7. Consumer Adoption of the Internet is
Exponential
TV
Internet
Radio
Print
1836
1895
1450
1922
1927
1941
1990
2010
Tech Content Users Advertising
7 Google confidential
8. Adoption of online travel is global
1/3 of the world’s travel sales
will be online by 2012
8 Google confidential
15. The Greek Online Landscape
Local players have
prevailed
Advanced
technology and
competition
The online market
share is getting
bigger YoY
Expanding to new
markets (Russia,
Poland, Romania etc)
15 Google confidential
17. Interest in online travel - Greece
Consumers are moving online at an unprecedented rate
Source: Google Internal Data | 2006 – Oct 2011
17 Google confidential
20. Greek National Tourism Organization &
Google promote tourism online
…have taken advantage
of web tools to promote
tourism in Greece
…Ministry’s goal is to
have short-term effective
results
…the current rise in
departures from Russia is
due to this campaign,
‘You in Greece’
20 Google confidential
http://romaniantimes.at/news/Travel/2011-09-09/16786/Lower_revenues_in_tourismMinister for Tourism – Elena Udreahttp://www.businesswire.com/news/home/20111013006063/en/Research-Markets-Greece-Tourism-Report-Q4-2011
The new reality is constant connectivity. More and more travelers are researching and booking online with 50% of US travelers booking online in 2012 and 1 in 3 booking online globally. Furthermore, more than half of the 177 million US online adults have two or more different types of devices connected to the Internet, and one third have at least four.Just as cell phones are no longer just for talking, video game systems are no longer just for games – they are now entertainment systems. In fact, 40% of the average xBox owner’s time is spent watching videos on the device. Even the TV itself is no longer just for TV programs. By 2014, 42% of all TVs shipped worldwide are projected to be internet connected.Mobile is big and becoming even bigger in the online travel space. In the US alone, travel research on mobile is set to grow 50% by 2012 and bookings to grow by nearly 75%. Being present on mobile is a necessity as consumers are demanding access to information wherever they are, not only when they’re at their computer.eMarketer 2011 (Travel Research on mobile to grow 50% by 2012 to 30 Million users, bookings to grow by nearly 75% @ 15.1 Million)The following stats illustrate why mobile is so important and why it will become even more integral to a successful advertising campaign over time.-Half the new Internet connections come from mobile devices. -Last year, more smartphones were sold than PCs. Travel Research on mobile to grow 50% by 2012 to 30 Million users, bookings to grow by nearly 75% @ 15.1 Million by 2012Source: Sold - International Data Corp, Feb 2011; Connections – mainstreethost.com, June 2011 Bookings - eMarketer, Feb 2011 PC: 30%+ YoY growth for hotel queries from 2010 to 2011Tablet: 68% use their tablet at least 1 hr / daySmartphone: 50% searches on mobile are localNot only are consumers “matching” the device they choose to use with the situation or environment they are in but they are often utilizing more than one device at a time.PC - Fixed companionAt home or office Task-oriented Solitary experienceTablet – Couch Companion Dreaming & booking On the move Shared experienceSmartphone – Constant Companion Always with you Location-specific Personal7% of users access the internet from a tablet42% comparison shop for airfares and hotel rates37% book air travel and lodging35% look for ratings or reviews of hotels, restaurants or destinations
By the end of 2012, one-third of global travel sales will be online. That’s one-third of a nearly 1 trillion-dollar industry. In the US, the number of travel purchases made online has already reached the halfway mark. I share this statistic to provide you with a sense of scale – to give you an idea of the current size of the online travel market. However, even as you see this statistic, remember that the goal of improving the travel experience for users is not just to reach current travelers but also to expand the size of the travel pie. Today, 1 in 3 people are online, think of the non-travelers in this group, in addition to those already traveling, as your potential clients.With this in mind, let’s discuss what’s going on in the online travel space.PhoCusWright’s Global Online Travel Overview Second EditionThe global online travel segment, valued at nearly $256 billion in 2010, represents 30% of the total travel market. Over the next two years, global online travel bookings will accelerate twice as fast as the market as a whole, to reach $313 billion by end of 2012 ($966 Billion in total sales, online + offline). By the end of 2012, one third of the world’s travel sales will be made online. Traveler’s Road to Decision - 50%+ of US travelers Book hotels online (66% of personal travelers, 57% of business travelers)
Every phase of the travel cycle - dreaming, researching, booking, experiencing, sharing - is evolving at a rapid pace due to the online revolution...and it shows no sign of slowing down. In addition to being increasingly digital,
