1. Social Media Users and LeisureTravelLead Sponsor: Study Commissioned by:
2. The Mandala Research Model: “Research for the Industry By the Industry”Lead Sponsor: Study Commissioned by: In Partnership with the U.S. Department of Commerce
3. Additional Sponsors: 3
4. Additional Sponsors: 4
6. What Travelers Want Experience is still in. Travelers want to “experience” destinations in all respects; want an authentic experience, and for many this includes reflection of the destination in their hotel, dining and activity choices.
7. Trends in U.S. Leisure Market The automobile rules. 91% of all leisure travelers (that use both paid and unpaid accommodations) travel to their destination by car. There are natural implications for operations and service in all aspects of the travel and tourism industry. Our soon to be released report on the Drive Market helps destinations and attractions capitalize on this lucrative but untapped market.Doing more than one thing at a time Research shows that leisure travelers want to combine a number of activities and seek diversity in the destinations they choose to visit
8. Trends in U.S. Leisure Market Niche markets matter. Finding the right fit means understanding nuances among travel groups • GLBT • Culinary Travelers • Cultural and Heritage Travelers • African American Travelers • Drive Market Travelers Targeted segmentation allows destinations and attractions to reach out with surgical precision • Curious & Engaged African American Travelers • Keeping it Light Cultural Heritage Travelers • Social Media users
9. Trends in the U.S. Leisure Market Emerging from the Recession Optimistic, hopeful, wiser and more discriminating. More leisure travelers are planning to take as many if not a greater number of trips in the next 12 months. Friends and family still matter most When asked about primary reason for last leisure trip, visiting friends and relatives was tied with vacation. Booking Window Narrower Photo Chris Seufert Leisure travelers are booking transport, hotels, and event tickets closer to their travel dates.
10. Trends in the U.S. Leisure Market “Green” not a passing fad. Leisure travelers care about this issue. 48% up from 42% in 2009 saying they are willing to pay more to a travel company who makes efforts to protect the environment. Short stays are here to stay. The 1-2 day trip, whether defined as “weekend getaway” or other personal travel represents the bulk of all room nights. Giving Back Leisure travelers want to contribute positively to the places they visit. Block Island, RI
11. Trends in U.S. Leisure Market • Boomers still booming. These travelers and their needs and preferences still need to be addressed in future leisure strategy. Boomers have the following characteristics: • Greatest share of leisure room-nights • Longest stays • Highest level of spending • Younger travelers key to watch. Gen X and Gen Y saw the fastest increasing room-night volume of all generations at 45% and 29% respectively from 2000 to 2008. While life stage transitions suggest that younger travelers will travel more, improving economic conditions may shift this trend. • New hotel designs to accommodate the “ever connected” business traveler. • It’s a virtual world. Nearly 7 in 10 use the Internet to gather information on travel, with 56% booking online. Boomers and Matures are more likely to do both than Gen X and Gen Y.
12. Increasing Need for Market Research: Targeting U.S. lost one-third its share of international tourism since 1997 Recession in U.S. reduced domestic travel Result: Increased need to identify profitable niche markets; Necessitated need to focus marketing efforts Economic Impact =Justification for Targeting and Spending
13. Name that Destination
14. Name that Destination
15. Trends in US Leisure Market: Digging Deeper Attitudes, world view, and behavior. Not just demographics. • Segmentation on these variables creates a greater distinction, necessary to identify the travelers with whom your product has the most resonance. • Knowing the three Rs is not enough • Rest • Relaxation • Rejuvanation The WHY, draws out the deeper motivation. The underlying values motivating consumer choice.
16. Digging Deeper: Who are Cultural & Heritage Travelers?
17. Sizing the Market: 118.3 Million Adult Leisure Travelers $192 billion economic impact 78% Participate in C&H (U.S. Adult Population - 225 Million)
18. C&H Traveler Segments $124 Billion core C/H
19. Cultural & Heritage Travelers Spend More: $994 Per Trip Travel More Frequently: 5.1 Trips Per Year Stay Longer: 5.86 nights Per Trip See out C&H Experiences
20. They Came, They Saw, They Shopped They Come to Shop: Majority say that shopping was either a key reason for the trip or was a factor in their choice of travel destination. % who agree… % Shopping helped me choose between potential destinations. 30% Shopping was the key reason I chose to take the trip. 23% I sought out shopping opportunities but they were not a factor in choosing 58% between destinations.
21. They Came, They Saw, They Shopped They Spend Time Shopping: Shopping accounts for a third of these International Shopping Travelers’ time when in the U.S. and is nearly a third of their total trip expenditures.
22. They Came, They Saw, They Shopped Shopping accounts for about third of total expenditures Shopping Spend Total Trip Shopping % of Spend Overall Average $1063 $3692 29% Canada $757 $2490 30% Germany $1085 $4127 26% Japan $1200 $4722 25% Mexico $1310 $3249 40% UK $989 $3845 25%
23. Market Sizing and Economic Impact Market Sizing and Economic ImpactSocial Media Users: Market Sizing and Economic Impact
24. Sizing the Market Leisure Travelers* represent 68% of the U.S. adult population, or approximately 152 million Americans. Fifty two percent of these 152 million Americans report that they use social media, which totals approximately 79 million Social media users . U.S. Adult Population Leisure Travelers - Social and (225 million)** Non Social Media Users
25. Leisure Trip Spending: Social Media Users and Non-Users The average trip spending by total leisure travelers is $909, compared to $871 for all social media users and $949 for non social media users. For all three groups, about half of their expenditures are spent on activities, dining and shopping they participated in while traveling. • $909 (Average) Total Leisure Travelers Total Spend • $871 (Average) Social Media Users • $949 (Average) Non Social Media Users 47%/44%/51%of Total Spend is Spent on Activities, Dining and Shopping for both groups • $431 (Average) Total Leisure Travelers Total Spend on Activities, Dining • $386 (Average) Social Media Users and Shopping • $480 (Average) Non Social Media Users
26. Estimated Annual Economic Impact Social media users have a larger economic impact on domestic tourism than non social media users. The total spend by Social media users ($102.9 b) is almost 1.47 times higher than the spend by non social media users ($69.5 b) The greater economic impact of the social media users is driven by the increase number of trips they take on average, 5.4 vs. 4.2 for leisure travelers who do not use social media. Social Media Non Social Media Users Users Average Amount Total Spend $870.72 $949.42 Median # Leisure Trips 3.00 2.00 Population (In Millions) 78.8 73.2 Median Household Size 2.00 2.00 Estimated Economic Impact (In Billions) $102.9 $69.5 Total: $102.9 billion attributable to social media users; $69.5 billion is attributable to non social media users
27. Social Mediaand Leisure Trip Planning, Characteristics, Planning,Social Media Usage Usage and Leisure Trip Behavior Characteristics, Behavior
28. The Use of Social Networking Sites 2009 The majority of social media users say they have been using social networking sites less than two years (56%) These leisure travelers who use social media do more “reading” than posting of content on the sites they visit. Large majorities read Second Life, LinkedIn and others, but few post on those sites. How Long They Have Been Using Social Networking Sites 56%60% 44%40%20% 0% Less than 2 years More than 2 years Sites Used by Both read and post on this social Read this social Post on this social Social Media networking site networking site networking site Users Facebook.com 65% 25% 10% MySpace.com 31% 59% 10% Twitter.com 20% 72% 8% Linkedin.com 16% 77% 7% Friendster.com 7% 85% 7%
29. Length of Social Networking Sites Usage 2011 • More than half of those surveyed have been using social networking sites for two years or more, 68% of Gen Y, 61% of Gen X, 41% of Boomers and 35% of those 64+. • Among drive market travelers, 37% have been using social media sites for between 6 months and 2 years. 29
30. Websites Regularly Visited – African American Travelers Over half of African American travelers regularly visit Facebook.com, Yahoo.com and Google.com. Approximately 70% of Gen Y and Gen X regularly visit Facebook.com. Those with an active interest in their history and culture (C & E Travelers) are more likely to go to Essence.com and Blackvoices.com than the rest of this traveler population. Family Reunion Travelers and those with cultural and historical interests (C & E Travelers) are more likely to look at Blackenterprise.com than other segments. 30
31. Social Networking and Electronic/Communications DevicesPersonally Owned and Used African American Travelers • The majority of this population have their own cell phone and use it. Cell phone usage and ownership are highest among Boomers and the Silent/GI Generations, but the younger generations are more likely to utilize smartphones. • Facebook is quite popular among all generations of these travelers, with 66% to 82% of all travelers posting and reading this site. 31
32. Use of Social Media and Other Online Travel Sites AfricanAmerican Travelers Twelve percent say they use “user- generated” content. Of these, 69% use Trip Advisor, with 80% of the Silent/GI Generations using this source. Facebook.com, Weather.com and Orbitz.com are more popular user- generated sources with Generation X and Y. As Generation Y travelers are more likely than others to book trips on short notice, Hotwire.com is more popular with this cohort. Travelers with an active interest in their culture and history (C & E Travelers) use AOL.com, Answers.com and Myspace.com more than other groups. Hotwire.com and Priceline.com are more popular with Family Reunion Travelers. Business Travelers are more likely than others to turn to Travelocity.com and Disney.com. 32Which, if any of the following user-generated sources n= for 27B
33. Advice from Friends takes on a whole new meaning • Seeing detailed information on points of interest is either critical or important to 68% of travelers surveyed. Almost a quarter, (24%) of Gen Y travelers consider it critical with 78% saying it is either critical or important, 74% of those <50 with fewer (59%) of those travelers 50+ agreeing. • The ability to access written reviews or locations friends liked was either critical or important to 40% of travelers overall. 52% of Gen Y , 53% of Gen X, 30% of Boomers, and 21% among those 64+ agreed. • When asked if viewing editorial reviews, destination information or “best of”, more than half of the travelers surveyed said this was either critical or important. Again younger travelers said this more often, 61% of Gen Y, 66% of Gen X whereas 48% of Boomers and 37% of those 64+.
34. How They Used Their Smartphones in the U.S. – EmergingMarkets Over a third of all travelers A B C D E have a smart phone such as an Total India Australia Brazil Korea China iPhone, BlackBerry, or Droid , etc. 14% 12% Texting was the most used GPS application on phone or other device 10% 5% 10% 11% (C) (C) feature by all groups, followed Electronic maps, such as Google Maps, 18% 29% 13% by electronic maps. Australians 15% 9% 5% Mapquest, . (D E) (A C D E) (E) are the largest group to use 53% 52% electronic mapping with close to Texting or SMS on your phone 47% 45% 40% 48% (C) (C) a third of travelers using this 10% 10% WiFi Finder 8% 5% 9% 4% feature. (C) (C) 10% of all travelers access Sending and receiving email from your phone 9% 6% 11% 10% 12% 6% social media sites with their Reading and/or posting on Facebook, 13% 13% smart phones, the largest group 10% 9% 6% 8% of which are Chinese and MySpace, or other social media sites (B) (B) Travel sites, such as Expedia, Travelocity, Australians. 5% 5% 4% 6% 6% 4% Orbitz, Kayak, Priceline, etc. 34
35. Information Sources Used to Plan Trip Emerging Markets A B C D E Social Media sites such as Total India Australia Brazil Korea China Facebook and Social Media 10% 11% travel sites such as Social Media sites (such as Facebook, MySpace] 6% 4% 2% 3% (C D) (C D) TripAdvisor are more popular among Indian and 6% 7% Social Media travel sites (such as TripAdvisor, etc.) 5% 3% 2% 5% Australian travelers. (D) (C D) Welcome centers en route to destination 4% 4% 3% 5% 3% 3% Blogs 3% 3% 5% 3% 3% 3% 5% 4% Travel provider websites (e.g., airline, hotel, etc.) 3% - - 2% (C D) (C) Podcasts 2% 3% 3% - 3% - Radio 2% 3% 2% - 3% - Online travel website (Expedia, Orbitz, Travelocity) 2% 2% 3% 2% - - Destination web sites (ex. sites dedicated to a 2% 2% - - - - specific U.S. city or attraction) (C) (C) Destination travel guides (printed guides to a 2% - - - - - specific U.S. destination) (A)Which of the following information sources did you use to plan your last trip to [Insert destination visited]?Please select all that apply. Base Total respondents n = 2500
36. Internet Sites Regularly Visited The majority of leisure travelers using social media are regular users of Google and Yahoo and use most online sites and tools more than non social media users. Travelocity and Expedia are the most regularly used online travel agent sites used by the social media travelers, while there is less differentiation among travelers who do not use social media. They are as likely to use Priceline and Cheap tickets as they are to use Travelocity and Expedia. Sites Total Social Media Non Social Sites Total Social Media Non Social Leisure Users Media Users Leisure Users Media Users Travelers Travelers Google.com 64% 70% 58% Ask.com 20% 22% 19% Yahoo.com 53% 61% 46% Orbitz.com 19% 21% 17% Facebook.com MySpace.com 41% 79% 0% 20% 38% 0% Youtube.com 38% 53% 22% ESPN.com 17% 18% 15% Weather.com 33% 37% 28% Priceline.com 15% 18% 12% Wikipedia.com 36% 24% Cheaptickets.com 17% 13% 30% 15% Craigslist.com 31% 39% 23% Hotels.com 14% 17% 11% Travelocity.com 25% 28% 21% AOL.com 15% 18% 13% Expedia.com 23% 28% 18% Twitter.com 12% 23% 0% CNN.com 21% 26% 16% Hotwire.com 11% 14% 9%
37. Internet Sites Regularly Visited One of the most talked about social media sites in travel, TripAdvisor is used by only 10% of all leisure travelers; slightly higher among the social media users (12%) Sites Total Social Non Social Sites Total Social Non Social Leisure Media Media Users Leisure Media Media Users Users Users TripAdvisor.com 10% 12% 8% Bookit.com 3% 3% 2% Disney.com 10% 11% 8% Travelweb.com 2% 3% 2% Linkedin.com 8% 15% 0% Gay.com 2% 3% 1% Answers.com 9% 5% LastMinuteTravel.co 2% 1% 7% m 2% Kayak.com 7% 7% 6% Usmagazine.com 2% 2% 1% Oprah.com 6% 8% 4% Bebo.com 1% 3% 0% Lowestfare.com 4% 4% 4% Friendster.com 1% 3% 0% Rottentomatoes.com 4% 6% 2% Secondlife.com 1% 2% 0% Drudgereport.com 4% 5% 3% VirtualTourist.com 1% 1% 1% Vacation.com 3% 5% 2% Mobissimo.com 1% 1% 0%
38. Attitudes towards social media experiences and networks Shared values is also cited as a reason they participate in these user generated media sites. The majority of leisure travelers who use social media report a sense of belonging, shared values, and say they enjoy the process of sharing user generated content. “Heavy” users, those who participate in 7 or more social media networks, are more likely to report the sense of belonging and enjoyment from their participation.
39. Attitudes towards social media experiences and networks
40. Reasons for becoming TSFs Forrester Technographics® data shows that 26 million more US online leisure travelers use social media in 2010 than in 2008. Leisure travelers are really connected to travel companies beyond booking. A high 41% of US online leisure travelers have become travel social fans (TSFs) by friending, following, or becoming fans of a travel company or destination on a social networking site like Facebook, YouTube, Flickr, or Twitter. 51% befriend a brand without such a reason. They do it just because its fun, or because they like the brand. When they befriend the brand, their main purpose isnt to get something out of that relationship .
41. Reasons for becoming a TSF
42. Trip Information Sources Websites of destination Trip Information Sources Friends and family General Web search (Google, Yahoo) Not surprisingly, social media users, however, 3rd party travel websites (Expedia) are more likely to gather information from the Brochures and info. by destination Web than travelers who do not use social media. Official sources of destination Still, however, the websites of travel destinations Travel related magazines and friends/family members dominate as travel Travel section of newspaper information sources for all leisure travelers. User generated sources (TripAdvisor) Independent published reviews in destination… Convention & visitors bureaus Travel agent 0% 20% 40% 60% General Web 3rd party Indep. User Friends Brochures and Official Travel Travel Convention Websites of search travel published generated Travel and info. by sources of related section of and visitors destination (Google, websites reviews in sources agent family destination destination magazines newspaper bureaus Yahoo) (Expedia) destination (TripAdvisor)SocialMediaUsers 61% 60% 54% 39% 24% 27% 22% 17% 18% 20% 11% 8%NonSocialMediaUsers 53% 50% 42% 23% 28% 20% 22% 21% 16% 13% 12% 7%Total 57% 55% 48% 31% 26% 24% 22% 19% 17% 17% 11% 7%
43. Speaking into their listening• Segmentation - process of dividing the market into subsets of consumersSEGMENTATION,TARGETING AND POSITIONING with common needs and characteristics• Targeting - selecting one or more of the segments to pursue• Positioning - developing a distinct image for the product in mind of customer
44. The Difference: Not so Much The gap is narrow between social media users and non-users
45. The Demographics of Social Media Users vs. Non-users Age Social Media Non Social Social Media Non Social Media Users Media Users Gender` Users Users 18- 24 17% 7% 25- 54 20% 11% Male 47% 53% 35- 44 23% 17% 45- 54 20% 21% Female 53% 47% 55- 64 10% 18% 65+ 10% 26% Average Social Media Non Social Household Social Media Non Social Number of Trips Users Media Users Income Users Media Users Per Year (by Less than 42% 39% type) Leisure 5.37 4.15 $50k $50k- 23% 22% Business 1.22 1.22 $74,999k $75k- 14% 15% Combined 0.82 0.86 $99,999k More than 14% 15% International 0.63 0.47 $100k
46. The Demographics of Social Media Users vs. Non-users
47. The Demographics of Social Media Users vs. Non-users Sexual Orientation Social Media Non Social Media Users Users Heterosexual 90% 90% GLBT 8% 5% Social Media Non Social Media Race/Ethnicity Users Users Race White 72% 76% Black 10% 11% Other 18% 13% Hispanic Yes 8% 7% No 92% 93%
48. The Demographics of Social Media Users vs. Non-users: Generations Age plays a role: Not surprisingly GenX and Millennial travelers are more likely to use social media sites. Generations Total Social Media Non Social Users Media Users Millennials 20% 27% 13% GenX 28% 33% 22% Boomers 33% 29% 37% Silent/G.I. 19% 11% 28%
49. The Demographics of Social Media Users vs. Non-users: Education There are no statistically significant differences between social media users and non social media users regarding education. Education Total Social Media Non Social Users Media Users HS/GED or Less 14% 14% 14% 2 Year Degree or Some College 41% 41% 43% 4 Year Degree 27% 27% 26% Graduate Professional 17% 17% 16%
50. Psychographics of Social Media Users vs. Non Users Social media users and non social media users are fairly similar on the psychographics asked in this study. About half of each said they would pay more for travel experiences that do not “harm the environment.” And nearly two-fifths say they often give back to cultural/heritage destinations they visit while traveling. Most leisure travelers say they prefer trips that are a combination of a “wide variety of activities. “ Social media users are more likely to say they want to peruse a life “challenge, novelty and change” and more likely to want to bring back local products from the destination and share them with family and friends.
51. The Distribution of Leisure Trips and Business Trips Increasingly business travel is being combined with leisure travel or includes some leisure activities. Leisure travelers of all kinds report on average that nearly one of their trips in the past 12 months was a combined business/leisure trip. And more than a third of travelers say that 50% or more of their business travel includes personal, leisure activities. Average number of trips in past 12 months that was combined business and leisure trip 28% 30% 28% 27% 25% Percentage of Domestic Business Travel that included personal, leisure Activities 20% More than a third say that 50% or more of business trips include leisure activities 15% 12% 12% 13% 11% 11% 9% 8% 8% 10% 7% 7% 8% 8% 9% 8% 9% 7% 8% 9% 6% 7% 5% 6% 6% 6% 6% 5% 4% 4% 0% 0% to 10% 11% to 20% 21% to 30% 31% to 40% 41% to 50% 51% to 60% 61% to 70% 71% to 80% 81% to 90% 91% to 100% Total Social Media Users Non Social Media Users
52. The Distances They Travel Travelers who use social media tend to travel farther distances (861 miles) on their leisure trips than travelers who do not use social media (734 miles). Part of this may be due to the higher incidence of air travel among these social media users. Miles Average Miles Traveled
53. Number of Miles Traveled Away From Home Social media users have traveled further on their most recent trip (an average of 861 miles), while non social media users have traveled 734 miles on average. Miles Traveled
54. Sharing Their Experiences Total Social Media Non Social Media Users Users Met in person to talk about the trip 39% 43% 36% Cell phone 43% 46% 40% Text messaging 21% 26% 15% Email 44% 49% 40% Hosted a party 1% 1% 1% Online social community (Facebook, MySpace, etc.) 20% 35% 4% Shared photographs via Kodak, snapfish, etc. 18% 21% 15% Shared photographs via my email account 24% 30% 19% Telephone 42% 44% 39% Posted a review on a travel website (TripAdvisor, 3% 3% 3% Expedia, etc.) Posted on a personal blog/website 6% 9% 2% Other, please specify 2% 2% 3% I did not share my travel experiences with family, friends 16% 13% 20% and/or others
55. Important Factors in Choosing Leisure Activities Top 2 Box Total Leisure Social Media Users Non Social (Very Important/Somewhat Important) Travelers Media Users Relaxing and relieving stress 94% 94% 94% Creating lasting memories 92% 96% 88% Enriching my relationship with my spouse/partner/children 88% 89% 85% Trying a new experience 87% 91% 82% To stimulate your mind/be intellectually challenged 75% 78% 73% Learning more about history and local cultures 73% 76% 70% Having stories to share back home 72% 77% 67% Explore a different culture 70% 75% 66% Pampering yourself 66% 70% 60% Providing educational experiences for my children 61% 66% 54% Seeking out solitude and isolation 53% 56% 51% Pursuing a hobby 53% 58% 46% Challenging myself physically, to feel physically energized 51% 56% 44%
56. Accommodations On Most Recent Trip Overnight accommodations are similar for both users and non users of social media. Paid accommodations are most common, with over a third of all travelers staying with family and friends. Accommodation Type Hotel/Motel/Resort Stayed w/ family/friend Owned home/condo/townhome/apartment Rental condo/townhome/house Bed and Breakfast Recreational vehicle, camper, tent Other Time Share 0% 10% 20% 30% 40% 50% 60% 70% Owned Recreational Rental Bed and home/condo/to Stayed w/ Hotel/Motel/Re Time Share Other vehicle, condo/townho Breakfast wnhome/apart family/friend sort camper, tent me/house ment Total 4% 4% 5% 4% 5% 5% 35% 61% Non Social Media Users 4% 4% 5% 3% 4% 4% 34% 63% Social Media Users 3% 4% 4% 5% 5% 6% 36% 60%
57. Staying at Historical Properties The majority of respondents who stayed in a hotel, motel or resort did not stay in a historical property. Only 8% (N=23) of them stayed in a historical property. Social media users were more likely than non social media users to indicate that they didn’t know if the property was historical and/or they’d rather not say. Stayed in an historical property during most recent trip
58. Research and Information Sources
59. Types of Publications Read by Leisure Travelers:Sports, Fashion,Entertainment, news magazines and newspapers Community newspapers News magazines Entertainment magazines General interest, city life, or regional magazines Travel related magazines National newspapers Fashion/homemaking magazines Food/Wine related magazines Hobby related magazines Sports related magazines 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Sports Hobby Food/Wi Fashion/ National Travel General Entertai News Commun related related ne homema newspap related interest, nment magazin ity magazin magazin related king ers magazin city life, magazin es newspap Total 21% 20% 22% 22% 26% 27% 29% 29% 34% 39% Non Social M edia Users 18% 19% 21% 15% 23% 25% 28% 18% 29% 39% Social M edia Users 23% 21% 24% 28% 29% 29% 29% 39% 39% 40%
60. All the buzz but is it working… While social media networks are getting a great deal of attention lately, only a small share of travelers actually use them to obtain leisure travel information (20%) and, excluding Trip Advisor and Travel Blogs, an even smaller number consider them dependable.
61. Trends in Leisure Travel and Social Media In April 2010, Facebook overtook Google as the most popular site on the Internet. As computers revolutionized travel and tourism planning, the Smart Phone is poised to do the same for reservations, accommodations, navigation A whole new meaning of taking advice from friends and family – our travel site fans of just a year ago are now “friending” destinations but…
62. Trusting content of social networks Friends and family on social media were trusted for product recommendations far more than brand-originated content or people consumers did not know
63. Level of trust with sources for travel information • Unsurprisingly, opinions of family members and friends have the highest levels of trust among all groups. • In addition, people place a high level of trust in the destination’s official website as a source for travel information. Online reviews, on the other hand, only received a high level of trust when the reviews are from know experts. Reviews by other consumers, editors, bloggers, or through chat rooms or discussion boards do not rate highly on the trust level. • The level of trust also varies across age groups, with Gen Y and Gen X appearing more trusting overall than Boomers and people over 64 years old.
64. Dependability: Websites are most used and most dependable,social networks are least
65. Dependability: Higher income travelers find all sources of information moredependable than do lower income travelers
66. Dependability: Hotel and destination websites are most used andmost dependable
67. Recent Industry Information
68. Spending on Social Media marketing is low • 17% of respondents said they allocated only 1% of their annual marketing budget to social media • 16% said they allocate 4-5% • When asked what percentage of their companys overall marketing budget is spent on social media, the largest group, covering 24% of survey takers, selected "dont know“ • Smaller companies with tighter budgets are significantly more likely than large companies to say they spend almost 50% of their marketing budget on social media. Travelindustrywire.com, September 201The Watch is based on a national random survey of 750 small business owners. It is commissioned by Discover Business card, and is conducted by Rasmussen Reports, LLC
69. Lack of metrics for Success • No effective measures for understanding the ROI of social media efforts • When asked to identify the most important measure of social media success, nearly two-thirds of respondents selected "dont know“ • Of those who identified a measurement, the largest group, covering 20%, said engaging customers to respond and provide feedback • 65% of respondents said theyre not using any listening tools to monitor what their customers are saying about their brand. Travelindustrywire.com, September 201The Watch is based on a national random survey of 750 small business owners. It is commissioned by Discover Business card, and is conducted by Rasmussen Reports, LLC 0)
70. SN usage among tour operators69% of companies are spending 10 hoursper week or less on their social mediaprograms,48% of North American travel touroperators participate in social media on adaily basis,77% participate in social media at leastweekly,despite widespread usage of social media,operators are uncertain about its impactson business, with only 43% ofrespondents citing social media as quiteor extremely important to businesssuccess Source: Adventure Travel & Trade Association
71. SN usage among operators • 18% reporting they do not know yet whether social media has bottom-line impact, • just 13% of companies cite social media as generating 10% or more of their revenue, • blogs remain an important, yet under utilized tool, • uploading videos to YouTube is a growing trend among those embracing social media, • monitoring, ‘listening’ and responding to traveler review sites appear to be lagging behind what would be expected, though tour operators outside North America are more prone to do so, • 75% of respondents indicate that their budgets (including human resource wages) for social media will increase in the next 12 months. • Source Adventure Travel & Trade Assoc.
72. Usage among hoteliers • Nearly 70% of US hoteliers responding to the April 2010 study reported online was the marketing channel with the greatest return on investment, and the majority are using a variety of online channels to reach potential customers, including 69% marketing via social media. • They are also ahead in their usage of that tactic: 60% told HSMAI and VIZERGY that they had a social media marketing strategy. • For many hotels, guest reviews are an important part of that strategy. Half said they proactively encouraged guests to post reviews of their hotel, and even those that did not encourage reviews saw the importance of monitoring them. Nearly seven in 10 did so at least weekly.
73. Usage among hoteliers • Social marketing strategies will help the travel industry reach more than just those planning a vacation. According to American Express Business Travel eXpert insights "Social Media in Business Travel Management" report, half of US businesses use social media to support business travel management. • Keeping abreast of the latest travel info was the top benefit cited, by 44% of respondents. They also used social media to reduce costs, look for preferred vendors and analyze travel pattern
74. The Take Away Credibility and dependability are critical. An extension of Word of Mouth Market segmentation and precision targeting will make the difference between successful social media strategy and just another click on the web.
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