beyond booking webinar follow up
TRANSCRIPT
Beyond BookingBuilding Brand Equity Online in the Travel & Leisure Market
Presented by Jessica Hogue & Karen Daenen
2p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
On-Demand Business Research:On-demand access to a dedicated research team that quickly provides the insights and knowledge you need to track competitors, markets, technology and new opportunities.
Strategic Intelligence:Insightful intelligence ethically obtained from unpublished sources, industry experts, market watchers and from actual market players who know the companies you want to understand.
Custom Market Research:In-depth custom research and strategic consulting through advanced interviewing and analytical techniques.
Product Development Intelligence:Analysis and expert advice in conceiving, developing and commercializing new products and processes.
Our Research Capabilities
3p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Expert Advisory Network:Expert consulting and witness services from over 10,000 industry experts covering nearly all areas of science, engineering, regulation and business.
Global Research:International research capabilities through an exclusive network of business intelligence centers
Legal Survey Research and Expert Witness Services:Survey research intended to withstand even the most rigorous judicial scrutiny and expert witness services for a wide variety of legal disputes
Our Research Capabilities (continued)
4p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Jessica HogueJessica Hogue is a Business Research Analyst at Guideline who specializes in food and beverage, travel and leisure industries. Prior to joining Guideline, Ms. Hogue was a Marketing and Communications Director for a luxury cruise operator, where she spearheaded email marketing as well as distributing product online. She previously worked as a freelance writer and at Gourmet magazine, a Condé Nast publication. Ms. Hogue holds a B.A. from Pepperdine University and an M.S. in Journalism from the Columbia University School of Journalism.
Karen DaenenKaren Daenen is a Research Analyst specializing in food, wine and travel and leisure industries. Prior to joining Guideline, Karen worked as Director of Information Services at a wine importing and marketing company based in New York. She holds a BA from Columbia University and a Master’s degree in Library Science from Pratt.
About the Presenters
5p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
The Online Travel Market Today
Today’s online travel marketplace is valued at $68 billion.
In 2005, more than one-quarter of all leisure and unmanaged business travel was booked online.
Online travel is expected to grow to 35% by 2006.
Understand and market to travelers’ evolving online
information and inspiration needs
Personalize and humanize the online experience
Offer “expert” or “insider” content travelers can’t get elsewhere
6p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Objective & Methodology
Our objective was to uncover the purchasing patterns of people who book travel arrangements online. What motivates them to choose one supplier over another? Are there any subtleties that travel/leisure providers can play to in an effort to attract travelers’ attention? Finally, we sought to differentiate between luxury and non-luxury travelers.
Guideline conducted 407 online interviews, with respondents who have a total household income of at least $100,000 and who have taken a domestic or foreign vacation in the past 2 years.
Travelers
n=202 n=205LUXURY TRAVELERS MAINSTREAM TRAVELERS
(spent >$2k+ pp) (spent <$2k pp)
Two hundred surveys provide error margins of + 6.9% for each group, while comparisons of the two groups will have an error margin of + 11%.
7p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
The Travel Planning Process: First Stop - The Big Three
Over 5 billion travel-related searches were performed in 2005.
46% of online travelers start their search with Expedia, Travelocity or Orbitz.
Only 24% first visit a branded airline, hotel or car rental site.
Source: comScore; Nielsen/NetRatings
8p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
46% of Mainstream travelers visit between 4-6 sites, another 39% visit between 1 and 3.
A small segment of Luxury travelers (15%) visit as many as 10 sites.
Significant in comparison to other sub-group
Average Number of Websites Visited Before Purchasing
34%
8%
15%
43%
39%
7%
8%
46%
more than10
7-10
4-6
1-3
Standard (n=196)
Luxury (n=192)
Average Number of Websites Visited Before Purchasing
9p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Q: Who does the research for your leisure/personal travel?Q: Who actually pays for your leisure/personal travel?
(Multiple responses permitted)
Who does the research?
Who pays for the travel?
(Multiple responses permitted)
5%
7%
45%
93%
1%
4%
44%
97%
My secretary /executiveassistant
My child /children
My Spouse
Me
Standard (n=205)
Luxury (n=202)
1%
7%
5%
30%
96%
2%
2%
5%
28%
99%
Frequent Flier miles
My company pays for it
I use miles from my company creditcard
I use miles from my personal creditcard
I pay for it with cash or credit card
Researchers vs. Payees
10p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Destination Influencers
Destination influences ranked from most influential to least influential.
Significant in comparison to other sub-group
Destination Influencers
2%
18%
19%
38%
2%
10%
18%
17%
23%
54%
Travel blogs
A magazine or new spaper article(Travel + Leisure, Conde Nast
Internet sources (About.com,Frommers.com)
Travel promotion (direct mail, email,TV, etc)
Recommendation by friends orfamily
Standard (n=205)
Luxury (n=202)
11p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Sources Most Influential in Travel Planning
39%
19%
17%
23%
3%
52%
18%
19%
11%
1%
Recommendation by friends or family
Travel promotion (direct mail, email,television, etc)
Internet sources (About.com;Frommers.com)
A Magazine or New spaper Article(Travel and Leisure, Conde Nast
Traveler, etc)
Travel Blogs
Male
Female
Destination Influencers
12p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Online Resources Used to Research Trips
Online Resources Used to Research Trips
41%
71%
75%
80%
33%
65%
62%
87%
Online search aggregators(Sidestep.com, Kayak.com,
TravelZoo.com)
Travel Guide Websites (from Touristoff ice or specif ic destination)
Online Agencies (Expedia, Orbitz,Travelocity)
Standard (n=196)
Luxury (n=192)
13p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Most Preferred Offline Resources
11%
12%
25%
46%
71%
26%
11%
10%
25%
64%
None of the Above
Other
Tour Operators (Abercrombie &Kent)
Live Travel Agent
Magazine or Newspaper Articles
Standard (n=196)
Luxury (n=192)
Offline Resources Used to Research Trips
14p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Compelling Website Components for Destination Selection
7%
25%
35%
9%
32%
25%
34%
34%
Ratings by a third party
Photos / Slideshows
Articles
Reviews by othertravelers
Standard (n=196)
Luxury (n=192)
Significant in comparison to other sub-group
Both sets rate reviews by other travelers, articles and photos or slide shows as valuable components.
Compelling Website Content for Destination Selection
15p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Most Appealing Website Components
Most Appealing Website Components
5%
8%
27%
23%
37%
2%
13%
25%
31%
30%
Blogs
Email chats and message boards
Downloadable podcasts by travel writers /adventurers / historians about a particular
property or destination
Premiums / giveaways (such as travel bag, t-shirt,etc)
Interactive / multimedia presentations
Standard (n=196)
Luxury (n=192)
16p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Royal Caribbean
17p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Royal Caribbean
18p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Royal Caribbean
19p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Royal Caribbean
20p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
VisitLasVegas.com
21p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
VisitLasVegas.com
22p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Lufthansa
23p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Lufthansa
24p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Lufthansa
25p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Luxury
30%
35%
34%
Booking Preference
Significant in comparison to other sub-group
Standard
14%
34%
49%
Prefer to book with a live travel agent
Prefer to book directly with travel supplier
Prefer to book online via online travel agency or travel search aggregator
26p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Three Primary Forms of Travel Transacted Online
36 million airline tickets are booked online and 32 million hotel accommodations and 17 million rental cars
Source: Forrester
27p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Comfort Booking Many Types of Travel Online
Comfort Booking Many Types of Travel Online
57%
50%
54%
58%
59%
82%
86%
88%
53%
48%
56%
61%
63%
82%
90%
92%
Cruise
Excursions
B&B
Spa Destination
Total Vacation Package
Car Rental
Hotel Chain
Flight
Luxury (n=202) Standard (n=205)
MARKET
OPPORTUNITY
28p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Where Do You Get the Best Price?
Where Do You Get the Best Price?
6%
7%
36%
34%
5%
5%
6%
41%
43%
17%
Other
Travel Search Aggregators
Live Travel Agent
Direct booking with Hotel, Cruise,Airline supplier
Online Travel Agencies
Standard (n=205)
Luxury (n=202)
Significant in comparison to other sub-group
29p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Maximum Willing to Spend Per Person
What is the maximum you would spend per person for a luxury vacation package online?
Maximum Willing to Spend Per Person
2%
2%
5%
12%
4%
24%
5%
51%
29%
19%
24%
24%
Less than $500
$500 to $1000
$1000 to $1500
$1500 to $2000
$2000 to $5000
More than $5000
Standard (n=205)
Luxury (n=202)
Significant in comparison to other sub-group
30p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Importance of Brand Selection
When booking a luxury travel package how important are the following components to ensuring the enjoyment of your trip?
Importance of Brand Selection
47%
66%
71%
78%
42%
64%
63%
83%
Using car rentalsupplier of my selection
Cruising on ship of myselection
Flying on airline carrierof my selection
Staying in hotel of myselection
Standard (n=205)
Luxury (n=202)
31p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Why Are We Hesitant to Book Online?
The Luxury Group are more likely than the Standard Group to say that they are unable to get everything they need from one source for their personal/leisure travel.
Why Are We Hesitant to Book Online?
23%
26%
37%
60%
26%
28%
21%
60%
Don't transact large purchases online
Don't think websites are trustworthy
Not able to create a complete vacationpackage through one source
Prefer to talk to a live person
Standard (n=53)
Luxury (n=70)
32p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
9%
17%
69%
Your online research is an enjoyable aspect of pre-planning your trip
Your online research process is too confusing
Your online research process is too time consuming
Attitudes Toward Travel Planning Online
Confused, Fed Up with Travel Planning?
33p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
I. Know the Researcher, the Broker and the Booker – Address each need state through the travel process to optimize number of solutions your brand can deliver.
II. Personalize & Humanize Your Site – While a website will never replace the “live” experience a travel has with your brand, create some of that experience online by offer rewards for feedback, inviting travelers to write reviews and ask questions via live chats to encourage interaction online.
III. Become the Expert – Provide authoritative content or partner with an expert to create an “insider” feel and lend credibility to elements of your online content so you are THE trusted source.
Keys to Building Brand Equity in the Online Travel Market
34p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking
Thank You
625 Avenue of the Americas
New York, NY 10011
www.guideline.com
Jessica Hogue Karen DaenenResearch Analyst Research Analyst212.463.6306 [email protected] [email protected]
Contact
All attendees will receive these PowerPoint slides and access to an online recording of the presentation within the next week.