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TEXT100 DIGITAL INDEX: TRAVEL & TOURISM STUDY

Text100 - Digital Index Travel and Tourism Study

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TEXT100 DIGITAL INDEX:

TRAVEL & TOURISM STUDY

CONTENTS

INTRODUCTION

• About the Study

INSIGHTS: TRAVEL & TOURISM

TOP 10 OBSERVATIONS

Sections:

General Travel Patterns

Points of Influence for Vacation

Decisions

Exploring the Role Digital Reviews &

Social Media Play in Vacation Decisions

Purchasing Preferences

Technology on Vacation

CONCLUSION

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INTRODUCTION

Digital technology and the connectivity it

brings has disrupted the way decisions

are made – from getting informed and

the transaction itself to the experience

and how it is shared. This is evident in

many industries and has resulted in new

business models emerging to capitalize

on new opportunities and ways to

engage, influence and win consumers.

The travel and tourism sector is one that

has clearly been disrupted by digital

technology. To gain current insights into

the key trends and influences in the four

major segments of the consumer

decision cycle: inspiration, decision,

purchase, and experience, Text100

commissioned a survey to examine how

digital technologies have contributed to

fundamental changes in the tourism

industry.

This research aims to offer a better

understanding of how travelers decide

on destinations, plan the finer details of

their trip, as well as the technology they

use and how they share their

experiences. Armed with these insights,

travel-related companies can develop

more targeted and integrated consumer

outreach ultimately leading to richer

consumer experiences.

While today’s consumers base their

vacation decisions on far more digital

and physical touch-points than ever

before, the core values that drive

tourism – quality service, authenticity,

and experiences worth talking about –

remain the same. Integrating service

offerings across platforms in a manner

that speaks directly to how consumers

already inspire, decide on, purchase and

experience their travels is paramount.

We have extracted ten key observations

from the survey findings that zoom in on

leisure travel patterns, points of

influence and preferences, as well as the

use of digital technology and impact of

social media.

Overall we found that consumers are

making travel decisions by

simultaneously assessing information

from an unprecedented variety of

channels both digital and non-digital.

Because of this, travel operators and

communications professionals alike must

increasingly integrate their efforts across

platforms, focusing more on actual

purchasing behaviors and motivations

than sales and promotions have done in

the past.

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ABOUT THE STUDY

The first installment of the Text100 Digital Index on

Travel & Tourism seeks to understand trends along

the consumer decision cycle and provide a

benchmark of the key trends globally and across the

US, Europe (EMEA) and Asia Pacific (APAC) specifically

on where the Internet and social media platforms are

gaining greater influence.

• The findings are based on online interviews with

4,600 respondents across 13 countries where all

had traveled for leisure purposes in the last 12

months or intended to do so in the next 12

months.

• Countries: Australia, China, Denmark, France,

Hong Kong, India, Malaysia, Singapore, South

Africa, Spain, Sweden, UK and US.

• Conducted by Redshift Research.

INSIGHTS: TRAVEL & TOURISM TOP 10 OBSERVATIONS

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GENERAL TRAVEL PATTERNS

To lay the foundation for this study, it is important to understand the general trends around

vacation travel – where people tend to travel, the length of the break and the main impetus

for choosing a destination.

Growth of the stay-

cation (domestic

vacations) where in the

last 12 months more

vacations have been taken

within the country rather

than international vacations. US

respondents travel less outside their

country than other regions.

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More frequent but shorter Within-country vacations are much more

frequent, but they are also shorter in

duration. Around 80% of all local vacations

are a week or less in duration, whereas a

trip abroad is more likely to be two weeks

or longer (41%). Across the regions,

travelers in the US are more likely to take

short vacations as compared to travelers in

EMEA. Weekend breaks are a lot more

popular in the US at 26%, which is higher

than the global average of 15% of travel.

In APAC and EMEA, more than a third of

travelers preferred to take one week

vacations.

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When asked what was the reason underpinning choice of location or activities.... Unsurprisingly, value for money is one of

the main reasons for choosing locations or

activities. However, considerations such as

relaxation, the call to experience

something different and recommendations

by friends were also key reasons for

choosing a particular location or vacation

activity. Interestingly, over 40% of

travelers globally also chose a vacation

activity based on how fun it looked.

US travelers see relaxation as a more

important choice factor than the other

regions when choosing their vacation

destination.

Travelers from APAC put a greater weight

on recommendations from friends and on

the convenience factor. They also consider

special needs suitability/requirements and

are generally more into Eco-tourism.

US travelers rate ‘fun’ highly as an option

of choosing a vacation, while EMEA

travelers are more focused on knowledge

enrichment and escapism and are

comparatively less worried about

convenience than the other regions.

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POINTS OF INFLUENCE FOR VACATION DECISIONS

THIS SECTION LOOKS AT THE DIFFERENT POINTS OF INFLUENCE ON

DECIDING THE VACATION DESTINATION AND FINER DETAILS OF THE TRIP

Recommendations from family / friends came in front as the top influence on the

choice of a vacation destination (63%) ahead of Internet searches (55%).

This also stands true for informing the finer details of the trip.

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While the Internet has become more

influential than travel agents when

choosing a vacation, 39% of travelers still

use traditional travel agents. Online travel

sites and tourist board websites are also

visited quite often at 46% and 41%

respectively.

What is surprising is that travel agents are

still consulted quite often, especially on

finer details of people’s trips – a trend

which speaks to the more specialized

nature of travel agents today.

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Only a third of those polled agreed that

mileage/loyalty point program deals

influenced their choice of vacation

destination. Deal sites are also low in

usage in making a decision on destination,

yet sales and promotion are fourth on the

list of what influences the decision on

where to go on vacation, leading to the

conclusion that more linkage is required

for mileage/loyalty point programs and

promotional sales to rise as a vector of

influence.

44% of respondents strongly

agree/agreed that Internet reviews by

travel bloggers helped with the initial

decision of vacation destinations, with the

most

trusted sources of vacation research

coming from vacation makers themselves.

This is followed by 37% online travel

forums, 27% Facebook, 24% Youtube/

Vimeo, 22% Pinterest.

When asked what is the single most

important source of information critical to

the decision process, 37% of respondents

selected recommendations from friends

and family. Nearly half of 18-24 year olds

consider family and friends’

recommendations as the most important

factor, compared to only a third of 65+’s.

Interestingly, the importance of individual

providers’ websites increases with age.

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Drilling down to social media as a point of

influence, it is interesting to note that

APAC travelers stand out in terms of their

use of social media platforms to inform

their leisure travel decisions. Especially in

China and India, Internet and travel

reviews have a greater impact on initial

decision of vacation destination at 71%

and 69% respectively for China and 59%

and 53% respectively for India. Malaysia

also comes in higher than the global

average on this front.

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INSIGHTS

Campaigns to influence choice of vacation

destinations need to be integrated across traditional,

web and social media platforms with key focus on the

target audiences’ direct circle of influence – their

friends and family. Online information is gaining in

prominence with traditional travel agents becoming

less important comparatively but still relevant. Blogs

were the most highly rated of the social media

platforms on their influence on destination choices

and finer details of the trip. This is likely due to the

level of trust in the source as well as accessibility of

information. Loyalty programs are less likely to

influence decisions, but sales/promotions ranked

fourth in factors that contribute to a destination

decision.

These trends are evolving rapidly as younger

generations who are more comfortable with the

internet and social platforms age.

Digital disruption is not as dramatic at the point of

destination decision and the vacation planning

phase.

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Globally, over half the travelers polled

have used Facebook, Twitter and other

social media platforms to get travel

inspiration with APAC respondents

leading.

EXPLORING THE ROLE DIGITAL

REVIEWS & SOCIAL MEDIA

PLAY IN VACATION DECISIONS

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Information on prices/room rates and

surrounding attractions is what people

look for first and foremost when

searching online for travel information.

US travelers searched more for

information on quality of facilities and

cleanliness, while APAC travelers looked

for information on special

packages, weather and accessibility. They

are also more concerned about the

political stability of the destination, as

compared to the other regions. Travelers

in EMEA searched for information on

quality of service and facilities, weather

and cleanliness.

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Breaking down into regions, travelers in

APAC have much less trust in travel

columns and have a slightly increased

preference for professional travel guides

comparatively. Segmenting by gender,

men are more likely to trust professional

reviews, while women prefer vacation

reviews.

Independence of reviews is very

important The independence of reviews is seen as

very important and this is linked directly

to trust and believability. Independence

is judged on balance of comments. As

such, reviews written by a person

involved in tourism (authority on the

subject or someone who openly

represents an organization) were seen as

less independent.

GLOBALLY, WEBSITES WITH VACATION REVIEWS WERE THE

MOST POPULAR FOLLOWED BY PROFESSIONAL TRAVEL

GUIDES AND TRAVEL COLUMNS.

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In terms of demographics, more frequent

travelers make the most use of social

media networks and those aged 25-34 are

the most likely to use social media

networks to get ideas and inspiration for

their travel plans.

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INSIGHTS

When looking at digital reviews, first and foremost

travelers want information around prices and the

surrounding attractions within the vicinity of their

intended destination. This suggests that reviews

might benefit from including more content from

independent / peer sources like vacationers and

incorporate a rating on value for money aspects to

aid consumer decisions. As the independence of the

review and trust levels are important considerations,

individual providers’ campaigns should offer tools to

encourage reviews but not unduly influence the

positivity of the review.

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Travelers in APAC are more likely to click

on online links and ads to purchase

accommodation or transportation tickets.

US travelers were the least likely to

purchase accommodation and

transportation tickets from tourist board

websites in comparison to the other

regions. Comparatively, EMEA travelers

were least likely of the regions’ travelers

to use online travel websites for

accommodation/transport and tickets to

attractions/activities.

PURCHASING PREFERENCES

KEY DIFFERENCES IN THE ONLINE PURCHASING PREFERENCES BETWEEN TRAVELERS FROM THE THREE REGIONS

INSIGHTS

The insights tell us that while there

are similarities on how travelers gain

inspiration and select vacation

destinations and what to do while on

vacation, there are key differences

on how they fulfill the plans and

chose to transact. It would pay to

consider these variables when

planning activations or campaigns

that are global or regionally focused

or when considering which

purchasing trends to build upon or

encourage.

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TECHNOLOGY ON VACATION KEEPING IN TOUCH WITH FAMILY/FRIENDS IS BY FAR THE MOST IMPORTANT USE OF MOBILE DEVICES WHILE ON VACATION

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It’s a global trend that travelers place

great importance on keeping in touch

with friends and family with their mobile

device. People from APAC use their

mobile devices much more on vacation

than anywhere else, particularly doing

work-related emails.

CHECKING SOCIAL MEDIA NETWORKS ON A

MOBILE DEVICE IS MORE COMMON THAN

CHECKING THE NEWS

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Over 50% of people are likely to

download travel apps related to their

vacation before they go. Overall, APAC

travelers have a much greater tendency

to download travel apps with only 11%

not using them compared to 38% of US

travelers. This correlates with the number

of people with smartphones/tablets.

The most popular app is (by 15%) Google

Maps. Taking Google Maps out, the more

generic ‘maps’ and ‘Tripadvisor’ become

the most prominent apps to be

downloaded before going on vacation.

City guides, local weather, restaurant

finder apps and public transportation

apps are also very popular while on

vacation.

MAJORITY OF TRAVELERS DOWNLOAD TRAVEL APPS

BEFORE GOING ON VACATION WITH MAPS BEING THE

MOST POPULAR

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INSIGHTS

Having Internet connectivity on devices such as

smartphones, notebook computers and tablets while

on vacation is crucial for staying in touch with loved

ones. Travelers in the APAC region relax less on

vacation than their counterparts in EMEA and NA,

with nearly a quarter still checking work emails whilst

on vacation.

The majority of people download apps before they go

on vacation and the most popular have to do with

location (where people can save time in finding

desired places) and weather (people can plan their

activities depending on the weather).

Interestingly, people use mobile devices more for

social media especially to stay in contact with friends

and family than keeping up-to-date with current

affairs. This shows that people like to stay on track

with their social life back home even while

vacationing but are less concerned comparatively

about news and current affairs.

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Interestingly, nearly half the respondents

would be persuaded to get more involved

in social media on vacation if free WiFi

was available. A quarter of people stood

firm and could not be persuaded to use

social media while on vacation.

WIFI CONNECTIVITY IS CATALYST

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Independent of location, consumers

highlighted certain common values when

traveling, including a desire to share and

base decisions on honest, compelling

content about individual travel

experiences.

Positive experiences are more likely to be

posted, with APAC seeming to post the

most positive comments.

There are also clear variations in what

travelers share online regarding their

vacations. APAC travelers enjoy

commenting about shopping and fine

food more than anywhere else.

EMEA travelers comment about

historical sites more than the other

regions, which correlates to their interest

in them. The same can be said about US

travelers and their comments on

museums and galleries as well as

amusement/theme parks.

POSITIVE EXPERIENCES ARE MORE LIKELY TO BE POSTED

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Sharing self made videos or photos are

the most popular action during and post

vacation. 25% of respondents are

proactively writing reviews after a

vacation versus 20% during the vacation

itself.

APAC travelers are much more likely to

interact on social media networks while

on vacation such as sharing blog posts or

news stories related to their travel

destination, “liking” the location on a

social media network and checking-in at a

physical location. However, US

vacationers are much more likely than

vacationers in other regions to write a

review on a travel related forum while

on vacation.

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More than a third of respondents said

they would create or share content online

if they thought it would be of interest to

family and friends.

But then again, travelers could also be

persuaded via loyalty discount schemes

(“what’s in it for me?”).

CONTENT THAT IS DEEMED INTERESTING TO OTHERS IS AN

IMPORTANT FACTOR IN PERSUADING PEOPLE TO CREATE

MORE ONLINE CONTENT AND GET MORE INVOLVED IN

SOCIAL MEDIA NETWORKING SITES

CONTENT THAT IS DEEMED INTERESTING TO OTHERS IS AN

IMPORTANT FACTOR IN PERSUADING PEOPLE TO CREATE

MORE ONLINE CONTENT AND GET MORE INVOLVED IN

SOCIAL MEDIA NETWORKING SITES CONTENT THAT IS DEEMED INTERESTING TO OTHERS IS AN

IMPORTANT FACTOR IN PERSUADING PEOPLE TO CREATE

MORE ONLINE CONTENT AND GET MORE INVOLVED IN

SOCIAL MEDIA NETWORKING SITES

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INSIGHTS

The impact of online platforms and social media

networks in the travel tourism space is becoming

more pervasive. This can be seen by the growth in

travel related apps which drive check-ins, likes, and

posts. This trend is likely to continue and industry

players must understand motivating factors and

harness the power of online engagement by

connecting communities based on interests. Also an

interesting trend to follow will be how industry

players evolve their outreach and activations with

travelers with an integrated, authentic and influential

approach locally, regionally and globally.

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The study’s data suggests that travel and

tourism operators need to center their

core business strategies around customer

service based on this type of market

insight. Our data details the channels

through which travelers are making

decisions and purchases and these

channels differ greatly according to

location and age. The travel and tourism

industry must make decisions based on

insights particular to their own

businesses, particularly by developing

market-specific buyer persona profiles

based on research, workshops and

analysis, rather than aiming for sweeping

conclusions about “travelers” as a whole.

Our research also suggests that

businesses stand to gain significantly if

they can deliver proactive and immediate

customer service, with additional benefits

stemming from integration across

channels and platforms. Many industry

leaders, including several of Text100’s

clients, have begun integrating social

media with other channels to drive

successes in this area. Finally, the data

confirms that customer decisions are

increasingly – though not exclusively –

based on content created and shared by

peers. By offering customers the

technological infrastructure needed to

create, share and receive content about

travel experiences, businesses can

leverage this growing social capital to

establish themselves as operators of

choice in an increasingly fragmented

industry with rapidly declining barriers to

competition and entry.

In short, travel and tourism operators

need to engage their leads and customers

with multichannel integrated

communications, aiming to foster loyal

brand communities based on a traveler’s

natural desire to talk about and

recommend good experiences.

CONCLUSION

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TEXT100 DIGITAL INDEX:

TRAVEL & TOURISM

The Text100 Digital Index: Travel &

Tourism study was conducted by Redshift

Research in October 2012 and consists of

4600 online interviews spanning 13

countries. All respondents had traveled

for leisure purposes in the last 12 months,

or intended to do so in the next 12

months. Responses were balanced across

regional, age and gender demographics.

This study is part of Text100’s Digital

Index series, which aims to deliver

insights specific to a range of industries

experiencing rapid change as a result of

digital technology adoption.

ABOUT TEXT100

We are the I.D.E.A. agency. We help our

clients understand what matters to their

audiences and create integrated stories to

participate in conversations that inspire

action. As a global communications

consultancy, we use our I.D.E.A.

consulting process to develop audience-

focused campaigns that are insightful,

creative, impactful and focus on digital

environments as well as traditional media

and influencers. We have a global staff of

more than 500 and a direct presence in

30 cities worldwide.

We work with many of the world’s elite

brands and industry pioneers in travel

and tourism, entertainment, technology,

telecommunications, healthcare,

automotive and energy all of whom

engage Text100 to think differently and to

be innovative in today’s fast moving

communications world. Our client roster

includes British Airways, KAYAK.com,

AirBnB, Sofitel, MTV, Food Network,

Facebook, IBM, Skype, Cisco, Vodafone,

PayPal, and Lenovo.

Our Text Factor makes us different and

has been praised around the world. We

have been recognized as the leading

Digital Consultancy in APAC, the Best

Midsize Agency to Work For in the US,

and one of the UK’s Best Small

Companies. For more information about

Text100, please visit

http://www.text100.com.

ABOUT

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CONTACTS

ANNE COSTELLO Regional Director (APAC)

[email protected]

Tel: + 61 2 9956 5733

CECILE MISSILDINE Regional Director (EMEA)

[email protected]

Tel: +33 1 56 99 71 32

ROWAN BENECKE Regional Director (US)

[email protected]

Tel: +1 212 331 8445