word count: 8038 ibm smarter planet

MBA Collective Enterprise

Project

Gautham Brahmamudi

Bahar Ghods-Mirhaidari

Szu Hua Huang

Kingping Leon

Zabir Hussain Macci

Amit Pandey

Jaime Resendiz

Nishdeep Singh

IBM Smarter Planet

2012 Word Count: 8038

University of Hertfordshire and Texas Tech MBA Collective Enterprise Project 1

Table of Contents

Executive Summary......................................................................................................................... 3

Chapter 1: The Smart Organization ............................................................................................. 4

IBM Smarter Planet: Background .................................................................................................. 4

The Big Picture: Problem Statement .............................................................................................. 5

Chapter 2: The Smart Project ....................................................................................................... 6

Brief .............................................................................................................................................. 6

Aims .............................................................................................................................................. 6

Objectives...................................................................................................................................... 6

Deliverables .................................................................................................................................. 7

Parameters .................................................................................................................................... 8

Project Plan and Methodology: ..................................................................................................... 9

Chapter 3: Secondary Research - UK and US markets ............................................................ 11

Market Dynamics ........................................................................................................................ 11

Airlines .................................................................................................................................... 13

Hotels ...................................................................................................................................... 14

Market Challenges – The US.................................................................................................... 14

Market Challenges – The UK ................................................................................................... 16

Additional Travel Factors ........................................................................................................ 20

Travel Agencies ........................................................................................................................... 22

Five Competitive Forces of Travel Agencies............................................................................. 22

SWOT Analysis for Travel Agents ............................................................................................ 24

Understanding Generation-Y ....................................................................................................... 25

Chapter 4: Exploratory Research ............................................................................................... 26

Interpersonal influences and the internet: .................................................................................... 29

Focus Groups & Personal Interviews – US and UK ..................................................................... 30

Travel Agent Interviews ............................................................................................................... 32

Chapter 5: Research Findings .................................................................................................... 36

Consumer Attitude & Behavior Model ......................................................................................... 36

Rating Scale used for cluster surveys: .......................................................................................... 38

Clusters survey outcome – US ...................................................................................................... 39

Flights ......................................................................................................................................... 39

Flights + Hotels .......................................................................................................................... 40

Package Deal .............................................................................................................................. 41

Clusters survey outcome – UK ..................................................................................................... 42

Supplier Response to Industry ...................................................................................................... 46

Current Supplier Trends .......................................................................................................... 46

Supplier Response.................................................................................................................... 47

Opportunities .............................................................................................................................. 47

Chapter 6: Data Analysis for Social Media Influence .............................................................. 49

Data Structure and Description Finding - US .............................................................................. 49

Factor analysis of attributes in purchasing consideration: ........................................................... 51

Regression Results of Influence of Social Media - US ................................................................... 52


Solution Implementation: ............................................................................................................. 58

Chapter 7: Conclusion ................................................................................................................ 60

References: .................................................................................................................................... 63

Appendix ........................................................................................................................................ 69

Importance of Content for Generation-Y .................................................................................. 69

Consumer pre-purchase decision making path ......................................................................... 70

Survey ......................................................................................................................................... 70

Questionnaire – Flights ........................................................................................................... 71

Questionnaire – Flights and Hotel ........................................................................................... 72

Questionnaire - Vacation Packages (Flight+Hotel+Activity) ................................................... 74

Focus Group Transcription ...................................................................................................... 77

Personal Interview Summaries ................................................................................................. 83


Executive Summary

IBM has commissioned a study to explore the trends shaping the travel preferences of

Generation-Y and their purchasing attitudes and behaviour towards holidays for both the UK

and US markets. The report focuses on vacation travel preferences and behaviors of

Generation-Y through surveys, focus groups and personal interviews and presents insights

and findings to IBM. The report also looks at potential new revenue opportunities and drivers

of profitability, new models driving future growth and changing traveler tastes and

preferences.

The report examines a number of different issues, including:

• Consumer attitudes and behaviours in both the UK and US towards purchasing holidays.

• Current and future trends within the airline and travel agent segment as they emerge from

the recent global recession.

• Analysis of how brick and mortar travel agents can develop new revenue sources in the

future.

• Comparisons between the two nations and recommendations for IBM.

A key input to this report is to develop an information gathering and purchasing model which

shows how Generation-Y consumers (18-35 years old) access information, recommendations,

offers and ultimately purchase a chosen product/service category i.e. 'Vacation/Holiday'.

The central thread throughout this report is an investigation into the options available to

agents as they seek growth and profitability, whilst also identifying consumer attitudes and

behaviours towards holidays. While the travel sector has experienced significant growth in

the last decade, profitability remains stubbornly elusive for many travel agents and

understanding consumers is therefore of upmost importance.

This report explores some of the scenarios that shed light on where the industry may find new

revenue opportunities. It focuses on issues such as greater collaboration across the industry,

shifting business models, the opportunities presented by the ‘total travel experience’ and

changing demographics. Consumers purchasing behaviour and charactersitics are identified,

with profiling groups, in both the US and UK markets for comparisons and identification,

thereby offering insight into strategic recomendations to IBM.


Chapter 1: The Smart Organization

IBM Smarter Planet: Background

In conjunction with IBM’s Smarter Retail concept, the University of Hertfordshire and the

Texas Tech MBA teams have explored elements of the holiday retail environment as it is

evolving in both the UK and the US markets. As a result of several changes in market

demands the holiday retail environment has experienced significant change. For example, in

the past traditional “brick and mortar,” referring to the physical presence of the holiday

providers were the main channel for consumers to purchase holidays. Whereas today,

resulting from the internet revolution, several alternative options have been opened up to for

the consumer.

Thus, within the holiday market environment the purchasing behaviour of consumers is

changing in accordance to the change in technology. Glazer (1999) suggests that ‘smart’

markets are dynamic, turbulent, and information rich and are based on new kinds of products,

competitors, and customers. Correspondingly, Krishnamurthy (2006) argues this is necessary

to build a sustainable competitive advantage in e-marketing. As a result of changes in the

market environment for holidays, appropriate responses to these changes are necessary.

According to Willcocks and Plant, (2001) the most successful B2C companies at adapting

“bricks to clicks” have been companies that have the ability to integrate marketing, customer

service, and use of information and technology in order to deliver a profitable long term

strategy.

Consequently, the UK and US teams have collaborated together in order to examine the

similarities and differences between the two markets in order to develop an information

gathering and purchasing model which shows how the new generation access information,

recommendations, offers and ultimately purchases holidays. Strategic recommendations are

made in light of this so that IBM can benefit from greater understanding into the consumer

markets and how to drive profitability with their travel agent clients.


The Big Picture: Problem Statement[Market challenges should be included here]

The holiday industry has changed dramatically since the advent of online purchasing.

Previously, consumers would have had direct contact with travel agents as their main point of

contact for purchasing a holiday. The internet changed this dramatically, with more and more

people buying online and with greater reach (Wells and Gobeli, 2003).

Figure 1: The 'Old' Picture

With the developing technology, and increasing number of consumers shopping online, this

model has changed, depicted in Figure 2 below. The online space is now a primary point of

consumer information search and purchase (Kotler and Keller, 2009).

Figure 2:The New Picture


This purpose of this project, and the problem it is aiming to research in order to offer insight

and recommendations, is how travel agents can better compete within this changing

environment where consumers are increasingly making purchases online with online

providers. The online space can be used effectively for an organization to achieve to a

sustainable competitive advantage (Krishnamurthy, 2006).

This project is concerned with identifying how travel agents would offer a business model

that caters to the demands and behavioral attributes of the Generation Y population, based on

how these consumers make decisions that ultimately determine what they purchase.

Chapter 2: The Smart Project

Brief

University of Hertfordshire MBA team and Texas Tech MBA team to work together and

model the information search, purchase and decision making process of Generation Y

consumers with regards to holiday purchases in the UK and US markets.

Aims

University of Hertfordshire and Texas Tech MBA teams to explore, identify, analyse and

model the Generation Y retail environment evolving in the UK and US markets for holiday

purchases and offers recommendations where opportunities are identified.

Objectives

The project objectives are as follows in accordance with a specified target market; Generation

Y (consumers aged 18 to 35). For each three of the objectives there are specific factors

embedded for consideration, exploration and identification:

1. Formulate a model that maps consumer attitude and behaviour towards holiday

purchases for flights, flights and hotel, and package holidays.

The model must highlight why and how Generation Y consumers are accessing information,

recommendations and product offers. Build consumer profiles based on primary data

gatherings and research.


2. From primary data gathering based on quota sampling; conduct a

cluster/profiling analysis of these consumers towards these three services.

Three questionnaires will be used to investigate this: one designed just for flights, one

designed just for flights and hotel (booked simultaneously) and one designed for package

holidays (flight, hotel, plus food or activities).

3. Identify how consumers are making their decisions.

Address and evaluate how consumers are making choices and ultimately making a purchase

decision.

4. Identify how suppliers are changing their value chain in response to changing

demands within the industry.

In identifying how suppliers are changing their value chain, to also consider the impact (if

any) of branding and branding attributes.

5. Determine what current holiday package providers are offering, how firms

within the industry are competing and their tactics. Identify any potential

opportunities arising out of this.

In determining opportunities, client needs that are not being met and/or satisfied must be

considered.

6. Understand consumer interaction with intermediaries as part of their decision

making process.

Identify and understand how consumers are influenced by and to what extent by interpersonal

relationships.

Deliverables

The project seeks to add value by providing insight into consumer attitudes that affect

changing consumer behaviour towards holiday purchases with regards to flights, flight and

hotel, and package holidays. This therefore offers IBM information on the Generation Y


target market. This information can be used to create smarter solutions for their retail clients

(travel agents) to provide the purchase experience the target market is most looking for.

Project will map the start to finish consumer journey from decision making to buying of

holiday packages, thereby providing IBM with knowledge of how their clients business

model has been or can be affected within this market.

Where potential opportunities are identified as a result of gaps in the markets, trategic

recommendations via possible solutions will be made according to consumer profiles

identified within the segment target.

They key value addition will be focused on thoroughly examining and analysing Generation

Y behavioural attributes towards holiday purchases, and understand and identify the

differences between the UK and US markets.

Parameters

The following factors bind project scope and research base:

Who? Population aged 18 to 35 years old.

Where? The UK team will cover UK market and the US team will cover the US market.

What? Three services: flight, flights and hotel and package holidays. Consumer attitudes

and behaviours towards each one.

Why? To offer IBM’s clients (travel agents) with better and smarter solutions to improve

their value chain, customer attraction and margins.


Project Plan and Methodology:

Initial secondary research and exploratory readings will be conducted in order to provide an

understanding of the organisational and environmental arena, as well as relevant academic

theory and literature.

Group discussions thereafter will enable a preliminary questionnaire to be produced as a

result of taking into consideration secondary data already available. This will highlight what

primary date to collect to add greatest value in order to obtain project objectives.

The preliminary questionnaire will pave the foundation for working on questions and topics

to raise in focus groups and interviews as well as finalising three formal questionnaires to

collect from 336 people in the UK and US. Interviews will take place as well as formal focus

group which will use collages as a tool for gathering information.

Qualitative research approach (eg interviews and focus groups) will enable to unveil

consumer attitude during the purchasing process. Quantitative research seeks to quantify

consumer attitude in the form of attitude scales. Brynman and Bell (2007) suggests

quantitative outcome may not correctly reflect people's 'actual' behaviour. Therefore,

qualitative research should aid to interpret people's behaviour in terms of norms, value and

cultures of the group in the question.

Berg (2004) states getting participants to produce collages allows insight to their respondent

perception map. The research empowers respondents to define issues from their individual

perspective. It allows knowledge transfer and information sharing through discussion. The

survey outcome is a very powerful stimuli for group discussion.

Data analysis will be both quantative using SPSS and excel as well as qualitative.

Collaboration between both MBA teams after data collection and analysis is crucial for

comparisons, conclusions and recommendations to be made. The following spread sheet

details the project plan set.


Activity Start Date Completion Date Occurance Dates Owner Assignee

Company research 1st Feb 8th Feb UK + US ALL

Exploratory readings 1st Feb 13th Feb UK + US ALL

Group discussions on readings 13th Feb 14th Feb UK ALL

Prelimanary Questionnaire start 13th Feb 16th Feb UK + US ALL

Ethics form completion 8th Feb 16th Feb UK BG

ETHICS FORM HAND IN NA NA 16th Feb UK BG

Call with US NA NA 17th Feb UK + US ALL

Prelimanary Questionnaire end 17th Feb 17th Feb UK BG

Prelimanary Questionnaire formatting 18th Feb 19th Feb UK NS

Questionnaire Testing 20th Feb 20th Feb UK ALL

PROBLEM DEFINITION HAND IN NA NA 24th Feb UK BG

Prelimanry Focus Groups 24th Feb 27th Feb UK ALL

Discussion about focus group findings 28th Feb 28th Feb UK ALL

Call with US NA NA 24th Feb UK+US ALL

Final Questionnaire write up 24th Feb 27th Feb UK BG

Final Questionnaire formatting 27th Feb 1st Mar UK AP

Final Focus Group/Interview questions write up 27th Feb 1st Mar UK KP

Briefing for data collection days and plan 1st Mar 1st Mar UK BG

Data collection - Survey 2nd Mar 14th Mar UK BG+NS

Call with US NA NA 9th March UK+US ALL

Focus Group 1 2nd Mar 14th Mar UK KP+AP

Focus Group 2 2nd Mar 14th Mar UK KP+AP

Discussion on data collection - mid way 8th Mar 8th Mar

12 Interviews 2nd Mar 14th Mar UK KP+AP

Discussion on data collection - complete 15th Mar 15th Mar

PROBLEM INVESTIGATION HAND IN NA NA 16th Mar UK BG

Call with US NA NA 16th Mar UK+US ALL

Data analysis - quantative 16th Mar 29th Mar UK ALL

Data analysis - qualatative 16th Mar 29th Mar UK ALL

Call with US - mid analysis NA NA 23rd Mar UK+US ALL

Call with US - complete analysis NA NA 30th Mar UK+US ALL

Comparisons 30th Mar 13th Apr UK+US ALL

Conclusions 30th Mar 13th Apr UK+US ALL

Recommendations 30th Mar 13th Apr UK+US ALL

Call with US NA NA 13th Apr UK+US ALL

PROBLEM SOLUTION HAND DEVELOPMENT HAND INNA NA 20th Apr UK BG

Poster preparation 14th Apr 20th Apr UK+US ALL

Poster finalisation 18th Feb 20th Apr UK+US ALL

Call with US NA NA 27th Apr UK+US ALL

Presentation preparation 14th Apr 28th Apr UK+US ALL

Presentation run through 20th Apr 28th Apr UK+US ALL

Presenstation finalisation 25th Apr 28th Apr UK+US ALL

PROBLEM IMPLEMENTATION HAND IN NA NA 27th Apr UK ALL

Call with US NA NA 11th May UK+US ALL

Draft of final report 29th Apr 7th May UK BG

Call with US NA NA 21st May UK+US ALL

Finalisation of report 21st May 25th May UK+US ALL

FINAL REPORT HAND IN NA NA 26th May UK BG


Chapter 3: Secondary Research - UK and US markets

Market Dynamics

According to Wiley & Sons (2007), market dynamics refer to the changing price signals

which result from the constant changes in both supply and demand of any specific product or

products. This section of the report will examine changes in the macro environment of the

holiday market which may signal price changes resulting from changes in supply and demand

of holidays.

Changes in technology have fundamentally impacted the market for holidays in both the US

and UK. Globally, the Internet is changing the way that people work, communicate, and shop

and travel. The technology market is a fast moving, complex and ever changing environment

which presents the need to continuously adapt to the latest technological developments. The

online retail space for the holiday package industry is changing dramatically as a result of the

increased number of tech savvy consumers. For example, the emergence Web 2.0, social

networks and social media as well as mobile applications have allowed the internet to become

more interactive as well as accessible (Pendergast, 2011). The development of tools for social

media is playing a greater role for online search and booking sites, with examples including

SkyscannerFor, Facebook, TripAdvisor, Trip Friends as well as Google Travel. Furthermore,

over a quarter of the UK population now owns a smartphone and an increase of 26% of

mobile users have accessed internet services on their mobile phones (Mintel, 2011).

Changes in demographics have impacted the change in consumer purchasing behaviour

within the holiday market. The UK parliament (UK 2012) indicates that 10 million people in

the UK are currently over the age of 65 and predict that 5.5 million more elderly people will

be present in twenty years time. Thus, the estimated growth rate in the population is primarily

due to the ageing British population. As opposed to the older generation, who are typically

unfamiliar and uncomfortable with technology, the Y generation, as the first generation to be

born into the age of information, are seen as digital natives. Pendergast (2011) suggests that

the lifestyle of this generation is global in nature as the loss of boundaries refers to the

sharing of knowledge through the World Wide Web. McMahon and Pospil (2005) also

characterize the social setting of the Y generation as maintaining information connectedness,


having the ability to multitask, as well as having a focus on immediacy and subsequently

intolerable of delays.

Changes in the economic environment are also impacting the purchasing decision of holiday

consumers. For instance in the UK, unemployment rates are forecast to increase (Mintel

2011), which will have affect the disposable incomes of the population and thus fewer

purchases in the sector are expected as consumers begin to be more cautious of their

purchases.

The travel industry has seen an extreme recession followed by a slow crawl towards

recovery. There are essentially two types of travel one can look at: business and leisure. For

this particular research, we are focusing on leisure travel, both internationally and

domestically. In 2010, American residents spent over $526 billion on domestic and

international leisure travel (ustravel.org, 2011).

The following figure briefly sums up the economic implications the travel industry has for the

U.S.market.

Figure 3: Impact of US Travel Industry


Airlines

The airline industry has found itself on one of the most volatile industries around. Margins

are thin and during uncertain times, the leisure travel is the first thing the consumers let go of.

In the past twelve years, the only time years that have experienced a decline year over year

have been after the 2001 (September 11th

attacks) and 2008 (financial breakdown) uncertain

periods (transtats.bts.gov).

Table 1: Passenger Volume for Airlines in the past decade

Year DOMESTIC INTERNATIONAL TOTAL

2010 629,521,640 157,832,939 787,354,579

2011 637,479,080 163,663,361 801,142,441

2000 599,563,678 134,287,145 733,850,823

2001 559,618,055 122,907,077 682,525,132

2002 551,899,643 118,704,850 670,604,493

2003 583,293,766 117,569,855 700,863,621

2004 629,769,616 133,940,075 763,709,691

2005 657,261,487 143,588,422 800,849,909

2006 658,362,620 149,740,591 808,103,211

2007 679,185,450 156,250,990 835,436,440

2008 651,710,182 157,737,629 809,447,811

2009 618,067,255 149,571,971 767,639,226

2010 629,521,640 157,832,939 787,354,579

2011 637,479,080 163,663,361 801,142,441

Table 1 above shows a 1.75% increase in passenger volume from 2010 to 2011

(transtats.bts.gov, 2011). This figure uses both the domestic (637,479,080) and international

(163,663,361) passenger total from 2011.

However, one thing to note is that there is no differentiation between business to leisure

passengers in the figure above.


Hotels

Figure 4: Global Occupancy % Change, 2008-2010

Hotel occupancy has increased in 2010 compared to the previous years indicating an increase

in travel. Keeping up with the trend, the 2011 occupancy rose 4.4% and in the process

became the first year since 2008 that occupancy rates crossed 60% along with average daily

rates of more than $100. (STR, 2011)

Market Challenges – The US

1) Taxes are ending

The United States, along with the rest of the world, are struggling to come out of one of the

most devastating recessions in history. The financial collapse spurred many innovative plans

to boost the economy. This resulted in over $109 billion in incentives which directly and

indirectly affected the travel industry. Many small corporations were able to use airlines,

rental cars and hotels just to name a few services. The frequent use of these amenities kept

prices competitive and kept them profitable. But with those incentives ending in 2011, the

2012 travel season may seem affected since excess money will be even scarcer. “The

influential National Small Business Association (NSBA) lists 65 tax provisions that will

expire at the end of 2011.” How these 65 tax incentives ending in the United States is yet to

be seen.


2) Airline industry is struggling

Lowered margins have pushed the industries to become more competitive. These pressures

come from higher fuel cost and a much lower ability to travel in part due to the consumer.

An interesting fact is that airline sales have increased 6.5% year over year. However, the

airline industry operates at a 5% margin (Investopedia.com) The tight squeeze has forced

incredible disparities between ticket prices. So while some travelers gain an incredible deal,

others get spurned and might let that bad experience keep them from booking with frequency.

3) Lack of destination data

The “I need it now” mentality has been a growing trend over the past couple of days.

Twitter, Facebook and other social media sites have created an instantaneous connection

between consumers. Travelers see this type of instant information sharing and wonder why

they cannot also access the same type of information. In other words, data collection on the

most remote tourist locations has lacked greatly. Travel agencies combat this deficiency by

hiring travel bloggers and writers to write about destinations. “But with personalization

coming (increasing demands on data) and global websites wanting to give equal prominence

to all destinations (requiring content from everywhere, globally, within a short timeframe)

this can’t be serviced by just a few travel writers.”

It is not just the travel industry that looks to fill the high information demands from the

consumer. Google Maps is racing to meet information demand by adding actual photos on

their map. Now, not only do you get an image of Stonehenge, but also you see where it is

located in England.

4) Cyber theft / Insecurity

Although cyber theft does not affect whether a traveler takes a vacation or not, it does affect

how they go about booking. Cyber attacks into prestigious companies like CapitalOne,

Google and Facebook have travelers’ weary about typing in credit card and personal

information.

5) Unemployment

Although the travel and tourism employment have increased by 1.2 percent in the fourth

quarter of 2011 after increasing 1.7 percent in the third quarter,” the overall employment


numbers (8.2% U.S. Bureau of Labor Statistics) are still too high to experience a significant

increase in travel.

6) Travel spending

Real tourism has been on the rise over the past couple of quarters, but this does not mean that

the industry is out of harms way. Sure there has been a rebound, but only a slight one that

does not compensate for several negative quarters of excess of 10%.

7) Market Crowding

The travel industry has become crowded due to a combination of increased competition and

lowered margins. The travel industry has become noise simply because of high levels of

competition, infinite media outlets and other forms of marketing strategies that have

hampered the normal working of this industry.

Market Challenges – The UK

The travel and tourism industry delivers services to consumers that are traveling or staying

outside their home environment for not more than one consecutive year either for leisure,

business or other purposes (WTO, 1993). The types of tourism services are domestic,

inbound or outbound.

The UK abroad travel for 2010 remains low compared to 2009, which is a downturn

discontinuity as claimed by HPA (2012). The type of travel for UK residents consists of

holidays, visiting friends and family, for business and other (HPA, 2011). Of which, 65.5%

of visits abroad by UK residents were for a holidays; 19.53% were visiting friends and

relatives (VFR); 11.97% travelled for business and 2.97% travelled for other reasons in the

year of 2009. Statistics indicate that VFR remains the primary driving factor for UK residents

to travel abroad.

For research purposes, this report will focus on UK consumer’s outbound non-business

travel. The travel and tourism sector contributes on average £2.5 billion monthly (ONS,

2011), where destinations are for Europe (70%), North America (5.8%) and others (17.2%).

The following two tables depicts as discussed above.


Number of visits abroad by UK residents: 2000 – 2010

Source: Health & Protective (2012) for above and below tables

Number of visits abroad by UK residents by purpose: 2000 – 2010

Tourism industry distribution infrastructure (Rowe et. al., 2002) is complex and highly

fragmented (table below). The sector originally operated in traditional service platforms,

which include transportation, accommodation and catering, attractions, travel agent, tour

operators, and transportation service providers. Over the years, online retailers have

overtaken a majority of the market share in travel booking services. The diagram also shows

external online influences from search engines, social networking, friends and family and

traditional media.


Popularity in technology usage, such as internet and mobiles has changed consumer

behaviour in tourism shopping. 53% of consumers use online platform (Mintel, 2011) for

information search across travel service providers before making any bookings. This implies

that the pace of process and transparency in information boosted the competitiveness between

market players and industry dynamics and complexity (De Wit Meyer, 2010). As discussed

thus far, this is depicted below:

Tourism and travel services platform

Technology advancement placed consumers in a stronger bargaining position. Consumers

have more decision power to select their service provider, for example buying directly from

airline, tour operators, and hotel or through travel agents.

Consumers are empowered to rationalize their purchase (Schiman and Kanuk, 2004), making

decision on their travel deal composition between flight, flight and hotel and package deals.

Consumers are consciously rationalizing their purchase based on price and offerings from

multiple service providers, from a wide variety of web sites.

Traditional service channel Online service platform

platform

Socialization & media

Transportations

(Airlines, rail, cruise etc.)

Consumer

Attractions

Accommodation &

catering (Hotel etc.)

Tour operators

Travel agents

Tourist information

& guiding services

Online travel

retailer

Travel blogs Search engine

(e.g. Google)

Friends &

families

Social

networking

Tradition media

(TV/Magazine)


On the other hand, fragmented information sites also imply that consumers might be reluctant

to spend a significant amount of time reading content online. From the service provider

perspective, there is a need for an integrated service platform that captures the diversified

consumer expectation, for the market players to stay competitive for future sustainability.

In short, the competitive forces could be summarized by applying Force Field Analysis

(depicted below). The changes in holiday purchasing attitudes, priority in spending,

information accessibility, occur in highly fragmented market place. This has a great impact in

driving the tourism service providers to rebuild the information platform, seeking to serve

diversified tourism demand within the market place.

Force Field analysis

DRIVING FORCE RESTRAINING FORCES

+4 +3 +2 +1 0 -1 -2 -3 -4

Given the economic downturn, recent market research (Mintel, 2012) shows that consumers

remain conservative towards their future holiday spending. For example, 19.4% of

respondents felt pessimistic about the future economic climate.

According to ONS (2011), the UK travel and tourism sector statistics report indicates the

number of people travelling abroad remains stagnant (55.9 million) over the past 12 months.

Holidays have decreased by 1% (36.3million), visit to friends or relatives has increased 3%

(11.2million), and miscellaneous reasoned travel has decreased by 10% (1.5million).

Changes in consumer value stream (priority in

holiday spending, financial security)

Changes in consumer attitude on holiday

purchase (self-search, control on decision making)

Technology advancement allows speedy information

accessibility (Mobile network, gadgets)

Highly competitive and fragment market structure

(Online service provider & Google travel)

Pressure on tourism service format (one-

stop information site, failing traditional

service channel)

Uncertain economy climate and growth

Matured and saturated tourism market

and rising pressures on environmental

and cost issues


On the other hand, the recently announced ‘Air Passenger Duty’ (APD) made by HM revenue

and custom (HMRC, 2012) is believed to have negative impact on the suffering tourism

sector (BBC, 2012). Prices of air tickets may increase in the near future (BBC, 2012a).

Additional Travel Factors

Internet Impact

Figure 5: Internet Users by World Regions

The United States market has a 78.3% Internet usage population penetration with over

245,203,319 inhabitants (InternetWorldStats.com) whilst Europe has 22.1%.. Such a high

penetration rate poses a great amount of influence of the American market. This type of

influence includes communication, shopping and travel. Hence the need for all industries,

product and service based, to make their online presence known.

In the next five years, the online travel industry will be shaped not just by rising connectivity,

but faster speeds and new technology platforms of multimedia content (Mintel 2011).

The online retail space for the travel industry is changing dramatically as a result of the

increased number of tech savvy consumers. For instance 40% of the US population now

owns a smartphone and 38% in the UK (Mintel 2011).


An increased level of Internet usage is changing the way consumers are purchasing vacation

packages. For instance, figure below suggests that only 15% of holiday package consumers

visited a travel agent while a majority accesses the Internet to browse for ideas, search for

information as well as purchase their package.

Vacation Planning Activities

Figure 6: Survey of Vacation Planning Activities

Source: Mintel 2011

The consumer journey leading to the purchase of vacation packages in both the US and UK

has evolved to incorporate a plethora of sources of information leading to complex

motivations and influences that ultimately determine the purchase. For example, The British

Interactive Media Association forecasts that 90% of global web traffic will be video by 2013,

(Mintel 2011).

Figure 7 illustrates external macro environmental forces, including technological, economical

and socio-cultural forces that are impacting the market for holiday packages. The overall US

population is estimated to increase by 0.9% each year. This growth can be attributed to the

ageing demographic, (Mintel 2011). Furthermore, unemployment rates are forecast to

increase, which will have affect the disposable incomes of the population and thus fewer

purchases in the sector are expected as consumers begin to be more cautious of their

purchases, (Mintel 2011 ).


External Macro Environmental Forces

Figure 7: External Macro Environment Forces

Travel Agencies

Five Competitive Forces of Travel Agencies

Industry Rivalry:

The industry is highly fragmented with intense rivalry. Most of the organized travel agents

are present in big cities. Industry rivalry is intense but not cut-throat because of low switching

costs, low levels of product differentiation, perish ability of products, diversity of rivals, and

since exit barriers are not high, fixed costs are not high, market growth is good.

Supplier Power:

Direct reservation systems now dictate information availability and allow dynamic pricing.

The airline with the highest market penetration of direct reservation systems and the widest

• Tax policies

• Government Issued Travel Advisories

• Trade agreements and tariffs* Political

• Economic recession (Domestic/global)

• Unemployment

• Income levels Economical

• Aging population

• Stressful lifestyles

• Educated and a tech-savvy generation Socio-Cultural

• Emergence of social networks & media

• Increasing popularity of smartphones

• Internet as a commodity Technological

External Macro

Environmental

Forces


schedule is most powerful. Airlines dictate prices / schedules, so powerful. Exploiting this

power, large airlines begin to offer differential pricing, based on amount of business. Travel

agencies compete on local knowledge of airline schedules and prices.

Substitutes:

Alternative means of transport, direct purchase from airlines requires greater effort.

New Entrants:

There are high barriers to entry because of need for local knowledge. Barriers to entry

lowered by free system availability, but raised by need for training in system use. In order to

be competitive in this market, they need to enter into large-scale contracts with suppliers. The

industry is a high capital-intensive industry.

Buyer Power:

Low switching costs, i.e. buyers can choose among other providers with relative ease.

Internet booking and social media are playing an important role in giving unprecedented

power to the buyers who can easily bypass the travel agent/agencies.

Opportunities and Threats in the Market

Opportunities Threats

Increased user specific tools (McMohon

and Pospil 2005)

Recession leading to decreased disposable

income (Mintel 2011)

Increasing amount of internet users

(Pendergast 2011)

Ageing population (UK Parliment 2012)

Low cost (Mintel 2011)

Political unrest and Safety (Pendergast 2011)

Globalization (Pendergast 2011)

Increased unemployment rates (Mintel 2011)

Deeper Recession (Beemer 2009)

Figure 8: SWOT Analysis for US and UK markets


SWOT Analysis for Travel Agents

Strengths

Business class

High quality services and tours

Experienced tour guides

Front-line staff with language

ability

Low customer to employee ratio

Staff who are highly trained

and qualified to organize

vacations

A truly unique, high end,

service offering

Weaknesses

Lack of capital

Lack of support from other

channel members

Lack of marketing expertise

Brand name unknown

Imperfect information of the

market

Relationship with airline

companies

High prices charged

Opportunities

Unfulfilled customers’ needs

New tours and packages

Online tools and collaboration

with internet based companies

University tie-ups

International expansion:

suppliers in Europe and Asia

are fragmented so the

opportunity to make a real

presence there is feasible in the

near future

Threats

Competitors – Online and

Offline

Customers’ favor may change

Rising costs

Sustainability

Country goes into a prolonged

recession

Search engines like Yahoo and

Google

Growing online booking sites

Figure 9: SWOT Analysis of Today's Travel Agent


Understanding Generation-Y

Identifying the Customers

Initial expectations based on secondary research and preliminary data collection through

informal focus groups indicates a segmented consumer base for holiday packages. A key

objective of this project is to segment this group consumer profiles which reflect consumer

motivations that lead to purchase.

Identifying the Requirements of Customers

In order to successfully proceed through the consumer behaviour process map, certain

requirements must be met. Based on secondary data and preliminary research a set of

suggestive customer requirements have been identified as focussing on five performance

objectives: cost, quality, speed, flexibility and dependability (Slack et al 2007). Of which,

two key performance objectives have been suggested, cost and speed.

It is suspected that specific consumer profiles within the segmented group will place more

value on certain performance objectives. Preliminary data collected from focus groups

implies that the cost performance objective is a key determinant in the consumer purchasing

process. Cost was identified as influencing and motivating the initiation of the entire process

as well as each individual stage.

The speed at which consumers are able to move through the consumer purchasing process is

also another essential determinant for the Y generation, which is the majority of the sample

population in this research. A related study characterized the Y Generation as having a focus

on immediacy and intolerance for delays (McMahon and Pospisil 2005, cited in Pendergast et

al, 2010). Also, the need for rapid access to information was identified, (Pendergast 2010).

These characteristics have been supported with preliminary focus group data that highlighted

the issue of time and ease of access to information throughout the stages of the holiday

package purchasing process.


After extensive primary data both qualitative and quantitative in nature is conducted a set of

competitive characteristics that a firm must exhibit to be a viable competitor in the

marketplace, order qualifiers, as well as winners, which cause the consumers to choose

specific holiday packages over other competitors will be established (Hill 2000).

It is suspected that the current consumer process map does not deliver the preferred customer

requirements. Thus, a crucial objective of this project will be to highlight the gap that exists

between what is demanded by consumers of holiday packages and what is supplied. Certain

aspects of the process have been emphasized in preliminary data that suggest potential for

improvement. A possible recommendation to improve this process to better reflect the

motivational factors influencing purchase decisions is to integrate the information search and

gathering process to reflect the loss of boundaries and enclosure which refers to the sharing

of knowledge and information online. The result is a flattening of the value of expert

knowledge (Pendergast 2010). If the ability to access required information was altered to

reflect this, it could result in a shortening of the time in which it takes a consumer to

complete the purchasing process and could potentially lead to more purchases.

Chapter 4: Exploratory Research Model of current process:

In accordance with current research, the following is a suspected consumer process map

highlighting consumer behaviour and steps taken from needs recognition to information

search, evaluation and ultimately purchase. The questionnaires and focus groups are aimed at

testing this hypothesis to identify gaps and/or issues that can be addressed and solutions to be

recommended.


Purchase

Options:

Provider websites

Social media

Word of mouth

Friends/family

Blogs/Travel Sites

TV/Magazines

Drivers:

Social interaction

Spontaneity

Break from work/life stress

New experience

Achievement

Methods:

Comparisons

If suits, next stage. Influences:

If not, go back to information Cost, flexibility,

search stage. Friends/Family

Figure 10: Purchase Model

Information

Search

Shortlisting/

Gathering

Evaluation

Need

recognition


The motivations for consumers during the initial need recognition phase of the holiday

purchasing process map involve the fact that consumers are highly influenced by friends and

peers (Pendergast 2012). The main reason stimulating the need to go on holiday has been

suggested by Pendergast (2012) as stress relief. Furthermore according to Richards (2007) the

new generation of holiday consumers are actively seeking experiential holidays.

Subsequently, after the initial need has been recognized the consumer begins to search for

information. This stage reflects the change in consumer attitudes in reference to lifestyles and

behaviours. For instance, McMohan and Pospisil (2005) highlight the need for immediacy

and the intolerance for delays within this generation. Pendergast (2012) also elucidates that

the new generation is primarily visual and multisensory in behaviour.

During the next stage the consumer short lists several options and continues to search for

online reviews as well as referencing virtual and real networks for advice in helping to

finalise an option. Pendergast (2012) characterizes the new generation of holiday consumers

method of searching for information as typically participative and viral through a network of

friends. At this stage the consumer attitudes regarding safety play a significant role in the

decision making process. Pendergast (2012) highlights the new generation as the first

generation to be born into the age of terrorism thus these individuals are particularly

concerned with security issues such as crime and terrorism.

Finally during the evaluation stage the consumer filters down to a single holiday option

where final concerns regarding safety, budget and reviews from external and internal

networks are utilized. Fields et al. (2008) explains the paramount importance given to

budgeting and safety, thus this concern is a significant factor in the decision making process

during the evaluation stage.

It is important to note that the map is not a smooth linear process. For example, the three

previous stages; information search, short listing and evaluation are all iterative processes in

which the consumer returns to several times before proceeding to the final purchase stage.

Once the evaluation stage is successfully completed and the consumer requirements are met,

the final purchase can be made. During this stage, the quality of the website and information

are significant factors that can either aide or deter the successful completion of the process

map.


Interpersonal influences and the internet:

One of the most influential factors being investigated in the surveys and focus groups is

aimed at word-of-mouth (WoM) and how this influences consumer behaviour. Below

diagram depics the scope and interactivity of e-WoM: interpersonal influence and WoM are

ranked the most important information source when a consumer is making a purchase

decision (Litvin and Goldsmith, 2008).

Figure 11: Word-of-Mouth in Purchase Decisions for Travel

Source: Litvin and Goldsmith (2008)

The internet has presented marketers with new avenues to improve their effectiveness at

communication and develop new approaches to acquire and retain customers. One aspect of

this is the phenomenon of online interpersonal influence, because a key principle of consumer

behavior is that customers have the ability to exert influences upon each other. Consequently,

marketers seek to manage interpersonal influence with the spread of electronic technologies

that has caused an increase in customer interactions with each other.

Litvin and Goldsmith (2008) suggest the following factors for marketers to consider:

Hospitality and tourism product offerings, as intangible goods, cannot be evaluated

before their consumption, thus elevating the importance of interpersonal influence.


Many hospitality and tourism products are seen as high-risk purchases, for which the

emotional risk of reference group evaluation is an important aspect of the decision-

making process.

Tourism industry is intensely competitive, suggesting that the use of online

interpersonal influence may provide important competitive advantages for early

adopters.

Focus Groups & Personal Interviews - US

Findings

Group

Implications

Recommendation

Invitation by friends is a strong

motivator to plan for a vacation

Social

network

Peer influence and group

travel play a prominent role

in vacation planning. This is

two-fold as it applies to both

social belonging and budget

considerations.

Offer “refer-a-

friend”/”invite-a-

friend” deals WoM by a friend influences

destination preference.

Social

network

Group-vacation reduces

financial obligation

Budget

“Flash sale” strategies are

tempting but need refinement

for larger public acceptance

Online

tools

Popularity of flash deals is

on the rise. If travel

concerns are addressed, it

can be a potential strategy to

use.

Offer more visible

flash deals

addressing trust

concerns of

customers.

Convenience and ease of

website usage is a huge factor.

Online

tools

Websites need to be user-

friendly.

De-clutter website

information and

improve UI.

Farther trips mean longer time

to plan. But booking time

remains the same for long or

short trips.

Planning There is a direct relationship

between travel distance and

planning time.

Kayak is a preferred site for

information about flights.

Online

tools

Information aggregator’s

are the primary points for

data collection.

Incorporate

information

gathering interfaces

onto travel

websites.

First buyer experience of the

website plays an important

role.

Online

tools

Experience guides future

purchase behavior.

Gen-Y does not value loyalty

as much as the previous

generations.

Brand Irrelevant to Gen-Y. Loyalty is towards

benefits or rewards

being offered.

Gen-Y does not refrain from

booking multiple flights or do

Planning Price trumps convenience.


a mix-n-match if provided with

a cheaper option.

Activity is the top priority

when it comes to deciding on a

destination. Flight is next and

hotel comes last.

Planning Destination activities are the

primary attraction points.

Orbitz is a preferred website

for booking because they do

price-match.

Online

tools

Websites that offer price-

matching are popular.

Competitive on

pricing and a sense

of fairness.

Priceline etc. not famous yet. Online

tools

Bidding model sites have

not reached a level of

acceptance common to

travel sites due to lack of

awareness or confusion on

terms.

Booking:

a) All Separate:

Pick and choose, cheaper,

convenient, budget constraint,

flexibility, domestic travel, no

restrictions.

b) Combo:

Hidden costs, Only when

accompanied with parents or

family.

c) Complete Package:

Hidden costs, very rare, family

involved, travel agent,

restrictions.

Planning Perceptions of flexibility,

cheaper fares and

transparency in booking

everything separate over

package deals.

Packages are preferred

when travel involves

families for the sake of

convenience and peace of

mind.

There is a trade-off between air

fare and hotel budgets.

The costlier the fare, the

lower the hotel budget and

vice versa.

Credit card membership

benefits decide the budget.

Maximization by making use

of Rewards.

Planning

Risk Factor – Travel Insurance. Budget Figure 12: Findings from Focus Group and Personal Interviews

A prominent theme discovered within the focus groups and interviews was budget. Budget

was a top constraint for many of the participants. Most decisions and behaviors revolved

around it: this is relevant to both the US and the UK. As far as motivations are concerned,

they usually start with invitations from friends to go on a vacation, while word-of-mouth was

identified as the most common influence on destinations chosen (relating back to

interpersonal influences discussed previosuly).


When asked about the current online booking preferences, the participants mainly pointed to

convenience and ease of use of the website as a huge factor in their preference for one service

over another. Convenience included travel information options, price comparisons and related

services. Ease of use mainly refers to the ease with which the above information was obtained

and presented to them. Among travel booking websites, a preference for sites that feature

options such as price-matching and rewards was predominantly expressed. As a result, there

was no general preference among the various travel websites, with the preference usually

going to the site that offered the lowest price for a given trip. Based on the discussions, it was

also stated that the first experience with a website’s offering usually determines whether the

customer goes back to the site for booking.

Further away trips may mean longer time to plan, but booking time remains the same for

either long or short trips. This shows that the majority of time is invested in information

gathering and decision-making rather than booking itself. Overall, among the three modes of

travel booking, booking everything separately seems to be associated with lower costs,

convenience, flexibility (no restrictions) and within their budgetary constraints.

The most interesting outcome of the personal interviews was the application of technology in

the marketing function. People suggested that promotions and discounts could be tied to

facebook likes or twitter feeds. The interviewees also suggested mobile apps for travel

agencies. These mobile apps could assist customers while travel and also provide them

assistance if need arises.

Travel Agent Interviews

Observations

Explanation

Cruise bookings on the rise Cruises are easy to book. They enjoy the all-

inclusive factor.

Resorts bookings on the rise All-inclusive factor, promotions and easiness.

Older generations are more frequent

than Generation-Y

Younger travelers stay away from travel agencies

because of the internet. Many Generation-Y come to

book oversea travels since they do not know what to

expect, very rare though.

Most bookings are regional The culture in West Texas is to travel regionally.

Most distant trips are to Cancun and Acapulco,

Mexico.

Visit agency for information Travel is new to most Generation-Y (international


travel that is)

Book packages Visitors avoid individual piece-meal deals.

Generation-Y seek packaged deals.

Generation-Y visit to book for a

group

Most visitors expect to receive deals for booking

multiple people. Having the agency do the booking

makes planning much easier.

Seek perks Young travelers seek free meals, added service and

an agency discount with service providers. The Gen-

Y see agencies as an option, not THE option. They

do not value agencies because they feel they are more

than capable of typing a booking into Google.

Seek experience Generation-Y travelers ask for more of the

unconventional trip. They are not as drawn to the

“mega attractions.” They sought some authenticity. Figure 13: Excerpts from Travel Agent Interviews

The above figure gives the summary of what 6 travel agents responded about Generation-Y.

Some of the responses were generally the same when asked about travel habits and the

purpose of a young traveler’s visit to the agency. To be respectful of the agents’ time we

held these interviews via phone, so as not to disrupt their normal customer flow. (Travel

Agencies: National Travel Systems, Envoye Travel, Bell Travel Systems, and National

Travel Systems).


Focus Groups and Personal Interviews – UK

Ideal Holiday: How you feel buying a holiday:


Consensus and summaries from focus groups:

Overall from the focus groups the following points were raised and identified:

People find booking holidays quite stressful, when compared to just thinking of

holidays is seen as fun and relaxing.

It is time consuming to book a holiday because of the various amounts of information

sifting involved.

They have to constantly search for what they are looking for from several sources.

Those with family have to take into consideration more details because of children.

Flights are bought independently usually because of better prices or because the

consumer has somewhere already to stay (such as with friends and family).

Package holidays are bought by families mostly – convenience and value for money.

Particular discussion points:

Considering the last time they booked a holiday, they were unhappy with the following

aspects of the purchasing process:

Hectic information search process, fragmented service platform, not consistent and too

many web sites with different presentation styles to consider.

Improvement recommendation:

A service platform that provide customization, price flexibility, more bundle options,

post purchase support that provides a one stop enquiry support (customer service that

provide intimate interaction, such as travel agenda, connecting transportation).

Customised travel recommendations based on previous purchases and profiles. One

user platform integrating all information sources into one.

Interview summaries:

Find that travel agents do not listen.


Like customisation to some extent. Make recommendations based on profile and

previous purchases.

Do look for and trust recommendations

Websites sometimes do not reflect reality – in terms of pictures.

Not enough flexibility

Chapter 5: Research Findings

Consumer Attitude & Behavior Model

The following two diagrams depict the proposed consumer purchasing process based on the

primary and secondary data collection. These process maps take into consideration the

behaviours, atttitudes and interpersonal influences of Generation Y holiday consumers.

Figure 14: Proposed Consumer Decision Process


Figure 15: Consumer Attitude & Behavior Model


Rating Scale used for cluster surveys:

The following rating scale was designed for respondents to use when answering the survey

questions based on equal intervals and applied to five ‘amounts’ of time used. The following

key finding sections will details the frequency numbers obtained in accordance with this

rating scale.

Rating Scale

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

% of time

Rarely Sometimes Often Often to Always

1 2 3 4 5 Never to Rarely


Clusters survey outcome – US

Flights

Key Findings:

Top 3 drivers for booking flight only: Visiting friends (3.59), getting a better deal

(3.50) and visiting family (3.22).

Top three sources of gathering information: Friends and family (3.83), company

websites like Expedia and Kayak (3.63) and search engines (3.51).

Top three places for accomodation choice for booking flight only: staying with family

(3.97), booking hotel once at location (3.60) and staying with friends (3.58).

Majority responded ‘NO’ to buying on smartphne because of safety and reliability.

Figure 14: Flights Only Key Survey Results

3.22 2.46

2.76

3.59 3.5

3.02

Drivers for Flight

Only Purchases

Visiting friends

Being spontaneous

Confidence

Visiting family

Better deal

Connecting flight

3.83 3.63

2.4 2.6

2.86

3.51

Information Search

Preferences

Friend & family

Internet

Social networking sites

Traditional media

Travel blogs

Search Engine

3.58

3.97

1.53 3.6

1.65

Accommodation

Preferences

Stay w/Friend

Stay w/Family

Find Hostel

Find Hotel

Own Home


Flights + Hotels

Figure 15: Flights + Hotel Key Survey Results

Key Findings:

Top three holiday motivators: social interaction with friends and family (4.37), break

from life/work stress (3.96) and desire for new experience (3.95).

Sources for gathering information rated as: friends and family (4.03), company

websites (3.42) and search engines (3.33). Similar to flight only findings.

No particualr brand loyatly for either type of airline or hotel.

Would not buy on smartphone for safety and reliability.

4.37

3.96

3.95 3.18

3.11

Motivating Factors for

Purchases

Social interaction with friends/familyBreak from work/life stressNew experienceAchievementSpontaneity

4.03

3.42

2.64

2.78

2.69

3.33

Information Search Sources

Friend & familyInternetSocial networking sitesTraditional mediaTravel blogsSearch Engine


Package Deal

Key Findings:

The top three holiday motivators: break from work or stress in life (4.18), social

interaction with friends and family (4.2) and a new experience (4.06).

The top three sources for gathering information: friends and family (4.03), search

engine (3.58) and websites such as Expedia, Kayak (3.37).

The top 2 preferences for choosing a package deal was value for money (2.76) and

convenience (2.54).

Majority would not buy on smartphone. The reasons varied with the common ones

being the same as the previous ones however, some of the other salient reasons were

attributed to the lack of comparison capabilities, visibility of all options and note-

taking that could be done on the small screen of a phone.

Figure 16: Vacation Packages Key Survey Results

4.2

4.18

4.06 3.15

3.08

Motivating Factors

for Purchases

Social interaction withfriends/familyBreak from work/life stress

New experience

Achievement

Spontaneity

4.03 3.37

2.61

2.81 2.77

3.58

Information Search

Sources

Friend & family

Internet


Traditional media

Travel blogs

Search Engine

2.54

2.04

2.76

1.92

Package Deal

Preference

Convenience

Security

Value for Money

Activities


Clusters survey outcome – UK

Flights

Key Findings:

The top 3 drivers for consumers to purchase flight only: visit family and friends (3.29),

better deal (3.10), being spontaneous (2.95). These drivers scored 3.29, 3.10 and 2.95

respectively.

‘Staying with family’ scored the highest in accommodation choice and it is

responding to the purchase motivator above. ‘Hotel’ is the alternative other than ‘stay

with family’. Others choices in descending order are hotel (3.55), friends’ house

(3.06) are sometimes/often the next best choices.

Company websites (3.85), ‘search engine’ (3.56) and ‘friends and family suggestion’

(3.06) are often the choices for consumer to perform their information search.

72% of respondents were not brand loyal, and 94% would not buy on a smartphone.


Flight + Hotel

Level of trust: how and to what extent?

Key Findings:

Top 3 drivers for consumer to pursue for flight and hotel booking: break from work

and life stress (4.20), social interaction with friends and family (4.16) and new

experience (3.38).

Company websites (4.10), family suggestion’ (3.74) and search engine (3.69) and are

often the choices for consumer to perform their information search prior to purchase

decision making.

Respondents trust close friends more than any other source of information.


Package holidays:

Key Findings:

The data shows the top 3 drivers for consumer to pursue for packaged holiday: break

from work and life stress (4.00), new experience 3.49) and suggestions from

family/friends (3.29).

Search Engines (4.61), internet (3.79) and suggestions from friends/family (3.12) and

are often the choices for consumer to perform their information search.

Value for money (3.22) is the most important that encourage a consumer to pick up a

package and others complimentary reasons include convenience (2.46), activities

agenda (2.26) and security (2.06).


Key Comparisons:


The major drivers for consumers to pursue for purchasing a holiday are ‘Break from work/life

stress’ (24%), ‘Social interaction with family and friends’ (22%) and ‘New experience’

(20%), while spontaneous and ‘sense of achievement’ are the least motivator scored 17%.

The survey outcome on ‘information search’ shows that ‘Search engine’ and ‘Internet’ are the

highest channel used which scored 21% equally. Other information channel in ascending

order are ‘Friends and family suggestion’ (18%), ‘TV Media’ (14%) and ‘Social networking

sites’ and ‘Travel blogs’ (13%).

However, the ranking scored on ‘trust recommendation’ across 3 clusters (average score:

3.31) shows that they are receptive to information posted on commercial web site. The

respondent also discourage from negative feedback written on the web site (average score:

3.39). On the other hand, consumer are relatively trust their friends and family word’s before

making decision on flight and hotel and package holiday.

Consumers take 2.5 months to make decision for flight and flight and hotel, before they

actually make their booking, and longer decision making time for package holiday (3-6

months). Online are the most common route used in holiday booking, which scored flight

(77%), flight/hotel (85%) and packaged (98%). Of which, 70% of consumers normally buy

ticket directly from airline. However, the trend shows that 23% of consumers may pursue

travel service provider for ticket purchase.

The data pattern also shows that 83% consumers are less likely to be loyal to brand, same as

US. The likelihood of using smart phone to book their holiday, remain low across 3 clusters.

Risky and inconvenience are the major cause of the hesitation.

Supplier Response to Industry

Current Supplier Trends

The Global travel industry is making an uneven recovery from the recession: Latin

America and Asia-Pacific remain hotspots.

Agents face the additional challenges of the demise of commission-based travel and

increasing use of the Internet in place of traditional F2F contact.

Agents are likely to reinvent their role as specialized travel advisors and as a trusted

source of information.


Supplier Response

Better management of the complete traveler experience and the exploration of new

opportunities within it – Agents are focusing on demand for their underlying product

– e.g. transport/communications or personal services and add value through

developing total travel solutions.

Other additional services together with the services marketing mix are being offered

as they are new opportunities to revenue growth.

Travel agents are exploring new models that take a more comprehensive view of the

total travel experience.

Agents could also benefit from integration with mobile technologies.

Agents are repositioning themselves as F2F (Face-to-Face) agents to emphasize the

ability to provide services to customers. As demand is changing, agents are becoming

“lifestyle managers”, providing higher-margin, tailored services to consumers (e.g.

health and fitness or less regular experiences) in their home countries and abroad.

Agents are moving beyond their traditional role as ‘airline distributors’ and are

increasingly focusing on providing the best communications solution to business

clients.

Agents are integrating with new technologies (e.g. analysis of customer preferences,

selling real-time information products through smartphones) to more closely gear

their product to traveler tastes, with benefits to both customers and themselves.

Agents are plugging themselves into the social media phenomenon to gain exposure

to the tech-savvy consumer.

Opportunities

Disintermediation: go direct and bypass the established distribution chain by

developing their own websites. The abundance of information on the internet can

create confusion for customers. Indeed the more they have access to a lot of

information (in terms of prices, travel suppliers' policies, type of packages, etc), the

more they will need advice to make a choice. The boom of the Internet and the easy

access to information could be to the advantage of the travel agent who is the best

person to find the right information and give unbiased consultancy. The competitive

advantage of the travel agent will be to provide expertise and experienced consultancy

to meet the needs of a specific traveler.


To be profitable, travel agencies must sell the value of their services and expertise on

prices to sustain long-term relationships with their customers. This means that they

have to consider the impact of new technologies and identify cost-efficient service-fee

management solutions to meet their business requirements.

Dynamic content is important, but ease of use trumps all when keeping the Y-

Generation’s attention online. Hence, travel agencies who have their own websites

have to manage technology efficiently to support their content.

Content marketing, particularly B2B content marketing, is extremely exciting for the

adventure travel industry. Travel suppliers can connect with and support business

partners by creating content that can easily be shared across online and social

networking platforms. By making it easy for business partners to repackage and share

content when marketing direct to consumers, suppliers of adventure travel have a

great opportunity to solidify long term relationships leading to increased sales in the

U.S. market.

Retailers need to constantly adjust and update their offerings to drive traffic among

the ‘Y’ generation active shopper segment that gets bored easily.

In terms of communication, companies must continually be more creative with media

and promotional themes to capture this audience. They are unlikely to respond to

marketing hype. Ads targeting this generation, must be placed in appropriate

magazines and on appropriate Internet sites, TV and radio programs, and video games

(“advergaming”).

A combination of online, offline, and word-of-mouth channels probably are the best

choice for reaching Gen Y.

Marketers need to use appropriate music, language, and images. Use language that

paints visual pictures and action verbs that challenge. Send the messages that stress

team spirit.

Public relations and creating buzz are important as effective advertising to this group.

Event sponsorships and electronic media seem to connect with this generation.

Approach this generation through e-mail and voice mail, but use visual

communication to motivate them.

Social networking sites are important in that they allow them to connect with their

peers regarding important issues. With email almost passé, they prefer instant


messaging, texting, and interacting with friends on social networking sites like

Facebook or Twitter.

Reach them digitally with websites and micro sites/campaign sites, web marketing (e-

cards, banner adverts, pop-ups, sponsorship, content partnering, screensavers, desktop

toys), e-mail, online chat, webcasting, interactive television (sites and adverts), short

service (SMS), WAP/wireless Internet, CD-ROMs/enhanced CDs/CD cards,

computer games (console), and digital radio. Content is king for this generation,

moving content from platform to platform with no restrictions is a must.

Chapter 6: Data Analysis for Social Media Influence

Data Structure and Description Finding - US

Table 2: Data Structure and Findings from Survey

Part Variables

Demographics and relation

status characteristics

Demographic

characteristics

Age

Gender

Resident in USA at least for 5 years

Current professional status

Relation status

characteristics

Current relations status

Have children

Purchasing Tool Tool Online

Phone or Person

Smartphone

Findings: Refer to the Demographics Table

Factors of purchasing

behavior

Reason To visit friends

To visit family

To be spontaneous when going on holiday

A connecting flight

A better deal

Confident

Finding: Q1. The ‘Visit Family’, ‘visit friends’, and ‘A better deal’

options are more significant than others. However, the

‘Visit Family’ option is similar to the ‘visit friends’ in

terms of preference. We conclude that there are two

different purchasing concepts that happen when people

make decisions. Hence, money, family and relationships play an important role in the decision-making process. In

our sample, family factor is more important than money.

Further, there is an interesting group which is age group

of 27-30. From our sample, in this specific group, the

reasons for booking flight are more decisive.

We infer that from our sample, the Y-generation tends to

have children towards the age of 27.

In summary, the respondents with children show more


strong needs from money and family or friend.

Accommodation Stay with friends

Stay with family

Find a hostel

Find a hotel

Home you own abroad

Finding: Q2. According to the correlation analysis in our sample, there

are two groups to talk about. First, people show similar

preference to stay with friend or family, or live in the

hotel. Second, people have seldom experience in hostel

or their own house abroad.

The latter was confirmed from our focus group that in

USA, hostel is not as popular as compared to in Europe,

and for Y-generation in our sample, they don’t have their

own house abroad.

If we assume that a hostel is an unsafe place as compared

to the other choices, the younger Y-generation does not

show the trend of taking adventure in this choice.

In summary, the Y-generation likes to take risk and they

love adventure but this characteristics is not proved in

making the accommodation decision.

Social media

source

Friends and family suggestions

Internet


TV/Travel channel/Magazine/Media

Travel blogs/sites (e.g. Tripadvisor)

Search engines (Google, Yahoo etc)

Finding: Q3. With a Pearson test, we conclude that information

sources can be separated into two networks: social media

including social network community on the internet and

real-life social network. These two networks affect

people’s decision.

In summary, majority of the Y-generation chose

internet as the most important information source and this will only strengthen as age increases whereas family

sugestions might weaken with age. Moreover, the family

affection for the special group, people with children, is

weak.

Social media

influence

Trust recommendations

Negative review

Finding: Q4. We assumed people had a similar response for both

positive and negative reviews. However, in correlation

test, the p-value shows 0.36 which is not significant.

which means in our sample, they don’t have a strong

relation.

In summary, we find that people are easily affected by

negative reviews but they are seldom encouraged by

positive reviews.

Time Planning time in advance

Average decision time

Finding: Q6 and Q7 Because the p-value in correlation test is 0.004, we

assume there is a relation between decision times and

planning time in advance.

In summary, according to our sample, the average time

to book a flight in advance is 1 to 3 months and the

average decision time is two weeks to one month.

Budget Budget for vacation

In our sample, the number of respondents who shared


their budget preferences is 163. The average budget is

$1443, with standard deviation $1000. The range of

budget was between $200 and $6000.

Also, people with children have higher average budget

than normal people.

Loyalty Particular brand Needs for particular brand of airline

Finding: Q.9 From our survey, 62% of the people had a preference for

a particular brand and those people were in the age group

of 18-22.

Result: The age group of 27-30 is a special age group which

shows more decisive expression in questions than other groups in our dataset. This age group could have a very

interesting characteristic, mainly due to the fact that this

group had newborn babies. This age group has different

characteristics from the group of having children.

Factor analysis of attributes in purchasing consideration:

Table 3: Factor Analysis of Attributes in Purchasing Consideration

Factors and variables New variable and Factor loading Eigenvalue Cronbach’s alpha

Reason: To visit friends

To visit family

To be spontaneous

A connecting flight

A better deal

Confident

KMO:0.765

Self-Awareness:

0.79714

0.80819

0.85235

Social Relation: 0.92536

0.87565

3.30240355

1.02435370

0.73717176

0.42241855

0.28206275

0.23158968

0.834

Accommodation: Stay with friends

Stay with family

Find a hostel

Find a hotel Home you own abroad

Hotel:

Social Relation: 0.87794

0.87794

1.54154762

0.45845238

0.4765

Social media source

Friends and family

suggestions

Internet Social networking sites

TV/Travel

channel/Magazine/Media

Travel blogs/sites (e.g.

Tripadvisor)

Search engines (Google,

Yahoo etc)

KMO:0.69

Social media:

0.68802 0.66723

0.68001

0.66323

0.67323

0.69123

Interactive with

Surrounding: 0.89514

0.37269

2.29179392

1.12009954

0.85542769 0.68341385

0.57908758

0.47017741

0.6531

*Social media influence Trust recommendations

Negative review

*Trust *Negative review

Time Planning time in Average decision


Planning time in advance

Average decision time advance time

Regression Results of Influence of Social Media - US

Table 4: Tabulated results of regression analyses

Root MSE 0.90219 R-Square 0.2416

Analysis of Variance

Source DF Sum of Squares Mean Square F Value

Model 12 42.51284 3.54274 4.35

Parameter Estimates

Variable t Value Pr > |t|

Intercept -1.49 0.1374

Gender 1.83 0.0686

Q4_Trust 4.70 <.0001

Social_Relation 1.95 0.0532

Self_awareness 2.65 0.0087

Multiple regression analysis was used to test whether the independent variables had

significant impact on the dependent variables. Factor scores from the factor analysis were

used as the input variables in this analysis. Table 3 above displays the results of regression

analysis.

The R square of the model is 0.2416, which indicates that approximately 24% of the variation

of the dependent variable could be explained through the goodness of fit of the model is

acceptable. Those factors: Trust recommendations, social relation, self-awareness and gender

have significant influence on dependable variables. From Table 3 above, it shows that the

trust recommendation is the most important determinant factor in explaining use of social

media in the purchasing process. That is to say, people could have an inclination towards the

concept of ‘the more social media usage, the more people trust the information source’.


Regression Analysis – UK

As a result of the primary research findings, key finding have been drawn from the UK

market. The key findings are as follows:

Purchasing Motivator

Overall key findings from statistical tests indicate that ‘Social interaction with family’ is the

primary driver across all 3 clusters as it scored higher means particularly seen in the ‘Flight &

Hotel’ category. The key reason for purchasing a holiday within the ‘Flight & Hotel’ and

‘Package holiday’ was the ‘need for a break,’ which was followed by seeking a ‘new

experience. Furthermore, the mean value of all 3 clusters correspond to the HPA (2012)

statistics, where ‘Visit Family & Friends’ and ‘Holiday’ are the main factors that consumer

pursue for holiday booking. However the primary research below indicates that the drivers

on holiday booking are quite widely distributed.

Buying motivator:

FLIGHT FLIGHT/HOTEL vs. PACKAGE

Analysis of the Package Holiday Value Driver indicates that ‘value for money’ scores higher

over security and activities. This is consistent across all age groups. However, statistical data

illustrates that gender does play a role in the decision making process when evaluating

3.10

3.29

2.95

2.60 2.80 3.00 3.20 3.40

F

Spontaneous Family/Friend Better deal

4.20

4.00

4.16

3.29

3.48

3.49

- 2.00 4.00 6.00

FH

P

New experience Family/Friend Break


security as a motivator for holiday package purchases. This is due to the positive correlation

between security and gender shown in the statistical tests.

Information Search Channel versus Trust

Within the UK market, statistical test results suggest that there is a significant relationship

between trust and internet usage. This is relationship is consistent throughout all three

purchases choices. This may imply that consumer may use ‘Internet’ and ‘Search engine’ to

obtain information on their holiday shopping needs. However, consumer may engage uses

alternative information channel such as ‘Friends and family’ or ‘Traditional media’ or ‘Travel

agents’ if they do not trust the internet before making placing their holiday booking online.

Information Search Channels versus Brand Loyalty and Online Purchase Behaviour

Primary data indicates that friends and family suggestions have an impact on the end

purchase of online package holidays. Furthermore, search engine has greater influences

(above 4.0) on brand loyalty and online purchases. There is a similar trend seen in Flight and

Hotel purchases.

Commitment on Holiday Booking versus Relationship Status

Within all three clusters, individuals who are married or in a civil partnership as well as

living with a partner, tend to take a longer period of time (4-5 months) to purchase their

holiday. Moreover, individuals with children also tend to take a longer period of time to make

their purchase decision; this is seen particularly within the 27-35 age group. This may imply

family commitments cause a longer purchase decision period.

Smart phone purchase vs. Age group

The smartphone usage in relation to age groups shows an insignificant relationship.

Therefore, based on statistical tests, it may be asserted that consumers who purchase using a

smartphone are not particular within a specific age group.


Comparisons between UK and US:

As a result of the primary research findings, three key comparisons have been drawn between

the UK and US holiday markets. The three key comparisons are as follows:

1. Level of trust and information search channels

In both the US and UK markets the use of Websites and Search engines have a great

influence on consumers information channels. Within both markets, consumers show

indications of sensitivity towards negative reviews. Within the UK market, consumers tend to

approach their friends and family before pursuing purchases, whilst US consumers are more

likely to refer to social networks during the information search process.

2. Brand Loyalty and Holiday booking decisions

Comparative data suggests that US holiday consumers are more brand loyal within the age

group 18-22. However, unlike US holiday consumers who are brand conscious based on age,

the data shows that UK holiday consumers are brand loyal based on budget airline as well as

the accessibility of certain budget airline in relation to particular destinations.

3. UK versus US consumer rationality in buying decision process

Within the flights only holidays the purchase motivators between both markets indicate that

Visiting Family and Friends is the top motivation. Correspondingly, the top accommodation

choice for both markets is to stay with friends and family.

US holiday consumer for flights only is more likely to purchase a holiday based on deals or

offers whereas the UK holiday consumer for flights only is more likely to purchase based on

spontaneity.


Solutions and Recommendations:

Based on primary and secondary research, the following recommendations are made to IBM

with regards to the consumer purchasing behaviour towards holidays:

One integrated web user interface for holiday booking (as opposed to going to

several websites).

Consumer profiling to customize travel searches based on their history, lifestyle,

preferences, activities, stages in life.

This one-user integrated interface should incorporate the following aspects into the websites:

My Travel Diary

My Travel Diary is an integrated web user interface tool that connects external travel sites,

recommendation sites and social networks which directs the consumer through the consumer

travel purchasing map. It provides an online personalized space for consumers to experience

a faster, more convenient and organized way of purchasing their holidays. For example, it

serves as a one stop shop for consumers in that it prevents directing away from purchasing

site to other external sites. Thus, it is organized and gives the consumer a step by step process

can be tracked and saved.

As a user integrated tool, My Travel Diary uses personalized consumer profiles to provide

customized travel searches based on the consumers lifestyle. For example, a brief

questionnaire will be presented to all new users which will serve as a platform to understand

the purchasing behaviour and attitudes of the consumer. This questionnaire can be retaken at

any point, preferably when consumers feel as though their lifestyles or behaviours are

changing. Furthermore, the software will recommend the questionnaire to be retaken after

certain time intervals to remind consumers of potential change in purchasing behaviours. The

software will also use consumer purchasing history and search engine history to provide

recommendations on holidays.

My Travel Meter

The My Travel Meter works in conjunction with My Travel Diary as a software tool that

monitors and records each stage of the purchase decision process. Thus, previous holiday


activities, purchases and experiences are recorded for consumers to then easily and visually

review to then aide in the future decision making process.

An optional link to social networks such as Facebook and Twitter is recommended to be

incorporated into the My Travel Diary experience. This link will allow consumers to share

their experiences through the consumer travel purchasing map so that members of their social

networks can provide valuable insight and aide the consumer in purchasing decisions. For

example, a user can share information on Facebook that they have expressed interest in

travelling to Vegas on My Travel Diary, which will then be uploaded onto the Facebook

news feed of all their friends. Thus, allowing friends to like, comment and share valuable

insight which can then be used to aid the consumer purchasing decision.

Smart-Phone Application – My Travel Tickets

My Travel Tickets is a Mobile application which allows consumers to search and book a

holiday via smartphone. A major concern resulting from the data collection was that

consumers are apprehensive to purchase via smartphone because of safety and security

reasons. The My Travel Tickets application will provide these concerned consumers with a

safe, convenient, fast and secured platform to search and book holidays. For instance, after

the consumer has selected a holiday, the application will generate a payment code and

establish a 24-48 hour holding period where the consumer can either pay for the holiday via a

desktop or laptop or through a phone call.

Solution Criteria Requirements:

IBM has provided a set of criteria required for possible business solutions. For instance, the

solutions must incorporate how the target audience accesses information and

recommendations, as well how product offers are assessed, and finally how the target

audience completes the purchasing process. Each of the preceding solutions has been

assessed according to the preset criteria.

My Travel Diary and My Travel Meter both incorporate the project criteria requirements

presented by IBM. For example, My Travel Diary incorporates various travel sites when

accessing information and recommendations with the understanding that consumers presently

are being redirected to various travel sites in a disorganized and extensive method.


Furthermore, the integrated web interface tool amalgamates social networks into the

purchasing decisions and allows for recommendations from friends and family networks.

Solution Implementation:

The Internet provides a fundamentally different economic environment for doing business, its

key differentiator being rapid communication of information, global accessibility, and at

negligible cost. This section of the report will present an analysis on these innovative

solutions and identify several benefits as well as risks to both IBM and its travel agent

clientele.

The proposed solutions involve a change in the business model for travel agents both in the

US and the UK so as to provide specialized products based on the consumer behaviours and

attitudes. For example the current model involves various service providers working

independently and competing on different platforms. This leaves the consumer to the task of

navigating through a variety of websites in order to reach the shortlisting stage of the

purchasing decision map. Furthermore, the consumer is left to interpret their personal

socioeconomic motivations and filter that into the holiday purchasing decision.

The proposed solutions essential saves the consumer from navigating through the World

Wide Web searching for appropriate web sites and provides a platform for which they can

easily navigate through one site; essentially bringing the service providers to the consumer in

a personalized and organized fashion. Furthermore, based on customized consumer profiles

where information is interpreted for the consumer and suggestions are then made based on

these interpretations. Thus, the consumer can be stimulated and motivated to purchase

holidays that are essentially more appropriate for them because they are based on personal

needs.

Possible risks associated with the proposed solutions include the risk of not being able to

bring together various service providers under one platform. This would entail supply chain

management and may present obstacles for the business. However, Urry (1990) suggested

that there is evidence that the dominant model of tourism production has been shifting from

Fordist mass tourism to post-Fordism. For example, the mass consumption of standardized


products, as in tour operators and airline, with various small firms contractually dependent on

tour companies is giving way to new forms of competition and co-operation. In addition, the

presentation of data associated with specific consumer profiles with different purchase

processes will vary from consumer to consumer, which may present difficulties. Yet,

Montanari and Williams (1995) observed that changing cultural values, business competition

and national competition for tourism, and improvements in information and communication

technology are all facilitating “greater emphasis on more individualistic or specialised forms

of holidays.” Thus, the current business model involves a standardized holiday shopping

experience that is not personalized for the individual consumer. Furthermore, the public

aspect of the solutions may create issues concerning the privacy of consumers who do not

wish to share information on social networks.

Although there are several potential risks and constraints involved in changing the business

model to a more personalized model, several benefits to the business may be observed as

well. For example, providing personalized holidays will increase consumer traffic as a faster,

more convenient and easy method of holiday purchasing is being provided. In addition,

consumer risk of purchasing a holiday which is not fit for the consumers needs is reduced.

Furthermore, the ability to access information about registered consumers presents business

opportunities for the company. Moreover, benefits of bringing together various service

providers under one platform create high competition and present the opportunity for

advertisements and sponsoring. In addition, sharing on Facebook will increase visibility and

draw in new customers. IBM will be able to improve the service provided to travel agent

clientele based on these proposed solutions as they will improve the value of business for

travel agents.


Chapter 7: Conclusion

ePESTLE

Based on primary and secondary research, and drawing from above diagram, the following

recommendations were made to IBM with regards to the consumer purchasing behaviour

towards holidays:

One integrated web user interface for holiday booking (as opposed to going to several

websites).

Consumer behaviour (Self-served generation, IT savvy)

Fragmented

business model (Fragmented market structure

i.e. diverse retail providers)

Structural &

efficient booking

process

Travel & Tourism

market dynamic

Consumer profiling

capabilities (CRM)

An integrated platform to capture

personalize travel map, one-stop

information platform.

Environmental drivers (PESTLE)

Economic drivers:

Shrinking tourism

market, cost-sensitive

(crisis)

Personalize

Information

platform

Technology drivers:

Broadband, mobile

network, gadgets

Regulatory drivers:

Air passenger duty

(environment + fuel cost)

Socio-Cultural drivers:

Demand for higher control

in buying process. VFR is

main purpose to travel.


Consumer profiling to customize travel searches based on their history, lifestyle,

preferences, activities, stages in life. This would be typified by type of holiday: eg

relaxing holiday, adventure holidays, experiential holiday etc.

Travel meter and travel diary. Monitor each stage of the purchase decision process

and also have a record of previous holiday activities and purchases.

Optional link to upload to Facebook and get family/friends suggestions e.g when you

have shortlisted your holidays, when you have booked your holiday, when you are

going on holiday etc.

Mobile app – search and book a holiday, but instead of paying on mobile, make the

booking and get a payment code. Then have 24-48 hours to log into via a

desktop/laptop and make the payment.

Possible constraints for above recommendations:

Standardising service providers on one platform.

Content/data presentation – each profile and each product would have a different

purchase process based on their profiling.

Privacy and costs.

Overall, the results from the secondary and primary research from both the US and UK

markets indicate that consumer profiles can be created dependent on type of holiday, past

purchase behaviour and lifestyle. This can be determined through implementation of the

recommendation of the one user inter-face platform, which would involve the consumer in

completing a brief but succinct questionnaire to join the website. This would test all of the

above factors, and then segment the travel consumers based on their preferences, and provide

them with a travel diary and travel meter.

Furthermore, the one user inter-face provides convenience for the consumer during the

information search stage. Price comparisons, service comparisons, travel options and related

services will all be available from one site. The website also enables a detailed customised

and personalised service for the consumer, whilst offering flexibility, convenience, and

clarity.


Moreever, the mobile app ‘my holiday tickets’ addresses the security concerns of the

consumer as consumers feel reluctant to make a final purchase on smartphones due to

connection and safety.

Though the US and UK markets are inherently different, Generation Y attitudes and

behaviours are similar across the Atlantic. This would suggest that the recommendation

would be applicable to both markets. US consumers may still mainly take domestic holidays,

however the motivating drivers and influential factors (such as friends and family, social

media, trust etc) appear to be consistent between both markets.


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Appendix Importance of Content for Generation-Y

Source: Cooper, Heather. "How travel bloggers make money from their blogs ." My Blogging Journey. N.p., 23 Aug. 2011.

Web. 14 May 2012.

Explanation: The previous model explains how blog sites make money. How does this

correlate with Generation-Y travelers? The fact of the matter is that all travel sites, not solely

bloggers, are searching for solid content to present to the end consumer. However, unlike

bloggers, hotel and flight sites have their actual services as enough content for people to

repeat their visits. Hotel and flight sites do have the upper hand in the “expectation” of

having content, but if for some reason they fail to deliver with the actual content, then they

will most definitely loose the end consumer. The blue arrows encompass social media sites

that create “buzz” about the content of the actual site. But what happens if a traveler goes to

AA.com and finds all the information needed for travel but fails to find a way to book a

flight? This is precisely why a site needs to have a strong content and be able to deliver on

the service one looks for, when talking about hotel and flight sites.

The house represents a house of money being built by social media buzz, advertising

investments and other forms of media drawing attention to this particular travel blog. The

same model can be drawn for flight and hotel sites, with the addition of being able to use the

service (book a flight or hotel) using a friendly interface.


Consumer pre-purchase decision making path

Source: Mintel (2011)

Survey

Demographic information:

Age Gender: Male/Female

18-22, 23-26, 27-30, 31-35

Have you been resident in the UK for at least 5 years? Yes/No

Have you booked a flight /flight and hotel/package holiday to go abroad in the last 1-2 years? Yes/No

Please state what you are currently doing?

Student (tick box) Field of study ______________

Employed (tick box) Industry ________________

Self-employed (tick box) Specialising in _____________

Student and Employed (tick box). Field of study____________ Industry__________

None of the above (tick box)

Please state your current relationship status:

Single (tick box)

In a relationship (tick box)

Widowed (tick box)

Separated (tick box)

Married or Civil partnership (tick box)

Living with partner but not married (tick box)

Divorced (tick box)

Do you have children? Yes/No


Questionnaire – Flights

1. Please rate each of the following for how often you usually JUST buy a flight ticket for? (no

accommodation).

ALWAYS (5) – NEVER (1)

To visit friends

To visit family

To be spontaneous when going on holiday

When you need a connecting flight

When you can get a better deal by booking accommodation separately

When you are confident you can find accommodation once you are at your destination (but knowing

you will not be staying with friends/family).

Other _________________

2. Please rate each of the following for how often you stay in the following accommodation after you

have reached your flight destination.

ALWAYS (5) –NEVER (1) scale

Stay with friends

Stay with family

Find a hostel

Find a hotel You own your own home abroad

Other

3. Please rate each of the following for how often you use for for gathering holiday information?

ALWAYS (5) – Never (1) scale


Internet (company websites etc, Groupon website).

Content and information on social networking sites – (such as Facebook, Twitter)



Search engines (Google, Yahoo etc).

Others: _______

Our definition of trust: To believe in the information you read, value the information, respect

and engage in the information and use the information when taking action.

4. Do you trust recommendations you read on a travel/social networking sites (not a company

website) with regards to booking flights with a particular airline?

ALYWAYS - NEVER scale

5. Would you be discouraged from making a purchase if you were to read negative reviews (from

one or more reviewers) on a travel/social networking site?

ALWAYS-NEVER scale


6. How far in advance do you typically book your flight? Please tick:

Never plan (tick box)

Less than 1 week (tick box)

1-4 weeks (tick box)

1-3 months (tick box)

6 to 12 months (tick box)

12 months and more

7. How much time does it take you on average from the point when you decide you want to go

holiday to when you actually make a purchase?

Within one week

One to two weeks

Within one month

More than a month

8. Do you typically book with a particular brand of airline?

Yes/No

Which one?_______

9. How often do you use the following for purchasing your flight tickets? Always – Never scale

Online (Yes/No)

If Yes; With a tour operator (Thomas Cook etc) / Directly with airline/hotel provider.

By phone or in person (Yes/No)

If yes; With tour operator (Thomas Cook etc) / Directly with airline/hotel provider.

Other ___________

10. Would you buy a flight ticket on your Smartphone? Yes/No if no why

Questionnaire – Flights and Hotel

1. When you decide you want to go on holiday, how often is it because of the following reasons?

Please rate each one.


Social interaction with friends/family

A break from work/life stress

A new experience

As a sense of achievement

Spontaneity

Other ____________

2. Please rate each of the following for how often you use for gathering holiday information.









Others: _______

Our definition of trust: To believe in the information you read, value the information, respect

and engage in the information and use the information when taking action.

3. Do you trust recommendations you read on a travel/social networking sites (not a company

website) with regards to holiday locations and accommodation?

Always – Never scale

4. Would you be discouraged from making a purchase if you were to read negative reviews (from

one or more reviewers) on a travel/social networking site?


5. Assume a friend of yours makes a fantastic recommendation for a particular hotel or location.

You look online travel/social networking sites and discover some bad reviews. Would you take

your friend’s word over the review?


6. How do you normally book your holiday?

Online (Yes/No)




Other ___________

7. How far in advance do you typically book your holiday? Please tick:

Never plan

Less than 1 week

1-4 weeks

1-3 months

6 to 12 months

12 months or more

8. How much time does it take you on average from the point when you decide you want to go

holiday to when you actually make a purchase?

Within one week

One to two weeks

Within one month

More than a month

9. Do you normally book with on particular brand of:

Airline Yes/No Which one? __________

Hotel Yes/No Which one? ___________

10. Would you make a flight and hotel booking on your Smartphone? Yes/No


Questionnaire - Vacation Packages (Flight+Hotel+Activity)

1.When you decide you want to go on holiday, how often is it because of the

following reasons? Please rate each one.

ALWAYS (5) – NEVER (1)

Social interaction with friends/family

A break from work/life stress

A new experience

As a sense of achievement

Spontaneity

Other ____________

2.Please rate each of the following for how often you use for gathering holiday

information.








Others: _______

Our definition of trust: To believe in the information you read, value the information,

respect and engage in the information and use the information when taking action.

3. Do you trust recommendations you read on a travel/social networking

sites (not a company website) with regards to holiday locations and

accommodation? Always – Never Scale

4. Would you be discouraged from making a purchase if you were to read

negative reviews (from one or more reviewers) on a travel/social networking site?


5. Assume a friend of yours makes a fantastic recommendation for a

particular hotel or location. You look online travel/social networking sites and

discover some bad reviews. Would you take your friend’s word over the review? Always – Never scale


6. How do you normally book your holiday?

Online (Yes/No)




Other ___________

7. How far in advance do you typically book your holiday? Please tick:

Never plan

Less than 1 week

1-4 weeks

1-3 months

6 to 12 months

12 months and more

8. How much time does it take you on average from the point when you

decide you want to go holiday to when you actually make a purchase? Within one week

One to two weeks

Within one month

More than a month

9. Do you normally book with on particular brand of:

Airline yes/no Which one? __________

Hotel yes/no Which one? ___________

Holiday provider (third party such as Thomas Cook, Lasminute.com, Experian)

10. Why did you book a package holiday deal?: Please rank in order of most

important to you. (4= most important, 1=least important).

Convenience (saves time, planning, fits my schedule)

Security (know all the information you need)

Value for money

Activities involved

Other

11. Would you buy a package deal on your Smartphone? Yes/No


University of Hertfordshire in collaboration with

IBM:

MBA Questionnaire

In collaboration with IBM, University of Hertfordshire MBA students are carrying out a

questionnaire around behaviours and attitudes towards holidays by consumers.

Thank you for taking the time to participate in our questionnaire; it should not take more

than 10 minutes. The information provided will be treated with complete confidentiality and

will only be used for academic purposes. It is also anonymous.

If you wish to withdraw from the questionnaire at anytime, you are free to do so. Please tick

the appropriate box at the top of the questionnaire paper shown to you to confirm you have

understood and agree.

Thank You!

When answering some of the questions that require the ‘Always’ to ‘Never’ ratings, please

have a look at this diagram and bear this in mind when kindly giving us your answers.

Rating Scale

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

% of time

Rarely Sometimes Often Often to Always

1 2 3 4 5 Never to Rarely


Focus Group Transcription

Focus Group Demographic Age range of participants: 23 - 35

Number of Participants: 9

Females: 3

Males: 6

Couples: 2

Singles: 7

Transcription: Moderator : First question how do you arrive to the idea of going on a vacation?

P4: You’re invited by someone else, like, Hey do you wanna go on this trip with me?

Moderator: Who is that person?

P4: Who.. what

Moderator: Who typically is that person?

P4: By with a friend or with a group of friends.

Moderator: OK

P1: Usualy you hear your friends taking this, I have this friend who does this Vegas trips 6 months or so, and then you kinda get this

influence oh yeah, you told me about it, sounds greatmay I join you the next time. Usually through the word-of-mouth through a friend,

that’s how the planning starts for the idea of a vacation. For me, at least.

Moderator: OK so personal interation, just kinda you know that person and…

P1: You kinda heard about their experience and kinda gets you thinking about your next vacation

Moderator: OK

P5: Groupons.

P1: yes

P5: Just wondering right now for Cabos that I really want to use.. so. Yeah

Moderator: So that, instills the idea that of you wanting to go on vacation

P5: Right now,I just kinda, it was a random trip i guess. More so like nobody brought it up, I just saw it on Groupon, it was like….

P4: It was like half-off or what

P5: Yes, it’s like $300 you save like $1200 so it just one of those things that sounds like a really good deal obviously I am not pursuing it

very much but

Moderator: Ok you just answered my question, what would incline you to pursue that? A more of a discount?

P5: Getting other people to participate, I guess, cos I am seeing it on groupon so I am like reading about it and it sounds really cool but if we

can get out friends or like that, but

P1: If you are buy yourselves the financial obligations seem tough on you if you can get a whole group to join in, may be two-three people,

the financial obligations seems a little bit easier to handle because you are sharing it amongst your friends, you are just more inclined to

wanna take that option

Moderator: Okay, It’s not really pressure but kinda incline you to pursue that option. It’s just an idea at this point but you don’t really seek

to pursue that.

P5: Means kind of, but then I think it’s some people’s hesitation to resort maybe cheap to how much their flights like there seems there has

got to be a catch to it if it’s so cheap, so it makes people hesitant I guess…

Moderator: Now if for instance that groupon came with a peer review, maybe from a friend; would you be more, I guess, you wanna be

suspicious of it? Would that add more credibility to it?

P5: Probably

P4: If it’s somebody personally new?

Moderator: Yeah.

P5: Of course.

Moderator: What if it’s another person you don’t know? It just becomes another….

P5: Well its credibility falls tremendously. I mean…

P7: Yeah… to me it depends how many people responded and you know… what percent of those people were satisfied?

Moderator: Ok. We have a meter like 300 have responded to this, and purchased and gone on this trip…

P5: and 90% are happy about it then… you’re gonna be…

P7: you wanna know like if its 300 or 2000 or 2. whatever…

P5: 5 people… (In a light tone)

Moderator: Ok. So at this point you need more credibility and I guess a partner to go with.

P5: Yeah.

Moderator: Ok. What else can you pair with that? What else would incline you to pursue this groupon?

P5: umm… I don’t know.

Moderator: Ok. I mean this is a good example that’s why I am parked it on it.

P5: I mean it’s something that I really do when I do. I have it… I kinda mentioned it to people so its just kinda… by the people who crib

about I encourage them to listen to me about it. Because they don’t know anything about it so you have to tell them

Moderator: ok

P5: the details.

P1: So Groupon is kind of an option that you have to act upon it and its only good for certain amount of time, expires and it’s no longer

good

Moderator: Ok

P1: So it depends on whether it fits my lifestyle. You know. Is it convenient for me to go at this time? Uh… are my… are you friends able to

go. You require some company (directed towards 5) possibly

P5: right…

P1: So if all those things fit in then you might move on to the next stage. Start looking more into the details. Or else you’re just skimming

over window shopping.


Moderator: Ok. Hearing from a friend, getting a groupon… any other? Like…

P7: I would say it’s seasonal. For me it was common to go somewhere in summers. You know, you’re off the school anyways. You are off

the whole summer so…

Moderator: OK

P7: For me I grew up taking sometime the trip during summer so now I feel inclined during the summer months and make it a point to go

somewhere.

Moderator: So you knew a trip was coming or a vacation was coming during the summer?

P7: Yeah

Moderator: Now, How did you decide on what kind of vacation?

P7: Uh… That becomes the tricky part. Whether you wanna, it might be you know family in that area so you wanna go and visit the family

and you know the see the sights around there or it might be you wanna go somewhere you know you haven’t been before. Somewhere you

don’t know, just to go and experience that so…

Moderator: Ok

P7: I would for me those 2 things… You are going to visit the family or you want to visit you know someplace that’s known for being

famous for some reason; you are going to see that area…

Moderator: Ok. Any other reasons you can think of?

P3: How schedules, umm… add up to be… to… to do something. So for example, he and I haven’t been able to do anything since the year

started so we wanna go to Dallas this weekend, which is not that far, but it’s in our budget and we can drive and spend a couple of days and

change scenery so sometimes you think it’s simple… it’s not. It’s super complicated and we just…

P4: and you will have to be elaborate, right?

P3: Yeah. It has to be elaborate just for our own personal time to do that, so it just happens that we have a couple of days off…

P4: I think that’s a good point like distance has a huge factor

Moderator 2: right…

P4: in the decision. The further you go the bigger the decision, it’s probably going to beat you… so if it’s…

P3: and it has more expenses also…

P4: Well exactly… and so you know if it’s something you know… skiing in New Mexico on spring break or… or… whatever you know.

That’s a lot more realistic and doable verses… going to…

P3: New York…

P4: Yeah, I mean yeah… exactly… it’s a lot more realistic.

Moderator 2: Okay. So

P4: and achievable.

Moderator 2: Would you say, I guess… if you have a longer trip or a further trip. Would it… would it take you more time to plan it?

P4: Absolutely.

Moderator 2: Where would you invest that extra time?

P3: What extra time?

Moderator 2: meaning that extra time it takes you to plan that trip…

P3: hmmm…

Moderator 2: Would you dump that time into finding flights, into finding hotels, in finding better vacation packages

Everyone agrees…

P3: Yeah I would find the best deal…

Moderator 2: Knowing the location a little bit more…?

P4: I was going to say like be familiar with what you are gonna do once you get there…

Moderator 2: Okay.

P4: That would be my thing like when you… like getting there… probably the… that’s one of the easier pieces of the puzzle, as far as…

P3: you will have so many options

P2: decide your whole itinerary though, once you get there.

P3: Yeah.

Moderator 2: Okay.

P4: Like, there is one big thing you are gonna go do or is it gonna be just a ton of seeing the sights and all these small things or you know…

P3: It effects where you wanna stay…

P4: um hmm (agreeing to the point)…

P3: and how much you are willing to pay for depending on what you wanna do…

Moderator 2: Okay. So do you feel like you will spend an, maybe not an equal amount but kind of an equal amount of time on flights

whether that was going to Dallas or going to Los Angeles or would you just invest a significant amount of more time on flight research?

P5: If you have set dates, I think it’s the same coz then you just got to figure your dates and times and if you are pretty set then prices kind

of… price and distance are fairly relevant.

Moderator 2: Okay.

P4: I mean…

P5: But it can go another way, so…

P4: I was gonna say like… like… For instance I mean, I am flying, just to San Antonio like possibly later in May and I was like looking

at… instead of, flying back on a Sunday when its more expensive… like flying back on Monday coz its cheap like… So I am adjusting my

trip to capture some less expensive flights and stuff so… I mean… I think… yeah if you are totally constrained on when you are going then

you are gonna be locked into you know… your transportation costs… if you are flexible and you can travel mid week you are gonna be able

to save some money…

Moderator 2: Okay. Anybody else wanna contribute to that?

P7: I think for finding a flight would be roughly the same amount of time. Whether it was a short distance you know… In state or gone

across country. More or less if there are specific dates you are already looking at for each trip, there are only so many options and it doesn’t

take too much time to look through those options. So I would say about same amount of time.

Moderator 2: About same amount of time… Okay.

P9: Well, if they are going on a longer trip… they more likely have more time to…

Moderator 2: you are gonna invest more amount of time…

P9: Yeah. I mean like your gonna… your gonna know about it more in advance. So if you are planning a trip, say to New York you know

for fun, you are probably gonna know about that earlier than the one you know about Dallas. You probably have planned it more in advance.

Moderator 2: Right.

P9: So you have more time to book flights and everything…


Moderator 2: Okay. Would you say your stay in New York might be a little bit longer?

P9: Yeah. I would figure. If I am gonna spend the money and time to go over there.

Moderator 2: So it would be a turn around right?

P9: Right.

Moderator 2: Okay. Fair enough.

P8: I think it really depends on how do you define vacation.

Moderator 2: Okay.

P8: Long or shorter. Usually what we talk about… I mean I will say you are in Lubbock. 6 hours to go to a major city, it’s almost a day is

gone.

P3: Right.

P8: So if you are talking about a getaway weekend, definitely not working for a family. For just a long trip plus cost and everything, but we

are talking about we are staying in a big city, that’s why Expedia another old brand… name brand for the third party online travel agents

they have the last minutes deal.

Moderator 2: Um hmm…

P8: Just think about sometime from Dallas to Chicago $749 away. I mean I can’t afford to take my kids to Chicago just for the weekend for

749 dollars from Lubbock. It never happened… So I think it also depends also on where you live where is your residency and fo r me I think

initially here you talking about the initiative for the vacation… I think a longer vacation and it’s a week. Definitely not only a weekend and

first of all you choose to pretty much you filter out the search. First of all you think how many people are going. You alone or with your

partner or just with whole group people and second I need to look at budget and even you can create your own itinerary with a travel agent if

you gather 15 people more… you can go for free. So it really depends on how you do it. I would say the of course the very first pool factor

for long trip either on the TV, or email, Groupon, always send to my email and tell me their deal for that, Travelzoo always there are plenty

deals and TV and on TV promos you can see the beach or some place you wanna go there. So pictures very important. You have Groupon

that do show the pictures even it’s just not something… but pictures… so…

P3: Yeah. I mean if I was gonna go with her… I mean... I… To go there… I don’t know where did you say it was?

P5: Cabo…

P3:Cabo! I would… I was single, I mean by myself. I would go.

P4: Yeah…

P3: I mean… I would be like yay! I am going by myself.

Everybody laughing…

P3: What I mean is if I was just going with my friends I would be more inclined to take that far of a trip but if I had a… you know… a

family and children then I would definitely double think that one.

Moderator 2: Okay, now we are gonna do a little scenario where you have to take a, there are a few constraints… You have to take a flight

and… I guess that’s the really the only constraint. Now let’s say this is… the only factor is you are gonna be taking a flight… You will be

taking a flight to any city in the United States where it would take you maybe like four hours or five hours… The length of the time really

does not matter at this point… Just know that you have to be outside Texas…

P1: um hmmm…

Moderator 2: And it’s gonna be for your vacation. Now walk me through that process… What do you do? You have to go to this certain city

for your vacation coz you have already decided… Whats the process?

P3: I would start planning…

P2: Can you pick a setting?

P3: How am I… How am I gonna get there…

Moderator 2: What was that?

P2: Can you pick a setting?

Moderator 2: Okay.

P8: New York.

P2: So, New York.

Moderator 2: New York. Fantastic! Okay.

P1: So… you know, go to various surveys… Kayak… you know and then try to decide like you know… the best in flight and hotel option, a

combo package basically. Uh… and find the best deal… Kayak is… I heard it’s a really good one. Then Expedia, Travelocity, the various

surveys and find your best deal. I guess I would start from there.

Moderator 2: Okay.

P2: Umm… I will think about you know… if you… if you know enough in advance, you can get a pretty cheap flight. If you buy the flight

enough in advance umm… you can get it a lot cheaper than even like a month out umm… So if I was planning a trip to New York… I

would probably set it like 3 to 4 months in the future which I mean that sounds ridiculous but… umm… But the problem with that to as

much you get closer to the time the airline might change the way the flights structure so that’s kind of a sacrifice you make but for me right

now the cheaper price is worth that…

P7: Where do you get your flight from?

P2: It just depends… I just…

P7: Are you gonna… are you gonna call the airlines… you gonna call the local agencies…?

P2: I usually fly Southwest and so I would probably just go directly to the web site and they umm… this wouldn’t necessarily in this

scenario if I am already planning to go I would keep my eye out for cheap deals coz they send those out every once in a while… but in this

case like seeing one of those wouldn’t make me…

Moderator 2: You mentioned you were Southwest right?

P2: Umm hmm (agreeing)…

Moderator 2: So, are you married to Southwest or would you be open to other airlines?

P2: Right now I am coz of financial situation umm…

Moderator 2: Okay. Fair enough…

P2: you know… No extra fees for luggage and the prices are reasonable… in my opinion so umm… but there are times where I am trying to

go to a location that Southwest doesn’t fly to or you have to the thing where you have to fly to Houston to go to Florida and whe n you could

just fly to Florida but they have their rules and stuff so… That’s aggravating but… yeah for now I am married…

Moderator 2: Okay.

P2: to Southwest airlines…

Moderator 2: Okay.


Moderator 3: Yeah umm… I have a question… From what you just said would it… Would your whole thought process

change if you... If you would… If you would find the airline that’s you know, substantially… I wouldn’t say substantially but a lot more

cheaper than the Southwest airline that you just mentioned. Would you still google Southwest or would you look at... look at the other

option?

P3: I would look at the other option because… umm… I know lot of people have really positive experience with Southwest but I had

delayed flights so many times and for me that’s not a problem because umm… I pay the cheaper price so to me it’s like a sacrifice. So I

would definitely give the cheaper option a try a couple of times probably most of the experience was just a disaster and then I mean I could

potentially switch but umm… There would have to be a lot of similarities. I mean just the ease of booking and you know no fees and…

P4: Paying more does not mean its not going to get delayed. I am very similar to your opinion though about like I fly SW almost

exclusively. On a regular basis, it is convenient and it is not a lot of trouble. They are restricted like I guess destinations and its more like a

bus where you stop many times but that’s the thing I am very similar to you like if I know I am going somewhere I am going to book the

flight as soon as I can and lock the cheap pricing and if things change then that is a risk I am going to take.

P3: Well I know that I booked a flight to new Orleans in june I think.. but I know that I am going continental and coming back American

P2: Fun

P3: But anyway just coz it was cheaper to do it individually that way.. we took the time out to figure it out

P7: What’s the downside to flying continental and coming back AA

P8: Delay

P2: Luggage lost

P4: But this is how I see it is like since its continental all the way there so I have to check in again either way when I fly out coz I am going

to another destination in my mind

P2: Its worth the cheaper

Moderator: On this imaginary trip to new York could you walk me through the process of getting your vacation set?

P3: I would definitely shop around through orbit or priceline, definitely wouldn’t drive, that is not an option. Even for dallas I would do this

just coz I want to visit new restaurants and places I haven’t visited or places that I have not heard of so I would take a lot of time to figure

out where I want to go, where I want to eat, etc. Then from there atleast get the airline part like I told you 2 different ones and then figure

out my hotel because I don’t think the hotel changes too horribly in price. So I don’t think its expensive to go straight to the source to book

it, this weekend I got to orbitz and its $49 at the marriott so I would def try to do something like that and keep watching

Moderator: Correct me if I am wrong: flight comes first, then hotel comes next and then activities

P3: I do activities first and then I figure out where I want to stay coz the other issue is New York I am assuming whether be the subway, taxi

or walking and then I want to spend all my time or all my money walking some place so I would do flight, figure out what I wa nt to do and

then book the hotel.

PP1: Then you have to do rental too coz if you have to drive around the city as the taxi would be expensive and so rental would go into the

third factor especially if you know you are planning to be driving around the city or if you are moving around

Moderator: Can somebody think of another route to get there?

P4: Well I am going to throw this out there coz nobody said it, my budget would really control a lot of those decision, like lets say the

airlines done and depending on how much that was going to cost, If I got a great deal on the airlines then I can spend more on the hotel. If

the flight was expensive then I would get a less expensive hotel and hence my budget is really going to dictate how that decision is going to

be made more than anything

Moderator 2: Now that you have mentioned budget, do you have a fixed budget for your vacation or is it an abstract number like $500 or do

you say that I am going to use only this much off my savings or maybe just a little more.

P4: If I get invited or plan a trip with friends, etc, it means I can afford it and its going to be based on an outlet like say $500. I went skiing

for spring break and I said okay, actually I spent about $300 but anyway I got like $300 cash out of my savings account coz I did not want to

use my credit card. I used my debit card to buy some little extra things because it was over budget in some aspects. Especially if I was going

somewhere major where I would spend a lot of money then that was a pretty plan.

P3: Well I think there’s only so much you can wait for a ticket and that dictates the rest of how much you have left in my opinion I mean for

me flight comes first

P1: For me it starts out as an imaginary number and I look for the most cost effective option whether it’s the hotel, flight, rental or all 3

before a trip and the number becomes more solid as I go through the process as I know on an average how much I have to pay based on

various surveys about $55 for the hotel room and it starts building up and totaling up to a maximum willingness to pay for a vacation

Moderator: Did you all hear something that completely you are against or you are doing something different?

P8: The way I do different is first of all get all my credit cards and read their card member benefits then see what I can get from them,

because these days, expedia, orbitz, etc they are all similar. Do you really care about 10 or 20 dollars? Not really, you will prob look about

what you can get back. If you spend $300 then that’s done. But if you bring a credit card with cash back then that is better. So I will look at

my benefit. I do not do combo deal because a lot of hotels, their own website will give you a better deal then the third party. And for flights,

I usually do orbitz because if the price goes down they guarantee that. Kayak is good for searching but not good for convenience. Expedia

they give you points so I will stick with a loyal program and stick with it. So for my rental, I always stick with the same, so now, if I use a

car I use it from the same company because if I pay economic they give me SUV because I am loyal and even for hotel I always stick with

one and hence it is always good to have a membership. Promotions are also good for ex stay for two nights and get another free. Because

eventually, its all safety, you do not want to stay someplace where it is not safe. No matter single or married, I know as students we like to

take risk, but as an international student, I have only one life and my parents have paid so much and raise me, I really need to stay

somewhere safe. There are so many chain hotels with so many benefits. Even for rental cars, also using priceline you do not need insurance

as they cover it for you.. think how much you safe so that’s something you have to understand all the benefits that the website provides. So I

do not do combo because staying with one website is sometimes not worthy and you have to maximize your benefits. so this is my process.

First of all I look at maximization. For example if I travel to new York I will definitely buy travel insurance because you can get back a lot

probably more than you thought even covering your whole trip. Some times they give you 300 dollars. I remember my friend his luggage

was delayed for 24 hrs and each of them used Citibank got back $600 per person and my friend ended up buying victoria’s secret because

they are only allowed to buy certain thing. So its one way to maximize your benefit. I think most of the websites have some deal or the other

it just depends on what you want.

Moderator – Now, anybody, can anybody add to that?

P5 – I think something just from going to New York and like D.C., they are just not the same. But something that kind of goes with both

looking at budget vs the order you are going to plan things in. Sometimes with places like that, if you want to go with museums and stuff,

their costs will differ depending on when you go. Like the May costs may be lower than June and July because they know when their peak

seasons are. Or something similar to school timeframes, so sometimes things like that if you kind of know what you want to focus on more,

you don’t have to plan out your itinerary, but at least get an idea if those costs are going to be different enough for you to determine when


you want to go. That is part of the budget thing as well as figuring out how to start. I know we have done that before. I

can add up a lot or not make a difference.

P2 – And for hotels, I forgot to mention this. I am a Triple A member and so a lot of times if a hotel doesn’t even have a discount for Triple

A, I won’t look at it. And I know that is not smart because I could maybe get a cheaper room completely and they don’t take triple A but I

don’t really research that. That is just a habit I have gotten in; I always see if I can get some sort of discount. Enough hotels have it that I

feel confident that I could get a better deal. So that is a factor that plays into the hotels for me.

Moderator – Okay

P4 – Triple A, I thought you had to be over 50 for that.

P2 – My parents! Well my parents are members

Moderator – This is internal so don’t worry.

P4 – Just joking

P3 – I do Marriot Rewards. I try to stick with it. When they are $49 a night, I don’t use the points, but in other cases…

P6 – I have a question. On that, how do you check? You said you keep checking until you get to 49. Is it something you check everyday?

Is it something you get emailed about? How do you know? Or how do you come about these cheap prices?

P3 – Umm...when I know that I am going to go, I check several times a day. Every chance I get, I check everyday . I mean it’s true! You

know, it is. And sometimes it doesn’t change. Sometimes it…it depends on the weekend. I am assuming nothing is going on this weekend

because I got it for that price. There is other times where I cant get anything on Orbitz anything lower than $79 for a basic room

somewhere. So you just have to continuously check.

Priceline is another one. I haven’t really used it because I haven’t really figured it out yet. Like bidding on something…like bidding on

Hotwire.

Moderator 2 – Just a tip that if you are looking for flight deals. They usually release the cheaper fares on Tuesday evenings. So if you wa nt

just a tip.

P8 – Yes! Southwest

Moderator – Now, all right. We are doing really good on time and I love the dialogue that we are having. Now I am just going to ask a

question and everyone…again, if you don’t feel comfortable answering it just say, “pass,” that’s okay. But it’s just pretty much just three

options. Now you are going on a vacation. One, do you book your airline separately your hotel separate, everything else just separately?

That’s your first option. Your second one is do you book your airline and your hotel kind of like in a package and then everything else kind

of separately, like your activities, your rental car, etc. etc? Or do you just go for the complete package where you book it and put that credit

card away and everything will be taken care of until you get back? Now we are going to start off here. Which one of the three options

entices you and maybe just a brief just of why you are weary of the others?

P9 – I do everything separately just cause I don’t know…just cause it is more fun to pick and choose everything, the prices and everything.

That is really the reason that I do it.

Moderator – Okay, so if I were to say you needed to do a package deal, would you be against that?

P9 – No, not necessarily but I mean… I wouldn’t want to. It would depend on the deal. I mean…if we could go to New York for 200 bucks

with everything covered, then yeah I would take it. But yeah, it would depend

Moderator – Okay, so nothing really anti-against package, but you just prefer?

P9 – Prefer

Moderator – So that would be number one, the first option?

P9 – Right

P8 – I would say number one also since I have already have said different websites. I know what websites, and I know where I am going to

go. I am pretty loyal with them. But if there is a package…one thing that I do like the package is Southwest. They do provide Southwest

vacation package, sometimes they do come out with very good deals.

Moderator – Okay, so you would still stick with number one? Okay

P7 – More than likely number one. In my experience it has been cheaper to go and find what you want specifically, usually. The idea with

the package deal is that is hopefully cheaper. But usually they include something you don’t need or don’t want. So you are paying for

something a little extra. In my experience it has been cheaper. So that is usually my main factor of purchasing things separately.

P6 – I would also have to say number one, kind of the same reasons. I am always concerned about the budget and finding/selecting things

you might not get to do, it may be cheaper. Or I think a little bit cheaper.

Moderator – Okay

P5 – I, in the past, have always done number one just because I book my flight first and the hotel part doesn’t really come until weeks later.

I just don’t really want to think about it, so I’ll just kind of leave it alone. Cause I may not know exactly what I am doing, so don’t know

where I want to stay. I just know that I am going there. Having that option of more flexibility. But I know that if some crazy deal popped

up from the bottom, I know they do that sometimes, like add your hotel for this much extra and if it is a really good deal and a decent hotel

and you are fairly familiar with the brand then I would invest in it. But more than likely number one.

Moderator – Okay

P4 – So I have never bought them as a packaged deal or anything like that. It seems like gimmicky and you can’t really see what is going on

back there. So you don’t know what you are getting. And that is just my personal option about it, and so it is always separate. Hmm…the

only thing to note is though is like, and I have never actually been, so I can’t say that I would have done this, but I would do this is like a

package deal at like a resort. Like all-inclusive and all that, for some reason, I perceive that as different and better.

P3 – That is what we were talking about. Every time my family likes to vacation in Cancun and every time we’ve gone for the past few

years, we have done this package deal. So it has worked really well, really nicely. We have done that however, with a travel agent, so we

have at least sort of been recommended in a certain direction so it wasn’t something that we kind of picked online. So we did it that way.

But if it were something domestically, I would pick it separately. So it depends.

P2 – Yeah I have two different answers as well. If it’s just domestic and inland, I’ll do everything separately. And I have never done like a

package. But I have been on cruises and when I do cruises, and I know that is kind of a different thing cause your hotel…hmm…it’s a

different situation. But definitely I have gone through a travel agent every time, and it is a package and the excursions a lot of times the

cruise ship will recommend different excursions and they will have events set up with wherever you are going. So all of that, that’s always a

package. And I have done that twice, and my parents have done that three times. It’s just easier to go through a travel agent. You know

that they are not going to, well if they make a mistake, you can get, you will get a nice give or sort of compensation. But if you screw

up…you know.

Moderator – It’s on you.

P2 – It’s on you.

P1 – Okay. While package deals are good, there are restrictions that go with it. You are only able to get this flight. You are only able to

choose these hotels. You know, there are restrictions. So you almost always have to build your vacation around the package deal it seems

to an extent. So I guess what I would have to say, and we have done this in the past too, is separate it out, option number one. So that way


you do not feel as restricted when you are planning out your vacation package. And you know, he made a great point

about loyalty and such about how if you are a certain member for a certain group, you may have a better discount then if you would with a

package deal. You may save a little bit more. I would separate it out.

Moderator – Okay

Moderator 1 – Just a general thing, if you consider five years from now and your relationship status changes, you have kids or something

else changes, would your answer be the same as of now? Or would you think there would be a tendency to shift towards a package? Or

something like that? If anyone wanted to change their answers…

Moderator 3 – Just back…I was just thinking, just talking about your relationship status. How would you base your answer as compared to

going individually or just a friend when you have to take your family, your parents, aunts, or anybody. Would your opt ions change?

Because I heard the first discussion that we had was convenience. So would it still be convenient for you to book it individually, I mean

separately, as compared to booking as a package when you have baggage.

P9 – I would think especially with kids.

Moderator – Then you would change it?

P2 – Or like my parents

P9 – Just cause it would be so much easier. When I go by myself all I have to worry about is just myself.

Moderator – Right

P5 – Like what they said though I think that they…

P9 - If I am going around with kids then…

P5 – Sorry I thought you were done. I do like what they said though; I think that it does depend on where you are going like if you are

doing something where…hmm, like example Disney World, it’s still domestic but you can get packages with that when you are with a

family. …

P5: Different things and you can get certain views on the parts you paid for on your bill verses trying to do everything separate so… like if

you are going to Dallas you probably you won’t even know what I can do... Even if you have kids… you can get package... Flights will be

one thing... you will have to register for them individually... in this you just kind of…

P1: I think that goes with the point of resource… as you will have different locations…

P8: Oh go ahead…

P2: Oh nothing… I am good… you go ahead…

P8: Based on my experience, it really depends, with parents and with kids… it’s very different. With parents my experience is that they

would book the hotel at the last because I don’t want rush them. If we stay here for longer then we just stay here... I would look for last

minute, why because parents, they can afford but when you have kids, you need to afford it. I guess that package is the most convenient

way.

P2: I was thinking more on the lines of, if I had children and my parents. That’s why I said it. It’s that if it is this whole enchilada I don’t

want to deal with that. There is enough hassle thats gonna be happening just with them that I would want it all planned out by someone else.

Like a tough agent.

P3: Rooms separated…

P4: Yeah, definitely…

P3: Down the hall…

Everyone one enjoying the moment and laughing…

Moderator1: One of the quick raise of hands, if you have seen on your timeline on facebook or twitter, or any social networking site that

your people had been on vacation, how many times have you, had that motivated you to go on a vacation? Like if that has happe ned to you

before

Moderator 2: If that has influenced you in any way to make you feel that way..

Moderator1: Just a quick raise of hand…

P2: Definitely jealous

P4: I was gonna say that. Seeing the pictures and you are like ‘oh man… that sounds cool, I wish I could go do that’… As far as making me

like ‘Oh go to this travel… and go do it… no!’

P1: It gives you this visual appeal…

P2: And it kind of opens your eyes to new locations too, like if someone went to a place I have never been and I don’t really know a lot

about it… But they have all these cool pictures then I am like ‘Oh… its cool’…

Moderator 2: So what if some… at some point in the future you are going to that location does the social media affect you then. Meaning

‘Oh, well in Paris… you went to the Eiffel tower and you say ‘Oh! I saw this in a picture once’. Would it force you to go that place?

P5: Since you are flying to Europe and you see somebody’s really cool pictures, you might kind of see where they went if you then won’t

think about… yeah

Moderator 2: Would it incline you to go and make the vacation?

P5: I think in the area and lifestyle you are in coz of school… I think if you were maybe older and could have vacation time left the work

and had more expendable fun. I guess you would be like ‘Oh my gosh! That’s cool… Let’s plan that six months right away.

P1: Yeah but when you are in Social media then you are like 50 years old.

Everyone laughing in agreement….

P3: I will admit something. I was just telling him (to 4). I am guilty of seeing a place in a movie when I was younger, (laughing along while

she is speaking) I know… I went. I went last year. Like I made a point. I wanted to go there so badly and it was like everything I imagined

and more.

P2: Where was that?

P3: It was, well, it was a place called Toskania in Italy. It was in Italy. It was like a really small town with a beach. I had seen it in a movie

and I was like ‘ I gotta go to this place!’.

P4: That’s cool…

P3: I am a strange…

P4: No… I wish I can do that.

P8: A lot of people do that because of their childhood dream.

Moderator P3: I have been a big fan of the movie ‘Independence day’ and I can tell the 1 place I went in New Mexico.

Moderator 1: Area… Area 61… (In a bantering manner)

Everyone speaking in chorus…

Moderator 2: Everyone, thank you for your time. Thank you so much. We are just gonna go and edit it there. I really appreciate it. We all

really do appreciate it that you all came out here. Thank you so much. Have some more cookies.

P5: You see… This is what I told you (to Moderator 2)… Listen to me when I tell you…


Moderator 1: If anyone is interested for a personal interview, we will have a one on one interaction and you can just let us

know. It will probably take about 30 minutes. It will be more about planning and stuff.

Moderator 3: The personal interview is gonna be in Starbucks. Anybody interested can meet us in Starbucks.

Moderator 1: Yeah… we will get a free latte or something…

P4: I just hope we were helpful to you all. I don’t know…

Moderator 2: Hmmm??

P4: I hope we were helpful…

Moderator 2: Absolutely. We have a lot of points which we hadn’t thought about. And yeah… you all were really helpful…

Personal Interview Summaries Personal Interview Number 1:

Our interviewee was very loyal to reward cards, travel vouchers and every reward based incentive system. The only caveat the interviewee

had was that these systems needed to be low cost or free altogether. This traveler was very conscientious about price and would do

everything in order to avoid extra expenses. This type of behavior led the interviewee to book direct with companies. This person would

book directly with hotel chains and avoid using Kayak, Amazon and other travel sites, unless these sites contributed to reward points.

Another reason the interviewee seeks direct service is because of the way complaints are handled. The interviewee was not thrilled at the

fact that a third party had to be involved when a flight or hotel reservation changed. Resolutions were found with greater ease through a

direct location.

The interviewee made mention about loyalty later in the interview, in which it was mentioned that the younger (Generation-Y) did not have

as much loyalty as the older generation. It was also mentioned that service encouraged loyalty at any age.

The interviewee used the motto of, “It doesn’t hurt to ask.” With this motto in hand, the interviewee was able to secure great deals and get

upgrades whenever available.

Another idea introduced was the fact that this person was inclined to use mobile applications and would actually trust those applications to

book airlines, hotels and other travel related services. The interviewee mentioned that a comparison chart would be much appreciated when

making a next booking.

A recommendation for travel package assemblers was that they include many amenities already into a decently priced package. Travelers

would find it much harder to reject a package at a moderate price because they would hesitate to research every amenity themselves. In

other words, if a package is already assembled people would not reject the services included if there was at least a remote chance of them

using it.

Personal Interview Number 2:

The interviewee was a very price conscience consumer. This person chose to forgo luxury for the experience of being at a location. Now

unlike younger Generation-Y travelers, this person did not use social media to influence travel behavior. There was mention of the

occasional siting of pictures and destination sites by peers, but there was no influence on the behavior of the interviewee.

However, this interviewee was a technological savvy traveler. There was mention of using iPhone applications to book hotels simply due to

spontaneity and ease of use.

Due to the price sensitivity of this consumer, research took priority over any other action of booking a vacation. This means that the user

would go online to research for a lengthy amount of time solely for the purpose of saving as much as possible. However, the traveler did not

use search engines like Google, Bing and Yahoo. The traveler would go on travel sites like Expedia, Orbitz and Travelocity to get price

quotes. Then the traveler would go directly to the hotel, airplane or rental car site to book a trip. (The Best Buy syndrome)

The interviewee mentioned two frustrations about the travel experience. The first one being that most, if not all, the packaged vacations

catered to the higher end consumer. So this person felt limited to booking vacation plans individually. There was mention of a possible

attraction to vacation packages if they were catered towards the lower-end traveler.

The other frustration the interviewee mentioned was the fact that flight websites were not user friendly. For example, some sites made

finding a cheaper fare easier, while some others made it their “apparent” mission to hide those fares at all cost. The interviewee had no

problem searching for information on flight websites, but this person feels that flight websites should be much easier to use, especially for

those people that are not willing to search as extensively as this interviewee.

Personal Interview Number 3:

The interviewee had a limited amount of exposure to social media. However, this person was still influenced to a certain degree.

Interviewee used the “Like” button on Face book to get promotions, updated news and other types of information from airplane companies,

hotel chains and travel sites. It is this behavior that influences the interviewee to be more spontaneous. Even with a family, the traveler

embraced spontaneity to travel.

This traveler made it a point to stress the loyalty felt towards hotels and a necessary evil of airplane carriers. From the websites to the

actual service, this interviewee did not embrace any part of the flight industry. The reason? The interviewee mentioned that airlines were

not loyal to customers, so there was no need for customers to be loyal to airlines. With this being said, packaged deals were out of the

question for this consumer. The interviewee felt that there was a much better chance of getting the lowest fair by assembling a vacation

pieces at a time. The reason given for staying loyal to hotels was that hotels actually seek to remedy problems. That means that hotel chains

had the desire to help the customers, unlike the airplane companies.

As far as travel patterns go, the family dictated the interviewee’s patterns. Destinations we decided upon by the amount of travel time the

children were going to have to endure. So service, for the first time, took priority over price. Yes promotions were a huge deal for the

initial notion of travel, but service was no longer going to be sacrificed to save a few dollars.


IBM Retail – Focus Interview

Ideal holiday

- Luxury for a change, theatrical, water ski with family, scuba diving, adventurous (bunjie jumping)

and night out with girls for chill out.

Booking process

- Hectic information search, making choices (arrangement for kids) and discussion (husband)

- Time pressure (last minute shopping), stress (between work and family) to shop for a right deal

- After booking made, feel excited to plan agenda for family

- Pre-travel arrangement: catch up with friends to ensure house is taken care of.

Interview

Why would you just buy a flight ticket?

- Visiting friend and family

- Accommodation is arranged.

What is that makes you want to purchase a package holiday? (convenience, price etc).

- price and convenience are the primary factors

- package means structural holiday for consistency in plans

- security in travel arrangement for children

- only comfortable to get reference from close contact with prior experience

- Never trust online review

Considering the last time you booked a holiday, were you unhappy with any aspects of the

purchasing process? What could have made it better?.

- Hectic information search process, fragmented service platform, not consistent and too

many web sites with different presentation style.

Improvement recommendation:

- A service platform that provide customization, price flexibility (i.e. Hotel options for

number of children, connecting room), more bundle options, intimate post purchase support

that provide 1-stop enquiry support (customer service that provide intimate interaction, such

as travel agenda, connecting transportation).

What frustrates you the most when you want to book a holiday?

- In flexibilities travel options for busy work professionals, last minute shoppers whom

normally buy 2-3 weeks ahead. Consumer may choose to give up their travel plan if not able

to find any suitable options. Not willing to commit large sum of money for long period of

time, i.e. 1 year ahead.

- Accountability between fragmented service providers of the travel deal booked. Consumer

feel depressed on finger pointing among the service providers involved in the package.


Do you prefer a website to make recommendations for you or do you like to pick

your own type of preferences?

- Consumer prefer to make own decision than being influence by travel agent. Therefore

customization with price flexibilities is preferred. A service platform that makes relevant

options recommendation and comparison functions is in need.

Consumer may consider readymade deal if children is not involved.

How do you normally look for holiday information and compare?

- Comparing 3 websites for example Expedia, Opodo and Last minute.com. Hotel cost is the

determine factors for family travelling; typically standardize headcount options put on hotel

web site. Among all 3 clusters, Flight and Hotel normally offer the best deal.

1. Consumer confidence on future economic condition (October 2011)

- Sample size: 2,000 internet users aged 16+

Source: Mintel (2012)

2.2 Method of holiday booking

- Migration to online travel (53.3% purchase on line) – Mintel, 2011a

- Survey period: Q1, 2011

- Sample size: 25,000 adults


Source: TGI GB

3. Key fact on consumer purchasing process– Mintel, 2011a:

- Decline spending in online holiday (Flight: -4% & Package: -3%)

- Online and interactive (Phone & Skype call) are recommended

- as consumer demand security on their travel purchases

- Proactive use of social media

- Rising trend on mobile phone application

4. Market issues:

- Changes in consumer perception on holiday spending (Mintel, 2012)

- Holiday no longer an essential spending 43% over 23%


- Market shrink: 2010 market size was 72% of previous year

- Holiday spending decline 4% y-o-y (Mintel, 2012)

- Especially abroad travel (average 50% drop)

- Package holidays growth remain positive (value-add to £ spend)

- Domestic holiday market remain consistent

- Decline demand in package holidays

- Consumer are looking for flexibilities in their holiday agenda


- Growth in unique travel site with trip advisor

- (Innovative) New moves on customer care and Kuoni’s launch of the UK’s first fair

trade holiday.

- Travel brand market dominate by TUI UK and Thomas Cook TO

- Travel intermediaries is cutting capacity due to challenging trading environment


Preliminary Focus Group Findings:

Findings from Preliminary Focus Group 1

Age range of participants: 20-30

Number of Participants: 6

Females: 3

Males: 3

Couples: 1

Singles: 1

Reflect on your last holiday, where did u go?

Participants stated that flights, hotels and packages were searched for primarily on airfare

sites such as skyscanner. Two participants stated that they enjoy the fact that skyscanner and

tripadvisor will suggest certain packages to help in the decision making process as occasionally these

sites are visited without having a specific destination in mind. The main reason for using skyscanner

was stated as the ability to access and gather information fast and easy.

Reviews and Travel Blogs

The use of reviews was stated as one key way to reduce risk and ensure the promise of a good time is

fulfilled.

Length of time spent reading reviews was stated as variable depending on the destination but the

majority agreed that they are willing to spend a significant amount of time reading reviews as they

view they are beneficial. (Perhaps for formal focus group a question can be asked that asks the

maximum time one is willing to spend on reviews as well as a minimum)


Legitimacy of reviews seemed to not be an issue with this group as they claimed they felt

comfortable enough to filter out authentic and legitimate reviews from misleading ones. Reviews

were overwhelmingly agreed upon as an independence source of unbiased information that will lead

to a better decision. This group felt that they could trust these independent consumers online because

they felt that they did not have a sales pitch and thus were unbiased in nature.

One individual stated that he had cancelled booked holiday based on a bad review he read after

booking which was linked to the political and civil unrest at the location. Thus, safety was a major

concern for this individual.

Travel Blogs-most don’t follow a particular blog but does play a role in ultimate decision if

they come across it during the process of searching and information gathering.

Brand loyalty-The majority of participants agreed that budget takes preference over a particular

brand. Yet, when it comes to hotels a specific standard is generally desired and pursued. Only two

participants agreed that they would only travel with British Airways when travelling. One person

stated that flying is just one step to getting to the destination and that the holiday does not start until

actually reaching the destination. As a result, this individual stated that he does not mind cutting costs

on the flight to save the majority of his budget for the activities once reaching to the destination.

ACTIVITIES

An overwhelming percent of the group stated that they have certain activities in mind when deciding

on a destination. The examples were given that if one is interested romantic activities then a beach or

a resort destination would be pursued and if someone wanted to go shopping then perhaps a

destination in the US would be of interest. Thus, the destination was based on the type of activities the

individual desired to engage in on the holiday.

BUDGETING

Building your own package as a cheaper alternative to purchasing a premade package was

unanimously viewed as the most common way of online booking of holiday packages. As a result,

budget was the primary concern for this group. The benefits stated were that it is not only cheaper to

organize the trip yourself because of elimination of the middle man (travel agent or airline) but also

because if the experience does not meet your expectations then you are the one to blame. One

participant stated that two years ago he went on package holiday that he did not build on his own and

the experience fell well below his expectations. He stated that he felt helpless and anger because he

could not do anything about it and based on this experience he does not intend on purchasing pre-

packaged holidays and insists on building his own.

Length of typical holiday and determinants

Typical holiday length was stated as anywhere from one to two weeks. One participant stated

that he felt that his trips went from typically two weeks to now one week because of the inability to

afford a longer trip.


Determinants- The entire focus group was made up of full time employees and thus the main

determinant for the length of travel was the ability to get time off of work. Furthermore, a unanimous

agreement was made that most of the planned holidays were planned well over a month in advance

because holidays must be requested at work at least a month in advance.

Reasons for Holiday

The main reasons for going on holiday were to relax and distress. One participant highlighted the fact

that the average working time has increased and expectations of work has also gone up and thus stress

levels and the need for holiday have increased proportionately. Furthermore, the ability to ask for time

off to go on holiday has become harder and more complex. The economic recession has also played a

major role for the group’s ability to go on holiday as a decline in job security causes them to be less

inclined to ask for time off.

Intitial recommendation possibilities:

Some recommendations to airlines and airfare sights were as follows:

1. Cut out advertising completely and pass the savings onto the customer

2. Only advertise to groups who are not affluent internet users

Key reasons for these recommendations were that the Y generation feels comfortable and aware

enough to make their decision about holidays without the help of advertisements. Whereas, older

groups, such as seniors may need help in being persuaded so advertising to these groups is more

beneficial.

Summary – Primary survey Pilot

20-23 years old

Single

Female

Student

What motivates you to go on holiday?

- Travel with families or group of people

What comes first to mind when you want to go on holiday

- Location and idea where to travel, then try to meet budget

- Open to choice of location, safety is one of the key factor

- Media influence will intimate for future travel needs, do not lead to immediate purchase

- 1) Google for idea

2) reference by friend

3) then only seek for information from travel agent site

Based on your holiday searches, do you end up booking a location that is different than

from the original location you had in mind?

- Reference group such as Friends has influences on destination choice, however own initiated

trip then may influence reference group to accept own opinion.

How far in advance do you typically book your holiday -

- Most often purchase 6 months ahead, promotion deal is a primary decision factors


- Purchase decision very much depends on how eagle to pursue for travel

Parents has greater influences with family travel

Do you normally book with on particular type of

- Booking with travel agent is the primary choice

Will consider airline if package is attractive

Offering must be decent, example: hotel rating, detail of packages

- Preference may be made according to destination (ie. British Airway for UK travel)

- Singapore airline is preferred airline brand

Do you normally book your holiday (flight+hotel) with any of the following

- Preferred full travel arrangement for unfamiliar location, willing to pay small sum of add-on

- Occasionally decision change due to packages offer, price

How would you rank the following in terms of importance to you when choosing your

holiday?

- Price

- Enjoyment

- activities agenda

- Travel package is highly preferred but flexible agenda

- Local: £300 Abroad: £700

What factors may demotivate you to pursue your vacation booking?

- Influence factor:

- Disaster or outbreak

- Friend comments

- Over budget at range £100

- Family urgency or job interview appointment

word count: 8038 ibm smarter planet

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