

this customer group is to offer sufficient information

in the online channel for them to feel safe. This

means providing the right type of information and

relevant offers in order to give them the chance to

tailor their trip based on their specific interests. The

offer should include both traditional and low cost

airlines, packages and theme travels as well as hotels,

and a clear matrix showing the tickets available,

hotel prices etc. These travellers demand correct and

detailed information showing exactly what is

included. On the other hand, rules should not be too

complicated and information on the total price for

the selected trip should be displayed in so called

‘shopping baskets’.

3. Customer care. Travel agencies have the opportunity

to build on their existing relationships with this

segment and create loyalty by expanding their

offering. Add-on services such as seat reservation or

in-flight meals, as well as information about trips

taken by other travellers, are appreciated. For theme

travels and group trips, get-togethers may be a good

way of giving travellers the information and the

feeling of security they require ahead of the trip while

also giving them the opportunity to meet the other

travellers. Introducing customer schemes, for

example through the allocation of points for every

trip booked, may also create loyalty.

What appeals to them the most about the theme

travels is the entire package which includes Swedish-

speaking tour guides. Sometimes they have even

chosen their destination based on the guide involved.

This was the case when well-known Swedish

historian Hatte Furuhagen guided one of the trips to

Italy. Aside from the destination itself and the

package, the couple values travelling in comfort. In the

past they have chosen to travel first class on long-

haul journeys to have more leg room.

32

2,5

10 000 Kr

9 500 Kr

9 000 Kr

8 500 Kr

8 000 Kr

7 500 Kr

7 000 Kr

6 500 Kr

6 000 Kr

3,0 3,5 4,0 4,5 5,0

AvEr

AG

E Sp

END

ING

pEr

TrA

vEl

NuMBEr OF YEArlY TrAvElS pEr pErSON

GOlDENOlDIES

YOuNGADulTS

DIGITAlNATIvES

EMpTYNESTErS

FAMIlYTrAvEllErS

33

ConclusionsThe five customer segments represent different conditions

for travel providers depending on the varying needs ofthe travellers, their knowledge and habits.

The five customer segments represent different conditions for

travel providers depending on the varying needs of the

travellers, their knowledge and their purpose for travelling.

Although there are clear similarities between the different

segments, like the willingness to make a good deal, it is

impossible to generalise. However, some conclusions can still

be drawn, giving us an idea of how people travel today and

how developments can create opportunities for all travel

providers.

Family Travellers represent the largest customer group based

on volume, accounting for a third of all flight bookings in

Scandinavia. Golden Oldies are nevertheless the most frequent

air travellers. This customer group also spends the most money

on travel after Empty Nesters. Together, these two segments

account for more than half of the total travel spend. Family

Travellers thus account for the largest number of flight

bookings while the two older customer segments generate

the most revenue.

Digital Natives is the group with the greatest overall potential.

65 percent of flight bookings in this customer group are not

made through a travel agency or tour operator. Instead, these

travellers tend to book ‘flights only’. However, these consumers

represent tomorrow’s leisure and business travellers and are

thus an important segment to monitor. By attracting Digital

Natives early on in the search process, through digital services

and technology that represents broad yet relevant content,

travel providers are able to strengthen their relationships with

this customer group and expand the relevant product offering.

Young Adults, on the other hand, represent the largest real

potential for travel agencies. A third of flight bookings in this

customer group not made through a travel agency or tour

operator are bookings where travellers have

purchased flights and accommodation

separately and that could potentially have

been booked through a travel agency.

Today’s consumers are empowered. They

are in the driver’s seat with all the

information in the world just a click away. In

today’s competitive environment, one can

therefore not presume to change consumer

behaviour. It is also difficult to change

consumer attitudes towards a booking

channel or the intermediary role that travel

agencies represent. Instead, travel industry

players stand a better chance of influencing

their target group’s decision-making

processes by:

• Being present where the target group is, for example in the mobile channel or in social networks.

• Attracting the target group to the shop or website by displaying competitive prices and the right type of offers.

• Offering the target group choice.

• Meeting the target group’s expectations with regard to offer, user interface and service.

34

Website hintsThe website experience is generally

very important to consumers.

A study conducted by Tealeaf Technology Inc. for the British

market in 2011 shows that even if the price is the most important

factor (66 percent) almost half state that a positive experience at

the time of booking is highly important. When asked what

contributes to a positive impression of a website, the respondents

answered competitive prices (69 percent) followed by ease of

navigation (41 percent). 21 percent felt that a lack of errors

contributed to a positive experience and 15 percent valued access

to contact details22.

In 2011, Amadeus Scandinavia performed 15

in-depth interviews to examine what factors

characterised a positive and a negative

experience of travel sites respectively. In some

cases the subjects experienced significant

frustration. Below are some hints on what

these travellers valued and disliked the most.

The order in which they are listed does not reflect

the importance accorded to each feature.

22 Tealeaf Technology Inc.(2011). ”The ebooker: Understanding how travel customers use the web”.

Factors that create a positive experience:

Factors that create a negative experience:

• After going through several search steps,

selected alternative is not available.

• An error message appears stating what went wrong

(which affects the traveller’s trust in the provider).

• The website is not user-friendly and creates

confusion,forexamplewhenthepageforflights

has a different lay-out to the one for package holidays.

• The return journey month is not automatically

matched to the departure month.

• There is no low-fare calendar, or the low-fare

calendarisdifficulttofind.

• Aspecificdestinationmustbegivenbefore

starting the search. Sometimes travellers prefer

to search for attractive trips by date and price

instead of a list of destinations. It can also be

difficulttoseeinwhatcountrythedestination

is located.

• The website search engine does not recognise

the destination or hotel and responds stating

that the word has been misspelled, even though

it has not. There are often several ways of spelling

the name of a destination.

• Unclear from the results list whether the

alternatives generated involve stop-overs and

lack of information on transit times.

• Dates are not shown in calendar form and

travellers need to verify the date of a certain

weekday themselves.

• Visitors have to enter the same information

several times on the same website.

• It is not clear what the different additional

charges are for; if there are any additional charges

or what the total cost is.

• Thefilterfunctionworksbadlyandthewrong results are generated.

• The ‘show on map’ function for e.g. hotels is

difficulttofind.

• Notclearwhatfiltershavebeenselected,e.g. when only a few hotels are shown for a popular

destination.

• A low-fare calendar.

•Filter for preferred travel time (morning,

afternoon,evening)orfilterclearlyshowing

which options are the quickest or the cheapest.

•Clearly stated transit times.

•The information entered by the visitor is

automatically populated as he/she navigates the

website.

•Possibility of adding +-1 day without having

to restart the search.

•Mobile application that allows users to, e.g.

searchforflightswhileonthebus.

•Detailed hotel information and good quality,

descriptive images.

•Reviews and ranking of hotels.

•The website remembers information from the

previous visit, for example the number of children

and their ages.

•Transparent special offer prices.

•Broad geographic database (to come closer to the

destination sought).

About Amadeusamadeus is the chosen technology partner and transaction processor for the global

travel and tourism industry. the company provides distribution and technology solutions

to help its customers adapt, grow and succeed in the fast changing travel industry.

customer groups include travel providers (airlines, hotels, car rental companies, railway

companies, ferry lines, cruise lines, insurance companies and tour operators), travel

sellers (travel agencies) and travel buyers (corporations and travellers).

amadeus’ solutions and services are used by our customer groups in different

ways. More than 91,350 travel agency points of sale and over 67,180 airline sales offices

use the amadeus system to run their business. many of the industry’s other leading

travel service providers use our modular technology to optimise their distribution and

internal operational requirements.

amadeus has central sites in madrid (corporate headquarters and marketing),

Nice (development) and Erding (Operations – data processing centre) and regional offices

in miami, buenos aires, bangkok and dubai. at market level, amadeus maintains customer

operations through 73 local amadeus commercial organisations covering 195 countries.

amadeus operates under a transaction-based business model that offers it solutions

to virtually all players in the travel industry. the amadeus system processed 948 million

key billed travel transactions23 in 2011. amadeus is traded on the Spanish Stock Exchanges

as of 29 april 2010 [amS].

Our tagline, “Your technology partner”, reflects the approach we take towards

our customers. We focus on building and maintaining mutually beneficial long-term

relationships. through this stability we develop an understanding of where we can

maximise our customers’ success, through the provision of technology.

To find out more about Amadeus please go to www.amadeus.com/sca

23 Key Billed travel transactions include air & non-air travel agency bookings, passengers boarded (PBs) & e-commerce passenger name records PNRs

Amadeus Scandinavia AB Gävlegatan 22, Box 6602 SE-113 84 Stockholm, SwedenTelephone: +46 8 458 05 00www.amadeus.com/sca

© 2

012

Am

adeu

s Sc

and

inav

ia A

B