Travel Distribution and Marketing Barometer May 2011

8/6/2019 Travel Distribution and Marketing Barometer May 2011

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TravelDistribu.on&Marke.ngBarometer

Edi.on1

May2011


2/120

AbouttheTravelDistribu.on&Marke.ngBarometer

EyeforTravelconductedaglobalsurveyamongstkeytravelexecu7vesinJanuarytoFebruary2011withtheaimof

inves7ga7ngdistribu7onandmarke7ngperformanceandperspec7vesforthequarter.Thisisthefirstedi7onofthe

TravelDistribu7on&Marke7ngBarometer.Itsintendedtobeanongoingresearchstudydesignedtoactasa

barometerfortheglobaltravelindustryandprovidericherintelligencetoenableagreaterunderstandingofcurrent

andfuturedistribu7onandmarke7ngtrends.Anonlinesurveywillcon7nuetobeconductedtogatheruptotheminuteopinionsandtrackac7vi7esoftravelcompanies.Theresultswillproduceinvaluabledataandallowa

consistentandcompara7veanalysisoftrendsacrosssectorsandregions.

Thisedi7onwascompletedby550differenttravelsuppliersandintermediariesvaryinginsizeandsectoracrossthe

world.Belowwecanviewthenumberofcompaniesthatrespondedfromeachcountryinvolvedinordertohelp

understandtheweigh7ngofourresults.Itisevidentthatsomeregions(suchasAfrica)areweakerintermsofvolumes

andwewanttopointoutthatthefindingsforthisregionpar7cularlyshouldbereferredtoasinteres7ngbutinsight

ratherthanasoundsta7s7calrepresenta7on.

UnitedStates

UnitedKingdom

India

Australia

China

Singapore

Spain

Netherlands

Greece

France

Germany

Thailand

Italy

Brazil

Indonesia

RussianFederation

SwitzerlandIreland{Republic}

Norway

Portugal

Belgium

Japan

Malaysia

Philippines

Argentina

Bulgaria

Colombia

Cyprus

Denmark

Malta

NewZealand

Turkey

AfghanistanAustria

Bangladesh

Canada

Chile

Lithuania

Mauritius

Nepal

Pakistan

SriLanka

Barbados

CostaRica

Croatia

Fiji

Finland

Hungary

KoreaSouth

Mexico

Slovenia

Sweden

Taiwan

Tanzania

UnitedArabEmirates

Uzbekistan

0 38 75 113 150

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2

2

2

2

2

2

2

2

22

3

3

3

3

3

3

4

4

5

5

5

5

6

6

67

7

7

7

9

11

11

11

18

20

22

23

23

33

59

67

117

WhatcountryareYOUbasedin?


3/120

Thefirstchartbelowexplainstheinvolvementofourrespondentsgloballyintermsofgeographicalregions.For

example,56%ofcompaniesinvolvedinoursurveyhaveofficesinWesternEurope.

Thissecondchartindicatestheactualmarketresponsibilityofourrespondentsandwhilewerefertothespecific

loca7on(country)inwhicharespondentispermanentlybased(above),wearealsointerestedintheregionstheyare

responsiblefortarge7ngonthebasisthatthisislikelytoinfluencetheirac7vi7esandperspec7ves.Wecanseebelow

forexamplethat40%aretarge7ngWesternEuropeanmarketswhereas56%haveofficesinthatregion(above),but

also35%selectedglobalwhichwouldincludeallmarkets.Overall,oursurveyresultspresentagoodrepresenta7on

forallregionsthroughouttheworldwhichhasallowedustoofferourreadersaveryinteres7ngpictureglobally.

Global

WestEurope

EastEurope

NorthAmerica

LatinAmerica

Asia/Pacific

Australia/NewZealand

MiddleEast

Africa

0% 10% 20% 30% 40%

9%

14%

16%

28%

13%

31%

22%

40%

35%

Whichregions/marketsisTHEOFFICEYOUAREREPRESENTINGresponsiblefortargeting?

WestEurope

EastEurope

NorthAmerica

LatinAmerica


Asia&Pacific

MiddleEast

Africa

0% 15% 30% 45% 60%

15%

21%

43%

26%

20%

45%

25%

56%

Doesthecompanyyourepresenthaveofficesinanyofthefollowingregions(includingyourown)?


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Contents

Secon1: Distribu(onChannels

Secon2: OnlinePenetra(onforsuppliers)

Secon3: DirectvsIndirectDistribu(onforsuppliers)

Secon4: CurrentSen(mentTowardstheOTA-SupplierPartnership

Secon5: SourcesofOnlineTrafficInTravelSecon6: Marke(ngChannels

Secon7: Marke(ngBudgets

Secon8: OnlineMarke(ngAc(vi(es-WhatsWorking

Secon9: SocialMediaPar(cipa(on

Secon10:Mobile

Secon11:NextQuarterBudgets

Secon12:BiggestChallenges

Secon13:WhatHasTheIndustryLearntRecently?

Secon14:BiggestOpportuni(esIden(fied

Secon15:NextBigThinginTravelDistribu(on&Marke(ng

IfyoudliketojoinourresearchpanelpleasecontactTimGunstone:[email protected]
mailto:[email protected]:[email protected]


5/120

Secon1:Distribu.onChannels


6/120

Distribu.onChannels

BookingChannels

Figurexanalyseschannelsforbookings(volumes)overthelastquarterrepresen7ngtherespondentsofoursupplier

focussedsurvey.2%haveexperiencedanincreaseinbookingsdirectfromtheirwebsiteswithonlyasmallpropor7on

registeringadecline(5%).Bookingsdirectviavoice/callcentrehavedeclinedfor20%ofrespondentsandincreasedfor

29%.42%havenotexperiencedanychangefromthischannel.30%haveexperiencedanincreaseinbookingsvia

mobiledevice,52%havenothadbookingsatallviathischannel.4%havehadanincreaseinbookingsfrom3rd

par7es,31%fromGDS/agencyand24%fromtouroperators.

Figure1:Haveyourbookings(volumes)generatedviathefollowingchannelsincreasedordecreasedoverthelast3

months(fromthepreviousquarter)?

Inthechartsbelowwehavethenexploredourdatabasedontheregionsthatrespondentsareresponsibleforinorder

toinves7gateanyinteres7ngtrendsgeographically.Directdistribu7onfromtheirwebsitesshowsnomajorvaria7ons.

Themajorityhaveexperiencedanincreaseacrossallregions.Thoserepresen7ngLa7nAmericaregisterthehighest

numberofrespondentswithanincreaseat9%.Itclearthatinallmarkets,companieshaveeitherhadanincreasein

bookingsdirectfromtheirwebsitesorthevolumeshavestayedthesame.Thelargestdeclineacrossallregionsis

bookingsfromtouroperators.TheGDS/agencychannelcloselyfollowsbuts7llaroundaquarterofrespondentsin

mostregionshaveexperiencedanincreasefromthischannel.

3rdpartyinternetchannelshavebeengenera7ngmorebookingsformostregionsaswell.Mostarehoveringaround

the50%markexceptLa7nAmericawhere36%ofrespondentshaveseenanincrease.Fewercompaniesfromthose

represen7ngAustralia/NZhaveexperiencedadeclinefromtheseindirectchannelsincomparisonstothermarkets.

Thoserepresen7ngNorthAmerica,AfricaandtheMiddleEastseemtohavebeenhavingthemostac7vityintermsof

mobilebookings.ForNorthAmericaforexample,3%ofrespondentshaveseenanincreaseinbookingsdirectfromamobiledevice.NorthAmericahavealsoregisteredalargerpropor7onwithanincreaseinbookingsviavoice/call

centre(31%).Thebiggestdeclineisfromthoserepresen7ngEasternEurope(24%).

Increased Aboutthesamevolume Decreased Nobookingsviathischannel

Directfromyourwebsite

Directviavoice/callcentre

Directfromamobiledevice

ThirdpartyInternetchannel(egOTA)

GDS/agency

Touroperator

0% 25% 50% 5% 100%

15%

15%

10%

52%

10%

2%

22%

19%

9%

2%

20%

5%

39%

36%

35%

16%

42%

22%

24%

31%

47%

30%

29%

72%


7/120

BookingChannelsByRegion

WesternEurope

EasternEurope

NorthAmerica


Touroperator

GDS/agency




0% 25% 50% 75% 100%

14%

55%

9%

16%

16%

1%

20%

2%

11%

22%

25%

7%

44%

16%

35%

38%

34%

22%

22%

27%

45%

24%

25%

71%

%ofrespondentsrepresentingWesternEurope

Increased Aboutthesamevolume Decreased Nobookingsviathischannel


Touroperator

GDS/agency




0% 25% 50% 75% 100%

11%

46%

12%

18%

16%

0%

14%

1%

11%

21%

29%

4%

44%

16%

39%

38%

34%

20%

31%

37%

38%

22%

21%

76%

NorthAmerica


Touroperator

GDS/agency




0% 25% 50% 75% 100%

12%

50%

13%

18%

16%

0%

24%

1%

8%

16%

25%

8%

46%

20%

28%

40%

29%

20%

18%

29%

51%

26%

30%

72%

EasternEurope


8/120


AsiaPacific

Africa


Touroperator

GDS/agency




0% 25% 50% 75% 100%

7%

47%

3%

10%

13%

0%

17%

0%

10%

23%

27%

7%

57%

17%

33%

50%

33%

17%

20%

37%

53%

17%

27%

77%

Africa


Touroperator

GDS/agency




0% 25% 50% 75% 100%

9%

48%

5%

15%

9%

1%

19%

3%

11%

20%

21%

3%

46%

19%

34%

36%

38%

27%

26%

30%

49%

29%

32%

69%

APAC

Increased About the same volume Decreaed No bookings via this channel


Touroperator

GDS/agency




0% 25% 50% 75% 100%

14%

53%

14%

17%

10%

0%

14%

2%

3%

19%

29%

0%

47%

16%

36%

38%

29%

22%

26%

29%

47%

26%

31%

78%

Australia/NZ


9/120

La.nAmerica

MiddleEast

BookingChannelsByCompanySector

Consideringmovementsinbookingschannelsbasedoncompanysectorwecanseethatthereareagainnomajor

trendsinthiscategorybetweensectors,exceptthatalargerpropor7onofDMCs/tourismboardshaveexperiencedadecline(2%)inbookingsdirectfromtheirwebsite.Cruise,CarRentalandAirlinehaveregisteredthelargest

propor7onswithanincreaseat5%,5%and3%respec7vely.

Therearemorevaria7onsbetweensectorswhenlookingatbookingsviavoice/callcentre.50%ofCruisehave

registeredanincreasefromthischannel,butontheotherhand50%haveregisteredadeclinesothereiscertainly

somemovementinthissectorandvaryingtrendsbetweencompanies.Itisclearthatalthoughthischannelis

decliningforanumberofcompaniesacrossallsectors,suchas21%ofHotelandOtherAccommoda7on,andaquarter

ofCarrentalcompanies,itiss7llanac7vechannelforbookings.

Bookingsviamobiledevicesarenotcommoninanysector,apartfromperhapsCarRentalwhereonly13%of

respondentshavereceivednobookingsfrommobileatall.CarRentalareevidentlythemostac7veinthemobile

spaceatthemomentandahuge5%ofrespondentshaveexperiencedanincreasefromthischannel.Hoteland

Airlinearealsofaringwellwith32%and35%respec7velyregisteringanincreaseinmobilebookingswhichis

significant.ThelargestdeclineisintheDMC/tourismboardcategory.


Touroperator

GDS/agency




0% 25% 50% 75% 100%

15%

54%

15%

18%

18%

3%

15%

0%

10%

23%

33%

3%

46%

18%

38%

41%

26%

15%

23%

28%

36%

18%

23%

79%

LatinAmerica


Touroperator

GDS/agency




0% 25% 50% 75% 100%

12%

48%

10%

20%

14%

2%

16%

4%

10%

18%

28%

6%

52%

14%

36%

38%

28%

22%

20%

34%

44%

24%

30%

70%

%MiddleEsst


10/120

DirectfromWebsite


Directfrommobiledevice

Touroperator

Otheraccommodation

Hotel

DMC/tourismboard

Cruise

CarRental

Airline

0% 25% 50% 75% 100%

4%

0%

0%

18%

5%

25%

8%

15%

25%

50%

18%

21%

21%

15%

62%

63%

0%

55%

41%

33%

46%

19%

13%

50%

9%

32%

21%

31%

%ofrespondents

Touroperator

Otheraccommodation

Hotel

DMC/tourismboard

Cruise

CarRental

Airline

0% 25% 50% 75% 100%

0%

0%

0%

0%

1%

4%

2%

8%

0%

0%

27%

2%

13%

6%

19%

25%

25%

9%

22%

13%

25%

73%

75%

75%

64%

74%

71%

67%

%ofrespondents

Increased About the same volume Decreased No bookings via this channel

Touroperator

Otheraccommodation

Hotel

DMC/tourismboard

Cruise

CarRental

Airline

0% 25% 50% 75% 100%

46%

13%

50%

55%

52%

62%

52%

0%

0%

0%

18%

2%

4%

2%

19%

13%

25%

18%

14%

17%

23%

35%

75%

25%

9%

32%

17%

23%

%ofrespondents


11/120

Thirdpartyinternetchannel(egOTA)

GDS/Agency

TourOperator

Touroperator

Otheraccommodation

Hotel

DMC/tourismboard

Cruise

CarRental

Airline

0% 25% 50% 75% 100%

4%

0%

25%

18%

1%

21%

29%

12%

38%

25%

0%

6%

13%

8%

27%

25%

25%

36%

39%

17%

27%

58%

38%

25%

45%

54%

50%

37%

%ofrespondents


Touroperator

Otheraccommodation

Hotel

DMC/tourismboard

Cruise

CarRental

Airline

0% 25% 50% 75% 100%

8%

13%

0%

9%

7%

25%

29%

19%

25%

0%

18%

24%

21%

6%

39%

50%

50%

27%

35%

33%

40%

35%

13%

50%

45%

34%

21%

25%

%ofrespondents

Otheraccommodation

Hotel

DMC/tourismboard

Cruise

CarRental

Airline

0% 25% 50% 75% 100%

12%

13%

0%

27%

6%

46%

12%

38%

0%

18%

32%

13%

42%

50%

50%

18%

42%

17%

35%

0%

50%

36%

19%

25%

%ofrespondents


12/120

Secon2:OnlinePenetra.on(forsuppliers)


13/120

OnlineDistribu.onPropor.onsforSuppliers

Overthelastquarterandacrossallcompaniesglobally,theaveragepropor7onoftotalbookingvolumesthattravel

suppliersdistributedviaonlinechannelswas41%.Asexpectedtheextentofonlinedistribu7onvariesamongst

respondents.Whilepar7cipantswereaskedapproximatepropor7onstothenearestpercent,wehavegroupedthe

propor7onsintorangestomakeiteasiertoiden7fytrends.

Withreferencetothechartbelowwecanseethat%ofrespondentsdistributedbetween91%and100%viaonline

channelsand9%intherangeof6%to90%.Thatresultsin16%oftravelsuppliersdistribu7ngoveroftheir

productsviaonlinechannelsinthelastquarter.19%ofcompaniesdistributedbetween50%and5%online,and21%

between30%to49%online.Thelargestgroupat29%sitwithin11%to29%range.Itisrevealedthat14%relyheavily

onofflinechannelswithlessthan10%oftheirproductvolumesoldonline,butwecanseeclearlyinthegraphthata

largepropor7onhavenowshiedover50%oftheirproductdistribu7ononline.

Approximatelywhatproporon(%)ofyourtotalbookings(volume)weredistributedviaonlinechannelsoverthe

last3months?

Lookingfurtherintothedatawehaveconsideredthevaria7onsbasedonsomeofthetoptravelmarketslookingat

Europespecificallyagainstsomeotherkeyglobalmarkets.Thetoptravelmarketsrefertothespecificcountryinwhich

therespondentisbased.Thetopband(91%to100%)ismostdominantamongstUKrespondents.Asignificant21%

fallwithinthisrange.Germany(1%),China(%),Spain(6%)andtheUS(2%)havealsoindicatedhighdominanceof

onlinechannelsfortheirbusinesses.Ontheotherendofthescale,Chinaindicatesthedominanceofofflinechannels

with40%distribu7nglessthan10%oftheirproductvolumeonline.35%ofAustralianrespondentsand2%ofIndian

respondentsalsofallwithinthisrange.TheUKillustratesarela7velyevenspreadofonlinedistribu7onpropor7onsbut

edgingonthehigherbandsofover50%.SpainisnottoodissimilartotheUKbutwithalargergroupwithinthe30%to

49%range.GermanyandFrancearedominatedbycompaniesinthe11%to29%range,Germanyalsoincludes1%at

thetopendofthescale,butneitherarerepresen7ngcompanieswithverylowonlinedistribu7onlevels.Italyveryevenlyfallswithinthemiddlerangesbutwithacompara7velyhighpropor7onamongstthe6%to90%.

7%

9%

19%

21%

29%

14%

91%-100%

6%-90%

50%-5%

30%-49%

11%-29%

Lessthen10%

0%

25%

50%

75%

100%

UKSpain

Germany

France

Italy

India

China

Brazil

Australia

UnitedStates

2%

0%0%

7%

0%0%0%

17%6%

21%6%

0%0%

13%

6%

33%

0%0%

13%

11%28%

18%

0%0%

9%

33%

25%

33%19%

24%

31%

29%

0%0%

24%

33%

25%

0%

31%

18%

20%

18%

100%

40%

33%

0%

50%50%25%18%

13%

35%

0%

40%

27%

0%0%0%6%8%

Less then 10%

11% - 29%

30% - 49%

50% - 75%

76% - 90%

91% - 100%


14/120

Whilstitisimportanttoconsidertheloca7onwherethecompanyisbased,moreimportantlyitisrelevanttoconsider

wherethemajorityoftheircustomerscomefromasitisthelevelofonlinepenetra7onintheirsourcemarketsand

specificcharacteris7csthatmayhavearealinfluenceontheresults.Itmusthoweverberealisedthattheresultswill

besomewhatskewedasthisisnotdatainrela7ontothatspecificmarketonly,butindica7ve.Forexample,thosewho

aredistribu7ngpredominantlytoAfricaaresellingbetween11%and29%viaonlinechannels.Ofthosedistribu7ng

predominantlytotheMiddleEast,21%sell90%viaofflinechannels.

Propor.onDistributedOnlineBasedOnWhereMajorityOfCustomerComeFrom

0%

25%

50%

5%

100%

WestEurope

EastEurope

Asia/Pacific

North

America

Latin

America

Africa


MiddleEast0%

9%

0%0%

2%4%2%8% 3%

7%

0%

4%9%11%9%10%

10%

13%

0%

12%18%

7%14%

14%28%

29%

0%

27%

26%21%28%

23%

38%

29%

100%

46%

29%

42%

26%30%

21%

14%

0%

12%15%15%

21%

14%

Lessthen10%

11%-29%

30%-49%

50%-5%

6%-90%

91%-100%


15/120

Secon3:DirectvsIndirectDistribu.on

(forsuppliers)


16/120

DirectvsIndirectDistribu.on(Suppliers)

Travelsuppliersdistribu7ngtheirproductonlineeithersellviadirectchannelsorviaanintermediary(indirect).Inthis

surveyofallsupplierscombinedgloballytheaveragepropor7onofdirectdistribu7onis49%.Thechartbelow

indicatesthevaria7oninonlinedistribu7onpaernsamongstrespondentsforexample14%ofrespondentsare

distribu7nglessthan10%oftheironlinesalesthroughdirectchannels,whichmeans90%issoldviaanintermediary.26%ofallrespondentsaredistribu7ngoveroftheironlinesalesdirect.Whenaskedwhattheiridealpropor7onof

directsaleswouldbe,thisaveragedat62%

Propor.onofrespondentsinthedirectdistribu.onpropor.oncategories

Propor.onofrespondentsintheindirectdistribu.onpropor.oncategories

Whilstthefiguresbelowshouldmatchneatlywiththefiguresabovetheremaybesomediscrepancyhereasitwas

leuptotherespondentstobeasaccurateaspossible.

Whatwecandeducefromthedataisthattravelsuppliersarenoten7relyreliantononlineintermediariesfortheir

saleswhilsttheyareclearlyplayingasignificantroleforthesuppliers.

0%

8%

15%

23%

30%

Lessthen10%

11%-29%

30%-49%

50%-75%

76%-90%

91%-100%

7%

19%

24%

20%

17%

14%

% of repondents

0%

8%

15%

23%

30%

Less

then

10%

11%

-29%

30%

-49%

50%

-75

%

76%

-90%

91%

-100%

3%

10%

26%

17%

23%

20%

%ofrespondents


17/120

AtudesTowardsDirectvsIndirectDistribu.on

Thebarometerislookingtounderstandthesen7mentofthetravelindustryduringthelastquarter.Itlookstohave

beenagenerallyposi7vequarterforonlinesaleswith28%feelingthattheirdirectonlinesaleswerebeerthanthey

expectedand26%forindirectsales.Bothdirectandindirectsaleswereasexpectedforthemajorityofrespondents,

44%and4%respec7vely.9%ofrespondentswereextremelyposi7vesta7ngthattheirdirectsalesweremuchbeer

thanexpectedand8%forindirectsales.Thoseonthenega7veendofthescaleamountedto18%inrela7ontodirectand1%forindirectsales.Onlyasmallpropor7onstatedeitheronlinechannelwasmuchworsethanexpected.

Howdoyoufeelabouttheresultsofyourdirectandindirectsalesoverthelastquarter

Theroleofonlineintermediariesinthedistribu7onoftravelsupplierproductsisclearlysignificant.Overhalfofall

respondentsstatethatindirectonlinechannelshavebeenextremelyorveryimportanttotheircompanyinthelast3

months.Alsoaddingthoserespondentsthatconsiderindirectchannelsimportantitresultsin85%ofrespondents.

Whilstsuppliersareaimingtodistributeahigherpropor7onofonlinesalesviadirectchannels,itisclearthat

intermediariesareratesasachannelbymost.4%haveincreasedthenumberofonlinethirdpartydistribu7on

channelsthattheyhaveworkedwithoverthelastquarterand44%aremaintainingthesamenumber.Just6%have

reducedthenumberofpartnersand4%didnotworkwithanyatall.

PleaseratebelowhowimportantINDIRECTonlinechannelshavebeentoyourcompanyinthelast

3months

Direct Indirect

MuchbetterthanIexpected

Betterthanexpected

Asexpected

Worsethanexpected

Muchworsethanexpected

Nonedistributedviathischannel

0% 13% 25% 38% 50%

2%

2%

15%

47%

26%

8%

1%

3%

15%

44%

28%

9%

Extremelyimportant

Veryimportant

Important

Neitherimportantnorunimportant

Notimportant

0% 10% 20% 30% 40%

4%11%

32%

34%

19%

% of respondents


18/120

Hasthenumberofonline3rdpartydistribu.onchannelsyouveworkedwithincreasedor

declinedinthelast3monthscomparedtothepreviousquarter?

Consideringthedifferenttravelsectors,Cruisearethemostreliantuponindirectchannelsforonlinedistribu7onwith

50%ra7ngthemextremelyimportant.Incomparisononly8%ofairlinesstatedthemextremelyimportantbuta

further38%ratethemveryimportant.Theaccommoda7onsectorratethemhighlywithHotelresul7ngin61%of

respondentsra7ngindirectchannelseitherextremelyorveryimportant.13%oftheOtherAccommoda7onsectorrate

indirectchannelsasnotimportantwhichcouldperhapsbeinrela7ontothetypeorsizeofinventory.Indirect

channelsarelessrelevantforDMCs/tourismboardswhichisunderstandablebasedonthenatureoftheirproduct.

PleaseratebelowhowimportantINDIRECTonlinechannelshavebeentoyourcompanyinthelast

3months

Increased

Aboutthesamevolume

Declined

Wedidnotworkwithany

0% 13% 25% 38% 50%

4%

6%

44%

47%

%ofrespondents

Suppliers

Touroperator

Otheraccommodation

Hotel

DMC/tourismboard

Cruise

CarRental

Airline

0% 25% 50% 75% 100%

4%

0%

0%

18%

0%

13%

10%

8%

25%

0%

0%

7%

21%

17%

42%

13%

25%

36%

32%

21%

37%

39%

38%

25%

36%

39%

25%

19%

8%

25%

50%

9%

22%

21%

17%

%ofrespondents

Extremely important Very important Important Neither important nor unimportant Not important


19/120

Hasthenumberofonline3rdpartydistribu.onchannelsyouveworkedwithincreasedor

declinedinthelast3monthscomparedtothepreviousquarter?

Echoingtheresultsabove,Cruisehavebeenincreasingthenumberof3rdpartydistribu7onchannelstheyareworking

withinthelastquarter.TourOperator,OtherAccommoda7on,Hotel,DMC/tourismboardandAirlinehavereduced

thenumber,10%,8%,4%,9%and12%respec7vely.Thetouroperators,whichcanbluroverthebordersofsupplier

andintermediary,OtherAccommoda7onandtheDMC/tourismboardsectorshavepropor7onsthatdonotworkwith

3rdpartypartnersatall.CruiseandCarRentalhavebotheitherincreasedorremainedconsistentwiththenumberof

indirectchannels.

Doyoumindwhatthera.oofdirectvsIndirectdistribu.onis?

Ithasbeenestablishedthatindirectdistribu7onchannelsareplayinganimportantroleforonlinedistribu7on.When

askediftheymindwhatthera7oofdirectvsindirectdistribu7onis84%statedyes.Duetocostofsaleandothersuchreasonssuppliersareunexpectedlypreferabletowardsdirectdistribu7on.Thechartbelowindicatestheideal

propor7onofdirectsalesasatotalofonlinesales.12%areaimingfor100%directdistribu7onwhereastheaverage

forallrespondentscombinedasmen7onedearlieris62%.

Increased About the same volume Declined We did not work with any

Touroperator

Otheraccommodation

Hotel

DMC/tourismboardCruise

CarRental

Airline

0% 25% 50% 75% 100%

0%

0%

0%

9%

1%

8%

12%

12%

0%

0%

9%

4%

8%

10%

42%

50%

25%

36%

46%

25%

40%

46%

50%

75%

45%

49%

58%

39%

%ofresponents

84%

16%

Yes

No


20/120

Idealpropor.onofdirectsales

HowfairsuppliersfeelthepartnershipwithOTAsare

Thereiscurrentlysomedebateamongstthetravelindustryastothevalueofthepartnershipsbetweensuppliersand

OTAs.Weques7onnedthefairnessofthecurrentpartnershipwithbothsuppliersandOTAs.Thechartbelowillustrates

thatmostsuppliersaresingonthefencebutitsweighedtowardsbeingmoreunfair.33%feelthatitisneitherfair

norunfair.,and23%quiteunfair.Resultsfromthemoreopenques7onsrevealthatwhileelementsofthepartnership

arenotenormouslypraisedtheyarechannelofdistribu7onthatarevaluedinsomerespects.Only3%stateitis

extremelyunfair.

Howfairintermediariesfeelthepartnershipwithsuppliersis

Theintermediaryperspec7veisnottoodissimilarbutweightedmoretobeingfair.35%stateneitherfairnotunfair

and32%stateitsquitefair.

0%

4%

8%

11%

15%

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

12%

0%1%

2%

0%

5%

2%

10%

0%

7%

12%

3%

9%

2%

11%

1%

5%

2%1%

4%

0%

2%2%

0%1%

0%0%0%

4%

0%1%1%%

ofrespondents

Ideal%ononlinedistributionviadirectchannels

ExtremelyFAIR

Veryfair

Quitefair

Neitherfairnorunfair

Quiteunfair

Veryunfair

ExtremelyUNFAIR

0% 100% 200% 300% 400%

3%

7%

23%

33%

29%

5%

1%

%ofrespondents

ExtremelyFAIR

Veryfair

Quitefair

Neitherfairnorunfair

Quiteunfair

Veryunfair

ExtremelyUNFAIR

0% 100% 200% 300% 400%

3%

2%

16%

35%

32%

11%

2%


21/120

Secon4:CurrentSen.mentTowardsthe

OTA-SupplierPartnership


22/120

Sen.menttowardstheOTA-SupplierPartnership

Belowwehighlightsomeofthekeythemesemerginginthisedi7onsurroundingthepartnershipbetweentheOnline

TravelAgents(OTAs)andsuppliers.Inthefirstimagewecaniden7fythatthekeyconcernisthatcommissionratesare

toohighandmarginsarebeingsqueezed.Rateparityisanothermajorconcerninthecurrentsitua7on.

WhatsuppliersdislikeaboutthepartnershipwithOTAs

FromtheOTAperspec7ve,theimagebelowillustratestheirconcerns.Themainthemeisaroundavailability,orlackof,

andthegrowthindirectbookingsofcourse.Theirareconcernsaroundtheleveloftechnologythatsuppliersinvestin

tomaximisethepartnershipandarelookingfordevelopmentsinthisarea.Readerscanstudytheimagetopickup

someofthemotherissues.Thelargerthewordthemorecommonitwasintheresponses.

WhatOTAsdislikeaboutthecurrentpartnershipwithsuppliers


23/120

Lookingatmoreposi7vesen7ment,theOTAsfeelthatsuppliersarereallygoodatbeingflexibleandvaluethis

characteris7cinapartnerthatishavingtooperateinsuchadynamicindustry.Theyfeeltherangeofproductsonoffer

aregreatandtheyvereallyimprovedintheironlinepresencetohelpthepartnershipreachnewlevels.Suppliersthat

areefficientandwillingtoworkwiththeOTAsarerated.

WhatdotheOTAslikeaboutthepartnershipwithsuppliers?

Whilesuppliershaveiden7fied(asweshowabove)theirconcernsoverthecommissionrates,theOTAsares7llhugely

valuedasadistribu7onandmarke7ngchannelintodaysmarket.Thelevelofreachthattheyhavetheabilitytodrive

fordistribu7onandoverallmarke7ngpurposesisthemostcommontheme.Itisalsonotedthatthestrengthoftheir

brandsinsomeofthemoremarginalmarketsmakesthepartnershipaveryvaluableone.Formanytravelcompanies

theOTAsarebriningtheminincrementalbusinessandanysaleisconsideredgood.

Whatsupplierslikeaboutthepartnershipwithintermediaries


24/120

Basedonthesuppliersector,thereissomevaria7oninatudestowardsthesupplier-OTApartnership.DMCs/

tourismboardsmakeupthemajoritywhobelievethepartnershipisunfairwith2%ofthisgroupsta7ngitisvery

unfair.Againduetothenatureoftheirproductitisdifficulttoaccuratelycrosscomparewiththeothertravelsectors.

OtherAccommoda7onhaveapropor7onwhoconsideritveryunfairsugges7ngperhapsthatthecharacteris7callylow

volumeorpriceinventoryisnotaswellregardedintheOTAsectororthattherearenotenoughnicheoperators

servingthepurposeeffec7vely.WhileCruiserelyheavilyonindirectchannels50%feelthatthepartnershipisquite

unfair.4%oftheHotelsectorcurrentlyfeelthatthepartnershipisextremelyunfairand8%oftheairlines.43%of

Hotelrespondentsfeelthatthepartnershipisunfairtosomedegree.Airlinesaremoreposi7vewith4%either

neutralorfairtosomedegree.

SupplierPerspec.veOnOTAs

Overhalf(52%)ofalltravelsupplierrespondentsagreethattheycannotcompeteinthemarketwithoutpartnering

withOTAs.1%areneutral.Theremaining30%eitherdisagree(21%)ordisagreestrongly(9%).Whilecommission

costsareoenraisedasanargumentagainsttheOTApartnership,44%believethatthecostisworththesale.33%are

howeverindelibera7onandanaddi7onal24%donotthinkthecostisworththesale.Respondentshavemixed

feelingsaboutwhethertheOTAhasathreatenedfuture.36%agreethattheOTAwilllosemarketshareoverthenext

fewyears.41%disagree.63%dofeelthatthecurrentOTAmodelneedstochange,noonediagreesstrongly.Again

feelingsaremixedastowhetherOTAsarecompe7torsofsuppliers.Almosthalfoftherespondentsagreeinsome

respectwith12%agreeingstrongly.24%disagreeand4%disagreestrongly.33%feelthattheirmarke7ngproficiencies

areonaparwithOTAsthesedaysandanother33%disagreewiththestatement.34%areeitheragreenordisagree.

Touroperator

Otheraccommodation

Hotel

DMC/tourismboard

Cruise

CarRental

Airline

0% 25% 50% 75% 100%

8%

0%

0%

0%

4%

0%

0%

0%

0%

0%

27%

7%

4%

10%

19%

25%

50%

9%

32%

0%

12%

35%

50%

25%

18%

30%

46%

37%

31%

25%

25%

45%

22%

38%

35%

8%

0%

0%

0%

4%

8%

6%

0%

0%

0%

0%

0%

4%

2%

%ofrespondents

Extremely FAIR Very fair Quite fair Neither fair nor unfair Quite unfair Very unfair Extremely UNFAIR

IcannotcompeteinthemarketwithoutpartneringwithOTAs

ThehighcostofOTAcommissionisnotworththesale

OTAswilllosemarketshareoverthenextfewyears

TheOTAmodelneedstochange

OTAsarenegativelyimpactingsupplierbrands

OTAsarecompetitorsofsuppliers

ycompanysmarketingproficienciesareonaparwithOTAsthesedays

0% 25% 50% 75% 100%

4%

4%

4%

0%

7%

4%

9%

29%

24%

24%

10%

34%

40%

21%

34%

26%

31%

27%

22%

33%

17%

27%

35%

30%

48%

28%

20%

40%

6%

12%

11%

15%

8%

4%

12%

Agreestrongly Agree Neitheragreenordisagree Disagree Disagreestrongly


25/120

SupplierPerspec(veOnOTAsbyCompanySector

CruiseandCarRentalsectorsshowupasthesectorsmorereliantupontheOTAs.WhilenooneintheCruisesector

agreedstronglywiththestatementthatIcannotcompeteinthemarketwithoutpartneringwithOTAs,50%

disagreed.HotelsarerevealedasthesectorwiththemostvalueplacedonOTAs;66%agreetosomedegreethatthey

cannotcompetewithoutthemandonly1%disagreed.OtherAccommoda7onrevealadifferentpaernwith63%

disagreeingwiththestatement.AirlinesaremixedbutmoreneutralthanHotelswithhalfagreeingthattheyarevitaltotheircompe77venessbut38%disagreeing.

IcannotcompeteinthemarketwithoutpartneringwithOTAs

ThehighcostofOTAcommissionisnotworththesale

AboveCruiserevealedthattheyarenotnecessarilyuncompe77vewithoutOTAsbutthey5%dofeelthatahighcost

ofcommissionisworththesale.25%donotagreewiththestatement.ApartfromDMCs/tourismboards(mostare

neutral),mostsectorsshowthevaluetheyplaceonOTAsasadistribu7onchannel.CarRentalarethelargestgroupto

agreewiththestatement(38%).

Touroperator

Otheraccommodation

Hotel

DMC/tourismboard

Cruise

CarRental

Airline

0% 25% 50% 75% 100%

15%

13%

0%

18%

3%

25%

17%

23%

38%

50%

9%

14%

38%

25%

12%

13%

25%

36%

16%

8%

19%

46%

38%

25%

27%

49%

21%

31%

4%

0%

0%

9%

17%

8%

8%

%ofrespondents

Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly

Touroperator

Otheraccommodation

Hotel

DMC/tourismboard

Cruise

CarRental

Airline

0% 25% 50% 75% 100%

12%

0%

0%

0%

3%

8%

0%

46%

50%

75%

18%

38%

42%

39%

15%

13%

0%

64%

36%

33%

37%

23%

38%

25%

9%

21%

13%

19%

4%

0%

0%

9%

3%

4%

6%

%ofrespondents



26/120


27/120

OTAsarenega.velyimpac.ngsupplierbrands

CarRentalcompaniescurrentlyfeelthatOTAsarenega7velyaffec7ngsupplierbrands,25%stronglyagreeand38%

agree.TheAirlinecompaniesappearleastaffectedinthisrespect.FortheHotelsector44%agreetosomedegreebut

thisisnotacrosstheboard;28%havenotexperiencedthis.

OTAsarecompe.torsofsuppliers

OurCruisepar7cipantsfeelthattheOTAsarecompe7ngwiththem,butwehaveestablishedthatthepartnershipis

realisedasvaluable.TheCarRentalsectorwhichcompetesheavilyonpriceunderstandablyaretarge7ngthesame

consumerforthelowestpossibleprice.HotelsandOtherAccommoda7onaresplitwitharoundhalfagreeingwiththe

statement,24%neutraland29%disagree.Airlinesdisplayasimilarpaern.Touroperatorsaremoreevenlyspread

acrossthescale.

Touroperator

Otheraccommodation

Hotel

DMC/tourismboard

Cruise

CarRental

Airline

0% 25% 50% 75% 100%

4%

0%

0%

0%

4%

8%

4%

35%

13%

25%

18%

24%

17%

21%

35%

25%

25%

36%

27%

38%

37%

23%

38%

50%

36%

30%

29%

27%

4%

25%

0%

9%

14%

8%

12%

%ofrespondents



Touroperator

Otheraccommodation

Hotel

DMC/tourismboard

Cruise

CarRental

Airline

0% 25% 50% 75% 100%

12%

13%

0%

0%

3%

4%

6%

19%

0%

0%

9%

26%

12%

29%

23%

0%

0%

27%

24%

37%

23%

39%

75%

100%

55%

32%

29%

35%

8%

13%

0%

9%

15%

17%

8%

%ofrespondents


28/120

Mycompanysmarke.ngproficienciesareonaparwithOTAsthesedays

CarRentalcompaniesfeeltheheatfromtheOTAsastheyarecompe7ngwiththembutrealisetheirmarke7ngpower.

Cruiseistheoppositewith50%disagreeingperhapsduetothenatureoftheirproductwhichisrela7velynewtothe

onlinespaceandaveryhighvalueproduct.HotelsandAirlinesratethemarke7ngabilityofOTAsmostfortheir

products.

Intermediaryfeelingsabouttheirsalesperformanceoverthelast

quarter

Intermediariesrevealaposi7velastquarter.49%feelthattheirbookingswerebeerthanexpected.

Touroperator

Otheraccommodation

Hotel

DMC/tourismboard

Cruise

CarRental

Airline

0% 25% 50% 75% 100%

4%

0%

0%

18%

6%

4%

0%

31%

0%

50%

9%

38%

21%

12%

39%

63%

50%

36%

29%

29%

44%

19%

13%

0%

27%

22%

42%

39%

8%

25%

0%

9%

4%

4%

6%

%ofrespondents


MuchbetterthanIexpected

Betterthanexpected

Asexpected

Worsethanexpected

Muchworsethanexpected

N/A

0% 10% 20% 30% 40%

4%

2%

14%

33%

38%

11%


29/120

Consideringthefollowingtravelproducts,howhaveyoursalesvolumeschangedoverthelast3

months?-Intermediariesonly

Breakingdownthespecificproductsdistributedviatheintermediaries,therehavebeenincreasesacrosssectorsand

themostsuccessiswithflightandhotelproducts.ThelargestincreasehasbeeninHotelproductsaleswith49%of

respondentshavingexperiencedanincrease.Flightsaleshavebeenincreasedby4%.Aroundaquarterofrespondents

havehadconsistentsalesacrossthesectors.Declinescanalsobeiden7fiedineachsectorbutonasmallerscale,allat6%exceptHotelsat8%ofrespondents.Thesaleofdynamicpackageshasincreasedfor28%ofrespondentsand29%

haveincreasedthesaleofdes7na7onac7vi7es.

Haveyourbookings(volumes)generatedviathefollowingchannelsincreasedordecreasedover

thelast3months(fromthepreviousquarter)?

ThemostsignificantincreaseinthelastquarterforchannelsfromwhichIntermediariesarereceivingtheirbookingsis

fromtheirwebsites.64%haveexperiencedanincreaseinthelast3monthsandonly%haveexperiencedadecline.

Voice/callcentreisremainingtobeimportantwith28%experiencinganincrease.31%didntreceiveanybookingsvia

thatchannel.While59%ofrespondentsdidntreceiveanybookingsviamobiledevice,itisinteres7ngtonotethat

24%haveexperiencedanincreaseinthelastquarter.

Flightonly

Hotelonly

Carrentalonly

Dynamicpackages

Destinationactivities

0% 25% 50% 75% 100%

17%

13%

20%

6%

14%

29%

29%

36%

12%

30%

6%

6%

6%

8%

6%

19%

24%

25%

25%

16%

29%

28%

13%

49%

34%

Increased Nochange Declined Wedon'tofferthis Don'tknow

Fromyourwebsite

Viavoice/callcentre

Fromamobiledevice

0% 25% 50% 5% 100%

59%

31%

7%

2%

10%

7%

15%

31%

22%

24%

28%

64%



30/120

Secon5: SourcesofOnlineTrafficInTravel


31/120

SourcesofOnlineTrafficinTravel

WeaskedoursurveyrespondentstolisttheirtopsourcesofonlinetrafficandhavecreatedaWordletohelpiden7fy

thedominanttrends.Googleisclearlythemostinfluen7alchannelfortravelcompanies,botpaidandorganic,but

par7cularlyorganic.Searchengineop7misa7oniscertainlyacorerequirementforalltravelcompaniestoremain

compe77veamongsttheirpeers.Wecanalsoseesomeofthesocialchannelsrela7velyprominent,par7cularly

Facebook,butalsoTripadvisor.Itsthesearchenginesoverallhoweverthatareleadingthewayandglobally,Google

dominatesoverall.

TodaysmainsourcesoftrafficinonlineTravel


32/120

OnlineTrafficSources

Withreferencetothechartbelow,thelargestgrowthareaforwebtrafficsourcesoverthelast3monthshavebeen

fromorganicsearchlis7ngsandFacebook.62%ofrespondentsregisteredanincreasefromorganicsearchlis7ngsand

56%fromFacebook.Acrossalltrafficsourceswecanseethatthereisgrowthnonetheless.Thesocialmediasiteslisted

inthesurveyareallperformingwell,TwierfollowsFacebookwith39%registeringanincreaseintrafficfromhere.

Howeverwecanalsoseethataroundaquarterofallcompaniesarenotbenefingfrommanyofthesocialsites.

YouTubeisnotgenera7ngtrafficforalmosthalfofrespondentsandTwierdoesisnotaffec7ng32%.Forthe43%of

respondentswhohaveregisteredac7vitywithmobilewebsites,overhalfofthosehaveexperiencedanincreasein

traffic.Formobileapplica7onsitisasimilarpicture.Forthoseinvolvedwithcompanyblogsoronlinecommuni7es

theyalsoseemtobeperformingwell;of62%ofrespondentswhorankedthisrelevant,32%haveseenanincreasein

trafficfromthissourceandonly3%adecline.

Referringtothepotenalwebtrafficsourceslistedbelow,pleaseindicateinthecontextofyourwebsite,whethertrafficvolumes

haveincreasedordecreasedfromthesesourcesoverthelast3months.

TrafficSourcesByMarkengBudget

Analysingresultsbasedonthesizeofannualmarke7ngbudgetshowsafewcleartrendsamongstthedifferenttraffic

sourcecategories.Pleaserefertothechartsbelow.Organicsearchengineslis7ngsdisplayslessofapaernthough

withgrowthacrossallbudgetsizes.Thismakessenseasitcancertainlybealowerinvestmentforsuccessfromthis

source.Itissurprisinghoweverthat1%intheunder$25kbudgetrangedonotreceiveanytrafficfromthissourceat

allbutweareunabletoinves7gateintothereasonsbehindthis.

Companyblogsandonlinecommuni7esalsodonotrevealclearpaernsinthedataexceptthatthoseinthemid

rangebudgetsappeartohavethemostgrowthintrafficfromthissourceandarethemostac7ve.

Organicsearchenginelistings

Paidsearchlistings

Displayonlineadvertising

Emailmarketinglinks

Travelmeta-searchsites

Onlinedirectories

Affiliates

Facebook

Twitter

YouTube

TripAdvisor

Mobilewebsite

Mobileapplication

Companyblog/onlinecommunity

0% 25% 50% 5% 100%

38%

59%

56%

38%

48%

32%

23%

24%

24%

28%

16%

28%

21%

6%

3%

1%

1%

3%

2%

2%

1%

9%

10%

4%

5%

7%

6%

3%

27%

15%

16%

26%

29%

27%

20%

36%

47%

39%

36%

32%

32%

29%

32%

25%

26%

34%

20%

39%

56%

31%

19%

29%

44%

34%

41%

62%

Increased About the same Decreased No traffic from this source / Not applicable


33/120

OrganicSearchEngineLis.ngs

CompanyBlog/OnlineCommunity

MobileApplica.on

Lessthan$25k

$26k-$50k

$50k-$100k

$201k-$300k

$301k-$400k$401k-$500k

$501k-$50k

$51k-$1million

$1.1million-$2million




$51million-$100million

$101million+

Total

0% 25% 50% 75% 100%

6%

4%

0%

0%

6%

3%

3%

0%

6%

15%

11%

4%

2%

5%

17%

3%

4%

0%

2%

3%

0%

5%

3%

0%

0%

0%

6%

9%

0%

4%

29%

22%

33%

21%

18%

19%

32%

34%

22%

45%

39%

24%

32%

37%

29%

62%

70%

67%

76%

74%

78%

60%

63%

72%

40%

50%

66%

58%

58%

51%

%ofrespondents

Marketingbudget

Lessthan$25k

$26k-$50k

$50k-$100k

$201k-$300k

$301k-$400k

$401k-$500k$501k-$50k

$51k-$1million






$101million+

0% 25% 50% 75% 100%

30%

25%

31%

44%

30%

41%

31%

22%

20%

50%

38%

46%

43%

46%

0%

0%

7%

0%

5%

0%

0%

6%

0%

6%

0%

2%

3%

5%

33%

25%

33%

27%

35%

27%

25%

28%

35%

11%

34%

24%

20%

23%

37%

50%

29%

29%

30%

32%

44%

44%

45%

33%

28%

29%

33%

27%

%ofrespondents

MarketingBu

dget

Increased Aboutthesame Decreased Notrafficfromthissource/Notapplicable

Lessthan$25k

$26k-$50k

$50k-$100k

$201k-$300k

$301k-$400k

$401k-$500k

$501k-$50k

$51k-$1million

$1.1million-$2million$2.1million-$5million




$101million+

0% 25% 50% 75% 100%

22%

25%

43%

56%

49%

57%

50%

50%

50%

72%

70%

70%

68%

72%

0%

0%

0%

0%

3%

0%

0%

6%

0%

0%

2%

3%

0%

0%

19%

33%

12%

12%

19%

22%

16%

11%

20%

17%

12%

5%

18%

15%

59%

42%

45%

32%

30%

22%

34%

33%

30%

11%

16%

22%

13%

13%

MarketingBudget


34/120

MobileWebsite

Firstly,thereisatrendshowingthatthoseinvolvedinsocialmediaandmobileincreasesinlinewithlargermarke7ng

budgets.Yetthisisnotanen7relyneattrendbecause30%ofthelargestmarke7ngbudgetrange,forexample,arenot

ac7vewithmobilewebsites.Thisbudgetrangehashoweverregisteredthemostrespondentswithgrowthfrom

mobilewebtraffic.Mobileapplica7onsoenrequiremoreinvestmentthanamobilewebsitewhichisperhaps

indica7veofthetrendinthatchart.Thoseinthelargestbudgetcategoryhaveregisteredthemostgrowthfromthis

sourcewith59%ofrespondentsexperiencinganincreaseincomparisonto13%inthesmallestrange.

Facebook

Socialmediasourcesdisplayatrendinrela7ontomarke7ngbudgets.Itisquiteclearlypronouncedinrela7onto

Tripadvisorpar7cularly.Thetrendlineislesspronouncedinrela7ontoYoutubeandTwier.Midbudgetcompanies

aroundthehalfamilliondollarrangeappeartobethemostsuccessfulgroupamongstFacebookandTwier,

registeringthelargestincreasesfrombothsites.Facebookishoweverhelpingtodrivetraffictocompaniesacrossall

budgetsverysuccessfullyandalmosthalfofcompanieswiththesmallestbudgetshaveexperiencedanincreasewhich

isindica7veofhoweffec7vethishasbeenasasourceoftrafficforanytravelcompanyoverthelastquarter.Thereare

howevers7ll39%ofthisbudgetrangethatarenottakingadvantageofthemedium,alongwithagoodpropor7onof

Lessthan$25k

$26k-$50k

$50k-$100k

$201k-$300k

$301k-$400k

$401k-$500k

$501k-$50k

$51k-$1million



$5.1million-$10million$10.1million-$50million


$101million+

0% 25% 50% 75% 100%

15%

17%

12%21%

8%

16%

22%

11%

10%

39%

20%

29%

25%

39%

0%

0%

0%0%

3%

0%

0%

0%

0%

0%

0%

3%

0%

0%

19%

33%

21%15%

24%

27%

16%

11%

15%

6%

22%

27%

25%

17%

67%

50%

67%65%

65%

57%

63%

78%

75%

56%

58%

41%

50%

45%

%ofrespondents

MarketingBudget

Lessthan$25k

$26k-$50k

$50k-$100k

$201k-$300k

$301k-$400k$401k-$500k

$501k-$50k

$51k-$1million






$101million+

0% 25% 50% 75% 100%

30%

8%

38%

50%

49%

54%

44%

44%

50%67%

62%

70%

67%

67%

0%

0%

0%

0%

0%

0%

0%

6%

0%0%

2%

5%

0%

3%

19%

50%

17%

21%

22%

22%

16%

6%

10%22%

16%

7%

22%

12%

52%

42%

45%

29%

30%

24%

41%

44%

40%11%

20%

19%

12%

18%

%ofrespondents

MarketingBudget


35/120

thoseinotherbudgetrangestoo.TwierhasresultedinasimilarpaerntoFacebookbutwithfewerexperiencing

growthacrosstheboard.Howevertheac7vitywithinthedifferentbudgetrangesiscomparable.Travelcompaniesin

allbudgetrangesappearlessac7veinYoutube,par7cularlyaswereachthelowerbudgetranges.Lesscompanies

overallareregisteringgrowthintrafficfromthissource.

TripAdvisor

Twier

YouTube

Lessthan$25k

$50k-$100k

$301k-$400k

$501k-$50k




0% 25% 50% 75% 100%

15%

17%

26%27%

30%

27%

34%

39%

35%

33%

46%

39%

48%

51%

0%

8%

5%3%

5%

5%

0%

0%

0%

6%

2%

3%

0%

5%

22%

25%

38%32%

38%

30%

31%

22%

40%

28%

14%

22%

15%

23%

63%

50%

31%38%

27%

38%

34%

39%

25%

33%

38%

36%

37%

21%

%ofrespondents

M

arketingBudget


Lessthan$25k

$50k-$100k

$301k-$400k

$501k-$50k




0% 25% 50% 75% 100%

22%

17%

24%

32%

19%

27%

31%

17%

20%

50%

30%

36%

32%

48%

0%

0%

2%

0%

5%

0%

0%

0%

5%

0%

0%

3%

0%

3%

30%

33%

36%

15%

27%

43%

22%

17%

15%

17%

30%

27%

30%

25%

48%

50%

38%

53%

49%

30%

47%

67%

60%

33%

40%

34%

38%

24%

%ofrespondents

MarketingBudget

Lessthan$25k

$50k-$100k

$301k-$400k

$501k-$50k




0% 25% 50% 75% 100%

37%

25%

33%

50%

46%

38%

41%

39%

45%

61%

48%

49%

58%

59%

4%

0%

2%

0%

3%

0%

3%

0%

0%

0%

0%

2%

2%

5%

44%

25%

45%

24%

30%

43%

25%

33%

40%

17%

32%

25%

25%

22%

15%

50%

19%

27%

22%

19%

31%

28%

15%

22%

20%

24%

15%

14%

%ofrespondents

Ma

rketingBudget


36/120

Nomajorpaernsareiden7fiedinthetrafficgeneratedfromaffiliates.Itisrela7velyeveninthepropor7onsthathave

experiencedgrowthandmaintainedlevelsacrossallbudgetcategories.Itcanbeseenhoweverthatalmosthalfofthe

lowerbudgetcompaniesarenotworkingwithaffiliates.

Trafficfromonlinedirectoriesisalsorela7velyconsistentacrossbudgetcategories.Lessgrowthhasbeenexperienced

fromthispoten7altrafficsourceincomparisontoothercategories.

Affiliates

OnlineDirectories

Travelmeta-searchsitesareprovingsuccessfulforthecompanieswithlargerbudgetsanditcouldbeassumedthat

manyofthesecompaniesareairlineswhichwouldmakesense.48%ofthelargestbudgetcategoryhaveexperienced

anincreaseintrafficfromthesesitesinthelast3monthsincomparisonto18%inthelowestbudgetrange.

Emailmarke7nglinksareusedmorecommonlyacrossallbudgetranges,although31%ofthelowestbudgetcategory

arenotbenefingfromtheseatall.Thelargestpropor7onofcompanieswithanincreasefromthesesourcesarein

themidbudgetrangessuchas6%ofthosewithabudgetbetween$501-$50k.

Lessthan$25k

$50k-$100k

$301k-$400k

$501k-$50k




0% 25% 50% 75% 100%

22%

25%

14%

21%

19%

16%

31%

17%

20%

22%

26%

22%

28%

31%

4%

17%

7%

9%

8%

16%

6%

0%

20%

6%

6%

14%

13%

9%

48%

33%

67%

44%

62%

49%

47%

56%

45%

56%

50%

46%

37%

40%

26%

25%

12%

27%

11%

19%

16%

28%

15%

17%

18%

19%

22%

21%

%ofrespondents

MarketingBudget

Lessthan$25k

$50k-$100k

$301k-$400k

$501k-$50k




0% 25% 50% 75% 100%

19%

0%

7%26%

8%

27%

22%

11%

20%

39%

16%

19%

30%

43%

7%

0%

7%6%

22%

8%

3%

6%

10%

17%

12%

10%

10%

4%

41%

50%

41%35%

38%

30%

41%

33%

50%

28%

42%

41%

35%

28%

33%

50%

45%32%

32%

35%

34%

50%

20%

17%

30%

31%

25%

26%

%ofrespondents

M

arketingBudget


37/120

TravelMeta-SearchSites

EmailMarke.ngLinks

Displayonlineadver7singismorecommonamongstcompanieswithlargerbudgetsunderstandablyandtheyhave

alsoprovedsuccessfulinthelastquarter.Aroundhalfofthelargerbudgetrangeshaveregisteredanincreaseintraffic

fromtheironlinedisplayadver7singefforts.

Paidsearchlis7ngsagainaredominatedbythosewithlargerbudgets.Aroundhalfofthoseinthesmallestbudget

rangearenotinves7nginthisformofmarke7ng.Themajorityofthosethatareinves7nginpaidsearchlis7ngshave

experiencedanincreaseintraffic.Thereisagoodpropor7oninbothdisplayandpaidsearchadver7singthathavenot

seenmuchofachangeinthelast3months.

Lessthan$25k

$50k-$100k

$301k-$400k

$501k-$50k




0% 25% 50% 75% 100%

19%

25%

10%

18%

30%

14%

28%

28%

30%

33%

24%

32%33%

41%

7%

8%

7%

9%

5%

0%

6%

0%

0%

6%

4%

7%3%

2%

26%

42%

45%

38%

41%

35%

41%

33%

40%

39%

42%

37%40%

40%

48%

25%

38%

35%

24%

51%

25%

39%

30%

22%

30%

24%23%

18%

%ofrespondents

MarketingBudget


Lessthan$25k

$50k-$100k

$301k-$400k

$501k-$50k




0% 25% 50% 75% 100%

11%

17%

2%

18%

3%

11%

16%

6%15%

17%

10%

22%

13%

31%

11%

8%

2%

6%

8%

3%

3%

0%0%

0%

4%

7%

5%

5%

33%

42%

43%

27%

38%

41%

31%

28%30%

50%

38%

36%

47%

28%

44%

33%

52%

50%

51%

46%

50%

67%55%

33%

48%

36%

35%

37%

%ofrespondents

MarketingBudget


38/120

DisplayOnlineAdver.sing

PaidSearchLis.ngs

TrafficSourcesbyCompanySector

Werealisethatitisnotallaboutbudgetinonlinemarke7ng,sotakingalookattheresultsbycompanysectormay

revealsomemoreinteres7ngtrends.Organicsearchlis7ngsaswithmarke7ngbudgetsizedoesnotrevealanymajor

differencesamongstsectors.Cruiseregisterthebiggestpropor7onwithanincreaseintrafficfromthissourceat86%,

theother14%statethatitisnotapplicable.Meta-searchsiteshaveexperiencedthebiggestdeclineintrafficfromthis

sourcewith40%ofthecompaniesregisteringadecline.Itisevidentlyanimportantandgrowingsourceoftrafficforall

othertravelsectors.

Paidsearchlis7ngshaveworkedbestforCarRentalandMeta-SearchcompaniesinthelastquarterandHoteland

OtherAccommoda7onarenotfarbehind.43%ofHotelcompanieshaveregisteredagrowthintrafficfromtheir

investmentinPPC.

Lessthan$25k

$50k-$100k

$301k-$400k

$501k-$50k




0% 25% 50% 75% 100%

11%

17%

9%

21%

11%

19%

28%

11%

15%

33%

32%

36%

25%

52%

11%

0%

5%

0%

14%

5%

9%

6%

5%

11%

8%

5%

10%

8%

33%

33%

31%

29%

38%

32%

25%

56%

40%

28%

26%

34%

37%

25%

44%

50%

55%

50%

38%

43%

38%

28%

40%

28%

34%

25%

28%

16%

%ofrespondents

MarketingBudget

Lessthan$25k

$50k-$100k

$301k-$400k

$501k-$50k




0% 25% 50% 75% 100%

4%

0%

2%

15%

5%

8%

3%

0%

20%

28%

20%

27%

33%

47%

4%

0%

10%

9%

8%

3%

6%

0%

0%

11%

10%

9%

5%

6%

26%

33%

33%

21%

30%

27%

63%

44%

40%

33%

30%

32%

33%

26%

67%

67%

55%

56%

57%

62%

28%

56%

40%

28%

40%

32%

28%

22%

%ofrespondents

MarketingBudget


39/120

OrganicSearchEngineLis.ngs

PaidSearchEngineLis.ngs

Hotel

Otheraccommodation

Airline

CarRental

Cruise

Destinationmanagementcompany/tourismboard

Touroperator

OnlineTravelAgent(OTA)

Meta-search

Otheronlineintermediary

"Offline"intermediary/Retail

0% 25% 50% 75% 100%

8%

8%

0%

4%

8%

9%

14%

8%

3%

10%

4%

0%

8%

40%

1%

5%

0%

0%

0%

0%

10%

2%

46%

26%

40%

27%

27%

45%

0%

23%

29%

19%

30%

46%

58%

20%

68%

60%

45%

86%

69%

68%

61%

64%

%ofrespondents


Hotel

Otheraccommodation

Airline

CarRental

Cruise


Touroperator


Meta-search



0% 25% 50% 75% 100%

38%

23%

20%

15%

27%

27%

14%

23%

9%

26%

17%

21%

6%

0%

8%

8%

5%

14%

0%

6%

3%

4%

29%

42%

20%

27%

24%

50%

29%

15%

47%

16%

35%

13%

29%

60%

50%

41%

18%

43%

62%

38%

55%

43%

%ofrespondents


40/120

ThetransportsectorandCruisehaveregisteredthemostsuccessfromdisplayonlineadver7sing.Aroundathirdof

HotelandOtherAccommoda7onhaveexperiencedanincreaseintrafficfrominvestmentshere.Mostsectorshave

experiencedadeclineintrafficfromdisplayonlineadver7singbutinsmallerpropor7ons.

Cruisestandoutasthesectorwiththemostgrowthamongsttherespondentsfromemailmarke7ng,1%.Aroundhalf

ofrespondentsfromothersectorshavehoweverseengoodgrowthexceptmeta-searchsiteswhichhaveremained

predominantlyconsistent.Agoodpropor7onofCarRentalcompaniesarenotu7lisingemailasasourceoftraffic

genera7on.

DisplayOnlineAdver.sing

EmailMarke.ngLinks

Hotel

Otheraccommodation

Airline

CarRental

Cruise


Touroperator


Meta-search



0% 25% 50% 75% 100%

8%

23%

20%

13%

12%

14%

14%

31%

12%

16%

16%

17%

3%

0%

4%

8%

0%

14%

0%

6%

7%

3%

42%

28%

60%

40%

32%

36%

0%

31%

38%

29%

39%

33%

46%

20%

44%

48%

50%

71%

38%

44%

48%

42%

%ofrespondents

Hotel

Otheraccommodation

Airline

CarRental

Cruise


Touroperator


Meta-search



0% 25% 50% 75% 100%

29%

37%

60%

33%

29%

36%

29%

23%

12%

32%

21%

17%

5%

0%

8%

9%

9%

14%

0%

12%

0%

7%

37%

34%

20%

28%

31%

18%

0%

15%

21%

32%

40%

17%

25%

20%

31%

31%

36%

57%

62%

56%

35%

33%

%ofrespondents



41/120

TravelMeta-SearchSites

Affiliates

Travelmeta-searchsitesareshowingtohavemadethemostposi7veimpactintheHotelsectorwith3%of

respondentsexperiencingtrafficgrowthfromthesesitesinthelast3months.Mostsectorshavehoweverexperienced

moreconsistencythangrowth.

AffiliatesareworkingwellfortheCarRentalandCruisesectors,growthfor54%and5%respec7vely.Thebiggest

declinehasbeenfortheDMCs/tourismboardsat2%.Meta-searchsitesarenotveryac7veinthismarke7ngchannel.

Hotel

Otheraccommodation

AirlineCarRental

Cruise


Touroperator


Meta-search



0% 25% 50% 75% 100%

13%

32%

20%

22%

25%

32%

29%

15%

15%

29%

20%

13%

11%

20%

10%

8%

14%

14%

15%

0%

10%

7%

50%

32%

20%

36%

29%

27%

0%

15%

53%

32%

43%

25%

25%

40%

32%

37%

27%

57%

54%

32%

29%

31%

%ofrespondents

Hotel

Otheraccommodation

Airline

CarRental

Cruise


Touroperator


Meta-search

Otheronlineintermediary"Offline"intermediary/Retail

0% 25% 50% 75% 100%

25%

42%

80%

46%

25%

27%

57%

31%

12%

32%

16%

8%

2%

0%

4%

7%

5%

14%

8%

3%

6%

3%

50%

34%

20%

24%

37%

41%

14%

31%

53%

39%

44%

17%

23%

0%

26%

31%

27%

14%

31%

32%

23%

37%

%ofrespondents



42/120

OnlineDirectories

Referringtothechartsbelow,resultsinrela7ontoTwierarerela7velyconsistentacrossallsectors.Themajoritywho

arepar7cipa7nghaveexperiencedgrowthoverthelastquarter.Tripadvisorontheotherhandisunderstandablymore

dominantintheaccommoda7onsector.62%ofHotelcompanieshaveregisteredgrowthfromthischannel,Other

Accommoda7onislessac7vebutofthosethatareincludedorinvolvedareexperiencinggoodresults.Thissourceis

lessfavourableforthetransporta7onsector.Facebookisprovidinggoodresultsacrossallsectors.Welloverhalfof

travelcompaniesineachsector,apartofOTAs,haveregisteredaincreaseintrafficromthissource.DMCs/tourism

boardsareprovingverygoodresultsoutofthosewhoarepar7cipa7ng.YouTubeisprovingmorerelevantforsuppliersthanOTAsandaccommoda7onandtransportsectorshaveshownrela7velysimilarresults.TheCruisesectorappearto

havehadthemostgrowthinthelastquarterbasedonthenumberofrespondentsfromthatsector.

Twier

Hotel

Otheraccommodation

Airline

CarRental

Cruise


Touroperator


Meta-search



0% 25% 50% 75% 100%

21%

34%

60%

33%

23%

23%

43%

23%

29%

26%

13%

13%

9%

0%

12%

11%

27%

14%

0%

6%

13%

8%

46%

45%

40%

40%

39%

32%

29%

46%

50%

45%

58%

21%

12%

0%

15%

28%

18%

14%

31%

15%

16%

21%

%ofrespondents

Hotel

Otheraccommodation

Airline

CarRental

Cruise


Touroperator


Meta-search



0% 25% 50% 75% 100%

58%

20%

40%

36%

31%

41%

43%

23%

21%

42%

30%

4%

2%

0%

1%

5%

0%

0%

0%

3%

0%

1%

13%

31%

20%

35%

25%

14%

14%

38%

32%

23%

27%

25%

48%

40%

28%

39%

46%

43%

38%

44%

36%

43%

%ofrespondents



43/120

Facebook

TripAdvisor

YouTube

Hotel

Otheraccommodation

Airline

CarRental

Cruise


Touroperator


Meta-search



0% 25% 50% 75% 100%

33%

19%

40%

26%

23%

32%

29%

23%

15%

36%

19%

0%

0%

0%

1%

1%

0%

0%

0%

0%

0%

1%

13%

14%

0%

31%

23%

5%

14%

15%

24%

13%

22%

54%

68%

60%

42%

53%

64%

57%

62%

62%

52%

59%

%ofrespondents

HotelOtheraccommodation

Airline

CarRental

Cruise


Touroperator


Meta-search



0% 25% 50% 75% 100%

67%

51%

80%

62%

45%

46%

29%

38%

32%

55%

42%

8%

0%

0%

3%

5%

5%

0%

0%

0%

0%

1%

17%

29%

20%

31%

24%

18%

29%

38%

44%

19%

34%

8%

20%

0%

5%

25%

32%

43%

23%

24%

26%

23%

%ofrespondents

Hotel

Otheraccommodation

Airline

CarRental

Cruise


Touroperator


Meta-search



0% 25% 50% 75% 100%

58%

59%

100%

63%

40%

36%

86%

54%

35%

42%

9%

8%

3%

0%

3%

4%

9%

0%

0%

0%

0%

3%

29%

22%

0%

18%

29%

23%

14%

39%

35%

26%

27%

4%

17%

0%

17%

27%

32%

0%

8%

29%

32%

62%

%ofrespondents


44/120

MobileisworkingbestfortheCarRentalsectorand54%ofrespondentshaveregisteredanincreaseintrafficfrom

mobileapplica7ons.Airlinecompaniesarealsomoreac7veincomparisontoothersectorsandareshowingasimilar

paern.Hotelcompaniesalsoseeinggrowthwith28%ofrespondentsexperiencingincreasedtrafficfrommobile

applica7onswhichisalargepropor7onofthe43%whoarepar7cipa7ng.

Intermsofmobilewebsites,againtheCarRentalandAirlinesectorsarethemostac7veandhaveprovedthebest

results.62%ofCarrentalcompanieshaveregisteredagrowthintrafficfrommobilewebsites.Thereappearstobeless

ac7vityamongstOTAsbut21%haves7llregisteredgrowth.

Companyblogsandonlinecommuni7esshowmoreconsistencyacrosssectors.ThebestresultsareintheCarRental

andDMC/tourismboardsectors.

MobileApplica.on

MobileWebsite

Hotel

Otheraccommodation

Airline

CarRental

Cruise


Touroperator


Meta-search



0% 25% 50% 75% 100%

75%

55%

60%

67%

63%

64%

71%

31%

38%

71%

57%

4%

0%

0%

1%

3%

0%

0%

0%

0%

0%

1%

17%

12%

20%

15%

15%

23%

0%

15%

21%

13%

14%

4%

32%

20%

17%

20%

14%

29%

54%

41%

16%

28%

%ofrespondents


Hotel

Otheraccommodation

Airline

CarRental

Cruise


Touroperator


Meta-search



0% 25% 50% 75% 100%

71%

57%

60%

63%

59%

55%

57%

23%

38%

71%

51%

8%

0%

0%

1%

4%

0%

0%

0%

0%

0%

1%

21%

11%

20%

15%

15%

36%

14%

15%

18%

10%

17%

0%

32%

20%

21%

23%

9%

29%

62%

44%

19%

30%

%ofrespondents


45/120

CompanyBlog/OnlineCommunity

Hotel

Otheraccommodation

Airline

CarRentalCruise


Touroperator


Meta-search



0% 25% 50% 75% 100%

29%

29%

40%

27%

40%

27%

57%

23%

24%

52%

49%

4%

0%

0%

5%

5%

5%

0%

0%

6%

0%

2%

29%

32%

60%

39%

19%

18%

0%

23%

32%

13%

25%

37%

39%

0%

30%

36%

50%

43%

54%

38%

36%

24%

%ofrespondents


46/120

Secon6: Marke.ngChannels


47/120

Marke.ngChannels

Analysingdatafromallrespondentsofbothsupplierandintermediarysurveys,organicsearchenginelis7ngshave

provedtobethemostinfluen7almarke7ngchannelforbookingsoverthelast3monthsforthelargestpropor7onof

travelcompanies(38%).PPCisthesecondmostrateschannel(22%ofrespondents)andemailmarke7ngthethird

(19%).Socialmediaisratedby14%.

Consideringthemarkengchannelsbelow,pleasechooseONEwhichyou'dhighlightasthemostinfluenaltoyour

bookingsoverthelast3months?

Influen7alchannelsdovaryacrosssectors.Emailmarke7ngisratedmostbyCruiseandOfflineintermediarysectors;

43%and38%respec7vely.Thisisnotfoundinfluen7alatallbytheMeta-Searchcompanies.Meta-Searchsiteshave

beenfoundrela7velylessinfluen7altobookingsbutareratedbyanumberofsuppliersandintermediaries.Mobile

standsoutintheAirlineandCarRentalsectorsbutsitswithamarginalpropor7onofrespondents;9%and8%

respec7vely.Organicsearchlis7ngswhichisthemostinfluen7aloverall,ispar7cularlyusefulforMeta-Search

companiesinwhich60%ratethisasthemostinfluen7alchanneltotheirbookings.Theothersectorsrevealsimilar

propor7onsforthis,excepttheslightlyslowerofflineintermediaries.PPChasbeenpar7cularlyinfluen7alforCar

Rental,OTAandMeta-Searchcompanies.SocialmediaappearstobeworkingbestforDMCs/tourismboards,Cruise

andofflineintermediaries.TheHotelsectorandOtherAccommoda7onaswellasAirlinecompaniesemphasisethe

valueoforganicsearchlis7ngsforthelastquarter.

Mostinfluen(almarke(ngchannelbycompanysector

19%

5%

2%

38%

22%

14%

Email marketing

Meta-search sites

Mobile devices

Organic search engine listings

Paid search (PPC)

Social media

Hotel

Otheraccommodation

Airline

CarRental

Cruise

DMC/tourismboard

Touroperator


Meta-search



0% 25% 50% 75% 100%

25%

22%

0%

5%

15%

36%

29%

0%

18%

19%

10%

4%

14%

40%

35%

19%

5%

0%

38%

12%

16%

27%

21%

40%

60%

37%

33%

36%

29%

46%

32%

35%

44%

0%

2%

0%

1%

3%

0%

0%

8%

9%

0%

1%

13%

6%

0%

5%

0%

9%

0%

0%

3%

6%

6%

38%

17%

0%

17%

31%

14%

43%

8%

27%

23%

13%

%ofrespondents

Email marketing Meta-search sites Mobile devices Organic search engine listings Paid search (PPC) Social media


48/120

Mostinfluen(alchannelbymarkengbudget

Therearesomeminortrendsiden7fiedwhenanalysingtheresultsbysizeofmarke7ngbudget.Emailmarke7ngfor

exampleisratedasthemostinfluen7albythosewithsmallermarke7ngbudgets,whereasPPCismoreinfluen7alfor

thosethatcanafforditinthehigherbudgetcategories.Socialmediaisontheotherhandnotisolatedtothebigguys

andthesmallerbudgetrangesareevidentlyseeinggoodresultsfromthesechannelsinrela7ontobookings;arounda

quarterofthoseatthelowestbudgetrangeselectedsocialmediaasthemostinfluen7almarke7ngchannelinthelastquarter.Mobileisinteres7nglyalsoappearinginthelowerbudgetrangesbutthereisnomajortrendherewiththe

limitednumberofresponsesforthischannel.Meta-Searchisalsoasimilarpaerntomobilebutwecaniden7fya

moresignificant15%inthetopbudgetrange.

Mostinfluen(alchannelbyregionrepresenng

IntermsofEurope,theUKfoundemailmarke7ng,organicsearchlis7ngsandPPCthemostinfluen7altotheir

bookingsoverthelastquarter.Thera7oswererela7velyevenlysplitwithslightlymoreweightonSearch.Respondents

fromGermanyratedorganicsearchlis7ngsthemost(3%)andanevensplitfortheremainderbetweenemail,PPCandsocialmedia.Francealsorateorganicsearchthemost(55%)andshowarela7velyhigherpropor7ontowardsPPC

aswell(2%).Italywhorepresentthehighestpropor7onra7ngsocialmedia(22%)alsorateorganicsearchthemost

(33%)butwecaniden7fythemasourceforMeta-Searchresultsaswell(11%).Spainissplitevenlybetweenboth

organicandpaidsearch(45%foreach)andtheremaining9%ratesocialmediaoveremail,mobileandmeta-search

whichhasnotbeenselected.

TheUSissimilartotheUKexceptwithahigherpropor7onra7ngsocialmedia(21%)andlessonPPC(15%).Australia

arealsoverysimilartotheUK.ChinaisinlinewiththeUKbutshowingsomeresultsfrommeta-search.Indiais

comparabletotheUS,butputsmoreweighttowardssocialmedia(19%)andlessonorganicsearchlis7ngs.Brazilis

rela7velyevenlysplitacrossallchannelsexceptmeta-searchandmobilearenotlisted.

Lessthan$25k

$26k-$50k

$50k-$100k

$201k-$300k

$301k-$400k

$401k-$500k

$501k-$750k

$751k-$1million






$101million+

0% 25% 50% 75% 100%

11%

17%

2%

9%

3%

8%

12%

0%

25%

22%

20%

8%

17%

24%

33%

42%

33%

27%

24%

24%

28%

28%

25%

17%

22%

15%

20%

8%

33%

42%

48%

44%

51%

30%

31%

50%

20%

33%

36%

47%

35%

36%

0%

0%

0%

3%

0%

3%

6%

0%

0%

0%

0%

2%

2%

5%

15%

0%

2%

0%

0%

8%

9%

11%

5%

0%

2%

3%

5%

6%

7%

0%

14%

18%

22%

27%

12%

11%

25%

28%

20%

24%

22%

22%

%ofrespondentswithinthebudgetcategory

MarketingBudget

Email marketing Meta-search sites Mobile devices Organic search engine listings Paid search (PPC) Social media


49/120

Mostinfluen.alchannelsbyregionrespondentsrepresent

UnitedKingdom

Germany

France

Italy

Spain

Global

UnitedStates

Australia

China

India

Brazil

0% 25% 50% 75% 100%

14%

19%

9%

12%

21%

14%

9%

22%

0%

9%

8%

29%

20%

35%

21%

15%

22%

45%

22%

27%

9%

34%

29%

32%

22%

49%

34%

38%

45%

33%

55%

73%

33%

0%

3%

4%

3%

2%

2%

0%

11%

0%

0%

2%

0%

3%

9%

0%

7%

5%

0%

0%

9%

0%

3%

29%

22%

22%

15%

21%

20%

0%

11%

9%

9%

21%

%ofrespondentsbasedonthecountryinwhichtherespondentisspecificallylocated


50/120

Secon7: Marke.ngBudgets


51/120

Marke.ngBudgetsMostRecentQuarter

Respondentsofthesurveyareclearlylessinclinedtothemajorityofofflinemarke7ngtac7csincomparisontoonline,

exceptperhapsprintadver7singwhere30%dodidnotallocateanybudgettowardsthis.56%ofalltravelcompaniesin

thesurveyinvestedmorebudgettowardswebsitedesign/re-designinthelastquarter.Thisisthecategoryshowingthe

largestgrowthamongstrespondents.Thesecondlargestgrowthareaissocialmediamarke7ng(notincludingtheadver7sements)with53%ofrespondentsalloca7ngmorebudgetinthelastquarter.Just19%arenotalloca7ng

anythingtowardsthis.Intermsofsocialmediaadver7sements3%increasedtheirbudgetsforthis,30%allocatedthe

same,4%reducedthebudgetand29%didnotallocateany.Emailmarke7ngisthethirdlargestgrowthcategoryand

oneofthemostcommonmarke7ngac7vi7esinvestedin.43%allocatedmorebudgetinthelastquarter,40%

alloca7ngthesameand8%alloca7ngless.Mobilemarke7ngisbeinginvestedinbyhalfoftherespondentstosome

degree.Aquarterofallrespondentsincreasedtheirbudgetformobilemarke7nginthelastquarter.Thebiggest

reduc7oninbudgetistowardsprintadver7singat20%,followingbydirectmail(14%)anddisplayonlineadver7sing

(13%).

Inthelast3monthsdidyouallocatemoreorlessbudgettothefollowingmarkengacviescomparedtothe

previousquarter:

Marke(ngInvestmentbyMarkengBudgetSize

Inthefollowingsec7onwehaveconsideredtheac7vi7esamongstdifferentmarke7ngbudgetsandsometrendshave

beenrevealed.Websitedesign/re-designdoesnotindicateanymajortrends.Itisworthpoin7ngoutthatthelower

endofthebudgetrangeslesscompanieshaveinvestedanythingatallperhapsasthesitesarelesscomplexthansome

ofthelargecompanies.Howeveracrossallbudgetcategorieswecanseethatthemajorityhaveallocatedmorebudgetinthelastquartertowardstheirwebsites.

Websitedesign/re-design

Paidsearchengineoptimisation(PPC

Strategiclinksandonlinesponsorship

Localsearchlistings

Travelmeta-search

DisplayonlineadvertisingegbannersEmailmarketing

Socialmediaadvertisements

Othersocialmarketing:Facebook,Flickr,Twitter,Youtube,etc

Mobilemarketing:viamobilewebsite,SMSorapplication

TVadvertising

Outdooradvertising

Experientialmarketing

Consumerevents/eventsponsorship

Printadvertising

Directmail(postal)

0% 25% 50% 75% 100%

51%

30%

37%

54%

57%

67%

50%

19%

29%

10%

29%

32%

26%

19%

21%

8%

14%

20%

9%

6%

10%

7%

5%

3%

4%

8%

13%

10%

10%

9%

11%

6%

22%

33%

33%

26%

21%

16%

21%

26%

30%

40%

32%

40%

44%

39%

30%

Documents

Travel Distribution and Marketing Barometer May 2011