Global, European and Italian Travel Trends
December 1, 2011
Florence Kaci Director, Sales EMEA and European Market
Specialist
Global Landscape
Italy Online Travel Overview
European Distribu=on Trends
Mobile Hits the Mainstream
Travel Distribu=on and Social Media
Agenda
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PhoCusWright Analysts Around the World
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Does Your Distribu7on Strategy S7ll Look Like This?
Global Landscape
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Lower
Highe
r
Online Travel Pen
etra7o
n
Lower Higher Annual Growth Online Sales
U.S.
U.S. SCAN
U.K.
SPAIN
SING
MEXICO
CHILE
BRAZIL
PERU
COL
ARG
JAPAN
INDIA
U.S.
Europe
APAC
LATAM
Source: PhoCusWright’s Global Online Travel Overview Second EdiFon
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Lower
Highe
r
Online Travel Pen
etra7o
n
Lower Higher
SCAN U.S.
U.K.
SPAIN
SING
MEXICO
CHILE
BRAZIL
PERU
COL
ARG
JAPAN
INDIA
U.S.
Europe
APAC
LATAM
Annual Growth Online Sales Source: PhoCusWright’s Global Online Travel Overview Second EdiFon
© 2011 PhoCusWright Inc. All Rights Reserved.
8
Lower
Highe
r
Online Travel Pen
etra7o
n
Lower Higher
SCAN U.S.
U.K.
SPAIN
SING
MEXICO
CHILE
BRAZIL
PERU
COL
ARG
JAPAN
INDIA
U.S.
Europe
APAC
LATAM
Annual Growth Online Sales Source: PhoCusWright’s Global Online Travel Overview Second EdiFon
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Lower
Highe
r
Online Travel Pen
etra7o
n
Lower Higher
FRANCE
GERMANY
ANZ
ITALY
CHINA
SCAN U.S.
U.K.
SPAIN
SING
MEXICO
CHILE
BRAZIL
PERU
COL
ARG
JAPAN
INDIA
U.S.
Europe
APAC
LATAM
Annual Growth Online Sales Source: PhoCusWright’s Global Online Travel Overview Second EdiFon
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U.S., Europe, Asia Pacific, and La7n America Online Leisure/Unmanaged Business Travel Share of Total Travel
Note: 2011-‐2013 projected. Source: PhoCusWright’s European Online Travel Overview Seventh Edi7on
27% 31%
35% 38% 39% 40%
27% 31%
33% 35% 36%
41%
15% 18%
21% 23% 24%
9% 11% 14%
18% 21%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2008 2009 2010 2011 2012 2013
U.S.
Europe
Asia Pacific
La7n America
European Distribu7on Trends
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Top Five Pan-‐European Online Travel Agencies, Share Among These Agencies, 2010 and 2011
Note: 2011 projected. Source: PhoCusWright’s European Online Travel Overview Seventh Edi7on
30%
10%
10%
40%
9%
2010
Expedia Europe
Opodo
Travelocity Europe
Priceline Europe
Orbitz WW Europe
28%
9%
8%
47%
8%
2011
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Consolida7on
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Deregula7on of the Rail Sector • Rail has been one of the strongest travel sectors • Harmoniza7on of booking systems to accelerate growth • OTAs shaping up to distribute rail content • Mobile bookings to increase rapidly • Rail travel to rise as more compe7tors enter na7onal markets • Flights under five hours to face compe77on from rail
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Long Tail Distribu7on of Travel Accommoda7ons • Highly fragmented European hospitality sector spells boom 7me for OTAs • Vaca7on rentals will be a sector to watch – HomeAway, Airbnb, Wimdu • Even the GDSs are figh7ng for a share of the pie • Travel reviews on OTA sites are key to driving and retaining traffic
Italy Online Travel Overview
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Italy Follows the Trend
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Italian Online Travel Market, OTA vs. Supplier Direct, 2010
Source: PhoCusWright’s Italian Online Travel Overview Seventh EdiFon
OTA 47%
Supplier Direct 53%
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Italian Online Travel Supplier Direct Share (%), 2010 and 2013
Note: 2013 projected. Totals may not add to 100% due to rounding. Source: PhoCusWright’s Italian Online Travel Overview Seventh Edi7on
27%
21%
24%
23%
2% 3%
2010
TraditionalAirlineLCC Direct
Hotel Direct
Rail
Car Rental
Tour Operator
30%
17%
26%
21%
2%4%
2013
Mobile Hits the Mainstream
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Other
None of the above
Web-‐enabled television
Tablet PC/Netbook
E-‐readers (e.g., Kindle)
Web-‐enabled portable music/video players
Web-‐enabled video game console
Web-‐enabled mobile telephone
Desktop computer
Laptop computer
% 10% 20% 30% 40% 50% 60% 70% 80%
2010 2011 Ownership of Web-‐Enabled Devices
Ques7on: Which of the following Web-‐enabled devices do you own/use? Select all that apply. Base: U.S. online travelers (2010 N= 792)(2011 N=1,948) Source: PhoCusWright's Traveler Technology Survey 2010, PhoCusWright’s Traveler Technology Survey 2011
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Con7nuous Engagement and Merchandising
The Smartphone Facilitates Con7nuous Engagement
Source: PhoCusWright Inc.
• The mobile plamorm represents the most personalized environment ever created • Ability to customize offers to parFcular segments and customers
Dream
Book Explore
Share Plan
• Ancillary services of all types are well suited for the mobile plamorm • Combines cross selling effort with personalizaFon and locaFon
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Travel Distribu7on and Social Media
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Over 800 million active users!
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Influence of Social Media Channels on Purchasing Decisions
Ques7on: How influen7al have each of the following features been to you when making travel purchasing decisions in the past 12 months? Select one for each op7on. Base: U.S. online travelers (N=1,948) Note: Totals may not add to 100% due to rounding Source: PhoCusWright's Traveler Technology Survey 2011
45%
42%
44%
34%
34%
31%
29%
36%
40%
52%
53%
61%
Traveler reviews on online travel agency websites, such as Expedia Traveler review websites, such as
TripAdvisor
Online reviews from travel professionals
Comments from people in my online social network, such as Facebook or Twioer
Travel blogs or online travel forums
Company informa7on/promo7ons on an online social network, such as Facebook or
Very influen7al Somewhat influen7al Not at all influen7al
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Immediate Referral Conversion Volume to Hotel Websites, 1H-‐2H 2008-‐2010
Source: PhoCusWright’s Social Media in Travel, 2011 and Compete Inc.
-‐
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Traveler Review Sites Facebook
1H08 2H08 1H09
2H09 1H10 2H10
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Pos7ng today, booking tomorrow?
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On Social Network Site
E-‐Commerce
Video and Photos
E-‐Commerce
Community
Corporate Communica=ons
Vehicle
Social Buying
Purchase PhoCusWright’s European Online Travel Overview or Italian Online Travel Overview by February 1, 2012 and
receive 30% off!
Go to www.phocuswright.com/products and use offer code “bto-‐2011”.
Thank you!
Florence Kaci [email protected]
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