1. Connecting With Today’s
Online Leisure Travel Shopper,
Sponsored by Webtrends
September 18, 2014
Marcello Gasdia
Sr. Consumer
Analyst
PhoCusWright Inc.
Maggie Rauch
Research
Analyst
PhoCusWright Inc.
Michael Wilson
Sr. Director, Product
Management
Webtrends

2. © 2014 PhoCusWright Inc. All Rights Reserved. 2
Connecting With Today’s Online Leisure
Travel Shopper, Sponsored by Webtrends
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© PhoCusWright
 September 18, 2014
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?

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Online Travel
Agencies
Hotel and
Airline
Websites/Apps
Metasearch
Travel Review
Websites/Apps
Search
Engines
Social
Networks
Destination
Websites/Apps
Travel Guide
Websites/Apps
Magazine/
Newspaper
Website/App

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U.S. Leisure Travelers
Source: PhoCusWright's Consumer Travel Report Sixth Edition
 Took at least one overnight leisure trip in the past 12 months that included paid lodging or a
flight
 Took an active role in planning their trips
 18+ years old
 Shop for travel online

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95% 32% 25%
Source: PhoCusWright's Consumer Travel Report Sixth Edition

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Mobile Travel Planning Activity,
by Age
Question: Where do you typically research airline or hotel options online when planning your leisure trips, and through which devices? Select
all that apply.
Base: U.S. Online Travel Shoppers N=1,485
Source: PhoCusWright’s Consumer Travel Report Sixth Edition
45%
54%
37%
17%
9%
4%
24%
43%
26%
18%
15%
3%
0%
10%
20%
30%
40%
50%
60%
18-24 25-34 35-44 45-54 55-64 65+
Smartphone Tablet

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1
6
2
3
4
5
7
8
6.5
Mean Touch Points 9

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0%
5%
10%
15%
20%
25%
30%
35%
1-2 3-4 5-7 8-10 11-15 16-20 21+
Mean Touch Points
Where do you typically research airline or hotel options online when planning your leisure trips, and through which devices? Select all that
apply.
Base: U.S. Online Travel Shoppers N=1,485
Source: PhoCusWright's Consumer Travel Report Sixth Edition

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7.0
7.9
6.6
5.8
5.2
4.1
0
1
2
3
4
5
6
7
8
9
18-24 25-34 35-44 45-54 55-64 65+
Mean Touch Points, by Age
Where do you typically research airline or hotel options online when planning your leisure trips, and through which devices? Select all that
apply.
Base: U.S. Online Travel Shoppers N=1,485
Source: PhoCusWright's Consumer Travel Report Sixth Edition

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5 1 1
Mean Touch Points, Per Device
Where do you typically research airline or hotel options online when planning your leisure trips, and through which devices? Select all that
apply.
Base: U.S. Online Travel Shoppers N=1,485
Source: PhoCusWright's Consumer Travel Report Sixth Edition

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Mean Touch Points
Where do you typically research airline or hotel options online when planning your leisure trips, and through which devices? Select all that
apply.
Base: U.S. Online Travel Shoppers N=1,485
Source: PhoCusWright's Consumer Travel Report Sixth Edition
Touch Point Means
Average 6.5
Travelers 25-34 7.9
Frequent Travelers (6+ trips) 8.1
International Travelers 7.7
Big Spenders (6k+ annually) 8.1
Early Tech Adopters 8.5
Mobile Travel Shoppers 8.6

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Source: PhoCusWright Inc.
79%
OTA

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79%
OTA
Source: PhoCusWright Inc.
72%
Search
Engines 71%
Provider
Websites

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Touch Points (Travel Website Types)
Where do you typically research airline or hotel options online when planning your leisure trips, and through which devices? Select all that
apply.
Base: U.S. Online Travel Shoppers N=1,485
Source: PhoCusWright's Consumer Travel Report Sixth Edition
26%
31%
33%
39%
51%
56%
71%
72%
79%
Magazine or newspaper website/app
Travel guide website/app
Social network pages
Destination website/app
Travel Metasearch website/app
Travel Review website/app
Hotel or Airline website/app
General Search engine website/app
Online travel agency website/app
Desktop/Laptop

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6%
6%
8%
7%
10%
11%
11%
13%
11%
6%
7%
15%
7%
10%
13%
14%
18%
14%
26%
31%
33%
39%
51%
56%
71%
72%
79%
Magazine or newspaper website/app
Travel guide website/app
Social network pages
Destination website/app
Travel Metasearch website/app
Travel Review website/app
Hotel or Airline website/app
General Search engine website/app
Online travel agency website/app
Desktop/Laptop Smartphone Tablet
Touch Points (Travel Website Types)
Where do you typically research airline or hotel options online when planning your leisure trips, and through which devices? Select all that
apply.
Base: U.S. Online Travel Shoppers N=1,485
Source: PhoCusWright's Consumer Travel Report Sixth Edition

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95%! 32% 25%
Source: PhoCusWright's Consumer Travel Report Sixth Edition

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32% 25%
41%
Mobile Shoppers
Mobile Shoppers
(as a % of total online shoppers)
Where do you typically research airline or hotel options online when planning your leisure trips, and through which devices? Select all that
apply.
Base: U.S. Online Travel Shoppers N=1,485
Source: PhoCusWright's Consumer Travel Report Sixth Edition

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51%
60%
47%
28%
18%
8%
18-24 25-34 35-44 45-54 55-64 65+
Where do you typically research airline or hotel options online when planning your leisure trips, and through which devices? Select all that
apply.
Base: U.S. Online Travel Shoppers N=1,485
Source: PhoCusWright's Consumer Travel Report Sixth Edition
Mobile Shoppers
(as a % of all online travel shoppers)
by Age

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23%
Booked via mobile device (Booked hotel or flight at
least once using smartphone or tablet within the
past 12 months)
Mobile Booking
(as a % of total online shoppers)
Did you book/purchase a hotel room or flight online using a mobile device (i.e. smartphone or tablet) over the past 12 months?
Base: U.S. Mobile Travel Shoppers N=1,485
Source: PhoCusWright's Consumer Travel Report Sixth Edition

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Did you book/purchase a hotel room or flight online using a mobile device (i.e. smartphone or tablet) over the past 12 months?
Base: U.S. Mobile Travel Shoppers N=1,485
Source: PhoCusWright's Consumer Travel Report Sixth Edition
Mobile Booking
(as a % of all online travel shoppers)
by Age
31%
38%
23%
11% 8%
1%
20%
22%
24%
17%
10%
7%
18-24 25-34 35-44 45-54 55-64 65+
Booked via mobile device
Shopped via mobile device, but did NOT book

27. © 2014 PhoCusWright Inc. All Rights Reserved. 27

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2%
6%
12%
17%
28%
34%
37%
40%
41%
46%
Compliance with privacy laws
Compliance with legal requirements for
price, fee and tax disclosure to the…
Navigating siloed organizations internally at
our company
Ensuring ads are kept in a brand-safe
environment
Managing/optimizing keyword buys
Managing/optimizing ad creative
Supporting new mobile ad formats and
technologies
Site design and effectiveness
Tracking attribution of ad campaigns
Allocating budget across many different
channels
Source: PhoCusWright’s The U.S. Travel Advertising Marketplace: Industry Sizing and Trends 2011-2015
Top Challenges Faced by U.S. Travel
Marketers

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41%
3%
4%
6%
8%
8%
11%
12%
15%
17%
35%
Do not utilize any/don’t know
Fractional: Time-decay
Fractional: U-curve
Algorithmic or Probabilistic
Single Source: First-view
Fractional: Equal or Linear
Single Source: First-click
Single Source: Post-view
Online-Offline or Cross-channel
Multi-device/Screen
Single Source: Last-click
Source: PhoCusWright’s The U.S. Travel Advertising Marketplace: Industry Sizing and Trends 2011-2015
Attribution Models Used by U.S.
Travel Marketers

31. Confidential
Optimization for Leisure Travel
Applying learnings from PhoCusWright

32. You need to understand the customer journey!
•Average 6.5 touchpoints during the booking process
–Greater than 8 touchpoints for younger audiences
–Greater than 7 touchpoints for higher value customers
•Multi-channel conversions
–All audiences use mobile for research
–Younger audiences more likely to book on mobile
32

33. You need to understand the customer journey!
•Average 6.5 touchpoints during the booking process
–Greater than 8 touchpoints for younger audiences
–Greater than 7 touchpoints for higher value customers
•Multi-channel conversions
–All audiences use mobile for research
–Younger audiences more likely to book on mobile
•And yet…
–41% of travel organizations perform no attribution
–Most attribution relies on last touch, ignores the journey
33

34. Conversion and customer experience
34
Do it again
Tell others
2
3
1
2
3
4,5,6,7
Do it
Conversion
Customer Experience

35. 35
Key Elements
Building blocks for better customer experiences

36. Segmentation
Focus on the customers who drive revenue
•Examples
–Travelers 25-34
–Frequent Travelers
–International Travelers
–Big Spenders
–Mobile Travel Shoppers
•Visitor profile/persona
–Historical behavior
–In-session activity

37. Online Testing
Determine optimal design and content to engage and convert
•A/B and multivariate
•Cross-channel view
•Conversion objectives
–Conversion rates
–Booking value
–Ancillary revenue
•Engagement objectives
–Pages viewed
–Time on a page

38. Content Targeting
Act based on affinities between visitors and content
•Visitor profiles
–Lifetime value
–Past purchases
•Session behavior
–Next best offer
•Recent activity
–Email remarketing

39. Expertise
Deliver programs to achieve scale and long- term success
•Data strategies
•Identify improvements
•Discover segments
•Design and run tests
•Target appropriately

40. Understand and improve the customer journey
Five steps to Optimization

41. Step 1 Gather everything you know about your customers to deliver value and relevancy.

42. Step 1 Gather everything you know about your customers to deliver value and relevancy.

43. Step 2 Deliver the right experiences while customer intent is at its peak.

44. Step 2 Deliver the right experiences while customer intent is at its peak.

45. Step 3 Optimize metrics that matter.
Pages per visit
Abandonment
Visit frequency
Ancillary sales
Booking value
Booking per user
Self-service rate
Lifetime value
Churn rate
NPS
CSAT
CES

46. Step 4 Understand the real customer journey and optimize across all channels.
Research
Booking
Travel
Share
Chat Support
Call In

47. Step 4 Understand the real customer journey and optimize across all channels.
Chat Support
Call In
Research
Booking
Travel
Share

48. Step 5 Optimize campaigns within your digital channels.
Mobile
Site
Social

49. 49
Questions?
Thank you.

50. Questions?
Marcello Gasdia
Sr. Consumer Analyst
PhoCusWright Inc.
Maggie Rauch
Research Analyst
PhoCusWright Inc.
Michael Wilson
Sr. Director, Product Management
Webtrends

51. Related Release:
Coming Soon!
A PhoCusWright White Paper about this topic, written by David Juman and Marcello Gasdia, sponsored by Webtrends
Available in mid-October – check www.phocuswright.com and www.webtrends.com for more information!

52. © 2014 PhoCusWright Inc. All Rights Reserved. 52
Upcoming Webinar:
PhoCusWright’s European Traveler Technology Survey
October 1, 2014
Presenter:
Marcello Gasdia
Sr. Consumer
Analyst

53. Thank You!
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