Trends in the Travel IndustryHow Affiliates Can Capitalize…

Lena Siara HuangeCommerce Manager, Marriott Internationalg

June 2009

Travel Industry Trends

…online travel growth…what is happening in travel in the current

economic market?economic market?

2June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

Online Travel Growth Provides Opportunities for Affiliates

Travel is the #1 advertiser sector in the affiliate industry and accounts for 30%

Online travel's growth continues to exceed that of the market as a whole.

47.2% of affiliate shoppers have an average HH income of over $75K compared to 40% of the average internet shopper.

3June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

Sources: eMarketer; JupiterResearch; E-consultancy

2009 Travel Trends…the industry is adapting…

New Consumers TravelInternational

Intl. SEO

Multilingual Online World

Value Conscious

Deals

Weekend

Internationalization

Ancillary Revenue

Packages

Food & Beverage

Travel TrendsEmerging

Getaways

Value Added

Revenue Free Breakfast

Mobile

Banquets

TrendsEmerging Channels

Value Added Propositions Wi-fi

Meaningful

On the Go

Widgets

Travel is Social

Geo-Targeting

New Technologies

Consumer Experience

Widgets

Online VideoGreen

Experiences

Reviews

4June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

Social TargetingReviewsSharing

New Search Behavior

The Travel Consumer

…travel behavior by generation…domestic and international travelers

5June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

Travel Behavior By Generation – Who books the most?

US travelers are not a single block of people. Examining travelers’ behavior by generation identifies important differences

30%

72%

Boomers and Gen X are the main Bookers overall30% main Bookers overall

.

6June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

Sources: Forrester

Travel Behavior By Generation – Who target next?

50 0%

60.0%

Lookers Bookers Sideliners

The main Sideliners are 55%

20.0%

30.0%

40.0%

50.0%

Gen Y make up 71M or 25%

Seniors and Gen Y44% 40%

-10.0%

0.0%

10.0%

20.6 M 37.9 M 48.3 M 15.1 M 121.9 M

p %of the US population

Gen Y are…

Gen Y Gen X Boomers Seniors Total

Don’t ignore

Sources: Forrester

are early adopters, and the ultimate wireless consumersare an early indicator of what will have mass appealthey still form brand loyalties

Gen Y!

7June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

are confident about the future

Domestic & International Travelers – Who are they?

Despite the current US economy, more than 24 M US online leisure travelers traveled internationally in 2008

International travelers take more trips on average with air hotel and rental carsInternational travelers take more trips, on average, with air, hotel, and rental carsThey are more quality-focused, and highly engaged with technology

90% of International travelers are Bookers

8June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

Sources: Forrester

Domestic & International Travelers – Reasons for Travel52%

41%

28%

Win them!Engage & inspire.inspire.

9June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

Tips for Travel Affiliates

…so what does this mean for affiliates?…how can affiliates capitalize in this economy?

10June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

8 Tips for affiliates – Maximize your revenue in travel…

#1 Improve customer targetingWho are your site visitors? Are you capturing everyone?

#2 Target by segments & create the right contentMake suggestions/ give recommendations – Travel Tips!

11June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

8 Tips for affiliates who want to promote travel…

#3 Use new technologies & fresh creative Online Videos & Widgets

Data Feeds Custom LinkCustom LinkGenerator

S h B BSearch Box Banners

Banners for different customers

12June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

8 Tips for affiliates who want to promote travel…

#4 Take advantage of deals and promotionsThey will increase conversion rates! But don’t rely on price and deals only

#5 Use value-added propositionsWork on that messaging – What makes this product/ servicedifferent?Create an experience(emotional benefits)Inspire trustAncillary revenue

13June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

8 Tips for affiliates who want to promote travel…

#6 Establish a member baseCreate loyalty and add a new revenue stream

#7 Explore new marketing models#7 Explore new marketing modelsAre you sure you’ve tapped into all major revenue driving channels?

Email BlogsDestination siteTarget AudienceSocial

14June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

Email BlogsMall LoyaltyDeals Search

8 Tips for affiliates who want to promote travel…

#8 Explore international markets and affiliate programsThe internet is global. There are many more customers to be gained.

Global Expansion – Things to considerMarket potentialHow developed is eCommerce in this market/ countryExisting affiliate industryAwareness of your products/ services/ brandAwareness of your products/ services/ brandLocal representation/ Language constraintsChoosing the right affiliate networkTechnical and cost considerations

15June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize

Questions?

L Si HLena Siara HuangeCommerce Manager – Affiliate MarketingMarriott International

1 301 380 7780+1-301 380-7780Lena.Huang@Marriott.comwww.Marriott.com | www.Marriott.co.uk

16June 2009Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize