online travel market - failte ireland€¦ · question: what sources of information did you use to...

Online Travel MarketFrance, Germany, UK and USA

Failte Ireland On-line Summit

17 September 2015

Dr. Peter O’Connor

Senior Market Analyst Europe,

Phocuswright Inc.

© 2015 Phocuswright Inc. All Rights Reserved. 2

Agenda

1. European and U.S. Online Travel Markets

2. Consumer Behavior

3. France Market Insights

4. German Market Insights

5. U.K. Market Insights

6. U.S. Market Insights

7. Conclusion

European and U.S. Online Travel Markets


U.S. Travel Market Gross Bookings

($B), 2009-2016

Note: 2014-2016 projected.

Source: Phocuswright's U.S. Online Travel Overview Fourteenth Edition

200

250

300

350

400

2009 2010 2011 2012 2013 2014 2015 2016


European Travel Market Gross

Bookings (€B), 2009-2016


Source: Phocuswright’s European Online Travel Overview Tenth Edition

200

250

300

350

400

2009 2010 2011 2012 2013 2014 2015 2016


Online Travel Penetration by Region, 2012-

2016

Note: 2014-2016 projected. Online penetration is the share of total market gross bookings

captured by supplier websites, mobile channels and OTAs.

Source: Phocuswright Inc.

30%

40%

50%

2012 2013 2014 2015 2016

U.S. Europe


Total and Online Travel Gross Bookings and Online

Penetration (%) by Market, 2014


-

50

100

150

200

250

300

350

Germany U.K. France USA

Total Market Online Market

36% 56% 42% 44%

Note: 2014-2016 projected. Online penetration is the share of total market

gross bookings captured by supplier websites, mobile channels and OTAs


0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Germany U.K. France USA

Total Market Online Market

Total and Online Travel Market CAGR by Market,

2013-2016

Note: 2014-2016 projected. U.K. growth calculated using pounds sterling.

U.S. growth calculated using U.S. dollars.



European Online Travel Agency Gross Bookings (€B)

and Growth (%), 2012-2016



- 10 20 30 40 50 60

2016

2015

2014

2013

2012

Thousands

12%

10%

8%

7%


U.S. Online Travel Agency Gross Bookings ($B)

and Growth (%), 2012-2016



- 10 20 30 40 50 60

2016

2015

2014

2013

2012

Thousands

9%

10%

9%

7%


Pan European / Global Players


OTAs in Europe, Gross Bookings (€B) and Share by

Region of Operations (%), 2012-2016

Note: 2014-2016 projected. Global booking sites include Expedia, Priceline, Odigeo, Orbitz and Travelocity.

Local sites have a presence in Europe only.


0% 20% 40% 60% 80% 100%

2016

2015

2014

2013

2012

Global Local

Gross

Bookings

35.7

39.9

43.9

47.6

51.1


The big get

bigger!


The move to mobile….


0%

5%

10%

15%

20%

25%

-

5

10

15

20

25

30

2012 2013 2014 2015 2016

Gross Bookings Share of Online Bookings

European Mobile Gross Bookings (€B) and Mobile

Share of Online Bookings (%), 2012-2016




0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

-

5

10

15

20

25

30

35

2012 2013 2014 2015 2016

Gross Bookings Share of Online Bookings

U.S. Mobile Gross Bookings ($B) and Mobile Share

of Online Bookings (%), 2012-2016




U.S. OTA and Supplier Mobile Bookings ($B), 2012-

2016



0

2

4

6

8

10

12

14

16

18

20

2012 2013 2014 2015 2016

Supplier Mobile OTA Mobile


European OTA and Supplier Mobile Bookings (€B),

2012-2016



0

2

4

6

8

10

12

14

16

18

2012 2013 2014 2015 2016

Supplier Mobile OTA Mobile

Consumer Behaviour


Discretionary Spending Priorities

Travel highest priority for discretionary spending in France,

Germany and U.K.

(Fourth highest in U.S. after Dining / Nightlife, Entertainment

/ Sports and Home improvements).

Percentage indicating highest priority for travel and tourism.

Question: When deciding how to spend your discretionary money (after covering everyday living expenses), please assign how much of a priority you place on

the following goods or services. Please assign each row a number from 0 to 10, 0 being no priority and 10 being top priority.

Base: Internet users: France (2014 N=2,229); Germany (2014 N=2,320); U.K. (2014 N=1,945); U.S. (2013 N=4,134)

Source: PhoCusWright’s European Consumer Travel Report Fifth Edition

36% 39% 39% 38%


Frequency of Leisure Trips, by Country

Question: In the last 12 months, how many TOTAL leisure trips did you take that included paid accommodations and/or air/rail travel?

Base: French travelers (2014 N=1,084); German travelers (2014 N=1,323); U.K. travelers (2014 N=1,054); U.S. travelers (2013 N=1850)

Source: PhoCusWright’s European Consumer Travel Report Fifth Edition, PhoCusWright’s U.S. Consumer Travel Report Sixth Edition

0%

10%

20%

30%

40%

50%

60%

70%

1-2 trips3-5 trips 6+ trips 1-2 trips3-5 trips 6+ trips 1-2 trips3-5 trips 6+ trips 1-2 trips3-5 trips 6+ trips

France Germany U.K. U.S.


0%

10%

20%

30%

40%

50%

60%

70%

3nightsor less

4-6nights

7-13nights

14+nights

3nightsor less

4-6nights

7-13nights

14+nights

3nightsor less

4-6nights

7-13nights

14+nights

3nightsor less

4-6nights

7-13nights

14+nights


Duration of Leisure Trips (Incidence of Trip Length)

Question: Of the N total leisure trips you took in the past year, how many were:

Base: French travelers (2011 N=896, 2012 N=878, 2013 N=1,028, 2014 N=1,084); German travelers (2011 N=915, 2012 N=892, 2013 N=1,036, 2014 N=1,323);

U.K. travelers (2011 N=810, 2012 N=844, 2013 N=997, 2014 N=1,054)

Source: PhoCusWright’s European Consumer Travel Report Fifth Edition. PhoCusWright’s U.S. Consumer Travel Report Sixth Edition


Reasons for Not Traveling

Question: Which of the following reasons describes why you did not purchase holiday travel (lodging, airline tickets or rail tickets) in the past 12 months?

Select all that apply.

Base: French non-travelers (N=801); German non-travelers (N=610); U.K. non-travelers (N=508); U.S. (2013 N=4,134)

Source: PhoCusWright’s European Consumer Travel Report Fifth Edition and PhoCusWright’s U.S. Consumer Travel Report Sixth Edition

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Financial considerations/travel is too expensive

I went to places where I could stay withfriends/family

No time to travel

No desire to travel

Personal obligations/a need to remain close tohome

Lack of appealing travel destinations


France Market Insights


France: Travel Patterns

Base: French travelers (2014 N=1,084)


Lodging and

transportation

Lodging only

Annual Spend Trip Frequency

€3,007

€1,109

3.1

2.0


0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Midscale hotel

Residential home offriends/family

Home, cottage, villa ( rented)

Budget hotel

Bed & breakfast

Upscale hotel

France: Usage of Lodging Types(Top 6)

Question: What type of lodging did you use in the past year when traveling for leisure? Select all that apply.

Base: French travelers (2014 N=1,084)



France: Travel Product Consumption (Incidence Among Travelers)

Question: Which of the following travel components, if any, did you book for your N leisure trips taken in the past year? Select all that apply.

Base: French travelers (2011 N=896, 2012 N=878, 2013 N=1,028, 2014 N=1,084)


0%

5%

10%

15%

20%

25%

30%

Destinationactivities

Car rental Custom holidaypackage

Pre-packagedholiday

2012 2013 2014


France: Motivation to Selected Destination (Last Trip, Top 6)

Question: What motivated you to take this trip? Select all that apply.

Base: Respondents that selected destinations independently: French travelers (N=707)


0% 10% 20% 30% 40% 50% 60%

Celebration of occasion (i.e., honeymoon)

To attend specific event (i.e., concert)

Set holiday time off from work/school

Available holiday time from work

Desire to go away w/ friends/family

Desire to "take a break"

Within Europe

Domestic


France: Influences on Destination Selection (Within Europe, Last Trip, Top 7)

Question: What influenced you to select your specific destination(s) for this particular trip? Select all that apply.

Base: Respondents that selected destinations independently: French travelers (N=707)


0% 20% 40% 60%

Fit with travel dates

Recommendation by friends/family

Price of airline ticket

Cultural attractions (i.e., museums)

Price of hotel/lodging

Climate

Personal wish to visit destination


France: Information Sources Used for Destination Selection (Last Trip, Top 5)

Question: What sources of information did you use to help you select the destination(s) for this trip? Select all that apply.

Base: Travelers who have selected a destination independently; French travelers (2011 N=607, 2012 N=583, 2013 N=676, 2014 N=707)


0%

10%

20%

30%

40%

50%

60%

70%

80%

Websites Mobile device Friends/family Information in printedtravel guidebooks

Printedpublications/brochures

2012 2013 2014


France: Websites Used for Destination Selection (Last Trip, Top 5)

Question: What type(s) of websites did you use? Select all that apply.

*Historical data not available due to a change in methodology.

Base: French travelers (N=896, 2012 N=878, 2013 N=1,028, 2014 N=1,084)


0%

10%

20%

30%

40%

50%

60%

General searchengines

Online travelagency websites

Traveler reviewwebsites

Travel providerwebsites

Travel searchengines*

2012 2013 2014


France: Websites Used in Shopping Phase(Last Trip, Top 5)

Question: What type(s) of websites do you typically use when comparing and choosing leisure travel products? Select all that apply.


Base: French travelers (2012 N=878, 2013 N=1,028, 2014 N=1,084)


0%

10%

20%

30%

40%

50%

60%






2012 2013 2014


France: General Travel Booking Channels

Question: How did you book your N leisure trips in the past 12 months? Select one. Offline refers to booking via telephone or in person; online refers to booking via the Internet on a computer or mobile device.

Base: French travelers (2012 N=878, 2013 N=1,028, 2014 N=1,084)


0%

5%

10%

15%

20%

25%

30%

35%

40%

Alwaysoffline

Usuallyoffline

Both onlineand offline

Usuallyonline

Alwaysonline

Unsure

2012 2013 2014


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Using a travelprovider website

Using an onlinetravel agency orrental website

Using a travelsearch engine

Calling travelproviders

Calling/visiting aretail travel agent

2012 2013 2014

France: Typical Purchase Methods for Lodging

(Top 5)

Question: Please indicate which method you typically use to book each type of travel component. Select one response per row. (Hotel, motel or other paid

accommodations)

Base: Travelers who booked lodging (separately, not as part of a package): French travelers (2012 N=571 2013 N=675, 2014 N=630)



French Travel Market (€M) and Online Growth

Rates, 2012-2016


0 10,000 20,000 30,000 40,000 50,000

2016

2015

2014

2013

2012

Supplier-Direct Online OTA Other

Total

€43.1

€42.9

Online Growth

7%

9%

7%

6%

€44.7

€43.1

€43.5


Expedia/ Hotels.com

Priceline/ Booking

Odigeo

Orbitz/ Ebookers

Karavel/ Promovacances

VoyagesPrives

Others

OTAs in the French Market, Estimated Market Share 2013


German Market Insights


Germany: Travel Patterns

Base: German travelers (2014 N=1,323)


Lodging and

transportation

Lodging only


€3,583

€1,458

2.9

2.1


0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Upscale hotel/resort (four-star)

Rented home, cottage, villa or flat

Budget hotel/motel

Midscale hotel/resort (three-star)

All-inclusive resort

Residential home of friends/family

Germany: Usage of Lodging Types(Top 6)


Base: German travelers (2014 N=1,323)



Germany: Travel Product Consumption (Incidence Among Travelers)


Base: German travelers (2011 N=915, 2012 N=892, 2013 N=1,036, 2014 N=1,323)


0%

5%

10%

15%

20%

25%

30%

35%

40%



Pre-packagedholiday

2012 2013 2014


Germany: Motivation to Selected Destination (Last Trip, Top 5)


Base: Respondents that selected destinations independently: German travelers (N=934)


0% 10% 20% 30% 40% 50% 60% 70%

To attend specific event (i.e., concert)



Desire to spend time away with friends/family


Within Europe

Domestic


Germany: Influences on Destination Selection (Within Europe, Last Trip, Top 5)


Base: Respondents that selected destinations independently: German travelers (N=936)


0% 20% 40% 60% 80%

Prior experience (previous trip there)

Cultural attractions (i.e., museums)


Climate

Personal wish to visit destination


0%

10%

20%

30%

40%

50%

60%

70%

Websites Personalrecommendations

Printed travelguidebooks

Printedpublications,

articles

Trravelprofessionals

2012 2013 2014

Germany: Information Sources Used for Destination

Selection (Last Trip, Top 5)


Base: Travelers who have selected a destination independently; German travelers (2012 N=665, 2013 N=788, 2014 N=936)



Germany: Websites Used for Destination Selection (Last Trip, Top 5)



Base: German travelers (2012 N=892, 2013 N=1,036, 2014 N=1,323)


0%

10%

20%

30%

40%

50%

60%


OTAs Traveler reviewwebsites



2012 2013 2014


Germany: Websites Used in Shopping Phase(Top 5)





0%

10%

20%

30%

40%

50%

60%

70%


OTAS Traveler reviewwebsites



2012 2013 2014


Germany: General Travel Booking Channels




0%

5%

10%

15%

20%

25%

30%

35%

40%

Alwaysoffline

Usuallyoffline

Both onlineand offline

Usuallyonline

Alwaysonline

Unsure

2012 2013 2014


Germany: Typical Purchase Methods for Lodging


accommodations)

Base: Travelers who booked lodging (separately, not as part of a package): German travelers (2012 N=513, 2013 N=642, 2014 N=808))


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%






2012 2013 2014


German Travel Market (€M) and Online Growth

Rates, 2012-2016


0 20,000 40,000 60,000 80,000

2016

2015

2014

2013

2012


Total

€54.9

€56.3

Online Growth

12%

10%

10%

9%

€59.0

€55.3

€57.5


Expedia/ Hotels.com

Priceline/ Booking

Odigeo

Orbitz/ Ebookers

HRS / hotel.de

Unister

OTAs in the German Market, Estimated Market Share 2013


U.K. Market Insights


U.K.: Travel Patterns

Base: U.K.travelers (2014 N=1,054))


Lodging and

transportation

Lodging only


€3,793

€1,070

3.7

2.5


0% 10% 20% 30% 40%

Rented home, cottage, villa

Midscale hotel


Upscale hotel/resort

Bed & breakfast

Budget hotel

U.K.: Usage of Lodging Types(Top 6)


Base: U.K. travelers (2014 N=1,054)



U.K.: Travel Product Consumption (Incidence Among Travelers, Top 5)


Base: U.K. travelers (2011 N=810, 2012 N=844, 2013 N=997, 2014 N=1,054)


0%

5%

10%

15%

20%

25%

30%



Pre-packagedholiday or group

tour

2012 2013 2014


U.K.: Motivation to Selected Destination (Last Trip, Top 5)


Base: Respondents that selected destinations independently: U.K. travelers (N=779)


0% 10% 20% 30% 40% 50% 60% 70%





Desire to get "take a break"

Within Europe

Domestic


U.K: Influences on Destination Selection (Within Europe, Last Trip, Top 5)


Base: Respondents that selected destinations independently: U.K. travelers (N=779)


0% 10% 20% 30% 40% 50%

Prior experience

Cultural attractions


Climate

Personal wish to visit the destination


U.K.: Information Sources Used for Destination Selection (Last Trip, Top 5)


Base: Travelers who have selected a destination independently; U.K. travelers 2012 N=603, 2013 N=687, 2014 N=779)


0%

10%

20%

30%

40%

50%

60%

70%

80%

Websites Online marketing Personalrecommendations



articles

2012 2013 2014


U.K.: Websites Used for Destination Selection (Last Trip, Top 5)



Base: U.K. travelers (2012 N=844, 2013 N=997, 2014 N=1,054)


0%

10%

20%

30%

40%

50%

60%





2012 2013 2014


U.K.: Websites Used in Shopping Phase(Top 5)





0%

10%

20%

30%

40%

50%

60%






2012 2013 2014


U.K.: General Travel Booking Channels




0%

5%

10%

15%

20%

25%

30%

35%

40%

Always offline Usually offline Both online andoffline

Usually online Always online

2012 2013 2014


U.K.: Typical Purchase Methods for Lodging


accommodations)

Base: Travelers who booked lodging (separately, not as part of a package): U.K. travelers (2012 N=557, 2013 N=705, 2014 N=710))


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%






2012 2013 2014


U.K. Travel Market (€M) and Online Growth Rates,

2012-2016


0 10,000 20,000 30,000 40,000 50,000 60,000

2016

2015

2014

2013

2012


Total

€48.5

€52.1

Online Growth

3%

6%

6%

8%

€56.5

€48.9

€54.35


Expedia/ Hotels.com

Priceline/ Booking

Odigeo

Orbitz/ Ebookers

Travel Republic

On the Beach

OTAs in the U.K. Market, Estimated Market Share 2013

Source: Phocuswright’s European Online Travel Overview Tenth Edition (

U.S. Market Insights



Base: U.S. travelers (2014 N=1,850)

Source: PhoCusWright’s U.S. Consumer Travel Report Sixth Edition

0% 10% 20% 30% 40%

Midscale hotel


Upscale hotel/resort

Budget hote

Rented home, cottage, or villa

Bed & breakfast

U.S.: Usage of Lodging Types(Top 6)


U.S.: Travel Product Consumption (Incidence Among Travelers)


Base: U.S. travelers (2010 N=2,529, 2011 N=2,036, 2012 N=2520, 2013 N=1,850) Source: PhoCusWright’s U.S. Consumer Travel Report Sixth Edition

0%

5%

10%

15%

20%

25%

30%

35%

40%



Pre-packagedholiday or group

tour

2011 2012 2013


U.S.: Motivation to Selected Destination (Last Trip, Top 5)


Base: Respondents that selected destinations independently: U.S. travelers (N=1,079)


0% 10% 20% 30% 40% 50% 60% 70%


Desire to see natural/cultural attractions





0%

10%

20%

30%

40%

50%

60%

70%

Websites Online marketing Personalrecommendations



articles orbrochures

2011 2012 2013

U.S.: Information Sources Used for Destination Selection (Last Trip, Top 5)


Base: Travelers who have selected a destination independently; U.S. travelers 2011 N=1,202, 2012 N=1,434, 2013 N=1,079)



U.S.: Websites Used for Destination Selection (Last Trip, Top 5)



Base: U.S.travelers (2011 N=1,202, 2012 N=1,434 2013 N=1,079)

Source: PhoCusWright’s U.S.Consumer Travel Report Fifth Edition

0%

10%

20%

30%

40%

50%

60%





2011 2012 2013


U.S.: Websites Used in Shopping Phase(Top 5)



Base: U.S. travelers (2011 N=1,587, 2012 N=2,041, 2013 N=1,485)


0%

10%

20%

30%

40%

50%

60%

70%





2012 2013 2014


U.S.: General Travel Booking Channels


Base: U.S. travelers (2011 N=2.36, 2012 N=2,520, 2013 N=1,850)


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Always offline Usually offline Both online andoffline

Usually online Always online

2012 2013 2014


U.S.: Typical Purchase Methods for Lodging


accommodations)

Base: Travelers who booked lodging (separately, not as part of a package): U.S. travelers (2011 N=1,687, 2012 N=1,997, 2013 N=1,716))


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%






2011 212 2013


U.S. Travel Market ($B) and Online Growth

Rates, 2012-2017

Source: Phocuswright’s U.S. Online Travel Overview Fourteenth Edition


Expedia/ Hotels.com

Priceline/ Booking

Orbitz/ Ebookers

Travelocity

CheapOair

Others

OTAs in the U.S. Market, Estimated Market Share 2013

Source: Phocuswright’s U.S. Online Travel Overview Fourteenth Edition

Conclusion

For more information about Phocuswright, click here:

phocuswright.com

10% OFFVIP Code: FAILTE-2015

online travel market - failte ireland€¦ · question: what sources of information did you use to...

Documents