The e-volution Of Travel And

Tourism Marketing

The e-volution Of Travel And

Tourism MarketingYesawich, Pepperdine, Brown & Russell

WTTC Conference

May 15, 2003

The Tragic Events Of 911The War In Iraq

SARS

The Tragic Events Of 911The War In Iraq

SARS

Which Is Likely To Have The Greatest Impact On Global Travel And Tourism?

Which Is Likely To Have The Greatest Impact On Global Travel And Tourism?

19961996

20012001

Active Internet Users(In MM, Top Ten Travel Sites)

Active Internet Users(In MM, Top Ten Travel Sites)

47

45

5150

5354 54

40

42

44

46

48

50

52

54

JAN '02 FEB '02 MAR '02 APR '02 MAY '02 JUNE '02 JULY '02

Source: NetRatings, 2002Source: NetRatings, 2002

Strategic ControlStrategic Control

Agree: The single most important change created by the Internet is giving consumers

like me greater control.

Agree: The single most important change created by the Internet is giving consumers

like me greater control.

AGREE60%

Internet/Online Usage(To Plan Some Aspect Of Travel)

Internet/Online Usage(To Plan Some Aspect Of Travel)

55%

65%

53%57%

0%

10%

20%

30%

40%

50%

60%

70%

BUSINESS TRAVELERS PLEASURE TRAVELERS

20022003

Sources Used When Planning A Leisure Trip

Sources Used When Planning A Leisure Trip

10%

40%

16%

34%

Travel agentonly

Internet only

Travel agentand Internet

Neither travelagent norInternet

(Leisure Travelers)

Shopping BehaviorShopping Behavior

29%20%

33%22%

38%58%

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

Travel Agents

Suppliers

Internet

I GET THE BEST PRICES ON TRAVEL SERVICES FROM

20032002

Internet Users Per 100 Population

Internet Users Per 100 Population

46.5

48.4

48.4

50.5

50.9

53.0

53.8

54.0

55.2

57.3

60.8

0 10 20 30 40 50 60 70

Denmark

Canada

New Zealand

Norway

Finland

Netherlands

United States

Singapore

Korea

Sweden

Iceland

Source: International Telecommunications Commission, 2002

Internet Access From HomeInternet Access From Home

45%

54%

54%

56%

63%

68%

70%

72%

73%

79%

85%

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

Brazil

France

Spain

Italy

Germany

UK

Hong Kong

Australia

Netherlands

U.S.

Sweden

Source: Nielsen/NetRatings Global Internet Trends Q4 2002

High-Speed Internet Users Per

100 Population

High-Speed Internet Users Per

100 Population

6.5

6.5

6.6

7.7

8.4

8.6

8.6

9.4

11.5

14.6

21.3

0 5 10 15 20 25

United States

Netherlands

Austria

Sweden

Belgium

Denmark

Iceland

Taiwan

Canada

Hong Kong

Korea

Source: International Telecommunications Commission, 2002

Strategic ControlStrategic Control

• Consumers want to participate in the creation of new options– Turn both existing and new

brands into their own– Personalize products and services

• Consumers want to participate in the creation of new options– Turn both existing and new

brands into their own– Personalize products and services

Strategic ControlStrategic Control

• Want to control the transaction– Through access to comparative

pricing

• Want to control the transaction– Through access to comparative

pricing

Strategic ControlStrategic Control• In the travel category

– More looking than booking– Low conversion rates

• Control of transactions– Shopping “BOTS”– Comparative shopping sites– Auction sites

• In the travel category– More looking than booking– Low conversion rates

• Control of transactions– Shopping “BOTS”– Comparative shopping sites– Auction sites

Being able to check the lowest rates for airfare, hotels and car rentals 90%

92%

Destination maps illustrating area activities, dining, shops, attractions 74

79Photos of the area, hotels 69 71Virtual tours of area/lodging 58 60

Being able to check the lowest rates for airfare, hotels and car rentals 90%

92%

Destination maps illustrating area activities, dining, shops, attractions 74

79Photos of the area, hotels 69 71Virtual tours of area/lodging 58 60

Travel Web Site FeaturesTravel Web Site Features20032003Extremely/Very

Important:Extremely/Very Important:

20022002

PRICE LOYALTY:The New Consumer

Mandate

PRICE LOYALTY:The New Consumer

Mandate