Connecting with Today’s Online Leisure Travel Shopper

Connecting With Today’s Online Leisure Travel Shopper, Sponsored by Webtrends September 18, 2014

Marcello Gasdia

Sr. Consumer

Analyst

PhoCusWright Inc.

Maggie Rauch

Research

Analyst

PhoCusWright Inc.

Michael Wilson

Sr. Director, Product

Management

Webtrends

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Connecting With Today’s Online Leisure

Travel Shopper, Sponsored by Webtrends

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September 18, 2014

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Online Travel

Agencies

Hotel and

Airline

Websites/Apps

Metasearch

Travel Review

Websites/Apps

Search

Engines

Social

Networks

Destination

Websites/Apps

Travel Guide

Websites/Apps

Magazine/

Newspaper

Website/App


U.S. Leisure Travelers

Source: PhoCusWright's Consumer Travel Report Sixth Edition

Took at least one overnight leisure trip in the past 12 months that included paid lodging or a

flight

Took an active role in planning their trips

18+ years old

Shop for travel online


95% 32% 25%



Mobile Travel Planning Activity,

by Age

Question: Where do you typically research airline or hotel options online when planning your leisure trips, and through which devices? Select

all that apply.

Base: U.S. Online Travel Shoppers N=1,485

Source: PhoCusWright’s Consumer Travel Report Sixth Edition

45%

54%

37%

17%

9% 4%

24%

43%

26%

18% 15%

3%

0%

10%

20%

30%

40%

50%

60%

18-24 25-34 35-44 45-54 55-64 65+

Smartphone Tablet


1

6

2 3

4 5

7 8

6.5

9 Mean Touch Points


0%

5%

10%

15%

20%

25%

30%

35%

1-2 3-4 5-7 8-10 11-15 16-20 21+

Mean Touch Points

Where do you typically research airline or hotel options online when planning your leisure trips, and through which devices? Select all that

apply.




7.0 7.9

6.6 5.8

5.2 4.1

0

1

2

3

4

5

6

7

8

9

18-24 25-34 35-44 45-54 55-64 65+

Mean Touch Points, by Age


apply.




5 1 1

Mean Touch Points, Per Device


apply.




Mean Touch Points


apply.



Touch Point Means

Average 6.5

Travelers 25-34 7.9

Frequent Travelers (6+ trips) 8.1

International Travelers 7.7

Big Spenders (6k+ annually) 8.1

Early Tech Adopters 8.5

Mobile Travel Shoppers 8.6


Source: PhoCusWright Inc.

79%

OTA


79%

OTA

Source: PhoCusWright Inc.

72%

Search

Engines 71%

Provider

Websites


Touch Points (Travel Website Types)


apply.



26%

31%

33%

39%

51%

56%

71%

72%

79%

Magazine or newspaper website/app

Travel guide website/app

Social network pages

Destination website/app

Travel Metasearch website/app

Travel Review website/app

Hotel or Airline website/app

General Search engine website/app

Online travel agency website/app

Desktop/Laptop


6%

6%

8%

7%

10%

11%

11%

13%

11%

6%

7%

15%

7%

10%

13%

14%

18%

14%

26%

31%

33%

39%

51%

56%

71%

72%

79%

Magazine or newspaper website/app

Travel guide website/app

Social network pages

Destination website/app

Travel Metasearch website/app

Travel Review website/app

Hotel or Airline website/app

General Search engine website/app

Online travel agency website/app

Desktop/Laptop Smartphone Tablet

Touch Points (Travel Website Types)


apply.




95%! 32% 25%



32% 25% 41%

Mobile Shoppers

Mobile Shoppers

(as a % of total online shoppers)


apply.




51% 60%

47%

28%

18%

8%

18-24 25-34 35-44 45-54 55-64 65+


apply.



Mobile Shoppers

(as a % of all online travel shoppers) by Age


23%

Booked via mobile device (Booked hotel or flight atleast once using smartphone or tablet within thepast 12 months)

Mobile Booking

(as a % of total online shoppers)

Did you book/purchase a hotel room or flight online using a mobile device (i.e. smartphone or tablet) over the past 12 months?

Base: U.S. Mobile Travel Shoppers N=1,485



Did you book/purchase a hotel room or flight online using a mobile device (i.e. smartphone or tablet) over the past 12 months?

Base: U.S. Mobile Travel Shoppers N=1,485


Mobile Booking

(as a % of all online travel shoppers) by Age

31% 38%

23%

11% 8% 1%

20%

22%

24%

17%

10%

7%

18-24 25-34 35-44 45-54 55-64 65+

Booked via mobile device

Shopped via mobile device, but did NOT book


2%

6%

12%

17%

28%

34%

37%

40%

41%

46%

Compliance with privacy laws

Compliance with legal requirements forprice, fee and tax disclosure to the…

Navigating siloed organizations internally atour company

Ensuring ads are kept in a brand-safeenvironment

Managing/optimizing keyword buys

Managing/optimizing ad creative

Supporting new mobile ad formats andtechnologies

Site design and effectiveness

Tracking attribution of ad campaigns

Allocating budget across many differentchannels

Source: PhoCusWright’s The U.S. Travel Advertising Marketplace: Industry Sizing and Trends 2011-2015

Top Challenges Faced by U.S. Travel

Marketers


41%

3%

4%

6%

8%

8%

11%

12%

15%

17%

35%

Do not utilize any/don’t know

Fractional: Time-decay

Fractional: U-curve

Algorithmic or Probabilistic

Single Source: First-view

Fractional: Equal or Linear

Single Source: First-click

Single Source: Post-view

Online-Offline or Cross-channel

Multi-device/Screen

Single Source: Last-click

Source: PhoCusWright’s The U.S. Travel Advertising Marketplace: Industry Sizing and Trends 2011-2015

Attribution Models Used by U.S.

Travel Marketers

Confidential

Optimization for Leisure Travel

Applying learnings from PhoCusWright

You need to understand the customer journey!

• Average 6.5 touchpoints during the booking process

– Greater than 8 touchpoints for younger audiences

– Greater than 7 touchpoints for higher value customers

• Multi-channel conversions

– All audiences use mobile for research

– Younger audiences more likely to book on mobile

32

You need to understand the customer journey!

• Average 6.5 touchpoints during the booking process

– Greater than 8 touchpoints for younger audiences

– Greater than 7 touchpoints for higher value customers

• Multi-channel conversions

– All audiences use mobile for research

– Younger audiences more likely to book on mobile

• And yet…

– 41% of travel organizations perform no attribution

– Most attribution relies on last touch, ignores the journey

33

Conversion and customer experience

34

Do it again Tell others

2 3

1

2

3

4,5,6,7

Do it

Conversion Customer Experience

35

Key Elements

Building blocks for better customer experiences

Segmentation

Focus on the customers who drive revenue

• Examples

– Travelers 25-34

– Frequent Travelers

– International Travelers

– Big Spenders

– Mobile Travel Shoppers

• Visitor profile/persona

– Historical behavior

– In-session activity

Online Testing

Determine optimal design and content to engage and convert

• A/B and multivariate

• Cross-channel view

• Conversion objectives

– Conversion rates

– Booking value

– Ancillary revenue

• Engagement objectives

– Pages viewed

– Time on a page

Content Targeting

Act based on affinities between visitors and content

• Visitor profiles

– Lifetime value

– Past purchases

• Session behavior

– Next best offer

• Recent activity

– Email remarketing

Expertise

Deliver programs to achieve scale and long-term success

• Data strategies

• Identify improvements

• Discover segments

• Design and run tests

• Target appropriately

Understand and improve the customer journey

Five steps to Optimization

Step 1

Gather everything you know

about your customers to deliver value

and relevancy.

Step 2

Deliver the right experiences

while customer intent is at its

peak.

Step 3

Optimize metrics that

matter.

Pages per visit

Abandonment

Visit frequency

Ancillary sales

Booking value

Booking per user

Self-service rate

Lifetime value

Churn rate

NPS CSAT CES

Step 4

Understand the real

customer journey and

optimize across all channels.

Research Booking Travel Share

Chat Support Call In

Step 4

Understand the real

customer journey and

optimize across all channels.

Chat Support Call In

Research Booking Travel Share

Step 5

Optimize campaigns within your

digital channels.

Mobile

Site

Social

49

Questions?

Thank you.

Questions?

Marcello Gasdia

Sr. Consumer

Analyst

PhoCusWright Inc.

Maggie Rauch

Research

Analyst

PhoCusWright Inc.

Michael Wilson

Sr. Director, Product

Management

Webtrends

Related Release:

Coming Soon!

A PhoCusWright White Paper about

this topic, written by David Juman

and Marcello Gasdia, sponsored by

Webtrends

Available in mid-October – check

www.phocuswright.com and

www.webtrends.com for more

information!

http://www.phocuswright.com/

http://www.webtrends.com/


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October 1, 2014

Presenter:

Marcello Gasdia

Sr. Consumer

Analyst

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