getting to know europe's new digital traveler

Douglas Quinby Vice President,

Research PhoCusWright Inc.

Getting To Know Europe's New Digital Traveler, Sponsored by Monetate

September 26, 2013 A PhoCusWright Webinar

Marcello Gasdia Consumer Research

Analyst PhoCusWright Inc.

Sponsored by:

Mike Harris Vice President,

EMEA Monetate

2 © 2013 PhoCusWright Inc. All Rights Reserved.

Getting To Know Europe's New Digital Traveler, Sponsored by Monetate

September 26, 2013

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3 © 2013 PhoCusWright Inc. All Rights Reserved.

• General Leisure Traveler Behavior and Technology Adoption

• Online Leisure Travel Planning Trends

• Connecting with Digital Travelers:

Challenges and Opportunities

Agenda

© 2013 PhoCusWright Inc. All Rights Reserved. 4

© 2013 PhoCusWright Inc. All Rights Reserved. 5

67% 66% 70%

69% 68% 72%

75% 75% 78%

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

© 2013 PhoCusWright Inc. All Rights Reserved. 6

47%

24%

22%

55%

14%

18%

50%

15%

16%

Financial considerations/travel is tooexpensive

I went to places where I could staywith friends/family

No time to travel

France

Germany

U.K.

Top 3 Reasons for Not Traveling

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

© 2013 PhoCusWright Inc. All Rights Reserved. 7

Discretionary Spending Preferences

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

Travel and Tourism Travel and Tourism Travel and Tourism

Dining/nightlife

Dining/nightlife

Dining/nightlife

Entertainment/Sports

Entertainment/Sports

Entertainment/Sports

Fashion and accessories Fashion and accessories

Fashion and accessories

Health/Beauty/Spa products

Home improvements

Consumer Electronics

Cars/car-associated goods

Health/Beauty/Spa products

Health/Beauty/Spa products

Home improvements

Home improvements

Consumer Electronics

Cars/car-associated goods

Consumer Electronics

Cars/car-associated goods

© 2013 PhoCusWright Inc. All Rights Reserved. 8

MOBILE

+ SOCIAL

NETWORK

ADOPTION

© 2013 PhoCusWright Inc. All Rights Reserved. 9

Mobile Web Adoption (Smartphones Only)

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

58% 68%

75%

45% 56%

66% 58%

69% 75%

2011 2012 2013 2011 2012 2013 2011 2012 2013

France Germany U.K.

© 2013 PhoCusWright Inc. All Rights Reserved. 10

“Frequent/Daily” Mobile Web Users, by Age

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013

18-24

25-34

35-44

45-54

55-64

65+

© 2013 PhoCusWright Inc. All Rights Reserved. 11

“Frequent/Daily” Mobile Web Users, by Age

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

56%

70%

84%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013

18-24

© 2013 PhoCusWright Inc. All Rights Reserved. 12

Participation in Social Networks

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

0%

10%

20%

30%

40%

50%

60%

70%

80%

Fran

ce

Ger

man

y

U.K

.

Fran

ce

Ger

man

y

U.K

.

Fran

ce

Ger

man

y

U.K

.

Fran

ce

Ger

man

y

U.K

.

Fran

ce

Ger

man

y

U.K

.

Facebook Twitter Linked-in Google+ No Participation

2011 2012 2013

© 2013 PhoCusWright Inc. All Rights Reserved. 13

Source: PhoCusWright’s European Online Travel Overview Eighth Edition

52%

40%

35%

Online Leisure Market Penetration

14 © 2013 PhoCusWright Inc. All Rights Reserved.

Digital Travel Planning Trends

© 2013 PhoCusWright Inc. All Rights Reserved. 15

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

72% 71%

80% 77% 77% 78%

France Germany U.K.

2012 2013

% of Travelers Who Typically Shop For Travel on Desktops or Laptops

© 2013 PhoCusWright Inc. All Rights Reserved. 16

9% 11%

10%

15% 13% 11%

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

9% 8% 8%

10% 10%

14%

France Germany U.K.

2012 2013

© 2013 PhoCusWright Inc. All Rights Reserved. 17

?

© 2013 PhoCusWright Inc. All Rights Reserved. 18

Time Spent Planning Leisure Travel on Desktop Web (Mobile Travel Planners only)

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

65%

17%

18%

Desktop/Laptop

© 2013 PhoCusWright Inc. All Rights Reserved. 19

Polling Question

Among European mobile travel planners, what percent of all online leisure trip planning was

conducted on a tablet?

a. 7% b. 18% c. 23%

© 2013 PhoCusWright Inc. All Rights Reserved. 20

65%

17%

18%

Desktop/Laptop

Smartphone

Tablet

Time Spent Planning Leisure Travel on Desktop Web, Smartphones and Tablets (Mobile Travel Planners)

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

© 2013 PhoCusWright Inc. All Rights Reserved. 21

Time Spent Planning Leisure Travel on Mobile Devices, by Age

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

3% 10%

16% 19% 25%

30% 22%

24% 21% 11%

55+45-5435-4425-3418-24

Smartphone Tablet

© 2013 PhoCusWright Inc. All Rights Reserved. 22

vs.

?

© 2013 PhoCusWright Inc. All Rights Reserved. 23

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

64% 17%

19%

62% 17%

20%

© 2013 PhoCusWright Inc. All Rights Reserved. 24

Connecting with Digital Travelers: Challenges and Opportunities

© 2013 PhoCusWright Inc. All Rights Reserved. 25

Desktop/Laptop only travel planners (Markets Combined)

Mobile travel planners (Markets Combined)

Annual Household Travel Spend €2,437 €3,394

© 2013 PhoCusWright Inc. All Rights Reserved. 26

Top 3 Drivers of Travel Brand Loyalty

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

36%

36%

22%

37%

44%

30%

49%

45%

32%

It offers better prices/value

It is reliable/I haven't had problems

It's easy to shop/find what I am looking for on itswebsite

France

Germany

U.K.

© 2013 PhoCusWright Inc. All Rights Reserved. 27

30% 37% 39%

32% 33% 29% 32% 26% 29%

20%

36% 36%

23% 14%

25% 32%

14%

35%

17% 17% 22%

19%

23% 22%

15% 16%

10%

15%

11% 14%

5%

18% 11%

10%

6%

9%

11%

3%

11%

5% 5% 5%

Fran

ce

Ge

rman

y

U.K

.

Fran

ce

Ge

rman

y

U.K

.

Fran

ce

Ge

rman

y

U.K

.

Fran

ce

Ge

rman

y

U.K

.

Fran

ce

Ge

rman

y

U.K

.

Fran

ce

Ge

rman

y

U.K

.

Fran

ce

Ge

rman

y

U.K

.

Recommendations fromfriends/family

Personalisedoffers/recommendations

A one-time promotionaloffer for new users

Positive media coverage(news articles, etc.)

A loyalty programme High ranking search results Television/MediaAdvertisements

Influential Extremely Influential

Factors Influencing Trying New Travel Brand

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

Personalized Offers Are on Traveler’s Radar…

© 2013 PhoCusWright Inc. All Rights Reserved. 29

“I expect travel websites to reference my past activities to personalize offers for me.”

Source: PhoCusWright’s European Consumer Travel Report Fourth Edition

24% 18% 36% 16% 7%

Strongly Disagree 2 3 4 Strongly Agree

20% 21% 29% 21% 9%

17% 16% 28% 25% 14%

3-5 Trips Annually

1-2 Trips Annually

6+ Trips Annually

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Questions?

Douglas Quinby Vice President,

Research PhoCusWright Inc.

Marcello Gasdia Consumer Research

Analyst PhoCusWright Inc.

Sponsored by:

Mike Harris Vice President,

EMEA Monetate

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