The Emerging Online Travel Marketplace
in China, India and Brazil
October 20, 2010 PhoCusWright
ETC e-Business Academy
Bel...
© 2009 PhoCusWright Inc. All Rights Reserved.
2
Country China India Brazil USA UK
Population* 1,325 1,149 192 307 62
Inter...
© 2009 PhoCusWright Inc. All Rights Reserved.
3
Source: Worldbank, World Development Indicators, October 2010
Internet Use...
© 2009 PhoCusWright Inc. All Rights Reserved.
4
Asia Pacific Internet vs. Mobile Subscriber Base (M) and
Penetration (%) 2...
© 2009 PhoCusWright Inc. All Rights Reserved.
5
ÊÚ
#
#
#
#
Beijing
Shanghai
Xi’an
Chengdu
Guangzhou
ÊÚ
#
#
#
#
Beijing
Sha...
© 2009 PhoCusWright Inc. All Rights Reserved.
6
• First Chinese consumer travel behavior study
• Qualitative research coup...
© 2009 PhoCusWright Inc. All Rights Reserved.
7
China Has the Most Internet Users in the World – More
Than 300 Million Peo...
© 2009 PhoCusWright Inc. All Rights Reserved.
8
China Has the Most Wireless Subscribers in the World
180 214
263
312 350 3...
© 2009 PhoCusWright Inc. All Rights Reserved.
9
Chinese are extremely active in social media:
• Blogs: 221 million
• BBS: ...
© 2009 PhoCusWright Inc. All Rights Reserved.
10
Respondents Who Travel Internationally are a Small
Portion of the Total S...
© 2009 PhoCusWright Inc. All Rights Reserved.
11
Southeast Asia is Most Popular Destination for Outbound
Holiday Travel in...
© 2009 PhoCusWright Inc. All Rights Reserved.
12
•International travel is state-regulated. The Chinese government
categori...
© 2009 PhoCusWright Inc. All Rights Reserved.
13
Internet Users in China, US, Brazil, India and UK
© 2009 PhoCusWright Inc. All Rights Reserved.
14
Use of Offline Methods to Search for Travel Information
Continues to Exce...
© 2009 PhoCusWright Inc. All Rights Reserved.
15
More Younger People Used Online Methods for Search,
Showing Promise for O...
© 2009 PhoCusWright Inc. All Rights Reserved.
16
Ctrip is Dominant in Travel Search, While Baidu is Way
Ahead of Google bu...
© 2009 PhoCusWright Inc. All Rights Reserved.
17
About One-fifth Of Respondents Looked for Online
Travel Reviews; A Consid...
© 2009 PhoCusWright Inc. All Rights Reserved.
18
Travel Reviews Have a Strong Influence Over Decision to
Purchase Travel C...
© 2009 PhoCusWright Inc. All Rights Reserved.
19
Among All Factors Affecting Offline Travel Purchases for Air and
Hotel, W...
© 2009 PhoCusWright Inc. All Rights Reserved.
20
In China There is a Huge Difference in Travel Planning
and Travel Buying ...
© 2009 PhoCusWright Inc. All Rights Reserved.
21
Frequency of Trips Differ by Region
3,32
2,6
2,37
5,18
3,58
2,92
0 2 4 6
...
© 2009 PhoCusWright Inc. All Rights Reserved.
22
More Respondents in Guangzhou Used Online Methods
to Search for Travel In...
© 2009 PhoCusWright Inc. All Rights Reserved.
23
Tudou and YouKu
© 2009 PhoCusWright Inc. All Rights Reserved.
24
Taobao is the Biggest Player in the China C2C
Marketplace; Has a Market S...
© 2009 PhoCusWright Inc. All Rights Reserved.
25
SEO/SEM in China: eLong Keyword is Hijacked by Ctrip
© 2009 PhoCusWright Inc. All Rights Reserved.
26
Meta Search in China
© 2009 PhoCusWright Inc. All Rights Reserved.
27
China Travel Marketplace – Key Findings
• The China travel market is huge...
© 2009 PhoCusWright Inc. All Rights Reserved.
28
© 2009 PhoCusWright Inc. All Rights Reserved.
29
Key Characteristics of Two Emerging Markets in Asia –
China and India
Sou...
© 2009 PhoCusWright Inc. All Rights Reserved.
30
Key Characteristics of Two Emerging Markets in Asia –
China and India
Cha...
© 2009 PhoCusWright Inc. All Rights Reserved.
31
© 2009 PhoCusWright Inc. All Rights Reserved.
32
Methodology
First Indian consumer travel behavior study
Multi-prong appro...
© 2009 PhoCusWright Inc. All Rights Reserved.
33
Internet and Broadband Subscribers in India
© 2009 PhoCusWright Inc. All Rights Reserved.
34
Teledensity in India, 2006 - 2010
© 2009 PhoCusWright Inc. All Rights Reserved.
35
Social media a new phenomenon in India but taking off very fast.
• Orkut ...
© 2009 PhoCusWright Inc. All Rights Reserved.
36
Almost 4 in 10 Don’t Know How/Have Interest in Using
PCs or Internet
Top ...
© 2009 PhoCusWright Inc. All Rights Reserved.
37
Top International Destinations
% Trips Taken, by
Continent
0% 20% 40% 60%...
© 2009 PhoCusWright Inc. All Rights Reserved.
38
Indian Total and Online Leisure/Unmanaged Business
Travel Market (US$M) a...
© 2009 PhoCusWright Inc. All Rights Reserved.
39
Market Share by Channel
Increase in Online Agency Share at the Cost of Tr...
© 2009 PhoCusWright Inc. All Rights Reserved.
40
India Travel Marketplace – Key Findings
• The India travel market is huge...
© 2009 PhoCusWright Inc. All Rights Reserved.
41
© 2009 PhoCusWright Inc. All Rights Reserved.
42
Internet Users in Brazil
Source: World Bank, World Development Indicators...
© 2009 PhoCusWright Inc. All Rights Reserved.
43
Brazil Outbound Travel
International Travelers (9%)
Europe 32%
USA 14%
La...
© 2009 PhoCusWright Inc. All Rights Reserved.
44
2,2
1,8
2,4
3,1
3,5
0,3
0,5
0,9
1,4
2,0
17,2
16,4
19,5
21,9
23,6
0 5 10 1...
© 2009 PhoCusWright Inc. All Rights Reserved.
45
23%
77%
OTA vs Supplier Direct Shares (%), 2009
OTA
Supplier Direct
Sourc...
© 2009 PhoCusWright Inc. All Rights Reserved.
46
submarinoviagens.com.
br
40%
decolar.com.br
35%
Priceline/ Booking
6%
Exp...
© 2009 PhoCusWright Inc. All Rights Reserved.
47
Social media in Brazil is huge!
• (Australia and) Brazil are the top Soci...
© 2009 PhoCusWright Inc. All Rights Reserved.
48
© 2009 PhoCusWright Inc. All Rights Reserved.
49
Understanding this age
difference is critical for
European NTOs
© 2009 PhoCusWright Inc. All Rights Reserved.
50
So what are the Take Aways:
China….
India….
Brazil….
© 2009 PhoCusWright Inc. All Rights Reserved.
51
Thank You!
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Presentation cees bosselaar - phocus wright

  1. 1. The Emerging Online Travel Marketplace in China, India and Brazil October 20, 2010 PhoCusWright ETC e-Business Academy Belgrade October 20, 2010
  2. 2. © 2009 PhoCusWright Inc. All Rights Reserved. 2 Country China India Brazil USA UK Population* 1,325 1,149 192 307 62 Internet* 420 50 72 228 46 Internet % 32% 4% 38% 74% 74% Mobile* 770 410 177 286 70 Mobile % 58% 36% 92% 91% 129% Travel $62 B $16 B $20 B $236 B $55 B Book online $11 B $ 4 B $4 B $93 B $26 B Book online % 18% 25% 20% 40% 47% International % 9% 8% 9% 16% 46% * In millions Source: Worldbank, World Development Indicators, PhoCusWright, Nielsen. Figures are rounded. For comparison purpose only.
  3. 3. © 2009 PhoCusWright Inc. All Rights Reserved. 3 Source: Worldbank, World Development Indicators, October 2010 Internet Users in China, US, Brazil, India and UK
  4. 4. © 2009 PhoCusWright Inc. All Rights Reserved. 4 Asia Pacific Internet vs. Mobile Subscriber Base (M) and Penetration (%) 2Q 2009
  5. 5. © 2009 PhoCusWright Inc. All Rights Reserved. 5 ÊÚ # # # # Beijing Shanghai Xi’an Chengdu Guangzhou ÊÚ # # # # Beijing Shanghai Xi’an Chengdu Guangzhou Five Cities Were Selected to Represent Different Regions In China Beijing – North China Shanghai – East China Guangzhou – South China Chengdu – Southwest China Xi’an – Northwest China
  6. 6. © 2009 PhoCusWright Inc. All Rights Reserved. 6 • First Chinese consumer travel behavior study • Qualitative research coupled with quantitative research o Focus groups – 10 focus groups across key market segments o In-depth interviews – 15 in-depth interviews across key market segments o Quantitative survey – More than 2,000 respondents interviewed face-to-face across key market segments • Regional representation o Five cities selected: Beijing, Shanghai, Guangzhou, Chengdu and Xi’an, for representation of different regions in China • Comprehensive analysis Comprehensive Approach to Research
  7. 7. © 2009 PhoCusWright Inc. All Rights Reserved. 7 China Has the Most Internet Users in the World – More Than 300 Million People More than 84% of the Chinese population using Internet services have broadband access; this is 214 million subscribers. Source: China Internet Network Information Center Survey, July 2008 103 111 123 137 162 210 253 7,9% 8,5% 9,4% 10,5% 12,3% 16,0% 19,1% 5% 10% 15% 20% 0 100 200 300 jun-05 dec-05 jun-06 dec-06 jun-07 dec-07 jun-08 China Internet Penetration Internet Users in Mn Internet Penetration
  8. 8. © 2009 PhoCusWright Inc. All Rights Reserved. 8 China Has the Most Wireless Subscribers in the World 180 214 263 312 350 368 366 341145 206 270 335 393 461 547 641 0 100 200 300 400 500 600 700 2001 2002 2003 2004 2005 2006 2007 2008 China Telecom Growth – 2001-2010 (Millions) Wired Subscribers Wireless Subscribers Source: China Internet Network Information Center Survey, July 2008
  9. 9. © 2009 PhoCusWright Inc. All Rights Reserved. 9 Chinese are extremely active in social media: • Blogs: 221 million • BBS: 117 million users (Tianya, Xici) • Social Networks: 176 million users • However, the social media landscape shows different players: Facebook => Xiaonei LinkedIn => Wealink YouTube => Tudou Twitter => Fanfou Flickr => Yupoo • Facebook, Orkut and Twitter are blocked
  10. 10. © 2009 PhoCusWright Inc. All Rights Reserved. 10 Respondents Who Travel Internationally are a Small Portion of the Total Sample Holiday Trips by Destination Note: TB03: Of all of these holiday trips, how many were taken: Number of Respondents: N – 2057 Source: PhoCusWright’s China Consumer Travel Report 52% 100% 33% 9% 7% 14% 5% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Local Domestic Macau / Hong Kong International Any (1+) Frequent (3+)
  11. 11. © 2009 PhoCusWright Inc. All Rights Reserved. 11 Southeast Asia is Most Popular Destination for Outbound Holiday Travel in China Top 10 Travel Destinations – International Note: TB09: Please name up to 3 destinations (locally, domestically and/or internationally) you visited on holiday travel in the past 12 months. Number of Respondents: N – 195 Source: PhoCusWright’s China Consumer Travel Report 22% 20% 18% 9% 8% 6% 4% 4% 4% 3% Singapore Japan Thailand U.S. Malaysia U.K. Australia Canada France Korea
  12. 12. © 2009 PhoCusWright Inc. All Rights Reserved. 12 •International travel is state-regulated. The Chinese government categorizes international destinations • Travel to countries with an Approved Destination Status (ADS) requires fewer state agency approvals. •International travel must be purchased from government- approved offline travel agencies. Source: PhoCusWright’s China Consumer Travel Report
  13. 13. © 2009 PhoCusWright Inc. All Rights Reserved. 13 Internet Users in China, US, Brazil, India and UK
  14. 14. © 2009 PhoCusWright Inc. All Rights Reserved. 14 Use of Offline Methods to Search for Travel Information Continues to Exceed Online Methods 35% 53% 35% 70% 19% 50% 14% 59% 0% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% Online Offline Air Tickets Hotels Travel Packages Train Rented Car Note: HP02: When you planned or gathered information for your holiday travel in the last 12 months, how did you research any of the following travel components? Number of Respondents: N – 2057 Source: PhoCusWright’s China Consumer Travel Report
  15. 15. © 2009 PhoCusWright Inc. All Rights Reserved. 15 More Younger People Used Online Methods for Search, Showing Promise for Online Travel 45% 43% 34% 15% 48% 42% 34% 15% 25% 22% 19% 8% 19% 17% 14% 7% 0% 10% 20% 30% 40% 50% 60% Younger DINK Family Empty Nester Air Tickets Hotels Travel Packages Train Note: HP02: When you planned or gathered information for your holiday travel in the last 12 months, how did you research any of the following travel components? Number of Respondents: N – 2057; Young – 415, DINK – 610, Family – 596, Empty Nester – 436 Source: PhoCusWright’s China Consumer Travel Report
  16. 16. © 2009 PhoCusWright Inc. All Rights Reserved. 16 Ctrip is Dominant in Travel Search, While Baidu is Way Ahead of Google but 7Days Inn is Third for Hotel Note: HP05: What were the top three Web sites you used the most for investigating air tickets and/or hotel/guesthouse accommodations for your holiday travels in the last 12 months? Number of Respondents: Air - 714, Hotel - 724 Source: PhoCusWright’s China Consumer Travel Report 4% 5% 6% 8% 9% 14% 18% 27% 35% 41% cs-air.com sina.com.cn mangocity.com kuxun.cn qunar.com elong.com google.cn airchina.com.cn ctrip.com baidu.com 3% 4% 6% 6% 6% 15% 16% 17% 30% 45% qunar.com sohu.com homeinns.com kuxun.cn sina.com.cn elong.com google.cn 7daysinn.cn ctrip.com baidu.com Air Hotels
  17. 17. © 2009 PhoCusWright Inc. All Rights Reserved. 17 About One-fifth Of Respondents Looked for Online Travel Reviews; A Considerable Share As Travel Reviews Are Relatively New To Chinese Travel Marketplace Yes 19% No 81% Note: HBB21: Do you usually look for any online travel reviews or experience-sharing when deciding to purchase air tickets and accommodations for holiday travel? Number of Respondents: N – 2057 Source: PhoCusWright’s China Consumer Travel Report
  18. 18. © 2009 PhoCusWright Inc. All Rights Reserved. 18 Travel Reviews Have a Strong Influence Over Decision to Purchase Travel Components Influence of Travel Reviews Not strong at all 2% Not very strong 11% Somewhat strong 64% Very strong 23% Note: HBB23: How much influence do you think the travel reviews have over your decision when purchasing travel components? Number of Respondents: N – 391 Source: PhoCusWright’s China Consumer Travel Report
  19. 19. © 2009 PhoCusWright Inc. All Rights Reserved. 19 Among All Factors Affecting Offline Travel Purchases for Air and Hotel, Word Of Mouth Had Most Importance; This Underscores the Need to Build Efficient Social Networking Platforms 53% 70% 47% 30% Air Hotel Travel Buying by Channel Online Offline 25% 46% Air Hotel Importance of Word of Mouth Source: PhoCusWright’s China Consumer Travel Report
  20. 20. © 2009 PhoCusWright Inc. All Rights Reserved. 20 In China There is a Huge Difference in Travel Planning and Travel Buying Behavior 9% 31% 28% 19% 12% 2% 12% 21% 28% 36% 0% 10% 20% 30% 40% 1-3 Days 4-7 Days 8-14 Days 15-28 Days 29 Days and more Travel Planning Lead Time China Shanghai Note: HP07: What was the lead time you typically took to plan and search for travel? Source: PhoCusWright’s China Consumer Travel Report
  21. 21. © 2009 PhoCusWright Inc. All Rights Reserved. 21 Frequency of Trips Differ by Region 3,32 2,6 2,37 5,18 3,58 2,92 0 2 4 6 Total Beijing Shanghai Guangzhou Chengdu Xi'an Mean # of Trips Note: TB01: How many holiday trips did you take in the last 12 months? Note: Totals may not add to 100% due to rounding Number of Respondents: N - 2057: Beijing - 405, Shanghai - 420, Guangzhou - 410, Chengdu - 408, Xi’an - 414 Source: PhoCusWright’s China Consumer Travel Report Guangzhou = Travelholics 2% 49% 71% 1% 11% 48% 48% 29% 99% 89% 52% 0% 20% 40% 60% 80% 100% Frequent (3+) 2 Trips 1 Trip
  22. 22. © 2009 PhoCusWright Inc. All Rights Reserved. 22 More Respondents in Guangzhou Used Online Methods to Search for Travel Information Than Other Cities 37% 30% 54% 45% 8% 44% 23% 65% 41% 4% 26% 19% 27% 19% 2% 21% 20% 12% 16% 3% 0% 10% 20% 30% 40% 50% 60% 70% Beijing Shanghai Guangzhou Chengdu Xi'an Air Tickets Hotels Travel Packages Train Note: HP02: When you planned or gathered information for your holiday travel in the last 12 months, how did you research any of the following travel components? Number of Respondents: N – 2057; Beijing - 405, Shanghai - 420, Guangzhou - 410, Chengdu - 408, Xi’an - 414 Source: PhoCusWright’s China Consumer Travel Report
  23. 23. © 2009 PhoCusWright Inc. All Rights Reserved. 23 Tudou and YouKu
  24. 24. © 2009 PhoCusWright Inc. All Rights Reserved. 24 Taobao is the Biggest Player in the China C2C Marketplace; Has a Market Share of Over 80% Taobao is stepping into travel distribution, with airlines like Hainan Airlines opening shops on the online retail site. Other players in the C2C space are Dangdang.com and Joyo.com, which is owned by Amazon. Source: China Internet Network Information Center Survey, July 2008
  25. 25. © 2009 PhoCusWright Inc. All Rights Reserved. 25 SEO/SEM in China: eLong Keyword is Hijacked by Ctrip
  26. 26. © 2009 PhoCusWright Inc. All Rights Reserved. 26 Meta Search in China
  27. 27. © 2009 PhoCusWright Inc. All Rights Reserved. 27 China Travel Marketplace – Key Findings • The China travel market is huge! However… • International travel is state-regulated. In addition, international travel must be purchased from government-approved offline travel agencies. • International travel only counts for 9%, mostly to Asian destinations . UK gets 6% of these international travelers. • 80% of travel is sold by traditional (offline) travel agencies • Most travel searches are offline. Online bookings for international travel = 0% • Air segment dominated by three state owned carriers (Air China, China Eastern Airlines, China Southern Airlines). • Social Media is huge and growing but very different than in the West
  28. 28. © 2009 PhoCusWright Inc. All Rights Reserved. 28
  29. 29. © 2009 PhoCusWright Inc. All Rights Reserved. 29 Key Characteristics of Two Emerging Markets in Asia – China and India Source: PhoCusWright’s China Consumer Travel Report Characteristic China India Airline Market Highly Regulated Completely Deregulated Lodging Market Deregulated Deregulated but Construction Highly Licensed Airport Infrastructure World Class; Highly Developed Poor; Developing Road Infrastructure Excellent Poor Broadband Penetration High Very Low Credit Card Penetration Good Poor
  30. 30. © 2009 PhoCusWright Inc. All Rights Reserved. 30 Key Characteristics of Two Emerging Markets in Asia – China and India Characteristic China India Global Distribution Systems Monopoly All Global GDSs Are Operational in India Airline Ownership Government Private Travel Retailing Chain Regulated Deregulated LCC Airline Penetration Very Low; Less Than 2% High; More Than 50% Touchless Transactions – Air Low; Around 5% Very High; Around 80% Travel Management Culture and Practices Chinese Global Source: PhoCusWright’s China Consumer Travel Report
  31. 31. © 2009 PhoCusWright Inc. All Rights Reserved. 31
  32. 32. © 2009 PhoCusWright Inc. All Rights Reserved. 32 Methodology First Indian consumer travel behavior study Multi-prong approach • Telephone interviews • In-person interviews • Email surveys September – November 2007 • PCWI-developed survey with critical client input Total sample = 2,524 Participant criteria • 18+ adults • Primary earner in SEC A1, A2 or B1 classifications • Have traveled on holiday by A/C train, air or car/van in the past 12 months Quotas: • Past 30 day email/Internet vs. non email/Internet user (48%/52%) • Domestic vs. International travel (78%/22%)
  33. 33. © 2009 PhoCusWright Inc. All Rights Reserved. 33 Internet and Broadband Subscribers in India
  34. 34. © 2009 PhoCusWright Inc. All Rights Reserved. 34 Teledensity in India, 2006 - 2010
  35. 35. © 2009 PhoCusWright Inc. All Rights Reserved. 35 Social media a new phenomenon in India but taking off very fast. • Orkut and Facebook: 20 million users • Orkut and Facebook: 90% of total social media sites • 70% of internet users visited social Networks sites • 5% of all users on YouTube are from India (globally ranked fourth) • Social Media will be mobile based (except perhaps in urban areas) • the number of mobile social network users in India is expected to reach around 72 million by 2014 • Introduction of 3G, “cheap” smartphones, innovative data tariff pans, reduction in data charges
  36. 36. © 2009 PhoCusWright Inc. All Rights Reserved. 36 Almost 4 in 10 Don’t Know How/Have Interest in Using PCs or Internet Top 3 Factors* Preventing (More) Online Purchasing Base: Holiday travelers Note: (HBB10) What will prevent you from purchasing your holiday travel online or online more often? *Reflects “Total Mentions” Source: India Travel Marketplace: Technology and Transformation Not Interested/No Use for Do Not Trust/Not Reliable/Secure Don’t Know How to Use Internet/PC 6% 37% 2% 3% 9% 5% 6% 27% 12% Total Lack Facilities (Not Connected/Do Not Own Computer/Credit Card) Too Much Time Required/Difficult/ Inconvenient to Use Easier To Do Myself/Through Others Prices Too High/Not Able Negotiate Misc. Don’t Know/Refused
  37. 37. © 2009 PhoCusWright Inc. All Rights Reserved. 37 Top International Destinations % Trips Taken, by Continent 0% 20% 40% 60% 80% Africa Asia Europe N. America Oceania % Trips Taken, by Country/City Singapore (23%) Dubai, Malaysia (each 11%) England/UK/London (9%) Bangkok (5%) Nepal (5%) Europe, Australia (each 4%) Hong Kong, New York, Thailand (each 2%) International Destinations Visited (Past Year) (TOTAL MENTIONS) Base: International Holiday Traveler Note (TB6-1) In the past 12 months, what three countries or destinations have you visited/traveled to on holiday? Source: India Travel Marketplace: Technology and Transformation
  38. 38. © 2009 PhoCusWright Inc. All Rights Reserved. 38 Indian Total and Online Leisure/Unmanaged Business Travel Market (US$M) and Online Share (%), 2008-2012
  39. 39. © 2009 PhoCusWright Inc. All Rights Reserved. 39 Market Share by Channel Increase in Online Agency Share at the Cost of Traditional Agencies 2010 10% 29% 61% Source: PhoCusWright Inc. 2007 58% 27% 15% Supplier OTA TTA 2007 58% 27% 15% Supplier OTA TTA
  40. 40. © 2009 PhoCusWright Inc. All Rights Reserved. 40 India Travel Marketplace – Key Findings • The India travel market is huge! • Chaotic growth, not regulated • International travel only counts for 9%, mostly to Asian destinations . But no limit to growth (no government-imposed limits as in China) • 25% of travel is sold online, grows by 30% annually • Social Media is huge and growing but … low internet penetration. Social media will likely be Mobile based
  41. 41. © 2009 PhoCusWright Inc. All Rights Reserved. 41
  42. 42. © 2009 PhoCusWright Inc. All Rights Reserved. 42 Internet Users in Brazil Source: World Bank, World Development Indicators, 2010
  43. 43. © 2009 PhoCusWright Inc. All Rights Reserved. 43 Brazil Outbound Travel International Travelers (9%) Europe 32% USA 14% Latin America 54% Source: PhoCusWright Inc. PRELIMINARY DATA, SUBJECT TO CHANGE
  44. 44. © 2009 PhoCusWright Inc. All Rights Reserved. 44 2,2 1,8 2,4 3,1 3,5 0,3 0,5 0,9 1,4 2,0 17,2 16,4 19,5 21,9 23,6 0 5 10 15 20 25 2008 2009 2010 2011 2012 The Brazilian Travel Market (US$B) and Online Growth Rates (%), 2008-2012 Supplier Web Site OTA Total Gross Bookings Source: PhoCusWright Inc. PRELIMINARY DATA, SUBJECT TO CHANGE Brazilian Travel Market
  45. 45. © 2009 PhoCusWright Inc. All Rights Reserved. 45 23% 77% OTA vs Supplier Direct Shares (%), 2009 OTA Supplier Direct Source: PhoCusWright Inc. PRELIMINARY DATA, SUBJECT TO CHANGE Brazilian Online Travel Market
  46. 46. © 2009 PhoCusWright Inc. All Rights Reserved. 46 submarinoviagens.com. br 40% decolar.com.br 35% Priceline/ Booking 6% Expedia/ Hotels.com 6% malapronta 4% rapi10 2% viajanet 4% Travelocity 1% Others 2% Top OTA - 2010 Source: PhoCusWright Inc. PRELIMINARY DATA, SUBJECT TO CHANGE Brazilian Online Travel Market
  47. 47. © 2009 PhoCusWright Inc. All Rights Reserved. 47 Social media in Brazil is huge! • (Australia and) Brazil are the top Social Media users in the world. • 85% of Brazilians age 15 and older who accessed the Internet from home or work computers visited a social networking site • Main social media site: Orkut (80% market share) followed by Facebook Brazilians spend an average of 30.2 hours/month online (work+freetime), (worldwide average of 25.7 hours/month), about 8 hours are spent on Orkut • Brazil is the fifth-largest nation of Twitter users and the highest percentage of users of all of the non-English speaking countries. The top Twitter-using countries are all English speaking: the United States leads with 62.1 percent of Twitter users, followed by the UK, Canada, and Australia. Source: Nielsen, comScore
  48. 48. © 2009 PhoCusWright Inc. All Rights Reserved. 48
  49. 49. © 2009 PhoCusWright Inc. All Rights Reserved. 49 Understanding this age difference is critical for European NTOs
  50. 50. © 2009 PhoCusWright Inc. All Rights Reserved. 50 So what are the Take Aways: China…. India…. Brazil….
  51. 51. © 2009 PhoCusWright Inc. All Rights Reserved. 51 Thank You!

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