beyond booking webinar follow up

Beyond BookingBuilding Brand Equity Online in the Travel & Leisure Market

Presented by Jessica Hogue & Karen Daenen

2p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

On-Demand Business Research:On-demand access to a dedicated research team that quickly provides the insights and knowledge you need to track competitors, markets, technology and new opportunities.

Strategic Intelligence:Insightful intelligence ethically obtained from unpublished sources, industry experts, market watchers and from actual market players who know the companies you want to understand.

Custom Market Research:In-depth custom research and strategic consulting through advanced interviewing and analytical techniques.

Product Development Intelligence:Analysis and expert advice in conceiving, developing and commercializing new products and processes.

Our Research Capabilities

3p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Expert Advisory Network:Expert consulting and witness services from over 10,000 industry experts covering nearly all areas of science, engineering, regulation and business.

Global Research:International research capabilities through an exclusive network of business intelligence centers

Legal Survey Research and Expert Witness Services:Survey research intended to withstand even the most rigorous judicial scrutiny and expert witness services for a wide variety of legal disputes

Our Research Capabilities (continued)

4p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Jessica HogueJessica Hogue is a Business Research Analyst at Guideline who specializes in food and beverage, travel and leisure industries. Prior to joining Guideline, Ms. Hogue was a Marketing and Communications Director for a luxury cruise operator, where she spearheaded email marketing as well as distributing product online. She previously worked as a freelance writer and at Gourmet magazine, a Condé Nast publication. Ms. Hogue holds a B.A. from Pepperdine University and an M.S. in Journalism from the Columbia University School of Journalism.

Karen DaenenKaren Daenen is a Research Analyst specializing in food, wine and travel and leisure industries. Prior to joining Guideline, Karen worked as Director of Information Services at a wine importing and marketing company based in New York. She holds a BA from Columbia University and a Master’s degree in Library Science from Pratt.

About the Presenters

5p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

The Online Travel Market Today

Today’s online travel marketplace is valued at $68 billion.

In 2005, more than one-quarter of all leisure and unmanaged business travel was booked online.

Online travel is expected to grow to 35% by 2006.

Understand and market to travelers’ evolving online

information and inspiration needs

Personalize and humanize the online experience

Offer “expert” or “insider” content travelers can’t get elsewhere

6p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Objective & Methodology

Our objective was to uncover the purchasing patterns of people who book travel arrangements online. What motivates them to choose one supplier over another? Are there any subtleties that travel/leisure providers can play to in an effort to attract travelers’ attention? Finally, we sought to differentiate between luxury and non-luxury travelers.

Guideline conducted 407 online interviews, with respondents who have a total household income of at least $100,000 and who have taken a domestic or foreign vacation in the past 2 years.

Travelers

n=202 n=205LUXURY TRAVELERS MAINSTREAM TRAVELERS

(spent >$2k+ pp) (spent <$2k pp)

Two hundred surveys provide error margins of + 6.9% for each group, while comparisons of the two groups will have an error margin of + 11%.

7p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

The Travel Planning Process: First Stop - The Big Three

Over 5 billion travel-related searches were performed in 2005.

46% of online travelers start their search with Expedia, Travelocity or Orbitz.

Only 24% first visit a branded airline, hotel or car rental site.

Source: comScore; Nielsen/NetRatings

8p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

46% of Mainstream travelers visit between 4-6 sites, another 39% visit between 1 and 3.

A small segment of Luxury travelers (15%) visit as many as 10 sites.

Significant in comparison to other sub-group

Average Number of Websites Visited Before Purchasing

34%

8%

15%

43%

39%

7%

8%

46%

more than10

7-10

4-6

1-3

Standard (n=196)

Luxury (n=192)

Average Number of Websites Visited Before Purchasing

9p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Q: Who does the research for your leisure/personal travel?Q: Who actually pays for your leisure/personal travel?

(Multiple responses permitted)

Who does the research?

Who pays for the travel?

(Multiple responses permitted)

5%

7%

45%

93%

1%

4%

44%

97%

My secretary /executiveassistant

My child /children

My Spouse

Me

Standard (n=205)

Luxury (n=202)

1%

7%

5%

30%

96%

2%

2%

5%

28%

99%

Frequent Flier miles

My company pays for it

I use miles from my company creditcard

I use miles from my personal creditcard

I pay for it with cash or credit card

Researchers vs. Payees

10p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Destination Influencers

Destination influences ranked from most influential to least influential.

Significant in comparison to other sub-group

Destination Influencers

2%

18%

19%

38%

2%

10%

18%

17%

23%

54%

Travel blogs

A magazine or new spaper article(Travel + Leisure, Conde Nast

Internet sources (About.com,Frommers.com)

Travel promotion (direct mail, email,TV, etc)

Recommendation by friends orfamily

Standard (n=205)

Luxury (n=202)

11p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Sources Most Influential in Travel Planning

39%

19%

17%

23%

3%

52%

18%

19%

11%

1%

Recommendation by friends or family

Travel promotion (direct mail, email,television, etc)

Internet sources (About.com;Frommers.com)

A Magazine or New spaper Article(Travel and Leisure, Conde Nast

Traveler, etc)

Travel Blogs

Male

Female

Destination Influencers

12p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Online Resources Used to Research Trips

Online Resources Used to Research Trips

41%

71%

75%

80%

33%

65%

62%

87%

Online search aggregators(Sidestep.com, Kayak.com,

TravelZoo.com)

Google

Travel Guide Websites (from Touristoff ice or specif ic destination)

Online Agencies (Expedia, Orbitz,Travelocity)

Standard (n=196)

Luxury (n=192)

13p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Most Preferred Offline Resources

11%

12%

25%

46%

71%

26%

11%

10%

25%

64%

None of the Above

Other

Tour Operators (Abercrombie &Kent)

Live Travel Agent

Magazine or Newspaper Articles

Standard (n=196)

Luxury (n=192)

Offline Resources Used to Research Trips

14p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Compelling Website Components for Destination Selection

7%

25%

35%

9%

32%

25%

34%

34%

Ratings by a third party

Photos / Slideshows

Articles

Reviews by othertravelers

Standard (n=196)

Luxury (n=192)

Significant in comparison to other sub-group

Both sets rate reviews by other travelers, articles and photos or slide shows as valuable components.

Compelling Website Content for Destination Selection

15p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Most Appealing Website Components

Most Appealing Website Components

5%

8%

27%

23%

37%

2%

13%

25%

31%

30%

Blogs

Email chats and message boards

Downloadable podcasts by travel writers /adventurers / historians about a particular

property or destination

Premiums / giveaways (such as travel bag, t-shirt,etc)

Interactive / multimedia presentations

Standard (n=196)

Luxury (n=192)

16p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Royal Caribbean

17p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Royal Caribbean

18p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Royal Caribbean

19p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Royal Caribbean

20p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

VisitLasVegas.com

21p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

VisitLasVegas.com

22p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Lufthansa

23p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Lufthansa

24p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Lufthansa

25p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Luxury

30%

35%

34%

Booking Preference

Significant in comparison to other sub-group

Standard

14%

34%

49%

Prefer to book with a live travel agent

Prefer to book directly with travel supplier

Prefer to book online via online travel agency or travel search aggregator

26p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Three Primary Forms of Travel Transacted Online

36 million airline tickets are booked online and 32 million hotel accommodations and 17 million rental cars

Source: Forrester

27p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Comfort Booking Many Types of Travel Online

Comfort Booking Many Types of Travel Online

57%

50%

54%

58%

59%

82%

86%

88%

53%

48%

56%

61%

63%

82%

90%

92%

Cruise

Excursions

B&B

Spa Destination

Total Vacation Package

Car Rental

Hotel Chain

Flight

Luxury (n=202) Standard (n=205)

MARKET

OPPORTUNITY

28p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Where Do You Get the Best Price?

Where Do You Get the Best Price?

6%

7%

36%

34%

5%

5%

6%

41%

43%

17%

Other

Travel Search Aggregators

Live Travel Agent

Direct booking with Hotel, Cruise,Airline supplier

Online Travel Agencies

Standard (n=205)

Luxury (n=202)

Significant in comparison to other sub-group

29p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Maximum Willing to Spend Per Person

What is the maximum you would spend per person for a luxury vacation package online?

Maximum Willing to Spend Per Person

2%

2%

5%

12%

4%

24%

5%

51%

29%

19%

24%

24%

Less than $500

$500 to $1000

$1000 to $1500

$1500 to $2000

$2000 to $5000

More than $5000

Standard (n=205)

Luxury (n=202)

Significant in comparison to other sub-group

30p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Importance of Brand Selection

When booking a luxury travel package how important are the following components to ensuring the enjoyment of your trip?

Importance of Brand Selection

47%

66%

71%

78%

42%

64%

63%

83%

Using car rentalsupplier of my selection

Cruising on ship of myselection

Flying on airline carrierof my selection

Staying in hotel of myselection

Standard (n=205)

Luxury (n=202)

31p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Why Are We Hesitant to Book Online?

The Luxury Group are more likely than the Standard Group to say that they are unable to get everything they need from one source for their personal/leisure travel.

Why Are We Hesitant to Book Online?

23%

26%

37%

60%

26%

28%

21%

60%

Don't transact large purchases online

Don't think websites are trustworthy

Not able to create a complete vacationpackage through one source

Prefer to talk to a live person

Standard (n=53)

Luxury (n=70)

32p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

9%

17%

69%

Your online research is an enjoyable aspect of pre-planning your trip

Your online research process is too confusing

Your online research process is too time consuming

Attitudes Toward Travel Planning Online

Confused, Fed Up with Travel Planning?

33p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

I. Know the Researcher, the Broker and the Booker – Address each need state through the travel process to optimize number of solutions your brand can deliver.

II. Personalize & Humanize Your Site – While a website will never replace the “live” experience a travel has with your brand, create some of that experience online by offer rewards for feedback, inviting travelers to write reviews and ask questions via live chats to encourage interaction online.

III. Become the Expert – Provide authoritative content or partner with an expert to create an “insider” feel and lend credibility to elements of your online content so you are THE trusted source.

Keys to Building Brand Equity in the Online Travel Market

34p.| Building Brand Equity Online in the Travel & Leisure MarketBeyond Booking

Thank You

625 Avenue of the Americas

New York, NY 10011

www.guideline.com

Jessica Hogue Karen DaenenResearch Analyst Research Analyst212.463.6306 212.463.6327jhogue@guideline.com kdaenen@guideline.com

Contact

All attendees will receive these PowerPoint slides and access to an online recording of the presentation within the next week.