travel hotel consumers: how online research affects ... · travel hotel consumers: how online...
TRANSCRIPT
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Background and Objectives
Background
• Online research influences both online and offline bookings. However, there remain challenges in quantifying the role of the online channel – whether via search, display, or non-advertising content –in driving bookings.
Objectives
• Assess the online and offline resources shoppers use when shopping for and booking travel as well as the relative importance of different resources
• Quantify the impact online research has on consumer purchase (both online and offline)
• Analyze differences between bookers who purchase online and bookers who purchase offline
Google Confidential and Proprietary
MethodologyRecruitment
• A survey was launched to Compete panelists who had researched hotels online between December 2009 and April 2010
• Surveys were fielded to 1,266 Compete panelists in April/May 2010 targeting consumers who completed and qualified for the survey under the following requirements:
– Respondents who indicated they had conducted online research for overnight accommodations at a hotel within the past six months
– Respondents indicated they researched for personal (non-business) travel
Significance Testing
• For 2-variable significance testing, two asterisks (**) indicates significance at the 95% level and one asterisk (*) indicates significance at the 90% level
• For multiple variable significance testing, uppercase letters indicate significance at the 95% level and lowercase letters indicate significance at the 90% level
• Base sizes under 30 were removed from the study and any base sizes between 30-50 marked as low sample
Searcher vs. Non-Searcher Segment Definition
• A “Searcher” is defined as a respondent who was search referred to a hotel supplier website or OTA hotel path within the 60 days prior to booking (based on observed online clickstream behavior and not self-reported)
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Google Confidential and Proprietary 4
Executive Summary
• Half of all hotel researchers indicated researching exclusively online
– Friends, families and colleagues were the most-used offline sources to learn about hotels
• Half of hotel shoppers reported using search engines in their research
– Online clickstream behavior indicated that a third hotel shoppers are referred by search to a hotel website
• Price was the leading reason for why consumers booked on a specific hotel website
– Receiving rewards/points was also a strong driver
• Higher costs per night and longer stays increased the length of time consumers spent researching hotels online
– The share of researchers using online sources also increased for longer hotel stays
• Nearly a third of hotel shoppers indicated viewing an online advertisement during their research process
• Booking online was the most dominant channel
– Only 1 in 6 bookers indicated booking over the phone or in person
• Hotel bookers are using fewer travel sites to conduct research than year-ago levels indicating more focused shopping activities
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
1 in 3 hotel shoppers are referred to a hotel site by search. We see a bump up in search referral in summer months.
6
Aggregate Online Hotel Shoppers & % Search Referred to a Hotel Site(Volume of Hotel Shoppers & Share that were Search Referred to a Hotel Site, Jun 2009 – Jun 2010)
30M34M
31M
27M 25M23M 23M 23M
25M
30M27M
29M33M
31% 31%29%
28% 28%29% 28% 29%
31%30% 31% 31% 30%
0%
5%
10%
15%
20%
25%
30%
35%
0M
5M
10M
15M
20M
25M
30M
35M
40M
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Hotel Shoppers Share of Hotel Shoppers Referred by Search
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
3M4M
4M
3M3M
2M2M
2M
3M
3M3M
3M4M
24%26%
23% 23%24% 24%
23% 23%22% 22% 22% 22% 23%
0%
5%
10%
15%
20%
25%
30%
0.M
0.5M
1.M
1.5M
2.M
2.5M
3.M
3.5M
4.M
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Hotel Bookers Share of Hotel Bookers Referred by Search
Search Consistently Drove Hotel Bookings
7
Aggregate Online Hotel Bookers & % Search Referred to a Hotel Site(Volume of Hotel Bookers & Share that were Search Referred to a Hotel Site, Jun 2009 – Jun 2010)
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
Google Referred One Quarter of All Shoppers
8
Share of Hotel Shoppers Search Referred by Google Search(Share of Online Hotel Shoppers, Jun 2009 – Jun 2010)
30M34M
31M
27M 25M23M 23M 23M
25M
30M27M
29M33M
24% 24%23%
22% 22%23% 23% 23%
24% 24% 24% 24% 23%
0%
5%
10%
15%
20%
25%
30%
0M
5M
10M
15M
20M
25M
30M
35M
40M
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Hotel Shoppers Share of Hotel Shoppers Referred by Google
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
2022
20 20 2019
17 18
13 14 1416 16
0
5
10
15
20
25
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Hotel Bookers More Focused Year-Over-Year
9
Sites Visited by Online Hotel Bookers(Average Travel Sites Visited Among Hotel Bookers Within the Month of Booking, Jun 2009 – Jun 2010)
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
29%
16%
14%
14%
8%
8%
7%
7%
6%
3%
0% 5% 10% 15% 20% 25% 30% 35%
Family, f riends, or colleagues
800 or toll-f ree numbers
Magazines
Informational brochures or catalogs
TV
Travel agents
Newspapers
Travel groups
Books
Radio
Half of Shoppers Research Exclusively Online
11
Offline Hotel Research Resources Used by Online Hotel Shoppers(Share of Online Hotel Shoppers, n=1266)
S5. Thinking about the last hotel you researched, which of the following sources of information did you use in addition to the Internet, if any? Please select all that apply.Online hotel shoppers, n=1266
51% used no offline sources
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
Half of Researchers Use Search to Find Hotels
12
Online Hotel Research Resources Used by Online Hotel Shoppers(Share of Online Hotel Shoppers, n=1266)
Q1. Specifically, which of the following online sources did you use to research this hotel? Please select all that apply.Online hotel shoppers, n=1266
76%
61%
50%
30%
13%
13%
4%
4%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Hotel websites
Online travel agency websites
Search engines
Travel review websites
Travel guide website
Travel-specif ic websites
Video sharing websites
Social networking websites
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
Online Sources Used More for Longer Stays
13
Online Hotel Research Resources Used by Online Hotel Shoppers(Share of Online Hotel Shoppers, n=1266)
Q1. Specifically, which of the following online sources did you use to research this hotel? Please select all that apply.Online hotel shoppers, n=1266
46%
2% 1%
51%
3% 3%
62%
13% 14%
Search engines Video sharing websites Social networking websites
1-2 Nights (n583) (A) 3-5 Nights (n520) (B) 6 Nights or More (n163) (C)
A
ABAB
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
29%
19%
15%
11%
8%
6%
5%
0% 5% 10% 15% 20% 25% 30% 35%
Online ad
TV ad
Magazine ad
Informational brochures or pamphlets
Newspaper ad
Billboard or outdoor ad
Radio ad
1 in 3 Researchers Recall Viewing Online Ads
14
Advertising Recalled by Online Hotel Shoppers(Share of Online Hotel Shoppers, n=1266)
Q3. In addition to all of the research that you did to learn about your most recently researched hotel, which of the following advertisements do you recall seeing or hearing, if any? Please select all that apply. Online hotel shoppers, n=1266.
*Online ad includes the following:•Online website ad: 22%•Paid search engine listings: 13%•Online video ad: 8%
*
53% do not recall any advertisements
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
83%
15%
2%
0%
20%
40%
60%
80%
100%
Total (n=892)
In person
Over the phone
Online
1 in 6 Researchers Booked Offline
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Channel Used to Book Hotel(Share of Hotel Shoppers That Booked a Hotel in Q4, n=892)
Q5. How did you book this hotel? Please select one answer only.Online hotel shoppers who booked a hotel in Q4, n=892.
17% Booked Offline
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
1 in 5 Bookers Choose Site for Rewards/Points
16
Why Online Hotel Bookers Booked With Specific Site(Share of Online Hotel Bookers That Did Not Select “Other” in Q6, n=711)
Q9. Which of the following best describes why you booked this hotel on a/an [type of site]? Please select one answer only.Online hotel bookers, n=711.
34%
21%
12%
9%
5%
4%
4%
4%
3%
0% 10% 20% 30% 40%
Best prices
I received rewards/points
Good promotions and of fers
Easy to f ind hotels
I was able to view videos
Best selection
Able to book a package
Able to select hotels f rom a map
Able to read reviews by other travelers
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
61.4% 64.0%
26.6%26.5%
12.0% 9.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Searchers (n=391) Non-Searchers (n=1018)
Yes No, but plan to No, and do not plan to
Searchers as Likely to Book as Non-Searchers
17
Searchers vs. Non-Searchers That Booked a Hotel(Share of Total Respondents, n=1409)
Q4. Did you book your most recently researched hotel? Please select one answer only.Total respondents, n=1409; Searchers n=391, Non-Searchers n=1018.
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
85%
67%65%
0%
20%
40%
60%
80%
Under $75 Per Night (n=297) $75-$150 Per Night (n=676) $150+ Per Night (n=266)
Likelihood to Book Declines as Cost Increases
18
Hotel Bookers by Cost of Hotel Per Night(Share of Hotel Shoppers That Did Not Select “Not Sure” in Q24, n=1239)
Q4. Did you book your most recently researched hotel? Please select one answer only.Online hotel shoppers; Spent < $75 per night, n=297; spent $75-$150 per night, n=676; spent $150+ per night, n=266.
Read as: Of shoppers who researched hotels priced $150+
per night, 65% booked
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
Singles Most Certain About Hotel Choice
19
Certainty of What Hotel You Booked or Plan to Book(Share of Hotel Shoppers, n=1266, Top 2 Box)
Q10 - Which of the following best describes how certain you were about what hotel you would book or booked with at the beginning of your research? Online hotel shoppers, n=1266; single stay, n=196; couple stay, n=636; family stay, n=434. Significance testing does not include Total segment.
53%
60%
51%53%
0%
10%
20%
30%
40%
50%
60%
70%
Total (n1266) Single (n251) (A) Couple (n450) (B) Family (n173) (C)
B
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
19%27%
11% 9%
24%
31%
19%12%
21%
18%
26%
20%
15%
14%
18%
11%
21%
10%
27%
48%
0%
20%
40%
60%
80%
100%
Total (n892) 1-2 Nights (n452) (A) 3-5 Nights (n324) (B) 6 Nights or More (n115) (C)
2 Weeks or more
1 Week to less than 2 weeks
3 Days to less than 1 week
1 Day to less than 3 days
Less than 1 day
Research Time Increases with Length of Stay
20
Time Spent Researching Hotel Before Booking By Length of Stay(Share of Hotel Shoppers That Booked a Hotel in Q4, n=892)
Q25. How much time passed from when you first started researching for a hotel online to when you actually booked it? Please select one answer only. Online hotel shoppers who booked a hotel, n=892; 1-2 night stay, n=452; 3-5 night stay, n=324; 6+ night stay, n=115. Significance testing does not include Total segment.
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
19%23% 20%
8%
24%
31%
24%
18%
21%
15%
24%
21%
15%12% 17%
13%
21% 18% 16%
40%
0%
20%
40%
60%
80%
100%
Total (n892) < $75 (n251) (A) $75-$150 (n450) (B) $150+ (n173) (C)
2 Weeks or more
1 Week to less than 2 weeks
3 Days to less than 1 week
1 Day to less than 3 days
Less than 1 day
C
a
AB
CC
Higher Costs Increased Research Time
21
Time Spent Researching Hotel Before Booking By Cost Per Night(Share of Hotel Shoppers That Booked a Hotel in Q4, n=892)
Q25. How much time passed from when you first started researching for a hotel online to when you actually booked it? Please select one answer only.Online hotel shoppers who already booked a hotel, Total n=892, Significance testing does not include Total segment.
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary 22
Summary
• Half of all hotel researchers indicated researching exclusively online
– Friends, families and colleagues were the most-used offline sources to learn about hotels
• Half of hotel shoppers reported using search engines in their research
– Online clickstream behavior indicated that a third hotel shoppers are referred by search to a hotel website
• Price was the leading reason for why consumers booked on a specific hotel website
– Receiving rewards/points was also a strong driver
• Higher costs per night and longer stays increased the length of time consumers spent researching hotels online
– The share of researchers using online sources also increased for longer hotel stays
• Nearly a third of hotel shoppers indicated viewing an online advertisement during their research process
• Booking online was the most dominant channel
– Only 1 in 6 bookers indicated booking over the phone or in person
• Hotel bookers are using fewer travel sites to conduct research than year-ago levels indicating more focused shopping activities
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
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