the traveler’s appetite for ancillary products

Moderator: Douglas Quinby Principal Analyst

PhoCusWright Inc.

The Traveler’s Appetite for Ancillary Products

May 8, 2013 A PhoCusWright Webinar

Presenter: Carroll Rheem

Principal Analyst PhoCusWright Inc.

Sponsored by:

Presenter: Blair Lyon

VP, Marketing Monetate

2 © 2013 PhoCusWright Inc. All Rights Reserved.

The Traveler’s Appetite for Ancillary Products

May 8, 2013

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PhoCusWright’s Consumer Travel Report: Fifth Edition

Custom Questions

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© 2013 PhoCusWright Inc. All Rights Reserved. 4

Polling Question

What percentage of travelers are never interested in purchasing ancillary products or upgrades?

a. 10% b. 20% c. 30% d. 40% e. 50%


Purchasing Interest in Additional Services or Upgrades from Travel Companies

Question: How often are you generally interested in purchasing additional services or upgrades from the following types of travel companies? Please select one option for each row. Base: Travelers who purchased an airline ticket (N=1,665) Travelers who purchased paid lodging (N=2,203), Travelers who purchased a rental car (N=1,581) Note: Totals may not add to 100% due to rounding. Source: PhoCusWright’s Consumer Travel Report Fifth Edition

19%

13%

16%

33%

28%

25%

29%

35%

34%

11%

15%

15%

8%

9%

11%

Airlines

Hotels

Car rentalproviders

Never interested Rarely interested Sometimes interested Often interested Always interested


Purchasing Interest in Additional Services or Upgrades from Travel Companies, by Age

Question: How often are you generally interested in purchasing additional services or upgrades from the following types of travel companies? Please select one option for each row. Base: Travelers who purchased an airline ticket (N=1,665) Travelers who purchased paid lodging (N=2,203), Travelers who purchased a rental car (N=1,581) Note: Totals may not add to 100% due to rounding. Source: PhoCusWright’s Consumer Travel Report Fifth Edition

11%

18%

21%

18%

28%

28%

38%

32%

30%

30%

33%

34%

33%

27%

28%

28%

24%

27%

10%

14%

12%

12%

8%

8%

8%

9%

9%

9%

7%

3%

18-24

25-34

35-44

45-54

55-64

65+

Never interested Rarely interested Sometimes interested Often interested Always interested

11%

11%

11%

12%

17%

22%

23%

29%

24%

27%

33%

36%

37%

34%

39%

37%

34%

30%

18%

18%

17%

16%

10%

8%

11%

9%

10%

8%

7%

5%

18-24

25-34

35-44

45-54

55-64

65+

11%

13%

14%

20%

19%

23%

25%

30%

22%

18%

25%

32%

32%

31%

40%

37%

31%

21%

16%

16%

14%

16%

16%

11%

16%

11%

9%

10%

9%

14%

18-24

25-34

35-44

45-54

55-64

65+

Air Ticket

Lodging

Car Rental


Purchasing Interest in Additional Services or Upgrades from Travel Companies, by Trip Frequency

Question: How often are you generally interested in purchasing additional services or upgrades from the following types of travel companies?Please select one option for each row. Base: Travelers who purchased an airline ticket (N=1,665) Travelers who purchased paid lodging (N=2,203), Travelers who purchased a rental car (N=1,581) Note: Totals may not add to 100% due to rounding. Source: PhoCusWright’s Consumer Travel Report Fifth Edition

24%

16%

10%

35%

33%

24%

27%

31%

35%

8%

11%

22%

6%

9%

10%

1-2 trips

3-5 trips

6+ trips

Never interested Rarely interested Sometimes Interested Often interested Always interested

15%

12%

8%

30%

26%

22%

35%

37%

32%

13%

17%

24%

7%

9%

14%

1-2 trips

3-5 trips

6+ trips

18%

16%

9%

24%

25%

24%

33%

34%

35%

15%

14%

21%

11%

11%

11%

1-2 trips

3-5 trips

6+ trips

Air Ticket

Lodging

Car Rental


Ancillary Services Purchased

Question: Which of the following products or services have you purchased from an airline (in addition to your ticket) for your leisure air travel in the past 12 months, and when did you typically purchase them? Please select all that apply. Base: Flyers 2011 N=1,311, 2012 N=1,586 Source: PhoCusWright's U.S. Consumer Travel Report: Fourth Edition, PhoCusWright's U.S. Consumer Travel Report: Fifth Edition

16%

16%

19%

21%

22%

23%

39%

59%

13%

15%

16%

18%

19%

19%

34%

60%

Airport lounge access

Additional frequent flier program miles

In-flight wireless Internet access

Priority boarding

In-flight movies/entertainment

Preferred seats/extra leg room

In-flight meals/beverages snacks

Checked baggage

2011

2012


Custom Questions


Timing/Placement of Additional Services or Upgrades

Question: When/where would you like to be offered additional services/upgrades? Select all that apply. Base: U.S. Travelers who show interest in purchasing additional services/upgrades from travel companies (N=2,469) Source: PhoCusWright’s Consumer Travel Report Fifth Edition

57%

39%

19%

19%

17%

As part of the flight/hotel/car optionspresented when I am shopping

After I make my shopping choices butbefore I make my booking

Just after I make my booking

Sometime after I book but before I leavefor my trip

Just as I am leaving for my trip or while I'mchecking in


Timing/Placement of Additional Services or Upgrades, by Advanced Booking Window of Last Trip

Question: When/where would you like to be offered additional services/upgrades? Select all that apply. How far in advance of your departure did you decide on the destination for this trip? Select one. Base: Independent destination selectors who show interest in purchasing additional services/upgrades from travel companies (N=1,387) Source: PhoCusWright’s Consumer Travel Report Fifth Edition

51%

34%

15%

15%

21%

56%

39%

22%

17%

16%

57%

43%

19%

23%

17%

62%

39%

17%

19%

17%

60%

31%

12%

21%

19%

As part of the flight/hotel/car options presented when Iam shopping

After I make my shopping choices but before I make mybooking


Sometime after I book but before I leave for my trip

Just as I am leaving for my trip or while I'm checking in

One week One month 1-2 months 3-5 months 6+ months


Monetate Custom Question: Timing/Placement of Additional Services or Upgrades, by Purchase Intent

Question: When/where would you like to be offered additional services/upgrades? Select all that apply. Base: U.S. Travelers who show interest in purchasing additional services/upgrades from travel companies (N=2,469) Source: PhoCusWright’s Consumer Travel Report Fifth Edition

61%

35%

16%

16%

14%

65%

43%

23%

26%

22%

63%

44%

26%

21%

16%

As part of the flight/hotel/car options presented when I am shopping

After I make my shopping choices but before I make my booking




Never or Rarely intersted

Sometimes interested

Often or Always interested

Interest In Purchasing Additional Services from Airlines

55%

33%

14%

16%

16%

59%

41%

20%

20%

19%

63%

45%

23%

22%

18%






Interest In Purchasing Additional Services from Hotels

60%

37%

17%

16%

19%

68%

46%

19%

19%

16%

70%

45%

26%

29%

14%






Interest In Purchasing Additional Services from Car Rental Company


Custom Questions


Portion of Time Spent on Devices to Plan Travel

Question: Considering all of the time you spent planning travel online in the past 12 months, approximately what portion of time did you spend on the following devices? Base: U.S. Travelers (2012 N=2,502) Note: Totals may not add to 100% due to rounding. Source: PhoCusWright’s Consumer Travel Report Fifth Edition

86%

8% 7%

Desktop

Smartphone

Tablet

63% of travelers ONLY use a desktop to plan travel…


Portion of Time Spent on Devices to Plan Travel Among Travelers Who Plan Trips Using Mobile Devices

Question: Considering all of the time you spent planning travel online in the past 12 months, approximately what portion of time did you spend on the following devices? Base: U.S. Travelers who plan trips using mobile devices (2012 N=876) Note: Totals may not add to 100% due to rounding. Source: PhoCusWright’s Consumer Travel Report Fifth Edition

64% 19%

17%

Desktop

Smartphone

Tablet


Portion of Time Spent on Devices to Plan Travel, by Trip Frequency

Question: Considering all of the time you spent planning travel online in the past 12 months, approximately what portion of time did you spend on the following devices? Base: U.S. travelers (N=2,520) Note: Totals may not add to 100% due to rounding. Source: PhoCusWright’s Consumer Travel Report Fifth Edition

6%

10%

10%

5%

8%

10%

89%

82%

79%

1-2 trips

3-5 trips

6+

Smartphone Tablet Desktop


Portion of Time Spent on Devices to Plan Travel, by Travel Spend


7%

6%

7%

8%

9%

10%

5%

6%

7%

7%

8%

11%

88%

88%

86%

85%

83%

79%

Less than $1,000

$1,000-1,999

$2,000-2,999

$3,000-3,999

$4,000-5,999

$6,000+



Portion of Time Spent on Devices to Plan Travel, by Age


13%

11%

8%

5%

2%

2%

8%

8%

9%

5%

5%

2%

78%

81%

83%

90%

92%

96%

18-24

25-34

35-44

45-54

55-64

65+



Portion of Time Spent on Devices to Plan Travel, by Purchasing Interest in Ancillaries

Question: How often are you generally interested in purchasing additional services or upgrades from the following types of travel companies. Please select one option for each row. Considering all of the time you spent planning travel online in the past 12 months, approximately what portion of time did you spend on the following devices? Considering all of the time you spent planning travel online in the past 12 months, approximately what portion of time did you spend on the following devices? Base: Travelers who purchased an airline ticket (N=1,665) Travelers who purchased paid lodging (N=2,203), Travelers who purchased a rental car (N=1,581) Note: Totals may not add to 100% due to rounding. Source: PhoCusWright’s Consumer Travel Report Fifth Edition

6%

9%

14%

6%

9%

12%

89%

82%

74%

Never or rarelyinterested


Often or Alwaysinterested

Smartphone Tablet DesktopAirlines

Hotels 5%

8%

12%

5%

7%

11%

90%

85%

77%




7%

10%

14%

7%

9%

13%

86%

81%

73%




Car Rental


Website Choice Motivation

Question: Why did you choose the particular Web site(s) you used? Select all that apply. Base: Online shoppers (2011 N=1,587; 2012 N=2,041) Source: PhoCusWright’s Consumer Travel Report Fifth Edition

59%

48%

47%

35%

32%

28%

27%

20%

18%

12%

10%

56%

50%

46%

35%

29%

26%

24%

20%

18%

14%

10%

It is easy to use

It has the best prices/offers

I have had a good experience with this Web site before

I trust this brand

It gives me good trip ideas and options to consider

It offers the widest selection of travel options

It has no booking fees

It provides the most information and photography

It was the official Web site for the brand or destination

I am a member of the company’s frequent traveler …

It has my personal information stored

2011 2012


Website Usability

Question: What makes a travel website easy to use? Select all that apply. Base: U.S. Travelers (N=2,520) Source: PhoCusWright’s Consumer Travel Report Fifth Edition

70%

60%

58%

47%

46%

22%

20%

14%

1%

Total prices displayed clearly

Finding what I want is easy (e.g. useful search filters)

Easy comparison between options (two or more hotels,flights, etc.)

Clean design/not too much clutter

Speed (e.g. pages load quickly)

Offers that are personalized for me (e.g. flight dealsfrom my hometown)

Saved preferences and payment information (e.g. flightdeals from my hometown)

Prominent buttons

Other


Website Usability, by Age


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


Finding what I want is easy (e.g.,useful search filters)



Speed (e.g., pages load quickly)

Offers that are personalized for me (e.g., flight dealsfrom my hometown)

Saved preferences and payment information (e.g., flightdeals from my hometown)

Prominent buttons

Other

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


Website Usability, by Annual Travel Spend


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


Finding what I want is easy (e.g.,useful search filters)



Speed (e.g., pages load quickly)

Offers that are personalized for me (e.g., flight dealsfrom my hometown)

Saved preferences and payment information (e.g., flightdeals from my hometown)

Prominent buttons

Other

Less than $1,000 $1,000-1,999 $2,000-2,999 $3,000-3,999 $4,000-5,999 $6,000+


Polling Question

Does your company optimize its website experience across devices (desktop/smartphone/tablet)? a. Yes, and we have for years b. Yes, we just started in the past year c. We’re in the midst of doing it now d. Not yet, but later this year e. Not yet, but sometime in the next couple of years f. No plans to do so

Questions?

Douglas Quinby Principal Analyst

PhoCusWright Inc.

Carroll Rheem Principal Analyst

PhoCusWright Inc.

Sponsored by:

Blair Lyon VP, Marketing

Monetate

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