Travel distribution & marketing barometer may 2011

Travel Distribu.on & Marke.ng Barometer

Edi.on 1

May 2011

About the Travel Distribu.on & Marke.ng Barometer

EyeforTravel conducted a global survey amongst key travel execu7ves in January to February 2011 with the aim of inves7ga7ng distribu7on and marke7ng performance and perspec7ves for the quarter. This is the first edi7on of the Travel Distribu7on & Marke7ng Barometer. It’s intended to be an ongoing research study designed to act as a barometer for the global travel industry and provide richer intelligence to enable a greater understanding of current and future distribu7on and marke7ng trends. An online survey will con7nue to be conducted to gather up to the minute opinions and track ac7vi7es of travel companies. The results will produce invaluable data and allow a consistent and compara7ve analysis of trends across sectors and regions.

This edi7on was completed by 550 different travel suppliers and intermediaries varying in size and sector across the world. Below we can view the number of companies that responded from each country involved in order to help understand the weigh7ng of our results. It is evident that some regions (such as Africa) are weaker in terms of volumes and we want to point out that the findings for this region par7cularly should be referred to as interes7ng but insight rather than a sound sta7s7cal representa7on.

United StatesUnited Kingdom

IndiaAustralia

ChinaSingapore

SpainNetherlands

GreeceFrance

GermanyThailand

ItalyBrazil

IndonesiaRussian Federation

SwitzerlandIreland {Republic}

NorwayPortugalBelgiumJapan

MalaysiaPhilippinesArgentinaBulgaria

ColombiaCyprus

DenmarkMalta

New ZealandTurkey

AfghanistanAustria

BangladeshCanadaChile

LithuaniaMauritius

NepalPakistanSri LankaBarbadosCosta Rica

CroatiaFiji

FinlandHungary

Korea SouthMexicoSloveniaSwedenTaiwan

TanzaniaUnited Arab Emirates

Uzbekistan

0 38 75 113 150

1111111111111122222222223333334455556667777

9111111

1820

222323

3359

67117

“What country are YOU based in?”

The first chart below explains the involvement of our respondents globally in terms of geographical regions. For example, 56% of companies involved in our survey have offices in Western Europe.

This second chart indicates the actual market responsibility of our respondents and while we refer to the specific loca7on (country) in which a respondent is permanently based (above), we are also interested in the regions they are responsible for targe7ng on the basis that this is likely to influence their ac7vi7es and perspec7ves. We can see below for example that 40% are targe7ng Western European markets whereas 56% have offices in that region (above), but also 35% selected ‘global’ which would include all markets. Overall, our survey results present a good representa7on for all regions throughout the world which has allowed us to offer our readers a very interes7ng picture globally.

Global

West Europe

East Europe

North America

Latin America

Asia / Pacific

Australia/New Zealand

Middle East

Africa

0% 10% 20% 30% 40%

9%

14%

16%

28%

13%

31%

22%

40%

35%

Which regions / markets is THE OFFICE YOU ARE REPRESENTING responsible for targeting?

West Europe

East Europe

North America

Latin America


Asia & Pacific

Middle East

Africa

0% 15% 30% 45% 60%

15%

21%

43%

26%

20%

45%

25%

56%

Does the company you represent have offices in any of the following regions (including your own)?

Contents

SecOon 1: Distribu(on Channels SecOon 2: Online Penetra(on (for suppliers)SecOon 3: Direct vs Indirect Distribu(on (for suppliers) SecOon 4: Current Sen(ment Towards the OTA-‐Supplier Partnership SecOon 5: Sources of Online Traffic In Travel SecOon 6: Marke(ng Channels SecOon 7: Marke(ng Budgets SecOon 8: Online Marke(ng Ac(vi(es -‐ What’s Working SecOon 9: Social Media Par(cipa(on SecOon 10: Mobile SecOon 11: Next Quarter Budgets SecOon 12: Biggest Challenges SecOon 13: What Has The Industry Learnt Recently?SecOon 14: Biggest Opportuni(es Iden(fiedSecOon 15: Next Big Thing in Travel Distribu(on & Marke(ng

If you’d like to join our research panel please contact Tim Gunstone: [email protected]

mailto:[email protected]


SecOon 1: Distribu.on Channels

Distribu.on Channels

Booking Channels

Figure x analyses channels for bookings (volumes) over the last quarter represen7ng the respondents of our supplier focussed survey. 72% have experienced an increase in bookings direct from their websites with only a small propor7on registering a decline (5%). Bookings direct via voice/call centre have declined for 20% of respondents and increased for 29%. 42% have not experienced any change from this channel. 30% have experienced an increase in bookings via mobile device, 52% have not had bookings at all via this channel. 47% have had an increase in bookings from 3rd par7es, 31% from GDS/agency and 24% from tour operators.

Figure 1: Have your bookings (volumes) generated via the following channels increased or decreased over the last 3 months (from the previous quarter)?

In the charts below we have then explored our data based on the regions that respondents are responsible for in order to inves7gate any interes7ng trends geographically. Direct distribu7on from their websites shows no major varia7ons. The majority have experienced an increase across all regions. Those represen7ng La7n America register the highest number of respondents with an increase at 79%. It clear that in all markets, companies have either had an increase in bookings direct from their websites or the volumes have stayed the same. The largest decline across all regions is bookings from tour operators. The GDS/agency channel closely follows but s7ll around a quarter of respondents in most regions have experienced an increase from this channel.

3rd party internet channels have been genera7ng more bookings for most regions as well. Most are hovering around the 50% mark except La7n America where 36% of respondents have seen an increase. Fewer companies from those represen7ng Australia/NZ have experienced a decline from these indirect channels in comparisons tother markets. Those represen7ng North America, Africa and the Middle East seem to have been having the most ac7vity in terms of mobile bookings. For North America for example, 37% of respondents have seen an increase in bookings direct from a mobile device. North America have also registered a larger propor7on with an increase in bookings via voice/call centre (31%). The biggest decline is from those represen7ng Eastern Europe (24%).

Increased About the same volume Decreased No bookings via this channel

Direct from your website

Direct via voice/call centre

Direct from a mobile device

Third party Internet channel (e.g. OTA)

GDS/agency

Tour operator

0% 25% 50% 75% 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%

Booking Channels By Region

Western Europe

Eastern Europe

North America


Tour operator

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%

% of respondents representing Western Europe



Tour operator

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%

North America


Tour operator

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%

Eastern Europe

Australia / New Zealand

Asia Pacific

Africa


Tour operator

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


Tour operator

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


Tour operator

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

La.n America

Middle East

Booking Channels By Company Sector

Considering movements in bookings channels based on company sector we can see that there are again no major trends in this category between sectors, except that a larger propor7on of DMCs/tourism boards have experienced a decline (27%) in bookings direct from their website. Cruise, Car Rental and Airline have registered the largest propor7ons with an increase at 75%, 75% and 73% respec7vely.

There are more varia7ons between sectors when looking at bookings via voice/call centre. 50% of Cruise have registered an increase from this channel, but on the other hand 50% have registered a decline so there is certainly some movement in this sector and varying trends between companies. It is clear that although this channel is declining for a number of companies across all sectors, such as 21% of Hotel and Other Accommoda7on, and a quarter of Car rental companies, it is s7ll an ac7ve channel for bookings.

Bookings via mobile devices are not common in any sector, apart from perhaps Car Rental where only 13% of respondents have received no bookings from mobile at all. Car Rental are evidently the most ac7ve in the mobile space at the moment and a huge 75% of respondents have experienced an increase from this channel. Hotel and Airline are also faring well with 32% and 35% respec7vely registering an increase in mobile bookings which is significant. The largest decline is in the DMC/tourism board category.


Tour operator

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%

Latin America


Tour operator

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%

% Middle Esst

Direct from Website


Direct from mobile device

Tour operator

Other accommodation

Hotel

DMC / tourism board

Cruise

Car Rental

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%

% of respondents

Tour operator

Other accommodation

Hotel

DMC / tourism board

Cruise

Car Rental

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%

% of respondents


Tour operator

Other accommodation

Hotel

DMC/tourism board

Cruise

Car Rental

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%

% of respondents

Third party internet channel (e.g. OTA)

GDS/Agency

Tour Operator

Tour operator

Other accommodation

Hotel

DMC / tourism board

Cruise

Car Rental

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%

% of respondents


Tour operator

Other accommodation

Hotel

DMC / tourism board

Cruise

Car Rental

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%

% of respondents

Other accommodation

Hotel

DMC/ tourism board

Cruise

Car Rental

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%

% of respondents

SecOon 2: Online Penetra.on (for suppliers)

Online Distribu.on Propor.ons for Suppliers

Over the last quarter and across all companies globally, the average propor7on of total booking volumes that travel suppliers distributed via online channels was 41%. As expected the extent of online distribu7on varies amongst respondents. While par7cipants were asked approximate propor7ons to the nearest percent, we have grouped the propor7ons into ranges to make it easier to iden7fy trends.

With reference to the chart below we can see that 7% of respondents distributed between 91% and 100% via online channels and 9% in the range of 76% to 90%. That results in 16% of travel suppliers distribu7ng over ¾ of their products via online channels in the last quarter. 19% of companies distributed between 50% and 75% online, and 21% between 30% to 49% online. The largest group at 29% sit within 11% to 29% range. It is revealed that 14% rely heavily on offline channels with less than 10% of their product volume sold online, but we can see clearly in the graph that a large propor7on have now shihed over 50% of their product distribu7on online.

Approximately what proporOon (%) of your total bookings (volume) were distributed via online channels over the last 3 months?

Looking further into the data we have considered the varia7ons based on some of the top travel markets looking at Europe specifically against some other key global markets. The top travel markets refer to the specific country in which the respondent is based. The top band (91% to 100%) is most dominant amongst UK respondents. A significant 21% fall within this range. Germany (17%), China (7%), Spain (6%) and the US (2%) have also indicated high dominance of online channels for their businesses. On the other end of the scale, China indicates the dominance of offline channels with 40% distribu7ng less than 10% of their product volume online. 35% of Australian respondents and 27% of Indian respondents also fall within this range. The UK illustrates a rela7vely even spread of online distribu7on propor7ons but edging on the higher bands of over 50%. Spain is not too dissimilar to the UK but with a larger group within the 30% to 49% range. Germany and France are dominated by companies in the 11% to 29% range, Germany also includes 17% at the top end of the scale, but neither are represen7ng companies with very low online distribu7on levels. Italy very evenly falls within the middle ranges but with a compara7vely high propor7on amongst the 76% to 90%.

7%

9%

19%

21%

29%

14%

91% -‐ 100%76% -‐ 90%50% -‐ 75% 30% -‐ 49%11% -‐ 29%Less then 10%

0%

25%

50%

75%

100%

UKSpain

Germany

France

Italy

India

China

Brazil

Australia

United States

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%

Whilst it is important to consider the loca7on where the company is based, more importantly it is relevant to consider where the majority of their customers come from as it is the level of online penetra7on in their source markets and specific characteris7cs that may have a real influence on the results. It must however be realised that the results will be somewhat skewed as this is not data in rela7on to that specific market only, but indica7ve. For example, those who are distribu7ng predominantly to Africa are selling between 11% and 29% via online channels. Of those distribu7ng predominantly to the Middle East, 21% sell 90% via offline channels.

Propor.on Distributed Online Based On Where Majority Of Customer Come From

0%

25%

50%

75%

100%

West Europe

East Europe

Asia / Pacific

North Am

erica

Latin Am

erica

Africa


Middle East0%

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%

Less then 10% 11% -‐ 29%30% -‐ 49%50% -‐ 75% 76% -‐ 90%91% -‐ 100%

SecOon 3: Direct vs Indirect Distribu.on (for suppliers)

Direct vs. Indirect Distribu.on (Suppliers)

Travel suppliers distribu7ng their product online either sell via direct channels or via an intermediary (indirect). In this survey of all suppliers combined globally the average propor7on of direct distribu7on is 49%. The chart below indicates the varia7on in online distribu7on pamerns amongst respondents for example 14% of respondents are distribu7ng less than 10% of their online sales through direct channels, which means 90% is sold via an intermediary. 26% of all respondents are distribu7ng over ¾ of their online sales direct. When asked what their ideal propor7on of direct sales would be, this averaged at 62%

Propor.on of respondents in the direct distribu.on propor.on categories

Propor.on of respondents in the indirect distribu.on propor.on categories

Whilst the figures below should match neatly with the figures above there may be some discrepancy here as it was led up to the respondents to be as accurate as possible.

What we can deduce from the data is that travel suppliers are not en7rely reliant on online intermediaries for their sales whilst they are clearly playing a significant role for the suppliers.

0%

8%

15%

23%

30%

Less then 10%

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%

% of respondents

Aetudes Towards Direct vs. Indirect Distribu.on

The barometer is looking to understand the sen7ment of the travel industry during the last quarter. It looks to have been a generally posi7ve quarter for online sales with 28% feeling that their direct online sales were bemer than they expected and 26% for indirect sales. Both direct and indirect sales were as expected for the majority of respondents, 44% and 47% respec7vely. 9% of respondents were extremely posi7ve sta7ng that their direct sales were much bemer than expected and 8% for indirect sales. Those on the nega7ve end of the scale amounted to 18% in rela7on to direct and 17% for indirect sales. Only a small propor7on stated either online channel was much worse than expected.

How do you feel about the results of your direct and indirect sales over the last quarter

The role of online intermediaries in the distribu7on of travel supplier products is clearly significant. Over half of all respondents state that indirect online channels have been extremely or very important to their company in the last 3 months. Also adding those respondents that consider indirect channels ‘important’ it results in 85% of respondents.

Whilst suppliers are aiming to distribute a higher propor7on of online sales via direct channels, it is clear that intermediaries are rates as a channel by most. 47% have increased the number of online third party distribu7on channels that they have worked with over the last quarter and 44% are maintaining the same number. Just 6% have reduced the number of partners and 4% did not work with any at all.

Please rate below how important INDIRECT online channels have been to your company in the last 3 months

Direct Indirect

Much better than I expected

Better than expected

As expected

Worse than expected

Much worse than expected

None distributed via this channel

0% 13% 25% 38% 50%

2%

2%

15%

47%

26%

8%

1%

3%

15%

44%

28%

9%

Extremely important

Very important

Important

Neither important nor unimportant

Not important

0% 10% 20% 30% 40%

4%

11%

32%

34%

19%

% of respondents

Has the number of online 3rd party distribu.on channels you’ve worked with increased or declined in the last 3 months compared to the previous quarter?

Considering the different travel sectors, Cruise are the most reliant upon indirect channels for online distribu7on with 50% ra7ng them extremely important. In comparison only 8% of airlines stated them extremely important but a further 38% rate them very important. The accommoda7on sector rate them highly with Hotel resul7ng in 61% of respondents ra7ng indirect channels either extremely or very important. 13% of the Other Accommoda7on sector rate indirect channels as ‘not important’ which could perhaps be in rela7on to the type or size of inventory. Indirect channels are less relevant for DMCs/tourism boards which is understandable based on the nature of their product.

Please rate below how important INDIRECT online channels have been to your company in the last 3 months

Increased

About the same volume

Declined

We did not work with any

0% 13% 25% 38% 50%

4%

6%

44%

47%

% of respondents

Suppliers

Tour operator

Other accommodation

Hotel

DMC / tourism board

Cruise

Car Rental

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%

% of respondents

Extremely important Very important Important Neither important nor unimportant Not important

Has the number of online 3rd party distribu.on channels you’ve worked with increased or declined in the last 3 months compared to the previous quarter?

Echoing the results above, Cruise have been increasing the number of 3rd party distribu7on channels they are working with in the last quarter. Tour Operator, Other Accommoda7on, Hotel, DMC/tourism board and Airline have reduced the number, 10%, 8%, 4%, 9% and 12% respec7vely. The tour operators, which can blur over the borders of supplier and intermediary, Other Accommoda7on and the DMC/tourism board sectors have propor7ons that do not work with 3rd party partners at all. Cruise and Car Rental have both either increased or remained consistent with the number of indirect channels.

Do you mind what the ra.o of direct vs. Indirect distribu.on is?

It has been established that indirect distribu7on channels are playing an important role for online distribu7on. When asked if they mind what the ra7o of direct vs indirect distribu7on is 84% stated yes. Due to cost of sale and other such reasons suppliers are unexpectedly preferable towards direct distribu7on. The chart below indicates the ideal propor7on of direct sales as a total of online sales. 12% are aiming for 100% direct distribu7on whereas the average for all respondents combined as men7oned earlier is 62%.

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

Tour operator

Other accommodation

Hotel

DMC / tourism board

Cruise

Car Rental

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%

% of responents

84%

16%

YesNo

Ideal propor.on of direct sales

How fair suppliers feel the partnership with OTAs are

There is currently some debate amongst the travel industry as to the value of the partnerships between suppliers and OTAs. We ques7onned the fairness of the current partnership with both suppliers and OTAs. The chart below illustrates that most suppliers are siong on the fence but it’s weighed towards being more unfair. 33% feel that it is neither fair nor unfair., and 23% ‘quite unfair’. Results from the more open ques7ons reveal that while elements of the partnership are not enormously praised they are channel of distribu7on that are valued in some respects. Only 3% state it is extremely unfair.

How fair intermediaries feel the partnership with suppliers is

The intermediary perspec7ve is not too dissimilar but weighted more to being fair. 35% state neither fair not unfair and 32% state it’s quite fair.

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%%

of respo

nden

ts

Ideal % on online distribution via direct channels

Extremely FAIR

Very fair

Quite fair

Neither fair nor unfair

Quite unfair

Very unfair

Extremely UNFAIR

0% 10.0% 20.0% 30.0% 40.0%

3%

7%

23%

33%

29%

5%

1%

% of respondents

Extremely FAIRVery fairQuite fair

Neither fair nor unfairQuite unfairVery unfair

Extremely UNFAIR

0% 10.0% 20.0% 30.0% 40.0%

3%

2%

16%

35%

32%

11%

2%

SecOon 4: Current Sen.ment Towards the OTA-‐Supplier Partnership

Sen.ment towards the OTA-‐Supplier Partnership

Below we highlight some of the key themes emerging in this edi7on surrounding the partnership between the Online Travel Agents (OTAs) and suppliers. In the first image we can iden7fy that the key concern is that commission rates are too high and margins are being squeezed. Rate parity is another major concern in the current situa7on.

What suppliers dislike about the partnership with OTAs

From the OTA perspec7ve, the image below illustrates their concerns. The main theme is around availability, or lack of, and the growth in direct bookings of course. Their are concerns around the level of technology that suppliers invest in to maximise the partnership and are looking for developments in this area. Readers can study the image to pick up some of them other issues. The larger the word the more common it was in the responses.

What OTAs dislike about the current partnership with suppliers

Looking at more posi7ve sen7ment, the OTAs feel that suppliers are really good at being flexible and value this characteris7c in a partner that is having to operate in such a dynamic industry. They feel the range of products on offer are great and they’ve really improved in their online presence to help the partnership reach new levels. Suppliers that are efficient and willing to work with the OTAs are rated.

What do the OTAs like about the partnership with suppliers?

While suppliers have iden7fied (as we show above) their concerns over the commission rates, the OTAs are s7ll hugely valued as a distribu7on and marke7ng channel in today’s market. The level of reach that they have the ability to drive for distribu7on and overall marke7ng purposes is the most common theme. It is also noted that the strength of their brands in some of the more marginal markets makes the partnership a very valuable one. For many travel companies the OTAs are brining them in incremental business and any sale is considered good.

What suppliers like about the partnership with intermediaries…

Based on the supplier sector, there is some varia7on in aotudes towards the supplier -‐ OTA partnership. DMCs/tourism boards make up the majority who believe the partnership is unfair with 27% of this group sta7ng it is very unfair. Again due to the nature of their product it is difficult to accurately cross compare with the other travel sectors. Other Accommoda7on have a propor7on who consider it very unfair sugges7ng perhaps that the characteris7cally low volume or price inventory is not as well regarded in the OTA sector or that there are not enough niche operators serving the purpose effec7vely. While Cruise rely heavily on indirect channels 50% feel that the partnership is quite unfair. 4% of the Hotel sector currently feel that the partnership is extremely unfair and 8% of the airlines. 43% of Hotel respondents feel that the partnership is unfair to some degree. Airlines are more posi7ve with 74% either neutral or fair to some degree.

Supplier Perspec.ve On OTAs

Over half (52%) of all travel supplier respondents agree that they cannot compete in the market without partnering with OTAs. 17% are neutral. The remaining 30% either disagree (21%) or disagree strongly (9%). While commission costs are ohen raised as an argument against the OTA partnership, 44% believe that the cost is worth the sale. 33% are however in delibera7on and an addi7onal 24% do not think the cost is worth the sale. Respondents have mixed feelings about whether the OTA has a threatened future. 36% agree that the OTA will lose market share over the next few years. 41% disagree. 63% do feel that the current OTA model needs to change, no one diagrees strongly. Again feelings are mixed as to whether OTAs are compe7tors of suppliers. Almost half of the respondents agree in some respect with 12% agreeing strongly. 24% disagree and 4% disagree strongly. 33% feel that their marke7ng proficiencies are on a par with OTAs these days and another 33% disagree with the statement. 34% are either agree nor disagree.

Tour operator

Other accommodation

Hotel

DMC / tourism board

Cruise

Car Rental

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%

% of respondents

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

I cannot compete in the market without partnering with OTAs

The high cost of OTA commission is not worth the sale

OTAs will lose market share over the next few years

The OTA model needs to change

OTAs are negatively impacting supplier brands

OTAs are competitors of suppliers

My company’s marketing proficiencies are on a par with OTAs these days

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%

Agree strongly Agree Neither agree nor disagree Disagree Disagree strongly

Supplier Perspec(ve On OTAs by Company Sector

Cruise and Car Rental sectors show up as the sectors more reliant upon the OTAs. While no one in the Cruise sector agreed strongly with the statement that ‘I cannot compete in the market without partnering with OTAs’, 50% disagreed. Hotels are revealed as the sector with the most value placed on OTAs; 66% agree to some degree that they cannot compete without them and only 17% disagreed. Other Accommoda7on reveal a different pamern with 63% disagreeing with the statement. Airlines are mixed but more neutral than Hotels with half agreeing that they are vital to their compe77veness but 38% disagreeing.

I cannot compete in the market without partnering with OTAs

The high cost of OTA commission is not worth the sale

Above Cruise revealed that they are not necessarily uncompe77ve without OTAs but they 75% do feel that a high cost of commission is worth the sale. 25% do not agree with the statement. Apart from DMCs/tourism boards (most are neutral), most sectors show the value they place on OTAs as a distribu7on channel. Car Rental are the largest group to agree with the statement (38%).

Tour operator

Other accommodation

Hotel

DMC / tourism board

Cruise

Car Rental

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%

% of respondents


Tour operator

Other accommodation

Hotel

DMC/ tourism board

Cruise

Car Rental

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%

% of respondents


OTAs will lose market share over the next few years

The respondents that think that OTAs will lose market share over the next few years is dominated by the Cruise and Car Rental sectors, closely followed by the Hotel and Airlines.

The OTA model needs to change

The Car Rental sector are the most adamant that the OTA model needs to change. 88% agree with the statement. Hotels follow with 73% agreeing. 25% of the Cruise sector are happy to work with the current model but 50% do agree a change is required.

Tour operator

Other accommodation

Hotel

DMC / tourism board

Cruise

Car Rental

Airline

0% 25% 50% 75% 100%

12%

0%

0%

9%

6%

4%

12%

35%

38%

50%

45%

32%

50%

31%

15%

0%

0%

18%

21%

21%

35%

31%

38%

25%

27%

30%

21%

21%

8%

25%

25%

0%

11%

4%

2%

% of respondents


Tour operator

Other accommodation

Hotel

DMC / tourism board

Cruise

Car Rental

Airline

0% 25% 50% 75% 100%

0%

0%

0%

0%

1%

0%

0%

8%

0%

25%

9%

6%

13%

19%

39%

13%

25%

27%

21%

38%

40%

42%

75%

50%

55%

52%

38%

31%

12%

13%

0%

9%

21%

13%

10%

% of respondents


OTAs are nega.vely impac.ng supplier brands

Car Rental companies currently feel that OTAs are nega7vely affec7ng supplier brands, 25% strongly agree and 38% agree. The Airline companies appear least affected in this respect. For the Hotel sector 44% agree to some degree but this is not across the board; 28% have not experienced this.

OTAs are compe.tors of suppliers

Our Cruise par7cipants feel that the OTAs are compe7ng with them, but we have established that the partnership is realised as valuable. The Car Rental sector which competes heavily on price understandably are targe7ng the same consumer for the lowest possible price. Hotels and Other Accommoda7on are split with around half agreeing with the statement, 24% neutral and 29% disagree. Airlines display a similar pamern. Tour operators are more evenly spread across the scale.

Tour operator

Other accommodation

Hotel

DMC / tourism board

Cruise

Car Rental

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%

% of respondents



Tour operator

Other accommodation

Hotel

DMC / tourism board

Cruise

Car Rental

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%

% of respondents

My company’s marke.ng proficiencies are on a par with OTAs these days

Car Rental companies feel the heat from the OTAs as they are compe7ng with them but realise their marke7ng power. Cruise is the opposite with 50% disagreeing perhaps due to the nature of their product which is rela7vely new to the online space and a very high value product. Hotels and Airlines rate the marke7ng ability of OTAs most for their products.

Intermediary feelings about their sales performance over the last quarter

Intermediaries reveal a posi7ve last quarter. 49% feel that their bookings were bemer than expected.

Tour operator

Other accommodation

Hotel

DMC / tourism board

Cruise

Car Rental

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%

% of respondents


Much better than I expected

Better than expected

As expected

Worse than expected

Much worse than expected

N/A

0% 10% 20% 30% 40%

4%

2%

14%

33%

38%

11%

Considering the following travel products, how have your sales volumes changed over the last 3 months? -‐ Intermediaries only

Breaking down the specific products distributed via the intermediaries, there have been increases across sectors and the most success is with flight and hotel products. The largest increase has been in Hotel product sales with 49% of respondents having experienced an increase. Flight sales have been increased by 4%. Around a quarter of respondents have had consistent sales across the sectors. Declines can also be iden7fied in each sector but on a smaller scale, all at 6% except Hotels at 8% of respondents. The sale of dynamic packages has increased for 28% of respondents and 29% have increased the sale of des7na7on ac7vi7es.

Have your bookings (volumes) generated via the following channels increased or decreased over the last 3 months (from the previous quarter)?

The most significant increase in the last quarter for channels from which Intermediaries are receiving their bookings is from their websites. 64% have experienced an increase in the last 3 months and only 7% have experienced a decline. Voice/call centre is remaining to be important with 28% experiencing an increase. 31% didn’t receive any bookings via that channel. While 59% of respondents didn’t receive any bookings via mobile device, it is interes7ng to note that 24% have experienced an increase in the last quarter.

Flight only

Hotel only

Car rental only

Dynamic packages

Destination activities

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 No change Declined We don't offer this Don't know

From your website

Via voice/call centre

From a mobile device

0% 25% 50% 75% 100%

59%

31%

7%

2%

10%

7%

15%

31%

22%

24%

28%

64%


SecOon 5: Sources of Online Traffic In Travel

Sources of Online Traffic in Travel

We asked our survey respondents to list their top sources of online traffic and have created a ‘Wordle’ to help iden7fy the dominant trends. Google is clearly the most influen7al channel for travel companies, bot paid and organic, but par7cularly organic. Search engine op7misa7on is certainly a core requirement for all travel companies to remain compe77ve amongst their peers. We can also see some of the social channels rela7vely prominent, par7cularly Facebook, but also Tripadvisor. It’s the search engines overall however that are leading the way and globally, Google dominates overall.

Today’s main sources of traffic in online Travel

Online Traffic Sources

With reference to the chart below, the largest growth area for web traffic sources over the last 3 months have been from organic search lis7ngs and Facebook. 62% of respondents registered an increase from organic search lis7ngs and 56% from Facebook. Across all traffic sources we can see that there is growth nonetheless. The social media sites listed in the survey are all performing well, Twimer follows Facebook with 39% registering an increase in traffic from here. However we can also see that around a quarter of all companies are not benefiong from many of the social sites. YouTube is not genera7ng traffic for almost half of respondents and Twimer does is not affec7ng 32%. For the 43% of respondents who have registered ac7vity with mobile websites, over half of those have experienced an increase in traffic. For mobile applica7ons it is a similar picture. For those involved with company blogs or online communi7es they also seem to be performing well; of 62% of respondents who ranked this relevant, 32% have seen an increase in traffic from this source and only 3% a decline.

Referring to the potenOal web traffic sources listed below, please indicate in the context of your website, whether traffic volumes have increased or decreased from these sources over the last 3 months.

Traffic Sources By MarkeOng Budget

Analysing results based on the size of annual marke7ng budget shows a few clear trends amongst the different traffic source categories. Please refer to the charts below. Organic search engines lis7ngs displays less of a pamern though with growth across all budget sizes. This makes sense as it can certainly be a lower investment for success from this source. It is surprising however that 17% in the under $25k budget range do not receive any traffic from this source at all but we are unable to inves7gate into the reasons behind this.

Company blogs and online communi7es also do not reveal clear pamerns in the data except that those in the mid range budgets appear to have the most growth in traffic from this source and are the most ac7ve.

Organic search engine listings

Paid search listings

Display online advertising

Email marketing links

Travel meta-‐search sites

Online directories

Affiliates

Facebook

Twitter

YouTube

TripAdvisor

Mobile website

Mobile application

Company blog / online community

0% 25% 50% 75% 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

Organic Search Engine Lis.ngs

Company Blog / Online Community

Mobile Applica.on

Less than $25k$26k -‐ $50k

$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k

$751k -‐ $1 million$1.1 million -‐ $2 million$2.1 million -‐ $5 million$5.1 million -‐ $10 million

$10.1 million -‐ $50 million$51 million -‐ $100 million

$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%

% of respondents

Marketin

g bu

dget


$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k



$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%

% of respondents

Marketin

g Bu

dget



$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k



$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%

% of respondents

Marketin

g Bu

dget

Mobile Website

Firstly, there is a trend showing that those involved in social media and mobile increases in line with larger marke7ng budgets. Yet this is not an en7rely neat trend because 30% of the largest marke7ng budget range, for example, are not ac7ve with mobile websites. This budget range has however registered the most respondents with growth from mobile web traffic. Mobile applica7ons ohen require more investment than a mobile website which is perhaps indica7ve of the trend in that chart. Those in the largest budget category have registered the most growth from this source with 59% of respondents experiencing an increase in comparison to 13% in the smallest range.

Facebook

Social media sources display a trend in rela7on to marke7ng budgets. It is quite clearly pronounced in rela7on to Tripadvisor par7cularly. The trend line is less pronounced in rela7on to Youtube and Twimer. Mid budget companies around the half a million dollar range appear to be the most successful group amongst Facebook and Twimer, registering the largest increases from both sites. Facebook is however helping to drive traffic to companies across all budgets very successfully and almost half of companies with the smallest budgets have experienced an increase which is indica7ve of how effec7ve this has been as a source of traffic for any travel company over the last quarter. There are however s7ll 39% of this budget range that are not taking advantage of the medium, along with a good propor7on of


$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k

$751k -‐ $1 million$1.1 million -‐ $2 million$2.1 million -‐ $5 million$5.1 million -‐ $10 million$10.1 million -‐ $50 million$51 million -‐ $100 million

$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%

% of respondents

Marketin

g Bu

dget


$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k



$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%

% of respondents

Marketin

g Bu

dget

those in other budget ranges too. Twimer has resulted in a similar pamern to Facebook but with fewer experiencing growth across the board. However the ac7vity within the different budget ranges is comparable. Travel companies in all budget ranges appear less ac7ve in Youtube, par7cularly as we reach the lower budget ranges. Less companies overall are registering growth in traffic from this source.

TripAdvisor

Twiper

YouTube

Less than $25k

$50k -‐ $100k

$301k -‐ $400k

$501k -‐ $750k

$1.1 million -‐ $2 million


$51 million -‐ $100 million

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%

% of respondents

Marketin

g Bu

dget


Less than $25k

$50k -‐ $100k

$301k -‐ $400k

$501k -‐ $750k




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%

% of respondents

Marketin

g Bu

dget

Less than $25k

$50k -‐ $100k

$301k -‐ $400k

$501k -‐ $750k




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%

% of respondents

Marketin

g Bu

dget

No major pamerns are iden7fied in the traffic generated from affiliates. It is rela7vely even in the propor7ons that have experienced growth and maintained levels across all budget categories. It can be seen however that almost half of the lower budget companies are not working with affiliates.

Traffic from online directories is also rela7vely consistent across budget categories. Less growth has been experienced from this poten7al traffic source in comparison to other categories.

Affiliates

Online Directories

Travel meta-‐search sites are proving successful for the companies with larger budgets and it could be assumed that many of these companies are airlines which would make sense. 48% of the largest budget category have experienced an increase in traffic from these sites in the last 3 months in comparison to 18% in the lowest budget range.

Email marke7ng links are used more commonly across all budget ranges, although 31% of the lowest budget category are not benefiong from these at all. The largest propor7on of companies with an increase from these sources are in the mid budget ranges such as 67% of those with a budget between $501 -‐ $750k.

Less than $25k

$50k -‐ $100k

$301k -‐ $400k

$501k -‐ $750k




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%

% of respondents

Marketin

g Bu

dget

Less than $25k

$50k -‐ $100k

$301k -‐ $400k

$501k -‐ $750k




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%

% of respondents

Marketin

g Bu

dget

Travel Meta-‐Search Sites

Email Marke.ng Links

Display online adver7sing is more common amongst companies with larger budgets understandably and they have also proved successful in the last quarter. Around half of the larger budget ranges have registered an increase in traffic from their online display adver7sing efforts.

Paid search lis7ngs again are dominated by those with larger budgets. Around half of those in the smallest budget range are not inves7ng in this form of marke7ng. The majority of those that are inves7ng in paid search lis7ngs have experienced an increase in traffic. There is a good propor7on in both display and paid search adver7sing that have not seen much of a change in the last 3 months.

Less than $25k

$50k -‐ $100k

$301k -‐ $400k

$501k -‐ $750k




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%

% of respondents

Marketin

g Bu

dget


Less than $25k

$50k -‐ $100k

$301k -‐ $400k

$501k -‐ $750k




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%

% of respondents

Marketin

g Bu

dget

Display Online Adver.sing

Paid Search Lis.ngs

Traffic Sources by Company Sector

We realise that it is not all about budget in online marke7ng, so taking a look at the results by company sector may reveal some more interes7ng trends. Organic search lis7ngs as with marke7ng budget size does not reveal any major differences amongst sectors. Cruise register the biggest propor7on with an increase in traffic from this source at 86%, the other 14% state that it is not applicable. Meta-‐search sites have experienced the biggest decline in traffic from this source with 40% of the companies registering a decline. It is evidently an important and growing source of traffic for all other travel sectors.

Paid search lis7ngs have worked best for Car Rental and Meta-‐Search companies in the last quarter and Hotel and Other Accommoda7on are not far behind. 43% of Hotel companies have registered a growth in traffic from their investment in PPC.

Less than $25k

$50k -‐ $100k

$301k -‐ $400k

$501k -‐ $750k




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%

% of respondents

Marketin

g Bu

dget

Less than $25k

$50k -‐ $100k

$301k -‐ $400k

$501k -‐ $750k




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%

% of respondents

Marketin

g Bu

dget

Organic Search Engine Lis.ngs

Paid Search Engine Lis.ngs

Hotel

Other accommodation

Airline

Car Rental

Cruise

Destination management company / tourism board

Tour operator

Online Travel Agent (OTA)

Meta-‐search

Other online intermediary

"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%

% of respondents


Hotel

Other accommodation

Airline

Car Rental

Cruise


Tour operator


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%

% of respondents

The transport sector and Cruise have registered the most success from display online adver7sing. Around a third of Hotel and Other Accommoda7on have experienced an increase in traffic from investments here. Most sectors have experienced a decline in traffic from display online adver7sing but in smaller propor7ons.

Cruise stand out as the sector with the most growth amongst the respondents from email marke7ng, 71%. Around half of respondents from other sectors have however seen good growth except meta-‐search sites which have remained predominantly consistent. A good propor7on of Car Rental companies are not u7lising email as a source of traffic genera7on.


Email Marke.ng Links

Hotel

Other accommodation

Airline

Car Rental

Cruise


Tour operator


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%

% of respondents

Hotel

Other accommodation

Airline

Car Rental

Cruise


Tour operator


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%

% of respondents


Travel Meta-‐Search Sites

Affiliates

Travel meta-‐search sites are showing to have made the most posi7ve impact in the Hotel sector with 37% of respondents experiencing traffic growth from these sites in the last 3 months. Most sectors have however experienced more consistency than growth.

Affiliates are working well for the Car Rental and Cruise sectors, growth for 54% and 57% respec7vely. The biggest decline has been for the DMCs/tourism boards at 27%. Meta-‐search sites are not very ac7ve in this marke7ng channel.

HotelOther accommodation

AirlineCar Rental

CruiseDestination management company / tourism board

Tour operatorOnline Travel Agent (OTA)

Meta-‐searchOther online intermediary


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%

% of respondents

Hotel

Other accommodation

Airline

Car Rental

Cruise


Tour operator


Meta-‐search



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%

% of respondents


Online Directories

Referring to the charts below, results in rela7on to Twimer are rela7vely consistent across all sectors. The majority who are par7cipa7ng have experienced growth over the last quarter. Tripadvisor on the other hand is understandably more dominant in the accommoda7on sector. 62% of Hotel companies have registered growth from this channel, Other Accommoda7on is less ac7ve but of those that are included or involved are experiencing good results. This source is less favourable for the transporta7on sector. Facebook is providing good results across all sectors. Well over half of travel companies in each sector, apart of OTAs, have registered a increase in traffic rom this source. DMCs/tourism boards are proving very good results out of those who are par7cipa7ng. YouTube is proving more relevant for suppliers than OTAs and accommoda7on and transport sectors have shown rela7vely similar results. The Cruise sector appear to have had the most growth in the last quarter based on the number of respondents from that sector.

Twiper

Hotel

Other accommodation

Airline

Car Rental

Cruise


Tour operator


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%

% of respondents

Hotel

Other accommodation

Airline

Car Rental

Cruise


Tour operator


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%

% of respondents


Facebook

TripAdvisor

YouTube


AirlineCar Rental





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%

% of respondents

Hotel

Other accommodation

Airline

Car Rental

Cruise


Tour operator


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%

% of respondents

Hotel

Other accommodation

Airline

Car Rental

Cruise


Tour operator


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%

% of respondents

Mobile is working best for the Car Rental sector and 54% of respondents have registered an increase in traffic from mobile applica7ons. Airline companies are also more ac7ve in comparison to other sectors and are showing a similar pamern. Hotel companies also seeing growth with 28% of respondents experiencing increased traffic from mobile applica7ons which is a large propor7on of the 43% who are par7cipa7ng.

In terms of mobile websites, again the Car Rental and Airline sectors are the most ac7ve and have proved the best results. 62% of Car rental companies have registered a growth in traffic from mobile websites. There appears to be less ac7vity amongst OTAs but 21% have s7ll registered growth.

Company blogs and online communi7es show more consistency across sectors. The best results are in the Car Rental and DMC/tourism board sectors.

Mobile Applica.on

Mobile Website

Hotel

Other accommodation

Airline

Car Rental

Cruise


Tour operator


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%

% of respondents



AirlineCar Rental





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%

% of respondents

Company Blog / Online Community

Hotel

Other accommodation

Airline

Car Rental

Cruise


Tour operator


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%

% of respondents

SecOon 6: Marke.ng Channels

Marke.ng Channels

Analysing data from all respondents of both supplier and intermediary surveys, organic search engine lis7ngs have proved to be the most influen7al marke7ng channel for bookings over the last 3 months for the largest propor7on of travel companies (38%). PPC is the second most rates channel (22% of respondents) and email marke7ng the third (19%). Social media is rated by 14%.

Considering the markeOng channels below, please choose ONE which you'd highlight as the most influenOal to your bookings over the last 3 months?

Influen7al channels do vary across sectors. Email marke7ng is rated most by Cruise and Offline intermediary sectors; 43% and 38% respec7vely. This is not found influen7al at all by the Meta-‐Search companies. Meta-‐Search sites have been found rela7vely less influen7al to bookings but are rated by a number of suppliers and intermediaries. Mobile stands out in the Airline and Car Rental sectors but sits with a marginal propor7on of respondents; 9% and 8% respec7vely. Organic search lis7ngs which is the most influen7al overall, is par7cularly useful for Meta-‐Search companies in which 60% rate this as the most influen7al channel to their bookings. The other sectors reveal similar propor7ons for this, except the slightly slower offline intermediaries. PPC has been par7cularly influen7al for Car Rental, OTA and Meta-‐Search companies. Social media appears to be working best for DMCs/tourism boards, Cruise and offline intermediaries. The Hotel sector and Other Accommoda7on as well as Airline companies emphasise the value of organic search lis7ngs for the last quarter.

Most influen(al marke(ng channel by company sector

19%

5%2%

38%

22%

14%

Email marketingMeta-search sitesMobile devicesOrganic search engine listingsPaid search (PPC)Social media

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


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%

% of respondents

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

Most influen(al channel by markeOng budget

There are some minor trends iden7fied when analysing the results by size of marke7ng budget. Email marke7ng for example is rated as the most influen7al by those with smaller marke7ng budgets, where as PPC is more influen7al for those that can afford it in the higher budget categories. Social media is on the other hand not isolated to the big guys and the smaller budget ranges are evidently seeing good results from these channels in rela7on to bookings; around a quarter of those at the lowest budget range selected social media as the most influen7al marke7ng channel in the last quarter. Mobile is interes7ngly also appearing in the lower budget ranges but there is no major trend here with the limited number of responses for this channel. Meta-‐Search is also a similar pamern to mobile but we can iden7fy a more significant 15% in the top budget range.

Most influen(al channel by region represenOng

In terms of Europe, the UK found email marke7ng, organic search lis7ngs and PPC the most influen7al to their bookings over the last quarter. The ra7os were rela7vely evenly split with slightly more weight on Search. Respondents from Germany rated organic search lis7ngs the most (73%) and an even split for the remainder between email, PPC and social media. France also rate organic search the most (55%) and show a rela7vely higher propor7on towards PPC as well (27%). Italy who represent the highest propor7on ra7ng social media (22%) also rate organic search the most (33%) but we can iden7fy them a source for Meta-‐Search results as well (11%). Spain is split evenly between both organic and paid search (45% for each) and the remaining 9% rate social media over email, mobile and meta-‐search which has not been selected.

The US is similar to the UK except with a higher propor7on ra7ng social media (21%) and less on PPC (15%). Australia are also very similar to the UK. China is in line with the UK but showing some results from meta-‐search. India is comparable to the US, but puts more weight towards social media (19%) and less on organic search lis7ngs. Brazil is rela7vely evenly split across all channels except meta-‐search and mobile are not listed.

Less than $25k

$26k -‐ $50k

$50k -‐ $100k

$201k -‐ $300k

$301k -‐ $400k

$401k -‐ $500k

$501k -‐ $750k

$751k -‐ $1 million






$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%

% of respondents within the budget category

Marketin

g Bu

dget

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

Most influen.al channels by region respondents represent

United Kingdom

Germany

France

Italy

Spain

Global

United States

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%

% of respondents based on the country in which the respondent is specifically located

SecOon 7: Marke.ng Budgets

Marke.ng Budgets Most Recent Quarter

Respondents of the survey are clearly less inclined to the majority of offline marke7ng tac7cs in comparison to online, except perhaps print adver7sing where 30% do did not allocate any budget towards this. 56% of all travel companies in the survey invested more budget towards website design/re-‐design in the last quarter. This is the category showing the largest growth amongst respondents. The second largest growth area is social media marke7ng (not including the adver7sements) with 53% of respondents alloca7ng more budget in the last quarter. Just 19% are not alloca7ng anything towards this. In terms of social media adver7sements 37% increased their budgets for this, 30% allocated the same, 4% reduced the budget and 29% did not allocate any. Email marke7ng is the third largest growth category and one of the most common marke7ng ac7vi7es invested in. 43% allocated more budget in the last quarter, 40% alloca7ng the same and 8% alloca7ng less. Mobile marke7ng is being invested in by half of the respondents to some degree. A quarter of all respondents increased their budget for mobile marke7ng in the last quarter. The biggest reduc7on in budget is towards print adver7sing at 20%, following by direct mail (14%) and display online adver7sing (13%).

In the last 3 months did you allocate more or less budget to the following markeOng acOviOes compared to the previous quarter:

Marke(ng Investment by MarkeOng Budget Size

In the following sec7on we have considered the ac7vi7es amongst different marke7ng budgets and some trends have been revealed. Website design/re-‐design does not indicate any major trends. It is worth poin7ng out that the lower end of the budget ranges less companies have invested anything at all perhaps as the sites are less complex than some of the large companies. However across all budget categories we can see that the majority have allocated more budget in the last quarter towards their websites.

Website design / re-‐design

Paid search engine optimisation (PPC

Strategic links and online sponsorship

Local search listings

Travel meta-‐search

Display online advertising e.g. banners

Email marketing

Social media advertisements

Other social marketing: Facebook, Flickr, Twitter, Youtube, etc

Mobile marketing: via mobile website, SMS or application

TV advertising

Outdoor advertising

Experiential marketing

Consumer events / event sponsorship

Print advertising

Direct mail (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%

30%

13%

16%

21%

14%

13%

9%

25%

53%

37%

43%

27%

19%

20%

33%

39%

56%

% of all travel companies

More The same Less None

Website Design / Re-‐Design

Direct Mail (Postal)

Direct mail which is not a marke7ng ac7vity invested in by the majority of travel companies across all marke7ng budget ranges. We can see that as the marke7ng budget increases, the investment in direct mail does become rela7vely less but a correla7on is not clear cut. In terms of those alloca7ng more budget it is slightly skewed towards the lower end o the budget scale.


$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k


$101million +

0% 25% 50% 75% 100%

7%

8%

2%

3%

0%

0%

3%

0%

10%

11%

4%

3%

13%

22%

4%

0%

5%

6%

14%

5%

13%

0%

5%

6%

4%

5%

10%

5%

30%

33%

40%

24%

24%

41%

31%

39%

30%

28%

32%

29%

33%

21%

59%

58%

52%

68%

62%

54%

53%

61%

55%

56%

60%

63%

43%

52%

% of respondents within marketing budget category

Marketin

g Bu

dget


Less than $25k

$26k -‐ $50k

$50k -‐ $100k

$201k -‐ $300k

$301k -‐ $400k

$401k -‐ $500k

$501k -‐ $750k







$101million +

0% 25% 50% 75% 100%

30%

42%

50%

44%

60%

43%

59%

39%

30%

39%

60%

48%

53%

62%

48%

25%

10%

12%

14%

22%

13%

6%

5%

22%

0%

17%

18%

8%

19%

25%

29%

38%

16%

22%

16%

33%

45%

22%

22%

24%

20%

12%

4%

8%

12%

6%

11%

14%

13%

22%

20%

17%

18%

12%

8%

18%


Marketin

g Bu

dget

Print Adver.sing

Print adver7sing is invested in more by those with higher marke7ng budgets but those that do par7cipate in this ac7vity have revealed similar results for the last quarter. The biggest growth is seen amongst the $3001 -‐ $400k range at 39%.

Consumer Events / Event Sponsorship

The mid range marke7ng budgets have been alloca7ng more towards consumer events or event sponsorship. Increases are reduced at the lower and higher end of the budget scale. The majority of companies are maintaining the budget towards this ac7vity so we are not seeing a huge change amongst most budget ranges.


$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k


$101million +

0% 25% 50% 75% 100%

15%

33%

31%

35%

38%

19%

37%

33%

35%

39%

38%

36%

37%

54%

11%

8%

5%

6%

8%

5%

6%

0%

0%

22%

2%

12%

10%

14%

63%

42%

48%

38%

32%

46%

34%

39%

25%

17%

30%

32%

33%

18%

11%

17%

17%

21%

22%

30%

22%

28%

40%

22%

30%

20%

20%

14%


Marketin

g Bu

dget


$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k


$101million +

0% 25% 50% 75% 100%

11%

17%

21%

21%

19%

22%

31%

33%

30%

17%

42%

25%

30%

52%

30%

25%

29%

21%

22%

30%

25%

17%

10%

28%

4%

27%

25%

10%

37%

33%

36%

41%

43%

22%

31%

28%

40%

17%

44%

31%

38%

26%

22%

25%

14%

18%

16%

27%

12%

22%

20%

39%

10%

17%

7%

13%


Marketin

g Bu

dget


Experien.al Marke.ng

Experien7al marke7ng is invested in by a smaller propor7on of the industry. The biggest budget range par7cipa7ng is the top budget range. Some growth can be seen in all ranges except one but the majority are not changing their budget alloca7on.

Outdoor Adver.sing

Outdoor adver7sing, used mainly by those with larger budgets, has shown some growth amongst those with budgets over $10.1 million. Around a quarter of these respondents have increased their budgets towards this in the last 3 months. 22% of the $101 million and over have also decreased their alloca7on towards this. The only other category that stands out is the $401 -‐ $500 range with a quarter of this group also increasing their outdoor adver7sing budgets.

Less than $25k

$26k -‐ $50k

$50k -‐ $100k

$201k -‐ $300k

$301k -‐ $400k

$401k -‐ $500k

$501k -‐ $750k







$101million +

0% 25% 50% 75% 100%

33%

50%

50%

50%

60%

41%

47%

61%

35%

61%

54%

56%

52%

69%

11%

8%

7%

6%

3%

3%

9%

0%

0%

6%

2%

14%

7%

6%

37%

25%

33%

29%

22%

49%

28%

28%

45%

33%

20%

20%

25%

14%

19%

17%

10%

15%

16%

8%

16%

11%

20%

0%

24%

10%

17%

11%



Less than $25k

$50k -‐ $100k

$301k -‐ $400k

$501k -‐ $750k




0% 25% 50% 75% 100%

19%

17%

36%

50%

51%

51%

66%

61%

35%

61%

68%

68%

68%

67%

22%

17%

14%

12%

14%

11%

3%

6%

10%

17%

2%

10%

7%

7%

33%

42%

26%

26%

19%

27%

22%

28%

30%

17%

18%

8%

20%

17%

26%

25%

24%

12%

16%

11%

9%

6%

25%

6%

12%

14%

5%

9%

% of respondents within market budget category

Marketin

g Bu

dget

TV Adver.sing

TV adver7sing unexpectedly is an ac7vity for those with higher budgets. This trend is clear. For those within the higher budget categories, around 30% have increased budgets for this, similar propor7ons have kept their alloca7ons the same and in the top budget category 15% have allocated less.

Mobile marke.ng: via mobile website, SMS or applica.on

Mobile marke7ng investment has grown more in the higher budget categories. For example of those in the top category, 41% increased their budget alloca7on to mobile marke7ng in the last 3 months. There is a clear correla7on between marke7ng budget and mobile investment at the moment.


$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k


$101million +

0% 25% 50% 75% 100%

22%

25%

38%

47%

78%

46%

75%

72%

60%

83%

82%

76%

78%

82%

15%

17%

5%

6%

5%

14%

3%

11%

5%

6%

2%

10%

8%

6%

33%

33%

26%

29%

8%

35%

19%

17%

20%

6%

12%

8%

10%

9%

30%

25%

31%

18%

8%

5%

3%

0%

15%

6%

4%

5%

3%

3%


Marketin

g Bu

dget



$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k


$101million +

0% 25% 50% 75% 100%

26%

25%

33%

44%

41%

43%

44%

44%

40%

56%

56%

58%

52%

68%

7%

0%

0%

3%

8%

0%

6%

6%

5%

11%

4%

5%

7%

5%

26%

25%

24%

18%

24%

32%

28%

11%

25%

22%

18%

15%

25%

14%

41%

50%

43%

35%

27%

24%

22%

39%

30%

11%

22%

22%

17%

13%

% respondents within marketing budget category

Marketin

g Bu

dget

Other social marke.ng: Facebook, Flickr, Twiper, Youtube, etc

Social media marke7ng displays less prominent pamerns across different budgets ranges. The majority of companies in most ranges have increased their investment in the last 3 months. Investment in this medium is a lot more common than many of the other marke7ng ac7vi7es which is quite a significant shih for the travel industry over the last fee years as companies consider it a more serious marke7ng tac7c.

Social media adver.sements

Investment in social media adver7sements show less growth than other forms of social marke7ng but growth nonetheless. Over half of the top marke7ng budget group have allocated more budget towards this (56%) and 65% amongst the $401-‐$500k range. A correla7on with marke7ng budget can be iden7fied in terms of ay investment with the lower end budgets less par7cipa7ve. But about half of the companies with budgets below $25k have invested in social media adver7sements in the last 3 months.


$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k


$101million +

0% 25% 50% 75% 100%

15%

17%

10%

15%

11%

14%

16%

11%

10%

33%

16%

19%

17%

34%

0%

0%

0%

3%

3%

0%

3%

0%

0%

0%

2%

5%

5%

4%

22%

17%

38%

27%

27%

24%

34%

11%

25%

28%

24%

29%

38%

18%

63%

67%

52%

56%

60%

62%

47%

78%

65%

39%

58%

48%

40%

45%


Marketin

g Bu

dget



$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k



$101million +

0% 25% 50% 75% 100%

15%

25%

10%

12%

22%

19%

25%

28%

15%

33%

28%

41%

35%

48%

0%

0%

2%

6%

3%

3%

6%

6%

0%

11%

2%

5%

5%

4%

30%

33%

48%

41%

38%

46%

34%

28%

20%

33%

26%

31%

30%

14%

56%

42%

41%

41%

38%

32%

34%

39%

65%

22%

44%

24%

30%

34%


Marketin

g Bu

dget

Email Marke.ng

Email marke7ng investments are rela7vely equal across all marke7ng budget categories amongst those that par7cipate. A higher propor7on of those within the lower budget ranges are not inves7ng, for example 23% of the companies with less than $25k marke7ng budgets, but it is generally clear that email remains a significant marke7ng ac7vity for Travel.


Display online adver7sing has shown more growth amongst the larger budgets, it is s7ll an important ac7vity for these companies. The correla7on with any investment and budget is quite clear here. However there has been a quite significant propor7on of companies reducing their budgets towards this in each range, especially the $501-‐$750k range where a third have allocated less budget towards this in the last quarter.


$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k


$101million +

0% 25% 50% 75% 100%

4%

8%

2%

6%

0%

8%

3%

11%

10%

17%

6%

14%

10%

23%

7%

0%

2%

6%

14%

8%

3%

0%

10%

0%

8%

3%

13%

12%

56%

33%

57%

38%

35%

49%

41%

39%

30%

56%

50%

29%

33%

31%

33%

58%

38%

50%

51%

35%

53%

50%

50%

28%

36%

54%

43%

35%


Marketin

g Bu

dget


$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k


$101million +

0% 25% 50% 75% 100%

4%

8%

5%

12%

19%

16%

34%

11%

15%

39%

30%

32%

35%

58%

15%

0%

14%

6%

16%

11%

12%

33%

10%

17%

12%

14%

15%

11%

41%

33%

33%

32%

24%

54%

44%

22%

40%

33%

32%

29%

35%

17%

41%

58%

48%

50%

41%

19%

9%

33%

35%

11%

26%

25%

15%

14%


Marketin

g Bu

dget


Travel Meta-‐Search

Meta-‐search budgets have remained important, again generally the higher the budget the more investment. More companies have invested the same towards this than increased.

Local Search Lis.ngs

Local lis7ngs do not reveal any trends amongst respondents. Investment is rela7vely mixed across all budget ranges.


$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k


$101million +

0% 25% 50% 75% 100%

15%

33%

14%

27%

27%

24%

31%

28%

45%

44%

24%

25%

37%

50%

15%

8%

12%

9%

16%

3%

12%

11%

0%

6%

12%

15%

10%

4%

48%

33%

52%

44%

38%

49%

37%

39%

40%

39%

40%

39%

47%

30%

22%

25%

21%

21%

19%

24%

19%

22%

15%

11%

24%

20%

7%

17%


Marketin

g Bu

dget



$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k


$101million +

0% 25% 50% 75% 100%

15%

25%

17%

21%

27%

16%

34%

11%

20%

22%

34%

15%

25%

44%

11%

17%

10%

15%

14%

11%

6%

6%

0%

11%

10%

8%

18%

4%

63%

42%

57%

35%

43%

43%

47%

39%

60%

50%

38%

47%

43%

36%

11%

17%

17%

29%

16%

30%

12%

44%

20%

17%

18%

29%

13%

17%


Marketin

g Bu

dget

Strategic Links and Online Sponsorship

Again, no key pamerns are iden7fied around the investment in strategic links and online sponsorship. There has been growth across all ranges and for the lower budget range it is not a priority marke7ng area.

Paid Search Optmisa.on (PPC)

PPC has grown more for the bigger players. There has been some significant growth in investment for this ac7vity and it has certainly been an important area in the last quarter. It is unusual for companies with larger budgets not to allocate anything towards this. More companies have increased their budgets towards PPC than have stayed the same. There has been some reduc7on by around 15% of companies in most ranges.


$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k


$101million +

0% 25% 50% 75% 100%

11%

17%

2%

12%

8%

16%

13%

11%

10%

28%

20%

14%

25%

41%

7%

0%

10%

15%

11%

5%

6%

6%

0%

6%

10%

12%

8%

9%

59%

42%

55%

26%

43%

49%

53%

33%

45%

39%

30%

29%

45%

30%

22%

42%

33%

47%

38%

30%

28%

50%

45%

28%

40%

46%

22%

21%


Marketin

g Bu

dget



$50k -‐ $100k$201k -‐ $300k$301k -‐ $400k$401k -‐ $500k$501k -‐ $750k


$101million +

0% 25% 50% 75% 100%

4%

0%

0%

15%

8%

3%

16%

6%

25%

33%

18%

24%

22%

52%

15%

0%

12%

6%

8%

11%

19%

6%

15%

11%

14%

14%

15%

6%

41%

33%

38%

32%

32%

30%

31%

6%

25%

22%

26%

27%

42%

23%

41%

67%

50%

47%

51%

57%

34%

83%

35%

33%

42%

36%

22%

20%


Marketin

g Bu

dget

Marke(ng Investment By Company Sector

Website design / Re-‐Design

Again, there are not signifiant differences between sectors in terms of investment in websites. Most have either increased their investments or remained the same, but more have increased budgets than not. Other Accommoda7on shows the highest increase at 68% of respondents. The biggest reduc7on is for meta-‐search sites.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

8%

8%

0%

5%

7%

9%

14%

15%

3%

19%

9%

8%

5%

20%

5%

12%

9%

0%

0%

6%

0%

6%

29%

34%

20%

30%

25%

23%

43%

38%

47%

13%

32%

54%

54%

60%

60%

56%

59%

43%

46%

44%

68%

54%

% of respondents


Paid Search Op.misa.on (PPC)

The Car Rental sector has increased their budgets towards PPC the most (54%). 46% of Hotel companies have allocated more budget and 42% of Other Accommoda7on. Online intermediaries are also at similar levels. There are no huge differences between sectors in terms of PPC investments for the last 3 months.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

38%

25%

20%

19%

21%

14%

29%

31%

9%

36%

17%

17%

19%

0%

8%

11%

23%

14%

0%

12%

13%

9%

38%

22%

40%

27%

36%

41%

29%

15%

50%

10%

29%

8%

35%

40%

46%

32%

23%

29%

54%

29%

42%

46%

% of respondents


Strategic Links and Online Sponsorship

Meta-‐search companies are placing their amen7on towards this ac7vity the most. 80% of respondents from this sector allocated more budget towards strategic links and online sponsorship over the last quarter. It is also revealed that all companies in the sector allocated some budget towards this.

Cruise did not invest in this marke7ng ac7vity so heavily. 43% did not allocate any budget at all in the last quarter. 14% reduced their budget.

Airline and Car Rental have not shihed their investments for this during the last quarter with the majority alloca7ng the same. Around 30% of each sector have increased budget though.

Hotel companies are more ac7ve than Other Accommoda7on in general and have shown more growth. The OTAs indicate a similar pamern to Hotel.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

29%

26%

0%

15%

21%

27%

43%

8%

6%

39%

15%

13%

5%

0%

9%

16%

9%

14%

8%

9%

10%

6%

46%

31%

20%

44%

29%

32%

29%

54%

56%

39%

41%

13%

38%

80%

32%

33%

32%

14%

31%

29%

13%

38%

% of respondents


Local Search Lis.ngs

Local search lis7ngs have been less important for much of the industry. Meta-‐search quite understandably have not been geong involved and the 20% that were alloca7ng budget have stopped in the last 3 months. More Hotels companies have allocated more budget to this (32%) and while this ac7vity remains important for most sectors there is quite a large propor7on across all sectors that do not invest in this. Surprisingly 36% of Other Accommoda7on are not inves7ng at all.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

25%

40%

80%

33%

32%

32%

43%

23%

15%

36%

13%

13%

11%

20%

12%

13%

9%

14%

8%

12%

3%

7%

58%

29%

0%

47%

35%

41%

29%

54%

59%

48%

48%

4%

20%

0%

8%

20%

18%

14%

15%

15%

13%

32%

% of respondents


Travel Meta-‐Search

Travel meta-‐search investments were increased most by the Hotel and DMC/tourism board sectors. However the majority of sectors have kept their budgets the same. Cruise and tour operators have reduced their investments the most, by 14% of `Cruise and 16% of tour operators. While 18% of Airline companies have increased their budgets on meta-‐search in the last quarter, 59% have allocated the same.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

33%

43%

80%

40%

33%

32%

71%

38%

12%

42%

22%

8%

6%

0%

12%

16%

0%

14%

8%

12%

7%

8%

46%

32%

0%

32%

40%

36%

14%

46%

59%

36%

46%

13%

18%

20%

17%

11%

32%

0%

8%

18%

16%

25%

% of respondents


Display Online Adver.sing e.g. Banners

The suppliers have increased their display online adver7sing budgets the most. Car rental show a par7cularly high propor7on at 54%. Airlines follow at 41%. The biggest reduc7on is in the DMC/tourism board sector and the intermediaries are par7cipa7ng he least. Other Accommoda7on companies are also not huge investors in this ac7vity.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

42%

49%

40%

33%

32%

32%

14%

15%

9%

42%

19%

12%

9%

0%

12%

16%

23%

0%

0%

18%

13%

14%

29%

23%

40%

33%

32%

23%

43%

31%

32%

19%

35%

17%

19%

20%

22%

20%

23%

43%

54%

41%

26%

32%

% of respondents


Email Marke.ng

Cruise companies have registered the biggest increase in budget for email marke7ng for the last quarter (71%). Pamerns are quite similar across al other sectors, except meta-‐search companies in which 40% have allocated less budget over the last 3 months.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC/ tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

0%

20%

20%

8%

4%

14%

14%

15%

12%

19%

8%

8%

6%

40%

10%

9%

5%

0%

0%

3%

10%

7%

42%

26%

20%

40%

36%

46%

14%

54%

47%

29%

46%

50%

48%

20%

42%

51%

36%

71%

31%

38%

42%

39%

% of respondents


Social Media Adver.sements

Results across sectors for the investment in social media adver7sements is similar. The majority of those who invest at al have increased their budgets towards this. OTAs represent a slightly smaller propor7on that have increased budgets (28%) but overall par7cipa7on is the same as other sectors.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

42%

32%

20%

28%

27%

45%

29%

31%

18%

39%

27%

4%

0%

0%

4%

11%

0%

14%

0%

3%

3%

3%

29%

25%

40%

40%

27%

18%

14%

31%

38%

23%

33%

25%

43%

40%

28%

36%

36%

43%

38%

41%

36%

38%

% of respondents


Other social marke.ng: Facebook, Flickr, Twiper, Youtube, etc

In terms of ‘other social marke7ng’, Airline companies and other intermediaries indicate the highest propor7on with budget increases. The non par7cipa7on rates is rela7vely similar across all sectors but the Hotel and Airline sectors more ac7ve than Other Accommoda7on, Car Rental and Cruise for example. DMCs/tourism boards are more ac7ve in this category than some of the other marke7ng ac7vi7es and 55% have increased their investment in the last quarter. There has been limle reduc7on in budgets for this across all sectors.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

38%

15%

20%

21%

20%

18%

29%

23%

12%

29%

15%

0%

3%

0%

3%

7%

0%

0%

0%

3%

0%

2%

42%

15%

40%

36%

27%

27%

14%

31%

24%

32%

25%

21%

66%

40%

41%

47%

55%

57%

46%

62%

39%

58%

% of respondents


Mobile marke.ng: via mobile website, SMS or applica.on

Mobile marke7ng displays more varia7on between sectors. The biggest propor7ons increasing their budgets are in the Meta-‐Search (40%), Car Rental (38%) and Airline sectors (38%). Other Accommoda7on companies are not inves7ng in mobile very much with 71% inves7ng nothing. Airline and Car Rental companies are the most ac7ve at the moment.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

63%

51%

60%

53%

55%

55%

43%

38%

29%

71%

45%

0%

2%

0%

3%

9%

14%

0%

0%

3%

6%

5%

33%

19%

0%

24%

19%

9%

29%

23%

29%

16%

20%

4%

29%

40%

20%

17%

23%

29%

38%

38%

6%

30%

% of respondents


TV Adver.sing

TV adver7sing is not common in marke7ng budgets for travel companies. This plays a far larger part in the Airline budgets than any other sector. There has not been much change for the sector in the last quarter with 50% alloca7ng the same budget and just 12% increasing it.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

83%

86%

100%

76%

67%

59%

57%

77%

26%

77%

62%

0%

1%

0%

3%

9%

5%

0%

0%

12%

6%

13%

8%

6%

0%

12%

12%

27%

29%

23%

50%

10%

17%

8%

6%

0%

10%

12%

9%

14%

0%

12%

6%

9%

% of respondents


Outdoor Adver.sing

Outdoor adver7sing again is not for all travel companies. Intermediaries are inves7ng in this the least. The major growth is revealed in the Airline sector, 24% have increased their budget alloca7on towards this in the last quarter. For Hotel companies around the same number have reduced budget and they have increased and almost half did not allocate any budget to this at all.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

75%

85%

100%

67%

60%

46%

57%

69%

15%

74%

43%

4%

3%

0%

10%

7%

0%

0%

8%

12%

3%

16%

13%

8%

0%

13%

20%

41%

43%

23%

50%

16%

24%

8%

5%

0%

10%

13%

14%

0%

0%

24%

7%

17%

% of respondents


Experien.al Marke.ng

Experien7al marke7ng varies across sectors in terms of par7cipa7on. DMCs/tourism boards are placing the most emphasis on this ac7vity, 27% have increased the budgets in the last quarter. There is some ac7vity across all sectors and of those that par7cipate, pamerns are similar. It does not currently appear to be a common marke7ng ac7vity in the industry though.

Tour operator


Other accommodation


Meta-‐search

Hotel

DMC/ tourism board

Cruise

Car Rental

Airline


0% 25% 50% 75% 100%

71%

32%

62%

57%

41%

48%

100%

60%

68%

72%

44%

8%

6%

0%

0%

5%

6%

0%

8%

3%

5%

9%

17%

44%

31%

29%

27%

30%

0%

23%

19%

12%

31%

4%

18%

8%

14%

27%

16%

0%

9%

10%

11%

16%

% of respondents


Consumer Events and Sponsorship

Consumer events and event sponsorship is also less common amongst intermediaries. Meta-‐search did not par7cipate at all. Again DMCs/tourism boards appear to be using this marke7ng ac7vity the most. A quarter of Hotel companies also increased their budgets for this and around 15%-‐20% for other sectors. The largest reduc7on was in the Tour Operator, Car Rental and Airlines sectors.

Tour operator


Other accommodation


Meta-‐search

Hotel

DMC / tourism board

Cruise

Car Rental

Airline


0% 25% 50% 75% 100%

42%

15%

38%

57%

18%

26%

100%

53%

45%

65%

29%

8%

15%

15%

0%

0%

9%

0%

5%

10%

5%

15%

42%

47%

31%

29%

41%

39%

0%

27%

26%

15%

36%

8%

24%

15%

14%

41%

25%

0%

15%

19%

15%

20%

% of respondents


Print Adver.sing

There are varying results for print adver7sing. Meta-‐Search, OTAs and Car Rental invest the least. The largest reduc7ons are within the Hotel, Airline, DMC/tourism board sectors but each sector has registered a reduc7on in budget towards this to some degree. The largest increase in print adver7sing was from the offline intermediary (retail) sector (25%) and OTAs (21%) and Airline companies (21%) have also raised their budgets for this. It is clear that more companies reduced budgets rather than increased but it is definitely not dying out completely as a form of marke7ng.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

29%

55%

100%

50%

21%

23%

29%

69%

12%

29%

17%

8%

14%

0%

9%

20%

27%

14%

8%

24%

19%

30%

38%

17%

0%

21%

41%

36%

43%

23%

44%

42%

38%

25%

14%

0%

21%

17%

14%

14%

0%

21%

10%

16%

% of respondents


Direct Mail (Postal)

Direct mail is also an ac7vity in fewer companies’ marke7ng budgets. Again, online intermediaries and Car Rental had smaller propor7ons inves7ng in this. DMCs/tourism boards and offline intermediaries indicated a larger propor7on increasing their budgets for direct mail but not significantly higher. Cruise are large investors in this and 57% have not changed their alloca7on of budget for direct mail, but the 14% increase is offset by the 14% of those that have reduced theirs.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

42%

74%

100%

72%

40%

50%

14%

77%

38%

58%

39%

8%

9%

0%

3%

13%

9%

14%

0%

15%

10%

25%

21%

9%

0%

15%

28%

18%

57%

15%

32%

19%

25%

29%

8%

0%

10%

19%

23%

14%

8%

15%

13%

11%

% of respondents


Marke.ng Budgets Next Quarter

Marke(ng Investments For Next Quarter By Company Sector

Looking forward to the next quarter, we expect to see changes and improvements to many travel websites. Al Meta-‐Search respondents are planning on increasing their budgets for their websites in comparison to the previous quarter. Around 60% of Hotel and Other Accommoda7on companies plan an increase, 41% of Airline and 46% of Car Rental. The majority of other respondents are keeping the same amounts.

Meta-‐Search and Hotel companies may be seen more in the paid search lis7ngs in the next quarter. 60% of Meta-‐Search and 53% of Hotels plan an increase in budget towards this. Only a small propor7on of travel suppliers, except perhaps Cruise, will not be alloca7ng any budget to PPC.

Website Design / Re-‐design

Paid Search Engine Lis.ngs

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

0%

3%

0%

6%

0%

5%

0%

8%

0%

6%

1%

8%

2%

0%

3%

3%

0%

0%

0%

3%

0%

0%

4%

3%

0%

1%

7%

5%

0%

0%

3%

10%

2%

42%

32%

0%

31%

32%

50%

71%

46%

53%

23%

39%

46%

60%

100%

59%

59%

41%

29%

46%

41%

61%

59%

% of respondents

Increasing Staying the same Reducing There will be no budget for this Don't know

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

8%

2%

0%

5%

3%

14%

0%

0%

3%

6%

4%

8%

19%

0%

13%

12%

5%

14%

8%

6%

6%

5%

21%

9%

0%

3%

7%

18%

0%

8%

9%

13%

4%

50%

37%

40%

31%

39%

32%

57%

38%

50%

39%

33%

13%

34%

60%

49%

40%

32%

29%

46%

32%

35%

53%

% of respondents

Online Display Adver.sing

Both suppliers and online intermediaries are planning increases in display adver7sing budgets. 26% of Other Accommoda7on however are not looking at this ac7vity. Across all sectors a rela7vely similar propor7on of those increasing budgets will be keeping them the same but nonetheless inves7ng. The biggest reduc7on is expected from DMCs/tourism boards (23%).

Email Marke.ng

Email marke7ng is expected to remain important for the travel industry over the next quarter. Meta-‐Search companies are intending to be less ac7ve than other sectors with 60% inves7ng to some extent. Tour Operators, OTAs and the ‘other online intermediary’ category show the majority of companies are expec7ng to invest in email marke7ng with very few not alloca7ng budget. Car Rental are expec7ng to con7nue investment but remain at consistent levels for the next quarter (62%) and a lower 15% increasing budget towards this. Hotel companies are puong more weight towards this marke7ng ac7vity as are Cruise.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

4%

3%

20%

10%

7%

14%

0%

8%

6%

6%

5%

17%

23%

20%

12%

19%

14%

14%

8%

6%

26%

7%

21%

11%

0%

8%

8%

23%

0%

0%

9%

10%

7%

38%

37%

20%

31%

47%

36%

43%

38%

38%

35%

41%

21%

26%

40%

40%

20%

14%

43%

46%

41%

23%

39%

% of respondents


Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

4%

3%

20%

4%

1%

9%

0%

15%

9%

6%

3%

0%

6%

20%

1%

3%

5%

14%

8%

6%

13%

2%

8%

3%

0%

4%

3%

5%

0%

0%

6%

3%

6%

46%

41%

40%

50%

39%

50%

29%

62%

44%

45%

47%

42%

46%

20%

41%

55%

32%

57%

15%

35%

32%

41%

% of respondents

Social Media

The majority of companies across all sectors are planning to increase their investment in social media over the coming quarter. Car rental is a slight excep7on with a lower propor7on planning to increase but rather keep the budget alloca7on the same as the previous. Hotel and Airline companies are looking to push their ac7vity up a notch with 65% of the sectors increasing their budgets within the social media space. Cruise results suggest that perhaps social media isn’t necessarily working so well because 29% intend to reduce budgets towards this in the next quarter. Other suppliers (except a few of the Other Accommoda7on sector) clearly rate social media as a valuable marke7ng ac7vity.

Mobile

Mobile varies more across sectors again. Meta-‐Search are taking mobile very seriously and 80% plan an increase in budget. Both suppliers and intermediaries are also evidently looking towards this channel though. 48% of Hotel companies will increase their budget for mobile and a large 62% of Airline companies too. For Car Rental which we have established are already the most ac7ve in mobile, 46% plan a further increase with just 15% alloca7ng no budget at all. Other Accommoda7on expect to be less ac7ve, 45% plan to invest to some degree though.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

4%

2%

0%

6%

5%

9%

0%

8%

9%

10%

3%

4%

2%

0%

3%

7%

0%

0%

8%

0%

16%

3%

0%

0%

0%

4%

3%

0%

29%

0%

0%

3%

1%

29%

34%

60%

32%

20%

32%

14%

54%

27%

23%

28%

62%

63%

40%

55%

65%

59%

57%

31%

65%

48%

65%

% of respondents


Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

17%

5%

0%

13%

4%

9%

14%

0%

6%

16%

12%

29%

15%

0%

12%

25%

14%

14%

15%

12%

39%

13%

0%

2%

0%

4%

7%

9%

14%

0%

0%

0%

3%

17%

23%

20%

19%

24%

36%

0%

38%

21%

29%

24%

37%

55%

80%

53%

40%

32%

57%

46%

62%

16%

48%

% of respondents

Offline Marke.ng

Offline marke7ng is not on the cards for most Meta-‐Search companies and 60% plan to market wholly online. On the other end of the scale, the highest propor7on from all sectors planning an increase in budgets in offline marke7ng is Other Accommoda7on (36%). The largest reduc7on is expected from the Car Rental sector (31%) and Hotel (24%). While we iden7fy some fairly significant increases, such as Tour Operator, DMC/tourism board as well, and decreases as men7oned above, the majority are keeping their offline marke7ng budgets the same.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

0%

8%

0%

9%

5%

14%

0%

8%

12%

10%

6%

8%

26%

60%

19%

7%

0%

14%

23%

12%

16%

9%

8%

18%

0%

14%

16%

18%

14%

31%

12%

13%

24%

54%

35%

40%

35%

41%

46%

57%

23%

56%

26%

42%

29%

12%

0%

23%

31%

23%

14%

15%

9%

36%

19%

% of respondents


SecOon 8: Online Marke.ng Ac.vi.es -‐ What’s Working

Online Marke.ng Ac.vi.es -‐ What’s Working

Search engine marke7ng (29% of respondents) and email marke7ng (298% of respondents) have proved the most successful in terms of campaign for the last quarter. Mobile marke7ng has only proved compara7vely successful for 3% of companies. Social marke7ng is up there (20%) and clearly compe7ng well with more tradi7onal online marke7ng.

In the last 3 months which out of the following online markeOng formats would you highlight as the biggest success story in your opinion amongst the campaigns you did? Note: please choose one only

Comparing results by country (of the respondent) we can certainly iden7fy some differences. In Europe the UK predominantly succeeded the most with search engine and email marke7ng. A small propor7on (3%) considered mobile their biggest success story and 12% for social media. Germany largely favoured their search engine marke7ng campaigns and placed no emphasis on mobile. France on the other hand indicate a significant 18% of respondents that considered mobile their success story. On the whole affiliate marke7ng, email marke7ng and mobile were favoured over social and search engine campaigns. Italy were very happy with their social media campaigns and did not feature search engine marke7ng at all. Spain also favoured their SEM campaigns as well as affiliate marke7ng. Comparing other parts of the world, the US showed a very similar picture to the UK respondents, but with slightly more emphasis on social media. Australia also rated their results in similar propor7ons. China is split quite evenly between affiliate, email, search and social media marke7ng. India experienced more success with email campaigns but SEM and social media have also proved successful in the last quarter.

7%

28%

3%8%

29%

20%

6%

Affiliate marketingEmail marketingMobile marketingOnline advertisingSearch engine marketingSocial marketing- we did none of the above -

United Kingdom

Germany

France

Italy

Spain

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

0%

2%

4%

0%

7%

14%

22%

0%

0%

2%

29%

19%

22%

15%

22%

14%

44%

9%

18%

12%

29%

31%

26%

42%

25%

36%

0%

9%

55%

42%

0%

7%

0%

6%

7%

5%

11%

0%

9%

10%

0%

2%

0%

0%

4%

0%

0%

18%

0%

3%

43%

36%

30%

30%

30%

14%

22%

36%

9%

27%

0%

5%

17%

6%

5%

18%

0%

27%

9%

5%

% of respondents

Coun

try of re

spon

dent

Affiliate marketingEmail marketingMobile marketingOnline advertisingSearch engine marketingSocial marketing- we did none of the above -

When analysing the results between different marke7ng budget ranges we have not iden7fied any clear trends at all.

SecOon 9: Social Media Par.cipa.on

Travel companies are more ac7ve in Facebook in comparison to the other social media sites listed. 82% of respondents have profiles as a company, not personally. This is very significant but the level of ac7vity within that profile does obviously vary amongst companies. Twimer has also amracted 64% of travel companies to par7cipate. Less are ac7ve in YouTube and Flickr. LinkedIn has also proved a useful tool for travel companies.

Do you as a company (NOT personally) have profiles created in the following social media sites?

Less than $25k

$26k -‐ $50k

$50k -‐ $100k

$201k -‐ $300k

$301k -‐ $400k

$401k -‐ $500k

$501k -‐ $750k







$101million +

0% 25% 50% 75% 100%

4%

0%

0%

3%

0%

5%

6%

0%

15%

11%

4%

5%

5%

13%

15%

17%

12%

15%

16%

11%

22%

28%

15%

22%

32%

15%

28%

21%

26%

67%

52%

41%

27%

22%

28%

33%

25%

22%

20%

29%

30%

20%

11%

8%

0%

9%

8%

14%

9%

17%

10%

11%

8%

8%

7%

8%

11%

0%

2%

0%

8%

3%

6%

0%

0%

0%

2%

2%

0%

3%

22%

8%

29%

27%

35%

32%

22%

22%

30%

33%

24%

36%

20%

32%

11%

0%

5%

6%

5%

14%

6%

0%

5%

0%

10%

5%

10%

4%


Marketin

g Bu

dget

Affiliate marketing Email marketing Mobile marketing Online advertisingSearch engine marketing Social marketing - we did none of the above -

0%

23%

45%

68%

90%

Facebook

Twitter

Youtube

Flickr

Linkedin

40%

20%

38%

64%

82%

% of respo

nden

ts who

have a profile with

in th

is social m

edia chann

el

There is not a huge varia7on between company sectors in terms of Facebook profiles. Car Rental, Other Accommoda7on and offline intermediaries are the least represented. Twimer profiles are more common amongst Airline, Cruise and Meta-‐Search and the least represented are DMCs/tourism boards, Other Accommoda7on and Tour Operators. YouTube is more common for the suppliers which makes sense based on the nature of their products. Cruise and Car Rental are the leaders. Linkedin is rela7vely varied with Meta-‐Search leading the way in terms of presence and Cruise not par7cipa7ng very much. Flickr is again dominated by travel suppliers but OTAs are playing a part. Other Accommoda7on and Car Rental are the most dominant sectors, closely followed by Hotel and Airline sectors.

Propor.on with a Facebook Profile

Propor.on with a Twiper Profile

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 23% 45% 68% 90%

58%

88%

80%

81%

84%

82%

86%

69%

85%

68%

87%

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 20% 40% 60% 80%

38%

77%

80%

67%

56%

59%

71%

62%

79%

55%

63%

Propor.on with a YouTube Profile

Propor.on with a LinkedIn Profile

Propor.on with a Flickr Profile

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 15% 30% 45% 60%

8%

32%

20%

31%

32%

36%

57%

54%

44%

45%

44%

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 15% 30% 45% 60%

38%

43%

60%

50%

35%

41%

14%

39%

35%

29%

41%

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search


0% 10% 20% 30% 40%

14%

13%24%

27%

31%21%

29%25%

Social Media Investment in the Last Quarter

“In order of importance, please list five social media sites you have invested in (.me or money), in the last 3 months.”

Rank 1: Top most influen.al social media traffic source

Rank 2: 2nd most influen(al social media traffic source

Rank 3 Rank 4

Facebook is by far the homest social site of the moment. It is the site has has received the most investment over the last quarter. Twimer is also the most invested social site for a good propor7on. Looking at the analysis of the secondary listed sites it is revealed that Twimer is the dominant sited listed. In the 3rd and 4th rankings we start to see YouTube, LinkedIn, Flickr and some of the other sites emerge. It will be very interes7ng to follow the trends of this.

Preferred Marke.ng ROI

If you could choose ONE of the following results from a campaign what would you choose.

A 5% increase in traffic to a website is certainly the winner in this ques7on overall. 53% chose this as their favoured campaign result. The second favourite was 500 Facebook likes (17%) and closely followed by 50 inbound enquiries to a call centre (16%).

Comparing preferences between different sectors indicates some differences. Airlines and Meta-‐Search are predominantly choosing a 5% increase to their website which makes sense due to the volume of traffic they are likely to receive in general. Cruise, DMC/tourism board and offline intermediaries favour the inbound enquiries to call centres. Facebook likes are preferred mainly by Car Rental, Other Accommoda7on, and Tour Operators.

3%

16%

17%

6%4%

53%

200 SMS responses50 inbound enquiries to your call-centre500 Facebook Likes500 re-tweetsA 10% increase in brochure requestsA 5% increase in traffic to your website homepage

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

29%

49%

80%

55%

37%

36%

43%

62%

82%

32%

64%

13%

3%

0%

1%

11%

5%

0%

0%

3%

13%

2%

0%

12%

0%

9%

4%

9%

0%

0%

3%

3%

5%

13%

23%

20%

13%

25%

5%

14%

31%

9%

26%

15%

33%

9%

0%

19%

19%

36%

43%

8%

3%

19%

13%

13%

3%

0%

3%

4%

9%

0%

0%

0%

6%

2%

% of respondents

200 SMS responses 50 inbound enquiries to your call-centre 500 Facebook Likes500 re-tweets A 10% increase in brochure requests A 5% increase in traffic to your websites? homepage

When analysing the results based on marke7ng budget we can iden7fy quite clear pamern in the choice of answer. The higher the budget the more the web traffic is preferred, probably correla7ng to the volume of traffic in rela7on to the size of the company. The inbound enquiries are preferred as we look towards the lower end of the budget ranges. Facebook likes are spread more evenly across budgets.

Social Media Aetudes

Social media is evidently having posi7ve impacts for the majority of travel companies. 47% of respondents believe that social media has generated ROI to some extent. Quite a large propor7on (32%) do however neither agree nor disagree so there is s7ll uncertainty around this. Social media is genera7ng direct bookings for 51% of respondents. 18% definitely do not believe that social media has generated direct bookings. It is felt that social media has improved engagement with customers by the majority of respondents (59%). Only 7% disagree. We can iden7fy the growth in social media investment from the last two ques7ons. 59% increased investment in the last 3 months to some degree and 68% intend to increase their investment over the next 3 months.

Below are a number of statements regarding antudes towards social media, please read each one and indicate to what extent you agree or disagree: Please note: if you are not acOvely invesOng in social media markeOng you can sOll consider travel review sites and social networks that exist independently of company acOvity

Less than $25k

$26k -‐ $50k

$50k -‐ $100k

$201k -‐ $300k

$301k -‐ $400k

$401k -‐ $500k

$501k -‐ $750k







$101million +

0% 25% 50% 75% 100%

70%

83%

74%

74%

51%

65%

69%

67%

50%

56%

46%

42%

40%

39%

0%

0%

5%

3%

5%

0%

0%

0%

0%

11%

8%

7%

2%

8%

0%

0%

5%

3%

5%

3%

3%

11%

5%

6%

6%

9%

8%

9%

11%

17%

14%

9%

22%

11%

9%

11%

30%

17%

16%

19%

28%

19%

11%

0%

2%

12%

16%

19%

16%

11%

15%

11%

24%

19%

20%

17%

7%

0%

0%

0%

0%

3%

3%

0%

0%

0%

0%

5%

2%

9%


Marketin

g Bu

dget

200 SMS responses 50 inbound enquiries to your call-centre 500 Facebook Likes500 re-tweets A 10% increase in brochure requests A 5% increase in traffic to your website homepage

Social media has generated us very little or zero return on investment (ROI)

Social media has generated us direct bookings

Social media has improved our engagement with consumers

We have increased our investment in social media in the last 3 months

We will be increasing our investment in social media over the next 3 months

0% 25% 50% 75% 100%

2%

3%

2%

4%

15%

8%

11%

5%

14%

32%

22%

26%

21%

32%

32%

51%

47%

51%

44%

17%

17%

12%

21%

7%

4%


Social Media AUtudes By Company Sector

The results suggest that the sectors experiencing the best returns from social media are Airline and DMC/tourism board sectors because 56% of airlines and 59% of DMs and tourism boards do not agree with the statement. Other sectors do closely follow. In terms of a lack of ROI the Cruise sector stands out the most with 43% agreeing with the statement. OTAs are also not convinced about their returns to date. Meta-‐Search are not en7rely sure about the results.

Social media has generated us very liple or zero return on investment (ROI)

DMCs and tourism boards reveal the most success in terms of direct bookings from social media with 78% agreeing with the statement. Airlines are also par7cularly posi7ve about this (62% of respondents agree to some degree). The sector where social has been least impacxul to direct bookings is the offline intermediary sector, OTAs and Other Accommoda7on. DMCs and tourism boards are again proving to be finding the best results with consumer engagement (82% agree to some degree). Meta-‐Search are not finding it is working as well for all of them (20% disagree) and OTAs 13% disagree. Hotel, Airline and Car Rental are repor7ng similar levels in aotudes towards social media and consumer engagement, predominantly posi7ve.

Social media has generated us direct bookings

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

8%

23%

0%

8%

19%

18%

0%

8%

21%

10%

15%

29%

31%

0%

32%

28%

41%

14%

23%

35%

36%

35%

33%

28%

80%

29%

35%

23%

43%

38%

29%

29%

33%

25%

18%

20%

24%

15%

14%

43%

31%

15%

13%

13%

4%

0%

0%

6%

4%

5%

0%

0%

0%

13%

4%

% of respondents


Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

0%

2%

20%

4%

5%

0%

0%

0%

3%

13%

2%

29%

9%

20%

19%

12%

9%

14%

8%

12%

13%

13%

33%

42%

40%

26%

33%

14%

43%

54%

24%

29%

33%

33%

39%

20%

41%

41%

64%

43%

39%

56%

45%

46%

4%

9%

0%

10%

8%

14%

0%

0%

6%

0%

7%

% of respondents

Social media has improved our engagement with consumers

We have increased our investment in social media in the last 3 months

The most investment from social media has come from the Airline and Cruise sectors in the last quarter. The biggest non-‐investments sectors have been in the Car Rental, DMC/tourism board, Tour Operator, OTA and offline intermediary sectors.

In the upcoming quarter, we expect further investment in social media by airlines and almost a quarter of respondents are strongly agreeing that they are planning an increase with an addi7onal 44% agreeing. The biggest propor7ons that agree to some extent are the Hotel, Cruise, DMC/tourism board and offline intermediary sectors. It seem more offline intermediaries are moving into this space over the next quarter in comparison to last, this can also be seen in the Tour Operator and Hotel sectors. Meta-‐Search are not expec7ng too much change except there is clearly some delibera7on as to the value as 40% have moved into the neutral ra7ng from posi7ve.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

0%

0%

0%

1%

4%

0%

0%

0%

3%

7%

2%

13%

3%

20%

12%

7%

5%

0%

0%

6%

3%

2%

21%

15%

40%

24%

27%

14%

43%

23%

15%

26%

19%

46%

54%

40%

49%

43%

46%

57%

69%

44%

48%

56%

21%

28%

0%

14%

20%

36%

0%

8%

32%

16%

21%

% of respondents

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

0%

0%

0%

4%

7%

0%

0%

0%

3%

7%

3%

13%

3%

20%

17%

20%

14%

0%

15%

3%

3%

12%

38%

20%

20%

23%

25%

32%

29%

38%

24%

29%

27%

50%

60%

60%

44%

37%

46%

57%

31%

50%

55%

48%

0%

17%

0%

13%

11%

9%

14%

15%

21%

7%

10%

% of respondents


We will be increasing our investment in social media over the next 3 months

Loca.on Based Marke.ng

More travel companies included loca7ons based marke7ng in their ac7vi7es in the last 3 months than not. 46% included some kind of LBM ac7vity.

Did any of your markeOng acOviOes in the last 3 months include locaOon-‐based markeOng?

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

0%

0%

0%

1%

4%

0%

0%

0%

3%

6%

2%

4%

3%

20%

13%

12%

14%

29%

0%

3%

6%

7%

21%

26%

40%

23%

23%

14%

0%

46%

27%

23%

19%

63%

49%

40%

46%

51%

59%

71%

38%

44%

55%

54%

13%

22%

0%

17%

11%

14%

0%

15%

24%

10%

18%

% of respondents

0%

13%

25%

38%

50%

All travel companies

14%

40%

46%

Yes No Don't know

Loca(on Based Marke(ng By Company Sector

Hotel companies are evidently the most ac7ve in loca7on based marke7ng (60%) followed by DMCs/tourism boards (55%). There is not much difference between the ac7vity across other sectors.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

21%

11%

0%

14%

15%

18%

0%

23%

15%

19%

14%

42%

55%

60%

54%

43%

27%

57%

31%

41%

42%

26%

38%

34%

40%

32%

43%

55%

43%

46%

44%

39%

60%

% of respondents

Yes No Don't know

SecOon 10: Mobile

Mobile

Mobile websites are slightly more developed in comparison to apps to date. 35% of all respondents currently have a mobile version of their website available, 61% do not. 24% have already developed a mobile applica7on for their brand, 71% have not.

Is there a mobile version of your website available? A downloadable mobile app available for your brand?

Considering the results between different marke7ng budget ranges we can iden7fy a fairly clear clear trend showing a correla7on between size of marke7ng budget and investment in mobile websites. For example in the top marke7ng budget category 78% have a mobile version of their website available and 22% do not, against 15% of the companies with budget less than $25k who have a mobile website and 75% that do not.

Mobile Websites

0%

18%

35%

53%

70%

All travel companies4%

61%

35%

Yes No Don't know

0%

20%

40%

60%

80%

All travel companies5%

71%

24%

Less than $25k

$26k -‐ $50k

$50k -‐ $100k

$201k -‐ $300k

$301k -‐ $400k

$401k -‐ $500k

$501k -‐ $750k







$101million +

0% 25% 50% 75% 100%

0%

8%

0%

3%

0%

0%

3%

0%

10%

0%

4%

5%

5%

10%

22%

17%

41%

56%

68%

65%

63%

50%

60%

72%

58%

68%

63%

75%

78%

75%

60%

41%

32%

35%

34%

50%

30%

28%

38%

27%

32%

15%

% of respondents

Marketin

g Bu

dget

Mobile Applica.ons

In terms of mobile applica7ons where investment is lower overall, we can also iden7fy a similar trends with a correla7on to marke7ng budget. 67% of the top budget range have invested in an app again 8% of the lowest budget. This is unsurprising but a confirma7on nonetheless about the priority of travel companies in the current environment.

Mobile Investment By Country

Investment in mobile does vary my market. France have proved to be the biggest investors in both mobile websites and applica7ons at the moment. 64% of respondents from France have reported to have a mobile website and 64% have an applica7on. Germany follows with 55% with a mobile website and 55% with an app. Whilst Brazil report to be in the high end of the scale for mobile app investment (57%) there are less companies repor7ng to have developed a mobile version of their website in comparison to most markets (29%) so they reverse the trend. More US companies have invested in mobile websites in comparison to UK companies, 44% and 31% respec7vely. In terms of mobile apps the US and UK are at similar levels with 27% of US companies repor7ng a mobile app and 24% of UK companies. The lowest investors in mobile websites are currently India, Brazil and Australia (27%, 29% and 30%). In the context of mobile apps the lowest investors are currently India (19%), Spain (18%), Australia (21%) and Italy (22%).

Mobile Website

Less than $25k

$26k -‐ $50k

$50k -‐ $100k

$201k -‐ $300k

$301k -‐ $400k

$401k -‐ $500k

$501k -‐ $750k







$101million +

0% 25% 50% 75% 100%

4%

17%

0%

3%

0%

3%

0%

6%

5%

6%

4%

3%

3%

11%

30%

25%

52%

59%

76%

73%

78%

67%

70%

83%

76%

73%

87%

81%

67%

58%

48%

38%

24%

24%

22%

28%

25%

11%

20%

24%

10%

8%

% of respondents

Makretin

g Bu

dget

Yes No Don't know

United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

0%

9%

9%

6%

3%

4%

0%

0%

0%

0%

6%

71%

64%

48%

64%

52%

61%

50%

56%

36%

46%

63%

29%

27%

44%

30%

44%

35%

50%

44%

64%

55%

31%

Mobile Applica.on

Mobile Investment By Company Sector

Performing an analysis by sector reveals that Car Rental are the biggest investors in mobile websites at the moment. 62% have a mobile website but Airline companies are reported to be higher investors in apps; 47% of the Airline sector have an app in comparison to 39% of Car Rental companies. Hotel companies are also rela7vely more ac7ve in the mobile space. 45% of Hotel companies report to have a mobile website available but they have put less amen7on towards mobile apps (26%). Online intermediaries have invested more in mobile apps against Hotel companies; Meta-‐Search report 40% of companies with apps and OTAs 28%. Tour Operators are the least ac7ve in the mobile space; 12% have a mobile website and 12% have an app. The Other Accommoda7on sector are also less developed in this area and report 23% with a mobile website and just 10% with an app. Cruise are also repor7ng smaller numbers with 29% having a website and 14% with an app.

Mobile Website

United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

0%

10%

9%

0%

6%

5%

0%

0%

0%

0%

2%

43%

71%

65%

79%

67%

71%

82%

78%

36%

46%

75%

57%

19%

26%

21%

27%

24%

18%

22%

64%

55%

24%

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

0%

3%

0%

3%

5%

18%

0%

0%

3%

13%

3%

79%

60%

80%

59%

83%

59%

71%

39%

47%

65%

51%

21%

37%

20%

38%

12%

23%

29%

62%

50%

23%

45%

% of respondents

Yes No Don't know

Mobile Applica.on

Importance of Mobile in Travel

We have ques7onned where the travel companies are seeing the value in mobile at the moment and whilst there is not much varia7on across the different uses, we can see that 47% of respondents consider mobile important for marke7ng and informa7on search to some degree, 16% rate very for extremely important for marke7ng and 16% for informa7on search. The least important area for our respondents is for opera7ons related purposes for which 41% do not consider this important, perhaps due to the nature of different products. Using mobile for sales is also considered less important and 38% rate this ‘not important’.

How important has the MOBILE channel been for your organisaOon in the last 3 months? Please rate on the scale below against each of the following:

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

0%

0%

0%

3%

4%

14%

0%

0%

3%

16%

6%

88%

74%

60%

69%

84%

73%

86%

62%

50%

74%

68%

13%

26%

40%

28%

12%

14%

14%

39%

47%

10%

26%

% of respondents

For sales

For marketing

For customer Service

For operations-‐related purposes e.g. check-‐in

For information search

0% 25% 50% 75% 100%

29%

41%

32%

30%

38%

24%

30%

26%

24%

29%

31%

17%

26%

31%

21%

10%

9%

11%

12%

7%

6%

4%

5%

4%

3%

% of respondents


Importance of Mobile in Travel By Company Sector

It is assumed different product types and opera7ons will find value in different uses of mobile so we have explored the responses across sectors. In terms of the value placed on mobile for sales we can iden7fy mixed responses. The largest propor7on currently ra7ng mobile for sales is the Car Rental sector. 62% of respondents state it is important to some degree. Meta-‐Search contrast showing 40% ra7ng it neither important nor unimportant and 60% feel it is not important. Cruise and Other Accommoda7on are also not par7cularly looking at mobile as a sales channel. Airline companies rate mobile for sales the most aher Car Rental. 42% of the Airline sector consider mobile for sales important to some degree including 9% ra7ng it extremely important. The Hotel sector reports 36% who consider mobile important for sales and 33% that do not. Mobile for marke7ng purposes is rated more highly by Hotel companies; 52% consider it important to some degree but the majority (36%) rate it ‘important’. Other Accommoda7on, Cruise and Car Rental do not consider mobile such a strong marke7ng channel. Meta-‐Search companies feel that mobile is more important for marke7ng purposes in comparison to sales. The Hotel sector report the smallest propor7on of companies that rate mobile ‘not important’ at 20%.

How important has the mobile channel been in the last 3 months for sales?

How important has the mobile channel been in the last 3 months for markeOng?

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

58%

28%

60%

39%

41%

41%

57%

39%

35%

61%

33%

8%

42%

40%

28%

32%

27%

29%

0%

24%

26%

31%

21%

25%

0%

19%

17%

18%

14%

54%

18%

10%

25%

13%

3%

0%

9%

7%

9%

0%

8%

15%

3%

7%

0%

3%

0%

5%

3%

5%

0%

0%

9%

0%

4%

% of respondents


Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

46%

20%

40%

32%

33%

32%

57%

54%

26%

61%

20%

21%

25%

40%

24%

24%

23%

29%

0%

15%

19%

28%

13%

39%

20%

26%

29%

32%

0%

31%

35%

16%

36%

17%

12%

0%

12%

12%

14%

14%

15%

12%

3%

12%

4%

5%

0%

6%

1%

0%

0%

0%

12%

0%

4%

% of respondents

How important has the mobile channel been in the last 3 months for customer service?

Using mobile for customer service is rated most by the Airline sector; 62% rate this important to some degree and 21% rate not important. Im comparison, Meta-‐Search do not find this a good use of mobile showing 80% consider this unimportant. DMCs/tourism board are looking to mobile for this use more than many other sectors; 55% rate it important to some degree and 23% say unimportant. Cruise again do not see the value of mobile in customer service, 71% say it is not important. OTAs are quite divided around this; 40% say not important, 24% neither important nor unimportant and 36% consider it important to some degree.

How important has the mobile channel been in the last 3 months for operaOons-‐related purposes e.g. check-‐in?

Opera7ons-‐related purposes are reported to be more valued by the Airline, DMC/tourism board and offline intermediaries based on the smaller propor7ons ra7ng this unimportant. This is the use that Airline companies feel more strongly about and 21% rate this extremely important with a further 39% ra7ng this important to come degree. Apart from Car Rental which report 39% to rate this important to some degree, most other remaining sectors are siong more neutrally ra7ng neither important nor unimportant. This excludes Meta-‐Search who fully rate this use not important as this is less relevant for their customer lifecycle than other travel sectors.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

33%

26%

80%

40%

32%

23%

71%

38%

21%

48%

28%

17%

31%

20%

24%

27%

23%

14%

15%

18%

26%

30%

25%

29%

0%

27%

21%

18%

14%

38%

32%

16%

28%

17%

11%

0%

6%

13%

32%

0%

8%

21%

7%

9%

8%

3%

0%

3%

7%

5%

0%

0%

9%

3%

6%

% of respondents


Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

33%

38%

100%

47%

36%

27%

71%

54%

24%

71%

38%

38%

31%

0%

30%

28%

36%

14%

8%

18%

16%

36%

8%

23%

0%

17%

16%

14%

14%

23%

18%

10%

19%

17%

3%

0%

5%

16%

14%

0%

8%

21%

3%

6%

4%

5%

0%

1%

4%

9%

0%

8%

21%

0%

2%

% of respondents

How important has the mobile channel been in the last 3 months for informaOon search?

Surprisingly Meta-‐Search do not view mobile as an important channel fro informa7on search showing 80% ra7ng this ‘not important’; 20% consider it ‘important’. The Airline sector is looking to mobile as an informa7on tool; just 15% rate this not important and 71% consider this important to some degree. Hotel companies also value mobile for informa7on search purposes more than other sectors repor7ng 55% that consider it important to some degree. This is the use that Cruise are looking towards the most but s7ll only 14% are ra7ng this. OTAs are fairly divided again; 32% do not rate this important, 28% are neutral and 40% feel it is important to some degree.

Overall, the Hotel sector show rela7vely consistent results across all poten7al uses of mobile but slightly lower ra7ngs for sales and opera7ons related purposes. Other Accommoda7on do not report much varia7on between uses for the small propor7on who consider any importance at all. Airline companies favour informa7on search, customer service and opera7ons related purposes slightly more than sales and marke7ng. Whilst other data in the survey has indicated a compara7vely higher level of ac7vity in mobile by the Car Rental sector, there is quite a high propor7on within all poten7al uses that rate it unimportant. However, this sector is edging on sales and customer services as a more valuable purpose of mobile. Cruise as men7oned are not looking hugely towards mobile but out of all uses they favour informa7on search. DMCs/tourism boards sit rela7vely evenly across all categories but rate customer service slightly more than other uses. The Tour Operator sector are also quite consistent across categories but the weight is towards customer service. OTAs, although not enormously varied, are ra7ng more on marke7ng and informa7on search a limle more than other purposes. Meta-‐Search are more definite repor7ng marke7ng and informa7on search to be the most valued use for this sector, but as men7oned there are a large propor7on who are not ra7ng any use at all. Offline intermediaries appear more interested in the mobile channel in rela7on to other sectors than some of the tradi7onal online ques7ons in the survey. For this sector, customer service and informa7on search are more important.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

33%

25%

80%

32%

32%

32%

43%

46%

15%

61%

21%

17%

28%

0%

28%

25%

18%

43%

15%

15%

19%

24%

33%

29%

20%

27%

20%

36%

0%

31%

35%

19%

40%

4%

11%

0%

9%

16%

9%

0%

8%

27%

0%

8%

13%

8%

0%

4%

7%

5%

14%

0%

9%

0%

7%

% of respondents


Importance of Mobile in Travel By Country

There are also varia7ons revealed across countries. Brazil rate mobile for sales the least, 80% rate this use ‘not important’. India and Germany show the lowest propor7on to say it is totally unimportant. France and India make up the majority who have rated this extremely important, although quite small propor7ons. India and France value mobile for sales the most out of all countries repor7ng 58% and 45% respec7vely rate mobile for sales important to some degree. Spain and Australia are not en7rely sure about the value of mobile for sales and show the lowest propor7ons valuing a posi7ve degree of importance but with larger propor7ons siong neutrally.

Considering informa7on search, this is where Brazil is seeing a par7cular value, especially in comparison to sales. 57% rate this important and just 14% not important. France top the country with the most posi7ve ra7ngs for this category again, 18% rate this extremely important and overall 63% of respondents from France consider this important to some degree. Germany are also on a par with France although most rate this ‘important‘. Germany also along with Brazil has the lowest propor7on who rate this unimportant.

How important has the mobile channel been in the last 3 months for sales?

How important has the mobile channel been in the last 3 months for informaOon search?

United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

86%

25%

35%

39%

35%

38%

50%

33%

36%

27%

46%

0%

17%

35%

49%

33%

29%

36%

33%

18%

45%

25%

0%

44%

26%

9%

23%

21%

9%

33%

18%

27%

21%

14%

7%

4%

3%

5%

7%

5%

0%

18%

0%

7%

0%

7%

0%

0%

3%

3%

0%

0%

9%

0%

0%

% of respondents


United KingdomGermanyFranceItalySpainGlobal

United StatesAustralia

ChinaIndiaBrazil

0% 25% 50% 75% 100%

14%

29%

22%

30%

26%

29%

36%

22%

27%

18%

37%

29%

17%

26%

42%

28%

24%

27%

22%

9%

18%

27%

57%

34%

39%

24%

31%

31%

18%

44%

18%

45%

21%

0%

12%

9%

0%

7%

10%

18%

11%

27%

18%

10%

0%

9%

4%

3%

9%

6%

0%

0%

18%

0%

5%

% of respondents

How important has the mobile channel been in the last 3 months for operaOons-‐related purposes e.g. check-‐in?

Brazil are the most dominant country who do not find mobile valuable for opera7ons-‐related purposes, 71% rate this ‘not important’ and the remaining 29% are neutral. India are the most posi7ve about mobile for this purpose out of all countries and 55% have rated it with some degree of importance. The next most posi7ve country is France but a fair way behind India with a total of 36% ra7ng some degree of importance. The UK and US are rela7vely similar in aotudes, as is Italy. China are very unsure about the value of mobile in this category and 44% chose neither important nor unimportant.

Customer service is favoured the most amongst respondents from India with just 12% selec7ng ‘not important’. The majority of the remaining respondents from this market rate customer service purposes important to some degree, including 14% ra7ng extremely important. Although not overall in comparison to India but France stands out as the most posi7ve about this category with 27% ra7ng this extremely important. There is a higher propor7on (27%) that feel it is not important however. The UK and Spain reveal similar pamerns with almost half of respondents not ra7ng this use, a quarter neutral and the rest ra7ng it important to some degree. Germany and Italy report similar responses with approximately half ra7ng some importance. The US are less keen on this use as are Australia, and Australia report par7cularly low ra7ngs with 18% choosing some level of importance.

How important has the mobile channel been in the last 3 months for customer service?

United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

71%

22%

35%

49%

37%

41%

68%

33%

45%

36%

52%

29%

24%

44%

42%

35%

30%

27%

33%

18%

36%

27%

0%

31%

13%

9%

18%

17%

0%

22%

18%

27%

10%

0%

14%

4%

0%

5%

9%

5%

11%

18%

0%

6%

0%

10%

4%

0%

5%

4%

0%

0%

0%

0%

5%

% of respondents


United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

43%

12%

26%

39%

33%

32%

46%

22%

27%

18%

45%

29%

10%

30%

42%

33%

26%

23%

33%

9%

36%

24%

14%

44%

30%

12%

26%

26%

27%

33%

9%

27%

15%

0%

20%

9%

3%

7%

11%

5%

11%

27%

18%

13%

14%

14%

4%

3%

3%

5%

0%

0%

27%

0%

3%

% of respondents

How important has the mobile channel been in the last 3 months for markeOng?

Mobile as a marke7ng channel is more popular across most markets. India put quite a lot of weight towards marke7ng with 12% choosing extremely important and overall 66% ra7ng it with some importance, nevertheless France includes 36% who rate this very important and a total of 63% feel it is important to some degree. The UK and Spain include higher propor7on that so not find mobile marke7ng important, 40% and 41% respec7vely. Australia appear very unclear with 58% sta7ng neither important not unimportant. Brazil have definitely recognised some value and 57% of respondents from that market have selected ‘important’.

In summary, the UK is rela7vely consistent with ra7ngs across different uses of mobile, yet sightly weighted towards informa7on search and marke7ng. Germany more clearly rate informa7on search, customer service and marke7ng against sales and opera7ons related purposes. France are the most posi7ve market overall but customer service and marke7ng certainly top their list of priori7es. Italy are recognising more value in informa7on search and marke7ng. Spain definitely do not rate sales and opera7ons related purposes as the most important use of mobile, customer service, informa7on search and marke7ng have significantly higher importance. The US report rela7vely consistent ra7ngs across categories but place more emphasis on informa7on search par7cularly but also marke7ng. Australia, seemingly less keen on mobile in comparison to other markets, highlight informa7on search as their most valued use and clearly have not certain found value in mobile for marke7ng. China rate mobile as a marke7ng channel more than the other categories and in contrast do not find mobile important for opera7ons related purposes. India are one of the most posi7ve markets around mobile overall and rela7vely consistent across categories but amongst the choices they par7cularly favour mobile for marke7ng and customer service, however top the ra7ngs for sales amongst all countries. Brazil display very defined preferences; sales and opera7ons related purposes are not hot for Brazil respondents but informa7on search and marke7ng are, less so for customer service.



ChinaIndiaBrazil

0% 25% 50% 75% 100%

14%

22%

22%

36%

27%

30%

41%

22%

27%

18%

40%

29%

12%

17%

58%

32%

24%

23%

22%

9%

27%

22%

57%

42%

52%

6%

30%

31%

27%

44%

27%

36%

22%

0%

12%

4%

0%

7%

12%

9%

11%

36%

18%

15%

0%

12%

4%

0%

4%

4%

0%

0%

0%

0%

0%

% of respondents


Aetudes Towards Mobile in Travel

The industry is quite split between whether mobile has generated ROI or not. 29% agree that it has generated very limle or zero ROI and 23% disagree with the statement. It is therefore evident that there is a slight weighing towards investments which have yet to produce return for companies. Mobile is working for some companies because 32% have received direct bookings from mobile but perhaps the levels of investment have yet to pay off fully. More respondents agree that mobile has improved their engagement with consumers than generated direct bookings; 38% agree that mobile has improved engagement against 18% that disagree. Looking at actual current and upcoming investments, we can see that from the 34% that have invested in mobile in the last 3 months, 49% intend to invest in the next 3 months, an increase of 15%. 17% are definitely not planning to invest in mobile in the next quarter but 34% rate ‘neither agree nor disagree’.

Below are a number of statements regarding antudes towards mobile in travel, please read each one and indicate to what extent you agree or disagree:

AUtudes Towards Mobile in Travel by Country

Mobile has generated us very liple or zero return on investment (ROI)

Analysing these results by country reveals some level os varia7on. France are seeing the best results out of our respondents, 27% have definitely seen some ROI from mobile and combined with those that disagree wit the statement it amounts to 63% that feel mobile has generated them a decent ROI level. Many of the respondents from Brazil and Australia have yet to iden7fy a significant return.

Mobile has generated us very little or zero return on investment (ROI)

Mobile has generated us direct bookings

Mobile has improved our engagement with consumers

We have increased our investment in mobile in the last 3 months

We will be increasing our investment in mobile over the next 3 months

0% 25% 50% 75% 100%

6%

9%

6%

8%

6%

11%

19%

12%

17%

17%

34%

38%

45%

43%

47%

37%

28%

32%

27%

23%

12%

6%

6%

5%

6%

% of respondents -‐ all travel companies


United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

0%

7%

0%

0%

6%

6%

9%

0%

27%

9%

7%

0%

32%

26%

9%

15%

17%

9%

22%

36%

9%

12%

43%

36%

52%

48%

57%

47%

50%

44%

18%

45%

48%

57%

19%

22%

36%

18%

23%

23%

33%

18%

36%

24%

0%

7%

0%

6%

4%

6%

9%

0%

0%

0%

9%

% of respondents


France appear to be realising their ROI through direct bookings as 27% agree strongly that mobile has generated them direct bookings. A further 18% agree. Brazil have not seen many results here yet. The other markets display a rela7vely similar pamern in responses.


There is not an enormous varia7on between markets in terms of views towards consumer engagement. China, India , Spain and France agree more than others on this statement but only marginally. Across all markets however there is a smaller propor7on of those who totally disagree.

United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

0%

7%

0%

3%

7%

8%

9%

0%

9%

9%

13%

43%

20%

13%

15%

8%

17%

14%

22%

18%

27%

9%

57%

27%

48%

49%

52%

43%

36%

44%

27%

36%

51%

0%

41%

39%

30%

28%

27%

36%

33%

18%

27%

21%

0%

5%

0%

3%

5%

5%

5%

0%

27%

0%

6%

% of respondents


United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

0%

3%

0%

3%

7%

6%

0%

0%

9%

0%

8%

14%

10%

9%

12%

12%

12%

5%

22%

9%

9%

12%

43%

32%

39%

61%

45%

45%

46%

67%

36%

55%

54%

43%

46%

48%

24%

29%

32%

46%

11%

36%

36%

22%

0%

8%

4%

0%

7%

6%

5%

0%

9%

0%

5%

% of respondents


Recent investments in mobile do vary across markets. Brazil appear to have invested the least, with 14% agreeing with the statement, 29% in the middle but a more significant 57% disagreeing. The most investment in terms of the propor7on of that market is coming from Germany and France and the results are quite similar for these countries except France have perhaps been the heavier investors with 27% agreeing strongly. The UK include a rela7vely large propor7on that have certainly not invested, 34%, and Australia and Italy sit at the bomom of the scale for those that agree to some degree.


Looking forward to the next quarter, the most investment is likely to be coming from companies in France and Spain, both with 27% of respondents strongly agreeing that they will be increasing their investments in mobile in the next 3 months. Overall considering those that agree with the statement to some degree we can iden7fy quite a consistent pamern across all countries. Spain is marginally higher amoun7ng to 59% of respondents planning to invest to some degree. The smaller propor7ons are in Australia, China and Brazil. Germany is definitely seeing some movement in the mobile space because no one states that they will definitely not be inves7ng in mobile.



ChinaIndiaBrazil

0% 25% 50% 75% 100%

14%

5%

4%

3%

9%

9%

5%

0%

9%

9%

13%

43%

17%

17%

18%

15%

19%

18%

33%

9%

9%

21%

29%

42%

52%

61%

35%

38%

32%

44%

27%

27%

34%

0%

31%

26%

18%

35%

28%

36%

22%

27%

55%

22%

14%

5%

0%

0%

5%

6%

9%

0%

27%

0%

9%

% of respondents


United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

14%

5%

0%

6%

7%

6%

5%

0%

9%

0%

8%

14%

10%

17%

12%

9%

11%

9%

11%

0%

0%

10%

29%

39%

48%

42%

35%

34%

27%

33%

36%

45%

30%

43%

32%

30%

36%

39%

37%

32%

44%

27%

45%

39%

0%

14%

4%

3%

11%

12%

27%

11%

27%

9%

13%

% of respondents

AUtudes Towards Mobile in Travel by Company Sector

Mobile has generated us very liple or zero return on investment (ROI)

Car Rental companies have seen the best ROI from mobile amongst sectors. A good propor7on of the Airline sector is evidently s7ll wai7ng for real ROI because 36% agree with the statement. Nevertheless 27% have reported to record some results to date. Offline intermediary, Other Accommoda7on, Cruise, Meta-‐Search, OTA and Tour Operator sectors include the largest propor7ons who have yet to see decent ROI from mobile. DMC/tourism board and Hotel sectors have seen some return shown by the 30% of Hotel respondents and 27% of DMC/tourism board respondents that disagree with the statement.


Investments into mobile have come mainly from the Meta-‐Search and Car Rental sectors over the last quarter. Airlines have followed and then OTAs. Other Accommoda7on has not been enormously ac7ve nor have offline intermediaries. The biggest shih we are expec7ng over the next 3 months is within the Cruise sector; from 29% who increased their mobile investment over the last 3 months, 71% expect to be increasing their investment in the next quarter. More tour operators are also looking to increase their investment; from 20% in the last quarter to 41% in the next quarter. Growth is also expected in the OTA sector and we expect a shih from 38% of the sector inves7ng to 56% in the next 3 months. Meta-‐Search are going to be the sector with the biggest propor7on of investors in mobile; 80% intend to make increases over the next 3 months in comparison to 60% in the last quarter. Offline intermediaries are also showing signs of development in this space and from the 42% that definitely did not invest in the last quarter, this group is expected to reduce to 30%, so a larger propor7on either definitely inves7ng or considering it.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

8%

3%

0%

6%

3%

9%

0%

23%

12%

6%

7%

8%

17%

0%

13%

20%

18%

14%

15%

15%

6%

23%

33%

57%

60%

45%

40%

46%

43%

38%

38%

48%

49%

38%

20%

40%

26%

31%

23%

29%

23%

24%

29%

18%

13%

3%

0%

10%

7%

5%

14%

0%

12%

10%

4%

% of respondents


Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

21%

6%

0%

12%

13%

14%

0%

0%

12%

19%

5%

21%

9%

20%

21%

28%

27%

29%

8%

9%

19%

19%

42%

40%

20%

31%

39%

32%

43%

31%

29%

58%

40%

17%

40%

40%

30%

17%

27%

29%

46%

44%

3%

29%

0%

5%

20%

8%

3%

0%

0%

15%

6%

0%

7%

% of respondents



The best results for direct bookings has been experienced in the Car Rental sector. A significant 69% agree with the statement including 23% strongly agreeing. Airlines are the next most successful sector; 47% have seen direct bookings. Hotel and OTA sectors are rela7vely similar in results with 39% and 37% respec7vely agreeing with the statement. Offline intermediaries, Other Accommoda7on and DMC/tourism board sectors report the lowest propor7ons.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

17%

2%

0%

6%

8%

14%

14%

0%

9%

13%

3%

13%

5%

0%

14%

12%

18%

0%

8%

3%

6%

12%

33%

37%

20%

24%

39%

36%

14%

15%

24%

61%

35%

33%

37%

60%

41%

36%

32%

57%

54%

41%

19%

37%

4%

20%

20%

14%

5%

0%

14%

23%

24%

0%

12%

% of respondents

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

21%

6%

0%

6%

7%

18%

29%

0%

12%

16%

4%

29%

12%

0%

24%

25%

23%

0%

8%

6%

23%

13%

38%

58%

80%

32%

44%

36%

57%

23%

35%

39%

44%

13%

18%

20%

31%

20%

23%

14%

46%

41%

16%

34%

0%

5%

0%

6%

4%

0%

0%

23%

6%

7%

5%

% of respondents



In terms of consumer engagement, again Car Rental are repor7ng the most success. Airline companies are however closely following because 65% of Airline respondents agree with the statement to some degree, in comparison to 69% of Car Rental companies. Least posi7vity is coming from the Cruise and Other Accommoda7on sectors. OTAs and hotels are again repor7ng quite similar results.

Hotel

Other accommodation

Airline

Car Rental

Cruise

DMC / tourism board

Tour operator


Meta-‐search



0% 25% 50% 75% 100%

17%

3%

0%

6%

5%

14%

14%

0%

9%

10%

3%

17%

9%

0%

21%

16%

14%

0%

0%

6%

16%

9%

38%

52%

100%

41%

45%

23%

71%

31%

21%

52%

49%

21%

28%

0%

27%

31%

50%

14%

54%

56%

23%

34%

8%

8%

0%

5%

3%

0%

0%

15%

9%

0%

5%

% of respondents

SecOon 11: Next Quarter Budgets

Next Quarter Budgets

In the upcoming quarter 57% of all travel companies are planning an increase in budget towards web design/re-‐design. The biggest increase is expected to be in social media with data revealing that 61% are planning an increase. Mobile investment is also on the cards for 48% of companies and 27% are not planning investment at all or don’t know yet. Offline marke7ng is showing the highest propor7on of companies reducing budgets.

For the NEXT QUARTER do you expect to be increasing or reducing budgets for the following (in comparison to the previous quarter):

Next Quarter Budgets By Country

Germany are showing the largest propor7on inves7ng in their websites; 91% plan an increase in budget towards this. The other markets reveal similar pamerns, although the UK (70%) are on the higher side.

Web Design / Re-‐Design

Website design

Paid search engine listings

Online display advertising

Email marketing

Social media

Mobile

Offline marketing

0% 25% 50% 75% 100%

7%

10%

5%

5%

7%

5%

2%

13%

17%

4%

4%

13%

9%

1%

18%

3%

2%

5%

9%

7%

3%

40%

23%

29%

46%

39%

36%

36%

21%

48%

61%

42%

33%

43%

57%

% of respondents -‐ all travel companies


United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

0%

2%

4%

0%

3%

2%

5%

11%

0%

9%

2%

0%

3%

0%

0%

1%

1%

5%

0%

0%

0%

0%

0%

2%

0%

0%

3%

3%

0%

0%

0%

0%

6%

43%

39%

44%

52%

39%

36%

41%

33%

36%

0%

22%

57%

54%

52%

49%

55%

57%

50%

56%

64%

91%

70%

% of respondents

Offline Marke.ng

Offline marke7ng plans are changing remarkably in Spain with major reduc7ons planned or not budgets allocated at all. Only 27% plan an increase. Brazil, India, China and Australia reveal the largest propor7ons planning an increase in this medium.

Mobile

Germany and France are expec7ng the most increases in mobile investment for the next quarter, 73% and 64% respec7vely. Germany are looking to be the most ac7ve market in terms of mobile. Italy are expec7ng the least investment in the next 3 months, followed by Australia. Brazil and India are also intending to make some developments in the upcoming quarter because 77% of respondents from India and 86% from Brazil either plan to increase or keep the same investments.

United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

0%

2%

0%

6%

8%

7%

14%

11%

18%

9%

3%

0%

7%

4%

15%

19%

13%

36%

33%

0%

9%

12%

14%

12%

22%

12%

19%

18%

23%

0%

36%

27%

25%

43%

39%

30%

36%

38%

40%

18%

56%

36%

36%

46%

43%

41%

44%

30%

17%

21%

9%

0%

9%

18%

13%

% of respondents

United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

0%

7%

9%

9%

11%

10%

9%

11%

0%

0%

13%

14%

10%

17%

27%

21%

17%

18%

33%

9%

0%

16%

0%

5%

9%

0%

3%

3%

0%

0%

9%

0%

6%

43%

30%

30%

27%

19%

23%

36%

11%

18%

27%

18%

43%

47%

35%

36%

47%

48%

36%

44%

64%

73%

46%

% of respondents


Social Media

In term of social media, Germany is again proving to be the most ac7ve in the upcoming quarter; all respondents intend to either increase or keep the same budgets for this with 73% planning an increase. Brazil shows a similar pamern with 71% planning an increase. Italy is showing the least and Australia following. The other markets are not too dissimilar to each other.

Email Marke.ng

Email marke7ng is rela7vely consistent across countries. Italy are planning the least investments and Brazil the most.

United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

0%

2%

4%

6%

6%

5%

5%

11%

0%

0%

4%

0%

5%

0%

9%

2%

4%

5%

11%

0%

0%

4%

0%

2%

0%

0%

1%

2%

5%

0%

9%

0%

6%

29%

31%

52%

33%

27%

29%

32%

22%

18%

27%

24%

71%

61%

44%

52%

64%

61%

55%

56%

73%

73%

61%

% of respondents

United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

0%

0%

4%

3%

6%

5%

5%

22%

9%

9%

5%

0%

5%

0%

3%

4%

4%

9%

11%

0%

0%

3%

0%

7%

9%

0%

3%

5%

9%

0%

9%

0%

3%

57%

37%

44%

42%

46%

46%

41%

56%

55%

64%

51%

43%

51%

44%

52%

40%

42%

36%

11%

27%

27%

39%

% of respondents


Online Display Adver.sing

Online display adver7sing is also fairly consistent across markets but we can iden7fy more reduc7ons compared to some categories. Italy are planning the biggest reduc7ons in terms of the propor7on of respondents. Spain is planning the largest propor7on of increases (46^) along with the UK (37%) and Australia (39%).

Paid Search Engine Lis.ngs (PPC)

71% of Brazil respondents plan an increase in budget for paid search lis7ngs, but 30% do not intend to allocated any budget to this at all. Germany are expected to be ac7ve in paid search lis7ngs but the majority are keeping their budgets the same (64%) rather than increase (36%). Australia and India are the next largest propor7ons aher Brazil to plan an increase in PPC budgets. All markets however have between a third and half who have planned an increase.

United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

0%

3%

9%

6%

7%

7%

5%

11%

9%

9%

6%

14%

7%

0%

18%

17%

13%

18%

11%

9%

9%

18%

14%

12%

4%

0%

5%

9%

5%

22%

18%

0%

10%

57%

44%

52%

36%

42%

39%

27%

33%

55%

55%

28%

14%

34%

35%

39%

29%

33%

46%

22%

9%

27%

37%

% of respondents

United Kingdom

Germany

France

Italy

Spain

Global

United States

Australia

China

India

Brazil

0% 25% 50% 75% 100%

0%

3%

4%

0%

4%

5%

5%

22%

9%

0%

3%

29%

5%

4%

9%

14%

9%

5%

22%

9%

0%

9%

0%

7%

4%

3%

6%

7%

5%

0%

18%

0%

10%

0%

36%

52%

36%

35%

36%

46%

22%

27%

64%

34%

71%

49%

35%

52%

41%

43%

41%

33%

36%

36%

43%

% of respondents


SecOon 12: Biggest Challenges

The biggest challenges for travel companies right now...

Challenges for companies are mixed. Some of the key themes are increasing direct bookings, understanding mobile and social media and of course managing to challenge the compe77on. As we will see below the main themes for both challenge and opportunity is mobile and social media. It is the hot topic of the moment.

SecOon 13: What Has The Industry Learnt Recently?

&SecOon 14: Biggest Opportuni.es Iden.fied

What respondents feel they and their teams have learnt most over the last year

The industry is learning by the day to improve their distribu7on and marke7ng strategies and enhance the efficiency in sales and marke7ng as the markets consistently change and new opportuni7es emerge. Below we illustrate some of the key areas that respondents feel they’ve learn over the last 12 months. Social is a key theme and a large propor7on of the travel industry are now certainly taking this medium extremely seriously as part of their business objec7ves. Online marke7ng has definitely been an area of improvement overall.

The biggest opportuni(es iden(fied…

The biggest opportuni7es of the moment are considered to be mobile and social media. They both carried rela7vely similar weight and it is clear that companies need to watch the space in both of these mediums to ensure they keep up with their industry peers. The huge propor7on of respondents that stated these new channels suggests that it is an opportunity recognised across the industry and across the world. We expect to see a lot more innova7on in this space in 2011 and beyond.

SecOon 15: Next Big Thing in Travel Distribu.on & Marke.ng

What the industry feels the next new thing in travel distribu(on and marke(ng is…

Echoing the above results, the next new thing is expect to be mobile. It is clearly the most dominant theme amongst all respondents. Social is s7ll there and certainly not considered old hat! But mobile is really expected to be growing in significance for travel companies across the globe. Loca7on based marke7ng, social media, mobile apps… perhaps the next core theme will towards integra7on.

… what’s next?!

Find out in the next edi,on of the Travel Distribu,on & Marke,ng Barometer

To join our research panel please email Tim Gunstone: ([email protected]

