The document discusses trends in the travel industry and how affiliates can capitalize. It notes that online travel continues to grow and accounts for 30% of affiliate sales. Younger generations like Gen Y are looking to travel more and are important future customers. International travelers take more trips and are more engaged with technology. The document provides 8 tips for affiliates to maximize revenue in travel, such as improving targeting, using new technologies, promoting deals, and exploring international markets.
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Travel Trends And Affiliate Marketing
1. Trends in the Travel Industry
How Affiliates Can Capitalize…
Lena Siara Huang
eCommerce Manager, Marriott International
g
June 2009
2. Travel Industry Trends
…online travel growth
…what is happening in travel in the current
economic market?
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 2
3. 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.
Sources: eMarketer; JupiterResearch; E-consultancy
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 3
4. 2009 Travel Trends…the industry is adapting…
Intl. SEO
New Value Conscious
Multilingual
Consumers
Online World International Travel
Deals Packages
ization
Food &
Beverage
Ancillary Weekend
Revenue Getaways Free
Banquets Breakfast
Travel
Mobile
Emerging Trends Value Added
Wi-fi
On the Go Channels Propositions
Meaningful
Widgets
New Consumer
Technologies Experience Green
Online Video Experiences
Travel is Geo-
Reviews Social Targeting
New Search
Sharing Behavior
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 4
5. The Travel Consumer
…travel behavior by generation
…domestic and international travelers
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 5
6. 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
72%
Boomers and Gen X are the
30% main Bookers overall
.
Sources: Forrester
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 6
7. Travel Behavior By Generation – Who target next?
Lookers Bookers Sideliners
60.0% 55%
50.0%
50 0%
The main Sideliners are
44% Seniors and Gen Y
40.0%
40%
30.0%
20.0% Gen Y make up 71M or 25%
p %
10.0% of the US population
0.0%
-10.0% 20.6 M 37.9 M 48.3 M 15.1 M 121.9 M
Gen Y Gen X Boomers Seniors Total
Sources: Forrester
Gen Y are… Don’t ignore
Gen Y!
are early adopters, and the ultimate wireless consumers
are an early indicator of what will have mass appeal
they still form brand loyalties
are confident about the future
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 7
8. 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 cars
trips, average, air, hotel,
They are more quality-focused, and highly engaged with technology
90% of International
travelers are Bookers
Sources: Forrester
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 8
9. Domestic & International Travelers – Reasons for Travel
52%
41%
28%
Win them!
Engage &
inspire.
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 9
10. Tips for Travel Affiliates
…so what does this mean for affiliates?
…how can affiliates capitalize in this economy?
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 10
11. 8 Tips for affiliates – Maximize your revenue in travel…
#1 Improve customer targeting
Who are your site visitors? Are you capturing everyone?
#2 Target by segments & create the right content
Make suggestions/ give recommendations – Travel Tips!
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 11
12. 8 Tips for affiliates who want to promote travel…
#3 Use new technologies & fresh creative Online Videos & Widgets
Data Feeds
Custom Link
Generator
Search Box Banners
S hB B
Banners for different
customers
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 12
13. 8 Tips for affiliates who want to promote travel…
#4 Take advantage of deals and promotions
They will increase conversion rates! But don’t rely on price and deals only
#5 Use value-added propositions
Work on that messaging – What makes this product/ service
different?
Create an experience
(emotional benefits)
Inspire trust
Ancillary revenue
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 13
14. 8 Tips for affiliates who want to promote travel…
#6 Establish a member base
Create loyalty and add a new revenue stream
#7 Explore new marketing models
Are you sure you’ve tapped into all major revenue driving channels?
Social Target Audience
Destination site
Email Blogs
Deals Mall Loyalty
Search
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 14
15. 8 Tips for affiliates who want to promote travel…
#8 Explore international markets and affiliate programs
The internet is global. There are many more customers to be gained.
Global Expansion – Things to consider
Market potential
How developed is eCommerce in this market/ country
Existing affiliate industry
Awareness of your products/ services/ brand
Local representation/ Language constraints
Choosing the right affiliate network
Technical and cost considerations
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 15
16. Questions?
Lena Siara Huang
L Si H
eCommerce Manager – Affiliate Marketing
Marriott International
+1-301 380 7780
1 301 380-7780
Lena.Huang@Marriott.com
www.Marriott.com | www.Marriott.co.uk
Lena Siara Huang – Trends in the Travel Industry & How Affiliates Can Capitalize June 2009 16