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Use of Video in Travel Process
 

Use of Video in Travel Process

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    Use of Video in Travel Process Use of Video in Travel Process Presentation Transcript

    • Cruises: Use of Videoin Travel ProcessConsumer & Industry Research | October 26, 2012
    • Details The research will be used to gain an understanding of the importance of using/viewing video when booking a vacation, specifically cruising. 1. At what point of the cruising booking process are users utilizing video? and to what degree at each phase? 2. What type of video content are users looking for? Ship video? Port video? 3. Are users more interested in professional videos or user generated? 4. Are people using video as a platform to share experiences? 5. Where are users currently going to find video content that helps them plan a cruise? 6. What is the opportunity for video creation in the cruising industry? Is there a large gap in the industry? | 2
    • Agenda1. Digital Channel Preferences for Moms2. Brand Analyses | 3
    • Video in the Travel Process| 4
    • Cruise lines will need to focus their development and marketingefforts on consumer preferences to differentiate their brands. Mintel expects solid growth over the next five years and forecasts revenues to reach $35.9 billion in 2016. While increased revenues in 2010 and 2011 indicate that the industry is poised for future growth, it is also apparent that competition for cruise travelers will. Following an 11.2% sales decline in 2009, cruise industry revenues returned to growth in 2010 and 2011, indicating that attractive price promotions and innovative offerings were effective in mitigating the initial impact of the economic downturn. | 5 Source: Mintel January 2012
    • There is potential for cruise lines to incorporate the power of socialnetworking into their passengers’ on-board experience. Opportunities could enter the world of social networking if they are designed with a more instant flare. Passengers who choose to partake can send digital images to friends and loved-ones at home right from the ship. The same idea applies to videos. Cruise-goers can be invited to record video messages for those they left behind at various on-board functions—or perhaps even when departing for, or just returning from, cruise line sponsored port excursions.Give social networkers some opportunity to achieve the instant access they crave—andtheir followers a taste of the photos and cruising highlights they’re sure to get post-vacation. | 6 Source: Mintel January 2012
    • In a study on Brand perceptions, most cruise lines were perceived asbeing quite similar. Many Americans are still not aware of how many activities are available to cruisers on large ships. Campaigns that encourage consumers to visit company websites and watch videos that describe various ships could be effective in efforts to show that cruising can be appealing to those with varying vacation preferences. Less than 30% of brand-aware respondents stated that cruise lines provide “consistently high quality” and have “great customer service” for every brand in the study. Marketers should consider making greater efforts to highlight quality and superior service in online communications. Companies could conduct brief video interviews with passengers to capture footage that can be posted online to prove that many customers do experience exceptional service. Takeaway: Companies will want to make greater efforts to highlight the unique aspects of their offerings to show how their cruises provide a truly unique experience and exceptional value for money. | 7 Source: Mintel January 2012
    • Social Media Metrics – HowSociable Magnitude Score | 8 Source: Mintel January 2012
    • PhoCusWright’s Analysis: Viral Video Marketing in Travel has notreached view counts as high as others due to a fear of taking risks. To date, travel viral video campaigns have not reached view counts as high as others. This may be due to a lack of understanding about the benefits of viral marketing, or a hesitation to “push the envelope” too far. As successful video campaigns have illustrated, abandoning a conservative approach to marketing in favor of more creative, edgy content can yield extraordinary results. KLM Royal Dutch Airlines KLM Airlines collaborated on a video campaign in which online viewers chose the honeymoon destination for a pair of newlyweds. The campaign drove a substantial amount of traffic to KLM’s destination pages, and cost the company little more than two tickets. | 9 Source: PhoCusWright
    • Viral Marketing is an opportunity for travel companies to establishbrand identities and shift share with very little downside risk. The travel industry has virtually the whole world to draw on as source material for viral marketing campaigns. Social networks provide a strong foundation for viral video campaigns, and those that succeed in turn yield larger brand communities. Strategies that have led to successful viral video campaigns: Shock the audience with the unexpected. Music creates stickiness. Focus on the genre of the target demographic. This is social media, don’t treat it like a TV spot. Give a behind-the-scenes view that will help the audience identify with your brand. Keep it short, easy to understand and easy to share. Within your target demographic, use tweets, emails and blog posts to connect with customers who are considered “influencers.” | 10 Source: PhoCusWright
    • 28% of Leisure Travelers reported watching a travel video as one oftheir online travel planning activities, up 7 points since 2009. The Top Seven Online Travel Planning Activities | 11
    • During the Autumn/Early Winter season, November 4th-10this the peak week for cruise searches by US users on Google.This may be the perfect time to launch an online video marketing campaign. | 12 Source: Google
    • Travelers watch online video in all phases of travel planning. When Video-Viewing Travelers Watch Travel Videos | 13
    • The large majority of Leisure & Business Travelers watchvideo online for travel planning. Percentage of Travelers Who Use Online Video for Travel Planning Online Video as a resource for planning travel by Leisure Travelers has grown 33% over the last three years, as 89% of leisure travelers watch video online. | 14
    • Online Travel Consumers have expressed the need for multimediacontent on Travel Websites. Travel marketers have the opportunity to improve their websites and reap more potential sales. According to the April 2011 Frommer’s Unlimited “2011 Digital Travel Content and User Experience Survey,” 46% of global travel consumers found these travel sites to have insufficient pictures/video. | 15
    • Over half of US Travelers have watched Travel-Related videos made bycompanies, experts and consumers. Cruise brands may benefit from bothcompany videos and soliciting user-generated content. Top 5 Types of Travel Videos Watched by All Travelers | 16
    • Brand Analyses| 17
    • Brand Analysis: CarnivalCarnival is turning to social media as a means to advertise to potential cruise-goers viafun YouTube videos and Facebook “likes.” Carnival has greater numbers of YouTube video views and Facebook “likes” than other brands. Carnival also gives guests an outlet to share photos post-trip and share experiences on Twitter. A review of the Carnival Cruise Line Facebook page reveals that the company uses the page not only to promote its cruise line vacations but also to derive feedback from guests while providing them with a way to share their experiences. The company also uses Twitter to respond to comments made on the platform. By using the account to gather feedback, the company clearly communicate that it cares about the opinions of customers and wants to take action based on feedback. Such a tactic could contribute to customer satisfaction and loyalty. | 18 Source: Mintel January 2012
    • Brand Analysis: Disney Cruise LineThe Disney Cruise Line is a best in class example of a brand that uses YouTube videos tohighlight the unique features of its ships. Disney Cruise Line also ensures that those researching cruise options are made aware of its differentiated offering. The brand website, disneycruise.disney.go.com, includes videos that help educate potential customers about the offering as well as an offer for a free planning DVD. Such efforts can be key to driving sales as the vast majority of Americans (approximately 89%) have not been on a cruise in the last three years. Quantcast.com estimates that women and those younger than 18 are both segments that over index on site visitation, indicating that the website is reaching mothers and children who often influence vacation decisions. Disney Cruise Line gives their guests the ability to make a free photo book.While these offerings cater to life before and after cruising, there is potential forcruise lines to incorporate the power of social networking into their passengers’ onboard experience. | 19 Source: Mintel January 2012
    • Brand Analysis: Royal CaribbeanRoyal Carribean’s videos and campaigns highlight the brand’s emotionalconnection and compelling consumer testimonials. The Royal Caribbean YouTube account includes some videos that have been especially popular and are part of the company’s “Shellphone” campaign, which is designed to highlight the emotional connection some have with the sea. The account also includes a range of videos describing various Royal Caribbean ships, as well as testimonials that could be compelling to those who are researching various brands before making a travel decision. | 20 Source: Mintel January 2012