How is The New Always-Connected Travel Consumer changing how we sell?

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Presentation by Tim Gunstone, Eye For Travel at Travel Marketing Master Class Event - 22nd July 2014

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  • 1. How is The New Always-Connected Travel Consumer changing how we sell? Tim Gunstone, Founder, EyeforTravel Ltd.

2. @eyefortravel 3. The 5 Stages of Travel Travel stages courtesy of Google Inc 4. Mobile is powering bookings 45.3% of travellers surveyed would make a last-minute booking on a tablet up to a week before travel, while 43.8% would do so on a mobile Source: EyeforTravels Social Media & Mobile in Travel Distribution Report 2013 5. Mobile Budgets Are Increasing In 2013, 57.3% of travel brands surveyed planned to increase mobile spend ..versus 52.3% in 2012 #analyticseu 6. Mobile leads to new customers In the first 2 months after the launch of its iPad app, Jetsetter saw over 250,000 downloads and 7,000 new customers 7. Savvy travel brands ARE making money from mobile In 2011 InterContinental Hotels Group (IHG) had seen revenues from mobile rise from $1 million to $10 million in just 12 months By the end of 2012 mobile revenues hit $330 million In 2013 its hitting $40million per month 8. Where are travel marketers spending their mobile budgets? #analyticseu 9. @analyticseu 10. Wide cultural variances #analyticseu 11. Attitudes vary by country 50% of Dutch 40% of French 40% of Brits 35% of Americans 29% of Germans. .would not book travel via a smartphone EyeforTravel Ltd. #analyticseu 12. Trend for last minute Google reported that 41% of last minute queries to airline websites were via mobile devices For hotels, 33% of last minute queries were via mobile devices #analyticseu 13. Germans still like to book early. 62% of Germans will book via a tablet a month or more in advance with just 7% booking on the day 14. Whereas in France 53% would book a month or more in advance and 10% would book on the day 15. 2 consumer comparisons 16. German travel consumers Dont like to book last minute (even via a mobile) Most likely to use a mobile device whilst on holiday compared to other nations 39% want to check-in via their mobile Slow loading times (33% significant impact) and negative reviews were strongest deterrents to booking (30%) 43% dont share travel plans with friends/family via social media 17. Dutch travel consumers Higher aversion to booking via a smartphone (50% - often citing security/payment as a concern) but are much less averse to booking via a tablet Prefer to use mobile for map function (43%) and reviews (44%) Hidden costs (56%) and slow load times (42%) biggest deterrents to booking They like to be able to compare deals (62% said this would mean more likely to book) Less social with 55% never share travel plans with friends via social media 18. How much do consumers want to spend? Of those willing to spend on mobile, the majority felt comfortable purchasing up to a value of 600 via mobile #analyticseu 19. Mobile is not just about bookings. your customer is looking to interact with your brand via mobile @anigba 20. Several Mobile driven trends emerging 21. Mobile is driving on-trip ancillary spend and Could be a a huge market Tours &Activities Euros 67 billion in USA and EU Its highly fragmented. Often run by small organisations. No yield management no cross selling yet Quoting Fernando Rodrguez Merino interview with EFT 22. Whats driving/hindering On-trip spend Relevant Mobile friendly media and the old concierge Availability the last battle ground in online travel most T+A providers are happy to offer pre trip inventory but not on trip This is changing Price for age old reasons Weather - for age old reasons @eyefortravel 23. Mobile enabled On trip products for intermediaries After the hotel or flight has been booked on trip spend is a huge opportunity Travel intermediaries are succeeding with real time offers either self built or using third party solutions such as Check My Trip and Trip Case 24. On trip mobile enabled products for travel suppliers Suppliers have the greatest opportunity as hotels and airlines own the customer when they are on trip Travel companies can either source inventory through Plug and play widgets that allow the travel supplier to be the owner of bigger part a travellers journey or are doing it themselves 25. People who win in this space will be those that Understand their customer Tailor message Create the right partnerships 26. Mobile driving inspiration 27. Mobile-originated content is dominating the social media space. Short videos, photography and micro-blogging can add real value to your proposition #analyticseu 28. Social media and mobile are not two entities to be worked on separately. They are part of a #analyticseu 29. The industry is Integrating your mobile and social strategies! Gatwick airport uses a Social, Local and Mobile approach They have a presence across Facebook, Twitter, Foursquare, Soundcloud, and Instagram 30. The result? 50% of passenger enquiries at Gatwick are now via their mobile site The size of their Facebook community has ballooned to 42,700 fans Over 100,000 check-ins at Foursquare locations, 40,000 offers claimed First airport worldwide on Instagram 3,125 followers , 4,500+ images tagged #gatwick or #gatwick airport #analyticseu 31. Data is becoming social medias key unique selling point for travel brands as the consumer information available is vast and highly useful @anigba 32. Data is proving key to mobile Mobile limited sales space means you less opportunities to provide the right product Reactive products based on the browsers behaviour, location (and as many data sources as you have access to) can mean more mobile sales. 33. To conclude: Social Media, Mobile, Tablet and (shortly) wearable technology are opening up a wide range of new and exciting opportunities to engage the new always connected customer Its not all about bookings but driving awareness, engagement and loyalty. Mobile and analytics lets you understand your customer more and so sell mor travel product European attitudes to privacy, security and technology vary so watch out. Could explain the US Eu discrepency. 34. Thank You! Tim Gunstone Founder and managing Director EyeforTravel Ltd. +44(0)207 375 7557 tim@eyefortravel.com