According to the document, most destination travelers conduct extensive online research before booking trips. On average, consumers spend over 4 hours researching destinations online and visit 20 different travel sites in the month prior to booking. Foreign and exotic destinations tend to inspire more thorough research, with consumers booking those destinations visiting twice as many sites on average compared to domestic trips. The majority (71%) of searches for travel information occur within a week of making a booking.
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1. Google & Compete Present:
Understanding Destination Travel Shopping
June 16, 2009
Google Confidential and Proprietary
2. Contents
1 Overview & Methodology
2 Consumer Outlook for Destination Travel
3 How Destination Travel is Shopped Today
4 Opportunities for Travel Marketers
5 Appendix
Google Confidential and Proprietary
3. Overview & Methodology
Overview
The purpose of this study is to understand how consumers make decisions in their
destination travel shopping, and what is important to them as they research and book.
Specifically, this study seeks to use clickstream data to break down the online destination
travel shopping process, and to use survey data to quantify consumer attitudes and
feelings about this process.
Methodology
• Clickstream Analysis
– Conducted on Compete’s proprietary U.S. consumer panel
– Timeframe: April 2008 April 2009
• Focus on consumers shopping specific list of leisure destinations
• Behavior studied across thousands of travel content and booking websites
– Segmented into groups of panelists researching each destination of interest
• Survey
– Compete invited consumers who had recently booked leisure destination travel or planned to soon do so
– Fielded 4/18/09 – 4/23/09
– Sample size = 1406 qualified respondents
Google Confidential and Proprietary
4. Key Findings
Destination travelers are optimistic and can be influenced:
Travel Research & Bookings continue to rise, with strong growth in Q1
2009 vs. the previous year
Affordability is a critical factor in choosing a destination
Search is the most widely used sources to learn about or choose a
destination
Research and search behavior varies by destination type
Over 70% of searches occur prior to the day of booking
Google Confidential and Proprietary
5. Contents
1 Overview & Methodology
2 Consumer Outlook for Destination Travel
3 How Destination Travel is Shopped Today
4 Opportunities for Travel Marketers
5 Appendix
Google Confidential and Proprietary
6. Online travel activity is near all time highs
• 30 million US consumers researched travel in April 2009, down slightly from
record in March
Read As:
30 million U.S. consumers
Online Travel Researchers & Bookers researched travel online in April
(Volume of US consumers researching or booking air, hotel, car, cruise, or package) 2009, and 14% or 4.1 million
had at least one booking
40,000,000 16%
35,000,000 14%
30,000,000 12%
25,000,000 10%
20,000,000 8%
15,000,000 6%
10,000,000 4%
5,000,000 2%
- 0%
Researchers Bookers Booking Rate
Google Confidential and Proprietary
7. 80% of travelers plan on as many or more trips in ’09 as
compared to ‘08
• While some consumers plan to cut back, even more expect to add on
Thinking about leisure trips you have taken or may take in 2009, the number of trips will be…
(n=1406, all consumers in-market for or recently booked destination travel)
57%
20% 23%
Less than 2008 About the Same as More than 2008
2008
Source: QS11 – “Thinking about any leisure trips you may take in 2009, would you say the number of trips you'll take will be...” N=1406 Google Confidential and Proprietary
8. Many leisure travelers can be influenced in choosing a
destination
• 35% know their ideal type of destination but have not selected one
specifically; additional 4% completely undecided
Which statement best describes how you think about planning your leisure travel?
(n=1406, all consumers in-market for or recently booked destination travel)
61%
35%
4%
Know exactly where I want Know type of destination I Neither a type nor a
to go want, but do not have specific destination in mind
specific one in mind
Source: QS1 – “Which of the following statements best describes how you think about planning your leisure travel?” N=1406 Google Confidential and Proprietary
9. Most interest among U.S. consumers is for domestic trips
• About 8% considering both domestic and international
Are you considering domestic or international destinations for your next leisure trip?
(n=731, only consumers in-market for upcoming or in planning destination travel)
82%
Top Domestic Top International
Destinations Destinations
Considered Considered
Las Vegas – 19% Mexico – 29%
Orlando – 15% Italy – 22%
New York City – 10% Bahamas – 20%
Honolulu – 10% Japan – 13%
Wash DC – 9% Ireland – 12%
26% Maui – 9% Jamaica – 12%
Miami – 8% Aruba – 11%
San Diego – 7% France – 11%
San Francisco – 7% Canada – 11%
Los Angeles – 7% Puerto Rico – 11%
Domestic International
Source: QD2A – “Are you considering domestic or international destinations for your upcoming leisure trip?” N=731
Source: QD3A – “Specifically, which of the following domestic destinations have you considered for your upcoming leisure trip?” N=598
Source: QD4A – “Specifically, which of the following international destinations have you considered for your upcoming leisure trip?” N=191 Google Confidential and Proprietary
10. Over half of consumers spend 2+ weeks considering
destination types
• Once decided, 78% spend 1+ week shopping for components, looking for
deals
How much time do you spend in each phase of the travel planning process?
(n=1406, all consumers in-market for or recently booked destination travel)
Considering various types
4% 18% 22% 35% 22%
of destinations
Shopping for trip
components, looking for 2% 20% 26% 36% 15%
deals
Finalizing & booking trip
9% 34% 23% 23% 10%
components
1 Day 1 Day - 1 Wk 1-2 Wks 2 Wks - 2 Mos Over 2 Mos
Source: QS2 – “Approximately how much time do you typically spend in each of the following phases of the travel planning process?” N=1406 Google Confidential and Proprietary
11. Travelers’ top priority is destination affordability
• Many shoppers also place heavy emphasis on family-friendly trips
How important are each of the following in choosing the destination for your trip?
(n=1406, all consumers in-market for or recently booked destination travel)
Top 2: 79%
Very important Extremely important
43%
40%
35% 32%
28%
22% 15% 22%
15%
12%
36% 8% 9% 7%
18% 20% 17% 16% 14%
Affordable Family Direct flight No car No flight Couple Destination GLBT
destination friendly available rental required friendly (eg, for seniors friendly
required no kids)
Source: QD8 – “How important are each of the following in choosing the destination for your trip?” N=1406 Google Confidential and Proprietary
12. Consideration of upscale hotels likely driven by promotions
• 35% of shoppers are expecting to book an upscale / full service property on
their next trip
Which accommodations did you / do you plan to book for your upcoming trip?
(n=1112, only consumers in-market for or recently booked lodging for destination travel)
38%
35%
18%
15% 15%
9% 9%
7% 5%
Mid-scale Upscale Economy All-inclusive Vacation Bed & Luxury hotel Other Boutique
hotel hotel hotel rental Breakfast hotel
Source: QD7, QD7A – “You mentioned booking lodging. Which types of accommodations <did you book / do you plan to book>?” N=1112 Google Confidential and Proprietary
13. Accommodation upgrades are the most popular upsell
• The first choice for 31% of consumers is to pay more for accommodations at
their existing destination
Please select which you are most willing to pay for when you take a leisure trip.
(n=1406, all consumers in-market for or recently booked destination travel)
31%
27%
13% 13%
8%
5% 4%
Accommodations Visiting specific Dining and Vacation Tours & activities Travel upgrades Shopping at my
at destination destination over restaurants activities at destination to/at destination destination
others
Source: QS10 – “Now, please think about what you are most willing to pay for when you take a leisure trip. Please rank the following from
most willing to pay for (1) to least willing to pay for (7).” N=1406 Google Confidential and Proprietary
14. Package sellers must raise awareness of potential savings
& affordability
• Only 24% expect to book components of their next trip in a bundled package
How did you or do you plan to purchase your trip components?
(n=1027, only consumers in-market for or recently booked relevant travel components for destination travel)
As a package
24%
76%
Individually
Source: QD5A – “How <did you book / do you plan to book> your trip components?” N=1027 Google Confidential and Proprietary
15. Destination shoppers want a mix of activities available
• Entertainment, sightseeing, outdoor activities, all important to most shoppers
How important is it that the destination have the following entertainment or activities?
(n=1406, all consumers in-market for or recently booked destination travel)
Top 2: 63% 61%
Very important Extremely important
55%
24% 49%
24%
23%
15% 38%
14% 25%
22% 19%
39% 8%
37% 33% 7%
33% 6%
23%
17% 15% 13%
Sightseeing Entertainment Nature & Parks & Art and culture Sports & Adventure Social
& amusement outdoor gardens recreation sports activities /
activities meet people
Source: QD9 – “How important is it that your destinations have the following entertainment or activities available?” N=1406 Google Confidential and Proprietary
16. Almost everyone turns to the Internet to learn about and
choose destinations
• Heavy influence of family & friends for deciding on destinations
Which of the following do you use to learn about or choose leisure travel destinations?
(n=1406, all consumers in-market for or recently booked destination travel)
95%
66%
53%
44%
27% 26% 24%
18%
12% 10%
5%
Internet Family & Brochures Magazines Books TV News Travel 800 Travel Radio
Friends papers agents Number groups
Source: QS3 – “Which of the following sources do you use to learn about or choose leisure travel destinations?” N=1406 Google Confidential and Proprietary
17. Search is the #1 online channel for destination research
• A mix of other travel site categories are used as research sources, yet
search eclipses even Online Travel Agencies
Which online sources do you use to learn about or choose vacation destinations?
(n=1339, only consumers in-market for or recently booked destination travel who use the Internet)
Search engine 72%
Online Travel Agency 66%
Hotel Sites 63%
Airline Sites 59%
Destination Sites 54%
Travel Review Sites 41%
Travel Search Sites 38%
Car Rental Sites 38%
Cruise Line Sites 26%
General Discount… 20%
Tour Operator Sites 15%
Travel Planning Sites 15%
Source: QS6 – “Specifically, which of the following online sources do you use to learn about or choose vacation destinations? ” N=1339 Google Confidential and Proprietary
18. Destination shoppers are attentive to search & email offers
• Search and email provide an effective channel to reach new and repeat
customers
Which advertisements do you typically pay attention to while planning your leisure travel?
(n=1403, consumers in-market or recently booked destination travel who used any research source)
46% 45%
33%
30% 30%
14% 13%
9% 8%
Email Search Magazine TV ads Direct mail Online Online Radio ads Outdoor
offers engine ads banner video ads ads
listings ads
Source: QS8 – “Which of the following types of advertisements, if any, do you typically pay attention to while planning your leisure travel? ” N=1403 Google Confidential and Proprietary
19. Contents
1 Overview & Methodology
2 Consumer Outlook for Destination Travel
3 How Destination Travel is Shopped Today
4 Opportunities for Travel Marketers
5 Appendix
Google Confidential and Proprietary
20. The research process is intricate and multi-phased
• Activity levels before booking are very strong
Average User Statistics 30 Days Before Booking
(14 Destination Aggregate, destination shopping behavior summary, Jan-Apr 2009)
Time Spent Unique Travel Search Referrals
Researching Online Sites Used to Travel Sites
4 hours 20 sites 5 clicks
Google Confidential and Proprietary
21. Foreign/exotic destinations inspire more thorough research
• Consumers booking destinations such as Bahamas, Caribbean, Hawaii are
nearly twice as active in the research phase
• Individual sites are frequented more than once on average
Travel Site Visits Made Per Consumer 30 Days Before Booking
(total visits across all travel sites by consumers who ended up booking each destination, Jan-Apr 2009)
22.2 21.4 Unique Travel Sites Used
18.4 18.0 17.4 Visits Per Site
16.1 15.9 15.3 14.8 14.6 14.6 14.6 14.5 13.9 13.3
1.4 1.8 1.4 1.3 1.3 1.6 1.2 1.3 1.3 1.1 1.2 1.3 1.2 1.2 1.8
Google Confidential and Proprietary
22. Exotic locations tend to attract higher search volumes
• Caribbean destinations studied all had over 7 travel searches per booker in
the 30 days leading to purchase
Volume of Travel Searches 30 Days Before Booking
(volume of total search clicks to travel sites in 30 days before online transaction, Jan-Apr 2009)
9.2
8.0
7.5 7.4
5.9 5.6 5.4 5.1
4.6
4.0 3.9 3.9 3.9 3.7 3.5
Google Confidential and Proprietary
23. 71% of searches take place before the day of booking
• Researchers are most engaged one week prior to booking
Distribution of Searches By Time Period Before Booking (14 Destination Aggregate)
(percent of total search clicks to travel sites in each period before online transaction, Jan-Apr 2009)
45%
40% 40%
35%
29%
30%
25%
20% 18%
15%
9%
10%
4%
5%
0%
4 Weeks Prior 3 Weeks Prior 2 Weeks Prior Week Prior Same Day
Time Before Booking Made
Google Confidential and Proprietary
24. OTAs are not capturing destination shoppers early
• The majority of clicks happen prior to the day of purchase, yet OTA’s capture
lower share each previous period
Distribution of Travel Searches: Category Clicked & Time Period (14 Dest Aggregate)
(percent of total search clicks to travel sites in each period before online transaction, Jan-Apr 2009)
4 Weeks Prior 18% 19% 10% 8% 10%
3 Weeks Prior 18% 16% 11% 10% 11%
2 Weeks Prior 20% 16% 10% 9% 10%
Prior Week 23% 16% 10% 9% 8%
Day of Booking 30% 17% 13% 7% 6%
OTAs Airlines Hotel Chains Planning & Reviews
Destination Sites Car Rental Other
Google Confidential and Proprietary
25. Performance in capturing search clicks can vary depending
on the type of destination researched
• Destination sites consistently capturing 8-10% of search activity
Distribution of Searches by Category Clicked (select destinations)
(percent of total search clicks to travel sites in each category for 30 days before transaction, Jan-Apr 2009)
Orlando 24% 17% 8% 10% 9%
New York 25% 17% 13% 9% 8%
Las Vegas 30% 18% 6% 6% 7%
Hawaii 21% 16% 10% 12% 7%
Chicago 22% 13% 18% 6% 10%
Caribbean 19% 14% 9% 17% 8%
OTAs Airlines Hotel Chains Planning & Reviews
Destination Sites Travel Guides Car Rental Cruise Sites
Lead Generators Casinos Meta Search Vacation Rental
Other
Google Confidential and Proprietary
26. Destination sites must better engage their search traffic
• Despite receiving almost 10% of search clicks, destination sites capture only
a tiny fraction of research time
Distribution of Research Time On Travel Sites (select destinations)
(distribution into subcategories of total time spent consumers who ended up booking each destination, Jan-Apr 2009)
Orlando 43% 28% 6% 4%
New York 35% 29% 13% 5%
Las Vegas 46% 23% 5% 4%
Hawaii 28% 29% 12% 6%
Chicago 26% 28% 22% 4%
Caribbean 26% 19% 9% 17%
OTAs Airlines Hotel Chains Planning & Reviews
Destination Sites Travel Guides Car Rental Cruise Sites
Lead Generators Casinos Meta Search Vacation Rental
Other
Google Confidential and Proprietary
27. Contents
1 Overview & Methodology
2 Consumer Outlook for Destination Travel
3 How Destination Travel is Shopped Today
4 Opportunities for Travel Marketers
5 Appendix
Google Confidential and Proprietary
28. Recap of Key Findings
Destination travelers are optimistic and can be influenced:
Travel Research & Bookings continue to rise, with strong growth in Q1
2009 vs. the previous year
Affordability is a critical factor in choosing a destination
Search is the most widely used sources to learn about or choose a
destination
Research and search behavior varies by destination type
Over 70% of searches occur prior to the day of booking
Google Confidential and Proprietary
29. Contents
1 Overview & Methodology
2 Consumer Outlook for Destination Travel
3 How Destination Travel is Shopped Today
4 Opportunities for Travel Marketers
5 Appendix
Google Confidential and Proprietary
30. Individual Destinations Studied (clickstream section only)
Destination Studied
• Atlanta
• Bahamas
• Caribbean
• Chicago
• Dallas
• Jamaica
• Hawaii
• Las Vegas
• Los Angeles
• Miami
• New York
• Orlando
• Puerto Rico
• San Francisco
• When referenced in the clickstream section of this study, “All” represents an
aggregation of the 14 destinations listed above
Google Confidential and Proprietary
31. Website Categorization Examples (clickstream section only)
Online Travel Airlines Vacation Lead Generators Hotel Chains Meta Search
Agencies (OTA) Packagers
Orbitz Southwest Apple Vacations Travelzoo Marriott Kayak
Priceline United Funjet ShermansTravel Kimpton Farecast/MSN
Expedia JetBlue Liberty Travel Booking Buddy Choice Hotels Mobissimo
Travelocity Delta Tauck Cheapflights Holiday Inn Sidestep
Car Rental Casinos Independents & Cruise Lines Cruise Agencies Bus & Train
Resorts
Hertz MGM Grand Disney Royal Caribbean Vacations To Go Amtrak
Budget Mandalay Bay Sandals Princess Cruises Only Greyhound
Thrifty Wynn Las Vegas Atlantis Celebrity Cruise.com Peter Pan
Avis Foxwoods Nick Hotel Carnival CruisesInc.com Rail Europe.com
Vacation Rental Theme Parks Travel Guides Destination & Planning & Traveler
Tourism Reviews Information
VacationClub.com BuschGardens.com 10Best.com Aruba.com TripAdvisor.com FlightArrivals.com
Homeaway.com CedarPoint.com Away.com LAcvb.com CruiseCritic.com FlightInfo.com
Flipkey.com HersheyPA.com Fodors.com Denver.org Viator.com Flightview.com
GreatRentals.com Seaworld.com Frommers.com Arkansas.com IgoUgo.com Skyteam.com
Google Confidential and Proprietary