Understanding the Relationship Between Online Travel Agencies and Destination Marketing Organizations

1. The Traveler’s Path
to Purchase
Understanding the Relationship Between Online Travel
Agencies and Destination Marketing Organizations

2. Study Details:
Qualifications for Inclusion in Segment:
In order to be included in the analysis, consumers had to have met both of the following criteria:
• Booked a vacation package at one of the following online travel agencies (OTAs) between October 1, 2012 and March 31, 2013
• Visited a destination marketing organization (DMO) website during the 45 days leading up to the time of booking
DMO Site List:
• Using a variety of online and offline resources, Compete compiled a list of nearly 1,000 Destination Marketing Organization (DMO) websites,
promoting leisure destinations at the city, region, state and national level
Methodology:
• Compete segmented and evaluated the actions of OTA package bookers who visited a known Destination Marketing Organization website at
some point during the 45 days prior to booking. Specifically, Compete evaluated the frequency and timing of category and site-specific
visitation, same-session cross visitation, billboard effect of DMO visitation, and sample paths to purchase.
• The results were evaluated to understand consumer usage of different sites and site categories throughout the vacation package shopping
cycle.
2

3. Package Bookers Consume a Lot of Travel
Content, Especially the Week of Booking
• Travel content consumption the week of a package booking more than doubles the prior week’s volume
Average Travel Site Visits per Week
(Number of travel sites visited per week by the average segment member, Oct’12-Mar’13 aggregate)
Number of visits to travel sites
made by package bookers
45 days before booking
38
15.5
2.5
3
3.4
5 Weeks Out
4 Weeks Out
3 Weeks Out
5.2
2 Weeks Out
6.9
1 Week Out
Week of Booking
Read as: The average segment member makes 15.5 visits to travel sites in the week leading up to the package booking
*Same sites counted only once per session in visits figure; visitation to same site
during a different session will be counted as a separate visit
3

4. OTAs Account for Nearly Half of All Travel Visits*
While OTAs dominate the pre-booking research landscape, DMO share of travel visits has jumped
30% since 2010 (to 6.4% in recent months)
Share of Visits by Travel Category
(Share of segment’s total travel visits claimed by each travel category, Oct’12-Mar’13 aggregate)
4.0%
8.2%
OTA
Planning and Reviews
Meta
1.7%
1.0%
11.2%
47.2%
Lead-Gen
Hotel Supplier
Read as: 47% of all visits to Travel
Sites made by segment members
were attributed to OTAs
DMO
6.4%
Cruise Line
Car Rental
Airline Supplier
4.1%
4.7%
Vacation Packagers
Other
4.7% 6.8%
4

5. OTAs Are Used for More than Just Last
Minute Price Comparison
• Only 31% of all visits to OTAs the week of a package booking occur the same day as the booking
• This implies a lot of additional research is being conducted on these sites
Average OTA Visits per Week
(Number of visits to OTAs per week by the average segment member, Oct’12-Mar’13 aggregate)
Number of visits to OTAs
made by package bookers
45 days before booking
18
8
1
1.1
1.3
2.6
5 Weeks Out 4 Weeks Out 3 Weeks Out 2 Weeks Out
3.3
2.8
Day of
Booking
1 Week Out
Week of
Booking
Read as: average segment member visited OTA sites 8x in the week leading up to booking, with a 1/3rd on the same day
5

6. In Travel Content Consumption the OTA Category is Still
the Clear Leader
The gap between OTA & other Travel categories exists from the beginning, but increases significantly the closer you get to the booking
Average Visits to Travel Categories per Week
(Average visits per visitor to sites within each category, by week , Oct’12-Mar’13 aggregate)
5 Weeks Out
4 Weeks Out
0.3 0.2
0.4
0.2 0.1 0.2 0.2
Meta: Kayak
Lead-Gen: Travelzoo, BookingBuddy
Planning/Review: TripAdvisor
2 Weeks Out
1 Week Out
1.3
1.1
1.0
0.1 0.0
3 Weeks Out
3.3
2.6
0.4
0.4
0.1 0.1
0.3
0.4
0.3 0.2 0.4 0.3 0.5
Week of Booking
8.0
0.8
0.8
0.7
1.0
0.3 0.4 0.3 0.5
0.8
Meta
Lead-Gen
DMO
Planning & Reviews
Airline Supplier
OTA
1.6
6

7. Expedia Continues to Lead the OTA Set
in Share of Visits
Share of OTA Visits by Brand
(Within competitive set, share of segment’s OTA visits captured by each brand, Oct’12-Mar’13 aggregate)
3.9%
3.5%
Expedia
Travelocity
15.4%
31.4%
Hotels.com
Hotwire
Orbitz
14.1%
9.2%
Priceline
17.6%
Read as: 31.4% of the segment’s visits
to major OTA brand sites were to
Expedia.com
Booking.com
Cheaptickets
5.0%
7

8. Travel Content Consumption Drives Growth in
Overall Internet Usage for Segment Members
In general, as people get closer to booking their package, their overall internet usage increases
slightly, but nowhere near as much as their Travel content consumption
Non-Travel Site Visitation Per Day
(Website visits per day by average segment member to travel sites, non-travel sites, total, Oct’12-Mar’13 aggregate)
35%
12
30%
10
25%
8
20%
6
15%
4
10%
2
5%
0
45 days out
40
35
30
Total Non-Travel
25
20
Total Travel
15
10
5
Travel as % of Total
Visits per Day per Segment Member
14
0%
0 (same day)
Travel as % of Total (right)
Read as: On the day of the booking, segment members made an average 16.4
website visits, 30% of which were to travel sites
8

9. Despite Consistently Strong Retail Visitation, No Category
Touches Travel in the Days Leading Up to the Booking
• Amongst the monitored categories, Retail dominates the set up to about 3 weeks prior to booking
• Travel consumption spikes at the same time and doesn’t let up
Category Visit Intensity Over Time
(Share of visits made to each category of websites , Oct’12-Mar’13 aggregate)
60%
50%
40%
30%
20%
10%
0%
5 Weeks Out
4 Weeks Out
3 Weeks Out
Travel
2 Weeks Out
Retail
1 Week Out
Financial_Services
Week of Booking
Week After
Booking
Telecommunications
2 Weeks After
3 Weeks After
4 Weeks After
Automotive
Read as: In the week leading up to the package
booking, Travel sites account for 55% of visits to
the list of comparison site categories
9

10. In the 45 Days Leading Up to a Package Booking, Retail
Sites are Visited Almost as Frequently as Travel Sites
As segment members research their vacations, retail sites become common hangouts, even more so
than banking or cell carrier sites
Average Category Visits per Booker in Aggregate
(Number of visits made to each category of websites by the average segment member, Oct’12-Mar’13 aggregate)
37.9
36.6
20.9
Read as: the average segment
member visited a retail website
36.6 times in the 45 days leading
up to their package booking
20.5
2.1
Travel
Retail
Financial Services
Telecommunications
Automotive
10

11. Despite Consistently Strong Retail Visitation, No Category
Touches Travel in the Days Leading Up to the Booking
• Amongst the monitored categories, Retail dominates the set up to about 3 weeks prior to booking
• Travel consumption spikes at the same time and doesn’t let up
Category Visit Intensity Over Time
(Share of visits made to each category of websites , Oct’12-Mar’13 aggregate)
60%
Read as: In the week leading up to
the package booking, Travel sites
account for 55% of visits to the list
of comparison site categories
50%
40%
30%
Travel
20%
Retail
10%
Financial_Services
Telecommunications
0%
5 Weeks Out
4 Weeks Out
3 Weeks Out
2 Weeks Out
1 Week Out
Week of Booking
Automotive
11

12. Despite Consistently Strong Retail Visitation, No Category
Touches Travel in the Days Leading Up to the Booking
• Amongst the monitored categories, Retail dominates the set up to about 3 weeks prior to booking
• Travel consumption spikes at the same time and doesn’t let up
Travel Visit Intensity Over Time
(Share of visits made to travel websites , Oct’12-Mar’13 aggregate)
55%
60%
50%
37%
40%
30%
30%
20%
18%
18%
5 Weeks Out
4 Weeks Out
22%
10%
0%
3 Weeks Out
2 Weeks Out
1 Week Out
Week of Booking
Read as: In the week leading up to the package booking, Travel sites
account for 55% of visits to the list of comparison site categories
12

13. Despite Consistently Strong Retail Visitation, No Category
Touches Travel in the Days Leading Up to the Booking
• Amongst the monitored categories, Retail dominates the set up to about 3 weeks prior to booking
• Travel consumption spikes at the same time and doesn’t let up
Retail Visit Intensity Over Time
(Share of visits made to Retail websites , Oct’12-Mar’13 aggregate)
45%
40%
36%
40%
36%
35%
33%
27%
30%
Read as: In the week leading up to
the package booking, Travel sites
account for 55% of visits to the list
of comparison site categories
20%
25%
20%
15%
10%
5%
0%
5 Weeks Out
4 Weeks Out
3 Weeks Out
2 Weeks Out
1 Week Out
Week of Booking
13

14. Despite Consistently Strong Retail Visitation, No Category
Touches Travel in the Days Leading Up to the Booking
• Amongst the monitored categories, Retail dominates the set up to about 3 weeks prior to booking
• Travel consumption spikes at the same time and doesn’t let up
Financial Services Visit Intensity Over Time
(Share of visits made to financial services websites , Oct’12-Mar’13 aggregate)
25%
21%
21%
20%
20%
18%
17%
Read as: In the week leading up to
the package booking, Travel sites
account for 55% of visits to the list
of comparison site categories
13%
15%
10%
5%
0%
5 Weeks Out
4 Weeks Out
3 Weeks Out
2 Weeks Out
1 Week Out
Week of Booking
14

15. Despite Consistently Strong Retail Visitation, No Category
Touches Travel in the Days Leading Up to the Booking
• Amongst the monitored categories, Retail dominates the set up to about 3 weeks prior to booking
• Travel consumption spikes at the same time and doesn’t let up
Telecommunications Visit Intensity Over Time
(Share of visits made Telecommunications websites , Oct’12-Mar’13 aggregate)
25%
23%
19%
20%
20%
18%
18%
15%
Read as: In the week leading up to
the package booking, Travel sites
account for 55% of visits to the list
of comparison site categories
11%
10%
5%
0%
5 Weeks Out
4 Weeks Out
3 Weeks Out
2 Weeks Out
1 Week Out
Week of Booking
15

16. Despite Consistently Strong Retail Visitation, No Category
Touches Travel in the Days Leading Up to the Booking
• Amongst the monitored categories, Retail dominates the set up to about 3 weeks prior to booking
• Travel consumption spikes at the same time and doesn’t let up
Automotive Visit Intensity Over Time
(Share of visits made to Automotive websites , Oct’12-Mar’13 aggregate)
3%
Read as: In the week leading up to
the package booking, Travel sites
account for 55% of visits to the list
of comparison site categories
3%
2%
2%
1%
1%
0%
5 Weeks Out
4 Weeks Out
3 Weeks Out
2 Weeks Out
1 Week Out
Week of Booking
16

17. Billboard Effect of DMO Visitation
There are periods within the 45 path to purchase where DMO visitation seems to positively impact conversion.
Billboard Effect of DMO Visitation
(Conversion calculated by the day the DMO was first visited, Oct’12-Mar’13 aggregate)
Read as: Of people who check DMO sites prior to visiting an OTA package path,
those who do so 9-24 days in advance of the package path visit convert 32%
higher.
7%
6%
Day 24 --> Day 9
5%
4%
3%
2%
1%
2.2%
OTA pkg path conversion line for those visiting DMOs
1
2
3
4
5
0 (Same Day)
OTA pkg path conversion for those who visited a DMO, by day of first DMO visit
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45 days out
0%
17

18. Sample DMO/OTA Cross-Shop Session
Start of Session:
Comcast.net (2
pages)
TheRoot.com
(6 pages)
WonderWall.com
(2 pages)
MemphisTravel.com
(11 pages)
YouTube.com
(1 page)
Live.com
(11 pages)
MSN.com
(5 pages)
PNC.com
(3 pages)
Expedia.com (53
pages, searched
flight then pkg)
Elvis.com
(6 pages)
CCHNet.net
(16 pages)
Facebook.com
(8 pages)
Facebook.com
(9 pages)
AmericanQueenStea
mboatCompany.com
(21 pages)
Continued 
Facebook.com
(9 pages)
CCHNet.com
(29 pages)
Inbox.com
(9 pages)
Answers.com
(2 pages)
PNC.com
(1 page)
Live.com
(23 pages)
VisitMusicCity.com
(11 pages)
MemphisTravel.com
(6 pages)
Retail
Travel
DMO
Inbox.com
(3 pages)
Comcast.net
(7 pages)
YouTube.com
(1 page)
Elvis.com
(1 page)
Weather
18

19. Sample DMO/OTA Cross-Shop Session
 Continued
Expedia.com (88
pages, searched
Memphis pkgs,
viewed multiple
hotel infopages)
Comcast.net
(4 pages)
PeabodyHotels.com
(1 page)
MadisonHotel
Memphis.com
(9 pages)
TripAdvisor.com
(20 pages)
MadisonHotelMemp
his.com
(7 pages)
MadisonHotel
Memphis.com
(4 pages)
Hotels-andDiscounts.com
(2 pages)
HomeAway.com
(6 pages)
Expedia.com
(2 pages)
TheMadison
Hotel.com
(2 pages)
PeabodyHotels.com
(3 pages)
HotelsOne.com
(7 pages)
Comcast.net
(2 pages)
TripAdvisor
(21 pages)
ThePeabody
Galleria.com
(1 page)
Kayak.com
(2 pages)
Hilton.com
(2 pages)
Comcast.net
(5 pages)
Peabody
Memphis.com
(5 pages)
Retail
CheapCaribbean.com
(2 pages)
Inbox.com
(6 pages)
Travel
DMO
HomeAway.com
(26 pages)
Expedia.com (10
pages, viewed
Peabody Memphis
and Hotel Madison)
Weather
Hotels.com
(3 pages)
TripAdvisor.com
(6 pages)
19

20. Sample 45 Day Path to Purchase
DAY 41
•
•
•
•
•
•
•
•
•
•
•
•
•
•
ontariotravel.net
niagarafallstourism.com (11 pages)
viator.com
kayak.com
expedia.com
aaa.com
rodewayinn.com
choicehotels.com
mapquest.com
frommers.com
marinelandcanada.com
cliftonhill.com
marineland.ca
secure-res.com
DAY 28
•
•
•
•
•
•
•
google.com
youtube.com (11 pages)
makemytrip.com (16 pages)
google.com
britishairways.com
google.com
ypmate.com
DAY 27
•
•
•
•
•
google.com
expedia.com (18 pages)
tripadvisor.com
go.com
go.com
20

21. Sample 45 Day Path to Purchase
DAY 26
•
•
•
•
•
•
•
•
google.com
garmin.com (75 pages)
google.com
nbcsports.com
garmin.com (10 pages)
google.com
nbc.com
nbcsports.com
DAY 25
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
google.com
expedia.com (14 pages)
garmin.com (10 pages)
google.com
expedia.com (11 pages)
fling.com
aaa.com
google.com (13 pages)
expedia.com
orbitz.com
hotels.com
hotwire.com
sheratonfourpointsniagarafalls.com
guestserve.com
aaa.com
(Continued)
DAY 22
•
•
•
•
•
•
•
•
•
•
•
•
•
google.com (21 pages)
expedia.ca
expedia.com (24 pages)
hotelsone.com
oakeshotel.com
tripadvisor.com
fourpoints.com
guestserve.com
sheratonfourpointsniagarafalls.com
starwoodhotels.com
northshore-bank.com
secureinternetbank.com
patientgateway.org
21

22. Sample 45 Day Path to Purchase
DAY 21
•
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•
•
•
•
•
•
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•
•
•
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•
•
•
•
•
•
•
google.com
live.com
easternbank.com
msn.com
travelconfidently.com
google.com
google.com (12 pages)
easternbank.com
facebook.com (49 pages)
tripadvisor.com
distancebetweencities.net
travelmath.com
igougo.com
mapquest.com (10 pages)
live.com
aaa.com
verizon.net
tribalfusion.com
msn.com
squidoo.com
→
DAY 21 (continued)
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
→
google.com (10 pages)
frommers.com
bing.com
hotwire.com
senecaniagaracasino.com
kayak.com
ihotelier.com
hotelclub.com
microsoft.com
canadianhotelguide.com
radisson.com
expedia.com
hotwire.com
google.com
travelmath.com
radisson.com
hotelclub.com
hotwire.com
google.com
yahoo.com
mapquest.com
buffalonavalpark.org
(Continued)
DAY 20
•
•
•
•
•
•
•
•
•
•
•
•
google.com
quibids.com
youtube.com
google.com (17 pages)
mapquest.com (41 pages)
frommers.com
yahoo.com
lonelyplanet.com
yelp.com
roadtripamerica.com
visitniagaracanada.com (10 pages)
buffalonavalpark.org
22

23. Sample 45 Day Path to Purchase
DAY 18
•
•
•
•
•
•
•
•
•
•
•
•
google.com
youtube.com
google.com
expedia.com (16 pages)
google.com (11 pages)
hotelclub.com (13 pages)
tripadvisor.com
guestserve.com
sheratonfourpointsniagarafalls.com
daysinnfallsviewhotel.com
easytobook.com
priceline.com
DAY 17
•
•
•
•
mapquest.com (37 pages)
google.com
daysinnfallsviewhotel.com
live.com (11 pages)
(Continued)
DAY 16
•
•
•
•
•
•
•
•
google.com
timeanddate.com
daysinnfallsviewhotel.com
garmin.com (28 pages)
startec.com
garmincdn.com
google.com
garmin.com (43 pages)
23

24. Sample 45 Day Path to Purchase
DAY 14
•
•
•
•
•
google.ca
facebook.com
google.ca
marinelandcanada.com
maidofthemist.com
DAY 12
• google.ca (18 pages)
• casaniagara.com
(Continued)
DAY 10
• google.com
• facebook.com (36 pages)
• redbullstratos.com
24

25. Sample 45 Day Path to Purchase
DAY 4
•
•
•
•
•
google.com
expedia.com (17 pages)
jetblue.com
travelocity.com (13 pages)
tripadvisor.com
DAY 3
•
•
•
•
•
•
•
google.com (17 pages)
expedia.com (53 pages)
vacationstogo.com (15 pages)
tripadvisor.com
royalcaribbean.com (24 pages)
tampacruiseguide.com
shoreexcursionsgroup.com
(Continued)
DAY 2
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
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•
•
•
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•
google.com (16 pages)
cheapcaribbean.com
libertytravel.com
orbitz.com
allinclusiveexperts.com
bahamas.com
expedia.com (19 pages)
travelpn.com
breezes.com
resortvacationstogo.com
bookit.com
youtube.com
sandals.com
cheapcaribbean.com
beachvacationstoday.com (9 pages)
paradiseislandbahama.com
ihotelier.com
orbitz.com
libertytravel.com
allinclusiveexperts.com
orbitz.com
google.com (28 pages)
live.com (43 pages)
→
25

26. Sample 45 Day Path to Purchase
DAY 2 (continued)
•
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•
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→
northshore-bank.com
adp.com
diplomaguide.com
northshore-bank.com
paradiseislandriu.com
riu.com
Vaxvacationaccess.com
orbitz.com (19 pages)
paradiseislandbahama.com
ihotelier.com
expedia.com (11 pages)
bookit.com (17 pages)
livingsocial.com
beaches.com
yahoo.com
sandals.com
all-inclusiveresort.com (23 pages)
familyvacationcritic.com
jetblue.com (10 pages)
livingsocial.com
cheapcaribbean.com
orbitz.com
expedia.com
DAY 1
•
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•
•
google.com
live.com
msn.com (11 pages)
google.com
calculator-converter.com
escapeartist.com
metricamerica.com
facebook.com (31 pages)
google.com
walgreens.com (20 pages)
live.com (33 pages)
msn.com
facebook.com (43 pages)
google.com (20 pages)
youtube.com (15 pages)
grandvelas.com
verizon.net
cancuncasa.com
cancun.travel
live.com
dolphindiscovery.com
tripadvisor.com
(Continued)
SAME DAY
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google.com
nassauparadiseisland.com
sheraton.com
sheratonnassau.com
cheapcaribbean.com (27 pages)
yahoo.com
live.com
cancun.travel
rivieramaya.com
live.com (12 pages)
cheapcaribbean.com (13 pages)
google.com (12 pages)
tripadvisor.com
msn.com
vrxstudios.com
rivieramaya.com
yahoo.com
scubaplaya.com
expedia.com
cheapcaribbean.com (29 pages)
google.com
tripadvisor.com
yahoo.com
expedia.com (14 pages)
yahoo.com
google.com (19 pages)
expedia.com (106 pages, then booked a Cancun Pkg)
26