HDS - Hotel Digital Strategy, profile picture
Uploaded byHDS - Hotel Digital Strategy
405 views

Travel distribution & marketing barometer may 2011

The Travel Distribution & Marketing Barometer edition 1, published in May 2011, presents insights from a global survey of 550 travel executives conducted between January and February 2011, focusing on distribution and marketing performance in the travel industry. It aims to be a continuous research study providing valuable data for understanding current and future trends in travel distribution and marketing. Initial findings reveal varied responses from different regions, highlighting strengths and weaknesses in travel distribution channels and the impact of online and mobile bookings.

Embed presentation

Downloaded 13 times
1 / 120
2 / 120
3 / 120
4 / 120
5 / 120
6 / 120
7 / 120
8 / 120
9 / 120
10 / 120
11 / 120
12 / 120
13 / 120
14 / 120
15 / 120
16 / 120
17 / 120
18 / 120
19 / 120
20 / 120
21 / 120
22 / 120
23 / 120
24 / 120
25 / 120
26 / 120
27 / 120
28 / 120
29 / 120
30 / 120
31 / 120
32 / 120
33 / 120
34 / 120
35 / 120
36 / 120
37 / 120
38 / 120
39 / 120
40 / 120
41 / 120
42 / 120
43 / 120
44 / 120
45 / 120
46 / 120
47 / 120
48 / 120
49 / 120
50 / 120
51 / 120
52 / 120
53 / 120
54 / 120
55 / 120
56 / 120
57 / 120
58 / 120
59 / 120
60 / 120
61 / 120
62 / 120
63 / 120
64 / 120
65 / 120
66 / 120
67 / 120
68 / 120
69 / 120
70 / 120
71 / 120
72 / 120
73 / 120
74 / 120
75 / 120
76 / 120
77 / 120
78 / 120
79 / 120
80 / 120
81 / 120
82 / 120
83 / 120
84 / 120
85 / 120
86 / 120
87 / 120
88 / 120
89 / 120
90 / 120
91 / 120
92 / 120
93 / 120
94 / 120
95 / 120
96 / 120
97 / 120
98 / 120
99 / 120
100 / 120
101 / 120
102 / 120
103 / 120
104 / 120
105 / 120
106 / 120
107 / 120
108 / 120
109 / 120
110 / 120
111 / 120
112 / 120
113 / 120
114 / 120
115 / 120
116 / 120
117 / 120
118 / 120
119 / 120
120 / 120
Travel  Distribu.on  &  Marke.ng  Barometer Edi.on  1 May  2011  
About  the  Travel  Distribu.on  &  Marke.ng  Barometer   EyeforTravel  conducted  a  global  survey  amongst  key  travel  execu7ves  in  January  to  February  2011  with  the  aim  of   inves7ga7ng  distribu7on  and  marke7ng  performance  and  perspec7ves  for  the  quarter.  This  is  the  first  edi7on  of  the   Travel  Distribu7on  &  Marke7ng  Barometer.  It’s  intended  to  be  an  ongoing  research  study  designed  to  act  as  a   barometer  for  the  global  travel  industry  and  provide  richer  intelligence  to  enable  a  greater  understanding  of  current   and  future  distribu7on  and  marke7ng  trends.  An  online  survey  will  con7nue  to  be  conducted  to  gather  up  to  the   minute  opinions  and  track  ac7vi7es  of  travel  companies.  The  results  will  produce  invaluable  data  and  allow  a   consistent  and  compara7ve  analysis  of  trends  across  sectors  and  regions. This  edi7on  was  completed  by  550  different  travel  suppliers  and  intermediaries  varying  in  size  and  sector  across  the   world.  Below  we  can  view  the  number  of  companies  that  responded  from  each  country  involved  in  order  to  help   understand  the  weigh7ng  of  our  results.  It  is  evident  that  some  regions  (such  as  Africa)  are  weaker  in  terms  of  volumes   and  we  want  to  point  out  that  the  findings  for  this  region  par7cularly  should  be  referred  to  as  interes7ng  but  insight   rather  than  a  sound  sta7s7cal  representa7on.        “What  country  are  YOU  based  in?” United  States 117 United  Kingdom 67 India 59 Australia 33 China 23 Singapore 23 Spain 22 Netherlands 20 Greece 18 France 11 Germany 11 Thailand 11 Italy 9 Brazil 7 Indonesia 7 Russian  Federation 7 Switzerland 7 Ireland  {Republic} 6 Norway 6 Portugal 6 Belgium 5 Japan 5 Malaysia 5 Philippines 5 Argentina 4 Bulgaria 4 Colombia 3 Cyprus 3 Denmark 3 Malta 3 New  Zealand 3 Turkey 3 Afghanistan 2 Austria 2 Bangladesh 2 Canada 2 Chile 2 Lithuania 2 Mauritius 2 Nepal 2 Pakistan 2 Sri  Lanka 2 Barbados 1 Costa  Rica 1 Croatia 1 Fiji 1 Finland 1 Hungary 1 Korea  South 1 Mexico 1 Slovenia 1 Sweden 1 Taiwan 1 Tanzania 1 United  Arab  Emirates 1 Uzbekistan 1 0 38 75 113 150
The  first  chart  below  explains  the  involvement  of  our  respondents  globally  in  terms  of  geographical  regions.  For   example,  56%  of  companies  involved  in  our  survey  have  offices  in  Western  Europe.       Does  the  company  you  represent  have  offices  in  any  of  the  following  regions  (including  your  own)? West  Europe 56% East  Europe 25% North  America 45% Latin  America 20% Australia/New  Zealand 26% Asia  &  Pacific 43% Middle  East 21% Africa 15% 0% 15% 30% 45% 60% This  second  chart  indicates  the  actual  market  responsibility  of  our  respondents  and  while  we  refer  to  the  specific   loca7on  (country)  in  which  a  respondent  is  permanently  based  (above),  we  are  also  interested  in  the  regions  they  are   responsible  for  targe7ng  on  the  basis  that  this  is  likely  to  influence  their  ac7vi7es  and  perspec7ves.  We  can  see  below   for  example  that  40%  are  targe7ng  Western  European  markets  whereas  56%  have  offices  in  that  region  (above),  but   also  35%  selected  ‘global’  which  would  include  all  markets.  Overall,  our  survey  results  present  a  good  representa7on   for  all  regions  throughout  the  world  which  has  allowed  us  to  offer  our  readers  a  very  interes7ng  picture  globally.     Which  regions  /  markets  is  THE  OFFICE  YOU  ARE  REPRESENTING  responsible  for  targeting? Global 35% West  Europe 40% East  Europe 22% North  America 31% Latin  America 13% Asia  /  Pacific 28% Australia/New  Zealand 16% Middle  East 14% Africa 9% 0% 10% 20% 30% 40%
Contents   SecOon  1:     Distribu(on  Channels   SecOon  2:     Online  Penetra(on  (for  suppliers) SecOon  3:     Direct  vs  Indirect  Distribu(on  (for  suppliers)   SecOon  4:     Current  Sen(ment  Towards  the  OTA-­‐Supplier  Partnership   SecOon  5:     Sources  of  Online  Traffic  In  Travel   SecOon  6:     Marke(ng  Channels   SecOon  7:     Marke(ng  Budgets   SecOon  8:     Online  Marke(ng  Ac(vi(es  -­‐  What’s  Working   SecOon  9:     Social  Media  Par(cipa(on   SecOon  10:     Mobile   SecOon  11:     Next  Quarter  Budgets   SecOon  12:     Biggest  Challenges   SecOon  13:     What  Has  The  Industry  Learnt  Recently? SecOon  14:     Biggest  Opportuni(es  Iden(fied SecOon  15:     Next  Big  Thing  in  Travel  Distribu(on  &  Marke(ng If  you’d  like  to  join  our  research  panel  please  contact  Tim  Gunstone:  Om@eyefortravel.com
SecOon  1:    Distribu.on  Channels  
Distribu.on  Channels Booking  Channels     Figure  x  analyses  channels  for  bookings  (volumes)  over  the  last  quarter  represen7ng  the  respondents  of  our  supplier   focussed  survey.  72%  have  experienced  an  increase  in  bookings  direct  from  their  websites  with  only  a  small  propor7on   registering  a  decline  (5%).  Bookings  direct  via  voice/call  centre  have  declined  for  20%  of  respondents  and  increased  for   29%.  42%  have  not  experienced  any  change  from  this  channel.  30%  have  experienced  an  increase  in  bookings  via   mobile  device,  52%  have  not  had  bookings  at  all  via  this  channel.  47%  have  had  an  increase  in  bookings  from  3rd   par7es,  31%  from  GDS/agency  and  24%  from  tour  operators. Figure  1:  Have  your  bookings  (volumes)  generated  via  the  following  channels  increased  or  decreased  over  the  last  3   months  (from  the  previous  quarter)? Increased About  the  same  volume Decreased No  bookings  via  this  channel Direct  from  your  website 72% 22% 5% 2% Direct  via  voice/call  centre 29% 42% 20% 10% Direct  from  a  mobile  device 30% 16% 2% 52% Third  party  Internet  channel  (e.g.  OTA) 47% 35% 9% 10% GDS/agency 31% 36% 19% 15% Tour  operator 24% 39% 22% 15% 0% 25% 50% 75% 100%     In  the  charts  below  we  have  then  explored  our  data  based  on  the  regions  that  respondents  are  responsible  for  in  order   to  inves7gate  any  interes7ng  trends  geographically.  Direct  distribu7on  from  their  websites  shows  no  major  varia7ons.   The  majority  have  experienced  an  increase  across  all  regions.  Those  represen7ng  La7n  America  register  the  highest   number  of  respondents  with  an  increase  at  79%.  It  clear  that  in  all  markets,  companies  have  either  had  an  increase  in   bookings  direct  from  their  websites  or  the  volumes  have  stayed  the  same.  The  largest  decline  across  all  regions  is   bookings  from  tour  operators.  The  GDS/agency  channel  closely  follows  but  s7ll  around  a  quarter  of  respondents  in   most  regions  have  experienced  an  increase  from  this  channel.   3rd  party  internet  channels  have  been  genera7ng  more  bookings  for  most  regions  as  well.  Most  are  hovering  around   the  50%  mark  except  La7n  America  where  36%  of  respondents  have  seen  an  increase.  Fewer  companies  from  those   represen7ng  Australia/NZ  have  experienced  a  decline  from  these  indirect  channels  in  comparisons  tother  markets.   Those  represen7ng  North  America,  Africa  and  the  Middle  East  seem  to  have  been  having  the  most  ac7vity  in  terms  of   mobile  bookings.  For  North  America  for  example,  37%  of  respondents  have  seen  an  increase  in  bookings  direct  from  a   mobile  device.  North  America  have  also  registered  a  larger  propor7on  with  an  increase  in  bookings  via  voice/call   centre  (31%).  The  biggest  decline  is  from  those  represen7ng  Eastern  Europe  (24%).
Booking  Channels  By  Region   Increased About  the  same  volume Decreased No  bookings  via  this  channel Western  Europe   Direct  from  your  website 71% 22% 7% 1%  Tour  operator   25% 34% 25% 16% GDS/agency 24% 38% 22% 16% Third  party  Internet  channel  (e.g.  OTA) 45% 35% 11% 9%  Direct  from  a  mobile  device 27% 16% 2% 55%  Direct  via  voice/call  centre 22% 44% 20% 14% 0% 25% 50% 75% 100% %  of  respondents  representing  Western  Europe Eastern  Europe   Direct  from  your  website 0% 72% 20% 8%  Tour  operator   30% 29% 25% 16% GDS/agency 26% 40% 16% 18% Third  party  Internet  channel  (e.g.  OTA) 51% 28% 8% 13%  Direct  from  a  mobile  device 29% 20% 1% 50%  Direct  via  voice/call  centre 18% 46% 24% 12% 0% 25% 50% 75% 100% Eastern  Europe North  America Direct  from  your  website 0% 76% 20% 4%  Tour  operator   21% 34% 29% 16% GDS/agency 22% 38% 21% 18% Third  party  Internet  channel  (e.g.  OTA) 38% 39% 11% 12%  Direct  from  a  mobile  device 37% 16% 1% 46%  Direct  via  voice/call  centre 31% 44% 14% 11% 0% 25% 50% 75% 100% North  America
Increased About the same volume Decreaed No bookings via this channel Australia  /  New  Zealand Direct  from  your  website 0% 78% 22%  Tour  operator   31% 29% 29% 10% GDS/agency 26% 38% 19% 17% Third  party  Internet  channel  (e.g.  OTA) 47% 36% 3% 14%  Direct  from  a  mobile  device 29% 16% 2% 53%  Direct  via  voice/call  centre 26% 47% 14% 14% 0% 25% 50% 75% 100% Australia/NZ Asia  Pacific Direct  from  your  website 69% 27% 3% 1%  Tour  operator   32% 38% 21% 9% GDS/agency 29% 36% 20% 15% Third  party  Internet  channel  (e.g.  OTA) 49% 34% 11% 5%  Direct  from  a  mobile  device 30% 19% 3% 48%  Direct  via  voice/call  centre 26% 46% 19% 9% 0% 25% 50% 75% 100% APAC Africa Direct  from  your  website 0% 77% 17% 7%  Tour  operator   27% 33% 27% 13% GDS/agency 17% 50% 23% 10% Third  party  Internet  channel  (e.g.  OTA) 53% 33% 10% 3%  Direct  from  a  mobile  device 0% 37% 17% 47%  Direct  via  voice/call  centre 20% 57% 17% 7% 0% 25% 50% 75% 100% Africa
La.n  America Direct  from  your  website 79% 15% 3%3%  Tour  operator   23% 26% 33% 18% GDS/agency 18% 41% 23% 18% Third  party  Internet  channel  (e.g.  OTA) 36% 38% 10% 15%  Direct  from  a  mobile  device 0% 28% 18% 54%  Direct  via  voice/call  centre 23% 46% 15% 15% 0% 25% 50% 75% 100% Latin  America Middle  East Direct  from  your  website 70% 22% 6% 2%  Tour  operator   30% 28% 28% 14% GDS/agency 24% 38% 18% 20% Third  party  Internet  channel  (e.g.  OTA) 44% 36% 10% 10%  Direct  from  a  mobile  device 34% 14% 4% 48%  Direct  via  voice/call  centre 20% 52% 16% 12% 0% 25% 50% 75% 100% %  Middle  Esst Booking  Channels  By  Company  Sector   Considering  movements  in  bookings  channels  based  on  company  sector  we  can  see  that  there  are  again  no  major   trends  in  this  category  between  sectors,  except  that  a  larger  propor7on  of  DMCs/tourism  boards  have  experienced  a   decline  (27%)  in  bookings  direct  from  their  website.  Cruise,  Car  Rental  and  Airline  have  registered  the  largest   propor7ons  with  an  increase  at  75%,  75%  and  73%  respec7vely.   There  are  more  varia7ons  between  sectors  when  looking  at  bookings  via  voice/call  centre.  50%  of  Cruise  have   registered  an  increase  from  this  channel,  but  on  the  other  hand  50%  have  registered  a  decline  so  there  is  certainly   some  movement  in  this  sector  and  varying  trends  between  companies.  It  is  clear  that  although  this  channel  is   declining  for  a  number  of  companies  across  all  sectors,  such  as  21%  of  Hotel  and  Other  Accommoda7on,  and  a  quarter   of  Car  rental  companies,  it  is  s7ll  an  ac7ve  channel  for  bookings.   Bookings  via  mobile  devices  are  not  common  in  any  sector,  apart  from  perhaps  Car  Rental  where  only  13%  of   respondents  have  received  no  bookings  from  mobile  at  all.  Car  Rental  are  evidently  the  most  ac7ve  in  the  mobile   space  at  the  moment  and  a  huge  75%  of  respondents  have  experienced  an  increase  from  this  channel.  Hotel  and   Airline  are  also  faring  well  with  32%  and  35%  respec7vely  registering  an  increase  in  mobile  bookings  which  is   significant.  The  largest  decline  is  in  the  DMC/tourism  board  category.      
Increased About the same volume Decreased No bookings via this channel Direct  from  Website   Tour  operator 67% 25% 6% 2% Other  accommodation 71% 13% 13% 4% Hotel 74% 22% 2%1% DMC  /  tourism  board 0% 64% 9% 27% Cruise 0% 75% 25% Car  Rental 0% 75% 25% Airline 0% 73% 19% 8% 0% 25% 50% 75% 100% %  of  respondents Direct  via  voice/call  centre Tour  operator 31% 46% 15% 8% Other  accommodation 21% 33% 21% 25% Hotel 32% 41% 21% 5% DMC  /  tourism  board 9% 55% 18% 18% Cruise 0% 50% 50% Car  Rental 0% 13% 63% 25% Airline 19% 62% 15% 4% 0% 25% 50% 75% 100% %  of  respondents Direct  from  mobile  device Tour  operator 23% 23% 2% 52% Other  accommodation 17% 17% 4% 62% Hotel 32% 14% 2% 52% DMC/tourism  board 9% 18% 18% 55% Cruise 0% 25% 25% 50% Car  Rental 0% 75% 13% 13% Airline 0% 35% 19% 46% 0% 25% 50% 75% 100% %  of  respondents
Increased About the same volume Decreased No bookings via this channel Third  party  internet  channel  (e.g.  OTA) Tour  operator 37% 27% 8% 29% Other  accommodation 50% 17% 13% 21% Hotel 54% 39% 6% 1% DMC  /  tourism  board 0% 45% 36% 18% Cruise 25% 25% 25% 25% Car  Rental 0% 38% 25% 38% Airline 58% 27% 12% 4% 0% 25% 50% 75% 100% %  of  respondents GDS/Agency Tour  operator 25% 40% 6% 29% Other  accommodation 21% 33% 21% 25% Hotel 34% 35% 24% 7% DMC  /  tourism  board 45% 27% 18% 9% Cruise 0% 50% 50% Car  Rental 13% 50% 25% 13% Airline 35% 39% 19% 8% 0% 25% 50% 75% 100% %  of  respondents Tour  Operator Other  accommodation 25% 17% 13% 46% Hotel 19% 42% 32% 6% DMC/  tourism  board 36% 18% 18% 27% Cruise 0% 50% 50% Car  Rental 0% 50% 38% 13% Airline 35% 42% 12% 12% 0% 25% 50% 75% 100% %  of  respondents
SecOon  2:    Online  Penetra.on  (for  suppliers)
Online  Distribu.on  Propor.ons  for  Suppliers   Over  the  last  quarter  and  across  all  companies  globally,  the  average  propor7on  of  total  booking  volumes  that  travel   suppliers  distributed  via  online  channels  was  41%.  As  expected  the  extent  of  online  distribu7on  varies  amongst   respondents.  While  par7cipants  were  asked  approximate  propor7ons  to  the  nearest  percent,  we  have  grouped  the   propor7ons  into  ranges  to  make  it  easier  to  iden7fy  trends.   With  reference  to  the  chart  below  we  can  see  that  7%  of  respondents  distributed  between  91%  and  100%  via  online   channels  and  9%  in  the  range  of  76%  to  90%.  That  results  in  16%  of  travel  suppliers  distribu7ng  over  ¾  of  their   products  via  online  channels  in  the  last  quarter.  19%  of  companies  distributed  between  50%  and  75%  online,  and  21%   between  30%  to  49%  online.  The  largest  group  at  29%  sit  within  11%  to  29%  range.  It  is  revealed  that  14%  rely  heavily   on  offline  channels  with  less  than  10%  of  their  product  volume  sold  online,  but  we  can  see  clearly  in  the  graph  that  a   large  propor7on  have  now  shihed  over  50%  of  their  product  distribu7on  online.         Approximately  what  proporOon  (%)  of  your  total  bookings  (volume)  were  distributed  via  online  channels  over  the   last  3  months? 14% 7% 9% 91%  -­‐  100% 76%  -­‐  90% 50%  -­‐  75%   30%  -­‐  49% 29% 19% 11%  -­‐  29% Less  then  10%   21% Looking  further  into  the  data  we  have  considered  the  varia7ons  based  on  some  of  the  top  travel  markets  looking  at   Europe  specifically  against  some  other  key  global  markets.  The  top  travel  markets  refer  to  the  specific  country  in  which   the  respondent  is  based.  The  top  band  (91%  to  100%)  is  most  dominant  amongst  UK  respondents.  A  significant  21%   fall  within  this  range.  Germany  (17%),  China  (7%),  Spain  (6%)  and  the  US  (2%)  have  also  indicated  high  dominance  of   online  channels  for  their  businesses.  On  the  other  end  of  the  scale,  China  indicates  the  dominance  of  offline  channels   with  40%  distribu7ng  less  than  10%  of  their  product  volume  online.  35%  of  Australian  respondents  and  27%  of  Indian   respondents  also  fall  within  this  range.  The  UK  illustrates  a  rela7vely  even  spread  of  online  distribu7on  propor7ons  but   edging  on  the  higher  bands  of  over  50%.  Spain  is  not  too  dissimilar  to  the  UK  but  with  a  larger  group  within  the  30%  to   49%  range.  Germany  and  France  are  dominated  by  companies  in  the  11%  to  29%  range,  Germany  also  includes  17%  at   the  top  end  of  the  scale,  but  neither  are  represen7ng  companies  with  very  low  online  distribu7on  levels.  Italy  very   evenly  falls  within  the  middle  ranges  but  with  a  compara7vely  high  propor7on  amongst  the  76%  to  90%.   100% 6% 6% 7% 2% 6% 21% 17% 9% 18% 13% 25% 13% 33% 91% - 100% 28% 75% 11% 19% 24% 76% - 90% 33% 29% 50% - 75% 25% 40% 24% 30% - 49% 50% 31% 33% 100% 31% 11% - 29% 33% 18% Less then 10% 18% 25% 50% 50% 20% 25% 40% 18% 33% 35% 27% 13% 8% 6% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% UK n y ce ly es a a il lia an az di in ai Ita at an ra Sp In Ch Br rm St st Fr Au d   Ge ite Un
Whilst  it  is  important  to  consider  the  loca7on  where  the  company  is  based,  more  importantly  it  is  relevant  to  consider   where  the  majority  of  their  customers  come  from  as  it  is  the  level  of  online  penetra7on  in  their  source  markets  and   specific  characteris7cs  that  may  have  a  real  influence  on  the  results.  It  must  however  be  realised  that  the  results  will   be  somewhat  skewed  as  this  is  not  data  in  rela7on  to  that  specific  market  only,  but  indica7ve.  For  example,  those  who   are  distribu7ng  predominantly  to  Africa  are  selling  between  11%  and  29%  via  online  channels.  Of  those  distribu7ng   predominantly  to  the  Middle  East,  21%  sell  90%  via  offline  channels.   Propor.on  Distributed  Online  Based  On  Where  Majority  Of  Customer  Come  From 100% 8% 2% 4% 2% 4% 100% 9% 3% 10% 9% 11% 9% 12% 10% 91%  -­‐  100% 14% 18% 7% 28% 76%  -­‐  90% 75% 14% 7% 21% 27% 13% 28% 23% 26% 29% 50%  -­‐  75%   50% 42% 46% 38% 30%  -­‐  49% 26% 30% 29% 29% 11%  -­‐  29% 25% Less  then  10%   21% 21% 14% 15% 15% 14% 12% 0% 0% 0% 0% 0% e e c ica ica ca d st i op op an cif Ea ri er er Af al ur ur Pa e   m m  Ze dl t  E  E  /    A  A st id ew ia es rth tin Ea M As W /N La No lia ra st Au
SecOon  3:    Direct  vs  Indirect  Distribu.on         (for  suppliers)
Direct  vs.  Indirect  Distribu.on  (Suppliers)   Travel  suppliers  distribu7ng  their  product  online  either  sell  via  direct  channels  or  via  an  intermediary  (indirect).  In  this   survey  of  all  suppliers  combined  globally  the  average  propor7on  of  direct  distribu7on  is  49%.  The  chart  below   indicates  the  varia7on  in  online  distribu7on  pamerns  amongst  respondents  for  example  14%  of  respondents  are   distribu7ng  less  than  10%  of  their  online  sales  through  direct  channels,  which  means  90%  is  sold  via  an  intermediary.   26%  of  all  respondents  are  distribu7ng  over  ¾  of  their  online  sales  direct.  When  asked  what  their  ideal  propor7on  of   direct  sales  would  be,  this  averaged  at  62% Propor.on  of  respondents  in  the  direct  distribu.on  propor.on  categories 30% % of repondents 23% 24% 20% 19% 15% 17% 14% 8% 7% 0%   % %   % 0% % % 29 49 90 10 75 10  -­‐    -­‐    -­‐      -­‐   en  -­‐   % % % % % 11 30 76  th 50 91 ss Le Propor.on  of  respondents  in  the  indirect  distribu.on  propor.on  categories Whilst  the  figures  below  should  match  neatly  with  the  figures  above  there  may  be  some  discrepancy  here  as  it  was   led  up  to  the  respondents  to  be  as  accurate  as  possible.   What  we  can  deduce  from  the  data  is  that  travel  suppliers  are  not  en7rely  reliant  on  online  intermediaries  for  their   sales  whilst  they  are  clearly  playing  a  significant  role  for  the  suppliers.   %  of  respondents 30% 26% 23% 23% 20% 15% 17% 8% 10% 3% 0%   % %   % 0% 0% % 29 49 90 75 10  1  -­‐    -­‐    -­‐    -­‐   en  -­‐   % % % % % 11 30 76  th 50 91 ss Le
Aetudes  Towards  Direct  vs.  Indirect  Distribu.on   The  barometer  is  looking  to  understand  the  sen7ment  of  the  travel  industry  during  the  last  quarter.  It  looks  to  have   been  a  generally  posi7ve  quarter  for  online  sales  with  28%  feeling  that  their  direct  online  sales  were  bemer  than  they   expected  and  26%  for  indirect  sales.  Both  direct  and  indirect  sales  were  as  expected  for  the  majority  of  respondents,   44%  and  47%  respec7vely.    9%  of  respondents  were  extremely  posi7ve  sta7ng  that  their  direct  sales  were  much  bemer   than  expected  and  8%  for  indirect  sales.  Those  on  the  nega7ve  end  of  the  scale  amounted  to  18%  in  rela7on  to  direct   and  17%  for  indirect  sales.  Only  a  small  propor7on  stated  either  online  channel  was  much  worse  than  expected.   How  do  you  feel  about  the  results  of  your  direct  and  indirect  sales  over  the  last  quarter   Direct Indirect   9% Much  better  than  I  expected 8% 28% Better  than  expected 26% 44% As  expected 47% 15% Worse  than  expected 15% 3% Much  worse  than  expected 2% 1% None  distributed  via  this  channel 2% 0% 13% 25% 38% 50% The  role  of  online  intermediaries  in  the  distribu7on  of  travel  supplier  products  is  clearly  significant.  Over  half  of  all   respondents  state  that  indirect  online  channels  have  been  extremely  or  very  important  to  their  company  in  the  last  3   months.  Also  adding  those  respondents  that  consider  indirect  channels  ‘important’  it  results  in  85%  of  respondents.   Whilst  suppliers  are  aiming  to  distribute  a  higher  propor7on  of  online  sales  via  direct  channels,  it  is  clear  that   intermediaries  are  rates  as  a  channel  by  most.  47%  have  increased  the  number  of  online  third  party  distribu7on   channels  that  they  have  worked  with  over  the  last  quarter  and  44%  are  maintaining  the  same  number.  Just  6%  have   reduced  the  number  of  partners  and  4%  did  not  work  with  any  at  all. Please  rate  below  how  important  INDIRECT  online  channels  have  been  to  your  company  in  the  last   3  months Extremely  important 19% Very  important 34% Important 32% Neither  important  nor  unimportant 11% % of respondents Not  important 4% 0% 10% 20% 30% 40%
Has  the  number  of  online  3rd  party  distribu.on  channels  you’ve  worked  with  increased  or   declined  in  the  last  3  months  compared  to  the  previous  quarter?     Increased 47% About  the  same  volume 44% Suppliers Declined 6% We  did  not  work  with  any 4% 0% 13% 25% 38% 50% %  of  respondents Considering  the  different  travel  sectors,  Cruise  are  the  most  reliant  upon  indirect  channels  for  online  distribu7on  with   50%  ra7ng  them  extremely  important.  In  comparison  only  8%  of  airlines  stated  them  extremely  important  but  a   further  38%  rate  them  very  important.  The  accommoda7on  sector  rate  them  highly  with  Hotel  resul7ng  in  61%  of   respondents  ra7ng  indirect  channels  either  extremely  or  very  important.  13%  of  the  Other  Accommoda7on  sector  rate   indirect  channels  as  ‘not  important’  which  could  perhaps  be  in  rela7on  to  the  type  or  size  of  inventory.  Indirect   channels  are  less  relevant  for  DMCs/tourism  boards  which  is  understandable  based  on  the  nature  of  their  product.   Please  rate  below  how  important  INDIRECT  online  channels  have  been  to  your  company  in  the  last   3  months       Extremely important Very important Important Neither important nor unimportant Not important Tour  operator 17% 19% 37% 17% 10% Other  accommodation 21% 25% 21% 21% 13% Hotel 0% 22% 39% 32% 7% DMC  /  tourism  board 0% 9% 36% 36% 18% Cruise 0% 0% 50% 25% 25% Car  Rental 0% 25% 38% 13% 25% Airline 8% 39% 42% 8% 4% 0% 25% 50% 75% 100% %  of  respondents
Has  the  number  of  online  3rd  party  distribu.on  channels  you’ve  worked  with  increased  or   declined  in  the  last  3  months  compared  to  the  previous  quarter? Echoing  the  results  above,  Cruise  have  been  increasing  the  number  of  3rd  party  distribu7on  channels  they  are  working   with  in  the  last  quarter.  Tour  Operator,  Other  Accommoda7on,  Hotel,  DMC/tourism  board  and  Airline  have  reduced   the  number,  10%,  8%,  4%,  9%  and  12%  respec7vely.  The  tour  operators,  which  can  blur  over  the  borders  of  supplier   and  intermediary,  Other  Accommoda7on  and  the  DMC/tourism  board  sectors  have  propor7ons  that  do  not  work  with   3rd  party  partners  at  all.  Cruise  and  Car  Rental  have  both  either  increased  or  remained  consistent  with  the  number  of   indirect  channels.   Increased About the same volume Declined We did not work with any Tour  operator 39% 40% 10% 12% Other  accommodation 58% 25% 8% 8% Hotel 49% 46% 4% 1% DMC  /  tourism  board 45% 36% 9% 9% Cruise 0% 75% 25% Car  Rental 0% 50% 50% Airline 0% 46% 42% 12% 0% 25% 50% 75% 100% %  of  responents Do  you  mind  what  the  ra.o  of  direct  vs.  Indirect  distribu.on  is? It  has  been  established  that  indirect  distribu7on  channels  are  playing  an  important  role  for  online  distribu7on.  When   asked  if  they  mind  what  the  ra7o  of  direct  vs  indirect  distribu7on  is  84%  stated  yes.  Due  to  cost  of  sale  and  other  such   reasons  suppliers  are  unexpectedly  preferable  towards  direct  distribu7on.  The  chart  below  indicates  the  ideal   propor7on  of  direct  sales  as  a  total  of  online  sales.  12%  are  aiming  for  100%  direct  distribu7on  whereas  the  average   for  all  respondents  combined  as  men7oned  earlier  is  62%. Yes No 16% 84%
Ideal  propor.on  of  direct  sales   15% 12% 12% %  of  respondents 11% 11% 10% 9% 7% 8% 5% 5% 4% 4% 4% 2% 2% 3% 2% 2% 1% 1% 2% 2% 1% 1% 1% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 1 5 8 10 11 12 14 15 17 20 25 28 30 33 35 40 45 50 55 60 65 70 75 76 80 85 90 92 95 98 99 100 Ideal  %  on  online  distribution  via  direct  channels How  fair  suppliers  feel  the  partnership  with  OTAs  are   There  is  currently  some  debate  amongst  the  travel  industry  as  to  the  value  of  the  partnerships  between  suppliers  and   OTAs.  We  ques7onned  the  fairness  of  the  current  partnership  with  both  suppliers  and  OTAs.  The  chart  below  illustrates   that  most  suppliers  are  siong  on  the  fence  but  it’s  weighed  towards  being  more  unfair.  33%  feel  that  it  is  neither  fair   nor  unfair.,  and  23%  ‘quite  unfair’.  Results  from  the  more  open  ques7ons  reveal  that  while  elements  of  the  partnership   are  not  enormously  praised  they  are  channel  of  distribu7on  that  are  valued  in  some  respects.  Only  3%  state  it  is   extremely  unfair. How  fair  intermediaries  feel  the  partnership  with  suppliers  is Extremely  FAIR 1% Very  fair 5% Quite  fair 29% Neither  fair  nor  unfair 33% Quite  unfair 23% Very  unfair 7% Extremely  UNFAIR 3% 0% 10.0% 20.0% 30.0% 40.0% %  of  respondents The  intermediary  perspec7ve  is  not  too  dissimilar  but  weighted  more  to  being  fair.  35%  state  neither  fair  not  unfair   and  32%  state  it’s  quite  fair.   Extremely  FAIR 2% Very  fair 11% Quite  fair 32% Neither  fair  nor  unfair 35% Quite  unfair 16% Very  unfair 2% Extremely  UNFAIR 3% 0% 10.0% 20.0% 30.0% 40.0%
SecOon  4:    Current  Sen.ment  Towards  the         OTA-­‐Supplier  Partnership
Sen.ment  towards  the  OTA-­‐Supplier  Partnership   Below  we  highlight  some  of  the  key  themes  emerging  in  this  edi7on  surrounding  the  partnership  between  the  Online   Travel  Agents  (OTAs)  and  suppliers.  In  the  first  image  we  can  iden7fy  that  the  key  concern  is  that  commission  rates  are   too  high  and  margins  are  being  squeezed.  Rate  parity  is  another  major  concern  in  the  current  situa7on.     What  suppliers  dislike  about  the  partnership  with  OTAs   From  the  OTA  perspec7ve,  the  image  below  illustrates  their  concerns.  The  main  theme  is  around  availability,  or  lack  of,   and  the  growth  in  direct  bookings  of  course.  Their  are  concerns  around  the  level  of  technology  that  suppliers  invest  in   to  maximise  the  partnership  and  are  looking  for  developments  in  this  area.  Readers  can  study  the  image  to  pick  up   some  of  them  other  issues.  The  larger  the  word  the  more  common  it  was  in  the  responses.   What  OTAs  dislike  about  the  current  partnership  with  suppliers  
Looking  at  more  posi7ve  sen7ment,  the  OTAs  feel  that  suppliers  are  really  good  at  being  flexible  and  value  this   characteris7c  in  a  partner  that  is  having  to  operate  in  such  a  dynamic  industry.  They  feel  the  range  of  products  on  offer   are  great  and  they’ve  really  improved  in  their  online  presence  to  help  the  partnership  reach  new  levels.  Suppliers  that   are  efficient  and  willing  to  work  with  the  OTAs  are  rated.   What  do  the  OTAs  like  about  the  partnership  with  suppliers?   While  suppliers  have  iden7fied  (as  we  show  above)  their  concerns  over  the  commission  rates,  the  OTAs  are  s7ll  hugely   valued  as  a  distribu7on  and  marke7ng  channel  in  today’s  market.  The  level  of  reach  that  they  have  the  ability  to  drive   for  distribu7on  and  overall  marke7ng  purposes  is  the  most  common  theme.  It  is  also  noted  that  the  strength  of  their   brands  in  some  of  the  more  marginal  markets  makes  the  partnership  a  very  valuable  one.  For  many  travel  companies   the  OTAs  are  brining  them  in  incremental  business  and  any  sale  is  considered  good.   What  suppliers  like  about  the  partnership  with  intermediaries…  
Based  on  the  supplier  sector,  there  is  some  varia7on  in  aotudes  towards  the  supplier  -­‐  OTA  partnership.  DMCs/ tourism  boards  make  up  the  majority  who  believe  the  partnership  is  unfair  with  27%  of  this  group  sta7ng  it  is  very   unfair.  Again  due  to  the  nature  of  their  product  it  is  difficult  to  accurately  cross  compare  with  the  other  travel  sectors.   Other  Accommoda7on  have  a  propor7on  who  consider  it  very  unfair  sugges7ng  perhaps  that  the  characteris7cally  low   volume  or  price  inventory  is  not  as  well  regarded  in  the  OTA  sector  or  that  there  are  not  enough  niche  operators   serving  the  purpose  effec7vely.  While  Cruise  rely  heavily  on  indirect  channels  50%  feel  that  the  partnership  is  quite   unfair.  4%  of  the  Hotel  sector  currently  feel  that  the  partnership  is  extremely  unfair  and  8%  of  the  airlines.  43%  of   Hotel  respondents  feel  that  the  partnership  is  unfair  to  some  degree.  Airlines  are  more  posi7ve  with  74%  either   neutral  or  fair  to  some  degree.     Extremely FAIR Very fair Quite fair Neither fair nor unfair Quite unfair Very unfair Extremely UNFAIR Tour  operator 0% 6% 2% 35% 37% 12% 10% Other  accommodation 0%4% 0% 8% 38% 46% 4% Hotel 0%4% 22% 30% 32% 7% 4% DMC  /  tourism  board 0% 45% 18% 9% 27% Cruise 0% 0% 25% 25% 50% Car  Rental 0% 0% 25% 50% 25% Airline 0% 8% 0% 31% 35% 19% 8% 0% 25% 50% 75% 100% %  of  respondents Supplier  Perspec.ve  On  OTAs Over  half  (52%)  of  all  travel  supplier  respondents  agree  that  they  cannot  compete  in  the  market  without  partnering   with  OTAs.  17%  are  neutral.  The  remaining  30%  either  disagree  (21%)  or  disagree  strongly  (9%).  While  commission   costs  are  ohen  raised  as  an  argument  against  the  OTA  partnership,  44%  believe  that  the  cost  is  worth  the  sale.  33%  are   however  in  delibera7on  and  an  addi7onal  24%  do  not  think  the  cost  is  worth  the  sale.  Respondents  have  mixed   feelings  about  whether  the  OTA  has  a  threatened  future.  36%  agree  that  the  OTA  will  lose  market  share  over  the  next   few  years.  41%  disagree.  63%  do  feel  that  the  current  OTA  model  needs  to  change,  no  one  diagrees  strongly.  Again   feelings  are  mixed  as  to  whether  OTAs  are  compe7tors  of  suppliers.  Almost  half  of  the  respondents  agree  in  some   respect  with  12%  agreeing  strongly.  24%  disagree  and  4%  disagree  strongly.  33%  feel  that  their  marke7ng  proficiencies   are  on  a  par  with  OTAs  these  days  and  another  33%  disagree  with  the  statement.  34%  are  either  agree  nor  disagree.   Agree  strongly Agree Neither  agree  nor  disagree Disagree Disagree  strongly I  cannot  compete  in  the  market  without  partnering  with  OTAs 12% 40% 17% 21% 9% The  high  cost  of  OTA  commission  is  not  worth  the  sale 4% 20% 33% 40% 4% OTAs  will  lose  market  share  over  the  next  few  years 8% 28% 22% 34% 7% The  OTA  model  needs  to  change 15% 48% 27% 10% 0% OTAs  are  negatively  impacting  supplier  brands 11% 30% 31% 24% 4% OTAs  are  competitors  of  suppliers 12% 35% 26% 24% 4% My  company’s  marketing  proficiencies  are  on  a  par  with  OTAs  these  days 6% 27% 34% 29% 4% 0% 25% 50% 75% 100%
Supplier  Perspec(ve  On  OTAs  by  Company  Sector   Cruise  and  Car  Rental  sectors  show  up  as  the  sectors  more  reliant  upon  the  OTAs.  While  no  one  in  the  Cruise  sector   agreed  strongly  with  the  statement  that  ‘I  cannot  compete  in  the  market  without  partnering  with  OTAs’,  50%   disagreed.  Hotels  are  revealed  as  the  sector  with  the  most  value  placed  on  OTAs;  66%  agree  to  some  degree  that  they   cannot  compete  without  them  and  only  17%  disagreed.  Other  Accommoda7on  reveal  a  different  pamern  with  63%   disagreeing  with  the  statement.  Airlines  are  mixed  but  more  neutral  than  Hotels  with  half  agreeing  that  they  are  vital   to  their  compe77veness  but  38%  disagreeing. I  cannot  compete  in  the  market  without  partnering  with  OTAs Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 8% 31% 19% 25% 17% Other  accommodation 8% 21% 8% 38% 25% Hotel 17% 49% 16% 14% 3% DMC  /  tourism  board 9% 27% 36% 9% 18% Cruise 0% 0% 25% 25% 50% Car  Rental 0% 38% 13% 38% 13% Airline 4% 46% 12% 23% 15% 0% 25% 50% 75% 100% %  of  respondents The  high  cost  of  OTA  commission  is  not  worth  the  sale Above  Cruise  revealed  that  they  are  not  necessarily  uncompe77ve  without  OTAs  but  they  75%  do  feel  that  a  high  cost   of  commission  is  worth  the  sale.  25%  do  not  agree  with  the  statement.  Apart  from  DMCs/tourism  boards  (most  are   neutral),  most  sectors  show  the  value  they  place  on  OTAs  as  a  distribu7on  channel.  Car  Rental  are  the  largest  group  to   agree  with  the  statement  (38%). Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 0% 6% 19% 37% 39% Other  accommodation 4% 13% 33% 42% 8% Hotel 3% 21% 36% 38% 3% DMC/  tourism  board 0% 9% 9% 64% 18% Cruise 0% 0% 25% 75% Car  Rental 0% 0% 38% 13% 50% Airline 4% 23% 15% 46% 12% 0% 25% 50% 75% 100% %  of  respondents
OTAs  will  lose  market  share  over  the  next  few  years The  respondents  that  think  that  OTAs  will  lose  market  share  over  the  next  few  years  is  dominated  by  the  Cruise  and   Car  Rental  sectors,  closely  followed  by  the  Hotel  and  Airlines.       Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 2% 21% 35% 31% 12% Other  accommodation 4% 21% 21% 50% 4% Hotel 11% 30% 21% 32% 6% DMC  /  tourism  board 0% 27% 18% 45% 9% Cruise 0% 0% 25% 25% 50% Car  Rental 0% 0% 25% 38% 38% Airline 8% 31% 15% 35% 12% 0% 25% 50% 75% 100% %  of  respondents The  OTA  model  needs  to  change The  Car  Rental  sector  are  the  most  adamant  that  the  OTA  model  needs  to  change.  88%    agree  with  the  statement.   Hotels  follow  with  73%  agreeing.  25%  of  the  Cruise  sector  are  happy  to  work  with  the  current  model  but  50%  do  agree   a  change  is  required. Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 0% 10% 31% 40% 19% Other  accommodation 0% 13% 38% 38% 13% Hotel 21% 52% 21% 6% 1% DMC  /  tourism  board 0% 9% 55% 27% 9% Cruise 0% 0% 50% 25% 25% Car  Rental 0% 0% 13% 75% 13% Airline 0% 12% 42% 39% 8% 0% 25% 50% 75% 100% %  of  respondents
OTAs  are  nega.vely  impac.ng  supplier  brands Car  Rental  companies  currently  feel  that  OTAs  are  nega7vely  affec7ng  supplier  brands,  25%  strongly  agree  and  38%   agree.  The  Airline  companies  appear  least  affected  in  this  respect.  For  the  Hotel  sector  44%  agree  to  some  degree  but   this  is  not  across  the  board;  28%  have  not  experienced  this.   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 12% 27% 37% 21% 4% Other  accommodation 8% 29% 38% 17% 8% Hotel 14% 30% 27% 24% 4% DMC  /  tourism  board 0% 9% 36% 36% 18% Cruise 0% 0% 50% 25% 25% Car  Rental 0% 25% 38% 25% 13% Airline 4% 23% 35% 35% 4% 0% 25% 50% 75% 100% %  of  respondents OTAs  are  compe.tors  of  suppliers Our  Cruise  par7cipants  feel  that  the  OTAs  are  compe7ng  with  them,  but  we  have  established  that  the  partnership  is   realised  as  valuable.  The  Car  Rental  sector  which  competes  heavily  on  price  understandably  are  targe7ng  the  same   consumer  for  the  lowest  possible  price.  Hotels  and  Other  Accommoda7on  are  split  with  around  half  agreeing  with  the   statement,  24%  neutral  and  29%  disagree.  Airlines  display  a  similar  pamern.  Tour  operators  are  more  evenly  spread   across  the  scale. Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 8% 35% 23% 29% 6% Other  accommodation 17% 29% 37% 12% 4% Hotel 15% 32% 24% 26% 3% DMC  /  tourism  board 0% 9% 55% 27% 9% Cruise 0% 0% 100% Car  Rental 0% 13% 75% 13% Airline 8% 39% 23% 19% 12% 0% 25% 50% 75% 100% %  of  respondents
My  company’s  marke.ng  proficiencies  are  on  a  par  with  OTAs  these  days Car  Rental  companies  feel  the  heat  from  the  OTAs  as  they  are  compe7ng  with  them  but  realise  their  marke7ng  power.   Cruise  is  the  opposite  with  50%  disagreeing  perhaps  due  to  the  nature  of  their  product  which  is  rela7vely  new  to  the   online  space  and  a  very  high  value  product.  Hotels  and  Airlines  rate  the  marke7ng  ability  of  OTAs  most  for  their   products.   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 0% 6% 39% 44% 12% Other  accommodation 4% 42% 29% 21% 4% Hotel 4% 22% 29% 38% 6% DMC  /  tourism  board 9% 27% 36% 9% 18% Cruise 0% 0% 50% 50% Car  Rental 0% 0% 25% 13% 63% Airline 8% 19% 39% 31% 4% 0% 25% 50% 75% 100% %  of  respondents Intermediary  feelings  about  their  sales  performance  over  the  last   quarter   Much  better  than  I  expected 11% Better  than  expected 38% As  expected 33% Worse  than  expected 14% Much  worse  than  expected 2% N/A 4% 0% 10% 20% 30% 40% Intermediaries  reveal  a  posi7ve  last  quarter.  49%  feel  that  their  bookings  were  bemer  than  expected.
Considering  the  following  travel  products,  how  have  your  sales  volumes  changed  over  the  last  3   months?  -­‐  Intermediaries  only   Breaking  down  the  specific  products  distributed  via  the  intermediaries,  there  have  been  increases  across  sectors  and   the  most  success  is  with  flight  and  hotel  products.  The  largest  increase  has  been  in  Hotel  product  sales  with  49%  of   respondents  having  experienced  an  increase.  Flight  sales  have  been  increased  by  4%.  Around  a  quarter  of  respondents   have  had  consistent  sales  across  the  sectors.  Declines  can  also  be  iden7fied  in  each  sector  but  on  a  smaller  scale,  all  at   6%  except  Hotels  at  8%  of  respondents.  The  sale  of  dynamic  packages  has  increased  for  28%  of  respondents  and  29%   have  increased  the  sale  of  des7na7on  ac7vi7es.   Increased No  change Declined We  don't  offer  this Don't  know   Flight  only 34% 16% 6% 30% 14% Hotel  only 49% 25% 8% 12% 6% Car  rental  only 13% 25% 6% 36% 20% Dynamic  packages 28% 24% 6% 29% 13% Destination  activities 29% 19% 6% 29% 17% 0% 25% 50% 75% 100% Have  your  bookings  (volumes)  generated  via  the  following  channels  increased  or  decreased  over   the  last  3  months  (from  the  previous  quarter)? The  most  significant  increase  in  the  last  quarter  for  channels  from  which  Intermediaries  are  receiving  their  bookings  is   from  their  websites.  64%  have  experienced  an  increase  in  the  last  3  months  and  only  7%  have  experienced  a  decline.   Voice/call  centre  is  remaining  to  be  important  with  28%  experiencing  an  increase.  31%  didn’t  receive  any  bookings  via   that  channel.  While  59%  of  respondents  didn’t  receive  any  bookings  via  mobile  device,  it  is  interes7ng  to  note  that   24%  have  experienced  an  increase  in  the  last  quarter.   Increased About the same volume Decreased No bookings via this channel From  your  website 64% 22% 7% 7% Via  voice/call  centre 28% 31% 10% 31%  From  a  mobile  device 24% 15% 2% 59% 0% 25% 50% 75% 100%
SecOon  5:     Sources  of  Online  Traffic  In  Travel
Sources  of  Online  Traffic  in  Travel   We  asked  our  survey  respondents  to  list  their  top  sources  of  online  traffic  and  have  created  a  ‘Wordle’  to  help  iden7fy   the  dominant  trends.  Google  is  clearly  the  most  influen7al  channel  for  travel  companies,  bot  paid  and  organic,  but   par7cularly  organic.  Search  engine  op7misa7on  is  certainly  a  core  requirement  for  all  travel  companies  to  remain   compe77ve  amongst  their  peers.  We  can  also  see  some  of  the  social  channels  rela7vely  prominent,  par7cularly   Facebook,  but  also  Tripadvisor.  It’s  the  search  engines  overall  however  that  are  leading  the  way  and  globally,  Google   dominates  overall.   Today’s  main  sources  of  traffic  in  online  Travel  
Online  Traffic  Sources   With  reference  to  the  chart  below,  the  largest  growth  area  for  web  traffic  sources  over  the  last  3  months  have  been   from  organic  search  lis7ngs  and  Facebook.  62%  of  respondents  registered  an  increase  from  organic  search  lis7ngs  and   56%  from  Facebook.  Across  all  traffic  sources  we  can  see  that  there  is  growth  nonetheless.  The  social  media  sites  listed   in  the  survey  are  all  performing  well,  Twimer  follows  Facebook  with  39%  registering  an  increase  in  traffic  from  here.   However  we  can  also  see  that  around  a  quarter  of  all  companies  are  not  benefiong  from  many  of  the  social  sites.   YouTube  is  not  genera7ng  traffic  for  almost  half  of  respondents  and  Twimer  does  is  not  affec7ng  32%.  For  the  43%  of   respondents  who  have  registered  ac7vity  with  mobile  websites,  over  half  of  those  have  experienced  an  increase  in   traffic.  For  mobile  applica7ons  it  is  a  similar  picture.  For  those  involved  with  company  blogs  or  online  communi7es   they  also  seem  to  be  performing  well;  of  62%  of  respondents  who  ranked  this  relevant,  32%  have  seen  an  increase  in   traffic  from  this  source  and  only  3%  a  decline.           Referring  to  the  potenOal  web  traffic  sources  listed  below,  please  indicate  in  the  context  of  your  website,  whether  traffic  volumes   have  increased  or  decreased  from  these  sources  over  the  last  3  months. Increased About the same Decreased No traffic from this source / Not applicable Organic  search  engine  listings 62% 29% 3% 6% Paid  search  listings   41% 32% 6% 21% Display  online  advertising 34% 32% 7% 28%  Email  marketing  links 44% 36% 5% 16%  Travel  meta-­‐search  sites 29% 39% 4% 28%  Online  directories 19% 47% 10% 24% Affiliates 31% 36% 9% 24% Facebook 56% 20% 1% 23% Twitter 39% 27% 2% 32% YouTube 20% 29% 2% 48% TripAdvisor 34% 26% 3% 38% Mobile  website 26% 16% 1% 56% Mobile  application 25% 15% 1% 59%  Company  blog  /  online  community 32% 27% 3% 38% 0% 25% 50% 75% 100% Traffic  Sources  By  MarkeOng  Budget   Analysing  results  based  on  the  size  of  annual  marke7ng  budget  shows  a  few  clear  trends  amongst  the  different  traffic   source  categories.  Please  refer  to  the  charts  below.  Organic  search  engines  lis7ngs  displays  less  of  a  pamern  though   with  growth  across  all  budget  sizes.  This  makes  sense  as  it  can  certainly  be  a  lower  investment  for  success  from  this   source.  It  is  surprising  however  that  17%  in  the  under  $25k  budget  range  do  not  receive  any  traffic  from  this  source  at   all  but  we  are  unable  to  inves7gate  into  the  reasons  behind  this.   Company  blogs  and  online  communi7es  also  do  not  reveal  clear  pamerns  in  the  data  except  that  those  in  the  mid   range  budgets  appear  to  have  the  most  growth  in  traffic  from  this  source  and  are  the  most  ac7ve.        
Increased About  the  same Decreased No  traffic  from  this  source  /  Not  applicable Organic  Search  Engine  Lis.ngs   Less  than  $25k 51% 29% 4% 17% $26k  -­‐  $50k 0% 58% 37% 5% $50k  -­‐  $100k 58% 32% 9% 2% $201k  -­‐  $300k 66% 24% 6% 4% $301k  -­‐  $400k 0% 50% 39% 11% Marketing  budget $401k  -­‐  $500k 0% 40% 45% 15% $501k  -­‐  $750k 0% 72% 22% 6% $751k  -­‐  $1  million 0% 63% 34% 3% $1.1  million  -­‐  $2  million 60% 32% 5% 3% $2.1  million  -­‐  $5  million 0% 78% 19% 3% $5.1  million  -­‐  $10  million 74% 18% 3% 6% $10.1  million  -­‐  $50  million 0% 76% 21% 2% $51  million  -­‐  $100  million 0% 67% 33% $101million  + 70% 22% 4% 4% Total   62% 29% 3% 6% 0% 25% 50% 75% 100% %  of  respondents Company  Blog  /  Online  Community   Less  than  $25k 27% 23% 5% 46% $26k  -­‐  $50k 33% 20% 3% 43% $50k  -­‐  $100k 29% 24% 2% 46% $201k  -­‐  $300k 0% 28% 34% 38% Marketing  Budget $301k  -­‐  $400k 33% 11% 6% 50% $401k  -­‐  $500k 0% 45% 35% 20% $501k  -­‐  $750k 44% 28% 6% 22% $751k  -­‐  $1  million 0% 44% 25% 31% $1.1  million  -­‐  $2  million 0% 32% 27% 41% $2.1  million  -­‐  $5  million 30% 35% 5% 30% $5.1  million  -­‐  $10  million 0% 29% 27% 44% $10.1  million  -­‐  $50  million 29% 33% 7% 31% $51  million  -­‐  $100  million 0% 50% 25% 25% $101million  + 0% 37% 33% 30% 0% 25% 50% 75% 100% %  of  respondents Mobile  Applica.on   Less  than  $25k 0% 13% 15% 72% $26k  -­‐  $50k 0% 13% 18% 68% $50k  -­‐  $100k 22% 5% 3% 70% $201k  -­‐  $300k 16% 12% 2% 70% Marketing  Budget $301k  -­‐  $400k 0% 11% 17% 72% $401k  -­‐  $500k 0% 30% 20% 50% $501k  -­‐  $750k 33% 11% 6% 50% $751k  -­‐  $1  million 0% 34% 16% 50% $1.1  million  -­‐  $2  million 0% 22% 22% 57% $2.1  million  -­‐  $5  million 30% 19% 3% 49% $5.1  million  -­‐  $10  million 0% 32% 12% 56% $10.1  million  -­‐  $50  million 0% 45% 12% 43% $51  million  -­‐  $100  million 0% 42% 33% 25% $101million  + 0% 59% 19% 22% 0% 25% 50% 75% 100%
Mobile  Website   Less  than  $25k 18% 12% 3% 67% $26k  -­‐  $50k 0% 12% 22% 67% $50k  -­‐  $100k 19% 7% 5% 70% $201k  -­‐  $300k 20% 16% 2% 62% Marketing  Budget $301k  -­‐  $400k 0% 11% 22% 67% $401k  -­‐  $500k 0% 40% 10% 50% $501k  -­‐  $750k 44% 6% 6% 44% $751k  -­‐  $1  million 0% 41% 16% 44% $1.1  million  -­‐  $2  million 0% 24% 22% 54% $2.1  million  -­‐  $5  million 0% 30% 22% 49% $5.1  million  -­‐  $10  million 0% 29% 21% 50% $10.1  million  -­‐  $50  million 0% 45% 17% 38% $51  million  -­‐  $100  million 0% 42% 50% 8% $101million  + 0% 52% 19% 30% 0% 25% 50% 75% 100% %  of  respondents Firstly,  there  is  a  trend  showing  that  those  involved  in  social  media  and  mobile  increases  in  line  with  larger  marke7ng   budgets.  Yet  this  is  not  an  en7rely  neat  trend  because  30%  of  the  largest  marke7ng  budget  range,  for  example,  are  not   ac7ve  with  mobile  websites.  This  budget  range  has  however  registered  the  most  respondents  with  growth  from   mobile  web  traffic.  Mobile  applica7ons  ohen  require  more  investment  than  a  mobile  website  which  is  perhaps   indica7ve  of  the  trend  in  that  chart.  Those  in  the  largest  budget  category  have  registered  the  most  growth  from  this   source  with  59%  of  respondents  experiencing  an  increase  in  comparison  to  13%  in  the  smallest  range.             Facebook   Less  than  $25k 0% 45% 17% 39% $26k  -­‐  $50k 0% 50% 25% 25% $50k  -­‐  $100k 41% 27% 3% 29% $201k  -­‐  $300k 0% 58% 22% 20% Marketing  Budget $301k  -­‐  $400k 0% 56% 6% 39% $401k  -­‐  $500k 0% 75% 15% 10% $501k  -­‐  $750k 0% 78% 11% 11% $751k  -­‐  $1  million 0% 63% 16% 22% $1.1  million  -­‐  $2  million 0% 57% 27% 16% $2.1  million  -­‐  $5  million 65% 24% 3% 8% $5.1  million  -­‐  $10  million 0% 65% 15% 21% $10.1  million  -­‐  $50  million 0% 67% 21% 12% $51  million  -­‐  $100  million 0% 50% 33% 17% $101million  + 0% 67% 19% 15% 0% 25% 50% 75% 100% %  of  respondents Social  media  sources  display  a  trend  in  rela7on  to  marke7ng  budgets.  It  is  quite  clearly  pronounced  in  rela7on  to   Tripadvisor  par7cularly.  The  trend  line  is  less  pronounced  in  rela7on  to  Youtube  and  Twimer.  Mid  budget  companies   around  the  half  a  million  dollar  range  appear  to  be  the  most  successful  group  amongst  Facebook  and  Twimer,   registering  the  largest  increases  from  both  sites.  Facebook  is  however  helping  to  drive  traffic  to  companies  across  all   budgets  very  successfully  and  almost  half  of  companies  with  the  smallest  budgets  have  experienced  an  increase  which   is  indica7ve  of  how  effec7ve  this  has  been  as  a  source  of  traffic  for  any  travel  company  over  the  last  quarter.  There  are   however  s7ll  39%  of  this  budget  range  that  are  not  taking  advantage  of  the  medium,  along  with  a  good  propor7on  of        
those  in  other  budget  ranges  too.  Twimer  has  resulted  in  a  similar  pamern  to  Facebook  but  with  fewer  experiencing   growth  across  the  board.  However  the  ac7vity  within  the  different  budget  ranges  is  comparable.  Travel  companies  in   all  budget  ranges  appear  less  ac7ve  in  Youtube,  par7cularly  as  we  reach  the  lower  budget  ranges.  Less  companies   overall  are  registering  growth  in  traffic  from  this  source.   TripAdvisor Increased About the same Decreased No traffic from this source / Not applicable Less  than  $25k 21% 23% 5% 51% 0% 37% 15% 48% $50k  -­‐  $100k 36% 22% 3% 39% Marketing  Budget 38% 14% 2% 46% $301k  -­‐  $400k 33% 28% 6% 33% 0% 25% 40% 35% $501k  -­‐  $750k 0% 39% 22% 39% 0% 34% 31% 34% $1.1  million  -­‐  $2  million 38% 30% 5% 27% 27% 38% 5% 30% $5.1  million  -­‐  $10  million 38% 32% 3% 27% 31% 38% 5% 26% $51  million  -­‐  $100  million 50% 25% 8% 17% 0% 63% 22% 15% 0% 25% 50% 75% 100% %  of  respondents Twiper   Less  than  $25k 24% 25% 3% 48% 0% 38% 30% 32% $50k  -­‐  $100k 34% 27% 3% 36% 0% 40% 30% 30% Marketing  Budget $301k  -­‐  $400k 0% 33% 17% 50% 60% 15% 5% 20% $501k  -­‐  $750k 0% 67% 17% 17% 0% 47% 22% 31% $1.1  million  -­‐  $2  million 0% 30% 43% 27% 49% 27% 5% 19% $5.1  million  -­‐  $10  million 0% 53% 15% 32% 38% 36% 2% 24% $51  million  -­‐  $100  million 0% 50% 33% 17% 0% 48% 30% 22% 0% 25% 50% 75% 100% %  of  respondents YouTube     Less  than  $25k 14% 22% 5% 59% 15% 25% 2% 58% $50k  -­‐  $100k 24% 25% 2% 49% Marketing  Budget 0% 20% 32% 48% $301k  -­‐  $400k 0% 22% 17% 61% 0% 15% 40% 45% $501k  -­‐  $750k 0% 28% 33% 39% 31% 25% 3% 41% $1.1  million  -­‐  $2  million 0% 19% 43% 38% 22% 30% 3% 46% $5.1  million  -­‐  $10  million 0% 27% 24% 50% 19% 45% 2% 33% $51  million  -­‐  $100  million 0% 50% 25% 25% 15% 44% 4% 37% 0% 25% 50% 75% 100% %  of  respondents
No  major  pamerns  are  iden7fied  in  the  traffic  generated  from  affiliates.  It  is  rela7vely  even  in  the  propor7ons  that  have   experienced  growth  and  maintained  levels  across  all  budget  categories.  It  can  be  seen  however  that  almost  half  of  the   lower  budget  companies  are  not  working  with  affiliates.   Traffic  from  online  directories  is  also  rela7vely  consistent  across  budget  categories.  Less  growth  has  been  experienced   from  this  poten7al  traffic  source  in  comparison  to  other  categories.     Affiliates   Less  than  $25k 26% 28% 4% 43% 25% 35% 10% 30% $50k  -­‐  $100k 31% 41% 10% 19% Marketing  Budget 30% 42% 12% 16% $301k  -­‐  $400k 17% 28% 17% 39% 20% 50% 10% 20% $501k  -­‐  $750k 50% 33% 6% 11% 34% 41% 3% 22% $1.1  million  -­‐  $2  million 35% 30% 8% 27% 32% 38% 22% 8% $5.1  million  -­‐  $10  million 32% 35% 6% 26% 45% 41% 7% 7% $51  million  -­‐  $100  million 0% 50% 50% 33% 41% 7% 19% 0% 25% 50% 75% 100% %  of  respondents Online  Directories     Less  than  $25k 21% 40% 9% 31% 22% 37% 13% 28% $50k  -­‐  $100k 19% 46% 14% 22% 18% 50% 6% 26% Marketing  Budget $301k  -­‐  $400k 17% 56% 6% 22% 15% 45% 20% 20% $501k  -­‐  $750k 0% 28% 56% 17% 16% 47% 6% 31% $1.1  million  -­‐  $2  million 19% 49% 16% 16% 11% 62% 8% 19% $5.1  million  -­‐  $10  million 27% 44% 9% 21% 12% 67% 7% 14% $51  million  -­‐  $100  million 25% 33% 17% 25% 26% 48% 4% 22% 0% 25% 50% 75% 100% %  of  respondents Travel  meta-­‐search  sites  are  proving  successful  for  the  companies  with  larger  budgets  and  it  could  be  assumed  that   many  of  these  companies  are  airlines  which  would  make  sense.  48%  of  the  largest  budget  category  have  experienced   an  increase  in  traffic  from  these  sites  in  the  last  3  months  in  comparison  to  18%  in  the  lowest  budget  range.   Email  marke7ng  links  are  used  more  commonly  across  all  budget  ranges,  although  31%  of  the  lowest  budget  category   are  not  benefiong  from  these  at  all.  The  largest  propor7on  of  companies  with  an  increase  from  these  sources  are  in   the  mid  budget  ranges  such  as  67%  of  those  with  a  budget  between  $501  -­‐  $750k.  
Increased About the same Decreased No traffic from this source / Not applicable Travel  Meta-­‐Search  Sites   Less  than  $25k 18% 40% 2% 41% 23% 40% 3% 33% $50k  -­‐  $100k 24% 37% 7% 32% 30% 42% 4% 24% Marketing  Budget $301k  -­‐  $400k 22% 39% 6% 33% 0% 30% 40% 30% $501k  -­‐  $750k 0% 39% 33% 28% 25% 41% 6% 28% $1.1  million  -­‐  $2  million 0% 51% 35% 14% 24% 41% 5% 30% $5.1  million  -­‐  $10  million 35% 38% 9% 18% 38% 45% 7% 10% $51  million  -­‐  $100  million 25% 42% 8% 25% 48% 26% 7% 19% 0% 25% 50% 75% 100% %  of  respondents Email  Marke.ng  Links   Less  than  $25k 37% 28% 5% 31% 35% 47% 5% 13% $50k  -­‐  $100k 36% 36% 7% 22% 48% 38% 4% 10% Marketing  Budget $301k  -­‐  $400k 0% 33% 50% 17% 0% 55% 30% 15% $501k  -­‐  $750k 0% 67% 28% 6% 50% 31% 3% 16% $1.1  million  -­‐  $2  million 46% 41% 3% 11% 51% 38% 8% 3% $5.1  million  -­‐  $10  million 50% 27% 6% 18% 52% 43% 2% 2% $51  million  -­‐  $100  million 33% 42% 8% 17% 44% 33% 11% 11% 0% 25% 50% 75% 100% %  of  respondents Display  online  adver7sing  is  more  common  amongst  companies  with  larger  budgets  understandably  and  they  have   also  proved  successful  in  the  last  quarter.  Around  half  of  the  larger  budget  ranges  have  registered  an  increase  in  traffic   from  their  online  display  adver7sing  efforts.   Paid  search  lis7ngs  again  are  dominated  by  those  with  larger  budgets.  Around  half  of  those  in  the  smallest  budget   range  are  not  inves7ng  in  this  form  of  marke7ng.  The  majority  of  those  that  are  inves7ng  in  paid  search  lis7ngs  have   experienced  an  increase  in  traffic.  There  is  a  good  propor7on  in  both  display  and  paid  search  adver7sing  that  have  not   seen  much  of  a  change  in  the  last  3  months.    
Display  Online  Adver.sing   Less  than  $25k 16% 25% 8% 52% 28% 37% 10% 25% $50k  -­‐  $100k 25% 34% 5% 36% 34% 26% 8% 32% Marketing  Budget $301k  -­‐  $400k 28% 28% 11% 33% 40% 40% 5% 15% $501k  -­‐  $750k 28% 56% 6% 11% 38% 25% 9% 28% $1.1  million  -­‐  $2  million 43% 32% 5% 19% 38% 38% 14% 11% $5.1  million  -­‐  $10  million 0% 50% 29% 21% 55% 31% 5% 9% $51  million  -­‐  $100  million 0% 50% 33% 17% 44% 33% 11% 11% 0% 25% 50% 75% 100% %  of  respondents Paid  Search  Lis.ngs   Less  than  $25k 22% 26% 6% 47% 28% 33% 5% 33% $50k  -­‐  $100k 32% 32% 9% 27% 40% 30% 10% 20% Marketing  Budget $301k  -­‐  $400k 28% 33% 11% 28% 0% 40% 40% 20% $501k  -­‐  $750k 0% 56% 44% 28% 63% 6% 3% $1.1  million  -­‐  $2  million 62% 27% 3% 8% 57% 30% 8% 5% $5.1  million  -­‐  $10  million 56% 21% 9% 15% 55% 33% 10% 2% $51  million  -­‐  $100  million 0% 67% 33% 67% 26% 4% 4% 0% 25% 50% 75% 100% %  of  respondents Traffic  Sources  by  Company  Sector   We  realise  that  it  is  not  all  about  budget  in  online  marke7ng,  so  taking  a  look  at  the  results  by  company  sector  may   reveal  some  more  interes7ng  trends.  Organic  search  lis7ngs  as  with  marke7ng  budget  size  does  not  reveal  any  major   differences  amongst  sectors.  Cruise  register  the  biggest  propor7on  with  an  increase  in  traffic  from  this  source  at  86%,   the  other  14%  state  that  it  is  not  applicable.  Meta-­‐search  sites  have  experienced  the  biggest  decline  in  traffic  from  this   source  with  40%  of  the  companies  registering  a  decline.  It  is  evidently  an  important  and  growing  source  of  traffic  for  all   other  travel  sectors.   Paid  search  lis7ngs  have  worked  best  for  Car  Rental  and  Meta-­‐Search  companies  in  the  last  quarter  and  Hotel  and   Other  Accommoda7on  are  not  far  behind.  43%  of  Hotel  companies  have  registered  a  growth  in  traffic  from  their   investment  in  PPC.  
Increased About the same Decreased No traffic from this source / Not applicable Organic  Search  Engine  Lis.ngs   Hotel 64% 30% 2%4% Other  accommodation 61% 19% 10% 10% Airline 0% 68% 29% 3% Car  Rental 0% 69% 23% 8% Cruise 0% 86% 14% Destination  management  company  /  tourism  board 0% 45% 45% 9% Tour  operator 60% 27% 5% 8% Online  Travel  Agent  (OTA) 68% 27% 1%4% Meta-­‐search 0% 20% 40% 40% Other  online  intermediary 58% 26% 8% 8% "Offline"  intermediary  /  Retail 0% 46% 46% 8% 0% 25% 50% 75% 100% %  of  respondents Paid  Search  Engine  Lis.ngs   Hotel 43% 35% 4% 17% Other  accommodation 55% 16% 3% 26% Airline 38% 47% 6% 9% Car  Rental 0% 62% 15% 23% Cruise 43% 29% 14% 14% Destination  management  company  /  tourism  board 18% 50% 5% 27% Tour  operator 41% 24% 8% 27% Online  Travel  Agent  (OTA) 50% 27% 8% 15% Meta-­‐search 0% 60% 20% 20% Other  online  intermediary 29% 42% 6% 23% "Offline"  intermediary  /  Retail 13% 29% 21% 38% 0% 25% 50% 75% 100% %  of  respondents
Increased About the same Decreased No traffic from this source / Not applicable The  transport  sector  and  Cruise  have  registered  the  most  success  from  display  online  adver7sing.  Around  a  third  of   Hotel  and  Other  Accommoda7on  have  experienced  an  increase  in  traffic  from  investments  here.  Most  sectors  have   experienced  a  decline  in  traffic  from  display  online  adver7sing  but  in  smaller  propor7ons.   Cruise  stand  out  as  the  sector  with  the  most  growth  amongst  the  respondents  from  email  marke7ng,  71%.  Around  half   of  respondents  from  other  sectors  have  however  seen  good  growth  except  meta-­‐search  sites  which  have  remained   predominantly  consistent.  A  good  propor7on  of  Car  Rental  companies  are  not  u7lising  email  as  a  source  of  traffic   genera7on.   Display  Online  Adver.sing       Hotel 33% 40% 7% 21% Other  accommodation 0% 35% 32% 32% Airline 56% 21% 12% 12% Car  Rental 0% 62% 15% 23% Cruise 0% 57% 14% 29% Destination  management  company  /  tourism  board 36% 18% 9% 36% Tour  operator 31% 31% 9% 29% Online  Travel  Agent  (OTA) 31% 28% 8% 33% Meta-­‐search 0% 20% 20% 60% Other  online  intermediary 25% 34% 5% 37% "Offline"  intermediary  /  Retail 17% 37% 17% 29% 0% 25% 50% 75% 100% %  of  respondents Email  Marke.ng  Links   Hotel 42% 39% 3% 16% Other  accommodation 48% 29% 7% 16% Airline 44% 38% 6% 12% Car  Rental 0% 38% 31% 31% Cruise 0% 71% 14% 14% Destination  management  company  /  tourism  board 0% 50% 36% 14% Tour  operator 48% 32% 8% 12% Online  Travel  Agent  (OTA) 44% 40% 4% 13% Meta-­‐search 0% 20% 60% 20% Other  online  intermediary 46% 28% 3% 23% "Offline"  intermediary  /  Retail 33% 42% 17% 8% 0% 25% 50% 75% 100% %  of  respondents
Increased About the same Decreased No traffic from this source / Not applicable Travel  Meta-­‐Search  Sites   Hotel 37% 44% 3% 16% Other  accommodation 23% 39% 6% 32% Airline 32% 53% 3% 12% Car  Rental 31% 31% 8% 31% Cruise 14% 14% 14% 57% Destination  management  company  /  tourism  board 27% 41% 5% 27% Tour  operator 31% 37% 7% 25% Online  Travel  Agent  (OTA) 26% 24% 4% 46% Meta-­‐search 0% 20% 80% Other  online  intermediary 23% 34% 2% 42% "Offline"  intermediary  /  Retail 17% 50% 8% 25% 0% 25% 50% 75% 100% %  of  respondents Affiliates   Hotel 31% 43% 7% 20% Other  accommodation 29% 32% 10% 29% Airline 0% 32% 53% 15% Car  Rental 54% 15% 15% 15% Cruise 0% 57% 14% 29% Destination  management  company  /  tourism  board 27% 27% 14% 32% Tour  operator 37% 29% 8% 25% Online  Travel  Agent  (OTA) 32% 36% 10% 22% Meta-­‐search 40% 20% 20% 20% Other  online  intermediary 25% 32% 11% 32% "Offline"  intermediary  /  Retail 25% 50% 13% 13% 0% 25% 50% 75% 100% %  of  respondents Travel  meta-­‐search  sites  are  showing  to  have  made  the  most  posi7ve  impact  in  the  Hotel  sector  with  37%  of   respondents  experiencing  traffic  growth  from  these  sites  in  the  last  3  months.  Most  sectors  have  however  experienced   more  consistency  than  growth.   Affiliates  are  working  well  for  the  Car  Rental  and  Cruise  sectors,  growth  for  54%  and  57%  respec7vely.  The  biggest   decline  has  been  for  the  DMCs/tourism  boards  at  27%.  Meta-­‐search  sites  are  not  very  ac7ve  in  this  marke7ng  channel.    
Online  Directories   Hotel 21% 58% 8% 13% Other  accommodation 16% 45% 13% 26% Airline 15% 50% 6% 29% Car  Rental 0% 31% 46% 23% Cruise 14% 29% 14% 43% Destination  management  company  /  tourism  board 18% 32% 27% 23% Tour  operator 28% 39% 11% 23% Online  Travel  Agent  (OTA) 15% 40% 12% 33% Meta-­‐search 0% 40% 60% Other  online  intermediary 12% 45% 9% 34% "Offline"  intermediary  /  Retail 21% 46% 13% 21% 0% 25% 50% 75% 100% %  of  respondents Referring  to  the  charts  below,  results  in  rela7on  to  Twimer  are  rela7vely  consistent  across  all  sectors.  The  majority  who   are  par7cipa7ng  have  experienced  growth  over  the  last  quarter.  Tripadvisor  on  the  other  hand  is  understandably  more   dominant  in  the  accommoda7on  sector.  62%  of  Hotel  companies  have  registered  growth  from  this  channel,  Other   Accommoda7on  is  less  ac7ve  but  of  those  that  are  included  or  involved  are  experiencing  good  results.  This  source  is   less  favourable  for  the  transporta7on  sector.  Facebook  is  providing  good  results  across  all  sectors.  Well  over  half  of   travel  companies  in  each  sector,  apart  of  OTAs,  have  registered  a  increase  in  traffic  rom  this  source.  DMCs/tourism   boards  are  proving  very  good  results  out  of  those  who  are  par7cipa7ng.  YouTube  is  proving  more  relevant  for  suppliers   than  OTAs  and  accommoda7on  and  transport  sectors  have  shown  rela7vely  similar  results.  The  Cruise  sector  appear  to   have  had  the  most  growth  in  the  last  quarter  based  on  the  number  of  respondents  from  that  sector.     Twiper   Increased About the same Decreased No traffic from this source / Not applicable Hotel 43% 27% 1% 30% Other  accommodation 0% 36% 23% 42% Airline 44% 32% 3% 21% Car  Rental 0% 38% 38% 23% Cruise 0% 43% 14% 43% Destination  management  company  /  tourism  board 0% 46% 14% 41% Tour  operator 39% 25% 5% 31% Online  Travel  Agent  (OTA) 28% 35% 1% 36% Meta-­‐search 0% 40% 20% 40% Other  online  intermediary 48% 31% 2% 20% "Offline"  intermediary  /  Retail 25% 13% 4% 58% 0% 25% 50% 75% 100% %  of  respondents
Facebook   Hotel 59% 22% 1% 19% Other  accommodation 0% 52% 13% 36% Airline 0% 62% 24% 15% Car  Rental 0% 62% 15% 23% Cruise 0% 57% 14% 29% Destination  management  company  /  tourism  board 0% 64% 5% 32% Tour  operator 53% 23% 1% 23% Online  Travel  Agent  (OTA) 42% 31% 1% 26% Meta-­‐search 0% 60% 40% Other  online  intermediary 0% 68% 14% 19% "Offline"  intermediary  /  Retail 0% 54% 13% 33% 0% 25% 50% 75% 100% %  of  respondents TripAdvisor   Hotel 62% 27% 3% 9% Other  accommodation 0% 32% 26% 42% Airline 0% 29% 35% 35% Car  Rental 0% 8% 39% 54% Cruise 0% 14% 86% Destination  management  company  /  tourism  board 32% 23% 9% 36% Tour  operator 27% 29% 4% 40% Online  Travel  Agent  (OTA) 17% 18% 3% 63% Meta-­‐search 0% 100% Other  online  intermediary 17% 22% 3% 59% "Offline"  intermediary  /  Retail 4% 29% 8% 58% 0% 25% 50% 75% 100% %  of  respondents YouTube   Hotel 23% 34% 1% 42% Other  accommodation 0% 26% 19% 55% Airline 0% 24% 44% 32% Car  Rental 0% 23% 38% 38% Cruise 0% 43% 29% 29% Destination  management  company  /  tourism  board 32% 18% 5% 46% Tour  operator 25% 24% 5% 45% Online  Travel  Agent  (OTA) 5% 31% 3% 62% Meta-­‐search 0% 20% 80% Other  online  intermediary 0% 20% 29% 51% "Offline"  intermediary  /  Retail 8% 17% 8% 67% 0% 25% 50% 75% 100% %  of  respondents
Mobile  is  working  best  for  the  Car  Rental  sector  and  54%  of  respondents  have  registered  an  increase  in  traffic  from   mobile  applica7ons.  Airline  companies  are  also  more  ac7ve  in  comparison  to  other  sectors  and  are  showing  a  similar   pamern.  Hotel  companies  also  seeing  growth  with  28%  of  respondents  experiencing  increased  traffic  from  mobile   applica7ons  which  is  a  large  propor7on  of  the  43%  who  are  par7cipa7ng.   In  terms  of  mobile  websites,  again  the  Car  Rental  and  Airline  sectors  are  the  most  ac7ve  and  have  proved  the  best   results.  62%  of  Car  rental  companies  have  registered  a  growth  in  traffic  from  mobile  websites.  There  appears  to  be  less   ac7vity  amongst  OTAs  but  21%  have  s7ll  registered  growth.   Company  blogs  and  online  communi7es  show  more  consistency  across  sectors.  The  best  results  are  in  the  Car  Rental   and  DMC/tourism  board  sectors.     Increased About the same Decreased No traffic from this source / Not applicable Mobile  Applica.on   Hotel 28% 14% 1% 57% Other  accommodation 0% 16% 13% 71% Airline 0% 41% 21% 38% Car  Rental 0% 54% 15% 31% Cruise 0% 29% 71% Destination  management  company  /  tourism  board 0% 14% 23% 64% Tour  operator 20% 15% 3% 63% Online  Travel  Agent  (OTA) 17% 15% 1% 67% Meta-­‐search 0% 20% 20% 60% Other  online  intermediary 0% 32% 12% 55% "Offline"  intermediary  /  Retail 4% 17% 4% 75% 0% 25% 50% 75% 100% %  of  respondents Mobile  Website   Hotel 30% 17% 1% 51% Other  accommodation 0% 19% 10% 71% Airline 0% 44% 18% 38% Car  Rental 0% 62% 15% 23% Cruise 0% 29% 14% 57% Destination  management  company  /  tourism  board 0% 9% 36% 55% Tour  operator 23% 15% 4% 59% Online  Travel  Agent  (OTA) 21% 15% 1% 63% Meta-­‐search 0% 20% 20% 60% Other  online  intermediary 0% 32% 11% 57% "Offline"  intermediary  /  Retail 0% 21% 8% 71% 0% 25% 50% 75% 100% %  of  respondents
Company  Blog  /  Online  Community   Hotel 24% 25% 2% 49% Other  accommodation 0% 36% 13% 52% Airline 38% 32% 6% 24% Car  Rental 0% 54% 23% 23% Cruise 0% 43% 57% Destination  management  company  /  tourism  board 50% 18% 5% 27% Tour  operator 36% 19% 5% 40% Online  Travel  Agent  (OTA) 30% 39% 5% 27% Meta-­‐search 0% 60% 40% Other  online  intermediary 0% 39% 32% 29% "Offline"  intermediary  /  Retail 37% 29% 4% 29% 0% 25% 50% 75% 100% %  of  respondents
SecOon  6:     Marke.ng  Channels
Marke.ng  Channels   Analysing  data  from  all  respondents  of  both  supplier  and  intermediary  surveys,  organic  search  engine  lis7ngs  have   proved  to  be  the  most  influen7al  marke7ng  channel  for  bookings  over  the  last  3  months  for  the  largest  propor7on  of   travel  companies  (38%).  PPC  is  the  second  most  rates  channel  (22%  of  respondents)  and  email  marke7ng  the  third   (19%).  Social  media  is  rated  by  14%.   Considering  the  markeOng  channels  below,  please  choose  ONE  which  you'd  highlight  as  the  most  influenOal  to  your   bookings  over  the  last  3  months? 14% 19% Email marketing Meta-search sites Mobile devices 22% 5% Organic search engine listings 2% Paid search (PPC) Social media 38% Influen7al  channels  do  vary  across  sectors.  Email  marke7ng  is  rated  most  by  Cruise  and  Offline  intermediary  sectors;   43%  and  38%  respec7vely.  This  is  not  found  influen7al  at  all  by  the  Meta-­‐Search  companies.  Meta-­‐Search  sites  have   been  found  rela7vely  less  influen7al  to  bookings  but  are  rated  by  a  number  of  suppliers  and  intermediaries.  Mobile   stands  out  in  the  Airline  and  Car  Rental  sectors  but  sits  with  a  marginal  propor7on  of  respondents;  9%  and  8%   respec7vely.  Organic  search  lis7ngs  which  is  the  most  influen7al  overall,  is  par7cularly  useful  for  Meta-­‐Search   companies  in  which  60%  rate  this  as  the  most  influen7al  channel  to  their  bookings.  The  other  sectors  reveal  similar   propor7ons  for  this,  except  the  slightly  slower  offline  intermediaries.  PPC  has  been  par7cularly  influen7al  for  Car   Rental,  OTA  and  Meta-­‐Search  companies.  Social  media  appears  to  be  working  best  for  DMCs/tourism  boards,  Cruise   and  offline  intermediaries.  The  Hotel  sector  and  Other  Accommoda7on  as  well  as  Airline  companies  emphasise  the   value  of  organic  search  lis7ngs  for  the  last  quarter.     Most  influen(al  marke(ng  channel  by  company  sector   Email marketing Meta-search sites Mobile devices Organic search engine listings Paid search (PPC) Social media Hotel 13% 6% 1% 44% 27% 10% Other  accommodation 0% 23% 6% 35% 16% 19% Airline 27% 3% 9% 32% 12% 18% Car  Rental 0% 8% 0% 8% 46% 38% Cruise 0% 0% 43% 29% 29% DMC  /  tourism  board 0% 14% 9% 36% 5% 36% Tour  operator 0% 31% 3% 33% 19% 15% Online  Travel  Agent  (OTA) 17% 5% 1% 37% 35% 5% Meta-­‐search 0% 0% 60% 40% Other  online  intermediary 17% 6% 2% 40% 14% 22% "Offline"  intermediary  /  Retail 0% 38% 13% 21% 4% 25% 0% 25% 50% 75% 100% %  of  respondents
Most  influen(al  channel  by  markeOng  budget   There  are  some  minor  trends  iden7fied  when  analysing  the  results  by  size  of  marke7ng  budget.  Email  marke7ng  for   example  is  rated  as  the  most  influen7al  by  those  with  smaller  marke7ng  budgets,  where  as  PPC  is  more  influen7al  for   those  that  can  afford  it  in  the  higher  budget  categories.  Social  media  is  on  the  other  hand  not  isolated  to  the  big  guys   and  the  smaller  budget  ranges  are  evidently  seeing  good  results  from  these  channels  in  rela7on  to  bookings;  around  a   quarter  of  those  at  the  lowest  budget  range  selected  social  media  as  the  most  influen7al  marke7ng  channel  in  the  last   quarter.  Mobile  is  interes7ngly  also  appearing  in  the  lower  budget  ranges  but  there  is  no  major  trend  here  with  the   limited  number  of  responses  for  this  channel.  Meta-­‐Search  is  also  a  similar  pamern  to  mobile  but  we  can  iden7fy  a   more  significant  15%  in  the  top  budget  range.   Email marketing Meta-search sites Mobile devices Organic search engine listings Paid search (PPC) Social media Less  than  $25k 22% 6% 5% 36% 8% 24% $26k  -­‐  $50k 22% 5% 2% 35% 20% 17% $50k  -­‐  $100k 24% 3%2% 47% 15% 8% $201k  -­‐  $300k 0% 20% 2% 36% 22% 20% $301k  -­‐  $400k 0% 28% 33% 17% 22% Marketing  Budget $401k  -­‐  $500k 0% 25% 5% 20% 25% 25% $501k  -­‐  $750k 0% 11% 0% 11% 50% 28% $751k  -­‐  $1  million 12% 9% 6% 31% 28% 12% $1.1  million  -­‐  $2  million 27% 8% 3% 30% 24% 8% $2.1  million  -­‐  $5  million 0% 22% 51% 24% 3% $5.1  million  -­‐  $10  million 0% 18% 3% 44% 27% 9% $10.1  million  -­‐  $50  million 0% 14% 2% 48% 33% 2% $51  million  -­‐  $100  million 0% 42% 42% 17% $101million  + 0% 7% 15% 33% 33% 11% 0% 25% 50% 75% 100% %  of  respondents  within  the  budget  category Most  influen(al  channel  by  region  represenOng   In  terms  of  Europe,  the  UK  found  email  marke7ng,  organic  search  lis7ngs  and  PPC  the  most  influen7al  to  their   bookings  over  the  last  quarter.  The  ra7os  were  rela7vely  evenly  split  with  slightly  more  weight  on  Search.  Respondents   from  Germany  rated  organic  search  lis7ngs  the  most  (73%)  and  an  even  split  for  the  remainder  between  email,  PPC   and  social  media.  France  also  rate  organic  search  the  most  (55%)  and  show  a  rela7vely  higher  propor7on  towards  PPC   as  well  (27%).  Italy  who  represent  the  highest  propor7on  ra7ng  social  media  (22%)  also  rate  organic  search  the  most   (33%)  but  we  can  iden7fy  them  a  source  for  Meta-­‐Search  results  as  well  (11%).  Spain  is  split  evenly  between  both   organic  and  paid  search  (45%  for  each)  and  the  remaining  9%  rate  social  media  over  email,  mobile  and  meta-­‐search   which  has  not  been  selected.     The  US  is  similar  to  the  UK  except  with  a  higher  propor7on  ra7ng  social  media  (21%)  and  less  on  PPC  (15%).  Australia   are  also  very  similar  to  the  UK.  China  is  in  line  with  the  UK  but  showing  some  results  from  meta-­‐search.  India  is   comparable  to  the  US,  but  puts  more  weight  towards  social  media  (19%)  and  less  on  organic  search  lis7ngs.  Brazil  is   rela7vely  evenly  split  across  all  channels  except  meta-­‐search  and  mobile  are  not  listed.  
Most  influen.al  channels  by  region  respondents  represent   United  Kingdom 21% 3%2% 33% 34% 8% Germany 0% 9% 73% 9% 9% France 0% 0% 9% 9% 55% 27% Italy 0% 11% 11% 33% 22% 22% Spain 0% 45% 45% 9% Global 20% 5% 2% 38% 22% 14% United  States 21% 7% 2% 34% 15% 21% Australia 0% 15% 3% 49% 21% 12% China 22% 9% 4% 22% 35% 9% India 22% 3% 3% 32% 20% 19% Brazil 0% 29% 29% 29% 14% 0% 25% 50% 75% 100% %  of  respondents  based  on  the  country  in  which  the  respondent  is  specifically  located
SecOon  7:     Marke.ng  Budgets
Marke.ng  Budgets   Most  Recent  Quarter   Respondents  of  the  survey  are  clearly  less  inclined  to  the  majority  of  offline  marke7ng  tac7cs  in  comparison  to  online,   except  perhaps  print  adver7sing  where  30%  do  did  not  allocate  any  budget  towards  this.  56%  of  all  travel  companies  in   the  survey  invested  more  budget  towards  website  design/re-­‐design  in  the  last  quarter.  This  is  the  category  showing  the   largest  growth  amongst  respondents.  The  second  largest  growth  area  is  social  media  marke7ng  (not  including  the   adver7sements)  with  53%  of  respondents  alloca7ng  more  budget  in  the  last  quarter.  Just  19%  are  not  alloca7ng   anything  towards  this.  In  terms  of  social  media  adver7sements  37%  increased  their  budgets  for  this,  30%  allocated  the   same,  4%  reduced  the  budget  and  29%  did  not  allocate  any.    Email  marke7ng  is  the  third  largest  growth  category  and   one  of  the  most  common  marke7ng  ac7vi7es  invested  in.  43%  allocated  more  budget  in  the  last  quarter,  40%   alloca7ng  the  same  and  8%  alloca7ng  less.  Mobile    marke7ng  is  being  invested  in  by  half  of  the  respondents  to  some   degree.  A  quarter  of  all  respondents  increased  their  budget  for  mobile  marke7ng  in  the  last  quarter.  The  biggest   reduc7on  in  budget  is  towards  print  adver7sing  at  20%,  following  by  direct  mail  (14%)  and  display  online  adver7sing   (13%). In  the  last  3  months  did  you  allocate  more  or  less  budget  to  the  following  markeOng  acOviOes  compared  to  the   previous  quarter: More The same Less None Website  design  /  re-­‐design 56% 30% 6% 8% Paid  search  engine  optimisation  (PPC 39% 30% 11% 21% Strategic  links  and  online  sponsorship   33% 39% 9% 19% Local  search  listings 20% 44% 10% 26% Travel  meta-­‐search   19% 40% 10% 32% Display  online  advertising  e.g.  banners 27% 32% 13% 29% Email  marketing   43% 40% 8% 10% Social  media  advertisements 37% 30% 4% 29% Other  social  marketing:  Facebook,  Flickr,  Twitter,  Youtube,  etc 53% 26% 3% 19% Mobile  marketing:  via  mobile  website,  SMS  or  application   25% 21% 5% 50% TV  advertising 9% 16% 7% 67% Outdoor  advertising 13% 21% 10% 57% Experiential  marketing 14% 26% 6% 54% Consumer  events  /  event  sponsorship 21% 33% 9% 37% Print  advertising   16% 33% 20% 30% Direct  mail  (postal)   13% 22% 14% 51% 0% 25% 50% 75% 100% %  of  all  travel  companies Marke(ng  Investment  by  MarkeOng  Budget  Size In  the  following  sec7on  we  have  considered  the  ac7vi7es  amongst  different  marke7ng  budgets  and  some  trends  have   been  revealed.  Website  design/re-­‐design  does  not  indicate  any  major  trends.  It  is  worth  poin7ng  out  that  the  lower   end  of  the  budget  ranges  less  companies  have  invested  anything  at  all  perhaps  as  the  sites  are  less  complex  than  some   of  the  large  companies.  However  across  all  budget  categories  we  can  see  that  the  majority  have  allocated  more  budget   in  the  last  quarter  towards  their  websites.
More The same Less None Website  Design  /  Re-­‐Design   Less  than  $25k 52% 21% 5% 22% $26k  -­‐  $50k 43% 33% 10% 13% $50k  -­‐  $100k 63% 29% 5% 3% $201k  -­‐  $300k 60% 32% 4% 4% $301k  -­‐  $400k Marketing  Budget 56% 28% 6% 11% $401k  -­‐  $500k 55% 30% 5% 10% $501k  -­‐  $750k 0% 61% 39% $751k  -­‐  $1  million 53% 31% 13% 3% $1.1  million  -­‐  $2  million 0% 54% 41% 5% $2.1  million  -­‐  $5  million 0% 62% 24% 14% $5.1  million  -­‐  $10  million 68% 24% 6% 3% $10.1  million  -­‐  $50  million 52% 40% 5% 2% $51  million  -­‐  $100  million 0% 58% 33% 8% $101million  + 59% 30% 4% 7% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Direct  Mail  (Postal) Less  than  $25k 18% 12% 8% 62% $26k  -­‐  $50k 8% 20% 18% 53% $50k  -­‐  $100k 12% 24% 17% 48% $201k  -­‐  $300k 0% 18% 22% 60% $301k  -­‐  $400k 17% 22% 22% 39% Marketing  Budget $401k  -­‐  $500k 20% 45% 5% 30% $501k  -­‐  $750k 22% 33% 6% 39% $751k  -­‐  $1  million 13% 16% 13% 59% $1.1  million  -­‐  $2  million 14% 22% 22% 43% $2.1  million  -­‐  $5  million 11% 16% 14% 60% $5.1  million  -­‐  $10  million 6% 38% 12% 44% $10.1  million  -­‐  $50  million 12% 29% 10% 50% $51  million  -­‐  $100  million 8% 25% 25% 42% $101million  + 4% 19% 48% 30% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Direct  mail  which  is  not  a  marke7ng  ac7vity  invested  in  by  the  majority  of  travel  companies  across  all  marke7ng   budget  ranges.  We  can  see  that  as  the  marke7ng  budget  increases,  the  investment  in  direct  mail  does  become   rela7vely  less  but  a  correla7on  is  not  clear  cut.  In  terms  of  those  alloca7ng  more  budget  it  is  slightly  skewed  towards   the  lower  end  o  the  budget  scale.  
Print  Adver.sing   More The same Less None Less  than  $25k 13% 26% 10% 52% $26k  -­‐  $50k 7% 38% 25% 30% $50k  -­‐  $100k 17% 31% 27% 25% $201k  -­‐  $300k 10% 44% 4% 42% $301k  -­‐  $400k Marketing  Budget 39% 17% 28% 17% $401k  -­‐  $500k 20% 40% 10% 30% $501k  -­‐  $750k 22% 28% 17% 33% $751k  -­‐  $1  million 12% 31% 25% 31% $1.1  million  -­‐  $2  million 27% 22% 30% 22% $2.1  million  -­‐  $5  million 16% 43% 22% 19% $5.1  million  -­‐  $10  million 18% 41% 21% 21% $10.1  million  -­‐  $50  million 14% 36% 29% 21% $51  million  -­‐  $100  million 25% 33% 25% 17% $101million  + 22% 37% 30% 11% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Print  adver7sing  is  invested  in  more  by  those  with  higher  marke7ng  budgets  but  those  that  do  par7cipate  in  this   ac7vity  have  revealed  similar  results  for  the  last  quarter.  The  biggest  growth  is  seen  amongst  the  $3001  -­‐  $400k  range   at  39%.   Consumer  Events  /  Event  Sponsorship   Less  than  $25k 14% 18% 14% 54% $26k  -­‐  $50k 20% 33% 10% 37% $50k  -­‐  $100k 20% 32% 12% 36% $201k  -­‐  $300k 30% 30% 2% 38% $301k  -­‐  $400k Marketing  Budget 22% 17% 22% 39% $401k  -­‐  $500k 0% 40% 25% 35% $501k  -­‐  $750k 0% 28% 39% 33% $751k  -­‐  $1  million 22% 34% 6% 37% $1.1  million  -­‐  $2  million 30% 46% 5% 19% $2.1  million  -­‐  $5  million 22% 32% 8% 38% $5.1  million  -­‐  $10  million 21% 38% 6% 35% $10.1  million  -­‐  $50  million 17% 48% 5% 31% $51  million  -­‐  $100  million 17% 42% 8% 33% $101million  + 11% 63% 11% 15% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category The  mid  range  marke7ng  budgets  have  been  alloca7ng  more  towards  consumer  events  or  event  sponsorship.   Increases  are  reduced  at  the  lower  and  higher  end  of  the  budget  scale.  The  majority  of  companies  are  maintaining  the   budget  towards  this  ac7vity  so  we  are  not  seeing  a  huge  change  amongst  most  budget  ranges.  
Experien.al  Marke.ng   More The  same Less None Less  than  $25k 11% 14% 6% 69% $26k  -­‐  $50k 17% 25% 7% 52% $50k  -­‐  $100k 10% 20% 14% 56% $201k  -­‐  $300k 24% 20% 2% 54% $301k  -­‐  $400k 0% 33% 6% 61% $401k  -­‐  $500k 0% 20% 45% 35% $501k  -­‐  $750k 0% 11% 28% 61% $751k  -­‐  $1  million 16% 28% 9% 47% $1.1  million  -­‐  $2  million 8% 49% 3% 41% $2.1  million  -­‐  $5  million 16% 22% 3% 60% $5.1  million  -­‐  $10  million 15% 29% 6% 50% $10.1  million  -­‐  $50  million 10% 33% 7% 50% $51  million  -­‐  $100  million 17% 25% 8% 50% $101million  + 19% 37% 11% 33% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Experien7al  marke7ng  is  invested  in  by  a  smaller  propor7on  of  the  industry.  The  biggest  budget  range  par7cipa7ng  is   the  top  budget  range.  Some  growth  can  be  seen  in  all  ranges  except  one  but  the  majority  are  not  changing  their   budget  alloca7on.   Outdoor  Adver.sing   Less  than  $25k 9% 17% 7% 67% 5% 20% 7% 68% $50k  -­‐  $100k 14% 8% 10% 68% 12% 18% 2% 68% Marketing  Budget $301k  -­‐  $400k 6% 17% 17% 61% 25% 30% 10% 35% $501k  -­‐  $750k 6% 28% 6% 61% 9% 22% 3% 66% $1.1  million  -­‐  $2  million 11% 27% 11% 51% 16% 19% 14% 51% $5.1  million  -­‐  $10  million 12% 26% 12% 50% 24% 26% 14% 36% $51  million  -­‐  $100  million 25% 42% 17% 17% 26% 33% 22% 19% 0% 25% 50% 75% 100% %  of  respondents  within  market  budget  category Outdoor  adver7sing,  used  mainly  by  those  with  larger  budgets,  has  shown  some  growth  amongst  those  with  budgets   over  $10.1  million.  Around  a  quarter  of  these  respondents  have  increased  their  budgets  towards  this  in  the  last  3   months.  22%  of  the  $101  million  and  over  have  also  decreased  their  alloca7on  towards  this.  The  only  other  category   that  stands  out  is  the  $401  -­‐  $500  range  with  a  quarter  of  this  group  also  increasing  their  outdoor  adver7sing  budgets.  
TV  Adver.sing   More The same Less None Less  than  $25k 3% 9% 6% 82% $26k  -­‐  $50k 3% 10% 8% 78% $50k  -­‐  $100k 5% 8% 10% 76% $201k  -­‐  $300k 4% 12% 2% 82% $301k  -­‐  $400k Marketing  Budget 6% 6% 6% 83% $401k  -­‐  $500k 15% 20% 5% 60% $501k  -­‐  $750k 0% 17% 11% 72% $751k  -­‐  $1  million 3% 19% 3% 75% $1.1  million  -­‐  $2  million 5% 35% 14% 46% $2.1  million  -­‐  $5  million 8% 8% 5% 78% $5.1  million  -­‐  $10  million 18% 29% 6% 47% $10.1  million  -­‐  $50  million 31% 26% 5% 38% $51  million  -­‐  $100  million 25% 33% 17% 25% $101million  + 30% 33% 15% 22% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category TV  adver7sing  unexpectedly  is  an  ac7vity  for  those  with  higher  budgets.  This  trend  is  clear.  For  those  within  the  higher   budget  categories,  around  30%  have  increased  budgets  for  this,  similar  propor7ons  have  kept  their  alloca7ons  the   same  and  in  the  top  budget  category  15%  have  allocated  less.   Mobile  marke.ng:  via  mobile  website,  SMS  or  applica.on Less  than  $25k 13% 14% 5% 68% $26k  -­‐  $50k 17% 25% 7% 52% $50k  -­‐  $100k 22% 15% 5% 58% $201k  -­‐  $300k 22% 18% 4% 56% $301k  -­‐  $400k Marketing  Budget 11% 22% 11% 56% $401k  -­‐  $500k 30% 25% 5% 40% $501k  -­‐  $750k 39% 11% 6% 44% $751k  -­‐  $1  million 22% 28% 6% 44% $1.1  million  -­‐  $2  million 0% 24% 32% 43% $2.1  million  -­‐  $5  million 27% 24% 8% 41% $5.1  million  -­‐  $10  million 35% 18% 3% 44% $10.1  million  -­‐  $50  million 0% 43% 24% 33% $51  million  -­‐  $100  million 0% 50% 25% 25% $101million  + 41% 26% 7% 26% 0% 25% 50% 75% 100% %  respondents  within  marketing  budget  category Mobile  marke7ng  investment  has  grown  more  in  the  higher  budget  categories.  For  example  of  those  in  the  top   category,  41%  increased  their  budget  alloca7on  to  mobile  marke7ng  in  the  last  3  months.  There  is  a  clear  correla7on   between  marke7ng  budget  and  mobile  investment  at  the  moment.  
More The same Less None Other  social  marke.ng:  Facebook,  Flickr,  Twiper,  Youtube,  etc Less  than  $25k 45% 18% 4% 34% $26k  -­‐  $50k 40% 38% 5% 17% $50k  -­‐  $100k 48% 29% 5% 19% $201k  -­‐  $300k 58% 24% 2% 16% $301k  -­‐  $400k Marketing  Budget 0% 39% 28% 33% $401k  -­‐  $500k 0% 65% 25% 10% $501k  -­‐  $750k 0% 78% 11% 11% $751k  -­‐  $1  million 47% 34% 3% 16% $1.1  million  -­‐  $2  million 0% 62% 24% 14% $2.1  million  -­‐  $5  million 60% 27% 3% 11% $5.1  million  -­‐  $10  million 56% 27% 3% 15% $10.1  million  -­‐  $50  million 0% 52% 38% 10% $51  million  -­‐  $100  million 0% 67% 17% 17% $101million  + 0% 63% 22% 15% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Social  media  marke7ng  displays  less  prominent  pamerns  across  different  budgets  ranges.  The  majority  of  companies  in   most  ranges  have  increased  their  investment  in  the  last  3  months.  Investment  in  this  medium  is  a  lot  more  common   than  many  of  the  other  marke7ng  ac7vi7es  which  is  quite  a  significant  shih  for  the  travel  industry  over  the  last  fee   years  as  companies  consider  it  a  more  serious  marke7ng  tac7c.     Social  media  adver.sements Less  than  $25k 34% 14% 4% 48% $26k  -­‐  $50k 30% 30% 5% 35% $50k  -­‐  $100k 24% 31% 5% 41% $201k  -­‐  $300k 44% 26% 2% 28% $301k  -­‐  $400k Marketing  Budget 22% 33% 11% 33% $401k  -­‐  $500k 0% 65% 20% 15% $501k  -­‐  $750k 39% 28% 6% 28% $751k  -­‐  $1  million 34% 34% 6% 25% $1.1  million  -­‐  $2  million 32% 46% 3% 19% $2.1  million  -­‐  $5  million 38% 38% 3% 22% $5.1  million  -­‐  $10  million 41% 41% 6% 12% $10.1  million  -­‐  $50  million 41% 48% 2% 10% $51  million  -­‐  $100  million 0% 42% 33% 25% $101million  + 0% 56% 30% 15% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Investment  in  social  media  adver7sements  show  less  growth  than  other  forms  of  social  marke7ng  but  growth   nonetheless.  Over  half  of  the  top  marke7ng  budget  group  have  allocated  more  budget  towards  this  (56%)  and  65%   amongst  the  $401-­‐$500k  range.  A  correla7on  with  marke7ng  budget  can  be  iden7fied  in  terms  of  ay  investment  with   the  lower  end  budgets  less  par7cipa7ve.  But  about  half  of  the  companies  with  budgets  below  $25k  have  invested  in   social  media  adver7sements  in  the  last  3  months.    
More The same Less None Email  Marke.ng   Less  than  $25k 35% 31% 12% 23% $26k  -­‐  $50k 43% 33% 13% 10% $50k  -­‐  $100k 54% 29% 3% 14% $201k  -­‐  $300k 36% 50% 8% 6% $301k  -­‐  $400k Marketing  Budget 0% 28% 56% 17% $401k  -­‐  $500k 50% 30% 10% 10% $501k  -­‐  $750k 0% 50% 39% 11% $751k  -­‐  $1  million 53% 41% 3% 3% $1.1  million  -­‐  $2  million 35% 49% 8% 8% $2.1  million  -­‐  $5  million 0% 51% 35% 14% $5.1  million  -­‐  $10  million 50% 38% 6% 6% $10.1  million  -­‐  $50  million 38% 57% 2%2% $51  million  -­‐  $100  million 0% 58% 33% 8% $101million  + 33% 56% 7% 4% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Email  marke7ng  investments  are  rela7vely  equal  across  all  marke7ng  budget  categories  amongst  those  that   par7cipate.  A  higher  propor7on  of  those  within  the  lower  budget  ranges  are  not  inves7ng,  for  example  23%  of  the   companies  with  less  than  $25k  marke7ng  budgets,  but  it  is  generally  clear  that  email  remains  a  significant  marke7ng   ac7vity  for  Travel.     Display  Online  Adver.sing   Less  than  $25k 14% 17% 11% 58% $26k  -­‐  $50k 15% 35% 15% 35% $50k  -­‐  $100k 25% 29% 14% 32% $201k  -­‐  $300k 26% 32% 12% 30% Marketing  Budget $301k  -­‐  $400k 11% 33% 17% 39% $401k  -­‐  $500k 35% 40% 10% 15% $501k  -­‐  $750k 33% 22% 33% 11% $751k  -­‐  $1  million 9% 44% 12% 34% $1.1  million  -­‐  $2  million 19% 54% 11% 16% $2.1  million  -­‐  $5  million 41% 24% 16% 19% $5.1  million  -­‐  $10  million 50% 32% 6% 12% $10.1  million  -­‐  $50  million 48% 33% 14% 5% $51  million  -­‐  $100  million 0% 58% 33% 8% $101million  + 41% 41% 15% 4% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Display  online  adver7sing  has  shown  more  growth  amongst  the  larger  budgets,  it  is  s7ll  an  important  ac7vity  for  these   companies.  The  correla7on  with  any  investment  and  budget  is  quite  clear  here.  However  there  has  been  a  quite   significant  propor7on  of  companies  reducing  their  budgets  towards  this  in  each  range,  especially  the  $501-­‐$750k   range  where  a  third  have  allocated  less  budget  towards  this  in  the  last  quarter.      
More The same Less None Travel  Meta-­‐Search   Less  than  $25k 17% 30% 4% 50% $26k  -­‐  $50k 7% 47% 10% 37% $50k  -­‐  $100k 20% 39% 15% 25% $201k  -­‐  $300k 24% 40% 12% 24% $301k  -­‐  $400k Marketing  Budget 11% 39% 6% 44% $401k  -­‐  $500k 0% 15% 40% 45% $501k  -­‐  $750k 22% 39% 11% 28% $751k  -­‐  $1  million 19% 37% 12% 31% $1.1  million  -­‐  $2  million 24% 49% 3% 24% $2.1  million  -­‐  $5  million 19% 38% 16% 27% $5.1  million  -­‐  $10  million 21% 44% 9% 27% $10.1  million  -­‐  $50  million 21% 52% 12% 14% $51  million  -­‐  $100  million 25% 33% 8% 33% $101million  + 22% 48% 15% 15% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Meta-­‐search  budgets  have  remained  important,  again  generally  the  higher  the  budget  the  more  investment.  More   companies  have  invested  the  same  towards  this  than  increased.         Local  Search  Lis.ngs   Less  than  $25k 17% 36% 4% 44% $26k  -­‐  $50k 13% 43% 18% 25% $50k  -­‐  $100k 29% 47% 8% 15% $201k  -­‐  $300k 18% 38% 10% 34% $301k  -­‐  $400k Marketing  Budget 17% 50% 11% 22% $401k  -­‐  $500k 0% 20% 60% 20% $501k  -­‐  $750k 44% 39% 6% 11% $751k  -­‐  $1  million 12% 47% 6% 34% $1.1  million  -­‐  $2  million 30% 43% 11% 16% $2.1  million  -­‐  $5  million 16% 43% 14% 27% $5.1  million  -­‐  $10  million 29% 35% 15% 21% $10.1  million  -­‐  $50  million 17% 57% 10% 17% $51  million  -­‐  $100  million 17% 42% 17% 25% $101million  + 11% 63% 11% 15% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Local  lis7ngs  do  not  reveal  any  trends  amongst  respondents.  Investment  is  rela7vely  mixed  across  all  budget  ranges.  
Strategic  Links  and  Online  Sponsorship   More The same Less None Less  than  $25k 21% 30% 9% 41% $26k  -­‐  $50k 22% 45% 8% 25% $50k  -­‐  $100k 46% 29% 12% 14% $201k  -­‐  $300k 40% 30% 10% 20% Marketing  Budget $301k  -­‐  $400k 28% 39% 6% 28% $401k  -­‐  $500k 0% 45% 45% 10% $501k  -­‐  $750k 50% 33% 6% 11% $751k  -­‐  $1  million 28% 53% 6% 13% $1.1  million  -­‐  $2  million 30% 49% 5% 16% $2.1  million  -­‐  $5  million 38% 43% 11% 8% $5.1  million  -­‐  $10  million 47% 26% 15% 12% $10.1  million  -­‐  $50  million 33% 55% 10% 2% $51  million  -­‐  $100  million 0% 42% 42% 17% $101million  + 22% 59% 7% 11% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Again,  no  key  pamerns  are  iden7fied  around  the  investment  in  strategic  links  and  online  sponsorship.  There  has  been   growth  across  all  ranges  and  for  the  lower  budget  range  it  is  not  a  priority  marke7ng  area.   Paid  Search  Optmisa.on  (PPC) Less  than  $25k 20% 23% 6% 52% $26k  -­‐  $50k 22% 42% 15% 22% $50k  -­‐  $100k 36% 27% 14% 24% $201k  -­‐  $300k 42% 26% 14% 18% $301k  -­‐  $400k Marketing  Budget 33% 22% 11% 33% $401k  -­‐  $500k 35% 25% 15% 25% $501k  -­‐  $750k 83% 6% 6% 6% $751k  -­‐  $1  million 34% 31% 19% 16% $1.1  million  -­‐  $2  million 57% 30% 11% 3% $2.1  million  -­‐  $5  million 51% 32% 8% 8% $5.1  million  -­‐  $10  million 47% 32% 6% 15% $10.1  million  -­‐  $50  million 0% 50% 38% 12% $51  million  -­‐  $100  million 0% 67% 33% $101million  + 41% 41% 15% 4% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category PPC  has  grown  more  for  the  bigger  players.  There  has  been  some  significant  growth  in  investment  for  this  ac7vity  and   it  has  certainly  been  an  important  area  in  the  last  quarter.  It  is  unusual  for  companies  with  larger  budgets  not  to   allocate  anything  towards  this.  More  companies  have  increased  their  budgets  towards  PPC  than  have  stayed  the  same.   There  has  been  some  reduc7on  by  around  15%  of  companies  in  most  ranges.          
Marke(ng  Investment  By  Company  Sector   Website  design  /  Re-­‐Design More The same Less None Hotel 54% 32% 6% 9% Other  accommodation 0% 68% 13% 19% Airline 44% 47% 6% 3% Car  Rental 0% 46% 38% 15% Cruise 0% 43% 43% 14% DMC  /  tourism  board 59% 23% 9% 9% Tour  operator 56% 25% 12% 7% Online  Travel  Agent  (OTA) 60% 30% 5% 5% Meta-­‐search 0% 60% 20% 20% Other  online  intermediary 54% 34% 5% 8% "Offline"  intermediary  /  Retail 54% 29% 8% 8% 0% 25% 50% 75% 100% %  of  respondents Again,  there  are  not  signifiant  differences  between  sectors  in  terms  of  investment  in  websites.  Most  have  either   increased  their  investments  or  remained  the  same,  but  more  have  increased  budgets  than  not.  Other  Accommoda7on   shows  the  highest  increase  at  68%  of  respondents.  The  biggest  reduc7on  is  for  meta-­‐search  sites.  
Paid  Search  Op.misa.on  (PPC) More The same Less None Hotel 46% 29% 9% 17% Other  accommodation 42% 10% 13% 36% Airline 29% 50% 12% 9% Car  Rental 0% 54% 15% 31% Cruise 29% 29% 14% 29% DMC  /  tourism  board 23% 41% 23% 14% Tour  operator 32% 36% 11% 21% Online  Travel  Agent  (OTA) 46% 27% 8% 19% Meta-­‐search 0% 40% 40% 20% Other  online  intermediary 35% 22% 19% 25% "Offline"  intermediary  /  Retail 8% 38% 17% 38% 0% 25% 50% 75% 100% %  of  respondents The  Car  Rental  sector  has  increased  their  budgets  towards  PPC  the  most  (54%).  46%  of  Hotel  companies  have  allocated   more  budget  and  42%  of  Other  Accommoda7on.  Online  intermediaries  are  also  at  similar  levels.  There  are  no  huge   differences  between  sectors  in  terms  of  PPC  investments  for  the  last  3  months.  
Strategic  Links  and  Online  Sponsorship More The same Less None Hotel 38% 41% 6% 15% Other  accommodation 13% 39% 10% 39% Airline 29% 56% 9% 6% Car  Rental 31% 54% 8% 8% Cruise 14% 29% 14% 43% DMC  /  tourism  board 32% 32% 9% 27% Tour  operator 33% 29% 16% 21% Online  Travel  Agent  (OTA) 32% 44% 9% 15% Meta-­‐search 0% 80% 20% Other  online  intermediary 38% 31% 5% 26% "Offline"  intermediary  /  Retail 13% 46% 13% 29% 0% 25% 50% 75% 100% %  of  respondents Meta-­‐search  companies  are  placing  their  amen7on  towards  this  ac7vity  the  most.  80%  of  respondents  from  this  sector   allocated  more  budget  towards  strategic  links  and  online  sponsorship  over  the  last  quarter.  It  is  also  revealed  that  all   companies  in  the  sector  allocated  some  budget  towards  this.   Cruise  did  not  invest  in  this  marke7ng  ac7vity  so  heavily.  43%  did  not  allocate  any  budget  at  all  in  the  last  quarter.  14%   reduced  their  budget.   Airline  and  Car  Rental  have  not  shihed  their  investments  for  this  during  the  last  quarter  with  the  majority  alloca7ng   the  same.  Around  30%  of  each  sector  have  increased  budget  though.   Hotel  companies  are  more  ac7ve  than  Other  Accommoda7on  in  general  and  have  shown  more  growth.  The  OTAs   indicate  a  similar  pamern  to  Hotel.    
Local  Search  Lis.ngs   More The same Less None Hotel 32% 48% 7% 13% Other  accommodation 13% 48% 3% 36% Airline 15% 59% 12% 15% Car  Rental 15% 54% 8% 23% Cruise 14% 29% 14% 43% DMC  /  tourism  board 18% 41% 9% 32% Tour  operator 20% 35% 13% 32% Online  Travel  Agent  (OTA) 8% 47% 12% 33% Meta-­‐search 0% 20% 80% Other  online  intermediary 20% 29% 11% 40% "Offline"  intermediary  /  Retail 4% 58% 13% 25% 0% 25% 50% 75% 100% %  of  respondents Local  search  lis7ngs  have  been  less  important  for  much  of  the  industry.  Meta-­‐search  quite  understandably    have  not   been  geong  involved  and  the  20%  that  were  alloca7ng  budget  have  stopped  in  the  last  3  months.  More  Hotels   companies  have  allocated  more  budget  to  this  (32%)  and  while  this  ac7vity  remains  important  for  most  sectors  there  is   quite  a  large  propor7on  across  all  sectors  that  do  not  invest  in  this.  Surprisingly  36%  of  Other  Accommoda7on  are  not   inves7ng  at  all.      
Travel  Meta-­‐Search More The same Less None Hotel 25% 46% 8% 22% Other  accommodation 16% 36% 7% 42% Airline 18% 59% 12% 12% Car  Rental 8% 46% 8% 38% Cruise 0% 14% 14% 71% DMC  /  tourism  board 0% 32% 36% 32% Tour  operator 11% 40% 16% 33% Online  Travel  Agent  (OTA) 17% 32% 12% 40% Meta-­‐search 0% 20% 80% Other  online  intermediary 18% 32% 6% 43% "Offline"  intermediary  /  Retail 13% 46% 8% 33% 0% 25% 50% 75% 100% %  of  respondents Travel  meta-­‐search  investments  were  increased  most  by  the  Hotel  and  DMC/tourism  board  sectors.  However  the   majority  of  sectors  have  kept  their  budgets  the  same.  Cruise  and  tour  operators  have  reduced  their  investments  the   most,  by  14%  of  `Cruise  and  16%  of  tour  operators.  While  18%  of  Airline  companies  have  increased  their  budgets  on   meta-­‐search  in  the  last  quarter,  59%  have  allocated  the  same.        
Display  Online  Adver.sing  e.g.  Banners   More The same Less None Hotel 32% 35% 14% 19% Other  accommodation 26% 19% 13% 42% Airline 41% 32% 18% 9% Car  Rental 0% 54% 31% 15% Cruise 0% 43% 43% 14% DMC  /  tourism  board 23% 23% 23% 32% Tour  operator 20% 32% 16% 32% Online  Travel  Agent  (OTA) 22% 33% 12% 33% Meta-­‐search 0% 20% 40% 40% Other  online  intermediary 19% 23% 9% 49% "Offline"  intermediary  /  Retail 17% 29% 12% 42% 0% 25% 50% 75% 100% %  of  respondents The  suppliers  have  increased  their  display  online  adver7sing  budgets  the  most.  Car  rental  show  a  par7cularly  high   propor7on  at  54%.  Airlines  follow  at  41%.  The  biggest  reduc7on  is  in  the  DMC/tourism  board  sector  and  the   intermediaries  are  par7cipa7ng  he  least.  Other  Accommoda7on  companies  are  also  not  huge  investors  in  this  ac7vity.      
Email  Marke.ng   More The same Less None Hotel 39% 46% 7% 8% Other  accommodation 42% 29% 10% 19% Airline 38% 47% 3% 12% Car  Rental 0% 31% 54% 15% Cruise 0% 71% 14% 14% DMC/  tourism  board 36% 46% 5% 14% Tour  operator 51% 36% 9% 4% Online  Travel  Agent  (OTA) 42% 40% 10% 8% Meta-­‐search 20% 20% 40% 20% Other  online  intermediary 48% 26% 6% 20% "Offline"  intermediary  /  Retail 0% 50% 42% 8% 0% 25% 50% 75% 100% %  of  respondents Cruise  companies  have  registered  the  biggest  increase  in  budget  for  email  marke7ng  for  the  last  quarter  (71%).   Pamerns  are  quite  similar  across  al  other  sectors,  except  meta-­‐search  companies  in  which  40%  have  allocated  less   budget  over  the  last  3  months.  
Social  Media  Adver.sements   More The same Less None Hotel 38% 33% 3% 27% Other  accommodation 36% 23% 3% 39% Airline 41% 38% 3% 18% Car  Rental 0% 38% 31% 31% Cruise 43% 14% 14% 29% DMC  /  tourism  board 0% 36% 18% 45% Tour  operator 36% 27% 11% 27% Online  Travel  Agent  (OTA) 28% 40% 4% 28% Meta-­‐search 0% 40% 40% 20% Other  online  intermediary 0% 43% 25% 32% "Offline"  intermediary  /  Retail 25% 29% 4% 42% 0% 25% 50% 75% 100% %  of  respondents Results  across  sectors  for  the  investment  in  social  media  adver7sements  is  similar.  The  majority  of  those  who  invest  at   al  have  increased  their  budgets  towards  this.  OTAs  represent  a  slightly  smaller  propor7on  that  have  increased  budgets   (28%)  but  overall  par7cipa7on  is  the  same  as  other  sectors.  
Other  social  marke.ng:  Facebook,  Flickr,  Twiper,  Youtube,  etc More The same Less None Hotel 58% 25% 2% 15% Other  accommodation 0% 39% 32% 29% Airline 62% 24% 3% 12% Car  Rental 0% 46% 31% 23% Cruise 0% 57% 14% 29% DMC  /  tourism  board 0% 55% 27% 18% Tour  operator 47% 27% 7% 20% Online  Travel  Agent  (OTA) 41% 36% 3% 21% Meta-­‐search 0% 40% 40% 20% Other  online  intermediary 66% 15% 3% 15% "Offline"  intermediary  /  Retail 0% 21% 42% 38% 0% 25% 50% 75% 100% %  of  respondents In  terms  of  ‘other  social  marke7ng’,  Airline  companies  and  other  intermediaries  indicate  the  highest  propor7on  with   budget  increases.  The  non  par7cipa7on  rates  is  rela7vely  similar  across  all  sectors  but  the  Hotel  and  Airline  sectors   more  ac7ve  than  Other  Accommoda7on,  Car  Rental  and  Cruise  for  example.  DMCs/tourism  boards  are  more  ac7ve  in   this  category  than  some  of  the  other  marke7ng  ac7vi7es  and  55%  have  increased  their  investment  in  the  last  quarter.   There  has  been  limle  reduc7on  in  budgets  for  this    across  all  sectors.  
Mobile  marke.ng:  via  mobile  website,  SMS  or  applica.on   More The same Less None Hotel 30% 20% 5% 45% Other  accommodation 6% 16% 6% 71% Airline 38% 29% 3% 29% Car  Rental 0% 38% 23% 38% Cruise 0% 29% 29% 43% DMC  /  tourism  board 23% 9% 14% 55% Tour  operator 17% 19% 9% 55% Online  Travel  Agent  (OTA) 20% 24% 3% 53% Meta-­‐search 0% 40% 60% Other  online  intermediary 29% 19% 2% 51% "Offline"  intermediary  /  Retail 0%4% 33% 63% 0% 25% 50% 75% 100% %  of  respondents Mobile  marke7ng  displays  more  varia7on  between  sectors.  The  biggest  propor7ons  increasing  their  budgets  are  in  the   Meta-­‐Search  (40%),  Car  Rental  (38%)  and  Airline  sectors  (38%).  Other  Accommoda7on  companies  are  not  inves7ng    in   mobile  very  much  with  71%  inves7ng  nothing.  Airline  and  Car  Rental  companies  are  the  most  ac7ve  at  the  moment.  
TV  Adver.sing   More The same Less None Hotel 9% 17% 13% 62% Other  accommodation 6% 10% 6% 77% Airline 12% 50% 12% 26% Car  Rental 0% 23% 77% Cruise 0% 14% 29% 57% DMC  /  tourism  board 9% 27% 5% 59% Tour  operator 12% 12% 9% 67% Online  Travel  Agent  (OTA) 10% 12% 3% 76% Meta-­‐search 0% 100% Other  online  intermediary 6% 6% 1% 86% "Offline"  intermediary  /  Retail 0% 8% 8% 83% 0% 25% 50% 75% 100% %  of  respondents TV  adver7sing  is  not  common  in  marke7ng  budgets  for  travel  companies.  This  plays  a  far  larger  part  in  the  Airline   budgets  than  any  other  sector.  There  has  not  been  much  change  for  the  sector  in  the  last  quarter  with  50%  alloca7ng   the  same  budget  and  just  12%  increasing  it.    
Outdoor  Adver.sing   More The same Less None Hotel 17% 24% 16% 43% Other  accommodation 7% 16% 3% 74% Airline 24% 50% 12% 15% Car  Rental 0% 23% 8% 69% Cruise 0% 43% 57% DMC  /  tourism  board 0% 14% 41% 46% Tour  operator 13% 20% 7% 60% Online  Travel  Agent  (OTA) 10% 13% 10% 67% Meta-­‐search 0% 100% Other  online  intermediary 5% 8% 3% 85% "Offline"  intermediary  /  Retail 8% 13% 4% 75% 0% 25% 50% 75% 100% %  of  respondents Outdoor  adver7sing  again  is  not  for  all  travel  companies.  Intermediaries  are  inves7ng  in  this  the  least.  The  major   growth  is  revealed  in  the  Airline  sector,  24%  have  increased  their  budget  alloca7on  towards  this  in  the  last  quarter.  For   Hotel  companies  around  the  same  number  have  reduced  budget  and  they  have  increased  and  almost  half  did  not   allocate  any  budget  to  this  at  all.  
Experien.al  Marke.ng   More The same Less None Tour  operator 16% 31% 9% 44% Other  online  intermediary 11% 12% 5% 72% Other  accommodation 10% 19% 3% 68% Online  Travel  Agent  (OTA) 9% 23% 8% 60% Meta-­‐search 0% 100% Hotel 16% 30% 6% 48% DMC/  tourism  board 27% 27% 5% 41% Cruise 0% 14% 29% 57% Car  Rental 0% 8% 31% 62% Airline 18% 44% 6% 32% "Offline"  intermediary  /  Retail 4% 17% 8% 71% 0% 25% 50% 75% 100% %  of  respondents Experien7al  marke7ng  varies  across  sectors  in  terms  of  par7cipa7on.    DMCs/tourism  boards  are  placing  the  most   emphasis  on  this  ac7vity,  27%  have  increased  the  budgets  in  the  last  quarter.  There  is  some  ac7vity  across  all  sectors   and  of  those  that  par7cipate,  pamerns  are  similar.  It  does  not  currently  appear  to  be  a  common  marke7ng  ac7vity  in   the  industry  though.  
Consumer  Events  and  Sponsorship   More The same Less None Tour  operator 20% 36% 15% 29% Other  online  intermediary 15% 15% 5% 65% Other  accommodation 19% 26% 10% 45% Online  Travel  Agent  (OTA) 15% 27% 5% 53% Meta-­‐search 0% 100% Hotel 25% 39% 9% 26% DMC  /  tourism  board 0% 41% 41% 18% Cruise 0% 14% 29% 57% Car  Rental 15% 31% 15% 38% Airline 24% 47% 15% 15% "Offline"  intermediary  /  Retail 8% 42% 8% 42% 0% 25% 50% 75% 100% %  of  respondents Consumer  events  and  event  sponsorship  is  also  less  common  amongst  intermediaries.  Meta-­‐search  did  not  par7cipate   at  all.  Again  DMCs/tourism  boards  appear  to  be  using  this  marke7ng  ac7vity  the  most.  A  quarter  of  Hotel  companies   also  increased  their  budgets  for  this  and  around  15%-­‐20%  for  other  sectors.  The  largest  reduc7on  was  in  the  Tour   Operator,  Car  Rental  and  Airlines  sectors.      
Print  Adver.sing   More The same Less None Hotel 16% 38% 30% 17% Other  accommodation 10% 42% 19% 29% Airline 21% 44% 24% 12% Car  Rental 0% 23% 8% 69% Cruise 14% 43% 14% 29% DMC  /  tourism  board 14% 36% 27% 23% Tour  operator 17% 41% 20% 21% Online  Travel  Agent  (OTA) 21% 21% 9% 50% Meta-­‐search 0% 100% Other  online  intermediary 14% 17% 14% 55% "Offline"  intermediary  /  Retail 25% 38% 8% 29% 0% 25% 50% 75% 100% %  of  respondents There  are  varying  results  for  print  adver7sing.  Meta-­‐Search,  OTAs  and  Car  Rental  invest  the  least.  The  largest   reduc7ons  are  within  the  Hotel,  Airline,  DMC/tourism  board  sectors  but  each  sector  has  registered  a  reduc7on  in   budget  towards  this  to  some  degree.  The  largest  increase  in  print  adver7sing  was  from  the  offline  intermediary  (retail)   sector  (25%)  and  OTAs  (21%)  and  Airline  companies  (21%)  have  also  raised  their  budgets  for  this.  It  is  clear  that  more   companies  reduced  budgets  rather  than  increased  but  it  is  definitely  not  dying  out  completely  as  a  form  of  marke7ng.      
Direct  Mail  (Postal)   More The same Less None Hotel 11% 25% 25% 39% Other  accommodation 13% 19% 10% 58% Airline 15% 32% 15% 38% Car  Rental 0% 8% 15% 77% Cruise 14% 57% 14% 14% DMC  /  tourism  board 23% 18% 9% 50% Tour  operator 19% 28% 13% 40% Online  Travel  Agent  (OTA) 10% 15% 3% 72% Meta-­‐search 0% 100% Other  online  intermediary 8% 9% 9% 74% "Offline"  intermediary  /  Retail 29% 21% 8% 42% 0% 25% 50% 75% 100% %  of  respondents Direct  mail  is  also  an  ac7vity  in  fewer  companies’  marke7ng  budgets.  Again,  online  intermediaries  and  Car  Rental  had   smaller  propor7ons  inves7ng  in  this.  DMCs/tourism  boards  and  offline  intermediaries  indicated  a  larger  propor7on   increasing  their  budgets  for  direct  mail  but  not  significantly  higher.  Cruise  are  large  investors  in  this  and  57%  have  not   changed  their  alloca7on  of  budget  for  direct  mail,  but  the  14%  increase  is  offset  by  the  14%  of  those  that  have  reduced   theirs.        
Marke.ng  Budgets   Next  Quarter Marke(ng  Investments  For  Next  Quarter  By  Company  Sector   Looking  forward  to  the  next  quarter,  we  expect  to  see  changes  and  improvements  to  many  travel  websites.  Al  Meta-­‐ Search  respondents  are  planning  on  increasing  their  budgets  for  their  websites  in  comparison  to  the  previous  quarter.   Around  60%  of  Hotel  and  Other  Accommoda7on  companies  plan  an  increase,  41%  of  Airline  and  46%  of  Car  Rental.   The  majority  of  other  respondents  are  keeping  the  same  amounts.     Meta-­‐Search  and  Hotel  companies  may  be  seen  more  in  the  paid  search  lis7ngs  in  the  next  quarter.  60%  of  Meta-­‐ Search  and  53%  of  Hotels  plan  an  increase  in  budget  towards  this.  Only  a  small  propor7on  of  travel  suppliers,  except   perhaps  Cruise,  will  not  be  alloca7ng  any  budget  to  PPC.     Increasing Staying the same Reducing There will be no budget for this Don't know Website  Design  /  Re-­‐design   Hotel 0% 59% 39% 2% 1% Other  accommodation 0% 61% 23% 10% 6% Airline 0% 41% 53% 3% 3% Car  Rental 0% 46% 46% 8% Cruise 0% 0% 29% 71% DMC  /  tourism  board 0% 41% 50% 5% 5% Tour  operator 0% 59% 32% 7% 3% Online  Travel  Agent  (OTA) 59% 31% 1%3% 6% Meta-­‐search 0% 0% 100% Other  online  intermediary 60% 32% 3% 2%3% "Offline"  intermediary  /  Retail 0% 46% 42% 4% 8% 0% 25% 50% 75% 100% %  of  respondents Paid  Search  Engine  Lis.ngs     Hotel 53% 33% 4% 5% 4% Other  accommodation 35% 39% 13% 6% 6% Airline 32% 50% 9% 6% 3% Car  Rental 0% 46% 38% 8% 8% Cruise 0% 0% 29% 57% 14% DMC  /  tourism  board 32% 32% 18% 5% 14% Tour  operator 40% 39% 7% 12% 3% Online  Travel  Agent  (OTA) 49% 31% 3% 13% 5% Meta-­‐search 0% 0% 60% 40% Other  online  intermediary 34% 37% 9% 19% 2% "Offline"  intermediary  /  Retail 13% 50% 21% 8% 8% 0% 25% 50% 75% 100% %  of  respondents
Online  Display  Adver.sing   Both  suppliers  and  online  intermediaries  are  planning  increases  in  display  adver7sing  budgets.  26%  of  Other   Accommoda7on  however  are  not  looking  at  this  ac7vity.  Across  all  sectors  a  rela7vely  similar  propor7on  of  those   increasing  budgets  will  be  keeping  them  the  same  but  nonetheless  inves7ng.  The  biggest  reduc7on  is  expected  from   DMCs/tourism  boards  (23%).   Increasing Staying the same Reducing There will be no budget for this Don't know Hotel 39% 41% 7% 7% 5% Other  accommodation 23% 35% 10% 26% 6% Airline 41% 38% 9% 6% 6% Car  Rental 0% 46% 38% 8% 8% Cruise 0% 0% 43% 43% 14% DMC  /  tourism  board 14% 36% 23% 14% 14% Tour  operator 20% 47% 8% 19% 7% Online  Travel  Agent  (OTA) 40% 31% 8% 12% 10% Meta-­‐search 0% 40% 20% 20% 20% Other  online  intermediary 26% 37% 11% 23% 3% "Offline"  intermediary  /  Retail 21% 38% 21% 17% 4% 0% 25% 50% 75% 100% %  of  respondents Email  Marke.ng   Email  marke7ng  is  expected  to  remain  important  for  the  travel  industry  over  the  next  quarter.  Meta-­‐Search  companies   are  intending  to  be  less  ac7ve  than  other  sectors  with  60%  inves7ng  to  some  extent.  Tour  Operators,  OTAs  and  the   ‘other  online  intermediary’  category  show  the  majority  of  companies  are  expec7ng  to  invest  in  email  marke7ng  with   very  few  not  alloca7ng  budget.  Car  Rental  are  expec7ng  to  con7nue  investment  but  remain  at  consistent  levels  for  the   next  quarter  (62%)  and  a  lower  15%  increasing  budget  towards  this.  Hotel  companies  are  puong  more  weight  towards   this  marke7ng  ac7vity  as  are  Cruise.     Hotel 41% 47% 6% 2% 3% Other  accommodation 32% 45% 3% 13% 6% Airline 35% 44% 6% 6% 9% Car  Rental 0% 15% 62% 8% 15% Cruise 0% 0% 57% 29% 14% DMC  /  tourism  board 32% 50% 5% 5% 9% Tour  operator 55% 39% 3% 3%1% Online  Travel  Agent  (OTA) 41% 50% 4% 1% 4% Meta-­‐search 0% 20% 40% 20% 20% Other  online  intermediary 46% 41% 3% 6% 3% "Offline"  intermediary  /  Retail 0% 42% 46% 8% 4% 0% 25% 50% 75% 100% %  of  respondents
Social  Media   The  majority  of  companies  across  all  sectors  are  planning  to  increase  their  investment  in  social  media  over  the  coming   quarter.  Car  rental  is  a  slight  excep7on  with  a  lower  propor7on  planning  to  increase  but  rather  keep  the  budget   alloca7on  the  same  as  the  previous.  Hotel  and  Airline  companies  are  looking  to  push  their  ac7vity  up  a  notch  with  65%   of  the  sectors  increasing  their  budgets  within  the  social  media  space.  Cruise  results  suggest  that  perhaps  social  media   isn’t  necessarily  working  so  well  because  29%  intend    to  reduce  budgets  towards  this  in  the  next  quarter.  Other   suppliers  (except  a  few  of  the  Other  Accommoda7on  sector)  clearly  rate  social  media  as  a  valuable  marke7ng  ac7vity. Increasing Staying the same Reducing There will be no budget for this Don't know Hotel 65% 28% 1%3% 3% Other  accommodation 48% 23% 3% 16% 10% Airline 0% 65% 27% 9% Car  Rental 0% 31% 54% 8% 8% Cruise 0% 0% 57% 14% 29% DMC  /  tourism  board 0% 59% 32% 9% Tour  operator 65% 20% 3% 7% 5% Online  Travel  Agent  (OTA) 55% 32% 4% 3% 6% Meta-­‐search 0% 0% 40% 60% Other  online  intermediary 0% 63% 34% 2% 2% "Offline"  intermediary  /  Retail 0% 62% 29% 4% 4% 0% 25% 50% 75% 100% %  of  respondents Mobile   Mobile  varies  more  across  sectors  again.  Meta-­‐Search  are  taking  mobile  very  seriously  and  80%  plan  an  increase  in   budget.  Both  suppliers  and  intermediaries  are  also  evidently  looking  towards  this  channel  though.  48%  of  Hotel   companies  will  increase  their  budget  for  mobile  and  a  large  62%  of  Airline  companies  too.  For  Car  Rental  which  we   have  established  are  already  the  most  ac7ve  in  mobile,  46%  plan  a  further  increase  with  just  15%  alloca7ng  no  budget   at  all.  Other  Accommoda7on  expect  to  be  less  ac7ve,  45%  plan  to  invest  to  some  degree  though.     Hotel 48% 24% 3% 13% 12% Other  accommodation 0% 16% 29% 39% 16% Airline 0% 62% 21% 12% 6% Car  Rental 0% 0% 46% 38% 15% Cruise 0% 57% 14% 14% 14% DMC  /  tourism  board 32% 36% 9% 14% 9% Tour  operator 40% 24% 7% 25% 4% Online  Travel  Agent  (OTA) 53% 19% 4% 12% 13% Meta-­‐search 0% 0% 80% 20% Other  online  intermediary 55% 23% 2% 15% 5% "Offline"  intermediary  /  Retail 0% 37% 17% 29% 17% 0% 25% 50% 75% 100% %  of  respondents
Offline  Marke.ng   Offline  marke7ng  is  not  on  the  cards  for  most  Meta-­‐Search  companies  and  60%  plan  to  market  wholly  online.  On  the   other  end  of  the  scale,  the  highest  propor7on  from  all  sectors  planning  an  increase  in  budgets  in  offline  marke7ng  is   Other  Accommoda7on  (36%).  The  largest  reduc7on  is  expected  from  the  Car  Rental  sector  (31%)  and  Hotel  (24%).   While  we  iden7fy  some  fairly  significant  increases,  such  as  Tour  Operator,  DMC/tourism  board  as  well,  and  decreases   as  men7oned  above,  the  majority  are  keeping  their  offline  marke7ng  budgets  the  same.     Increasing Staying the same Reducing There will be no budget for this Don't know Hotel 19% 42% 24% 9% 6% Other  accommodation 36% 26% 13% 16% 10% Airline 9% 56% 12% 12% 12% Car  Rental 15% 23% 31% 23% 8% Cruise 0% 14% 57% 14% 14% DMC  /  tourism  board 0% 23% 46% 18% 14% Tour  operator 31% 41% 16% 7% 5% Online  Travel  Agent  (OTA) 23% 35% 14% 19% 9% Meta-­‐search 0% 0% 40% 60% Other  online  intermediary 12% 35% 18% 26% 8% "Offline"  intermediary  /  Retail 0% 29% 54% 8% 8% 0% 25% 50% 75% 100% %  of  respondents
SecOon  8:     Online  Marke.ng  Ac.vi.es  -­‐  What’s  Working
Online  Marke.ng  Ac.vi.es  -­‐  What’s  Working   Search  engine  marke7ng  (29%  of  respondents)  and  email  marke7ng  (298%  of  respondents)    have  proved  the  most   successful  in  terms  of  campaign  for  the  last  quarter.  Mobile  marke7ng  has  only  proved  compara7vely  successful  for  3%   of  companies.  Social  marke7ng  is  up  there  (20%)  and  clearly  compe7ng  well  with  more  tradi7onal  online  marke7ng.   In  the  last  3  months  which  out  of  the  following  online  markeOng  formats  would  you  highlight  as  the  biggest  success   story  in  your  opinion  amongst  the  campaigns  you  did?        Note:  please  choose  one  only     Affiliate marketing Email marketing 6% 7% Mobile marketing Online advertising 20% Search engine marketing Social marketing - we did none of the above - 28% 29% 3% 8% Comparing  results  by  country  (of  the  respondent)  we  can  certainly  iden7fy  some  differences.  In  Europe  the  UK   predominantly  succeeded  the  most  with  search  engine  and  email  marke7ng.  A  small  propor7on  (3%)  considered   mobile  their  biggest  success  story  and  12%  for  social  media.  Germany  largely  favoured  their  search  engine  marke7ng   campaigns  and  placed  no  emphasis  on  mobile.  France  on  the  other  hand  indicate  a  significant  18%  of  respondents  that   considered  mobile  their  success  story.  On  the  whole  affiliate  marke7ng,  email  marke7ng  and  mobile  were  favoured   over  social  and  search  engine  campaigns.  Italy  were  very  happy  with  their  social  media  campaigns  and  did  not  feature   search  engine  marke7ng  at  all.  Spain  also  favoured  their  SEM  campaigns  as  well  as  affiliate  marke7ng.  Comparing   other  parts  of  the  world,  the  US  showed  a  very  similar  picture  to  the  UK  respondents,  but  with  slightly  more  emphasis   on  social  media.  Australia  also  rated  their  results  in  similar  propor7ons.  China  is  split  quite  evenly  between  affiliate,   email,  search  and  social  media  marke7ng.  India  experienced  more  success  with  email  campaigns  but  SEM  and  social   media  have  also  proved  successful  in  the  last  quarter.     United  Kingdom 5% 27% 3% 10% 42% 12% 2% Affiliate marketing Germany 0% 9% 9% 9% 55% 18% Email marketing Mobile marketing France 0% 27% 36% 18% 9% 9% Online advertising Country  of  respondent Italy 0% 0% 22% 11% 44% 22% Search engine marketing Social marketing Spain 0% 18% 14% 5% 36% 14% 14% - we did none of the above - United  States 5% 30% 4% 7% 25% 22% 7% Australia 0% 6% 30% 6% 42% 15% China 0% 17% 30% 26% 22% 4% India 5% 36% 2% 7% 31% 19% 2% Brazil 0% 43% 29% 29% 0% 25% 50% 75% 100% %  of  respondents
When  analysing  the  results  between  different  marke7ng  budget  ranges  we  have  not  iden7fied  any  clear  trends  at  all.   Affiliate marketing Email marketing Mobile marketing Online advertising Search engine marketing Social marketing - we did none of the above - Less  than  $25k 4% 32% 3% 8% 20% 21% 13% $26k  -­‐  $50k 0% 10% 20% 7% 30% 28% 5% $50k  -­‐  $100k 5% 36% 2% 8% 29% 15% 5% $201k  -­‐  $300k 10% 24% 2% 8% 20% 32% 4% $301k  -­‐  $400k 0% 33% 11% 22% 22% 11% Marketing  Budget $401k  -­‐  $500k 0% 5% 30% 10% 25% 15% 15% $501k  -­‐  $750k 0% 22% 17% 33% 28% $751k  -­‐  $1  million 6% 22% 6% 9% 28% 22% 6% $1.1  million  -­‐  $2  million 14% 32% 3% 14% 22% 11% 5% $2.1  million  -­‐  $5  million 0% 5% 35% 8% 8% 27% 16% $5.1  million  -­‐  $10  million 0% 6% 27% 9% 41% 15% 3% $10.1  million  -­‐  $50  million 0% 5% 29% 2% 52% 12% $51  million  -­‐  $100  million 0% 8% 8% 67% 17% $101million  + 11% 22% 11% 11% 26% 15% 4% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category SecOon  9:     Social  Media  Par.cipa.on   Travel  companies  are  more  ac7ve  in  Facebook  in  comparison  to  the  other  social  media  sites  listed.  82%  of  respondents   have  profiles  as  a  company,  not  personally.  This  is  very  significant  but  the  level  of  ac7vity  within  that  profile  does   obviously  vary  amongst  companies.  Twimer  has  also  amracted  64%  of  travel  companies  to  par7cipate.  Less  are  ac7ve  in   YouTube  and  Flickr.  LinkedIn  has  also  proved  a  useful  tool  for  travel  companies.       Do  you  as  a  company  (NOT  personally)  have  profiles  created  in  the  following  social  media  sites? %  of  respondents  who  have  a  profile  within  this  social  media  channel 90% 82% 68% 64% 45% 38% 40% 23% 20% 0% n ok be r r e ck di itt bo tu Fli ke Tw u ce Lin Yo Fa
There  is  not  a  huge  varia7on  between  company  sectors  in  terms  of  Facebook  profiles.  Car  Rental,  Other   Accommoda7on  and  offline  intermediaries  are  the  least  represented.  Twimer  profiles  are  more  common  amongst   Airline,  Cruise  and  Meta-­‐Search  and  the  least  represented  are  DMCs/tourism  boards,  Other  Accommoda7on  and  Tour   Operators.  YouTube  is  more  common  for  the  suppliers  which  makes  sense  based  on  the  nature  of  their  products.   Cruise  and  Car  Rental  are  the  leaders.  Linkedin  is  rela7vely  varied  with  Meta-­‐Search  leading  the  way  in  terms  of   presence  and  Cruise  not  par7cipa7ng  very  much.  Flickr  is  again  dominated  by  travel  suppliers  but  OTAs  are  playing  a   part.  Other  Accommoda7on  and  Car  Rental  are  the  most  dominant  sectors,  closely  followed  by  Hotel  and  Airline   sectors. Propor.on  with  a  Facebook  Profile   Hotel 87% Other  accommodation 68% Airline 85% Car  Rental 69% Cruise 86% DMC  /  tourism  board 82% Tour  operator 84% Online  Travel  Agent  (OTA) 81% Meta-­‐search 80% Other  online  intermediary 88% "Offline"  intermediary  /  Retail 58% 0% 23% 45% 68% 90% Propor.on  with  a  Twiper  Profile   Hotel 63% Other  accommodation 55% Airline 79% Car  Rental 62% Cruise 71% DMC  /  tourism  board 59% Tour  operator 56% Online  Travel  Agent  (OTA) 67% Meta-­‐search 80% Other  online  intermediary 77% "Offline"  intermediary  /  Retail 38% 0% 20% 40% 60% 80%
Propor.on  with  a  YouTube  Profile   Hotel 44% Other  accommodation 45% Airline 44% Car  Rental 54% Cruise 57% DMC  /  tourism  board 36% Tour  operator 32% Online  Travel  Agent  (OTA) 31% Meta-­‐search 20% Other  online  intermediary 32% "Offline"  intermediary  /  Retail 8% 0% 15% 30% 45% 60% Propor.on  with  a  LinkedIn  Profile   Hotel 41% Other  accommodation 29% Airline 35% Car  Rental 39% Cruise 14% DMC  /  tourism  board 41% Tour  operator 35% Online  Travel  Agent  (OTA) 50% Meta-­‐search 60% Other  online  intermediary 43% "Offline"  intermediary  /  Retail 38% 0% 15% 30% 45% 60% Propor.on  with  a  Flickr  Profile   Hotel 25% Other  accommodation 29% Airline 21% Car  Rental 31% Cruise DMC  /  tourism  board 27% Tour  operator 24% Online  Travel  Agent  (OTA) 13% Meta-­‐search Other  online  intermediary 14% 0% 10% 20% 30% 40%
Social  Media  Investment  in  the  Last  Quarter   “In  order  of  importance,  please  list  five  social  media  sites  you  have  invested  in  (.me  or  money),  in   the  last  3  months.” Rank  1:  Top  most  influen.al  social  media  traffic  source Facebook   is   by   far   the   homest   social   site   of   the   moment.   It   is   the   site   has   has   received   the   most   investment   over   the   last   quarter.    Twimer   is  also  the   most   invested   social   site   for   a   good   propor7on.   Looking   at   the   analysis   of   the   secondary   listed   sites   it   is  revealed  that   Twimer   is   the  dominant   sited   listed.  In   the   3rd   and   4th   rankings  we   start   to   see  YouTube,  LinkedIn,  Flickr   and   some   of   the   other   sites   emerge.           It   will   be   very   interes7ng   to   follow  the  trends  of  this.   Rank  2:  2nd  most  influen(al  social  media  traffic  source             Rank  3                 Rank  4
Preferred  Marke.ng  ROI If  you  could  choose  ONE  of  the  following  results  from  a  campaign  what  would  you  choose.   3% 16% 200 SMS responses 50 inbound enquiries to your call-centre 500 Facebook Likes 500 re-tweets 53% A 10% increase in brochure requests 17% A 5% increase in traffic to your website homepage 6% 4% A  5%  increase  in  traffic  to  a  website  is  certainly  the  winner  in  this  ques7on  overall.  53%  chose  this  as  their  favoured   campaign  result.  The  second  favourite  was  500  Facebook  likes  (17%)  and  closely  followed  by  50  inbound  enquiries  to  a   call  centre  (16%).   Comparing  preferences  between  different  sectors  indicates  some  differences.  Airlines  and  Meta-­‐Search  are   predominantly  choosing  a  5%  increase  to  their  website  which  makes  sense  due  to  the  volume  of  traffic  they  are  likely   to  receive  in  general.  Cruise,  DMC/tourism  board  and  offline  intermediaries  favour  the  inbound  enquiries  to  call   centres.  Facebook  likes  are  preferred  mainly  by  Car  Rental,  Other  Accommoda7on,  and  Tour  Operators.     200 SMS responses 50 inbound enquiries to your call-centre 500 Facebook Likes 500 re-tweets A 10% increase in brochure requests A 5% increase in traffic to your websites? homepage Hotel 2% 13% 15% 5% 2% 64% Other  accommodation 6% 19% 26% 3% 13% 32% Airline 0% 3% 9% 3% 3% 82% Car  Rental 0% 8% 0% 31% 62% Cruise 0% 0% 43% 14% 43% DMC  /  tourism  board 9% 36% 5% 9% 5% 36% Tour  operator 4% 19% 25% 4% 11% 37% Online  Travel  Agent  (OTA) 3% 19% 13% 9% 1% 55% Meta-­‐search 0% 0% 20% 80% Other  online  intermediary 3% 9% 23% 12% 3% 49% "Offline"  intermediary  /  Retail 0% 13% 33% 13% 13% 29% 0% 25% 50% 75% 100% %  of  respondents
When  analysing  the  results  based  on  marke7ng  budget  we  can  iden7fy  quite  clear  pamern  in  the  choice  of  answer.  The   higher  the  budget  the  more  the  web  traffic  is  preferred,  probably  correla7ng  to  the  volume  of  traffic  in  rela7on  to  the   size  of  the  company.  The  inbound  enquiries  are  preferred  as  we  look  towards  the  lower  end  of  the  budget  ranges.   Facebook  likes  are  spread  more  evenly  across  budgets.   200 SMS responses 50 inbound enquiries to your call-centre 500 Facebook Likes 500 re-tweets A 10% increase in brochure requests A 5% increase in traffic to your website homepage Less  than  $25k 9% 17% 19% 9% 8% 39% $26k  -­‐  $50k 2% 20% 28% 8% 2% 40% $50k  -­‐  $100k 5% 19% 19% 9% 7% 42% $201k  -­‐  $300k 0% 24% 16% 6% 8% 46% $301k  -­‐  $400k 0% 11% 17% 6% 11% 56% Marketing  Budget $401k  -­‐  $500k 0% 0% 15% 30% 5% 50% $501k  -­‐  $750k 0% 0% 11% 11% 11% 67% $751k  -­‐  $1  million 0%3% 16% 9% 3% 69% $1.1  million  -­‐  $2  million 3% 0% 19% 11% 3% 65% $2.1  million  -­‐  $5  million 0% 16% 22% 5% 5% 51% $5.1  million  -­‐  $10  million 0% 12% 9% 3% 3% 74% $10.1  million  -­‐  $50  million 0% 2% 14% 5% 5% 74% $51  million  -­‐  $100  million 0% 0% 17% 83% $101million  + 0% 7% 0% 11% 11% 70% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Social  Media  Aetudes     Social  media  is  evidently  having  posi7ve  impacts  for  the  majority  of  travel  companies.  47%  of  respondents  believe  that   social  media  has  generated  ROI  to  some  extent.  Quite  a  large  propor7on  (32%)  do  however  neither  agree  nor  disagree   so  there  is  s7ll  uncertainty  around  this.  Social  media  is  genera7ng  direct  bookings  for  51%  of  respondents.  18%   definitely  do  not  believe  that  social  media  has  generated  direct  bookings.  It  is  felt  that  social  media  has  improved   engagement  with  customers  by  the  majority  of  respondents  (59%).  Only  7%  disagree.  We  can  iden7fy  the  growth  in   social  media  investment  from  the  last  two  ques7ons.  59%  increased  investment  in  the  last  3  months  to  some  degree   and  68%  intend  to  increase  their  investment  over  the  next  3  months.     Below  are  a  number  of  statements  regarding  antudes  towards  social  media,  please  read  each  one  and  indicate  to   what  extent  you  agree  or  disagree:        Please  note:  if  you  are  not  acOvely  invesOng  in  social  media  markeOng  you  can   sOll  consider  travel  review  sites  and  social  networks  that  exist  independently  of  company  acOvity   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Social  media  has  generated  us  very  little  or  zero  return  on  investment  (ROI) 4% 17% 32% 32% 15% Social  media  has  generated  us  direct  bookings 7% 44% 32% 14% 4%  Social  media  has  improved  our  engagement  with  consumers 21% 51% 21% 5%2%  We  have  increased  our  investment  in  social  media  in  the  last  3  months   12% 47% 26% 11% 3% We  will  be  increasing  our  investment  in  social  media  over  the  next  3  months   17% 51% 22% 8% 2% 0% 25% 50% 75% 100%
Social  Media  AUtudes  By  Company  Sector   The  results  suggest  that  the  sectors  experiencing  the  best  returns  from  social  media  are  Airline  and  DMC/tourism   board  sectors  because  56%  of  airlines  and  59%  of  DMs  and  tourism  boards  do  not  agree  with  the  statement.  Other   sectors  do  closely  follow.  In  terms  of  a  lack  of  ROI  the  Cruise  sector  stands  out  the  most  with  43%  agreeing  with  the   statement.  OTAs  are  also  not  convinced  about  their  returns  to  date.  Meta-­‐Search  are  not  en7rely  sure  about  the   results.   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Social  media  has  generated  us  very  liple  or  zero  return  on  investment  (ROI) Hotel 4% 13% 33% 35% 15% Other  accommodation 13% 13% 29% 36% 10% Airline 0% 15% 29% 35% 21% Car  Rental 0% 31% 38% 23% 8% Cruise 0% 0% 43% 43% 14% DMC  /  tourism  board 5% 14% 23% 41% 18% Tour  operator 4% 15% 35% 28% 19% Online  Travel  Agent  (OTA) 6% 24% 29% 32% 8% Meta-­‐search 0% 0% 20% 80% Other  online  intermediary 0% 18% 28% 31% 23% "Offline"  intermediary  /  Retail 4% 25% 33% 29% 8% 0% 25% 50% 75% 100% %  of  respondents DMCs  and  tourism  boards  reveal  the  most  success  in  terms  of  direct  bookings  from  social  media  with  78%  agreeing   with  the  statement.  Airlines  are  also  par7cularly  posi7ve  about  this  (62%  of  respondents  agree  to  some  degree).  The   sector  where  social  has  been  least  impacxul  to  direct  bookings  is  the  offline  intermediary  sector,  OTAs  and  Other   Accommoda7on.  DMCs  and  tourism  boards  are  again  proving  to  be  finding  the  best  results  with  consumer   engagement  (82%  agree  to  some  degree).  Meta-­‐Search  are  not  finding  it  is  working  as  well  for  all  of  them  (20%   disagree)  and  OTAs  13%  disagree.  Hotel,  Airline  and  Car  Rental  are  repor7ng  similar  levels  in  aotudes  towards  social   media  and  consumer  engagement,  predominantly  posi7ve.   Social  media  has  generated  us  direct  bookings Hotel 7% 46% 33% 13% 2% Other  accommodation 0% 45% 29% 13% 13% Airline 6% 56% 24% 12% 3% Car  Rental 0% 0% 39% 54% 8% Cruise 0% 0% 43% 43% 14% DMC  /  tourism  board 0% 14% 64% 14% 9% Tour  operator 8% 41% 33% 12% 5% Online  Travel  Agent  (OTA) 10% 41% 26% 19% 4% Meta-­‐search 0% 20% 40% 20% 20% Other  online  intermediary 9% 39% 42% 9% 2% "Offline"  intermediary  /  Retail 0%4% 33% 33% 29% 0% 25% 50% 75% 100% %  of  respondents
Social  media  has  improved  our  engagement  with  consumers Hotel 21% 56% 19% 2%2% Other  accommodation 16% 48% 26% 3% 7% Airline 32% 44% 15% 6% 3% Car  Rental 0% 8% 0% 69% 23% Cruise 0% 0% 57% 43% DMC  /  tourism  board 0% 36% 46% 14% 5% Tour  operator 20% 43% 27% 7% 4% Online  Travel  Agent  (OTA) 14% 49% 24% 12% 1% Meta-­‐search 0% 0% 40% 40% 20% Other  online  intermediary 0% 28% 54% 15% 3% "Offline"  intermediary  /  Retail 0% 21% 46% 21% 13% 0% 25% 50% 75% 100% %  of  respondents We  have  increased  our  investment  in  social  media  in  the  last  3  months The  most  investment  from  social  media  has  come  from  the  Airline  and  Cruise  sectors  in  the  last  quarter.  The  biggest   non-­‐investments  sectors  have  been  in  the  Car  Rental,  DMC/tourism  board,  Tour  Operator,  OTA  and  offline   intermediary  sectors.   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Hotel 10% 48% 27% 12% 3% Other  accommodation 7% 55% 29% 3% 7% Airline 21% 50% 24% 3% 3% Car  Rental 0% 15% 31% 38% 15% Cruise 0% 0% 14% 57% 29% DMC  /  tourism  board 0% 9% 46% 32% 14% Tour  operator 11% 37% 25% 20% 7% Online  Travel  Agent  (OTA) 13% 44% 23% 17% 4% Meta-­‐search 0% 0% 60% 20% 20% Other  online  intermediary 0% 17% 60% 20% 3% "Offline"  intermediary  /  Retail 0% 0% 50% 38% 13% 0% 25% 50% 75% 100% %  of  respondents In  the  upcoming  quarter,  we  expect  further  investment  in  social  media  by  airlines  and  almost  a  quarter  of  respondents   are  strongly  agreeing  that  they  are  planning  an  increase  with  an  addi7onal  44%  agreeing.  The  biggest  propor7ons  that   agree  to  some  extent  are  the  Hotel,  Cruise,  DMC/tourism  board  and  offline  intermediary  sectors.  It  seem  more  offline   intermediaries  are  moving  into  this  space  over  the  next  quarter  in  comparison  to  last,  this  can  also  be  seen  in  the  Tour   Operator  and  Hotel  sectors.  Meta-­‐Search  are  not  expec7ng  too  much  change  except  there  is  clearly  some  delibera7on   as  to  the  value  as  40%  have  moved  into  the  neutral  ra7ng  from  posi7ve.
Yes No Don't  know We  will  be  increasing  our  investment  in  social  media  over  the  next  3  months Hotel 18% 54% 19% 7% 2% Other  accommodation 10% 55% 23% 6% 6% Airline 24% 44% 27% 3% 3% Car  Rental 0% 0% 15% 38% 46% Cruise 0% 0% 71% 29% DMC  /  tourism  board 0% 14% 59% 14% 14% Tour  operator 11% 51% 23% 12% 4% Online  Travel  Agent  (OTA) 17% 46% 23% 13% 1% Meta-­‐search 0% 0% 40% 40% 20% Other  online  intermediary 0% 22% 49% 26% 3% "Offline"  intermediary  /  Retail 0% 13% 63% 21% 4% 0% 25% 50% 75% 100% %  of  respondents Loca.on  Based  Marke.ng   More  travel  companies  included  loca7ons  based  marke7ng  in  their  ac7vi7es  in  the  last  3  months  than  not.  46%   included  some  kind  of  LBM  ac7vity.   Did  any  of  your  markeOng  acOviOes  in  the  last  3  months  include  locaOon-­‐based  markeOng? 50% 46% 38% 40% 25% 13% 14% 0% es ni pa om l  c ve ra l  t Al
Loca(on  Based  Marke(ng  By  Company  Sector   Yes No Don't know Hotel 60% 26% 14% Other  accommodation 39% 42% 19% Airline 44% 41% 15% Car  Rental 46% 31% 23% Cruise 0% 43% 57% DMC  /  tourism  board 55% 27% 18% Tour  operator 43% 43% 15% Online  Travel  Agent  (OTA) 32% 54% 14% Meta-­‐search 0% 40% 60% Other  online  intermediary 34% 55% 11% "Offline"  intermediary  /  Retail 38% 42% 21% 0% 25% 50% 75% 100% %  of  respondents Hotel  companies  are  evidently  the  most  ac7ve  in  loca7on  based  marke7ng  (60%)  followed  by  DMCs/tourism  boards   (55%).  There  is  not  much  difference  between  the  ac7vity  across  other  sectors.  
SecOon  10:     Mobile
Mobile   Mobile  websites  are  slightly  more  developed  in  comparison  to  apps  to  date.  35%  of  all  respondents  currently  have  a   mobile  version  of  their  website  available,  61%  do  not.  24%  have  already  developed  a  mobile  applica7on  for  their   brand,  71%  have  not.          Is  there  a  mobile  version  of  your  website  available? A  downloadable  mobile  app  available  for  your  brand? 70% 80% 61% 71% 53% 60% 35% 40% 35% 18% 20% 24% 0% 4% 0% 5% All  travel  companies All  travel  companies Yes No Don't know Considering  the  results  between  different  marke7ng  budget  ranges  we  can  iden7fy  a  fairly  clear  clear  trend  showing  a   correla7on  between  size  of  marke7ng  budget  and  investment  in  mobile  websites.  For  example  in  the  top  marke7ng   budget  category  78%  have  a  mobile  version  of  their  website  available  and  22%  do  not,  against  15%  of  the  companies   with  budget  less  than  $25k  who  have  a  mobile  website  and  75%  that  do  not.     Mobile  Websites   Less  than  $25k 15% 75% 10% $26k  -­‐  $50k 32% 63% 5% $50k  -­‐  $100k 27% 68% 5% $201k  -­‐  $300k 38% 58% 4% Marketing  Budget $301k  -­‐  $400k 0% 28% 72% $401k  -­‐  $500k 30% 60% 10% $501k  -­‐  $750k 0% 50% 50% $751k  -­‐  $1  million 34% 63% 3% $1.1  million  -­‐  $2  million 0% 35% 65% $2.1  million  -­‐  $5  million 0% 32% 68% $5.1  million  -­‐  $10  million 41% 56% 3% $10.1  million  -­‐  $50  million 0% 60% 41% $51  million  -­‐  $100  million 75% 17% 8% $101million  + 0% 78% 22% 0% 25% 50% 75% 100% %  of  respondents
Mobile  Applica.ons   In  terms  of  mobile  applica7ons  where  investment  is  lower  overall,  we  can  also  iden7fy  a  similar  trends  with  a   correla7on  to  marke7ng  budget.  67%  of  the  top  budget  range  have  invested  in  an  app  again  8%  of  the  lowest  budget.   This  is  unsurprising  but  a  confirma7on  nonetheless  about  the  priority  of  travel  companies  in  the  current  environment.   Yes No Don't know Less  than  $25k 8% 81% 11% $26k  -­‐  $50k 10% 87% 3% $50k  -­‐  $100k 24% 73% 3% $201k  -­‐  $300k 20% 76% 4% $301k  -­‐  $400k 11% 83% 6% Makreting  Budget $401k  -­‐  $500k 25% 70% 5% $501k  -­‐  $750k 28% 67% 6% $751k  -­‐  $1  million 0% 22% 78% $1.1  million  -­‐  $2  million 24% 73% 3% $2.1  million  -­‐  $5  million 0% 24% 76% $5.1  million  -­‐  $10  million 38% 59% 3% $10.1  million  -­‐  $50  million 0% 48% 52% $51  million  -­‐  $100  million 58% 25% 17% $101million  + 67% 30% 4% 0% 25% 50% 75% 100% %  of  respondents Mobile  Investment  By  Country   Investment  in  mobile  does  vary  my  market.  France  have  proved  to  be  the  biggest  investors  in  both  mobile  websites   and  applica7ons  at  the  moment.  64%  of  respondents  from  France  have  reported  to  have  a  mobile  website  and  64%   have  an  applica7on.  Germany  follows  with  55%  with  a  mobile  website  and  55%  with  an  app.  Whilst  Brazil  report  to  be   in  the  high  end  of  the  scale  for  mobile  app  investment  (57%)  there  are  less  companies  repor7ng  to  have  developed  a   mobile  version  of  their  website  in  comparison  to  most  markets  (29%)  so  they  reverse  the  trend.  More  US  companies   have  invested  in  mobile  websites  in  comparison  to  UK  companies,  44%  and  31%  respec7vely.  In  terms  of  mobile  apps   the  US  and  UK  are  at  similar  levels  with  27%  of  US  companies  repor7ng  a  mobile  app  and  24%  of  UK  companies.  The   lowest  investors  in  mobile  websites  are  currently  India,  Brazil  and  Australia  (27%,  29%  and  30%).  In  the  context  of   mobile  apps  the  lowest  investors  are  currently  India  (19%),  Spain  (18%),  Australia  (21%)  and  Italy  (22%).         Mobile  Website United  Kingdom 31% 63% 6% Germany 0% 55% 46% France 0% 64% 36% Italy 0% 44% 56% Spain 0% 50% 50% Global 35% 61% 4% United  States 44% 52% 3% Australia 30% 64% 6% China 44% 48% 9% India 27% 64% 9% Brazil 0% 29% 71% 0% 25% 50% 75% 100%
Yes No Don't know Mobile  Applica.on   United  Kingdom 24% 75% 2% Germany 0% 55% 46% France 0% 64% 36% Italy 0% 22% 78% Spain 0% 18% 82% Global 24% 71% 5% United  States 27% 67% 6% Australia 0% 21% 79% China 26% 65% 9% India 19% 71% 10% Brazil 0% 57% 43% 0% 25% 50% 75% 100%   Mobile  Investment  By  Company  Sector   Performing  an  analysis  by  sector  reveals  that  Car  Rental  are  the  biggest  investors  in  mobile  websites  at  the  moment.   62%  have  a  mobile  website  but  Airline  companies  are  reported  to  be  higher  investors  in  apps;  47%  of  the  Airline  sector   have  an  app  in  comparison  to  39%  of  Car  Rental  companies.  Hotel  companies  are  also  rela7vely  more  ac7ve  in  the   mobile  space.  45%  of  Hotel  companies  report  to  have  a  mobile  website  available  but  they  have  put  less  amen7on   towards  mobile  apps  (26%).  Online  intermediaries  have  invested  more  in  mobile  apps  against  Hotel  companies;  Meta-­‐ Search  report  40%  of  companies  with  apps  and  OTAs  28%.  Tour  Operators  are  the  least  ac7ve  in  the  mobile  space;  12%   have  a  mobile  website  and  12%  have  an  app.  The  Other  Accommoda7on  sector  are  also  less  developed  in  this  area   and  report  23%  with  a  mobile  website  and  just  10%  with  an  app.  Cruise  are  also  repor7ng  smaller  numbers  with  29%   having  a  website  and  14%  with  an  app.   Mobile  Website   Hotel 45% 51% 3% Other  accommodation 23% 65% 13% Airline 50% 47% 3% Car  Rental 0% 62% 39% Cruise 0% 29% 71% DMC  /  tourism  board 23% 59% 18% Tour  operator 12% 83% 5% Online  Travel  Agent  (OTA) 38% 59% 3% Meta-­‐search 0% 20% 80% Other  online  intermediary 37% 60% 3% "Offline"  intermediary  /  Retail 0% 21% 79% 0% 25% 50% 75% 100% %  of  respondents
Mobile  Applica.on   Hotel 26% 68% 6% Other  accommodation 10% 74% 16% Airline 47% 50% 3% Car  Rental 0% 39% 62% Cruise 0% 14% 86% DMC  /  tourism  board 14% 73% 14% Tour  operator 12% 84% 4% Online  Travel  Agent  (OTA) 28% 69% 3% Meta-­‐search 0% 40% 60% Other  online  intermediary 0% 26% 74% "Offline"  intermediary  /  Retail 0% 13% 88% 0% 25% 50% 75% 100% %  of  respondents Importance  of  Mobile  in  Travel   We  have  ques7onned  where  the  travel  companies  are  seeing  the  value  in  mobile  at  the  moment  and  whilst  there  is   not  much  varia7on  across  the  different  uses,  we  can  see  that  47%  of  respondents  consider  mobile  important  for   marke7ng  and  informa7on  search  to  some  degree,  16%  rate  very  for  extremely  important  for  marke7ng  and  16%  for   informa7on  search.  The  least  important  area  for  our  respondents  is  for  opera7ons  related  purposes  for  which  41%  do   not  consider  this  important,  perhaps  due  to  the  nature  of  different  products.  Using  mobile  for  sales  is  also  considered   less  important  and  38%  rate  this  ‘not  important’.   How  important  has  the  MOBILE  channel  been  for  your  organisaOon  in  the  last  3  months?  Please  rate  on  the  scale   below  against  each  of  the  following: Extremely important Very important Important Neither important nor unimportant Not important For  sales 3% 7% 21% 29% 38% For  marketing 4% 12% 31% 24% 30% For  customer  Service   5% 11% 26% 26% 32% For  operations-­‐related  purposes  e.g.  check-­‐in 4% 9% 17% 30% 41% For  information  search 6% 10% 31% 24% 29% 0% 25% 50% 75% 100% %  of  respondents
Importance  of  Mobile  in  Travel  By  Company  Sector   It  is  assumed  different  product  types  and  opera7ons  will  find  value  in  different  uses  of  mobile  so  we  have  explored  the   responses  across  sectors.  In  terms  of  the  value  placed  on  mobile  for  sales  we  can  iden7fy  mixed  responses.  The  largest   propor7on  currently  ra7ng  mobile  for  sales  is  the  Car  Rental  sector.  62%  of  respondents  state  it  is  important  to  some   degree.  Meta-­‐Search  contrast  showing  40%  ra7ng  it  neither  important  nor  unimportant  and  60%  feel  it  is  not   important.  Cruise  and  Other  Accommoda7on  are  also  not  par7cularly  looking  at  mobile  as  a  sales  channel.  Airline   companies  rate  mobile  for  sales  the  most  aher  Car  Rental.  42%  of  the  Airline  sector  consider  mobile  for  sales   important  to  some  degree  including  9%  ra7ng  it  extremely  important.  The  Hotel  sector  reports  36%  who  consider   mobile  important  for  sales  and  33%  that  do  not.  Mobile  for  marke7ng  purposes  is  rated  more  highly  by  Hotel   companies;  52%  consider  it  important  to  some  degree  but  the  majority  (36%)  rate  it  ‘important’.  Other   Accommoda7on,  Cruise  and  Car  Rental  do  not  consider  mobile  such  a  strong  marke7ng  channel.  Meta-­‐Search   companies  feel  that  mobile  is  more  important  for  marke7ng  purposes  in  comparison  to  sales.  The  Hotel  sector  report   the  smallest  propor7on  of  companies  that  rate  mobile  ‘not  important’  at  20%.   Extremely important Very important Important Neither important nor unimportant Not important How  important  has  the  mobile  channel  been  in  the  last  3  months  for  sales?   Hotel 4% 7% 25% 31% 33% Other  accommodation 0%3% 10% 26% 61% Airline 9% 15% 18% 24% 35% Car  Rental 0% 8% 54% 39% Cruise 0% 14% 29% 57% DMC  /  tourism  board 5% 9% 18% 27% 41% Tour  operator 3% 7% 17% 32% 41% Online  Travel  Agent  (OTA) 5% 9% 19% 28% 39% Meta-­‐search 0% 40% 60% Other  online  intermediary 3% 3% 25% 42% 28% "Offline"  intermediary  /  Retail 0% 13% 21% 8% 58% 0% 25% 50% 75% 100% %  of  respondents How  important  has  the  mobile  channel  been  in  the  last  3  months  for  markeOng?   Hotel 4% 12% 36% 28% 20% Other  accommodation 0%3% 16% 19% 61% Airline 12% 12% 35% 15% 26% Car  Rental 0% 15% 31% 54% Cruise 0% 14% 29% 57% DMC  /  tourism  board 0% 14% 32% 23% 32% Tour  operator 1% 12% 29% 24% 33% Online  Travel  Agent  (OTA) 6% 12% 26% 24% 32% Meta-­‐search 0% 20% 40% 40% Other  online  intermediary 5% 12% 39% 25% 20% "Offline"  intermediary  /  Retail 4% 17% 13% 21% 46% 0% 25% 50% 75% 100% %  of  respondents
How  important  has  the  mobile  channel  been  in  the  last  3  months  for  customer  service?   Using  mobile  for  customer  service  is  rated  most  by  the  Airline  sector;  62%  rate  this  important  to  some  degree  and  21%   rate  not  important.  Im  comparison,  Meta-­‐Search  do  not  find  this  a  good  use  of  mobile  showing  80%  consider  this   unimportant.  DMCs/tourism  board  are  looking  to  mobile  for  this  use  more  than  many  other  sectors;  55%  rate  it   important  to  some  degree  and  23%  say  unimportant.  Cruise  again  do  not  see  the  value  of  mobile  in  customer  service,   71%  say  it  is  not  important.  OTAs  are  quite  divided  around  this;  40%  say  not  important,  24%  neither  important  nor   unimportant  and  36%  consider  it  important  to  some  degree.   Extremely important Very important Important Neither important nor unimportant Not important Hotel 6% 9% 28% 30% 28% Other  accommodation 3% 7% 16% 26% 48% Airline 9% 21% 32% 18% 21% Car  Rental 0% 8% 38% 15% 38% Cruise 0% 14% 14% 71% DMC  /  tourism  board 5% 32% 18% 23% 23% Tour  operator 7% 13% 21% 27% 32% Online  Travel  Agent  (OTA) 3% 6% 27% 24% 40% Meta-­‐search 0% 20% 80% Other  online  intermediary 3% 11% 29% 31% 26% "Offline"  intermediary  /  Retail 8% 17% 25% 17% 33% 0% 25% 50% 75% 100% %  of  respondents How  important  has  the  mobile  channel  been  in  the  last  3  months  for  operaOons-­‐related  purposes   e.g.  check-­‐in? Opera7ons-­‐related  purposes  are  reported  to  be  more  valued  by  the  Airline,  DMC/tourism  board  and  offline   intermediaries  based  on  the  smaller  propor7ons  ra7ng  this  unimportant.  This  is  the  use  that  Airline  companies  feel   more  strongly  about  and  21%  rate  this  extremely  important  with  a  further  39%  ra7ng  this  important  to  come  degree.   Apart  from  Car  Rental  which  report  39%  to  rate  this  important  to  some  degree,  most  other  remaining  sectors  are   siong  more  neutrally  ra7ng  neither  important  nor  unimportant.  This  excludes  Meta-­‐Search  who  fully  rate  this  use  not   important  as  this  is  less  relevant  for  their  customer  lifecycle  than  other  travel  sectors.   Hotel 2% 6% 19% 36% 38% Other  accommodation 0%3% 10% 16% 71% Airline 21% 21% 18% 18% 24% Car  Rental 8% 8% 23% 8% 54% Cruise 0% 14% 14% 71% DMC  /  tourism  board 9% 14% 14% 36% 27% Tour  operator 4% 16% 16% 28% 36% Online  Travel  Agent  (OTA) 1% 5% 17% 30% 47% Meta-­‐search 0% 100% Other  online  intermediary 5% 3% 23% 31% 38% "Offline"  intermediary  /  Retail 4% 17% 8% 38% 33% 0% 25% 50% 75% 100% %  of  respondents
How  important  has  the  mobile  channel  been  in  the  last  3  months  for  informaOon  search? Surprisingly  Meta-­‐Search  do  not  view  mobile  as  an  important  channel  fro  informa7on  search  showing  80%  ra7ng  this   ‘not  important’;  20%  consider  it  ‘important’.  The  Airline  sector  is  looking  to  mobile  as  an  informa7on  tool;  just  15%   rate  this  not  important  and  71%  consider  this  important  to  some  degree.  Hotel  companies  also  value  mobile  for   informa7on  search  purposes  more  than  other  sectors  repor7ng  55%  that  consider  it  important  to  some  degree.  This  is   the  use  that  Cruise  are  looking  towards  the  most  but  s7ll  only  14%  are  ra7ng  this.  OTAs  are  fairly  divided  again;  32%  do   not  rate  this  important,  28%  are  neutral  and  40%  feel  it  is  important  to  some  degree.   Overall,  the  Hotel  sector  show  rela7vely  consistent  results  across  all  poten7al  uses  of  mobile  but  slightly  lower  ra7ngs   for  sales  and  opera7ons  related  purposes.  Other  Accommoda7on  do  not  report  much  varia7on  between  uses  for  the   small  propor7on  who  consider  any  importance  at  all.  Airline  companies  favour  informa7on  search,  customer  service   and  opera7ons  related  purposes  slightly  more  than  sales  and  marke7ng.  Whilst  other  data  in  the  survey  has  indicated   a  compara7vely  higher  level  of  ac7vity  in  mobile  by  the  Car  Rental  sector,  there  is  quite  a  high  propor7on  within  all   poten7al  uses  that  rate  it  unimportant.  However,  this  sector  is  edging  on  sales  and  customer  services  as  a  more   valuable  purpose  of  mobile.  Cruise  as  men7oned  are  not  looking  hugely  towards  mobile  but  out  of  all  uses  they  favour   informa7on  search.  DMCs/tourism  boards  sit  rela7vely  evenly  across  all  categories  but  rate  customer  service  slightly   more  than  other  uses.  The  Tour  Operator  sector  are  also  quite  consistent  across  categories  but  the  weight  is  towards   customer  service.  OTAs,  although  not  enormously  varied,  are  ra7ng  more  on  marke7ng  and  informa7on  search  a  limle   more  than  other  purposes.  Meta-­‐Search  are  more  definite  repor7ng  marke7ng  and  informa7on  search  to  be  the  most   valued  use  for  this  sector,  but  as  men7oned  there  are  a  large  propor7on  who  are  not  ra7ng  any  use  at  all.  Offline   intermediaries  appear  more  interested  in  the  mobile  channel  in  rela7on  to  other  sectors  than  some  of  the  tradi7onal   online  ques7ons  in  the  survey.  For  this  sector,  customer  service  and  informa7on  search  are  more  important.           Extremely important Very important Important Neither important nor unimportant Not important Hotel 7% 8% 40% 24% 21% Other  accommodation 0% 19% 19% 61% Airline 9% 27% 35% 15% 15% Car  Rental 0% 8% 31% 15% 46% Cruise 0% 14% 43% 43% DMC  /  tourism  board 5% 9% 36% 18% 32% Tour  operator 7% 16% 20% 25% 32% Online  Travel  Agent  (OTA) 4% 9% 27% 28% 32% Meta-­‐search 0% 20% 80% Other  online  intermediary 8% 11% 29% 28% 25% "Offline"  intermediary  /  Retail 13% 4% 33% 17% 33% 0% 25% 50% 75% 100% %  of  respondents
Importance  of  Mobile  in  Travel  By  Country There  are  also  varia7ons  revealed  across  countries.  Brazil  rate  mobile  for  sales  the  least,  80%  rate  this  use  ‘not   important’.  India  and  Germany  show  the  lowest  propor7on  to  say  it  is  totally  unimportant.  France  and  India  make  up   the  majority  who  have  rated  this  extremely  important,  although  quite  small  propor7ons.  India  and  France  value   mobile  for  sales  the  most  out  of  all  countries  repor7ng  58%  and  45%  respec7vely  rate  mobile  for  sales  important  to   some  degree.  Spain  and  Australia  are  not  en7rely  sure  about  the  value  of  mobile  for  sales  and  show  the  lowest   propor7ons  valuing  a  posi7ve  degree  of  importance  but  with  larger  propor7ons  siong  neutrally.   Considering  informa7on  search,  this  is  where  Brazil  is  seeing  a  par7cular  value,  especially  in  comparison  to  sales.  57%   rate  this  important  and  just  14%  not  important.  France  top  the  country  with  the  most  posi7ve  ra7ngs  for  this  category   again,  18%  rate  this  extremely  important  and  overall  63%  of  respondents  from  France  consider  this  important  to  some   degree.  Germany  are  also  on  a  par  with  France  although  most  rate  this  ‘important‘.  Germany  also  along  with  Brazil  has   the  lowest  propor7on  who  rate  this  unimportant.     Extremely important Very important Important Neither important nor unimportant Not important How  important  has  the  mobile  channel  been  in  the  last  3  months  for  sales? United  Kingdom 0% 7% 21% 25% 46% Germany 0% 27% 45% 27% France 9% 18% 18% 18% 36% Italy 0% 33% 33% 33% Spain 0%5% 9% 36% 50% Global 3% 7% 21% 29% 38% United  States 3% 5% 23% 33% 35% Australia 0% 3% 9% 49% 39% China 0%4% 26% 35% 35% India 7% 7% 44% 17% 25% Brazil 0% 14% 86% 0% 25% 50% 75% 100% %  of  respondents How  important  has  the  mobile  channel  been  in  the  last  3  months  for  informaOon  search? United  Kingdom 5% 10% 21% 27% 37% Germany 0% 18% 45% 18% 18% France 18% 27% 18% 9% 27% Italy 0% 11% 44% 22% 22% Spain 0% 18% 18% 27% 36% Global 6% 10% 31% 24% 29% United  States 9% 7% 31% 28% 26% Australia 0% 3% 24% 42% 30% China 4% 9% 39% 26% 22% India 9% 12% 34% 17% 29% Brazil 0% 57% 29% 14% 0% 25% 50% 75% 100% %  of  respondents
How  important  has  the  mobile  channel  been  in  the  last  3  months  for  operaOons-­‐related  purposes   e.g.  check-­‐in? Extremely important Very important Important Neither important nor unimportant Not important United  Kingdom 5% 6% 10% 27% 52% Germany 0% 27% 36% 36% France 0% 18% 18% 18% 45% Italy 0% 11% 22% 33% 33% Spain 0%5% 27% 68% Global 4% 9% 17% 30% 41% United  States 5% 5% 18% 35% 37% Australia 0% 9% 42% 49% China 4% 4% 13% 44% 35% India 10% 14% 31% 24% 22% Brazil 0% 29% 71% 0% 25% 50% 75% 100% %  of  respondents Brazil  are  the  most  dominant  country  who  do  not  find  mobile  valuable  for  opera7ons-­‐related  purposes,  71%  rate  this   ‘not  important’  and  the  remaining  29%  are  neutral.  India  are  the  most  posi7ve  about  mobile  for  this  purpose  out  of  all   countries  and  55%  have  rated  it  with  some  degree  of  importance.  The  next  most  posi7ve  country  is  France  but  a  fair   way  behind  India  with  a  total  of  36%  ra7ng  some  degree  of  importance.  The  UK  and  US  are  rela7vely  similar  in   aotudes,  as  is  Italy.  China  are  very  unsure  about  the  value  of  mobile  in  this  category  and  44%  chose  neither  important   nor  unimportant.   Customer  service  is  favoured  the  most  amongst  respondents  from  India  with  just  12%  selec7ng  ‘not  important’.  The   majority  of  the  remaining  respondents  from  this  market  rate  customer  service  purposes  important  to  some  degree,   including  14%  ra7ng  extremely  important.  Although  not  overall  in  comparison  to  India  but  France  stands  out  as  the   most  posi7ve  about  this  category  with  27%  ra7ng  this  extremely  important.  There  is  a  higher  propor7on  (27%)  that   feel  it  is  not  important  however.  The  UK  and  Spain  reveal  similar  pamerns  with  almost  half  of  respondents  not  ra7ng   this  use,  a  quarter  neutral  and  the  rest  ra7ng  it  important  to  some  degree.  Germany  and  Italy  report  similar  responses   with  approximately  half  ra7ng  some  importance.  The  US  are  less  keen  on  this  use  as  are  Australia,  and  Australia  report   par7cularly  low  ra7ngs  with  18%  choosing  some  level  of  importance.           How  important  has  the  mobile  channel  been  in  the  last  3  months  for  customer  service? United  Kingdom 3% 13% 15% 24% 45% Germany 0% 18% 27% 36% 18% France 27% 27% 9% 9% 27% Italy 0% 11% 33% 33% 22% Spain 0%5% 27% 23% 46% Global 5% 11% 26% 26% 32% United  States 3% 7% 26% 33% 33% Australia 3% 3% 12% 42% 39% China 4% 9% 30% 30% 26% India 14% 20% 44% 10% 12% Brazil 0% 14% 14% 29% 43% 0% 25% 50% 75% 100% %  of  respondents
How  important  has  the  mobile  channel  been  in  the  last  3  months  for  markeOng? Extremely important Very important Important Neither important nor unimportant Not important United  Kingdom 0% 15% 22% 22% 40% Germany 0% 18% 36% 27% 18% France 0% 36% 27% 9% 27% Italy 0% 11% 44% 22% 22% Spain 0% 9% 27% 23% 41% Global 4% 12% 31% 24% 30% United  States 4% 7% 30% 32% 27% Australia 0% 6% 58% 36% China 4% 4% 52% 17% 22% India 12% 12% 42% 12% 22% Brazil 0% 57% 29% 14% 0% 25% 50% 75% 100% %  of  respondents Mobile  as  a  marke7ng  channel  is  more  popular  across  most  markets.  India  put  quite  a  lot  of  weight  towards  marke7ng   with  12%  choosing  extremely  important  and  overall  66%  ra7ng  it  with  some  importance,  nevertheless  France  includes   36%  who  rate  this  very  important  and  a  total  of  63%  feel  it  is  important  to  some  degree.  The  UK  and  Spain  include   higher  propor7on  that  so  not  find  mobile  marke7ng  important,  40%  and  41%  respec7vely.  Australia  appear  very   unclear  with  58%  sta7ng  neither  important  not  unimportant.  Brazil  have  definitely  recognised  some  value  and  57%  of   respondents  from  that  market  have  selected  ‘important’.   In  summary,  the  UK  is  rela7vely  consistent  with  ra7ngs  across  different  uses  of  mobile,  yet  sightly  weighted  towards   informa7on  search  and  marke7ng.  Germany  more  clearly  rate  informa7on  search,  customer  service  and  marke7ng   against  sales  and  opera7ons  related  purposes.  France  are  the  most  posi7ve  market  overall  but  customer  service  and   marke7ng  certainly  top  their  list  of  priori7es.  Italy  are  recognising  more  value  in  informa7on  search  and  marke7ng.   Spain  definitely  do  not  rate  sales  and  opera7ons  related  purposes  as  the  most  important  use  of  mobile,  customer   service,  informa7on  search  and  marke7ng  have  significantly  higher  importance.  The  US  report  rela7vely  consistent   ra7ngs  across  categories  but  place  more  emphasis  on  informa7on  search  par7cularly  but  also  marke7ng.  Australia,   seemingly  less  keen  on  mobile  in  comparison  to  other  markets,  highlight  informa7on  search  as  their  most  valued  use   and  clearly  have  not  certain  found  value  in  mobile  for  marke7ng.  China  rate  mobile  as  a  marke7ng  channel  more  than   the  other  categories  and  in  contrast  do  not  find  mobile  important  for  opera7ons  related  purposes.  India  are  one  of  the   most  posi7ve  markets  around  mobile  overall  and  rela7vely  consistent  across  categories  but  amongst  the  choices  they   par7cularly  favour  mobile  for  marke7ng  and  customer  service,  however  top  the  ra7ngs  for  sales  amongst  all  countries.   Brazil  display  very  defined  preferences;  sales  and  opera7ons  related  purposes  are  not  hot  for  Brazil  respondents  but   informa7on  search  and  marke7ng  are,  less  so  for  customer  service.                
Aetudes  Towards  Mobile  in  Travel   The  industry  is  quite  split  between  whether  mobile  has  generated  ROI  or  not.  29%  agree  that  it  has  generated  very   limle  or  zero  ROI  and  23%  disagree  with  the  statement.  It  is  therefore  evident  that  there  is  a  slight  weighing  towards   investments  which  have  yet  to  produce  return  for  companies.  Mobile  is  working  for  some  companies  because  32%   have  received  direct  bookings  from  mobile  but  perhaps  the  levels  of  investment  have  yet  to  pay  off  fully.  More   respondents  agree  that  mobile  has  improved  their  engagement  with  consumers  than  generated  direct  bookings;  38%   agree  that  mobile  has  improved  engagement  against  18%  that  disagree.  Looking  at  actual  current  and  upcoming   investments,  we  can  see  that  from  the  34%  that  have  invested  in  mobile  in  the  last  3  months,  49%  intend  to  invest  in   the  next  3  months,  an  increase  of  15%.  17%  are  definitely  not  planning  to  invest  in  mobile  in  the  next  quarter  but  34%   rate  ‘neither  agree  nor  disagree’. Below  are  a  number  of  statements  regarding  antudes  towards  mobile  in  travel,  please  read  each  one  and  indicate   to  what  extent  you  agree  or  disagree: Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Mobile  has  generated  us  very  little  or  zero  return  on  investment  (ROI) 6% 23% 47% 17% 6%  Mobile  has  generated  us  direct  bookings 5% 27% 43% 17% 8% Mobile  has  improved  our  engagement  with  consumers 6% 32% 45% 12% 6% We  have  increased  our  investment  in  mobile  in  the  last  3  months 6% 28% 38% 19% 9%  We  will  be  increasing  our  investment  in  mobile  over  the  next  3  months 12% 37% 34% 11% 6% 0% 25% 50% 75% 100% %  of  respondents  -­‐  all  travel  companies AUtudes  Towards  Mobile  in  Travel  by  Country   Mobile  has  generated  us  very  liple  or  zero  return  on  investment  (ROI) Analysing  these  results  by  country  reveals  some  level  os  varia7on.  France  are  seeing  the  best  results  out  of  our   respondents,  27%  have  definitely  seen  some  ROI  from  mobile  and  combined  with  those  that  disagree  wit  the   statement  it  amounts  to  63%  that  feel  mobile  has  generated  them  a  decent  ROI  level.  Many  of  the  respondents  from   Brazil  and  Australia  have  yet  to  iden7fy  a  significant  return.   United  Kingdom 9% 24% 48% 12% 7% Germany 0% 36% 45% 9% 9% France 0% 18% 18% 36% 27% Italy 0% 0% 33% 44% 22% Spain 9% 23% 50% 9% 9% Global 6% 23% 47% 17% 6% United  States 4% 18% 57% 15% 6% Australia 0% 6% 36% 48% 9% China 0% 0% 22% 52% 26% India 7% 19% 36% 32% 7% Brazil 0% 0% 57% 43% 0% 25% 50% 75% 100% %  of  respondents
Mobile  has  generated  us  direct  bookings France  appear  to  be  realising  their  ROI  through  direct  bookings  as  27%  agree  strongly  that  mobile  has  generated  them   direct  bookings.  A  further  18%  agree.  Brazil  have  not  seen  many  results  here  yet.  The  other  markets  display  a  rela7vely   similar  pamern  in  responses.   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly United  Kingdom 6% 21% 51% 9% 13% Germany 0% 27% 36% 27% 9% France 27% 18% 27% 18% 9% Italy 0% 0% 33% 44% 22% Spain 5% 36% 36% 14% 9% Global 5% 27% 43% 17% 8% United  States 5% 28% 52% 8% 7% Australia 3% 30% 49% 15% 3% China 0% 0% 39% 48% 13% India 5% 41% 27% 20% 7% Brazil 0% 0% 57% 43% 0% 25% 50% 75% 100% %  of  respondents  Mobile  has  improved  our  engagement  with  consumers There  is  not  an  enormous  varia7on  between  markets  in  terms  of  views  towards  consumer  engagement.  China,  India  ,   Spain  and  France  agree  more  than  others  on  this  statement  but  only  marginally.  Across  all  markets  however  there  is  a   smaller  propor7on  of  those  who  totally  disagree.   United  Kingdom 5% 22% 54% 12% 8% Germany 0% 0% 36% 55% 9% France 9% 36% 36% 9% 9% Italy 0% 11% 0% 67% 22% Spain 0%5% 46% 46% 5% Global 6% 32% 45% 12% 6% United  States 7% 29% 45% 12% 7% Australia 0% 24% 61% 12% 3% China 0%4% 48% 39% 9% India 8% 46% 32% 10% 3% Brazil 0% 0% 43% 43% 14% 0% 25% 50% 75% 100% %  of  respondents
We  have  increased  our  investment  in  mobile  in  the  last  3  months Recent  investments  in  mobile  do  vary  across  markets.  Brazil  appear  to  have  invested  the  least,  with  14%  agreeing  with   the  statement,  29%  in  the  middle  but  a  more  significant  57%  disagreeing.  The  most  investment  in  terms  of  the   propor7on  of  that  market  is  coming  from  Germany  and  France  and  the  results  are  quite  similar  for  these  countries   except  France  have  perhaps  been  the  heavier  investors  with  27%  agreeing  strongly.  The  UK  include  a  rela7vely  large   propor7on  that  have  certainly  not  invested,  34%,  and  Australia  and  Italy  sit  at  the  bomom  of  the  scale  for  those  that   agree  to  some  degree.   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly United  Kingdom 9% 22% 34% 21% 13% Germany 0% 55% 27% 9% 9% France 27% 27% 27% 9% 9% Italy 0% 0% 22% 44% 33% Spain 9% 36% 32% 18% 5% Global 6% 28% 38% 19% 9% United  States 5% 35% 35% 15% 9% Australia 0% 18% 61% 18% 3% China 0% 26% 52% 17% 4% India 5% 31% 42% 17% 5% Brazil 0% 14% 29% 43% 14% 0% 25% 50% 75% 100% %  of  respondents We  will  be  increasing  our  investment  in  mobile  over  the  next  3  months Looking  forward  to  the  next  quarter,  the  most  investment  is  likely  to  be  coming  from  companies  in  France  and  Spain,   both  with  27%  of  respondents  strongly  agreeing  that  they  will  be  increasing  their  investments  in  mobile  in  the  next  3   months.  Overall  considering  those  that  agree  with  the  statement  to  some  degree  we  can  iden7fy  quite  a  consistent   pamern  across  all  countries.  Spain  is  marginally  higher  amoun7ng  to  59%  of  respondents  planning  to  invest  to  some   degree.  The  smaller  propor7ons  are  in  Australia,  China  and  Brazil.  Germany  is  definitely  seeing  some  movement  in  the   mobile  space  because  no  one  states  that  they  will  definitely  not  be  inves7ng  in  mobile.     United  Kingdom 13% 39% 30% 10% 8% Germany 0% 9% 0% 45% 45% France 0% 27% 27% 36% 9% Italy 0% 11% 44% 33% 11% Spain 27% 32% 27% 9% 5% Global 12% 37% 34% 11% 6% United  States 11% 39% 35% 9% 7% Australia 3% 36% 42% 12% 6% China 0%4% 30% 48% 17% India 14% 32% 39% 10% 5% Brazil 0% 43% 29% 14% 14% 0% 25% 50% 75% 100% %  of  respondents
AUtudes  Towards  Mobile  in  Travel  by  Company  Sector   Mobile  has  generated  us  very  liple  or  zero  return  on  investment  (ROI) Car  Rental  companies  have  seen  the  best  ROI  from  mobile  amongst  sectors.  A  good  propor7on  of  the  Airline  sector  is   evidently  s7ll  wai7ng  for  real  ROI  because  36%  agree  with  the  statement.  Nevertheless  27%  have  reported  to  record   some  results  to  date.  Offline  intermediary,  Other  Accommoda7on,  Cruise,  Meta-­‐Search,  OTA  and  Tour  Operator   sectors  include  the  largest  propor7ons  who  have  yet  to  see  decent  ROI  from  mobile.  DMC/tourism  board  and  Hotel   sectors  have  seen  some  return  shown  by  the  30%  of  Hotel  respondents  and  27%  of  DMC/tourism  board  respondents   that  disagree  with  the  statement. Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Hotel 4% 18% 49% 23% 7% Other  accommodation 10% 29% 48% 6% 6% Airline 12% 24% 38% 15% 12% Car  Rental 0% 23% 38% 15% 23% Cruise 0% 14% 29% 43% 14% DMC  /  tourism  board 5% 23% 46% 18% 9% Tour  operator 7% 31% 40% 20% 3% Online  Travel  Agent  (OTA) 10% 26% 45% 13% 6% Meta-­‐search 0% 0% 40% 60% Other  online  intermediary 3% 20% 57% 17% 3% "Offline"  intermediary  /  Retail 13% 38% 33% 8% 8% 0% 25% 50% 75% 100% %  of  respondents We  have  increased  our  investment  in  mobile  in  the  last  3  months Investments  into  mobile  have  come  mainly  from  the  Meta-­‐Search  and  Car  Rental  sectors  over  the  last  quarter.  Airlines   have  followed  and  then  OTAs.  Other  Accommoda7on  has  not  been  enormously  ac7ve  nor  have  offline  intermediaries.   The  biggest  shih  we  are  expec7ng  over  the  next  3  months  is  within  the  Cruise  sector;  from  29%  who  increased  their   mobile  investment  over  the  last  3  months,  71%  expect  to  be  increasing  their  investment  in  the  next  quarter.  More  tour   operators  are  also  looking  to  increase  their  investment;  from  20%  in  the  last  quarter  to  41%  in  the  next  quarter.   Growth  is  also  expected  in  the  OTA  sector  and  we  expect  a  shih  from  38%  of  the  sector  inves7ng  to  56%  in  the  next  3   months.  Meta-­‐Search  are  going  to  be  the  sector  with  the  biggest  propor7on  of  investors  in  mobile;  80%  intend  to   make  increases  over  the  next  3  months  in  comparison  to  60%  in  the  last  quarter.  Offline  intermediaries  are  also   showing  signs  of  development  in  this  space  and  from  the  42%  that  definitely  did  not  invest  in  the  last  quarter,  this   group  is  expected  to  reduce  to  30%,  so  a  larger  propor7on  either  definitely  inves7ng  or  considering  it.       Hotel 7% 29% 40% 19% 5% Other  accommodation 0%3% 58% 19% 19% Airline 6% 44% 29% 9% 12% Car  Rental 0% 15% 46% 31% 8% Cruise 0% 0% 29% 43% 29% DMC  /  tourism  board 0% 27% 32% 27% 14% Tour  operator 3% 17% 39% 28% 13% Online  Travel  Agent  (OTA) 8% 30% 31% 21% 12% Meta-­‐search 0% 20% 40% 20% 20% Other  online  intermediary 5% 40% 40% 9% 6% "Offline"  intermediary  /  Retail 0% 17% 42% 21% 21% 0% 25% 50% 75% 100% %  of  respondents
Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly We  will  be  increasing  our  investment  in  mobile  over  the  next  3  months Hotel 12% 37% 35% 12% 3% Other  accommodation 0% 19% 61% 6% 13% Airline 24% 41% 24% 3% 9% Car  Rental 0% 23% 54% 15% 8% Cruise 0% 14% 57% 14% 14% DMC  /  tourism  board 0% 32% 36% 18% 14% Tour  operator 5% 36% 39% 12% 8% Online  Travel  Agent  (OTA) 14% 41% 24% 14% 6% Meta-­‐search 0% 0% 20% 60% 20% Other  online  intermediary 20% 37% 37% 5% 2% "Offline"  intermediary  /  Retail 4% 33% 33% 13% 17% 0% 25% 50% 75% 100% %  of  respondents Mobile  has  generated  us  direct  bookings The  best  results  for  direct  bookings  has  been  experienced  in  the  Car  Rental  sector.  A  significant  69%  agree  with  the   statement  including  23%  strongly  agreeing.  Airlines  are  the  next  most  successful  sector;  47%  have  seen  direct   bookings.  Hotel  and  OTA  sectors  are  rela7vely  similar  in  results  with  39%  and  37%  respec7vely  agreeing  with  the   statement.  Offline  intermediaries,  Other  Accommoda7on  and  DMC/tourism  board  sectors  report  the  lowest   propor7ons.   Hotel 5% 34% 44% 13% 4% Other  accommodation 7% 16% 39% 23% 16% Airline 6% 41% 35% 6% 12% Car  Rental 0% 23% 46% 23% 8% Cruise 0% 14% 57% 29% DMC  /  tourism  board 0% 23% 36% 23% 18% Tour  operator 4% 20% 44% 25% 7% Online  Travel  Agent  (OTA) 6% 31% 32% 24% 6% Meta-­‐search 0% 0% 20% 80% Other  online  intermediary 5% 18% 58% 12% 6% "Offline"  intermediary  /  Retail 0% 13% 38% 29% 21% 0% 25% 50% 75% 100% %  of  respondents
Mobile  has  improved  our  engagement  with  consumers In  terms  of  consumer  engagement,  again  Car  Rental  are  repor7ng  the  most  success.  Airline  companies  are  however   closely  following  because  65%  of  Airline  respondents  agree  with  the  statement  to  some  degree,  in  comparison  to  69%   of  Car  Rental  companies.  Least  posi7vity  is  coming  from  the  Cruise  and  Other  Accommoda7on  sectors.  OTAs  and   hotels  are  again  repor7ng  quite  similar  results.     Hotel 5% 34% 49% 9% 3% Other  accommodation 0% 23% 52% 16% 10% Airline 9% 56% 21% 6% 9% Car  Rental 0% 0% 15% 54% 31% Cruise 0% 14% 71% 14% DMC  /  tourism  board 0% 50% 23% 14% 14% Tour  operator 3% 31% 45% 16% 5% Online  Travel  Agent  (OTA) 5% 27% 41% 21% 6% Meta-­‐search 0% 0% 100% Other  online  intermediary 8% 28% 52% 9% 3% "Offline"  intermediary  /  Retail 8% 21% 38% 17% 17% 0% 25% 50% 75% 100% %  of  respondents
SecOon  11:     Next  Quarter  Budgets
Next  Quarter  Budgets   In  the  upcoming  quarter  57%  of  all  travel  companies  are  planning  an  increase  in  budget  towards  web  design/re-­‐design.   The  biggest  increase  is  expected  to  be  in  social  media  with  data  revealing  that  61%  are  planning  an  increase.  Mobile   investment  is  also  on  the  cards  for  48%  of  companies  and  27%  are  not  planning  investment  at  all  or  don’t  know  yet.   Offline  marke7ng  is  showing  the  highest  propor7on  of  companies  reducing  budgets.   For  the  NEXT  QUARTER  do  you  expect  to  be  increasing  or  reducing  budgets  for  the  following  (in  comparison  to  the   previous  quarter): Increasing Staying the same Reducing There will be no budget for this Don't know  Website  design 57% 36% 3%1% 2%  Paid  search  engine  listings 43% 36% 7% 9% 5%  Online  display  advertising 33% 39% 9% 13% 7% Email  marketing 42% 46% 5% 4% 5%  Social  media 61% 29% 2% 4% 5% Mobile 48% 23% 3% 17% 10% Offline  marketing 21% 40% 18% 13% 7% 0% 25% 50% 75% 100% %  of  respondents  -­‐  all  travel  companies Next  Quarter  Budgets  By  Country   Germany  are  showing  the  largest  propor7on  inves7ng  in  their  websites;  91%  plan  an  increase  in  budget  towards  this.   The  other  markets  reveal  similar  pamerns,  although  the  UK  (70%)  are  on  the  higher  side.   Web  Design  /  Re-­‐Design   United  Kingdom 0% 70% 22% 6% 2% Germany 0% 91% 9% France 0% 0% 64% 36% Italy 0% 56% 33% 11% Spain 0% 50% 41% 5% 5% Global 57% 36% 3% 1%2% United  States 55% 39% 3% 3% 1% Australia 0% 0% 49% 52% China 0% 52% 44% 4% India 54% 39% 2% 3% 2% Brazil 0% 0% 57% 43% 0% 25% 50% 75% 100% %  of  respondents
Increasing Staying the same Reducing There will be no budget for this Don't know Offline  Marke.ng   Offline  marke7ng  plans  are  changing  remarkably  in  Spain  with  major  reduc7ons  planned  or  not  budgets  allocated  at   all.  Only  27%  plan  an  increase.  Brazil,  India,  China  and  Australia  reveal  the  largest  propor7ons  planning  an  increase  in   this  medium.   United  Kingdom 13% 46% 25% 12% 3% Germany 18% 36% 27% 9% 9% France 0% 9% 36% 36% 18% Italy 0% 56% 33% 11% Spain 9% 18% 23% 36% 14% Global 21% 40% 18% 13% 7% United  States 17% 38% 19% 19% 8% Australia 30% 36% 12% 15% 6% China 0% 44% 30% 22% 4% India 41% 39% 12% 7% 2% Brazil 0% 0% 43% 43% 14% 0% 25% 50% 75% 100% %  of  respondents Mobile   Germany  and  France  are  expec7ng  the  most  increases  in  mobile  investment  for  the  next  quarter,  73%  and  64%   respec7vely.  Germany  are  looking  to  be  the  most  ac7ve  market  in  terms  of  mobile.  Italy  are  expec7ng  the  least   investment  in  the  next  3  months,  followed  by  Australia.  Brazil  and  India  are  also  intending  to  make  some   developments  in  the  upcoming  quarter  because  77%  of  respondents  from  India  and  86%  from  Brazil  either  plan  to   increase  or  keep  the  same  investments.   United  Kingdom 46% 18% 6% 16% 13% Germany 0% 0% 73% 27% France 0% 64% 18% 9% 9% Italy 0% 44% 11% 33% 11% Spain 0% 36% 36% 18% 9% Global 48% 23% 3% 17% 10% United  States 47% 19% 3% 21% 11% Australia 0% 36% 27% 27% 9% China 35% 30% 9% 17% 9% India 47% 30% 5% 10% 7% Brazil 0% 0% 43% 43% 14% 0% 25% 50% 75% 100% %  of  respondents
Increasing Staying the same Reducing There will be no budget for this Don't know Social  Media   In  term  of  social  media,  Germany  is  again  proving  to  be  the  most  ac7ve  in  the  upcoming  quarter;  all  respondents   intend  to  either  increase  or  keep  the  same  budgets  for  this  with  73%  planning  an  increase.  Brazil  shows  a  similar   pamern  with  71%  planning  an  increase.  Italy  is  showing  the  least  and  Australia  following.  The  other  markets  are  not   too  dissimilar  to  each  other.       United  Kingdom 61% 24% 6% 4% 4% Germany 0% 0% 73% 27% France 0% 0% 73% 18% 9% Italy 0% 56% 22% 11% 11% Spain 55% 32% 5% 5% 5% Global 61% 29% 2% 4% 5% United  States 64% 27% 1% 6% 2% Australia 0% 52% 33% 9% 6% China 0% 44% 52% 4% India 61% 31% 2% 5% 2% Brazil 0% 0% 71% 29% 0% 25% 50% 75% 100% %  of  respondents Email  Marke.ng   Email  marke7ng  is  rela7vely  consistent  across  countries.  Italy  are  planning  the  least  investments  and  Brazil  the  most.   United  Kingdom 39% 51% 3% 3% 5% Germany 0% 27% 64% 9% France 0% 27% 55% 9% 9% Italy 0% 11% 56% 11% 22% Spain 36% 41% 9% 9% 5% Global 42% 46% 5% 4% 5% United  States 40% 46% 3% 4% 6% Australia 0% 52% 42% 3% 3% China 0% 44% 44% 9% 4% India 0% 51% 37% 7% 5% Brazil 0% 0% 43% 57% 0% 25% 50% 75% 100% %  of  respondents
Increasing Staying the same Reducing There will be no budget for this Don't know Online  Display  Adver.sing   Online  display  adver7sing  is  also  fairly  consistent  across  markets  but  we  can  iden7fy  more  reduc7ons  compared  to   some  categories.  Italy  are  planning  the  biggest  reduc7ons  in  terms  of  the  propor7on  of  respondents.  Spain  is  planning   the  largest  propor7on  of  increases  (46^)  along  with  the  UK  (37%)  and  Australia  (39%).       United  Kingdom 37% 28% 10% 18% 6% Germany 0% 27% 55% 9% 9% France 9% 55% 18% 9% 9% Italy 22% 33% 22% 11% 11% Spain 46% 27% 5% 18% 5% Global 33% 39% 9% 13% 7% United  States 29% 42% 5% 17% 7% Australia 0% 39% 36% 18% 6% China 0% 35% 52% 4% 9% India 34% 44% 12% 7% 3% Brazil 0% 14% 57% 14% 14% 0% 25% 50% 75% 100% %  of  respondents Paid  Search  Engine  Lis.ngs  (PPC) 71%  of  Brazil  respondents  plan  an  increase  in  budget  for  paid  search  lis7ngs,  but  30%  do  not  intend  to  allocated  any   budget  to  this  at  all.  Germany  are  expected  to  be  ac7ve  in  paid  search  lis7ngs  but  the  majority  are  keeping  their   budgets  the  same  (64%)  rather  than  increase  (36%).  Australia  and  India  are  the  next  largest  propor7ons  aher  Brazil  to   plan  an  increase  in  PPC  budgets.  All  markets  however  have  between  a  third  and  half  who  have  planned  an  increase.   United  Kingdom 43% 34% 10% 9% 3% Germany 0% 0% 36% 64% France 36% 27% 18% 9% 9% Italy 0% 33% 22% 22% 22% Spain 41% 46% 5% 5% 5% Global 43% 36% 7% 9% 5% United  States 41% 35% 6% 14% 4% Australia 0% 52% 36% 3% 9% China 35% 52% 4% 4% 4% India 49% 36% 7% 5% 3% Brazil 0% 0% 71% 29% 0% 25% 50% 75% 100% %  of  respondents
SecOon  12:     Biggest  Challenges
The  biggest  challenges  for  travel  companies  right  now...   Challenges  for  companies  are  mixed.  Some  of  the  key  themes  are  increasing  direct  bookings,  understanding  mobile   and  social  media  and  of  course  managing  to  challenge  the  compe77on.  As  we  will  see  below  the  main  themes  for  both   challenge  and  opportunity  is  mobile  and  social  media.  It  is  the  hot  topic  of  the  moment.    
SecOon  13:     What  Has  The  Industry  Learnt  Recently? & SecOon  14:     Biggest  Opportuni.es  Iden.fied
What  respondents  feel  they  and  their  teams  have  learnt  most  over  the  last  year   The  industry  is  learning  by  the  day  to  improve  their  distribu7on  and  marke7ng  strategies  and  enhance  the  efficiency  in   sales  and  marke7ng  as  the  markets  consistently  change  and  new  opportuni7es  emerge.  Below  we  illustrate  some  of   the  key  areas  that  respondents  feel  they’ve  learn  over  the  last  12  months.  Social  is  a  key  theme  and  a  large  propor7on   of  the  travel  industry  are  now  certainly  taking  this  medium  extremely  seriously  as  part  of  their  business  objec7ves.   Online  marke7ng  has  definitely  been  an  area  of  improvement  overall.       The  biggest  opportuni(es  iden(fied…   The  biggest  opportuni7es  of  the  moment  are  considered  to  be  mobile  and  social  media.  They  both  carried  rela7vely   similar  weight  and  it  is  clear  that  companies  need  to  watch  the  space  in  both  of  these  mediums  to  ensure  they  keep  up   with  their  industry  peers.  The  huge  propor7on  of  respondents  that  stated  these  new  channels  suggests  that  it  is  an   opportunity  recognised  across  the  industry  and  across  the  world.  We  expect  to  see  a  lot  more  innova7on  in  this  space   in  2011  and  beyond.
SecOon  15:     Next  Big  Thing  in  Travel  Distribu.on  &  Marke.ng
What  the  industry  feels  the  next  new  thing  in  travel  distribu(on  and  marke(ng  is…   Echoing  the  above  results,  the  next  new  thing  is  expect  to  be  mobile.  It  is  clearly  the  most  dominant  theme  amongst   all  respondents.  Social  is  s7ll  there  and  certainly  not  considered  old  hat!  But  mobile  is  really  expected  to  be  growing  in   significance  for  travel  companies  across  the  globe.  Loca7on  based  marke7ng,  social  media,  mobile  apps…  perhaps  the   next  core  theme  will  towards  integra7on.                   …  what’s  next?!   Find  out  in  the  next  edi,on  of  the  Travel  Distribu,on  &  Marke,ng  Barometer
To  join  our  research  panel  please  email  Tim  Gunstone:  (m@eyefortravel.com  

More Related Content

PDF
Breaking the Myths and Unlocking the Benefits of Hiring International Students
byglobalcleveland
 
PDF
Gdp
byitechghana
 
PPT
2007_11_Chile: An overview
byCarlos Mladinic
 
PDF
The chinese view of the world
byHorizonKey
 
PDF
KPCB Internet Trends 2012
byWaleed Alowaiyesh
 
PDF
95259089 kpcb-internet-trends-2012
byAnnie Chen
 
PDF
Mary Meeker, KPCB, Internet Trends 2012
byJim Porter
 
PDF
95259089 Kpcb Internet Trends 2012
bylee_anderson40
 
Breaking the Myths and Unlocking the Benefits of Hiring International Students
byglobalcleveland
 
Gdp
byitechghana
 
2007_11_Chile: An overview
byCarlos Mladinic
 
The chinese view of the world
byHorizonKey
 
KPCB Internet Trends 2012
byWaleed Alowaiyesh
 
95259089 kpcb-internet-trends-2012
byAnnie Chen
 
Mary Meeker, KPCB, Internet Trends 2012
byJim Porter
 
95259089 Kpcb Internet Trends 2012
bylee_anderson40
 

Similar to Travel distribution & marketing barometer may 2011

PPTX
OGDC2012 Vision of Vietnam Game R&D Industry
byMinh Le
 
PPTX
OGDC2012 Vision of VN Game Industry_Mr.Minh,Le Hong
byBuff Nguyen
 
PPTX
Vision of VN game industry
byaction.vn
 
PDF
Internet Trends - Presentation done by Mary Meeker
byakanaran
 
PDF
Internet trends 2012
byAntonio Addario
 
PDF
KPCB Internet Trends 2012
byBenjamin Crucq
 
PDF
2012 KPCB Internet Trends Year-End Update
byDavid De Smedt
 
PDF
Internet Trends KPCB 2012
bytkang87
 
PDF
Internettrendsstanford120312final 121203181402-phpapp01
byCarol Robbins
 
PDF
2012 KPCB Internet Trends Year-End Update
byLuis Alejandro Ramírez Gallardo
 
PDF
Mary Meeker On Internet Trends
byGary Hirsch
 
PDF
Internet Trends @ Stanford - Mary Meeker
byAnish Kanaran
 
PDF
Internet Trends
by郭 茂仁
 
PDF
互联网女皇2012趋势报告
byTao Yang
 
PDF
"2012 KPCB Internet Trends Year-End Update"
byJim Porter
 
PDF
Mary meeker 12.12
byBen Lilienthal
 
PDF
Internettrendsstanford120312final 121203181402-phpapp01
by12 Meter Marketing Solutions
 
PDF
INTERNET TRENDS - KPCB, DEC 2012
byArip Tirta
 
PDF
Stanford: Internet Trends
byGaetano Mecenero
 
PDF
World Populacion
bycrisjr
 
OGDC2012 Vision of Vietnam Game R&D Industry
byMinh Le
 
OGDC2012 Vision of VN Game Industry_Mr.Minh,Le Hong
byBuff Nguyen
 
Vision of VN game industry
byaction.vn
 
Internet Trends - Presentation done by Mary Meeker
byakanaran
 
Internet trends 2012
byAntonio Addario
 
KPCB Internet Trends 2012
byBenjamin Crucq
 
2012 KPCB Internet Trends Year-End Update
byDavid De Smedt
 
Internet Trends KPCB 2012
bytkang87
 
Internettrendsstanford120312final 121203181402-phpapp01
byCarol Robbins
 
2012 KPCB Internet Trends Year-End Update
byLuis Alejandro Ramírez Gallardo
 
Mary Meeker On Internet Trends
byGary Hirsch
 
Internet Trends @ Stanford - Mary Meeker
byAnish Kanaran
 
Internet Trends
by郭 茂仁
 
互联网女皇2012趋势报告
byTao Yang
 
"2012 KPCB Internet Trends Year-End Update"
byJim Porter
 
Mary meeker 12.12
byBen Lilienthal
 
Internettrendsstanford120312final 121203181402-phpapp01
by12 Meter Marketing Solutions
 
INTERNET TRENDS - KPCB, DEC 2012
byArip Tirta
 
Stanford: Internet Trends
byGaetano Mecenero
 
World Populacion
bycrisjr
 

More from HDS - Hotel Digital Strategy

PDF
Entrevista para Ambitur: "Apresentação da Hotel Digital Strategy"
byHDS - Hotel Digital Strategy
 
PDF
Artigo "Receitas Digitais para Objectivos Reais na Hotelaria"
byHDS - Hotel Digital Strategy
 
PDF
Artigo: "O Marketing Digital NÃO gere mais Vendas...
byHDS - Hotel Digital Strategy
 
PDF
Entrevista revista hotelaria Maio 2015 - Hotel Digital Strategy
byHDS - Hotel Digital Strategy
 
PDF
Perspectiva do CEO Grupo Pestana em relação aos canais de venda
byHDS - Hotel Digital Strategy
 
PDF
Hotel Digital Strategy - Artigo para revista Hotelaria, edição BTL 2015
byHDS - Hotel Digital Strategy
 
PDF
eT- Marketing: (Muito) mais do mesmo - Revista hotelaria Dez 2014
byHDS - Hotel Digital Strategy
 
PDF
"Turismo sem serviço é como online sem internet"
byHDS - Hotel Digital Strategy
 
PDF
"2012: O ano 2.0 do Turismo em Portugal ?" Revista hotelaria jan 2012
byHDS - Hotel Digital Strategy
 
PDF
Hospitality & Social Media - Where is the money ?
byHDS - Hotel Digital Strategy
 
PDF
30 casos-imprescindibles uso web 2.0
byHDS - Hotel Digital Strategy
 
PDF
Travel distribution & marketing barometer may 2011
byHDS - Hotel Digital Strategy
 
PDF
Apresentação no IV Encontro de Gestores Hoteleiros (EISEG)
byHDS - Hotel Digital Strategy
 
PDF
Artigo no Publituris: "A moda das redes sociais que nunca mais sai de moda"
byHDS - Hotel Digital Strategy
 
PDF
Convite dm turismo2.0 af
byHDS - Hotel Digital Strategy
 
PDF
Convite para conferência: Turismo 2.0 - Oportunidades e desafios para a Madeira
byHDS - Hotel Digital Strategy
 
PDF
Hotel e businesssurveyreport2010-0
byHDS - Hotel Digital Strategy
 
PDF
The pegasus view may 2010 final
byHDS - Hotel Digital Strategy
 
PPTX
Workshop redes sociais para turismo montegordo
byHDS - Hotel Digital Strategy
 
PDF
Amateur Expert Traveler
byHDS - Hotel Digital Strategy
 
Entrevista para Ambitur: "Apresentação da Hotel Digital Strategy"
byHDS - Hotel Digital Strategy
 
Artigo "Receitas Digitais para Objectivos Reais na Hotelaria"
byHDS - Hotel Digital Strategy
 
Artigo: "O Marketing Digital NÃO gere mais Vendas...
byHDS - Hotel Digital Strategy
 
Entrevista revista hotelaria Maio 2015 - Hotel Digital Strategy
byHDS - Hotel Digital Strategy
 
Perspectiva do CEO Grupo Pestana em relação aos canais de venda
byHDS - Hotel Digital Strategy
 
Hotel Digital Strategy - Artigo para revista Hotelaria, edição BTL 2015
byHDS - Hotel Digital Strategy
 
eT- Marketing: (Muito) mais do mesmo - Revista hotelaria Dez 2014
byHDS - Hotel Digital Strategy
 
"Turismo sem serviço é como online sem internet"
byHDS - Hotel Digital Strategy
 
"2012: O ano 2.0 do Turismo em Portugal ?" Revista hotelaria jan 2012
byHDS - Hotel Digital Strategy
 
Hospitality & Social Media - Where is the money ?
byHDS - Hotel Digital Strategy
 
30 casos-imprescindibles uso web 2.0
byHDS - Hotel Digital Strategy
 
Travel distribution & marketing barometer may 2011
byHDS - Hotel Digital Strategy
 
Apresentação no IV Encontro de Gestores Hoteleiros (EISEG)
byHDS - Hotel Digital Strategy
 
Artigo no Publituris: "A moda das redes sociais que nunca mais sai de moda"
byHDS - Hotel Digital Strategy
 
Convite dm turismo2.0 af
byHDS - Hotel Digital Strategy
 
Convite para conferência: Turismo 2.0 - Oportunidades e desafios para a Madeira
byHDS - Hotel Digital Strategy
 
Hotel e businesssurveyreport2010-0
byHDS - Hotel Digital Strategy
 
The pegasus view may 2010 final
byHDS - Hotel Digital Strategy
 
Workshop redes sociais para turismo montegordo
byHDS - Hotel Digital Strategy
 
Amateur Expert Traveler
byHDS - Hotel Digital Strategy
 

Travel distribution & marketing barometer may 2011

  • 1.
    Travel  Distribu.on  &  Marke.ng  Barometer Edi.on  1 May  2011  
  • 2.
    About  the  Travel  Distribu.on  &  Marke.ng  Barometer   EyeforTravel  conducted  a  global  survey  amongst  key  travel  execu7ves  in  January  to  February  2011  with  the  aim  of   inves7ga7ng  distribu7on  and  marke7ng  performance  and  perspec7ves  for  the  quarter.  This  is  the  first  edi7on  of  the   Travel  Distribu7on  &  Marke7ng  Barometer.  It’s  intended  to  be  an  ongoing  research  study  designed  to  act  as  a   barometer  for  the  global  travel  industry  and  provide  richer  intelligence  to  enable  a  greater  understanding  of  current   and  future  distribu7on  and  marke7ng  trends.  An  online  survey  will  con7nue  to  be  conducted  to  gather  up  to  the   minute  opinions  and  track  ac7vi7es  of  travel  companies.  The  results  will  produce  invaluable  data  and  allow  a   consistent  and  compara7ve  analysis  of  trends  across  sectors  and  regions. This  edi7on  was  completed  by  550  different  travel  suppliers  and  intermediaries  varying  in  size  and  sector  across  the   world.  Below  we  can  view  the  number  of  companies  that  responded  from  each  country  involved  in  order  to  help   understand  the  weigh7ng  of  our  results.  It  is  evident  that  some  regions  (such  as  Africa)  are  weaker  in  terms  of  volumes   and  we  want  to  point  out  that  the  findings  for  this  region  par7cularly  should  be  referred  to  as  interes7ng  but  insight   rather  than  a  sound  sta7s7cal  representa7on.        “What  country  are  YOU  based  in?” United  States 117 United  Kingdom 67 India 59 Australia 33 China 23 Singapore 23 Spain 22 Netherlands 20 Greece 18 France 11 Germany 11 Thailand 11 Italy 9 Brazil 7 Indonesia 7 Russian  Federation 7 Switzerland 7 Ireland  {Republic} 6 Norway 6 Portugal 6 Belgium 5 Japan 5 Malaysia 5 Philippines 5 Argentina 4 Bulgaria 4 Colombia 3 Cyprus 3 Denmark 3 Malta 3 New  Zealand 3 Turkey 3 Afghanistan 2 Austria 2 Bangladesh 2 Canada 2 Chile 2 Lithuania 2 Mauritius 2 Nepal 2 Pakistan 2 Sri  Lanka 2 Barbados 1 Costa  Rica 1 Croatia 1 Fiji 1 Finland 1 Hungary 1 Korea  South 1 Mexico 1 Slovenia 1 Sweden 1 Taiwan 1 Tanzania 1 United  Arab  Emirates 1 Uzbekistan 1 0 38 75 113 150
  • 3.
    The  first  chart  below  explains  the  involvement  of  our  respondents  globally  in  terms  of  geographical  regions.  For   example,  56%  of  companies  involved  in  our  survey  have  offices  in  Western  Europe.       Does  the  company  you  represent  have  offices  in  any  of  the  following  regions  (including  your  own)? West  Europe 56% East  Europe 25% North  America 45% Latin  America 20% Australia/New  Zealand 26% Asia  &  Pacific 43% Middle  East 21% Africa 15% 0% 15% 30% 45% 60% This  second  chart  indicates  the  actual  market  responsibility  of  our  respondents  and  while  we  refer  to  the  specific   loca7on  (country)  in  which  a  respondent  is  permanently  based  (above),  we  are  also  interested  in  the  regions  they  are   responsible  for  targe7ng  on  the  basis  that  this  is  likely  to  influence  their  ac7vi7es  and  perspec7ves.  We  can  see  below   for  example  that  40%  are  targe7ng  Western  European  markets  whereas  56%  have  offices  in  that  region  (above),  but   also  35%  selected  ‘global’  which  would  include  all  markets.  Overall,  our  survey  results  present  a  good  representa7on   for  all  regions  throughout  the  world  which  has  allowed  us  to  offer  our  readers  a  very  interes7ng  picture  globally.     Which  regions  /  markets  is  THE  OFFICE  YOU  ARE  REPRESENTING  responsible  for  targeting? Global 35% West  Europe 40% East  Europe 22% North  America 31% Latin  America 13% Asia  /  Pacific 28% Australia/New  Zealand 16% Middle  East 14% Africa 9% 0% 10% 20% 30% 40%
  • 4.
    Contents   SecOon  1:     Distribu(on  Channels   SecOon  2:     Online  Penetra(on  (for  suppliers) SecOon  3:     Direct  vs  Indirect  Distribu(on  (for  suppliers)   SecOon  4:     Current  Sen(ment  Towards  the  OTA-­‐Supplier  Partnership   SecOon  5:     Sources  of  Online  Traffic  In  Travel   SecOon  6:     Marke(ng  Channels   SecOon  7:     Marke(ng  Budgets   SecOon  8:     Online  Marke(ng  Ac(vi(es  -­‐  What’s  Working   SecOon  9:     Social  Media  Par(cipa(on   SecOon  10:     Mobile   SecOon  11:     Next  Quarter  Budgets   SecOon  12:     Biggest  Challenges   SecOon  13:     What  Has  The  Industry  Learnt  Recently? SecOon  14:     Biggest  Opportuni(es  Iden(fied SecOon  15:     Next  Big  Thing  in  Travel  Distribu(on  &  Marke(ng If  you’d  like  to  join  our  research  panel  please  contact  Tim  Gunstone:  Om@eyefortravel.com
  • 5.
    SecOon  1:    Distribu.on  Channels  
  • 6.
    Distribu.on  Channels Booking  Channels     Figure  x  analyses  channels  for  bookings  (volumes)  over  the  last  quarter  represen7ng  the  respondents  of  our  supplier   focussed  survey.  72%  have  experienced  an  increase  in  bookings  direct  from  their  websites  with  only  a  small  propor7on   registering  a  decline  (5%).  Bookings  direct  via  voice/call  centre  have  declined  for  20%  of  respondents  and  increased  for   29%.  42%  have  not  experienced  any  change  from  this  channel.  30%  have  experienced  an  increase  in  bookings  via   mobile  device,  52%  have  not  had  bookings  at  all  via  this  channel.  47%  have  had  an  increase  in  bookings  from  3rd   par7es,  31%  from  GDS/agency  and  24%  from  tour  operators. Figure  1:  Have  your  bookings  (volumes)  generated  via  the  following  channels  increased  or  decreased  over  the  last  3   months  (from  the  previous  quarter)? Increased About  the  same  volume Decreased No  bookings  via  this  channel Direct  from  your  website 72% 22% 5% 2% Direct  via  voice/call  centre 29% 42% 20% 10% Direct  from  a  mobile  device 30% 16% 2% 52% Third  party  Internet  channel  (e.g.  OTA) 47% 35% 9% 10% GDS/agency 31% 36% 19% 15% Tour  operator 24% 39% 22% 15% 0% 25% 50% 75% 100%     In  the  charts  below  we  have  then  explored  our  data  based  on  the  regions  that  respondents  are  responsible  for  in  order   to  inves7gate  any  interes7ng  trends  geographically.  Direct  distribu7on  from  their  websites  shows  no  major  varia7ons.   The  majority  have  experienced  an  increase  across  all  regions.  Those  represen7ng  La7n  America  register  the  highest   number  of  respondents  with  an  increase  at  79%.  It  clear  that  in  all  markets,  companies  have  either  had  an  increase  in   bookings  direct  from  their  websites  or  the  volumes  have  stayed  the  same.  The  largest  decline  across  all  regions  is   bookings  from  tour  operators.  The  GDS/agency  channel  closely  follows  but  s7ll  around  a  quarter  of  respondents  in   most  regions  have  experienced  an  increase  from  this  channel.   3rd  party  internet  channels  have  been  genera7ng  more  bookings  for  most  regions  as  well.  Most  are  hovering  around   the  50%  mark  except  La7n  America  where  36%  of  respondents  have  seen  an  increase.  Fewer  companies  from  those   represen7ng  Australia/NZ  have  experienced  a  decline  from  these  indirect  channels  in  comparisons  tother  markets.   Those  represen7ng  North  America,  Africa  and  the  Middle  East  seem  to  have  been  having  the  most  ac7vity  in  terms  of   mobile  bookings.  For  North  America  for  example,  37%  of  respondents  have  seen  an  increase  in  bookings  direct  from  a   mobile  device.  North  America  have  also  registered  a  larger  propor7on  with  an  increase  in  bookings  via  voice/call   centre  (31%).  The  biggest  decline  is  from  those  represen7ng  Eastern  Europe  (24%).
  • 7.
    Booking  Channels  By  Region   Increased About  the  same  volume Decreased No  bookings  via  this  channel Western  Europe   Direct  from  your  website 71% 22% 7% 1%  Tour  operator   25% 34% 25% 16% GDS/agency 24% 38% 22% 16% Third  party  Internet  channel  (e.g.  OTA) 45% 35% 11% 9%  Direct  from  a  mobile  device 27% 16% 2% 55%  Direct  via  voice/call  centre 22% 44% 20% 14% 0% 25% 50% 75% 100% %  of  respondents  representing  Western  Europe Eastern  Europe   Direct  from  your  website 0% 72% 20% 8%  Tour  operator   30% 29% 25% 16% GDS/agency 26% 40% 16% 18% Third  party  Internet  channel  (e.g.  OTA) 51% 28% 8% 13%  Direct  from  a  mobile  device 29% 20% 1% 50%  Direct  via  voice/call  centre 18% 46% 24% 12% 0% 25% 50% 75% 100% Eastern  Europe North  America Direct  from  your  website 0% 76% 20% 4%  Tour  operator   21% 34% 29% 16% GDS/agency 22% 38% 21% 18% Third  party  Internet  channel  (e.g.  OTA) 38% 39% 11% 12%  Direct  from  a  mobile  device 37% 16% 1% 46%  Direct  via  voice/call  centre 31% 44% 14% 11% 0% 25% 50% 75% 100% North  America
  • 8.
    Increased About the same volume Decreaed No bookings via this channel Australia  /  New  Zealand Direct  from  your  website 0% 78% 22%  Tour  operator   31% 29% 29% 10% GDS/agency 26% 38% 19% 17% Third  party  Internet  channel  (e.g.  OTA) 47% 36% 3% 14%  Direct  from  a  mobile  device 29% 16% 2% 53%  Direct  via  voice/call  centre 26% 47% 14% 14% 0% 25% 50% 75% 100% Australia/NZ Asia  Pacific Direct  from  your  website 69% 27% 3% 1%  Tour  operator   32% 38% 21% 9% GDS/agency 29% 36% 20% 15% Third  party  Internet  channel  (e.g.  OTA) 49% 34% 11% 5%  Direct  from  a  mobile  device 30% 19% 3% 48%  Direct  via  voice/call  centre 26% 46% 19% 9% 0% 25% 50% 75% 100% APAC Africa Direct  from  your  website 0% 77% 17% 7%  Tour  operator   27% 33% 27% 13% GDS/agency 17% 50% 23% 10% Third  party  Internet  channel  (e.g.  OTA) 53% 33% 10% 3%  Direct  from  a  mobile  device 0% 37% 17% 47%  Direct  via  voice/call  centre 20% 57% 17% 7% 0% 25% 50% 75% 100% Africa
  • 9.
    La.n  America Direct  from  your  website 79% 15% 3%3%  Tour  operator   23% 26% 33% 18% GDS/agency 18% 41% 23% 18% Third  party  Internet  channel  (e.g.  OTA) 36% 38% 10% 15%  Direct  from  a  mobile  device 0% 28% 18% 54%  Direct  via  voice/call  centre 23% 46% 15% 15% 0% 25% 50% 75% 100% Latin  America Middle  East Direct  from  your  website 70% 22% 6% 2%  Tour  operator   30% 28% 28% 14% GDS/agency 24% 38% 18% 20% Third  party  Internet  channel  (e.g.  OTA) 44% 36% 10% 10%  Direct  from  a  mobile  device 34% 14% 4% 48%  Direct  via  voice/call  centre 20% 52% 16% 12% 0% 25% 50% 75% 100% %  Middle  Esst Booking  Channels  By  Company  Sector   Considering  movements  in  bookings  channels  based  on  company  sector  we  can  see  that  there  are  again  no  major   trends  in  this  category  between  sectors,  except  that  a  larger  propor7on  of  DMCs/tourism  boards  have  experienced  a   decline  (27%)  in  bookings  direct  from  their  website.  Cruise,  Car  Rental  and  Airline  have  registered  the  largest   propor7ons  with  an  increase  at  75%,  75%  and  73%  respec7vely.   There  are  more  varia7ons  between  sectors  when  looking  at  bookings  via  voice/call  centre.  50%  of  Cruise  have   registered  an  increase  from  this  channel,  but  on  the  other  hand  50%  have  registered  a  decline  so  there  is  certainly   some  movement  in  this  sector  and  varying  trends  between  companies.  It  is  clear  that  although  this  channel  is   declining  for  a  number  of  companies  across  all  sectors,  such  as  21%  of  Hotel  and  Other  Accommoda7on,  and  a  quarter   of  Car  rental  companies,  it  is  s7ll  an  ac7ve  channel  for  bookings.   Bookings  via  mobile  devices  are  not  common  in  any  sector,  apart  from  perhaps  Car  Rental  where  only  13%  of   respondents  have  received  no  bookings  from  mobile  at  all.  Car  Rental  are  evidently  the  most  ac7ve  in  the  mobile   space  at  the  moment  and  a  huge  75%  of  respondents  have  experienced  an  increase  from  this  channel.  Hotel  and   Airline  are  also  faring  well  with  32%  and  35%  respec7vely  registering  an  increase  in  mobile  bookings  which  is   significant.  The  largest  decline  is  in  the  DMC/tourism  board  category.      
  • 10.
    Increased About the same volume Decreased No bookings via this channel Direct  from  Website   Tour  operator 67% 25% 6% 2% Other  accommodation 71% 13% 13% 4% Hotel 74% 22% 2%1% DMC  /  tourism  board 0% 64% 9% 27% Cruise 0% 75% 25% Car  Rental 0% 75% 25% Airline 0% 73% 19% 8% 0% 25% 50% 75% 100% %  of  respondents Direct  via  voice/call  centre Tour  operator 31% 46% 15% 8% Other  accommodation 21% 33% 21% 25% Hotel 32% 41% 21% 5% DMC  /  tourism  board 9% 55% 18% 18% Cruise 0% 50% 50% Car  Rental 0% 13% 63% 25% Airline 19% 62% 15% 4% 0% 25% 50% 75% 100% %  of  respondents Direct  from  mobile  device Tour  operator 23% 23% 2% 52% Other  accommodation 17% 17% 4% 62% Hotel 32% 14% 2% 52% DMC/tourism  board 9% 18% 18% 55% Cruise 0% 25% 25% 50% Car  Rental 0% 75% 13% 13% Airline 0% 35% 19% 46% 0% 25% 50% 75% 100% %  of  respondents
  • 11.
    Increased About the same volume Decreased No bookings via this channel Third  party  internet  channel  (e.g.  OTA) Tour  operator 37% 27% 8% 29% Other  accommodation 50% 17% 13% 21% Hotel 54% 39% 6% 1% DMC  /  tourism  board 0% 45% 36% 18% Cruise 25% 25% 25% 25% Car  Rental 0% 38% 25% 38% Airline 58% 27% 12% 4% 0% 25% 50% 75% 100% %  of  respondents GDS/Agency Tour  operator 25% 40% 6% 29% Other  accommodation 21% 33% 21% 25% Hotel 34% 35% 24% 7% DMC  /  tourism  board 45% 27% 18% 9% Cruise 0% 50% 50% Car  Rental 13% 50% 25% 13% Airline 35% 39% 19% 8% 0% 25% 50% 75% 100% %  of  respondents Tour  Operator Other  accommodation 25% 17% 13% 46% Hotel 19% 42% 32% 6% DMC/  tourism  board 36% 18% 18% 27% Cruise 0% 50% 50% Car  Rental 0% 50% 38% 13% Airline 35% 42% 12% 12% 0% 25% 50% 75% 100% %  of  respondents
  • 12.
    SecOon  2:    Online  Penetra.on  (for  suppliers)
  • 13.
    Online  Distribu.on  Propor.ons  for  Suppliers   Over  the  last  quarter  and  across  all  companies  globally,  the  average  propor7on  of  total  booking  volumes  that  travel   suppliers  distributed  via  online  channels  was  41%.  As  expected  the  extent  of  online  distribu7on  varies  amongst   respondents.  While  par7cipants  were  asked  approximate  propor7ons  to  the  nearest  percent,  we  have  grouped  the   propor7ons  into  ranges  to  make  it  easier  to  iden7fy  trends.   With  reference  to  the  chart  below  we  can  see  that  7%  of  respondents  distributed  between  91%  and  100%  via  online   channels  and  9%  in  the  range  of  76%  to  90%.  That  results  in  16%  of  travel  suppliers  distribu7ng  over  ¾  of  their   products  via  online  channels  in  the  last  quarter.  19%  of  companies  distributed  between  50%  and  75%  online,  and  21%   between  30%  to  49%  online.  The  largest  group  at  29%  sit  within  11%  to  29%  range.  It  is  revealed  that  14%  rely  heavily   on  offline  channels  with  less  than  10%  of  their  product  volume  sold  online,  but  we  can  see  clearly  in  the  graph  that  a   large  propor7on  have  now  shihed  over  50%  of  their  product  distribu7on  online.         Approximately  what  proporOon  (%)  of  your  total  bookings  (volume)  were  distributed  via  online  channels  over  the   last  3  months? 14% 7% 9% 91%  -­‐  100% 76%  -­‐  90% 50%  -­‐  75%   30%  -­‐  49% 29% 19% 11%  -­‐  29% Less  then  10%   21% Looking  further  into  the  data  we  have  considered  the  varia7ons  based  on  some  of  the  top  travel  markets  looking  at   Europe  specifically  against  some  other  key  global  markets.  The  top  travel  markets  refer  to  the  specific  country  in  which   the  respondent  is  based.  The  top  band  (91%  to  100%)  is  most  dominant  amongst  UK  respondents.  A  significant  21%   fall  within  this  range.  Germany  (17%),  China  (7%),  Spain  (6%)  and  the  US  (2%)  have  also  indicated  high  dominance  of   online  channels  for  their  businesses.  On  the  other  end  of  the  scale,  China  indicates  the  dominance  of  offline  channels   with  40%  distribu7ng  less  than  10%  of  their  product  volume  online.  35%  of  Australian  respondents  and  27%  of  Indian   respondents  also  fall  within  this  range.  The  UK  illustrates  a  rela7vely  even  spread  of  online  distribu7on  propor7ons  but   edging  on  the  higher  bands  of  over  50%.  Spain  is  not  too  dissimilar  to  the  UK  but  with  a  larger  group  within  the  30%  to   49%  range.  Germany  and  France  are  dominated  by  companies  in  the  11%  to  29%  range,  Germany  also  includes  17%  at   the  top  end  of  the  scale,  but  neither  are  represen7ng  companies  with  very  low  online  distribu7on  levels.  Italy  very   evenly  falls  within  the  middle  ranges  but  with  a  compara7vely  high  propor7on  amongst  the  76%  to  90%.   100% 6% 6% 7% 2% 6% 21% 17% 9% 18% 13% 25% 13% 33% 91% - 100% 28% 75% 11% 19% 24% 76% - 90% 33% 29% 50% - 75% 25% 40% 24% 30% - 49% 50% 31% 33% 100% 31% 11% - 29% 33% 18% Less then 10% 18% 25% 50% 50% 20% 25% 40% 18% 33% 35% 27% 13% 8% 6% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% UK n y ce ly es a a il lia an az di in ai Ita at an ra Sp In Ch Br rm St st Fr Au d   Ge ite Un
  • 14.
    Whilst  it  is  important  to  consider  the  loca7on  where  the  company  is  based,  more  importantly  it  is  relevant  to  consider   where  the  majority  of  their  customers  come  from  as  it  is  the  level  of  online  penetra7on  in  their  source  markets  and   specific  characteris7cs  that  may  have  a  real  influence  on  the  results.  It  must  however  be  realised  that  the  results  will   be  somewhat  skewed  as  this  is  not  data  in  rela7on  to  that  specific  market  only,  but  indica7ve.  For  example,  those  who   are  distribu7ng  predominantly  to  Africa  are  selling  between  11%  and  29%  via  online  channels.  Of  those  distribu7ng   predominantly  to  the  Middle  East,  21%  sell  90%  via  offline  channels.   Propor.on  Distributed  Online  Based  On  Where  Majority  Of  Customer  Come  From 100% 8% 2% 4% 2% 4% 100% 9% 3% 10% 9% 11% 9% 12% 10% 91%  -­‐  100% 14% 18% 7% 28% 76%  -­‐  90% 75% 14% 7% 21% 27% 13% 28% 23% 26% 29% 50%  -­‐  75%   50% 42% 46% 38% 30%  -­‐  49% 26% 30% 29% 29% 11%  -­‐  29% 25% Less  then  10%   21% 21% 14% 15% 15% 14% 12% 0% 0% 0% 0% 0% e e c ica ica ca d st i op op an cif Ea ri er er Af al ur ur Pa e   m m  Ze dl t  E  E  /    A  A st id ew ia es rth tin Ea M As W /N La No lia ra st Au
  • 15.
    SecOon  3:    Direct  vs  Indirect  Distribu.on         (for  suppliers)
  • 16.
    Direct  vs.  Indirect  Distribu.on  (Suppliers)   Travel  suppliers  distribu7ng  their  product  online  either  sell  via  direct  channels  or  via  an  intermediary  (indirect).  In  this   survey  of  all  suppliers  combined  globally  the  average  propor7on  of  direct  distribu7on  is  49%.  The  chart  below   indicates  the  varia7on  in  online  distribu7on  pamerns  amongst  respondents  for  example  14%  of  respondents  are   distribu7ng  less  than  10%  of  their  online  sales  through  direct  channels,  which  means  90%  is  sold  via  an  intermediary.   26%  of  all  respondents  are  distribu7ng  over  ¾  of  their  online  sales  direct.  When  asked  what  their  ideal  propor7on  of   direct  sales  would  be,  this  averaged  at  62% Propor.on  of  respondents  in  the  direct  distribu.on  propor.on  categories 30% % of repondents 23% 24% 20% 19% 15% 17% 14% 8% 7% 0%   % %   % 0% % % 29 49 90 10 75 10  -­‐    -­‐    -­‐      -­‐   en  -­‐   % % % % % 11 30 76  th 50 91 ss Le Propor.on  of  respondents  in  the  indirect  distribu.on  propor.on  categories Whilst  the  figures  below  should  match  neatly  with  the  figures  above  there  may  be  some  discrepancy  here  as  it  was   led  up  to  the  respondents  to  be  as  accurate  as  possible.   What  we  can  deduce  from  the  data  is  that  travel  suppliers  are  not  en7rely  reliant  on  online  intermediaries  for  their   sales  whilst  they  are  clearly  playing  a  significant  role  for  the  suppliers.   %  of  respondents 30% 26% 23% 23% 20% 15% 17% 8% 10% 3% 0%   % %   % 0% 0% % 29 49 90 75 10  1  -­‐    -­‐    -­‐    -­‐   en  -­‐   % % % % % 11 30 76  th 50 91 ss Le
  • 17.
    Aetudes  Towards  Direct  vs.  Indirect  Distribu.on   The  barometer  is  looking  to  understand  the  sen7ment  of  the  travel  industry  during  the  last  quarter.  It  looks  to  have   been  a  generally  posi7ve  quarter  for  online  sales  with  28%  feeling  that  their  direct  online  sales  were  bemer  than  they   expected  and  26%  for  indirect  sales.  Both  direct  and  indirect  sales  were  as  expected  for  the  majority  of  respondents,   44%  and  47%  respec7vely.    9%  of  respondents  were  extremely  posi7ve  sta7ng  that  their  direct  sales  were  much  bemer   than  expected  and  8%  for  indirect  sales.  Those  on  the  nega7ve  end  of  the  scale  amounted  to  18%  in  rela7on  to  direct   and  17%  for  indirect  sales.  Only  a  small  propor7on  stated  either  online  channel  was  much  worse  than  expected.   How  do  you  feel  about  the  results  of  your  direct  and  indirect  sales  over  the  last  quarter   Direct Indirect   9% Much  better  than  I  expected 8% 28% Better  than  expected 26% 44% As  expected 47% 15% Worse  than  expected 15% 3% Much  worse  than  expected 2% 1% None  distributed  via  this  channel 2% 0% 13% 25% 38% 50% The  role  of  online  intermediaries  in  the  distribu7on  of  travel  supplier  products  is  clearly  significant.  Over  half  of  all   respondents  state  that  indirect  online  channels  have  been  extremely  or  very  important  to  their  company  in  the  last  3   months.  Also  adding  those  respondents  that  consider  indirect  channels  ‘important’  it  results  in  85%  of  respondents.   Whilst  suppliers  are  aiming  to  distribute  a  higher  propor7on  of  online  sales  via  direct  channels,  it  is  clear  that   intermediaries  are  rates  as  a  channel  by  most.  47%  have  increased  the  number  of  online  third  party  distribu7on   channels  that  they  have  worked  with  over  the  last  quarter  and  44%  are  maintaining  the  same  number.  Just  6%  have   reduced  the  number  of  partners  and  4%  did  not  work  with  any  at  all. Please  rate  below  how  important  INDIRECT  online  channels  have  been  to  your  company  in  the  last   3  months Extremely  important 19% Very  important 34% Important 32% Neither  important  nor  unimportant 11% % of respondents Not  important 4% 0% 10% 20% 30% 40%
  • 18.
    Has  the  number  of  online  3rd  party  distribu.on  channels  you’ve  worked  with  increased  or   declined  in  the  last  3  months  compared  to  the  previous  quarter?     Increased 47% About  the  same  volume 44% Suppliers Declined 6% We  did  not  work  with  any 4% 0% 13% 25% 38% 50% %  of  respondents Considering  the  different  travel  sectors,  Cruise  are  the  most  reliant  upon  indirect  channels  for  online  distribu7on  with   50%  ra7ng  them  extremely  important.  In  comparison  only  8%  of  airlines  stated  them  extremely  important  but  a   further  38%  rate  them  very  important.  The  accommoda7on  sector  rate  them  highly  with  Hotel  resul7ng  in  61%  of   respondents  ra7ng  indirect  channels  either  extremely  or  very  important.  13%  of  the  Other  Accommoda7on  sector  rate   indirect  channels  as  ‘not  important’  which  could  perhaps  be  in  rela7on  to  the  type  or  size  of  inventory.  Indirect   channels  are  less  relevant  for  DMCs/tourism  boards  which  is  understandable  based  on  the  nature  of  their  product.   Please  rate  below  how  important  INDIRECT  online  channels  have  been  to  your  company  in  the  last   3  months       Extremely important Very important Important Neither important nor unimportant Not important Tour  operator 17% 19% 37% 17% 10% Other  accommodation 21% 25% 21% 21% 13% Hotel 0% 22% 39% 32% 7% DMC  /  tourism  board 0% 9% 36% 36% 18% Cruise 0% 0% 50% 25% 25% Car  Rental 0% 25% 38% 13% 25% Airline 8% 39% 42% 8% 4% 0% 25% 50% 75% 100% %  of  respondents
  • 19.
    Has  the  number  of  online  3rd  party  distribu.on  channels  you’ve  worked  with  increased  or   declined  in  the  last  3  months  compared  to  the  previous  quarter? Echoing  the  results  above,  Cruise  have  been  increasing  the  number  of  3rd  party  distribu7on  channels  they  are  working   with  in  the  last  quarter.  Tour  Operator,  Other  Accommoda7on,  Hotel,  DMC/tourism  board  and  Airline  have  reduced   the  number,  10%,  8%,  4%,  9%  and  12%  respec7vely.  The  tour  operators,  which  can  blur  over  the  borders  of  supplier   and  intermediary,  Other  Accommoda7on  and  the  DMC/tourism  board  sectors  have  propor7ons  that  do  not  work  with   3rd  party  partners  at  all.  Cruise  and  Car  Rental  have  both  either  increased  or  remained  consistent  with  the  number  of   indirect  channels.   Increased About the same volume Declined We did not work with any Tour  operator 39% 40% 10% 12% Other  accommodation 58% 25% 8% 8% Hotel 49% 46% 4% 1% DMC  /  tourism  board 45% 36% 9% 9% Cruise 0% 75% 25% Car  Rental 0% 50% 50% Airline 0% 46% 42% 12% 0% 25% 50% 75% 100% %  of  responents Do  you  mind  what  the  ra.o  of  direct  vs.  Indirect  distribu.on  is? It  has  been  established  that  indirect  distribu7on  channels  are  playing  an  important  role  for  online  distribu7on.  When   asked  if  they  mind  what  the  ra7o  of  direct  vs  indirect  distribu7on  is  84%  stated  yes.  Due  to  cost  of  sale  and  other  such   reasons  suppliers  are  unexpectedly  preferable  towards  direct  distribu7on.  The  chart  below  indicates  the  ideal   propor7on  of  direct  sales  as  a  total  of  online  sales.  12%  are  aiming  for  100%  direct  distribu7on  whereas  the  average   for  all  respondents  combined  as  men7oned  earlier  is  62%. Yes No 16% 84%
  • 20.
    Ideal  propor.on  of  direct  sales   15% 12% 12% %  of  respondents 11% 11% 10% 9% 7% 8% 5% 5% 4% 4% 4% 2% 2% 3% 2% 2% 1% 1% 2% 2% 1% 1% 1% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 1 5 8 10 11 12 14 15 17 20 25 28 30 33 35 40 45 50 55 60 65 70 75 76 80 85 90 92 95 98 99 100 Ideal  %  on  online  distribution  via  direct  channels How  fair  suppliers  feel  the  partnership  with  OTAs  are   There  is  currently  some  debate  amongst  the  travel  industry  as  to  the  value  of  the  partnerships  between  suppliers  and   OTAs.  We  ques7onned  the  fairness  of  the  current  partnership  with  both  suppliers  and  OTAs.  The  chart  below  illustrates   that  most  suppliers  are  siong  on  the  fence  but  it’s  weighed  towards  being  more  unfair.  33%  feel  that  it  is  neither  fair   nor  unfair.,  and  23%  ‘quite  unfair’.  Results  from  the  more  open  ques7ons  reveal  that  while  elements  of  the  partnership   are  not  enormously  praised  they  are  channel  of  distribu7on  that  are  valued  in  some  respects.  Only  3%  state  it  is   extremely  unfair. How  fair  intermediaries  feel  the  partnership  with  suppliers  is Extremely  FAIR 1% Very  fair 5% Quite  fair 29% Neither  fair  nor  unfair 33% Quite  unfair 23% Very  unfair 7% Extremely  UNFAIR 3% 0% 10.0% 20.0% 30.0% 40.0% %  of  respondents The  intermediary  perspec7ve  is  not  too  dissimilar  but  weighted  more  to  being  fair.  35%  state  neither  fair  not  unfair   and  32%  state  it’s  quite  fair.   Extremely  FAIR 2% Very  fair 11% Quite  fair 32% Neither  fair  nor  unfair 35% Quite  unfair 16% Very  unfair 2% Extremely  UNFAIR 3% 0% 10.0% 20.0% 30.0% 40.0%
  • 21.
    SecOon  4:    Current  Sen.ment  Towards  the         OTA-­‐Supplier  Partnership
  • 22.
    Sen.ment  towards  the  OTA-­‐Supplier  Partnership   Below  we  highlight  some  of  the  key  themes  emerging  in  this  edi7on  surrounding  the  partnership  between  the  Online   Travel  Agents  (OTAs)  and  suppliers.  In  the  first  image  we  can  iden7fy  that  the  key  concern  is  that  commission  rates  are   too  high  and  margins  are  being  squeezed.  Rate  parity  is  another  major  concern  in  the  current  situa7on.     What  suppliers  dislike  about  the  partnership  with  OTAs   From  the  OTA  perspec7ve,  the  image  below  illustrates  their  concerns.  The  main  theme  is  around  availability,  or  lack  of,   and  the  growth  in  direct  bookings  of  course.  Their  are  concerns  around  the  level  of  technology  that  suppliers  invest  in   to  maximise  the  partnership  and  are  looking  for  developments  in  this  area.  Readers  can  study  the  image  to  pick  up   some  of  them  other  issues.  The  larger  the  word  the  more  common  it  was  in  the  responses.   What  OTAs  dislike  about  the  current  partnership  with  suppliers  
  • 23.
    Looking  at  more  posi7ve  sen7ment,  the  OTAs  feel  that  suppliers  are  really  good  at  being  flexible  and  value  this   characteris7c  in  a  partner  that  is  having  to  operate  in  such  a  dynamic  industry.  They  feel  the  range  of  products  on  offer   are  great  and  they’ve  really  improved  in  their  online  presence  to  help  the  partnership  reach  new  levels.  Suppliers  that   are  efficient  and  willing  to  work  with  the  OTAs  are  rated.   What  do  the  OTAs  like  about  the  partnership  with  suppliers?   While  suppliers  have  iden7fied  (as  we  show  above)  their  concerns  over  the  commission  rates,  the  OTAs  are  s7ll  hugely   valued  as  a  distribu7on  and  marke7ng  channel  in  today’s  market.  The  level  of  reach  that  they  have  the  ability  to  drive   for  distribu7on  and  overall  marke7ng  purposes  is  the  most  common  theme.  It  is  also  noted  that  the  strength  of  their   brands  in  some  of  the  more  marginal  markets  makes  the  partnership  a  very  valuable  one.  For  many  travel  companies   the  OTAs  are  brining  them  in  incremental  business  and  any  sale  is  considered  good.   What  suppliers  like  about  the  partnership  with  intermediaries…  
  • 24.
    Based  on  the  supplier  sector,  there  is  some  varia7on  in  aotudes  towards  the  supplier  -­‐  OTA  partnership.  DMCs/ tourism  boards  make  up  the  majority  who  believe  the  partnership  is  unfair  with  27%  of  this  group  sta7ng  it  is  very   unfair.  Again  due  to  the  nature  of  their  product  it  is  difficult  to  accurately  cross  compare  with  the  other  travel  sectors.   Other  Accommoda7on  have  a  propor7on  who  consider  it  very  unfair  sugges7ng  perhaps  that  the  characteris7cally  low   volume  or  price  inventory  is  not  as  well  regarded  in  the  OTA  sector  or  that  there  are  not  enough  niche  operators   serving  the  purpose  effec7vely.  While  Cruise  rely  heavily  on  indirect  channels  50%  feel  that  the  partnership  is  quite   unfair.  4%  of  the  Hotel  sector  currently  feel  that  the  partnership  is  extremely  unfair  and  8%  of  the  airlines.  43%  of   Hotel  respondents  feel  that  the  partnership  is  unfair  to  some  degree.  Airlines  are  more  posi7ve  with  74%  either   neutral  or  fair  to  some  degree.     Extremely FAIR Very fair Quite fair Neither fair nor unfair Quite unfair Very unfair Extremely UNFAIR Tour  operator 0% 6% 2% 35% 37% 12% 10% Other  accommodation 0%4% 0% 8% 38% 46% 4% Hotel 0%4% 22% 30% 32% 7% 4% DMC  /  tourism  board 0% 45% 18% 9% 27% Cruise 0% 0% 25% 25% 50% Car  Rental 0% 0% 25% 50% 25% Airline 0% 8% 0% 31% 35% 19% 8% 0% 25% 50% 75% 100% %  of  respondents Supplier  Perspec.ve  On  OTAs Over  half  (52%)  of  all  travel  supplier  respondents  agree  that  they  cannot  compete  in  the  market  without  partnering   with  OTAs.  17%  are  neutral.  The  remaining  30%  either  disagree  (21%)  or  disagree  strongly  (9%).  While  commission   costs  are  ohen  raised  as  an  argument  against  the  OTA  partnership,  44%  believe  that  the  cost  is  worth  the  sale.  33%  are   however  in  delibera7on  and  an  addi7onal  24%  do  not  think  the  cost  is  worth  the  sale.  Respondents  have  mixed   feelings  about  whether  the  OTA  has  a  threatened  future.  36%  agree  that  the  OTA  will  lose  market  share  over  the  next   few  years.  41%  disagree.  63%  do  feel  that  the  current  OTA  model  needs  to  change,  no  one  diagrees  strongly.  Again   feelings  are  mixed  as  to  whether  OTAs  are  compe7tors  of  suppliers.  Almost  half  of  the  respondents  agree  in  some   respect  with  12%  agreeing  strongly.  24%  disagree  and  4%  disagree  strongly.  33%  feel  that  their  marke7ng  proficiencies   are  on  a  par  with  OTAs  these  days  and  another  33%  disagree  with  the  statement.  34%  are  either  agree  nor  disagree.   Agree  strongly Agree Neither  agree  nor  disagree Disagree Disagree  strongly I  cannot  compete  in  the  market  without  partnering  with  OTAs 12% 40% 17% 21% 9% The  high  cost  of  OTA  commission  is  not  worth  the  sale 4% 20% 33% 40% 4% OTAs  will  lose  market  share  over  the  next  few  years 8% 28% 22% 34% 7% The  OTA  model  needs  to  change 15% 48% 27% 10% 0% OTAs  are  negatively  impacting  supplier  brands 11% 30% 31% 24% 4% OTAs  are  competitors  of  suppliers 12% 35% 26% 24% 4% My  company’s  marketing  proficiencies  are  on  a  par  with  OTAs  these  days 6% 27% 34% 29% 4% 0% 25% 50% 75% 100%
  • 25.
    Supplier  Perspec(ve  On  OTAs  by  Company  Sector   Cruise  and  Car  Rental  sectors  show  up  as  the  sectors  more  reliant  upon  the  OTAs.  While  no  one  in  the  Cruise  sector   agreed  strongly  with  the  statement  that  ‘I  cannot  compete  in  the  market  without  partnering  with  OTAs’,  50%   disagreed.  Hotels  are  revealed  as  the  sector  with  the  most  value  placed  on  OTAs;  66%  agree  to  some  degree  that  they   cannot  compete  without  them  and  only  17%  disagreed.  Other  Accommoda7on  reveal  a  different  pamern  with  63%   disagreeing  with  the  statement.  Airlines  are  mixed  but  more  neutral  than  Hotels  with  half  agreeing  that  they  are  vital   to  their  compe77veness  but  38%  disagreeing. I  cannot  compete  in  the  market  without  partnering  with  OTAs Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 8% 31% 19% 25% 17% Other  accommodation 8% 21% 8% 38% 25% Hotel 17% 49% 16% 14% 3% DMC  /  tourism  board 9% 27% 36% 9% 18% Cruise 0% 0% 25% 25% 50% Car  Rental 0% 38% 13% 38% 13% Airline 4% 46% 12% 23% 15% 0% 25% 50% 75% 100% %  of  respondents The  high  cost  of  OTA  commission  is  not  worth  the  sale Above  Cruise  revealed  that  they  are  not  necessarily  uncompe77ve  without  OTAs  but  they  75%  do  feel  that  a  high  cost   of  commission  is  worth  the  sale.  25%  do  not  agree  with  the  statement.  Apart  from  DMCs/tourism  boards  (most  are   neutral),  most  sectors  show  the  value  they  place  on  OTAs  as  a  distribu7on  channel.  Car  Rental  are  the  largest  group  to   agree  with  the  statement  (38%). Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 0% 6% 19% 37% 39% Other  accommodation 4% 13% 33% 42% 8% Hotel 3% 21% 36% 38% 3% DMC/  tourism  board 0% 9% 9% 64% 18% Cruise 0% 0% 25% 75% Car  Rental 0% 0% 38% 13% 50% Airline 4% 23% 15% 46% 12% 0% 25% 50% 75% 100% %  of  respondents
  • 26.
    OTAs  will  lose  market  share  over  the  next  few  years The  respondents  that  think  that  OTAs  will  lose  market  share  over  the  next  few  years  is  dominated  by  the  Cruise  and   Car  Rental  sectors,  closely  followed  by  the  Hotel  and  Airlines.       Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 2% 21% 35% 31% 12% Other  accommodation 4% 21% 21% 50% 4% Hotel 11% 30% 21% 32% 6% DMC  /  tourism  board 0% 27% 18% 45% 9% Cruise 0% 0% 25% 25% 50% Car  Rental 0% 0% 25% 38% 38% Airline 8% 31% 15% 35% 12% 0% 25% 50% 75% 100% %  of  respondents The  OTA  model  needs  to  change The  Car  Rental  sector  are  the  most  adamant  that  the  OTA  model  needs  to  change.  88%    agree  with  the  statement.   Hotels  follow  with  73%  agreeing.  25%  of  the  Cruise  sector  are  happy  to  work  with  the  current  model  but  50%  do  agree   a  change  is  required. Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 0% 10% 31% 40% 19% Other  accommodation 0% 13% 38% 38% 13% Hotel 21% 52% 21% 6% 1% DMC  /  tourism  board 0% 9% 55% 27% 9% Cruise 0% 0% 50% 25% 25% Car  Rental 0% 0% 13% 75% 13% Airline 0% 12% 42% 39% 8% 0% 25% 50% 75% 100% %  of  respondents
  • 27.
    OTAs  are  nega.vely  impac.ng  supplier  brands Car  Rental  companies  currently  feel  that  OTAs  are  nega7vely  affec7ng  supplier  brands,  25%  strongly  agree  and  38%   agree.  The  Airline  companies  appear  least  affected  in  this  respect.  For  the  Hotel  sector  44%  agree  to  some  degree  but   this  is  not  across  the  board;  28%  have  not  experienced  this.   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 12% 27% 37% 21% 4% Other  accommodation 8% 29% 38% 17% 8% Hotel 14% 30% 27% 24% 4% DMC  /  tourism  board 0% 9% 36% 36% 18% Cruise 0% 0% 50% 25% 25% Car  Rental 0% 25% 38% 25% 13% Airline 4% 23% 35% 35% 4% 0% 25% 50% 75% 100% %  of  respondents OTAs  are  compe.tors  of  suppliers Our  Cruise  par7cipants  feel  that  the  OTAs  are  compe7ng  with  them,  but  we  have  established  that  the  partnership  is   realised  as  valuable.  The  Car  Rental  sector  which  competes  heavily  on  price  understandably  are  targe7ng  the  same   consumer  for  the  lowest  possible  price.  Hotels  and  Other  Accommoda7on  are  split  with  around  half  agreeing  with  the   statement,  24%  neutral  and  29%  disagree.  Airlines  display  a  similar  pamern.  Tour  operators  are  more  evenly  spread   across  the  scale. Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 8% 35% 23% 29% 6% Other  accommodation 17% 29% 37% 12% 4% Hotel 15% 32% 24% 26% 3% DMC  /  tourism  board 0% 9% 55% 27% 9% Cruise 0% 0% 100% Car  Rental 0% 13% 75% 13% Airline 8% 39% 23% 19% 12% 0% 25% 50% 75% 100% %  of  respondents
  • 28.
    My  company’s  marke.ng  proficiencies  are  on  a  par  with  OTAs  these  days Car  Rental  companies  feel  the  heat  from  the  OTAs  as  they  are  compe7ng  with  them  but  realise  their  marke7ng  power.   Cruise  is  the  opposite  with  50%  disagreeing  perhaps  due  to  the  nature  of  their  product  which  is  rela7vely  new  to  the   online  space  and  a  very  high  value  product.  Hotels  and  Airlines  rate  the  marke7ng  ability  of  OTAs  most  for  their   products.   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Tour  operator 0% 6% 39% 44% 12% Other  accommodation 4% 42% 29% 21% 4% Hotel 4% 22% 29% 38% 6% DMC  /  tourism  board 9% 27% 36% 9% 18% Cruise 0% 0% 50% 50% Car  Rental 0% 0% 25% 13% 63% Airline 8% 19% 39% 31% 4% 0% 25% 50% 75% 100% %  of  respondents Intermediary  feelings  about  their  sales  performance  over  the  last   quarter   Much  better  than  I  expected 11% Better  than  expected 38% As  expected 33% Worse  than  expected 14% Much  worse  than  expected 2% N/A 4% 0% 10% 20% 30% 40% Intermediaries  reveal  a  posi7ve  last  quarter.  49%  feel  that  their  bookings  were  bemer  than  expected.
  • 29.
    Considering  the  following  travel  products,  how  have  your  sales  volumes  changed  over  the  last  3   months?  -­‐  Intermediaries  only   Breaking  down  the  specific  products  distributed  via  the  intermediaries,  there  have  been  increases  across  sectors  and   the  most  success  is  with  flight  and  hotel  products.  The  largest  increase  has  been  in  Hotel  product  sales  with  49%  of   respondents  having  experienced  an  increase.  Flight  sales  have  been  increased  by  4%.  Around  a  quarter  of  respondents   have  had  consistent  sales  across  the  sectors.  Declines  can  also  be  iden7fied  in  each  sector  but  on  a  smaller  scale,  all  at   6%  except  Hotels  at  8%  of  respondents.  The  sale  of  dynamic  packages  has  increased  for  28%  of  respondents  and  29%   have  increased  the  sale  of  des7na7on  ac7vi7es.   Increased No  change Declined We  don't  offer  this Don't  know   Flight  only 34% 16% 6% 30% 14% Hotel  only 49% 25% 8% 12% 6% Car  rental  only 13% 25% 6% 36% 20% Dynamic  packages 28% 24% 6% 29% 13% Destination  activities 29% 19% 6% 29% 17% 0% 25% 50% 75% 100% Have  your  bookings  (volumes)  generated  via  the  following  channels  increased  or  decreased  over   the  last  3  months  (from  the  previous  quarter)? The  most  significant  increase  in  the  last  quarter  for  channels  from  which  Intermediaries  are  receiving  their  bookings  is   from  their  websites.  64%  have  experienced  an  increase  in  the  last  3  months  and  only  7%  have  experienced  a  decline.   Voice/call  centre  is  remaining  to  be  important  with  28%  experiencing  an  increase.  31%  didn’t  receive  any  bookings  via   that  channel.  While  59%  of  respondents  didn’t  receive  any  bookings  via  mobile  device,  it  is  interes7ng  to  note  that   24%  have  experienced  an  increase  in  the  last  quarter.   Increased About the same volume Decreased No bookings via this channel From  your  website 64% 22% 7% 7% Via  voice/call  centre 28% 31% 10% 31%  From  a  mobile  device 24% 15% 2% 59% 0% 25% 50% 75% 100%
  • 30.
    SecOon  5:     Sources  of  Online  Traffic  In  Travel
  • 31.
    Sources  of  Online  Traffic  in  Travel   We  asked  our  survey  respondents  to  list  their  top  sources  of  online  traffic  and  have  created  a  ‘Wordle’  to  help  iden7fy   the  dominant  trends.  Google  is  clearly  the  most  influen7al  channel  for  travel  companies,  bot  paid  and  organic,  but   par7cularly  organic.  Search  engine  op7misa7on  is  certainly  a  core  requirement  for  all  travel  companies  to  remain   compe77ve  amongst  their  peers.  We  can  also  see  some  of  the  social  channels  rela7vely  prominent,  par7cularly   Facebook,  but  also  Tripadvisor.  It’s  the  search  engines  overall  however  that  are  leading  the  way  and  globally,  Google   dominates  overall.   Today’s  main  sources  of  traffic  in  online  Travel  
  • 32.
    Online  Traffic  Sources   With  reference  to  the  chart  below,  the  largest  growth  area  for  web  traffic  sources  over  the  last  3  months  have  been   from  organic  search  lis7ngs  and  Facebook.  62%  of  respondents  registered  an  increase  from  organic  search  lis7ngs  and   56%  from  Facebook.  Across  all  traffic  sources  we  can  see  that  there  is  growth  nonetheless.  The  social  media  sites  listed   in  the  survey  are  all  performing  well,  Twimer  follows  Facebook  with  39%  registering  an  increase  in  traffic  from  here.   However  we  can  also  see  that  around  a  quarter  of  all  companies  are  not  benefiong  from  many  of  the  social  sites.   YouTube  is  not  genera7ng  traffic  for  almost  half  of  respondents  and  Twimer  does  is  not  affec7ng  32%.  For  the  43%  of   respondents  who  have  registered  ac7vity  with  mobile  websites,  over  half  of  those  have  experienced  an  increase  in   traffic.  For  mobile  applica7ons  it  is  a  similar  picture.  For  those  involved  with  company  blogs  or  online  communi7es   they  also  seem  to  be  performing  well;  of  62%  of  respondents  who  ranked  this  relevant,  32%  have  seen  an  increase  in   traffic  from  this  source  and  only  3%  a  decline.           Referring  to  the  potenOal  web  traffic  sources  listed  below,  please  indicate  in  the  context  of  your  website,  whether  traffic  volumes   have  increased  or  decreased  from  these  sources  over  the  last  3  months. Increased About the same Decreased No traffic from this source / Not applicable Organic  search  engine  listings 62% 29% 3% 6% Paid  search  listings   41% 32% 6% 21% Display  online  advertising 34% 32% 7% 28%  Email  marketing  links 44% 36% 5% 16%  Travel  meta-­‐search  sites 29% 39% 4% 28%  Online  directories 19% 47% 10% 24% Affiliates 31% 36% 9% 24% Facebook 56% 20% 1% 23% Twitter 39% 27% 2% 32% YouTube 20% 29% 2% 48% TripAdvisor 34% 26% 3% 38% Mobile  website 26% 16% 1% 56% Mobile  application 25% 15% 1% 59%  Company  blog  /  online  community 32% 27% 3% 38% 0% 25% 50% 75% 100% Traffic  Sources  By  MarkeOng  Budget   Analysing  results  based  on  the  size  of  annual  marke7ng  budget  shows  a  few  clear  trends  amongst  the  different  traffic   source  categories.  Please  refer  to  the  charts  below.  Organic  search  engines  lis7ngs  displays  less  of  a  pamern  though   with  growth  across  all  budget  sizes.  This  makes  sense  as  it  can  certainly  be  a  lower  investment  for  success  from  this   source.  It  is  surprising  however  that  17%  in  the  under  $25k  budget  range  do  not  receive  any  traffic  from  this  source  at   all  but  we  are  unable  to  inves7gate  into  the  reasons  behind  this.   Company  blogs  and  online  communi7es  also  do  not  reveal  clear  pamerns  in  the  data  except  that  those  in  the  mid   range  budgets  appear  to  have  the  most  growth  in  traffic  from  this  source  and  are  the  most  ac7ve.        
  • 33.
    Increased About  the  same Decreased No  traffic  from  this  source  /  Not  applicable Organic  Search  Engine  Lis.ngs   Less  than  $25k 51% 29% 4% 17% $26k  -­‐  $50k 0% 58% 37% 5% $50k  -­‐  $100k 58% 32% 9% 2% $201k  -­‐  $300k 66% 24% 6% 4% $301k  -­‐  $400k 0% 50% 39% 11% Marketing  budget $401k  -­‐  $500k 0% 40% 45% 15% $501k  -­‐  $750k 0% 72% 22% 6% $751k  -­‐  $1  million 0% 63% 34% 3% $1.1  million  -­‐  $2  million 60% 32% 5% 3% $2.1  million  -­‐  $5  million 0% 78% 19% 3% $5.1  million  -­‐  $10  million 74% 18% 3% 6% $10.1  million  -­‐  $50  million 0% 76% 21% 2% $51  million  -­‐  $100  million 0% 67% 33% $101million  + 70% 22% 4% 4% Total   62% 29% 3% 6% 0% 25% 50% 75% 100% %  of  respondents Company  Blog  /  Online  Community   Less  than  $25k 27% 23% 5% 46% $26k  -­‐  $50k 33% 20% 3% 43% $50k  -­‐  $100k 29% 24% 2% 46% $201k  -­‐  $300k 0% 28% 34% 38% Marketing  Budget $301k  -­‐  $400k 33% 11% 6% 50% $401k  -­‐  $500k 0% 45% 35% 20% $501k  -­‐  $750k 44% 28% 6% 22% $751k  -­‐  $1  million 0% 44% 25% 31% $1.1  million  -­‐  $2  million 0% 32% 27% 41% $2.1  million  -­‐  $5  million 30% 35% 5% 30% $5.1  million  -­‐  $10  million 0% 29% 27% 44% $10.1  million  -­‐  $50  million 29% 33% 7% 31% $51  million  -­‐  $100  million 0% 50% 25% 25% $101million  + 0% 37% 33% 30% 0% 25% 50% 75% 100% %  of  respondents Mobile  Applica.on   Less  than  $25k 0% 13% 15% 72% $26k  -­‐  $50k 0% 13% 18% 68% $50k  -­‐  $100k 22% 5% 3% 70% $201k  -­‐  $300k 16% 12% 2% 70% Marketing  Budget $301k  -­‐  $400k 0% 11% 17% 72% $401k  -­‐  $500k 0% 30% 20% 50% $501k  -­‐  $750k 33% 11% 6% 50% $751k  -­‐  $1  million 0% 34% 16% 50% $1.1  million  -­‐  $2  million 0% 22% 22% 57% $2.1  million  -­‐  $5  million 30% 19% 3% 49% $5.1  million  -­‐  $10  million 0% 32% 12% 56% $10.1  million  -­‐  $50  million 0% 45% 12% 43% $51  million  -­‐  $100  million 0% 42% 33% 25% $101million  + 0% 59% 19% 22% 0% 25% 50% 75% 100%
  • 34.
    Mobile  Website   Less  than  $25k 18% 12% 3% 67% $26k  -­‐  $50k 0% 12% 22% 67% $50k  -­‐  $100k 19% 7% 5% 70% $201k  -­‐  $300k 20% 16% 2% 62% Marketing  Budget $301k  -­‐  $400k 0% 11% 22% 67% $401k  -­‐  $500k 0% 40% 10% 50% $501k  -­‐  $750k 44% 6% 6% 44% $751k  -­‐  $1  million 0% 41% 16% 44% $1.1  million  -­‐  $2  million 0% 24% 22% 54% $2.1  million  -­‐  $5  million 0% 30% 22% 49% $5.1  million  -­‐  $10  million 0% 29% 21% 50% $10.1  million  -­‐  $50  million 0% 45% 17% 38% $51  million  -­‐  $100  million 0% 42% 50% 8% $101million  + 0% 52% 19% 30% 0% 25% 50% 75% 100% %  of  respondents Firstly,  there  is  a  trend  showing  that  those  involved  in  social  media  and  mobile  increases  in  line  with  larger  marke7ng   budgets.  Yet  this  is  not  an  en7rely  neat  trend  because  30%  of  the  largest  marke7ng  budget  range,  for  example,  are  not   ac7ve  with  mobile  websites.  This  budget  range  has  however  registered  the  most  respondents  with  growth  from   mobile  web  traffic.  Mobile  applica7ons  ohen  require  more  investment  than  a  mobile  website  which  is  perhaps   indica7ve  of  the  trend  in  that  chart.  Those  in  the  largest  budget  category  have  registered  the  most  growth  from  this   source  with  59%  of  respondents  experiencing  an  increase  in  comparison  to  13%  in  the  smallest  range.             Facebook   Less  than  $25k 0% 45% 17% 39% $26k  -­‐  $50k 0% 50% 25% 25% $50k  -­‐  $100k 41% 27% 3% 29% $201k  -­‐  $300k 0% 58% 22% 20% Marketing  Budget $301k  -­‐  $400k 0% 56% 6% 39% $401k  -­‐  $500k 0% 75% 15% 10% $501k  -­‐  $750k 0% 78% 11% 11% $751k  -­‐  $1  million 0% 63% 16% 22% $1.1  million  -­‐  $2  million 0% 57% 27% 16% $2.1  million  -­‐  $5  million 65% 24% 3% 8% $5.1  million  -­‐  $10  million 0% 65% 15% 21% $10.1  million  -­‐  $50  million 0% 67% 21% 12% $51  million  -­‐  $100  million 0% 50% 33% 17% $101million  + 0% 67% 19% 15% 0% 25% 50% 75% 100% %  of  respondents Social  media  sources  display  a  trend  in  rela7on  to  marke7ng  budgets.  It  is  quite  clearly  pronounced  in  rela7on  to   Tripadvisor  par7cularly.  The  trend  line  is  less  pronounced  in  rela7on  to  Youtube  and  Twimer.  Mid  budget  companies   around  the  half  a  million  dollar  range  appear  to  be  the  most  successful  group  amongst  Facebook  and  Twimer,   registering  the  largest  increases  from  both  sites.  Facebook  is  however  helping  to  drive  traffic  to  companies  across  all   budgets  very  successfully  and  almost  half  of  companies  with  the  smallest  budgets  have  experienced  an  increase  which   is  indica7ve  of  how  effec7ve  this  has  been  as  a  source  of  traffic  for  any  travel  company  over  the  last  quarter.  There  are   however  s7ll  39%  of  this  budget  range  that  are  not  taking  advantage  of  the  medium,  along  with  a  good  propor7on  of        
  • 35.
    those  in  other  budget  ranges  too.  Twimer  has  resulted  in  a  similar  pamern  to  Facebook  but  with  fewer  experiencing   growth  across  the  board.  However  the  ac7vity  within  the  different  budget  ranges  is  comparable.  Travel  companies  in   all  budget  ranges  appear  less  ac7ve  in  Youtube,  par7cularly  as  we  reach  the  lower  budget  ranges.  Less  companies   overall  are  registering  growth  in  traffic  from  this  source.   TripAdvisor Increased About the same Decreased No traffic from this source / Not applicable Less  than  $25k 21% 23% 5% 51% 0% 37% 15% 48% $50k  -­‐  $100k 36% 22% 3% 39% Marketing  Budget 38% 14% 2% 46% $301k  -­‐  $400k 33% 28% 6% 33% 0% 25% 40% 35% $501k  -­‐  $750k 0% 39% 22% 39% 0% 34% 31% 34% $1.1  million  -­‐  $2  million 38% 30% 5% 27% 27% 38% 5% 30% $5.1  million  -­‐  $10  million 38% 32% 3% 27% 31% 38% 5% 26% $51  million  -­‐  $100  million 50% 25% 8% 17% 0% 63% 22% 15% 0% 25% 50% 75% 100% %  of  respondents Twiper   Less  than  $25k 24% 25% 3% 48% 0% 38% 30% 32% $50k  -­‐  $100k 34% 27% 3% 36% 0% 40% 30% 30% Marketing  Budget $301k  -­‐  $400k 0% 33% 17% 50% 60% 15% 5% 20% $501k  -­‐  $750k 0% 67% 17% 17% 0% 47% 22% 31% $1.1  million  -­‐  $2  million 0% 30% 43% 27% 49% 27% 5% 19% $5.1  million  -­‐  $10  million 0% 53% 15% 32% 38% 36% 2% 24% $51  million  -­‐  $100  million 0% 50% 33% 17% 0% 48% 30% 22% 0% 25% 50% 75% 100% %  of  respondents YouTube     Less  than  $25k 14% 22% 5% 59% 15% 25% 2% 58% $50k  -­‐  $100k 24% 25% 2% 49% Marketing  Budget 0% 20% 32% 48% $301k  -­‐  $400k 0% 22% 17% 61% 0% 15% 40% 45% $501k  -­‐  $750k 0% 28% 33% 39% 31% 25% 3% 41% $1.1  million  -­‐  $2  million 0% 19% 43% 38% 22% 30% 3% 46% $5.1  million  -­‐  $10  million 0% 27% 24% 50% 19% 45% 2% 33% $51  million  -­‐  $100  million 0% 50% 25% 25% 15% 44% 4% 37% 0% 25% 50% 75% 100% %  of  respondents
  • 36.
    No  major  pamerns  are  iden7fied  in  the  traffic  generated  from  affiliates.  It  is  rela7vely  even  in  the  propor7ons  that  have   experienced  growth  and  maintained  levels  across  all  budget  categories.  It  can  be  seen  however  that  almost  half  of  the   lower  budget  companies  are  not  working  with  affiliates.   Traffic  from  online  directories  is  also  rela7vely  consistent  across  budget  categories.  Less  growth  has  been  experienced   from  this  poten7al  traffic  source  in  comparison  to  other  categories.     Affiliates   Less  than  $25k 26% 28% 4% 43% 25% 35% 10% 30% $50k  -­‐  $100k 31% 41% 10% 19% Marketing  Budget 30% 42% 12% 16% $301k  -­‐  $400k 17% 28% 17% 39% 20% 50% 10% 20% $501k  -­‐  $750k 50% 33% 6% 11% 34% 41% 3% 22% $1.1  million  -­‐  $2  million 35% 30% 8% 27% 32% 38% 22% 8% $5.1  million  -­‐  $10  million 32% 35% 6% 26% 45% 41% 7% 7% $51  million  -­‐  $100  million 0% 50% 50% 33% 41% 7% 19% 0% 25% 50% 75% 100% %  of  respondents Online  Directories     Less  than  $25k 21% 40% 9% 31% 22% 37% 13% 28% $50k  -­‐  $100k 19% 46% 14% 22% 18% 50% 6% 26% Marketing  Budget $301k  -­‐  $400k 17% 56% 6% 22% 15% 45% 20% 20% $501k  -­‐  $750k 0% 28% 56% 17% 16% 47% 6% 31% $1.1  million  -­‐  $2  million 19% 49% 16% 16% 11% 62% 8% 19% $5.1  million  -­‐  $10  million 27% 44% 9% 21% 12% 67% 7% 14% $51  million  -­‐  $100  million 25% 33% 17% 25% 26% 48% 4% 22% 0% 25% 50% 75% 100% %  of  respondents Travel  meta-­‐search  sites  are  proving  successful  for  the  companies  with  larger  budgets  and  it  could  be  assumed  that   many  of  these  companies  are  airlines  which  would  make  sense.  48%  of  the  largest  budget  category  have  experienced   an  increase  in  traffic  from  these  sites  in  the  last  3  months  in  comparison  to  18%  in  the  lowest  budget  range.   Email  marke7ng  links  are  used  more  commonly  across  all  budget  ranges,  although  31%  of  the  lowest  budget  category   are  not  benefiong  from  these  at  all.  The  largest  propor7on  of  companies  with  an  increase  from  these  sources  are  in   the  mid  budget  ranges  such  as  67%  of  those  with  a  budget  between  $501  -­‐  $750k.  
  • 37.
    Increased About the same Decreased No traffic from this source / Not applicable Travel  Meta-­‐Search  Sites   Less  than  $25k 18% 40% 2% 41% 23% 40% 3% 33% $50k  -­‐  $100k 24% 37% 7% 32% 30% 42% 4% 24% Marketing  Budget $301k  -­‐  $400k 22% 39% 6% 33% 0% 30% 40% 30% $501k  -­‐  $750k 0% 39% 33% 28% 25% 41% 6% 28% $1.1  million  -­‐  $2  million 0% 51% 35% 14% 24% 41% 5% 30% $5.1  million  -­‐  $10  million 35% 38% 9% 18% 38% 45% 7% 10% $51  million  -­‐  $100  million 25% 42% 8% 25% 48% 26% 7% 19% 0% 25% 50% 75% 100% %  of  respondents Email  Marke.ng  Links   Less  than  $25k 37% 28% 5% 31% 35% 47% 5% 13% $50k  -­‐  $100k 36% 36% 7% 22% 48% 38% 4% 10% Marketing  Budget $301k  -­‐  $400k 0% 33% 50% 17% 0% 55% 30% 15% $501k  -­‐  $750k 0% 67% 28% 6% 50% 31% 3% 16% $1.1  million  -­‐  $2  million 46% 41% 3% 11% 51% 38% 8% 3% $5.1  million  -­‐  $10  million 50% 27% 6% 18% 52% 43% 2% 2% $51  million  -­‐  $100  million 33% 42% 8% 17% 44% 33% 11% 11% 0% 25% 50% 75% 100% %  of  respondents Display  online  adver7sing  is  more  common  amongst  companies  with  larger  budgets  understandably  and  they  have   also  proved  successful  in  the  last  quarter.  Around  half  of  the  larger  budget  ranges  have  registered  an  increase  in  traffic   from  their  online  display  adver7sing  efforts.   Paid  search  lis7ngs  again  are  dominated  by  those  with  larger  budgets.  Around  half  of  those  in  the  smallest  budget   range  are  not  inves7ng  in  this  form  of  marke7ng.  The  majority  of  those  that  are  inves7ng  in  paid  search  lis7ngs  have   experienced  an  increase  in  traffic.  There  is  a  good  propor7on  in  both  display  and  paid  search  adver7sing  that  have  not   seen  much  of  a  change  in  the  last  3  months.    
  • 38.
    Display  Online  Adver.sing   Less  than  $25k 16% 25% 8% 52% 28% 37% 10% 25% $50k  -­‐  $100k 25% 34% 5% 36% 34% 26% 8% 32% Marketing  Budget $301k  -­‐  $400k 28% 28% 11% 33% 40% 40% 5% 15% $501k  -­‐  $750k 28% 56% 6% 11% 38% 25% 9% 28% $1.1  million  -­‐  $2  million 43% 32% 5% 19% 38% 38% 14% 11% $5.1  million  -­‐  $10  million 0% 50% 29% 21% 55% 31% 5% 9% $51  million  -­‐  $100  million 0% 50% 33% 17% 44% 33% 11% 11% 0% 25% 50% 75% 100% %  of  respondents Paid  Search  Lis.ngs   Less  than  $25k 22% 26% 6% 47% 28% 33% 5% 33% $50k  -­‐  $100k 32% 32% 9% 27% 40% 30% 10% 20% Marketing  Budget $301k  -­‐  $400k 28% 33% 11% 28% 0% 40% 40% 20% $501k  -­‐  $750k 0% 56% 44% 28% 63% 6% 3% $1.1  million  -­‐  $2  million 62% 27% 3% 8% 57% 30% 8% 5% $5.1  million  -­‐  $10  million 56% 21% 9% 15% 55% 33% 10% 2% $51  million  -­‐  $100  million 0% 67% 33% 67% 26% 4% 4% 0% 25% 50% 75% 100% %  of  respondents Traffic  Sources  by  Company  Sector   We  realise  that  it  is  not  all  about  budget  in  online  marke7ng,  so  taking  a  look  at  the  results  by  company  sector  may   reveal  some  more  interes7ng  trends.  Organic  search  lis7ngs  as  with  marke7ng  budget  size  does  not  reveal  any  major   differences  amongst  sectors.  Cruise  register  the  biggest  propor7on  with  an  increase  in  traffic  from  this  source  at  86%,   the  other  14%  state  that  it  is  not  applicable.  Meta-­‐search  sites  have  experienced  the  biggest  decline  in  traffic  from  this   source  with  40%  of  the  companies  registering  a  decline.  It  is  evidently  an  important  and  growing  source  of  traffic  for  all   other  travel  sectors.   Paid  search  lis7ngs  have  worked  best  for  Car  Rental  and  Meta-­‐Search  companies  in  the  last  quarter  and  Hotel  and   Other  Accommoda7on  are  not  far  behind.  43%  of  Hotel  companies  have  registered  a  growth  in  traffic  from  their   investment  in  PPC.  
  • 39.
    Increased About the same Decreased No traffic from this source / Not applicable Organic  Search  Engine  Lis.ngs   Hotel 64% 30% 2%4% Other  accommodation 61% 19% 10% 10% Airline 0% 68% 29% 3% Car  Rental 0% 69% 23% 8% Cruise 0% 86% 14% Destination  management  company  /  tourism  board 0% 45% 45% 9% Tour  operator 60% 27% 5% 8% Online  Travel  Agent  (OTA) 68% 27% 1%4% Meta-­‐search 0% 20% 40% 40% Other  online  intermediary 58% 26% 8% 8% "Offline"  intermediary  /  Retail 0% 46% 46% 8% 0% 25% 50% 75% 100% %  of  respondents Paid  Search  Engine  Lis.ngs   Hotel 43% 35% 4% 17% Other  accommodation 55% 16% 3% 26% Airline 38% 47% 6% 9% Car  Rental 0% 62% 15% 23% Cruise 43% 29% 14% 14% Destination  management  company  /  tourism  board 18% 50% 5% 27% Tour  operator 41% 24% 8% 27% Online  Travel  Agent  (OTA) 50% 27% 8% 15% Meta-­‐search 0% 60% 20% 20% Other  online  intermediary 29% 42% 6% 23% "Offline"  intermediary  /  Retail 13% 29% 21% 38% 0% 25% 50% 75% 100% %  of  respondents
  • 40.
    Increased About the same Decreased No traffic from this source / Not applicable The  transport  sector  and  Cruise  have  registered  the  most  success  from  display  online  adver7sing.  Around  a  third  of   Hotel  and  Other  Accommoda7on  have  experienced  an  increase  in  traffic  from  investments  here.  Most  sectors  have   experienced  a  decline  in  traffic  from  display  online  adver7sing  but  in  smaller  propor7ons.   Cruise  stand  out  as  the  sector  with  the  most  growth  amongst  the  respondents  from  email  marke7ng,  71%.  Around  half   of  respondents  from  other  sectors  have  however  seen  good  growth  except  meta-­‐search  sites  which  have  remained   predominantly  consistent.  A  good  propor7on  of  Car  Rental  companies  are  not  u7lising  email  as  a  source  of  traffic   genera7on.   Display  Online  Adver.sing       Hotel 33% 40% 7% 21% Other  accommodation 0% 35% 32% 32% Airline 56% 21% 12% 12% Car  Rental 0% 62% 15% 23% Cruise 0% 57% 14% 29% Destination  management  company  /  tourism  board 36% 18% 9% 36% Tour  operator 31% 31% 9% 29% Online  Travel  Agent  (OTA) 31% 28% 8% 33% Meta-­‐search 0% 20% 20% 60% Other  online  intermediary 25% 34% 5% 37% "Offline"  intermediary  /  Retail 17% 37% 17% 29% 0% 25% 50% 75% 100% %  of  respondents Email  Marke.ng  Links   Hotel 42% 39% 3% 16% Other  accommodation 48% 29% 7% 16% Airline 44% 38% 6% 12% Car  Rental 0% 38% 31% 31% Cruise 0% 71% 14% 14% Destination  management  company  /  tourism  board 0% 50% 36% 14% Tour  operator 48% 32% 8% 12% Online  Travel  Agent  (OTA) 44% 40% 4% 13% Meta-­‐search 0% 20% 60% 20% Other  online  intermediary 46% 28% 3% 23% "Offline"  intermediary  /  Retail 33% 42% 17% 8% 0% 25% 50% 75% 100% %  of  respondents
  • 41.
    Increased About the same Decreased No traffic from this source / Not applicable Travel  Meta-­‐Search  Sites   Hotel 37% 44% 3% 16% Other  accommodation 23% 39% 6% 32% Airline 32% 53% 3% 12% Car  Rental 31% 31% 8% 31% Cruise 14% 14% 14% 57% Destination  management  company  /  tourism  board 27% 41% 5% 27% Tour  operator 31% 37% 7% 25% Online  Travel  Agent  (OTA) 26% 24% 4% 46% Meta-­‐search 0% 20% 80% Other  online  intermediary 23% 34% 2% 42% "Offline"  intermediary  /  Retail 17% 50% 8% 25% 0% 25% 50% 75% 100% %  of  respondents Affiliates   Hotel 31% 43% 7% 20% Other  accommodation 29% 32% 10% 29% Airline 0% 32% 53% 15% Car  Rental 54% 15% 15% 15% Cruise 0% 57% 14% 29% Destination  management  company  /  tourism  board 27% 27% 14% 32% Tour  operator 37% 29% 8% 25% Online  Travel  Agent  (OTA) 32% 36% 10% 22% Meta-­‐search 40% 20% 20% 20% Other  online  intermediary 25% 32% 11% 32% "Offline"  intermediary  /  Retail 25% 50% 13% 13% 0% 25% 50% 75% 100% %  of  respondents Travel  meta-­‐search  sites  are  showing  to  have  made  the  most  posi7ve  impact  in  the  Hotel  sector  with  37%  of   respondents  experiencing  traffic  growth  from  these  sites  in  the  last  3  months.  Most  sectors  have  however  experienced   more  consistency  than  growth.   Affiliates  are  working  well  for  the  Car  Rental  and  Cruise  sectors,  growth  for  54%  and  57%  respec7vely.  The  biggest   decline  has  been  for  the  DMCs/tourism  boards  at  27%.  Meta-­‐search  sites  are  not  very  ac7ve  in  this  marke7ng  channel.    
  • 42.
    Online  Directories   Hotel 21% 58% 8% 13% Other  accommodation 16% 45% 13% 26% Airline 15% 50% 6% 29% Car  Rental 0% 31% 46% 23% Cruise 14% 29% 14% 43% Destination  management  company  /  tourism  board 18% 32% 27% 23% Tour  operator 28% 39% 11% 23% Online  Travel  Agent  (OTA) 15% 40% 12% 33% Meta-­‐search 0% 40% 60% Other  online  intermediary 12% 45% 9% 34% "Offline"  intermediary  /  Retail 21% 46% 13% 21% 0% 25% 50% 75% 100% %  of  respondents Referring  to  the  charts  below,  results  in  rela7on  to  Twimer  are  rela7vely  consistent  across  all  sectors.  The  majority  who   are  par7cipa7ng  have  experienced  growth  over  the  last  quarter.  Tripadvisor  on  the  other  hand  is  understandably  more   dominant  in  the  accommoda7on  sector.  62%  of  Hotel  companies  have  registered  growth  from  this  channel,  Other   Accommoda7on  is  less  ac7ve  but  of  those  that  are  included  or  involved  are  experiencing  good  results.  This  source  is   less  favourable  for  the  transporta7on  sector.  Facebook  is  providing  good  results  across  all  sectors.  Well  over  half  of   travel  companies  in  each  sector,  apart  of  OTAs,  have  registered  a  increase  in  traffic  rom  this  source.  DMCs/tourism   boards  are  proving  very  good  results  out  of  those  who  are  par7cipa7ng.  YouTube  is  proving  more  relevant  for  suppliers   than  OTAs  and  accommoda7on  and  transport  sectors  have  shown  rela7vely  similar  results.  The  Cruise  sector  appear  to   have  had  the  most  growth  in  the  last  quarter  based  on  the  number  of  respondents  from  that  sector.     Twiper   Increased About the same Decreased No traffic from this source / Not applicable Hotel 43% 27% 1% 30% Other  accommodation 0% 36% 23% 42% Airline 44% 32% 3% 21% Car  Rental 0% 38% 38% 23% Cruise 0% 43% 14% 43% Destination  management  company  /  tourism  board 0% 46% 14% 41% Tour  operator 39% 25% 5% 31% Online  Travel  Agent  (OTA) 28% 35% 1% 36% Meta-­‐search 0% 40% 20% 40% Other  online  intermediary 48% 31% 2% 20% "Offline"  intermediary  /  Retail 25% 13% 4% 58% 0% 25% 50% 75% 100% %  of  respondents
  • 43.
    Facebook   Hotel 59% 22% 1% 19% Other  accommodation 0% 52% 13% 36% Airline 0% 62% 24% 15% Car  Rental 0% 62% 15% 23% Cruise 0% 57% 14% 29% Destination  management  company  /  tourism  board 0% 64% 5% 32% Tour  operator 53% 23% 1% 23% Online  Travel  Agent  (OTA) 42% 31% 1% 26% Meta-­‐search 0% 60% 40% Other  online  intermediary 0% 68% 14% 19% "Offline"  intermediary  /  Retail 0% 54% 13% 33% 0% 25% 50% 75% 100% %  of  respondents TripAdvisor   Hotel 62% 27% 3% 9% Other  accommodation 0% 32% 26% 42% Airline 0% 29% 35% 35% Car  Rental 0% 8% 39% 54% Cruise 0% 14% 86% Destination  management  company  /  tourism  board 32% 23% 9% 36% Tour  operator 27% 29% 4% 40% Online  Travel  Agent  (OTA) 17% 18% 3% 63% Meta-­‐search 0% 100% Other  online  intermediary 17% 22% 3% 59% "Offline"  intermediary  /  Retail 4% 29% 8% 58% 0% 25% 50% 75% 100% %  of  respondents YouTube   Hotel 23% 34% 1% 42% Other  accommodation 0% 26% 19% 55% Airline 0% 24% 44% 32% Car  Rental 0% 23% 38% 38% Cruise 0% 43% 29% 29% Destination  management  company  /  tourism  board 32% 18% 5% 46% Tour  operator 25% 24% 5% 45% Online  Travel  Agent  (OTA) 5% 31% 3% 62% Meta-­‐search 0% 20% 80% Other  online  intermediary 0% 20% 29% 51% "Offline"  intermediary  /  Retail 8% 17% 8% 67% 0% 25% 50% 75% 100% %  of  respondents
  • 44.
    Mobile  is  working  best  for  the  Car  Rental  sector  and  54%  of  respondents  have  registered  an  increase  in  traffic  from   mobile  applica7ons.  Airline  companies  are  also  more  ac7ve  in  comparison  to  other  sectors  and  are  showing  a  similar   pamern.  Hotel  companies  also  seeing  growth  with  28%  of  respondents  experiencing  increased  traffic  from  mobile   applica7ons  which  is  a  large  propor7on  of  the  43%  who  are  par7cipa7ng.   In  terms  of  mobile  websites,  again  the  Car  Rental  and  Airline  sectors  are  the  most  ac7ve  and  have  proved  the  best   results.  62%  of  Car  rental  companies  have  registered  a  growth  in  traffic  from  mobile  websites.  There  appears  to  be  less   ac7vity  amongst  OTAs  but  21%  have  s7ll  registered  growth.   Company  blogs  and  online  communi7es  show  more  consistency  across  sectors.  The  best  results  are  in  the  Car  Rental   and  DMC/tourism  board  sectors.     Increased About the same Decreased No traffic from this source / Not applicable Mobile  Applica.on   Hotel 28% 14% 1% 57% Other  accommodation 0% 16% 13% 71% Airline 0% 41% 21% 38% Car  Rental 0% 54% 15% 31% Cruise 0% 29% 71% Destination  management  company  /  tourism  board 0% 14% 23% 64% Tour  operator 20% 15% 3% 63% Online  Travel  Agent  (OTA) 17% 15% 1% 67% Meta-­‐search 0% 20% 20% 60% Other  online  intermediary 0% 32% 12% 55% "Offline"  intermediary  /  Retail 4% 17% 4% 75% 0% 25% 50% 75% 100% %  of  respondents Mobile  Website   Hotel 30% 17% 1% 51% Other  accommodation 0% 19% 10% 71% Airline 0% 44% 18% 38% Car  Rental 0% 62% 15% 23% Cruise 0% 29% 14% 57% Destination  management  company  /  tourism  board 0% 9% 36% 55% Tour  operator 23% 15% 4% 59% Online  Travel  Agent  (OTA) 21% 15% 1% 63% Meta-­‐search 0% 20% 20% 60% Other  online  intermediary 0% 32% 11% 57% "Offline"  intermediary  /  Retail 0% 21% 8% 71% 0% 25% 50% 75% 100% %  of  respondents
  • 45.
    Company  Blog  /  Online  Community   Hotel 24% 25% 2% 49% Other  accommodation 0% 36% 13% 52% Airline 38% 32% 6% 24% Car  Rental 0% 54% 23% 23% Cruise 0% 43% 57% Destination  management  company  /  tourism  board 50% 18% 5% 27% Tour  operator 36% 19% 5% 40% Online  Travel  Agent  (OTA) 30% 39% 5% 27% Meta-­‐search 0% 60% 40% Other  online  intermediary 0% 39% 32% 29% "Offline"  intermediary  /  Retail 37% 29% 4% 29% 0% 25% 50% 75% 100% %  of  respondents
  • 46.
    SecOon  6:     Marke.ng  Channels
  • 47.
    Marke.ng  Channels   Analysing  data  from  all  respondents  of  both  supplier  and  intermediary  surveys,  organic  search  engine  lis7ngs  have   proved  to  be  the  most  influen7al  marke7ng  channel  for  bookings  over  the  last  3  months  for  the  largest  propor7on  of   travel  companies  (38%).  PPC  is  the  second  most  rates  channel  (22%  of  respondents)  and  email  marke7ng  the  third   (19%).  Social  media  is  rated  by  14%.   Considering  the  markeOng  channels  below,  please  choose  ONE  which  you'd  highlight  as  the  most  influenOal  to  your   bookings  over  the  last  3  months? 14% 19% Email marketing Meta-search sites Mobile devices 22% 5% Organic search engine listings 2% Paid search (PPC) Social media 38% Influen7al  channels  do  vary  across  sectors.  Email  marke7ng  is  rated  most  by  Cruise  and  Offline  intermediary  sectors;   43%  and  38%  respec7vely.  This  is  not  found  influen7al  at  all  by  the  Meta-­‐Search  companies.  Meta-­‐Search  sites  have   been  found  rela7vely  less  influen7al  to  bookings  but  are  rated  by  a  number  of  suppliers  and  intermediaries.  Mobile   stands  out  in  the  Airline  and  Car  Rental  sectors  but  sits  with  a  marginal  propor7on  of  respondents;  9%  and  8%   respec7vely.  Organic  search  lis7ngs  which  is  the  most  influen7al  overall,  is  par7cularly  useful  for  Meta-­‐Search   companies  in  which  60%  rate  this  as  the  most  influen7al  channel  to  their  bookings.  The  other  sectors  reveal  similar   propor7ons  for  this,  except  the  slightly  slower  offline  intermediaries.  PPC  has  been  par7cularly  influen7al  for  Car   Rental,  OTA  and  Meta-­‐Search  companies.  Social  media  appears  to  be  working  best  for  DMCs/tourism  boards,  Cruise   and  offline  intermediaries.  The  Hotel  sector  and  Other  Accommoda7on  as  well  as  Airline  companies  emphasise  the   value  of  organic  search  lis7ngs  for  the  last  quarter.     Most  influen(al  marke(ng  channel  by  company  sector   Email marketing Meta-search sites Mobile devices Organic search engine listings Paid search (PPC) Social media Hotel 13% 6% 1% 44% 27% 10% Other  accommodation 0% 23% 6% 35% 16% 19% Airline 27% 3% 9% 32% 12% 18% Car  Rental 0% 8% 0% 8% 46% 38% Cruise 0% 0% 43% 29% 29% DMC  /  tourism  board 0% 14% 9% 36% 5% 36% Tour  operator 0% 31% 3% 33% 19% 15% Online  Travel  Agent  (OTA) 17% 5% 1% 37% 35% 5% Meta-­‐search 0% 0% 60% 40% Other  online  intermediary 17% 6% 2% 40% 14% 22% "Offline"  intermediary  /  Retail 0% 38% 13% 21% 4% 25% 0% 25% 50% 75% 100% %  of  respondents
  • 48.
    Most  influen(al  channel  by  markeOng  budget   There  are  some  minor  trends  iden7fied  when  analysing  the  results  by  size  of  marke7ng  budget.  Email  marke7ng  for   example  is  rated  as  the  most  influen7al  by  those  with  smaller  marke7ng  budgets,  where  as  PPC  is  more  influen7al  for   those  that  can  afford  it  in  the  higher  budget  categories.  Social  media  is  on  the  other  hand  not  isolated  to  the  big  guys   and  the  smaller  budget  ranges  are  evidently  seeing  good  results  from  these  channels  in  rela7on  to  bookings;  around  a   quarter  of  those  at  the  lowest  budget  range  selected  social  media  as  the  most  influen7al  marke7ng  channel  in  the  last   quarter.  Mobile  is  interes7ngly  also  appearing  in  the  lower  budget  ranges  but  there  is  no  major  trend  here  with  the   limited  number  of  responses  for  this  channel.  Meta-­‐Search  is  also  a  similar  pamern  to  mobile  but  we  can  iden7fy  a   more  significant  15%  in  the  top  budget  range.   Email marketing Meta-search sites Mobile devices Organic search engine listings Paid search (PPC) Social media Less  than  $25k 22% 6% 5% 36% 8% 24% $26k  -­‐  $50k 22% 5% 2% 35% 20% 17% $50k  -­‐  $100k 24% 3%2% 47% 15% 8% $201k  -­‐  $300k 0% 20% 2% 36% 22% 20% $301k  -­‐  $400k 0% 28% 33% 17% 22% Marketing  Budget $401k  -­‐  $500k 0% 25% 5% 20% 25% 25% $501k  -­‐  $750k 0% 11% 0% 11% 50% 28% $751k  -­‐  $1  million 12% 9% 6% 31% 28% 12% $1.1  million  -­‐  $2  million 27% 8% 3% 30% 24% 8% $2.1  million  -­‐  $5  million 0% 22% 51% 24% 3% $5.1  million  -­‐  $10  million 0% 18% 3% 44% 27% 9% $10.1  million  -­‐  $50  million 0% 14% 2% 48% 33% 2% $51  million  -­‐  $100  million 0% 42% 42% 17% $101million  + 0% 7% 15% 33% 33% 11% 0% 25% 50% 75% 100% %  of  respondents  within  the  budget  category Most  influen(al  channel  by  region  represenOng   In  terms  of  Europe,  the  UK  found  email  marke7ng,  organic  search  lis7ngs  and  PPC  the  most  influen7al  to  their   bookings  over  the  last  quarter.  The  ra7os  were  rela7vely  evenly  split  with  slightly  more  weight  on  Search.  Respondents   from  Germany  rated  organic  search  lis7ngs  the  most  (73%)  and  an  even  split  for  the  remainder  between  email,  PPC   and  social  media.  France  also  rate  organic  search  the  most  (55%)  and  show  a  rela7vely  higher  propor7on  towards  PPC   as  well  (27%).  Italy  who  represent  the  highest  propor7on  ra7ng  social  media  (22%)  also  rate  organic  search  the  most   (33%)  but  we  can  iden7fy  them  a  source  for  Meta-­‐Search  results  as  well  (11%).  Spain  is  split  evenly  between  both   organic  and  paid  search  (45%  for  each)  and  the  remaining  9%  rate  social  media  over  email,  mobile  and  meta-­‐search   which  has  not  been  selected.     The  US  is  similar  to  the  UK  except  with  a  higher  propor7on  ra7ng  social  media  (21%)  and  less  on  PPC  (15%).  Australia   are  also  very  similar  to  the  UK.  China  is  in  line  with  the  UK  but  showing  some  results  from  meta-­‐search.  India  is   comparable  to  the  US,  but  puts  more  weight  towards  social  media  (19%)  and  less  on  organic  search  lis7ngs.  Brazil  is   rela7vely  evenly  split  across  all  channels  except  meta-­‐search  and  mobile  are  not  listed.  
  • 49.
    Most  influen.al  channels  by  region  respondents  represent   United  Kingdom 21% 3%2% 33% 34% 8% Germany 0% 9% 73% 9% 9% France 0% 0% 9% 9% 55% 27% Italy 0% 11% 11% 33% 22% 22% Spain 0% 45% 45% 9% Global 20% 5% 2% 38% 22% 14% United  States 21% 7% 2% 34% 15% 21% Australia 0% 15% 3% 49% 21% 12% China 22% 9% 4% 22% 35% 9% India 22% 3% 3% 32% 20% 19% Brazil 0% 29% 29% 29% 14% 0% 25% 50% 75% 100% %  of  respondents  based  on  the  country  in  which  the  respondent  is  specifically  located
  • 50.
    SecOon  7:     Marke.ng  Budgets
  • 51.
    Marke.ng  Budgets   Most  Recent  Quarter   Respondents  of  the  survey  are  clearly  less  inclined  to  the  majority  of  offline  marke7ng  tac7cs  in  comparison  to  online,   except  perhaps  print  adver7sing  where  30%  do  did  not  allocate  any  budget  towards  this.  56%  of  all  travel  companies  in   the  survey  invested  more  budget  towards  website  design/re-­‐design  in  the  last  quarter.  This  is  the  category  showing  the   largest  growth  amongst  respondents.  The  second  largest  growth  area  is  social  media  marke7ng  (not  including  the   adver7sements)  with  53%  of  respondents  alloca7ng  more  budget  in  the  last  quarter.  Just  19%  are  not  alloca7ng   anything  towards  this.  In  terms  of  social  media  adver7sements  37%  increased  their  budgets  for  this,  30%  allocated  the   same,  4%  reduced  the  budget  and  29%  did  not  allocate  any.    Email  marke7ng  is  the  third  largest  growth  category  and   one  of  the  most  common  marke7ng  ac7vi7es  invested  in.  43%  allocated  more  budget  in  the  last  quarter,  40%   alloca7ng  the  same  and  8%  alloca7ng  less.  Mobile    marke7ng  is  being  invested  in  by  half  of  the  respondents  to  some   degree.  A  quarter  of  all  respondents  increased  their  budget  for  mobile  marke7ng  in  the  last  quarter.  The  biggest   reduc7on  in  budget  is  towards  print  adver7sing  at  20%,  following  by  direct  mail  (14%)  and  display  online  adver7sing   (13%). In  the  last  3  months  did  you  allocate  more  or  less  budget  to  the  following  markeOng  acOviOes  compared  to  the   previous  quarter: More The same Less None Website  design  /  re-­‐design 56% 30% 6% 8% Paid  search  engine  optimisation  (PPC 39% 30% 11% 21% Strategic  links  and  online  sponsorship   33% 39% 9% 19% Local  search  listings 20% 44% 10% 26% Travel  meta-­‐search   19% 40% 10% 32% Display  online  advertising  e.g.  banners 27% 32% 13% 29% Email  marketing   43% 40% 8% 10% Social  media  advertisements 37% 30% 4% 29% Other  social  marketing:  Facebook,  Flickr,  Twitter,  Youtube,  etc 53% 26% 3% 19% Mobile  marketing:  via  mobile  website,  SMS  or  application   25% 21% 5% 50% TV  advertising 9% 16% 7% 67% Outdoor  advertising 13% 21% 10% 57% Experiential  marketing 14% 26% 6% 54% Consumer  events  /  event  sponsorship 21% 33% 9% 37% Print  advertising   16% 33% 20% 30% Direct  mail  (postal)   13% 22% 14% 51% 0% 25% 50% 75% 100% %  of  all  travel  companies Marke(ng  Investment  by  MarkeOng  Budget  Size In  the  following  sec7on  we  have  considered  the  ac7vi7es  amongst  different  marke7ng  budgets  and  some  trends  have   been  revealed.  Website  design/re-­‐design  does  not  indicate  any  major  trends.  It  is  worth  poin7ng  out  that  the  lower   end  of  the  budget  ranges  less  companies  have  invested  anything  at  all  perhaps  as  the  sites  are  less  complex  than  some   of  the  large  companies.  However  across  all  budget  categories  we  can  see  that  the  majority  have  allocated  more  budget   in  the  last  quarter  towards  their  websites.
  • 52.
    More The same Less None Website  Design  /  Re-­‐Design   Less  than  $25k 52% 21% 5% 22% $26k  -­‐  $50k 43% 33% 10% 13% $50k  -­‐  $100k 63% 29% 5% 3% $201k  -­‐  $300k 60% 32% 4% 4% $301k  -­‐  $400k Marketing  Budget 56% 28% 6% 11% $401k  -­‐  $500k 55% 30% 5% 10% $501k  -­‐  $750k 0% 61% 39% $751k  -­‐  $1  million 53% 31% 13% 3% $1.1  million  -­‐  $2  million 0% 54% 41% 5% $2.1  million  -­‐  $5  million 0% 62% 24% 14% $5.1  million  -­‐  $10  million 68% 24% 6% 3% $10.1  million  -­‐  $50  million 52% 40% 5% 2% $51  million  -­‐  $100  million 0% 58% 33% 8% $101million  + 59% 30% 4% 7% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Direct  Mail  (Postal) Less  than  $25k 18% 12% 8% 62% $26k  -­‐  $50k 8% 20% 18% 53% $50k  -­‐  $100k 12% 24% 17% 48% $201k  -­‐  $300k 0% 18% 22% 60% $301k  -­‐  $400k 17% 22% 22% 39% Marketing  Budget $401k  -­‐  $500k 20% 45% 5% 30% $501k  -­‐  $750k 22% 33% 6% 39% $751k  -­‐  $1  million 13% 16% 13% 59% $1.1  million  -­‐  $2  million 14% 22% 22% 43% $2.1  million  -­‐  $5  million 11% 16% 14% 60% $5.1  million  -­‐  $10  million 6% 38% 12% 44% $10.1  million  -­‐  $50  million 12% 29% 10% 50% $51  million  -­‐  $100  million 8% 25% 25% 42% $101million  + 4% 19% 48% 30% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Direct  mail  which  is  not  a  marke7ng  ac7vity  invested  in  by  the  majority  of  travel  companies  across  all  marke7ng   budget  ranges.  We  can  see  that  as  the  marke7ng  budget  increases,  the  investment  in  direct  mail  does  become   rela7vely  less  but  a  correla7on  is  not  clear  cut.  In  terms  of  those  alloca7ng  more  budget  it  is  slightly  skewed  towards   the  lower  end  o  the  budget  scale.  
  • 53.
    Print  Adver.sing   More The same Less None Less  than  $25k 13% 26% 10% 52% $26k  -­‐  $50k 7% 38% 25% 30% $50k  -­‐  $100k 17% 31% 27% 25% $201k  -­‐  $300k 10% 44% 4% 42% $301k  -­‐  $400k Marketing  Budget 39% 17% 28% 17% $401k  -­‐  $500k 20% 40% 10% 30% $501k  -­‐  $750k 22% 28% 17% 33% $751k  -­‐  $1  million 12% 31% 25% 31% $1.1  million  -­‐  $2  million 27% 22% 30% 22% $2.1  million  -­‐  $5  million 16% 43% 22% 19% $5.1  million  -­‐  $10  million 18% 41% 21% 21% $10.1  million  -­‐  $50  million 14% 36% 29% 21% $51  million  -­‐  $100  million 25% 33% 25% 17% $101million  + 22% 37% 30% 11% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Print  adver7sing  is  invested  in  more  by  those  with  higher  marke7ng  budgets  but  those  that  do  par7cipate  in  this   ac7vity  have  revealed  similar  results  for  the  last  quarter.  The  biggest  growth  is  seen  amongst  the  $3001  -­‐  $400k  range   at  39%.   Consumer  Events  /  Event  Sponsorship   Less  than  $25k 14% 18% 14% 54% $26k  -­‐  $50k 20% 33% 10% 37% $50k  -­‐  $100k 20% 32% 12% 36% $201k  -­‐  $300k 30% 30% 2% 38% $301k  -­‐  $400k Marketing  Budget 22% 17% 22% 39% $401k  -­‐  $500k 0% 40% 25% 35% $501k  -­‐  $750k 0% 28% 39% 33% $751k  -­‐  $1  million 22% 34% 6% 37% $1.1  million  -­‐  $2  million 30% 46% 5% 19% $2.1  million  -­‐  $5  million 22% 32% 8% 38% $5.1  million  -­‐  $10  million 21% 38% 6% 35% $10.1  million  -­‐  $50  million 17% 48% 5% 31% $51  million  -­‐  $100  million 17% 42% 8% 33% $101million  + 11% 63% 11% 15% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category The  mid  range  marke7ng  budgets  have  been  alloca7ng  more  towards  consumer  events  or  event  sponsorship.   Increases  are  reduced  at  the  lower  and  higher  end  of  the  budget  scale.  The  majority  of  companies  are  maintaining  the   budget  towards  this  ac7vity  so  we  are  not  seeing  a  huge  change  amongst  most  budget  ranges.  
  • 54.
    Experien.al  Marke.ng   More The  same Less None Less  than  $25k 11% 14% 6% 69% $26k  -­‐  $50k 17% 25% 7% 52% $50k  -­‐  $100k 10% 20% 14% 56% $201k  -­‐  $300k 24% 20% 2% 54% $301k  -­‐  $400k 0% 33% 6% 61% $401k  -­‐  $500k 0% 20% 45% 35% $501k  -­‐  $750k 0% 11% 28% 61% $751k  -­‐  $1  million 16% 28% 9% 47% $1.1  million  -­‐  $2  million 8% 49% 3% 41% $2.1  million  -­‐  $5  million 16% 22% 3% 60% $5.1  million  -­‐  $10  million 15% 29% 6% 50% $10.1  million  -­‐  $50  million 10% 33% 7% 50% $51  million  -­‐  $100  million 17% 25% 8% 50% $101million  + 19% 37% 11% 33% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Experien7al  marke7ng  is  invested  in  by  a  smaller  propor7on  of  the  industry.  The  biggest  budget  range  par7cipa7ng  is   the  top  budget  range.  Some  growth  can  be  seen  in  all  ranges  except  one  but  the  majority  are  not  changing  their   budget  alloca7on.   Outdoor  Adver.sing   Less  than  $25k 9% 17% 7% 67% 5% 20% 7% 68% $50k  -­‐  $100k 14% 8% 10% 68% 12% 18% 2% 68% Marketing  Budget $301k  -­‐  $400k 6% 17% 17% 61% 25% 30% 10% 35% $501k  -­‐  $750k 6% 28% 6% 61% 9% 22% 3% 66% $1.1  million  -­‐  $2  million 11% 27% 11% 51% 16% 19% 14% 51% $5.1  million  -­‐  $10  million 12% 26% 12% 50% 24% 26% 14% 36% $51  million  -­‐  $100  million 25% 42% 17% 17% 26% 33% 22% 19% 0% 25% 50% 75% 100% %  of  respondents  within  market  budget  category Outdoor  adver7sing,  used  mainly  by  those  with  larger  budgets,  has  shown  some  growth  amongst  those  with  budgets   over  $10.1  million.  Around  a  quarter  of  these  respondents  have  increased  their  budgets  towards  this  in  the  last  3   months.  22%  of  the  $101  million  and  over  have  also  decreased  their  alloca7on  towards  this.  The  only  other  category   that  stands  out  is  the  $401  -­‐  $500  range  with  a  quarter  of  this  group  also  increasing  their  outdoor  adver7sing  budgets.  
  • 55.
    TV  Adver.sing   More The same Less None Less  than  $25k 3% 9% 6% 82% $26k  -­‐  $50k 3% 10% 8% 78% $50k  -­‐  $100k 5% 8% 10% 76% $201k  -­‐  $300k 4% 12% 2% 82% $301k  -­‐  $400k Marketing  Budget 6% 6% 6% 83% $401k  -­‐  $500k 15% 20% 5% 60% $501k  -­‐  $750k 0% 17% 11% 72% $751k  -­‐  $1  million 3% 19% 3% 75% $1.1  million  -­‐  $2  million 5% 35% 14% 46% $2.1  million  -­‐  $5  million 8% 8% 5% 78% $5.1  million  -­‐  $10  million 18% 29% 6% 47% $10.1  million  -­‐  $50  million 31% 26% 5% 38% $51  million  -­‐  $100  million 25% 33% 17% 25% $101million  + 30% 33% 15% 22% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category TV  adver7sing  unexpectedly  is  an  ac7vity  for  those  with  higher  budgets.  This  trend  is  clear.  For  those  within  the  higher   budget  categories,  around  30%  have  increased  budgets  for  this,  similar  propor7ons  have  kept  their  alloca7ons  the   same  and  in  the  top  budget  category  15%  have  allocated  less.   Mobile  marke.ng:  via  mobile  website,  SMS  or  applica.on Less  than  $25k 13% 14% 5% 68% $26k  -­‐  $50k 17% 25% 7% 52% $50k  -­‐  $100k 22% 15% 5% 58% $201k  -­‐  $300k 22% 18% 4% 56% $301k  -­‐  $400k Marketing  Budget 11% 22% 11% 56% $401k  -­‐  $500k 30% 25% 5% 40% $501k  -­‐  $750k 39% 11% 6% 44% $751k  -­‐  $1  million 22% 28% 6% 44% $1.1  million  -­‐  $2  million 0% 24% 32% 43% $2.1  million  -­‐  $5  million 27% 24% 8% 41% $5.1  million  -­‐  $10  million 35% 18% 3% 44% $10.1  million  -­‐  $50  million 0% 43% 24% 33% $51  million  -­‐  $100  million 0% 50% 25% 25% $101million  + 41% 26% 7% 26% 0% 25% 50% 75% 100% %  respondents  within  marketing  budget  category Mobile  marke7ng  investment  has  grown  more  in  the  higher  budget  categories.  For  example  of  those  in  the  top   category,  41%  increased  their  budget  alloca7on  to  mobile  marke7ng  in  the  last  3  months.  There  is  a  clear  correla7on   between  marke7ng  budget  and  mobile  investment  at  the  moment.  
  • 56.
    More The same Less None Other  social  marke.ng:  Facebook,  Flickr,  Twiper,  Youtube,  etc Less  than  $25k 45% 18% 4% 34% $26k  -­‐  $50k 40% 38% 5% 17% $50k  -­‐  $100k 48% 29% 5% 19% $201k  -­‐  $300k 58% 24% 2% 16% $301k  -­‐  $400k Marketing  Budget 0% 39% 28% 33% $401k  -­‐  $500k 0% 65% 25% 10% $501k  -­‐  $750k 0% 78% 11% 11% $751k  -­‐  $1  million 47% 34% 3% 16% $1.1  million  -­‐  $2  million 0% 62% 24% 14% $2.1  million  -­‐  $5  million 60% 27% 3% 11% $5.1  million  -­‐  $10  million 56% 27% 3% 15% $10.1  million  -­‐  $50  million 0% 52% 38% 10% $51  million  -­‐  $100  million 0% 67% 17% 17% $101million  + 0% 63% 22% 15% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Social  media  marke7ng  displays  less  prominent  pamerns  across  different  budgets  ranges.  The  majority  of  companies  in   most  ranges  have  increased  their  investment  in  the  last  3  months.  Investment  in  this  medium  is  a  lot  more  common   than  many  of  the  other  marke7ng  ac7vi7es  which  is  quite  a  significant  shih  for  the  travel  industry  over  the  last  fee   years  as  companies  consider  it  a  more  serious  marke7ng  tac7c.     Social  media  adver.sements Less  than  $25k 34% 14% 4% 48% $26k  -­‐  $50k 30% 30% 5% 35% $50k  -­‐  $100k 24% 31% 5% 41% $201k  -­‐  $300k 44% 26% 2% 28% $301k  -­‐  $400k Marketing  Budget 22% 33% 11% 33% $401k  -­‐  $500k 0% 65% 20% 15% $501k  -­‐  $750k 39% 28% 6% 28% $751k  -­‐  $1  million 34% 34% 6% 25% $1.1  million  -­‐  $2  million 32% 46% 3% 19% $2.1  million  -­‐  $5  million 38% 38% 3% 22% $5.1  million  -­‐  $10  million 41% 41% 6% 12% $10.1  million  -­‐  $50  million 41% 48% 2% 10% $51  million  -­‐  $100  million 0% 42% 33% 25% $101million  + 0% 56% 30% 15% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Investment  in  social  media  adver7sements  show  less  growth  than  other  forms  of  social  marke7ng  but  growth   nonetheless.  Over  half  of  the  top  marke7ng  budget  group  have  allocated  more  budget  towards  this  (56%)  and  65%   amongst  the  $401-­‐$500k  range.  A  correla7on  with  marke7ng  budget  can  be  iden7fied  in  terms  of  ay  investment  with   the  lower  end  budgets  less  par7cipa7ve.  But  about  half  of  the  companies  with  budgets  below  $25k  have  invested  in   social  media  adver7sements  in  the  last  3  months.    
  • 57.
    More The same Less None Email  Marke.ng   Less  than  $25k 35% 31% 12% 23% $26k  -­‐  $50k 43% 33% 13% 10% $50k  -­‐  $100k 54% 29% 3% 14% $201k  -­‐  $300k 36% 50% 8% 6% $301k  -­‐  $400k Marketing  Budget 0% 28% 56% 17% $401k  -­‐  $500k 50% 30% 10% 10% $501k  -­‐  $750k 0% 50% 39% 11% $751k  -­‐  $1  million 53% 41% 3% 3% $1.1  million  -­‐  $2  million 35% 49% 8% 8% $2.1  million  -­‐  $5  million 0% 51% 35% 14% $5.1  million  -­‐  $10  million 50% 38% 6% 6% $10.1  million  -­‐  $50  million 38% 57% 2%2% $51  million  -­‐  $100  million 0% 58% 33% 8% $101million  + 33% 56% 7% 4% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Email  marke7ng  investments  are  rela7vely  equal  across  all  marke7ng  budget  categories  amongst  those  that   par7cipate.  A  higher  propor7on  of  those  within  the  lower  budget  ranges  are  not  inves7ng,  for  example  23%  of  the   companies  with  less  than  $25k  marke7ng  budgets,  but  it  is  generally  clear  that  email  remains  a  significant  marke7ng   ac7vity  for  Travel.     Display  Online  Adver.sing   Less  than  $25k 14% 17% 11% 58% $26k  -­‐  $50k 15% 35% 15% 35% $50k  -­‐  $100k 25% 29% 14% 32% $201k  -­‐  $300k 26% 32% 12% 30% Marketing  Budget $301k  -­‐  $400k 11% 33% 17% 39% $401k  -­‐  $500k 35% 40% 10% 15% $501k  -­‐  $750k 33% 22% 33% 11% $751k  -­‐  $1  million 9% 44% 12% 34% $1.1  million  -­‐  $2  million 19% 54% 11% 16% $2.1  million  -­‐  $5  million 41% 24% 16% 19% $5.1  million  -­‐  $10  million 50% 32% 6% 12% $10.1  million  -­‐  $50  million 48% 33% 14% 5% $51  million  -­‐  $100  million 0% 58% 33% 8% $101million  + 41% 41% 15% 4% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Display  online  adver7sing  has  shown  more  growth  amongst  the  larger  budgets,  it  is  s7ll  an  important  ac7vity  for  these   companies.  The  correla7on  with  any  investment  and  budget  is  quite  clear  here.  However  there  has  been  a  quite   significant  propor7on  of  companies  reducing  their  budgets  towards  this  in  each  range,  especially  the  $501-­‐$750k   range  where  a  third  have  allocated  less  budget  towards  this  in  the  last  quarter.      
  • 58.
    More The same Less None Travel  Meta-­‐Search   Less  than  $25k 17% 30% 4% 50% $26k  -­‐  $50k 7% 47% 10% 37% $50k  -­‐  $100k 20% 39% 15% 25% $201k  -­‐  $300k 24% 40% 12% 24% $301k  -­‐  $400k Marketing  Budget 11% 39% 6% 44% $401k  -­‐  $500k 0% 15% 40% 45% $501k  -­‐  $750k 22% 39% 11% 28% $751k  -­‐  $1  million 19% 37% 12% 31% $1.1  million  -­‐  $2  million 24% 49% 3% 24% $2.1  million  -­‐  $5  million 19% 38% 16% 27% $5.1  million  -­‐  $10  million 21% 44% 9% 27% $10.1  million  -­‐  $50  million 21% 52% 12% 14% $51  million  -­‐  $100  million 25% 33% 8% 33% $101million  + 22% 48% 15% 15% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Meta-­‐search  budgets  have  remained  important,  again  generally  the  higher  the  budget  the  more  investment.  More   companies  have  invested  the  same  towards  this  than  increased.         Local  Search  Lis.ngs   Less  than  $25k 17% 36% 4% 44% $26k  -­‐  $50k 13% 43% 18% 25% $50k  -­‐  $100k 29% 47% 8% 15% $201k  -­‐  $300k 18% 38% 10% 34% $301k  -­‐  $400k Marketing  Budget 17% 50% 11% 22% $401k  -­‐  $500k 0% 20% 60% 20% $501k  -­‐  $750k 44% 39% 6% 11% $751k  -­‐  $1  million 12% 47% 6% 34% $1.1  million  -­‐  $2  million 30% 43% 11% 16% $2.1  million  -­‐  $5  million 16% 43% 14% 27% $5.1  million  -­‐  $10  million 29% 35% 15% 21% $10.1  million  -­‐  $50  million 17% 57% 10% 17% $51  million  -­‐  $100  million 17% 42% 17% 25% $101million  + 11% 63% 11% 15% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Local  lis7ngs  do  not  reveal  any  trends  amongst  respondents.  Investment  is  rela7vely  mixed  across  all  budget  ranges.  
  • 59.
    Strategic  Links  and  Online  Sponsorship   More The same Less None Less  than  $25k 21% 30% 9% 41% $26k  -­‐  $50k 22% 45% 8% 25% $50k  -­‐  $100k 46% 29% 12% 14% $201k  -­‐  $300k 40% 30% 10% 20% Marketing  Budget $301k  -­‐  $400k 28% 39% 6% 28% $401k  -­‐  $500k 0% 45% 45% 10% $501k  -­‐  $750k 50% 33% 6% 11% $751k  -­‐  $1  million 28% 53% 6% 13% $1.1  million  -­‐  $2  million 30% 49% 5% 16% $2.1  million  -­‐  $5  million 38% 43% 11% 8% $5.1  million  -­‐  $10  million 47% 26% 15% 12% $10.1  million  -­‐  $50  million 33% 55% 10% 2% $51  million  -­‐  $100  million 0% 42% 42% 17% $101million  + 22% 59% 7% 11% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Again,  no  key  pamerns  are  iden7fied  around  the  investment  in  strategic  links  and  online  sponsorship.  There  has  been   growth  across  all  ranges  and  for  the  lower  budget  range  it  is  not  a  priority  marke7ng  area.   Paid  Search  Optmisa.on  (PPC) Less  than  $25k 20% 23% 6% 52% $26k  -­‐  $50k 22% 42% 15% 22% $50k  -­‐  $100k 36% 27% 14% 24% $201k  -­‐  $300k 42% 26% 14% 18% $301k  -­‐  $400k Marketing  Budget 33% 22% 11% 33% $401k  -­‐  $500k 35% 25% 15% 25% $501k  -­‐  $750k 83% 6% 6% 6% $751k  -­‐  $1  million 34% 31% 19% 16% $1.1  million  -­‐  $2  million 57% 30% 11% 3% $2.1  million  -­‐  $5  million 51% 32% 8% 8% $5.1  million  -­‐  $10  million 47% 32% 6% 15% $10.1  million  -­‐  $50  million 0% 50% 38% 12% $51  million  -­‐  $100  million 0% 67% 33% $101million  + 41% 41% 15% 4% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category PPC  has  grown  more  for  the  bigger  players.  There  has  been  some  significant  growth  in  investment  for  this  ac7vity  and   it  has  certainly  been  an  important  area  in  the  last  quarter.  It  is  unusual  for  companies  with  larger  budgets  not  to   allocate  anything  towards  this.  More  companies  have  increased  their  budgets  towards  PPC  than  have  stayed  the  same.   There  has  been  some  reduc7on  by  around  15%  of  companies  in  most  ranges.          
  • 60.
    Marke(ng  Investment  By  Company  Sector   Website  design  /  Re-­‐Design More The same Less None Hotel 54% 32% 6% 9% Other  accommodation 0% 68% 13% 19% Airline 44% 47% 6% 3% Car  Rental 0% 46% 38% 15% Cruise 0% 43% 43% 14% DMC  /  tourism  board 59% 23% 9% 9% Tour  operator 56% 25% 12% 7% Online  Travel  Agent  (OTA) 60% 30% 5% 5% Meta-­‐search 0% 60% 20% 20% Other  online  intermediary 54% 34% 5% 8% "Offline"  intermediary  /  Retail 54% 29% 8% 8% 0% 25% 50% 75% 100% %  of  respondents Again,  there  are  not  signifiant  differences  between  sectors  in  terms  of  investment  in  websites.  Most  have  either   increased  their  investments  or  remained  the  same,  but  more  have  increased  budgets  than  not.  Other  Accommoda7on   shows  the  highest  increase  at  68%  of  respondents.  The  biggest  reduc7on  is  for  meta-­‐search  sites.  
  • 61.
    Paid  Search  Op.misa.on  (PPC) More The same Less None Hotel 46% 29% 9% 17% Other  accommodation 42% 10% 13% 36% Airline 29% 50% 12% 9% Car  Rental 0% 54% 15% 31% Cruise 29% 29% 14% 29% DMC  /  tourism  board 23% 41% 23% 14% Tour  operator 32% 36% 11% 21% Online  Travel  Agent  (OTA) 46% 27% 8% 19% Meta-­‐search 0% 40% 40% 20% Other  online  intermediary 35% 22% 19% 25% "Offline"  intermediary  /  Retail 8% 38% 17% 38% 0% 25% 50% 75% 100% %  of  respondents The  Car  Rental  sector  has  increased  their  budgets  towards  PPC  the  most  (54%).  46%  of  Hotel  companies  have  allocated   more  budget  and  42%  of  Other  Accommoda7on.  Online  intermediaries  are  also  at  similar  levels.  There  are  no  huge   differences  between  sectors  in  terms  of  PPC  investments  for  the  last  3  months.  
  • 62.
    Strategic  Links  and  Online  Sponsorship More The same Less None Hotel 38% 41% 6% 15% Other  accommodation 13% 39% 10% 39% Airline 29% 56% 9% 6% Car  Rental 31% 54% 8% 8% Cruise 14% 29% 14% 43% DMC  /  tourism  board 32% 32% 9% 27% Tour  operator 33% 29% 16% 21% Online  Travel  Agent  (OTA) 32% 44% 9% 15% Meta-­‐search 0% 80% 20% Other  online  intermediary 38% 31% 5% 26% "Offline"  intermediary  /  Retail 13% 46% 13% 29% 0% 25% 50% 75% 100% %  of  respondents Meta-­‐search  companies  are  placing  their  amen7on  towards  this  ac7vity  the  most.  80%  of  respondents  from  this  sector   allocated  more  budget  towards  strategic  links  and  online  sponsorship  over  the  last  quarter.  It  is  also  revealed  that  all   companies  in  the  sector  allocated  some  budget  towards  this.   Cruise  did  not  invest  in  this  marke7ng  ac7vity  so  heavily.  43%  did  not  allocate  any  budget  at  all  in  the  last  quarter.  14%   reduced  their  budget.   Airline  and  Car  Rental  have  not  shihed  their  investments  for  this  during  the  last  quarter  with  the  majority  alloca7ng   the  same.  Around  30%  of  each  sector  have  increased  budget  though.   Hotel  companies  are  more  ac7ve  than  Other  Accommoda7on  in  general  and  have  shown  more  growth.  The  OTAs   indicate  a  similar  pamern  to  Hotel.    
  • 63.
    Local  Search  Lis.ngs   More The same Less None Hotel 32% 48% 7% 13% Other  accommodation 13% 48% 3% 36% Airline 15% 59% 12% 15% Car  Rental 15% 54% 8% 23% Cruise 14% 29% 14% 43% DMC  /  tourism  board 18% 41% 9% 32% Tour  operator 20% 35% 13% 32% Online  Travel  Agent  (OTA) 8% 47% 12% 33% Meta-­‐search 0% 20% 80% Other  online  intermediary 20% 29% 11% 40% "Offline"  intermediary  /  Retail 4% 58% 13% 25% 0% 25% 50% 75% 100% %  of  respondents Local  search  lis7ngs  have  been  less  important  for  much  of  the  industry.  Meta-­‐search  quite  understandably    have  not   been  geong  involved  and  the  20%  that  were  alloca7ng  budget  have  stopped  in  the  last  3  months.  More  Hotels   companies  have  allocated  more  budget  to  this  (32%)  and  while  this  ac7vity  remains  important  for  most  sectors  there  is   quite  a  large  propor7on  across  all  sectors  that  do  not  invest  in  this.  Surprisingly  36%  of  Other  Accommoda7on  are  not   inves7ng  at  all.      
  • 64.
    Travel  Meta-­‐Search More The same Less None Hotel 25% 46% 8% 22% Other  accommodation 16% 36% 7% 42% Airline 18% 59% 12% 12% Car  Rental 8% 46% 8% 38% Cruise 0% 14% 14% 71% DMC  /  tourism  board 0% 32% 36% 32% Tour  operator 11% 40% 16% 33% Online  Travel  Agent  (OTA) 17% 32% 12% 40% Meta-­‐search 0% 20% 80% Other  online  intermediary 18% 32% 6% 43% "Offline"  intermediary  /  Retail 13% 46% 8% 33% 0% 25% 50% 75% 100% %  of  respondents Travel  meta-­‐search  investments  were  increased  most  by  the  Hotel  and  DMC/tourism  board  sectors.  However  the   majority  of  sectors  have  kept  their  budgets  the  same.  Cruise  and  tour  operators  have  reduced  their  investments  the   most,  by  14%  of  `Cruise  and  16%  of  tour  operators.  While  18%  of  Airline  companies  have  increased  their  budgets  on   meta-­‐search  in  the  last  quarter,  59%  have  allocated  the  same.        
  • 65.
    Display  Online  Adver.sing  e.g.  Banners   More The same Less None Hotel 32% 35% 14% 19% Other  accommodation 26% 19% 13% 42% Airline 41% 32% 18% 9% Car  Rental 0% 54% 31% 15% Cruise 0% 43% 43% 14% DMC  /  tourism  board 23% 23% 23% 32% Tour  operator 20% 32% 16% 32% Online  Travel  Agent  (OTA) 22% 33% 12% 33% Meta-­‐search 0% 20% 40% 40% Other  online  intermediary 19% 23% 9% 49% "Offline"  intermediary  /  Retail 17% 29% 12% 42% 0% 25% 50% 75% 100% %  of  respondents The  suppliers  have  increased  their  display  online  adver7sing  budgets  the  most.  Car  rental  show  a  par7cularly  high   propor7on  at  54%.  Airlines  follow  at  41%.  The  biggest  reduc7on  is  in  the  DMC/tourism  board  sector  and  the   intermediaries  are  par7cipa7ng  he  least.  Other  Accommoda7on  companies  are  also  not  huge  investors  in  this  ac7vity.      
  • 66.
    Email  Marke.ng   More The same Less None Hotel 39% 46% 7% 8% Other  accommodation 42% 29% 10% 19% Airline 38% 47% 3% 12% Car  Rental 0% 31% 54% 15% Cruise 0% 71% 14% 14% DMC/  tourism  board 36% 46% 5% 14% Tour  operator 51% 36% 9% 4% Online  Travel  Agent  (OTA) 42% 40% 10% 8% Meta-­‐search 20% 20% 40% 20% Other  online  intermediary 48% 26% 6% 20% "Offline"  intermediary  /  Retail 0% 50% 42% 8% 0% 25% 50% 75% 100% %  of  respondents Cruise  companies  have  registered  the  biggest  increase  in  budget  for  email  marke7ng  for  the  last  quarter  (71%).   Pamerns  are  quite  similar  across  al  other  sectors,  except  meta-­‐search  companies  in  which  40%  have  allocated  less   budget  over  the  last  3  months.  
  • 67.
    Social  Media  Adver.sements   More The same Less None Hotel 38% 33% 3% 27% Other  accommodation 36% 23% 3% 39% Airline 41% 38% 3% 18% Car  Rental 0% 38% 31% 31% Cruise 43% 14% 14% 29% DMC  /  tourism  board 0% 36% 18% 45% Tour  operator 36% 27% 11% 27% Online  Travel  Agent  (OTA) 28% 40% 4% 28% Meta-­‐search 0% 40% 40% 20% Other  online  intermediary 0% 43% 25% 32% "Offline"  intermediary  /  Retail 25% 29% 4% 42% 0% 25% 50% 75% 100% %  of  respondents Results  across  sectors  for  the  investment  in  social  media  adver7sements  is  similar.  The  majority  of  those  who  invest  at   al  have  increased  their  budgets  towards  this.  OTAs  represent  a  slightly  smaller  propor7on  that  have  increased  budgets   (28%)  but  overall  par7cipa7on  is  the  same  as  other  sectors.  
  • 68.
    Other  social  marke.ng:  Facebook,  Flickr,  Twiper,  Youtube,  etc More The same Less None Hotel 58% 25% 2% 15% Other  accommodation 0% 39% 32% 29% Airline 62% 24% 3% 12% Car  Rental 0% 46% 31% 23% Cruise 0% 57% 14% 29% DMC  /  tourism  board 0% 55% 27% 18% Tour  operator 47% 27% 7% 20% Online  Travel  Agent  (OTA) 41% 36% 3% 21% Meta-­‐search 0% 40% 40% 20% Other  online  intermediary 66% 15% 3% 15% "Offline"  intermediary  /  Retail 0% 21% 42% 38% 0% 25% 50% 75% 100% %  of  respondents In  terms  of  ‘other  social  marke7ng’,  Airline  companies  and  other  intermediaries  indicate  the  highest  propor7on  with   budget  increases.  The  non  par7cipa7on  rates  is  rela7vely  similar  across  all  sectors  but  the  Hotel  and  Airline  sectors   more  ac7ve  than  Other  Accommoda7on,  Car  Rental  and  Cruise  for  example.  DMCs/tourism  boards  are  more  ac7ve  in   this  category  than  some  of  the  other  marke7ng  ac7vi7es  and  55%  have  increased  their  investment  in  the  last  quarter.   There  has  been  limle  reduc7on  in  budgets  for  this    across  all  sectors.  
  • 69.
    Mobile  marke.ng:  via  mobile  website,  SMS  or  applica.on   More The same Less None Hotel 30% 20% 5% 45% Other  accommodation 6% 16% 6% 71% Airline 38% 29% 3% 29% Car  Rental 0% 38% 23% 38% Cruise 0% 29% 29% 43% DMC  /  tourism  board 23% 9% 14% 55% Tour  operator 17% 19% 9% 55% Online  Travel  Agent  (OTA) 20% 24% 3% 53% Meta-­‐search 0% 40% 60% Other  online  intermediary 29% 19% 2% 51% "Offline"  intermediary  /  Retail 0%4% 33% 63% 0% 25% 50% 75% 100% %  of  respondents Mobile  marke7ng  displays  more  varia7on  between  sectors.  The  biggest  propor7ons  increasing  their  budgets  are  in  the   Meta-­‐Search  (40%),  Car  Rental  (38%)  and  Airline  sectors  (38%).  Other  Accommoda7on  companies  are  not  inves7ng    in   mobile  very  much  with  71%  inves7ng  nothing.  Airline  and  Car  Rental  companies  are  the  most  ac7ve  at  the  moment.  
  • 70.
    TV  Adver.sing   More The same Less None Hotel 9% 17% 13% 62% Other  accommodation 6% 10% 6% 77% Airline 12% 50% 12% 26% Car  Rental 0% 23% 77% Cruise 0% 14% 29% 57% DMC  /  tourism  board 9% 27% 5% 59% Tour  operator 12% 12% 9% 67% Online  Travel  Agent  (OTA) 10% 12% 3% 76% Meta-­‐search 0% 100% Other  online  intermediary 6% 6% 1% 86% "Offline"  intermediary  /  Retail 0% 8% 8% 83% 0% 25% 50% 75% 100% %  of  respondents TV  adver7sing  is  not  common  in  marke7ng  budgets  for  travel  companies.  This  plays  a  far  larger  part  in  the  Airline   budgets  than  any  other  sector.  There  has  not  been  much  change  for  the  sector  in  the  last  quarter  with  50%  alloca7ng   the  same  budget  and  just  12%  increasing  it.    
  • 71.
    Outdoor  Adver.sing   More The same Less None Hotel 17% 24% 16% 43% Other  accommodation 7% 16% 3% 74% Airline 24% 50% 12% 15% Car  Rental 0% 23% 8% 69% Cruise 0% 43% 57% DMC  /  tourism  board 0% 14% 41% 46% Tour  operator 13% 20% 7% 60% Online  Travel  Agent  (OTA) 10% 13% 10% 67% Meta-­‐search 0% 100% Other  online  intermediary 5% 8% 3% 85% "Offline"  intermediary  /  Retail 8% 13% 4% 75% 0% 25% 50% 75% 100% %  of  respondents Outdoor  adver7sing  again  is  not  for  all  travel  companies.  Intermediaries  are  inves7ng  in  this  the  least.  The  major   growth  is  revealed  in  the  Airline  sector,  24%  have  increased  their  budget  alloca7on  towards  this  in  the  last  quarter.  For   Hotel  companies  around  the  same  number  have  reduced  budget  and  they  have  increased  and  almost  half  did  not   allocate  any  budget  to  this  at  all.  
  • 72.
    Experien.al  Marke.ng   More The same Less None Tour  operator 16% 31% 9% 44% Other  online  intermediary 11% 12% 5% 72% Other  accommodation 10% 19% 3% 68% Online  Travel  Agent  (OTA) 9% 23% 8% 60% Meta-­‐search 0% 100% Hotel 16% 30% 6% 48% DMC/  tourism  board 27% 27% 5% 41% Cruise 0% 14% 29% 57% Car  Rental 0% 8% 31% 62% Airline 18% 44% 6% 32% "Offline"  intermediary  /  Retail 4% 17% 8% 71% 0% 25% 50% 75% 100% %  of  respondents Experien7al  marke7ng  varies  across  sectors  in  terms  of  par7cipa7on.    DMCs/tourism  boards  are  placing  the  most   emphasis  on  this  ac7vity,  27%  have  increased  the  budgets  in  the  last  quarter.  There  is  some  ac7vity  across  all  sectors   and  of  those  that  par7cipate,  pamerns  are  similar.  It  does  not  currently  appear  to  be  a  common  marke7ng  ac7vity  in   the  industry  though.  
  • 73.
    Consumer  Events  and  Sponsorship   More The same Less None Tour  operator 20% 36% 15% 29% Other  online  intermediary 15% 15% 5% 65% Other  accommodation 19% 26% 10% 45% Online  Travel  Agent  (OTA) 15% 27% 5% 53% Meta-­‐search 0% 100% Hotel 25% 39% 9% 26% DMC  /  tourism  board 0% 41% 41% 18% Cruise 0% 14% 29% 57% Car  Rental 15% 31% 15% 38% Airline 24% 47% 15% 15% "Offline"  intermediary  /  Retail 8% 42% 8% 42% 0% 25% 50% 75% 100% %  of  respondents Consumer  events  and  event  sponsorship  is  also  less  common  amongst  intermediaries.  Meta-­‐search  did  not  par7cipate   at  all.  Again  DMCs/tourism  boards  appear  to  be  using  this  marke7ng  ac7vity  the  most.  A  quarter  of  Hotel  companies   also  increased  their  budgets  for  this  and  around  15%-­‐20%  for  other  sectors.  The  largest  reduc7on  was  in  the  Tour   Operator,  Car  Rental  and  Airlines  sectors.      
  • 74.
    Print  Adver.sing   More The same Less None Hotel 16% 38% 30% 17% Other  accommodation 10% 42% 19% 29% Airline 21% 44% 24% 12% Car  Rental 0% 23% 8% 69% Cruise 14% 43% 14% 29% DMC  /  tourism  board 14% 36% 27% 23% Tour  operator 17% 41% 20% 21% Online  Travel  Agent  (OTA) 21% 21% 9% 50% Meta-­‐search 0% 100% Other  online  intermediary 14% 17% 14% 55% "Offline"  intermediary  /  Retail 25% 38% 8% 29% 0% 25% 50% 75% 100% %  of  respondents There  are  varying  results  for  print  adver7sing.  Meta-­‐Search,  OTAs  and  Car  Rental  invest  the  least.  The  largest   reduc7ons  are  within  the  Hotel,  Airline,  DMC/tourism  board  sectors  but  each  sector  has  registered  a  reduc7on  in   budget  towards  this  to  some  degree.  The  largest  increase  in  print  adver7sing  was  from  the  offline  intermediary  (retail)   sector  (25%)  and  OTAs  (21%)  and  Airline  companies  (21%)  have  also  raised  their  budgets  for  this.  It  is  clear  that  more   companies  reduced  budgets  rather  than  increased  but  it  is  definitely  not  dying  out  completely  as  a  form  of  marke7ng.      
  • 75.
    Direct  Mail  (Postal)   More The same Less None Hotel 11% 25% 25% 39% Other  accommodation 13% 19% 10% 58% Airline 15% 32% 15% 38% Car  Rental 0% 8% 15% 77% Cruise 14% 57% 14% 14% DMC  /  tourism  board 23% 18% 9% 50% Tour  operator 19% 28% 13% 40% Online  Travel  Agent  (OTA) 10% 15% 3% 72% Meta-­‐search 0% 100% Other  online  intermediary 8% 9% 9% 74% "Offline"  intermediary  /  Retail 29% 21% 8% 42% 0% 25% 50% 75% 100% %  of  respondents Direct  mail  is  also  an  ac7vity  in  fewer  companies’  marke7ng  budgets.  Again,  online  intermediaries  and  Car  Rental  had   smaller  propor7ons  inves7ng  in  this.  DMCs/tourism  boards  and  offline  intermediaries  indicated  a  larger  propor7on   increasing  their  budgets  for  direct  mail  but  not  significantly  higher.  Cruise  are  large  investors  in  this  and  57%  have  not   changed  their  alloca7on  of  budget  for  direct  mail,  but  the  14%  increase  is  offset  by  the  14%  of  those  that  have  reduced   theirs.        
  • 76.
    Marke.ng  Budgets   Next  Quarter Marke(ng  Investments  For  Next  Quarter  By  Company  Sector   Looking  forward  to  the  next  quarter,  we  expect  to  see  changes  and  improvements  to  many  travel  websites.  Al  Meta-­‐ Search  respondents  are  planning  on  increasing  their  budgets  for  their  websites  in  comparison  to  the  previous  quarter.   Around  60%  of  Hotel  and  Other  Accommoda7on  companies  plan  an  increase,  41%  of  Airline  and  46%  of  Car  Rental.   The  majority  of  other  respondents  are  keeping  the  same  amounts.     Meta-­‐Search  and  Hotel  companies  may  be  seen  more  in  the  paid  search  lis7ngs  in  the  next  quarter.  60%  of  Meta-­‐ Search  and  53%  of  Hotels  plan  an  increase  in  budget  towards  this.  Only  a  small  propor7on  of  travel  suppliers,  except   perhaps  Cruise,  will  not  be  alloca7ng  any  budget  to  PPC.     Increasing Staying the same Reducing There will be no budget for this Don't know Website  Design  /  Re-­‐design   Hotel 0% 59% 39% 2% 1% Other  accommodation 0% 61% 23% 10% 6% Airline 0% 41% 53% 3% 3% Car  Rental 0% 46% 46% 8% Cruise 0% 0% 29% 71% DMC  /  tourism  board 0% 41% 50% 5% 5% Tour  operator 0% 59% 32% 7% 3% Online  Travel  Agent  (OTA) 59% 31% 1%3% 6% Meta-­‐search 0% 0% 100% Other  online  intermediary 60% 32% 3% 2%3% "Offline"  intermediary  /  Retail 0% 46% 42% 4% 8% 0% 25% 50% 75% 100% %  of  respondents Paid  Search  Engine  Lis.ngs     Hotel 53% 33% 4% 5% 4% Other  accommodation 35% 39% 13% 6% 6% Airline 32% 50% 9% 6% 3% Car  Rental 0% 46% 38% 8% 8% Cruise 0% 0% 29% 57% 14% DMC  /  tourism  board 32% 32% 18% 5% 14% Tour  operator 40% 39% 7% 12% 3% Online  Travel  Agent  (OTA) 49% 31% 3% 13% 5% Meta-­‐search 0% 0% 60% 40% Other  online  intermediary 34% 37% 9% 19% 2% "Offline"  intermediary  /  Retail 13% 50% 21% 8% 8% 0% 25% 50% 75% 100% %  of  respondents
  • 77.
    Online  Display  Adver.sing   Both  suppliers  and  online  intermediaries  are  planning  increases  in  display  adver7sing  budgets.  26%  of  Other   Accommoda7on  however  are  not  looking  at  this  ac7vity.  Across  all  sectors  a  rela7vely  similar  propor7on  of  those   increasing  budgets  will  be  keeping  them  the  same  but  nonetheless  inves7ng.  The  biggest  reduc7on  is  expected  from   DMCs/tourism  boards  (23%).   Increasing Staying the same Reducing There will be no budget for this Don't know Hotel 39% 41% 7% 7% 5% Other  accommodation 23% 35% 10% 26% 6% Airline 41% 38% 9% 6% 6% Car  Rental 0% 46% 38% 8% 8% Cruise 0% 0% 43% 43% 14% DMC  /  tourism  board 14% 36% 23% 14% 14% Tour  operator 20% 47% 8% 19% 7% Online  Travel  Agent  (OTA) 40% 31% 8% 12% 10% Meta-­‐search 0% 40% 20% 20% 20% Other  online  intermediary 26% 37% 11% 23% 3% "Offline"  intermediary  /  Retail 21% 38% 21% 17% 4% 0% 25% 50% 75% 100% %  of  respondents Email  Marke.ng   Email  marke7ng  is  expected  to  remain  important  for  the  travel  industry  over  the  next  quarter.  Meta-­‐Search  companies   are  intending  to  be  less  ac7ve  than  other  sectors  with  60%  inves7ng  to  some  extent.  Tour  Operators,  OTAs  and  the   ‘other  online  intermediary’  category  show  the  majority  of  companies  are  expec7ng  to  invest  in  email  marke7ng  with   very  few  not  alloca7ng  budget.  Car  Rental  are  expec7ng  to  con7nue  investment  but  remain  at  consistent  levels  for  the   next  quarter  (62%)  and  a  lower  15%  increasing  budget  towards  this.  Hotel  companies  are  puong  more  weight  towards   this  marke7ng  ac7vity  as  are  Cruise.     Hotel 41% 47% 6% 2% 3% Other  accommodation 32% 45% 3% 13% 6% Airline 35% 44% 6% 6% 9% Car  Rental 0% 15% 62% 8% 15% Cruise 0% 0% 57% 29% 14% DMC  /  tourism  board 32% 50% 5% 5% 9% Tour  operator 55% 39% 3% 3%1% Online  Travel  Agent  (OTA) 41% 50% 4% 1% 4% Meta-­‐search 0% 20% 40% 20% 20% Other  online  intermediary 46% 41% 3% 6% 3% "Offline"  intermediary  /  Retail 0% 42% 46% 8% 4% 0% 25% 50% 75% 100% %  of  respondents
  • 78.
    Social  Media   The  majority  of  companies  across  all  sectors  are  planning  to  increase  their  investment  in  social  media  over  the  coming   quarter.  Car  rental  is  a  slight  excep7on  with  a  lower  propor7on  planning  to  increase  but  rather  keep  the  budget   alloca7on  the  same  as  the  previous.  Hotel  and  Airline  companies  are  looking  to  push  their  ac7vity  up  a  notch  with  65%   of  the  sectors  increasing  their  budgets  within  the  social  media  space.  Cruise  results  suggest  that  perhaps  social  media   isn’t  necessarily  working  so  well  because  29%  intend    to  reduce  budgets  towards  this  in  the  next  quarter.  Other   suppliers  (except  a  few  of  the  Other  Accommoda7on  sector)  clearly  rate  social  media  as  a  valuable  marke7ng  ac7vity. Increasing Staying the same Reducing There will be no budget for this Don't know Hotel 65% 28% 1%3% 3% Other  accommodation 48% 23% 3% 16% 10% Airline 0% 65% 27% 9% Car  Rental 0% 31% 54% 8% 8% Cruise 0% 0% 57% 14% 29% DMC  /  tourism  board 0% 59% 32% 9% Tour  operator 65% 20% 3% 7% 5% Online  Travel  Agent  (OTA) 55% 32% 4% 3% 6% Meta-­‐search 0% 0% 40% 60% Other  online  intermediary 0% 63% 34% 2% 2% "Offline"  intermediary  /  Retail 0% 62% 29% 4% 4% 0% 25% 50% 75% 100% %  of  respondents Mobile   Mobile  varies  more  across  sectors  again.  Meta-­‐Search  are  taking  mobile  very  seriously  and  80%  plan  an  increase  in   budget.  Both  suppliers  and  intermediaries  are  also  evidently  looking  towards  this  channel  though.  48%  of  Hotel   companies  will  increase  their  budget  for  mobile  and  a  large  62%  of  Airline  companies  too.  For  Car  Rental  which  we   have  established  are  already  the  most  ac7ve  in  mobile,  46%  plan  a  further  increase  with  just  15%  alloca7ng  no  budget   at  all.  Other  Accommoda7on  expect  to  be  less  ac7ve,  45%  plan  to  invest  to  some  degree  though.     Hotel 48% 24% 3% 13% 12% Other  accommodation 0% 16% 29% 39% 16% Airline 0% 62% 21% 12% 6% Car  Rental 0% 0% 46% 38% 15% Cruise 0% 57% 14% 14% 14% DMC  /  tourism  board 32% 36% 9% 14% 9% Tour  operator 40% 24% 7% 25% 4% Online  Travel  Agent  (OTA) 53% 19% 4% 12% 13% Meta-­‐search 0% 0% 80% 20% Other  online  intermediary 55% 23% 2% 15% 5% "Offline"  intermediary  /  Retail 0% 37% 17% 29% 17% 0% 25% 50% 75% 100% %  of  respondents
  • 79.
    Offline  Marke.ng   Offline  marke7ng  is  not  on  the  cards  for  most  Meta-­‐Search  companies  and  60%  plan  to  market  wholly  online.  On  the   other  end  of  the  scale,  the  highest  propor7on  from  all  sectors  planning  an  increase  in  budgets  in  offline  marke7ng  is   Other  Accommoda7on  (36%).  The  largest  reduc7on  is  expected  from  the  Car  Rental  sector  (31%)  and  Hotel  (24%).   While  we  iden7fy  some  fairly  significant  increases,  such  as  Tour  Operator,  DMC/tourism  board  as  well,  and  decreases   as  men7oned  above,  the  majority  are  keeping  their  offline  marke7ng  budgets  the  same.     Increasing Staying the same Reducing There will be no budget for this Don't know Hotel 19% 42% 24% 9% 6% Other  accommodation 36% 26% 13% 16% 10% Airline 9% 56% 12% 12% 12% Car  Rental 15% 23% 31% 23% 8% Cruise 0% 14% 57% 14% 14% DMC  /  tourism  board 0% 23% 46% 18% 14% Tour  operator 31% 41% 16% 7% 5% Online  Travel  Agent  (OTA) 23% 35% 14% 19% 9% Meta-­‐search 0% 0% 40% 60% Other  online  intermediary 12% 35% 18% 26% 8% "Offline"  intermediary  /  Retail 0% 29% 54% 8% 8% 0% 25% 50% 75% 100% %  of  respondents
  • 80.
    SecOon  8:     Online  Marke.ng  Ac.vi.es  -­‐  What’s  Working
  • 81.
    Online  Marke.ng  Ac.vi.es  -­‐  What’s  Working   Search  engine  marke7ng  (29%  of  respondents)  and  email  marke7ng  (298%  of  respondents)    have  proved  the  most   successful  in  terms  of  campaign  for  the  last  quarter.  Mobile  marke7ng  has  only  proved  compara7vely  successful  for  3%   of  companies.  Social  marke7ng  is  up  there  (20%)  and  clearly  compe7ng  well  with  more  tradi7onal  online  marke7ng.   In  the  last  3  months  which  out  of  the  following  online  markeOng  formats  would  you  highlight  as  the  biggest  success   story  in  your  opinion  amongst  the  campaigns  you  did?        Note:  please  choose  one  only     Affiliate marketing Email marketing 6% 7% Mobile marketing Online advertising 20% Search engine marketing Social marketing - we did none of the above - 28% 29% 3% 8% Comparing  results  by  country  (of  the  respondent)  we  can  certainly  iden7fy  some  differences.  In  Europe  the  UK   predominantly  succeeded  the  most  with  search  engine  and  email  marke7ng.  A  small  propor7on  (3%)  considered   mobile  their  biggest  success  story  and  12%  for  social  media.  Germany  largely  favoured  their  search  engine  marke7ng   campaigns  and  placed  no  emphasis  on  mobile.  France  on  the  other  hand  indicate  a  significant  18%  of  respondents  that   considered  mobile  their  success  story.  On  the  whole  affiliate  marke7ng,  email  marke7ng  and  mobile  were  favoured   over  social  and  search  engine  campaigns.  Italy  were  very  happy  with  their  social  media  campaigns  and  did  not  feature   search  engine  marke7ng  at  all.  Spain  also  favoured  their  SEM  campaigns  as  well  as  affiliate  marke7ng.  Comparing   other  parts  of  the  world,  the  US  showed  a  very  similar  picture  to  the  UK  respondents,  but  with  slightly  more  emphasis   on  social  media.  Australia  also  rated  their  results  in  similar  propor7ons.  China  is  split  quite  evenly  between  affiliate,   email,  search  and  social  media  marke7ng.  India  experienced  more  success  with  email  campaigns  but  SEM  and  social   media  have  also  proved  successful  in  the  last  quarter.     United  Kingdom 5% 27% 3% 10% 42% 12% 2% Affiliate marketing Germany 0% 9% 9% 9% 55% 18% Email marketing Mobile marketing France 0% 27% 36% 18% 9% 9% Online advertising Country  of  respondent Italy 0% 0% 22% 11% 44% 22% Search engine marketing Social marketing Spain 0% 18% 14% 5% 36% 14% 14% - we did none of the above - United  States 5% 30% 4% 7% 25% 22% 7% Australia 0% 6% 30% 6% 42% 15% China 0% 17% 30% 26% 22% 4% India 5% 36% 2% 7% 31% 19% 2% Brazil 0% 43% 29% 29% 0% 25% 50% 75% 100% %  of  respondents
  • 82.
    When  analysing  the  results  between  different  marke7ng  budget  ranges  we  have  not  iden7fied  any  clear  trends  at  all.   Affiliate marketing Email marketing Mobile marketing Online advertising Search engine marketing Social marketing - we did none of the above - Less  than  $25k 4% 32% 3% 8% 20% 21% 13% $26k  -­‐  $50k 0% 10% 20% 7% 30% 28% 5% $50k  -­‐  $100k 5% 36% 2% 8% 29% 15% 5% $201k  -­‐  $300k 10% 24% 2% 8% 20% 32% 4% $301k  -­‐  $400k 0% 33% 11% 22% 22% 11% Marketing  Budget $401k  -­‐  $500k 0% 5% 30% 10% 25% 15% 15% $501k  -­‐  $750k 0% 22% 17% 33% 28% $751k  -­‐  $1  million 6% 22% 6% 9% 28% 22% 6% $1.1  million  -­‐  $2  million 14% 32% 3% 14% 22% 11% 5% $2.1  million  -­‐  $5  million 0% 5% 35% 8% 8% 27% 16% $5.1  million  -­‐  $10  million 0% 6% 27% 9% 41% 15% 3% $10.1  million  -­‐  $50  million 0% 5% 29% 2% 52% 12% $51  million  -­‐  $100  million 0% 8% 8% 67% 17% $101million  + 11% 22% 11% 11% 26% 15% 4% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category SecOon  9:     Social  Media  Par.cipa.on   Travel  companies  are  more  ac7ve  in  Facebook  in  comparison  to  the  other  social  media  sites  listed.  82%  of  respondents   have  profiles  as  a  company,  not  personally.  This  is  very  significant  but  the  level  of  ac7vity  within  that  profile  does   obviously  vary  amongst  companies.  Twimer  has  also  amracted  64%  of  travel  companies  to  par7cipate.  Less  are  ac7ve  in   YouTube  and  Flickr.  LinkedIn  has  also  proved  a  useful  tool  for  travel  companies.       Do  you  as  a  company  (NOT  personally)  have  profiles  created  in  the  following  social  media  sites? %  of  respondents  who  have  a  profile  within  this  social  media  channel 90% 82% 68% 64% 45% 38% 40% 23% 20% 0% n ok be r r e ck di itt bo tu Fli ke Tw u ce Lin Yo Fa
  • 83.
    There  is  not  a  huge  varia7on  between  company  sectors  in  terms  of  Facebook  profiles.  Car  Rental,  Other   Accommoda7on  and  offline  intermediaries  are  the  least  represented.  Twimer  profiles  are  more  common  amongst   Airline,  Cruise  and  Meta-­‐Search  and  the  least  represented  are  DMCs/tourism  boards,  Other  Accommoda7on  and  Tour   Operators.  YouTube  is  more  common  for  the  suppliers  which  makes  sense  based  on  the  nature  of  their  products.   Cruise  and  Car  Rental  are  the  leaders.  Linkedin  is  rela7vely  varied  with  Meta-­‐Search  leading  the  way  in  terms  of   presence  and  Cruise  not  par7cipa7ng  very  much.  Flickr  is  again  dominated  by  travel  suppliers  but  OTAs  are  playing  a   part.  Other  Accommoda7on  and  Car  Rental  are  the  most  dominant  sectors,  closely  followed  by  Hotel  and  Airline   sectors. Propor.on  with  a  Facebook  Profile   Hotel 87% Other  accommodation 68% Airline 85% Car  Rental 69% Cruise 86% DMC  /  tourism  board 82% Tour  operator 84% Online  Travel  Agent  (OTA) 81% Meta-­‐search 80% Other  online  intermediary 88% "Offline"  intermediary  /  Retail 58% 0% 23% 45% 68% 90% Propor.on  with  a  Twiper  Profile   Hotel 63% Other  accommodation 55% Airline 79% Car  Rental 62% Cruise 71% DMC  /  tourism  board 59% Tour  operator 56% Online  Travel  Agent  (OTA) 67% Meta-­‐search 80% Other  online  intermediary 77% "Offline"  intermediary  /  Retail 38% 0% 20% 40% 60% 80%
  • 84.
    Propor.on  with  a  YouTube  Profile   Hotel 44% Other  accommodation 45% Airline 44% Car  Rental 54% Cruise 57% DMC  /  tourism  board 36% Tour  operator 32% Online  Travel  Agent  (OTA) 31% Meta-­‐search 20% Other  online  intermediary 32% "Offline"  intermediary  /  Retail 8% 0% 15% 30% 45% 60% Propor.on  with  a  LinkedIn  Profile   Hotel 41% Other  accommodation 29% Airline 35% Car  Rental 39% Cruise 14% DMC  /  tourism  board 41% Tour  operator 35% Online  Travel  Agent  (OTA) 50% Meta-­‐search 60% Other  online  intermediary 43% "Offline"  intermediary  /  Retail 38% 0% 15% 30% 45% 60% Propor.on  with  a  Flickr  Profile   Hotel 25% Other  accommodation 29% Airline 21% Car  Rental 31% Cruise DMC  /  tourism  board 27% Tour  operator 24% Online  Travel  Agent  (OTA) 13% Meta-­‐search Other  online  intermediary 14% 0% 10% 20% 30% 40%
  • 85.
    Social  Media  Investment  in  the  Last  Quarter   “In  order  of  importance,  please  list  five  social  media  sites  you  have  invested  in  (.me  or  money),  in   the  last  3  months.” Rank  1:  Top  most  influen.al  social  media  traffic  source Facebook   is   by   far   the   homest   social   site   of   the   moment.   It   is   the   site   has   has   received   the   most   investment   over   the   last   quarter.    Twimer   is  also  the   most   invested   social   site   for   a   good   propor7on.   Looking   at   the   analysis   of   the   secondary   listed   sites   it   is  revealed  that   Twimer   is   the  dominant   sited   listed.  In   the   3rd   and   4th   rankings  we   start   to   see  YouTube,  LinkedIn,  Flickr   and   some   of   the   other   sites   emerge.           It   will   be   very   interes7ng   to   follow  the  trends  of  this.   Rank  2:  2nd  most  influen(al  social  media  traffic  source             Rank  3                 Rank  4
  • 86.
    Preferred  Marke.ng  ROI If  you  could  choose  ONE  of  the  following  results  from  a  campaign  what  would  you  choose.   3% 16% 200 SMS responses 50 inbound enquiries to your call-centre 500 Facebook Likes 500 re-tweets 53% A 10% increase in brochure requests 17% A 5% increase in traffic to your website homepage 6% 4% A  5%  increase  in  traffic  to  a  website  is  certainly  the  winner  in  this  ques7on  overall.  53%  chose  this  as  their  favoured   campaign  result.  The  second  favourite  was  500  Facebook  likes  (17%)  and  closely  followed  by  50  inbound  enquiries  to  a   call  centre  (16%).   Comparing  preferences  between  different  sectors  indicates  some  differences.  Airlines  and  Meta-­‐Search  are   predominantly  choosing  a  5%  increase  to  their  website  which  makes  sense  due  to  the  volume  of  traffic  they  are  likely   to  receive  in  general.  Cruise,  DMC/tourism  board  and  offline  intermediaries  favour  the  inbound  enquiries  to  call   centres.  Facebook  likes  are  preferred  mainly  by  Car  Rental,  Other  Accommoda7on,  and  Tour  Operators.     200 SMS responses 50 inbound enquiries to your call-centre 500 Facebook Likes 500 re-tweets A 10% increase in brochure requests A 5% increase in traffic to your websites? homepage Hotel 2% 13% 15% 5% 2% 64% Other  accommodation 6% 19% 26% 3% 13% 32% Airline 0% 3% 9% 3% 3% 82% Car  Rental 0% 8% 0% 31% 62% Cruise 0% 0% 43% 14% 43% DMC  /  tourism  board 9% 36% 5% 9% 5% 36% Tour  operator 4% 19% 25% 4% 11% 37% Online  Travel  Agent  (OTA) 3% 19% 13% 9% 1% 55% Meta-­‐search 0% 0% 20% 80% Other  online  intermediary 3% 9% 23% 12% 3% 49% "Offline"  intermediary  /  Retail 0% 13% 33% 13% 13% 29% 0% 25% 50% 75% 100% %  of  respondents
  • 87.
    When  analysing  the  results  based  on  marke7ng  budget  we  can  iden7fy  quite  clear  pamern  in  the  choice  of  answer.  The   higher  the  budget  the  more  the  web  traffic  is  preferred,  probably  correla7ng  to  the  volume  of  traffic  in  rela7on  to  the   size  of  the  company.  The  inbound  enquiries  are  preferred  as  we  look  towards  the  lower  end  of  the  budget  ranges.   Facebook  likes  are  spread  more  evenly  across  budgets.   200 SMS responses 50 inbound enquiries to your call-centre 500 Facebook Likes 500 re-tweets A 10% increase in brochure requests A 5% increase in traffic to your website homepage Less  than  $25k 9% 17% 19% 9% 8% 39% $26k  -­‐  $50k 2% 20% 28% 8% 2% 40% $50k  -­‐  $100k 5% 19% 19% 9% 7% 42% $201k  -­‐  $300k 0% 24% 16% 6% 8% 46% $301k  -­‐  $400k 0% 11% 17% 6% 11% 56% Marketing  Budget $401k  -­‐  $500k 0% 0% 15% 30% 5% 50% $501k  -­‐  $750k 0% 0% 11% 11% 11% 67% $751k  -­‐  $1  million 0%3% 16% 9% 3% 69% $1.1  million  -­‐  $2  million 3% 0% 19% 11% 3% 65% $2.1  million  -­‐  $5  million 0% 16% 22% 5% 5% 51% $5.1  million  -­‐  $10  million 0% 12% 9% 3% 3% 74% $10.1  million  -­‐  $50  million 0% 2% 14% 5% 5% 74% $51  million  -­‐  $100  million 0% 0% 17% 83% $101million  + 0% 7% 0% 11% 11% 70% 0% 25% 50% 75% 100% %  of  respondents  within  marketing  budget  category Social  Media  Aetudes     Social  media  is  evidently  having  posi7ve  impacts  for  the  majority  of  travel  companies.  47%  of  respondents  believe  that   social  media  has  generated  ROI  to  some  extent.  Quite  a  large  propor7on  (32%)  do  however  neither  agree  nor  disagree   so  there  is  s7ll  uncertainty  around  this.  Social  media  is  genera7ng  direct  bookings  for  51%  of  respondents.  18%   definitely  do  not  believe  that  social  media  has  generated  direct  bookings.  It  is  felt  that  social  media  has  improved   engagement  with  customers  by  the  majority  of  respondents  (59%).  Only  7%  disagree.  We  can  iden7fy  the  growth  in   social  media  investment  from  the  last  two  ques7ons.  59%  increased  investment  in  the  last  3  months  to  some  degree   and  68%  intend  to  increase  their  investment  over  the  next  3  months.     Below  are  a  number  of  statements  regarding  antudes  towards  social  media,  please  read  each  one  and  indicate  to   what  extent  you  agree  or  disagree:        Please  note:  if  you  are  not  acOvely  invesOng  in  social  media  markeOng  you  can   sOll  consider  travel  review  sites  and  social  networks  that  exist  independently  of  company  acOvity   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Social  media  has  generated  us  very  little  or  zero  return  on  investment  (ROI) 4% 17% 32% 32% 15% Social  media  has  generated  us  direct  bookings 7% 44% 32% 14% 4%  Social  media  has  improved  our  engagement  with  consumers 21% 51% 21% 5%2%  We  have  increased  our  investment  in  social  media  in  the  last  3  months   12% 47% 26% 11% 3% We  will  be  increasing  our  investment  in  social  media  over  the  next  3  months   17% 51% 22% 8% 2% 0% 25% 50% 75% 100%
  • 88.
    Social  Media  AUtudes  By  Company  Sector   The  results  suggest  that  the  sectors  experiencing  the  best  returns  from  social  media  are  Airline  and  DMC/tourism   board  sectors  because  56%  of  airlines  and  59%  of  DMs  and  tourism  boards  do  not  agree  with  the  statement.  Other   sectors  do  closely  follow.  In  terms  of  a  lack  of  ROI  the  Cruise  sector  stands  out  the  most  with  43%  agreeing  with  the   statement.  OTAs  are  also  not  convinced  about  their  returns  to  date.  Meta-­‐Search  are  not  en7rely  sure  about  the   results.   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Social  media  has  generated  us  very  liple  or  zero  return  on  investment  (ROI) Hotel 4% 13% 33% 35% 15% Other  accommodation 13% 13% 29% 36% 10% Airline 0% 15% 29% 35% 21% Car  Rental 0% 31% 38% 23% 8% Cruise 0% 0% 43% 43% 14% DMC  /  tourism  board 5% 14% 23% 41% 18% Tour  operator 4% 15% 35% 28% 19% Online  Travel  Agent  (OTA) 6% 24% 29% 32% 8% Meta-­‐search 0% 0% 20% 80% Other  online  intermediary 0% 18% 28% 31% 23% "Offline"  intermediary  /  Retail 4% 25% 33% 29% 8% 0% 25% 50% 75% 100% %  of  respondents DMCs  and  tourism  boards  reveal  the  most  success  in  terms  of  direct  bookings  from  social  media  with  78%  agreeing   with  the  statement.  Airlines  are  also  par7cularly  posi7ve  about  this  (62%  of  respondents  agree  to  some  degree).  The   sector  where  social  has  been  least  impacxul  to  direct  bookings  is  the  offline  intermediary  sector,  OTAs  and  Other   Accommoda7on.  DMCs  and  tourism  boards  are  again  proving  to  be  finding  the  best  results  with  consumer   engagement  (82%  agree  to  some  degree).  Meta-­‐Search  are  not  finding  it  is  working  as  well  for  all  of  them  (20%   disagree)  and  OTAs  13%  disagree.  Hotel,  Airline  and  Car  Rental  are  repor7ng  similar  levels  in  aotudes  towards  social   media  and  consumer  engagement,  predominantly  posi7ve.   Social  media  has  generated  us  direct  bookings Hotel 7% 46% 33% 13% 2% Other  accommodation 0% 45% 29% 13% 13% Airline 6% 56% 24% 12% 3% Car  Rental 0% 0% 39% 54% 8% Cruise 0% 0% 43% 43% 14% DMC  /  tourism  board 0% 14% 64% 14% 9% Tour  operator 8% 41% 33% 12% 5% Online  Travel  Agent  (OTA) 10% 41% 26% 19% 4% Meta-­‐search 0% 20% 40% 20% 20% Other  online  intermediary 9% 39% 42% 9% 2% "Offline"  intermediary  /  Retail 0%4% 33% 33% 29% 0% 25% 50% 75% 100% %  of  respondents
  • 89.
    Social  media  has  improved  our  engagement  with  consumers Hotel 21% 56% 19% 2%2% Other  accommodation 16% 48% 26% 3% 7% Airline 32% 44% 15% 6% 3% Car  Rental 0% 8% 0% 69% 23% Cruise 0% 0% 57% 43% DMC  /  tourism  board 0% 36% 46% 14% 5% Tour  operator 20% 43% 27% 7% 4% Online  Travel  Agent  (OTA) 14% 49% 24% 12% 1% Meta-­‐search 0% 0% 40% 40% 20% Other  online  intermediary 0% 28% 54% 15% 3% "Offline"  intermediary  /  Retail 0% 21% 46% 21% 13% 0% 25% 50% 75% 100% %  of  respondents We  have  increased  our  investment  in  social  media  in  the  last  3  months The  most  investment  from  social  media  has  come  from  the  Airline  and  Cruise  sectors  in  the  last  quarter.  The  biggest   non-­‐investments  sectors  have  been  in  the  Car  Rental,  DMC/tourism  board,  Tour  Operator,  OTA  and  offline   intermediary  sectors.   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Hotel 10% 48% 27% 12% 3% Other  accommodation 7% 55% 29% 3% 7% Airline 21% 50% 24% 3% 3% Car  Rental 0% 15% 31% 38% 15% Cruise 0% 0% 14% 57% 29% DMC  /  tourism  board 0% 9% 46% 32% 14% Tour  operator 11% 37% 25% 20% 7% Online  Travel  Agent  (OTA) 13% 44% 23% 17% 4% Meta-­‐search 0% 0% 60% 20% 20% Other  online  intermediary 0% 17% 60% 20% 3% "Offline"  intermediary  /  Retail 0% 0% 50% 38% 13% 0% 25% 50% 75% 100% %  of  respondents In  the  upcoming  quarter,  we  expect  further  investment  in  social  media  by  airlines  and  almost  a  quarter  of  respondents   are  strongly  agreeing  that  they  are  planning  an  increase  with  an  addi7onal  44%  agreeing.  The  biggest  propor7ons  that   agree  to  some  extent  are  the  Hotel,  Cruise,  DMC/tourism  board  and  offline  intermediary  sectors.  It  seem  more  offline   intermediaries  are  moving  into  this  space  over  the  next  quarter  in  comparison  to  last,  this  can  also  be  seen  in  the  Tour   Operator  and  Hotel  sectors.  Meta-­‐Search  are  not  expec7ng  too  much  change  except  there  is  clearly  some  delibera7on   as  to  the  value  as  40%  have  moved  into  the  neutral  ra7ng  from  posi7ve.
  • 90.
    Yes No Don't  know We  will  be  increasing  our  investment  in  social  media  over  the  next  3  months Hotel 18% 54% 19% 7% 2% Other  accommodation 10% 55% 23% 6% 6% Airline 24% 44% 27% 3% 3% Car  Rental 0% 0% 15% 38% 46% Cruise 0% 0% 71% 29% DMC  /  tourism  board 0% 14% 59% 14% 14% Tour  operator 11% 51% 23% 12% 4% Online  Travel  Agent  (OTA) 17% 46% 23% 13% 1% Meta-­‐search 0% 0% 40% 40% 20% Other  online  intermediary 0% 22% 49% 26% 3% "Offline"  intermediary  /  Retail 0% 13% 63% 21% 4% 0% 25% 50% 75% 100% %  of  respondents Loca.on  Based  Marke.ng   More  travel  companies  included  loca7ons  based  marke7ng  in  their  ac7vi7es  in  the  last  3  months  than  not.  46%   included  some  kind  of  LBM  ac7vity.   Did  any  of  your  markeOng  acOviOes  in  the  last  3  months  include  locaOon-­‐based  markeOng? 50% 46% 38% 40% 25% 13% 14% 0% es ni pa om l  c ve ra l  t Al
  • 91.
    Loca(on  Based  Marke(ng  By  Company  Sector   Yes No Don't know Hotel 60% 26% 14% Other  accommodation 39% 42% 19% Airline 44% 41% 15% Car  Rental 46% 31% 23% Cruise 0% 43% 57% DMC  /  tourism  board 55% 27% 18% Tour  operator 43% 43% 15% Online  Travel  Agent  (OTA) 32% 54% 14% Meta-­‐search 0% 40% 60% Other  online  intermediary 34% 55% 11% "Offline"  intermediary  /  Retail 38% 42% 21% 0% 25% 50% 75% 100% %  of  respondents Hotel  companies  are  evidently  the  most  ac7ve  in  loca7on  based  marke7ng  (60%)  followed  by  DMCs/tourism  boards   (55%).  There  is  not  much  difference  between  the  ac7vity  across  other  sectors.  
  • 92.
  • 93.
    Mobile   Mobile  websites  are  slightly  more  developed  in  comparison  to  apps  to  date.  35%  of  all  respondents  currently  have  a   mobile  version  of  their  website  available,  61%  do  not.  24%  have  already  developed  a  mobile  applica7on  for  their   brand,  71%  have  not.          Is  there  a  mobile  version  of  your  website  available? A  downloadable  mobile  app  available  for  your  brand? 70% 80% 61% 71% 53% 60% 35% 40% 35% 18% 20% 24% 0% 4% 0% 5% All  travel  companies All  travel  companies Yes No Don't know Considering  the  results  between  different  marke7ng  budget  ranges  we  can  iden7fy  a  fairly  clear  clear  trend  showing  a   correla7on  between  size  of  marke7ng  budget  and  investment  in  mobile  websites.  For  example  in  the  top  marke7ng   budget  category  78%  have  a  mobile  version  of  their  website  available  and  22%  do  not,  against  15%  of  the  companies   with  budget  less  than  $25k  who  have  a  mobile  website  and  75%  that  do  not.     Mobile  Websites   Less  than  $25k 15% 75% 10% $26k  -­‐  $50k 32% 63% 5% $50k  -­‐  $100k 27% 68% 5% $201k  -­‐  $300k 38% 58% 4% Marketing  Budget $301k  -­‐  $400k 0% 28% 72% $401k  -­‐  $500k 30% 60% 10% $501k  -­‐  $750k 0% 50% 50% $751k  -­‐  $1  million 34% 63% 3% $1.1  million  -­‐  $2  million 0% 35% 65% $2.1  million  -­‐  $5  million 0% 32% 68% $5.1  million  -­‐  $10  million 41% 56% 3% $10.1  million  -­‐  $50  million 0% 60% 41% $51  million  -­‐  $100  million 75% 17% 8% $101million  + 0% 78% 22% 0% 25% 50% 75% 100% %  of  respondents
  • 94.
    Mobile  Applica.ons   In  terms  of  mobile  applica7ons  where  investment  is  lower  overall,  we  can  also  iden7fy  a  similar  trends  with  a   correla7on  to  marke7ng  budget.  67%  of  the  top  budget  range  have  invested  in  an  app  again  8%  of  the  lowest  budget.   This  is  unsurprising  but  a  confirma7on  nonetheless  about  the  priority  of  travel  companies  in  the  current  environment.   Yes No Don't know Less  than  $25k 8% 81% 11% $26k  -­‐  $50k 10% 87% 3% $50k  -­‐  $100k 24% 73% 3% $201k  -­‐  $300k 20% 76% 4% $301k  -­‐  $400k 11% 83% 6% Makreting  Budget $401k  -­‐  $500k 25% 70% 5% $501k  -­‐  $750k 28% 67% 6% $751k  -­‐  $1  million 0% 22% 78% $1.1  million  -­‐  $2  million 24% 73% 3% $2.1  million  -­‐  $5  million 0% 24% 76% $5.1  million  -­‐  $10  million 38% 59% 3% $10.1  million  -­‐  $50  million 0% 48% 52% $51  million  -­‐  $100  million 58% 25% 17% $101million  + 67% 30% 4% 0% 25% 50% 75% 100% %  of  respondents Mobile  Investment  By  Country   Investment  in  mobile  does  vary  my  market.  France  have  proved  to  be  the  biggest  investors  in  both  mobile  websites   and  applica7ons  at  the  moment.  64%  of  respondents  from  France  have  reported  to  have  a  mobile  website  and  64%   have  an  applica7on.  Germany  follows  with  55%  with  a  mobile  website  and  55%  with  an  app.  Whilst  Brazil  report  to  be   in  the  high  end  of  the  scale  for  mobile  app  investment  (57%)  there  are  less  companies  repor7ng  to  have  developed  a   mobile  version  of  their  website  in  comparison  to  most  markets  (29%)  so  they  reverse  the  trend.  More  US  companies   have  invested  in  mobile  websites  in  comparison  to  UK  companies,  44%  and  31%  respec7vely.  In  terms  of  mobile  apps   the  US  and  UK  are  at  similar  levels  with  27%  of  US  companies  repor7ng  a  mobile  app  and  24%  of  UK  companies.  The   lowest  investors  in  mobile  websites  are  currently  India,  Brazil  and  Australia  (27%,  29%  and  30%).  In  the  context  of   mobile  apps  the  lowest  investors  are  currently  India  (19%),  Spain  (18%),  Australia  (21%)  and  Italy  (22%).         Mobile  Website United  Kingdom 31% 63% 6% Germany 0% 55% 46% France 0% 64% 36% Italy 0% 44% 56% Spain 0% 50% 50% Global 35% 61% 4% United  States 44% 52% 3% Australia 30% 64% 6% China 44% 48% 9% India 27% 64% 9% Brazil 0% 29% 71% 0% 25% 50% 75% 100%
  • 95.
    Yes No Don't know Mobile  Applica.on   United  Kingdom 24% 75% 2% Germany 0% 55% 46% France 0% 64% 36% Italy 0% 22% 78% Spain 0% 18% 82% Global 24% 71% 5% United  States 27% 67% 6% Australia 0% 21% 79% China 26% 65% 9% India 19% 71% 10% Brazil 0% 57% 43% 0% 25% 50% 75% 100%   Mobile  Investment  By  Company  Sector   Performing  an  analysis  by  sector  reveals  that  Car  Rental  are  the  biggest  investors  in  mobile  websites  at  the  moment.   62%  have  a  mobile  website  but  Airline  companies  are  reported  to  be  higher  investors  in  apps;  47%  of  the  Airline  sector   have  an  app  in  comparison  to  39%  of  Car  Rental  companies.  Hotel  companies  are  also  rela7vely  more  ac7ve  in  the   mobile  space.  45%  of  Hotel  companies  report  to  have  a  mobile  website  available  but  they  have  put  less  amen7on   towards  mobile  apps  (26%).  Online  intermediaries  have  invested  more  in  mobile  apps  against  Hotel  companies;  Meta-­‐ Search  report  40%  of  companies  with  apps  and  OTAs  28%.  Tour  Operators  are  the  least  ac7ve  in  the  mobile  space;  12%   have  a  mobile  website  and  12%  have  an  app.  The  Other  Accommoda7on  sector  are  also  less  developed  in  this  area   and  report  23%  with  a  mobile  website  and  just  10%  with  an  app.  Cruise  are  also  repor7ng  smaller  numbers  with  29%   having  a  website  and  14%  with  an  app.   Mobile  Website   Hotel 45% 51% 3% Other  accommodation 23% 65% 13% Airline 50% 47% 3% Car  Rental 0% 62% 39% Cruise 0% 29% 71% DMC  /  tourism  board 23% 59% 18% Tour  operator 12% 83% 5% Online  Travel  Agent  (OTA) 38% 59% 3% Meta-­‐search 0% 20% 80% Other  online  intermediary 37% 60% 3% "Offline"  intermediary  /  Retail 0% 21% 79% 0% 25% 50% 75% 100% %  of  respondents
  • 96.
    Mobile  Applica.on   Hotel 26% 68% 6% Other  accommodation 10% 74% 16% Airline 47% 50% 3% Car  Rental 0% 39% 62% Cruise 0% 14% 86% DMC  /  tourism  board 14% 73% 14% Tour  operator 12% 84% 4% Online  Travel  Agent  (OTA) 28% 69% 3% Meta-­‐search 0% 40% 60% Other  online  intermediary 0% 26% 74% "Offline"  intermediary  /  Retail 0% 13% 88% 0% 25% 50% 75% 100% %  of  respondents Importance  of  Mobile  in  Travel   We  have  ques7onned  where  the  travel  companies  are  seeing  the  value  in  mobile  at  the  moment  and  whilst  there  is   not  much  varia7on  across  the  different  uses,  we  can  see  that  47%  of  respondents  consider  mobile  important  for   marke7ng  and  informa7on  search  to  some  degree,  16%  rate  very  for  extremely  important  for  marke7ng  and  16%  for   informa7on  search.  The  least  important  area  for  our  respondents  is  for  opera7ons  related  purposes  for  which  41%  do   not  consider  this  important,  perhaps  due  to  the  nature  of  different  products.  Using  mobile  for  sales  is  also  considered   less  important  and  38%  rate  this  ‘not  important’.   How  important  has  the  MOBILE  channel  been  for  your  organisaOon  in  the  last  3  months?  Please  rate  on  the  scale   below  against  each  of  the  following: Extremely important Very important Important Neither important nor unimportant Not important For  sales 3% 7% 21% 29% 38% For  marketing 4% 12% 31% 24% 30% For  customer  Service   5% 11% 26% 26% 32% For  operations-­‐related  purposes  e.g.  check-­‐in 4% 9% 17% 30% 41% For  information  search 6% 10% 31% 24% 29% 0% 25% 50% 75% 100% %  of  respondents
  • 97.
    Importance  of  Mobile  in  Travel  By  Company  Sector   It  is  assumed  different  product  types  and  opera7ons  will  find  value  in  different  uses  of  mobile  so  we  have  explored  the   responses  across  sectors.  In  terms  of  the  value  placed  on  mobile  for  sales  we  can  iden7fy  mixed  responses.  The  largest   propor7on  currently  ra7ng  mobile  for  sales  is  the  Car  Rental  sector.  62%  of  respondents  state  it  is  important  to  some   degree.  Meta-­‐Search  contrast  showing  40%  ra7ng  it  neither  important  nor  unimportant  and  60%  feel  it  is  not   important.  Cruise  and  Other  Accommoda7on  are  also  not  par7cularly  looking  at  mobile  as  a  sales  channel.  Airline   companies  rate  mobile  for  sales  the  most  aher  Car  Rental.  42%  of  the  Airline  sector  consider  mobile  for  sales   important  to  some  degree  including  9%  ra7ng  it  extremely  important.  The  Hotel  sector  reports  36%  who  consider   mobile  important  for  sales  and  33%  that  do  not.  Mobile  for  marke7ng  purposes  is  rated  more  highly  by  Hotel   companies;  52%  consider  it  important  to  some  degree  but  the  majority  (36%)  rate  it  ‘important’.  Other   Accommoda7on,  Cruise  and  Car  Rental  do  not  consider  mobile  such  a  strong  marke7ng  channel.  Meta-­‐Search   companies  feel  that  mobile  is  more  important  for  marke7ng  purposes  in  comparison  to  sales.  The  Hotel  sector  report   the  smallest  propor7on  of  companies  that  rate  mobile  ‘not  important’  at  20%.   Extremely important Very important Important Neither important nor unimportant Not important How  important  has  the  mobile  channel  been  in  the  last  3  months  for  sales?   Hotel 4% 7% 25% 31% 33% Other  accommodation 0%3% 10% 26% 61% Airline 9% 15% 18% 24% 35% Car  Rental 0% 8% 54% 39% Cruise 0% 14% 29% 57% DMC  /  tourism  board 5% 9% 18% 27% 41% Tour  operator 3% 7% 17% 32% 41% Online  Travel  Agent  (OTA) 5% 9% 19% 28% 39% Meta-­‐search 0% 40% 60% Other  online  intermediary 3% 3% 25% 42% 28% "Offline"  intermediary  /  Retail 0% 13% 21% 8% 58% 0% 25% 50% 75% 100% %  of  respondents How  important  has  the  mobile  channel  been  in  the  last  3  months  for  markeOng?   Hotel 4% 12% 36% 28% 20% Other  accommodation 0%3% 16% 19% 61% Airline 12% 12% 35% 15% 26% Car  Rental 0% 15% 31% 54% Cruise 0% 14% 29% 57% DMC  /  tourism  board 0% 14% 32% 23% 32% Tour  operator 1% 12% 29% 24% 33% Online  Travel  Agent  (OTA) 6% 12% 26% 24% 32% Meta-­‐search 0% 20% 40% 40% Other  online  intermediary 5% 12% 39% 25% 20% "Offline"  intermediary  /  Retail 4% 17% 13% 21% 46% 0% 25% 50% 75% 100% %  of  respondents
  • 98.
    How  important  has  the  mobile  channel  been  in  the  last  3  months  for  customer  service?   Using  mobile  for  customer  service  is  rated  most  by  the  Airline  sector;  62%  rate  this  important  to  some  degree  and  21%   rate  not  important.  Im  comparison,  Meta-­‐Search  do  not  find  this  a  good  use  of  mobile  showing  80%  consider  this   unimportant.  DMCs/tourism  board  are  looking  to  mobile  for  this  use  more  than  many  other  sectors;  55%  rate  it   important  to  some  degree  and  23%  say  unimportant.  Cruise  again  do  not  see  the  value  of  mobile  in  customer  service,   71%  say  it  is  not  important.  OTAs  are  quite  divided  around  this;  40%  say  not  important,  24%  neither  important  nor   unimportant  and  36%  consider  it  important  to  some  degree.   Extremely important Very important Important Neither important nor unimportant Not important Hotel 6% 9% 28% 30% 28% Other  accommodation 3% 7% 16% 26% 48% Airline 9% 21% 32% 18% 21% Car  Rental 0% 8% 38% 15% 38% Cruise 0% 14% 14% 71% DMC  /  tourism  board 5% 32% 18% 23% 23% Tour  operator 7% 13% 21% 27% 32% Online  Travel  Agent  (OTA) 3% 6% 27% 24% 40% Meta-­‐search 0% 20% 80% Other  online  intermediary 3% 11% 29% 31% 26% "Offline"  intermediary  /  Retail 8% 17% 25% 17% 33% 0% 25% 50% 75% 100% %  of  respondents How  important  has  the  mobile  channel  been  in  the  last  3  months  for  operaOons-­‐related  purposes   e.g.  check-­‐in? Opera7ons-­‐related  purposes  are  reported  to  be  more  valued  by  the  Airline,  DMC/tourism  board  and  offline   intermediaries  based  on  the  smaller  propor7ons  ra7ng  this  unimportant.  This  is  the  use  that  Airline  companies  feel   more  strongly  about  and  21%  rate  this  extremely  important  with  a  further  39%  ra7ng  this  important  to  come  degree.   Apart  from  Car  Rental  which  report  39%  to  rate  this  important  to  some  degree,  most  other  remaining  sectors  are   siong  more  neutrally  ra7ng  neither  important  nor  unimportant.  This  excludes  Meta-­‐Search  who  fully  rate  this  use  not   important  as  this  is  less  relevant  for  their  customer  lifecycle  than  other  travel  sectors.   Hotel 2% 6% 19% 36% 38% Other  accommodation 0%3% 10% 16% 71% Airline 21% 21% 18% 18% 24% Car  Rental 8% 8% 23% 8% 54% Cruise 0% 14% 14% 71% DMC  /  tourism  board 9% 14% 14% 36% 27% Tour  operator 4% 16% 16% 28% 36% Online  Travel  Agent  (OTA) 1% 5% 17% 30% 47% Meta-­‐search 0% 100% Other  online  intermediary 5% 3% 23% 31% 38% "Offline"  intermediary  /  Retail 4% 17% 8% 38% 33% 0% 25% 50% 75% 100% %  of  respondents
  • 99.
    How  important  has  the  mobile  channel  been  in  the  last  3  months  for  informaOon  search? Surprisingly  Meta-­‐Search  do  not  view  mobile  as  an  important  channel  fro  informa7on  search  showing  80%  ra7ng  this   ‘not  important’;  20%  consider  it  ‘important’.  The  Airline  sector  is  looking  to  mobile  as  an  informa7on  tool;  just  15%   rate  this  not  important  and  71%  consider  this  important  to  some  degree.  Hotel  companies  also  value  mobile  for   informa7on  search  purposes  more  than  other  sectors  repor7ng  55%  that  consider  it  important  to  some  degree.  This  is   the  use  that  Cruise  are  looking  towards  the  most  but  s7ll  only  14%  are  ra7ng  this.  OTAs  are  fairly  divided  again;  32%  do   not  rate  this  important,  28%  are  neutral  and  40%  feel  it  is  important  to  some  degree.   Overall,  the  Hotel  sector  show  rela7vely  consistent  results  across  all  poten7al  uses  of  mobile  but  slightly  lower  ra7ngs   for  sales  and  opera7ons  related  purposes.  Other  Accommoda7on  do  not  report  much  varia7on  between  uses  for  the   small  propor7on  who  consider  any  importance  at  all.  Airline  companies  favour  informa7on  search,  customer  service   and  opera7ons  related  purposes  slightly  more  than  sales  and  marke7ng.  Whilst  other  data  in  the  survey  has  indicated   a  compara7vely  higher  level  of  ac7vity  in  mobile  by  the  Car  Rental  sector,  there  is  quite  a  high  propor7on  within  all   poten7al  uses  that  rate  it  unimportant.  However,  this  sector  is  edging  on  sales  and  customer  services  as  a  more   valuable  purpose  of  mobile.  Cruise  as  men7oned  are  not  looking  hugely  towards  mobile  but  out  of  all  uses  they  favour   informa7on  search.  DMCs/tourism  boards  sit  rela7vely  evenly  across  all  categories  but  rate  customer  service  slightly   more  than  other  uses.  The  Tour  Operator  sector  are  also  quite  consistent  across  categories  but  the  weight  is  towards   customer  service.  OTAs,  although  not  enormously  varied,  are  ra7ng  more  on  marke7ng  and  informa7on  search  a  limle   more  than  other  purposes.  Meta-­‐Search  are  more  definite  repor7ng  marke7ng  and  informa7on  search  to  be  the  most   valued  use  for  this  sector,  but  as  men7oned  there  are  a  large  propor7on  who  are  not  ra7ng  any  use  at  all.  Offline   intermediaries  appear  more  interested  in  the  mobile  channel  in  rela7on  to  other  sectors  than  some  of  the  tradi7onal   online  ques7ons  in  the  survey.  For  this  sector,  customer  service  and  informa7on  search  are  more  important.           Extremely important Very important Important Neither important nor unimportant Not important Hotel 7% 8% 40% 24% 21% Other  accommodation 0% 19% 19% 61% Airline 9% 27% 35% 15% 15% Car  Rental 0% 8% 31% 15% 46% Cruise 0% 14% 43% 43% DMC  /  tourism  board 5% 9% 36% 18% 32% Tour  operator 7% 16% 20% 25% 32% Online  Travel  Agent  (OTA) 4% 9% 27% 28% 32% Meta-­‐search 0% 20% 80% Other  online  intermediary 8% 11% 29% 28% 25% "Offline"  intermediary  /  Retail 13% 4% 33% 17% 33% 0% 25% 50% 75% 100% %  of  respondents
  • 100.
    Importance  of  Mobile  in  Travel  By  Country There  are  also  varia7ons  revealed  across  countries.  Brazil  rate  mobile  for  sales  the  least,  80%  rate  this  use  ‘not   important’.  India  and  Germany  show  the  lowest  propor7on  to  say  it  is  totally  unimportant.  France  and  India  make  up   the  majority  who  have  rated  this  extremely  important,  although  quite  small  propor7ons.  India  and  France  value   mobile  for  sales  the  most  out  of  all  countries  repor7ng  58%  and  45%  respec7vely  rate  mobile  for  sales  important  to   some  degree.  Spain  and  Australia  are  not  en7rely  sure  about  the  value  of  mobile  for  sales  and  show  the  lowest   propor7ons  valuing  a  posi7ve  degree  of  importance  but  with  larger  propor7ons  siong  neutrally.   Considering  informa7on  search,  this  is  where  Brazil  is  seeing  a  par7cular  value,  especially  in  comparison  to  sales.  57%   rate  this  important  and  just  14%  not  important.  France  top  the  country  with  the  most  posi7ve  ra7ngs  for  this  category   again,  18%  rate  this  extremely  important  and  overall  63%  of  respondents  from  France  consider  this  important  to  some   degree.  Germany  are  also  on  a  par  with  France  although  most  rate  this  ‘important‘.  Germany  also  along  with  Brazil  has   the  lowest  propor7on  who  rate  this  unimportant.     Extremely important Very important Important Neither important nor unimportant Not important How  important  has  the  mobile  channel  been  in  the  last  3  months  for  sales? United  Kingdom 0% 7% 21% 25% 46% Germany 0% 27% 45% 27% France 9% 18% 18% 18% 36% Italy 0% 33% 33% 33% Spain 0%5% 9% 36% 50% Global 3% 7% 21% 29% 38% United  States 3% 5% 23% 33% 35% Australia 0% 3% 9% 49% 39% China 0%4% 26% 35% 35% India 7% 7% 44% 17% 25% Brazil 0% 14% 86% 0% 25% 50% 75% 100% %  of  respondents How  important  has  the  mobile  channel  been  in  the  last  3  months  for  informaOon  search? United  Kingdom 5% 10% 21% 27% 37% Germany 0% 18% 45% 18% 18% France 18% 27% 18% 9% 27% Italy 0% 11% 44% 22% 22% Spain 0% 18% 18% 27% 36% Global 6% 10% 31% 24% 29% United  States 9% 7% 31% 28% 26% Australia 0% 3% 24% 42% 30% China 4% 9% 39% 26% 22% India 9% 12% 34% 17% 29% Brazil 0% 57% 29% 14% 0% 25% 50% 75% 100% %  of  respondents
  • 101.
    How  important  has  the  mobile  channel  been  in  the  last  3  months  for  operaOons-­‐related  purposes   e.g.  check-­‐in? Extremely important Very important Important Neither important nor unimportant Not important United  Kingdom 5% 6% 10% 27% 52% Germany 0% 27% 36% 36% France 0% 18% 18% 18% 45% Italy 0% 11% 22% 33% 33% Spain 0%5% 27% 68% Global 4% 9% 17% 30% 41% United  States 5% 5% 18% 35% 37% Australia 0% 9% 42% 49% China 4% 4% 13% 44% 35% India 10% 14% 31% 24% 22% Brazil 0% 29% 71% 0% 25% 50% 75% 100% %  of  respondents Brazil  are  the  most  dominant  country  who  do  not  find  mobile  valuable  for  opera7ons-­‐related  purposes,  71%  rate  this   ‘not  important’  and  the  remaining  29%  are  neutral.  India  are  the  most  posi7ve  about  mobile  for  this  purpose  out  of  all   countries  and  55%  have  rated  it  with  some  degree  of  importance.  The  next  most  posi7ve  country  is  France  but  a  fair   way  behind  India  with  a  total  of  36%  ra7ng  some  degree  of  importance.  The  UK  and  US  are  rela7vely  similar  in   aotudes,  as  is  Italy.  China  are  very  unsure  about  the  value  of  mobile  in  this  category  and  44%  chose  neither  important   nor  unimportant.   Customer  service  is  favoured  the  most  amongst  respondents  from  India  with  just  12%  selec7ng  ‘not  important’.  The   majority  of  the  remaining  respondents  from  this  market  rate  customer  service  purposes  important  to  some  degree,   including  14%  ra7ng  extremely  important.  Although  not  overall  in  comparison  to  India  but  France  stands  out  as  the   most  posi7ve  about  this  category  with  27%  ra7ng  this  extremely  important.  There  is  a  higher  propor7on  (27%)  that   feel  it  is  not  important  however.  The  UK  and  Spain  reveal  similar  pamerns  with  almost  half  of  respondents  not  ra7ng   this  use,  a  quarter  neutral  and  the  rest  ra7ng  it  important  to  some  degree.  Germany  and  Italy  report  similar  responses   with  approximately  half  ra7ng  some  importance.  The  US  are  less  keen  on  this  use  as  are  Australia,  and  Australia  report   par7cularly  low  ra7ngs  with  18%  choosing  some  level  of  importance.           How  important  has  the  mobile  channel  been  in  the  last  3  months  for  customer  service? United  Kingdom 3% 13% 15% 24% 45% Germany 0% 18% 27% 36% 18% France 27% 27% 9% 9% 27% Italy 0% 11% 33% 33% 22% Spain 0%5% 27% 23% 46% Global 5% 11% 26% 26% 32% United  States 3% 7% 26% 33% 33% Australia 3% 3% 12% 42% 39% China 4% 9% 30% 30% 26% India 14% 20% 44% 10% 12% Brazil 0% 14% 14% 29% 43% 0% 25% 50% 75% 100% %  of  respondents
  • 102.
    How  important  has  the  mobile  channel  been  in  the  last  3  months  for  markeOng? Extremely important Very important Important Neither important nor unimportant Not important United  Kingdom 0% 15% 22% 22% 40% Germany 0% 18% 36% 27% 18% France 0% 36% 27% 9% 27% Italy 0% 11% 44% 22% 22% Spain 0% 9% 27% 23% 41% Global 4% 12% 31% 24% 30% United  States 4% 7% 30% 32% 27% Australia 0% 6% 58% 36% China 4% 4% 52% 17% 22% India 12% 12% 42% 12% 22% Brazil 0% 57% 29% 14% 0% 25% 50% 75% 100% %  of  respondents Mobile  as  a  marke7ng  channel  is  more  popular  across  most  markets.  India  put  quite  a  lot  of  weight  towards  marke7ng   with  12%  choosing  extremely  important  and  overall  66%  ra7ng  it  with  some  importance,  nevertheless  France  includes   36%  who  rate  this  very  important  and  a  total  of  63%  feel  it  is  important  to  some  degree.  The  UK  and  Spain  include   higher  propor7on  that  so  not  find  mobile  marke7ng  important,  40%  and  41%  respec7vely.  Australia  appear  very   unclear  with  58%  sta7ng  neither  important  not  unimportant.  Brazil  have  definitely  recognised  some  value  and  57%  of   respondents  from  that  market  have  selected  ‘important’.   In  summary,  the  UK  is  rela7vely  consistent  with  ra7ngs  across  different  uses  of  mobile,  yet  sightly  weighted  towards   informa7on  search  and  marke7ng.  Germany  more  clearly  rate  informa7on  search,  customer  service  and  marke7ng   against  sales  and  opera7ons  related  purposes.  France  are  the  most  posi7ve  market  overall  but  customer  service  and   marke7ng  certainly  top  their  list  of  priori7es.  Italy  are  recognising  more  value  in  informa7on  search  and  marke7ng.   Spain  definitely  do  not  rate  sales  and  opera7ons  related  purposes  as  the  most  important  use  of  mobile,  customer   service,  informa7on  search  and  marke7ng  have  significantly  higher  importance.  The  US  report  rela7vely  consistent   ra7ngs  across  categories  but  place  more  emphasis  on  informa7on  search  par7cularly  but  also  marke7ng.  Australia,   seemingly  less  keen  on  mobile  in  comparison  to  other  markets,  highlight  informa7on  search  as  their  most  valued  use   and  clearly  have  not  certain  found  value  in  mobile  for  marke7ng.  China  rate  mobile  as  a  marke7ng  channel  more  than   the  other  categories  and  in  contrast  do  not  find  mobile  important  for  opera7ons  related  purposes.  India  are  one  of  the   most  posi7ve  markets  around  mobile  overall  and  rela7vely  consistent  across  categories  but  amongst  the  choices  they   par7cularly  favour  mobile  for  marke7ng  and  customer  service,  however  top  the  ra7ngs  for  sales  amongst  all  countries.   Brazil  display  very  defined  preferences;  sales  and  opera7ons  related  purposes  are  not  hot  for  Brazil  respondents  but   informa7on  search  and  marke7ng  are,  less  so  for  customer  service.                
  • 103.
    Aetudes  Towards  Mobile  in  Travel   The  industry  is  quite  split  between  whether  mobile  has  generated  ROI  or  not.  29%  agree  that  it  has  generated  very   limle  or  zero  ROI  and  23%  disagree  with  the  statement.  It  is  therefore  evident  that  there  is  a  slight  weighing  towards   investments  which  have  yet  to  produce  return  for  companies.  Mobile  is  working  for  some  companies  because  32%   have  received  direct  bookings  from  mobile  but  perhaps  the  levels  of  investment  have  yet  to  pay  off  fully.  More   respondents  agree  that  mobile  has  improved  their  engagement  with  consumers  than  generated  direct  bookings;  38%   agree  that  mobile  has  improved  engagement  against  18%  that  disagree.  Looking  at  actual  current  and  upcoming   investments,  we  can  see  that  from  the  34%  that  have  invested  in  mobile  in  the  last  3  months,  49%  intend  to  invest  in   the  next  3  months,  an  increase  of  15%.  17%  are  definitely  not  planning  to  invest  in  mobile  in  the  next  quarter  but  34%   rate  ‘neither  agree  nor  disagree’. Below  are  a  number  of  statements  regarding  antudes  towards  mobile  in  travel,  please  read  each  one  and  indicate   to  what  extent  you  agree  or  disagree: Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Mobile  has  generated  us  very  little  or  zero  return  on  investment  (ROI) 6% 23% 47% 17% 6%  Mobile  has  generated  us  direct  bookings 5% 27% 43% 17% 8% Mobile  has  improved  our  engagement  with  consumers 6% 32% 45% 12% 6% We  have  increased  our  investment  in  mobile  in  the  last  3  months 6% 28% 38% 19% 9%  We  will  be  increasing  our  investment  in  mobile  over  the  next  3  months 12% 37% 34% 11% 6% 0% 25% 50% 75% 100% %  of  respondents  -­‐  all  travel  companies AUtudes  Towards  Mobile  in  Travel  by  Country   Mobile  has  generated  us  very  liple  or  zero  return  on  investment  (ROI) Analysing  these  results  by  country  reveals  some  level  os  varia7on.  France  are  seeing  the  best  results  out  of  our   respondents,  27%  have  definitely  seen  some  ROI  from  mobile  and  combined  with  those  that  disagree  wit  the   statement  it  amounts  to  63%  that  feel  mobile  has  generated  them  a  decent  ROI  level.  Many  of  the  respondents  from   Brazil  and  Australia  have  yet  to  iden7fy  a  significant  return.   United  Kingdom 9% 24% 48% 12% 7% Germany 0% 36% 45% 9% 9% France 0% 18% 18% 36% 27% Italy 0% 0% 33% 44% 22% Spain 9% 23% 50% 9% 9% Global 6% 23% 47% 17% 6% United  States 4% 18% 57% 15% 6% Australia 0% 6% 36% 48% 9% China 0% 0% 22% 52% 26% India 7% 19% 36% 32% 7% Brazil 0% 0% 57% 43% 0% 25% 50% 75% 100% %  of  respondents
  • 104.
    Mobile  has  generated  us  direct  bookings France  appear  to  be  realising  their  ROI  through  direct  bookings  as  27%  agree  strongly  that  mobile  has  generated  them   direct  bookings.  A  further  18%  agree.  Brazil  have  not  seen  many  results  here  yet.  The  other  markets  display  a  rela7vely   similar  pamern  in  responses.   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly United  Kingdom 6% 21% 51% 9% 13% Germany 0% 27% 36% 27% 9% France 27% 18% 27% 18% 9% Italy 0% 0% 33% 44% 22% Spain 5% 36% 36% 14% 9% Global 5% 27% 43% 17% 8% United  States 5% 28% 52% 8% 7% Australia 3% 30% 49% 15% 3% China 0% 0% 39% 48% 13% India 5% 41% 27% 20% 7% Brazil 0% 0% 57% 43% 0% 25% 50% 75% 100% %  of  respondents  Mobile  has  improved  our  engagement  with  consumers There  is  not  an  enormous  varia7on  between  markets  in  terms  of  views  towards  consumer  engagement.  China,  India  ,   Spain  and  France  agree  more  than  others  on  this  statement  but  only  marginally.  Across  all  markets  however  there  is  a   smaller  propor7on  of  those  who  totally  disagree.   United  Kingdom 5% 22% 54% 12% 8% Germany 0% 0% 36% 55% 9% France 9% 36% 36% 9% 9% Italy 0% 11% 0% 67% 22% Spain 0%5% 46% 46% 5% Global 6% 32% 45% 12% 6% United  States 7% 29% 45% 12% 7% Australia 0% 24% 61% 12% 3% China 0%4% 48% 39% 9% India 8% 46% 32% 10% 3% Brazil 0% 0% 43% 43% 14% 0% 25% 50% 75% 100% %  of  respondents
  • 105.
    We  have  increased  our  investment  in  mobile  in  the  last  3  months Recent  investments  in  mobile  do  vary  across  markets.  Brazil  appear  to  have  invested  the  least,  with  14%  agreeing  with   the  statement,  29%  in  the  middle  but  a  more  significant  57%  disagreeing.  The  most  investment  in  terms  of  the   propor7on  of  that  market  is  coming  from  Germany  and  France  and  the  results  are  quite  similar  for  these  countries   except  France  have  perhaps  been  the  heavier  investors  with  27%  agreeing  strongly.  The  UK  include  a  rela7vely  large   propor7on  that  have  certainly  not  invested,  34%,  and  Australia  and  Italy  sit  at  the  bomom  of  the  scale  for  those  that   agree  to  some  degree.   Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly United  Kingdom 9% 22% 34% 21% 13% Germany 0% 55% 27% 9% 9% France 27% 27% 27% 9% 9% Italy 0% 0% 22% 44% 33% Spain 9% 36% 32% 18% 5% Global 6% 28% 38% 19% 9% United  States 5% 35% 35% 15% 9% Australia 0% 18% 61% 18% 3% China 0% 26% 52% 17% 4% India 5% 31% 42% 17% 5% Brazil 0% 14% 29% 43% 14% 0% 25% 50% 75% 100% %  of  respondents We  will  be  increasing  our  investment  in  mobile  over  the  next  3  months Looking  forward  to  the  next  quarter,  the  most  investment  is  likely  to  be  coming  from  companies  in  France  and  Spain,   both  with  27%  of  respondents  strongly  agreeing  that  they  will  be  increasing  their  investments  in  mobile  in  the  next  3   months.  Overall  considering  those  that  agree  with  the  statement  to  some  degree  we  can  iden7fy  quite  a  consistent   pamern  across  all  countries.  Spain  is  marginally  higher  amoun7ng  to  59%  of  respondents  planning  to  invest  to  some   degree.  The  smaller  propor7ons  are  in  Australia,  China  and  Brazil.  Germany  is  definitely  seeing  some  movement  in  the   mobile  space  because  no  one  states  that  they  will  definitely  not  be  inves7ng  in  mobile.     United  Kingdom 13% 39% 30% 10% 8% Germany 0% 9% 0% 45% 45% France 0% 27% 27% 36% 9% Italy 0% 11% 44% 33% 11% Spain 27% 32% 27% 9% 5% Global 12% 37% 34% 11% 6% United  States 11% 39% 35% 9% 7% Australia 3% 36% 42% 12% 6% China 0%4% 30% 48% 17% India 14% 32% 39% 10% 5% Brazil 0% 43% 29% 14% 14% 0% 25% 50% 75% 100% %  of  respondents
  • 106.
    AUtudes  Towards  Mobile  in  Travel  by  Company  Sector   Mobile  has  generated  us  very  liple  or  zero  return  on  investment  (ROI) Car  Rental  companies  have  seen  the  best  ROI  from  mobile  amongst  sectors.  A  good  propor7on  of  the  Airline  sector  is   evidently  s7ll  wai7ng  for  real  ROI  because  36%  agree  with  the  statement.  Nevertheless  27%  have  reported  to  record   some  results  to  date.  Offline  intermediary,  Other  Accommoda7on,  Cruise,  Meta-­‐Search,  OTA  and  Tour  Operator   sectors  include  the  largest  propor7ons  who  have  yet  to  see  decent  ROI  from  mobile.  DMC/tourism  board  and  Hotel   sectors  have  seen  some  return  shown  by  the  30%  of  Hotel  respondents  and  27%  of  DMC/tourism  board  respondents   that  disagree  with  the  statement. Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly Hotel 4% 18% 49% 23% 7% Other  accommodation 10% 29% 48% 6% 6% Airline 12% 24% 38% 15% 12% Car  Rental 0% 23% 38% 15% 23% Cruise 0% 14% 29% 43% 14% DMC  /  tourism  board 5% 23% 46% 18% 9% Tour  operator 7% 31% 40% 20% 3% Online  Travel  Agent  (OTA) 10% 26% 45% 13% 6% Meta-­‐search 0% 0% 40% 60% Other  online  intermediary 3% 20% 57% 17% 3% "Offline"  intermediary  /  Retail 13% 38% 33% 8% 8% 0% 25% 50% 75% 100% %  of  respondents We  have  increased  our  investment  in  mobile  in  the  last  3  months Investments  into  mobile  have  come  mainly  from  the  Meta-­‐Search  and  Car  Rental  sectors  over  the  last  quarter.  Airlines   have  followed  and  then  OTAs.  Other  Accommoda7on  has  not  been  enormously  ac7ve  nor  have  offline  intermediaries.   The  biggest  shih  we  are  expec7ng  over  the  next  3  months  is  within  the  Cruise  sector;  from  29%  who  increased  their   mobile  investment  over  the  last  3  months,  71%  expect  to  be  increasing  their  investment  in  the  next  quarter.  More  tour   operators  are  also  looking  to  increase  their  investment;  from  20%  in  the  last  quarter  to  41%  in  the  next  quarter.   Growth  is  also  expected  in  the  OTA  sector  and  we  expect  a  shih  from  38%  of  the  sector  inves7ng  to  56%  in  the  next  3   months.  Meta-­‐Search  are  going  to  be  the  sector  with  the  biggest  propor7on  of  investors  in  mobile;  80%  intend  to   make  increases  over  the  next  3  months  in  comparison  to  60%  in  the  last  quarter.  Offline  intermediaries  are  also   showing  signs  of  development  in  this  space  and  from  the  42%  that  definitely  did  not  invest  in  the  last  quarter,  this   group  is  expected  to  reduce  to  30%,  so  a  larger  propor7on  either  definitely  inves7ng  or  considering  it.       Hotel 7% 29% 40% 19% 5% Other  accommodation 0%3% 58% 19% 19% Airline 6% 44% 29% 9% 12% Car  Rental 0% 15% 46% 31% 8% Cruise 0% 0% 29% 43% 29% DMC  /  tourism  board 0% 27% 32% 27% 14% Tour  operator 3% 17% 39% 28% 13% Online  Travel  Agent  (OTA) 8% 30% 31% 21% 12% Meta-­‐search 0% 20% 40% 20% 20% Other  online  intermediary 5% 40% 40% 9% 6% "Offline"  intermediary  /  Retail 0% 17% 42% 21% 21% 0% 25% 50% 75% 100% %  of  respondents
  • 107.
    Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly We  will  be  increasing  our  investment  in  mobile  over  the  next  3  months Hotel 12% 37% 35% 12% 3% Other  accommodation 0% 19% 61% 6% 13% Airline 24% 41% 24% 3% 9% Car  Rental 0% 23% 54% 15% 8% Cruise 0% 14% 57% 14% 14% DMC  /  tourism  board 0% 32% 36% 18% 14% Tour  operator 5% 36% 39% 12% 8% Online  Travel  Agent  (OTA) 14% 41% 24% 14% 6% Meta-­‐search 0% 0% 20% 60% 20% Other  online  intermediary 20% 37% 37% 5% 2% "Offline"  intermediary  /  Retail 4% 33% 33% 13% 17% 0% 25% 50% 75% 100% %  of  respondents Mobile  has  generated  us  direct  bookings The  best  results  for  direct  bookings  has  been  experienced  in  the  Car  Rental  sector.  A  significant  69%  agree  with  the   statement  including  23%  strongly  agreeing.  Airlines  are  the  next  most  successful  sector;  47%  have  seen  direct   bookings.  Hotel  and  OTA  sectors  are  rela7vely  similar  in  results  with  39%  and  37%  respec7vely  agreeing  with  the   statement.  Offline  intermediaries,  Other  Accommoda7on  and  DMC/tourism  board  sectors  report  the  lowest   propor7ons.   Hotel 5% 34% 44% 13% 4% Other  accommodation 7% 16% 39% 23% 16% Airline 6% 41% 35% 6% 12% Car  Rental 0% 23% 46% 23% 8% Cruise 0% 14% 57% 29% DMC  /  tourism  board 0% 23% 36% 23% 18% Tour  operator 4% 20% 44% 25% 7% Online  Travel  Agent  (OTA) 6% 31% 32% 24% 6% Meta-­‐search 0% 0% 20% 80% Other  online  intermediary 5% 18% 58% 12% 6% "Offline"  intermediary  /  Retail 0% 13% 38% 29% 21% 0% 25% 50% 75% 100% %  of  respondents
  • 108.
    Mobile  has  improved  our  engagement  with  consumers In  terms  of  consumer  engagement,  again  Car  Rental  are  repor7ng  the  most  success.  Airline  companies  are  however   closely  following  because  65%  of  Airline  respondents  agree  with  the  statement  to  some  degree,  in  comparison  to  69%   of  Car  Rental  companies.  Least  posi7vity  is  coming  from  the  Cruise  and  Other  Accommoda7on  sectors.  OTAs  and   hotels  are  again  repor7ng  quite  similar  results.     Hotel 5% 34% 49% 9% 3% Other  accommodation 0% 23% 52% 16% 10% Airline 9% 56% 21% 6% 9% Car  Rental 0% 0% 15% 54% 31% Cruise 0% 14% 71% 14% DMC  /  tourism  board 0% 50% 23% 14% 14% Tour  operator 3% 31% 45% 16% 5% Online  Travel  Agent  (OTA) 5% 27% 41% 21% 6% Meta-­‐search 0% 0% 100% Other  online  intermediary 8% 28% 52% 9% 3% "Offline"  intermediary  /  Retail 8% 21% 38% 17% 17% 0% 25% 50% 75% 100% %  of  respondents
  • 109.
    SecOon  11:     Next  Quarter  Budgets
  • 110.
    Next  Quarter  Budgets   In  the  upcoming  quarter  57%  of  all  travel  companies  are  planning  an  increase  in  budget  towards  web  design/re-­‐design.   The  biggest  increase  is  expected  to  be  in  social  media  with  data  revealing  that  61%  are  planning  an  increase.  Mobile   investment  is  also  on  the  cards  for  48%  of  companies  and  27%  are  not  planning  investment  at  all  or  don’t  know  yet.   Offline  marke7ng  is  showing  the  highest  propor7on  of  companies  reducing  budgets.   For  the  NEXT  QUARTER  do  you  expect  to  be  increasing  or  reducing  budgets  for  the  following  (in  comparison  to  the   previous  quarter): Increasing Staying the same Reducing There will be no budget for this Don't know  Website  design 57% 36% 3%1% 2%  Paid  search  engine  listings 43% 36% 7% 9% 5%  Online  display  advertising 33% 39% 9% 13% 7% Email  marketing 42% 46% 5% 4% 5%  Social  media 61% 29% 2% 4% 5% Mobile 48% 23% 3% 17% 10% Offline  marketing 21% 40% 18% 13% 7% 0% 25% 50% 75% 100% %  of  respondents  -­‐  all  travel  companies Next  Quarter  Budgets  By  Country   Germany  are  showing  the  largest  propor7on  inves7ng  in  their  websites;  91%  plan  an  increase  in  budget  towards  this.   The  other  markets  reveal  similar  pamerns,  although  the  UK  (70%)  are  on  the  higher  side.   Web  Design  /  Re-­‐Design   United  Kingdom 0% 70% 22% 6% 2% Germany 0% 91% 9% France 0% 0% 64% 36% Italy 0% 56% 33% 11% Spain 0% 50% 41% 5% 5% Global 57% 36% 3% 1%2% United  States 55% 39% 3% 3% 1% Australia 0% 0% 49% 52% China 0% 52% 44% 4% India 54% 39% 2% 3% 2% Brazil 0% 0% 57% 43% 0% 25% 50% 75% 100% %  of  respondents
  • 111.
    Increasing Staying the same Reducing There will be no budget for this Don't know Offline  Marke.ng   Offline  marke7ng  plans  are  changing  remarkably  in  Spain  with  major  reduc7ons  planned  or  not  budgets  allocated  at   all.  Only  27%  plan  an  increase.  Brazil,  India,  China  and  Australia  reveal  the  largest  propor7ons  planning  an  increase  in   this  medium.   United  Kingdom 13% 46% 25% 12% 3% Germany 18% 36% 27% 9% 9% France 0% 9% 36% 36% 18% Italy 0% 56% 33% 11% Spain 9% 18% 23% 36% 14% Global 21% 40% 18% 13% 7% United  States 17% 38% 19% 19% 8% Australia 30% 36% 12% 15% 6% China 0% 44% 30% 22% 4% India 41% 39% 12% 7% 2% Brazil 0% 0% 43% 43% 14% 0% 25% 50% 75% 100% %  of  respondents Mobile   Germany  and  France  are  expec7ng  the  most  increases  in  mobile  investment  for  the  next  quarter,  73%  and  64%   respec7vely.  Germany  are  looking  to  be  the  most  ac7ve  market  in  terms  of  mobile.  Italy  are  expec7ng  the  least   investment  in  the  next  3  months,  followed  by  Australia.  Brazil  and  India  are  also  intending  to  make  some   developments  in  the  upcoming  quarter  because  77%  of  respondents  from  India  and  86%  from  Brazil  either  plan  to   increase  or  keep  the  same  investments.   United  Kingdom 46% 18% 6% 16% 13% Germany 0% 0% 73% 27% France 0% 64% 18% 9% 9% Italy 0% 44% 11% 33% 11% Spain 0% 36% 36% 18% 9% Global 48% 23% 3% 17% 10% United  States 47% 19% 3% 21% 11% Australia 0% 36% 27% 27% 9% China 35% 30% 9% 17% 9% India 47% 30% 5% 10% 7% Brazil 0% 0% 43% 43% 14% 0% 25% 50% 75% 100% %  of  respondents
  • 112.
    Increasing Staying the same Reducing There will be no budget for this Don't know Social  Media   In  term  of  social  media,  Germany  is  again  proving  to  be  the  most  ac7ve  in  the  upcoming  quarter;  all  respondents   intend  to  either  increase  or  keep  the  same  budgets  for  this  with  73%  planning  an  increase.  Brazil  shows  a  similar   pamern  with  71%  planning  an  increase.  Italy  is  showing  the  least  and  Australia  following.  The  other  markets  are  not   too  dissimilar  to  each  other.       United  Kingdom 61% 24% 6% 4% 4% Germany 0% 0% 73% 27% France 0% 0% 73% 18% 9% Italy 0% 56% 22% 11% 11% Spain 55% 32% 5% 5% 5% Global 61% 29% 2% 4% 5% United  States 64% 27% 1% 6% 2% Australia 0% 52% 33% 9% 6% China 0% 44% 52% 4% India 61% 31% 2% 5% 2% Brazil 0% 0% 71% 29% 0% 25% 50% 75% 100% %  of  respondents Email  Marke.ng   Email  marke7ng  is  rela7vely  consistent  across  countries.  Italy  are  planning  the  least  investments  and  Brazil  the  most.   United  Kingdom 39% 51% 3% 3% 5% Germany 0% 27% 64% 9% France 0% 27% 55% 9% 9% Italy 0% 11% 56% 11% 22% Spain 36% 41% 9% 9% 5% Global 42% 46% 5% 4% 5% United  States 40% 46% 3% 4% 6% Australia 0% 52% 42% 3% 3% China 0% 44% 44% 9% 4% India 0% 51% 37% 7% 5% Brazil 0% 0% 43% 57% 0% 25% 50% 75% 100% %  of  respondents
  • 113.
    Increasing Staying the same Reducing There will be no budget for this Don't know Online  Display  Adver.sing   Online  display  adver7sing  is  also  fairly  consistent  across  markets  but  we  can  iden7fy  more  reduc7ons  compared  to   some  categories.  Italy  are  planning  the  biggest  reduc7ons  in  terms  of  the  propor7on  of  respondents.  Spain  is  planning   the  largest  propor7on  of  increases  (46^)  along  with  the  UK  (37%)  and  Australia  (39%).       United  Kingdom 37% 28% 10% 18% 6% Germany 0% 27% 55% 9% 9% France 9% 55% 18% 9% 9% Italy 22% 33% 22% 11% 11% Spain 46% 27% 5% 18% 5% Global 33% 39% 9% 13% 7% United  States 29% 42% 5% 17% 7% Australia 0% 39% 36% 18% 6% China 0% 35% 52% 4% 9% India 34% 44% 12% 7% 3% Brazil 0% 14% 57% 14% 14% 0% 25% 50% 75% 100% %  of  respondents Paid  Search  Engine  Lis.ngs  (PPC) 71%  of  Brazil  respondents  plan  an  increase  in  budget  for  paid  search  lis7ngs,  but  30%  do  not  intend  to  allocated  any   budget  to  this  at  all.  Germany  are  expected  to  be  ac7ve  in  paid  search  lis7ngs  but  the  majority  are  keeping  their   budgets  the  same  (64%)  rather  than  increase  (36%).  Australia  and  India  are  the  next  largest  propor7ons  aher  Brazil  to   plan  an  increase  in  PPC  budgets.  All  markets  however  have  between  a  third  and  half  who  have  planned  an  increase.   United  Kingdom 43% 34% 10% 9% 3% Germany 0% 0% 36% 64% France 36% 27% 18% 9% 9% Italy 0% 33% 22% 22% 22% Spain 41% 46% 5% 5% 5% Global 43% 36% 7% 9% 5% United  States 41% 35% 6% 14% 4% Australia 0% 52% 36% 3% 9% China 35% 52% 4% 4% 4% India 49% 36% 7% 5% 3% Brazil 0% 0% 71% 29% 0% 25% 50% 75% 100% %  of  respondents
  • 114.
    SecOon  12:     Biggest  Challenges
  • 115.
    The  biggest  challenges  for  travel  companies  right  now...   Challenges  for  companies  are  mixed.  Some  of  the  key  themes  are  increasing  direct  bookings,  understanding  mobile   and  social  media  and  of  course  managing  to  challenge  the  compe77on.  As  we  will  see  below  the  main  themes  for  both   challenge  and  opportunity  is  mobile  and  social  media.  It  is  the  hot  topic  of  the  moment.    
  • 116.
    SecOon  13:     What  Has  The  Industry  Learnt  Recently? & SecOon  14:     Biggest  Opportuni.es  Iden.fied
  • 117.
    What  respondents  feel  they  and  their  teams  have  learnt  most  over  the  last  year   The  industry  is  learning  by  the  day  to  improve  their  distribu7on  and  marke7ng  strategies  and  enhance  the  efficiency  in   sales  and  marke7ng  as  the  markets  consistently  change  and  new  opportuni7es  emerge.  Below  we  illustrate  some  of   the  key  areas  that  respondents  feel  they’ve  learn  over  the  last  12  months.  Social  is  a  key  theme  and  a  large  propor7on   of  the  travel  industry  are  now  certainly  taking  this  medium  extremely  seriously  as  part  of  their  business  objec7ves.   Online  marke7ng  has  definitely  been  an  area  of  improvement  overall.       The  biggest  opportuni(es  iden(fied…   The  biggest  opportuni7es  of  the  moment  are  considered  to  be  mobile  and  social  media.  They  both  carried  rela7vely   similar  weight  and  it  is  clear  that  companies  need  to  watch  the  space  in  both  of  these  mediums  to  ensure  they  keep  up   with  their  industry  peers.  The  huge  propor7on  of  respondents  that  stated  these  new  channels  suggests  that  it  is  an   opportunity  recognised  across  the  industry  and  across  the  world.  We  expect  to  see  a  lot  more  innova7on  in  this  space   in  2011  and  beyond.
  • 118.
    SecOon  15:     Next  Big  Thing  in  Travel  Distribu.on  &  Marke.ng
  • 119.
    What  the  industry  feels  the  next  new  thing  in  travel  distribu(on  and  marke(ng  is…   Echoing  the  above  results,  the  next  new  thing  is  expect  to  be  mobile.  It  is  clearly  the  most  dominant  theme  amongst   all  respondents.  Social  is  s7ll  there  and  certainly  not  considered  old  hat!  But  mobile  is  really  expected  to  be  growing  in   significance  for  travel  companies  across  the  globe.  Loca7on  based  marke7ng,  social  media,  mobile  apps…  perhaps  the   next  core  theme  will  towards  integra7on.                   …  what’s  next?!   Find  out  in  the  next  edi,on  of  the  Travel  Distribu,on  &  Marke,ng  Barometer
  • 120.
    To  join  our  research  panel  please  email  Tim  Gunstone:  (m@eyefortravel.com