Table of contents 5. Innovations and Trend 37 1. Introduction 2 5.1 Technology Enhanced Experiences 38 2. Social Media 5 5.2 Augmented Reality 41 2.1 Social Networking Behaviour 6 5.3 Gamification and Participative Consumer Interaction 43 2.2 Social Networking Patterns 9 5.4 Performance and Monitoring 45 2.3 Social Media in Travel and Tourism 11 3. Mobile 14 3.1 Mobile and Smartphones 17 3.2 Tablets 18 3.3 Mobile Ready Web 20 3.4 Mobile Apps 21 3.5 Mobile across the travel cycle 22 4. Consumer Behaviour 22 4.1 Consumer Trends 23 4.2 Geographic Trends 26 4.3 Demographic Trends 27 4.4 Search Behaviour 31 Industry Trends Report locate the most up-to-date reports and statistics, a range of search engines and Introduction professional research databases have been consulted, including: Digital technologies have a disruptive impact on the tourism system, and in ‣ Major search engines (e.g. Google, Yahoo, Bing) todays hyper connected market place, destinations face key challenges ‣ Scientific Databases (e.g. Sciencedirect, EBSCO Host) pertaining their strategic competitiveness. In particular, mobile technologies and social media act as a catalyst of change for consumer behaviour. Given the pace ‣ Market Research Databases (e.g. Euromonitor, Passport) of change, tourism boards need to harness the opportunities of digital ‣ National Federal Statistics Offices technologies, in order to meet consumers’ changing demands and needs. Non Governmental Organisations (e.g. UNWTO, World Bank, World Therefore, this Industry Trends Report examines four key trends in the digital ‣ Economic Forum) landscape and highlights their impact for the German National Tourism Board. These key areas include: In total 115 sources have been consulted to compile this trends report. When available, only the most recent statistics (2013 & 2014) have been included. ‣ Social Media ‣ Mobile ‣ Consumer Behaviour ‣ Trends and Innovations Finally, this report concludes with a summary of the country specific insights, highlighting the major digital and consumer trends, as well as outlining marketing opportunities and challenges that arise for GNTB. These are of elevated importance for the marketing of Germany as a travel destination, as the five focus markets range among the top 20 source markets of Germany, and represent a total of 35% of overnight stays by foreign tourists in Germany in 2012 (DeStatis, 2013). This trend report is based on a systematic review of the latest industry research available on digital technologies, tourism and consumer behaviour. In order to Industry Trends Report Social Media !4 2. Social Media 2.1 Social Networking Behaviour Social media is no longer in its infancy, and has developed in recent years into one of the main online activities. Particularly in combination with mobile internet devices, social media has established itself as an integral component of everyday lives of many consumers. Across the globe, social networking communities are used to share information as well as engage and interact with people, communities and brands. The dramatic growth of social media platforms also exerts a noticeable impact on the travel and tourism domain. Social media is becoming more important for consumers when planning and enjoying their trips. In both, travel specific but also generic (non-travel) social networks, travellers are exchanging more intensely than ever their holiday experiences, photos, ideas and opinions; as well as reviews and recommendations on countless travel related activities and services. Therefore, the upcoming section is set out to provide an examination of the rising trends with regards to social networking, the underlying consumer patterns and travel specific trends. This will provide valuable insights into the potential that leveraging social media offers for contemporary tourism organisations. Mediabistro (2014) In Western European countries and the US, social media has reached mass maturity. Social networking is predominantly centred around a number of key platforms, which are spreading progressively within other regions of the world though. In addition, a growing trend towards image based, visually driven social !5 Industry Trends Report media services (e.g. Pinterest, Instagram) that are particularly strong in specific In general, it is unsurprising that younger demographics are more likely to use niche segments, can be noted. In developing nations such as China and India, social media. In Western European markets (e.g. GER, BE, NE, F, UK) social social media is still growing continuously, as adoption rates are significantly media is used widely among young adults (18-29). Particularly UK, France and lower. However, the differences in adoption rates not only exist between the Netherlands have a high social media affinity in this demographic. In countries, but social networking usage differs also significantly between age contrast, countries such as the UK, Spain and Poland are characterised by high groups. levels of social media adoption across all age groups; a factor that underpins the importance of social as a direct consumer channel in European source markets. Similarly, overseas markets such as the US and Russia feature a high affinity 18-29 30-49 50+ towards social media, across all demographic age groups. On the other hand Country in % in % in % this shows that apart from the aforementioned countries the majority of consumers in the age range of 30+ in oversea markets, do not engage with Belgium 74 45 9 social media. This snapshot however, does not reflect a trend that will prevail. Brazil 62 43 12 Following longitudinal studies of adult’s media consumption by Ofcom (2013), China 61 26 8 trust in social media – and therefore adoption rates of these channels – are continuously growing. France 81 47 17 However, age and origin are not the only significant determinants of social media Germany 69 42 16 adoption. The third major factor influencing social media usage is the education India 12 3 1 level. Namely, the higher the education level the more likely consumers are to make use of social media. Following representative consumer research in 18 Japan 71 41 10 countries across the globe, there exist significant, double-digit differences Mexico 63 29 7 between those with a college degree and those without a college degree in Netherlands 80 46 16 terms of social media adoption (Pew, 2013). Poland 82 53 8 In conclusion, social media plays a prevalent role in Western source markets, and its importance and adoption rates are likely to increase in the near future. Russia 84 59 20 Thus, social media represents a highly adopted and important channel to gain Spain 91 58 24 direct access to important target segments. UK 94 66 22 US 80 59 28 Social media users by country and age (Pew, 2012) !6 Industry Trends Report usage of tablets is significantly more developed in Asia than in any other region of the world. The high adoption of mobile technologies for using social media in Asian markets might be attributable to the fact that these devices are manufactured in the region; and that Asian societies (e.g. Japan, South Korea) feature an above average affinity for new technologies. On the other hand, the prevalence of mobile phone for social media access in Africa are largely due to the setup of the digital infrastructure on the continent, where landline broadband connections are partially underdeveloped (ITU, 2013). Access of social media by type of device (adapted from Nielsen, 2013) When it come to accessing social content, a significant shift towards mobile devices can be noted. Although the desktop computer is still the primary device used by consumers to access social media, the past years saw a significant increase of social media usage through tablets and mobiles. This development is particularly driven by the availability of social media apps. Nielsen (2013) reports that the total amount of time each user spends on social media via a desktop computer declined between 2011 and 2012 by 5%. During the same time frame it increased for mobile app users by 24%. This suggests that the engagement levels with social media content are higher when accessing it via an Regional breakdown of social media access by type of device (adapted from Nielsen, 2013) application on a mobile device. However, significant differences can be noted between regions, when it comes This opens up ample opportunities for contemporary tourism businesses to to the preferred devices for accessing social media content. Particularly in Asian engage with major Asian source markets (e.g. China, Japan) through mobile and African markets, access via the mobile phones is prominent. In addition, the driven or optimised social media technologies. !7 Industry Trends Report Moreover, social media is increasingly used through mobile devices, because purchase decision making differs between different product categories. Across consumers engage more often in multiple media consumption. That is, social the globe, social media has the potential to particularly influence consumers’ media is used while consuming other media, for instance when watching entertainment and home electronics purchase decisions. However, also travel, television (i.e. Yahoo, 2013). Thereby, social media assumes an even more leisure, restaurants, culture and entertainment – all representing topics that are central position in consumers’ decision making journeys, as they offer the highly relevant for many tourist destinations – are product categories, where potential to amplify the engagement between brands and consumers