travel cruise consumers: how online research affects purchase

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Travel Cruise Consumers: How Online Research Affects PurchaseGoogle Compete

U.S., September 2010

Google Confidential and Proprietary 2

Background and Objectives

Background

• Online research influences both online and offline bookings. However, there remain challenges in quantifying the role of the online channel – whether via search, display, or non-advertising content –in driving bookings.

Objectives

• Assess the online and offline resources shoppers use when shopping for and booking travel as well as the relative importance of different resources

• Quantify the impact online research has on consumer purchase (both online and offline)

• Analyze differences between bookers who purchase online and bookers who purchase offline

Google Confidential and Proprietary

Methodology

Targeting and Screening

• A survey was launched to Compete panelists who were noted to be researching cruises online between December 2009 and April 2010

• Surveys were fielded to 617 Compete panelists in April/May 2010 targeting consumers who completed and qualified for the survey under the following requirements:

– Respondents who indicated they had conducted online research for cruises within the past twelve months OR Respondents who indicated they had taken at least one cruise in the past five years

– Respondents indicated they researched or cruised for personal (non-business) travel

Significance Testing

• For 2-variable significance testing, two asterisks (**) indicates significance at the 95% level and one asterisk (*) indicates significance at the 90% level

• For multiple variable significance testing, uppercase letters indicate significance at the 95% level and lowercase letters indicate significance at the 90% level

• Base sizes under 30 were removed from the study and any base sizes between 30-50 marked as low sample

Searcher vs. Non-Searcher Segment Definition

• A “Searcher” is defined as a respondent who was search referred to a cruise supplier website or OTA cruise path within the 60 days prior to booking (based on observed online clickstream behavior and not self-reported)

3


Key Takeaways

• One quarter of all cruise shoppers indicated researching exclusively online

– Half of all cruise shoppers reported using friends, family and colleagues as an offline resource

• Half of cruise shoppers reported using search engines in their research

– 83% of cruise shoppers indicated that they researched on cruise operator websites

• Shoppers who were observed using a search engine during their research were more likely to book than shoppers who did not use a search engine

• Two-thirds of all cruise shoppers booked offline

– The majority of shoppers booked their cruise over the phone

• Online and TV advertisements were the most-likely to be recalled by shoppers

• The ability to find cruises easily online was the leading reason bookers chose to book with a specific website

– Finding the lowest prices was second, followed closely by the ability to view promotions and discounts offered by the website

• A third of all cruise shoppers indicated researching for 4 weeks or more

– Shoppers of family cruises were more apt to spend more time researching

• Cruise bookers demonstrated heavier cross-shopping activity in the fall months

55

Cruise Market Overview


1 in 4 Cruise Shoppers are Referred by Search

6

Aggregate Online Cruise Shoppers & % Search Referred to a Cruise Site(Volume of Cruise Shoppers & Share that were Search Referred to a Cruise Site, Jun 2009 – Jun 2010)

5M

5M5M 5M 5M 5M

5M

6M5M

6M

5M 5M 5M

26%

23% 24% 24%22%

25%24%

28% 28%

26% 26%

28% 27%

0%

5%

10%

15%

20%

25%

30%

0M

1M

2M

3M

4M

5M

6M

7M

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Cruise Shoppers Share of Cruise Shoppers Referred by Search

Source: Compete Clickstream Data, June 2009 – June 2010


Search Referred Cruise Bookers Was Mixed

7

Aggregate Online Cruise Bookers & % Search Referred to a Cruise Site(Volume of Cruise Bookers & Share that were Search Referred to a Cruise Site, Jun 2009 – Jun 2010)

111k 105k97k

75k 78k

53k60k

90k

122k

84k

68k 67k

96k

35%

39%

27%

23%

32%

24%23%

27%26%

29%31%

26%

20%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0k

20k

40k

60k

80k

100k

120k

140k


Cruise Bookers Share of Cruise Bookers Referred by Search



1 in 5 Cruise Shoppers are Referred by Google

8

Google’s Share of Search Referred Cruise Shoppers & Bookers(Share of Online Cruise Shoppers and Bookers, Jun 2009 – Jun 2010)

5M

5M5M 5M 5M 5M

5M

6M5M

6M

5M 5M 5M

20%

18% 18% 18%17%

19%

18%

21% 21%19% 19%

21%20%

0%

5%

10%

15%

20%

25%

0M

1M

2M

3M

4M

5M

6M

7M


Cruise Shoppers Share of Cruise Shoppers Referred by Google



Heavy Cross-Shopping in the Fall Months

9

Sites Visited by Online Cruise Bookers(Average Travel Sites Visited Among Cruise Bookers Within the Month of Booking, Jun 2009 – Jun 2010)

3128

32

2830

37

22

28

2325 26

22

27

0

5

10

15

20

25

30

35

40



1010

Booker Channel Usage and Preferences


46%

32%

26%

24%

17%

15%

11%

9%

8%

2%

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

Family, f riends, or colleagues

Informational brochures or catalogs

Travel agents

Magazines

800 or toll-f ree numbers

Travel groups

Books

Newspapers

TV

Radio

25% of Shoppers Research Exclusively Online

11

Offline Cruise Research Resources Used by Online Cruise Shoppers(Share of Online Cruise Shoppers, n=617)

S6. Thinking about the last cruise you researched, which of the following sources of information, if any, did you use in addition to the Internet? Please select all that apply.

Online cruise shoppers, n=617

25% used no offline sources

Source: Google/Compete Travel Cruise Consumers Study, Sept 2010


Half of Shoppers Report Search Engine Use

12

Online Cruise Research Resources Used by Online Cruise Shoppers(Share of Online Cruise Shoppers, n=617)

Q1. Specifically, which of the following online sources did you use to research this cruise? Please select all that apply.Online cruise shoppers, n=617

83%

57%

47%

32%

20%

18%

6%

4%

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

Cruise operator websites

Online travel agency websites

Search engines

Travel review websites

Travel-specif ic websites

Travel book websites

Social networking websites

Video sharing websites



50%

41%

29%

24%

13%

5%

4%

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

TV ad

Online ad

Magazine ad

Informational brochures or pamphlets

Newspaper ad

Radio ad

Billboard or outdoor ad

High Recall for Both TV and Online Ads

13

Advertising Recalled by Online Cruise Shoppers(Share of Online Cruise Shoppers, n=617)

Q3. In addition to all of the research that you did to learn about your most recently researched cruise, which of the following advertisements do you recall seeing or hearing, if any? Please select all that apply. Online cruise shoppers, n=617.

*Online ad includes the following:•Online website ad: 31%•Paid search engine listings: 16%•Online video ad: 14%

*

25% do not recall any advertisements



33%40%

23%

55%

55%

56%

12%5%

21%

0%

20%

40%

60%

80%

100%

Total (n=245) < $1000 / person (n=141) $1000+ / person (n=103)

In person

Over the phone

Online (excluding OTA)

**

**

Two-Thirds of Shoppers Book Offline

14

Channel Used to Book Cruise by Cost of Cruise Per Person(Share of Online Cruise Shoppers That Booked a Cruise, Excluding Online OTA Bookers, n=245)

Q5. How did you book this cruise? Please select one answer only. Online cruise shoppers who booked a cruise excluding Online OTA bookers, n=245, < $1000/person n=183, $1000+/person n=119. Significance testing does not include Total.

67% Booked Offline 60% Booked Offline 77% Booked Offline



49%

47%

46%

41%

38%

28%

24%

23%

19%

12%

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

It was easy to f ind cruises

Best prices

Good promotions and of fers

Able to research cruise amenities and features

Able to research activities at my cruise destination

Best selection

I was able to view videos about the cruise

Received rewards/loyalty points

Able to read reviews by other cruise goers

Able to book a package

Finding Cruise Trumps Price in Online Booking

15

Why Online Cruise Bookers Booked With Specific Site(Share of Online Cruise Shoppers That Booked a Cruise Online in Q5, n=140)

Q9. Which of the following describe why you booked this cruise on a/an [type of website]? Please select all that apply.Online cruise bookers, n=140.



31% 31% 31%

24% 25% 23%

25% 27%23%

20% 17%23%

0%

20%

40%

60%

80%

100%

Total (n=305) Couple (n=174) Family (n=130)

5 or more

2-4

1

0

Most Bookers Cruising Again With Same Line

16

Number of Past Cruises with Cruise Line Booked(Share of Online Cruise Shoppers That Booked a Cruise in Q4, n=305)

Q14. How many times have you cruised with [insert cruise line] in the past? Please type an exact whole number in the box below. Online cruise shoppers who already booked a cruise, Total n=305, Couples n=174, Families n=130. Significance testing did not include the “Total” segment.



53.2%

36.6%

30.7%

42.9%

16.1% 20.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Searchers (n=139) Non-Searchers (n=629)

Yes No, but plan to No, and do not plan to

**

**

Shoppers Using Search More Likely to Book

17

Searchers & Non-Searchers Who Already Booked a Cruise(Share of Total Respondents, n=768)

Q4. Did you book your most recently researched cruise? Please select one answer only.Total respondents, n=768; Searchers n=139, Non-Searchers n=629.



45%

57%

45%

61%

0%

20%

40%

60%

80%

Income < $100K (n=375) Income $100K+ (n=243) < $1000 / person (n=403) $1000+ / person (n=195)

*

**

Propensity to Book Rises with Cost and Income

18

Percentage Who Already Booked a Cruise by Income and Cost per Cruise(Share of Online Cruise Shoppers, n=617)

Q4. Did you book your most recently researched cruise? Please select one answer only.Online cruise shoppers, n=617; Income < $100K n=375, Income $100K+ n=243, < $1000/person n=403, $1000+ / person n=195.



16% 13% 17%

22%17%

24%

19% 30%15%

15%16%

14%

29%24%

30%

0%

20%

40%

60%

80%

100%

Total (n=305) Searchers (n=74) Non-Searchers (n=230)

4 weeks or more

3 weeks to less than 4 weeks


1 week to less than 2 weeks

Less than 1 week

*

Nearly 1/3 Bookers Do 4+ Weeks of Research

19

Time Spent Researching Cruise Before Booking(Share of Online Cruise Shoppers That Booked a Cruise in Q4, n=305)

Q24. How much time passed from when you first started researching for a cruise online to when you actually booked it? Please select one answer only.Online cruise shoppers who booked a cruise, n=305; Searchers n=74, Non-Searchers n=230. Significance testing did not include the “Total” segment.



16%23%

7%

22%

24%

19%

19%

19%

18%

15%

10%

21%

29%24%

35%

0%

20%

40%

60%

80%

100%

Total (n=305) Couple (n=174) Family (n=130)

4 weeks or more



1 week to less than 2 weeks

Less than 1 week

*

**

Families Spend More Time Researching

20

Time Spent Researching Cruise Before Booking(Share of Online Cruise Shoppers That Booked a Cruise in Q4, n=305)

Q24. How much time passed from when you first started researching for a cruise online to when you actually booked it? Please select one answer only.Online cruise shoppers who already booked a cruise, Total n=305, Couples n=174, Families n=130. Significance testing did not include the “Total” segment.



38%

27%

20%

15%

10%

4%

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

I did not book a cruise package

Airline tickets

I am not planning to book a cruise package

Hotel stay

I am planning to book a cruise package, but not surewhat else I will book as part of my cruise package

Car rental

Almost 4 in 10 Cruisers Do Not Book Cruise Packages

21

Cruise Cross-Bookings in Anticipation of Travel (Share of Online Cruise Shoppers, n=617)

Q25 - Which of the following, if any, did you book as part of your cruise package?/Which of the following, if any, are you planning to book as part of your cruise package? Please select all that apply. Online cruise shoppers, n=617.



Summary of Takeaways

• One quarter of all cruise shoppers indicated researching exclusively online

– Half of all cruise shoppers reported using friends, family and colleagues as an offline resource

• Half of cruise shoppers reported using search engines in their research

– 83% of cruise shoppers indicated that they researched on cruise operator websites

• Shoppers who were observed using a search engine during their research were more likely to book than shoppers who did not use a search engine

• Two-thirds of all cruise shoppers booked offline

– The majority of shoppers booked their cruise over the phone

• Online and TV advertisements were the most-likely to be recalled by shoppers

• The ability to find cruises easily online was the leading reason bookers chose to book with a specific website

– Finding the lowest prices was second, followed closely by the ability to view promotions and discounts offered by the website

• A third of all cruise shoppers indicated researching for 4 weeks or more

– Shoppers of family cruises were more apt to spend more time researching

• Cruise bookers demonstrated heavier cross-shopping activity in the fall months

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