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2015 Adobe Digital Index Summer Travel Report

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A new study by Adobe Digital Index (ADI) finds that marketers should expect a drop in mobile-related activity this summer. That’s because approximately 33% of consumers with summer travel plans expect to visit destinations with limited or no cellular and Wi-Fi access. That limitation will affect social media behavior as well.

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2015 Adobe Digital Index Summer Travel Report

  1. 1. Summer Travel Report Adobe Digital Index | United States | 2015
  2. 2. ADOBE DIGITAL INDEX | Europe Best of the Best ADOBE DIGITAL INDEX US Summer Travel Report (2015) 2 TABLE OF CONTENTS 1. Industry Outlook 2. Mobile Trends 3. Pricing Forecast 4. Pricing Discounts 5. Top Travel Days 6. Travel Day Price Comparison 7. Pricing Curves by Top Holidays 8. Top Destinations 9. Pricing Trends by Destination 10. Methodology
  3. 3. ADOBE DIGITAL INDEX | United States | Summer Travel Report (2015) ADOBE DIGITAL INDEX Travel Industry Outlook 3 GLOBAL TRAVEL BOOKINGS, BILLIONS • 7% YoY growth in online travel bookings. Overall spending for summer tops $65 million • 2/3 of people anticipate spending the same or more on travel this year (Survey) • 61% cite gas prices as being “very” or “somewhat” important in travel decisions. (Survey) • Average consumer anticipates spending $2,788 on their summer travel, with 57% of that being online
  4. 4. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX Mobile Trends • Growth of mobile phone share of sales led by more mobile optimized travel sites and larger screen phone adoption • $1 out of every $5 spent online in travel comes from mobile devices • 1/3 of travelers say they will unplug by going to a destination with limited or no mobile connection or wi-fi connectivity (Survey) 4
  5. 5. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX Pricing Forecast • Flight prices are down 4% YoY for first 4 months of 2015 • Hotel prices are up 5% YoY for first 4 months of 2015 • 61% cite gas prices as being “very” or “somewhat” important in travel decisions. (Survey) 5
  6. 6. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX Price Discounts – Domestic Flights • 90 days prior is best time to book trip; average discount of 15%; smart shoppers can save up to 30% on this date (trends change for major travel holidays) • Prices dramatically rise starting 20 days prior to departure; average flight price increases 3% each day, for a total of 60% for those who wait longest o 1 in 3 consumers wait to book flight until the last 20 days prior to departure o Booking prior to 150 days is not optimal either 6
  7. 7. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX Price Discounts – International Flights • Booking 60 days prior to departure can save average of 17%; smart shoppers can save up to 32% on this date • Prices rise starting 20 days prior to departure; average flight price increases 1.3% each day up to 27% o 1 in 5 consumers buy less than 21 days to traveling internationally vs. 1 in 3 for domestic travel o Buying extra early is only slightly less efficient 7
  8. 8. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX Price Discounts – Domestic & International Hotels • 40 days prior is the best time to book an economy hotel ($120 or less per night) with 15% average discount; 30 days out for higher end hotels for 2.5% average discount • 1 in 5 consumers book international hotel one week before trip; same for booking domestic hotel bookings o No difference between domestic and international could be due to hotel prices being similar across countries 8
  9. 9. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX Top Days for Travel (by flights ticket departure date) 9
  10. 10. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX Holiday Prices Comparison • Labor Day travel 5-7% cheaper than Fourth of July travel • Average cost of hotel and flight for Labor Day is $122 and $226, respectively • Average cost of hotel and flight for Fourth of July is $ 127 and $ 241, respectively • Prices for three main summer holidays are 25% lower than Christmas and 11% lower than Thanksgiving • When asked what the timing of their desired summer travel would be like, 37% of U.S. consumers preferred July (Survey) • 1 in 5 consumers indicated they wanted to travel during the first half of June (Survey) 10
  11. 11. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX Pricing Curve – Memorial Day • Best times to buy are long gone – Jan 30 for flights and March 26 for hotels • Those booking Memorial Day travel now will pay at least 40% more than average for flights 11
  12. 12. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX Pricing Curve – 4th of July • Best time for flights and hotels has also passed, but last best chances to buy are: • 40 days before (May 23) is best time to book trip for an average 10% discount; smart shoppers could save up to 20% on this date • After June 25, each day flight prices increase by 2.6%, up to 40% on July 4 • Book hotel on June 20 to save average of 2.5%, with up to 10% savings on economy hotels 12
  13. 13. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX Pricing Curve – Labor Day • 43 days before (July 21) is best time to book trip with 17% average discount; smart shoppers can save up to 31% on this date • After Aug. 18, each day flight prices increase by 3%, up to 60% • Book Labor Day hotel on June 9 for best prices, with average discount of 5%, up to 20% on economy hotels 13
  14. 14. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX 2015 Top Destinations (bookings/social mentions) 14
  15. 15. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX Pricing Trends by Top Destinations 15
  16. 16. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX 2015 Top Destinations (Flight Pricing) 16
  17. 17. ADOBE DIGITAL INDEX | United States | Summer Travel Trends (2015) ADOBE DIGITAL INDEX 2015 Top Destinations (Hotel Pricing) 17
  18. 18. ADOBE DIGITAL INDEX | United States | 2015 Summer Travel Report ADOBE DIGITAL INDEX Methodology Visit our website: Based on aggregated, anonymous data from Adobe Marketing Cloud (transaction data, not web scraping) - 15+ billion visits to major U. S. travel, airline and hotel sites between 2013 and 215 - 3+ million social media mentions. 2000+ top hotels and 2000+ destinations tracked Visit our website: http://www.cmo.com/adobe-digital-index.html Follow us: @adobeindex Ask a question or make a suggestion: digindex@adobe.com 18

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