phocuswright research & executive roundtable: experience this! · global travel market share by...

Phocuswright Research & Executive Roundtable:Experience This!

Alice Jong, Phocuswright Inc.

© 2019 Phocuswright Inc. All Rights Reserved.

Global Travel Market Share by Segment, 2018

Note: Other segments include car rental, cruise and package tour operators in select markets.Source: PhocalPoint; Tours & Activities Come of Age: Global Travel Activities Marketplace 2014-2020;Private Accommodation in Europe 2010-2020; U.S. Online Travel Overview 2018 and estimates

31% Hotels

35% Airlines


Global Travel Market Share by Segment, 2018

Note: Other includes car rental, cruise and package tour operators in select markets.Source: PhocalPoint; Tours & Activities Come of Age: Global Travel Activities Marketplace 2014-2020; Private Accommodation in Europe: 2010-2020; U.S. Online Travel Overview 2018 and estimates

8% Other

9% Rail

10% Activities

7% Private accommodation

31% Hotels

35% Airlines


The Realm of Travel Activities

Source: Experiences Marketplace: Market Opportunity and Consumer Behavior for Experiential Travel

© 2019 Phocuswright Inc. All Rights Reserved.Base: European Activity Providers (N=701)Source: Experiences Marketplace: Market Opportunity and Consumer Behavior for Experiential Travel

72% A segment of small businesses

of providers average less than $250k in annual gross bookings


of providers spend less than $5K on technology annually.

60%


Online growth has accelerated


1. Traveler Comfort With Online Travel


80%of European travelers shop for travel online

Base: European Travelers: France (N=989); Germany (N=985); U.K. (N=956) Source: European Traveler Technology Survey 2017


0%

20%

40%

60%

80%

Always online Usually online Both online and offline

2014 2016 2018

Typical Leisure Travel Booking MethodEuropean Travelers, 2014-2018

Base: U.K., German and French travelers 2014 (N=3,461); 2016 (N=3,158); 2018 (N=3,144)Source: European Consumer Travel Report 2018


2. Providers Onboard With Online


want to increase sales with online travel sites/distributors

want to increase bookings directly with customers

78% 72%2019 Top Business Priorities

European Activity Providers, 2018


64%53%

24% 27%

Desktop site Mobile site

Have it already Plan to in the next year

Have Live Booking Enabled WebsitesEuropean Activity Providers, 2018

Base: European Activity Providers (N=701)Source: Experiences Marketplace: Market Opportunity and Consumer Behavior for Experiential Travel


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

In person

Traditional travel agent

Tour operator or DMC

Phone or email

Online direct

OTA or online seller

Expect Distribution Channel IncreaseEuropean Activity Providers, 2018

Base: European Activity Providers who distribute on respective channelSource: Experiences Marketplace: Market Opportunity and Consumer Behavior for Experiential Travel

Online

Offline


3. Reservation Tech Adoption Surging


27%Plan to in

the next year

26%No plans/

Unsure

47%Have it already

Third-Party Reservation System Implementation

Base: European Activity Providers (N=701)Source: Experiences Marketplace: Market Opportunity and Consumer Behavior for Experiential Travel


4. The Mobile Story


Travel Activities Mobile Research vs. Booking European Travelers, 2018

Base: Smartphone owners (France=867; Germany=987; U.K.=845)Source: European Consumer Travel Report: 2018

0%

10%

20%

30%

40%

50%

France Germany U.K.

Research/Shopping Booking


Mobile Research & Shopping, by SegmentEuropean Travelers, 2018

Base: Smartphone owners (France=867; Germany=987; U.K.=845)Source: European Consumer Travel Report: 2018

0%

10%

20%

30%

40%

50%

Research & Shopping Booking

HotelActivities

Flight

Hotel Activities

Flight


Mobile Use While in DestinationEuropean Travelers, 2018

Base: European Smartphone Owners (N=2,700); French (N=867); German (N=987); U.K. (N=846) Source: European Consumer Travel Report 2018

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Make restaurant reservations

Book activities or attractions

General research (e.g., transportation, weather)

Use a map

Research activities or attractions


5. Acquisitions and Investments


Making Headlines in 2018

Source: Experience Marketplace: Market Opportunity and Consumer Behavior for Experiential Travel

Please Welcome Our Panelists

phocuswright research & executive roundtable: experience this! · global travel market share by...

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