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BESPOKE SURVEYS Online Volume 6 Travel Trends and OTA Market Share

APRIL 2017 BESPOKE MARKET INTELLIGENCE www.bespokeintel.com Travel Trends and OTA Market Share

CONTENT

1. In Brief – Online Travel

2. Chart Book

TARGET AUDIENCE

1,400+ US Consumers Balanced to Census

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IN BRIEF – ONLINE TRAVEL

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KEY TAKEAWAYS

Travel Headwinds  Gas prices are increasingly weighing on travel decisions. Terrorism has also been a factor discouraging travel (chart).

Recent OTA Usage Declines Y/Y, But Most Likely Because Travel In General Softens Y/Y  Recent OTA usage pulled back sequentially and compared to the same time one year ago for most platforms in our survey, with the exception of and (chart). In general, though, it appears the pull back is related to fewer consumers taking trips that required a stay or a flight compared to the same time one year ago (chart) and not to OTA usage by those who are traveling becoming less important (chart).

The Shifting OTA Landscape – Trivago and Airbnb Gain, TripAdvisor holds ground, others decline  Our survey shows a pretty clear shift going on in the minds of consumers when it comes to the OTAs landscape. and Priceline are losing ground as the “go-to” provider that consumers would choose if looking to book travel today while Airbnb and Trivago have been gaining substantially. TripAdvisor has held its own in the second most popular position while other platforms have shown big gains or declines around them (chart). This shift also shows up in our question of those expecting to travel in the next year regarding which OTA they will use to book their trip. Trivago and Airbinb are share winners (chart).

TripAdvisor gaining traction as booking platform  We are seeing increases in the percentage of consumers who have actually used TripAdvisor to book reservations for travel or other activities (chart). It is slowly but surely being viewed more as a platform to book travel/activities (chart).

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CHART BOOK ALL OF THE DATA FROM OUR SURVEY SERIES

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WEBSITE / APP RESPONDENTS RELY ON MOST FOR RESEARCH AND TRAVEL ACTIVITIES

Posed to all respondents. FILL-IN THE BLANK QUESTION

17.3% Google 11.0% TripAdvisor 6.8% Expedia 6.2% 3.6% Hotels.com 3.6% 2.9% Apr (17) Jan (17) 2.5% Trivago Oct (16) 1.9% Priceline Jul (16) 1.7% Booking.com 1.6% 1.2% Groupon

0% 10% 20%

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WEBSITE RESPONDENTS RELY ON MOST FOR RESEARCHING

Posed to all respondents. FILL-IN THE BLANK QUESTION

22.2% Yelp 20.9% Google 4.8% TripAdvisor 3.5% Opentable 1.8% Groupon Apr (17) 1.2% Jan (17) Travelocity Oct (16) 0.8% Expedia Jul (16) 0.7% .com 0.5% Zagat 0.5% Trivago

0% 20% 40%

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BOOKING DIRECT VS THIRD PARTY SITES ONLINE

Posed to all respondents.

2.60 Flight 2.53 Reservations.Booking 2.55 2.64

2.59 Hotel 2.51 Apr (17) Reservations/Booking 2.48 Jan (17) 2.61 Oct (16) Jul (16) 2.05 Restaurant 2.04 Reservations/Booking 2.03 2.08

Much Prefer Direct Prefer Direct Neutral Prefer Online Much Prefer Online

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ONLINE TRAVEL USERS – HOW ARE THE FOLLOWING IMPACTING YOUR TRAVEL DECISIONS?

Posed to all respondents.

2.90 Conversion 2.93 2.94 Rates of the 2.96 Dollar 2.89 2.97 Apr (17) 2.76 2.82 Jan (17) 2.85 Gas Prices Oct (16) 2.94 2.93 Jul (16) 3.09 Apr (16) Jan (16) 2.49 2.53 2.49 Terrorism 2.50 2.52 2.49

Making me much Making me less Not impacting me Making me more Making me much less likely to travel likely to travel likely to travel more likely to travel

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ALL CONSUMERS – HOW DO YOU TYPICALLY BOOK ?

Posed to all respondents. 43.1% Through online travel websites/apps

34.2% Through the and hotel directly Apr (17) Jan (17) 33.2% None of the above / not applicable Oct (16) Jul (16) 10.1% Through travel agents Apr (16) Jan (16) 2.8% Other (please specify)

0% 20% 40% 60% 80% 100%

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ALL CONSUMERS – HAVE VISITED ONLINE TRAVEL WEBSITES/APPS

Posed to all respondents. 100%

80% 71.7% 72.5% 71.6% 68.4% 67.6% 69.6% 60%

40%

20%

0% Jan (16) Apr (16) Jul (16) Oct (16) Jan (17) Apr (17)

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ONLINE TRAVEL USERS - WEBSITE / APP AWARENESS

Posed to respondents who have used OTAs. 91.4% Expedia 86.5% Travelocity 80.7% TripAdvisor Apr (17) 80.4% Orbitz Jan (17) 79.5% Priceline Oct (16) 77.6% Hotels.com Jul (16) 74.0% Apr (16) Trivago 61.3% Jan (16) Airbnb 1.0% None of the above

0% 20% 40% 60% 80% 100%

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ONLINE TRAVEL USERS – WHICH WOULD YOU USE IF YOU WERE PLANNING A TRIP TODAY?

Posed to respondents who have used OTAs. 20.7% Expedia 20.2% None of the above 13.8% TripAdvisor Apr (17) 10.7% Travelocity Jan (17) 8.9% Trivago Oct (16) 7.3% Jul (16) Airbnb 7.0% Apr (16) Hotels.com Jan (16) 5.9% Priceline 5.6% Orbitz

0% 10% 20% 30%

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ONLINE TRAVEL USERS – HAVE YOU VISITED ANY OF THE FOLLOWING IN THE PAST MONTH?

Posed to respondents who have used OTAs.

49.4% None of the above 23.8% Expedia 20.4% TripAdvisor 16.1% Travelocity Apr (17) 14.4% Jan (17) Hotels.com Oct (16) 12.0% Airbnb Jul (16) 11.4% Apr (16) Trivago Jan (16) 10.9% Priceline 10.9% Orbitz

0% 20% 40% 60%

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ONLINE TRAVEL USERS – WHEN IS THE LAST TIME YOU BOOKED A TRIP/ THAT REQUIRED A HOTEL STAY AND/OR A FLIGHT? Posed to respondents who have used OTAs.

25.3% More than a year ago/Never

26.9% Apr (17) Within the past year Jan (17) Oct (16) 18.9% Jul (16) Within the past three months Apr (16) 28.9% Jan (16) Within the past month

0% 20% 40% 60%

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BOOKED TRAVEL IN THE PAST YEAR – DID YOU BOOK YOUR HOTEL AND TRAVEL AS A PACKAGE THROUGH AN ONLINE ? Posed to respondents who have used OTAs and have booked travel in the past year. 60%

40% 35.6% 34.4% 29.9% 30.1% 32.1% 31.3%

20%

0% Jan (16) Apr (16) Jul (16) Oct (16) Jan (17) Apr (17)

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BOOKED TRAVEL IN THE PAST YEAR – DID YOU USE ANY OF THE FOLLOWING SERVICES TO BOOK ANY OR ALL OF YOUR VACATION? Posed to respondents who have used OTAs and have booked travel in the past year. 48.4% None of the above 19.4% Expedia 12.1% Hotels.com Apr (17) 10.3% Travelocity Jan (17) 8.4% TripAdvisor Oct (16) 7.7% Jul (16) Priceline 7.0% Apr (16) Orbitz Jan (16) 7.0% Airbnb 6.0% Trivago

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

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ONLINE TRAVEL USERS – WHEN DO YOU THINK YOU WILL TAKE YOUR NEXT TRIP THAT WILL REQUIRE A HOTEL STAY AND / OR A FLIGHT? Posed to respondents who have used OTAs More than a year from 17.6% now / Never 34.7% Apr (17) Within the next year Jan (17) 30.8% Oct (16) Within the next three months Jul (16) 16.8% Apr (16) Within the next month Jan (16)

0% 20% 40% 60%

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PLANS TO BOOK A TRIP IN THE NEXT YEAR – WILL YOU USE ANY OF THE FOLLOWING SERVICES TO BOOK YOUR TRIP? Posed to respondents who have used OTAs who plan to travel in the next year.

37.9% None of the above 29.1% Expedia 20.8% Travelocity 19.4% Apr (17) Hotels.com Jan (17) 18.8% TripAdvisor Oct (16) 17.1% Jul (16) Priceline Apr (16) 15.6% Trivago Jan (16) 15.0% Orbitz 14.3% Airbnb

0% 20% 40% 60%

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FREQUENCY OF USING TRIPADVISOR

Posed to all respondents.

1.9% Very Frequently

3.3% Frequently Apr (17)

10.8% Jan (17) Somewhat Frequently

Oct (16) 15.1% Infrequently Jul (16) 21.4% Very Infrequently

47.5% Never

0% 20% 40% 60% 80%

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HOW DO YOU VIEW TRIPADVISOR?

Posed to TripAdvisor users (respondents who have used TripAdvisor).

48.0% A platform to 51.2% research travel/actvities 48.0% 51.4%

BOTH a platform to 41.8% Apr (17) research AND a 40.0% Jan (17) platform to book 42.4% Oct (16) travel/activities 42.4% Jul (16)

10.1% A platform to book 8.9% travel/activities 9.6% 6.1%

0% 20% 40% 60% 80% 100%

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ARE YOU FAMILIAR WITH WHAT TRIPADVISOR “INSTANT BOOKING” IS?

Posed to TripAdvisor users (respondents who have used TripAdvisor).

19.2% Apr (17) Respondents Who Have Used TripAdvisor 18.1% Jan (17) at Some point 19.4% Oct (16) 18.8% Jul (16)

25.0%

Respondents Who Use TripAdvisor at Least 33.8% Somewhat Frequently 30.5% 28.1%

0% 20% 40%

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HAS USED TRIPADVISOR INSTANT BOOKING TO ACTUALLY BOOK RESERVATIONS FOR TRAVEL OR OTHER ACTIVITIES Posed to various types of respondents explained below

34.0% Respondents Who Are Familiar 31.0% with what "Instant Booking" is 27.7% 25.2% 29.1% Views TripAdvisor Frequently 23.5% or Very Frequently 24.4% 13.9% 16.0% Views TripAdvisor as a Platform 15.2% Apr (17) to Book 14.4% 11.6% Jan (17) 10.3% Oct (16) All Respondents (meant to 8.9% represent US Population) 9.8% 4.2% Jul (16)

0% 20% 40%

These represent the percentage who answered yes that they have actually booked travel reservations through TripAdvisor Instant Booking.

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LIKELIHOOD OF USING TRIPADVISOR “INSTANT BOOKING” TO BOOK NEXT TRAVEL / ACTIVITY RESERVATION Posed to TripAdvisor users (respondents who have used TripAdvisor).

2.32 Apr (17) 2.31

2.21 Jan (17) 2.21 Have Used TripAdvisor at Some Point AND Plans to Travel in Next Three Months 2.22 Oct (16) Have used TripAdvisor at Some Point 2.20

2.23 Jul (16) 2.28

Very Unlikely Unlikely Somewhat Likely Likely Very Likely

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