2011 Global Travel Agent GDS Media Research Study - TravelClick

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2011 Global Travel Agent GDS Media Research Study - Contains notable key trends and statistics about GDS bookings globally

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2011 Global Travel Agent GDS Media Research Study - TravelClick

  1. 1. 2011 Global Travel AgentGDS Media Research StudyPrepared forDecember 14, 2011
  2. 2. Agenda Overview • Objectives • Methodology • Travel Agent and Agency Summary Detailed Findings • GDS Channel: Performance and Usage • Economic Conditions Impacting Agent Behavior • Influencing Agent and Traveler Behavior • Pricing and Rate Usage • GDS Advertising Impact • Questions and Answers2011 Global Travel Agent GDS Study 1
  3. 3. Objectives The primary purpose of this market research study is to measure travel agent awareness of specific GDS media… promotional messages. Secondary objectives focus on… • Evaluating the frequency with which travel agents use GDS marketing tools. • Determining how GDS media is used in conjunction with other materials and information sources available to travel agents. • Developing a profile of the travel agents and agencies participating in the survey.2011 Global Travel Agent GDS Study 2
  4. 4. Algeria Australia Methodology Bangladesh Belarus • TravelClick provided Phoenix Marketing International Brazil Canada (PMI) with a list of global travel agents that subscribe Denmark to one of the four major GDS systems. France Germany • Travel agents from the twenty-five countries listed Hungary (and the United States) responded to the survey. India Italy • An incentive of a $5 Amazon.com gift certificate was Kenya offered to each respondent participating in the study. Mexico Portugal In addition, one respondent was randomly chosen South Africa and awarded a $500 Amazon gift certificate. Spain Sweden Switzerland Thailand Trinidad & Tobago Tunisia Ukraine United Arab Emirates United Kingdom2011 Global Travel Agent GDS Study 3
  5. 5. Methodology A total of 495 online surveys representing the four GDS companies were completed as shown below… Americas EMEA Asia/Pacific Total Travel Agents Amadeus 39 38 11 88 Galileo 72 67 70 209 Sabre 96 15 0 111 Worldspan 74 10 3 87 281 130 84 495 Americas EMEA Asia/Pacific Overall Number Travel 281 130 84 495 Total Agent Interviews Statistical Accuracy +4.9 points +7.2 points +9.0 points +3.7 points Confidence Level 90% 90% 90% 90% The data in this report has been weighted to reflect the distribution of Amadeus, Galileo, Sabre and Worldspan Global Distribution Systems. The findings that you will see on the following pages are among Total Travel Agents, Travel Agents in the Americas, EMEA and Asia/Pacific regions.2011 Global Travel Agent GDS Study 4
  6. 6. Travel Agent Summary The typical travel agency... Americas EMEA Asia/Pacific Number Full-time Travel 6.6 8.2 14.5 Agents Employed Number GDS Terminals 7.5 7.1 9.3 Is most likely to be an 71% 59% 44% independently owned agency Average number of years 23 16 13 as a travel agent Normally work at the 72% 86% 88% agency site2011 Global Travel Agent GDS Study 5
  7. 7. Travel Agency Summary The typical travel agency has the following mix of business… Americas EMEA Asia/Pacific Percent Business Business 40% Business 29% Business/ Leisure Leisure 54% 46% 60% Leisure Leisure 71% Top-three USA 44% Europe 38% A/P/Australia 47% Destinations 16% Europe 19% A/P/Australia Europe 19% by Sales Volume Canada/Mexico 15% USA 15% USA 13% Average Sales $3.2MM $3.1MM $2.2MM Volume2011 Global Travel Agent GDS Study 6
  8. 8. The GDS Channel Performance and Usage2011 Global Travel Agent GDS Study 7
  9. 9. GDS | Historical Performance Hotel Bookings (in millions) 55 53 53 51 50 49 49 49 47 47 46 46 44 40 41 35 30 26 20 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2011 YTD YE EstSource: TravelClick eMonitor, Q3 2011.2011 Global Travel Agent GDS Study 8
  10. 10. GDS | Performance by Country 2011 Q3 2010 Q3 $2.5 $2.3 $376 $321 (In Millions)(In Billions) $219 $176 $158 $154 $162 $133 $130 $116 $103 $83 $82 $68 $64 $57 $43 $37 $10 $9 US UK Germany Canada France Australia Spain Italy China India GreeceSource: TravelClick eMonitor, Q3 2011.2011 Global Travel Agent GDS Study 9
  11. 11. Reservation Channel Usage in Past Two Years Among Travel Agents GDS Platforms Use More Same Use Less 100% 16% 11% 12% 18% 80% 35% 47% 60% 49% 55% 40% 53% 20% 42% 35% 27% 0% Total Agencies Americas EMEA Asia/Pacific Compared to two years ago, 85% of global travel agencies said that they were using their GDS platform more often or same than in the past.Q. Compared to two years ago, would you say that you are using the following reservations channels more, about the same, or less?2011 Global Travel Agent GDS Study 10
  12. 12. Reservation Channel Usage in Past Two Years Among Travel Agents GDS Shopping Displays Use More Same Use Less 100% 20% 26% 36% 33% 80% 60% 48% 54% 35% 36% 40% 20% 27% 28% 32% 25% 0% Total Agencies Americas EMEA Asia/Pacific 85% of global travel agencies stated they were using the GDS Shopping Displays more often or same than in the past.Q. Compared to two years ago, would you say that you are using the following reservations channels more, about the same, or less?2011 Global Travel Agent GDS Study 11
  13. 13. Economic Conditions Impacting Agent Behavior2011 Global Travel Agent GDS Study 12
  14. 14. Frequency of Booking Lower Category Hotels Due to Client Requests Based on Economic Conditions Around the World More Often About the Same Less Often 100% 22% 19% 22% 30% 80% 60% 37% 43% 24% 37% 40% 47% 20% 41% 38% 41% 0% Total Agencies Americas EMEA Asia/PacificQ. Would you say you are doing each of the following more often, less often or about the same?2011 Global Travel Agent GDS Study 13
  15. 15. Frequency of Influencing Clients Hotel Selection In Search of a Deal Regardless of Whether-or- Not a Negotiated Rate Exists for Client Based on Economic Conditions Around the World More Often About the Same Less Often 100% 11% 7% 12% 21% 80% 35% 35% 40% 60% 33% 40% 54% 58% 46% 48% 20% 0% Total Agencies Americas EMEA Asia/PacificQ. Would you say you are doing each of the following more often, less often or about the same?2011 Global Travel Agent GDS Study 14
  16. 16. Frequency of Offering BAR Rates or Promotional Rates To Customers Who Have Negotiated Rates at the Time of Booking Based on Economic Conditions Around the World More Often About the Same Less Often 100% 24% 21% 25% 80% 40% 60% 53% 41% 49% 40% 40% 20% 34% 28% 26% 21% 0% Total Agencies Americas EMEA Asia/PacificQ. Would you say you are doing each of the following more often, less often or about the same?2011 Global Travel Agent GDS Study 15
  17. 17. Influencing Traveler and Agent Behavior2011 Global Travel Agent GDS Study 16
  18. 18. Percent of Time Client / Travel Agent Select / Recommend Hotel When Booking for 1-3 Nights The client relies solely on your advice Specifies a specific rate / price and allows you to help guide them through which of those properties to choose Specifies a specific hotel regardless of rate 100% 22% 19% 17% 23% 80% 34% 33% 36% 43% 60% 40% 20% 44% 44% 45% 40% 0% Total Agencies Americas EMEA Asia/PacificOverall agents influence the traveler’s selection of a hotel 78% of the timeQ. When booking a hotel for 1 - 3 nights, what percentage of the time would you say the client…?2011 Global Travel Agent GDS Study 17
  19. 19. Percent of Time Client / Travel Agent Select / Recommend Hotel When Booking for 4+ Nights The client relies solely on your advice Specifies a specific rate / price and allows you to help guide them through which of those properties to choose Specifies a specific hotel regardless of rate 100% 22% 23% 21% 20% 80% 60% 34% 33% 35% 42% 40% 20% 43% 44% 44% 39% 0% Total Agencies Americas EMEA Asia/PacificOverall agents influence the traveler’s selection of a hotel 77% of the timeQ. When booking a hotel for 4 nights or more, what percentage of the time would you say the client…?2011 Global Travel Agent GDS Study 18
  20. 20. Factors Influencing Decision to Act on a Promotional Message Among Those Aware of GDS Promo Messages Amenities and Offers Gearing Toward the Traveler 68% 73% 59% 48% Total Agencies Americas EMEA Asia/PacificTwo-thirds (68%) of global travel agents indicated that amenities and offers gearedtoward the traveler influence their decision to act on a promotional message.Q. What factors influence your decision to act on a promotional message.2011 Global Travel Agent GDS Study 19
  21. 21. Factors Influencing Decision to Act on a Promotional Message Among Those Aware of GDS Promo Messages Offers Gearing Toward the Travel Agent 68% 51% 56% 48% Total Agencies Americas EMEA Asia/PacificHalf (51%) of global travel agents stated that offers geared toward travel agentsinfluenced their decision to act on a promotional message.Q. What factors influence your decision to act on a promotional message.2011 Global Travel Agent GDS Study 20
  22. 22. Creating Value in the GDS Top Travel Agent Agent Rewards Points/Agent Loyalty Programs 69% Incentives Increased Commission (for you personally) 55% Free Night Stay 52% Travel Agent Value Free Breakfast/Meals 83% Recommendations Free Internet 71% Free Upgrade 68% Free Night Stay 54% Star Rating/Consumer Review Rating 46% Top Hotelier Value Free Internet 66% Drivers New Televisions 42% iPod Docking Stations 20%2011 Global Travel Agent GDS Study 21
  23. 23. Pricing and Rate Usage2011 Global Travel Agent GDS Study 22
  24. 24. Importance of GDS Offering Rate Parity Not at All/Not Very Somewhat Very 100% 80% 60% 81% 85% 81% 95% 96% 96% 40% 20% 14% 15% 11% 5% 4% 4% 0% 2011 Survey 2009 Survey 2007 SurveyHistorical survey data shows that travel agents across the globe continue tobe virtually unanimous in their belief that GDS systems should offer rate parity.Q. How important is it to you to know that the GDS can offer rate parity (Very important, somewhat important, not very important, not at all important)?2011 Global Travel Agent GDS Study 23
  25. 25. Percent of Time Offer Clients a Lower Priced Room When Looking to Book a Corporate Negotiated Rate 60% 56% 53% 2011 Survey 2009 Survey 2007 SurveyOn average, over 56% of the time, travel agents will offer their clients a lowerpriced room even when booking a corporate negotiated rate.Q. When looking to book a corporate negotiated rate hotel, what % of times do you offer clients a lower priced room when you find an alternative hotel priced lower than a negotiated corporate rate hotel?2011 Global Travel Agent GDS Study 24
  26. 26. GDS Advertising: Awareness & Impact2011 Global Travel Agent GDS Study 25
  27. 27. Awareness of GDS Promotional Messages 75% 69% 57% 60% Total Agencies Americas EMEA Asia/PacificSeven-out-of-ten global travel agents (69%) are aware of the GDS promotionalmessages.Q. When researching air, hotel or car availability for your clients, do you recall seeing a promotional message at the top of the screen known as Text Banners, Headlines, Value Alerts?2011 Global Travel Agent GDS Study 26
  28. 28. Among Those Aware of GDS Promo Messages 47% (nearly half) made a North American booking in the past three months as a result of a promotional message. 44% made a Non-North American booking in the past three months as a result of a promotional message. 69% of global travel agencies are likely to book a hotel that is shown in a promotional message during a query of air travel research. 66% request additional information about a specific promotion by looking at the screen referenced in the promotion.2011 Global Travel Agent GDS Study 27
  29. 29. Promotional Messages Steer Travel Agents to Book Negotiated Rate of Hotel in Promo Message when Searching for Hotel Negotiated Rates Among Those Aware of GDS Promo Messages 71% 67% 57% 52% Total Agencies Americas EMEA Asia/Pacific57% of global agencies said YES promotional messages steer them to book thathotel’s negotiated rate.Q. When searching for negotiated rates in a hotel availability list and you see a promotional message for a hotel, does that promotional message steer you to book the negotiated rate of the hotel in the promo message?2011 Global Travel Agent GDS Study 28
  30. 30. Option that Best Prompts Booking of Hotel When Researching Hotel for Negotiated Rates Among Those Aware of GDS Promo Messages Promotional Message Shown at the Bottom or Top of the Screen Best Available Rate Offered by the Hotel Even if its Not a Negotiated Rate Only Book a Hotel that has the Negotiated Rate 100% 5% 8% 11% 17% 80% 60% 83% 88% 71% 77% 40% 20% 17% 9% 7% 5% 0% Total Agencies Americas EMEA Asia/Pacific83% of global travel agencies feel that showing the best available rate offered by thehotel even is it not a negotiated rate is the best way to get them to book a hotel whilethey are researching a hotel.Q. When researching hotel for negotiated rates, which of the following best prompts you to book a hotel?2011 Global Travel Agent GDS Study 29
  31. 31. Details in Display Messages that Lead to Making a Hotel Booking Percent Saying “Most Important” Among Those Aware of GDS Promo Messages Total Agencies 45% Ensure Promotion Shows a Rate that I Can Actually Book for the Dates Searching for 17% Ensure Promotion Only Shows the Destination Searching For 11% Ensure Promotion Shows the Hotel’s GDS Property ID 13% Ensure Promotion Includes Information on Amenities, Travel Agent Incentives and Other Add-ons in Addition to Price 13% Ensure Promotion Offers a Value Greater the Hotels Standard Available Rates – Be CompetitiveQ. What details in a GDS promotional message help lead you to making a hotel booking when you first see the ad?2011 Global Travel Agent GDS Study 30
  32. 32. Questions and Answers2011 Global Travel Agent GDS Study 31
  33. 33. Thank You. If you are interested in learning more about purchasing GDS Media Advertising for your property, please contact your local Director of Sales. If you do not have a Director of Sales, please contact a TravelClick representative at GDSMedia@travelclick.com.2011 Global Travel Agent GDS Study 32

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