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The American Traveler - Summer 2011
1. @PhilipGrote @comScore 1 #ETS11
the American
Traveler/summer 2011
sentiment | flash sales | mobile | search | social
comScore 2011
2. @PhilipGrote @comScore 2 #ETS11
Retail & Travel
Online Spending Trend
Retail @ $87b, 13%!
January to July 2011 vs. year ago
Travel @ $58b, 11%!
January to July 2011 vs. year ago
-7
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
source: comScore eCommerce data, 2002 to July 2011
3. @PhilipGrote @comScore 3 #ETS11
117,000 new jobs were added in July 2011 : 139,296,000
source: National Bureau of Economic Research, Bureau of Labor Statistics
4. @PhilipGrote @comScore 4 #ETS11
November 2007: 146,584,000
117,000 new jobs were added in July 2011 : 139,296,000
at the rate of July 2011 it would take 5 ½ years
to get the number of jobs up to pre-recession levels!
source: National Bureau of Economic Research, Bureau of Labor Statistics
5. @PhilipGrote @comScore 5 #ETS11
Travelers
58% of travelers are cutting back!
Q: In the past 3 months, have you been cutting back on your travel expenses?
5pts vs. year ago
source: comScore Survey, Q2 2011
6. @PhilipGrote @comScore 6 #ETS11
Travelers who are cutting back
62% do so by staying closer to home!
Q: Please indicate all the ways in which you are cutting back on travel expenses.
[x] Traveling closer to home | from 9pts vs. year ago
source: comScore Survey, Q2 2011
7. @PhilipGrote @comScore 7 #ETS11
Travelers who are cutting back
41% book cheaper accommodations!
Q: Please indicate all the ways in which you are cutting back on travel expenses.
[x] Staying at less expensive hotels | 13pts vs year ago
source: comScore Survey, Q2 2011
8. @PhilipGrote @comScore 8 #ETS11
Travelers who are cutting back
40% take shorter trips!
Q: Please indicate all the ways in which you are cutting back on travel expenses.
[x] Spending fewer days at my destinations | 6pts vs. year ago
source: comScore Survey, Q2 2011
9. @PhilipGrote @comScore 9 #ETS11
Travelers are cutting back on travel expenses by staying:
Closer, Cheaper, Shorter!
source: comScore Survey, Q2 2011
10. @PhilipGrote @comScore 10 #ETS11
Online Travel Agencies (OTAs) vs. Suppliers: Dollar Share
OTAs
OTAs
36.2%
2%
55.8%
4%
Airlines
Hotels
OTAs gain ground high-margin product!
*share of Hotel $ 4%, Q2 2011 vs. year ago
source: comScore Travel CPR, Q2 2011
11. @PhilipGrote @comScore 11 #ETS11
Expedia vs. Online Travel Agencies: Dollar Share
Hotwire
5.7% Expedia
Hotels
6.5%
CheapTickets
35.8%
6.8% 35.2%
Travelocity 22.6%
13.0%
Orbitz 52.2%
16.2%
Every 3rd Dollar* Went to Expedia!
*spent at an online travel agency in Q2 2011
Priceline
16.6%
source: comScore Travel CPR, Q2 2011
13. @PhilipGrote @comScore 13 #ETS11
$200 Room Rate
-$100 50% Deal Discount
-$ 50 50% to Deal Site
-$ 40 Operating Cost
$ 10 Profit @ $190 Cost*
Do the Math!
Only if you know your customer acquisition
cost can you tell if it’s a good deal to you.
* Other cost to consider: commoditization, price point degradation,
operational costs of handling a new channel, displacement costs
Example taken from http://www.tnooz.com/2011/06/22/news/expedia-what-groupon-getaways-with-expedia-means-for-hotels/
14. @PhilipGrote @comScore 14 #ETS11
Deal Sites Lose Momentum…
…likely due to deal fatigue and signs of recovery. August 2011
12,387,095
Groupon
August 2010
6,507,924
6,115,866
LivingSocial
August 2009 3,665,418
591,729
155,707
comScore, Media Metrix, August 2009 to August 2011
15. @PhilipGrote @comScore 15 #ETS11
Deal Sites Average Audience Overlap
with Top 15* Travel Sites
*Based on Unique Visitors August 2011, US Desktop Groupon
LivingSocial
14.3%
SniqueAway 7.7%
(or JetSetter)
0.7%
Minimal Audience Overlap suggests that
Deal Sites Reach Different Travelers!
source: comScore MediaMetrix, August 2011
16. @PhilipGrote @comScore 16 #ETS11
Check Demographics!
Only if you reach your target customer (or new segments)
can it be a good deal to you.
18. Is this Channel right for me?
[ ] What is my cost per acquisition?
[ ] Have I exploited all lower cost channels?
Do I have the right Partner?
[ ] What do my peers say?
[ ] Do our customer demographics match?
[ ] Are black out dates allowed?
[ ] Can they target specific regions and segments?
[ ] Do they curate the deal to align with my image?
Do I have a Plan?
[ ] Loyal Customers can get offended. What is my offer for them?
[ ] Deal seekers are loyal to deal sites. What is my retention plan?
[ ] How will I track success for post-mortem analysis?
19. @PhilipGrote @comScore 19 #ETS11
Chose the right partner at the right time
Deal Sites can Make or Break You!
comScore 2011
20. @PhilipGrote @comScore 20 #ETS11
U.S. Mobile Phone Install Base
Every 3rd phone is a smartphone!
35% of all cell phones currently in use are smartphones!
source: comScore MobiLens, 3 months ending July 2011
21. @PhilipGrote @comScore 21 #ETS11
US Internet traffic
4.5%
SmartPhones
from
source: comScore Device Essentials, July 2011
22. @PhilipGrote @comScore 22 #ETS11
U.S. Mobile Phone Purchasing Trend
Every 2nd NEW phone is a smartphone!
50.4% of new cell phones bought are smartphones!
source: comScore MobiLens, 3 months ending July 2011
23.
24. @PhilipGrote @comScore 24 #ETS11
The Last Adoption Barrier Falls!
8% of new Smartphones now are Pay-As-You-Go Phones!
source: comScore MobiLens, 3 months ending July 2011
25. @PhilipGrote @comScore 25 #ETS11
U.S. Smartphone
Browser Activity
insurance services 3.9%
men's magazine content 4.5%
stock trading 4.6%
horoscopes 5.1%
automotive services 5.1%
Home/Lifestyle 5.3%
Beauty/Fashion/Style 6.8%
kids and family entertainment 6.9%
real estate listings 7.0%
6,920,805 people use travel services!
dating service 7.0%
adult entertainment services from July 2010!!
42% 7.1%
comics or humor 7.9%
travel service 8.4%
health information 8.9%
electronic payments 9.1%
television guides 9.2%
gaming information 9.3% comScore MobiLens, 3 months ending March 2011, n=32,311
source:
26. auction sites 9.8% @PhilipGrote @comScore 26 #ETS11
credit cards 10.2%
U.S. Smartphone
Food/Recipes/Cooking Tips 10.2%
business directories 12.5%
Browser Activity
online retail 12.9%
classifieds 13.8%
restaurant information 16.0%
stock quotes or financial news 16.9%
bank accounts 17.1%
Search is the #1 Browser Activity!
movie information 17.9%
36,674,272 peoplenewstech search, 58% from 17.9%2010
July
photo or video sharing service 18.0%
maps 18.0%
general reference 19.8%
sports information 22.8%
entertainment news 24.7%
weather 26.3%
news 32.6%
social networking 34.5%
search
search 44.6%
source: comScore MobiLens, 3 months ending July 2011
27. @PhilipGrote @comScore 27 #ETS11
(619 ) 246-6228
Best Practice Mobile Experience:
Connect Desktop Mobile!
28. @PhilipGrote @comScore 28 #ETS11
Best Practice Mobile Experience:
Connect Mobile Mobile Web / App!
29. @PhilipGrote @comScore 29 #ETS11
Tripadvisor.com
Best Practice Mobile Experience:
Connect Mobile Web App!
30. @PhilipGrote @comScore 30 #ETS11
American Airlines
Best Practice Mobile Experience:
Connect Mobile Search Mobile Web / App!
31. @PhilipGrote @comScore 31 #ETS11
100% of Smartphone Platforms
- 2%, Symbian
- 2%, Palm
- 6%, Microsoft
- 22%, RIM
- 42%, Google
27%, Apple
No, it is not just Apple!
Google 6pts | RIM 5pts | Apple 1pt vs. year ago!
source: comScore MobiLens, 3 months ending July 2011
32. @PhilipGrote @comScore 32 #ETS11
Top 10 Smartphones in the Market…
…Apple owns 27% of the market!
#1 11.4% iPhone 4
#2 8.6% iPhone 3GS
#3 4.6% iPhone 3G
#8 2.3% iPhone (1st Gen)
#4 3.6% BlackBerry Curve 8530
#10 1.7% Blackberry Curve 8330
#5 3.2% HTC EVO 4G
#6 2.7% Motorola Droid X
#7 2.5% Motorola Droid
#9 2.2% HTC Droid Incredible
source: comScore MobiLens, 3 months ending July 2011
33. @PhilipGrote @comScore 33 #ETS11
It’s not just an adoption, it’s a migration:
Double Down On Mobile!
comScore 2011
34. @PhilipGrote @comScore 34 #ETS11
Travel searches
411,117,066 each month
Paid Search in Travel
Each travel search returns 5 paid results
Search Referrals
17% come from paid search
Travel Searches at the Core 5 Engines.
Google, Bing, Yahoo, AOL, Ask
source: comScore Search Planner, July 2011 vs. July 2010
39. @PhilipGrote @comScore 39 #ETS11
“ …it is about using social media to
harness amplify and
the travel experience.
”
- @DaveHanley, Principal @BanyanBranch
45. @PhilipGrote @comScore 45 #ETS11
Social Media Sites
Unique Visitors and Growth (US Desktop)
Social Media is still growing!
August 2011 vs. year ago
42%
33 million
11%
126 million
10%
162 million
source: comScore MediaMetrix, August 2010 vs. August 2011
46. @PhilipGrote @comScore 46 #ETS11
Social Media Sites Average Audience Overlap
with Top 15* Travel Sites
*Based on Unique Visitors August 2011, US Desktop
85.5%
64.7%
You can reach more than
22.4%
85% of your customers on Facebook!
source: comScore MediaMetrix, August 2011
47. @PhilipGrote @comScore 47 #ETS11
Benefit from Word of Mouth:
[] Enable One-Click Amplification!
Engage with your customer on their terms: Phone, email,
[] and Social Media.
Whether you like it or not – they are already talking about you!
[] Start Listening NOW!