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Multiple Devices and Screens YEAR IN REVIEW & THE YEAR AHEAD 10 KEY TRENDS FOR DESTINATION & TOURISM MARKETERS DECEMBER 13, 2017 WEBINAR RESOURCES Webinar Recordings, Slides, Research and Additional Resources Available within 24 hours/by December 14th 2017 www.MilesPartnership.com/Phocuswright Greetings Chris Adams Douglas Quinby +1 303-842-3394 +1 404-760-9182 [email protected] [email protected] Social: KiwiColorado Twitter: twitter.com/douglasquinby Meet Miles 100% travel 240+ travel 7+ year marketing average client Meet experts relationship Miles 90+ 70 million travel brands visitors to clients’ websites Meet our clients In Association with: How to participate in today’s webinar Grab Tab (open or close the control panel) Choose your audio Use Text Box to ask questions In case of “Drop-Off”, use your Link to rejoin the webinar A Question & Answer Session will be held at the end of today’s session Today’s webinar is being recorded and will be made available for later viewing Top 10 Digital Travel Trends for DMOs in 2018 Douglas Quinby SVP Research, Phocuswright [email protected] @douglasquinby 1) The Era of Online Travel Is Over These days, just about every traveler does something online. © 2017 Phocuswright Inc. All Rights Reserved. Percent of Travelers Who Do Anything Trip-Related Online 100% 80% 60% 40% 20% 0% India U.K. Germany U.S. France Australia Brazil Korea China Japan Southeast Asia* Note: *Singapore, Thailand, Malaysia, Indonesia Base: Online Travelers: (U.S. N = 857; U.K. N=795; AU N=786; IN N=777; FR N=762, DE N=760; BR N=740; JP N=811; KR N=753) Sources: Phocuswright’s Google Travel Study 2017; Phocuswright’s The Southeast Asian Traveler; Phocuswright’s China Unbounded: The Rapid Rise of China’s Outbound Millions © 2017 Phocuswright Inc. All Rights Reserved. In the U.S., Online Travel Has Reached Maturation, If Not Saturation As online became mainstream, growth has slowed, mapping to the total market 120% Total Travel Annual Change Online Travel Annual Change 100% 80% 60% 40% 20% 0% 2000 2005 2010 2015 2020 -20% -40% Source: Phocuswright’s U.S. Online Travel Overview Sixteenth Edition © 2017 Phocuswright Inc. All Rights Reserved. 2014-2017 CAGR for Select Digital Travel Markets 35% Bubble size reflects relative 25% online market size in US$. 15% 5% -5% China Indonesia India U.S. U.K. Japan Italy Brazil Source: Phocuswright’s The State of Digital Travel 2017 © 2017 Phocuswright Inc. All Rights Reserved. DMO Takeaway: Online travel isn’t over – it’s everything. Digital should be at the center of your marketing strategy and spend. © 2017 Phocuswright Inc. All Rights Reserved. Recommendation & Resources RECOMMENDATION & RESOURCES Hyper Informed Traveler o Media usage has surged across all channels o Includes >120 website visits prior to booking PRIORITY: Planning for content & campaigns that works across a complex & fragmented media environment Source: State of the American Traveler 2014-2017. Destination Analyst Resource: Blog: ‘The Rise of the Hyper Informed Traveler’ 2) There is Nothing That Can’t Go Digital Source: Wired and Sabre - http://www.wired.com/2012/07/sabre/ © 2017 Phocuswright Inc. All Rights Reserved. 22 Today: Sabre averages 164K fares shopped every minute Source: Sabre © 2017 Phocuswright Inc. All Rights Reserved. 23 The digitization of everything means the data of everything Beyond Pricing: Winner of the Best Startup Award at 2016 Phocuswright Conference © 2017 Phocuswright Inc. All Rights Reserved. © 2017 Phocuswright Inc. All Rights Reserved. DMO Takeaway: The future of our industry will be driven by data, and winners will be determined by data-driven decision- making. Every travel company must become a data company. What decisions are you making today without good data? © 2017 Phocuswright Inc. All Rights Reserved. RECOMMENDATION & RESOURCES Metrics that Matter o The rights skills, technologies & partners o Leverage the data that matters PRIORITY: Define Online Goals/Conversions (Signals of Intent To Travel) that are meaningful indicators of active trip planning behavior Resource: Summary of 13 CVB Website Conversion Study 3) The Big Story in Mobile Mobile Share of Online Gross Bookings by Region 70% 60% 50% 40% 30% 20% 10% 0% 2015 2016 2017 2018 2019 2020 APAC* Europe U.S. Note: *Mobile bookings calculations for APAC includes China, India and Japan only. Sources: Phocuswright’s Global Mobile Market Sizing: Focus on U.S., APAC and Europe, 2017 © 2017 Phocuswright Inc. All Rights Reserved. And it’s mostly China. Source: Phocuswright’s The State of Digital Travel 2017 © 2017 Phocuswright Inc. All Rights Reserved. Top Five Travel Markets in APAC, 2018 (US$B) 180 160 140 120 100 80 60 40 20 - China Total Japan China Mobile Southeast Asia Northeast Asia Travel Bookings Source: Phocuswright’s The State of Digital Travel 2017 © 2017 Phocuswright Inc. All Rights Reserved. 2018 Mobile Share of Online Travel, by Market 80% 70% 60% 50% 40% 30% 20% 10% 0% China Japan U.K. India U.S. ANZ Source: Phocuswright’s Global Mobile Market Sizing: Focus on U.S., APAC and Europe, 2017 © 2017 Phocuswright Inc. All Rights Reserved. Source: Google Images © 2017 Phocuswright Inc. All Rights Reserved. DMO Takeaway: Asia and especially China are leading the world in mobile innovation, as Chinese travelers increasingly to everything via mobile. If you are not mobile, you’re not ready for China. © 2017 Phocuswright Inc. All Rights Reserved. RECOMMENDATION & RESOURCES Telling Your Story on Mobile o Over 60% of Destination & Travel website interaction is on mobile o Research shows modest usage of Destination websites in market PRIORITY: Develop a responsive website with the content & features that tells your story from inspiration to the in-market experience. Resource: 6 Best Practices for Mobile Design in 2018 4) The Big Get Bigger (and other breaking news) Other OTAs Global Gross Bookings PCLN of OTAs & 66% Priceline/Expedia EXPE* Combined Share 38% 2011 2016 Note: *Excludes gross bookings for Egencia, Expedia’s corporate travel business. Includes Travelocity, Wotif and Orbitz in 2015. Source: Phocuswright Inc. © 2017 Phocuswright Inc. All Rights Reserved. Airbnb vs. Hotels: Total App Downloads 50 45 Wyndham 40 Club Carlson 35 Best Western 30 Choice Hotels 25 Hyatt 20 SPG 15 IHG 10 Marriott 5 Hilton Cumulative Downloads(M) 0 Accor Airbnb Hotel Brands Source: Phocuswright & Apptopia: The Travel App Landscape © 2017 Phocuswright Inc. All Rights Reserved. This is a growing debate that spans all industries: Too much power in the hands of too few? Sources: The New York Times, TechCrunch, The Guardian DMO Takeaways: 1) SEM/online ad costs will continue to rise 2) Organic search traffic will get harder 3) Brands of all segments and sizes need to work smarter with the big brands, and where possible leverage scale through associations and industry partnerships © 2017 Phocuswright Inc. All Rights Reserved. 5) Visual & Personal: The Future of Online Travel Advertising Source: Google Images © 2017 Phocuswright Inc. All Rights Reserved. What Travelers Remember of Online Travel Ads 49% 41% 37% recalled a recalled a recalled a visual or picture price or deal personalized ad Question: What do you remember most about the travel advertising you saw online? Please select up to three. Base: U.S. travelers with online access (N = 1,662) Source: Phocuswright and Microsoft, The Travel Marketer’s Guide to the U.S. Digital Travel Landscape, 2017 © 2017 Phocuswright Inc. All Rights Reserved. Influence of Travel Advertising Platforms Very/extremely influential Somewhat influential Not/slightly influential 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Snapchat* Instagram* YouTube* Bing* Pinterest* Google Travel Search Website/App OTA Website/App Facebook Base: U.S. travelers who clicked ads online access (N = 1,183); *Small sample: Bing (N=36), Youtube (N=86), Instagram (N=60), Pinterest (N=30) Source: Phocuswright and Microsoft, The Travel Marketer’s Guide to the U.S. Digital Travel Landscape, 2017 © 2017 Phocuswright Inc. All Rights Reserved. DMO Takeaway: Online travel advertising is impactful, and it is possible to cut through the clutter. But keeping it visual – and personal – is the key. © 2017 Phocuswright Inc. All Rights Reserved. 6) The Real Revolution in Tours & Activities $147B in 2017 Source: Phocuswright’s Tours & Activities Come of Age: Global Travel Activities Marketplace 2014-2020 © 2017 Phocuswright Inc. All Rights Reserved. 80% of gross bookings are offline. Source: Phocuswright’s Tours & Activities Come of Age: Global Travel Activities Marketplace 2014-2020 © 2017 Phocuswright Inc. All Rights Reserved. Tour & Activity Suppliers with Third-Party Reservation System 45% 11% 2011 2016 Base: 2011: 340 companies; 2016: 980 companies Source: Phocuswright’s Tours & Activities Come of Age: Global Travel Activities Marketplace 2014-2020 © 2017 Phocuswright Inc. All Rights Reserved. More than $220M Raised in this Sector this Year $90M $75M $17M (two rounds) $12M $10M $6M $6M $4M $1.8M Source: Phocuswright’s The State of Digital Travel 2017 © 2017 Phocuswright Inc. All Rights Reserved. Easy Source: Expedia, TripAdvisor © 2017 Phocuswright Inc. All Rights Reserved. Beautiful Source: Expedia, TripAdvisor © 2017 Phocuswright Inc. All Rights Reserved. Bookable Source: Tiqets © 2017 Phocuswright Inc. All Rights Reserved. DMO Takeaway: This is why people travel in the first place, but the sector is still very fragmented and has enormous marketing challenges. DMOs can play a critical role in helping local attractions and tours reach travelers “when they get there.” © 2017 Phocuswright Inc. All Rights Reserved. RECOMMENDATION & RESOURCES Role of Visitor Centers o 32% of US travelers report using an official Visitor Center o Numbers are declining in many markets PRIORITY: Modernizing its role to service visitors in a digital & mobile centric marketplace Source: State of the American Traveler, July 2017. Destination Analyst 7) Artificial Intelligence & Voice-Activated Search The Future of A.I.? © 2017 Phocuswright Inc. All Rights Reserved. The Future of A.I.? Welcome to Declan Suites San Diego! Text us if you need anything! On a scale of 1-5 (5=best), how is your experience so far? 1… you guys booked me in a single king and I requested a double queen.
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