AUDIENCE BOREDOM INDEX (ABI) AUDIENCE INTEREST HOW FASCINATING 100 75 50 25 10mins 20mins 30mins 40mins 0 50mins 60mins KILL ME NOW SLIDE 34
THE FUTURE IS ONLINE• 58% of all travel is now researched, booked bought and sold online• 96% of travellers start their research on the internet• Travel sales are expected to double this year, exceeding $300 Billion
GLOBAL MARKET CHALLENGES• Tour Operator driven model is diminishing• KPMG lists 49% of TOs as in decline and 24 major TOs bankrupted in 2011including Thomas Cook• Online regarded as motivating factor• Lack of customized and dynamic travel bookings
THE FUTURE IS SOCIAL• 40% on average of all time online is spent social networking• Facebook is one of the largest populations on earth with over 850 Million people• Social media is more popular and powerful than TV and print media combined
Content Generation• Over the past 6 years the web has changed radically• People have become able to create content on the internet with no skills or technical knowledge• Users mainly consume content from other users
Multiplying theTravel Experience• The vicarious travel experience effectively means that each person is now travelling with an average of 200 spectators• These are not passive spectators• They are engaging, commenting and recommending constantly• Travel suppliers now need to be a part of this atmosphere of constant engagement
Had I the heavens embroidered cloths, Enwrought with golden and silver light, The blue and the dim and the dark cloths Of night and light and the half-light, I would spread the cloths under your feet: But I, being poor, have only my dreams; I have spread my dreams under your feet;Tread softly because you tread on my dreams.
Conversion• There is so much competition in the marketplace and so much demand from the market for sales that CONVERSION of interest to sale is essential• As search and social becomes increasingly monetized branding alone is not a good investment• To see return on your online investment you need to convert
SOCIAL SELLS• US online buyers who were led to their purchase by a search engine or social media site (November 2010)• Search: 51%• Search and social: 48%• Social: 1%
Social Conversion• Spending on Social Media Advertising has doubled in the last year• Ad spend on Facebook in 2011: $4 Billion up 1600% from 2010• Video Advertising growing
Opinions are important• 20% of North Americans read reviews before making a hotel booking during domestic travel.• 33% of North Americans read reviews before making a hotel booking before overseas travel to Europe.• 50% of North Americans read reviews before making a hotel booking before booking long haul travel. source: NEW MEDIA TREND WATCH
TRAVELLING MOBILE• Three out of ten cell phones in use in the US are now "smartphones" with internet connectivity.• In 2010, nearly two in ten travelers (19%) have downloaded a travel-related application (app) to their smartphone.• Half have navigated a destination using the built in GPS functionality or searched for the latest information on ﬂight schedules and delays.• Three in ten have compared airfares or hotel rates or shared information or photos about their travel experiences using their smartphone.• One in six has booked air travel or lodging or viewed a virtual visitor guide that provides information on things to do and see while visiting a destination.
THE FUTURE IS MOBILE AND LOCATION BASED• Tools, Apps and Sites that know where you are are becoming very popular• Find information and contacts around you• Post, report and relate to your content• More and more destinations are focussing on Location Based Services
FUTURE FOCUS • SLOMO: • Social Media driving referrals • Local Based Content & Services • Mobile as a means of publishing and sharing content