Travel Industry Insights

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This Travel Industry Insights paper provides a high level overview of the US Traveler Landscape. Featured insights include search demand for airfare and hotel queries, trends in the use of travel loyalty programs and online travel agents (OTAs) and the role of of video content and mobile devices in travel research. View additional Levelwing insights and case studies: http://ow.ly/eux5Z

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Travel Industry Insights

  1. 1. TRAVEL INDUSTRYPROFILE + LANDSCAPE
  2. 2. 2WHY DO I CARE?Glad you asked…In this report you will find a high-level overview of the travel landscape. It is important that we keep a pulse on theindustry and CONSUMER BEHAVIORS in order to identify OPPORTUNITIES that transform our businesses.At Levelwing, we specialize in analyzing the paths that contribute to meaningful BUSINESS OUTCOMES. These pathsare illuminated through the analysis of data collected via website analytics, customer relationship databases,consumer research, phone call logs and even recruitment application databases (yes, we actually enjoy workingwith the HR folks in addition to the marketing teams).Our team of analysts, statisticians and strategists are obsessed with data and more importantly are experts atTRANSLATING THE DATA INTO A MEANINGFUL STORY that has real business applications and implications.Please enjoy some of the insights contained within.
  3. 3. 3TRAVEL TRENDSCATEGORY OVERVIEW
  4. 4. 4TRAVEL INDUSTRY TRENDS 56% of all dollars wil U.S. corporate trav rs would like to 64% of travele or luxury hotel l be spent online in 2 el 013 y at an upscale right “U.S. Cor sta Technolog porate Tr avel y Trends” Report: Market Siz if the price is 012 , August 2 , PhoCusW in right, May g and 2012 eler”, Google “ The 2012 Trav 83% of leisure travelers a nd hotel queries 76% of business travelers Almost 1 in 4 ome from a m obile device plan online c “The 2012 Traveler”, G st 2012 oogle, August 2012 f Trave l”, Google, Augu “The 5 Stages oNot only are travelers planning online and researching from their mobile devices, they are seeking luxury andupscale hotels at a value. Offering a special or discount on upscale amenities may entice these luxury-seeking,price-sensitive consumers to convert.
  5. 5. 5ENROLLMENT IN LOYALTY PROGRAMS 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Air Hotel Car Online Travel Agency None Leisure Travelers Business Travelers Affluent TravelersAffluent Travelers are most likely to be enrolled in Air, Hotel, and Car loyalty programs, while Business Travelersare most likely to be enrolled in a loyalty program for online travel agencies. Leisure Travelers are least likely tobe enrolled in a loyalty program for any aspect of travel. Knowing which traveler segment is most likely to enrollin a particular loyalty program can help fuel strategies and initiatives for reaching these traveler segments.Source: “The 2012 Traveler”, Google, August 2012
  6. 6. 6HIGHEST Q1 2012 AIRFARE – US AIRPORTS AVERAGE DOMESTIC AIRPORT ITINERARY FARES CINCINNATI, OH $526.25 MEMPHIS, TN $519.97 HOUSTON BUSH, TX $504.58 HUNTSVILLE, AL $502.80 WASHINGTON DULLES $485.35As average airfare prices continue to increase so too do the search queries for cheap tickets and variationsthereof. Geo-targeting metropolitan areas surrounding airports with paid search ads can provide anopportunity for travel industry sites to capture these price-conscious travelers.Source: Bureau of Transportation Statistics, Q1 2012
  7. 7. 7TOP DESTINATIONPOLL: Which destination wasthe most popular among US-based Google searchersbetween September andDecember, 2011?a)  New Yorkb)  Las Vegasc)  Hawaiid)  Mexicoe)  Oak Ridge, TN “The 2012 Traveler”, Google, August 2012Market level search insights can help fuel strategies in which there is high demand (and we want to leveragethis) or where there is low demand (perhaps in a market we are trying to dominate).
  8. 8. 8TRAVEL INDUSTRY SEARCH DEMAND KEYWORD US MONTHLY (APPROXIMATE) SEARCHES VACATION SPOT 165,000 BOOK A FLIGHT 110,000 PLAN A TRIP 110,000 BOOK A HOTEL 90,500Collectively, the travel industry has a substantial amount of monthly searches within the United States. Onlinesearches are often indicative of offline demand. This emphasizes the need for visibility within search enginesand search engine results pages in order to capture this traffic.Source: Google
  9. 9. 9‘BOOK A FLIGHT’ SEARCH ENGINE RESULTSOnline booking sites represent a majority of searchengine results page real estate for ‘book a flight’Airlines appearing in PAID SEARCH PLACEMENTS for‘book a flight’: •  American Airlines •  DeltaAirlines appearing on Page 1 in ORGANIC SEARCHRESULTS for ‘book a flight’: •  Delta •  American Airlines •  United Airlines •  Southwest *paid placements are paid advertising available through search engines, organic search results are the listings that are free and do not require a hard media investment
  10. 10. 10‘BOOK A HOTEL’ SEARCH ENGINE RESULTSSimilarly, online booking sites also represent amajority of search engine results page realestate for ‘book a hotel’Hotels appearing in PAID SEARCH PLACEMENTSfor ‘book a hotel’: •  Taj Hotels •  MarriottHotels appearing on Page 1 in ORGANICSEARCH RESULTS for ‘book a hotel’: •  Radisson *paid placements are paid advertising available through search engines, organic search results are the listings that are free and do not require a hard media investment
  11. 11. 11TRAVELERSRESEARCH BEHAVIOR
  12. 12. 12ONLINE ACTIVITES Researched an upcoming trip 62% Sourced initial trip idea 45% Read reviews from other travelers 43% Watched travel video Read travel related blog Posted travel reviews Uploaded video related to past travel Commented on travel reviews Commented on travel related blog 0% 10% 20% 30% 40% 50% 60% 70%Top online activities for US travelers are researching upcoming trips, brainstorming trip ideas, and readingreviews by other travelers. These online search habits indicate the need for visibility within search enginesand search engine results pages during this critical research period.Source: Mediabistro Data
  13. 13. 13VIDEO AS RESEARCH SOURCE When thinking about taking a trip When deciding When choosing a on which website 66% destination to book 34% 64% When choosing When looking for ideas of activities destination to do at a accommodations destination 57% 62%Travelers watch online videos throughout their entire travel planning process. Creating a YouTube channel orincorporating video on your website surrounding these consumer needs (amenity and attraction information)may help influence consumers to book with your site or plan a trip to your city.Source: “The 2012 Traveler”, Google, August 2012
  14. 14. 14TYPES OF VIDEOS WATCHED Videos from hotels, airlines, cruises, tours, etc. 62% Trip reviews from experts Videos from travel-related channels Trip reviews from people like me Videos made by people like me 0% 10% 20% 30% 40% 50% 60% 70%Travelers using video for research watch a mix of user-generated content and professionally-made videos.Including both internal marketing videos and customer-made videos on your websites will provide these travelresearchers with the content they are looking for when they come to your site, preventing them from seekingthis content elsewhere on the web.Source: “The 2012 Traveler”, Google, August 2012
  15. 15. 15SMARTPHONE USAGE More than 110 MILLION Americans own a smartphoneAs smartphone ownership increases so does the necessity of having a mobile website for consumers usingthese devices for travel research and booking.Source: comScore, June 2012
  16. 16. 16MOBILE RESEARCHING + BOOKING 36.4 15.8 MILLION MILLION travel travel researchers bookersU.S. smartphone travel researchers represent 30.4% of online travel researchers in 2012, while U.S.smartphone travel bookers only represent 16.1% of online travel bookers in 2012, suggesting most travelersstill prefer making travel-related purchases through more traditional means such as a desktop or telephone.Source: eMarketer Data, August 2012
  17. 17. 17MOBILE AS RESEARCH SOURCE FOR AIR Checked airfare prices 26% Looked up airline phone number 25% Looked at flight schedules 25% Checked flight status 25% Looked up airport information Checked in for a flight Received price alerts for flights Booked a flight Received SMS alerts for a flight status Tracked the status of a checked bag Cancelled a flight 0% 5% 10% 15% 20% 25% 30%Most travelers using a mobile device for research want to check prices, find contact information, view flightschedules, and check the status of a flight. Ensuring these elements are prominent and easy to use on yourmobile site will provide a good user experience for mobile website visitors.Source: comScore Data, April 2012
  18. 18. 18MOBILE AS RESEARCH SOURCE FOR HOTEL Looked up hotel address/directions 29% Looked up/ researched attractions/ things to do at my destination/ near my hotel Looked up/ researched places to eat at my destination/ near my hotel Read a hotel review Compared hotel prices + availability Booked a hotel room Received price alerts for hotels Looked up/ researched ground transportation at my destination/ near my hotel Cancelled a hotel reservation 0% 5% 10% 15% 20% 25% 30% 35%Most travelers using a mobile device for research are looking for the hotel address and directions to getthere, followed by researching attractions and places to eat near their hotel. Including directions, nearbythings to do, and favorite local dining spots on your mobile site will fulfill the needs of these travel researchers.Source: comScore Data, April 2012
  19. 19. 19LIKE WHAT YOU SEE? WANT TO SEE MORE?This is just the beginning of what we can tap into, imagine what we could do with the data you have internally…At Levelwing, we specialize in interpreting your data and providing you with applications (and not just graphs) thatcan impact your MARKETING, MERCHANDISING, INVENTORY or even TALENT RECRUITMENT. We help companiesutilize data to OPERATE WITH GREATER CLARITY + PROFITABILITY.Bottom line, we move your business forward by helping you make sense of your data so that you can ACHIEVEWHAT COULD BE.For additional information, please contact:LUKE FROSTBusiness Development Analystlfrost@levelwing.com1+843.647.7314
  20. 20. 20THANK YOUWant to learn more about Levelwing? Just keep reading.
  21. 21. 21WHO IS LEVELWING?
  22. 22. 22OUR BELIEFS The Right Data Changes Everything Marketing Budgets Should Be Smaller, Not Larger Accountability is Essential Success Should Pay For Itself Leverage Existing Demand First
  23. 23. 23THE RIGHT DATA CHANGES EVERYTHINGWe use data to illuminate all facets of your business. You’llsell more and enjoy greater cost-efficiency.More importantly, you’ll operate your business morePROFITABLY.
  24. 24. 24MARKETING BUDGETS SHOULD BESMALLER, NOT LARGERBigger is not necessarily better.We believe by holding media and ideas accountable throughadvanced analytics, you can do MORE with LESS.
  25. 25. 25ACCOUNTABILITY IS ESSENTIALWe measure and create insights based on what’s important,not just metrics that are easy to calculate.We create real ACCOUNTABILITY.
  26. 26. 26SUCCESS SHOULD PAY FOR ITSELF 26An understanding of Return on Investment leads tomarketing efforts that are more than just an expense lineitem.We build SELF-FUNDING initiatives.
  27. 27. 27LEVERAGE EXISTING DEMAND FIRST AWARENESS INTERESTA demand-driven strategy creates media efficiency andgreater profitability by focusing on existing IN-MARKETPURCHASERS. CONSIDERATION PURCHASE
  28. 28. 28INTELLIGENCE IS AT OUR CORE 28Our BUSINESS INTELLIGENCE SOLUTIONS help organizationsunderstand consumer brand perception, gain competitiveinformation and uncover real opportunities to improveorganizational and operational efficiencies.WE BELIEVE in informed, evidence-based decision-making,only made possible by complex and comprehensive datacollection + analysis.Competitive Insights | Data Enrichment | Operational Efficiency | Price SensitivityAnalysis | ROI Analysis | Analytics Solutions | Data Knowledge Management
  29. 29. 29WE ARE LEVELWINGGLOBAL REACH We currently serve clients throughout NorthAmerica, Europe, China and JapanUNIQUE APPROACH Levelwing is the leader in businessintelligence and marketing solutions with data mining + analytics atthe coreFULLY INTEGRATED We employ a matrix organization of marketers,analytics design experts, statisticians, researchers and creativesMEASURED SUCCESS Levelwing has experienced 10 consecutiveyears of growth with industry leading client satisfaction results
  30. 30. 30SOME OF OUR PARTNERSSome of the most innovative and strategic minds in the industry - NovartisSome of the most sophisticated things I’ve seen being done with analytics and ROI measurement - Adobe

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