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Travel digital iq 2011

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Travel digital iq 2011

  1. 1. ® SCOTT GALLOWAY Travel NYU Stern A P R I L 2 6 , 2 0 11 A ThInk TAnk for DIGITAL InnOVATIOn© L2 2011 L2ThinkTank.com
  2. 2. 05.20.11 CLInIC nYU SternEmerging DigitalMedia PlatformsThe Long Tail of Social MediaWhile Facebook dominates the social media landscape, a multitude of other digitalplatforms have emerged that provide fertile ground for brands to:• Reach new consumers• Run creative experiments• Explore new forms of digital expression and consumer online behaviorThese platforms range from the bold experiments of incumbent behemoths (FacebookPlaces and Google’s Boutiques.com) to smaller players who are gaining traction(Foursquare and Tumblr) to new entrants with small, passionate user bases (Pinterest,GetGlue, and Layar).This half-day intensive Clinic will help managers and senior marketers identify therelevant platforms for their brands and prioritize incremental investment in the long-tailof social media. http://L2EmergingMedia.eventbrite.com/
  3. 3. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USInTRODUCTIOnKiller App: The internetMassive choice coupled with a product that can be distilled to zeroes and ones makesthe Internet a killer app for the travel industry.While e-com’s share of U.S. retail stands at 5.9 percent, travel garners 38 percent of revenuefrom the ether.1 The browser is the booking agent of choice for 87 million Americans, howeverthe industry dedicates a meager seven percent of its marketing budgets to digital channels.2Many iconic travel brands struggle to leverage the online environment.The Social Web The Empire Strikes BackThe rise of social media presents a fresh set of opportunities Brands are starting to fight back. From Delta’s fully integratedand challenges to hotels, airlines, and cruise lines. Although Facebook booking to Four Seasons’ active customer servicetwo thirds of customers are influenced by online user reviews, via Twitter, brands are beginning to recapture lost ground andonly nine percent of the brands in the Index offer reviews, or move to the center of the customer conversation.any form of user-generated content, on their sites. Social-shar- In December 2010, American Airlines announced it would by-ing tools, live chat, and customer service via social media are pass the central reservation system that supplies flight informa-more common, but are still employed by less than half of the 89 tion to popular OTAs, opting to develop its own technology thatbrands analyzed. As brands debate the merits of transparency, provides additional customization for passengers and travelonline travel agents (OTAs) and comparison engines, includ- agents. Expedia responded by indicating that it would not being Expedia, Orbitz, TripAdvisor, and Kayak, fill the void with renewing its contract with the airline and refused to integrateauthentic reviews and pricing clarity. Brands have paid a steep the new system. Although the two parties came to an agree-price for staring at their navels while intermediaries give the ment in early April, the dispute is a signal that brands will notconsumer what they want. Of the 10 most-trafficked travel sites, just roll over online.only one, Southwest, belongs to a supplier.1. U.S. Department of Commerce, February 20112. eMarketer, April 2011© L2 2011 L2ThinkTank.com 3
  4. 4. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USInTRODUCTIOnDigital iQ = Shareholder Value TRAVEL BOOkInGOur thesis is that digital competence is inextricably linked to Online Marketing Share by Channel 1shareholder value in the travel industry. Key to managing anddeveloping a competence is an actionable metric. This studyattempts to quantify the digital competence of 89 global airline, 100% = BRAND 69% 67% 66% 59% 56% 54% 41% 44% 44% WEBSITEhotel, and cruise brands. Our aim is to provide a robust tool to = ONLINE TRAVELdiagnose digital strengths and weaknesses and help managers AGENT (OTA)at travel brands achieve greater return on incremental investment. 80%Like the medium we are assessing, our methodology is dynamic,and we hope you will reach out to us with comments that improveour approach, investigation, and findings. You can contact meat scott@stern.nyu.edu. 60% 59% 56% 56%Sincerely, 46% 40% 44% 41%SCOTT GALLOwAY 33% 34%Founder, L2 31%Clinical Professor of Marketing, NYU Stern 20% 0% 2008 2009 2010 2008 2009 2010 2008 2009 2010 AIRLINES HOTELS CRUISE LINES 1. “Nothing But Net,” J.P Morgan, January 2011 .© L2 2011 L2ThinkTank.com 4
  5. 5. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USABOUT ThE RAnkInGS C AT E G O R I E S M E T h O D O LO G Y 140+ Genius Site - 30%: Digital competence is a point of competitive Effectiveness of brand site. differentiation for these brands. Sites are more • Functionality & Content (75%) than just transactional. These brands have • Site Technology creatively engineered their messaging to reach • Site Search & Navigation travelers on a variety of devices and online • Reservations environments. • Flight/Hotel/Cruise Information • Checkout & Special Offers • Customer Service 110-139 Gifted • Rewards/Loyalty Programs Sites are highly functional. These brands typically • Brand Translation (25%) are active in mobile and social media, are visible • Aesthetics on top search engines, and offer email marketing. • Messaging & Interactivity 90-109 Average Digital Marketing - 30%: Digital presence is functional yet predictable, Marketing efforts, off-site brand presence, and visibility on search engines. and innovation efforts are uninspired and lack • Search: Traffic, SEM, SEO, Web Authority ambition. Boilerplate marketing. • Email: Frequency, Content, Social Media Integration, Promotion • Digital Marketing Innovation: Presence, Innovation 70-89 Challenged • Blog Presence: Mentions, Sentiment These brands bare-bones sites provide only basic functionality. Digital campaigns are an after- Social Media - 20%: thought. Demonstrate an inability to activate their Brand presence, following, content, & influence on major social media platforms. social communities and many are missing from • Facebook: Likes, Growth, Post Frequency, Ability to Transact, Responsiveness mobile. • Twitter: Followers, Growth, Tweet Frequency, Online Voice • YouTube: Views, Number of Uploads, Subscriber Growth, Content <70 Feeble These brands are digitally off the map. They are Mobile - 20%: marked by poorly designed sites and a failure to Compatibility and marketing on smartphones and other mobile devices. leverage digital to market to consumers. Mobile • Mobile Sites: Compatibility, Functionality, Ability to Transact and social media are not meaningful elements • Smartphone Applications: Availability, Popularity, Functionality of their strategies. • iPad Integration: Marketing, Applications© L2 2011 L2ThinkTank.com 5
  6. 6. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USD I G I TA L I Q R A n k I n G AIRLINE HOTEL CRUISE Rank Brand Category Digital iQ Class Description From mile high check-ins on Foursquare to Facebook booking, Delta’s digital efforts are first 1 DELTA Airline 168 Genius in class 2 SOuThWEST Airline 165 Genius SWA’s superior marketing translates across digital touch points; strongest site in the Index Content-rich site, strong Twitter and Facebook following, and efficient mobile app help 3 AMERiCAn AiRLinES Airline 158 Genius AA soar 4 W hOTELS hotel 149 Genius “Welcome to Wonderland” delivers W experience straight from your browser Managing more than 530 properties on one site is no small feat; 22 percent ROI through 5 hiLTOn hotel 143 Genius mobile channels 6 WESTin hotel 141 Genius Amazon storefront allows enthusiasts to purchase the Heavenly bed online 7 COnTinEnTAL Airline 140 Genius Facebook frequent flier enrollment and international mobile check-in give Continental lift 8 LuFThAnSA Airline 139 Gifted MySkyStatus posts your flight coordinates to Twitter or Facebook from the air 9 FOuR SEASOnS hotel 138 Gifted Luxury leader buttresses customer service excellence via Twitter 10 inTERCOnTinEnTAL hotel 137 Gifted Insider iPad app boasts local concierge recommendations for more than 120 destinations 10 JETBLuE Airline 137 Gifted 1.6 million Twitter followers may come for deals, but stay for responsive customer service 12 hYATT hotel 136 Gifted Site leads in function and findability 13 BRiTiSh AiRWAYS Airline 135 Gifted Carbon offset add-on when booking signals innovation around sustainability Community reviews, YouTube videos, and mobile app offer consumers a buffet 13 ROYAL CARiBBEAn Cruise 135 Gifted of digital options© L2 2011 L2ThinkTank.com 6
  7. 7. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USD I G I TA L I Q R A n k I n G AIRLINE HOTEL CRUISE Rank Brand Category Digital iQ Class Description Everyonesanoriginal.com social community allows guests and employees to share their 15 FAiRMOnT hOTELS hotel 134 Gifted stories, pictures, and videos Social darling of the industry is not afraid to take risks; surprise campaign rewarded Twitterers 15 KLM Airline 134 Gifted with personalized gifts while they waited to board 17 ShERATOn hotel 132 Gifted Sheratonbetterwhenshared.com features guest stories from across the globe 18 MARRiOTT hotel 131 Gifted A giant in search, but doesn’t score as well on social media platforms 19 CAThAY PACiFiC Airline 130 Gifted Prolific presence on YouTube boosts Asia’s airline leader; iPad app profiles airline employees Facebook fan base increased almost 400 percent from February to mid-March on the wings 20 AiR FRAnCE Airline 129 Gifted of F-Commerce 21 hOLLAnD AMERiCA Cruise 127 Gifted One of the few luxury cruise lines aggressively purchasing search terms on Bing Extends a warm Aussie welcome to site visitors with top-notch customer service and 21 QAnTAS Airline 127 Gifted informative airport guides Brand is in transition and it shows; site’s strong transaction-functionality is handicapped 21 uniTED Airline 127 Gifted by dated aesthetics “LM 100” serve as brand ambassadors online, but Facebook presence doesn’t extend 24 LE MÉRiDiEn hotel 126 Gifted to properties 24 ViRGin ATLAnTiC Airline 126 Gifted The Innovation Zone showcases the best in travel mobile apps Scores points for mobile apps and Facebook responsiveness, but luxe feel fails 26 OMni hotel 124 Gifted to translate online 27 MAnDARin ORiEnTAL hotel 122 Gifted Site customer service lags luxury peers, but makes up ground on social media Rico campaign on YouTube is one of the most playful in the industry, but poor site 28 AiR nEW ZEALAnD Airline 119 Gifted functionality keeps brand from taking off© L2 2011 L2ThinkTank.com 7
  8. 8. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USD I G I TA L I Q R A n k I n G AIRLINE HOTEL CRUISE Rank Brand Category Digital iQ Class Description Limited social media presence hurts, but brand gets marks for destination guides and ability 28 LuxuRY COLLECTiOn hotel 119 Gifted to search hotels by “pursuit” 28 ST. REGiS hotel 119 Gifted Individual properties are on Twitter, but the brand hasn’t checked in 28 uS AiRWAYS Airline 119 Gifted Highly functional but otherwise forgettable site 32 EMiRATES Airline 118 Gifted Brand YouTube channel includes link to booking Social media sweetheart’s fanatical following on YouTube buttresses entire Disney 33 DiSnEY CRuiSE LinE Cruise 117 Gifted travel empire 34 AiR CAnADA Airline 115 Gifted Connects Canada to the world, but is not connecting with passengers via social media 35 RiTZ-CARLTOn hotel 110 Gifted Interactive Facebook page garners five stars but bland site fails to deliver Cabin Experience videos on site highlight each class of service, including menu 35 SinGAPORE AiRLinES Airline 110 Gifted and entertainment options 37 nORWEGiAn CRuiSE LinE Cruise 109 Average Engages cruise community through user reviews and Facebook countdown clock Facebook page has grown fast on heels of strong app that allows guests to interact with 37 SOFiTEL hotel 109 Average individual properties 39 KiMPTOn hotel 106 Average Boutique chain scores innovation points offline, but is still figuring out social media 40 KOREAn AiR Airline 105 Average Features one of industry’s only video newsletters 41 WALT DiSnEY WORLD RESORT hotel 104 Average Social media presence brings Disney magic to life, but no photographs of rooms on site Strong synergy between site, print, and social media but will need more than its 42 FROnTiER Airline 103 Average “spokesanimal” mascots to woo fans online© L2 2011 L2ThinkTank.com 8
  9. 9. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USD I G I TA L I Q R A n k I n G AIRLINE HOTEL CRUISE Rank Brand Category Digital iQ Class Description 43 ViRGin AMERiCA Airline 102 Average Hip brand is not part of the cool crowd online 44 CunARD LinE Cruise 99 Average Facebook presence and YouTube videos suggest brand is willing to extend its regal heritage Experience Etihad provides virtual tours of the luxury cabin, lounge, and transportation 45 ETihAD AiRWAYS Airline 98 Average services 46 WALDORF ASTORiA hotel 96 Average Inconsistent site varies by property, but scores points for translating on a mobile device 47 ShAnGRi-LA hotel 95 Average Strong mobile and social media efforts keep brand out of the challenged ranks 48 SWiSSôTEL hotel 94 Average Facebook ski jump app attempts to tap into gamification phenomenon 49 LOEWS hotel 93 Average Seamless booking and strong customer service, but brand lacks digital differentiation 50 ThAi AiRWAYS Airline 92 Average Limited site functionality and social presence make Thai just average 51 JOiE DE ViVRE hotel 90 Average Attributes more than 1,000 bookings to tweets and Facebook posts 52 ThE LEADinG hOTELS hotel 89 Challenged Broken links show lack of digital leadership 53 SOuTh AFRiCAn AiRWAYS Airline 88 Challenged Poor technology and outdated information leaves site at the gate 54 JW MARRiOTT hotel 87 Challenged Limited social media outreach suggests brand forgot the turndown service My Jumeirah virtual space allows guests to customize their travel and site 55 JuMEiRAh hotel 86 Challenged browsing experience 55 LinDBLAD ExPEDiTiOnS Cruise 86 Challenged Clunky reservation system renders visitors queezy© L2 2011 L2ThinkTank.com 9
  10. 10. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USD I G I TA L I Q R A n k I n G AIRLINE HOTEL CRUISE Rank Brand Category Digital iQ Class Description 55 PEninSuLA hOTELS hotel 86 Challenged Visually appealing site falls flat on functionality 58 BAnYAn TREE hotel 84 Challenged Brand gets needed boost from high engagement and growth on Facebook 58 RELAiS & ChÂTEAux hotel 84 Challenged Site lacks functionality, but iPhone app delights 60 KEMPinSKi hotel 82 Challenged Europe’s oldest luxury hotel chain seems stuck in the digital Dark Ages 60 QATAR AiRWAYS Airline 82 Challenged Public company with a private Twitter account? 62 P&O CRuiSES Cruise 81 Challenged Cruise webcams score points for “Britain’s favorite cruise line” 62 RAFFLES hotel 81 Challenged Strong aesthetics provide only partial reprieve from dated and glitchy website 64 CRYSTAL CRuiSES Cruise 78 Challenged Brand site remains docked without e-commerce capability 64 SEABOuRn Cruise 78 Challenged Luxury feel but limited social media presence 66 MORGAnS hOTEL GROuP hotel 77 Challenged Lifestyle content differentiates brand; UrbanDaddy partnership amplifies message 66 OCEAniA CRuiSES Cruise 77 Challenged Average website functionality and limited social media usage places Oceania in steerage 66 REGEnT SEVEn SEAS CRuiSES Cruise 77 Challenged Subtle reservation box on site is easy on the eyes but loses points on conversion 66 WARWiCK inTERnATiOnAL hotel 77 Challenged Limited community suggests social media late arrival 70 COnRAD hotel 75 Challenged Fails to step out of shadow of larger Hilton brand online© L2 2011 L2ThinkTank.com 10
  11. 11. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USD I G I TA L I Q R A n k I n G AIRLINE HOTEL CRUISE Rank Brand Category Digital iQ Class Description 71 OBEROi hotel 74 Challenged No email opt-in limits online communication 71 PREFERRED hotel 74 Challenged Strong loyalty program fails to unite brand online Generates more traffic than most luxury cruise lines, but without booking capability what 73 WinDSTAR CRuiSES Cruise 73 Challenged is it worth? 74 OnE&OnLY hotel 72 Challenged Elegant site is hampered by poor functionality 75 SiLVERSEA CRuiSES Cruise 71 Challenged Social sharing hints at digital aptitude, but no booking capability causes IQ to sink 76 AZAMARA CLuB CRuiSES Cruise 68 Feeble Destinations dominate on gorgeous site, but social media efforts have yet to embark 77 TAJ GROuP OF hOTELS hotel 67 Feeble Lackluster social media impairs India’s luxury leader 78 PARK hYATT hotel 65 Feeble Limited stand-alone social media presence and hard-to-find site hinder differentiation online 79 ASiAnA Airline 64 Feeble Limited unique visitors and page rank hurt brand 80 ROCKRESORTS hotel 62 Feeble No customer loyalty program and limited social media use constrain hospitality online 81 SEADREAM YAChT CLuB Cruise 61 Feeble Mobile presence prevents shipwreck, but limited transaction-capability damages IQ Inaccurate, text-heavy site coupled with social media absence leaves this brand trailing 82 REGEnT inTERnATiOnAL hotel 54 Feeble its peers Dated website and lack of social media presence limit brand in U.S. market, but mobile 83 AiR ChinA Airline 52 Feeble effort provides a boost 84 PAn PACiFiC hotel 51 Feeble One of a handful of hotel brands that has ignored Twitter© L2 2011 L2ThinkTank.com 11
  12. 12. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USD I G I TA L I Q R A n k I n G AIRLINE HOTEL CRUISE Rank Brand Category Digital iQ Class Description URL architecture assures each property can stand alone but fails to yield economies 85 ROSEWOOD hotel 50 Feeble in search, traffic, or authority 86 hAinAn AiRLinES Airline 48 Feeble One of the few airlines with no mobile offering 87 ORiEnT-ExPRESS hotel 45 Feeble Without online upgrades hotel chain risks digital oblivion 88 JAPAn AiRLinES Airline 36 Feeble Outdated site and lack of social media leaves the brand sitting on the tarmac 89 SWAn hELLEniC Cruise 31 Feeble Facebook launch in February may put some needed wind in its sails© L2 2011 L2ThinkTank.com 12
  13. 13. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USkEY FInDInGSSelling is Knowing A V E R A G E D I G I TA L I Q &There is a direct relationship between the average Digital IQ PERCEnT OF BOOkInGS OnLInEby category and the percentage of purchases made online. By CategoryNearly half of Airline bookings are made online. The 29 airlinesstudied registered an average Digital IQ of 113, and 62 percent 120 60%of brands were classified as Genius or Gifted. The Cruise 113category lags the industry, and generates only nine percent ofits bookings online. Cruise lines posted an average Digital IQ 110 50% 48%of 86 and six of the 16 brands in the Index do not provide basice-commerce capability. 100 40% 97 % of Bookings Online Digital IQ Score 30% 90 30% “ What’s next? Look for increased personalization of 86 consumer interactions with hospitality brands, based upon past preferences and current online behavior. This mass customization will cut across all digital media as the 80 20% consumer researches, purchases, takes part in, and reflects upon the travel experience. ” —Stuart Levy | Assistant Professor, Dept. of Tourism & Hospitality Management, The George Washington University School of Business 70 10% 9% 60 0% AIRLINES HOTELS CRUISE LINES© L2 2011 L2ThinkTank.com 13
  14. 14. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USkEY FInDInGS D I G I TA L I Q D I S P E R S I O n % of Organizations per Digital IQ ClassBifurcation GEniuS DeltaThe dispersion of Digital IQ demonstrates that the prestige travel Lufthansa Le Méridien Southwest DiGiTAL iQindustry does not follow a traditional bell curve when it comes Four Seasons Virgin Atlantic 8% American >140 InterContinental Omni W Hotelsto digital innovation. A remarkable 41 percent of brands were JetBlue Mandarin Hiltonclassified as Genius or Gifted, however an additional 43 percent Oriental Westinwere Challenged or Feeble. The dispersion of scoring suggests Hyatt Air New GiFTED Continental British Airways Zealandthe winners are pulling away from the losers when it comes to Royal Caribbean Luxuryonline aptitude. Collection Fairmont Hotels St. Regis KLMThere is also a relationship between Digital IQ and the amount Sheraton US Airways DiGiTAL iQ 33% Emirates 110-139of time users spend on the brand site. Genius and Gifted brands Marriott Disney Cruise Cathay Pacific Lineregister average user time of 6.2 minutes and 4.9 minutes, Air France Air Canadarespectively, while users spend only 3.4 minutes on the sites of Holland Ritz-CarltonFeeble brands. America Singapore Qantas Norwegian Cunard Airlines United AVERAGE Cruise Line Etihad Airways Sofitel Waldorf Astoria AVERAGE TIME On TRAVEL SITES Kimpton Shangri-La DiGiTAL iQ by Digital IQ Class 17% Korean Air Swissôtel The Leading Cruise Line 90-109 Walt Disney Loews Hotels Morgans Hotel World Resorts 8 South African Group Thai Airways Frontier Airways Oceania Joie de Vivre Virgin America 6.2 JW Marriott Cruises ChALLEnGED Jumeirah Regent 7 Seas 6 Lindblad Cruises Expeditions Warwick 4.9 International Peninsula DiGiTAL iQ 4.2 Hotels Conrad Hotels 27% 4.0Minutes Banyan Tree & Resorts 70-89 Azamara Air China 4 3.4 Oberoi Cruises Pan Pacific Relais & Chateaux Preferred Taj Group of Rosewood Hotels and Hotels Hotels Kempinski Resorts Park Hyatt 2 Qatar Airways Hainan Airlines WindStar Asiana Airlines P&O Cruises Cruises FEEBLE RockResorts Orient-Express Hotels Raffles One&Only International SeaDream Japan Airlines Silversea Yacht Club 0 Crystal Cruises DiGiTAL iQ Swan Hellenic Cruises 16% Regent Genius Gifted Average Challenged Feeble Seabourn <70 International Hotels© L2 2011 L2ThinkTank.com 14
  15. 15. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USkEY FInDInGSDigital iQ = Pricing Power D I G I TA L I Q v s . Y E A R - O V E R -Y E A R C h A n G E I nThe recession forced the prestige hotel industry to slash its A V E R A G E D A I LY R O O M R AT Eroom rates. Our analysis demonstrates a positive correlation (Hotels with Published Data: 2010 vs. 2009)of 0.60 between Digital IQ and 2010 versus 2009 changes inAverage Daily Rate among the nine hotels with published data, 180suggesting hotel brands that are more digitally competent havebeen able to rebound faster. Correlation = .60 160innovation Silos?Examination of Digital IQ across portfolio companies sug-gests travel industry conglomerates are good at leveraging 140economies of scale online across multiple brands. The averageDigital IQ dispersion of parent companies in the industry was40 points, versus a dispersion of 77 points across parent com- Digital IQpanies in the 2010 Digital IQ Index®: Luxury and 47 points in the 1202010 Digital IQ Index : Beauty. ®With six brands in the study, Starwood highlights the benefits of 100an organization-wide approach to digital. All of the company’sbrands sit on the same site platform, providing enhanced SEO,cross-sell opportunities, and best-in-class customer servicewithout compromising the distinct identity of each hotel. Star- 80wood has taken a similar approach on Facebook, where thecompany boasts a page for nearly every property. Each pagehighlights unique features of the property, brand, and desti- 60nation while leveraging community engagement tactics and 0% 1% 2% 3% 4% 5% 6% 7% 8%content from across the Starwood organization. % Change in Average Daily Rate© L2 2011 L2ThinkTank.com 15
  16. 16. DiGiTAL iQ Index ®: Travel Want to know more about your brand’s ranking? COnTACT US kEY FInDInGS AIRLINE HOTEL CRUISE A V E R A G E D I G I TA L I Q BY P O R T F O L I O C O M PA n Y Organizations with More than One Brand170 GENIUS Disparity 30 Disparity 68 Disparity140 Disparity Disparity Disparity Disparity 13 Disparity 53 5 71 67 Disparity 44 AVG IQ AVG IQ 134 Disparity 66 AVG IQ 131 132 24 GIFTED Disparity 13 AVG IQ110 114 AVG IQ AVG IQ 109 111 AVG IQ AVERAGE 105 AVG IQ 103 AVG IQ AVG IQ 101 102 90 AVG IQ 89 CHALLENGED Disparity 23 70 AVG IQ 66 FEEBLE 40 wi & n= on n= al n= d e io es n= M n= n t n= on in al n= up pa ey s an n ld nt KL e ld ls at ffl m sn n= de 5 3 3 n= al 2 2 2 n= td. n= gs 2 n= ny i i i o at w at io se be em Gr Ho tine or te n rn a Co t Di e– ld 6 3 2 2 2 at or or L ui ib te t R W Ho ag or in rn rp rp Cr Car nc n al In on rg W an Co te Co Co r ts od ra W Vi In ls m M n l so wo rF d ya al s lto e te air ite tt el al Th iv Ro Ai R e tar rio Hi ot Ho F ob Un rn tH S ar Gl Ca M at lo Hy ol Ap © L2 2011 L2ThinkTank.com 16
  17. 17. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USkEY FInDInGSThe hareAlthough travel brands sped to the front of the pack with SITE CONTENT & TOOLScommerce-enabled sites, analysis across airlines, cruise lines, % of Brand Sites with and Without the Following Tools:and hotels suggests progress in the digital medium has slowed.Nearly 40 percent of travel brand sites fail to incorporate video.Less than half provide an online customer loyalty or frequent flier Online 93% 7% = YESprogram. Only 28 percent have some form of social sharing, and Booking = NOjust 20 percent incorporate the Facebook Like button. Video 62% 38%While prestige travel is largely built around customer service,only 17 percent of the brands in the study offer live chat. Online LoyaltySouthwest, the leader in site scoring, provides a glimpse into Program 45% 55%the future of brand travel sites, blending function, technology,and community. Social Sharing 28% 72% Facebook “Like” 20% 80% “ Leading travel brands recognize the opportunity to use digital and social media as more than a booking Live Chat 17% 83% channel. Genius brands use their websites and social media communities to extend and enhance the customer service experience; creating deeper connections with travelers and allowing User Reviews 9% 91% guests to experience the quality of their customer service before, during and after their stay. ” —Melissa Dowler | Chief Marketing Officer, ISM 0% 20% 40% 60% 80% 100%© L2 2011 L2ThinkTank.com 17
  18. 18. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USkEY FInDInGSunder ReviewAlthough two-thirds of consumers report being influenced by I M PA C T O F S I T E F E AT U R E S O n T R A F F I C G R O w T htraveler-generated ratings, only nine percent of the brands in (March 2010–March 2011)the study offer reviews on their sites.3 Even among those of-fering reviews, most segregate them from the booking experi- 50%ence or sanitize the feedback. Examples include Fairmont’sEveryone’s an Original microsite or Kepinski Hotels, whichlink to pages on TripAdvisor. Although laggard in other dimen-sions, the Cruise category has been the first to embrace guest 40%feedback, and four brands include user reviews. Traffic to sitesthat incorporate user reviews grew 24 percent, versus sevenpercent for those without reviews, suggesting user-generatedcontent provides more authenticity and traffic. 30% Traffic GrowthThe increasing Cost of Search 24%Industry revenues are up significantly following the recession, 20%but traffic to the 89 travel brand sites in the Index is down eight 17%percent year-on-year. One of the reasons is the increasing costof paid search, one of the industry’s primary traffic drivers.Of the brands in the Index, 72 percent engage in key-word 10%purchase on Google, and 64 percent purchase terms on Bing. 7% 6%Average cost-per-click search advertising was up 21.3 per-cent in the travel industry January 2010 through January 2011,suggesting it is becoming increasingly expensive for brands to 0%compete for prime search engine real estate.4 Google’s April YES NO YES NOacquisition of ITA, a software company that powers the majorityof flight fare search on brand sites and travel portals, provides User Reviews Social Sharingadditional cause for pause, and many predict search enginemarketing pricing will continue to skyrocket.3. “Top Traveler Technology Trends,” PhoCusWright, August 26, 20104. Company Blog, EfficientFrontier, February 4, 2011© L2 2011 L2ThinkTank.com 18
  19. 19. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USkEY FInDInGS T O P 8 R E F E R R A L & D E S T I N AT I O N S I T E S : T R A V E L B R A N D S I T E S The Online itinerary Upstream and Downstream Traffic to and fromThe average online consumer visits more than 20 sites while Social Media Sites, Online Travel Agents, and Competitor Sitesresearching travel online.5 Examining the upstream and down-stream referral sites across the 89 brands reveals that social = SOCIAL MEDIAmedia, online travel agents such as Travelocity and 100% SITEExpedia, and competitor sites factor considerably into this = ONLINE TRAVEL AGENTS (OTAs)sample set. 90% = COMPETITORIn addition, brands are driving significant traffic to and from 81%Facebook. Of the brands in the Index, 78 percent registered 80%Facebook as a top-eight source of referral traffic, and on aver-age Facebook drove seven percent of traffic to brand sites.Even more staggering, 90 percent of the brands recordedFacebook as a top destination site after leaving the brand site. 60% 52% 47% “ While many travel sites have evolved into purely transactional platforms, your customer may have 40% just come from your competitor’s site. The best sites 35% communicate a unique brand experience in a way that doesn’t inter- 29% fere with the transaction. ” —Bob Minihan | Chief Creative Officer, ISM 20% 11% “ Hospitality companies should not view OTAs as com- 7% 5% 6% petitors. Rather, they can be strategic collaborators 2% 3% and super-marketers. Recent research termed the 0% “Billboard Effect” demonstrates that hotel exposure on OTA listings % of Brands % of Traffic % of Brands % of Traffic can drive significant additional booking traffic though brand websites. ” Upstream Traffic Downstream Traffic —Stuart Levy | Assistant Professor, Dept. of Tourism & Hospitality To Brand Site From Brand Site Management, The George Washington University School of Business5. “Refining the Travel Search Process,” Compete & Google, December 15, 2009© L2 2011 L2ThinkTank.com 19
  20. 20. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USkEY FInDInGSThe Web is Dying & Facebook is ThrivingAnother reason for diminishing traffic to brand sites is the B R A n D FA n P O S T R E S P O n S I V E n E S Smaturation of the web and the rise of Facebook. In 2001, the 10 A c r o s s 8 5 B r a n d Fa c e b o o k Pa g e smost-visited sites on the web accounted for 31 percent of U.S. (March 2011)page views, in 2006 it was 40 percent, and it is now 75 percent, 50%suggesting the medium and long tail of the web is decreasingin importance.6 Facebook alone accounts for 12.3 percent ofall consumer time on the Internet.7 Facebook usage is nearlyubiquitous across the travel category, and all but four brands 40%feature at least one dedicated page. During the first quarter2011 measurement period, travel brand Facebook communitiesgrew an average of 20 percent. 30% 27% 21% “ Your customers already spend their time on Face- 20% book, so targeting them there is more efficient and 16% 16% effective than driving them to custom-built social 15% networking portals. Facebook continues to enhance its flexibility for custom fan page and application development, making the social 10% networking site an increasingly attractive option for brands. ” —Melissa Dowler | Chief Marketing Officer, ISM 4% 0% 2 Hours 2-6 7-12 13-24 Over Does Not or Less Hours Hours Hours 24 Hours Respond6. “The Web is Dead, Long Live the Internet,” Chris Anderson and Michael Wolff, Wired Magazine, August 17, 20107. “The 2010 Digital Year in Review,” comScore, February 8, 2011© L2 2011 L2ThinkTank.com 20
  21. 21. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USkEY FInDInGS S O C I A L M E D I A S T R AT E G I E SSocial Media Management Across All BrandsTravel brands take a variety of approaches (marketing, custom- 49% 50% 48%er service, commerce, etc.) when it comes to managing social = BRAND PAGE & PROPERTY/media across properties and regions. Almost half of the Hotel REGIONAL 40% PAGESbrands had more than one account on Facebook and Twitter. 33% = BRAND PAGE ONLYFour Seasons maintains accounts on both social media 30% 28% = PROPERTY/platforms for each of its properties. Norwegian Cruise Line REGIONAL PAGES ONLYmaintains separate pages by region, including specific pages 20% = NO PRESENCEfor Argentinean and Brazilian passengers. Nine percent of 11% 12% 10% 8% 9%brands on Facebook and 12 percent of those on Twitter haveno centralized accounts, opting to let properties manage theirown social media efforts. 0% Facebook Twitter TwITTER COnTEnT % of Brands on Twitter with the Following: = YES News/Info 83% 17% = NO Deals 65% 35% Contests 52% 48% Customer Service 46% 54% Regional Twitter page for Four 0% 20% 40% 60% 80% 100% Seasons’ Beverly hills location© L2 2011 L2ThinkTank.com 21
  22. 22. DiGiTAL iQ Index ®:Travel Want to know more about your brand’s ranking? COnTACT USkEY FInDInGS T O P 1 0 B R A N D S : FA C E B O O K L I K E S T O P 1 0 FA S T E S T- G R O w I n G FA C E B O O k A C C O U n T S (March 2011) (January–March 2011) Air France 377% Regent Walt Disney 239% International World Resort British Airways 144% 5,699,438 AIR FRAnCE P&O Cruises 54% TRAVEL ChALLEnGE Southwest 1,330,073 Drove significant “like” growth. Fans guessed the location of the “photo of the day” to be entered South African into a sweepstakes for 30 pairs of round trip tickets. Disney Cruise Line 514,793 53% Airways Chance of winning increased by inviting friends to enter. JetBlue Airways 471,787 Cathay Pacific 45% Air France 315,803 One&Only 39% Royal Caribbean 265,751 Frontier 39% United 255,970 Emirates 226,926 Air New Zealand 34% Lufthansa 178,146 Hyatt 32% American 136,385 0 100% 200% 300% 400% = 50,000 FACEBOOK LIKES© L2 2011 L2ThinkTank.com 22

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