Atout France French- Affairs 20112. October 24, 2011
Trends in Distribution
Workshop
âFrench Affairs 2011â
JW Marriott Marquis
Miami, FL
Cees Bosselaar
Director Business Development and
Destination Marketing Specialist
3. Travel is our world.
PhoCusWright is the global travel research authority on
how travelers, suppliers and intermediaries connect.
9. U.S.
Europe
SCAN
U.S. APAC
Higher
U.K. CHILE
JAPAN LATAM
Online Travel Penetration
ANZ
U.S.
FRANCE
SING INDIA
GERMANY
MEXICO
ITALY BRAZIL
SPAIN COL
PERU ARG
CHINA
Lower
Lower Higher
Source: PhoCusWrightâs Global Online Travel Overview Second Edition
Annual Growth Online Sales
© 2011 PhoCusWright Inc. All Rights Reserved. 9
10. U.S.
Europe
SCAN
U.S. APAC
Higher
U.K. CHILE
JAPAN LATAM
Online Travel Penetration
ANZ
FRANCE
SING INDIA
GERMANY
MEXICO
ITALY BRAZIL
SPAIN COL
PERU ARG
CHINA
Lower
Lower Higher
Source: PhoCusWrightâs Global Online Travel Overview Second Edition
Annual Growth Online Sales
© 2011 PhoCusWright Inc. All Rights Reserved. 10
11. U.S.
Europe
SCAN
U.S. APAC
Higher
U.K. CHILE
JAPAN LATAM
Online Travel Penetration
ANZ
FRANCE
SING INDIA
GERMANY
MEXICO
ITALY BRAZIL
SPAIN COL
PERU ARG
CHINA
Lower
Lower Higher
Source: PhoCusWrightâs Global Online Travel Overview Second Edition
Annual Growth Online Sales
© 2011 PhoCusWright Inc. All Rights Reserved. 11
12. U.S.
Europe
SCAN
U.S. APAC
Higher
U.K. CHILE
JAPAN LATAM
Online Travel Penetration
ANZ
FRANCE
SING INDIA
GERMANY
MEXICO
ITALY BRAZIL
SPAIN COL
PERU ARG
CHINA
Lower
Lower Higher
Source: PhoCusWrightâs Global Online Travel Overview Second Edition
Annual Growth Online Sales
© 2011 PhoCusWright Inc. All Rights Reserved. 12
13. Online Leisure/Unmanaged Business Travel Penetration by
Market, 1992
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Note: 2010-2012 projected.
Source: PhoCusWrightâs Global Online Travel Overview Second Edition, 2011
© 2011 PhoCusWright Inc. All Rights Reserved. 13
14. Online Leisure/Unmanaged Business Travel Penetration by
Market, 2012
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Europe APAC LATAM
Note: 2010-2012 projected.
Source: PhoCusWrightâs Global Online Travel Overview Second Edition, 2011
© 2011 PhoCusWright Inc. All Rights Reserved. 14
15. Online Travel Penetration* of the Total Travel
Market, Global Markets, 2008-2012
45%
39% 39%
40% 38% 38%
35%
35% 36%
35%
33%
30% 31%
24% U.S.
25% 27% 23%
21%
APAC
20% 18%
21%
15% Europe
15% 18%
14%
Latin America
10% 11%
5% 8%
0%
2008 2009 2010 2011 2012
*Leisure/unmanaged business travel websites as a percent of the total travel market.
Note: 2010-2012 projected. Data for 2012 not available for Canada.
Source: PhoCusWright's U.S. Online Travel Overview Tenth Edition; PhoCusWrightâs Asia Pacific Online Travel Overview Fourth Edition; PhoCusWrightâs Latin
American Online Travel Overview
© 2011 PhoCusWright Inc. All Rights Reserved. 15
21. The Leisure Travel Cycle
Dream
Share Plan
Explore Book
Source: PhoCusWright Inc.
© 2011 PhoCusWright Inc. All Rights Reserved. 21
24. Leisure Destination Types (Incidence Among Travelers)*
57%
Destination that you selected independently 63%
(excluding all of the above) 61%
65%
Destination where you visited friends or family 55%
casually (not driven by a social event, such as a 45%
36%
reunion or wedding) 39%
23%
Destination where you attended a social 16%
event, such as a reunion or wedding 15%
24%
9%
Destination where you, friends, or family own a 14%
holiday home 11% U.S.
11%
9% France
Destination where you added a leisure stay as an 9%
extension of a business trip 10%
5% Germany
Destination where you have a timeshare or
8% U.K.
5%
fractional ownership of property 5%
5%
*Respondents were asked to count each trip once in the most relevant category
Base: U.S. travelers (N=2,755), French travelers (N=807), German travelers (N=793), U.K. travelers (N=783)
Source: Destination Unknown: How U.S. and European Travelers Decide Where to Go
© 2011 PhoCusWright Inc. All Rights Reserved. 24
26. Factors Affecting Destination Selection
70%
I had the specific destination in mind and planned this 54%
trip around it 59%
60%
16%
I chose between a number of destinations I had in mind 22%
24%
20%
5%
I had some destinations in mind but considered new 3%
options as I began researching and planning 2%
7%
3%
I had no specific destinations in mind until I started 11%
researching and planning 6%
5%
I hadn't been thinking about taking this trip, but saw a
3% U.S.
8%
good deal for this destination and decided to book it 6% France
5%
Germany
3% U.K.
Other 3%
2%
3%
Base: Travelers who have selected a destination independently: U.S. travelers (1,569), French travelers (N=507), German travelers (N=477), U.K. travelers (N=510)
Source: Destination Unknown: How U.S. and European Travelers Decide Where to Go
© 2011 PhoCusWright Inc. All Rights Reserved. 26
27. A
B
© 2011 PhoCusWright Inc. All Rights Reserved. 27
37. âWhen was the last time somebody
used a travel agent instead of just
going online?â
39. And Travel Agencies Have Suffered
U.S. Online Leisure/Unmanaged Business Travel Penetration of
Total U.S. Travel Market and ARC-Accredited Agencies, 1999-2011
50%
35,000 Online Travel Agencies & Supplier Web Sites
45%
Accredited ARC agencies
30,000 40%
35%
25,000
30%
20,000 25%
20%
15,000
15%
10,000
10%
5,000 5%
0%
01999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Sources: PhoCusWright Inc. and ARC
© 2011 PhoCusWright Inc. All Rights Reserved. 39
40. Travel Agentsâ Exaggerated Demise
Total U.S. Travel Market by Channel, 2008-2012
Source: PhoCusWrightâs U.S. Online Travel Overview 10th Edition, November 2010
© 2011 PhoCusWright Inc. All Rights Reserved. 40
41. Travel Agentsâ Exaggerated Demise
Total U.S. Travel Market by Channel, 2008-2012 (US$B)
Source: PhoCusWrightâs U.S. Online Travel Overview 10th Edition, November 2010
© 2011 PhoCusWright Inc. All Rights Reserved. 41
42. Yesterdayâs travel agent
Order taker Air was the asset
General purpose Change averse
Transactional
© 2011 PhoCusWright Inc. All Rights Reserved. 42
43. Todayâs travel agent
Expertise, relationships,
Consultative service are the asset
Specialized Adaptive
Traveler Advocate
© 2011 PhoCusWright Inc. All Rights Reserved. 43
44. The âConceptualâ Travel Distribution Chain
Supplier
Air, hotel, car rental
Wholesaler
Retailer
© 2011 PhoCusWright Inc. All Rights Reserved. 44
45. The Convoluted Reality of âTraditionalâ Agency Distribution
âPreferredâ
Supplier HBAs
Airline
Host
Hotel
Agencies
Car rental RSAs
Cruise line
Tour operator
Consortia/
Franchise
© 2011 PhoCusWright Inc. All Rights Reserved. 45
47. OTAs & Supplier Pressure on the Demand
Direct leisure travel agency Generation
landscape
© 2011 PhoCusWright Inc. All Rights Reserved. 47
48. But Travel Agents Still Have Significant Market Share
Total U.S. Travel Market* & Travel Agency** Sales & Share, 2010 (US$B)
32% of all
travel sales
in 2010
* Total travel market: passenger/ticket/room revenue of airlines, hotels, car rental, tour operator, cruise and rail.
** Travel agency refers to traditional agencies (TMC, brick and mortar, home-based) and excludes online agencies.
Source: PhoCusWright Inc.
© 2011 PhoCusWright Inc. All Rights Reserved. 48
49. Leisure Agencies Have Focused on Higher-Margin
Complex Leisure
Travel Agency Leisure Sales by Component Type, 2010
Source: PhoCusWright Inc.
© 2011 PhoCusWright Inc. All Rights Reserved. 49
51. There Are a Lot Fewer of TheseâŠ
© 2011 PhoCusWright Inc. All Rights Reserved. 51
52. But a Lot More of TheseâŠ
© 2011 PhoCusWright Inc. All Rights Reserved. 52
53. Agencies in 2006: Agencies in 2009:
c.24,000 c.20,600
General
Purpose Corporate &
24% General
Purpose, 26%
Corporate
7%
Leisure Leisure, 74%
69%
Corporate, âGPâ not examined
in this study, but most
Agency Type Definitions:
Leisure: At least 70% of volume is leisure
contraction expected within
Corporate: At least 60% of volume is managed corporate travel âgeneral purpose agenciesâ
Source: PhoCusWright Inc.
© 2011 PhoCusWright Inc. All Rights Reserved. 53
54. Agency Population Contracts Faster Than the
Home-Based Population Grows
Agent Population Shift by Type, 2006 & 2009 (000s)
2006 2009
111
106
80
72
31 34
Agent Population RSAs HBAs
Note: RSAs include leisure and corporate, full-time and part-time employees
Source: PhoCusWright Inc.
© 2011 PhoCusWright Inc. All Rights Reserved. 54
55. RSAs Are Far More Productive
Total Personal Sales Volume for All Travel Products by
Agent Type
Retail storefront Home-based
30% 33%
$250k+
<$250K
67%
70%
Note: Q20. Please check the volume range that best represents the gross sales volume (the total value) you personally
expect to sell in 2009, including all travel (leisure and corporate, cruise and land-based vacations, etc). Select only one.
(n=917)
Source: PhoCusWright Inc.
© 2011 PhoCusWright Inc. All Rights Reserved. 55
56. If You Provide a Service, Why Not Charge for It?
Percentage of Leisure Agents That Charge Fees
Retail storefront 82%
Home-based 45%
Note: Q17. Do you charge service fees to your clients? (n=917)
Source: PhoCusWright Inc.
© 2011 PhoCusWright Inc. All Rights Reserved. 56
57. Characteristics of Agency Organizations
(PhoCusWright subjective assessment)
Franchise/Club
AAA
CruiseOne
TravelLeaders
Consortia
Production Ensemble
Volume Independent Signature
HBAs Vacation.com
(per capita) Host
Virtuoso
Agencies
Avoya
Nexion
Hosted
HBAs
Unorganized Organized
Source: PhoCusWright Inc.
© 2011 PhoCusWright Inc. All Rights Reserved. 57
58. Characteristics of Agency Organizations
Franchise/Club
AAA
CruiseOne
TravelLeaders
Consortia
Production Ensemble
Volume Independent Signature
HBAs Vacation.com
(per capita) Host
Virtuoso
Agencies
Avoya
Nexion
Hosted
HBAs
Unorganized Organized
Source: PhoCusWright Inc.
© 2011 PhoCusWright Inc. All Rights Reserved. 58
59. Vacation.com Is Most Common, but Lots of
Fragmentation
Consortia, Franchise & Host Agency Affiliation
RSAs HBAs
Vacation.com 23% Other 57%
Other 20%
Vacation.com 38%
Virtuoso 16%
Nexion 11%
AAA 14%
American Express 8%
American Express 9%
AAA 6%
TravelSavers 8%
Virtuoso 6%
Ensemble 8%
Cruise Planners 5%
Signature 8%
TravelSavers 5%
Travel Leaders 7%
Note: Q22a. Please tell us to which of the following you belong: Select all that apply.(n=384/533)
Source: PhoCusWright Inc.
© 2011 PhoCusWright Inc. All Rights Reserved. 59
60. For Leisure Agents, These Days Should Be Coming to an
EndâŠ
© 2011 PhoCusWright Inc. All Rights Reserved. 60
61. Travel Agents Are Expecting â and Expected â to Shop
and Book Online
© 2011 PhoCusWright Inc. All Rights Reserved. 61
68. Mobile Travel Applications for Leisure Travel
Explore
destinations, view
sample itineraries
Dream
Share experiences Plan day-by-day
while traveling activities
Share Plan
Navigate location and Book alternatives during
explore surroundings. service disruptions and
Explore cultures and Explore Book ancillary services such as
historical sites based on hotels, restaurants, and
your preferences ground transportation
Source: PhoCusWright Inc.
© 2011 PhoCusWright Inc. All Rights Reserved. 68
69. Travel-Related Mobile Phone Activities (U.S.)
View maps/get directions online 35% 14% 51%
Research local activities such as restaurants and shows
28% 16% 56%
online
Research travel products such as hotel rooms or flights
25% 14% 61%
online
Reserve/purchase local activities such as restaurants
21% 17% 62%
and show tickets online
Check-in for flight, hotel, train, or car rental 20% 22% 58%
Reserve/purchase travel products such as hotel rooms
19% 16% 64%
or flights online
Make online changes to existing travel reservations 17% 18% 65%
Use as a boarding pass or ticket for flight or train 16% 20% 64%
Likely to do and have in the past Likely to do and have not in the past Not likely to do in next 12 mos.
Note: Totals may not add to 100% due to rounding
Source: PhoCusWright's Traveler Technology Survey 2010
© 2011 PhoCusWright Inc. All Rights Reserved. 69
76. Sizing Social Travel
âą More than two in three travelers cite traveler reviews (either on OTAs or
traveler review websites) as influential when planning leisure travel
âą More than four in ten travelers say comments from people within their social
networks are influential in the travel planning process
âą Facebook referred more than 15.2 million visitors to hotel websites in 2010, a
35% increase from 2009 and more than 400% jump from 2.1 million in 2008
âą Of those 15.2 million referrals from Facebook to hotel websites, some
568,000 resulted in a booking, representing a conversion rate of 4% and a
jump of 562% in referred bookers from 2008
© 2011 PhoCusWright Inc. All Rights Reserved. 76
Editor's Notes INTERHOMEATOUT FRANCEPIERRE ET VACANCESWER INTERHOMEATOUT FRANCEPIERRE ET VACANCESWER